Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      SpaceX IPO set to be two times oversubscribed

      Everyone wants a piece of SpaceX

      7 June 2026
      OpenAI plans ChatGPT 'super app'

      OpenAI plans ChatGPT ‘super app’

      7 June 2026
      Cabinet hands the Post Office a board, but not a bailout

      Cabinet hands the Post Office a board, but not a bailout

      5 June 2026
      In South Africa, the bundle is the new battleground

      In South Africa, the bundle is the new battleground

      5 June 2026
    • World
      Meta takes on OpenAI and Anthropic in enterprise AI

      Meta takes on OpenAI and Anthropic in enterprise AI

      4 June 2026
      AI demand sparks 'chipflation' warning

      AI demand sparks ‘chipflation’ warning

      4 June 2026
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      AI giant Anthropic files for landmark US listing

      AI giant Anthropic files for landmark US listing

      1 June 2026
      Dell guns for MacBook Neo with low-cost laptop

      Dell guns for MacBook Neo with low-cost laptop

      1 June 2026
    • In-depth
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
    • TCS
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
    • Opinion

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The author, Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 June 2026
      The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

      The hidden cost of social media age bans is everyone’s privacy

      29 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Daniel Goldstuck » How a minor legislative change could save South Africa from load shedding

    How a minor legislative change could save South Africa from load shedding

    By Daniel Goldstuck26 August 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    The author, Dan Goldstuck, argues that a minor legislative change could save South Africa two stages of load shedding

    What if I told you that our energy crisis could be alleviated with one simple change? Sounds ridiculous doesn’t it? But as a professional, with almost a decade of experience working in the energy space, I can tell you it’s that simple.

    Every individual across South Africa has felt the ongoing impact of load shedding, both at home and at work. Surely there must be insurmountable obstacles or surely we would have solved the issues and be operating at full capacity, with an economy unfettered by load shedding and increasingly damaging down time.

    Well, there is just one change that the minister of mineral resources & energy can make, a change that would increase power supply, cut future load shedding by at least two stages and prevent the recent wastage on expensive diesel, all while both saving and creating jobs.

    Generation capacity below 1MW is exempt from obtaining a licence, requiring only registration with energy regulator Nersa

    So, what is that change? It is to move the current exemption from licensing from 1MW to 10MW for energy generation installations. Currently, 1MW can supply a small mall, while 10MW is suitable to feed into a mine or industrial facility.

    The Electricity Regulatory Act of 2006 governs the various stakeholders of the electricity supply industry, and regulates participation in the form of licensed activities. One such licensed activity is the generation of electricity, which requires a generation licence.

    Generation capacity below 1MW is exempt from obtaining a licence, requiring only registration with energy regulator Nersa upon obtaining permission to connect from the local distribution licence holder (either Eskom or a municipality) under a connection or use-of-system agreement. This is an arbitrary limit set as a policy decision, and has no technical basis.

    10MW exemption

    Operators working in both renewable and traditional energy propose the increase to 10MW because that capacity limit can be absorbed with minimal upgrades by a large number of substations, or nodes on the distribution network. This would also fit within the power consumption profile of many industrial facilities.

    On 26 March, the minister, Gwede Mantashe, gazetted an amended version of schedule 2 rationalising the licensing exemptions applicable to generation facilities under 1MW. However, disappointingly, the 1MW licensing cap remained, missing a valuable opportunity to create lasting benefits to the entire electricity system and avoid serious load shedding during the day while still allowing some headroom for Eskom to carry out necessary maintenance.

    The ministry has previously expressed concerns around protection of the electricity network as well as job and Eskom revenue losses, however, these are all addressable.

    Municipalities and Eskom may be concerned that allowing more generation would impact their revenue collection. As it stands, a large municipality shedding 200MW during a load shedding event costs R40-million/week, or R174-million/month. Eskom has made provision for up to eight stages of load shedding, which will result in the majority of municipalities collecting 0% revenue from most suburbs for significant periods of the day.

    And when we look at job creation, those fears can also be addressed. Increasing the share of renewable energy must and will be accompanied by discussion of a “just energy transition” to ensure access to affordable energy while enabling all South African citizens to participate in the related economic opportunities.

    All data I have analysed indicates a transition to increased renewable energy percentages or even replacements of coal power stations will result in net-positive job creation. I agree that serious work needs to be done to ensure the specific individuals impacted are reskilled in a sustainable environment to be able to re-enter the new economic landscape.

    Energy would be available from these plants far sooner than energy from any national procurement programme currently under discussion

    But further, in a scenario where Eskom is shedding 6GW in the middle of the day, adding mere megawatts to the grid will have almost no impact on existing jobs, and in fact will result in greater job creation (4MW of rooftop projects can keep 31 staff employed for a year).

    A recent South African Photovoltaic Industry Association estimate indicates that this change in legislation, shifting the limit for exemption from 1MW to 10MW, would enable 2GW of PV to be installed within 12 months.

    In the middle of the day, this is enough to shift load shedding by up to two stages (for example, from stage 4 to stage 2, or from stage 2 to not at all), reducing the need to run expensive diesel generation if capacity is constrained, but not yet at levels to trigger load shedding.

    Jobs

    This would create jobs for 15 500 site staff, and approximately 2 000 office-based junior and mid-management jobs. I have not yet quantified the job creation potential of related downstream manufacturing and services providers.

    Energy would be available from these plants far sooner than energy from any national procurement programme currently under discussion.

    The minister and other stakeholders must grasp the opportunity that renewable energy presents, not just from a supply perspective but also because it directly addresses the potential job losses in the coal sector and the fear of lost revenue at Eskom. Without a fully operating power system, we will have less jobs and less revenue for Eskom. In contrast, with the appropriate legislation, we can create a much more robust electricity supply environment catering to multiple requirements of economic growth.

    If the grid can absorb the power, the municipalities can continue selling power and jobs can be created, all while avoiding a further crisis at no actual cost to the government or taxpayer, why would we not make one simple change?

    Changing one number, on one piece of legislation, can deliver wins on all the levels required.

    • Daniel Goldstuck is the grid access working group chairman at the South African Photovoltaic Industry Association, an organisation representing the solar PV industry in South Africa
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Daniel Goldstuck Eskom Gwede Mantashe Nersa Sapvia top
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEskom online parliamentary meeting turns into a farce
    Next Article Experian seeks criminal charges against breach perpetrator

    Related Posts

    Moody's flags risk in Eskom grid split

    Moody’s flags risk in Eskom grid split

    1 June 2026
    SA telecoms industry veteran appointed to top Eskom job - Junaid Munshi

    SA telecoms industry veteran appointed to top Eskom job

    29 May 2026
    Eskom breaks ground on R1.2-billion Lethabo solar plant

    Eskom breaks ground on R1.2-billion Lethabo solar plant

    27 May 2026
    Company News
    Finance Transformation Africa charts blueprint for borderless finance

    Finance Transformation Africa charts blueprint for borderless finance

    8 June 2026
    The real hurdle for South Africa's AI voicebots isn't the AI - 1Stream

    The real hurdle for South Africa’s AI voicebots isn’t the AI

    5 June 2026
    The real cloud challenge isn't adoption – it's doing it well

    The real cloud challenge isn’t adoption – it’s doing it well

    5 June 2026
    Opinion

    Clashing judgments leave South Africa’s crypto law unsettled

    2 June 2026
    The author, Pambos Soteriades

    The trap inside South Africa’s banking MVNO boom

    1 June 2026
    The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

    The hidden cost of social media age bans is everyone’s privacy

    29 May 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Finance Transformation Africa charts blueprint for borderless finance

    Finance Transformation Africa charts blueprint for borderless finance

    8 June 2026
    Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

    Every plug-in hybrid on sale in South Africa, ranked by price

    7 June 2026
    SpaceX IPO set to be two times oversubscribed

    Everyone wants a piece of SpaceX

    7 June 2026
    OpenAI plans ChatGPT 'super app'

    OpenAI plans ChatGPT ‘super app’

    7 June 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}