Economists said that while it would take over a year for South Africa’s economy to recover, the government’s plan to consider other energy alternatives was impressive.
“The transition from coal to other energy alternatives including renewable energy is bold,” said economist, Wits university lecturer Lumkile Mondi.
Electricity blackouts in South Africa which have been common in recent years have been had a huge impact on business and the economy.
In his State of the Nation Address, President Cyril Ramaphosa announced that other forms of energy would be considered.
“Government will soon be initiating the procurement of an additional 11,800 megawatts of power from renewable energy, natural gas, battery storage and coal in line with the integrated resource plan,” he said.
Economist at Efficient group Dawie Roodt said since the economy relied so much on energy, the announcement should be welcomed.
It’s good that the private sector would be able to supply energy instead of only relying on one source, that’s good for the economy,” he said.
Ramaphosa also said that restoring Eskom to “operational and financial health and accelerating its restructuring process” was a priority. Enditem