Chairperson, South Africa's electricity network is going to come under increasing strain over the next few years, as electricity demand is increasing and very little new generation is being brought on line in the short term.
The permanent removal of 600 megawatts from the grid, due to incompetence at the Duvha Power Station earlier this year, has also added immense pressure to the grid.
It is therefore imperative that the government's solar water heater programme is speeded up, as this offers one of the quickest solutions to reducing electricity demand in South Africa. It is unclear, however, how the government intends to reach its target of one million solar water heaters by 2014.
Currently, this programme is being driven only by the Eskom rebate system, which has so far seen only 100 000 solar water heaters installed since its inception two years ago. Eskom has now also announced that it will be reducing the rebate, as it is running out of funds. It is clear that the budget that has been given to this programme falls way short of that required to fund one million solar water heaters.
Government therefore needs to announce a comprehensive programme, with adequate funding and a proper plan, which can reach its targets in its specified time frame. The market needs certainty, and the South African electricity grid desperately needs the reduction in electricity demand that it can bring. Thank you.