Cape Town - A large chunk of the Department of Mineral Resources and Energy’s (DMRE) R10.7 billion budget for 2023/24, has been earmarked for Eskom and municipalities for the implementation of the Integrated National Electrification Programme (INEP).
DMRE Minister Gwede Mantashe tabled the department’s 2023/24 Budget Vote in Parliament on Tuesday.
Mantashe said that R8.5 billion was earmarked for transfers to public entities, municipalities, and other institutions or implementing agents.
“A large portion of the funds under transfers will be disbursed to Eskom and various municipalities for the implementation of the Integrated National Electrification Programme (INEP).
“Through this programme, households will continue to be electrified through connection to the grid,” he said.
Mantashe added that out of 917 000 indigent households that the DMRE aimed to electrify, 673 946 households were connected and the remainder of 243 054 would be connected in the current financial year.
“Through the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) and the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), we have procured a total of 7786 megawatts (MW) through Bid Windows 4.5 and 6. A total of 2130 MW are connected to the grid. A total of one 150 MW and 784 MW are envisaged to be operationalised in November 2023 and August 2024, respectively,” he said.
Mantashe added that the biggest challenge to addressing the energy crisis was the grid unavailability, resulting in 3200 MW wind capacity of the 4200 MW procured under Bid Window 6, not being allocated. Grid availability is critical to securing electricity supply.
Cape Times