Investors to map way forward for SA's second power company - Mantashe

Mineral Resources and Energy Minister Gwede Mantashe on Monday announced that another energy-generating entity, outside of Eskom, should be established.

Minister of Mineral Resources and Energy Gwede Mantashe addressing the annual Investing in Africa Mining Indaba on 3 February 2020 at the Cape Town International Convention Centre. Picture: @GwedeMantashe1/Twitter

CAPE TOWN - Investors will decide on the structure of a second power generating company for South Africa.

Mineral Resources and Energy Minister Gwede Mantashe on Monday announced that another energy-generating entity, outside of Eskom, should be established.

He was speaking at the opening of the Investing in Africa Mining Indaba, where he stated that mining companies too would be allowed to generate their own electricity.

Government published a request for information (RFI) in December, seeking to analyse options on how to procure between 2,000 and 3,000 megawatts of power.

Generated energy must connect to the grid in the shortest possible time and at the least possible cost.

The RFI window closed at the end of last month.

Asked whether investors would be wooed through roadshows, Minister Gwede Mantashe said responses received in the RFI exercise would map the way forward on how to go about with potential energy investors.

"It would be premature of us to say 'we'll have roadshows, we'll do this, we'll do that". We'll assess what the response was, so at this point in time, I can't give you a schedule of what we'll do. We'll always appeal to investors to invest in South Africa. Foreign direct investment is quite important for South Africa's economy."

Mantashe said that all energy sources, not just wind and solar, would be considered to drive this envisioned power generation project.