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Ramokgopa’s R440bn Grid Expansion Plan Sparks Concern
Electricity Minister Kgosientsho Ramokgopa has announced an ambitious plan to expand South Africa’s national grid at a staggering cost of R440 billion—roughly 20% of the country’s Gross Domestic Product (GDP).
The initiative aims to add 3,200 Megawatts of generation capacity, a move the minister claims will stimulate job creation and boost the manufacturing sector. However, industry experts warn that soaring electricity costs are already crippling manufacturers, leading to price hikes, inflation, and job losses.
Manufacturers Struggle Amid Power Costs
Business Unity South Africa (BUSA) has raised concerns that the manufacturing sector is being squeezed by high electricity prices, making it harder for companies to survive. The added financial burden is often passed on to consumers, fueling inflation and resulting in further job cuts.
While the government promotes its expansion plan, independent solar power installations have already contributed more than 3,200MW to the grid—helping ease load shedding without state intervention.
Despite the relief brought by private solar users, the government is set to impose new regulations requiring grid-connected solar installations to be registered at a cost of R20,000 or more. This move has sparked criticism, with many viewing it as an unnecessary financial burden on individuals and businesses investing in alternative energy solutions.
Years of Neglect and Costly Mistakes
South Africa’s electricity woes stem from years of poor maintenance, corruption, and mismanagement. Power stations remain vulnerable to sudden breakdowns due to neglected upkeep, while major projects like Kusile and Medupi have suffered from massive budget overruns and delays, making them among the most expensive coal-fired power stations globally.
With a price tag of R440 billion, critics are questioning how the government plans to prevent further financial mismanagement and waste. As concerns mount, South Africans are left wondering whether this latest expansion plan will truly deliver a stable power supply or simply become another costly blunder.
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Sourced:The Citizen
