State looking to create power generation entity ‘outside of Eskom’

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Minister of Mineral Resources and Energy Gwede Mantashe told reporters on the sidelines of the Investing in African Mining Indaba in Cape Town that the government hoped to create a new power generation entity distinct from Eskom.

His remarks came after his opening address at the indaba on Monday morning, where he said government would give the green light to mining companies to generate energy for self-use without a license. They would be able to sell electricity if they were successful in getting a licence.

The comes as Eskom announced on Monday that load shedding would continue until at least Thursday morning. The state-run power utility has about R450bn of debt, and is not earning enough from electricity sales at current prices and volumes to pay off the interest on the debt.

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