To stimulate crucial gas demand and address a broader economic challenge, Electricity and Energy Minister Dr. Kgosientsho Ramokgopa has announced a significant increase in the operational capacity target for new gas-to-power (GtP) plants in South Africa. The load factor, which measures how much electricity a plant produces compared to its maximum potential, will jump from 25% to over 50%.
This policy shift, revealed during the release of Eskom’s winter outlook, directly responds to market feedback and aims to mitigate South Africa’s impending “gas cliff,” a projected severe shortage of natural gas from Mozambique later this decade. Ramokgopa stressed that this move is about solving an “energy and economic problem,” not solely an electricity issue.
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