) licensing threshold for embedded generation projects from one megawatt to 100MW. The decision was a significant step towards addressing the crippling impact of load-shedding on the economy, and could unlock up to 1 000MW of additional capacity on the grid. This would significantly reduce load-shedding.
By promoting greater use of LPG in households, even as business increases their embedded generation capacity, we can relieve the pressure ongrid from both ends simultaneously. This would also give Eskom the space to take a methodical approached to maintenance, rather than the erratic approach that has worsened load shedding for households and business alike.
South Africa could easily increase its LPG consumption sixfold by implementing swift changes in policies related to the use of LPG in households for cooking and heating purposes. If South African households switched to gas for cooking, we would simultaneously decrease demand for electricity, and grow the LPG economy.
The FBAE policy allows for a subsidy to indigent households for alternative energy where electricity is not available. Unlike the free basic electricity policy, very few municipalities have made effective use of the FBAE. And yet it provides an existing vehicle through which municipalities can directly help indigent households to make the shift to LPG. This recommendation was made by the Competition Commission in its 2017Price is an important consideration across our Covid-battered economy.
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