afrol News, 4 September - South Africa's public enterprises minister Alec Erwin says SA needs to invest at least US $126 billion to rescue the country from becoming energy scarce.

According to Mr Erwin, an above-average demand for electricity and a lack of investment has led to an energy shortage in the country, acknowledging that recent supply problems and blackouts had become familiar challenges in South Africa.

"The price of energy is inescapably rising and it won't come down," he told a Cape Times Safmarine Business Breakfast media briefing on Wednesday.

However, he conceded the energy crisis was a global problem, with many countries struggling to attract investment for renewable energy, leading to a global shortage of equipment for energy generation.

The building programme in South Africa will take over eighteen years to complete, with two new power stations due to open in 2012 and 2013. Programme aims to add 40,000 MEW to South Africa's generating capacity, with half coming from nuclear power.

Meanwhile Mr Erwin has warned South Africans to save energy to avoid a new round of widespread power cuts, saying the country is facing more electricity price shocks.

"It is the only way to prevent continued pressure on the system over the next three, four years is energy efficiency," Mr Erwin.

He further said South Africa faced further sharp increases in price of electricity, and ruled out large-scale state energy subsidies.

"We're going to have to increase prices again over the next three or four years," Mr Erwin said. He added that the basic wholesale price would have to be doubled.

SA blackouts are estimated to have cost the country over R50 billion, according to National Energy Regulator of South Africa (Nersa).

By staff writer

© afrol News

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