Page 6 - AfrElec Week 08 2021

AfrElec ESKOM AfrElec

Eskom unbundling

set for 2022

POLAND SOUTH Africa’s Eskom is expected to complete corruption.
its unbundling into separate transmission, gen- The restructuring of Eskom is in line with its
eration and distribution divisions by December turnaround plan, which was approved by the
2022, the country’s National Treasury said this Department Public Enterprises in 2019.
week. The poor performance of Eskom’s plants,
Transmission is expected to be completed by which subsequently requires the utility to imple-
December, while the separation of the genera- ment frequent power cuts, continues to con-
tion and distribution divisions is set for Decem- strain economic recovery.
ber 2022. This was shown in 2020 when Eskom imple-
The unbundling will be overseen by Eskom mented load-shedding for 52 days despite there
CEO Andre de Ruyter, along with the direc- being reduced economic activity due to the lock-
tors-general of the National Treasury, the downs in response to coronavirus (COVID-19).
Department of Mineral Resources and Energy, Other changes include opening up the market
and the Department of Public Enterprises. to private providers.
Meanwhile, the government confirmed that The Treasury said that the Independent
it had allocated Eskom ZAR56bn ($3.9bn) for Power Producer (IPP) Office, part of the Min-
2020/21, of which ZAR6bn ($412mn) of the eral Resources Department, was in the process
equity allocations had been provided by Sep- of evaluating bids for 2,000 MW of emergency
tember 30, 2020. power from IPPs.
The utility has been allocated a further Additionally, the department is expected to
ZAR31.7bn ($2.2bn) for 2021/22 by the initiate a fifth bid window to buy 2,600 MW of
government. wind and solar power from renewable energy
The funds are meant to stabilise the utility IPPs. Projects are expected to generate power
while the government restructures it into three from July 2022.
separate entities under Eskom Holdings SOC The Treasury is also expected to begin pro-
Ltd. curing 11,813 MW of new electricity capacity
from IPPs, including 6,800 MW from renewable
Reforms sources.
At the end of March 2020, Eskom began imple- The procurement of power from IPPs is
menting its revised business models for each anticipated to cost the government ZAR200bn
division and appointed divisional boards. These ($13.7bn) and the total value of the signed agree-
boards are accountable for strategy, business ments to procure renewable energy from private
performance and functional compliance in a partners is projected to amount to ZAR176.7bn
bid to improve business practice and to reduce ($12.1bn) by March this year.™

P6 www. NEWSBASE .com Week 08 25•February•2021