Page 7 - AfrElec Week 44 2022

AfrElec ESKOM AfrElec

Eskom’s debt deal requires

bringing gas, nuclear

power into energy mix

SOUTH AFRICA SOUTH Africa’s Finance Minister Enoch much money has been pumped into Eskom,
Godongwana said that the government’s South Africa has not fixed the problem of con-
commitment to take on between a third and necting power to the grid. The country intro-
two-thirds of the struggling state power utility duced regulations to allow renewables into the
Eskom’s ZAR400bn ($22bn) debt will come with system in 2010 but, 12 years later, load shedding
conditions. has become worse.
Some of the conditions, according to the According to the minister, the government’s
minister, include bringing “old reliable tech- start-and-stop stance towards the Renewable
nologies” like gas and nuclear power into South Energy Independent Power Producer Procure-
Africa’s energy mix, News24 reports. ment Programme (REIPPP) was partly to blame.
Addressing guests at the South African It took two years to finalise power purchase
Chamber of Commerce and Industry (SACCI) agreements with independent power producers
lunch on October 31, Godongwana said that (IPPs), which was accomplished in 2018.
South Africa needs more reliable power sources,
gas and nuclear included. 25 wind and solar projects announced in 2021
The event followed last week’s medium-term that were supposed to add almost 2,600MW to
budget policy statement in which the govern- the national grid also faced delays, says News24.
ment announced plans to take over up to two- The government has now extended that bid win-
thirds of Eskom’s debt. It is still in talks with dow to 56 projects that should bring 5,200MW
Eskom’s lenders about how this debt transfer will of renewable energy capacity to the grid.
work, writes News24. According to the media company, everything
The transfer is said to be tied to strict condi- is still stuck in the bidding phase. Meanwhile,
tions, including the unbundling of Eskom into statistics cited by Godongwana estimate that
three entities, as well as the more stringent man- power constraints contribute 40% to the coun-
agement of its costs and the addressing of bad try’s economic underperformance.
debts. Godongwana also said on Monday that However, Godongwana believes that the
investment in new electricity generation may be problem lies beyond these renewable energy
part of these conditions. project delays, saying that there are “old technol-
According to the Treasury, the loss-making ogies,” “some nuclear” and “some gas” that can
state-owned enterprise (SOE), which has been provide South Africa with reliable electricity.
surviving on government guarantees, is the “Any mention of those is attacked by the green
biggest known risk to the economy and public energy groups and the environmentalists,” he
finances. Godongwana said that the government said, as quoted by News24. The minister argued
has no choice but to take on the power utility’s that South Africa’s integrated resource plan of
debt. 2019 spoke about all those and was accepted as
“I don’t have a choice. I’m between a rock and the country’s energy policy.
a hard place. If Eskom defaults, I’ve provided Godongwana said that he is not a propo-
guarantees to Eskom of almost ZAR350 billion,” nent of dirty energies or a coal dinosaur, but
the minister was quoted by News24 as saying. that South Africa needs electricity now, News24
Godongwana also pointed out that while so reports.™

Week 44 02•November•2022 www. NEWSBASE .com P7