Page 14 - AfrElec Week 50 2020

AfrElec NEWS IN BRIEF AfrElec

solve Eskom’s financial in the period, versus R52bn in the same SOL AR
period last year, a 4.4% increase. Eskom has
position says CFO redoubled its efforts to curb coal costs, which juwi South Africa to build
remained relatively manageable, with an
Eskom’s Interim Results for the six months increase of only 4.6% in the average purchase solar PV plant at Pan
period ended September 2020 show the cost per ton of coal compared to 14.2% in
company has achieved progress in some key September 2019. African’s Evander Mine
areas of the business, setting it on a path to However, Eskom and IPP open-cycle gas
operational and financial stability. turbines (OCGTs) were utilised frequently Pan African says it has entered into an
Earnings before interest, taxation, to support a strained power system. The engineering, procurement and construction
depreciation and amortisation (EBITDA) Eskom OCGT’s generated 496GWh at a cost (EPCM) agreement with juwi South Africa
increased to R28.1bn (September 2019: of R1.4bn in the period, an increase from the to construct its 9.975 MW solar photovoltaic
R26.4bn). R1.1bn spent on 331GWh during the same plant at Evander Mines in the country.
Eskom recorded a net profit, after tax, of period last year. Construction will commence in the March
R83mn while navigating a very challenging Eskom’s chief financial officer, Calib quarter of 2021, with first power expected in
operating environment. Revenue grew to Cassim, said: “Despite having achieved 48% the September quarter of 2021, it said.
R108.7bn compared to R107.5bn in the same of our funding requirements during the Part of the international juwi Group, juwi
period last year, marking an increase of 1.1%. period under review, our access to funding in South Africa is one of the world’s leading
Sales volumes fell 10.3% in the period as both domestic and foreign markets remains renewable energy companies. To date, juwi
a result of the COVID-19 national lockdown constrained due owing to low investor South Africa has built six utility scale solar
that took effect in March 2020. confidence as a result of poor financial plants totalling 207 MW under the South
Employee benefit costs and other operating performance, saturated borrowing capacity African Government’s Renewable Energy
expenses were well contained with employee and the recent rating downgrades.” Independent Power Producers Programme,
benefit costs marginally increasing to The utility’s CFO added: “These factors Pan African said.
R16.7bn, compared to R16.4bn in September have a direct effect on market appetite The Evander Mines solar photovoltaic
2019. and Eskom’s future cost of borrowing and plant will utilise bi-facial module technology
In its attempts to rein in costs, Eskom may hinder execution of our borrowing to maximise its yield and it will be constructed
relied mainly on natural attrition and programme. Eskom will however continue to on previously disturbed land owned by
voluntary separation packages for managerial explore all avenues.” Evander Mines, Pan African said. The plant
staff to reduce headcount, and there were will provide an estimated 30% of Elikhulu’s
no salary increases or incentive bonuses for power requirement during daylight hours and
managerial level staff. is expected to materially reduce electricity
Primary energy costs rose to R54.3bn costs at this operation. Furthermore, the
Evander solar photovoltaic plant is expected
to enhance the reliability of the power
supply during daylight hours and result in
an expected CO2 saving of more than 26,000
tonnes in its first year of its operation.
Elikhulu has capacity to process an
estimated 1 Mt/mth of tailings with a
projected output of approximately 55,000 oz/
mth of gold.
The total cost of the Evander solar
photovoltaic plant is ZAR140mn ($9.4mn),
with a calculated payback on this investment
of less than five years, Pan African said.
“This solar photovoltaic plant further
reduces Elikhulu’s environmental impact and
is just one of a number of initiatives in the
group’s commitment to producing high-
margin ounces in a safe and efficient manner,
while investing in local communities and
minimising the environmental impact of
operations,” it added.

P14 www. NEWSBASE .com Week 50 17•December•2020