Page 12 - AfrElec Week 48 2021

AfrElec ESKOM AfrElec

Moving away from coal can solve

Eskom’s power problems, says CEO

SOUTH AFRICA ESKOM could gain an opportunity to emerge has prompted criticism from Mines and Energy
from years of crisis by shifting from coal-fired Minister Gwede Mantashe, a powerful figure in
power generation towards natural gas and the governing African National Congress and
renewables, CEO Andre de Ruyter said, Reuters former trade union leader, who in August lik-
reported. ened it to “economic suicide”.
Eskom has implemented power cuts for more De Ruyter said Eskom had identified two
than a decade, which has held back economic potential gas projects – one with a 3,000-MW
growth and deterred investment. capacity at Richards Bay and another 1,000-MW
“From the crisis that Eskom currently finds one at its retiring Komati coal plant. By 2050,
itself in – very poor plant performance, exces- Eskom hopes to achieve “net zero” carbon emis-
sive debt – this contains the opportunity for us to sions through offset initiatives.
really act as the foundation for a new dispensa- De Ruyter, who took the helm of Eskom in
tion in South Africa,” CEO Andre de Ruyter told January 2020, said Eskom hoped to get the “lion’s
the Reuters Next conference. share” of the $8.5bn of financing that South
“Hopefully we can persuade people to come Africa secured from Western countries in a deal
and set up factories here, to build components announced at the COP26 climate conference in
for renewable energy, that will create jobs that November.
will create demand for electricity which will turn It will prioritise spending that money on
this challenge that we have got at the moment building transmission infrastructure to connect
from a vicious downward cycle into a virtuous to the best solar and wind acreage in the country,
upward cycle,” he added. as well as strengthening the distribution grid to
Eskom operates 15 coal-fired power stations accommodate more private generation.
that generate more than 80% of the country’s Eskom has been trying to lift the performance
electricity but which regularly break down of its coal fleet through deep maintenance, but
because of underinvestment in maintenance in that has yet to yield results. Reflecting the grav-
recent years. ity of the situation, De Ruyter said it could take
It also operates the Koeberg nuclear power another three to four years to see a significant
plant (NPP) and a handful of smaller pumped change in the energy availability factor of the coal
storage, hydroelectric, backup gas plants and a units still in operation.
wind farm. Outside Eskom, South African mining com-
It has roughly ZAR400bn ($25bn) of debt that panies have plans for 3,900 MW of renewable
it services through regular government bailouts. energy projects in the pipeline, but the projects
The company is due to shut down about are being held up by red tape.
22,000 MW of coal plants that are reaching the The potential projects, worth an estimated
end of their life by 2035, close to half its 46,000 ZAR60bn ($3.76bn), could help alleviate South
MW of nominal capacity now. The plan is to Africa’s power crisis if given the green light, the
replace some of that with gas and renewables, Minerals Council of South Africa said in a state-
and allow independent power producers (IPPs) ment on 23 November.™
to make up the shortfall.
The plan to move decisively away from coal

P12 www. NEWSBASE .com Week 48 02•December•2021