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AfrElec POLICY AfrElec

SA on course for record power cuts

as Eskom seeks to borrow $2.3bn

SOUTH AFRICA SOUTH Africa is on course for record power could produce renewable energy, gas-fired elec-
cuts in 2021, with 650 hours lost in the first half tricity and host battery storage, according to a
of the year, compared with the 859 hours lost in presentation made to government, business and
the whole of 2020. labour union leaders, Bloomberg reported.
Figures from South Africa’s Council for The utility will ultimately need to raise more
Scientific and Industrial Research (CSIR) than $10bn over the next decade for the pro-
showed that the 650 hours lost, 76% of the total gramme, said Mandy Rambharos, the head of
load-shedding experienced during the whole of Eskom’s Just Energy Transition programme.
2020, meant that there were power cuts 15% of Eskom already has debt of about ZAR400bn
the time. ($27.8bn), mainly from an overrun in the cost
The CSIR’s data showed that system demand of construction of two coal-fired power plants.
increased by 5% in H1 2021 compared to H1 Debt from development finance institutions is
2020, but was 2.2% lower than in H1 2019. generally cheaper than borrowings from com-
The CSIR said that coal continued to domi- mercial lenders.
nate the South African energy mix, contributing Eskom and South Africa are under pressure
81.8% in H1 2021 as an additional coal unit at to cut emissions of greenhouse gases (GHGs)
Kusile power station entered into commercial and other pollutants as parts of the country are
operation. among the world’s most polluted and the utility
The contribution from renewable energy accounts for about two-fifths of the emissions.
sources totalled almost 11% (solar PV, wind, South Africa is the world’s 12th biggest emitter
hydro, concentrating solar power (CSP), whilst of the climate-warming gases and almost all of
zero-carbon energy sources contributed 14.3% its power comes from Eskom’s fleet of 16 coal-
(renewables and nuclear). fired plants.
The CSIR said that its analysis was based on The financiers include the African Devel-
figures originally published by Eskom. opment Bank (AfDB), the New Development
The CSIR said that load-shedding was largely Bank, Germany’s KFW Development Bank, the
driven by the declining energy availability factor World Bank and the French Agence Francaise de
(EAF) of the existing coal fleet. Developpement.
Overall, the EAF was 61.3% for H1 2021, The news comes as load-shedding is set to
compared with 65% in 2020 and 66.9% in 2019. continue continuing this week, with Eskom
This meant that load-shedding caused by announcing it will be implementing load reduc-
unplanned outages of up to 15,300 MW was tion in KwaZulu Natal, Gauteng and the Free
experienced, and was greater than 10,000 MW State to avoid network overloading in high-den-
for more than 80% of H1 2021. sity areas at the weekend.
Meanwhile, Eskom confirmed that it was in The power utility said load reduction will take
talks to raise $2.3bn from at least five develop- place between 5 pm and 10 pm.
ment finance institutions to help fund its partial Areas such as Habong East, Vaal, Soweto,
exit from coal-fired power generation. Msunduzi and Newcastle will be affected by the
The money would be used to help the com- load reduction.™
pany re-purpose coal power plants into sites that

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