Eskom can be fixed in two years: chairperson
The energy crisis in South Africa can be resolved in 18 to 24 months, says Eskom chairperson Malegapuru Makgoba, but it needs full commitment – and a concrete plan.
Speaking to ENCA, Makgoba said that load shedding could be a thing of the past – but only if the government and other stakeholders stopped the endless debates and put their focus on a concrete plan of action.
He added that experts have been resolute on the need for an implementation plan that has clarity of policy and thought.
Earlier this week (25 July), President Cyril Ramaphosa announced his new energy plan that will change regulations to allow for the fast-tracking of new energy capacity.
Broadly, the president’s interventions include:
- Boost the recruitment of skilled workers at Eskom and address sabotage and theft at the utility;
- Improve logistics to ensure that diesel-fired turbines are supplied in a timely fashion;
- Allow Eskom to buy excess power from private producers;
- Import more power from countries in the region;
- Implement a programme to incentivise the efficient use of power to cut demand by 600 megawatts;
- Easing local content requirements so that renewable-power projects awarded in the so-called Bid Window 5 can go ahead;
- Boosting the size of the sixth bid window and expediting further rounds;
- Announce a plan to deal with Eskom’s debt before October.
While the interventions lay out what the government will be doing to help end the crisis, the president has called on the private sector to also play a crucial role in the new energy plan – especially in attracting major investment schemes.
Matthew Mflathelwa, general manager for strategy and planning at Eskom, said that the new plan could not be completed alone and may require as much as R1.2 trillion of investment.
He said that the state-owned utility, which has close to R400 billion in debt, will approach private investors for the R990 billion it requires to fund generation capacity.
Despite being welcomed by most sectors, the plan has faced criticism for not putting in place any deadlines or concrete implementation strategies to achieve its goal.
Private businesses and unions share the need for the new plan not to be an empty strategy. Both parties argue that rapid investment is the best way forward regarding its implementation.
Business Unity South Africa’s (BUSA) chief executive officer Cas Coovadia urged the government to provide more detail on the plan, adding that there needs to be a clear execution plan, hard deadlines and accountability for delivery.
Business for South Africa (B4SA) said that the new plan from Ramaphosa offers a blueprint for private sector partnerships but that government must not forget to invest rapidly in the transmission grid and a standardised wheeling framework.
The Congress of South African Trade Unions (Cosatu) welcomed the establishment of a new energy task force under the plan, but implementation in the form of rapid investment through the Just Energy Funding should be prioritised.
The union added that the utility problems could have been avoided if the government had moved with greater speed to implement its previous commitments.
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