South African power utility Eskom Holdings SOC Ltd has reduced its debt to less than R400 billion ($28 billion) as discussions ensue to secure funding for a transition to renewable energy, Public Enterprises Minister Pravin Gordhan.<\/p>\n
The state-owned company announced in May it had reduced debt by a fifth to about R401 billion.<\/p>\n
\u201cEskom has done further work to reduce the debt to below R400 billion,\u201d Gordhan said Wednesday by phone from the capital, Pretoria. \u201cThe exact number is still a work in progress,\u201d he said, without providing more details.<\/p>\n
Eskom hasn\u2019t been producing enough electricity to meet the nation\u2019s needs, resulting in intermittent power shortages. The utility isn\u2019t generating enough cash to cover its operating expenses and interest bill, leaving it dependent on government bailouts to survive.<\/p>\n
Chief executive officer Andre de Ruyter has taken measures to cuts costs and find green funding to reduce the company\u2019s reliance on government support. That could be dependent on it retiring coal-fired power plants ahead of schedule.<\/p>\n
\u201cWe have had quite a few discussions with quite a few interested parties, including many development finance institutions, who are prepared to provide concessional funding to Eskom\u201d for a transition to clean energy, Gordhan said. \u201cThe ultimate solution will be to integrate all these solutions to enable a just energy transition.\u201d<\/p>\n