Energy crisis: Mabuza confident about Eskom’s proposals to address the crisis

Appealing to MPs to give the newly elected Eskom board a chance – amid the ongoing blackouts hitting at residents and business in South Africa hard – Deputy President David Mabuza today assured the country of a turnaround in the energy crisis.

He unveiled measures the embattled power utility would introduce in the short to long term. Fielding questions from MPs in the National Council of Provinces, Mabuza said he was confident about Eskom’s proposals to address the energy crisis.

These he said included:

-Building almost 8 000km of transmission lines over the next 10 years;

-Creating the financing and regulatory support environment for land and servitude purchases – part of the just energy transition; and

-A holistic approach on decarbonisation and environmental compliance, by accelerating the retirement of SA’s ageing and unreliable coal-powered supply sources.

Independent Power Producers

With government pinning its hopes on independent power producers (IPPs), Mabuza said contracts with six IPPs have been concluded this year, “while an additional two projects are expected to be concluded before December”.

“Eskom will purchase power from independent power producers and provide it to the consumers,” said Mabuza. “We remain optimistic that these interventions – under the guidance of the new board – will yield positive results that will lower and eventually end the current challenges.”

Board will ensure energy availability

Mabuza said Cabinet was “confident that the technical expertise within the board will ensure that we attain the target of Eskom’s energy availability, above the current undesirable levels that are below 60%”.

“We are confident that the board is up to the task, with their presence, bringing the necessary change that will end the current situation,” he said.

Technical skills

On whether there were plans by government to assist the Eskom board to attract the much-needed technical skills to address persistent glitches in power stations, Mabuza said: “The Eskom board has already submitted a list of skills – which are very scarce in the country – required by the power utility.

“These are to be circulated through the department of home affairs for anyone wishing to come into the country with such skills, to be easily appointed to assist the power utility.

“Government is in the process of assisting the board in whatever way possible, to ensure that all the needed and relevant skills are acquired.

“We have taken decisive steps to capacitate the leadership of Eskom through the appointment of the new board,” he said.

Economic and recovery plan

On the economic and recovery plan being explicit in including energy security as one of its top priorities, load shedding achieving the opposite in piling pressure on households and jobs – against the background of a 30% increase in the cost of electricity, Mabuza said: “We are aware of the negative impact that load shedding is bringing and the hardship that our people are facing.

“The rising cost of electricity definitely impacts negatively on the lives of our people and livelihoods – making everything to be more expensive. It is a situation that we want to correct.

“I am confident that in the short term, we will be able to avert the energy crisis by allowing more generation and more players in the generation space.

“This approach will not allow Eskom as a monopoly to dictate the price. “The route the country is taking by allowing more independent producers, that can produce and sell energy, will create a very competitive environment in the generation and sale of electricity,” said Mabuza.

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– brians@citizen.co.za