Before we go any further, let's deal with load shedding. It will still be with us until the end of 2024. There is no short-term fix for Eskom. It needs new capacity to stop load shedding. 'Finish en klaar'. Having said that, let's look at the bigger picture and the longer term.
Thirdly, all of this will unleash enormous investment acting as a spur for the country's growth over the next decade and more. Eskom foresee R1,2 trillion investment over the next 8 years to 2030. And that is only the beginning. More investment will take place after 2030. Already we have seen that local and overseas investors have a big appetite for investment in South African renewable energy – every single bid window so far is over-subscribed.
As I was writing this, the SACP at the ANC's Policy Conference was growling that the state should do electricity. The South African Local Government Association has launched a court application that only municipalities may sell power – they obviously want to protect their income streams. Even if they win the court case, they will lose the battle.
Eskom has already embarked on a battery storage programme, aptly named BESS . CEO André de Ruyter has negotiated a R11 billion loan from the World Bank for BESS. The first R4.4 billion worth of contracts have been awarded to Hyosung from South Korea and Pinggao of China. BESS will be installed at Skaapvlei, Paleisheuwel, Graafwater, Pongola, Elandskop and Hexrivier where renewable producers are located. Luckily prices were negotiated before the recent spikes caused by the war on Ukraine.
Previously Eskom management was expecting to end load shedding by September 2022 relying on 'reliability maintenance' to improve performance. However, repeated incidents of sabotage and problems around maintenance programs put paid to those ambitions. Some contracts will fall by the wayside as the war on Ukraine has upset prices on which bids were based and bidders now cannot achieve financial closure. But the thrust is clear. More capacity will be acquired at adjusted prices.
An official question and answer in 2019 in Parliament were quite revealing. Pieter Groenewald from the Freedom Front Plus asked the president why the war room exercise had not solved the problems at Eskom. The president answered that after a short while in the war room he reported back to Zuma that 'there were too many entry points into Eskom, and he could not get his hands around it'.
You are talking rubbish then why England, France and numerous countries are nationalizing the grid and energy generation but a foolish country is following a failed system
You mean green is the new red?
Interesting change in the electricity supply landscape. The question for me in a more price / availability competitive market, who's going to sell to areas with huge historical debt & substantial non-payment culture?
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