Energy expert decries Ramaphosa’s ‘mischievous’ power plan, IPPs jump for joy

President Cyril Ramaphosa speaks during a lecture at the Lee Kuan Yew School of Public Policy in Singapore. REUTERS/Edgar Su

President Cyril Ramaphosa speaks during a lecture at the Lee Kuan Yew School of Public Policy in Singapore. REUTERS/Edgar Su

Published Jul 27, 2022

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Johannesburg - Experts in the energy sector are divided on President Cyril Ramaphosa's new energy plan with some describing the plan as a “mischievous scheme”, while others are relieved at the new interventions.

IOL spoke to three energy experts following Ramaphosa's new energy plan which was introduced on Monday night as an extraordinary measure to address the country's energy crisis which is riddled by constant load shedding.

Tshepo Kgadima, an energy analyst with 20 years experience in the sector, slammed the new plan as a "mischievous scheme" aimed at driving electricity prices through the roof to the detriment of poor South Africans.

He also accused Ramaphosa of interference at Eskom, and also slammed the battery storage plan as expensive, tantamount to wasteful expenditure.

“The proposal to install 5000MW of battery storage is an expensive and futile exercise which in actual effect constitutes fruitless and wasteful expenditure.

“Eskom is in load shedding because of its grossly incompetent management and board as well as the grubby interfering politicians who are the root cause of electricity supply crisis and exorbitant electricity prices in the country,” he said.

The new measures come as result of a series of consultative meetings held by the president including different sectors to find solutions towards stabilising the crippling power utility, which he described as “unreliable and vulnerable”.

Ramaphosa’s long list of measures are aimed at stabilising energy security in the country by fixing Eskom and improving the performance of its existing fleet of power stations over the next 12 months by increasing the maintenance budget.

These also include Eskom importing power from neighbouring countries, hiring former plant managers who left the power utility, recruiting people who have the skills required to drive Eskom forward and cutting the red tape around procurement of maintenance spares.

Energy expert Lungile Mashele said liability maintenance was the biggest cause of load shedding.

Mashele was concerned about the President announcing skills which are necessary and needed at the utility, however neglecting to mention money which is also a very important factor in ensuring success of the plans.

“The bypassing of procurement guidelines in order to ensure quick and efficient procurement as per the power station managers request is a good move and the single most important thing that could end load shedding in the next year if carried out efficiently.”

Eskom will also procure power from private players such as mines, paper mills and shopping malls, as well as from neighbouring countries.

South African Independent Power Producers’ Association chairman Thomas Garner expressed joy as IPP’s and private sector players would be roped in to address the energy crisis by selling power to Eskom.

He said the ANC government had finally seen the light and allowing private sector involvement would solve the country’s energy crisis.

Mashele said buying power from the private sector was a good idea as the power was readily available, however, there were concerns around costs.

Ramaphosa went on to announce the decision to form a National Energy Crisis Committee which would focus on ensuring that the measures are carried out.

Kgadima believes that the president is unlawfully interfering in Eskom's operations with the committee, which consists of people, he said were not skilled in energy operations.

The power utility is also expected to be constructing its first solar and battery storage projects at Komati, Majuba, Lethabo and several other power stations which are expected to boost the system with over 500 MW.

IOL