James Mackay, Energy Council of SA CEO, about to moderate a fireside chat at Enlit Africa on day one. Image Source: ESI Africa.
South Africans should brace themselves for a tougher winter than last year’s, with higher loadshedding stages set to remain.
In the longer term though, two of Eskom’s most senior executives said the power utility is already transforming how it will operate in future.
Segomoco Scheppers, Eskom’s Head of Transmission, said they would, in future, move to an EPC (Engineering Procurement and Construction) model, drawing on the expertise of the private sector for new generation and infrastructure build, management and development.
Scheppers and Caleb Cassim, the power utility’s acting group CEO, had a fireside chat with James Mackay, Energy Council of SA CEO, on the opening day of Enlit Africa 2023 in Cape Town.
South Africans should expect a winter of Stage 6 peaks and a best case scenario of Stage 4, the audience in attendance heard.
“We will be starting the winter on the back foot. It will be a tough winter. We must acknowledge Eskom’s shortcomings as well,” said Cassim.
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Cassim said we needed to look at the energy landscape of last winter compared to this year. He said this year South Africa is without nearly 3,000MW because Kusile power station (2,000MW) and Koeberg nuclear power station (900MW)are not available to the national grid.
He said Eskom would “manage the winter to the best of our ability.”
This would range from infrastructure to finance to legal, among others.
“Reality is, it’s going to be tough,” said Cassim. If we can keep peaks to Stage 6 and limit it to Stage 4 we will have a successful winter.”
Cassim said grid stability is the utility’s key priority.
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Cassim said one of the biggest questions he is frequently sked is whether South Africa will be plunged into a complete blackout.
“I can confidently say we are not going to get there. I don’t lose sleep over a blackout. I lose sleep about reaching Stage 8.”
The acting group CEO said he was confident in the competence of the team tasked with turning the country’s energy fortunes around.
Cassim said seven control checks needed to be reached in order for a blackout to happen.
Eskom to operate completely differently in future
Eskom has run scenarios and is confident it could stave off a complete blackout with the expertise at the utility, he said.
Scheppers, responding to questions about Eskom’s future, said the process to set up and operationalise the National Transmission Company is at an advanced stage.Eskom had completed due diligence internally as well as with the labour movement and suppliers, among others.
The transmission review process is also at the tail-end in terms of licenses subsidiaries would have to apply to and obtain from Eskom. Public hearings had also been completed.
Part of the process was providing clarity to lenders on debt solutions to Eskom’s balance sheet.
Positive balance sheet augurs well for projects
Cassim said one positive is that Eskom will not have to borrow for the next five years as it has a positive capex which will enable it to be spent on capital projects.
He also touched on the vacant CEO position. The Eskom board, he said, is currently interviewing after which the necessary processes will be followed.
Cassim said investigations into corruption is increasing and that Eskom had brought in additional resources to assist in this process. But the lack of convictions, “especially in the more higher profile cases” is still worrisome.
Cassim said if this were to happen, it would instil confidence “inside Eskom and in the greater society.”
He concluded by saying that priority number one for the electricity utility is generation and restoring transmission.
“We don’t have time on our side. Every day and every week is crucial for the country.”
Enlit Africa (the unifying brand for African Utility Week and POWERGEN Africa) invites you to join the conversation 16-18 May 2023 in Cape Town, South Africa.