Several factors combined to cause the loss of 18 000 MW of generation capacity, requiring Eskom to initiate stage 6 load shedding. After the recent barrage of power cuts disrupting the lives of millions of South Africans, their businesses, and the economy, President Cyril Ramaphosa addressed the nation on Monday, July 25.
In his speech, the president outlined actions being implemented to deal with the crisis as “South Africans are justifiably frustrated and angry,” that an issue spanning more than a decade has not yet been effectively resolved. Ramaphosa announced a series of actions to be taken by the government after in-depth conversations with the Eskom executive management, power station managers, and former Eskom employees that took place over 10 days.
To shape the response and ensure that all sections of South African society are involved in creating a solution, the president also sought input from labour unions, Business Unity South Africa, the Black Business Council, party leaders, community leaders, and several energy industry professionals.
Industry comment
NAACAM Executive Director, Renai Moothilal comments “NAACAM welcomes the set of actions announced by President Ramaphosa, to deal with SA’s energy situation. The lack of stability in electricity supply has been a major constraint to automotive related production in the past few years resulting in deteriorating competitiveness levels.”
Also commenting on the national address, Denise van Huyssteen, Chief Executive Officer at Nelson Mandela Bay Business Chamber, shared her comment with us “We welcome President Ramaphosa’s announcement to implement wide-ranging reforms for the electricity supply industry. We are particularly encouraged that steps will be taken to improve performance of the power stations, recruit key skills and remove the licensing threshold for embedded generation,” she said.
To prepare for this, Huyssteen said that the Nelson Mandela Bay Chamber of Commerce has already created a renewable energy cluster with the goal of combining the electricity needs of some of the region’s top enterprises to attain the size and efficiency needed to acquire solar and/or wind power. “This collaborative initiative will be important in helping to secure stable electricity supply, while at the same time reducing the carbon footprints of manufacturers.
Although our initial focus lies with high-energy industrial users, we foresee that this initiative could in the longer term, also benefit mid-sized manufacturers, shopping malls, hotels, and eventually small businesses and residences, thus reducing the strain on the national grid.
Ultimately our vision is for businesses to become more self-reliant and sustainable while enhancing the attractiveness of Nelson Mandela Bay as an investment destination and securing jobs and job creation prospects,” she said.
Energy Plan
Ramaphosa has outlined that there are two overarching objectives to be met: Improve the performance of Eskom’s existing power stations and add as much new generation capacity to the grid as quickly as possible. This will be accomplished by eliminating barriers to new generation capacity and harnessing energy from a variety of sources, including Eskom, independent power producers, businesses, and homes. The aim is that this will enable diversity in our energy sources and attain long-term energy security.
Ramaphosa also stated that to effect change, several preexisting challenges that contributed to load shedding must first be addressed. “South Africa has installed capacity to produce approximately 46 000 MW of electricity, and at peak times we use about 32 000 MW of electricity. However, only 60% of this installed capacity is available at any given time due to some units going through planned maintenance and others having unplanned outages,” he said.
Many of South Africa’s power plants were built decades ago with the ones owned by Eskom being 35 years old on average. In general, Ramaphosa said, their performance declines as they age. Eskom’s shortage of skilled workers, postponed maintenance and widespread theft were also referenced for exacerbating an already severe situation. Additionally, the delay in construction of new power stations, Medupi and Kusile, failed to help overcome the electricity struggle due to several obstacles and design flaws.
Capable management
After years of state capture and mismanagement, Ramaphosa said, “A capable and effective management team is working hard to turn the utility around and reverse the decay. However, as things stand, we are still faced with an electricity shortage of up to 6 000 MW.”
Already tackling the most burdensome issues, Ramaphosa announced that the deal reached between Eskom and its employees has made it possible to carry out crucial repairs on the units that had malfunctioned and to resume regular energy-producing activities.
Progress has also been made by law enforcement agencies in tackling sabotage, theft, and fraud at Eskom’s power stations and other key installations.
While these actions to stabilise electricity generation have brought relief from the current load shedding, the system remains vulnerable and unreliable.
As this is a national crisis, Ramaphosa looked to citizens for their support, “Just as we rallied behind the national effort to contain the Covid-19 pandemic, so too must we now contribute wherever we can.”
He went on to reference 6 ways in which South Africans can help:
- As households we can use electricity sparingly.
- We must pay for services and prevent illegal connections.
- We must join in a massive rollout of rooftop solar and contribute to the solution.
- Business needs to reduce their consumption through greater energy efficiency.
- Business should seize the opportunities that have been created and invest in generation projects.
- Labour should engage in a spirit of partnership, mindful that achieving energy security is the most important thing we can do to protect existing jobs and create new ones.
