South Africa’s indebted power utility may need to borrow an extra R45-billion to purchase diesel and pay inflation-beating salaries to workers, according to S&P Global Ratings. That’s a 50% increase from S&P’s borrowing forecast for Eskom Holdings in November, according to Omega Collocott, director of corporate ratings for South Africa at the company. The utility had a funding plan of R24.4-billion for the year to March, according to a company presentation in November.
Ahead of President Cyril Ramaphosa’s much-anticipated announcement of a comprehensive plan for tackling load-shedding, electricity industry veteran Vally Padayachee has drafted an ‘A-to-Z’ guideline for addressing the crisis over the coming two years. Padayachee, who has 40 years of energy experience and is currently strategic adviser to the Association of Municipal Electricity Utilities, has drafted the proposed interventions in his personal capacity.
The Mpumalanga province is considering steps to diversify its economy away from its reliance on coal mining and coal-fired power generation and to promote the green economy, particularly in relation to climate-resilient agriculture, Premier Refilwe Mtshweni-Tsipane said on July 13. During a trade and investment roundtable discussion with business owners from the US, she said the province was repositioning itself as a “strategic province to implement a successful transition” from coal-fired power to renewable energy.
The UK High Commission (embassy) in Pretoria reported on Wednesday that that country’s Minister (equivalent to Deputy Minister in South Africa) for Africa, Latin America and the Caribbean, Vicky Ford, had visited South Africa on Monday and Tuesday. The visit had focused on the Just Energy Transition Partnership (JETP), women’s economic empowerment, and trade, as well as other areas of mutual interest. The JETP was unveiled at the COP26 United Nations climate conference in November last year. Under it, the UK, France, Germany, the US and the European Union have committed to provide an initial $8.5-billion to fund a just transition of South Africa’s energy matrix from its current reliance on ‘dirty’ energy to green energy in the future. The actual transition plan will, however, be South African-led.
State-owned power utility Eskom has welcomed the arrest of two former employees of former contractor ABB Group (ABB), as well as their spouses, for alleged corruption linked to Eskom contracts worth R2.2-billion. The four were arrested on July 12 by the Investigating Directorate of the National Prosecuting Authority (NPA), in a joint operation with the Hawks and the South African Revenue Service, for alleged corruption related to Eskom contracts awarded to ABB in 2015.
Some of the preferred bidders that participated in the Small Renewable Independent Power Producer Programme (Smalls), which has subsequently been terminated, are considering legal action against Eskom and the Department of Mineral Resources and Energy (DMRE) to have the projects reinstated or to be reimbursed for costs incurred. The 100 MW programme was launched in 2013 for projects between 1 MW and 5 MW in size and was open to bidders employing onshore wind, solar photovoltaic, biomass, biogas or landfill technologies.
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