Drakenstein municipality explores IPP procurement to combat load-shedding

The Drakenstein municipality in the Western Cape – encompassing Paarl, Wellington, Mbekweni, Gouda, Saron, Hermon and Simondium – reports that it is exploring the procurement of electricity from independent power producers (IPPs) to mitigate the negative impact of ongoing load-shedding by Eskom. Executive Mayor Alderman Conrad Poole reports that, working together with the Western Cape government, Drakenstein is investigating a combination of renewable energy resources, such as solar and wind, as well as using gas instead of electricity.
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Unions set to sign 7% Eskom wage offer

The National Union of Metalworkers of South Africa (Numsa) and the National Union of Mineworkers (NUM) have accepted Eskom’s one-year 7% wage deal in principle and will sign an agreement to this effect imminently. This comes after a several-week deadlock in wage talks at the Central Bargaining Forum, which triggered protest disruptions at various Eskom plants and plunged the country into Stage 6 load-shedding for the second time in the power utility’s history.
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Treasury says Pension Funds Act changes encourage infrastructure investment

The National Treasury has published amendments to Regulation 28 of the Pension Funds Act that encourages infrastructure investments by retirement funds, while still leaving the final investment decision to fund trustees. The amendments will take effect on January 3, 2023.
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Roll-Royce SMR reveals shortlist for site of first factory to make major reactor components

Rolls-Royce SMR, a subsidiary company of the UK-based global major power and propulsion systems group Rolls-Royce, has announced its shortlist of locations to build its first factory (of three) that will produce the components for its small modular nuclear reactor (SMR). The Rolls-Royce SMR company was set up by the Rolls-Royce-led SMR consortium, the other members of which were (and now shareholders in the company are) Assystem, Atkins, BAM Nuttall, Jacobs, Laing O’Rourke, the (UK) National …
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Eskom crisis: ANC NEC hears calls for state of emergency, moving power utility to energy dept

The African National Congress’s (ANC’s) national executive committee (NEC) heard wide-ranging and spirited calls for intervention in response to the Eskom energy crisis, which ranged from the declaration of a state of emergency to immediately moving Eskom from the Department of Public Enterprises to the Department of Energy. Sources who attended the NEC meeting, which began on Saturday and ended on Monday, noted that there was an acknowledgement that South Africa’s energy shortages and ongoing rolling blackouts were a crisis.
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Joburg City Power increases electricity tariffs by 7.47%

City of Johannesburg electricity utility City Power said the National Energy Regulator of South Africa (Nersa) has approved its application for an average electricity tariff increase of 7.47%, which is essential to cover the increased cost of bulk purchases from Eskom, which increased by 8.61%, as well as to cover an inflationary adjustment, which increased by 4.4%, to City Power’s operating cost. City Power, after an extensive public consultation process, applied to Nersa for the average tariff increase, which will come into effect from July.
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South Africa seeks legal advice on R396bn Eskom debt burden

South Africa’s National Treasury is seeking to hire a legal firm to advise it on how to reorganize the R396-billion debt burden held by national power utility Eskom Holdings, people familiar with the situation said. A request for proposals from the firms was issued recently, according to one of the people. It comes as the department continues with technical work it began in March on how to deal with the debt that’s left the utility reliant on state handouts to survive. Eskom doesn’t earn sufficient revenue to cover its running costs and interest payments, and the company has subjected the country to intermittent power outages since 2008 because it can’t meet demand. The people asked not to be identified as a public statement has not been made.
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South32’s Hillside smelter, Solana to introduce sustainable energy in Richards Bay

Diversified miner South32’s Richard’s Bay-based Hillside Aluminium smelter has partnered with energy company Solana Energy to transform the Richards Bay and King Cetshwayo district economic regions and bring much-needed sustainable energy to these commercial hubs.

The partners will embark on a multi-phased project to establish solar power infrastructure, develop a skills development programme in the renewable energy space and roll out an installer base for power solutions.

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SAWEA calls for strategic plan to resolve energy crisis

Amid the crippling power outages gripping the country, industry organisation the South African Wind Energy Association (SAWEA) is calling on the South African government to lead the development of a comprehensive strategic plan to resolve the energy crisis and prioritise it with the same gravitas and urgency that it tackled the Covid-19 pandemic. SAWEA believes that, together, all stakeholders have the expertise to devise a coordinated response that will deliver a workable solution to mitigate this crisis that is a precondition to addressing the economic recovery, the organisation emphasises.
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Eskom rejects Tshwane’s debt repayment plan

Eskom has rejected the City of Tshwane Municipality’s offer to enter into payment settlement arrangements for R878-million owed to the power utility. Tshwane failed to pay Eskom a total amount of R908-million, which was due and payable by 17 June 2022. The municipality only made a payment of R10-million on 23 June, and R20-million on 30 June 2022, Eskom said.
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