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Rand hits R17.70/$ low as SA suffers Stage 6 load shedding

The rand weakened to R17.70/$ for the first time since 2020 on Monday morning, with investors digesting a deteriorating outlook, as well as the economic fallout for SA of Stage 6 load shedding. In early trade the rand had lost 0.8% to R17.739/$, bringing its year to date to above 11%, while it has now lost about 22% since its year-to-date high of R14.48/$ reached in late March.
September 19, 2022 by

Eskom seeks to buy 1 000 MW of existing electricity as it declares Stage 6 and warns of another …

Eskom aims to approach the market imminently with an offer to buy up to 1 000 MW of surplus electricity that it believes could be immediately available from existing independent power producers (IPPs) and large companies with their own generation capacity, such as Sasol and Sappi. CEO André de Ruyter reported on Sunday that Public Enterprises Minister Pravin Gordhan had given the utility permission to approach the market on an urgent basis, but he also indicated that the proposed purchases had not been canvassed with or approved by the National Energy Regulator of South Africa (Nersa), which will host public hearings this week on Eskom’s request for a 32% tariff hike in 2023.
September 18, 2022 by

Eskom CEO sees South African gas as key in transition from coal

South Africa’s State power utility Eskom favours burning more domestically sourced gas as it transitions away from coal, its Chief Executive Officer Andre de Ruyter said. With the structure of the nation’s demand changing and more renewable technology being added to the grid, additional storage in the form of batteries will be needed along with power that can be dispatched on demand, De Ruyter told a conference in Cape Town on Friday. “Gas is the solution to that problem,” he said. Eskom has “a strong preference” for tapping local gas supplies, rather than exposing itself to the supply, price volatility and foreign currency fluctuation risks associated with imports, he said. Eskom, which has amassed R413-billion of debt and is running at a loss, is only interested in buying the gas, and doesn’t envision investing in pipelines or field development.
September 16, 2022 by

South Africa needs R500bn to end blackouts, Intellidex says

South Africa will require R500-billion in private investment to end power cuts that are stalling economic growth by the start of 2025, said Peter Attard Montalto, Intellidex’s head of capital markets research. The money is needed to construct 15 gigawatts of generation capacity and five gigawatts of battery storage, he said, adding that the requirement is unlikely to be met within such a tight time-frame. “Ending load-shedding by end-2024 is possible, but a stretch,” Montalto said in a response to questions. It would require that all efforts to end the crisis and introduce energy reforms “would have to go like clockwork,” he said. The country will need to invest an additional R175-billion in expanding its power grid over the next decade, Montalto said.
September 16, 2022 by

DMRE clarifies Mantashe’s statement on BW5 renewables project reaching financial close

The Department of Mineral Resources and Energy (DMRE) has moved to clarify a statement made by Minister Gwede Mantashe that a Bid Window Five (BW5) project under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) had reached financial close earlier this week. Mantashe made the statement in response to a question posed during a briefing held to provide an update on the implementation of the Economic Reconstruction and Recovery Plan, which includes energy security as a priority intervention.
September 16, 2022 by

Eskom expects $476m World Bank loan decision by November

South African power utility Eskom expects a final decision on a new $476 million World Bank loan to repurpose its Komati coal-fired power plant into a renewable station before November’s COP27 climate summit, CE Andre de Ruyter said on Friday. The money will be used for three packages, which includes decommissioning certain parts of the 1 000 MW Komati power plant that is currently only using one unit to despatch 125 MW of power when needed, as Eskom battles its worst period of power cuts since it started more than a decade ago.
September 16, 2022 by

Eskom to extend power cuts until Monday

South African state power utility Eskom said it was extending rotational power cuts until Monday due to plant breakdowns causing a persistent shortage of generation capacity. Eskom said it would implement “Stage 4” power cuts until 05:00 local time (0300 GMT) on Sunday, and thereafter “Stage 3” until 05:00 on Monday.
September 16, 2022 by

Eskom invites experts to join skills crowdsourcing platform

State-owned power utility Eskom is developing a crowdsourcing digital platform to allow it to supplement its existing skills base to help address its operational challenges. It has invited organisations and individuals, including experienced engineers and technical experts, to participate. The platform will act as a skills database for Eskom to acquire additional expertise and to resolve its urgent business needs.
September 16, 2022 by