Eskom may be ‘permanently dependent’ on fiscus if reform conditions in debt-relief plan not met

The reform-related conditions outlined by the National Treasury as part of a R254-billion Eskom debt-relief package – including the concessioning of coal power stations to the private sector and allowing for private sector participation in the building and operation of grid infrastructure – “make sense” and are necessary both in the context of the just energy transition and revelations of embedded corruption withing Eskom’s coal supply-chain. This is the conclusion arrived at by a team of economists at the University of Witwatersrand’s Public Economy Project, who have published an analysis and commentary on the 2023 Budget.
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Outa warns state of disaster regulations could result in ‘unaffordable’ generation contracts

Civil society organisation the Organisation Undoing Tax Abuse (Outa) says the newly published state of disaster regulations appear to be intended to allow a quick contract with floating power company Karpowership by fast-tracking or bypassing environmental authorisations, procurement rules, public participation and even legal challenges.

“Outa is determined to continue our legal challenge to review the declaration of a national state of disaster and our challenge to the issuing of the Karpowerships’ generation licences by the National Energy Regulator of South Africa (Nersa). Both these matters are before court.

“The regulations confirm Outa’s concerns that the state of disaster will be used to remove regulatory provisions and oversight to enable the fast-tracking of unaffordable generation contracts,” it avers.

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PwC says more green incentives are a step in the right direction

In the wake of national government announcing various incentives to get local businesses to invest in renewable energy generation as part of the solution to the national energy crisis, as well as advancing decarbonisation, professional services firm PwC says, equally, businesses have to improve their environment, social and governance (ESG) credentials. Currently, loadshedding is the number one brake on economic and employment growth, the firm states. Aside from the newly announced solar incentives for businesses and households, it says, South African legislation already provides several other green grants, incentives and relief measures that encourage companies to implement climate change mitigation measures.
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Why Western Cape municipalities’ Eskom debt is likely to increase

The Western Cape’s treasury department warned that municipalities, which have outstanding Eskom debt, could see it balloon in the new financial year. The department briefed the standing committee on local government on Tuesday about late payments to Eskom.
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North West provincial govt sets its sights on solar panel manufacturing opportunity

North West has the potential to attract at least R50-billion worth of investment in the renewable energy sector, in addition to the private sector renewables investments that are already under way, Premier Bushy Maape has said. He noted during his State of the Province Address last week that the province’s executive council has resolved to invest in solar panel manufacturing.
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Karpowership demands retraction from De Ruyter, denies it is corrupt

Karpowership, the Turkish company seeking to supply power to South Africa, said it will demand a retraction from Andre de Ruyter, the former chief executive officer of Eskom Holdings SOC Ltd., because it said he had inferred the firm was corrupt. The company, which generates electricity from ship-mounted, gas-fired power plants, in 2021 won about 60% of an emergency tender seeking to secure 2,000 megawatts of power to ease shortages that have plagued South Africa for almost 15 years. Court challenges from rival bidders and environmentalists and a yet-to-be resolved delay in getting Eskom, the national power utility, to sign a power-purchase agreement have stalled the deal.
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Back to Stage 5 after a brief reprieve

Stage 3 loadshedding will be implemented until 16:00 on Tuesday, after which Stage 4 will be rolled out until 16:00 on Wednesday.  Stage 5 loadshedding will then be implemented from 16:00 until 05:00 on Thursday, with Stage 4 loadshedding from 05:00 until 16:00. 
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NRS says meticulous planning goes into higher stages of loadshedding

As Eskom is reviewing the loadshedding framework to prepare for the prospect of higher stages of loadshedding in future, specifications developer NRS Association of South Africa has assured the public that this is primarily a proactive measure to enable the utility and municipalities to be ready to respond should it be necessary.

Engineering News last week quoted Eskom acting generation executive Thomas Conradie as saying that a review of the loadshedding framework was under way to prepare for the prospect of higher stages of loadshedding – potentially up to Stage 16 – in future.

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State of disaster regulations open way for emergency procurement, environmental exemptions

More than two weeks after President Cyril Ramaphosa announced that the electricity crisis had been declared a National State of Disaster, the regulations giving effect to that declaration have been Gazetted. In a statement issued on February 28, it was confirmed that the regulations were approved following a sitting of the President’s Coordinating Council, as well as a special sitting of Cabinet, which took place on the evening of Monday, February 27.
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Eskom spokesperson to leave utility as contract comes to an end

Eskom spokesperson Sikonathi Mantshantsha, who joined Eskom on a fixed-term contract three years ago, will be leaving Eskom at the end of February. Mantshantsha had agreed to join Eskom as spokesperson to lead the Media Desk during a difficult period in which the organisation needed to restore trust and credibility in its dealings with the public and stakeholders.
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