Electricity and Energy Minister Kgosientsho Ramokgopa on Friday extended the term of Eskom chairperson Mteto Nyati for another three years and outlined the government’s expectations for the utility’s new “Eskom 2.0” strategy.
After two consecutive years of reporting profits as Eskom recovers from previous years of loadshedding and maladministration, which constrained the economy, businesses and resulted in sharp increases in electricity tariffs, Ramokgopa said in a briefing that continued government financial bailouts and double-digit increases in electricity tariffs will not form part of the new strategy.
Explaining why Eskom needed a new strategy, he said the utility now needed to adapt, to continue playing a meaningful role in growing the economy, reducing the cost of electricity and achieving universal access, but in a context of increased competition and a liberalised playing field with many actors.
The continuing improvement in Eskom’s operations and delivery was indicated by the latest update from the utility, released Friday, which showed that the weekly energy availability factor was a high 70% and the year-to-date figure was 68.06%. Emissions-reduction targets had been surpassed, diesel costs had fallen by R4.8 billion year on year, and load reduction had been further reduced to just over 240 000 customers from 1.69 million, with seven provinces now free from load reduction.
Ramokgopa said Eskom was entering a “difficult and complex phase” and that its growth ambitions could only occur on the back of “sustainable, reliable and affordable electricity … We know electricity is exceptionally expensive. We feel your pain. We give our full assurance we are going to resolve it,” he said.
Further expectations for the new strategy included continuing efficiencies and improvements at existing power plant, and ensuring that the utility plays its role in the country’s reindustrialisation agenda. This includes compiling a local industrialisation strategy for the planned construction of 14 500 kilometres of power lines.
Ramokgopa said the new strategy must also clearly define emissions and plans to repurpose some existing power stations. The role of gas in creating dependable power and peaking capacity needed to be part of the strategy, as did plans for up to 10GW of nuclear power.
A clean audit and tackling municipal debt were other immediate priorities, he said. New areas of demand, such as data centres, and incentives also needed to be identified.
Eskom would also need to focus on building AI capabilities because, as in many other countries, AI can be used to make predictions, protect system integrity and maximise resources, he said.
Under Nyati’s leadership, Eskom’s board oversaw a period of significant operational, financial and governance progress.
“During this time, Eskom strengthened governance and accountability, improved operational performance, reduced reliance on diesel-powered generation, restored profitability, and advanced reforms that are positioning the organisation for long-term sustainability,” a statement from Eskom said.
Its board also oversaw progress in Eskom’s unbundling, including the establishment and operationalisation of the National Transmission Company South Africa (NTCSA), and the launch of Eskom Green, the utility-scale renewable-energy business.
“We are rebuilding an economic asset for South Africa. The extension of Mr Nyati’s term provides continuity and leadership certainty at a time when Eskom is being positioned for long-term sustainability,” said Eskom Group chief executive Dan Marokane.
“Over the past three years, Eskom’s employees have shown what is possible. They have lifted this organisation from the worst crisis in our democratic history to a point where we now have excess capacity that can be used to drive economic growth,” said Nyati in a statement.
“We must now help our country industrialise and help the Southern African Development Community region industrialise. Eskom must be more than a supplier of power. It must be a platform for growth,” he said.
edward.west@nationalmg.co.za
THE NATIONAL