Electricity Minister Kgosientsho Ramokgopa has dismissed continued reports that Eskom was burning more diesel on its Open-Cycle Gas Turbines (OCGTs) to keep the lights on.
This comes as reports from some analysts and former Eskom CEO André de Ruyter attributing the now 54-days long suspension of load shedding to burning of millions of rand in diesel, as well as generation capacity from renewables.
However, Ramokgopa during his Energy Action Plan media briefing at Eskom’s Megawatt Park yesterday said the diesel usage in the period April 1 to May 16 was down 78% on the same period last year.
“Eskom only spent R1.2 billion in the period April 1 to May16 this year on diesel compared with R5.2bn in the same period last year,” Ramokgopa said.
“I place these facts before you to dispel the myth that we are using the diesel-powered OCGTs to keep the lights on before the May 29 elections.
“Eskom is using the money saved from less OCGT usage to sweat the other assets, so that the Unplanned Capability Loss Factor (UCLF) is trending around 11 000MW.”
Ramokgopa also pointed out that the current UCLF was 3 000MW less than the Eskom Winter Plan assumption of 14 000MW, which would provide a safe margin in case of unforeseen events.
Although load shedding has now been suspended for 54 consecutive days, Ramokgopa said plant performance was like a bouncing ball with some high points and some low points.
However, he said the current performance has surpassed expectations, and he thanked the Eskom employees for their sterling efforts.
This improvement in plant performance was reflected in the Energy Availability Factor (EAF) which was at 65.19% in week 19 of 2024, compared with only 49.99% in week 15 of 2023.
“There has been a structural improvement in plant performance due to the tremendous work done by Eskom employees, but it is also helped by the reduction in demand due to the incentives given by the National Treasury to promote rooftop solar PV by businesses and homes,” he said.
“I expect that by the end of this year, there will be some 6 000MW of rooftop solar installed.”
The weekly Eskom status report showed that renewable power supplied 2 062MW on May 7; and 1 571MW on May 12.
Ramokgopa said the delayed decommissioning of old coal-fired power stations was part of the plan to balance energy access, energy security, green transition and the socio-economic impact.
“One cannot elevate one aspect above the other, but rather integrate them into a whole,” he said.
The minister said he expected that this week President Cyril Ramaphosa will sign into law the Electricity Regulation Act (ERA) Amendment Bill, which was passed by the National Council of Provinces last week.
The ERA consolidates the major reform effort that has been made in the electricity sector.
It will result in the unbundling of the grid operator from Eskom and the establishment of an open market for electricity, radically transforming how electricity is generated and sold in South Africa.
Electricity producers will compete to sell electricity into the grid, potentially reducing the cost of electricity and consolidating the end of load shedding.
“This legislation is revolutionary and transformative as it removes Eskom’s monopoly. It will reconfigure the energy sector and promote equity and fairness and democratise electricity generation,” Ramokgopa said.
“It will also promote increased investment in the electricity sector and result in increased technology adoption that will result in increased efficiency. Competitive pressures will result in a dampening in tariff increases,” he said.
The ERA will help create an open market platform for competitive electricity trading in South Africa and allow wheeling between independent power producers and off-takers.
It also supports the creation of the Transmission Systems Operator (TSO) to act as a dealer of electricity, taking over responsibilities from Eskom’s System Operator and ensure the power grid’s stability.
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