Page 3 - Energize January 2021

FROM THE EDITOR:

All the “news” of the new year

by Roger Lilley, Now Media

new year dawns with many IPPs - ed] meeting South Africa’s peak According to Stats SA
challenges and new ways of electricity demand this evening. Imagine (http://www.statssa.gov.za/) South Africa's
doing things. The Covid-19 how much more diesel would have had inflation rate for 2020 was 3,3%. An
Apandemic, which most to be burned, or what load-shedding electricity price increase of 8,5%,
people believed would be a short-lived we’d be experiencing, if renewable previously agreed to the National Energy
problem, has now become a part of our energy were not contributing 1370 MW Regulator of South Africa (Nersa), plus the
lives. Governments all over the world right now.” 2% now agreed to by Nersa, means that
imposed restrictions to limit the spread And, for those who are quick to say the increase in electricity tariffs will be
of the virus, prevent hospitals from being that renewable energy is unpredictable – three-times the official rate of inflation.
swamped by sick patients, and to save or variable – it is certainly no more so Eskom has for years maintained that
as many lives as possible. However, the than Eskom’s fleet of ageing and its tariffs are not cost-reflective, implying
restrictions in travel, personal unreliable power stations. Take, for that the power utility sells electricity for
interaction, and public events have example, the one power station which the less than it costs the utility to produce
resulted in a global economic downturn. power utility has boasted about for years. the electricity.
There’s a new way of working now – if The one which, according to Eskom But when one analyses the costs
you still have a job: from home if you can. provides the country with its cheapest, Eskom faces, we see that these include
And a new way of shopping, too: online if most reliable power: Koeberg. overspending on new generation (Medupi
possible. Colleagues are limited to The Koeberg nuclear power station in and Kusile power plants will cost four
meetings by Zoom, Google Meet, or the Western Cape might, perhaps, times more than budgeted, and they are
some other similar service. Extended provide the cheapest electricity but it not complete yet!). Plus, the wasteful
families no longer gather for birthdays seems that it very seldom keeps both expenditure that has been exposed over
and other anniversaries – or even for a units running simultaneously for any the last two or three years, an excess of
weekend braai – as often as they used to, length of time. Currently, one of the units staff, as well as the horrendous losses
leaving many people feeling isolated, is offline for repairs following the through corruption, theft, and
lonely, and depressed. discovery of a steam leak. Eskom says it maladministration under previous CEOs.
But amidst the negative sentiment, will stay offline for refuelling and But Eskom has a new CEO and Board
there is also the new way of generating maintenance, which will mean months of which by all accounts has stopped the
electricity. Although Eskom is struggling to no output. Thus, the 1800 MW plant will corruption and is recovering some of the
keep the lights on, more and more not provide more than 900 MW. money. So, with the new Board and CEO
electricity from privately-owned Renewable energy may be variable, and ever-more renewable energy coming
generation plants is coming online. The but its not offline for months at a time. online, we hope for the best for 2021.
South African government’s Renewable Furthermore, a relatively inexpensive Among all these new things is a new
Energy Independent Power Producers solution to the variability already exists – Energize website. It is faster than the old
Procurement Programme (REIPPPP) is energy storage. Batteries can be one and offers more functionality. We
yielding fruit. More power is available to charged and discharged to keep the hope that as the electricity supply
the grid and the cost of that power is output steady. industry navigates this new year, it will do
falling rapidly. Something else which will be new this so with the new Energize website as its
As UCT’s Prof. Anton Eberhard year will be Eskom’s triple-inflation tariff point of reference.
tweeted recently in response to Eskom’s increase. For the first time in its history,
generation figures: “Lots of diesel-fuelled Eskom will introduce a tariff increase Send your comments to
OCGT units [i.e. five of Eskom’s and four three-times the rate of inflation. rogerl@nowmedia.co.za

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