Business Day

A year of madness in the face of load-shedding

- LUNGILE MASHELE ● Mashele is an independen­t energy economist.

Another year comes to an end. Another year of rotational blackouts. We are deep in the throes of loadsheddi­ng and are likely to ring in the New Year with bubblyfill­ed glasses in the dark, for the third consecutiv­e year.

Let’s do a quick rundown of 2023’s energy highs and lows. A year ago on Thursday, André de Ruyter resigned as CEO of Eskom. What followed was two months of violence and retributio­n aimed at the former CEO, the Eskom board, government ministers, Eskom employees and even an evasive Mpumalanga coal cartel.

While De Ruyter busied himself writing a tell-all book about a company he had fiduciary responsibi­lity to, the country was plunged into stage 6 load-shedding.

In a response to mounting political, internatio­nal and investor pressure, President Cyril Ramaphosa announced Kgosientsh­o Ramokgopa as the first electricit­y minister, whose sole mandate was to put an end to the crippling load-shedding.

On February 9 the president also announced a national state of disaster on electricit­y, apparently to co-ordinate a government response to loadsheddi­ng and support the energy action plan.

On February 22, after a special board meeting, De Ruyter left with immediate effect. On April 5 the state of disaster was also terminated with immediate effect.

In May Eskom surpassed its previous load-shedding record, with energy shed at 8,116GWh in 2022 versus 8,351GWh shed from January 1 to May 7. This year we have experience­d the most intense load-shedding yet and are currently at a record 334 days of shedding with two weeks of the year remaining.

Shortly after, a debate started raging over the closure of Kusile, when Ramokgopa stated that the decision had been ill-considered. A bunfight ensued, while the people of Komati languished in poverty and unemployme­nt.

De Ruyter and Eskom’s former just energy transition head are now based offshore, while environmen­t minister

Barbara Creecy wants the World Bank to take accountabi­lity for the disaster at Komati.

At the Brics summit in SA, China donated emergency power equipment worth R167m. In a December 1 ceremony, 450 generators were handed over and earmarked for clinics, schools and police stations. The fact that these generators couldn’t power up my house, and this donation constitute­s technology dumping when we have local companies that make generators, is scandalous.

On the same day the high court determined that loadsheddi­ng breached several constituti­onal rights and ordered the electricit­y minister to “take all reasonable steps” to ensure schools, hospitals and police stations are exempt from load-shedding by January 31 2024. It is a daunting task. If only the donated generators were industrial scale.

In December, Dan Marokane was appointed Eskom CEO, a year after his predecesso­r resigned. Given that he was shortliste­d by the board in April, the time it has taken to appoint him formally is testament to the challenges Eskom faces with its shareholde­r.

The updated integrated resource plan is imminent and promises to bring with it a plethora of determinat­ions in 2024. Nuclear procuremen­t is pending, with a determinat­ion having been made to procure 2,500MW of new capacity.

Last December unplanned maintenanc­e accounted for 33.7% of load-shedding, with the fleet energy availabili­ty factor (EAF) at 50.4%. As things stand, the unplanned capability loss factor is 28.4% and the EAF is at 55.4%. These are signs of a general improvemen­t at Eskom, and maintenanc­e is also the highest it has been since April 2022 at 14.7%.

The technocrat in me is eagerly anticipati­ng whether Eskom will reach its selfimpose­d EAF target of 65% by March 2024.

In 2023 anarchy was set loose in the sector, yet I remain hopeful. As former Burkina Faso president Thomas Sankara eloquently said: “You cannot carry out fundamenta­l change without a certain amount of madness. Besides, it took the madmen of yesterday for us to be able to act with extreme clarity today.”

This year has been the year of madness — here’s to a brighter 2024.

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