Eskom courts renewables
Renewable energy projects are part of SA’s vision for a healthy energy mix that includes gas, coal, nuclear and biomass, among others.
Much of the rest of the world is following the same policy road map, which has in-built recognition of the strengths and weaknesses of each energy component.
Neither nuclear nor renewable energy can enjoy 100% energy dominance. Instead, a neat interplay of various energy sources is deemed a secure energy future for our country.
Yet the general narrative has been that Eskom is asphyxiating renewable independent power producers (IPPs) by its brazen refusal to sign them up, which some “experts” claim is premised on plans to create space for nuclear energy. But Eskom is not distorting the national energy policy by cherry-picking nuclear at the expense of renewables.
We have been designated by Cabinet to procure, build and own the proposed new nuclear power plant. Similarly, the IPPs have been assigned, by the Integrated Resource Plan, the responsibility of developing renewable energy. Eskom will have purchased about R55bn renewable energy from IPPs by the end of the multiyear price determination period.
But, typical of the anomaly aptly depicted by philosopher Jacques Derrida — “There are no truths; reality is negotiable” — the public debate has morphed into a phony narrative about nuclear versus renewables, with Eskom being portrayed as having jettisoned renewable energy in favour of nuclear.
Our position has either been misunderstood or is conveniently ignored. But Eskom cannot ignore the facts — the slow economic growth and marked decline in electricity consumption, the current energy surplus and the stern warning by ratings agency Moody’s against a rapid roll-out of renewables. In our effort to minimise the impact, we have approached the signatories of the government support framework agreement to discuss possible government support in light of the constraints to recouping the costs through the tariff and the regulatory clearing account mechanism.
Eskom has heeded the call by the president regarding the signing of outstanding power purchase agreements with renewable energy suppliers and is busy with processes for further deployment of renewable energy.
Dr Baldwin Ngubane
Chairman, Eskom