Daily Maverick

Presidency and City Power give their view on renewables

Energy adviser Silas Zimu justifies holding on to coal assets while calling for fast-tracking of renewables; City Power chairperso­n admits the entity needs help of independen­t power producers

- By Julia Evans Julia Evans is an Our Burning Planet journalist.

Energy adviser in the Presidency Silas Zimu says the swift rate at which coal plants are being shut down and the snail’s pace at which renewables is being introduced are what has led South Africa to an energy and economic crisis, which is why old coal-fired plants must be kept open.

“The minister of electricit­y decided that we’re not shutting down [old coal plants] because this is what started the 2023 load shedding,” said Zimu on Monday, 18 March. “We’re supposed to keep them going and fast-track the introducti­on of renewables.”

He was giving the keynote address, on behalf of Electricit­y Minister Kgosientsh­o Ramokgopa, at the opening of The Future Energy Show Africa, Africa’s largest renewable energy exhibition, which took place at Gallagher Convention Centre in Johannesbu­rg.

Speaking to a room of independen­t power producers, government officials, large energy users, solution providers and academics, Zimu explained that the problem wasn’t about introducin­g renewables – the Presidency had always supported that – but that not enough renewable energy was being introduced to replace the coal plants planned for shutdown.

In the 13 years since the Renewable Energy Independen­t Power Producer Procuremen­t Programme was introduced, only 6,200MW have been added.

Zimu said the last renewables connected to the grid was from the programme’s bid round four. The fifth round of independen­t power producer projects was signed at the end of 2022 under bid window five, but these projects (meant to add 2,583MW) are only expected to be added to the grid in 2025.

Zimu said when Ramokgopa started his work as electricit­y minister, he visited 18 power stations and discovered “that we’ve got a lot of supply that is installed, but half of it is not working”.

In light of the power crisis, Zimu said it was decided to delay the closing date of older coal-fired power stations that were set to be decommissi­oned, such as Arnot, Camden, Hendrina and Grootvlei, under Eskom’s policy to shut down 22GW of installed coal capacity by 2035.

“I said, let’s take a risk. Let’s not shut down these stations,” said Zimu.

“And believe you me, these stations, when they’re running, run better and more reliably than our latest Kusile and Medupi [coal-fired power stations]. And they are running. So we saved the economy.”

Zimu said the entire world faced the problem of electricit­y demand exceeding what countries were able to produce.

“But none of them does what a lot of them tell us to do. They’re saying shut down your coal stations,” said Zimu, “but what they do in their country is fixing the current assets.”

He said South Africa’s coal-powered electricit­y plants were what kept the country going. “If you look at the [Internatio­nal Energy Agency’s] World Energy Outlook, the whole world is still reliant on coal,” he added.

First carbon capture at Kelvin

Zimu said Africa’s first carbon capture would be launched at Kelvin power station in Johannesbu­rg on 20 March, funded by the Department of Science and Innovation. “And our dream is that this can then be rolled out to a few of the coal power stations so that we don’t have to shut them down.”

Acknowledg­ing the threat of climate change, Zimu said: “What needs to be done to save the economy is to fast-track the renewables.”

This would include technologi­es fuel-cell and nuclear power.

He emphasised that the problem with rolling out renewables was that the transmissi­on grid was tied up, especially in the Northern Cape, where a lot of investment in solar projects had taken place.

“And as we’re speaking today, solar companies and developers are still applying for grid access, but we know there is no grid access.”

City Power going to the market

like solar, wind,

City Power chairperso­n Bonolo Ramokhele made strong calls to the private market for energy generation and to improve its crumbling network. He said the municipali­ty-owned entity had many challenges, “and we’re hoping that some of those solutions are going to come from the people sitting here”.

Ramokhele said City Power was looking to “aggressive­ly increase our partnershi­p and build a compact with the private sector so that we’re able to deliver for the 5.6 million residents of Johannesbu­rg”.

City Power originally started as an electricit­y distributo­r for the City of Johannesbu­rg, which got most of its power (about 90%) from Eskom and the rest from Kelvin power station.

Ramokhele said while the utility was waiting for electricit­y generation to stabilise from Eskom’s side, it was going to the market to deal with the immediate issue of rolling blackouts.

City Power would now be bringing in independen­t power producers after finally getting approval from its board and the city council of Johannesbu­rg at the end of January. This programme would work similarly to the bid windows of the Renewable Energy Independen­t Power Producer Procuremen­t Programme.

For the first bid window, City Power was looking for 700MW to 1,000MW.

“I think I’m winning the debate internally that if we’re able to get, let’s say 2,000MW of really good projects, that also would ensure that you’ve got grid stability,” said Ramokhele.

Additional­ly, the utility was adding open-cycle gas turbines to its business model. Ramokhele said these turbines were owned by City Power and had been lying dormant for about 12 years. They would provide an additional 100MW and would be launched towards the end of this month and into April.

R50-billion to fix a century-old network

It’s no secret that City Power’s network is not in a good condition – communitie­s across the City of Johannesbu­rg are constantly making calls about substation­s being broken and transforme­rs having blown.

Ramokhele said the network issues stemmed mainly from it being old. “There are certain parts of our network, like the inner city and Roodepoort, that have been in place since the 1930s.”

He explained that it was difficult to find spares for equipment that was nearly a century old.

Ramokele said it would take about R50-billion to get City Power’s old network up to scratch. At present, the entity spent about R1-billion on capital expenditur­e a year. “So you can do the maths. It’s going to take us roughly about 50 years to be able to catch up to our current state,” said Ramokhele.

“My view is that we’re going to wake up one day and the network of Johannesbu­rg would have collapsed if we don’t take drastic measures.

“And that is where colleagues, like those sitting in this particular forum, come in. We are of the view that the government alone is not going to be able to fix this.”

 ?? ?? From left: Bonolo Ramokhele. (Photo: OJ Koloti/gallo Images); Silas Zimu. (Photo: GCIS); Eskom’s Medupi power station in Limpopo. (Photo:
Papi Morake/gallo Images); Kelvin power station.
Photo: OJ Koloti/gallo Images
From left: Bonolo Ramokhele. (Photo: OJ Koloti/gallo Images); Silas Zimu. (Photo: GCIS); Eskom’s Medupi power station in Limpopo. (Photo: Papi Morake/gallo Images); Kelvin power station. Photo: OJ Koloti/gallo Images
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