Eskom boss backs coal

SUPPORTS EXTENDING AGING PLANT LIFE REALISTICALLY ‘We must not be naive and say it’s not clean so we’re not going to do it.’

Eskom’s outgoing chief operating officer Jan Oberholzer says he supports the idea of extending the life of some of the utility’s aging coal-fired power plants.

However, he believes its current target for improving their performance – energy availability factor, or EAF – by the end of March next year is unrealistic.

Speaking before news broke of Electricity Minister Kgosientsho Ramokgopa’s controversial proposal to revise the shutdown schedule for some of the oldest plants, Oberholzer described the minister’s earlier public comments on the strategy as “responsible”, given the country’s worsening shortage of generation capacity.

“If it makes economic sense, if we can do it in a responsible way, within legislation, I believe we need to look at this seriously, because we’re not going to have additional capacity soon,” he said.

Oberholzer, who is due to retire from Eskom at the end of the month, pointed out according to Eskom’s current generation strategy, more than

20 000MW of generation capacity from the coalfired power plants, which form the backbone of its fleet, is due to be retired by 2035.

After that, only six coal-fired plants would be left online – Medupi, Matimba, Kusile, Kendal, Lethabo and Majuba.

“Can we, while we have this challenge, look at some of the power stations coming to end-oflife, and by investing some money in them, perhaps get an additional year, or whatever the case may be, out of them? You have people there, you have coal, you have everything. Let’s see if we can extend this a little,” said Oberholzer.

“If we can, some units, at some of these stations, extend a little bit. I believe we must not be naive and say it’s not clean so we’re not going to do it. I believe everything needs to be done in parallel.”

Implementing Ramokgopa’s plan may undermine SA’s international climate-change commitments set by its carbon emissions reduction targets, and jeopardise $8.5 billion (about R156 billion) of international finance pledged to support the country’s just energy transition (JET) programme.

Ramokgopa’s proposal was endorsed by the ANC’s national working committee. But there are still formidable challenges given the lack of alignment with a number of standing government policy positions.

Public Enterprises Minister Pravin Gordhan has said a full retrofit and refurbishment of the fleet to upgrade the coal-fired power stations to meet SA’s minimum emission standards would cost about R400 billion.

Ramokgopa has suggested extending exemptions from the minimum emission standards for some of the power stations to facilitate their life extension.

However, Cabinet refused to accept Ramokgopa’s proposal when he presented it at an emergency meeting called by President Cyril Ramaphosa on 19 April.

Instead, Cabinet instructed him to take it to the next meeting of the Presidency’s National Energy Crisis Committee (Necom) to ensure consensus and consistency with the positions of the relevant ministers and ministries involved.

Oberholzer said Eskom had already looked at the possibility of “extending the lives” of Grootvlei, Camden and Hendrina power stations.

I believe everything needs to be done in parallel