André de Ruyter took over as CEO at beleaguered South African power utility Eskom on January 6. He has a tough job, indeed. Eskom has implemented fresh bouts of load-shedding, while its power plants are said to be falling apart. The utility has a debt burden above R450 billion, and its income is far below its debt repayments.
However, the South African mining industry, which has for long suffered from Eskom’s erratic power supply, would be glad to hear the latest pronouncements from de Ruyter.
The new Eskom boss said renewable energy, along with private capital, could be the solution to SA’s energy crisis, according to an article in ITWeb.
Further, he welcomed mining companies to start generating their own power to relieve the pressure on the Eskom grid, even though mines contribute nearly a sixth of Eskom’s revenues.
“We need to crowd in private capital to contribute to power generation in SA, and whether that be through renewables or other forms of generation is a good thing…We think it gives us the necessary headroom to do what needs to be done,” De Ruyter said.
Just last week, at its national executive committee lekgotla, the African National Congress, too, called for a “market-friendly” approach to solving SA’s chronic energy shortage. This approach would include allowing Municipalities to procure power independently, boosting renewable energy power and deregulating the captive generation of power by business organizations.
The South African Wind Energy Association (SAWEA) welcomed the ANC’s approach.
Read the ITWeb article HERE.
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