Eskom CEO Dan Marokane Provides Update on Load Shedding and Strategic Plans
Eskom has made significant strides in stabilizing its power generation, achieving a consistent reduction in unplanned outages. As of now, the utility has maintained 80 consecutive days without load shedding. However, Eskom Group CEO Dan Marokane warns that the spectre of load shedding isn’t completely behind them.
Current Status and Progress
During a briefing on his first 100 days in office, Marokane stated, “We have said this before, load shedding remains a risk. We are not yet where we have comfortably put it behind us, and therefore whatever we do, we should bear that in mind.” He emphasized that while Eskom is currently meeting its targets, the potential for load shedding persists.
Financial Gains from Improved Performance
The improved performance has positively impacted Eskom’s financials, allowing the utility to save R4 billion on diesel used for running Open-Cycle Gas Turbines (OCGTs) this financial year. “As I have said before, in order for us to have a comfortable winter, we need to stay below 15 000MW of unplanned losses. In the last two months, we have averaged about 12 000MW of unplanned losses, giving us some comfort to deal with demand increases,” Marokane noted.
Strategic Focus Areas
Marokane outlined key focus areas for his initial 100 days:
- Generation Operational Recovery Plan: Assessing its effectiveness.
- Unbundling Progress: Reviewing the implementation and engaging stakeholders to build alignment.
- Building Blocks for Sustainability: Establishing foundations for a competitive and sustainable Eskom.
“This performance comes from a sustained multi-dimensional program involving adequate human resources, aggressive planned maintenance, use of Original Equipment Manufacturers (OEMs) for critical systems, and implementing interventions in response to VGBe findings,” Marokane explained.
Future Initiatives and Goals
Eskom is preparing to launch the National Transmission Company of South Africa (NTCSA) on July 1. This is part of the utility’s broader strategy to improve efficiency and align with international trends through unbundling.
Marokane highlighted several strategic initiatives for the next 36 months:
- Increasing Energy Availability Factor (EAF): Targeting 70% within 12 to 36 months.
- Boosting Capacity: Adding over 2,500MW to the grid by March 2025 and developing a pipeline of at least 2,000MW of clean energy projects by 2026.
- Improving Efficiency: Re-baselining cost trajectories and enhancing operational efficiencies.
- Municipality Debt Solutions: Advocating for sustainable debt solutions.
- Enabling Just Energy Transition: Accelerating initiatives for a fair energy transition.
Engagement and Future Plans
Marokane’s stakeholder engagement has been extensive, addressing over 10,000 employees and engaging with more than 200 stakeholders from various sectors. This engagement aims to create awareness and alignment on strategic directions.
“We are putting the building blocks in place to rebuild trust and credibility in Eskom through transparent performance,” Marokane stated. “It is our intention to remain a critical player in South Africa’s evolving future energy market.”
Renewable Energy Initiatives
In the next two weeks, Eskom plans to go to market to source solar PV providers for repurposing the Komati Power Station as a renewable energy provider. This move is part of Eskom’s broader strategy to integrate renewable energy into its operations.
Conclusion
While Eskom has made significant progress, Marokane acknowledges the challenges ahead. “There is quite a lot of headwinds we are experiencing and some will emerge in the next two years as the reforms in the industry take shape,” he said. “Our focus is beyond today, beyond load shedding, setting up this business for its next version. We have a good base to work on.”
Eskom Chairman Mteto Nyati praised Marokane for fulfilling his mandate to review and customize Eskom’s Generation Recovery Plan and oversee the unbundling process. Marokane’s leadership aims to guide Eskom through its next phase of transformation, ensuring its role as a key player in South Africa’s energy sector.
