Zuma announces R23-b to counter serious electricity constraints
President Jacob Zuma announced, during SONA 2105, that the government will give Eskom R23-billion in the next fiscal year.
The money will be used to stabilise Eskom’s finances, to enable the utility to manage the current period.
Zuma said the country is experiencing serious energy constraints, which are an impediment to economic growth and a major inconvenience to everyone in the country.
“Overcoming the challenge is uppermost in our programme and we are doing everything we can to resolve the energy challenge,” he said.
“We have developed a plan which involves both short, medium term and long term responses.
“The short and medium term plan involves improved maintenance of Eskom power stations, enhancing the electricity generation capacity and managing the electricity demand.
“The long term plan involves finalising our long term energy security master plan.
“The ‘War Room’ established by Cabinet in December is working diligently around the clock, with Eskom, to stabilise the electricity supply system and contain the load shedding.
“During this period, we have to work together to find solutions. We urge all individuals, households, industries and government departments to save electricity in order to reduce the need for load shedding.”
Zuma said the the Department of Public Works has been instructed to ensure that all government owned buildings are energy efficient.
Given the high cost of diesel, Eskom has been directed to switch from diesel to gas as a source of energy for the utility’s generators.
Households are also being encouraged to switch from electricity to gas for cooking, heating and other uses.
The construction of the three new power stations — Kusile, Medupi and Ingula — will add 10 000 megawatts of capacity to the national grid.
The quest for alternative energy sources is also ongoing.
“To date, government has procured 4 000 megawatts from independent power producers, by using renewable sources,” said Zuma.
“The first three bid windows of the renewable energy procurement process attracted more than R140-billion from private investors.
“A total of 3 900 megawatts of renewable energy has also been sourced, with 32 projects with a capacity of just over 1 500 megawatts completed and connected to the grid.
“Eskom, itself, has completed construction of the Sere Wind Farm, which is already delivering 100 megawatts to the grid, well ahead of its intended launch in March, this year.
“Government also began procurement in December 2014, of 2 400 megawatts of new coal-fired power generation capacity from independent power producers.”
The procurement process for 2 400 megawatts of new gas-fired generation will commence in the first quarter of the new financial year.
A total of 2 600 megawatts of hydro-electric capacity will be sourced from the SADC region.
“With regards to the long term energy master plan, we will pursue gas, petroleum, nuclear, hydropower and other sources as part of the energy mix.
“South Africa is surrounded by gas rich countries, while we have discovered shale gas deposits in our own Karoo region.
“The Operation Phakisa Ocean Economy initiative, launched last year, also promises to unveil more oil and gas resources, which will be a game changer for our country and region,” said Zuma.
He added that the government is also exploring the procurement of the 9 600 megawatts nuclear build programme, as approved in the Integrated Resource Plan 2010-2030.
“To date, government has signed inter-governmental agreements and carried out vendor parade workshops in which five countries came to present their proposals on nuclear power. These are the United States of America, South Korea, Russia, France and China.”
