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Eskom seeks cheap funding for R400bn energy plan

To help the South African utility move away from the use of coal, according to company’s energy transition head.
Image: Waldo Swiegers/Bloomberg

Eskom Holdings is proposing a “highly concessional” financing plan to help build about R400 billion of energy infrastructure to help the South African utility move away from the use of coal, according to company’s energy transition head.

Eskom is proposing a “multi-tranche, multi-year facility” that would have funds advanced on a pay-for-performance basis as progress is made, Mandy Rambharos, the head of Eskom’s Just Energy Transition department, said in a presentation on Thursday. The US, UK, France, Germany and the broader European Union have indicated interest in supporting the plan.

Gas infrastructure that Eskom has outlined as part of replacing its coal capacity could include a 3 000 megawatt plant in Richards Bay on the north east coast and 1 000 megawatts plant as part of a repurposing of the coal-fired Komati power station.

The use of gas is “not my favorite option” and would be used as a stop gap as renewable energy and battery storage improves and could potentially be switched for hydrogen in a decade, she said.

© 2021 Bloomberg

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The last plant they built wasn’t a very huge success. These two new plants won’t be a success either. Wasting the R400bn can be done successfully.

They should please not even dare start with more projects until the corruption is sorted out.

The country cannot afford R400 Billion getting stolen and moved to Dubai and Pakistan banks again.

It takes more energy to produce hydrogen (by separating it from other elements in molecules) than hydrogen provides when it is converted to useful energy

This unfortunate rule of physics has never entered into the minds of the fools that tout this “wonderful green” fuel !!!!!!!!!!!!!

Its another one of those political science myths that the non-technical hordes can be easily duped with. Come to think of it most all political agendas are now dependent on such myths and their related neo-religious belief systems.

We absolutely need this gas power to stabilize our supply. There must be some credible companies in the world that can execute on this. SA will need strong project managers to control the project and make sure that contractual obligations are met.

For the future hydrogen seems like a good option because it can be manufactured when energy is cheap and deployed when energy is expensive. This may be a way to avoid manufacturing large battery facilities.

End of comments.

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