Eskom to sell more surplus power in major turnaround

Adopts ‘aggressive’ plan to improve volume sales.
Eskom CEO Johnny Dladla. Picture: Moneyweb

Eskom is to start selling more of its surplus capacity as new plants come on line, its acting chief executive said on Thursday, marking a shift from two years ago when the company had to conserve power because of shortages.

South Africa had regular power cuts in 2015 that hit key industries when demand exceeded capacity, but Eskom’s new coal-fired plants Kusile and Medupi have boosted the national electricity grid.

Eskom CEO Johnny Dladla said the company’s aging power plants prone to breakdowns had benefited from a better maintenance programme, helping to improve plant availability to 77.3% at the end of March from 69.9% in 2015.

“In terms of our existing generation sustainability strategy, we aim to achieve 80% plant availability, 10% planned maintenance and 10% unplanned maintenance by 2020,” Dladla said in a statement.

He said Eskom had adopted an “aggressive” plan to improve volume sales by encouraging annual growth of 2.1% in local demand and an 8% improvement in export sales over the next five years.

Eskom sells its surplus electricity to several southern African countries, including Zimbabwe and Namibia, as part of a regional power pool.

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rather than selling to others reduce the cost of electricity for us the consumers and the demand will improve.there will be no need to go solar etc

With reference to your comment, please consider the following; selling excess capacity to other countries does not necessarily reduce the cost to produce said unit of energy, but producing larger volumes usually causes units to be cheaper; secondly selling excess capacity to other countries generates extra revenue which means that the South African consumer will not necessarily need to pay large increases every year.

Renewable energy is the future, and SA should try be a leader in it, especially on the continent. SA needs to develop a competitive advantage in something useful.. I agree that selling excess supply makes sense as do economies of scale, however it only makes sense when those you are selling it to actually pay for it (Zim, I’m looking at you).

What is rather amusing is that we suddenly have surplus electricity that we can sell, whereas the nuclear deal seems to have quietened down a little. Doubt it’s the last we have heard of it though.

I agree that prices could be effectively lowered if we shifted cost to foreign buyers, but I think we will be subject to regular increases in prices regardless of who we are selling it to, as it is evident that Eskom is a “captured” SOE.

This man he talk with forked tongue
Property development in certain jhb areas is at a standstill because eishkom/city powerless cannot deliver.
mashaba of the da has not improved anything in jozy

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