Electricity Minister Ramokogpa delivered a presentation which underscored the gravity of the situation
Acting Finance Minister Kgosientsho Ramokgopa wore his electricity minister hat on Wednesday as he addressed the portfolio committee on public enterprises, revealing that the country is haemorrhaging close to R1 billion daily thanks to load shedding.
Ramokgopa’s presentation underscored the gravity of the situation, stating:
Load shedding exerts a statistically significant negative impact on total real GDP growth: estimated between R204m and R899m daily.
Ramokgopa said crucial industries, including agriculture, forestry, fisheries, manufacturing, mining, transport, storage, and communications, are bearing the brunt of this crisis.
He painted a bleak picture, projecting job losses surpassing 800 000 for the current year alone.
Ramokgopa said the government’s energy action plan is government’s comprehensive strategy.
He said the focus going forward was addressing the reliability of Eskom’s existing coal-fired power stations, a concentration on the Koeberg nuclear power station and importing hydroelectric power from Mozambique.
Eskom’s transmission expansion update
Eskom’s managing director of transmission, Segomoco Scheppers, provided updates on the power utility’s efforts to expand transmission lines and unlock future generation capacity swiftly.
Scheppers, speaking at the Transmission Development Plan (TDP) Implementation Forum, outlined the necessity to augment the transmission network by approximately 14 200km by 2032 for energy security.
He said 46 expansion projects are currently in execution, with 26 set to deliver 1 632km of transmission lines, 11 290MVA, enabling more than 15 000MW of generation capacity.
Scheppers highlighted specific projects, including Medupi, Kusile, and the Garob 267MW project connecting at the Kronos substation in the Northern Cape. He assured the forum of Eskom’s unwavering focus on expanding the grid rapidly while ensuring the safe management of the power system.
Looking ahead, Scheppers detailed Eskom’s approval of a substantial R26 billion capital investment for transmission. Two priority programs are in the pipeline to accelerate the delivery of the transmission infrastructure.
The first involves the development of 25 projects in existing substations, unlocking 13 000MW of new generation in the next five years. The second includes 22 expedited transmission projects unlocking 24 000MW of grid connection capacity by 2033.
Scheppers called on all stakeholders to rally behind Eskom’s plans, emphasising the importance of continued support from authorities, the market, and various stakeholders. He expressed gratitude for the effectiveness of National Energy Crisis Committee initiatives in addressing historical challenges.
Transmission Company SA
Providing insight into Eskom’s restructuring, Scheppers updated the forum on the legal separation of Eskom into Generation, Distribution, and Transmission entities.
The separation of the transmission entity, dubbed the National Transmission Company South Afric (NTCSA), is fully underway. Pending final approval, a binding merger agreement has been signed, with plans to transfer the current transmission business into the new subsidiary.
Scheppers assured a seamless transition for employees, with NTCSA set to be operationalised following the fulfilment of suspensive conditions. Engagements with lenders for necessary consent are already at an advanced stage.
The National Energy Regulator of South Africa (Nersa) has approved licenses for operating the transmission system, trading in electricity, and import/export, with final licenses and associated conditions expected by the end of the month.
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