Wild Fire Fiasco: California utility’s decision to shut off power to avoid wild fires backfires

. Following the devastating wild fires in 2017 and 2018, for which the Pacific Gas & Electric Company (PG&E) was found to be partially at fault, the utility’s finances have taken a dive. Its liabilities from scores of lawsuits exceeds its assets by a wide margin, the standard accounting definition for being bankrupt. Of course, […]

Eskom rejects Nersa’s decisions regarding MYPD4 – heads to court; Nersa responds

According to Eskom, the reasons given by the National Energy Regulator of South Africa (Nersa), regarding allowed electricity tariff increases for the next three years, undermine the power utility’s ability to achieve financial sustainability. The utility says the reasons given do not align with the regulator’s own guidelines and will seek urgent financial relief.  Nersa regulates the tariff Eskom may charge for electricity through […]

International partners launch regional wind association for SADC

A collaborative effort between major players in the wind energy industry are creating a non-profit industry body which will work across sixteen countries to ensure wind power is fully utilised in the journey towards universal access to sustainable energy services in Southern Africa, while boosting jobs, skills and economic development. This collaboration resulted in the […]

Warning: Eskom’s new pricing plan could scupper rooftop PV in South Africa

To address its ever-decreasing revenue income, Eskom is considering a new pricing structure which will have a material impact on the value proposition of solar installations. Eskom generates revenue from two sources: fixed connection charges and electricity tariffs which vary based on usage. As a customer, the fixed connection charge is currently a relatively small […]

ISO appoints first African president at ISO Week in Cape Town

The first African president of the International Organisation for Standardisation (ISO), Edward Njoroge, was appointed at the recent ISO week in Cape Town. Njoroge is the former CEO of Kenya Electricity Generating Company (KenGen). He will take office on 1 January 2020. The event was hosted by the South African Bureau of Standards (SABS) at the […]

South African coal faces bleak outlook

South Africa’s coal mining industry is on the brink of permanent decline as the country’s main export markets prepare to reduce reliance on imports and global divestment from fossil fuels increases at an exponential rate. Eskom and Sasol, which together take nearly two thirds of the 250-million t of coal produced by South African mines […]

South African coal exports outlook: Approaching long-term decline

. The Institute for Energy Economics and Financial Analysis (IEEFA), a respected international energy think-tank, published an important new report on 16 September 2019 on the future outlook for South African coal exports, which points to an industry in long-term decline with significant risks ahead. The Executive Summary of the IEEFA report is provided below […]

Without ongoing financial support from government, Eskom will collapse

Eskom’s chairperson and acting CEO, Jabu Mabuza, says that the power utility is no longer able to borrow money from financial institutions – because it is struggling to meet the commitments on its massive existing debt – and that its only short-term option is to turn to the shareholder (i.e. the South African government) for […]

No loadshedding this summer, we hope, says Eskom

  Eskom says no loadshedding since March and the synchronisation of the final generating unit at Medupi shows that its turnaround strategy is working. Speaking at the power utility’s latest State of the System briefing recently, Jabu Mabuza, the chairman and acting group chief executive, said that the utility’s nine-point plan is bearing fruit. No […]

Analysis: Eskom unveils next stage of restructuring and turnaround plan

. A leaked Eskom vision and strategy document, apparently prepared by the Boston Consulting Group for Eskom, has revealed the next steps of a long-awaited restructuring and turnaround plan for the embattled utility.  The document was presented on 22 August 2019 to the Eskom Executive Forum, a group of about 600 senior Eskom managers and […]