Eskom update: Load shedding extended

South Africa’s state-owned power utility will continue to implement rolling blackouts throughout the weekend after breakdowns at five generating units overnight exacerbated capacity shortages.

Eskom Holdings will remove 3 000 megawatts until 5 a.m. on Friday and will then suspend so-called load shedding until 4 p.m., when it will again reduce supply by 3 000 megawatts until 5 a.m. on October 22, the utility said in a statement on Twitter. It will then cut 2 000 megawatts until 5 a.m. on October 24.

South Africa’s cabinet has endorsed an investment plan to help the country transition away from the use of coal, a key step in securing $8.5 billion in climate finance on offer from the world’s richest nations.

The plan envisages the closure and re-purposing of coal-fired power plants owned by Eskom, the state power utility, so that additional renewable energy can be produced. It also covers expanding the transmission grid and fostering the development of the electric-vehicle and green hydrogen industries.

Lenders to Eskom have hired financial advisors as South Africa’s state-owned power utility restructures its business.

The banks asked consultants at PricewaterhouseCoopers to assist them with negotiations, said people familiar with the matter, who aren’t authorised to talk about it and asked not to be identified. Representatives for PwC didn’t immediately respond to requests for comment.

South Africa wants to spend billions of dollars fostering an electric vehicle industry, complicating efforts to finalise an $8.5 billion climate aid package before next month’s United Nations climate summit.

The landmark funding plan unveiled at last year’s climate conference in Glasgow was meant to help South Africa wean itself off coal. It was hailed at the time as a prototype for other developing countries transitioning to cleaner energy, but talks are now mired in disagreements over how the money should be used.

Africa’s biggest bank said a significant portion of South Africa’s $8.5 billion energy transition cash should be allocated to Eskom as the quickest and cheapest route to decarbonisation.

“The biggest polluter in South Africa is Eskom by far, and by addressing that primary source of pollution or carbon emission, you will effectively be getting the best bang for your buck,” Standard Bank Group’s chief executive officer for corporate and investment banking, Kenny Fihla, said in an interview on Tuesday.

Excessive bureaucracy is curbing South Africa’s implementation of its ambitious plans to ramp up output of renewable electricity, according to the outgoing head of energy transition at Eskom. While South African President Cyril Ramaphosa has announced reforms to boost clean energy, processes should be streamlined to ensure new supply is delivered faster, Mandy Rambharos said in an interview

“As much as there are announcements about the unblocking, the red tape is still there,” she said. “We just need to go ahead and start implementing.”

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