Eskom tariff hikes: should they be higher?

[img:eskom logo_0.jpg] 22 November 2012 By Johan Muller, team leader for Energy & Power Systems at Frost & Sullivan “In the light of the recent (postponed) financial close of the window one renewable energy projects, the question has been raised again as to South Africa's future energy security issues. Fortunately, South Africa has local access to large coal deposits, providing the backbone for coal fired power stations on which the majority of industry has been built. However, with the recent 16% tariff hike announcements (over five years) to help strengthen Eskom’s financial position, and the level of push-back from stakeholders, alarm bells are ringing.

The question is seldom asked as to whether these 16% increases are not maybe too low. Eskom is currently in the position where the last coal fired power station was built more than 20 years ago, which, by international standards, makes a large majority of Eskom’s power stations due for decommissioning. Despite two new power stations being built (adding 4,800 MW each) there will, at some point in the not too distant future, be a scenario where we are minus roughly 10,000 to 11,000 MW with the decommissioning of older power plants where continuous refurbishment may be too costly.

Eskom tariff hikes: should they be higher?

[img:eskom logo_0.jpg] 22 November 2012 By Johan Muller, team leader for Energy & Power Systems at Frost & Sullivan “In the light of the recent (postponed) financial close of the window one renewable energy projects, the question has been raised again as to South Africa's future energy security issues. Fortunately, South Africa has local access to large coal deposits, providing the backbone for coal fired power stations on which the majority of industry has been built. However, with the recent 16% tariff hike announcements (over five years) to help strengthen Eskom’s financial position, and the level of push-back from stakeholders, alarm bells are ringing.

The question is seldom asked as to whether these 16% increases are not maybe too low. Eskom is currently in the position where the last coal fired power station was built more than 20 years ago, which, by international standards, makes a large majority of Eskom’s power stations due for decommissioning. Despite two new power stations being built (adding 4,800 MW each) there will, at some point in the not too distant future, be a scenario where we are minus roughly 10,000 to 11,000 MW with the decommissioning of older power plants where continuous refurbishment may be too costly.

Eskom tariff hikes: should they be higher?

[img:eskom logo_0.jpg|] 22 November 2012 By Johan Muller, team leader for Energy & Power Systems at Frost & Sullivan “In the light of the recent (postponed) financial close of the window one renewable energy projects, the question has been raised again as to South Africa's future energy security issues. Fortunately, South Africa has local access to large coal deposits, providing the backbone for coal fired power stations on which the majority of industry has been built. However, with the recent 16% tariff hike announcements (over five years) to help strengthen Eskom’s financial position, and the level of push-back from stakeholders, alarm bells are ringing.

The question is seldom asked as to whether these 16% increases are not maybe too low. Eskom is currently in the position where the last coal fired power station was built more than 20 years ago, which, by international standards, makes a large majority of Eskom’s power stations due for decommissioning. Despite two new power stations being built (adding 4,800 MW each) there will, at some point in the not too distant future, be a scenario where we are minus roughly 10,000 to 11,000 MW with the decommissioning of older power plants where continuous refurbishment may be too costly.

Eskom tariff hikes: should they be higher?

[img:eskom logo_0.jpg|  ] By Johan Muller, team leader for Energy & Power Systems at Frost & Sullivan “ 22 November 2012 In the light of the recent (postponed) financial close of the window one renewable energy projects, the question has been raised again as to South Africa's future energy security issues. Fortunately, South Africa has local access to large coal deposits, providing the backbone for coal fired power stations on which the majority of industry has been built. However, with the recent 16% tariff hike announcements (over five years) to help strengthen Eskom’s financial position, and the level of push-back from stakeholders, alarm bells are ringing.

The question is seldom asked as to whether these 16% increases are not maybe too low. Eskom is currently in the position where the last coal fired power station was built more than 20 years ago, which, by international standards, makes a large majority of Eskom’s power stations due for decommissioning. Despite two new power stations being built (adding 4,800 MW each) there will, at some point in the not too distant future, be a scenario where we are minus roughly 10,000 to 11,000 MW with the decommissioning of older power plants where continuous refurbishment may be too costly.

Eskom tariff hikes: should they be higher?

[img:eskom logo_0.jpg|  ] By Johan Muller, team leader for Energy & Power Systems at Frost & Sullivan

22 November 2012

"In the light of the recent (postponed) financial close of the window one renewable energy projects, the question has been raised again as to South Africa's future energy security issues. Fortunately, South Africa has local access to large coal deposits, providing the backbone for coal fired power stations on which the majority of industry has been built. However, with the recent 16% tariff hike announcements (over five years) to help strengthen Eskom’s financial position, and the level of push-back from stakeholders, alarm bells are ringing.

Eskom tariff hikes: should they be higher?

[img:Eskom_0.jpg| ]By Johan Muller, team leader for Energy & Power Systems at Frost & Sullivan

22 November 2012 - "In the light of the recent (postponed) financial close of the window one renewable energy projects, the question has been raised again as to South Africa's future energy security issues. Fortunately, South Africa has local access to large coal deposits, providing the backbone for coal fired power stations on which the majority of industry has been built. However, with the recent 16% tariff hike announcements (over five years) to help strengthen Eskom’s financial position, and the level of push-back from stakeholders, alarm bells are ringing.

Technological progress and the solar revolution

[img:techn.thumbnail.jpg| ]22 November 2012 - For decades the story of technology has been dominated by computing and the things you can do with it. Moore's Law — in which the price of computing power falls roughly 50% every 18 months — has powered an ever-expanding range of applications, from faxes to Facebook. Our mastery of the material world, on the other hand, has advanced much more slowly. The sources of energy, in particular, are much the same as they were a generation ago.

SA’s solar water heating programme to spend R4.5 billion

[img:Solar%202r_0.jpg| ]22 November 2012 - Changes have been announced to South Africa’s the national solar water heating (SWH) programme. The model will move from a rebate model to a government funded fiscus model that will involve a R4.5 billion spend over three years to achieve the national target.

The rebate programme for low pressure SWHs will end on the 31st of December 2012. The high pressure rebate programme will continue for the time being.

Plans for coal-fired power in DRC

[img:Private%20-%20Pic%201_0.jpg| ]21 November 2012 - The Democratic Republic of the Congo’s (DRC’s) stated owned mining company Gecamins is doing a feasibility study for the US$648 million coal fired power plant, which will use coal from Luena in Katanga province. That power station would have a 500 MW capacity and the company says it could be operational within 36 months.

Electrical sub-contracting company adopted

[img:ED-STARTUP_0.jpg| ]21 November 2012 - Wade Walker, a wholly owned subsidiary of Murray & Roberts, has adopted fledgling electrical subcontracting company Vonakala Projects and Maintenance as an enterprise development (ED) partner, in line with Murray & Roberts commitment to BBBEE and the codes of good practice contained in South Africa’sconstruction sector charter. Vonakala’s primary service offering is auditing installations for Electrical Certificates of Compliance (COCs) as a sub-contract on projects where the electrical work has been completed.

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