Don’t bury Eskom’s Opera assessment
I MUST applaud the decision taken by the Minister of Finance to issue, in the interests of transparency, the VGBE’s Opera Assessment Report on the Operational Situation within Eskom into the public domain.
That report, all 614 pages, investigates Eskom’s business processes in three main areas; the coal fleet, all the coal-fired power stations and the grid transmission systems. Each area has its own problems identified with proposed remedial actions. In the power station area, each power station was visited, the problems identified and remedial actions proposed.
A review was also carried out assessing the skills of the power station staff employed in various levels. In some instances reference was made to Capacity Constraint Risks (p28) which could threaten the stability of the grid as these risks could simultaneously affect several generating units, so these identified risks should be dealt with extremely urgently. The major substations in the transmission area were investigated and recommendations made.
The Executive Summary (p29) states there is 17419.5MW of coalfired generating plant unavailable out of a total coal fired complement of 35550MW, i.e. approximately 49%. This unavailable plant corresponds to a financial loss of about R152billion a year, not taking the cost of diesel for the gas turbines into account. So any investment made for a lifetime extension could be paid off in a very short time.
My questions to the minister are:
• Which government department will be taking the responsibility to appoint and manage an organisation to prioritise and implement some or all of the actions recommended in the report?
• The budget for this project and its expenditure would be managed by the Treasury. How would the government manage the procurement of the necessary goods and services on a fast-track basis, given the comments on procurement in the report?
• How will that government department concerned communicate its progress on this long-term project to Eskom’s stakeholders and its various industrial, commercial and residential consumers?
• The implementation of the report should improve Eskom’s Energy Availability Factor (EAF) and so remove the need for load shedding. Will this improved
EAF result in changes to the new renewable generation mix recently circulated by the DMRE in the draft IRP 2023?
I sincerely hope that the government will have the courage to grasp this nettle with its potential benefits, and not bury this report in the archives.