Eskom walking a power tightrope

Lack of funds threatens utility’s residential rollout project and may trigger electricity cuts

THE threat of blackouts this winter is increasing as Eskom struggles to start implementing the next phase of its residential roll-out programme to help curb household demand.

Funding has run dry for certain Eskom projects aimed at keeping the lights on as South Africa enters one of its most challenging winters since the rolling blackouts left the country dark and cold in 2008.

The public and business rejoiced when the National Energy Regulator of South Africa (Nersa) granted Eskom only an 8% tariff increase in February — half of what the electricity provider asked for.

However, a lack of funds could prohibit the utility from continuing programmes such as its residential mass roll-out programme.

Andrew Etzinger, Eskom’s integrated demand management senior general manager, said the utility was in the process of prioritising funding for the different mechanisms — on the supply and demand side — for Eskom to mitigate against the current energy situation in South Africa.

“We are also engaging government for potential additional sources of funding,” he said.

In the meantime, Etzinger said Eskom has proactively followed a tender process for the residential roll-out programme with the intention to be ready to appoint service providers as soon as possible if funding was approved.

Two previous phases of the residential roll-out programme have assisted 965 000 South African households to become more energy efficient by replacing inefficient light bulbs, fitting energy- and water-saving showerheads, installing geyser timers and geyser blankets and load-control devices in households.

The programme was funded by Eskom and on average cost the utility between R2 000 and R5 000 a household, depending on the house size and the number of products installed.

Such an installation could save a middle-income home with a family of four people about R7 000 a year on their electricity bill.

Eskom has managed to keep the lights on in the past two months by dampening demand as the country is in short supply until two new coalfired power stations, Medupi and Kusile, come on line.

Both these building programmes have been beset by illegal strikes that make it unlikely that the power-generating deadlines of December for Medupi and next year for Kusile would be achieved. When both plants are fully built, Medupi and Kusile will add 9 600 megawatts to the national grid’s current 43 000 MW capacity.

Eskom has been walking a tightrope since 2008 when “rolling blackouts” cost the economy R50-billion.

This winter will be especially bad as the utility needed to continue maintenance of its ageing fleet into the winter months.

During colder days, the national grid has operated with a minimal buffer and Eskom had already called on BHP Billiton to temporarily turn off its two energy-gobbling aluminium smelters last week when electricity demand exceeded availability.

In its latest system status bulletin published on Thursday, Eskom said peak demand for that evening was forecast to be 35 228MW, while the available capacity was 35 788MW,

The easiest, quickest and cheapest saving technology is the finger

leaving a margin of less than 2%.

Eskom has repeatedly asked South Africans to switch off appliances during peak demand periods between 5pm and 9pm daily to help ease the national electricity load this winter. This could save up to 10% of a household’s electricity usage, Eskom said.

“The easiest, quickest and cheapest saving technology is the finger. Switch it off if you do not need it,” said Etzinger.

Since 2005 Eskom’s total demand savings — generated through several programmes — has been equal to the capacity of a power station. Over the past three years, the cost of its integrated demand management programme amounted to R5.4-billion.