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In South Africa, media criticism is directed at an investigative media intent on exposing hypocrisy, fraud and corruption, which of is course denied vehemently or underplayed by government and big business as the work of a so-called “unpatriotic” media that focuses on the bad news rather than the good; a media whose investigative instincts and work impinges on the dignity and privacy of the targets. Or so it is claimed… (more)
With thoughts of economic stagnation, manufacturing decline, automation and associated job losses on our minds, and with the threat posed by China looming large as the de facto manufacturing workshop of the world, four intrepid South African “techies” set off for the windy city of Chicago, Illinois, to find out more at the 2011 Rockwell Automation Fair held from 15 to 17 November 2011… (more)
by Chris Yelland, EE Publishers
On 23 August 2011, EE Publishers hosted an open panel discussion and debate in Midrand, entitled “Renewable Energy in South Africa – going backwards or forwards?” At the debate, key players in the renewable energy (RE) sector of South Africa covered the background on where the country finds itself now, as well as the road ahead in the implementation of the ambitious renewable energy targets detailed in the national integrated resource plan for electricity, IRP 2010 – 2030. This will involve the installation of some 9200 MW of wind generation capacity, 8400 MW of solar photo-voltaic (PV) capacity, and 1200 MW of concentrating solar plant (CSP) capacity by 2030… (more)
by Mark Botha and Chris Yelland, EE Publishers
The debate around hydraulic fracturing in the Karoo is an issue of national and public interest. Shale gas extraction has the potential, some say, to change the face of the country’s power industry and improve the lives of millions of South Africans. Public opinion, however, is a powerful force well-known to have hampered the nuclear industry in the past… (more)
by Chris Yelland, managing director, EE Publishers
Within a few weeks, Judge Kgomo of the South Gauteng High Court will rule on whether Eskom must hand over certain documents requested by Media 24 in terms of the Promotion of Access to Information Act that would reveal details of secret pricing deals with BHP Billiton that have long been held to be confidential. However the matter may not end here, but could be heading for the Constitutional Court… (more)
by Chris Yelland, managing director, EE Publishers
Phindile Nzimande, former CEO of EDI Holdings (Pty) Ltd, has been appointed CEO of the National Energy Regulator of South Africa (NERSA) with effect from 1 May 2011. This follows a decision by the cabinet announced in December 2010 to disband EDI Holdings by 1 April 2011… (more)
by Chris Yelland and Peter Adams, EE Publishers
Products that allow electric plugs to be inserted incorrectly, thereby exposing users to live parts and the risk of lethal electric shocks, can be found for sale at major retail outlets in South Africa. But despite its mandate to enforce compulsory specifications and ensure public safety, the National Regulator of Compulsory Specifications says it has no grounds to take action. There is clearly something very wrong in “the state of Rome”… (more)
by Mike Rycroft, Mark Botha and Chris Yelland, EE Publishers
It is well known that the price of electricity in South Africa has been too low for years. The generation capacity crisis in 2008 prompted a review of Eskom’s build programme and associated funding plan. The original expectation was that there would be a short-duration adjustment to bring prices to the correct level, and thereafter electricity prices increases would follow inflation. But the adjustment did not develop in line with expectations, and price increases much higher than inflation are expected for many years to come… (more)
by Chris Yelland, managing director, EE Publishers
In recent months and at various venues Eskom has been lobbying and punting the view that a new dispensation and enabling environment is required for the utility to secure the cheap and abundant supplies of coal needed for its current and future fleet of coal-fired power stations. When pressed for details, Eskom officials become a little coy. But stripping aside the euphemisms, what Eskom is saying is that, in the light of higher global demand and world market prices for even the low-grade coal used in Eskom power stations, the utility is having difficulty matching these prices and contracting on a voluntary basis with the coal miners to secure its medium and long-term coal supplies… (more)
by Chris Yelland, managing director
EE Publishers is actively encouraging the submission of civic-minded articles, news, pictures and audio/video clips from its readers and the general public for consideration for publishing in its magazines, email newsletters and website.
To this end, EE Publishers has established a facility at its website for readers and the general public to upload articles, files and supporting documents under the category of Citizen Journalism.
In addition, EE Publishers has established a Facebook page entitled EE Publishers for Citizen Journalism, where readers may submit short commentaries, articles, pictures, captions, links, audio/video clips, etc., following widely familiar procedures.
Upload a Citizen Journalism submission at EE Publishers’ website
Post to the EE Publishers for Citizen Journalism wall on Facebook
… (more)
by Chris Yelland, managing director, EE Publishers
Get The Daily EE News free – a round-up of local and international news and information in the energy, power, electricity, electronics, measurement, automation, computer, telecomms and geographic information science sectors. The Daily EE News organises information and links shared by EE Publishers on Twitter into an easy-to-read newspaper-style format. Simply bookmark http://paper.li/eepublishers/1293469668 to view The Daily EE News at any time, or click the Subscribe button on The Daily EE News to receive a two-line plain-text email reminder and link when The Daily EE News is published each day at 12 noon. The Daily EE News is also archived daily, to enable you to view all back issues… (more)
by Chris Yelland, managing director, EE Publishers
Chris Yelland speaking on Radio 702 on Friday 7 January 2011 with Stephen Grootes, discussing Eskom and the state of the electricity power system in South Africa.
by Chris Yelland, managing director, EE Publishers, www.eepublishers.co.za
Once again, public sector governance issues, and battles between the CEO, the board and the responsible minister have rocked South Africa. Eskom, SAA, Transnet, the SABC… and now, in the latest saga, the National Energy Regulator of South Africa (NERSA). On 15 November 2010, Chairperson Cecilia Khuzwayo indicated that the regulator had suspended its CEO, Smunda Mokoena, for “alleged gross transgression of NERSA’s code of conduct”. Whilst official spokesman Charles Hlebela would not be drawn on the specifics, an article in The Times on 15 November went a step further, quoting a source alleging that that “quite recently he (the CEO) chaired a meeting completely drunk”, and that “he had a drinking problem that was getting out of hand”… (more)
Reliable sources have revealed that the cabinet has decided to withdraw a bill published on 17 June 2009 proposing an amendment to the constitution of South Africa in respect of the existing entrenched rights and obligations of local government entities (i.e. municipalities) to distribute electricity. This decision by the cabinet is said to be the precursor to the disbanding of EDI Holdings (Pty) Ltd by 1 April 2011. EDI Holdings is a state owned company that was established by government on 1 July 2003 to project-manage the restructuring of the EDI… (for more see http://www.eepublishers.co.za/view.php?sid=23975)
by Chris Yelland, managing director, EE Publishers, www.eepublishers.co.za
This article was first published on 12 November 2010 in Critical Thinking Forum, a supplement to the Mail & Guardian, www.mg.co.za.
In a world of rising energy demand, natural gas as a low carbon energy solution is playing an increasingly important role in many countries. Natural gas is more energy efficient and environmentally friendly than other fossil fuels, but is in relatively scarce supply in South Africa. Given its environmental benefits and the need to diversify and secure energy supply, what is the role of natural gas in meeting electrical energy demand in South Africa, and what building blocks are needed today to establish a vibrant gas industry for South Africa in future?… (more)
by Mike Rycroft, editor of Energize
This article was first published in Critical Thinking Forum, a supplement to the Mail & Guardian, www.mg.co.za.
Three announcements in the last few weeks have created new hope that the long-awaited renewable energy (RE) programme will get underway, namely: the request-for-information on renewable energy projects from the Department of Energy (DoE); the announcement by the minister of energy of the establishment of a solar park in the Upington area; and the release of the draft integrated resource plan for electricity (IRP2010) for public comment… (more)
by Chris Yelland, EE Publishers
There has been some criticism of the lack transparency and inadequate time allowed for effective stakeholder engagement in the 20-year Integrated Resource Plan for Electricity (IRP 2) currently under development by the Department of Energy (DoE) in South Africa (Energize, May 2010 issue, page 15).
Many stakeholders and interested parties may wish to be involved but may not be aware of the stakeholder engagement process currently in progress, of the DoE website at www.doe-irp.co.za where information and documentation on the process may be obtained, and of the tight time-lines involved… (more)
by Chris Yelland, EE Publishers
On 16 April 2010, Fin24 sent out a report that may have startled some, and sent shudders through ideological die-hards within the Tripartite Alliance.
The article was apparently based on discussions with Eskom’s new finance director, Paul O’Flaherty, and human resources director, Bhabhalazi Bulunga. It stated that “Eskom is planning a major restructuring, which could involve a partial privatisation and a major shake-up of its labour force”, and that “the company may be split up, and certain of its assets privatised, in a similar fashion to that of arms utility Denel”.
The very same day, this was promptly and vehemently denied in a press release from Eskom’s media desk, in which O’Flaherty is quoted as saying that “Eskom is looking at standardising and streamlining its systems and processes across the business. We have had no discussions about reducing our workforce and have not made any changes to our labour policies”. The press release stated categorically that Eskom has no plans of restructuring as outlined in the Fin24 article.
Two apparently contradictory reports? Let’s take a closer look at the three pillars of Eskom’s business – generation, transmission and distribution – to try and understand what’s actually going on here… (more)
by Chris Yelland, EE Publishers
After gazetting a flawed and widely criticised 3-year interim electricity integrated resource plan (IRP 1) on 31 December 2009, well after Eskom had submitted its initial (45% pa for 3 years) and revised (35% pa for 3 years) multi-year price applications to NERSA in the second half of 2009, the DoE is now franticly working on the long overdue real thing – a 20-year national integrated resource plan for electricity (IRP 2) as required in terms of the National Energy Act of 2008, the Electricity Regulation Act of 2006, and the Electrical Regulations on New Generation Capacity of 2009… (more)
by Chris Yelland, EE Publishers
It’s official – we’ve got the loan. And from the limited information available at this time it appears that it is unconditional, this despite the lack of support from significant shareholders of the World Bank. It has been reported that the USA, UK, Italy, Norway and Netherlands abstained from voting on the loan application.
The award will come as a great relief to the government, the ANC, Eskom and those concerned about security of supply in South Africa through the construction of the 4800 MW Medupi coal-fired power station, scheduled to start coming on stream in 2012. The loan will ensure that there should be no delays to Medupi as a result of funding issues… (more)
by EE Publishers staff reporter
At its annual general meeting on 26 March 2010, outgoing president of the South African Institute of Electrical Engineers (SAIEE), du Toit Grobler, and honorary treasurer Les James reported “a significant fraud” having taken place within the SAIEE during the year ending 31 December 2009. The qualified audit report presented by external auditors PriceWaterhouseCoopers at the AGM states that “An employee stole R703 452 due to fraudulent transactions. A forensic audit has been conducted, but has not yet been completed. A further amount of R234 320 relating to the financial year has been identified as suspicious transactions. As the forensic audit is underway, the impact on the financial statements could not be established”… (more)
by EE Publishers staff reporter
Various media have already reported Anglo American CEO Cynthia Carroll as saying that Anglo would consider investing in a power station if necessary. Fin24 has reported sighting documents showing that Anglo is being considered as an investor in Kusile, the R142-billion coal-fired power station being built near Delmas, in which Eskom is seeking a 30% to 49% private equity partner, although this has since been denied. Now the Anglo website has officially announced its study for the construction of a new coal-fired power station using circulating fluidised-bed combustion technology. What will be next?… (more)
Informed sources within Eskom Generation have indicated to EE Publishers that significant further cost increases can be expected for both Medupi and Kusile power stations.
In the case of Medupi, provision has been made at a cost of “several hundred million rands” in the current R125-billion price tag to ensure that the plant is ready for the incorporation of flue-gas desulphurisation (FGD) plant. The FGD plant itsself will be installed under a seperate contract at the first general overhaul cycle of Medupi power station in about 2018.
Kusile, on the other hand, will have FGD plant installed from the beginning during the construction of the power station, and its cost is therefore included in the current overall R142-billion price tag. Further pushing up Kusile’s price will be a significant additional cost of interest during construction, as well as contract price escallation, resulting from construction delays and the moratorium on placing of contracts since December 2008 due to the absence of a funding plan for the Eskom new-build programme… (more)
You are cordially invited to attend an open and interactive workshop, panel discussion and debate hosted by trade union, Solidarity. A panel of experts will discuss funding plans for Eskom and its MYPD (multi-year price determination) application to NERSA for an increase in the average price of electricity of 45% per annum for three consecutive years.
DATE: 3 December 2009
TIME: 09h30 for 10h00 to 13h00, followed by lunch, courtesy of Solidarity
VENUE: Centurion Lake Hotel, Centurion, Pretoria (directions below)
COST: No cost, free-of-charge
TIME: 09h30 for 10h00 to 13h00, followed by lunch, courtesy of Solidarity
VENUE: Centurion Lake Hotel, Centurion, Pretoria (directions below)
COST: No cost, free-of-charge
REGISTRATION: Click here to register online
Chris Yelland, managing director of EE Publishers, will act as the facilitator and chairperson for the discussion. The panel of experts will comprise:
- Chris Hart: senior economist at Investment Solutions, a provider of multi-manager investment portfolios, with assets under management of over R100-billion
- Andrew Kenny: consulting engineer, with degrees in physics and mechanical engineering, formerly of Eskom and senior research officer at the Energy Research Institute of the University of Cape Town
- Mike Schüssler: senior economist and partner of Economists.co.za, a specialist economics consultancy to government, business and industry
… (more)
by Chris Yelland, EE Publishers
On Thursday 29 October, well over a week ago, a fateful Eskom board meeting heralded an unprecedented management crisis within this key South African state-owned enterprise.
The company is still reeling from a generation capacity crisis, the power black-outs of 2008, a serious skills shortage, a funding crisis for its new-build programme, and applications to the Regulator that would increase the price of electricity five-fold over the five-year period from 2008 to 2012.
Of course it is no coincidence that the new crisis has occurred at this critical juncture. In fact, this latest management crisis is simply a manifestation of the convergence of pressures and tensions arising from these and manyother issues at this time… (more)
by Chris Yelland, EE Publishers
What do Department of Public Enterprises (DPE) deputy minister Enoch Godongwana, Eskom chairman Bobby Godsell, Eskom Generation COO Brian Dames and Eskom spokesman Andrew Etzinger all have in common? Well, they are all responsible for or work for an Eskom in serious disarray. And they are certainly not fools. But these are not the common factor I allude to… (more)
Following recent (apparently contradictory) media reports on the current status and future prospects of the Westcor Project to bring power from the Congo River in the DRC to South Africa, this article considers factors that may be inhibiting progress, and examines why the Westcor dream may be unachievable in its current format… (more)
An interview with Doug Kuni, managing director of the South African Independent Power Producers Association (SAIPPA)
by Chris Yelland, managing director of EE Publishers
In this interview, Chris Yelland, managing director of EE Publishers, questions Doug Kuni, formerly from Eskom Generation, now a private consultant and managing director of the newly formed South African Independent Power Producers Association (SAIPPA), on the issues surrounding Eskom and IPPs in South Africa.
Audio-cast: Listen to the full interview with Doug Kuni (MP3 file)
Read the full interview and get the answers to the questions:
- Mr. Kuni, to what extent do you believe that South Africa needs IPPs and industrial co-generation as part of the solution to South Africa’s generation capacity crisis, and what advantages do IPPs bring?
- There has been talk of getting IPPs into the generation mix in South Africa for over ten years, but we still see few signs of progress. What is really going on, and what is it that is holding South Africa back?
- Do you believe that Eskom can be an honest broker as a generation project specifier, evaluator, adjudicator, power purchaser and competitor of IPPs, or is the conflict of interest a big problem?
- To what extent do you believe Eskom is hostile to IPPs and tries to keep them out?
- Please can you respond to statements often made to justify Eskom’s new build programme, namely that IPPs had not come to the table because they could not compete with Eskom’s very efficient and superior generation operation, and that this was therefore some kind of market failure?
- Please can you respond to statements often made by Eskom that it generates electricity at about half the price offered by IPPs, and that the country should therefore be wary of the IPP option?
- Eskom has commissioned some 2000 MW of OCGT (open cycle gas turbine) generation in the Cape. Since the operating costs are very high, has this helped or hindered the situation in South Africa, and should this have been left to IPPs?
- With the extremely high cost of operating the OCGTs, and the cost of Eskom’s new build programme spiralling upwards, how do IPPs feel about Eskom’s claims that they (IPPs) come at a high cost compared to Eskom?
- Is the current Eskom generation build programme (i.e. the return-to-service of mothballed power stations, OCGTs in the Western Cape, the Medupi and Kusile coal-fired power stations , and the Ingula and Tubatse pumped storage schemes) South Africa’s best and least-cost option for generation capacity to meet the demand forecast over the next 20 years and more?
- Is there adequate understanding within government, the DoE, DTI, DPE, Treasury, Regulator and Eskom of the electricity supply industry and its dynamics?
- In an environment of severe government and Eskom funding constraints, to what extent can IPPs alleviate the burden being felt by Eskom, the Treasury and the country?
- What do you make of the government and Eskom’s funding of the development of the pebble bed modular reactor (PBMR), and should they be involved in this?
- Should Eskom involve itself in wind, concentrating solar, photo-voltaic solar, small hydro and other renewable energy projects, or should this be left to IPPs?
… (more)
The winners of the 2009 SANEA energy awards were announced recently. In presenting the awards Brian Statham, the chairman of SANEA, paid tribute to the many men and women who strive daily to ensure that South Africa enjoys a stable and secure energy future… (more)
An interview with Dr. Ian McRae, former Eskom chief executive and chairman of the NER
by Chris Yelland, managing director of EE Publishers
In this interview, Chris Yelland, managing director of EE Publishers, questions Dr. Ian McRae on the state of the electricity supply industry and the electricity issues facing South Africa.
Dr. McRae was chief executive of Eskom from 1985 to 1994, and was subsequently the first executive chairman and chief executive of the NER (National Electricity Regulator) from 1995 to 1997. It was during Dr. McRae’s time as head of Eskom Generation that the current fleet of large coal-fired power stations, the Koeberg nuclear power station, the hydro-electric power stations of the Orange River, and the Drakensberg pumped water storage scheme, were all built. In 1990, as Eskom chief executive, he also embarked Eskom on one of the world’s largest mass electrification programmes, under the slogan: “Electricity for all”.
Dr. McRae has written a book entitled “The test of leadership – 50 years in the electricity supply industry of Southern Africa”, published by EE Publishers. The first printing of the book was completely sold out, and the book is now in its second edition, available from EE Publishers, South Africa.
Read the full interview and get the answers to the questions:
- Dr. McRae, what has prompted you to speak out now on the electricity issues facing South Africa?
- What decisions or indecisions by government do you believe have contributed to the current electricity problems in South Africa?
- What do you believe is the role and responsibility of the Eskom board of directors in all this?
- As the first chief executive and chairman of the National Electricity Regulator in South Africa, do you think the Regulator has alleviated or accentuated the electricity problems facing the country?
- To what extent has inadequate planning, for example in the Western Cape, had on the security of supply of the country?
- What do you think has been the role of deficient coal procurement practices and coal supply in the problems experienced?
- Do you believe that there is a skills crisis in the electricity supply industry, and if so, what has been the impact?
- Do you believe that inadequate financial planning by Eskom and the responsible government departments is affecting the electricity supply industry and the country?
- So what should be done about it? Please can you give some pointers on what you think the leaders in the electricity supply industry should be doing?
… (more)
An interview with Brian Dames, COO of Eskom Generation, by EE Publishers MD Chris Yelland.
Audio-cast: Listen to the full interview with Brian Dames (MP3 file)
EE Publishers MD Chris Yelland questions Brian Dames, COO of Eskom Generation, on electricity generation policy in South Africa, with particular reference to Eskom’s generation capacity planning and mix in the years ahead.
Read the interview and get Brian Dames’views:
- On energy policy and planning…
- On sources of finance for Eskom…
- On funding of Eskom’s new-build programme…
- On coal as Eskom’s primary energy source…
- On Eskom’s nuclear energy programme…
- On wind energy…
- On solar energy…
- On hydro energy…
- On independent power producers (IPPs)…
- On industrial co-generation…
- On Eskom’s coal costs…
Audio-cast: Listen to the full interview with Brian Dames (MP3 file)
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