Eskom says 9,800MW of power generation capacity could be lost to the grid at any one time if the hazardous water treatment plant supplying Medupi and its adjacent Matimba power station were to fail, according to a National Treasury-appointed decision. The VGBe consortium, a group of technical experts, says the warning is nonsense.
If this “risk” were to materialize, approximately 10 levels of load shedding would occur.
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Read: Eskom needs practical help – report
Very politely, Eric Shunmagum, a senior manager in the office of hereditary group executive Bheki Nxumalo, said on Monday that the 600-page report contained “several errors”. , specifically pointed to the fact that Medupi has its own water treatment plant. Like the Matimba one, it is in good condition.
Mr Shunmagum was speaking at Minister of Power Kgosiensho Ramogopa's regular press conference to update South Africans on progress related to the implementation of the government's Energy Action Plan.
He said that as one of the conditions of the R254-billion debt relief granted to Eskom, Eskom will work with National Treasury and a team of experts appointed by the National Treasury to establish the true status of the company's coal-fired power plants. He said that they have collaborated on several occasions.
Read: Eskom to earn huge R254 billion in debt relief
He said the utility was “still digesting” the report and would not defend it, but needed to point out some of the inaccuracies.
Shunmagum also dismissed the risk that VGBe had warned of a lack of water supplies needed to operate the flue gas desulphurization plant to be installed at Medupi.
However, he confirmed there was a problem with the Kendal power station's water treatment facility. But it is included in the detailed recovery plan for the power plant, he added.
Detailed response will be provided in the future.
He said Eskom was preparing strategic, tactical and operational responses to the report and would share some of the issues with the public.
Still, he said Eskom accepted the report. “This highlights some important issues and confirms some of the issues we have been working on.”
National Treasury appointed VGBe in February last year and submitted a report in mid-year.
Finance Minister Enoch Godongwana said it was only made public earlier this month because it needed to be disseminated within the government first.
Read/Listen: Who and what is the “independent consortium” investigating Eskom’s operational issues?
Asked about one of the key recommendations – appointing one or two external experts to each coal-fired power plant for up to two years – Ramokgopa said that would be decided by Eskom's board and management. He said it was true.
It remains to be seen whether National Treasury will insist on these appointments.
Source: Minister of Electricity
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Shunmagum noted that Eskom is expanding its use of original equipment manufacturer (OEM) experts for power plant boilers and turbines to other ancillary components.
We are also extending the terms of staff with key skills who are appointed on a contract basis.
Additionally, Business for South Africa, through the National Energy Crisis Committee (Necom), has appointed external experts to five Eskom power stations.
Multiple reports to consider
However, Mr. Shunmagum never said that implementing the VGBe recommendation to appoint more external experts was unnecessary.
Ramogopa also appears to downplay the report, which is based on a report by a ministerial technical task team, a report by the World Bank, and his own diagnosis compiled after taking office and on a visit a year ago. He noted that the report is one of several such reports. All Eskom power stations.
“Based on the investigation, the VGBe has issued several findings, many of which are included in the Ministerial Diagnosis Report (MoE, 2023),” he said.
Based on the latter, “several interventions have since been launched” to address short-term issues, while the board and management “continue to address systemic challenges” at Eskom.
Mr Ramokgopa said all reports had three broad themes: infrastructure, operational systems, plant and human resources processes and management.
Eskom currently has a permanent board of directors, with Dan Malokane, who took office on March 1, as the new CEO. They plan to integrate the findings of all reports and develop a systematic response.
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Mr Ramokgopa pointed to 10 focus areas for Eskom in response to the report and some of its previous successes.
Source: Minister of Electricity
