Thread by @AntonEberhard

Great interview between Judge Dennis Davis and @Eskom_SA’s CEO André de Ruyter. I’ve provided a précis is the thread below
enca.com/shows/judge-yo…

1/
Davis: Is it possible to fix Eskom?
AdR: We’re trying but we also need an enabling environment. Power stations are old, unreliable. We need to pivot to a cleaner, greener future and we need better integration of government energy, fiscal, industrial and environmental policies

2/
Davis: Where are you going to get the money to refurbish or replace old power stations?
AdR: It’ll cost R300bn to clean up our coal plant. But that funding could be diverted to a structured, large scale roll-out of renewable energy to create jobs with a just energy transition

3/
Davis: You’re saying renewable energy is the solution? If we relaxed regulatory system to 50MW we could get a lot on the grid in a year. Is that true?
AdR: I’m going to stay in my lane
Davis: Would it alleviate the pressure?
AdR: Meridian study says 5000MW could be added soon

4/
Davis: The country is hearing from the CEO of Eskom that we could relieve the pressure within a year but we have to bang on someone else’s door for this to happen. At least this will buy you time, won’t it?
AdR: Yes

5/
ADR: We could have a phased, controlled closure of old, unreliable coal power stations with the DMRE contracting new sources of renewable energy for the grid as soon as possible.
Davis: But when is soon as possible, only by 2024? Does this mean we’ll only get relief by then?

6/
AdR: Planning assumptions no longer hold. We’re at 64% EAF rather than 75%. There’s a capacity gap.
Davis: How soon can we reduce load-shedding?
AdR: We need to change our approach to how we generate electricity in SA. Not just Eskom. We need new capacity as soon as possible.

7/
Davis: So even if you get Eskom’s efficiency up in terms of existing infrastructure, load shedding will continue? Am I correct in saying that?
AdR: That’s correct. We cannot work miracles with the system we’ve got.

8/
Davis: And therefore it’s in the renewables sector that we’re going to have to look for urgent solutions?
AdR: That’s a fair statement. The advantages of renewables are costs have come down massively. Even if you factor in storage, solar PV is cheaper than anything else.

9/
ADR: Solar PV is scalable. We have great solar radiation resources. We can roll it out quickly compared to large new coal power stations which take a decade to build and banks won’t finance them. There’s also a modest role for natural gas to balance the system.

10/
Davis: I understand there’s significant funding at a reasonable rate to finance RE & reduce carbon emissions. Why aren’t we doing that yesterday?
AdR: You are absolutely correct. We’ve been approached & are exploring ways to relieve our debt while solving our energy crisis

11/
Davis: Why then powerships?
AdR: We are currently assessing the contracts before our Board decides whether to conclude them.
Davis: If we get 5000 MW of renewables quickly will we still need the powerships?
AdR: Their proposed contracts are for 20 yrs.
Davis: That’s crazy!

12/
AdR: If we look at cheap clean technologies and funding, as well as climate benefits, its an extraordinary opportunity for SA to pivot away from fossil fuels. We could face carbon taxes on our commodity exports. Our carbon footprint is not sustainable.

13/
Davis: Is corruption so deeply embedded in Eskom that it’s impossible to root out.
AdR: It’s widespread but there are many good Eskom employees. We’re making progress but too slowly.
Davis: looks like you need the support from those who are telling you to stay in your lane.