Rédaction Africa Links 24 with Ethan van Diemen
Published on 2024-03-01 12:09:55
An independent assessment of Eskom’s operational situation at its fleet of coal-fired power stations had been kept confidential until its release on Friday, 1 March. The assessment, conducted by the VGBE energy association and appointed by the National Treasury in early 2023, revealed significant issues within Eskom’s management system that were hindering the performance of the coal fleet. Despite Eskom having a maintenance budget for its coal fleet that exceeded international benchmarks, the Energy Availability Factor (EAF) was found to be significantly lower due to a “dysfunctional and too complex” management system.
The report found that by addressing the defects in the plants and implementing prudent operation and maintenance practices, up to six stages of load shedding could be avoided. The report highlighted that the unavailable capacity at the time of assessment corresponded to financial losses of about R152 billion per year, not factoring in the cost of diesel used as backup. The main objective of the assessment was to determine the reasons for the low EAF of the coal fleet and develop measures to improve the situation.
One of the main findings of the report was that the management system at Eskom was dysfunctional and overly complex, leading to inefficiencies and a lack of accountability. Decision-making processes were opaque, with too many layers of bureaucracy and committees, hindering the ability of plant management to focus on reliable operation and maintenance. The report emphasized that the quality of operations and maintenance had suffered due to a lack of ownership, leadership, and training, as well as high staff turnover.
The report suggested that a focus on EAF alone was insufficient and could lead to poorer plant performance in the long run. It recommended that operation and maintenance practices be improved and conducted according to industry standards. The report also highlighted the need for a simplified procurement process to ensure timely provision of spare parts and qualified services by third parties. It stressed the importance of executing proper maintenance and outage work to avoid further technical deterioration of the plants.
The report recommended immediate and urgent intervention to address the issues within Eskom’s management system and improve plant performance. It suggested engaging an interim external expert team to work directly with plant management and intervene in key risk areas if necessary. The report urged the allocation of appropriate budgets to support these interventions, emphasizing that the financial losses resulting from the current situation justified significant investments in plant maintenance and reliability.
The findings of the assessment will be incorporated into Eskom’s 2024/25 Corporate Plan as part of the conditions attached to the R254 billion debt relief arrangement for Eskom. The report reflects Eskom’s operational situation during the period of the technical assessment, which took place between March and May 2023. The National Treasury emphasized the importance of addressing the issues identified in the report to improve the overall operational performance of Eskom’s coal fleet and mitigate financial losses.
Read the original article on Daily Maverick
