Rédaction Africa Links 24 with Tim Cohen
Published on 2024-03-03 20:41:19
The report released last year by the German VGBE consortium on Eskom, commissioned as a condition for the R254-billion bailout by the Treasury, is a comprehensive 600-page analysis of the utility’s challenges. Representatives from Dornier Power and Heat, KWS Energy Knowledge, RWE Technology International, and Steag conducted the study, providing an external and independent perspective on Eskom’s management structure.
The report points out that Eskom’s management structure is in disarray, with a lack of authority, inefficient processes, and an opaque decision-making structure hindering operational efficiency. The coal fleet’s Energy Availability Factor (EAF) is currently around 51%, well below international benchmarks of 78%. The report attributes this low EAF to a dysfunctional management system at Eskom, preventing plant managers from focusing on reliable operation and maintenance.
The German experts were surprised by the poor housekeeping at Eskom’s coal power stations, with photos showing water leaks, ash build-up, and a general lack of cleanliness. The report emphasizes the need for a shift in focus from EAF to reducing partial load losses (PLL) to improve operational efficiency, potentially unlocking an additional 6GW of capacity.
Procurement processes at Eskom were found to be slow and inefficient, with lengthy evaluation processes and no prequalification of suppliers contributing to delays. The report highlights the need for greater autonomy for plant managers to quickly procure necessary equipment and supplies from reputable suppliers.
Skills assessments conducted by the team revealed a mix of competent managers and others unwilling to participate, raising concerns about accountability and insubordination within the organization. The report also recommends private-sector involvement and the hiring of external experts to oversee coal procurement and maintenance initiatives.
Despite the report’s thorough analysis of Eskom’s challenges, one area not addressed is the issue of inflated staffing levels at the utility, which may impede swift action on the ground. Overall, the report provides valuable insights into Eskom’s management shortcomings and offers recommendations for improvement in procurement, maintenance, and operational efficiency.
Read the original article on Daily Maverick
