Eskom’s coal crises deepens

Eskom, South Africa's state-owned power utility, is facing deepening challenges in maintaining its aging fleet of coal-fired power plants. Concerns are growing about Eskom's ability to meet demand in the next five years as the utility grapples with a series of issues that are impacting its operations. The situation has raised fears of potential load shedding and power supply instability in the near future. Eskom Spokesperson, Khulu Phasiwe, recently addressed these pressing issues in an interview with CNBC Africa. One of the main issues highlighted in the interview was the struggle to maintain coal supply to power stations. Phasiwe acknowledged that ten of Eskom's power stations are currently operating at critically low coal levels, prompting management to urgently seek a 12-year contract to secure coal supply. This depletion of coal reserves has already led to the initiation of emergency measures, such as operating gas turbines in the Western Cape on a daily basis to meet demand and avoid load shedding. The utility has also faced challenges from suppliers, with disruptions in coal supply affecting operations at multiple power stations. Phasiwe emphasized the importance of replenishing coal stocks promptly to address the current shortage and prevent further plant shutdowns. Another key issue discussed was the high rate of unplanned breakdowns at Eskom's power stations. Phasiwe revealed that approximately half of the power stations are at their mid-life and some units are expected to be decommissioned in the coming years. The lack of quality coal and low coal reserves have contributed to the increase in unplanned outages, necessitating a comprehensive strategy to minimize breakdowns in the future. Eskom is working closely with regulators and stakeholders to ensure a smooth transition for affected power stations and employees. Training programs and communication efforts will be implemented to inform communities and workers about the status of decommissioned plants and the way forward. Despite these challenges, Eskom remains focused on securing an adequate coal supply to sustain operations and stabilize the power grid. The utility is committed to addressing the current crises and implementing long-term solutions to safeguard South Africa's energy system.