Could IPPs solve the load shedding problem? Analyst disagrees

Over the weekend, South Africans faced more rotational load shedding.

The power utility released a statement that this was due to the loss of an additional 900MW capacity from Mozambique due to the cyclone.

Eskom says it will be implementing stage four load shedding on Monday from 9am.

Read: Stage 4 load shedding takes effect

Independent Power Producers (IPPs) are often posited as a solution to the energy crisis in South Africa. But energy expert, activist and economic analyst Adil Nchabeleng does not agree.

The problem with IPPs is that it has promised a lot but it has not delivered much.

Adil Nchabeleng, Energy expert, activist and economic analyst

So if you make a calculation, Eskom is sitting with its own capacity of about 47 000 megawatts on the system and these IPPs are adding another 6000 megawatts.

Adil Nchabeleng, Energy expert, activist and economic analyst

In theory, it is 6000 megawatts, but in reality, what IPPs have delivered doesn't come close to 1000 megawatts of production.

Adil Nchabeleng, Energy expert, activist and economic analyst

He adds that the second problem with IPPs is that they are only available 30% - when the sun shines.

Nchabeleng notes that the pricing of the current IPPs on the market is overpriced, and it is therefore not justifiable for Eskom to be carrying a loss-making product.

Read also: 'Diesel shipment arriving on Tuesday will bring big relief to the grid'

CEO at Organisation Undoing Tax Abuse (Outa) Wayne Duvenage also weighed into the conversation and says this load shedding crisis is because of incompetence.

This is due to leadership that is not planning ahead, that is not raising the flag early enough when they see these crisis arising. They should be looking further ahead than they are.

Wayne Duvenage, CEO - Outa

We also have coal supply problems and we have inferior coal. It is absolutely ludicrous that we can be in this situation - and we shouldn't be.

Wayne Duvenage, CEO - Outa

Listen below to the full interview:


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