South Africa’s energy minister said that the government should not be hesitant to pay to fix the country’s power problem before a cabinet vote later this month.
Kgosientsho Ramokgopa, who was only appointed to the newly created position last month, stated in an interview that the National Treasury has granted state utility Eskom $13.81 billion in debt relief over the next three years.
Several unsuccessful attempts have been made by the administration of President Cyril Ramaphosa to increase the supply of electricity.
The appointment of Ramokgopa is the most recent attempt to reach a compromise prior to the 2019 national elections, in which the African National Congress may for the first time since the end of apartheid lose its parliamentary majority.
Ramokgopa opined that enhancing the performance of Eskom’s faltering coal facilities offered the best opportunity to reduce the severity of power disruptions.
He noted, however, that additional measures were required, such as spending money on fuel for Eskom’s emergency open-cycle gas turbines and expanding the national grid’s capacity.
At the Union Buildings, the seat of government, he added, “Continued high levels of load-shedding (power shortages) penalize the South African economy, cause immense suffering for the poor, and hinder our ability to attract investment.”
He argued that an increase in South Africa’s financing rates to support petroleum imports was a reasonable trade-off in light of the impact disruptions were having on job prospects and GDP growth.
When asked how the power disruption would be resolved, he responded, “I’m presenting to the cabinet, and they’ll make that determination”
Future renewable energy projects are in jeopardy, according to Ramokgopa, and some existing projects are being throttled due to grid limitations.
The cabinet will also consider allowing Eskom to purchase directly from original equipment manufacturers and investing more in the coal mines it purchases from to ensure a higher quality supply, according to him.
