After being exposed to the exponential curve that renewables are on globally, I’m hoping South Africa’s political leadership doesn’t wake up too late to the dangerous course now being followed. With cash-strapped Russian President Vladimir Putin pushing SA into a R1-trillion nuclear deal that would burden taxpayers for decades, local businesses are growing increasingly restive, looking for ways to share resources and eliminate Eskom from their lives. There are even a few, like the gent featured in this article, who see some upside. Like Zapiro – this is a nation whose citizens are finding alternatives – which is what you’d expect in a country where “‘n Boer maak ‘n plan” (A farmer makes a plan). – Alec HoggÂ
(Bloomberg) — There are few things better for business at Archie Milicevicâs shop than a power blackout.
His store named Yugo, in Linden suburb in South Africaâs biggest city, stocks candles, candlestick holders and kerosene lamps and is attracting as many as three times more customers since state-owned utility Eskom Holdings SOC Ltd. started regular, scheduled power cuts, known as load-shedding, more than six months ago. The first prolonged outages since 2008 are prompting companies including McDonaldâs Corp. and Vodacom Group Ltd. to invest in generators for electricity.
âIâm an old guy with an old store so Iâm not really affected by the power cuts,â he said, sitting behind a counter in his general store in Johannesburg as the smell of kerosene hung in the air. âThereâs always natural light because Iâm only at work till 6 oâclock, so I can use my calculator during load- shedding hours.â
Milicevic, 70, is a rare winner of the rolling blackouts that have hit Africaâs most-industrialized economy almost daily since the start of April and are likely to persist for at least another two years. Eskom, which supplies about 95 percent of the countryâs electricity, canât meet demand from its aging plants and began rationing power in November, forcing businesses to shut doors and causing traffic congestion.
The outages, though, are boosting sales of generators, solar lights and gas stoves.
âGenerator sales have more than doubled over the past year,â Annaleigh Vallie, a spokeswoman for Massmart Holdings Ltd., the South African retailer owned by Wal-Mart Stores Inc., said in an e-mailed response to questions. âWe have been working around the clock to keep up with demand and bringing in stock regularly.â
Battery Pack
A gasoline generator to give power to an average-sized home costs about 9,000 rand ($740).
McDonaldâs and Vodacom, Vodafone Group Plcâs Africa unit, are among the businesses tackling the outages. Vodacom is seeking to increase emergency fuel stockpiles and wants to work with its biggest rival, MTN Group Ltd., to keep its network online during power cuts, Chief Executive Officer Shameel Joosub said in a May 18 interview.
âSurely thereâs opportunity for us to work together, create a better battery pack,â Joosub said at the companyâs Johannesburg headquarters. âYou could put a generator at the site and share the cost three or four ways.â
McDonaldâs, which has more than 200 restaurants in South Africa, plans to have about 75 percent of its outlets connected to a generator before August, the companyâs South Africa CEO, Greg Solomon, said in an e-mailed response to questions. That compares with 40 percent now.
Mall Generators
Eskom is struggling to build new plants in time to curb power cuts, while trying to plug a 225 billion-rand cashflow shortfall. The 4,764-megawatt Medupi plant, the first new major facility being built after decades of underinvestment, is four years behind schedule.
At Sandton City, a shopping mall in Johannesburgâs financial hub, generators are the only way to sustain daily operations during load shedding. The mall is majority-owned by Liberty Holdings Ltd.
âThe generators have to pick the whole center up,â said Derrick Ntuli, whose Italian restaurant in center had 30 seconds of darkness on May 22. âIt shouldnât be more than a minute, or more than two minutes.â
The mall will seek to recoup costs of providing emergency power during blackouts, and is considering charging stores for running generators, Libertyâs assistant technical manager, Harry Husselmann, said by phone. It used 10,000 liters (2,640 gallons) of diesel last week on the machines, he said.
The power crisis is stifling a recovery in South African economic growth from the weakest expansion last year since a recession in 2009. Gross domestic product grew an annualized 1.3 percent in the first quarter as factory production contracted 2.4 percent.
But for Archie Milicevic, there are few downsides. While paraffin lamps are his biggest draw, old-fashioned fire-heated irons are selling fast.
âI stock things that they need during load-shedding, so I benefit,â he said. âThe till I use runs on electricity. If that doesnât run, Iâve always got this calculator.â