Eskom’s heavy reliance on diesel for power generation, amounting to R65 billion over five years, raises concerns. Energy analyst Clyde Mallinson suggests investing in sustainable solar energy plants instead. Solar Capital De Aar Project’s R4.8 billion cost highlights the potential of solar energy. Battery storage advancements offer solutions to solar power limitations.
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By My Broadband Staff Writer
Energy analyst Clyde Mallinson said Eskom could have used the billions it spent on diesel to build sustainable solar energy plants that could produce power for many years.
Public Enterprises Minister Pravin Gordhan recently revealed that Eskom spent R65 billion on diesel over the past five years to fuel its open-cycle gas turbines (OCGTs).
These open-cycle gas turbines were never designed for base-load power generation and should only be used in emergencies.
However, they are now a core part of Eskom’s strategy to limit load-shedding. This comes at an enormous cost.
The money Eskom spent on diesel increased from R5.8 billion in 2019/2020 to R23 billion in 2023/2024.
As Eskom still relies on OCGTs to augment the power supply deficit, chairman Mteto Nyati said it is unlikely that there will be a decline in diesel spending this year.
Many people were shocked by the R65 billion diesel bill, which equates to R1 billion per month over five years. However, this is not even the total amount.
Mallinson highlighted that the R65 billion quoted by Minister Gordhan only relates to the money Eskom spent on its own OCGTs.
“The power utility spends another 50%, on average, on independent power producer open-cycle gas turbines,” he said.
After adding these, Eskom spent around R36 billion on diesel over the last year and closer to R100 billion over the past five years.
“If Eskom had spent that money on solar plants, it would have produced the same amount of electricity as the OCGTs,” he said.
However, unlike burning diesel, which produces power once-off, the solar plants would have produced the same electricity year after year.
To put the amounts in perspective, one of South Africa’s premier solar power plants, the Solar Capital De Aar Project in the Northern Cape, cost R4.8 billion.
The photovoltaic (PV) facility has an installed generating capacity of 175MW, enough to provide electricity to roughly 75,000 homes.
One of the challenges is that solar power plans can not produce power during the evening and morning peaks because the sun does not shine then.
However, a forthcoming investment in backup power storage means the plant can feed stored electricity into the grid between the 07:30 and 09:00 morning peak demand.
There are already examples of large solar battery storage systems feeding power into the South African grid.
Scatec ASA announced its Kenhardt hybrid solar and battery facility in the Northern Cape started producing and supplying electricity to the national grid on 11 December 2023.
The facility boasts a combined installed solar capacity of 540MW from three plants, while its massive battery system can output up to 225MW of power.
With a 1,140MWh capacity, the battery can consistently supply 150MW of dispatchable power between 05:00 and 21:30 throughout the year.
That is around 30MW more output than the last unit at the Komati Power Station produced by the time Eskom decommissioned the 61-year-old plant in October 2022.
Scatec sells electricity from the facility to Eskom under a 20-year power purchase agreement.
Read also:
- Eskom’s five-year diesel spending could fill 42M Toyota Hilux bakkies
- Eskom’s load-shedding respite spurs doubts over diesel use ahead of elections
- Eskom forecasts reduced loadshedding for winter months
This article was first published by My Broadband and is republished with permission
