The South African taxpayer is still going to fork out at least R35 billion more for Eskom to complete work on Medupi and Kusile power stations as the country struggles with an intense energy crisis.
This was revealed by President Cyril Ramaphosa in Parliament yesterday during a question and answer session.
Ramaphosa was replying to a question by ANC MP Jabulile Mkhwanazi who wanted to know the level of investment that was still required to complete the delayed design work at the two power stations.
“According to the information received from Eskom, the remaining cost to complete Medupi is close to R19bn. All six Medupi units have reached the stage of commercial operation, and the current focus is on completing the balance of plant and remedial works,” Ramaphosa said.
“The remaining cost to complete Kusile is R14bn. Four out of six Kusile units are in commercial operation and the current focus is on completing the commissioning of the remaining two units.”
The costs for the two power stations commissioned in 2007 have ballooned to a combined figure of more than R300bn.
Medupi and Kusile were earmarked to be completed in 2014, but neither of them met their deadline due to a number of reasons, including design flaws uncovered late into construction.
Eskom is now aiming to complete the two power stations in 2024.
Ramaphosa said Eskom’s intention was to complete the remaining scope of works at Medupi and Kusile within the current project budgets approved by the Eskom board.
“Eskom is making steady progress in developing and implementing effective technical solutions to the major plant defects at Medupi and Kusile power stations.
“As a result, the availability and reliability of the commissioned units at Medupi and Kusile is improving.
“The effective correction of the major plant defects at Medupi and Kusile will ensure that the plants achieve their contractual performance with improved reliability and availability factors.”
Ramaphosa said before the correction of the major plant defects, the energy availability factor at Medupi was 64% measured over 12 months.
To date, in this financial year, the energy availability factor at Medupi had improved and was around 85%.
The failure to complete work on the two power stations has contributed significantly to South Africa’s energy crisis, with Eskom failing to generate enough electricity to meet demand.
The power utility has intensified its rotational power cuts to Stage 4 due to unplanned plant breakdowns.
Eskom also extended Stage 4 load shedding to the weekend as diesel deliveries to its Gourikwa and Ankerlig Open Cycle Gas Turbine stations were delayed.
The Minister of Public Enterprises Pravin Gordhan yesterday warned South Africans to expect load shedding in the coming nine to 12 months.
“To be frank with the South African public, as the government has said repeatedly, we could still have load shedding for another nine to 12 months,” Gordhan said during an oral question session in the National Assembly.
DA MP Kevin Mileham said the severity of South Africa’s electricity crisis was such that Eskom’s coal fleet was unable to provide sufficient generation capacity to break the current bout of load shedding.
“The utility now sees the Open Cycle Gas Turbines, which are powered by diesel, as the only option left,” Mileham said.
“This is unsustainable and will put a further strain on Eskom’s shambolic finances.”
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