Saturday 24 October 2015

Eskoms problems Faced


When the cost of that renewable energy was weighed against the sum Eskom would have spent on coal and diesel to deliver the same number of terawatt-hours (TWh) and the costs associated with load shedding avoided thanks to renewable s.
On the other hand, the incident announced for the first time how reliant we already are on renewable s - a reliance that is set to grow exponentially in future. The problem, for now, is not too much renewable energy in the mix, but too little.
Numerous possibilities presented themselves - from Eskom leasing renewable energy solutions to customers who couldn’t finance them on their own, to limiting its role to maintaining and operating the grid while charging independent power producers for the service of wheeling electricity to their customers, to supplying only subsidised power to poorer households while private customers paid an energy tax to pay for the subsidy. We have to adapt
Whatever business model was chosen for Eskom, it would be better if it were managed as a national programme guided by the state, instead of it happening on its own. We would accelerate it if you had a national rollout programme like the solar water heating systems rather than if every time someone could afford it they bought it.
But also, we lose the opportunity of having tax incentives and cross-subsidisation mechanisms and the state and Eskom just start to lose customers and there’s nothing they can do about it. That might lead to the end of Eskom, which is OK, but it could also lead to the end of the state, because the poor would end up having no energy.

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