Eskom CEO Brian Dames. Oupa Nkosi, M&G
”We must decide now to build the next power plant. We must not make the mistake to build when it is too late,” Dames told the African Utility Week exhibition in Johannesburg.
Electricity was a long-term industry where decisions shaped the future prospects of both the industry and economic growth, he said.
With urbanisation and technology pushing up electricity demand world-wide, Dames added investing in infrastructure was important, as South Africa gradually moved away from coal towards nuclear and renewable energy.
”The economics of renewables are increasingly attractive,” said Dames.
Dames said Eskom had added 5 700MW to the national power grid since 2005 and intended to have added 11 000MW by the end of the decade.
South Africa’s concerns about energy supply would subside as capacity to generate power increased, but other countries in Africa were not so fortunate.
Reserves
It was in the country’s interest to facilitate increased power capacity on the continent, he said.
While Eskom was not concerned about meeting demand as winter in South Africa deepened, there was concern about reserves for maintenance, said Dames.
This was partly why Eskom had stepped up maintenance operations over the last few months.
Dames called on South Africans to save energy, citing the 2 000MW daily increase in demand between 5pm and 9pm in winter.
He said he hoped all households in South Africa would have electricity by 2030. Between 2.5-million to three-million homes were still not connected to the national power grid.
Turning to tariffs, Dames said South Africa’s electricity prices were not yet cost-effective. Increases over a longer period of time, matching the rise in inflation, was where tariff increases should eventually settle.
He said if increased capacity was created, it had to be paid for. – Sapa
