Eskom is awaiting government approval to get the 100 megawatts of power offered by the Mozambique energy ministry in July.
Eskom is awaiting government approval to get the 100 megawatts of power offered by the Mozambique energy ministry in July.
The 100MW would play a role in helping to ease load-shedding, according to Electricity Minister Kgosientsho Ramokgopa. The offer came after South Africa was battling with stage six load-shedding to help it reduce power cuts.
But South Africa never received this power, which is stuck in governmental red tape that has hindered the utility from accessing the much-needed megawatts.
“Governance approvals are required prior to the conclusion of commercial contracts for the purchase of power, which are currently underway,” Eskom said in a response.
The utility also said it had received the energy regulator’s approval in July.
Ramokgopa’s spokesperson, Tsakane Khambane, told the Mail & Guardian the delay was caused by the governmental procurement processes.
“Because Eskom is a governmental institution, it is tied to Public Finance Management Act rules. It does not have the flexibility to go and procure megawatts without accountability, which is why it has to go through a process to acquire these megawatts. Eskom is the one talking to EDM [Electricidade de Moçambique, the Mozambique power utility] because it has the ability to house the megawatts that we receive,” she said.
When asked why there was a delay, Eskom spokesperson Daphne Mokwena said the power utility was waiting for the Eskom board to approve its plans to procure more gas-to-power megawatts from Mozambique.
“We are importing an additional 180 megawatts from Cahora Bassa compared to last year. Additional opportunities for green fields projects [renewable projects by independent power producers] will be pursued from November subject to board approval of a procurement programme, which has been finalised following Nersa’s [National Energy Regulator of South Africa’s] approval in July,” she said.
Baffling
The EDM has said the South African government has not taken the offer further.
There are discussions underway between the two utilities over a bill that is deemed unpaid by Eskom. In its December 2022 integrated report, which looks at overall performance, Eskom said the EDM owed R579 million for power supplied to Maputo.
Eskom added that debt management with the EDM remained difficult because R350 million was in dispute between the utilities.
“Only EDM of Mozambique remains in arrears, with R579 million outstanding at year end, of which 88% is overdue. In June 2022, we submitted a settlement offer on the disputed amount of R350 million, which EDM declined. The mediation process is still under way,” Eskom said.
SA needs all the power it can get
Ramokgopa at the time said that it was important for the government to get additional megawatts onto the grid.
“The initial 80 to 100MW of power, which will be sourced from Mozambique’s gas-rich Cabo Delgado region, is available immediately to be plugged into the local grid,” he said.
According to Ramokgopa, this will gradually increase to 600MW within the next six months after the conclusion of power purchase agreements between Eskom and the EDM.
Ramokgopa’s announcement came after the power purchase agreement between the two countries was discussed during a cabinet meeting in July.
He added: “I did say to the country that in our effort to resolve the load-shedding question, we are searching for each and every megawatt available, and of course the Mozambicans have come to the party [and] they are aiding us to address that.”
He said the country would continue to search for more because “we are working on new generation capacity in the country, and we are making significant strides”.
Mandisa Nyathi is a climate reporting fellow, funded by the Open Society Foundation for South Africa