Mantashe’s Eskom fantasy is ill-advised – Kevin Mileham – POLITICS

Mantashe’s Eskom 2.0 fantasy will leave South Africa with an expensive fiscal hangover

1 September 2022

Please find attached an English and an Afrikaans soundbite by Kevin Mileham MP.

Reports that the Minister of Energy, Gwede Mantashe, is forging ahead with plans to set up another power generation company to rival Eskom, through repurposing old Eskom coal plants into gas power stations and building new nuclear plants, is ill-advised and will likely worsen the country’s debt burden.

South Africa does not have access to cheap gas resources to be able to power gas stations at a commercially viable scale. Using the current import prices of gas from Mozambique, retail prices per kilowatt hour of electricity generated from these gas power stations will like be unaffordable for most South Africans.

Worse still, in a move that betrays Mantashe’s lack of appreciation of the need to find short term solutions to address the current loadshedding crisis, Mantashe is now punting the possibility of building a modular nuclear plant at Thyspunt in the Eastern Cape. Nuclear power plants take years to build and South Africa does not have the money or the luxury of waiting that long for new generation capacity.

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