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Policy & Regulation

Eskom restructure could stall SA’s LNG power plans

With debts mounting, rolling blackouts imminent and the first round of redundancies under way, the unbundling of South Africa’s power utility looks increasingly likely With debts mounting, rolling blackouts imminent and the first round of redundancies under way, the unbundling of South Africa’s power utility looks increasingly likely.
By Felix Janvrin and Leigh Elston 30 November 2018 Middle East & Africa / Policy & Regulation 0 33503
A decommissioned coal power plant in Bloemfontein, South Africa. (PA)

The restructuring of South African power utility Eskom looks inevitable despite the major political controversy the process will entail, and the ensuing spat could jeopardise the country’s mooted relaunch of its gas-to-power plans next year.

South Africa plans to bring online an extra 8.10 GW of gas-fired power by 2030, with the first 2.25 GW to be ready by 2026, according to the latest draft of the integrated resource plan (IRP). 

This is an aggressive timeline, and the independent power producer (IPP) department will...