South Africa Plans New Power Company to Ease Eskom’s Burden
South Africa is looking to establish a new power generation company to lessen reliance on the struggling state-owned utility Eskom. Eskom, responsible for over 90% of the country’s electricity, faces financial difficulties and recurring breakdowns at its coal plants, resulting in power cuts that hinder economic growth.
These Eskom-related issues have been a major concern for investors attending the ongoing Mining Indaba industry conference. “A separate entity from Eskom is coming, but the focus isn’t on Eskom versus no Eskom, it’s about guaranteeing a secure energy supply,” said Mineral Resources and Energy Minister Gwede Mantashe at the Cape Town conference.
Specific details regarding the new power company remain unclear. Minister Mantashe expressed a desire for industry collaboration in its formation, but the exact nature of this partnership is undefined. Additionally, the types of power generation technologies to be employed by the new company are yet to be determined.
Director-general of the Department of Mineral Resources, Thabo Mokoena, reiterated the minister’s stance, emphasizing the new company’s primary objective of bolstering South Africa’s energy security. However, he did not provide further explanations.
