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Winter Snows Cause Eskom to Overshoot Its Diesel Budget

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Winter Snows Cause Eskom to Overshoot Its Diesel Budget

Winter Snows Cause Eskom to Overshoot Its Diesel Budget. There are likely to be recriminations from the National Energy Regulator of South Africa (NERSA) as Eskom confirms that its Open Cycle Gas Turbines (OCGT) budget will be overshot on diesel for its turbines and Independent Power Producers (IPPs).

Eskom has been forced to rely heavily on its OCGTs to keep the lights on during this harsh winter, despite high levels of load shedding due to heavy snowfall and frequent breakdowns at coal-fired plants.

Winter Snows Cause Eskom to Overshoot Its Diesel Budget

“No, the usage of OCGTs is exceeding and will exceed the NERSA proscribed use of OCGTS,” Eskom said when asked whether it was still within the NERSA proscribed limits.

Eskom Load Shedding Schedule

Eskom has been forced to utilise more of its OCGTs due to the cold fronts and subsequent higher demand.

Over the winter period, the OCGT load factor was increased in order to accommodate the power system’s needs. During the winter peak period, Eskom has used more OCGTs than in previous years, resulting in a significantly higher load factor.

Diesel is the primary fuel of OCGT power stations. Due to the limited availability of this fuel, and the expense associated with it, the utilisation of this fuel is closely monitored.

Considering the current production and demand challenges, Eskom projects a total spend of R28 billion in the coming year, including the IPPs.

Prodigal child of the fiscus is being bailed out for R184bn on the condition that it takes care of its own shortfalls and operations moving forward.

Specifically, Eskom will receive R78bn in the 2023/2024 fiscal year, R66bn in 2024/2025, and R40bn in 2025/2026, according to the Eskom Debt Relief Bill.

According to Eskom’s budget, it is assuming R28bn for OCGTs at Eskom and IPP. When asked how the excess in OCGT use would be funded, the company said, “you will have to use cash from operations.”

As Eskom balances system supply and demand, OCGTs are increasingly being used. NERSA’s own coffers or other sources, such as the National Treasury, are used to fund the additional funding required over what NERSA approves.

By way of the claw-back mechanism, Eskom justify the need for some of the costs to be passed along to end-users at the Regulatory Clearing Account (RCA) stage.

In accordance with the MYPD methodology, NERSA tests the costs for efficiency and prudence before they are passed on to consumers.

Since April, Eskom has averaged 22 percent OCGT usage, although some weeks in May were higher than 45 percent.

According to the project estimates, R28 billion will be spent on IPPs over the course of the year. In its budget, Eskom assumed R28 billion in OCGTs between Eskom and IPP. Cash from operations will be used to fund any additional requirements above the approved budget,” Eskom said.

Eskom’s Multi-Year Price Determination (MYPD) applications are processed according to the MYPD methodology, which determines the volume threshold.

According to Eskom’s Production Plan, a number of assumptions are used to determine the value.

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Eskom Loadshedding will continue until 5:00 on Tuesday, as previously announced

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Eskom Loadshedding will continue until 5:00 on Tuesday, as previously announced

Until 05:00 on Tuesday, stage 4 loadshedding will continue. Until further notice, Stage 2 and 4 loadshedding will take place.

Eskom Loadshedding will continue until 5:00 on Tuesday, as previously announced

Monday, 10 July 2023: Stage 4 loadshedding is being implemented until 5:00 a.m. on Tuesday due to increased demand. On Wednesday, Stage 4 loadshedding will be implemented from 14:00 until 05:00, followed by Stage 2 loadshedding from 05:00 to 14:00.

Eskom Loadshedding Today

There will be a daily implementation of this pattern until further notice. A new update will be published if any significant changes are made.

As of now, 14 252MW of generating capacity has been damaged by breakdowns, while 4 118MW of generating capacity has been out of service for planned maintenance.

As of today, Duvha, Hendrina, Kendal, Kriel, Matimba and Medupi power stations have each reactivated a generating unit.

The Arnot and Tutuka power stations each had a generation unit out of service due to a breakdown during the same period.

Tutuka Power Station’s current capacity constraints are due to the delay in resuming two generating units. In order to restore service to the generating units, Eskom teams are working around the clock.

Members of the public are being encouraged to use electricity sparingly and efficiently, and we want to thank the people who do heed the call. During the period between 17:00 and 21:00, please turn off your geysers and pool pumps as this reduces demand, alleviates pressure on the power system, and contributes to fewer stages of load-shedding.

For Further Notice Visit Official Site 

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