Electricity and Control October 2023

ENERGY MANAGEMENT + THE INDUSTRIAL ENVIRONMENT

Power plant OEMs can help address SA’s electricity crisis As the South African government considers ways to improve the performance of Eskom’s coal-fired power stations, collaborating with original equipment manufacturers involved in the construction of the power plants may offer a solution to optimising power generation and, over time, putting an end to loadshedding.Thava Govender, CEO of Babcock’s engineering business says long-term partnerships with power plant OEMs could help resolve the electricity crisis.

Thava Govender, Babcock Engineering.

T he lack of reliable electricity supply is one of the biggest economic constraints in South Africa. For context, record levels of loadshedding were experienced in 2022, with 207 days of rolling power outages recorded during the year, compared with 75 days in 2021. This has had a devastating impact on businesses and the economy at large. As part of government’s efforts to overcome the elec tricity crisis and end loadshedding, the National Treasury proposed a total debt-relief arrangement for Eskom of R254 billion – as was announced in the 2023 Budget Speech. However, the arrangement comes with strict con ditions to safeguard public funds. One of the conditions re quires that Eskom would implement the recommendations of an independent assessment of its operations, which was commissioned by the National Treasury. In February 2023, the Treasury appointed the German VGBE Energy Consortium to assess and investigate the operations of Eskom’s coal fleet. The outcome of the assessment, which was concluded in July this year, will consider a concession model which could see OEMs playing a central role in turning around and improving the energy availability factor (EAF) and performance of Eskom’s coal-fired power plants.

cause of the current electricity crisis in the country is the lack of sustainable maintenance stemming from a long running history of inadequate maintenance, not insufficient energy capacity, as is mostly reported. South Africa’s fleet of coal-fired power stations has a 51% EAF, whereas many plants globally of the same age are operating at a much higher EAF of over 85%. Currently, says Govender, 80% of unavailable power is due to inadequate attention, with only 20% of the power stations on planned maintenance. Over the years, a lack of proactive engagement with OEMs has hampered the determination, definition and op timisation of a detailed maintenance scope. The devaluing of OEM support has therefore impacted their ability to sup port Eskom effectively. One of the reasons for disregarding OEM engineering services is the perception that OEMs are expensive. Govender emphasises however, that they offer a premium service which, of course, calls for a significant initial capital investment. But this is outweighed by the substantial return on investment through a much higher EAF over the lifecycle of the power plants. The comprehensive lifecycle support capabilities that OEMs provide are made possible by the strong skills base they maintain, and have invested in over the years, which constitutes a substantial overhead cost that OEMs carry. In addressing the current power crisis, Govender be lieves power plant OEMs have an important role to play.

Why OEMs? According to Govender, it is important to note that the root

Babcock has been involved in the construction and maintenance of some of Eskom’s flagship coal-fired power stations in the country, including the top-performing Lethabo Power Station (above, left) and others.

10 Electricity + Control OCTOBER 2023