Electricity Minister Kgosientsho Ramokgopa on why he’s bullish about Eskom’s recovery

South Africa's Minister in the Presidency responsible for Electricity, Kgosientsho Ramokgopa, is confident about the country's energy future, stating that significant progress has been made in resolving Eskom's challenges. Ramokgopa, who was appointed in late March 2023, has been in office for over a year and has seen improvements in the Energy Availability Factor - a measure of Eskom's performance. He notes that the country has seen an increase from 53% to about 60% in this factor over the past few weeks, indicating a positive trend. While acknowledging that challenges remain, Ramokgopa remains optimistic about resolving the issue of load shedding in the country. In a recent interview with CNBC Africa, the minister highlighted key strategies and initiatives that are contributing to Eskom's recovery. One of the major developments is the fiscal support of 254 billion rands received from the National Treasury. This support has enabled Eskom to undertake planned maintenance to improve the performance of its units. By taking a proactive approach and investing in infrastructure, Eskom has been able to increase its generation capacity and reduce the need for load shedding. Ramokgopa emphasized that the recovery is not solely dependent on burning diesel in open cycle gas turbines but is also anchored on the overall performance of Eskom's fleet. He pointed out that the combination of Eskom peaking and Independent Power Producers (IPPs), as well as the growth in rooftop solar installations, has played a significant role in stabilizing the grid. The minister predicts that rooftop solar installations will continue to increase, further reducing demand on the grid. Ramokgopa addressed criticism that Eskom's recovery is solely due to renewables, stating that it is part of a deliberate policy to diversify the energy mix in the country. He emphasized the importance of looking at the energy landscape holistically and not pitting one energy source against another. In response to questions about the reliability of Eskom's units, Ramokgopa credited the turnaround to a collective effort that involved addressing morale and engaging with stakeholders at all levels of the organization. He highlighted the role of strong leadership, both at the board level and within Eskom's management, in driving the recovery process. Looking ahead, Ramokgopa expressed confidence that Eskom is on track to significantly reduce load shedding in the coming months. With new generation capacity coming online and reforms accelerating private sector investment, the minister believes that load shedding will soon be a thing of the past. While he could not provide an exact timeline for the end of load shedding, Ramokgopa assured that Eskom is committed to minimizing disruptions and ensuring that the grid remains stable, particularly during the winter months. Overall, the minister's outlook is positive, with hopes high for a brighter energy future for South Africa.