Eskom needs R1.2 trillion to shift to renewables by 2030 — And will need private investors

[Hanno Labuschagne]

Eskom needs R1.2 trillion to shift to renewables by 2030 — And will need private investors

South Africa’s Eskom Holdings SOC Ltd. said its energy-transition plan may require as much as R1.2 trillion rand of investment for new-generation and distribution capacity, with the bulk of the money expected to come from private investors.

The state-owned power utility, which is saddled with R396 billion of debt, plans to tap private investors for the R990 billion it needs to fund new generation capacity and shift to cleaner energy sources by 2030, Matthew Mflathelwa, general manager for strategy and planning, said in an interview Wednesday in Johannesburg.

[Bloomberg]

 

[porchrat]

LOL

 

[WAslayer]

Yes.. this is an absolute golden opportunity for any private investor..

How could you possibly lose money investing in Eskom...

 

[R13...]

Easy. Let the private sector replace every MWh of non renewable taken offline.

 

[ShakeSpeer]

Good luck with that

 

[rvZA]

This money will be squandered in hours and nothing will be built. R1.2tn in renewables won't even power Soweto for a full day. They got to be crazy to think this money must come from the private sector.

 

[TEXTILE GUY]

The state-owned power utility, which is saddled with R396 billion of debt, plans to tap private investors for the R990 billion it needs to fund new generation capacity and shift to cleaner energy sources by 2030, Matthew Mflathelwa, general manager for strategy and planning, said in an interview Wednesday in Johannesburg.

[Bloomberg]

Well, good luck to those investors

What sort of return would they expect? EBITDA is great an all, but in this case its hiding the debt, the expenses of old or poorly maintained kit, electricity leakage and the odd underhanded deal.

Would they expect an ROI - over what period? Who would maintain the generation kit? What about talks of nationalisation?

Would the tender be open or be another Rosatom or Karpowership type affair?
Which cadre/s would be the beneficiaries of the ass licking or back handing?
What sort of red tape would one have to negotiate in order to fork out the investment?

Even if the investment were to go ahead (which it will, someone will throw money into this - prolly China) - the return in ZAR would have to be pretty good to compete with off shore investment opportunity, unless the private equity was at a very low to zero rate of interest.

 

[rvZA]

Well, good luck to those investors

What sort of return would they expect? EBITDA is great an all, but in this case its hiding the debt, the expenses of old or poorly maintained kit, electricity leakage and the odd underhanded deal.

Would they expect an ROI - over what period? Who would maintain the generation kit? What about talks of nationalisation?

Would the tender be open or be another Rosatom or Karpowership type affair?
Which cadre/s would be the beneficiaries of the ass licking or back handing?
What sort of red tape would one have to negotiate in order to fork out the investment?

Even if the investment were to go ahead (which it will, someone will throw money into this - prolly China) - the return in ZAR would have to be pretty good to compete with off shore investment opportunity, unless the private equity was at a very low to zero rate of interest.

Maybe they are considering getting the funds from CR and his cousin, Motsepe? The two of them will likely not care about anything unless BEE is not followed. That will suite me fine. Between the two of them, they can easily finance this amount to Eskom.

 

[Benedict A55h0le]

Piece of cake, there are plenty of private investors, aka solar system houses with grid connections, obediently paying whatever "investments" they slap onto the municipal rates bill (non-indigent houses only).

 

[Quicks]

Could have been halfway there is it was not for the Zuma and friends!

 

[Dan C]

1.2 trillion spent in 7 years. That's 171+ billion spent a year.
How do you even spend that unless you're counting on hyper inflation to set in in the next year or the thieves to get to it before you do?.
Maybe Eskom know something we don't.

Take R1 for say 20million people per day over 7.5 years and do the math. Easily get to 1.2 Trillion

 

[mojoman]

millions, billions, trillions, quadrillions...

 

[wingnut771]

Take R1 for say 20million people per day over 7.5 years and do the math. Easily get to 1.2 Trillion

Where are those 20 million people?

 

[epah]

Where are those 20 million people?

In soweto enjoying grant payouts

 

[epah]

They can just reverse the EFT they sent to the guptas. R1trillion problem sorted.

 

[Dan C]

Where are those 20 million people?

It was just a number. Let's say 5million and an increase of R4 a day ?

 

[Dan C]

In soweto enjoying grant payouts

WTF ? Have you never heard of the Eastern Cape ? Back to school and learn geography

 

[wingnut771]

It was just a number. Let's say 5million and an increase of R4 a day ?

Unacceptable. This could be totally funded by the private sector without a cent from the taxpayer.

 

[epah]

WTF ? Have you never heard of the Eastern Cape ? Back to school and learn geography

That place really is the pits isnt it.

 

[epah]

Unacceptable. This could be totally funded by the private sector without a cent from the taxpayer.

But the other SOE's are already milking the private sector.