The $11-billion plan to save Eskom using green energy

Jamie McKane

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The $11-billion plan to save Eskom using green energy

A plan to establish the world’s largest green-energy financing initiative is being threshed out in South Africa, which needs to reduce its environmental footprint and find innovative ways to fund debt-stricken state power utility Eskom Holdings SOC Ltd.

The plan being formulated by Meridian Economics, a Cape Town-based think tank, is under consideration by the government.

[Bloomberg]
 
South Africa is the world’s 14th-largest producer of greenhouse gases = :oops:
 
Nice idea in theory, but in practice, I see it having little chance of going to plan.

How is this $11 billion facility going to help Eskom pay back the $31 billion it owes? It sounds like the $11 billion is just to pay for the transition to renewable energy - which is great, but the $31 billion debt then becomes some of what of an elephant in the room.

The desire to provide jobs during the transition to appease the unions is admirable, but it looks like they are studiously avoiding the reality that Eskom employs too many people.
 
Standard Government Department BS.
The engineers, specialists and middle managers will end up drafting a incredible plan based on the recommendations. And those guys are damn good at their jobs.
And then it will stop there, or get bastardized to suit the political appointee in charge's own agenda.

(Speaking from hands-on-experience at multiple SOE's and government departments)
 
So refreshing to hear that they are going to use green energy, you know, since black energy is clearly not working.
 
Their first hurdle will need to be to attract investors. These are funny people currently not willing to give South Africa any money, as seen by our president the past two years, also currently busy moving all their funds out of South Africa. So, unless they get them back into the game, this is nothing more but another government scam busy stealing tax money.
 
Nice idea in theory, but in practice, I see it having little chance of going to plan.

How is this $11 billion facility going to help Eskom pay back the $31 billion it owes? It sounds like the $11 billion is just to pay for the transition to renewable energy - which is great, but the $31 billion debt then becomes some of what of an elephant in the room.

The desire to provide jobs during the transition to appease the unions is admirable, but it looks like they are studiously avoiding the reality that Eskom employs too many people.
It should reduce the cost of electricity substantially, so they'd be quite a bit more profitable, plus a lot of Eskom's fleet is too old, with little or no maintenance and no upgrades to make it meet emissions targets, which would result in huge fines (currently they've managed to get exemptions from emissions requirements for those in the highveld).
 
It envisions the establishment of an $11 billion facility backed by development finance institutions and private funders. The new entity would lend money to Eskom at slightly below commercial rates on condition it accelerates the closure of polluting coal plants to make way for renewable energy.
:laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh::ROFL::ROFL::ROFL::ROFL::ROFL::ROFL::ROFL::ROFL:

Yeah, right!
 
Fun fact, all their powerstations are polluting like crazy because their emmissions equipment is broken, old or never installed properly.

Another fun fact, those old power stations are already mostly "closed" due to costs and broken units.
 
Nobody wondering what the "think tank" is charging for this miracle and well though out ingenious idea?
 
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