Energy1.10.2024

Four men that ended load-shedding

Four key leaders at Eskom have played significant roles in helping the utility end load-shedding for over half a year.

These are Mteto Nyati, Bheki Nxumalo, Calib Cassim, and Dan Marokane.

With the last day of load-shedding on 25 March 2024, the current ongoing break in the rotational power cuts has lasted for 189 days up to 30 September 2024.

That makes for the third-longest-ever load-shedding reprieve since the power cuts became a more frequent occurrence in 2014.

If Eskom keeps load-shedding suspended beyond mid-October 2024, it will be the second-longest break in the power cuts.

The next longest break in load-shedding lasted for nearly three years, from September 2015 to August 2018.

There is no doubt that lower electricity demand has helped Eskom keep the lights on during 2024.

In addition to reduced economic activity, private rooftop solar adoption has surged, taking the strain off Eskom’s supply during the daytime hours.

This has allowed the utility to make more sparing use of its emergency reserves in peak hours.

That said, independent energy experts do not dispute the utility’s claims of a substantial improvement in generation performance.

This is despite previously being sceptical that Eskom’s struggling coal fleet could deliver better performance, given their average age is 41 years.

Eskom’s unplanned unit breakdowns have decreased significantly while the utility has continued conducting a high amount of planned maintenance compared to previous years.

Eskom has also used far less diesel to power its emergency generation plants like open-cycle gas turbines, saving billions of rand.

These achievements would not have been possible were it not for a sound strategy developed by Eskom’s management and implemented by a board led by Mteto Nyati.

The former MTN South Africa boss, Microsoft managing director, and Altron CEO was appointed Eskom board chairman in October 2022.

Shortly after his appointment, Nyati visited power stations and spoke to managers and staff to learn first-hand about their biggest operational struggles.

Mteto Nyati, Eskom board chairman

Generation recovery plan

The findings from Nyati’s power station visits and collaboration with management helped to inform the development of a thorough generation recovery plan in early 2023.

That included detailed strategies for each station, specifically focusing on the most breakdown-prone ones.

A fundamental change was that Eskom would partner with original equipment manufacturers to improve the quality of maintenance work.

In the past, shoddy repairs often led to units breaking down shortly after they came back online from maintenance.

While it would take roughly a year to see a significant improvement in generating capability, the strategy paid dividends.

Although Nyati and the Eskom board helped develop the winning strategy for the utility’s turnaround, it would not have delivered any improvement were it not for proper implementation.

Below are the three executives who contributed to the implementation of Eskom’s generation recovery plan.

Bheki Nxumalo — Eskom generation head

Bheki Nxumalo, Eskom head of generation

As the group executive for generation, Nxumalo is the main person responsible for the performance of Eskom’s power-generating fleet.

The qualified engineer assumed his current position in mid-April 2023, just a few weeks into the implementation of the generation recovery plan.

He brought over two decades of experience in the energy sector to the role, starting out at Sasol.

His career at Eskom began in 1996 when he was appointed as a senior technician.

He went on to be promoted to production manager, maintenance manager, and power station manager at various plants before heading up Eskom Rotek Industries.

Under Nxumalo’s leadership, Eskom achieved what many deemed impossible — improving the energy availability factor (EAF) of its ageing coal fleet, significantly reducing the risk of load-shedding.

The average EAF had improved to nearly 60% by week 38 of 2024, compared with 55% for the entire 2023.

For the most part, the average weekly EAF has remained well above 60%, so the full year’s figure should show a significant improvement.

Calib Cassim — Eskom chief financial officer and former acting chief executive officer

Calib Cassim, Eskom chief financial officer

Cassim acted as Eskom CEO for roughly a year after the premature departure of André de Ruyter following a bombshell interview with E-tv’s Annika Larsen in February 2023.

The seasoned executive helped hold the fort in what many consider to be one of the highest-pressure jobs in the country, while government and the Eskom board searched for De Ruyter’s replacement for around a year.

During that time, he also continued to serve as the utility’s chief financial officer, a position he has held for more than seven years.

Cassim’s short tenure as acting CEO included the worst period of load-shedding, but his leadership helped steer the country through a better-than-expected 2023 winter period.

The EAF gradually improved in early 2024 as Cassim made way for a new full-time CEO.

Dan Marokane — Eskom chief executive officer

Dan Marokane, Eskom Group CEO

Marokane took over from Cassim in March 2024 after leading sugar giant Tongaat Hulett.

Marokane is a qualified chemical engineer with master’s degrees in petroleum engineering and business administration.

He previously worked as an executive at Eskom from January 2010 to June 2015 but was suspended as part of a plan to capture Eskom to the benefit of the notorious Gupta family.

The long break in load-shedding would come just four weeks after Marokane’s appointment as Eskom’s chief executive.

While this improvement cannot be attributed to Marokane directly, the new CEO has continued the good work started under Cassim.

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