Eskom has role to play in energy transition
Unbundling and apportioning a fair share of its debt per asset is the first step in managing its legacy assets
Some South Africans believe Eskom should fall and the country will stride into the new energy world, but this is not desirable. Being a state-owned enterprise, Eskom belongs to all South Africans. It carries huge debt. Abandoning Eskom would be like leaving an existing (mortgaged) house and moving into a new one without thinking about what to do with the old one. As Eskom and its assets have a critical role to play in SA’s energy future, it should be sustained through the transition. It contains a fount of knowledge, technology and expertise. The energy model of the future is so different that it is questionable whether the large legacy companies can make the huge adjustment necessary to be viable operators in the future — without acting as a barrier to progress. Eskom’s practices relating to the renewables programme and new capacity is a pertinent case study. Consequently, while it must play a key role in the energy sector of the future, Eskom as it is currently structured does not...
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