Eskom’s costs are too high and solar would help bring down the costs of electricity
31 October 2019 - 16:11
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Pylons carry electricity from a sub-station of state power utility Eskom outside Cape Town in this picture taken March 20, 2016. Picture: REUTERS / MIKE HUTCHINGS
While our attention was focused on the plan to save Eskom from itself, the news broke that the latest power auction produced a price of 2.51 US cents a kW/h for electricity from solar photovoltaic panels. That is 37 of our cents at Wednesday’s exchange rates.
The successful bidder was theinternational power solutions provider ACWA Power, for two 125MW solar PV projects for Ethiopia.
To put this in perspective, Eskom’s average selling price is 90.01c per kW/h, but the power from its new and struggling power stations is much more expensive.
The trade unions complain that renewable energy is too expensive — and one of the reasons why Eskom is in trouble. In fact, what we need is more Ethiopia-type solar projects to subsidise Eskom electricity and bring down the average price of power.
It also helps us understand why municipalities such as Cape Town want to supplement their Eskom power purchases with solar electricity bought directly from independent power producers.
Geoff Jacobs President, Cape Chamber of Commerce and Industry
JOIN THE DISCUSSION: Send us an e-mail with your comments. Letters of more than 300 words will be edited for length. Send your letter by e-mail to busday@bdfm.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Power perspective
Eskom’s costs are too high and solar would help bring down the costs of electricity
While our attention was focused on the plan to save Eskom from itself, the news broke that the latest power auction produced a price of 2.51 US cents a kW/h for electricity from solar photovoltaic panels. That is 37 of our cents at Wednesday’s exchange rates.
The successful bidder was the international power solutions provider ACWA Power, for two 125MW solar PV projects for Ethiopia.
To put this in perspective, Eskom’s average selling price is 90.01c per kW/h, but the power from its new and struggling power stations is much more expensive.
The trade unions complain that renewable energy is too expensive — and one of the reasons why Eskom is in trouble. In fact, what we need is more Ethiopia-type solar projects to subsidise Eskom electricity and bring down the average price of power.
It also helps us understand why municipalities such as Cape Town want to supplement their Eskom power purchases with solar electricity bought directly from independent power producers.
Geoff Jacobs
President, Cape Chamber of Commerce and Industry
JOIN THE DISCUSSION: Send us an e-mail with your comments. Letters of more than 300 words will be edited for length. Send your letter by e-mail to busday@bdfm.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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