Energy adviser slams Eskom

Well, ducked me, WTF is happening in SA.....Pitman any ideas??

So Eskom might be running out of coal, and will need to find a new supply of coal sometime next year, and by 2020, there will be a shortfall of around half of Eskom coal, if this article is true.

Well Crisis, what else could happen this week with our investment in RES??......Can we see news of finance this week FP??.....Will FP find another dump of coal crap inside his toilet this week??....Will Waldo find himself a river of gold inside his toilet as well??......If you are new to RES, and are reading this post by me, and are thinking WTF is he talking about.  I'm just an old fart, that has lost his mind and money, as well as all of his hair......I hear you FP, yes I'm getting some more red wine for us

   


South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity.

Blom was surprised by the recent buoyancy shown by Eskom acting CEO Brian Molefe, who earlier this week told Parliament’s Public Enterprises Portfolio Committee that Eskom was not bankrupt and pledged to try to get the 3 000 MW needed to do maintenance without load-shedding by the end of the year.

More Insight Eskom CE forecasts earlier-than-expected end to load-shedding Molefe says 100 MW Eskom wind farm now fully operational Speaking to the Cape Town Press Club on Friday, Blom said Eskom was not sustainable and that auditors should have blown the whistle on the power utility years ago.

Blom, who used to be an Eskom adviser on a coal procurement roadmap to 2030, claimed that Eskom had been in denial about looming maintenance concerns for several years. “We, the public, were never alerted to the fact that Eskom was not fulfilling its maintenance tasks. Maybe this explains why it was able to blow up two boiler sets over the past three years.

Where has the money for this maintenance shortfall of R70-billion gone?” Blom asked. He also accused Eskom of not heeding warnings about a looming coal shortage. He said Eskom had been “in total denial” about the Eskom “coal cliff”, which he had warned about during an investigation he was part of in 2008. Blom said the investigation had revealed that Eskom’s old suppliers of coal in the Witbank area would start running out of coal at an alarming rate as from 2015.

He claimed that, by 2020, the shortfall would amount to half of Eskom’s yearly consumption. The only alternative source of Eskom coal is the Waterberg, where there is expected to be a chronic water shortage.

“My own calculations indicate a shortage of more than five-million cubic metres of water for the power plant cooling and coal washing operations, a number that the proposed Hartebeespoort dam pumped scheme would not be able to fulfill,” said Blom.

He was also worried about the delay in setting up new collieries to supply Eskom.

Blom further flagged the rising cost of coal as a major risk. He said this was largely owing to Eskom overpaying suppliers as a result of black economic-empowerment requirements. He claimed that these companies sell the coal at distorted prices to the power utility.

“Econometric models indicate that even if Eskom is granted 25% annual increases until 2030, it will still be bankrupt, the main driver being the additional costs of coal and coal haulage which are rising at above 25% yearly and create an ‘umbrella’ for other costs to climb.

” Blom cited other concerns, including a dramatic shortfall in generating capacity, as well as a cash shortfall for rising claims by contractors and poor skills on site at Medupi and Kusile.

“Alarm bells should ring as to the disastrous effect closing artisan colleges has had on the quality of South African technical skills,” he said. Earlier this week, Molefe tried to allay fears about costs and security of supply of energy. He said the situation was not as bad as it appeared to be and was confident he could get the power utility back on track.


http://www.engineeringnews.co.za/article/energy-adviser-slams-eskom-2015-04-24/rep_id:3182
Earlier this week, Molefe tried to allay fears about costs and security of supply of energy. He said the situation was not as bad as it appeared to be and was confident he could get the power utility back on track

It is our preference that if you wish to share this article with others you should please use the following link:

http://www.engineeringnews.co.za/article/energy-adviser-slams-eskom-2015-04-24/rep_id:3182Earlier this week, Molefe tried to allay fears about costs and security of supply of energy. He said the situation was not as bad as it appeared to be and was confident he could get the power utility back on track.

It is our preference that if you wish to share this article with others you should please use the following link:

http://www.engineeringnews.co.za/article/energy-adviser-slams-eskom-2015-04-24/rep_id:3182
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Print Send to Friend 0 0 Blom was surprised by the recent buoyancy shown by Eskom acting CEO Brian Molefe, who earlier this week told Parliament’s Public Enterprises Portfolio Committee that Eskom was not bankrupt and pledged to try to get the 3 000 MW needed to do maintenance without load-shedding by the end of the year. More Insight Eskom CE forecasts earlier-than-expected end to load-shedding Molefe says 100 MW Eskom wind farm now fully operational Speaking to the Cape Town Press Club on Friday, Blom said Eskom was not sustainable and that auditors should have blown the whistle on the power utility years ago. Blom, who used to be an Eskom adviser on a coal procurement roadmap to 2030, claimed that Eskom had been in denial about looming maintenance concerns for several years. “We, the public, were never alerted to the fact that Eskom was not fulfilling its maintenance tasks. Maybe this explains why it was able to blow up two boiler sets over the past three years. Where has the money for this maintenance shortfall of R70-billion gone?” Blom asked. He also accused Eskom of not heeding warnings about a looming coal shortage. He said Eskom had been “in total denial” about the Eskom “coal cliff”, which he had warned about during an investigation he was part of in 2008. Blom said the investigation had revealed that Eskom’s old suppliers of coal in the Witbank area would start running out of coal at an alarming rate as from 2015. He claimed that, by 2020, the shortfall would amount to half of Eskom’s yearly consumption. The only alternative source of Eskom coal is the Waterberg, where there is expected to be a chronic water shortage. “My own calculations indicate a shortage of more than five-million cubic metres of water for the power plant cooling and coal washing operations, a number that the proposed Hartebeespoort dam pumped scheme would not be able to fulfill,” said Blom. He was also worried about the delay in setting up new collieries to supply Eskom. Blom further flagged the rising cost of coal as a major risk. He said this was largely owing to Eskom overpaying suppliers as a result of black economic-empowerment requirements. He claimed that these companies sell the coal at distorted prices to the power utility. “Econometric models indicate that even if Eskom is granted 25% annual increases until 2030, it will still be bankrupt, the main driver being the additional costs of coal and coal haulage which are rising at above 25% yearly and create an ‘umbrella’ for other costs to climb.” Blom cited other concerns, including a dramatic shortfall in generating capacity, as well as a cash shortfall for rising claims by contractors and poor skills on site at Medupi and Kusile. “Alarm bells should ring as to the disastrous effect closing artisan colleges has had on the quality of South African technical skills,” he said. Earlier this week, Molefe tried to allay fears about costs and security of supply of energy. He said the situation was not as bad as it appeared to be and was confident he could get the power utility back on track.

It is our preference that if you wish to share this article with others you should please use the following link:

http://www.engineeringnews.co.za/article/energy-adviser-slams-eskom-2015-04-24/rep_id:3182
RSS Feed Article Comments Other News Research Magazine Apr 24, 2015 Energy adviser slams Eskom Back Buy Photos Photo: Duane Daws Instagram © Reuse this By: Kim Cloete South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Print Send to Friend 0 0 Blom was surprised by the recent buoyancy shown by Eskom acting CEO Brian Molefe, who earlier this week told Parliament’s Public Enterprises Portfolio Committee that Eskom was not bankrupt and pledged to try to get the 3 000 MW needed to do maintenance without load-shedding by the end of the year. More Insight Eskom CE forecasts earlier-than-expected end to load-shedding Molefe says 100 MW Eskom wind farm now fully operational Speaking to the Cape Town Press Club on Friday, Blom said Eskom was not sustainable and that auditors should have blown the whistle on the power utility years ago. Blom, who used to be an Eskom adviser on a coal procurement roadmap to 2030, claimed that Eskom had been in denial about looming maintenance concerns for several years. “We, the public, were never alerted to the fact that Eskom was not fulfilling its maintenance tasks. Maybe this explains why it was able to blow up two boiler sets over the past three years. Where has the money for this maintenance shortfall of R70-billion gone?” Blom asked. He also accused Eskom of not heeding warnings about a looming coal shortage. He said Eskom had been “in total denial” about the Eskom “coal cliff”, which he had warned about during an investigation he was part of in 2008. Blom said the investigation had revealed that Eskom’s old suppliers of coal in the Witbank area would start running out of coal at an alarming rate as from 2015. He claimed that, by 2020, the shortfall would amount to half of Eskom’s yearly consumption. The only alternative source of Eskom coal is the Waterberg, where there is expected to be a chronic water shortage. “My own calculations indicate a shortage of more than five-million cubic metres of water for the power plant cooling and coal washing operations, a number that the proposed Hartebeespoort dam pumped scheme would not be able to fulfill,” said Blom. He was also worried about the delay in setting up new collieries to supply Eskom. Blom further flagged the rising cost of coal as a major risk. He said this was largely owing to Eskom overpaying suppliers as a result of black economic-empowerment requirements. He claimed that these companies sell the coal at distorted prices to the power utility. “Econometric models indicate that even if Eskom is granted 25% annual increases until 2030, it will still be bankrupt, the main driver being the additional costs of coal and coal haulage which are rising at above 25% yearly and create an ‘umbrella’ for other costs to climb.” Blom cited other concerns, including a dramatic shortfall in generating capacity, as well as a cash shortfall for rising claims by contractors and poor skills on site at Medupi and Kusile. “Alarm bells should ring as to the disastrous effect closing artisan colleges has had on the quality of South African technical skills,” he said. Earlier this week, Molefe tried to allay fears about costs and security of supply of energy. He said the situation was not as bad as it appeared to be and was confident he could get the power utility back on track.

It is our preference that if you wish to share this article with others you should please use the following link:

http://www.engineeringnews.co.za/article/energy-adviser-slams-eskom-2015-04-24/rep_id:3182