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Electricity utility Eskom says the measures announced by President Cyril Ramaphosa will enable it to intensify its maintenance efforts to drive improvements to the energy availability factor (EAF) across its coal fleet, where the performance has been “disappointing”.

In a statement released to express its support for the interventions announced on July 25, Eskom said it was placing significant emphasis on recovering the EAF.

Ramaphosa announced that Eskom would, over the next 12 months, increase the budget allocated for critical maintenance to increase the reliability of its generation capacity.

“We are cutting red tape that has made it difficult for Eskom to buy maintenance spares and

equipment within the required period to effect repairs,” the President added.

It was also announced that the utility was recruiting skilled personnel, including former senior Eskom plant managers and engineers from the private sector, to “help to ensure that world-class operating and maintenance procedures are reinstated”.

In a statement, Eskom said the measures announced by the President would enable it to intensify its maintenance efforts to drive improvements in the EAF.

The utility confirmed that it had already reached out to the National Society of Black Engineers (NSBE) to determine if its members were interested in assisting Eskom to bolster its skills.

During a recent meeting between Eskom and NSBE, the utility highlighted that it had a shortage of technical skills to conduct maintenance and refurbishments on the aging coal fleet.

Eskom also made a commitment to putting concrete plans in place to improve staff morale, and it was agreed that plans to bring back retired artisans and engineers would be carefully managed “with buy in from current employees and unions”.

Ahead of the President’s speech, Public Enterprises Minister Pravin Gordhan denied that he had specifically approached Solidarity for a list of skilled personnel and insisted that he had made a call to all organisations for skills to support Eskom, regardless of race.

Meanwhile, Eskom said the reforms announced by the President, many of which had been raised by CEO André de Ruyter as possible remedies earlier in the year, would go a long way towards easing the power generation constraints the country had been grappling with for some 14 years.

The utility described as “particularly pleasing” that it would be empowered to speedily acquire additional generation capacity from existing independent power producers (IPPs) with excess capacity, as well as to acquire spares and equipment from original equipment manufacturers.

“Eskom’s efforts to acquire battery energy storage systems (BESS) are already at an advanced stage, with further tranches of BESS roll-out to follow imminently.

“Furthermore, as the President announced, Eskom has already released land with grid connections for long-term leases by independent power producers, with more to follow in the near future.”

Meanwhile, Eskom argued that the move to remove limits to private sector electricity generation would help unlock investments, create jobs during the construction and help lower the cost of electricity in the long term.

Eskom confirmed that it had significantly shortened the time required for IPPs to obtain cost estimate letters and budget quotes for grid access and said it was committed to optimising the process even further.

The road transport and freight industries, as well as the Tyre Importers Association of South Africa (Tiasa), are opposing an application brought to the International Trade Administration Commission of South Africa (Itac) by domestic tyre manufacturers seeking increases in respect of some import tariffs.

Tiasa says there is concern that tariff increases will lead to higher tyre prices. It also notes that local manufacturers cannot meet local demand for tyres.

During a webinar hosted by international trade consulting practice XA International Trade Advisors on July 26, Tiasa chairperson Charl de Villiers said the four manufacturers making tyres locally have applied for tariff increases on tyres imported from China across eight tariff codes, asking for percentage increases that range from 8.45% to 69.97% on top of the 25% to 30% import duties paid for normal imports.

"The impact of these increases was modelled, with the taxi industry expected to see a 41% increase in the price of tyres, passenger vehicles expected to see a 38% to 40% increase in prices, and truck and bus tyres expected to increase by 17% to 18%," he said.

Further, 80% of the 3 200 models of tyres in South Africa are not made in local factories, and two of the four local tyre manufacturers import 100% of their truck and bus tyres. This means that local tyre manufacturers are significant importers of tyres themselves, said De Villiers.

South Africa's truck tyre manufacturing capacity is about 600 000 units a year and demand is about 1.2-million to 1.4-million units a year, he added.

National Taxi Alliance spokesperson Theo Malele and Road Freight Association (RFA) CEO Gavin Kelly both highlighted that the industries cannot absorb further increases, with Malele highlighting statistics indicating that households use up to 55% of their disposable income for transport.

Kelly added RFA estimates indicate that the proposed tyre tariff increases will result in a 6% to 6.3% increase in road freight costs.

"We urge government not to allow these increases to be effected and we are strongly opposed to this, which we cannot afford as the taxi industry, nor as a country. Owing to the squeeze on margins, many taxi operators find it difficult to meet monthly obligations and may lose their vehicles. The industry cannot afford such price increases," said Malele.

About 80% of goods in South Africa are moved by road, and a key concern for the road freight industry is the lack of information on what is driving this application, especially as South African manufacturers cannot meet demand, highlighted Kelly.

"This anti-dumping action is not creating clarity for the industry, nor understanding of the issues behind the application," he said.

"Many transporters monitor the depth of tread and condition of tyres on their vehicles to ensure the safety of their drivers and cargoes, especially as many roads in South Africa are not in the condition they should be. The impact of price increases is concerning because tyres are often lost in incidents, such as through damage from a pothole," Kelly highlighted.

The road freight industry cannot absorb 17% to 18% increases in the costs of tyres and South Africa must carefully consider the impact of adding further upstream costs to supply chains, he said.

Further, De Villiers noted that all tyres sold locally must have secured certificates of compliance and that the tyres imported from China by Tiasa's members compete effectively on a cost-per-kilometre basis with tyre imports from other territories.

"Businesses that rely on transport are feeling the pain, including from the fuel price, which has increased from R14.86/ℓ in January to R26.74/ℓ in June. We are deeply concerned about the additional duties the local tyre manufacturers are requesting and their potential impact on businesses and people already struggling," he added.

Meanwhile, XA International Trade Advisors CEO and founder Donald MacKay highlighted that the anti-dumping application was...

The presence of vehicle safety features on entry-level vehicles in South Africa is improving, with the majority of vehicles in this category offering moderate to acceptable safety features.

This is according to the 2022 Automobile Association (AA) Entry-Level Vehicle Safety (ELVS) Report, which assesses the available safety features on entry-level vehicles in the domestic market.

The ELVS Report is produced utilising desktop research, explains the AA.

Thirty-eight vehicles have been included in this year’s report. They are assessed for the safety features stated in the written literature of the vehicles in available printed or online brochures.

The report does not consider the structural integrity of the driver/passenger compartment.

The value threshold for vehicles considered has been raised from previous years, to R270 000.

The 38 vehicles are categorised into three groups based on their safety ratings.

These categories are: Acceptable Safety; Moderate Safety; and Poor Safety.

In the 2022 ELVS Report, four vehicles are in the Poor Safety category, 23 in the Moderate Safety category, and 11 vehicles in the Acceptable Safety category.

The vehicles in the Poor Safety category are two JMC goods movers, the Mahindra Bolero BMT and the Suzuki Super Carry 1.2 Pick-Up.

“The fact that so many vehicles offer moderate or acceptable safety is extremely encouraging and indicates that manufacturers are taking the presence of critical vehicle safety equipment seriously,” says the AA.

“This is a good trend, and we hope to see even fewer vehicles in the poor category in the years ahead.

“The purpose of the research is to provide consumers with a starting point for vehicle purchases – be it new or second-hand,” adds the AA.

“We point out what safety features are stated as being available on these vehicles and urge consumers to consider these a priority as part of their decision-making process.”

The association reiterates that its research does not provide a definitive measure of a vehicle’s safety, as this can only be determined through crash-testing.

Call For Mandatory Safety Features

The 38 vehicles surveyed for the 2022 ELVS Report were evaluated against the number of active safety features they have, namely antilock braking systems (ABSs) and electronic stability control (ESC), as well as passive safety features, namely airbags.

Points are awarded to vehicles for the existence of each active and passive safety feature.

Additional points are awarded to vehicles crash tested under the NCAP system, in this case, the Global NCAP’s #SaferCarsforAfrica programme.

Of the 38 vehicles researched in 2022, 34 are equipped with ABS and 33 with driver and passenger airbags.

Only seven of the vehicles researched have ESC.

The least common safety feature is curtain airbags (no vehicles) and side airbags (only one vehicle).

In 2019, the AA supported the #StopTheCrash partnership to demonstrate the effectiveness of, among other technologies, ESC and ABS.

The technologies which were showcased have the potential to save thousands of lives every year, and the United Nations is encouraging countries around the world to mandate these life-saving technologies.

“The inclusion of these safety features protects motorists – it’s as simple as that,” says the AA.

“The inclusion of ESC, for instance, must be considered more seriously by manufacturers as this is proven technology which can reduce road crashes. We reiterate our call that this technology come as standard for entry-level vehicles available in South Africa.”

President Cyril Ramaphosa’s plan to tackle the power crisis in South Africa, as announced and unpacked on July 25, has been well received by the business, labour, academic and environmental communities, but many call for firm deadlines to be added to the plan.

Industry body Business Unity South Africa (Busa) CEO Cas Coovadia says the head of State duly considered the private sector and energy experts’ proposals for stabilising and securing the country’s energy supply.

All stakeholders agree that as much generation capacity as possible needs to be brought online in a short span of time to close the 6 GW energy gap and Ramaphosa’s plan is a “concrete step” towards achieving that, adds Coovadia.

Particularly, Busa appreciates the removal of the need to licence embedded private sector generation capacity and the use of new pricing structures to incentivise investment in commercial and household rooftop solar power generation.

What is still required, however, is a clear execution plan, set against hard deadlines and accountability for delivery. Coovadia states the country and the business sector will benefit from regular and transparent progress reports in this regard.

Busa says it will collaborate with the President’s National Energy Crisis Committee to drive implementation of this package of interventions, while recognising that it will take time, patience and endurance to end load-shedding.

Business for South Africa steering committee chairperson Martin Kingston, meanwhile, says the power plan offers a blueprint for action and partnership; however, key enabling factors such as rapid investment required in the transmission grid and the need for a standardised wheeling framework must not be forgotten.

He points out that while there are many areas of the economy that require urgent reforms, such as water security, logistics and crime, none is as critical as energy availability, which is integral to unlocking economic growth, investment and jobs, and which will put the country back on a path to success.

Trade union Solidarity CE Dr Dirk Hermann believes the power plan to represent an “anxious leap in the right direction”.

He states that government’s move towards a more decentralised system for power generation is the only workable and sustainable solution to South Africa’s power crisis.

“The encouragement and facilitation of small-scale power generation on a large scale is of crucial importance to stabilise our grid. Through deregulation and the removal of regulatory barriers, we free the private sector and communities up to present creative and resilient solutions to the crisis,” he explains, warning that government should not succumb to the temptation of falling back on its outdated model of not fulfilling promises.

Environmental organisation Greenpeace Africa climate and energy campaigner Thandile Chinyavanhu highlights that the organisation has been calling for feed-in tariffs for a long time – allowing South Africans to meaningfully contribute to the grid and help bring an end to load-shedding.

“After years of campaigning, we welcome the decision to remove the arbitrary threshold for renewable energy generation. South Africa has not even begun to exhaust its renewable energy potential and this is a big step towards that end,” she avers.

Chinyavanhu adds that the President does well to keep people and the planet in mind in stabilising the energy system, as “renewable energy is the answer to both the energy and climate crises”.

The South African Photovoltaic Industry Association (SAPVIA) agrees, adding that there are already several large-scale projects that have benefitted from government’s efforts to expedite the export of energy to the grid.

The new interventions will further expand the options available to developers and sponsors of energy projects to deliver projects on short timeframes and at no cost to Eskom, notes SAPVIA CEO Rethabile Melamu.

North West University Business School economist Professor Raymond Parsons val...

President Cyril Ramaphosa unveiled several far-reaching interventions – including a doubling in the allocation for the next renewables procurement round, the scrapping of the 100 MW licence-exemption threshold for distributed generators and a proposal of a feed-in tariff for self-generating households and businesses – as part of a much-anticipated action plan for ending load-shedding.

While refraining from declaring the “national crisis” a state of disaster as sought by some opposition parties, the President also announced that “special legislation” would be placed before Parliament to address remaining legal and regulatory obstacles to the urgent introduction of new generation capacity.

"We will in the meantime waive or streamline certain regulatory requirements where it is possible to do so within existing legislation.

"This includes reducing the regulatory requirements for solar projects in areas of low and medium environmental sensitivity. It also means Eskom can expand power lines and substations without needing to get environmental authorisation in areas of low and medium sensitivity and within the strategic electricity corridors.

"We are also establishing a single point of entry for all energy project applications, to ensure coordination of approval processes across government," Ramaphosa announced.

TWO-PRONGED PLAN

The overall plan is two-pronged, with the first aimed at arresting Eskom’s operational instability, as reflected in the precipitous decline in the coal fleet’s energy availability factor to below 60%, and the second designed to introduce new generation capacity to the grid as quickly as possible so as to close an estimated supply shortfall of about 6 000 MW.

Without the additional capacity, Eskom says it lacks the “headroom” required to carry out much-needed maintenance across its 81-unit coal fleet that is made up of both aged and neglected coal plants and two new stations, Medupi and Kusile, which are not only years behind schedule and billions over budget but include defects that require remedying.

Much of the innovation in the plan, which Ramaphosa canvassed widely before announcing it on Monday night, rests on the second pillar of speedily injecting additional capacity through the following interventions:

A doubling of the allocation for Bid Window Six (BW6) of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), the bid submission date for which is in August, from 2 600 MW to 5 200 MW;

Lifting altogether the 100 MW licence-exemption cap on distributed generation plant being developed by miners and heavy industry. The reform, which was announced in June last year, had already stimulated 80 confirmed private sector projects with a combined capacity of over 6 000 MW;

Confirmation that the Independent Power Producer Office and the Department of Trade, Industry and Competition would announce a “pragmatic approach” to the local-content requirements that were currently impeding financial close for delayed projects procured under BW 5 of the REIPPPP;

The leasing of more grid-ready land by Eskom to facilitate further private projects in addition to the 1 800 MW private distributed investment expected following the first leasing round;

The issuance of a request for proposals for battery storage by September this year, and a further request for gas power thereafter; and

The Gazetting by Mineral Resources and Energy Gwede Mantashe of a determination for the remaining allocations in the Integrated Resource Plan (IRP) of 2019, which would facilitate the opening of further bid windows on an expedited basis.

The President also announced that surplus capacity available from existing renewables independent power producers (IPPs) would be mopped up and Eskom would also be allowed to make a standard offer to buy electricity, for a period of two to three years, from those enterprises, mines, paper mills and shopping centres that have surplus electricity available to sell into the grid.

Possib...

One of Toyota’s longest running nameplates is transitioning into a global model, and will, in the process, also make its local debut early next year.

The Crown made its initial appearance in 1955 as Toyota’s first mass production passenger vehicle, created with the Japanese auto maker’s own domestic technology.

However, as times have changed, the Crown was no longer able to “fully meet the diversifying needs of its customers”, says Toyota, opening the door to a redesigned line-up, encompassing four new models in four different body styles.

In addition to the Crossover type, a style that combines a sedan and a sports-utility vehicle (SUV), the Crown Sport offers a more athletic driving experience, as its name suggests. The Sedan, in turn, is a new formal design that meets the needs of chauffeurs, while the Estate is an SUV with a “mature atmosphere”, says Toyota.

The new model that will make its South African debut in the first quarter of next year is the Crown Crossover.

The Crossover is equipped with a hybrid system and a newly developed bipolar nickel-hydrogen battery, which Toyota says will achieve “class-leading fuel economy and quietness”.

The vehicle will form part of Toyota South Africa Motors' continued new-energy vehicle product rollout, which is focused on hybrids at this stage.

The new series will be rolled out in about 40 countries and regions.

The Passenger Rail Agency of South Africa (PRASA) will start trial operations on the Cape Town to Langa via Mutual station route, the Cape Town to Langa via Pinelands station route, and the Bellville to Ysterplaat via Lavistown station route, on the Central line corridor in the Western Cape, on Tuesday (July 26).

The trial operations will determine the state of readiness to resume commuter services on the corridor.

This service recovery forms part of Phase 1 of the Central line recovery programme.

The Central line was closed in 2019 owing to theft and vandalism.

Subsequent recovery work on the corridor was also hampered by illegal occupations on the rail network during the Level 5 lockdown amid the Covid-19 pandemic.

The resumption of the service on the lines is a major milestone given the difficulties experienced with the relocation of households on the rail reserve, as well as the constant attacks by criminal syndicates on security personnel, says PRASA.

“While the relocation project, led by the Housing Development Agency (HDA), is at an advanced stage, PRASA revised its strategy to resume the much-awaited services on the Central line, which now involves cordoning off the informal settlements for the safe running of trains ahead of schedule, while HDA finalises the relocation process.”

To resume this service, PRASA had to rebuild the infrastructure from the ground up, notes the agency.

“Vandalised/stolen electrical cables, perway (tracks), and railway clips, including the foundation that supports the rail network, have all been replaced.

“This also includes the rehabilitation of five vandalised substations that power the rail network.

“To safeguard the rail infrastructure, PRASA has increased security on the ground for the safety of our commuters and staff. We have also installed anti-vandalism and antitheft technology to mitigate against future theft and vandalism.”

President Cyril Ramaphosa says the delay in the finalisation of the comprehensive social compact that he promised to deliver within 100 days of his February State of the Nation Address (SONA) is owing to the fact that full agreement on a common objective has not yet been reached.

Writing in his weekly newsletter only days after former President Thabo Mbeki strongly rebuked the President for failing to deliver on his SONA commitment, Ramaphosa said he, too, wanted to see a consensus finalised.

“[But] given the complexity of the issues, and so that we don’t set ourselves up for failure, it is absolutely critical that genuine consensus is achieved among all social partners.”

The President reports that a framework for a social compact has been developed, and that a team led by the Ministers of Employment and Labour; Trade, Industry and Competition; and Finance have been meeting with social partners to map out the priorities to be reflected in the new social compact.

“As the name implies, a new consensus can only be successfully implemented if there is full agreement on a common objective, the plan to achieve it, and a commitment by all partners to the plan’s implementation.

“We have seen what happens when such accords are concluded to much fanfare, only to fall short on implementation,” the President writes.

Part of the compact is likely to relate to tackling the electricity crisis and Ramaphosa is expected to announce an intervention to address intensifying load-shedding soon.

South Africa, he argues in his newsletter, does not need yet another plan to overcome the challenges of poverty, unemployment and inequality.

“That is why the focus of ongoing discussions is on a set of catalytic interventions for maximum impact.”

The compact will seek to build on the Economic Reconstruction and Recovery Plan and the proposed framework will identify “priority actions to achieve higher levels of investment and growth, increase employment, unleash the dynamism of the private sector, protect the rights of workers, expand support for the unemployed and tackle extreme poverty”.

“What is required most of all on the social compact is a clear set of interventions with a credible plan for their implementation,” the President writes.

“While the State has a responsibility to improve the climate for the private sector to invest, implement social support measures to protect society’s most vulnerable, and spearhead poverty eradication programmes, there must be complementary actions by business.

“There must be a willingness from both organised business and labour to discuss the trade-offs needed to implement growth-enhancing measures in such a constrained economic environment.

“There needs to be greater alignment between government and civil society organisations in our communities on poverty alleviation programmes.”

To get more energy generation capacity on line quicker, the Department of Forestry, Fisheries and the Environment (DFFE) will implement exemptions from environmental-impact assessment (EIA) requirements for certain energy projects.

The department has earmarked solar photovoltaic (PV) power generation and certain transmission infrastructure for these exemptions, as it typically poses little risk to the surrounding environment.

Forestry, Fisheries and the Environment Minister Barbara Creecy in a July 21 briefing conceded that the EIA approval process used to take up to 300 days, and, even with the department implementing various efficiencies, that has only reduced down to an average 176 days currently, which is still excessive and poses an impediment to projects reaching closure.

Some of the department’s initiatives have included identifying and gazetting 11 Renewable Energy Development Zones, five electricity transmission corridors and gas corridors, in which the environmental authorisation timeframes have been halved.

Still, the DFFE deemed it necessary and helpful in resolving the country’s energy crisis to include exclusions from the need to obtain an environmental authorisation – in low and medium sensitivity areas, as classified by the department’s Web-based screening tool.

The screening tool identifies areas of very high, high, medium and low environmental sensitivity for a number of environmental themes; the Minister intends to adopt the screening tool as an environmental management instrument.

The notices in this regard will be gazetted for public comment in August.

Creecy believes this intervention will speed up the environmental approval element for solar PV projects to within 60 days and, thereby, simplify the deployment of solar PV facilities.

The exempted projects will, however, still be subject to a registration process to allow for compliance monitoring.

The DFFE explains that, although no public participation process will be applicable to these projects, as no environmental authorisation is required, notification of the registrations will be gazetted to enable access to the registration decisions and to facilitate the possibility to submit appeals should a person wish to do so.

The DFFE will confirm what information will be required for registration soon, but it will include a biodiversity and plant specialist or environmental assessment practitioner (EAP) visiting the site, as well as developers using the department’s screening tool to generate a report on the project area in question.

The EAP will prepare a site sensitivity verification report to ensure compliance with the allowable development limits.

The DFFE has begun work on preparing a generic environmental management programme for solar PV projects in low or medium environmental sensitivity areas.

Creecy confirmed that further work would be undertaken to consider ways of simplifying the EIA process for wind energy projects, without compromising the protection of birds and bats.

With almost half of South Africa’s exports at risk as the country’s key trade partners prioritise imports from low-carbon economies, a new report urges South Africa to roll-out at least 190 GW of renewables by 2050 to sustain its economic competitiveness and lay the basis for employment creation.

Titled ‘It all hinges on Renewables’, the report has been published jointly by the National Business Initiative, Business Unity South Africa and the Boston Consulting Group.

South Africa, the report states, is the second most carbon-intensive economy globally when compared with other economies with a gross domestic product (GDP) of more than $500-billion. It is also more than twice as carbon-intensive as the G20 average.

“This puts almost 50% of exports at risk as key trade partners prioritise imports from low-carbon economies via carbon border tax adjustments and other mechanisms.

“Amid stalled GDP growth, unemployment at about 35% and rising inequality, ‘more of the same’ will not be enough.”

The report, thus, calls for the ramp-up of renewables to be declared a “national priority” so as to unlock the R6-trillion required over the next three decades to decarbonise the economy, R3-trillion of which will be required in the power sector alone.

“Capturing the opportunity presented by the green hydrogen economy requires potentially up to 170 GW to 200 GW of additional dedicated renewables capacity.

“That means South Africa will need to build about 6 GW to 7 GW of renewables every year for the next three decades for the power system alone.

“The annual renewables build rate would further increase if the green hydrogen opportunity is pursued.”