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ESKOM
As Brian Dames departs
the lights go out
Just prior to announcing his resignation as CEO of Eskom near the end of 2013, Brian
Dames spoke with ESI Africa and provided insights on the global and South Africa’s
electricity supply sector, as well as his view of Eskom’s role in the future.
B rian Dames’s three year tenure as
CEO of Eskom saw him attempt
to stabilise the group and guide it
through one of the most difficult periods
in its history. Unfortunately during the
final month of his tenure, March 2014,
South Africa once again experienced
rolling blackouts across the country. It
was due to continuous rain affecting
coal being fed into power stations. The
Brian Dames
ESI AFRICA ISSUE 1 2014
last time this occurred was in 2008. It
was an unfortunate end to Dames’s
tenure, but such is the no-win situation
and pressures the head of Eskom faces
right now. It did highlight perhaps why he
chose to call it enough after a relatively
short period as CEO.
This is also a time when the
electricity supply industry in South Africa
and globally faces seismic changes.
The emergence of renewable
energy forms such as wind and solar
on a large scale around the world has
accounted for some of these seismic
changes. A situation has emerged in the
European Union and other developed
world markets where base load utilities
are finding their business model does
not work as before, particularly with
renewables eating into the business and
profitability of gas powered generators.
Dames says that there will be winners
and losers, as the global electricity sector
undergoes these changes.
“The US with its shale gas revolution,
which allows it to drive renewables
aggressively, is emerging as a big winner.
The EU is emerging as a loser due to the
way it has dealt with renewables that has
created uncompetitive subsidised energy
with the obligation to uptake this energy.
It is not yet clear what will happen in
Japan, while China is doing coal, nuclear
and renewables.”
Dames believes that such
developments will change the sector
globally. “The US will start to export coal
and it will impact steam coal prices.
The USA’s liquefied natural gas (LNG)
facilities will be converted into export
terminals and we will have global
competitive gas prices.” He warns that
South Africa needs to become more
active as far as gas is concerned and
have a clear gas strategy, one that starts
with LNG in the medium term and looks
at shale gas in the long term. “There is
a lot of talk about the offshore gas in
Mozambique and Tanzania, but we don’t
know how much of that will become
onshore gas supply in the region – as
much of it may be liquefied and shipped
out from offshore platforms.”
The incorporation of information
technology into all facets of society is
another major driver of change in the
electricity utility sector, and solutions
based on this technology will usually be
driven by a focus on cost reduction. Just
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