Latest news with #MikeHutchings
IOL News
17-07-2025
- Business
- IOL News
Eskom admits to challenges in meeting 2030 emissions targets
Cooling towers at an Eskom coal-based power station in Duhva. Eskom's head of generation Bheki Nxumalo on Wednesday revealed that the utility's existing power stations may struggle to meet the crucial emissions standards due to insufficient technology designed to curb nitrogen oxides (NOx) and sulphur oxides (SOx). Image: Mike Hutchings/Reuters South Africa's power utility, Eskom, has openly acknowledged significant hurdles in achieving the ambitious decommissioning targets set for the Just Energy Transition (JET) by 2030. During a presentation to Parliament on Wednesday, Eskom's head of generation Bheki Nxumalo revealed that the utility's existing power stations may struggle to meet the crucial emissions standards due to insufficient technology designed to curb nitrogen oxides (NOx) and sulphur oxides (SOx). "The emissions standards post-2030 call for reduction much more aggressively. That's where the risks are because stations have different technologies. We are now on a drive for emissions abatement technologies post-2030 but its not all of them that will be ready, including Medupi," Nxumalo said in response to questions from MK Party MP, Brian Molefe. "Kusile will meet most of the requirements but it is going to be an issue to comply with that. Most will but the "NOx and SOx" will require more in refurbishment." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Nxumalo said Eskom was doing economic studies on its overall Flue Gas Desulphurization (FGD) strategy from exemptions granted by the Department of Fisheries and Forestries and Environment (DFFE), not only for Kusile and Medupi's compliance, with stricter emission standards. "We are preparing to go to market but also considering the number of units. We are not going to do all of them by 2030, implementation will go post-2030," Nxumalo said. "We are not only looking at Medupi for reduction of the carbon footprint and also the NOx and SOx across the fleet. The research team is busy at work looking at other means we can employ in units running post-2030." Eskom Group Executive for Renewables, Rivoningo Mnisi, said the power utility had made a breakthrough in other global entities taking over the slack left by the US withdrawing its more than $1.5 billion commitments to South Africa's JET programme. "Dynamics and changes from the US have changed how we traditionally view funding, but it comes with opportunities. What we noticed is that the clean energy initiatives need to make business sense," Mnisi said. "We have had engagements with the World Bank that sourced funding from various funders. They are quite aware of our 5-year projects and are quite keen and confident to support the funding requirement. "We have also engaged with others [such as] the French Union. There is an appetite to partner. There is also interest from the Chinese funders interested in this. It's key how we go to market on this. We are working on the Public-Private Partnership (PPP) model, which should be structured to allow us offtake and show how projects will make money and what our contribution from the balance sheet will be. "There is no shortage of funding to support the clean energy initiatives. What's more important is the governance structures to allow the PPP participation and the funding model to take place." As part of its strategy, Eskom is considering blended financing to avoid restrictions from single funders that could conflict with its operational needs. "We are in the process of shortlisting the supplier for the 72MW solar PV, while on the 150MW of gas the contract award is imminent and should be done potentially in the next two months," Mnisi said. "We are also doing some assessment of the long duration energy storage as part of the options we can implement at Komati, as well Grootvlei solar PV and gas on plan. They should be delivered by 2029, a shift from what we did at Komati Development. Work for Arnot, Camden and Hendrina is also started and the intention is to ensure that all projects are implemented and operational before 2030." BUSINESS REPORT
IOL News
01-07-2025
- Business
- IOL News
African Development Bank approves R8. 4bn million for SA's green growth programme
Cooling towers at an Eskom coal-based power station in Duhva. The AfDB funding, designed to bolster the country's transition to a low-carbon economy, is a vital component of South Africa's ongoing efforts to enhance its energy landscape amidst pressing challenges. Image: Mike Hutchings/Reuters The African Development Bank (AfDB) Group has approved a $474.6 million (around R8.4 billion) loan earmarked for South Africa's Infrastructure Governance and Green Growth Programme (IGGGP). This funding, designed to bolster the country's transition to a low-carbon economy, is a vital component of South Africa's ongoing efforts to enhance its energy landscape amidst pressing challenges. The IGGGP represents the second phase of the bank's strategic backing for a Just Energy Transition in South Africa, following the success of the earlier $300 million Energy Governance and Climate Resilience Programme, approved in 2023. This prior initiative succeeded in reinforcing financial stability whilst expanding renewable energy capacity throughout the nation. Structured around three crucial pillars—transforming energy security through power sector restructuring, promoting a low-carbon and just transition, and enhancing transport efficiency—the IGGGP is poised to catalyse South Africa's green transformation and drive inclusive, resilient growth. Finance Minister Enoch Godongwana heralded the bank's assistance, emphasising the critical nature of this partnership. 'Our country faces the significant challenge of energy shortages, leading to loadshedding, as well as significant transport bottlenecks, which have been detrimental to growing our economy and achieving our developmental aspirations,' Godongwana said. 'With your partnership, our government has committed itself to stay the course and implement these critical reforms in the energy and transport sectors, while endeavoring to achieve our international commitments on climate change and our JET objectives.' The IGGGP is not only about transforming the energy sector; it also focuses on fostering green industrialisation, creating jobs, and developing skills, specifically by supporting initiatives in electric vehicle manufacturing and green hydrogen production. According to recent International Monetary Fund estimates, South Africa's Just Energy Transition could enhance the country's GDP growth by between 0.2 and 0.4 percentage points annually from 2025 to 2030. 'This approval represents more than financing — it's a blueprint for Africa's energy future,' said Kennedy Mbekeani, AfDB's director general for Southern Africa. 'South Africa's success in building a just, green, and inclusive energy system demonstrates that sustainable development and economic growth can go hand in hand.' The financing package includes targeted grant components aimed at promoting energy efficiency initiatives and advancing rail sector reforms. Key priorities will focus on accelerating vertical separation and establishing an investment framework designed to revitalise South Africa's freight and logistics systems. This, in turn, is expected to enhance the transport sector's competitiveness and foster regional integration, which is critical for economic growth across the Southern African Development Community. As one of Africa's more advanced economies and a pivotal regional power, South Africa's triumph in its energy transition could inspire similar shifts continent-wide. Its experience in integrating renewable energy, modernising its grid, and implementing effective transition policies will prove invaluable for other African nations exploring sustainable development avenues. Moreover, the initiative includes comprehensive environmental and social safeguards, with a pronounced emphasis on gender and youth empowerment. Women are projected to constitute 70% of the beneficiaries of the expanded Social Employment Fund, while specialised youth skills programmes will prepare the younger generation for forthcoming opportunities in the burgeoning green economy. The success of the IGGGP aligns with multiple United Nations Sustainable Development Goals, including affordable and clean energy (SDG 7), decent work and economic growth (SDG 8), industry, innovation, and infrastructure (SDG 9), and climate action (SDG 13). This landmark financing from the AfDB is part of a robust international financing package amounting to $2.78bn, which includes $1.5bn from the World Bank, €500 million from Germany's KfW, up to $200m from Japan's JICA, and an anticipated $150m from the OPEC Fund. Such coordinated funding exemplifies the global importance of South Africa's energy transition, particularly in light of its G20 presidency. The programme is in line with the nation's updated Nationally Determined Contributions under the Paris Agreement, which aim for greenhouse gas emissions reduction to between 398–510 million tons of CO₂ equivalent by 2025 and 350–420 million tons by 2030. BUSINESS REPORT
The Citizen
23-06-2025
- Business
- The Citizen
Court declares Absa's accounting in ‘disarray', dismisses attempt to attach property
Says no to application for summary judgment – and the matter 'could have been solved by mediation'. The bank was found to be 'all over the place' and acknowledged making errors in its bank statements, yet still chose 'the most severe remedy'. Picture: Mike Hutchings/Reuters Absa's bookkeeping was in 'disarray' and littered with discrepancies, said the Johannesburg High Court last week as it dismissed the bank's attempt to attach a property in settlement of a R6.7 million loan from three respondents. Dismissing the application for summary judgment, Judge NS Kruger said Absa's 'one hand is unaware of what the other is doing,' adding that the matter could have been solved by mediation. The matter must now go to trial. Absa's accounting was all over the place, with multiple conflicting statements of accounts. Gola Trading and Projects signed a mortgage-backed business loan agreement in 2021 for a loan of R5.6 million, secured by a property. This was in addition to a further amount of R1.12 million owed to the bank. Two other respondents provided limited guarantees for the loan amount. In the event of a breach of the agreement, Absa had the right to call up the loan and attach the property. The bank issued summons in July 2023 claiming an arrears of R434 324, representing five missed instalments. Absa claimed it had notified Gola of its default, cancelled the loan facility and a disputed '2019 agreement,' and demanded immediate repayment of all outstanding amounts. ALSO READ: Gauteng man takes Absa to court over alleged unlawful car repossession Actual arrears amount? Absa's particulars of claim stated that as at 23 May 2023, Gola owed R5 276 441.91, supported by a certificate of balance from the bank's recovery department. Gola denied the existence of a '2019 agreement' and disputed the alleged arrears, citing a loan statement from 6 June 2023 showing arrears of R184 909, not R434 324. Gola made payments of R90 000 in June and August 2023, and on 7 September 2023 paid another R194 015. A statement received on 6 September 2023 showed arrears of R165 591.97. A subsequent statement on 19 September 2023 reflected a credit balance of R119 339.06, indicating the arrears had been settled. ALSO READ: Prudential authority fines Absa R10 million for FICA non-compliance Absa's attorneys requested a monthly instalment of R85 000 for October 2023, which was duly paid. A statement dated 10 October 2023 showed no arrears. However, on 2 November 2023, Absa's attorneys claimed the account was in arrears by R312 714. The respondents denied this, arguing that Absa's acceptance of payments after the supposed cancellation of the agreement and the credit balance in the account suggested the contract was either not cancelled or had been reinstated. Absa approached the court in November 2023 for summary judgment, claiming R5.2 million with interest from all three respondents, and a request that the property be attached. ALSO READ: Is someone sabotaging Absa? Senior managers face disciplinary action for leaking information It furnished a supporting affidavit that acknowledged errors in the bank statements as a failure to reflect the correct arrears. A corrected statement dated 30 October 2023 showed a closing balance of R5 million as at 9 October 2023. A 'recalculation document' dated 1 November 2023 claimed a recalculated balance of R5 million with an instalment due of R2.18 million. The claimed arrears drifted from nil to hundreds of thousands of rands in a matter of months, with Absa admitting at one stage that some amounts paid were not reflected in the account statements. 'In their affidavit resisting summary judgment, the defendants assert that the application for summary judgment and the supporting affidavit does not properly disclose the events that transpired between the parties and fails to demonstrate it is certain whether anything is due and how much is due in relation to the amount claimed and the calculation thereof,' says the judgment. ALSO READ: Reserve Bank unlawfully interfered in Absa chair appointment, says court Inconsistent bank statements Gola and the other respondents pointed to Absa's inconsistent bank statements and that correspondence failed to establish the debt or its calculation with any certainty. The fact that Absa's attorneys continued to request instalment payments suggested the contract remained active and had not been cancelled. No notice of breach had been received prior to the alleged cancellation, nor did the contract contain a breach clause. The respondents also proposed mediation to resolve the matter, but Absa refused. There were multiple options available to the bank in the event of a breach, yet the bank chose the most severe remedy in calling up the loan and then going to court. The court found that the matter warranted a full trial due to the discrepancies in Absa's financial records and the lack of clarity in the contract cancellation process, and the potential reinstatement of the contract. ALSO READ: Former customer charges Absa with perjury and defamation Don't assume your bank's figures are correct 'The case highlights the importance of challenging the bank's calculations,' says consumer legal advisor Leonard Benjamin. 'Proceedings involving the enforcement of home loans give rise to both legal and financial issues. They are equally important, but most defendants blindingly accept the bank's calculations. 'However, the banks make mistakes,' he adds. 'For instance, they use the wrong interest rate, or they debit charges to the account that they are not entitled to, such as untaxed legal fees. 'Importantly, the arrears amount they are claiming is very seldom correct. 'Unfortunately, few defendants possess the documents they need to effectively dispute the financial aspects of the claim, but they can use the court rules to obtain them before they file their plea.' This article was republished from Moneyweb. Read the original here.
IOL News
21-06-2025
- Business
- IOL News
Will SA bear the cost of Eskom's R257bn air quality compliance?
Cooling towers at an Eskom coal-based power station in Duhva. Image: Mike Hutchings/Reuters SOUTH Africa's electricity crisis is about to get worse, not just because of load shedding, but because of the staggering cost of cleaning up Eskom's toxic air pollution. In a tense engagement with the National Council of Provinces (NCOP) Select Committee on Agriculture, Land Reform and Mineral Resources, Eskom executives dropped a bombshell: full compliance with stricter air quality laws would cost R257 billion in capital expenditure and R6.3bn per year in operational costs — potentially hiking electricity tariffs by 10%. Even more alarming? Without compliance, 22 gigawatts of Eskom's coal fleet — nearly half its capacity — could be forcibly shut down after 2030 due to sulphur dioxide violations. The revelations came as Eskom's chief executive, Dan Marokane, and Deputy Minister of Electricity and Energy, Samantha Graham-Mare, faced tough questions from MPs over the utility's financial constraints, its slow transition to cleaner energy, and the devastating health impacts of coal pollution on communities. Eskom has already spent R3bn on emission reduction projects, with another R15.6bn allocated over the next five years. But this is a drop in the ocean compared to what is needed. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Marokane admitted that while Eskom currently met SO² and nitrogen oxide limits, post-2030 regulations present an existential threat. The utility's proposed 'compromise' solution — focusing on SO² reductions at Kusile and Medupi, along with particulate matter upgrades at six other stations — would still require R77bn in capital and R2.1bn per year in operational costs. But even this plan is in jeopardy. Only R15.6bn has been budgeted for emissions projects over the next five years — far short of what's needed. Perhaps the most damning admission came from Deidre Herbst, Eskom's Senior Manager for Environment, who revealed that retrofitting the aging coal fleet for full compliance could take up to 14 years and more than R257bn — only for many of these plants to be decommissioned shortly afterward. 'Given the time frames, refitting most plants would be imprudent, constituting fruitless and wasteful expenditure,' Herbst said. Several power stations — Matla, Duvha, and Kriel — will shut down before flue-gas desulfurisation (FGD) plants can even be installed. Others, such as Lethabo, Tutuka, Matimba, and Kendal, will close shortly after FGD completion. 'Majuba and Matimba are in sparsely populated areas, limiting the health impact and cost benefit,' Herbst said — an utterance that drew sharp criticism from MPs who accused Eskom of downplaying the health risks to rural communities. MPs did not hold back in their criticism. DA MP Nico Pienaar demanded answers on why R40bn was being spent on diesel generation — money that could instead fund FGD plants. 'What happens if the new FGD plant isn't built and diesel turbines aren't closed, as per the World Bank agreement?' he asked. The DA's Sune Boshoff was even more scathing: 'Gauteng looks terrible when the wind blows. Is Eskom not wasting money on upgrading structures that won't exist much longer?' She slammed the projected 10% tariff hike to fund compliance, asking why alternative technologies and international funding were not being aggressively pursued. The EFF's Moses Kennedy pressed Eskom on whether independent health impact assessments had been conducted near Kendal, Matla, and Duvha stations, where residents suffer from chronic respiratory illnesses. Herbst admitted that while health benefits from cleaner stoves had been studied, power station health assessments were still lacking. Eskom's much-touted Just Energy Transition (JET) also came under fire. The state-owned utility's air quality offset programme — meant to provide cleaner energy alternatives to 96 000 households in Mpumalanga — has reached only 5 500 homes so far. Herbst claimed the rollout would accelerate, but MPs remained sceptical. Meanwhile, Northern Cape representatives Henri van den Berg (FF+) and Patricia Mabilo (ANC) pushed for green hydrogen and ammonia projects, arguing that they could create jobs. Deputy Minister Graham-Mare revealed that the EU had pledged €7bn for energy transition projects, including aviation sector decarbonisation. But with coal-dependent regions such as Mpumalanga facing massive job losses, MPs questioned whether the transition was truly 'just'. Marokane hinted at a controversial solution: nuclear energy. 'Most countries are building nuclear,' he said, suggesting that South Africa's Integrated Resource Plan (IRP) should reconsider its stance. 'Nuclear stimulates economies and industrialisation.' Yet, with Eskom's finances in shambles and R50bn earmarked for new technologies — including a Medupi FGD plant — the feasibility of nuclear expansion remained doubtful. Eskom's dilemma is clear: Spend R257 billion to comply with air quality laws, raising tariffs by 10%. Risk 22 GW of shutdowns if they don't comply, plunging SA into darkness. Face public outrage over health impacts and job losses in coal regions. As Deputy Minister Graham-Mare admitted, 'This is about balancing interests with limited resources.' But for millions of South Africans choking on coal pollution and struggling with soaring electricity costs, that balance feels dangerously skewed. The question remains: Will Eskom clean up its act—or will South Africans pay the price for its failure? Get the real story on the go: Follow the Sunday Independent on WhatsApp.
