Unstable power supply threatens SA’s economic growth
W ithout guaranteed basic electricity delivery, the eco- nomic stability of South Africa is threatened. There is currently a significant shortage of power supply, resulting in State-owned power utility Eskom asking industry, businesses and households to cut consumption to reduce and stabilise supply, says the South Africa division of integrated generator set manufacturer Cummins commercial power systems GM Nicola Morgan-Evens.
“Unfortunately, Eskom will have to increase electricity prices over the next decade to cover investments made to meet demand. The grid will remain unstable until all renewable-energy plants and the new Kusile and Medupi plants begin power generation. This instability will threaten the effectiveness of businesses in South Africa,” she says.
The risk of unstable power supply to South African companies is predominantly the cost of downtime during an outage. However, there are also indirect costs. These can be legal fees incurred owing to accidents, as well as injuries sustained by industry workers during an outage, she explains.
“Standby power is the go-to solution. It reduces and potentially negates costs associated with power outages. Standby power can maintain power supply and limit employee downtime, accidents and injuries while maintaining output,” says Morgan-Evens.
She notes that standby power will prove particularly valuable in underground mines. Mines encounter specific problems with regard to power outages, as critical elements, such as underground mine ventilation, noxious gas and other detection equipment, as well as mine shafts, are affected, which poses significant risks to workers, she adds.
“Mines must always keep personnel safe as this, and productivity, are of paramount importance to mines and regulators. Mines cannot meet the rigorous health and safety standards without standby power, as South African law requires mines to ensure that all equipment, including standby power, functions to the best of its capabilities in eliminating the risk of fatal accidents.
“Risk mitigation is a major factor for mines, as they have to adhere to certain environmental and maintenance processes, as well as health and safety legislative requirements. As such, there must be constant power supply to reduce these risks,” Morgan-Evens concludes.
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