South Africa’s power utility warned coal suppliers it may halt purchases of the fuel because a nationwide lockdown to deal with the coronavirus pandemic has curtailed demand for electricity.
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Eskom has declared force majeure – unforeseen circumstances that prevent the fulfilment of a contract – on one of its biggest coal suppliers, Exxaro Resources, setting the stage for possible legal action.
Independent energy producers were finally making headway in their bid to persuade government to revive long-stalled plans to buy more renewable power when they encountered a new obstacle: the coronavirus.
Eskom has told investors it doesn’t currently need to approach the government for more support, even as a Covid-19-related national shutdown slashes revenue.
As South Africa enters the seventh day of the nationwide Covid-19 lockdown, Eskom has announced that it will double maintenance work at its plants.
South Africa’s wind energy producers are questioning the legality of a decision by the state-owned power utility to curtail purchases of their output due to low demand stemming from a national lockdown.
Eskom has told operators of some independent wind-power plants that it won’t need their power at certain times of day due to lower demand amid a national shutdown.
Eskom moved to reassure lenders and markets on Monday that it will continue to meet its financial commitments and obligations during and after South Africa’s Covid-19 lockdown.
Eskom has told part of its workforce to stay home and delayed some maintenance as demand for electricity plummeted due to the national lockdown aimed at containing the spread of the coronavirus.
Energy regulator Nersa took a crucial step toward allowing the government to procure emergency power and to allow the building of more privately owned power plants.