Study urges Eskom to accelerate station decommissioning, curtail Kusile to shore up solvency

A new study argues that cash-strapped Eskom could make immediate costs savings of up to R17-billion and boost its liquidity, without undermining security of supply, by accelerating the decommissioning of three of its older coal-fired power stations and by halting construction of units 5 and 6 at the Kusile project, in Mpumalanga. However, should Eskom’s financial crisis worsen to the point where it threatened the country’s fiscal and economic sustainability, the study suggests that it could become necessary to abandon more of Kusile (as well as parts of the Medupi project, in Limpopo) to staunch any further “haemorrhaging of cash” by the utility.