Socialist complexity at heart of Eskom’s problems.


WHEN Medupi and Kusile were announced by our government in 2004 and 2007 respectively, the two coal-fired mega-projects were both seen as emblematic of South Africa’s democratic progress —  key to the ruling alliance and its plans for the future.

The ruling labour-left coalition was at the height of its power. With its roots in the victorious anti-apartheid struggle, it had made no secret of its desire for a ‘mixed economic model’, in which a socialist command economy would prevail alongside the capitalist economy, and where the energy sector, would imitate policies from the days of the former Soviet Union. What could possibly go wrong?

According to Pretoria technocrats, a new era of cheap coal would herald in cheap and plentiful electricity with which to ‘build the nation’. Both consumers and workers would benefit. The latter from long-lived and extended public works programmes centred around coal, which in turn would drive salaries and feed households which had experienced some of the worst ravages of apartheid ‘separate development.”(1)

Thus it was that these two projects ballooned into costly engineering exercises, as complexity driven by the technocrats, bureaucrats and party officials, armed with Marxist texts and presidential directives, ruled the day. That Marxists tend to overtheorise economic problems, relying upon ideas such as ‘dialectical materialism’ and the ‘labour theory of value’ to arrive at their conclusions, in effect the triumph of ‘ideology over pragmatism’, has already been remarked upon.

What has not been said in the mainstream media is the manner in which unions such as COSATU, emboldened by socialist think-tanks such as the AIDC whose research is anything but lopsided (2), and with a culture of intolerance for differences in opinion, quixotically feed unemployment, climate change and the national debt. While the rest of the world is moving away from coal, South Africa’s coal ambitions have instead risen and include plans for at least several new coal plants such as Thabametsi, each one able to take our country into poll position as one of the top GHG emitters in the world.

Eskom’s coal-fired power plants persistently and significantly violates the air pollution limits in its licences.

“The main cause of its troubles” say Adjunct Professor Rod Crompton, is Eskom’s decision “to build two of the biggest coal fired generating plants in the world, (Medupi and Kusile). These plants are running way behind schedule, they’re over budget and the bits that are complete don’t work properly. They are probably the single largest disaster in South Africa’s economic history.”

Medupi is literally drowning in ash. The result of socialist bureaucrats implementing design changes via committee without sufficient input from scientists and engineers, whom they invariably ignore. This lack of concern for evidence-based research and scientific methodology in favour of ‘political education’ is not a new one, witness the failed Afro 4000 train debacle .

An editorial published by Engineering Weekly for example, debunks concerns from COSATU and others, surrounding loss of jobs due to renewables, and yet the union continues to demand a state-owned power utility on steroids, with little concern for loss of jobs in the broader economy and the tragic impact upon the livelihoods of those affected by outages and inefficiency.

“There is considerable support in South Africa” says Tobias Bishof-Niemz  for the notion that a transition in the electricity system from coal to renewable energy will trigger a jobs bloodbath at both Eskom and the Mpumalanga coal mines. A detailed analysis of the job numbers, however, suggests quite the opposite. In fact, it points to there being at least 30% more jobs in a fleet comprising solar photovoltaic (PV) and wind farms when compared with an energy-equivalent coal fleet”

Meanwhile the brazen union federation staged a protest march this week, in response to the President’s plan to unbundle Eskom, in effect calling for Eskom and its mounting debt, to be supersized. Unbundling alone may not be enough to offset the crisis. Creating completely separate, independent and regional power utilities able to compete with each other would have a better chance of survival.

NOTE:

(1) See Rudzani Mudogwa’s recently published defense of coal which relies heavily on  statements made by Gwede Mantashe.

(2) An article doing the rounds in the local press  purporting to be by “Dr Sweeney, an AIDC visiting researcher, with the City University of New York’s ‘School of Labor and Urban Studies’,” claims splitting up Eskom ‘will result in privatization’. If one follows the logic of the argument presented, it is the West (including NY City) that is in the grip of rolling blackouts and massive debt run-up by Energy Companies since they were unbundled from the State. No citations, case examples nor evidence is provided by the ‘researcher’.

Medupi alone is a R145bn disaster

Liberalism’s ideologues and their coalfaced discontents 

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