Parliament, Friday, 28 March 2025 – The Portfolio Committee on Electricity and Energy conducted an oversight visit to the Kusile Power Station, focusing on the plant’s operations, environmental impact and the historical context of its development.
During the oversight, the committee addressed the alarming cost overruns associated with the construction of the power plant. Initially projected to cost R80 billion, costs have escalated, with estimates now nearing R161 billion. This is a serious concern for the committee, in the context of financial mismanagement and the impact on Eskom’s balance sheet. Members of the committee highlighted the importance of accountability, urging Eskom to investigate and address the root causes of these overruns, including contractor performance and procurement processes.
The committee also emphasised the importance of accountability in restoring public trust and ensuring the plant’s success. Eskom must implement robust mechanisms to prevent corruption and hold individuals accountable for past transgressions, committee members said. They also called for transparency in reporting any ongoing investigations and actions taken against those implicated in corrupt practices.
Currently, Kusile is operating at an energy availability factor (EAF) of approximately 74%, which is below the industry standard of 80%. The committee acknowledged improvements in performance but stressed that higher operational efficiency is vital for addressing the national energy crisis. The committee indicated that it wants to see strategic plans that will enhance the plant’s reliability and overall contribution to the energy grid.
During the visit, committee members had significant concerns about the emissions produced by coal-fired power stations and their adverse effects on local communities. Kusile’s management outlined their commitment to reducing emissions through the implementation of advanced technologies, including flue gas desulfurisation systems, which significantly lower sulphur dioxide emissions. Kusile’s management presented their initiatives in clean coal technology, highlighting their commitment to environmental stewardship. The plant’s use of low-emission technologies aims to minimise its carbon footprint while maintaining efficiency. The committee encouraged ongoing investment in research and development to further enhance clean coal practices.
The committee was also briefed on the construction of residential apartments intended for construction workers, which began in 2008. However, the project faced significant delays and the apartments remain unoccupied, raising questions among committee members about the rationale behind their development and the associated costs, estimated at approximately R800 million.
The committee also sought clarity on whether those responsible for the project’s planning and execution have been held accountable for the project delays and other failures. The committee urged Eskom to explore potential avenues for recovering costs associated with the abandoned accommodation project, including legal action against contractors who may have failed to deliver on their commitments. The committee emphasised that any future developments should incorporate community input and address local housing needs effectively.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON ELECTRICITY AND ENERGY, MS NONKOSI MVANA.
For media inquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Yoliswa Landu (Ms)
Cell: 081 497 4694
E-mail: ylandu@parliament.gov.za
Arrange a tour