Question NW661 to the Minister of Public Enterprises

Reply:

According to the information received from Eskom:

(1)(a)(b) Job Creation and Skills Development:

Eskom is an active participant and major partner in skills development and has been at the forefront of skills development since the advent of democracy to satisfy the needs of the national pipeline. Eskom’s programmes increase access to high-quality and relevant education, training, and development opportunities in the form of bursaries (technical and non-technical), apprenticeships, learnerships, and workplace-integrated learning (WIL) to enable effective participation in the economy by all South Africans and reduce inequalities.

Eskom has and continues to avail and conclude memoranda of understanding with external funders to host youth across all demographics on WIL in the artisan, technical, and engineering disciplines, with a particular focus on the previously disadvantaged sectors of our society. In partnership with the Energy and Water Sector Education and Training Authority (EWSETA), Eskom has implemented a successful artisan programme that has changed the lives of many young people.

Retention and development of skills through a targeted employee value proposition are essential to ensure that Eskom has the required skills to meet the organisation’s needs, especially considering operational challenges and financial constraints. Eskom invests extensively in developing employees through various skills programmes comprising internal and external training interventions, further studies, and on-the-job training.

In the current financial year, Eskom has offered 2 457 learner pipeline and youth employment

oportunities and 48% of this total are females.

(1)(c) Economic empowerment initiatives at power stations:

The Just Energy Transition (JET) is an essential national initiative required to bridge the gap to improve energy security and reliability while reducing the effects of climate change. Through partnership development, Eskom organisation continues to increase its capacity to provide renewable and green energy technology training for future energy solutions.

The changing world of work, JET and the evolving energy industry require the reskilling and upskilling of Eskom’s workforce. Eskom is scaling up on initiatives to repower and repurpose fossil-fired power stations into hubs for economic diversification and growth in the long term. As part of the JET, Eskom, together with various stakeholders, is undertaking several initiatives to deal with the socio-economic impact of the shutdown of the stations on the local communities. These initiatives are outlined below.

1. Komati Power Station:

Through the Stakeholder Forum and under the leadership of the Ward Councilor, community members are integrated into projects that are undertaken at Komati Power Station. To date, 204 community members have been employed for the following projects:

• Agri-voltaics Demo Plant Construction.
• Containerised Microgrid Assembly Plant - this includes both skilled and unskilled labour. These microgrids fit in a standard shipping container which enables the rapid electrification of rural areas, a concept previously deemed too costly or technically challenging to connect to the national grid.
• Construction projects, including electrical fencing.
• Removal of alien invasive vegetation.

Eskom has the following projects planned for further training and employment of at least 40 community members in the first phase:

• Personal protective equipment (PPE) manufacturing.
• Palletisation - production of pallets from the alien vegetation that has been cleared.
• Aquaponics - Aquaponics is a food production system that couples farming with hydroponics (growing plants in water instead of soil) whereby the nutrient-rich water is fed to plants.

In addition, projects including the 100 MW solar PV plant with 600 MWh battery energy storage system which is planned to commence in January 2025, will create approximately 2700 to 3000 indirect jobs throughout construction.

Training and development are crucial for a successful energy transition and Eskom emphasis on reskilling and upskilling communities and staff alike. Eskom has made progress on several training initiatives aimed at fostering community development and empowering employees at Komati Power Station. These initiatives, encompassing training in solar photovoltaic (PV) mounting, installation and essential soft skills, reflect the ambition to offer new opportunities for communities around our power stations. A total of 63 community members have been trained, with 44 planned for early April 2024. The training programmes currently offered are:

i. South African Photovoltaic Industry Association (SAPVIA) accredited Solar PV Mounter and Installer.

ii. Soft Skills and Entrepreneurial Skills inclusive of Financial Literacy and Business Planning among other accredited training courses.

iii. A welding training facility has been established to train community members for use on future projects, creating a distinct pathway to employment.

iv. Quality Control for Trade and Occupation (QCTO), Recognized Mounter Training (for Solar PV).

v. Through partnerships with organisations such as the South African Renewable Energy Technology Centre (SARATEC), Eskom is rolling out training for both its employees and community members on several skills development initiatives including, but not limited to Introduction to Renewables, Battery Energy Storage Systems, Workshop Assistants for Microgrids, Aquaponics, Solar PV, Wind Turbine Service Technicians, Welding, Entrepreneurial Skills and Soft Skills.

In addition, training on the use of chainsaws, health and safety, herbicide and pesticide usage and storage etc., is presented before community members commence with work.

Economic empowerment

The incubation of SMMEs is underway for agriculture, primarily aquaponics, palletisation and other major contracts depending on the process allowances. Eskom is currently enhancing process knowledge of local SMMEs through forums and having constant engagements covering the governance, tender, and evaluation processes. These engagements further assist with creating an understanding of what is required to be competitive in the changing energy landscape. These SMMEs will then create further opportunities for jobs and skills development.

1. Grootvlei and Hendrina Power Stations

Eskom is exploring initiatives and projects which will enhance the reskilling and upskilling of employees while crafting skills development opportunities for the community members. Eskom intends to create new high-quality jobs through repowering and repurposing initiatives with a direct focus on Mpumalanga, where most of our power stations are located while catalysing the reskilling and upskilling of its employees to ensure an equitable and just transition.

(2)(a) Local procurement:

Eskom abides by local procurement government policies such as local content on designated products and the National Industrial Participation Programme (NIPP) as advocated by the Department of Trade, Industry and Competition (the dtic). These initiatives are monitored and reported monthly. The local procurement requirement is one of the transformation requirements in Eskom’s procurement processes.

2(b) Supplier development:

Eskom’s Supplier Development Localisation and Industrialisation (SDL&I) ensures that all contracts display opportunities for supplier development where feasible and that 30% sub-contracting is implemented.

2(c) Enterprise growth to stimulate economic activity and promote inclusive growth:  

Enterprise development is one of the main objectives of SDL&I, and this entails supplier incubation programmes in some instances where there is a need to skill and provide business opportunities to designated groups. Many enterprise development initiatives such as procurement opportunities, awareness sessions, targeted capacity developmental programmes, and workshops are conducted across the supply chain.

A presentation on Eskom’s year to date performance is attached.

 

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date: