DoE says power-strapped SA must help neighbours with electricity supply
As South Africa faces a shortfall in electricity, gas as power could increasingly become an option, but the Department of Energy (DoE) has advised potential bidders for gas projects in South Africa that it also needs to consider proposals from other Southern African countries.
DoE head of independent power producers Karen Breytenbach, said on Wednesday that South Africa should not ‘just look after itself’, noting that she had received investor proposals from Botswana and Namibia as well as Mozambique, concerning projects in the Maputo port.
“We should not forget about those opportunities. We are looking at an integrated, regional approach and not only what South Africa wants and needs. We are not just looking after ourselves,” Breytenbach told the South Africa Gas Options conference, in Cape Town.
She said developers were working with South Africa’s neighbours and their port authorities.
DoE deputy director-general of electricity policy, planning and clean energy Ompi Aphane was outspoken about the need to help neighbouring countries, some of whom were facing a bigger power crisis than South Africa.
“We need to supply them with power, as they need power more than we do. We are going to be fair about that. The sooner we give them electricity, the less they will walk from Zimbabwe to Johannesburg, because whenever we speak to people they say they can’t go home to Zimbabwe as they have no electricity there.”
He said South Africa needed quick solutions to its electricity shortage.
“We are in a crisis and we need to sort out this crisis.”
Aphane said South Africa’s energy mix and gas prospects for power would be a key issue at the African National Congress’s National General Council meeting in October.
Breytenbach and Aphane have been upbeat about prospects for the gas industry in South Africa. At the closing session of the Gas Options conference, Breytenbach said there was a lot of support for South Africa to move into gas.
“There will be many opportunities. There will also be room for youth and small business. We need development, we need jobs. We need youngsters to come in and take the country forward,” she said.
Breytenbach had received 170 submissions following the request for information in relation to gas sent out at the beginning of the year.
“Now we need to see if we can pull off the documents that make you happy to participate, put in your bids and not waste your money.”
Breytenbach said the bid windows could be staggered.
“On whether we go all out with all three [bid windows] in one go, I think the renewables process [has taught us] that we have to split them into six-month intervals.”
Breytenback promised that the bidding process for gas projects would be fair and transparent.
“We will have the same discipline as we [exercised] for renewables and coal. You can bank on us. We will do exactly the same.”
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