Jul 19, 2012
Eskom keen to grow in Mozambique – CEOBack
Engineering|Africa|Aggreko|EDM|Eskom|Petrochemicals|PROJECT|Projects|Resources|Shanduka Group|Sustainable|Africa|Mozambique|South Africa|United Kingdom|Cross-border Electricity Projects|Electricity|Electricity Supply|Energy|Energy Hub|Energy Supply|Gas-fired Plant|Petrochemicals|Transmission Infrastructure|Armando Emilio Guebuza|Augusto Sousa Fernando|Brian Dames|Cyril Ramaphosa|Electricidade De Mo|Infrastructure|Power|Rupert Soames
© Reuse this
He told Engineering News Online at the inauguration of the plant, which UK-based Aggreko developed in a joint venture with South Africa’s Shanduka Group, that regional cooperation and expansion into the rest of Southern Africa was a priority for Eskom.
“To leverage such projects, we will have to build a massive amount of transmission infrastructure. As Eskom, we intend to play a role across our value chain of generation and transmission. We want to be involved in all aspects of projects, not just buying power, particularly in Mozambique.
“This is part of our strategy and we see Eskom growing particularly in the Mozambican market,” Dames stated.
The power generated from the new gas-fired plant at Ressano Garcia would be divided between the two utilities, with 92.5 MW going to Eskom and 15 MW to EDM over the next two years.
Albeit small, Dames said the additional baseload power would assist with electricity supply in South Africa.
“The [Aggreko] project will provide impetus for us to take advantage of further opportunities for our countries, our utilities and to exploit our options in the region,” he said.
Aggreko CEO Rupert Soames stated that Mozambique was on its way to becoming an energy hub and already played a pivotal role in energy supply in Southern Africa.
“Mozambique borders with several other countries and is geographically well-positioned to provide gas to countries in the Southern African region, but also perhaps to convert the gas into electricity and sell it across borders.
“That is what is so exciting about this project; gas is converted into electricity and through that process a lot of value is added,” he said.
Soames indicated that urbanisation had contributed greatly to growing demand for electricity in Southern Africa, with Mozambique currently showing compound growth in electricity demand of about 12% a year and South Africa also reporting significant demand increase.
“The resource margin is getting tighter across the Southern African region and this project will increase the margin in South Africa by an appreciable amount,” he pointed out.
Further, Soames stated that the flexibility and vision shown by the Mozambican government in supporting the gas-fired power project would encourage investment in the country.
EDM CEO Augusto Sousa Fernando reiterated the project came at an important time in Southern Africa when the need for larger quantities and better quality of power was growing.
He said the project was one of many and that EDM was negotiating two new power plant projects with South African petrochemicals giant Sasol.
Shanduka executive chairperson Cyril Ramaphosa said the project was evidence of the value of potential partnerships that could be structured in the Southern African region. “By combining the resources and capabilities of the private sector and public utilities, significant economic and social value can be created.”
President Armando Emilio Guebuza, who inaugurated the plant, said the project was an historic event and represented a big step towards socioeconomic development in Mozambique by maximising the benefits associated with natural resources.
He added that sustainable growth was anticipated in Mozambique’s energy sector over the next few years, as the country’s energy potential was unlocked.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
State-owned power utility Eskom and Public Enterprises Minister Lynne Brown confirmed on Wednesday that contracts under the so-called short-term power purchase programme (STPPP) had been renewed ahead of the March 31, 2015, expiry date. Eskom told Engineering News...
State-owned power utility Eskom said on Wednesday that full power from Medupi Unit 6 should be reached by the end of May and that it was working to ensure that the completion of the remaining five units was not undermined by further technical or labour problems. The...
A new handbook, titled Understanding Power Purchase Agreements, has been published under the aegis of President Barack Obama’s Power Africa initiative, which was launched in June 2013 with the aim of facilitating the addition of 30 000 MW of new electricity...
Updated 10 minutes ago Toll tariffs for the proposed N1 and N2 Winelands toll roads in the Western Cape have not been set, the South African National Roads Agency (Sanral) said on Wednesday. These tariffs will only be set by the minister of transport once the competitive bidding process...
Updated 11 minutes ago One key component of the South African government’s current economic policy relates to encouraging economic growth and fostering job creation through promoting the procurement of locally produced goods and services. But supporters of the policy believe a shift in the...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...