Electricity utility Eskom reports that it is in the process of finalising various demand- and supply-side agreements, including a new round of power buy-backs, to create a cushion for it to “catch-up” with its maintenance programme, which was affected by lower supplies from Cahora Bassa, in Mozambique, between August and November.

It is seeking an additional 600 MW to 1 000 MW of demand- and supply-side options over the coming six months, notwithstanding the lower-than-anticipated demand environment.

The utility has lowered its full-year sales forecast to 219 342 GWh from 222 083 GWh, owing to the prevailing low-growth environment in South Africa. In the year to March 31, 2012, Eskom sold 224 785 GWh, which itself was only 0.2% higher than the figure recorded in the previous year.

Hernic Ferrochrome has already reported that it will participate in a new buy-back programme by reducing demand at its De Kroon operations between December 1, 2012, and March 31, 2013.

For the second time in 2012, the company will shut off two furnaces during Eskom’s peak summer-maintenance period in return for monetary compensation. This compensation is extended only to companies that guarantee that no jobs will be shed and that customer commitments will be met. The shutdown will reduce Hernic’s total production capacity by 40%.

But Eskom has also issued tenders for new short-term independent power-producer supplies, as well as a large-scale residential demand-side mass roll-out programme – scheme that are additional to a range of other programmes that are already in place.

Eskom spokesperson Hilary Joffe tells Engineering News Online that the group is busy finalising various agreements and will be in a position to share more details once these have been secured.

The buy-backs will be funded from existing demand-side and demand-market participation budgets allowed for under the second multiyear price determination period, or MYPD2, which ends on March 31, 2013.

Eskom spent R1.8-billion between mid-December 2011 and the end of May 2012, buying back power from industrial customers, most of which were in the ferrochrome sector.

“The buy-backs are considered in the light of the risks that occurred in the winter period and the need to ensure that there is additional maintenance done to improve the reliability of the generation fleet,” Joffe adds.

She stresses that the scheme is voluntary and is only considered in cases where it is deemed to be “mutually beneficial”.

The utility has stated that the backlog in its maintenance programme is negatively affecting the operations of ageing power station fleet. Eight of its 14 coal-fired power stations are older than 30 years.

In the six months to September 30, 2012, the unplanned capacity loss factor was reported as being 7.5%, which was worse than the budgeted level for the period of 6%. The energy availability factor was also lower than budget at 81.2%.

“It is critical that we do additional maintenance in the summer period to improve the reliability of the plant,” Joffe says.