http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: 0.11
R/$ = 11.28Change: 0.00
Au 1209.40 $/ozChange: 0.71
Pt 1272.00 $/ozChange: -30.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 17, 2012

Eskom says decisions on new generation capacity urgent

Back
Pretoria|Ressano Garcia|Africa|Aggreko|CoAL|Eskom|Hydropower|Industrial|Nuclear|PROJECT|System|Africa|Congo|Mozambique|Namibia|South Africa|United Kingdom|Kusile Power Station|Constrained Electricity Supply|Conventional And Unconventional Gas|Electricity|Energy|Mining|Nuclear|Environmental|Brian Dames|Eskom|Power|Operations
|Africa|CoAL|Eskom|Hydropower|Industrial|Nuclear|PROJECT|System|Africa|||Energy|Mining|Nuclear|Environmental|Power|Operations
pretoria|ressano-garcia|africa-company|aggreko|coal|eskom|hydropower|industrial|nuclear-company|project|system|africa|congo|mozambique|namibia|south-africa|united-kingdom|kusile-power-station|constrained-electricity-supply|conventional-and-unconventional-gas|electricity|energy|mining|nuclear-industry-term|environmental|brian-dames|eskom-person|power|operations
© Reuse this



Government would have to start implementing the Integrated Resource Plan (IRP) for electricity soon, to avoid another power supply crisis, Eskom CEO Brian Dames said on Friday.

He expressed concern as plans of further generation capacity build programmes, beyond the completion of the coal-fired Kusile power station being built in Mpumalanga, were yet to be announced.

“As Eskom, we are waiting for guidance as to what is expected from us.

“Our concern is that unless a decision on new build is made soon, in terms of what happens after the Kusile power station is completed, we will have continued constrained electricity supply from 2019 to 2020,” Dames stated at a business breakfast in Pretoria.

The Eskom CEO said the utility had aspirations to be involved in a nuclear build programme under the IRP, which planned 9 600 MW of new nuclear capacity.

He pointed out that it would take Eskom about ten years to get a new nuclear project into commissioning phase, which meant that it was already behind schedule to keep to the 2023 commissioning date, as called for in the IRP.

Meanwhile, Dames affirmed that South Africa’s power system would remain constrained until the Medupi and Kusile power stations were commissioned.

He added that in the short to medium term it would be challenging for Eskom to ensure a secure and stable supply of electricity, owing to poor planning by the country as a whole.

Further, Dames pointed out that conventional and unconventional gas could serve as the ‘game changer’ in terms of power supply in South Africa over the next two decades.

Despite environmental concerns surrounding unconventional gas, he said gas would carry various benefits, such as lower capital costs and improved emissions.

Eskom was currently looking for gas sourcing options beyond South Africa, to the Southern African region. “From a natural gas perspective, Mozambique and Namibia hold great advantages for us and we intend to expand operations there,” Dames noted.

The company recently signed a contract with UK-based Aggreko for 92.5 MW from its new 107.5 MW interim gas-fired power plant in Ressano Garcia, in Mozambique, and was also exploring natural gas opportunities on the country’s coast.

OUTLOOK

Dames said prospects for the global economy influenced the outlook for commodities, which directly impacted on the demand for electricity in South Africa, as Eskom currently sold 40% of its power to large energy-intensive mining and industrial customers.

He indicated that the utility was experiencing lower-than-expected demand growth, which was in large part attributable to slower demand growth from large commodity producers in the country.

“We have seen a decline in electricity consumption, so the year-on-year growth is negative,” Dames added.

Based on feedback from clients, Eskom projected a slow growth in electricity demand over the next five years of less than 2%, linked to an anticipated economic growth rate of about 3%.

Dames said Eskom envisioned a massive, high-voltage network or “super grid” for the electricity sector in Southern Africa by 2030. He added that such a system would integrate solar, nuclear, coal, gas and hydropower.

“We think the Southern African electrical system should leverage the hydro on the north [of the continent] all the way to the Congo on to the Zambezi and leverage the gas fields of the east and the west,” he stated.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Article contains comments
Toshiba’s Westinghouse Electric Company on Monday launched an expedited review application in the South Gauteng High Court challenging Eskom’s decision to award a R4.3-billion contract to Areva, of France, for the replacement of steam generators at the Koeberg...
Cellular major MTN South Africa has approved two gas-powered generation developments for its Doornfontein (1 MW) and Newlands (6 MW) sites, in Gauteng, based on the success of its 2 MW trigeneration plant at its Roodepoort headquarters. MTN will expand this methane-...
Article contains comments
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu.  Despite allegations of irregular tendering process, the...
Article contains comments
More
 
 
Latest News
Updated 2 hours 49 minutes ago The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
Updated 2 hours 58 minutes ago JSE-listed Redefine Properties on Wednesday closed an accelerated bookbuild, raising R1.36-billion, placing around 143.1-million shares at a price of R9.50 a share. The company announced the accelerated bookbuild on Wednesday morning to initially raise about...
Updated 3 hours ago The seasonally adjusted Kagiso Purchasing managers’ index (PMI) rose above the neutral 50-point mark in September, signaling growth for the manufacturing sector for the first time since March, revealed Kagiso Tiso Holdings in a statement on Wednesday. BNP Paribas...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
Updated 2 hours 50 minutes ago The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu.  Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks