Aug 17, 2012
Eskom says decisions on new generation capacity urgentBack
Pretoria|Ressano Garcia|Africa|Aggreko|CoAL|Eskom|Gas|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
© Reuse this
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.
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
Government has received more than 180 nominations for the yet-to-be-established Ministerial Advisory Council on Energy, Deputy President Cyril Ramaphosa said on Wednesday. "I have been informed by the department of energy that the proposed ministerial advisory...
The national power system was expected to be tight over the evening peaks this week, despite mild temperatures being forecast, State-owned power utility Eskom said on Monday, calling on consumers to pull together to help beat the peak. In its latest biweekly system...
State-owned power utility Eskom has invited bids for the construction of the Borutho–Witkop portion of the 400 kV transmission lines that form part of the Medupi power station integration project. The Medupi power station integration project was part of the Eskom...
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...
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
The multibillion-rand development of the Zendai Modderfontein New City, east of Johannesburg, will aim to exemplify an integrated city node, says property group Zendai South Africa COO Wenhui Du. The development will focus on the Modderfontein Gautrain station to be...
The South African Civil Aviation Authority (CAA) hopes to have finalised regulations for the flying of Unmanned Air Vehicles (UAVs) – also designated Remotely Piloted Air Systems (RPAS) and popularly called drones – in the country’s civilian airspace by the end...
Various stakeholders have expressed optimism that the Small Business Development Ministry, created after the national elections in May, will add much needed impetus to enterprise development in South Africa, where a strengthening of the entrepreneurial culture is...
Capturing and storing carbon dioxide (CO2) is the only way through which the world will achieve the lowest of the United Nations Framework Convention on Climate Change’s (UNFCCC) global warming predictions, called the representative concentration pathway (RCP) 2.6....
The City of Johannesburg has recovered R107-million following the arrest of 22 people allegedly involved in corruption, collusion, fraud and tampering with the city’s electricity systems, which had ultimately cost the city R200-million in lost revenue.