R/€ = 14.11
R/$ = 11.60
Au 1195.22 $/oz
Pt 1215.50 $/oz
Jan 21, 2008
Eskom to invite more cogeneration projects, hopes to fast track someBack
Africa|ArcelorMittal South Africa|Cogeneration|Eskom|Industrial|Projects|Sasol|State|Africa|Cogeneration|Electricity Cogeneration|Power Producer|Products|Steel|Steel Giant|Sugar Cane Producers|Brian Dames|Cogeneration|Power
© Reuse this Africa’s biggest power producer, State-owned Eskom, will run another round of bidding for electricity cogeneration, after having received proposals for 5 000 MW in the first bidding process, a senior official said on Monday.
This amounted to about one-eighth of the utility’s current installed capacity, and these projects that got the go ahead would start contributing power to the grid around 2012.
Eskom Enterprises MD Brian Dames said that the capacity-constrained company was now looking at inviting more companies to bid to supply it power “over and above” the current bidding process.
He was speaking after Eskom’s top brass met with representatives of its biggest industrial customers. There were over 130 officials from 38 companies.
“Given the current situation, we are considering running another round, and hopefully we can do a lot with that, and include more parties, and bring some of those proposals forward,” he said at a media briefing in Midrand.
All of the bidders, which included steel giant ArcelorMittal South Africa, sugar cane producers, and biomass producers, had asked for an extension to Eskom’s February bidding cut-off date, which it pushed back to May, Dames said.
The South African power utility had run into severe generating capacity problems since January 10, with national shortfalls reaching levels of 2 500 MW – almost the size of a large power station.
Dames said that while most of the bidders had indicated they could start supplying power from early 2012, Eskom was hoping to push some projects forward, and was looking at ways to incentivise this.
He said that the power parastatal had already signed a cogeneration agreement with petroleum products firm Sasol.
“The ball is now in their court to actually build the plant,” Dames stated.
He added that some of the cogeneration bidders wanted the contracts duration to be extended by a few years to 25 years.
Eskom was hoping to get finality on the legal and commercial framework for cogeneration within the next month.
It was Eskom’s initial aspiration to add 900 MW of power to the grid from cogeneration sources.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
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.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...