Nersa corrects gas concurrence notice, says 3 000 MW relates to Eskom Richards Bay request

13th September 2022 By: Terence Creamer - Creamer Media Editor

Nersa corrects gas concurrence notice, says 3 000 MW relates to Eskom Richards Bay request

Photo by: Creamer Media

The National Energy Regulator of South Africa (Nersa) has published an erratum to a consultation paper published for public comment on August 25 in relation to it providing concurrence to a Ministerial determination for the procurement of 3 000 MW of gas-fired electricity.

The original notice and consultation paper said that the 3 000 MW was based on an allocation for gas/diesel generation outlined in Table 5 of the Integrated Resource Plan of 2019 (IRP2019).

The table shows the allocation of 1 000 MW of gas/diesel by 2024 and
2 000 MW by 2027, and the original consultation paper stated that the Minister had determined to procure the total capacity of 3 000 MW from gas before 2028.

The original consultation paper raised questions as, in 2020, Mineral Resources and Energy Minister Gwede Mantashe Gazetted a Ministerial determination for 3 000 MW of gas to power for the years 2024 to 2027.

In the erratum, Nersa clarified that the gas determination under consideration for concurrence actually related to an Eskom application submitted to the Minister on January 13 for a determination relating to a combined cycle gas power plant at Richards Bay, rather than Table 5 of the IRP2019.

It does not indicate how Eskom and the Minister have sought to justify the allocation in terms of existing IRP2019 allocations, but the consultation paper states that the ever-declining performance of Eskom’s coal fleet meant that “baseload and mid-merit capacity must be added to the grid in order to ensure that the System Operator is able to balance the grid with the aid of dispatchable capacity”.

It also highlights that about 24 100 MW of coal generation capacity is planned to be decommissioned in the period beyond 2030 and that gas could minimise dependence on diesel.

Nersa also confirmed that the public comment deadline, which was originally set down as September 23, had been revised to 16:30 on September 16.