Nedbank, Investec mull Kelvin power station disposal
Nedbank and Investec Bank are considering selling the 600 MW privately owned coal-fired Kelvin power station, in Kempton Park.
The power station formed a crucial part of the City of Johannesburg metropolitan municipality’s power supply and historically supplied between 10% and 14% of the city’s electricity requirements. Power is supplied to the city under a 20-year power purchase agreement (PPA) that was signed in 2001.
The power plant comprised two stations – Kelvin A and Kelvin B – with a combined nameplate capacity of 600 MW; however, given that it was an ageing plant, its capacity had degraded over time.
Nevertheless, the plant owners had recently undertaken an intensive maintenance programme to improve electricity generation.
Nedbank and Investec control Kelvin Holdings, which, in turn, owned the power station.
The banks believed that buying the power station would offer potential investors an opportunity to acquire “an operation on an established site at a unique point in the grid”.
Further, the PPA with the city provided investors short-term cash flows.
The banks indicated that by refurbishing the plant, there would be long-term offtake opportunities with the city, the Department of Energy under its baseload independent power producer programme, industrial offtakers and utilities in neighbouring areas.
The banks have invited interested parties to register their interest to participate in the potential sale process by visiting www.kelvinsale.com.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
