Government looks to gas power generation to ease electricity crunch

03 September 2015 - 18:22 By Peroshni Govender
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Eskom's National Grid Pylons carrying SA's electricity buzz & hum at sunset outside Koeberg Nuclear Power Station. File photo.
Eskom's National Grid Pylons carrying SA's electricity buzz & hum at sunset outside Koeberg Nuclear Power Station. File photo.
Image: ESA ALEXANDER /©SUNDAY TIMES

The government aims to build new gas-fired power stations to stem chronic electricity shortages and reduce its dependence on an ageing fleet of coal-fired plants.

South Africa, the most advanced economy on the African continent, is facing a shortfall in electricity supply, resulting in frequent power cuts that are hurting business and eroding its appeal as an investment destination.

President Jacob Zuma's government is seeking alternatives in the gas, renewable and nuclear energy to stem electricity shortfalls and help power utility Eskom to keep the lights on.

The government is planning to launch a gas-to-power procurement programme for 3,126 megawatts (MW) in September, with bids expected in the first quarter of 2016.

"We are weaning ourselves from 90 percent reliance on coal," Ompi Aphane, deputy director general of energy policy and planning, told Reuters.

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"As it stands, it is difficult to finance coal fired power stations, because banks and lenders are also under environmental pressure," Aphane said, referring to the polluting coal-fired power stations.

"One of the mistakes we made in the past was that we extended the life-span of coal fired power stations that came to an end. That has now changed, you find that we might not necessarily extend its life when a plant comes to an end."

Energy minister Tina Joemat-Pettersson said this week talks were under way between the Mozambican and South African governments to pipe gas to South Africa but gave few details.

Petrochemicals group Sasol which operates a pipeline between Mozambique and South Africa said although it was not aware of plans by South Africa to import more gas, its facility could be used by "third parties".

International consulting firm McKinsey said South Africa has the potential to install up to 20 gigawatt (GW) of gas-fired power generation by 2030 either through imports or the development of its shale sector.

South Africa is expected to face another electricity shortfall between 2020 and 2030 as 14.4 GW of power will be lost when some coal plants come to their end of life.

"Natural gas plants, which are fast to build, entail low capital costs, and have a small carbon footprint, can provide an alternative to diversify the power supply," the firm said in its report on South Africa.

 

- Reuters

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