Loading...
See More

Supply tight as Eskom battles wet coal

Jan 25 2011 18:13 Reuters

Related Articles

Eskom to repatriate $1.75bn from bond

Ratings boost for Transnet, Eskom

Eskom under massive power pressure

Eskom promises to keep SA's lights on

Strong rand won't help Eskom

Eskom US bond issue proves a hit

 

Johannesburg - Power utility Eskom is managing its problems with wet coal for now, but power supply remains tight, a senior official said on Tuesday.

In early January, heavy rains hit the production and quality of coal supplied to the utility's power plants, affecting Eskom's ability to power the economy.

Chief Commercial Officer Dan Marokane said Eskom had put measures in place to buy better-quality coal and to protect its stock from upcoming rainfalls.

While showers have eased recently, more heavy rains are expected in the coming weeks which would test the provisions taken by the utility, he said.

"The system is still tight and all manners of energy savings must still be pursued," Marokane told journalists.

Eskom supplies the majority of South Africa's electricity, most of which is based on coal.

It has been struggling to meet fast rising demand and has warned that supply would remain tight until 2015, and especially over the next two years, until its two new power plants come on stream.

South Africa's national grid nearly collapsed in early 2008, partially due to coal shortages and rain, forcing mines and smelters to shut for days and costing South Africa billions of dollars in lost output.

Many of Eskom's power plants are currently undergoing maintenance which could further strain supply, although Marokane said that Eskom's sole nuclear plant, which was partially shut last month for repairs, was again operating at full capacity.

electricity generation  |  ipps  |  eskom
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
11 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...