Eskom to cut costs by replacing diesel with gas

Johannesburg - Power supplier Eskom expects to start using gas to run its generators within the next three years, a spokesperson said on Friday, as the cash-strapped utility seeks to move away from costly diesel.

Eskom, which supplies about 95% of electricity to Africa's most advanced economy, is battling to meet its daily demand of about 30 000 megawatts and has to rely heavily on diesel-powered turbines to keep the lights on.

In his first State of the Nation speech since his re-election last May late on Thursday, President Jacob Zuma directed state-owned Eskom to switch to gas to cut down on the spiralling costs of using diesel.

READ: Zuma: 'Top priority' Eskom to get R23bn

Eskom said on Friday the government would source gas from its neighbours and was already in talks with Mozambique and Namibia, which have discovered large natural gas deposits.

"It's a gradual process, it is going to take between two to three years," Eskom spokesperson Khulu Phasiwe told Reuters.