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Cape Town - It would not be wise to say that electricity could be a huge stumbling block for the viability and future of Coega in Port Elizabeth and that the Coega Industrial Development Zone (IDZ) would close, according to the Coega Development Corporation (CDC).
The CDC was reacting to a report by news agency AFP, which also appeared on Fin24 on February 18.
In the article Coega manager Meike Wetsch was quoted as saying that if the mega project Mthombo oil refinery "does not happen, we might as well close" the $250m industrial zone built 11 years ago.
This was as part of the article about how the Eskom crisis could be damaging the SA economy.
"While Coega acknowledges that one of the answers to meeting rising electricity demand is a nuclear reactor – particularly when it comes to meeting industrial consumption needs – it would not be wise to say that electricity could be a huge stumbling block for the viability and future of Coega and that the Coega IDZ would close," the CDC said in a statement.
"Moreover, a consortium led by international power company GDF Suez has broken ground on the R3.5bn peaking power station, named Dedisa, within the Coega IDZ."
Consisting of two open-cycle gas turbines it would be able to produce 335MW – roughly half Nelson Mandela Bay’s power requirement.
Dedisa will begin operating in second half of 2015 and it is hoped that it would essentially bring an end to the types of rolling blackouts which crippled the region’s economy in 2008.
"Other mega-projects in the pipeline are being catered for in feasibility studies and Thyspunt Nuclear 1 is a key enabling factor for future developments in the IDZ," the CDC said.
"However, we would by no means close the IDZ if Nuclear 1 did not go ahead as planned, as suggested."
The CDC said the government has major projects underway to meet energy demands and is harnessing energy from a range of sources including wind, solar, gas, coal as well as putting in place stop gaps, such as peaking power plants to meet high demand times.
"Nuclear is but one of many diversifications of energy sources," the CDC said.
"Although electricity is a concern – plans, strategies, and concrete implementation phases are well underway to both meet current and future demand – we are comfortable that these processes will yield the desired effect."
It said Coega is ahead of the curve, both actively lobbying for diverse sources of energy supply and maintaining our current infrastructure to meet with both current and future investors’ demands.
The CDC was reacting to a report by news agency AFP, which also appeared on Fin24 on February 18.
In the article Coega manager Meike Wetsch was quoted as saying that if the mega project Mthombo oil refinery "does not happen, we might as well close" the $250m industrial zone built 11 years ago.
This was as part of the article about how the Eskom crisis could be damaging the SA economy.
"While Coega acknowledges that one of the answers to meeting rising electricity demand is a nuclear reactor – particularly when it comes to meeting industrial consumption needs – it would not be wise to say that electricity could be a huge stumbling block for the viability and future of Coega and that the Coega IDZ would close," the CDC said in a statement.
"Moreover, a consortium led by international power company GDF Suez has broken ground on the R3.5bn peaking power station, named Dedisa, within the Coega IDZ."
Consisting of two open-cycle gas turbines it would be able to produce 335MW – roughly half Nelson Mandela Bay’s power requirement.
Dedisa will begin operating in second half of 2015 and it is hoped that it would essentially bring an end to the types of rolling blackouts which crippled the region’s economy in 2008.
"Other mega-projects in the pipeline are being catered for in feasibility studies and Thyspunt Nuclear 1 is a key enabling factor for future developments in the IDZ," the CDC said.
"However, we would by no means close the IDZ if Nuclear 1 did not go ahead as planned, as suggested."
The CDC said the government has major projects underway to meet energy demands and is harnessing energy from a range of sources including wind, solar, gas, coal as well as putting in place stop gaps, such as peaking power plants to meet high demand times.
"Nuclear is but one of many diversifications of energy sources," the CDC said.
"Although electricity is a concern – plans, strategies, and concrete implementation phases are well underway to both meet current and future demand – we are comfortable that these processes will yield the desired effect."
It said Coega is ahead of the curve, both actively lobbying for diverse sources of energy supply and maintaining our current infrastructure to meet with both current and future investors’ demands.
