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Six ways SA is tackling its electricity crisis

Cape Town – The government has established a “war room” to tackle energy shortages that have led to managed blackouts and contributed to the economy’s contraction in the second quarter.

About 95% of SA’s electricity is supplied by Eskom, which had installed generating capacity of 44 262 megawatts (MW) at September 2. More than 85% of the utility’s output comes from coal-fired plants.

Here’s what’s being done to bolster power supply and diversify the energy mix:

1. Coal

Eskom is building two new coal-fired plants - Medupi and Kusile - that will jointly add 9 564 MW of power to the national grid. Medupi’s first 794 MW unit came online on August 23. The initial output from Kusile’s first 800 MW unit is expected in August 2017 and from Medupi’s second facility a month later. The plants, which will cost a projected R223.5bn, are running about four years behind schedule.

The feasibility of building a third new coal- fired plant, with an initial budgeted cost of R111.1bn, is being investigated.

Private companies have been invited to bid for contracts to supply 2 500 MW of coal-fired power. The deadline to submit proposals closed August 31.

2. Nuclear

The government plans by the end of March 2016 to award bids to build power plants that will supply 9 600 MW of atomic energy to the grid. While it wants the first facility to be operational in 2023, it remains unclear how it will foot a bill for as many as eight reactors that could run as high as R1.4bn.

3. Hydropower

Work on the R25.9bn, 1 332 MW Ingula pumped storage facility is nearing completion, with its four units scheduled to be connected to the grid between May and August next year.

South Africa has signed a treaty with the Democratic Republic of Congo to buy electricity from the planned Grand Inga hydropower plant. Under the accord, South Africa is guaranteed a minimum of 9 540 MW and a maximum of 13 060 MW, with further supplies subject to negotiation. Construction work has yet to begin on Inga, which is expected to eventually cost about R1.4bn and generate 40 000 MW of electricity.

4. Gas and diesel

The government is seeking bids from private companies to supply 3 126 MW of power generated from gas.

Eskom is revamping two existing open-cycle turbines to enable them to use gas as well as diesel. The project will probably be completed in 18 months and cost about R1.8bn.

A 300 MW diesel plant in the Eastern Cape province is due to come online in October, while a 700 MW facility in the KwaZulu-Natal is scheduled for completion in May 2016. The plants will be used during peak demand periods.

5. Wind and solar

Independent producers have been awarded contracts to supply more than 6 000 MW of solar- and wind-generated power to the grid. The government intends procuring a further 6 300 MW of green electricity.
Eskom’s 100 MW Sere wind farm became operational in February this year.

6. Cogeneration

Eskom is buying 827 MW of power generated during industrial processes by private companies.

The government has called for bids from companies to supply it with a further 800 MW of co-generated power.

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