Eskom Works on Power Supply Plans, Including Hydroelectric

Eskom is in talks with Mozambique on four potential power projects that could generate up to 4,650 megawatts (MW). Eskom is looking at four options from which to buy power said Andrew Etzinger, the Manager for Investment Strategy at the South African state-owned utility company.

It is likely, rather than actually investing in the projects, Eskom will negotiate a long-term power purchasing agreement. The South African firm is likely to leave it to its counterpart in Mozambique, EDM, along with the Mozambican government, to raise funding to build the power plants.

Potential generation projects include a hydroelectric plant on Cahora Bassa’s north bank, which could generate 850MW, and another plant further down the river at Mphanda Nkuwa, which could produce 1,300MW.

While the country needs the power projects immediately to fight against its continuing power supply problems, it is unlikely that electricity supplies from the projects would be available before 2012. “It would be a minimum of five years,” Etzinger said.

The project that has the potential to be developed the fastest is a gas-fired power station near the Temane gas field in Inhambane province, which could produce 1,000MW. This would be commissioned at the earliest by 2011, Etzinger said.

Another project under discussion is a 1,500MW coal-fired plant at Moatize, in Tete province, where a coalfield is being developed to export coal.