Heavy rains over the last few weeks in South Africa have hampered its power generation, but Eskom’s CEO warns that power generation is going to be strained until 2013.
Brian Dames said that since October the risk of power outages has increased. He said, "Early and heavy rainfall in Mpumalanga, Limpopo, and Gauteng have required us to activate contingency plans to minimize disruptions to coal production and logistics.” As rains make it more difficult for transportation, it also soaks coal which has even caused a delay in coal supplies from BHP Biliton’s Energy Coal South Africa unit.
An unexpected shutdown at the Koeberg plant has also affected South Africa’s power supply, but Eskom is currently in the process of upgrading power plants to increase performance.
This potential obstacle in coal-fired power generation is all the more reason for Eskom to integrate more renewable energy into the power mix. The state-owned utility hopes to provide more stability for electricity demand, and adding 500 MW to the grid is top priority. "This can be ramped up to 2,000 MW in the next three to six years," he said.
Eskom will invest R10 billion in two projects, a 100-MW wind farm and a 100-MW solar thermal plant, in order to cut back on its coal reliance. The wind project is expected to be online by 2012 with the solar thermal plant to be commissioned by 2015, according to Eskom’s Managing Director Steve Lennon.
"There is uncertainty, as there is every year, about how fast demand for electricity will ramp up next week as South Africa returns to work. During 2010 demand climbed back to 2007 levels for the first time since the financial crisis, and it is expected to increase by up to 2% in 2011 compared to 2010," Dames said.
Eskom is attempting to set up independent power producer (IPP) agreements for its medium-term power purchase program (MTPPP) that will shore up energy generation projects. "Eskom is ready to connect and pay the IPPs," said Dames. However, the utility has said it was ready for IPPs for over a year now and although an IPP has still yet to be introduced.
"We are looking at innovative ways to reduce or reschedule demand. But for the next two years our basic message is going to be – If you are not using it, switch it off." Dames said.
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