[miningmx.com] — ESKOM has contracted five independent power producers to commission privately generated electricity to boost its energy supply.
At least 215 megawatts is already being fed to the power grid while an additional 400 megawatts is expected to be operational by March next year.
Steve Lennon, a divisional executive with Eskom, said four contracts of the six projects had already been finalised and approved by the National Energy Regulator of South Africa (Nersa).
Lennon, who was addressing the Parliament’s trade and industry committee in Cape Town, said: “Business and Eskom’s assessment is that the potential for more co-generation projects is there. Possibly 1 000 to 3 000MW based on various studies. Some of this appears to be self generation, rather than go-generation.”
He said the remaining two contracts had been sent to the producing companies for approval following the conclusion of negotiations.
Lennon told the committee that the current price trajectory and possible energy conservation measures are already providing an incentive for businesses to do this, removing the need for subsidy.
The renewable energy feed-in tariff also provides for about 1 025 megawatts and just over 1 000 megawatts from the open-cycle gas turbine programme by 2013.
Nersa is expected to finalise the final power purchase agreements and the criteria to be used by the ‘single buyer’ office in Eskom’s system operations division within the next two weeks.
“Eskom will commence the procurement process once the power purchase agreements and selection criteria are issued,” Lennon said.
