SA may import more power from neighbours

[miningmx.com] — ESKOM is considering importing more electricity from its neighbours as power in Africa’s biggest economy is expected to remain tight for at least the next two years, the state utility’s chief executive said on Monday.

CEO Brian Dames has said supply is likely to remain tight in the world’s top platinum producer until the first of two new power stations under construction comes on stream in 2013 and that the country will not be fully in the clear until 2015.

“In looking at how to deal with this power system issue … we are certainly looking at all options, all the way from imports from the region to better coal quality,” Dames said at a quarterly status update.

Dames said the utility had identified possible cross-border generation, with a target of 100 MW by July this year, to ease the short-term strain.

The countries on South Africa’s borders have nowhere near the electric generation capacity of its richer neighbour and little excess power to export.

Eskom currently imports hydro-power from Mozambique.

South Africa’s national grid nearly collapsed in early 2008, forcing mines and smelters to shut for days and costing the country economy billions of dollars in lost output.

The power crunch should be eased when the 4,800 MW Medupi coal-fired power station is up and running. The start date has been delayed to May 2013 from late 2012 due to construction problems, putting further strain on the grid.

Eskom has had to impose hefty tariff increases to pay for new power stations. In 2010 Eskom was granted three annual increases of 25, and the national energy regulator has said Eskom may apply for two additional hikes to pay for new power plants.

Dames said the utility was yet to decide the rate of its next tariff increases.