Eskom looking into new power station that could cut load shedding by 3 stages
Eskom is working with National Treasury to create a funding plan for a 3,000MW gas-power station built in Richards Bay, KwaZulu-Natal.
As reported by City Press, Eskom is looking for a way to build the power station without borrowing any more money.
The National Energy Regulator of South Africa (Nersa) previously approved the project, but environmental groups are challenging the matter in court.
Eskom wants to add the Richard Bays power station to the grid by 2028, and its generation capacity of 3,000 MW would reduce load shedding by three stages.
The Energy Intensive Users Group, whose members include AngloAmerican, Sasol, and Rand Water, previously said that the gas-fired power stations will be incredibly important with the introduction of renewable energy sources.
It said that gas-fired power can be turned on and off at short notice and can help supplement the intermittent supply of solar and wind power.
However, Minerals Council SA said that it was worried about the cost as Eskom will have to pay for imported gas.
Considering the volatility of the rand – which recently hit an all-time low against the dollar – the price of producing electricity could fluctuate constantly, Minerals Council SA said.
Power battle
The proposed power station could also hit further bureaucratic issues following the new powers given to Electricity Minister Kgosientsho Ramokgopa.
In January 2022, Eskom approached Mineral Resources and Energy Minister Gwede Mantashe with the plan for the Richards Bay power plant, which he greenlit and sent to Nersa.
However, Manthashe’s powers were limited this week after President Cyril Ramaphosa finally gave executive powers to the electricity minister, nearly three months after giving him the job.
Ramokgopa will now have the power to direct the procurement of new generation capacity and ensure the security of supply.
He will thus have all the powers contained in Section 34(1) of the Electricity Regulation Act, which were previously held by Mantashe.
“This will provide a single point of command for the government’s efforts to close the shortfall in electricity supply,” the presidency said.
“The minister [Ramokgopa] will work full-time with the Eskom board and management to end load-shedding and ensure that the Energy Action Plan announced by the President is implemented without delay.”
Eskom will now also have to deal directly with three separate ministers – Ramokgopa, Mantahse and public enterprises minister Pravin Gordhan.
Gordhan oversees state-owned companies, such as Eskom, and oversees operations and administrative processes at the embattled power utility.
Moreover, Eskom will also have to deal with finance minister Enoch Godongwana who is handling the utility’s over R250 billion bailout and environment minister Babara Creecy, whose department can clear or deny energy production.
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