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<\/p>\nSouth Africa has entered a critical phase of revamping its sole nuclear plant and needs it to run according to plan to avoid deepening power cuts that are already at a record and wreaking havoc on the economy.<\/p>\n
The first of two units at the 1,940-megawatt Koeberg plant was shut down last month for refuelling and the replacement of its steam generators, work that\u2019s expected to be completed in early June, state power utility Eskom Holdings SOC Ltd. said in an emailed response to questions. The overhaul of the second unit is due to begin a few months later.<\/p>\n
The head of Eskom\u2019s nuclear unit quit last year, while the utility\u2019s chief executive officer will leave end of March, raising concerns that the company won\u2019t be able to stick to its schedule. The plant, which was originally set to operate until 2024, is one of Eskom\u2019s most reliable, making its return to service key to meeting the nation\u2019s energy needs.<\/p>\n
Located on the Atlantic coast about 27 kilometres (17 miles) north of Cape Town, Koeberg\u2019s first unit was completed in 1984 and the second the following year. The replacement of its generators was originally expected to be completed in 2021, but the project was dogged by delays. The revamp will extend its lifespan by two decades.<\/p>\n
\u201cFrequent delays in returning units from maintenance are a serious cause of concern,\u201d said Fanele Mondi, chief executive officer of the Energy Intensive Users Group, whose members include Anglo American Plc and Glencore Plc and account for about 40% of the nation\u2019s electricity consumption.<\/p>\n
The work on Koeberg \u201cis one such maintenance event that has to be done on time,\u201d as any delay will have a significant impact on the performance of the power system,” he said.<\/p>\n
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Africa\u2019s most-industrialized economy has been battered by chronic energy shortages since 2008 because Eskom, which supplies more than 90% of its power, can\u2019t meet demand from its old, poorly maintained and defective coal-fired plants.<\/p>\n
Its so-called energy availability factor, a measurement of how much capacity can be utilized, has dropped to below half, leaving the nation\u2019s grid increasingly vulnerable to collapse unless blackouts are implemented.<\/p>\n
Koeberg has been among the best performing of Eskom\u2019s more than two dozen power stations \u2014 its one unit ran uninterrupted for more than 400 days prior to the December shutdown, while the other has been operating for over 100 days. It is also the cheapest to run, with its electricity costing far less than that produced from coal- and diesel-fired plants.<\/p>\n
Even so, the need for the Koeberg overhaul \u2014 which has been planned since 2010 \u2014 has grown increasingly apparent.<\/p>\n
One of its units had to be taken off line in 2020 after a jellyfish clogged a water cooling system filter, and the following year, the plant dispatched its smallest amount of electricity in about two decades as it underwent scheduled maintenance. The revamp will reduce its output this year, and in 2024, Eskom said.<\/p>\n
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\nRising costs are a concern, given that Eskom has amassed R396.3 billion of debt and isn\u2019t generating enough electricity to cover its operating and interest costs.<\/p>\n
The overall price tag of extending Koeberg\u2019s lifespan was set at R20 billion in 2010, and Eskom said the final figure will be \u201cvery close\u201d to that amount. Even so, it has made a R2.7 billion provision for possible compensation claims associated with the steam generation project that may be related to the delays.<\/p>\n
The contractors\u2019 claims are still being processed, and any comment on the expected final amount would be speculation, the utility said.<\/p>\n