South Africa is forging ahead with a plan to create a new Eskom, with energy minister Gwede Mantashe also announcing plans for a new nuclear power station.
forging ahead with a plan to create a new state-owned power company by converting three coal-fired plants into gas-burning generators to ease the nation’s energy crisis.
“If we repurpose them into gas power stations, we will save a lot of life in South Africa in terms of energy,” Mantashe said in an interview, adding that it was “urgent” to create the company. The ministry plans to invite engineering firms to study the plants and offer advice, he said.South Africa has been struggling to boost generation since 2008.
Still, procuring inexpensive gas for the converted plants may prove to be a challenge. Russia’s war on Ukraine has countries across the world scrambling for the fuel, with Europe even considering rationing. US natural gas futures, which have more than doubled this year, rose above US$9 per million British thermal units at 8.25am in London.Opposition parties are also sceptical of the government’s plans, given its poor track record in overseeing state-owned companies.
Almost a third of Eskom’s plants will reach end-of-life as early as 2023. To replace the plants and add capacity needed to meet rising demand will take years and cost more than R1-trillion, according to government estimates.Money for the new power generation company and its projects will come from a combination of the state, the market and investors. “Money follows ideas,” Mantashe said. “If you come up with a sustainable proposal, and it makes sense, investors will come.
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