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South Africa: Eskom receives 5 000 MW in cogeneration offers

South African power utility Eskom has received expressions of interests for more than 100 cogeneration projects, which, if implemented, could add 5 000 MW to South Africa's energy mix.
It has also emerged that these proposed projects exclude discussions for a material cogeneration opportunity that could arise at Sasol's Secunda complex, in Mpumalanga. Eskom reports that there has been considerable interest in offering projects to the utility and that a draft power purchase agreement has been issued. This interest is underpinned by the fact that South Africa's reserve margin has dipped well below 10% and is currently running at even lower levels (possibly as low as 5%) given the fact that much of the fleet is undergoing summer maintenance.

It has emerged that some of the projects are renewable in nature, and that most of the proposals involve small projects able to produce between 10 MW and 50 MW. But there were about ten projects involving more than 100 MW.


Additional information:
News date: 05/11/2007

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