South Africa’s Energy Crisis

Against strong criticism for exporting electricity to neighbouring SADC countries, Leo Dlamini of Eskom, the joint NBF Energy Sector Head (alongside Dion Govender of Siemens), has defended the exports by pointing out that only 1,500 MW are exported (950 MW of which to the aluminium smelter in Mozambique alone) and no more than 350 MW to any one country, which represents up to 85% of the electricity needs in countries like Namibia, Swaziland and Botswana. An equal amount of electricity is imported from DRC, Mozambique and Zambia. Stopping the export would erode the receiving country's economies while only preventing 25% of the load-shedding in South Africa (and the receiving countries), and possibly disrupt the agreements to import electricity into South Africa.

Eskom has also been very active in educating the public on energy-saving tips ranging from replacing old incandescent light bulbs with 80% more efficient compact fluorescent light bulbs to using smaller appliances and placing small geysers closer to where hot water is needed so as to prevent heat loss from hot water that otherwise travels through long distances in pipes.

To help explain the electricity crisis, Eskom issued a Power Report to organizations stating that the causes were increased demand, insufficient capacity and unexpected shut-downs. In order to perform the necessary maintenance and refurbish old and moth-balled power stations, planned outages (load-shedding) took place in rolling parts of the country, and will continue to do so for up to another eight years. Eskom does try to prevent load-shedding by exhausting its emergency reserves of gas and hydro power and buying up excess electricity produced by large industrial customers.

During this period new power stations will be built (8 years for a coal-fired station) and gas turbine stations will be expanded (2 years). In addition, the French government signed an agreement with the South African government on 29 February to aid in the construction of a wind farm off the West Coast near Cape Town, as well as to engage the services of Alstom to construct a 4,740 MW coal-fired power station in Mpumulanga. This comes on the back of a previous deal concluded with Alstom in October 2007 to refurbish the 2,100 MW Arnot power plant, as well as other deals to un-mothball Grootvlei and Komati plants that will together provide a further 2,161 MW by 2010.

In the meantime, Eskom recommends that while it continues to facilitate discounts on certain solar-powered appliances that consumers make use of alternate sources of energy, use less electricity, and share in contributing to the collective solution, emphasizing that this is a national campaign welcoming contributions from all parties.

Westcor

The Westcor initiative (Western Power Corridor Project – a joint venture between the state power utilities of DRC, Angola, Namibia, Botswana and South Africa) was launched in 2004 as a flagship NEPAD project to provide additional, cost-effective (2 US cents/kWh) and eco-friendly power to all five countries through a series of hydroelectric projects in the DRC, Angola and Namibia. One of the main objectives is to increase capacity in response to the expected 25% increase in demand in the region from 2004 to 2010, and more in subsequent years. After successfully passing the prefeasibility stage for a 4,320 MW power station, the project has been ramped up to meet 2010 construction demands, with advertisements placed in all five countries calling for Expression of Interest from consultants and advisors, and the recruitment of the first key operational staff already underway to include engineers, a finance manager, an HR manager, a lawyer, etc. The detailed designs and feasibility study will commence shortly to provide input to the first financiers’ workshop being hosted by the World Energy Council in London on 21-22 April 2008. Power is expected to start flowing from 2011 and expected completion of this first project is 2015.