Calling private power producers
10 December 2004
The government has invited independent power producers to register expressions of interest in building, owning and running two new power stations to meet South Africa's growing energy demands.
The new plants are expected to cost R6-billion to build and to be fully operational by the end of 2008.
According to Business Day, the introduction of independent power producers is aimed at bringing competition to power utility Eskom, which currently produces 95% of SA's electricity, and at further reducing the cost of SA's electricity, already among the cheapest in the world.
Nelisiwe Magubane, acting minerals and energy director-general, said that Eskom would be increasing its generational capacity, and would be involved in 70% of new energy production projects in the country, with independent producers being involved in the remainder.
According to Business Day, Eskom is expected to spend R48-billion in the next five years on building
new capacity, with the private sector expected to invest R23-billion.
Issuing the invitation, Minerals and Energy Deputy Minister Lulu Xingwana said applicants could register electronically to pre-qualify and then to bid for the exclusive rights to build, own and operate one or two power plants with a combined capacity of 1 000MW.
The power plant required would be oil-fired open cycle gas turbines operating as a peaking plant. The plants would ideally be situated along the country's coastline, although this had yet to be finalised, the minister said.
"Environmental impact assessments will be conducted together with the tendering process, so that by the time the tender is awarded this issue would have been taken care of and we will know where the plants will be constructed", she explained.
The invitations are aimed at local, international and black economic empowerment investors, turnkey contractors, operations and maintenance contractors, fuel suppliers and
insurers.
Magubane told Business Day that Alstom, CDC Globeleq, Tata Power Company and Siemens were among a number of international power producers that had already inquired about the projects.
Magubane said that while energy shortages in South Africa were only expected around 2010, the recent economic boom had led to increased energy use, prompting the government to revise that timetable.
"An estimated 12 000MW of peak generation capacity will be needed for the next 20 years, excluding the capacity provided by the return to service of a mothballed plant", Magubane said.
Full information, including registration instructions and the electronic registration form, are available on the following Department of Minerals and Energy web page.
SouthAfrica.info reporter
| 
