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South Africa: More Power Cuts Ahead As Eskom Unveils Winter Plan
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Business Day (Johannesburg)
15 May 2008
Posted to the web 15 May 2008
Siseko Njobeni
Johannesburg
ESKOM will unveil its winter plan next week, as it looks set to miss its target of increasing coal stockpiles at its power stations to 20 days' supply this winter.
The continued vulnerability of the national grid has raised fears of more electricity supply disruptions in winter.
Eskom's decision to suspend load shedding on the eve of winter heightened concerns, despite the utility's promise that it had suspended load shedding because of power saving by municipalities.
Speaking to the French-South African Chamber of Commerce and Industry , Eskom GM for demand side management Andrew Etzinger said yesterday the winter plan would address several factors, including coal.
Poor coal quality and stocks contributed to Eskom's woes earlier this year when the national grid was on the brink of collapse.
Eskom has been improving coal stockpiles at its power stations. Etzinger said stockpiles were at an average of 15 days. No station had less than 11 days' stock, he said. Eskom had hoped to increase coal stockpiles to a 20-day supply at all power stations by this winter.
Etzinger said Eskom had seen an average saving of about 7% since the start of the scheduled load shedding.
But he did not rule out the possibility of unscheduled load shedding in the future. "There will be days when our system will be tight," he said.
A cold front over a three- to four-day period would be enough to cause "a massive" spike in electricity demand.
A breakdown in the utility's systems would also put pressure on the national grid, raising the prospects of emergency load shedding. "We are still very critical," he said.
Etzinger said SA was likely to come through this winter without emergency load shedding.
"Last winter we did not have emergency load shedding and we are in a better position this year, compared to last year."
Eskom would go ahead with a "conservation phase" of its electricity emergency response plan. The phase would include incentives and penalties and is expected to start in July.
Meanwhile, the African Development Bank has lent $500m to fund Eskom's R450bn capital expansion programme.
"A non-sovereign guaranteed long-term loan in the amount of $500m was granted to Eskom by the bank, with a repayment period of 20 years including a grace period of five years," said the bank's annual report for 2007.
The annual meeting of the board of governors of the bank started in Maputo yesterday.
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"The loan is intended to assist government in achieving the GDP (gross domestic product) growth target of 6% per annum from 2010," the report said. With Reuters
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