In order to address the country’s energy issue, South Africa is moving on with a plan to establish a new state-owned power firm by converting three coal-fired reactors into gas-burning units.
The majority of South Africa’s electricity is produced by the state-owned Eskom Holdings SOC Ltd., which has been forcing rolling blackouts since 2008 because its outdated and badly maintained infrastructure cannot keep up with demand. According to Energy, Minerals and Resource Minister Gwede Mantashe, the three plants that are scheduled for decommissioning would be taken over by the planned new business, Generation 2.
“If we re-purpose them into gas power stations, we will save a lot of life in South Africa in terms of energy,” Mantashe said in an interview in his office in Pretoria, 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 battled to expand generation. Although there have been at least five rounds of bidding for renewable power projects, not enough capacity has been added, and a last-minute attempt to supply electricity is bogged down in legal disputes. A new national electrical corporation is an additional effort to address the crisis impeding economic expansion in Africa’s most industrialized country.
