Provincial focus
The Eastern Cape has been identified as one of the country’s key energy hubs
The Cogea Industrial Development Zone (IDZ) is set to become one of the country's key energy hubs, providing a sustainable energy mix for the country. With an abundance of natural resources such as wind and sunshine, the Eastern Cape has been identified as one of the provinces with linkages in the Independent Power Producer (IPP) programme.
The programme is part of a complementary energy mix including renewables (solar and wind), natural gas and nuclear energy.
The IDZ already boasts the Dedisa Power Peaking Plant, a gas-to-power plant based at the IDZ, which is one of the country's first crop of IPPs.
The power generated by this open cycle gas turbine power plants is sold to Eskom under a Power Purchase Agreement.
At full capacity, Dedisa can supply a maximum of 324MW to the grid, which is enough power to supply over 53 000 homes.
During a recent visit to the IDZ, Energy Minister Mmamoloko Kubayi highlighted the important role it is set to play.
“Coega is a vibrant IDZ for the economy. Eastern Cape is blessed with an abundance of resources to demonstrate how a diverse energy mix can transform and industrialise our economy.The Coega Development Corporation (CDC) is a critical partner for the Department of Energy.
“The role CDC plays in energy mix is important.Working together in this partnership we'll be able to see quite a developed energy sector. For us it will be very important to see a gas plant come in through Dedisa,” said Minister Kubayi.
Getting energy supply right and providing a
sustainable mix of energy will have a positive ripple effect in powering South Africa's economy for future growth, she said.
“As a department, moving forward not only around renewable, nuclear and coal, but we (also) have to see gas as one of critical ways to generate energy for us.”
The Minister stressed that energy is one of the backbones of the economy.
“If as a country you can't get your energy sector right there's no way you can see economic growth. For transport to survive they need energy, for human settlements to survive they need energy, within the health sector hospitals need energy. If we get energy and resource wrong we are doomed for the coming years,” she added.
Key strategic partners
Eastern Cape MEC for Economic Development Sakhumzi Somyo said Coega, as well as the provincial and national government, would work together to ensure the success of the national energy plan.
“These are key strategic partners to realize that energy mix. Coega has done a lot of work and as a result we have a running model through Dedisa, which is a power plant using diesel and is also equipped for gas-to-power generation,” he explained.
The MEC also highlighted the importance of the province localising energy projects for the benefit of the local communities.
“Indigenous (natural) gas that is extracted in this province must first be beneficiated on our shores before any export of the raw resource takes place.
“We have been alive to this and have been doing extensive work to ensure local economic participation in the gas value chain,” he said.
Strategic economic hub
Mayor of Nelson Mandela Bay (NMB) Metro Athol Trollip said being a “medium-sized” city, having a facility such as Dedisa made NMB a strategic economic hub for the country.
“Medium-sized cities provide economic growth – that has become a phenomenon all over the world. We are very aware that this facility, together with the CDC and the Port of Ngqura being situated in the city, means we have a very strategic economic branch”.
He added that there was massive potential for the city.
“I am encouraged by the Minister's passion and innate understanding of what power means to a city in growing the economy and the importance of having diversified energy provision.
“It will enable us to promote the city and region as having a sustainable and affordable energy provision. Once you can do that and have these kinds of facilities, such as the Dedisa plant, to attract import and export investment, the city can grow,” said the Mayor.
Dedisa Chief Executive Arnaud de Limburg said currently Dedisa operates on diesel and conversion to gas will help reduce the cost of energy production.
“It goes back to the issue of tariffs and the cost of electricity.The generation part of electricity must not be expensive otherwise those costs goes to consumers.
“Conversion to gas will not be difficult because currently the two turbines are designed to operate on both gas and diesel. Using gas instead of diesel will also reduce emission levels and the amount of water needed is less for gas.”
He added that converting to gas would present many opportunities for local manufacturing and construction.
“We have been ... doing extensive work to ensure local economic participation in the gas value chain.”