The Herald (South Africa)

Electricit­y minister eyes Bay power plant

Ramokgopa wants Dedisa to be a gas-powered site and relieve pressure on country’s grid

- Andisa Bonani bonania@theherald.co.za

With plans for a new liquefied natural gas (LNG) storage and regasifica­tion plant at the Coega special economic zone, electricit­y minister Kgosientsh­o Ramokgopa is pushing to convert the Dedisa Peaking Power plant currently fuelled by diesel into a gas-powered site.

When the R3.5bn peaking plant was built, it was designed in such a way as to make the conversion from diesel to gas easier.

Peaking plants are switched on during peak periods, unlike base load plants that run continuous­ly.

Running the plant on diesel is a costly exercise, one that Ramokgopa says would hit the consumer the hardest.

The Herald previously reported on a R13.6bn LNG storage and regasifica­tion project mooted for the Port of Ngqura, which was expected to create 400 jobs during constructi­on and 100 permanent jobs once completed.

Ramokgopa wants the Dedisa Peaking Power plant to help relieve pressure on the country’s electricit­y grid by contributi­ng towards the generation of one gigawatt of electricit­y that would feed into the national grid.

The Dedisa Peaking Power plant, when operationa­l, generates 335 megawatts (MW) of electricit­y and if combined with its sister plant, the Avon Power plant in KwaZulu-Natal, the two would have a generation capacity of more than 1,000MW, which equates to a single stage of load-shedding.

Dedisa already supplies Eskom when needed at short notice to assist in stabilisin­g the grid.

During a site visit at the plant yesterday, Ramokgopa announced that he wanted the power station to be recommissi­oned and turned into a gaspowered station, which is 50% less expensive than diesel.

Ramokgopa was accompanie­d by Eastern Cape economic developmen­t MEC Mlungisi Mvoko and Bay mayor Gary van Niekerk.

He said it was important that the government provided

some level of relief to consumers and the national power grid.

“This exercise is part of our search for additional megawatts to ensure we get rid of load-shedding.

“Our conversati­ons [with Dedisa] were about understand­ing the appetite of the operators to ensure we convert the plant from diesel to gas, which we will have further discussion­s on,” Ramokgopa said.

“The peaking power plants use diesel as a fuel source which is very expensive, and as you’ve seen the latest tariffs, the more we draw on diesel the greater the burden we are placing on the consumer — a matter that has implicatio­ns on the tariff structure.”

It is understood that the Dedisa Peaking Plant was intended to be used during the peak stages but due to the country’s persistent electricit­y challenges, it was used more regularly, demonstrat­ing its efficiency and capacity to supply the national grid with electricit­y.

Ramokgopa said engagement­s with Dedisa enabled them to achieve and realise a number of things, including that gas is 50% cheaper than diesel, it requires less water which is one of the key ingredient­s in the generation of electricit­y as well as the possibilit­y of improving the load factor.

“This means the optimal and continual operation of this power station will assist us to resolve load-shedding not only in the peak period but throughout the day.”

Ramokgopa said the Dedisa technical team would come up with durable solutions in a few weeks which would form part of an announceme­nt to the country of the government’s additional measures to ensure it achieves energy security.

Van Niekerk said it was important for the city to pull its weight in ensuring it worked with the national government to curb the electricit­y challenges.

“Our biggest headache as a city is the exorbitant electricit­y losses that stem from theft.

“This issue formed part of

our engagement­s with the ministry and Dedisa.

“The stealing of electricit­y cuts across all areas of the metro and it affects everyone, including the paying customers.”

Van Niekerk said the city would make an announceme­nt later this week in terms of its revenue enhancemen­t strategy.

“I’m also pleased to say that there will be another announceme­nt by the end of April from the Dedisa technical team regarding the timeline as to when the operations will commence so that we and the rest of the country can benefit from it,” he said.

Speaking on the sidelines of the engagement­s, Mvoko said the provincial government looked forward to the gains of recommissi­oning the plant.

He said one of the biggest challenges the province faced was that it was home to 80% of the component suppliers to the automotive sector in SA — the majority of which were based in the Bay.

“Our problem is that we

 ?? Pictures: WERNER HILLS ?? POWERING UP: During the Dedisa Peaking Power plant site visit yesterday are, from left, ENGIE Peakers Operations chief executive Christo Spammer, electricit­y minister Kgosientsh­o Ramokgopa and Eastern Cape economic developmen­t MEC Mlungisi Mvoko
Pictures: WERNER HILLS POWERING UP: During the Dedisa Peaking Power plant site visit yesterday are, from left, ENGIE Peakers Operations chief executive Christo Spammer, electricit­y minister Kgosientsh­o Ramokgopa and Eastern Cape economic developmen­t MEC Mlungisi Mvoko
 ?? ?? ADDITIONAL SUPPLY: The Dedisa Peaking Power plant in the Coega special economic zone
ADDITIONAL SUPPLY: The Dedisa Peaking Power plant in the Coega special economic zone

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