Mantashe unveils 8 independent power-supply bidders to boost Eskom capacity

JOHANNESBURG - Government has unveiled eight preferred independent power producers to produce 1 845 MW additional electricity to support Eskom, which is currently battling rotational load shedding induced by supply constraints.

Mineral Resources and Energy Minister Gwede Mantashe said the projects are expected to inject a total of R45 billion private-sector investment to the economy. Bidders are required to have 51 perccent South African entity participation and 41 percent black ownership.

The bidders, which will provide power generated by solar energy, wind, liquified natural gas and battery storage, are: ACWA Power Project, Karpowership SA Coega, Karpowership SA Richards Bay, Karpowership SA Saldanha, Mulilo Total Coega, Mulilo Total Hydra Storage, Oya Energy Hybrid Facility, and Umoyilanga Energy.

The renewable electricity produced by these companies is expected to flow to the grid from August 2022, providing a much-needed capacity boost to Eskom, which has for many years been crippled by outages which has been blamed for slowing economic growth.

Eskom, which supplies the bulk of the electricity currently used, this week forecast that it would have a shortfall of 4. 000 MW over the next five years.

Mantashe said the added renewable energy is meant to "supplement Eskom electricity supply" instead of merely waiting until the power utility's operational challenges are resolved.

"If you add megawatts, you will see that we are supplying an equivalent of almost two power stations of energy, and we are going to grow that capacity ... we are concerned about the situation, that is why we think this programme is urgent."

It is envisaged that power from these projects will be connected to the grid from August 2022.