South Africa to Sign Fuel Deals to Tackle Power Crisis

The South African cabinet has announced it will sign a private sector coal-fired power plant deal to overcome electricity shortages. The cabinet also declared that the country will increase its diesel and gas imports.

As quoted in the market news:

A private sector-led coal-fired power plant programme will be launched by January 2015, which should add 2 500 megawatts of generation capacity, Minister in the Presidency Jeff Radebe told reporters.

The government also will announce on Monday details of 17 renewable energy projects, aiming at supplying an additional 1 000 MW, industry sources said.

Furthermore, Radebe said it would increase gas and disel imports to supply under-fuelled power plants, which could add another 500 MW to 2 500 MW.

The gas imports are expected to come mostly through an existing pipeline from neighbouring Mozambique, although a liquefied natural gas (LNG) terminal also has been discussed.

Minister in the Presidency Jeff Radebe stated:

The cabinet remains concerned over the disruptive effect the recent power outages are having on the daily lives of South Africans and its impact on households and businesses across the country.

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