South Africa is taking decisive steps to combat its persistent energy deficit, which has been hampering economic growth. Electricity Minister Kgosientsho Ramakgopa announced that the country is expediting plans to generate 3 gigawatts (GW) of power through gas-fired projects, signaling a shift towards cleaner and more reliable energy sources.
The ongoing daily power cuts in South Africa, caused by the frequent breakdowns in the aging coal-fired plants operated by state power utility Eskom, have taken a severe toll on the nation’s economic stability. To resolve this issue, officials estimate that a significant increase in generating capacity, potentially up to 6 GW, is needed to eliminate the rolling blackouts that have been a persistent challenge.
To address this energy crisis, the government has laid out an ambitious plan. This includes the development of a 2 GW mobile facility and a 1 GW plant located near Coega in the Eastern Cape. These projects are already progressing to the procurement stage, reflecting the government’s strong commitment to swift implementation.
A critical focus within these projects is the establishment of 3,000 megawatts of gas-fired power generation. Minister Ramakgopa emphasized that gas is a cleaner energy source with lower emissions compared to coal. Accelerating the adoption of gas power generation is seen as a pivotal move for the environment and the economy alike.
It’s important to note that the government’s initial proposal for a 3 GW gas-fired power plant in Richards Bay, on the east coast, faced resistance from environmental groups advocating for an expedited transition to renewable energy sources, aligning with the global trend of reducing reliance on polluting fossil fuels.
However, Minister Ramakgopa previously indicated in June that South Africa anticipates more than 5.5 GW of new renewable energy projects coming online by 2026. This underscores the government’s dedication to cleaner energy while addressing the nation’s energy challenges.
Furthermore, South Africa is actively exploring the possibility of extending the lifespan of the 40-year-old 1.94 GW Koeberg nuclear plant by an additional 20 years, extending its operation beyond the initially scheduled shutdown next year. This multifaceted approach reflects South Africa’s determination to secure a stable energy supply, promote sustainability, and drive economic growth.
South Africa’s journey towards a more reliable and sustainable energy future is gaining momentum, providing hope for a brighter and more resilient South African economy in the coming years.
Photo( Renergen)
By: Montel Kamau
Serrari Financial Analyst
5th November, 2023
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