Eskom receives 5 000 MW in cogeneration offers
South African power utility Eskom has received expressions of interests for more than 100 cogeneration projects, which, if implemented, could add 5 000 MW to South Africa's energy mix.
It has also emerged that these proposed projects exclude discussions for a material cogeneration opportunity that could arise at Sasol's Secunda complex, in Mpumalanga.
Eskom reports that there has been considerable interest in offering projects to the utility and that a draft power purchase agreement has been issued.
This interest is underpinned by the fact that South Africa's reserve margin has dipped well below 10% and is currently running at even lower levels (possibly as low as 5%) given the fact that much of the fleet is undergoing summer maintenance.
Eskom has confirmed with Engineering News that it is hosting a "bidders conference" for potential participants in the so-called ‘Pilot National Cogeneration Project' on Wednesday, November 7.
The day is reportedly designed to share information with the bidders participating in the project and with those that responded to Eskom's request for proposals by the October 4 deadline.
Final bids are expected by February and the utility's intention is to evaluate these expeditiously so that some of the projects can begin moving through the various environmental and economic approval processes.
It has emerged that some of the projects are renewable in nature, and that most of the proposals involve small projects able to produce between 10 MW and 50 MW. But there were about ten projects involving more than 100 MW.
Engineering News has reported previously that petrochemicals group Sasol is considering a 300-MW cogeneration project, which would reduce Secunda's gas flaring, as well as its reliance on the power grid.
The group is in advanced negotiations for the securing of specially designed turbines that will enable Secunda to convert flared gas from Secunda into electricity - the petrochemicals complex currently draws about 1 200 MW of electricity continually from the national grid.
