South Africa Power Report Q2 2016
BMI View: South Africa's conventional power sources - thermal and nuclear in particular - will be hamstrung by operational delays and financial constraints. The majority of growth will come from nonhydropower renewables, forecast to grow at an annual average of 10% throughout our 10-year forecast period, boosted by a strong regulatory environment. The addition of the Ingula hydropower plant lowers the risk of load shedding during 2016.
Latest Updates And Structural Trends
We have upgraded our forecasts for the South African power sector, increasing generation in 2016 to 250 terawatt hours (TWh), which we forecast will increase to 304TWh in 2025. The commissioning of new hydropower plants and the strong project pipeline underpins this forecast.
Unit three of the Ingula hydropower plant has been inaugurated into the South African power grid, adding a total of 333MW of capacity. Eskom has stated that this will alleviate pressure on the power grid and allow room for maintenance on other power plants. The complete hydropower plant, consisting of four 333MW units is forecast to be operational by the beginning of 2017.
Eskom has stated that the addition of the Ingula hydropower plant will greatly reduce the risk of load shedding during the winter months
The De Aar solar power plant has been commissioned in March and will be adding 175 megawatts (MW) of solar power capacity to the grid. The power plant is estimated to provide power to up to 75,000 homes
The Bokpoort Concentrated Solar Power (CSP) has been inaugurated, adding 50MW to the power grid. The Bokpoort CSP was constructed by Saudi Arabian firm, ACWA Power.
The South African trade and industry department has stated that the East London Industrial Development Zone (ELIDZ) currently has a growing pipeline of non-hydropower renewable energy investments totalling up to ZAR2.5bn (approximately USD162mn).
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