The proposed new company, dubbed Generation 2, will take over three Eskom coal power plants that are set for decommissioning and convert them to gas power stations, according to Mineral Resources and Energy Minister Gwede Mantashe. | Fin24
South Africa is forging ahead with a plan to create a new state-owned power company by converting three coal-fired plants into gas-burning generators to ease the nation’s energy crisis.
South Africa has been struggling to boost generation since 2008. At least five rounds of bids for renewable power projects haven’t added sufficient capacity, while an emergency plan to add electricity is mired in legal wrangles. A new state electricity generation company is yet another attempt to find a solution to the crisis that has hampered economic growth in Africa’s most-industrialised nation.
Money for the new power generation company and its projects will come from a combination of the state, the market and investors."Money follows ideas," Mantashe said.Once the proposal is approved, the government will invite engineering, procurement, construction companies. The cost of converting the plants would be determined at that point, said Maduna Ngubeni, the department’s head of projects.
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