Cresco warns of potential energy security risk if diesel supply for OCGT is constrained

South Africa’s power utility Eskom, which uses diesel in its open-cycle gas turbine (OCGT) generators to meet peak demand, may have to start implementing Stage 1 or 2 loadshedding in a scenario of constrained diesel supply, warns financial advisory firm Cresco Project Finance Energy Strategy advisory partner Dominic Goncalves. About 57% of South Africa’s total refined diesel supply is shipped through the Strait of Hormuz, and only two of five local refineries in South Africa are operational.
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Eskom and ferrochrome producers strike 62c/kWh deal, with Nersa process to follow

Electricity utility Eskom has announced the conclusion of a much-anticipated 62c/kWh electricity tariff deal with ferrochrome producers Glencore-Merafe Chrome Venture and Samancor Chrome. The State-owned company also reiterated that the concluded agreements remained subject to approval by the National Electricity Regulator of South Africa (Nersa).
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Vodacom calls for collective action to decarbonise Africa’s digital economy

A new research report published by telecommunications group Vodacom highlights Africa’s high vulnerability to climate change, with decarbonisation efforts hampered by critical energy challenges. The White Paper, ‘Decarbonising Africa’s Information and Communications Technology (ICT) Sector’, shows that weak grid infrastructure, financial constraints within utilities, complex regulatory environments and unreliable electricity supply continue to slow the adoption of renewable energy across the continent.
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Diesel generation remains key energy source

Amid a challenging energy landscape, diesel-based power generation remains one of the predominant standby energy sources across the African continent, despite diesel generator demand slowly plateauing, says global diesel and alternative fuel generators manufacturer Cummins power generation markets Europe, Middle East, India and Africa executive director Ignacio Gonzalez. Although there is a need for a “sensible balance” between global decarbonisation efforts and Africa’s need for reliable power, in practice, energy security continues to “come first” across most African markets.
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Generators continue to offer value

Amid South Africa’s evolving energy landscape, generators and standby power solutions remain highly relevant, provided that they are deployed intelligently through proactive fuel and load management, and hybrid solutions, says UK based diesel and hybrid power solutions manufacturer AJ Power business development director Andrew Pigott. While a significant drawback of using generators is the high costs associated with diesel fuel, the key driver for generator use is mitigating downtime rather than avoiding associated costs.
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