Author Archive for: Engineering News

Eskom’s electricity tariffs are poised to rise by 8.76% on April 1 next year instead of the 5.36% approved previously, and by 8.83% instead of 6.19% in 2027/28 after the National Energy Regulator of South Africa (Nersa) reached a settlement agreement with the State-owned entity in relation to errors made by the regulator in its sixth multiyear price determination (MYPD6) revenue decision. Eskom legally challenged the MYDP6 decision in July, arguing that the erroneous way in which Nersa calculated the regulatory asset base value for the generation business, and which affected the depreciation amount approved, had left it with a revenue shortfall of a R107-billion.

Concern continues to be raised over the technical and financial criteria being used to prequalify bidders for South Africa’s inaugural independent transmission project (ITP) tender, which critics warn will marginalise domestic industry – notwithstanding a stipulation that there should be a minimum 49% South African equity participation. Government has initiated a two-stage ITP procurement process, with the request for qualification (RFQ) documentation currently available for a non-refundable fee of R150 000 and with a submission deadline of September 23 having been set.

Energy and chemicals group Sasol reports that construction of its coal destoning plant has been completed and that the facility, which should be ramped up to full production by December, is producing coal with a ‘sinks’ content (rock fragments or other impurities) of between 0% and 1.5%. The brownfield project has involved a repurposing of the Twistdraai export coal plant and an investment of less than R1-billion.

Independent power company Globeleq and its project partner, energy supplier African Rainbow Energy, have reached financial close on the 153 MW/612 MWh Red Sands battery energy storage system (BESS) in South Africa. The project – which is located near Upington, Northern Cape – will span about 5 ha and supply electricity to State-owned electricity utility Eskom’s subsidiary National Transmission Company South Africa (NTCSA), under a 15-year power purchase agreement.

State-owned electricity utility Eskom’s Koeberg nuclear power station was recently licensed to operate its Unit 1 for another 20 years, with global consultancy SRK Consulting South Africa playing a role in updating the site investigation reports – specifically the Site Safety Report (SSR) required by the National Nuclear Regulator (NNR). These studies were part of a range of updates undertaken by SRK, that need to be conducted every five to ten years, says SRK principal consultant Derry Holmes.