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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.

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.

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.

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.

Coega, Eskom to ensure new nuclear build leads to inclusive growth, skills development

State-owned special economic zone (SEZ) developer the Coega Development Corporation (CDC) and State-owned Eskom have established a three-year strategic framework for cooperation in support of South Africa’s Nuclear New Build Programme (NNBP). The two State-owned entities will collaborate across key focus areas, including infrastructure development, industrialisation and localisation, regulatory and site readiness, skills and supplier development, logistics coordination and socioeconomic investment initiatives.

Cape Town to buy power from waste-to-energy producers

The City of Cape Town (CoCT) intends to procure bulk electricity, depending on the commercial viability, of at least 5 MWac from waste-to-energy independent power producers (IPPs) through power purchase agreements (PPAs) for up to 20 years. For the contract to be commercially viable, the city says that the energy pricing must be lower than Eskom’s equivalent tariff, and emissions must also be lower than Eskom’s grid emissions factor.

Mulilo’s Mercury battery storage project achieves financial close

South African independent power producer Mulilo, which announced at the recent South Africa Investment Conference that it would be investing R15-billion in new renewables and storage projects, reports that it has achieved financial close on the 76 MW/304 MWh Mercury Battery Energy Storage System (BESS) project. Located near Viljoenskroon in the Free State, the Mercury BESS project was selected in December 2024 as one of eight preferred bidders under the second bid window of South Africa’s Battery Energy Storage Independent Power Producer Procurement Programme.

CHIETA, Sasol launch hydrogen fuel cell training programme

Sector education and training authority the Chemical Industries Education and Training Authority (CHIETA) and JSE-listed energy and chemicals company Sasol have launched a green hydrogen fuel cell training system at Sasol’s operations in Sasolburg, in the Free State. At the core of the training system is a working 50 W hydrogen fuel cell system, which allows learners to engage directly with the technology and understand key system functions through applied experimentation.

LPG Expo to highlight South Africa’s gateway role

South Africa’s role as a strategic liquefied petroleum gas (LPG) gateway to sub-Saharan Africa comes into focus this week, as government and industry leaders convene in Johannesburg. The sub-Saharan Africa LPG Expo taking place on April 9 and 10 at the Sandton Convention Centre will open with an address by Electricity and Energy Deputy Minister Samantha Graham-Maré, setting the tone for a programme focused on clean cooking and South Africa’s evolving role in regional energy supply.