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.