Q&A’s for the Energy Sector, 2010

(1) Whether, in view of Eskom’s preparedness for an economic upturn, national power outages are envisaged; if not, what is the position in this regard; if so, (a) when, (b) why and (c) what steps have been taken to mitigate this;

(2) whether Eskom has sufficient quantities of coal stockpiled to ensure power stations will not run short of coal; if not, (a) why not and (b) what steps has she taken to avoid running short of coal?       NW904E

 

1 (a-c) Eskom is confident that with its current preparations it will meet the current electricity demand in particular the needs of the 2010 FIFA World Cup. As demand continues to increase in 2011 and 2012, the supply-demand balance will become tighter until the next base load power station, Medupi, is commissioned. An intensive energy efficiency campaign is needed over the next 3 years to ensure the risk of power supply interruptions is minimised and adequate margins are created to ensure the generation plant is maintained to adequate levels. In addition, Eskom intends to sign up co-generation and renewable energy IPPs in the next 3 years as provided for in the first version of the Integrated Resource Plan.

 

2 (a-b) Yes, Eskom has sufficient coal to ensure power supply. Eskom’s target operating system stockpile level was 42 days by 30 April 2010. As at 15 March 2010, system stock levels were at 36.9 days and Eskom is building up towards the target. In line with coal sourcing strategy, coal supply will continue from long-term and new medium-term coal contracts that will start in April 2010.