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Eskom study on power station closures

Uncertainty around electricity supply, and a stable local economy, has still not been addressed by Eskom, who are forging ahead with the closures of Hendrina, Komati and Grootvlei Power Stations.

While unease is growing in towns such as Pullenshope, Kwazamokuhle and Hendrina over the looming closures, Urban Econ has embarked on a fact finding mission on behalf of Eskom, to ascertain the socio-economic impact the closures would have.

The predominantly academic survey, however, falls short of calculating the devastating impact the closures would have on Middelburg overall.

The Executive Committee of the Chamber of Commerce and Industry met with Urban Econ on Tuesday to address ongoing concerns over the closures and the loss of infrastructure and skills the closures would force.

Meanwhile, the National Energy Regulator (Nersa) says the Minister of Mineral Resources and Energy has approved that the regulator may process license applications for self-generation facilities of above 1MW, even if they are not in compliance with the Integrated Resource Plan.

The move was welcomed by Chamber CEO Ms Anna-Marth Ott, who believes that the announcement opens the doors to energy producers like Thos Begbie to enhance capacity.

“We know that Samancor has applied for a license, which bolsters our optimism somewhat, but we want guarantees from Eskom that the power stations won’t be mothballed, but turned into alternative energy generating facilities, to ensure our economy remains stable,” she told the paper after the meeting.

Ms Ott says the ripple effect the closures would have on the town’s primary economy cannot be calculated.

“The Optimum saga still reverberates throughout our communities,” Ms Ott warned.

The issuing of licenses for independent generators between 1 and 10MW, Ms Ott believes, would result in a number of local industries entering the energy sector.

The approval means that prospective applicants are no longer required to obtain ministerial approval for deviation from the IRP 2019, before applying to Nersa for a license.

The approval relates to two generation categories, namely generation facilities that are connected to the national grid, in which the generation facility supplies electricity to a single customer and there is no wheeling of the supply through the national grid and generation facilities connected to the national grid, in circumstances in which the generation facility solely supplies a single customer, or related customers, by transporting electricity through the national grid where wheeling arrangements are in place between the parties.

Approval excludes those that involve local government, either provincial or municipal.

Eskom maintains that the plants won’t be closed but “repurposed,” which is in line with Chamber proposals.

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Gerhard Rheeder

I have been a journalist for two decades, with numerous awards to my credit, both in photography and writing. A brief stint as researcher in the opposition offices of the Mpumalanga Provincial Legislature, honed my skills as specialist local government reporter, covering crime and courts.
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