State-utility power supplier Eskom has expressed an interest in new base-load independent power producers (IPPs) who could help plug the 2,100MW supply gap.

Eskom has reduced power to platinum mines across South Africa since January and invited interested parties to bid to supply energy with a minum capacity of 400MW.

The firm has already put forward the development of coal-fired power stations that would provide about 9,000MW but these are not expected to be ready until 2011.

But even with these it would mean that it would be 4,000MW short as demand projections will grow by four per cent yearly.

In the meantime, generator sets are likely to become widely used across South Africa as primary sources of power as the electricity rationing programme looks set to continue.

Offering a solution to the power issue, Frost and Sullivan said that Eskom may need to buy off other smaller energy producers.

Jeannot Boussougouth, an energy industry analyst, said: "Independent power producers could sell their electricity to Eskom at a price that is cost-reflective.

"Eskom, because of its social obligations, would then sell the electricity to users at a lower price. The difference would be compensated by the State, as is currently the case in Ontario," he said.

According to reports from Engineering News Online, Eskom expects to receive a term sheet from the National Treasury confirming the R60 billion shareholder injection that was promised by the Finance Minister, Trevor Manuel.

An unnamed source told the website that the injection would depend on the outcome of its tariff application to the National Energy Regulator of South Africa.

Source:

Eskom issues new tender for 2 100 MW of independent base-load capacity, 30/04/08
http://www.engineeringnews.co.za/article.php?a_id=132412

Generators likely to be primary source of electricity for next few years, 30/04/08
http://www.engineeringnews.co.za/article.php?a_id=132307

Treasury likely to offer clarity on R60bn Eskom package within weeks, 29/04/08
http://www.engineeringnews.co.za/article.php?a_id=132364