United Kingdom power provider Ipsa is making good progress in expanding its portfolio of power generation projects in the Eastern Cape.
Two important additions to capacity are now planned at the Elitheni Clean Coal Project and at the combined heat and power (CHP) project for Da Gama Textiles.
Elitheni Clean Coal is an existing project under development where Ipsa intends to build and operate a mine-mouth coal-fired plant at Indwe to the north of Port Elizabeth. Ipsa had originally intended to develop 400MW of capacity on a site adjacent to Elitheni’s Guba coal reserves at Indwe.
Ipsa believes that there is sufficient commercial reserves of coal in place to increase the Elitheni Clean Coal power plant from 400MW to 500MW based on two generating blocks of 250MW each.
“This change will provide extra generation capacity in a part of South Africa which needs new local capacity. Ipsa is now in discussions regarding a joint venture at Elitheni Clean Coal with local black economic empowerment groups which will allow for the rapid development of the power plant in parallel with development of the coal reserve,” Ipsa said on Friday.
In a further development, Ipsa now intends to increase the size of its CHP project at Da Gama Textiles in East London from 7MW to 80MW. The Da Gama plant is one of the largest textile plants in the Southern hemisphere.
“The enlarged Da Gama CHP facility will provide steam for the textile plant as well as additional electrical capacity for industrial users in East London, Eastern Cape,” the company said.
It added: “Ipsa is in final negotiations with its potential black economic empowerment partners regarding the refinancing of its 18MW Newcastle power plant and the financing of the 1 600MW Coega Fast Track CCGT project. The board of Ipsa intends to announce the final agreement in the near future. In the meantime, Newcastle has achieved its first revenues and has successfully completed its commissioning.”
In South Africa the aggregate electricity demand situation in the country continues to work in Ipsa’s favour, according to the company.
“The directors of Ipsa believe that the growth of the South African economy will result in ever-increasing extra demand for electricity, which the company is well-placed to help fulfil.
According to the South African Reserve Bank, the annualised rate of real economic growth accelerated from 4,5% in the third quarter of 2006 to 5,5% in the final quarter on account of an improvement in growth in all the main sectors of the economy. Growth is forecast to continue at a rapid rate in 2007 and beyond.
Peter Earl, CEO of Ipsa, said: “We are very pleased to be expanding our portfolio of power projects in the Cape. Last week saw South Africa break all records for the peak demand for electricity with national power cuts yet again from shortages of generation capacity. Ipsa intends to bring its new capacity on stream as fast as possible to meet the desperate need for power in South Africa.” ‒ I-Net Bridge