South African electricity utility Eskom has received more than 100 bids for future electricity cogeneration projects, the company said on Wednesday.
The company hopes that cogeneration — which captures wasted heat, power or resources to generate electricity — could potentially add between 1 000MW and 3 500MW to its national grid.
”More than 100 South African industrial companies and entrepreneurs have responded to Eskom’s initial call for the future cogeneration of electricity,” it said in a statement.
Eskom has struggled to cope with rising demand for electricity due to years of underspending on generating capacity, and is scrambling to find new sources of power.
The grid came close to collapse in January, forcing gold and platinum mines to shut down for five days and driving up metals prices.
Eskom said there would be no restrictions on technologies for cogeneration projects and that tariffs contracted with the company would not be linked to current pricing structures.
”Unlike a conventional tender process, each application will be assessed on its merits as it is received and contracts will be signed with qualifying bidders,” it said.
”Successful bidders will have to have power on stream by 2012 and will be given 10-year contracts, which could be renewed.”
Public Enterprises Minister Alec Erwin warned on Tuesday that without a 53% tariff hike this year, Eskom will struggle to raise the necessary capital to fund an ambitious R340-billion five-year capacity expansion programme. — Reuters