/ 18 April 2008

New power station to help alleviate SADC crisis

A new coal thermal power project already approved by the Mozambican government in the north-western province of Tete could provide solutions to the power crisis in the Southern African Development Community (SADC) region.

Riversdale Mining, an Australian-listed company, recently signed a memorandum of understanding with the Mozambican Ministry of Energy to start work on the project.

Michael O’Keeffe, CEO of Riversdale Mining, construction company of the $5-million coal thermal power station, said on Thursday the project will be commissioned in 2012.

”Most of the power generated from the coal thermal power station could be fed to the national power grid and in turn could provide solutions to the SADC regional power crisis,” he said.

The SADC region is faced with a serious crisis and South Africa, the region’s powerhouse, is undergoing its worst power crisis to date, leading to load-shedding in most of its towns and cities.

The region is looking to Mozambique, which has vast gas and coal deposits as well as massive hydro-electric power potential, to solve the crisis — set to worsen in the next few years.

Currently, Mozambique supplies hydro-power and gas power to South Africa and Zimbabwe while work is at an advanced stage to connect Malawi and Tanzania to its national power grid.

O’Keeffe said his company will carry out feasibility studies that will fast-track development. ”Thereafter the project would be owned by an energy specialist company in partnership with the Mozambican government,” he said.

On completion, the project is expected to generate 500 megawatts, which will be increased to 2 000 megawatts by 2015. — Sapa