PetroSA plans network of gas-fired power plants to fight load-shedding

PetroSA, South Africa’s state-owned oil company, says it is joining the fight against load-shedding with plans to construct a network of gas-fired power plants, Sunday Times reports.

The project could see an additional 180MW of generation capacity fed into the grid, and board chairperson Nkululeko Poya believes it could be ready in 18 to 24 months.

PetroSA requires approval from the National Energy Regulator of South Africa before it can proceed with the project, for which Poya said the company has plenty of gas.

If approved, the national oil company will run the generators using tail gas — leftover residue from its oil-to-gas process at its Mossel Bay plant.

“We have gas in our current well domestically. It is sufficient, based on our studies, to be able to power a power plant of the magnitude of 180MW for a period of three to seven years,” TimesLive quoted Poya as saying.

PetroSA’s plan comes as the government implements its energy action plan to fight load-shedding.

It is working to procure energy from various renewable sources, including 6,800MW of solar and wind power through bid windows 5, 6, and 7 for independent power producers (IPPs).

Upcoming bid windows could see 513MW of battery storage and 3,000MW introduced.

However, transmission grid constraints could render additional renewable power signings useless.

Peter Attard Montalto, Intellidex managing director for capital markets

Intellidex head of capital markets research Peter Attard Montalto recently pointed out there is a concerning lack of transmission capacity on the national power grid.

“There is now no more grid access in key areas for the foreseeable future,” he said.

“The implication is more load-shedding for longer than previously assumed.”

The transmission grids in the Northern, Western, and Eastern Cape — where the majority of renewable power plants are set to be built — are full and will likely remain so until 2027.

IPPs chose these regions due to their relatively cheap, open land and high sunshine and wind rates.

As a result, new solar and wind power plants slated for these areas won’t be able to connect to the grid and contribute to the national power supply.

Montalto’s remarks came after South Africa only managed to appoint five preferred bidders that will add 860MW of the 4.2GW apportioned for bid window 6 of the Renewable Energy Independent Power Producer Programme.

While a sixth bidder could be added, bringing the total closer to 1,000MW, the failure to allocate slots for 3.2GW of wind power relates to a lack of grid capacity.

The lack of transmission grid capacity could prove to be a significant barrier to South Africa’s energy crisis action plan.

Share This