South African Department of Energy is opening a bidding process of its plan to source 2,500 megawatts for the national grid from independent coal-based projects.
About 80 percent of the utility’s stations are fueled by coal, with the country being the continent’s biggest producer.
The government will help raise cash to fund SOC Ltd to purchase diesel February onwards. Eskom Holdings, which provides almost 95 percent of the country’s electricity. The company has been forced to manage blackouts due to breakdowns at its aging fleet of plants this year. The government is also looking to raise funds to obtain 11,400 MW electricity, from renewable sources.
South Africa has agreed on renewable-energy projects with independent power producers that it approved in November.
In its plan; to get about 4,000 MW of capacity from clean sources through five bidding rounds. The country has already approved 17 projects worth 33.8 billion rand ($2.9 billion) in the third round in November this year. They will add 1,456 MW of capacity, in addition to 1,044 MW and 1,416 megawatts from the second window and the first round window.