The South African government has said it believes that its economy can continue to grow if energy efficiency measures designed to overcome the current electricity crisis are successfully implemented.
The country has declared a national electricity emergency and the government last week unveiled a raft of proposals aimed at minimising unplanned outages that have affected the domestic, commercial and industrial sectors alike. It has called on all South Africans to co-operate in the voluntary and mandatory programmes to be implemented.
Electricity supplies have now been restored to the country’s huge mining sector following a meeting of the government, Eskom and mining industry leaders. The shortages have also affected Botswana, Zambia and Namibia, which rely heavily on energy imports from neighbouring South Africa.
The government’s proposed action plan focuses on fast-tracking a number of energy efficiency measures, prioritising power investments and implementing electricity price increases. It says that the underlying cause of the crisis is the rapid economic growth experienced over the last few years.
The government appears to have been caught off-guard by the economic growth in the country and admits that its decision in 2004 to charge Eskom with a large and urgent new build programme was late, in hindsight. It also says that it is experiencing serious problems with coal quality and stocks.
The gradual return of power to the gold and platinum mines will be made at the expense of commercial enterprises and the domestic sector. There is no sign of immediate relief and the government says that it views the next two years as being “critical”.
Eskom is planning to invest R150 billion in the power supply infrastructure over the next five years, including the return to service of three mothballed power stations and the construction of the Medupi power station. Medupi, a 4800 MW supercritical coal fired plant, is due to start operating in 2011.
South Africa is due to host the football world cup in 2010.
Eskom reported that the level of imbalance between supply and demand reached unprecedented levels on January 24, forcing it to shed 4000 MW, the highest load shed ever. It was forced to ask its major industrial customers – accounting for 20-30 per cent of its load – to reduce consumption.
The national electricity emergency programme to be implemented consists of a number of short, medium and long term interventions designed to reduce the need for load shedding. A power conservation and a demand side behavioural change programme are to be implemented immediately.
Longer-term measures to be implemented include an efficient lighting rollout programme, installation of solar water heaters and smart metering for residential customers.
Until two years ago, the country’s reserve margin was above 16 per cent. In 2004 the government charged Eskom with providing 70 per cent of new capacity and embarked on a new energy efficiency programme. In 2007 it began to fast-track its independent power producer programme.