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Mantashe’s new plan to create state power company takes shape

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The new company will take over the three plants that are set for decommissioning, says the mineral resources and energy minister

Mineral resources & energy minister Gwede Mantashe. Picture: BLOOMBERG/DWAYNE SENIOR is forging ahead with a plan to create a new state-owned power company by converting three coal-fired plants into gas-burning generators to ease the nation’s energy crisis.

Mantashe’s plan envisages taking over the ageing Hendrina, Grootvlei and Camden power plants, which have a combined generation capacity of 4,800MW. Almost a third of Eskom’s plants will reach end-of-life as early as 2023. To replace the plants and add capacity needed to meet rising demand will take years and cost more than R1-trillion, according to government estimates.

Once the proposal is approved, the government will invite engineering, procurement and construction companies. The cost of converting the plants would be determined at that point, said Maduna Ngobeni, the department’s head of projects.

 

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