Page 14 - AfrElec Week 27 2021
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AfrElec                                     NEWS IN BRIEF                                             AfrElec








       ESKOM                               the use of fuel oil increased significantly as   COAL
                                           well,” the application read.
       Power cuts force Eskom to                                                Another derailment leaves

       use more fuel oil                   Eskom short of cash for              SA’s Transnet coal line

       Eskom used 130% more fuel oil than   repairs                             partially shut
       anticipated for coal-fired power stations
       during the 2020 financial year.     Eskom does not have enough money to repair   Transnet’s coal export line has suffered
         According to its Regulatory Clearing   or refurbish sixteen of its 99 coal generation   another devastating derailment, further
       Account (RCA) Year 1 application to the   units, City Press reported.    frustrating coal producers who have for
       National Energy Regulator of South Africa   As a result, these generation units — with   months suffered the adverse effects of ongoing
       (Nersa), submitted on 11 December 2020,   a combined generating capacity of 2,635   logistics issues.
       Eskom’s start-up fuel oil costs account for   megawatts — are not used.    Transnet Freight Rail (TFR) told South
       about a quarter of the ZAR8.4bn it seeks to   This is enough power to prevent two or   Africa’s Business Day that it had experienced
       claw back.                          three load shedding stages and is more than   an incident in the early hours of Saturday
         The RCA application is a mechanism   the 2,000MW South Africa aimed to procure   when a coal train pulling 200 wagons on its
       Eskom uses to retrospectively adjust for   with its emergency power tender — including   way to Richards Bay Coal Terminal derailed,
       an over or under-recovery in revenue for a   the torpedoed Karpowership deal.  affecting 31 wagons.
       particular year, due to actual events differing   Eskom said that when its older power   Videos and photos seen by Business Day
       from assumptions made by Nersa when   station units reach a point where large   show many derailed wagons overturned down
       granting a tariff. In this application, Eskom   expenses are needed to service a turbine or   an embankment with heaps of coal on the
       is seeking to recover revenue due to sales   generator, an evaluation is done to decide if   ground.
       volumes determined by Nersa which did not   funding for the repair is approved or whether   TFR spokesperson Jane Moshoeshoe said
       materialise. A decision by the regulator is due   the unit is put into reserve storage.  there were no fatalities or injuries to the train
       in August, Fin24 previously reported.  The utility said that fourteen generating   crew or external parties. Investigations into
         The application also accounts for variances   units across its Hendrina, Grootvlei and   the cause of the derailment were continuing.
       in assumptions made of primary energy costs.   Komati power stations are mothballed in this   One of the affected lines reopened on
       The major driver of primary energy costs was   way.                      Sunday and is running trains. Work is still
       breakdowns at its power stations.     One unit each at Duvha and Hendrina is   under way to clear the other line before repair
         Heavy fuel oil is used to start up and   offline due to breakdowns that Eskom has   work can commence, she said.
       shutdown coal fired power stations. The   decided would be too expensive to repair.  The line, which transports coal from SA’s
       number of starts required depends on the   The units are not permanently   coalfields down to the Richards Bay Coal
       number of outages - either planned or   decommissioned, Eskom said. If   Terminal, has suffered its share of disruptions.
       unplanned - and the number of trips at the   circumstances change and it is decided to   In April a derailment on the line affected
       units of a station, Eskom explained.  return them to service, these units could still   product movement for nine days.
         Start-up fuel-oil contributed ZAR2.2bn to   operate within a relatively short lead-time.  Coal exporters such as JSE-listed Exxaro
       the RCA, the application showed.      According to the City Press, de-   Resources have grown increasingly frustrated
         “The number of unplanned outages and   mothballing plants placed in reserve storage   with the logistics issues which cause them to
       trips were significantly higher in the FY2020   can happen within a year or so, though the   losebns of rand through being unable to take
       than what was anticipated at the time of the   cost of repairs and amount of time needed   full advantage of booming export coal prices.
       2020 application and determination. Hence   varies between units.          While operational capacity is one part of
                                                                                the problem, theft and vandalism is another.
                                                                                Transnet CEO Portia Derby last month said
                                                                                cable theft was disrupting 30% of TFR’s rail
                                                                                network every week, affecting exports such as
                                                                                bulk products and metals. Domestic markets
                                                                                are also suffering the effects of the troubled
                                                                                rail system as customers are forced to truck
                                                                                in product that would otherwise have been
                                                                                delivered by rail.

                                                                                SOL AR
                                                                                Zimbabwe to open seven

                                                                                solar plants in 2021

                                                                                Seven solar photovoltaic power plants
                                                                                will enter into commercial operation in
                                                                                Zimbabwe, by the end of 2021. The Zimbabwe
                                                                                Energy Regulatory Authority (Zera) said it



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