Page 13 - AfrElec Week 16 2021

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from Karpowership SA. “It is not a South
African asset, and all the money goes abroad
to the Turkish Karadeniz Energy Group,”
Yelland said. So, while the bid price from
Karpowership SA may look competitive now,
it has a significant risk that will fall on South
African consumers. Yelland said solar and
wind power, in combination with battery
storage, provide a better and more sustainable
solution.
Clyde Mallinson, director at Virtual Energy
and Power, echoed Yelland’s views in a briefing
HYDRO Upon completion, the Gouina note on a systems approach to South Africa’s
hydroelectric power plant will increase electricity supply crisis. Mallinson warned
Gouina hydroelectric power electricity production in the four OMVS that the Karpowership SA deal will lock the
member states by 52%.
country into “dirty and expensive energy for
plant project in Mali to be the next 20 years”. He proposed an alternative
emergency procurement programme that will
delivered this year FUEL OIL GENERATION make “full use of available system assets” in
South Africa.
Following a recent Gouina hydroelectric
power plant project site visit, the Senegalese Powerships are a dirty,
Minister of Water and Sanitation, Serigne
Mbaye Thiam, confirmed considerable expensive mistake for SA ESKOM
progress in the construction of the run-of-
the-river-type hydroelectric facility that is – energy experts Eskom urgently seeking
currently being constructed on Gouina Falls
along the Senegal River in Mali. The government’s decision to include technical support after
Minister Thiam was accompanied by his three liquid natural gas powerships from
colleague Aïssatou Sophie Gladima, Minister Karpowership SA for emergency power is a Oracle withdraws services
in charge of Petroleum and Energy, and mistake which will cost South Africa dearly in
Lamine Seydou Traoré, Malian Minister of the long run. Eskom says it’s urgently seeking new technical
Mines, Energy and ‘Water as well as Hamed This is the view of energy expert Chris support providers after Oracle withdrew its
Diane Séméga, the high commissioner Yelland, who was speaking to the SABC about services over a payment dispute.
of the Senegal River Basin Development the procurement of emergency power by the The power utility has been in disagreement
Organisation (OMVS), a regional cooperative Department of Energy. Yelland said there is with Oracle after the software giant claimed
management body of the Senegal River that growing opposition to the Risk Mitigation IPP Eskom underpaid it by over R7.3bn – before
currently includes the Republics of Guinea, Procurement Programme (RMIPPPP) process reducing the amount to R380mn.
Mali, Mauritania, and Senegal. and the decisions which arose from this Eskom says it can only pay R166mn of
The delegate learned that part of the work process. Two-thirds of the new emergency risk that amount. “Oracle did live up to its threat
will be delivered this coming June, and the mitigation power programme – 1,220MW of pulling out of Eskom and Eskom is now
entire plant later in September this year. The of the 1,845MW – went to a single company, operating on the basis of a contingency plan
project was initially scheduled for next month Karpowership SA. that we have previously communicated.
but this timeline will be exceeded according This decision is facing severe criticism “I can further update that yesterday
to OMVS, owing to the effects of the Covid-19 from energy experts who highlighted afternoon, Eskom has advertised the tender
pandemic. problems with powerships, like the lack on an emergency basis to replace the technical
Officially launched on 17 December 2013, of local gas resources, high costs, and the support services that we were receiving
the Gouina hydroelectric power plant project negative impact on the environment. from Oracle,” says Eskom’s Spokesperson,
is the fourth project to be implemented by the To put the cost in perspective, the CSIR Sikhonathi Mantshantsha.
OMVS since its creation back in 1972. estimated that Karpowership SA can get Earlier this month, the power utility
The power plant will have an installed as much as R218bn from the 20-year deal. lost a court bid to stop the company from
capacity of 140MW and it will use the Yelland explained that all the liquid gas will withdrawing its services.
outflows of the Manantali Dam upstream. need to be imported which carries a lot of It said it has put contingency plans
A 1,230 m long weir built just above the financial risk for the country. The fuel cost to reduce the risk of reliance on Oracle
waterfall will direct water into a channel that is linked to the US Dollar price for liquefied Corporation following the contractual
will feed the powerhouse, which contains natural gas which means the USD/ZAR dispute.
three 46.6 MW Kaplan turbine-generators, exchange rate can significantly influence the Eskom says it has contingency measures in
downstream of the falls. The difference in future cost. It is also linked to carbon tax. place to reduce reliance on Oracle.
elevation between the waterfall and weir will “It is currently very low, but this can
afford a water drop of 22.5 m. increase in future,” Yelland said.
The project also includes the construction He added that South Africa will never
of 280 km of transmission lines. own the powerships. Instead, it is rented TRANSMISSION

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