State power giant Eskom sparked confusion in July when its CEO Brian Molefe suggested there would be no future power purchase agreements (PPAs) with independent power producers, beyond those already signed.

Although the government provided assurances that this would not affect its intention to develop renewables and gas, as part of the country’s future energy mix, it sparked a lively debate in the nation’s media. That’s because South Africa is developing a gas-to-power program, expected to add 3.126 GW from independent producers’ gas-powered generation.

South Africa is soon to open tender proposals for a project combining a new floating LNG import terminal with a new power plant – for which Eskom is expected to be the main customer. The LNG import terminal would be at one of three locations: Coega, Richards Bay or Saldanha Bay. Gas-fired generation, it’s argued, could also provide a useful tool in managing the inherent intermittency of solar and wind power. The government hopes also that o shore gas exploration – and fracking in the onshore Karoo region –could provide indigenous sources of gas.

Siemens South Africa’s CEO Sabine Dall’Omo was recently quoted by Bloomberg as saying that “gas can be a complete game-changer for the South African economy.” 

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