Energy & Utilities
From The Report: South Africa 2013
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Ensuring that the economy is well served by South Africa’s energy resources has become one of the government’s overriding concerns. Coal deposits are South Africa’s primary energy resource, with reserves estimated at 30.16bn tonnes as of the end of 2011. Due to an electricity deficit, the government has commissioned two coal-fired power stations, but even as new capacity is added, demand continues to rise, and this “moving target” characteristic of the electricity deficit will exercise the minds of government planners for years to come. The country’s oil reserves are modest, but the presence of large deposits of shale in the Karoo Basin is generating significant interest. The country’s reserves of uranium are estimated to be 295,000 tonnes, or 5% of the world’s total, and the government identified nuclear energy as a key part of the country’s energy mix.
This chapter contains an interview with Brian Dames, Chief Executive Officer, Eskom.

Articles from this Chapter

Overview

Balance of power: Growth and population expansion are placing greater demands on the power supply
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With a history of making the most of its domestic energy resources, South Africa adapted its power stations to accommodate its plentiful but low-quality coal, and developed innovative synthetic fuel technology to replace imported crude oil during its years of economic isolation. Massive coal reserves, a successful nuclear power programme, potentially game-changing shale resources and a rapidly expanding renewables segment mean that South Africa has plenty of options when it comes to meeting its future…

Interview

OBG talks to Brian Dames, Chief Executive Officer, Eskom
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Interview:Brian Dames How will the required funding to support an expansion drive be secured? BRIAN DAMES: The National Energy Regulator of South Africa (NERSA) has granted us permission to increase tariffs by 8% for each of the next five years, equating to revenue of R862bn ($105.1bn), which results in an estimated shortfall of R225bn ($27.4bn). Our response is being finalised through an integrated delivery programme which we will continue to implement towards finding further efficiencies…

Analysis

Dig deep: Shale gas reserves have the potential to dramatically reverse the domestic energy deficit
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The natural gas profile of South Africa shows an obvious imbalance. According to the US Energy Information Administration (EIA), the country produced 1.27bn cu metres of natural gas in 2011, but consumed more than three times that amount – some 4.5bn cu metres. Imports from Mozambique made up the difference between domestic demand and supply, with 3.3bn cu metres transported by pipeline over the year. The country’s reserves of natural gas are much smaller when compared to major African producers…

Analysis

Ray of sun: The government is focusing on developing solar alternatives
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The case for developing solar energy in South Africa is a strong one. The vast majority of the nation’s interior terrain has an average insolation in excess of 5000 Wh per sq metre per day, while the annual 24-hour solar radiation average for the nation stands at 220 W per sq metre, compared to 150 W per sq metre in some parts of the US and 100 W per sq metre for Europe. With some parts of the country, such as certain areas of the Northern Cape, enjoying average insolation rates of over 6000 Wh…