Question No. 623
Mr M G Oriani-Ambrosini (Inkata Freedom Party) to ask the Minister of Public Enterprises:
(1) Whether she invited foreign owned electricity companies to bid at their own cost for the construction and operation of Eskom's intended new electricity plants; if not, why not; if so, what are the relevant details;
(2) Whether she also invited a major foreign electricity generator (name furnished) which had indicated its intention to build and operate such an electrical plant to bid for the construction and operation of Eskom’s intended new plants; if so, why;
(3) Whether she will make a statement on the matter?
Reply:
1. The integrated resource plan for electricity developed by the Department of Energy directs the country's future electricity generation capacity needs and the mix of energy sources to be utilised to provide the necessary security of supply.
A five year integrated resource plan was published by the Department of Energy in December 2009 and work is currently underway to finalise a revision of the integrated resource plan extended to 20 years (IRP2) through a comprehensive stakeholder engagement process.
The allocation of future new electricity generation capacity construction between Eskom and the private sector will be provided by the Minister of Energy once the IRP2 is finalised. Eskom is a utility and builds, owns and operates all of its own power stations.
2. The contracts for the construction of Eskom's new power stations were awarded through a competitive bidding process, through which domestic as well as international suppliers were invited to apply.
In addition to the new power stations that Eskom is building, the integrated resource plan by the Department of Energy sets out country's electricity generating capacity requirements in the long term as well as the responsible parties (Eskom or private) for the construction of capacity into the future. A revision of the integrated resource plan published in December 2009 is expected around July 2010.
Government is also in the process of putting a "non-conflicted buyer" for private sector power in place to facilitate the entry of independent power producers into the South African power generation sector.
3. It is not necessary for a statement to be made on this matter.
Source: Department of Public Enterprises (http://www.dpe.gov.za/)
