You are currently browsing the tag archive for the ‘Medupi’ tag.

Recent events indicate that Eskom should concentrate on generating power and leave new build projects to professional project managers. The Medupi power station is two years late for a number of reasons, a major contributor being the boiler protection software which is part of the plant’s control and instrumentation system, and which keeps failing Eskom’s acceptance tests, but which should have been handed over to the utility in December 2012… (more)

EE Publishers has received substantial information that Eskom is currently in the process of terminating the Alstom boiler protection contract at Medupi power station. The boiler protection software in a coal-fired power station is a critical safely item subject to stringent regulatory controls. In the light of Eskom’s negative experience with Alstom, the utility intends to appoint an alternative contractor (likely to be Siemens) to complete the job. A change in software supplier by Eskom at this late stage poses further serious risks to the delivery of first power from Medupi, currently scheduled for the second half of 2014… (more)

Eskom has been accused by Earthlife Africa of failing to comply with the terms laid down by the World Bank when it loaned the utility money to construct the Medupi power station. The accusation centres around Eskom’s delay in installing flue gas desulfurisation (FGD) equipment at the Medupi power station. The organisation claims that because the utility company has applied for exemption from South African air quality regulations, Medupi will spew dangerous particulates into the atmosphere… (more)

This month’s letters are on the topics of energy conservation and control and instrumentation issues at the Medupi power plant… (more)

During a high-profile site visit on 11 April 2013, Public Enterprises Minister Malusi Gigaba advised Eskom, Alstom and Hitachi executives, in the presence of the assembled media, that first power from Medupi power station by no later than December 2013 was absolutely critical, that no further delays would be tolerated, and that “heads would roll” if any such delays occurred… (more)

During a high-profile site visit on 11 April 2013, Public Enterprises Minister Malusi Gigaba advised Eskom, Alstom and Hitachi executives, in the presence of the assembled media, that first power from Medupi power station by no later than December 2013 was absolutely critical, that no further delays would be tolerated, and that “heads would roll” if any such delays occurred. But only three months later, at a media briefing on 8 July 2013, Eskom confirmed what was already generally known, namely that the due date of end December 2013 was increasingly unlikely and unrealistic… (more)

Eskom has managed to pull us through the winter peak without a single unplanned blackout. Well done. But we are still running close to the edge, and failure of any energy sources could put us in the pit. This was achieved at a cost of shutdowns in industry, power buy-backs etc., as well as as well documented impact on economic growth in the country. So we are still in crisis mode, and unless action is taken soon we will remain there for along time to come… (more)

President Jacob Zuma initiated the final phase of the pressure test on the boiler of the first unit of Eskom’s new Medupi power station on 8 June 2012, in a ceremony which is a milestone on the way to Medupi generating first power to the national grid next year… (more)

Eskom has outlined South Africa’s power system status constraints over the next two to five years, the measures it is taking to ensure a secure electricity supply and the steps consumers should take to help contain demand over this difficult period. The margin between electricity supply and demand is going to be very slim at times over the next five years, and especially over the next two years until the first units of the giant new Medupi power station come on line in late 2012 and 2013 as communicated earlier by Eskom. The first unit of the sister Kusile power station will start generating power in late 2014… (more)

by Chris Yelland, EE Publishers

It’s official – we’ve got the loan. And from the limited information available at this time it appears that it is unconditional, this despite the lack of support from significant shareholders of the World Bank. It has been reported that the USA, UK, Italy, Norway and Netherlands abstained from voting on the loan application.

The award will come as a great relief to the government, the ANC, Eskom and those concerned about security of supply in South Africa through the construction of the 4800 MW Medupi coal-fired power station, scheduled to start coming on stream in 2012. The loan will ensure that there should be no delays to Medupi as a result of funding issues… (more)

There’s been a lot of media coverage of the pending World Bank loan of US$3,75-billion for Eskom. According to  analysts, it is unlikely that the loan will not be granted. But who is the World Bank, how does it make its decisions, and what are the stakes?… (more)

by EE Publishers staff reporter

There’s been a lot of media coverage of the pending World Bank loan of US$3,75-billion for Eskom. According to analysts, it is unlikely that the loan will not be granted. But who is the World Bank, how does it make its decisions, and what are the stakes?

The current funding shortfall for Eskom’s new build programme (Medupi, Kusile and Ingula) will only partially be met by the World Bank loan, and one must not lose sight of what funding is still to be secured, namely: the $3,75-billion (R27-billion) World Bank loan itself; the R8,5-billion additional borrowings required as per MYPD2; the cash shortfalls of R14-billion and R7,9-billion as per MYPD2; a price increase of some R17-billion for Medupi in coming years; and R20- to R40-billion private equity funding for Kusile. This gives a total current funding shortfall of R94- to R114-billion!… (more)

Informed sources within Eskom Generation have indicated to EE Publishers that significant further cost increases can be expected for both Medupi and Kusile power stations.

In the case of Medupi, provision has been made at a cost of “several hundred million rands” in the current R125-billion price tag to ensure that the plant is ready for the incorporation of flue-gas desulphurisation (FGD) plant. The FGD plant itsself will be installed under a seperate contract at the first general overhaul cycle of Medupi power station in about 2018.

Kusile, on the other hand, will have FGD plant installed from the beginning during the construction of the power station, and its cost is therefore included in the current overall R142-billion price tag. Further pushing up Kusile’s price will be a significant additional cost of interest during construction, as well as contract price escallation, resulting from construction delays and the moratorium on placing of contracts since December 2008 due to the absence of a funding plan for the Eskom new-build programme… (more)

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