Electricity Regulation Act, 2006 (Act No. 4 of 2006)

Determinations under Section 34(1) of the Act

Ankerlig 100MW Additional Capacity Gas Programme 2016

Notice No. 601 of 2016
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Notice No. 601

27 May 2016

 

Department of Energy

 

The Minister of Energy ("the Minister"), in consultation with the National Energy Regulator of South Africa ("NERSA"), acting under section 34(1) of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) (as amended) and the Electricity Regulations on New Generation Capacity (published as GNR. 399 in Government Gazette No. 34262 dated 04 May 2011) ("Regulations"), has determined as follows:

 

1.that new generation capacity is needed to contribute towards energy security, including 100 megawatts (MW) to be generated from gas and/or liquid fuels which represents part of the 237 MW allocated to "Gas CCGT (natural gas)", under the heading "New build", for the year 2029, in Table 3 of the Integrated Resource Plan for Electricity 2010-2030 (published as GN 400 of 06 May 2011 in Government Gazette No. 34263) ("IRP 2010-2030") )("new generation capacity");

 

2.notwithstanding that the IRP 2010-2030 appears to primarily contemplate LNG as the potential source of natural gas for power generation and indicated (amongst other things) that other sources still require further research, the new generation capacity determined as necessary in paragraph 1 above, may be generated from any gas type or source (including natural gas delivered to the power generation facility by any method including by pipeline from a natural gas field or elsewhere or an LNG based method; coal bed methane; synthesis gas or syngas; above or underground coal gasification; Shale Gas and any other gas type or source as may be considered appropriate by the procurer), and may be generated using any appropriate technology, notwithstanding that the IRP 2010 – 2030 may not have contemplated such technology or have considered it viable;

 

3.the new generation capacity shall be established by Eskom Holdings SOC Limited at the existing Ankerlig Power Station for the purpose of providing dedicated back up power to Koeberg Nuclear power station;

 

4.the new generation capacity may be supplied into the dedicated transmission line between Ankerlig Power Station and Koeberg Nuclear Power Station and/or may be connected to the National Grid. If Eskom decides to connect the new generation capacity to the National Grid, Eskom shall do so as soon as reasonably possible according to a schedule that may differ from the timetable set out in Table 3 of the IRP 2010-2030; and

 

5.pursuant to Regulation 9(3) of the Regulations the electricity produced by the new generation capacity shall be provided to Eskom and Eskom shall not be required to enter into a power purchase agreement with itself, this is however subject to any requirements that NERSA may have regarding agreements or arrangements to facilitate the separation of the financial accounts of the generation, transmission and distribution businesses of Eskom.

 

 

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