Eskom rules out longer BPC deal

MBONGENI MGUNI
Staff Writer | Friday May 24, 2013 00:00

Since January, Botswana has been receiving 100 MW on a firm basis from Eskom and another 200 MW classified as non-firm, meaning it is provided depending on South Africa's own needs. The 200MW deal expires in July, while the 100MW will end in 2015.

Botswana Power Corporation (BPC) data provided last week indicates that Eskom's supplies are contributing more than half of local demand estimated at 550 MW. The BPC is reportedly running two local emergency diesel plants, generating 160MW, around the clock while also treating the 200MW as firm, due to the low supplies from the troubled Morupule B.

'Eskom has indicated an inability to extend the additional 200 MW agreement beyond end of July,' Eskom spokesperson Hillary Joffe told BusinessWeek in response to enquiries.'It must be appreciated that the Eskom-BPC agreement expired at end 2012 based on the assumption that Morupule B would be fully operational during the third quarter of 2012. The subsequent agreements for 100MW and an additional 200MW non-firm were concluded to support Botswana to the extent possible, but the anticipation was not that Eskom supply would be a long-term arrangement. Eskom's planning for the year did not make allowance for such sales to Botswana.'

Last week, the BPC attributed the recent deepening of the load shedding exercise to shortfalls in supplies from Eskom coupled with the unavailability of full supply from Morupule B.Corporation officials told BusinessWeek that at times Eskom gave the local utility as little as 10 minutes notice of the need to shed up to 140 MW of load, due to pressures in South Africa. That amount of power is more than the combined peak demand in Gaborone and Francistown.

Joffe said while Eskom had strived to make the 200 MW available, the power system came under pressure during peak evening hours when consumption is highest.'The 200MW supply is maintained to the maximum extent possible given the nature of the agreement,' she said.

'It is only curtailed during periods where the system stability is threatened and full use of our emergency options is warranted. Typically supply is maintained most hours of the day, but it is most threatened during the late afternoon/evening hours when the national demand is at its highest.'The latest developments mean the BPC has no room for delays in its plans to bring the first and second units of the 600MW Morupule B power station onto the national grid by next month.

Unit One was taken off-stream on January 15, 2013 after developing cracks in its primary and secondary air ducts and is expected to be back in service next month. Unit Two has been out of service since January 16 due to repairs and is also expected back in service in June.BPC officials have said Unit Three, which is operating at between 100MW and 140MW, has also developed cracks which will be repaired when the first two units are back on line. Unit Four was said to be undergoing reliability run and performance tests, ahead of full operations scheduled anytime after June.

Analysts have previously explained that the fact that winter strikes across the region at the same time further pressures the entire Southern African Power Pool's system and limits sources of possible supply for Botswana.

Joffe said Eskom's situation remained 'extremely tight' amidst a generation plant maintenance programme currently being undertaken.'Eskom's supply situation is extremely tight with supply and demand being very evenly balanced and almost no or unacceptably low reserve margins available,' she said.

'Frequent use is made of all of our emergency options and Botswana's supply is only curtailed when such occurrence is a reality.'The BPC is reportedly developing a new load shedding schedule to cater for shortages of up to 100 MW as the current one only applies to shortfalls not exceeding 50 MW. Officials have said that while the new schedule will provide greater certainty of areas to be affected by load shedding, the precarious supply situation means the BPC cannot commit itself to it.