SA power tender lights up coal sector

According to experts, even if one of the three companies secures half of the supply contract on offer, or 300MW, the project will still rank among the largest in the private sector, in terms of capital investment.

At present, experts conservatively estimate that for every megawatt of coal-fired electricity, developers need to invest US$2 million (P20.8 million) in capital costs, meaning the 600MW project will require at least US$1.2 billion (P12.5 billion).