SOUTH AFRICAN POWER UTILITY LOOKS TO LONG-TERM POWER SUPPLY AGREEMENTS
South African power utility Eskom is hoping to sig long-term agreements to supply power to neighbouring countries after its financial results were boosted recently by power exports.
The State-powned utiity said in a statement Monday that it was working on signing long-term power supply agreements in the region. This followed the release of its integrated results for the six months ended September which showed that its revenue rose 10.5 per cent to 97.1 billion Rand (about 7.24 billion US dollars) because of a 31.6 per cent increase in electricity exports.
The electricity exports were to Botswana, Namibia, Zambia and Zimbabwe and were made possible by Eskom's 2,000 megawatts (MW) to 5,000 MW of excess capacity in the medium term.
"With the anticipation of additional surplus capacity in the coming months and years, we are focusing on signing long-term power supply agreements with regional partners. Engagements with utilities and mining houses active in the region have commenced. Overall electricity sales were 1.2 per cent higher than in the same period last year," said Eskom.
Meanwhile, in order to address the decline in local electricity sales, Eskom has commenced with a strategy to address this.
"Eskom has commenced with a strategy to address the decline in local sales volumes and it will address both the retention of sales to existing customers and the stimulation of sales growth. The strategy addresses cross-border sales, local demand stimulation, public-private partnerships, corporate development and unregulated revenues."
The utility is engaging key industrial customers to understand requirements and also engage with municipalities and metros to enable their growth.
Source: NAM NEWS NETWORK.