Mozambique: South Africa’s Eskom negotiates projects with twice the capacity of Cahora Bassa

4 December 2007

Johannesburg, South Africa, 4 Dec – South African electricity company Eskom is negotiating four projects with Mozambique with a joint capacity of 4,650 megawatts, or twice as much as the Cahora Bassa hydroelectric dam, according to newspaper Business Report.

Andrew Etzinger, Eskom’s director for investment strategy, told the South African paper that the intention was not to invest directly in these four potential projects, but rather to negotiate long term power purchase agreements.

These agreements, he said, would allow Electricidade de Moçambique (EDM) and the government of the neighboring country to find financing for the projects.

Amongst the projects being negotiated is the construction of the northern plant of Cahora Bassa and the Mpanda Nkuwa dam, with an 850 megawatt and 1,300 megawatt capacity, respectively.

However, according to Etzinger, Eskom is also interested in contributing to carrying out two projects in the shorter term: construction of a gas-fired power plant in Temane, in Inhambane province (1,000 megawatts), and a coal-fired plant in Moatize, Tete province (1,500 megawatts).

In total, these projects represent a total capacity of 4,650 megawatts.

Cahora Bassa, which was formally handed over to Mozambique last week, has a capacity of 2,075 megawatts, of which 1,500 are sold to Eskom, 200 to Zimbabwe’s ZESA and the remainder consumed by the domestic market. (macauhub)