ALSTOM gearing up for SA’s electrification revamp
01/02/2005
Media Release – Final ALSTOM SA
Electrify
ALSTOM gearing up for SA’s electrification revamp
ALSTOM, which supplied the turbine generators for nine – and the boilers for four – of Eskom’s present total of 13 coal-fired power stations, will be among the companies tendering for a contract, due to be awarded by the Department of Minerals & Energy (DME) in the second half of this year, for two 500 MW peaking gas-turbine power stations.
The gas-turbine stations, intended to operate only during periods of peak load, and Eskom’s three existing coal-fired stations that are currently being de-mothballed – Grootvlei, Camden and Komati – will increase the country’s generating capacity sufficiently to meet anticipated demand until about 2010.
ALSTOM is recognised for its expertise, advanced technologies and worldwide dominance in all aspects of power generation. The Power and Transmission & Distribution (T&D) divisions of the local company, ALSTOM SA, are already involved in regular discussions with the authorities concerned about both the expansion of the country’s electricity generation capacity as well as the government’s far-reaching plans to revamp and streamline electricity distribution countrywide through the creation of six regional electricity distribution companies (REDS).
Harry Hargreaves, managing director of the company’s Power Division, said ALSTOM is well placed to supply the gas turbines. “The company has developed its expertise and technologies in this field to the point where it matches its capabilities in coal-fired boilers and steam turbines. The initial teething problems with new gas turbines the company encountered about five years ago have long been overcome.
“ALSTOM’s new generation of gas turbines have to date accumulated over one million trouble-free operating hours around the world and are now considered to be the most efficient and reliable machines of their type on the market.”
The Power Division is also in contact with Namibia’s power utility, Nampower, which is due to invite tenders early this year for a combined cycle power station to be built near Swakopmund, while Eskom is not expected to put out an enquiry to suppliers for new coal-fired power plant until the second half of 2006. “ALSTOM and other OEM’s are currently discussing it with Eskom and giving them all the information about the latest technologies available,” Hargreaves commented.
On the distribution front, ALSTOM SA’s T&D Division has done much groundwork in preparation for the launching of the REDS – in particular the first to be launched, the Cape Town based RED serving the Western Cape region, which is scheduled to go into operation in July this year.
Said T&D Division managing director Jack Rowan: “We have done presentations to local officials of Eskom and large metros in some of the regions and have appointed senior people at all our branches in the centres where the REDS are to be based as the primary contact people to field enquiries and supply information relating to electricity distribution.”
The T& D Division, comprising seven companies, offers probably the most comprehensive and diverse range of transmission and distribution equipment available in the country from one group.
Commenting on how the creation of the REDS, which are due to be phased in over the next three years, is likely to impact on the electricity distribution industry as a whole, Rowan said it would intensify competition. “Until recently we have had about 250 customers and they will be cut down to just six, so the pressure to win contracts will become more intense. At the same time the REDS are sure to result in more uniform application of tariffs and more standardisation of product, which will contribute much towards improving productivity and reducing costs.
“The budget constraints under which Local Government utilities currently operate will hopefully be alleviated with the formation of the REDS and enable them to achieve the government’s social and economic objectives of providing electricity to all and supplying sufficient and dependable supply to all users,” Rowan concluded.
ALSTOM SA (Pty) Ltd is a South African owned black economic empowerment (BEE) group, in which the BEE equity currently stands at 38 per cent. The group’s BEE shareholders are Tiso Private Equity (Pty) Ltd, Kagiso Ventures Private Equity, Kgorong Investment Holdings (Pty) Ltd, Sibilant Investments (Pty) Ltd and Management.
ALSTOM SA (Pty) Ltd employs 4 500 people and has an annual turnover in excess of R2bn. It has 25 operating units, including 2 empowerment subsidiaries, 20 production facilities and 21 distribution centres throughout Southern Africa.
ALSTOM SA has exclusive distribution, technology and representation rights for ALSTOM and AREVA in Southern Africa and maintains management and commercial links to the ALSTOM and AREVA business units in Europe.
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