Ladysmith - Tremendous progress is being made in the government's quest for energy security in South Africa, President Jacob Zuma said at the official launch of the Ingula Power Station Unit 4 in KwaZulu Natal.
A pumped storage scheme was launched at the same time.
"Today, as South Africans, we stand tall and proud as we register further progress in our quest for energy security," said Zuma.
"This time last year, the country was faced by serious energy shortages. Our people were frustrated by load shedding and the future looked bleak.
We set out to change the situation, and we are making tremendous progress."
He pointed out that Eskom has been forging ahead to ensure improved maintenance and also to fast-track the building of infrastructure to ensure energy security for SA.
"By 2021, Eskom’s new build programme will add close to 9 000 MW of new capacity to power SA’s economic growth and development," said Zuma.
The construction of Ingula started in 2005. Its Units 1, 2 and 3 were synchronised ahead of schedule earlier this year. Unit 4 was commissioned in winter and, according to Zuma, this contributed to the stability of the system and no load shedding having been implemented.
On completion Ingula will feed more than 1 300 MW to SA’s power system. Zuma said this will bring electricity power and a new quality of life to approximately 500 000 homes which is similar to powering a municipality the size of Nelson Mandela Bay Metropolitan city.
READ: Eskom connects all Ingula units to the grid
The Ingula Power Pump Storage Scheme by Eskom has injected about R3.5bn into local economies in the area, according to Zuma.
"It has created thousands of jobs with 55% of the total Ingula labour force being recruited from local communities and municipalities in the KwaZulu Natal and Free State provinces," said Zuma.
"It is also very important to us that the Ingula Power Pump Storage Scheme is moving SA a step closer to the ANC government’s dream of extending electricity to all South African households."
He said it helps to diversify SA's energy mix and to inspire investor confidence, "which will ultimately result in a more prosperous economic and social well-being for all citizens".
Zuma also honoured the 12 workers who lost their lives during the construction of Ingula.
At the same event Minister of Public Enterprises Lynne Brown said she is pleased that through Eskom’s new turnaround strategy it has made steady progress with noteworthy improvements.
"Eskom is on a sound operational and financial footing compared to a year ago, announcing a net profit (after tax) for the 2015/2016 financial period of R4.6bn," said Brown.
"This has contributed to operational and financial sustainability for the company and resulted in reliable electricity supply for the country."
She pointed out that Eskom has not implemented load shedding for the past 11 months. Eskom is aiming to achieve 80% plant availability, 10% planned maintenance and 10% unplanned maintenance over the medium term.
READ: Why Medupi and Kusile are Eskom's Achilles heel
"Results have already been realised, as the best plant performance was achieved during June 2016 with the energy availability factor being over 80% and the unplanned maintenance at 9.3%," said Brown.
In her view, Eskom has made excellent progress on the new build programme with the commercialisation of Medupi Unit 6 in August last year and Ingula Unit 4 in June 2016, supplying more than 1 000 MW collectively to the grid.
Eskom’s new revised borrowing programme totals R327bn, covering the period April 1 2016 to March 31 2021. To date Eskom has secured external funding for its capital projects with 53% funding secured to date.
"Through their new corporate strategy, the aim is to ramp up capacity for economic growth, as they make progress on the new build programme, as well as add new capacity from IPPs to the grid, primarily from renewables," said Brown.
"In terms of nuclear, the Minister of Energy has indicated that Eskom will serve as the owner and operator of this nuclear capacity."
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