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Energy intensive users prepared to reduce demand

Power utility Eskom’s biggest industrial customers, mainly mining and manufacturing companies, on Tuesday indicated that they would scale down demand to prevent rolling blackouts if the country’s electricity situation deteriorated.

Eskom this week cautioned that it was operating at an extremely low reserve margin. Spokesperson Hilary Joffe told Engineering News Online that the reduced operational margin was the result of up to 13% of the utility’s capacity being out of service, owing to planned maintenance being undertaken.

“We are undertaking a ‘deliver strategy’ resulting in increased planned maintenance being undertaken to mitigate the existing backlog. This, coupled with unforeseen system failures, had put the system under significant pressure,” she said.

However, Joffe indicated that the situation had slightly improved by Tuesday, noting that significant daily variations in electricity supply were expected into February.

Energy Intensive User Group (EIUG) chairperson Mike Rossouw pointed out to Engineering News Online that Eskom had not yet requested industry to reduce electricity demand, but merely cautioned that it was operating at low reserve margins.

“The start of the year sees many industries starting up after the December holidays, resulting in demand sharply eroding Eskom’s operational margins. This period coincides with Eskom undertaking a lot of maintenance on its system, taking advantage of the hot summer months, with a lower electricity demand, to effect maintenance.”

EIUG members were “keenly aware” that total blackouts would be to the detriment of all South Africans, Rossouw said, adding that these companies were willing to cooperate with Eskom to reduce their electricity demand.

“It does not appear as if South Africa is in the same situation as in 2008,” he said, referring to the 2008 power crisis when the national grid nearly collapsed, forcing mines and smelters to shut for days.

Chamber of Mines spokesperson Jabu Maphalala echoed Rossouw’s comments, saying that the mining industry was aware of the tight power situation. “This is merely the continuation of a long-existing situation. Eskom has been in dialogue with the mining industry over the last five years, and our members have responded positively,” he said.

Maphalala emphasised that indeed the mining industry was the first responder to the electricity supply situation in 2008, and had since made significant reductions in its electricity demand. He pointed to the industry currently optimising its energy usage.

Meanwhile, the world’s largest miner BHP Billiton, with significant aluminium smelting operations in Southern Africa, said that its power contracts allow Eskom to interrupt the supply of electricity to all of its aluminium smelters (subject to defined conditions), not just the KwaZulu-Natal operations, in times when Eskom is unable to meet the South African national demand.

“This causes a loss of production at these smelters. We work closely with Eskom to do all we can to protect the supply to our smelters, and other operations. We have established a joint team that proactively manages the situation, as well as deals with the load shedding as it is happening in real time,” BHP Billiton spokesperson Kesagee Nayager said in a statement.

“We receive good cooperation from Eskom which allows us to reduce load on the potlines that can best accommodate the load shedding. We also have other technical plans in place to minimize the interruptions,” she added.

Since 2008, BHP Billiton SA has voluntarily reduced its base load power consumption at the smelters by 10% to assist Eskom’s supply position. The contractual load shedding is in addition to this reduction.

“We have, and will maintain that position in South Africa as a contribution to mitigating our country’s power crisis,” the company said.

Further, diversified miner Anglo American indicated that it is positive about the fact that there had been early notification of potential load shedding, and as a result the company have prepared for the eventuality.

“Anglo American will make the required adjustments when necessary,” spokesperson Hulisani Rasivhaga said in a statement.

Source - EngineeringNews

 

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