US consortium to power up Coega

COEGA IS one of two sites for new open cycle
gas turbine power stations that are being built
by a consortium headed by the AES Corporation
of the United States.
AES is the preferred bidder to build, own and
operate two open cycle gas turbine peaking
power plants – a 760MW plant in KwaZulu
Natal Province and a 342MW plant in Coega.
When fully operational, the Coega IDZ is
expected to consume 4 000MW of power.
The bulk of this is due to be supplied from
Mpumalanga through an upgrade to the Eskom
power lines to the Eastern Cape.
Eskom also has plans for a nuclear power
plant about 120 km down the coast from
Coega.
According to the Department of Minerals
and Energy, the AES power will be sold through
a fifteen year power purchase agreement with
Eskom. Financial closure is expected by early
December 2007, with commercial operations
expected to begin by the end of 2009.
The AES consortium includes three South
African Black Economic Empowerment (BEE)
partners: Tiso Energy, Mbane Power and Kurisani
Youth Development Trust, the investment arm
of loveLife.