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.