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Africa's Major Power Generation Projects Take Steps Towards Implementation Driven by Local Political Will

Reuel Khoza, Chairman of Eskom Holdings, has said that the $50 billion hydropower scheme could generate more than 40,000 MW, which would provide power for the African partners and have a significant surplus to be sold to Spain, Italy, and Southern Europe

Released Tuesday, March 15, 2005

Africa's Major Power Generation Projects Take Steps Towards Implementation Driven by Local Political Will

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston Texas). The massive Inga Rapids project, which proposes to place a major dam and hydroelectric power plant near the mouth of the Congo River, in western Congo Kinshasa (Democratic Republic of Congo), has been on the table, in some form or another, for at least the past decade, but has never come to the detailed feasibility planning stage, because of lack of cohesion and political will among the partners. Now, South Africa's state-owned, world class power utility company Eskom (Johannesburg, South Africa) has joined with the UN environment agency, UNEP, to present plans on the grandiose scheme to 'industrialize Africa and sell electricity to Europe.'

Reuel Khoza, Chairman of Eskom Holdings, has said that the $50 billion hydropower scheme could generate more than 40,000 MW, which would provide power for the African partners and have a significant surplus to be sold to Spain, Italy, and Southern Europe, via an inter-connector under the Mediterranean.

Khoza, attending a conference entitled 'Africa Business and Sustainable Development' at UNEP headquarters in Nairobi, Kenya, said that the New Partnership for Africa's Development (NEPAD) was giving the Inga project real political momentum, as prospects for peace were also concentrating minds. He also said that that the Congo project would qualify for carbon offset projects under the Kyoto Protocol, by which developed countries could trade off domestic emissions with clean energy schemes in developing countries.

Plans for the Inga scheme have concentrated on the Southern African Development Council (SADC) region, which is the fastest industrializing zone in sub-Saharan Africa, reports Afrol. Over 50% of the population does not have access to a clean water supply or electrical power.

The scheme may well become part of a grander plan for continental African power initiatives covering the south, east and west. At present, no schemes have been detailed on diverting water to the thirsty southern region, but Khoza said that the river would be diverted through power generating turbines and then be funneled back into the mainstream Congo to provide half of the power output of the scheme.

Environmental impacts from the scheme, which will cover the dammed area, regional fisheries, and agriculture have yet to be explored. Professional hydraulic engineering proposals for regionally integrated water schemes in Southern Africa have been around for fifty years, which could help in realizing the full beneficial power of the scheme.

In the last quarter of 2004, energy ministers from Angola, Botswana, Congo and South Africa signed an agreement for the Western Power Corridor Project, which aims to provide low cost electricity from the power utilities of the five countries. Under the umbrella of NEPAD, the project intends to build environmental hydropower plants in Congo, Angola, and Namibia, and increase trade in electricity by investing in joint venture projects that will allow the sharing of capital costs. A Memorandum of Understanding will be signed to allow the five members to hold 20% each of a JV company to be registered in Botswana's capital Gaborone.

In February, representatives from power utilities and governments met in Addis Ababa, Ethiopia to forward the Eastern African Power Pool (EAPP). Countries represented in EAPP will be Ethiopia, Kenya, DRC, Rwanda, Burundi, Tanzania, Uganda, Sudan and Egypt. The region has potentially abundant sources of hydropower and sustainable energy.

Mihret Debebe, General Manager of the Ethiopian Electric Power Corporation (EEPCo) said, "All regions of the continent except Eastern Africa by now have established their power pools. The next logical step, therefore, is to integrate the sub-regional power pools to create an African Power Pool. East Africa should not be the missing link. We have to make EAPP a reality."

Another element in the larger African energy picture is the West African Gas Pipeline project (WAGP), for which the shareholders in WAPCo were announced by ChevronTexaco (NYSE:CVX ) (San Ramon, California) at the end of 2004. These are ChevronTexaco, 38.2%; Nigerian National Petroleum Lagos, 26%; Shell (London, U.K.), 18.8%; and Takoradi Power Ghana, 17%.

The $590 million project will transport the gas 678 kilometers, from Nigeria to customers in Benin, Ghana, and Togo. The project is driven by the shared vision of the WAPCo members to make available clean, abundant, stable, and cost effective natural gas supply from Nigeria as fuel for power generation and industrial development. Start-up for the construction of the 470 mscf/day pipeline is expected in 2006.

For related news items see - August 13, 2002 - Congo Hydro Electric Potential Hinges on Pan African Electrical Transmission Structure Development and February 18, 2003 - Major Power Pool Projects Make Progress in Uganda and Congo.

Industrialinfo.com is the leading provider of global industrial market research. We specialize in helping companies develop information solutions to maximize their sales and marketing efforts.
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