Non-Subscriber Extract
Dark times for southern Africa
20 February 2008
The power supply crisis affecting much of southern Africa is causing some of South Africa's mines to temporarily halt or decrease operations despite residential customers bearing the brunt of the power cuts for most of January.
Eskom has tried to maintain domestic supplies by cutting its exports to Mozambique, Zambia, Zimbabwe and elsewhere. In response, Zambia has cut its own exports while some power-dependent states are looking to other suppliers in the region. Eskom has invited tenders for power-generating plants and new generating capacity is under development, but these will take years to come on stream.
The crisis has affected other countries in the region because their power grids are connected to South Africa via the Southern African Power Pool (SAPP). The pool is designed to allow electricity to be traded between member states and should eventually help to regulate supplies across southern Africa. New power plants are being developed in Namibia and Mozambique to export electricity to South Africa but at present Eskom acts as the main supplier, so the company's decision to cut exports has impacted beyond South Africa's borders.
FORECAST |
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South Africa and its neighbours are likely to be prone to power cuts for some time. In the long term, there should be sufficient generating capacity across southern Africa to ensure there is sufficient electricity. In the interim, the power crisis will impact on investor confidence and economic growth, and will also have domestic implications, with the population increasingly challenging the state over continuing socio-economic hardship. |