South Africa: Private Power Generation Put on Hold

Johannesburg — Deteriorating global financial conditions had forced listed electricity company Independent Power SA (Ipsa) to adjust its operations and growth plans, it said yesterday.

Ipsa, which is listed on London’s Alternative Investment Market (AIM) and the JSE, owns SA’s first independent gas-fired power station, at Newcastle in KwaZulu-Natal.
The plant supplies power under contract to Eskom and City Power of Johannesburg. The company plans to increase capacity, to complement the existing plant.
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The company has made it its priority to install and commission new electricity capacity to bridge the widening gap between electricity supply and demand. Ipsa CE Peter Earl yesterday said SA and neighbouring countries had an urgent need for more electricity capacity.

But the unfavourable economic conditions have dealt a blow to Ipsa’s plans for additional capacity in Newcastle.

AllAfrica