Eskom’ s Ingula Pumped Storage Scheme power station of 1 332MW was initially supposed to have become fully operational in 2013; however, the project suffered numerous delays and costs are said to have spiralled to roughly R35-billion from an initial budget of R8.9-billion.
The escalating cost of the project was first reported by investigative journalism television programme Carte Blanche last year, and these claims were seemingly backed up by Eskom spokesperson Khulu Phasiwe, who confirmed in media reports that the project had been plagued by unexpected costs and delays.
“ So far we are doing everything possible to exceed the current amount that has been flaunted about. All we know at this stage is that the audited figures for the project is just over R26.8-billon,” he said, adding that a number of lessons had been learnt.
However, outgoing Eskom CEO Brian Molefe has rubbished the Carte Blanche report, describing it as a“ hopelessly inaccurate story” that failed to present the power utility’ s side. However, Molefe did not provide any clarity on the alleged irregularities or correct the budget amount presented by the programme. Molefe subsequently resigned from Eskom towards the end of last year, amid the release of former public protector Thuli Madonsela’ s report on state capture.
Meanwhile, commentators have pointed out that the cost of the Ingula delay is having a huge impact on South Africa’ s economy.
The hydropower station is planned to function as a peaker plant, generating 1 332MW of electricity during peak periods. It would have reduced Eskom’ s costly reliance on its diesel-powered open cycle gas turbines or, alternatively, reduced the need to revert to load-shedding had it been ready in 2012 / 13. Eskom’ s diesel bill in 2015 was said to have been about R1-billion per month and necessitated further tariff increases.
The final unit— Unit 3— of the Ingula Pumped Storage Scheme was synchronised to the national grid late last year. Eskom revealed that Unit 3 was previously synchronised to the national grid in March 2016 and supported the grid until 6 April 2016, when an‘ electrical incident’ occurred.