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South African-nigerian Free Trade Treat Likely - Politics (2) - Nairaland

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Re: South African-nigerian Free Trade Treat Likely by paniki(m): 5:32pm On Jul 05, 2013
solomon111: Sorry,we don't need your 'long' list.
Many of those things you think you can offer can be made in Nigeria by Nigerians.

It's true that Nigeria can make stuff but as Andrewza has been explaining, Nigeria does not have the capacity to be a competitive industrial base. Most things manufactured in Nigeria will always be found cheaper elsewhere, this due to the difficult business environment and it's not only limited to power. Once you fix power, you will be faced with other problems like logistics. But power problem alone shows the most bleak prospect for Nigeria.

The electricity problem is not something that will get sorted overnight. South Africa had blackouts in 2008 which prompted Eskom(state owned utility) to start building new power stations, those power stations are under construction and will be completed in 2017. In the meantime Eskom has been spending millions on adverts that tell people to not use power and in some instances they are forced to do this...

ESKOM has invoked its right to disrupt the power supply to BHP Billiton’s aluminium smelters in the case of an emergency as demand by households showed signs it will exceed the state-owned utility’s capacity to generate enough power this winter.

The demand forecast for the remainder of this week showed South Africa was on the brink of plunging into blackouts similar to those experienced in 2008.

Delays in commissioning the Medupi power plant and maintenance of Eskom’s existing power-generating facilities are largely responsible for reducing the utility’s spare capacity.

In the event of an emergency, Eskom intends to exercise its option to redirect over 2,000MW of power from the Hozatel smelter in KwaZulu-Natal and the Mozal smelter in Mozambique to the grid, as part of a supply agreement that allows it to interrupt the power supplied to the smelters for up to two hours a week, at any given time.

BHP Billiton SA had not yet been informed of how much power would be taken away from it, spokeswoman Lulu Letlape told Business Day on Thursday.

She said it was not yet clear how many of its potlines would be affected by a possible shutdown. If power to smelters is shut down, it forces the plant to operate at reduced capacity and it is usually costly to restart the smelter once power is fully restored.

BHP Billiton is Eskom’s single biggest consumer. In the 1990s, the company signed a controversial power supply agreement at a lower rate than other industrial customers, which Eskom has been trying to have reviewed since 2004 — so far unsuccessfully.

Eskom said on Thursday that it expected demand to peak at 35,364MW last night against the available capacity of 34,9740MW to meet that demand, resulting in a power deficit of 394MW.

"The risk that we flag is that our margins are very, very tight," said Eskom spokeswoman Hilary Joffe said. "There’s a long weekend coming up and that’s a good time to do maintenance."

Monday is the Youth Day public holiday.

Ms Joffe said the utility will be speeding up the maintenance of its power-generating fleet over the holiday weekend in an effort to raise its capacity and avert a collapse in the national grid as demand increases this winter.

Eskom’s margin is the thinnest since the power cuts struck Africa’s biggest economy five years ago, pushing commodity prices to records as gold and platinum mining companies halted operations for five days. With its power buyback programme over, Eskom intends to generate extra back-up power from other energy-intensive users, said Ms Joffe.

Demand is expected to remain high tonight, showing signs of falling only at the weekend, she said.

Next week, Eskom is expected to give an update on the progress of the build programme for its Medupi power station, which is expected to generate first power by December.

Eskom CEO Brian Dames told the parliamentary standing committee last month there were key areas that had to be sorted out in order to achieve the deadline, which included Alstom’s successful completion of tests on the software for the plant’s control and instruments, and repairing faulty welds on the boilers supplied by Hiatchi.

Eskom announced on Wednesday that it had resolved the labour issues at Medupi and Kusile which had also been an obstacle to the completion of work at the plants.

"Alstom can confirm that tests at Medupi are ongoing at this time and they are closely collaborating with Eskom," Alstom spokesman Thebe Mabanga said. "Final delivery will be communicated to our customer, Eskom, before being made public. Alstom remains committed to delivering on the Medupi project on time."
http://www.bdlive.co.za/business/energy/2013/06/14/eskom-will-divert-power-from-billiton-whenever-demand-exceeds-capacity
So good luck to Nigeria

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