Before 2008, Eskom operated only two gas-fired peaking stations.
During 2007, two new open-cycle gas turbine (OCGT) stations
were built and commissioned. The cost of electricity generated
by the OCGTs is high due to fuel costs, so their use is ideally
limited to peaking and emergency generation. However, with
the power shortages in 2007/8, these plants were used much
more than was budgeted. The two new OCGT stations used
318 million litres of diesel during the year.
Fuel procurement for the OCGT plant is particularly challenging
because of uncertainty around the timing and extent of usage
of the plant. With suppliers requiring long lead times for new
orders of liquid fuel, it is par ticularly challenging to meet such
production requirements, while at the same time maintaining
economic stock levels.
The price of diesel fuel fluctuates with changes in the price of crude
oil and the exchange rate. The effect of the increasing oil price
combined with a weakening R/USD exchange rate has increased
the cost of diesel by 60% during the financial year. The average
cost per litre consumed has increased by 34% over the last year.
Hedging opportunities for diesel fuel are being investigated.
| |
2008 |
2007 |
2006 |
| Diesel usage (million litres) |
345,9 |
11,3 |
25,3 |
