The first unit the new 4,800MW Medupi power station in South Africa's Limpopo province may not be ready by the end of 2012 as currently planned, state-owned utility Eskom has said.

Delays in the building of boilers by Hitachi were blamed for the possible setback, which could spark power supply disruptions to the platinum group metals mining industry.

"With a year to go, we are concerned that the performance of some contractors could put the schedule at risk," Eskom chief executive Brian Dames told Parliament's Portfolio Committee on Public Enterprises.

"We will take whatever action is required to mitigate the risk and ensure delivery."

The boiler contracts for the Medupi and Kusile power stations, which were awarded to Hitachi and Chancellor House, are worth R38.5 (£3.1 billion).

A more detailed update on how the Medupi power station is progressing will be provided when Eskom releases its interim financial results on November 23rd.

While the delay has the potential to disrupt electricity supply to the mining sector and other industries, the extent of this will depend on how much South Africa's economy grows.

Manufacturing Circle chairperson Stewart Jennings told Engineering News: "We have to get this economy growing at rates better than four per cent. If we do that, I think Eskom will be in trouble."

Eskom recently announced plans to increase its coal reserves in a bid to avoid the supply shortages that affected the mining sector in 2008.

Source:

Power supply security to hinge on growth outlook as Eskom warns of Medupi delay (11/10/11)

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