South Africa: Dedisa Peaker Power Project begins operation

08 October 2015

Commercial operation has begun at the independent gas-fired Dedisa Peaker Power Project in South Africa. The 335 MW gas-fired plant is located in the Coega Industrial Development Zone, Port Elizabeth.

The power plant which was constructed at an estimated cost of US $0.26bn was an initiative of the Department of Energy.

The Dedisa peaker Power Project in South Africa was constructed by a group of companies comprising ENGIE, Legend Power Solutions, Mitsui&Co and Peaker Trust who are representing the community.

The companies will also own it and operate it under a contractual agreement.
The Dedisa Peaking Power project comes in as the first large scale independent power project initiated by the Department of Energy together with the 670MW Avon project which is located near Durban and was constructed at US $0.44bn.

Power generated by both plant would be sold to the National utility-Eskom under a 15-year power purchase agreement (PPA). Both plants are adjacent to high-voltage Eskom substations with electricity being fed into the transmission system at 275 kV and 400 kV respectively.

During the construction period, 1400 people were employed, 70% from the local community, there is 57% black management and in excess of 2.3% of payroll spent on skills development initiatives. Its operation will also create more employment both permanently and in the short term.

Peaker Trust, a representative of the community ownership of the project has 10 percent of stake in the plant and the dividend they get from the plant operation will help fund socioeconomic development initiatives.


Read the latest issue

Latest Issue