AES wins bid to build power plants - 27 Aug '07

aes wins bid to build power plants

the aes consortium was announced today as the preferred bidder to build and operate sa’s first privately owned power generation plants.

minerals and energy affairs minister buyelwa sonjica announced that aes - led by aes pacific ocean holdings and several local companies - has been selected to build and operate the gas turbine plants in durban and port elizabeth.

pending the finalisation of the contracts with aes, building was expected to start at the end of november. construction of the plants was expected to cost more than r5bn.

once completed the two plants would have a combined capacity of about 1000mw which would be sold to eskom.

"the power plants will contribute to meeting the country’s security of supply challenges," sonjica said.

the two power plants were expected to enter commercial operation towards the end of 2009.

the project is seen as a pioneering project to start private sector electricity generation. the aim is to have 30% of the country’s power generated by the private sector while eskom would generate the remaining 70%.