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Cut electricity consumption with automation - Watt Now Magazine

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500 MW wind-power<br />

generating plant approved<br />

W<strong>Watt</strong> Energy<br />

Hong Kong Energy is to build and operate a 500 MW wind<br />

power project at a cost of about HK$540-million. It will be<br />

funded by the company’s internal revenues and bank loans.<br />

The project has been approved by the Development and<br />

Reform Commission of Siziwang Qi.<br />

The company will purchase 33 wind turbines and turbine towers at a<br />

total cost of HK$393-million. It is the first major wind power contract<br />

in Hong Kong although several other projects are awaiting approval.<br />

Hong Kong has not suffered the extreme power shortages that have faced<br />

mainland China over the last few years.<br />

Hong Kong Energy was established in May this year and the company’s<br />

chief executive Eric Oei says that it is gratifying to see that new projects<br />

can be approved so quickly and so efficiently. The company plans to<br />

introduce other renewable energy projects to ensure that Hong Kong has<br />

suffcient available <strong>electricity</strong> to keep the region globally competitive.<br />

China is investing heavily in nuclear power stations to augment the<br />

existing mainly coal-fired generating plants that provide enormous<br />

quantities of <strong>electricity</strong> in an attempt to keep pace <strong>with</strong> the rapid economic<br />

growth that has consistently been above ten percent a year for the last few<br />

years.<br />

Private sector urged to generate power<br />

South Africa has been urged to encourage<br />

private sector participation<br />

in the <strong>electricity</strong> sector by the chief<br />

executive of Business Unity South<br />

Africa, Jerry Vilakazi, who says the government<br />

must create an environment that is “conducive<br />

to investment”.<br />

Eskom is currently responsible for generating<br />

95 percent of all <strong>electricity</strong> used in South<br />

Africa and private companies have been reluctant<br />

to invest in the energy sector because the<br />

low prices charged per unit of electrical power<br />

make it difficult to justify the enormous investments<br />

required to generate power.<br />

The government has been accused of<br />

deliberately keeping <strong>electricity</strong> prices artificially<br />

low to benefit the poorer people. Vilakazi points<br />

out that the rationing of power by Eskom earlier<br />

this year resulted in a 22 percent decrease in<br />

mining production alone. He says the economic<br />

consequences of a shortage of power are<br />

debilitating for industrial manufacturers and<br />

for commercial operations in South Africa<br />

which have lost millions in turnover because of<br />

the power cuts.<br />

In a separate development, deputy president<br />

Phumzile Mlambo-Ngcuka confirmed that<br />

government would be forced to re-think its<br />

growth targets and re-evaluate its povertyalleviation<br />

goals if the power crisis is not<br />

resolved.<br />

She says that the country’s continued<br />

economic growth has placed further strains on<br />

the supply of power making it more difficult for<br />

Eskom to meet the demand among industrial<br />

users who have been asked to cut <strong>electricity</strong><br />

<strong>consumption</strong> by at least ten percent.<br />

The <strong>electricity</strong> problems facing South Africa<br />

are excerbated by the maintenance backlog in<br />

the distribution network which needs about<br />

R25-billion just to compe <strong>with</strong> the essential<br />

repairs according to Amos Masondo, chairman<br />

of the South African Local Government<br />

Association.<br />

He says the main challenge is the restoration<br />

of the distribution networks to an “acceptable<br />

level” will be a mammoth task as very little<br />

money has been allocated to maintaining the<br />

distribution infrastructure.<br />

July 2008<br />

34

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