Medupi Power Station cost increases to R105 billion

MAY 29, 2015

Public Enterprises Minister Lynne Brown on Thursday said that the latest projected cost to complete Eskom's Medupi Power Station is R105 billion, which is an increase from the initial estimate of R78 billion in 2007.

The completion of the coal fired power station, which is expected to generate a total of 5000 megawatts of electricity when it is completed by 2021, has seen many delays caused by construction worker strikes and technical problems.

The first of its six units was synchronised to the national grid two months ago.

Eskom spokesperson, Khulu Phasiwe, says much of the escalating costs were due to external conditions, like the strike and the reconstruction of boilers.

Minister Brown has also revealed that Eskom will be decommissioning 22 of its older power stations between 2020 and 2056 because these power stations will reach their lifespan of 50 to 60 years.

Koeberg Nuclear Power Plant in Cape Town will be decommissioned in 2045.

Coal supplies are expected to have a shortfall from this year escalating in two years’ time.