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Eskom mulls foreign investor conditions for Kusile transaction following road shows

Engineering News 3 June 2010.

… However, the key message was that they would insist on “appropriate returns”, which Dames acknowledged were “quite high”, so as to cover the risk of investing, as well as to mitigate the currency risk associated with the deal, given that the rand price received through the PPA would have to be converted to foreign currency…

http://www.engineeringnews.co.za/article/eskom-mulls-foreign-investor-conditions-for-kusile-transaction-following-road-shows-2010-06-03

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  • Not only is Kusile the most expensive coal power station in the world, but now, because Eskom doesn’t have the funds, we are trying to get outside investors to pick up part of the tab – naturally they want a high, risk-related return on their investment and this will make Kusile even more expensive.
    Let’s rather cut our losses, cancel Kusile and build a concentrating solar power plant on the site instead. Some of the steam and turbine plant contracts could possibly be downsized and converted. There will be cost penalties, but let’s hear what they are and then decide (what are the odds on Eskom pleading “confidentiality” again?).

    Analysis of the IRP2 input parameters on energy efficiency, demand side management, demand response and power conservation indicate that we don’t need Kusile anyway and will have time to build equivalent renewable energy plants instead.

  • Not only is Kusile the most expensive coal power station in the world, but now, because Eskom doesn’t have the funds, we are trying to get outside investors to pick up part of the tab – naturally they want a high, risk-related return on their investment and this will make Kusile even more expensive.
    Let’s rather cut our losses, cancel Kusile and build a concentrating solar power plant on the site instead. Some of the steam and turbine plant contracts could possibly be downsized and converted. There will be cost penalties, but let’s hear what they are and then decide (what are the odds on Eskom pleading “confidentiality” again?).

    Analysis of the IRP2 input parameters on energy efficiency, demand side management, demand response and power conservation indicate that we don’t need Kusile anyway and will have time to build equivalent renewable energy plants instead.

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