“Testing and commissioning is now under way,” IPSA said in a statement to the JSE on Friday. The 18-megawatt plant at Newcastle will be the country’s first independent gas-fired power plant, it added.
South Africa experienced widespread power cuts on Thursday as more than a quarter of the state-owned utility’s 36 800-megawatt capacity was unavailable. Eskom Holdings, which supplies 95% of the country’s power, hasn’t kept pace with economic growth. BHP Billiton, which has three aluminium smelters in southern Africa, and Impala Platinum Holdings, the world’s number two platinum producer, lost output.
IPSA said it’s applying to the government to be considered eligible to receive carbon credits for cutting greenhouse-gas emissions under the Kyoto Protocol. The credits are sold as a commodity through international exchanges.
The plant could get “a material level of carbon emission reduction certificates, which would be an important source of revenue”, IPSA said.
Shares of the company rose 20c, or 3,3%, at R6,20, valuing the company at R410m. – Bloomberg