27 February 2009 – Eskom has received three independent power project proposals from a prominent management company, TWP Holdings.
The propositions, which are currently under evaluation by Eskom, focus on using biowaste as a source of energy, specifically the waste products of timber milling.
The company has confirmed that they will be working with timber producers in George, Knysna and Richards Bay and are looking to develop 7,5 megawatt power plants. The necessary investment for this would be approximately R120 million rand per plant but it is a green project earning carbon credits and will produce power where Eskom needs it.
The venture is also deemed to be economically possible without any government aid. The investment division of the management company leading this project has the necessary resources to raise funding for the three IPPs. The timber suppliers will also be the equity partner to the management company, thus they will essentially be receiving free feedstock for the project.
The problem with renewable energy projects is that they are quite expensive but the long-term benefits need to be taken into account when negotiating feasibility.