Shumba turns to low cost power production

04th October 2017
SUSTAINABILTY:Shumba MD -Mashale Phumaphi Source:The Midweek Sun


By Keikantse Lesemela - Reporter

Shumba Energy Chairman Alan Glegg says they continue to focus on low cost of production to drive and sustain power production to supply the regional industrial market as the international market is heading for deficit within three to five years. Commenting on the company’s financial report, Clegg said as the Southern African Power Pool (SAPP) continues to hold a major net deficit of over 30GW and older power plants are closed down, there is a need to cover the deficit.

The report indicates that from 2013 to 2030 electricity demand in South, East and Asian countries increases from 790TWh to 2.210 TWh and this triple demand in electricity will be primarily sourced from coal. Clegg said as the market is heading for a significant deficit within three to five years, prices will be forced upward to potentially unseen levels and highs.

“This development picture mirrors what is required in the Southern African Development Community region and Shumba has created the foundation to be ready to respond to those market needs,” said Clegg.According to the report, regional mineral economy politics led by resource nationalism in Tanzania and South Africa has brought negative impact on prospective risk investment in the sector, affecting the junior resource development company greatly. However the junior resources and energy fuels development market where Shumba resides in SADC have however shown resilience and remains very positive for Shumba energy as certain realisations have kicked in with both Africa’s central policy organisation, the African Union and its operational body, the African Union Commission for Trade and Industrial Development.

“We still need to develop a well planned economic, environmental and social introduction of viable and affordable new energy sources and related storage technologies,” said Clegg adding that this is why Shumba has already embarked on one solar energy project and will in the next period be actively researching other energy fuels, production and storage related investments for potential future diversification and sustainability of the company.

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