Understanding the current electricity supply challenges facing Eskom
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1 Understanding the current electricity supply challenges facing Eskom 1
2 Contents System performance Capacity expansion programme Load shedding Where we are now Short term initiatives 2
3 Overview Eskom s system is tight and load shedding is currently in progress in order to balance the supply and demand This will continue for the next 5 to 8 years until the first new base load coal-fired power station is built 3
4 System performance 4
5 Tight supply and demand Our reserve margin is currently 8 10% against an aspiration of 15% Power stations are being run harder A number of generation units in mid-life requiring major planned maintenance and refurbishment Some key transmission corridors are constrained The power system is now more vulnerable to unplanned events Increased probability of power interruptions and load shedding 5
6 Eskom s response to supply challenges Accelerate our energy efficiency drive (DSM) to save 3000MW Improve on current levels of plant performance Recovery Plans and National response plans in place Accelerated the capacity expansion programme or Partnering with stakeholders to manage the supply challenges Exploring international initiatives such as the Brazilian model of rationing power consumption 6
7 Short term initiatives 7
8 Energy efficiency Increased awareness and drive on demand side management programmes Solar water heating subsides Energy efficient lighting handout/exchange Residential geyser management Energy efficient motor programmes Targeted savings MW MW by 2025 Partnering with consumers Encourage, assist and incentivise efficient use of electricity 8
9 Coping with supply demand gap over the short term Co-generation contributions from other industries (benefit of 900MW to 1000MW) to use their waste heat streams to produce electricity which they can then sell into the grid. We are also seeking to introduce significant energy savings by key customers requesting a 10% reduction in consumption 9
10 Load shedding 10
11 What is load shedding? Initiated as a last resort to balance supply and demand Load shedding is a controlled way of cutting power to parts of the country when there is not enough electricity as a result of a shortage of capacity and a high demand Eskom removes load from the electricity network and rotates it to consumers To inform customers of interruptions in advance load shedding schedules are found on the Eskom website Eskom is currently exploring additional measures of informing the customer in advance i.e., advertising in newspapers and SMSs 11
12 The dial (Power Alert as seen on TV) The Dial shows the status of the electricity network especially during peak times The Dial has four colours i.e., green, red, orange and brown 12
13 The dial (Power Alert as seen on TV) Where we want to be! limited strain on supply, nationally use electricity wisely and switch off lights in unoccupied rooms/offices The Dial shows the status of the electricity network As the dial moves down from Green towards Brown, the probability of load shedding increases Once in Brown load shedding is in progress 13
14 What the colours mean (Orange) Starting to take strain The electricity supply, nationally, is under strain Switch off non-essential appliances for the duration of peak / until the status returns to green tumble dryers washing machines dishwashers pool pumps unnecessary lights 14
15 What the colours mean (Red) Have to reduce demand supply, nationally, is under increasing strain switch off additional appliances during peak period or until the status returns to orange stoves microwaves airconditioners kettles 15
16 What the colours mean (Brown) Feeling the crunch load shedding is in progress switch off all lights and appliances except minimal lighting and your television set 16
17 Long term - Capacity expansion programme 17
18 New build projects Currently in progress Base load Return to service (RTS) Camden, Komati, Grootvlei New power stations: Medupi Peaking Gas 1 (Ankerlig, Gourikwa) and Ingula Transmission 765kV and 400kV projects Other Capacity upgrade of Arnot In the future Renewables wind farm Project Bravo base load (coal) Project Lima -Peaking (pumped storage) Total MW:
19 Capacity expansion progress Two new gas-fired power stations in the Cape 962MW returned to service (Camden) Installed 430km additional transmission lines Construction work on the Medupi Power Station commenced during May 2007 Construction of a pumped storage scheme (Ingula) underway Additional projects in the pipe line to be approved Medupi coal fired power station in Lephalale Ingula pumped storage scheme near Ladysmith Return to Service of Grootvlei (Komatiand Camden) in Mpumalanga Gas 1 at Ankerlig (and Gourikwa) in the Western Cape 19
20 Billions over five years 14% Distribution Lines and cables Network improvements Refurbishment 2% Other Research development and demonstration 70% Generation Mothballed stations 2 Coal base load stations Hydro and gas options Nuclear plant Refurbishment 14% Transmission Network strengthening Cater for growth Refurbishment Over the next five years, Eskom will spend an average of R15 million lion per working hour 20
21 Transmission projects Botswana Medupi 2009/10 for integration of Medupi Power Station Dinaledi Mozambique Namibia Mercury Marang PRE TORIA WITBANK Majuba KOMATIPOORT Swaziland Kudu 2009 Perseus Beta Bloemfontein BLOEMFONTEIN 2011 Ariadne 2010 Melmoth RICHARD'S BAY Juno Hydra Gamma DE AAR DE AAR 2007 Delphi DURBAN Eros 2010 Umtata 765 kv 400 kv 2007 BEAUFORT WEST 2010 Neptune Omega CAPE T OWN Kappa Grassridge PORT ELIZABETH EAST LONDON 21
22 Power to Africa Eskom imports and exports power to neighbouring countries We have contracts in place to export to Botswana, Swaziland, Lesotho and Namibia A South African Power Pool (SAPP) emergency is declared when we go into load shedding Power supply to neighbouring countries is reduced during load shedding and at times down to zero We import power from Cahora Bassa 22
23 Where to go for more info Eskom customers will find the load-shedding schedules on the Eskom website: Click here 23
24 Who to contact Phone Eskom Contact Centres Please include account number or prepaid meter number and short description Refer all media queries and journalists to the media desk: / 3309 /3304 / 3343 / Cell phone:
25 Thank you 25
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