Department of Energy Integrated National Electrification Programme February 2011
BACKGROUND After 1994 electrification programme was endorsed as part of government s RDP initiative During 2001 the government took responsibility for funding electrification programme The funds are made available from the fiscus New drive is to increase access to electricity from 81% to 92% by 2014 2
OBJECTIVES OF INEP PROGRAMME To manage the electrification planning, funding and implementation process, with the aim of addressing electrification backlog so as to reach Universal Access Our Focal areas Managing the electrification planning process Managing the funding allocation process Managing the electrification implementation process Monitoring the programme in regard to the Division of Revenue Act (DoRA), Public Finance Management Act. 3
OBJECTIVES OF INEP PROGRAMME Integrate electrification with other programmes (e.g. Breaking New Ground, eradication of informal settlements) by other departments with the view of addressing the objective of poverty alleviation and job creation. Ensure full participation of local government in the planning and implementation process by using IDPs. 4
GENERATION Electricity is Generated by burning of fossil fuels (coal, oil, or natural gas), use of nuclear technology and hydro capability 1 ELECTRICITY VALUE CHAIN 2 TRANSMISSION SUBSTATIONS MUNICIPALITIES POWER STATIONS DISTRIBUTION SUBSTATIONS TRANSMISSION LINES TRANSMISSION (400/275 kv) High Voltage electricity is carried between Generation and required Distribution through Transmission networks (or Transmission grids) 3 DISTRIBUTION LINES DISTRIBUTION (132/33 kv) The distribution networks collect stepped down electricity from the transmission networks and deliver it to Redistributors /End Users The voltage levels of electricity are further transformed to meet Distribution requirements RETICULATION HV LINE (11 & 22kV) RETICULATION LV LINE (380/220V) SERVICE CONNECTION Customer consumption is measured at the point of supply in KWh. This information is used to measure and bill 5consumption levels utilised/sold
APPROACH TO UNIVERSAL ACCESS Households( rural, urban & farm dweller houses) Schools and Clinics Grid Non Grid Universal Access 20A free connection Solar Home Systems 50w free connection Free Basic Electricity Policy Indigent households
CHALLENGE: EXAMPLE OF ELECTRIFIABLE INFORMAL SETTLEMENT (TSHWANE MAHUBE VALLEY)
EXAMPLE OF UN-ELECTRIFIABLE INFORMAL SETTLEMENT
TYPICAL EC TERRAIN
FUNDING MODEL Fiscal Grid Electrification Eskom Municipalities Donor Funding (KfW,EU) Non Grid Electrification Concessionaires National Treasury Department of Energy Implementing Agents Licensed Distributors Service Providers
NATIONAL BACKLOG (HOUSEHOLDS) Mpumalanga, 6.57% Northern Cape, 1.46% North West, 5.69% Western Cape, 5.32% Eastern Cape, 19.88% Limpopo, 10.04% Free State, 5.92% Gauteng, 21.11% Kwazulu Natal, 24.00% 11
PROVINCIAL BREAKDOWN - BACKLOGS PROVINCE BACKLOG % BACKLOG INFORMAL BACKLOG FORMAL BACKLOG Eastern Cape 673,694 19.88% 67,369 606,325 Free State 200,633 5.92% 70,222 130,411 Gauteng 715,195 21.11% 572,156 143,039 Kwazulu-Natal 813,315 24.00% 162,663 650,652 Limpopo 340,064 10.04% 51,010 289,054 Mpumalanga 222,755 6.57% 44,551 178,204 North West 192,774 5.69% 48,194 144,581 Northern Cape 49,375 1.46% 17,281 32,094 Western Cape 180,351 5.32% 126,246 54,105 Total 3,388,156 100.00% 1,159,691 2,228,465 12
MTEF ALLOCATIONS AND ESTIMATED OUTPUTS ALLO- CATION 2010/11 ESTIMATED CONNECTIONS 2011/12 ESTIMATED CONNECTIONS 2012/13 (R'000) (R'000) (R 000) ESTIMATED CONNECTI- ONS Municipal allocations R 1,020,104,000 80 000 R 1,096,612,000 80 000 R 1,551,443,000 85 000 Eskom Allocations R 1,751,780,000 100 000 R 1,902,186,000 100 000 R 1,914,057,000 125 000 Non Grid allocation R 68,200,000 10 000 R 70,861,000 10 000 R 86,370,000 10 000 Total allocation R 2,840,084,000 190 000 R 2,937,285,000 190 000 R 3,551,870,000 190 000 13:43 13
34,200 30,900 37,100 32,900 42,200 41,100 40,200 41,200 37,000 39,200 35,800 34,900 31,600 48,800 44,500 39,600 35,300 58,900 54,900 70,700 75,500 75,300 73,200 78,200 82,200 78,800 93,900 98,100 114,700 119,500 122,400 CURRENT CONNECTION RATE VS REQUIRED 140,000 120,000 High Road Middle Road Low Road 100,000 80,000 60,000 40,000 20,000 0 07/'08 08/'09 09/'10 10/'11 11/'12 12/'13 13/'14 14/'15 15/'16 16/'17 17/'18 18/'19 19/'20 20/'21 21/'22 22/'23
Backlog status; ALLOCATION CRITERIA Electrification projects identified as part of the Integrated Development Planning (IDP) process; Rural bias; Development nodal zones (identified as part of ISRDS process); Past Performance of licensed Distributors; Existence of completed houses as a preferred scenario; Area status (proclaimed / un-proclaimed); and Commitments not addressed during re-gazetting due to unavailability of funds. 15
INEP SHORT TERM OBJECTIVES vs OUTCOME OBJECTIVES Existing homes (formal) that were constructed within 2 years timeframe all electrified. Address all political hotspot with service delivery protests Breaking New Ground Projects in urban areas to relieve informal settlements supported (including bulk projects). All outstanding formal schools electrified Build bulk projects to open up access in specific targeted rural areas. OUTCOME No formal RDP completed without electricity All hotspots identified and addressed All identified BNGs in Metros and secondary cities prioritized. Universal access to schools Complete bulk projects Upgrading of bulk projects where electrifications cannot proceed without the upgrade. Completed upgrade bulk projects. 13:43 16
MUNICIPAL PROGRAMME (2010/11) PROVINCE BULK INFRASTRUCTURE HOUSEHOLDS CONNECTIONS TOTAL EASTERN CAPE R 123,650,500 R 216,207,500 19,466 R 339,858,000 FREE STATE R 34,837,000 R 43,226,000 8,865 R 78,063,000 GAUTENG R 0 R 77,200,000 14,026 R 77,200,000 KWAZULU R 0 R 219,851,000 8,985 R 220,501,000 LIMPOPO R 0 R 128,000,000 26,614 R 128,000,000 MPUMALANGA R 10,000,000 R 57,300,000 9,975 R 67,300,000 NORTH WEST R 0 R 31,800,000 6,014 R 31,800,000 NORTHERN CAPE R 10,702,000 R 10,653,000 1,900 R 21,355,000 WESTERN CAPE R 5,770,000 R 50,257,000 8,960 R 56,027,000 TOTAL R 184,959,500 R 834,494,500 104,805 R1,020,104,000 17
ESKOM PROGRAMME PROVINCE BULK INFRASTRUCTURE HOUSEHOLDS CONNECTIONS TOTAL EASTERN CAPE R 99,898,376.99 R 424,378,607.81 35,036 R 552,280,000 FREE STATE R 0.00 R 39,271,731.87 3,871 R 38,921,000 GAUTENG R 40,475,040.73 R 44,032,992.25 4,671 R 111,705,000 KWAZULU NATAL R 143,834,598.10 R 270,689,700.95 20,984 R 409,294,000 LIMPOPO R 10,718,907.00 R 153,765,288.95 14,851 R 196,663,000 MPUMALANGA R 0.00 R 114,724,940.48 7,539 R 107,378,000 NORTH WEST R 25,084,277.02 R 128,710,377.26 1,596 R 190,612,000 NORTHERN CAPE R 9,252,240.50 R 24,731,481.29 3,711 R 48,318,000 WESTERN CAPE R 35,389,362.35 R 50,353,885.55 2,496 R 96,609,000 TOTAL R 364,652,802.69 R 1,250,659,006.39 94,756 R 1,751,780,000 18
ESKOM PROGRESS TO DATE Province Total Planned Capex (Incl. VAT) Total Planned Connecti ons YTD Actual Connecti ons YTD Planned Connectio ns YTD Actual CAPEX (Incl VAT) YTD Planned CAPEX (Incl Vat) Eastern Cape R 424,378,607.81 Free State R 39,271,731.87 Gauteng R 44,032,992.25 KZN R 270,689,700.95 Limpopo R 153,765,288.95 Mpumalanga R 114,724,940.48 North West R 128,710,377.26 Northern Cape R 24,731,481.29 Western Cape R 50,353,885.55 Grand Total R 1,250,659,006.39 27,932 7,939 18,334 3,990 3,665 4,028 4,707 3,711 3,518 16,384 10,386 10,992 14,262 14,052 12,898 8,975 6,074 6,936 10,800 7,553 8,355 2,566 1,641 2,477 6,110 3,057 3,815 95,726 58,078 71,353 R 181,136,095.42 R 269,581,097.73 R 25,920,633.04 R 36,031,013.99 R 26,741,539.12 R 36,178,520.14 R 188,360,461.41 R 214,763,997.13 R 108,533,551.17 R 131,118,469.44 R 52,739,156.10 R 79,821,968.50 R 72,879,998.06 R 100,095,785.15 R 18,977,520.15 R 20,093,949.98 R 27,982,199.90 R 30,894,652.26 R 703,271,154.37 R 918,579,454.32
MUNIC PROGRAMME ALLOCATIONS (2011/12) PROVINCE BACKLOG HOUSEHOLDS BUDGET BULK INFRASTRUCTURE TOTAL ALLOCATION EC 18.82% R 160,188,800.00 R 30,000,000.00 R 220,188,800.00 FS 5.80% R 34,000,000.00 R 30,000,000.00 R 70,000,000.00 GP 22.66% R 80,000,000.00 R 30,000,000.00 R 186,000,000.00 KZN 23.73% R 232,319,000.00 R 14,000,000.00 R 258,319,000.00 LIM 9.36% R 90,400,000.00 R 10,000,000.00 R 114,400,000.00 MP 6.61% R 65,187,550.00 R 18,250,000.00 R 87,000,000.00 NW 5.69% R 40,794,000.00 R 4,000,000.00 R 52,000,000.00 NC 1.45% R 2,612,200.00 R 24,000,000.00 R 46,612,200.00 WC 5.88% R 20,092,000.00 R 30,000,000.00 R 62,092,000.00 TOTAL (Actual) 100.00% R 725,593,550.00 R 190,250,000.00 R 1,096,612,000.00
ESKOM ALLOCATIONS (2011/12) PROVINCE BULK INFRASTRUCTURE HOUSEHOLDS PRE- ENGINEERING CONNECTIONS TOTAL EASTERN CAPE 170,732,045.96 368,066,871.45 7,167,248.65 25,385 545,966,166.06 FREE STATE - 16,685,340.04 8,215,133.89 2,377 24,900,473.93 GAUTENG 6,173,395.97 137,397,401.29 1,053,158.90 13,454 144,623,956.16 KWAZULU 155,904,827.94 280,083,587.93 14,250,000.00 15,725 450,238,415.87 LIMPOPO 23,088,740.34 155,287,051.78 6,193,143.48 14,634 184,568,935.60 MPUMALANGA 17,100,000.00 91,201,524.35 2,977,680.00 6,891 111,279,204.35 NORTH WEST R 9,381,048.09 110,041,858.99 8,098,535.32 8,816 127,521,442.39 NORTHEN CAPE - 55,754,561.45 2,175,512.65 5,817 57,930,074.10 WESTERN CAPE 29,265,063.38 53,783,137.86 6,857,283.53 6,304 90,265,484.77 TOTAL 402,264,073.59 1,268,301,335.14 56,987,696.42 99,403 1,737,294,153.25
ESKOM ALLOCATIONS (2011/12) PROVINCE BULK INFRASTRUCTURE HOUSEHOLDS PRE- ENGINEERING CONNECTIONS TOTAL EASTERN CAPE 170,732,045.96 368,066,871.45 7,167,248.65 25,385 545,966,166.06 FREE STATE - 16,685,340.04 8,215,133.89 2,377 24,900,473.93 GAUTENG 6,173,395.97 137,397,401.29 1,053,158.90 13,454 144,623,956.16 KWAZULU 155,904,827.94 280,083,587.93 14,250,000.00 15,725 450,238,415.87 LIMPOPO 23,088,740.34 155,287,051.78 6,193,143.48 14,634 184,568,935.60 MPUMALANGA 17,100,000.00 91,201,524.35 2,977,680.00 6,891 111,279,204.35 NORTH WEST R 9,381,048.09 110,041,858.99 8,098,535.32 8,816 127,521,442.39 NORTHEN CAPE - 55,754,561.45 2,175,512.65 5,817 57,930,074.10 WESTERN CAPE 29,265,063.38 53,783,137.86 6,857,283.53 6,304 90,265,484.77 TOTAL 402,264,073.59 1,268,301,335.14 56,987,696.42 99,403 1,737,294,153.25
UNIVERSAL ACCESS (CHALLENGES) Challenges in the Electricity industry in South Africa Ageing electricity infrastructure Minimum or no investment by respective distributors (municipalities) in the operation and maintenance of the electricity infrastructure to date, hence lack of maintenance. Limited or lack of adequate skills at local government level for operation and maintenance electricity infrastructure. 23
UNIVERSAL ACCESS (CHALLENGES) cont d Insufficient programme funding Building of new bulk infrastructure in rural areas Refurbishment and rehabilitation of electrical infrastructure Building municipal capacity without negative impact on service delivery Structured Planning approach (COGTA, Human Settlement etc) Technology Innovations (integration of other sources of energy) Project Management Resources Management (Contractors, Consultants, etc) 24
NON-GRID TYPICAL INSTALLATION 25
NON GRID PROGRAMME
VANDALISM EXPERIENCE Vandalised 27
Social Facilitation MITIGATION Use Schools as community centers (watching soccer and photocopying). Uses of system for cell phone charging for community. Innovative installations Security guard Engage the DBE/DOH for the repair of vandalized systems. 28
CONCLUSION 92% target by 2014 is feasible. Low backlog municipalities and Provinces (NC, FS and NW) will reach universal access by 2012/13 FY. Metros and Informal settlement strategies will provide more focus and differentiation from the rural strategy. Bulk challenge in rural areas needs a more focused approach. 29
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Amount of interviewed customers Amount of Interviewed Customers 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Amount of customers Amount of interviewed customers CONCLUSION SHS Lighting load profile Cellphone charging load profile 20 18 16 14 12 10 8 6 4 2 0 20 15 10 5 0 00:00 02:00 04:00 06:00 08:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 Series1 Hours Hours Radio use load profile TV Use Load Profile 20 15 10 5 0 20 18 16 14 12 10 8 6 4 2 0 Hours Hours 30