System Status Briefing Phakamani Hadebe Interim Group Chief Executive 3 May 2018
Contents 1 Performance summary 2 Operational highlights 3 Generation performance 4 Distribution overview 5 Transmission 6 New build update 7 Conclusion
Eskom s operational performance and new build programme delivers results Performance summary Eskom has maintained operational performance for the year Energy availability has improved to 78% for the year ending March 2018 compared to 77.3% in the previous year During the 2017/18 financial year, the following capacity has been added to the national electricity grid: 2 387MW of new generation capacity, exceeding the year-end target of 1 460MW (March 2017: 1 332MW) 722.3km of new transmission lines, exceeding the year-end target of 677km (March 2017: 585km) 2 510MVA of new substation transformer capacity, exceeding the year-end target of 2 010MVA (March 2017: 2 300MVA) We have electrified 215 519 new customers for 2017/18 compared to 207 000 in the previous year and exceeded the year end target of 201 200 Eskom continues to focus efforts on increasing electricity demand and ensuring sustainable revenue collection Load shedding this winter is not likely, as we implement plans to manage a shift in plant performance and coal-stock levels. Eskom last load shed two and a half years ago on 14 September 2015 for 2h20min. 3 * Numerical data unaudited
Contents 1 Performance summary 2 Operational highlights 3 Generation performance 4 Distribution overview 5 Transmission 6 New build update 7 Conclusion
Operational performance 78% EAF vs. 71.1% in FY16 10,4% Planned maintenance vs. a 10.0% target 10.2% Unplanned maintenance vs. a 12% implied target 215 519 New connections to the grid vs. a target of 201 200 2 387 MW New Build capacity on the grid vs. a 1 460MW target for FY 17/18 2 510MVA Commissioned transformer capacity vs a 2 010MVA target for FY17/18 5 722.3km Installed transmission lines vs. 677km target in FY17/18
Operational highlights Highlights Generation Generation Description 78% availability (EAF) end 2017/18, compared to 77.3% for the same period last year, despite a deterioration from September 2017 Year-end planned maintenance at 10.4% compared to target of 10% Unplanned maintenance at 10.2%, against a target of 12% Transmission Best ever SM<1 performance of 2.09 against a target of 3.53 Zero major incidents during 2017/18 Distribution New electrification connections 215 519 against a target of 201 200 New Build Medupi Unit 5 & Unit 4 commercialised on 3 April and 28 November 2017 respectively, each with an installed capacity of 794MW Kusile Unit 1 commercialised on 30 August 2017, with an installed capacity of 799MW Kusile Unit 2 & Medupi Unit 3 first synchronised to the national grid on 24 March and 8 April 2018, respectively 722.3km transmission lines installed, exceeding target of 677km. 2 510MVA transformer capacity commissioned, exceeding 2 010MVA target 6
Contents 1 Performance summary 2 Operational highlights 3 Generation performance 4 Distribution overview 5 Transmission 6 New build update 7 Conclusion
Overall Generation has sustained the performance of the previous year, despite a deterioration in performance in the last quarter Highlights Description Plant performance 78% Availability (EAF) at the end of 2017/2018 financial year vs 77.3% in 2016/17 In March 2018, UCLF increased to 16.6%, as 3 units on general overhaul at Lethabo PS were not returned to service as planned Maintenance Open Cycle Gas Turbine (OCGT) usage Year-end planned maintenance was at 10.4% compared to a target of 10.0%. This is down slightly from 12.14% last year. UCLF was at 10.2%, improving from 10.56% for the same period last year Eskom OCGT load factor is at 0.56% for YR2017/18 compared to a target of 1%. OCGT spend for YR2017/18 was R320m, down from R340m in the previous year Environment Relative particulate emissions (kg/mwh sent out) was 0,27, against a target of 0.34 Specific water consumption (l/kwh sent out) was 1.30 against a target of 1.37 8
Although Generation achieved an Energy Availability Factor of 78% for FY2018, performance has declined in the last ~6 months Other losses (OCLF ) Generation performance for the 2018 financial year Percentage (%) Unplanned maintenance (UCLF) 6.4 8.4 8.4 4.6 7.5 10.5 10.3 7.7 11.6 10.3 7.8 6.4 8.3 9.9 8.2 11.1 Per month 13.2 11.8 12.7 16.6 13.7 15.3 14.5 Planned maintenance (PCLF) 1.1 0.7 0.4 0.5 0.9 0.9 1.1 0.7 2.6 3.2 2.6 2.8 1.5 2.3 11.1 10.2 10.4 16.1 8.9 Energy availability factor (EAF) Key Insights Eskom increased planned maintenance during Nov to Jan (summer months). Due to financial reasons, the majority of PCLF was phased during the latter part of the year. 82.3 83.0 84.8 87.2 83.4 78.7 80.4 76.6 70.5 69.7 70.2 69.6 78.0 72.6 In addition, some outages could not be postponed further and a decision was made to continue with higher PCLF despite high UCLF to ensure capacity is returned in time for winter demand increase. 1. April 20108 numbers are preliminary 2. Data as per official monthly stats 9 Increased breakdowns and units in extended cold reserve led to reduced availability since September 2017. 9
Open cycle gas turbine (OCGT) usage increased in the last 4 months FY2017/18 as a result of reduced plant availability OCGT performance GWh 70 60 50 40 30 20 10 0 Load Factor (%) Cost (R m) 1,4 Apr-17 1,1 May- 17 4,2 2,9 Jun-17 Jul-17 1,4 Aug- 17 1,7 Sep- 17 0,5 Oct-17 2,8 Nov- 17 18,2 Dec- 17 0,0 Jan-18 15,2 Feb- 18 68,4 0.08 0.06 0.24 0.16 0.08 0.1 0.03 0.16 1.01 0.0 0.94 3.82 6 10 13 12 8 9 5 10 41 5 44 158 1,2 Mar-18 Apr-18 0.07 TBC OCGTs (GWh) Insights Eskom has run OCGTs to manage the system between December 2017 and March 2018 The usage of OCGT s from December was due to reduced availability as a result of increased planned maintenance, coal supply, UCLF+OCLF OCGT load 0.56% at a total cost of R320m 10
Plans in place to address coal stock levels for stations below minimum stock days Coal stockpile levels are at 35 days, excluding Medupi and Kusile Six of the 15 power stations are below the required target. Measures are in place to address the current coal shortages. The recovery plan includes securing additional coal supplies and a redirection of coal stock to address the imbalance. Eskom has informed NERSA of the current coal supply challenges and planned remedial actions as per regulatory requirements. The situation cannot be compared to 2008 when the number of stockpile days was at an average of 12 days. Tenders are currently being evaluated to procure 100Mt of coal for the next five years, and sufficient coal to address the short-term shortfall
Eskom s maintenance planning shows that OCGTs will be required to meet peak demand Prognosis from the Tetris Maintenance Plan confirms that the system will need OCGT to meet peak demand in May 2018 and from August until December 2018 Eskom plans to optimise operations to reduce the use of OCGTs 12
Capacity Outlook until March 2019 50000 Available Capacity Gas units Operating Reserves PCLF UCLF Peak Demand Installed Capacity 45000 Winter UCLF 5500 MW UCLF Summer 6500 MW 40000 35000 PCLF Operating Reserve Average Planned Maintenance (PCLF) 4500 MW 30000 Gas 25000 Available Capacity 20000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2018 2019 13
Contents 1 Performance summary 2 Operational highlights 3 Generation performance 4 Distribution overview 5 Transmission 6 New build update 7 Conclusion
Distribution exceeded targeted performance for the FY 2017/18 SAIDI: Interruption duration 38.7 vs. target of 39.0 SAIFI: interruption frequency Approximately 350 643 km of distribution lines are maintained 18.7 vs. target of 20.0 Customers experienced a more reliable network performance even in the most challenging weather conditions 215 519 electrification connections vs 15 a target of 201 200
Distribution continues to exhibit operational excellence in sustaining network performance Highlights Technical Performance Smart meter installations Customer Growth/ Connections Description Achieved above target technical performance as measured through System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI) Maintenance index is on target and implemented in preparation for the Winter period. During Winter, localised outages tend to increase due to network overload as a result of increased illegal connections, vandalism and equipment theft. Plans are in place to limit the duration of these outages To increase revenue, 148 large power customers were connected - generating sales of 1 361GWh A total of 26 065 small customers were connected to the network Prepaid Technical. Metering Performance Exceeded the targeted installation of prepaid meters in Sandton, Midrand and Soweto at 36 738 installations against a target of 35 500. 16
We are on track to deliver Universal Access Number of Connections 194,374 158,016 207,436 200,000 Planned Actual 215,519 201,200 We have electrified more than 5 million households since 1991. Universal access has been reached in terms of clinics and we will continue to connect new clinics and schools as they are built. In the past two years Eskom has connected over 200 000 customers, per year 2015/16 2016/17 2017/18
Contents 1 Performance summary 2 Operational highlights 3 Generation performance 4 Distribution overview 5 Transmission 6 New build update 7 Conclusion
Transmission achieved the following highlights in FY2017/18 Highlights Description System performance For 2017/18 System Minute <1 is a new best ever reported performance of 2.09 against a target of 3.53 Zero Major Incidents have occurred in 2017/18 The number of interruptions in 2017/18 was reduced to 24 against a target of 34 Plant Performance Sustained high levels of maintenance execution with more than 99% of planned work executed Sustained excellent line fault performance per 100km of line, 1.86 against a target of 2.2 Substation plant reliability and availability attained with relatively few major plant failures RE IPP Energy Procurement Approximately 9 479 GWh procured from RE IPP s in 2017/18 in comparison with 7 227 GWh in 2016/17 (31 % increase) 19
Contents 1 Performance summary 2 Operational highlights 3 Generation performance 4 Distribution overview 5 Transmission 6 New build update 7 Conclusion
We remain focused on bringing new capacity online P80 schedule Achieved CO on or earlier than P80 FY 2015 FY 2017 FY 2018 FY 2022 Sere Wind Farm Mar-15 Ingula Unit 4 Mar-17 Jun-16 Ingula Unit 2 May-17 Aug-16 Medupi Unit 5 Mar-18 Apr-17 Kusile Unit 1 Jul-18 Aug 17 Kusile Unit 2 Jul-19 Medupi Unit 1 May-20 Kusile Unit 4 Mar-21 100 333 333 794 799 800 794 800 794 333 333 794 794 794 800 800 Medupi Unit 6 Aug -15 Aug-15 Ingula Unit 1 Jul-17 Aug-16 Ingula Unit 3 Jan-17 Jan-17 Medupi Unit 4 Jul-18 Nov-17 Medupi Unit 3 Jun-19 Medupi Unit 2 Dec-19 Kusile Unit 3 Aug-20 Kusile Unit 5 Nov-21 4 613 MW commissioned since 2015 & 10 750 MW commissioned since 2005. 6 382 MW to be commissioned over the next 5 years Kusile unit 6 (800MW) is scheduled for FY 2023 P80 dates CO = Commercial Operation
Contents 1 Performance summary 2 Operational highlights 3 Generation performance 4 Distribution overview 5 Transmission 6 New build update 7 Conclusion
Conclusion While the risk of load shedding always exist, it is not likely to occur this winter, as we implement plans to manage a shift in plant performance and coal-stock levels. We have set a target to improve plant performance and are on course to achieve plant availability of 80% with 10% of units on planned maintenance and 10% on unplanned maintenance by FY2018/19. Plans are in place to improve stockpile levels at the power stations, that are currently below minimum stock levels. We continue to fast-track the build programme with 6 382 MW to be commissioned over the next 5 years Collection of municipal arrear debt remains a challenge, however, we continue with our interventions and have enlisted the support of government to enhance our efforts. We continue to focus efforts on increasing growth in demand of electricity and ensuring sustainable revenue collection. We ask customers to be vigilant of the risks of illegal electricity connections and to report cable and electricity theft. Through a collaborative approach and relentless focus we are on a path to stabilise the organisation and to achieve sustained success for Eskom. 23