Electricity Markets in South Africa16 October 2015

Presented by:

Rogeema Kenny

Presentation Content

• South Africa and Eskom overview• Generation Mix• Facts & Figures• Challenges– Energy theft– National power crisis

South Africa Eskom• Southern tip of Africa• 6 land neighbours• Atlantic and Indian Ocean• Consumes 45% of Africa’s

power• GDP per capita - $ 5,784• #1 on GINI index

• Founded in 1923• Public company in 2002• Generates 45% of electricity

in Africa• Regulated by NERSA• 42,000 MW nominal

generation capacity• 5.5 million residential

customers• 138 k other customers

Standard ratings

• Frequency – 50 Hz• System voltages– Transmission• 400 kV national grid• 765 kV, 800 kV HVDC

– Distribution• 132 kV, 66 kV

– Reticulation• 33 kV, 22 kV, 11 kV, 400 V, 230 V

Production & Consumption

Seasonal load profiles

Challenges – Energy theft

Efforts to curb tampering

Customer interface unit on customer’s property

Metering units (12) in vandal-proof, locked steel kiosk outside on sidewalk

Efforts to curb tampering

Customer interface unit on customer’s property

Metering units (12) in vandal-proof, locked steel kiosk outside on sidewalk

Interventions to combat theft

• Public awareness• Tipoff lines• Tamper fines • Repeat-offence penalties• Prosecution of offenders• Stricter monitoring

SA Power Crisis - HistoryEarly 1990’s – Eskom

foresees new capacity requirements for

2005-2008

Govt opts to bring external players to the

power market

No external parties show interest in investing in new

generation capacity

2005 – Permission is granted to Eskom to add more generation

2007/2008 – SA experiences rolling

blackouts

SA Power Crisis - Consequences

• 2007 – rolling blackouts• Quick fix generation needed• New Build program• Above average tariff increases (tariffs were not

cost-reflective)• Aggressive DSM initiatives – rooftop solar

subsidies, free CFL replacements• Aggressive renewable energy targets

SA Power Crisis - progress

• Medupi unit 6 synchronised to grid• Kusile synchronisation – late 2017• 100 MW Sere wind farm complete• 1,332 MW Ingula pumped storage – fully

operational by end 2015• REIPP program – up to 3,725 MW