- Power system remains stable due to rigorous plant
- Plant availability has improved to 77.3% from
- 3 103MW added to the national grid as a
result of improved plant maintenance
- 8 030MW added to the national grid since
inception of the new build programme in 2005
- Eskom has a surplus of 5 600MW at peak, due
to improved plant performance and new additional capacity
- Export sale increased by 25%
- 162 104 customers connected to the grid in
the past 9 months
Tuesday, 24 January 2017: Eskom’s
improved generation performance and new build programme have delivered excess
capacity for the country.
The power system remains stable due to Eskom’s
rigorous plant maintenance which has seen an improvement in plant availability,
which has moved to 77.3% from 70.3% leading to 3 103 MW being added to the
national grid. The improvement in generation plant availability has re-enabled
Eskom to dispatch the least cost stations ahead of the more expensive stations.
Projections for the year end show that there will be a cost saving of R 238
New capacity will fuel the growth of the South
African economy. Since the build programme started in 2005, Eskom has added 8
030 MW to the national grid and over the next six years a further 9 103 MW
capacity will be added from the Ingula pumped storage scheme which will be
fully commissioned later this year, Medupi which will be fully commissioned in
2020, and Kusile in 2022.
Eskom currently has a surplus of 5 600MW at peak,
due to improved plant performance and new additional capacity that can meet any
increase in demand until 2021.
Eskom Chairman Baldwin Ngubeni said: “Today’s system
status update follows on the backdrop of positive interim results for Eskom,
but also follows the departure of Brian Molefe – an extraordinary leader whose
legacy will be that of turning Eskom around.
“Today’s system status update is a reflection of
the vision, dedication and hard work of thousands of men and women at Eskom and
its Interim Group Chief Executive, Mr Matshela Koko. Through their remarkable
tenacity and capabilities, the company has turned things around to deliver
solid and sustainable financial and operational performance, positively
impacting the South African economy. Today, I can call on all customers to
optimise on this surplus supply.”
Mr Koko said: “Surplus capacity on average every
day during the peak for this financial year is the size of Matla Power Station
(3 600 MW), this is excluding 2 000MW operational reserve. Going forward,
Eskom will continue to focus its efforts on increasing electricity demand and
ensuring sustainable revenue collection.”
Eskom has increased cross border sales by 25% and
aims to further increase domestic and export sales.
Mr Koko also highlighted gains made with the
electrification programme. “In the past nine months, Eskom has connected 162
104 new customers to the grid, with 150 747 customers energised and already
using electricity. We hope to electrify all households in South African in the
next two years,” he said.
Other highlights include the decreased usage of
open cycle gas turbines (OCGTs) due to improved generation availability. The
OCGT load factor for the second quarter of the financial year was 0.06% and for
the third quarter, 0.11%. “We expect minimal use of Eskom OCGTs to manage the
system for the rest of the financial year,” Mr Koko said.
The Distribution division continues to exhibit
sound technical performance and has exceeded the targeted installation for
smart meters for the third quarter, with actuals of 17 561 installations versus
a target of 12 000 installations.
Some of the key challenges facing the distribution
industry are huge under-investment in electricity infrastructure, high energy
losses as a result of inadequate revenue management systems and some utilities
consistently defaulting on their negotiated payment arrangements because of
“The effects of these shortcomings are detrimental
to the economic growth of the country and addressing these challenges is key to
ensuring future financial sustainability. We wish to acknowledge cooperation
with Premiers and MEC’s in helping Eskom in finding lasting solutions to the
Distribution challenges.” Mr Koko said.
“Since the start of the Promotion of Administrative
Justice Act (PAJA) process in November 2016, Eskom has managed to collect R 979
million from the municipalities. This is testament of the ability of South
Africans to work together during tough times,” he said.
The Transmission division has had zero major
incidents in terms of system performance. There were high levels of maintenance
execution with 98.8% of planned work executed. There has also been excellent
line fault performance achieved year-to-date.
“Eskom’s power system has progressed to a position
of surplus capacity which will positively impact the SA economy. The
availability of excess capacity allows Eskom to meet demand more cheaply than
through the purchases of renewable energy. As a priority, both domestic and
export sales must be further increased. Eskom will continue to focus efforts on
the increasing growth in demand in electricity and ensuring sustainable revenue
collection,” Mr Koko concluded.