Update on the Power System and the Build Programme: A Presentation to the Media

Transcription

1 JOH-ESK JvW-P1 Update on the Power System and the Build Programme: A Presentation to the Media Jacob Maroga, Chief Executive, Eskom Holdings Ltd 23 January 2009

2 Power System - update JOH-ESK JvW-P1

3 State of the Power System: Capacity (last 6 months) Camden Power Station fully operational (8 units) 2 units of Grootvlei power station now synchronised to the grid 1 unit of Komati power station now synchronised to the grid 2 more open cycle gas turbine units at Gourikwa power station commissioned. Based on last year s peak demand reserve margin is above 8%. 35, 959 MW on 14 July 2008 compared to 36, 513 MW on 5 July 2007 Eskom has just over MW of operational capacity with the aim of adding close to MW more from the return to service stations and the open cycle gas turbines by the middle of the year. 3

4 State of the Power System: Plant performance, Jan 2008 to Jan 2009 CAPACITY OUTLOOK Partial Load Losses within range. Planned maintenance volume increasing for remainder of year. All plant being closely monitored MW's 01 Jan Jan Jan Feb Mar Mar Mar Apr Apr May May Jun Jun Jul Jul Aug Aug Sep Sep Oct Oct Nov Nov Dec Dec Jan-09 LL Full LL Partial Target

5 State of the Power System: Plant performance Significant maintenance work done in the holiday period in December and January between 6 000MW and 9 000MW of plant Impact of heavy rains managed and plant performance has improved as compared to the January 2008 period. More work still requires to be done to enable sustainable plant performance in the next few years. 5

6 State of the Power System coal supply trend, Jan 2008 to Jan 2009 Average coal stockpile levels at 38.7 days with every power station having stockpile levels above 20 days. Stations vulnerable to rain have stockpiles of about 5 days of coarse coal treated with chemicals to resist moisture ingress Co al sto ck p ile d ays Jan 24-Feb 30-Mar 04-May 05-Jun 01-Jul 23-Jul 25-Aug 28-Oct 08-Dec 22-Jan Weeks 38.7 days 6

7 State of the Power System: Energy Savings Forecasting to have a 3% reduction in energy sales for the financial year 2008/9 as compared to 2007/8 Impact of the economic downturn seen in the shutting down of ferro-alloy and stainless steel smelters. At least 1500MW of demand reduced. Savings by remaining customer base through efficiencies and price signals providing up to 1500MW of demand reductions. Some reduction due to the downturn but difficult to quantify. Average of 3 to 5% savings. Eskom is in continuous discussion with the mining houses to ensure production is not lost. 7

8 Build Programme - update JOH-ESK JvW-P1

9 JOH-ESK JvW-P1 Planned capacity expansion projects PORTFOLIO PORTFOLIO TOTAL PROJECT CAPACITY NEW COAL 9,564 MW Medupi Kusile Ingula 4,764 MW 4,800 MW 1,352 MW PEAKING 5,032 MW OCGT Tubatse 2,080 MW 1,500 MW * Sere 100 MW Komati 955 MW RTS 3,645 MW Camden Grootvlei Arnot 1,520 MW 1,170 MW 300 MW Increase Kriel No Capacity increase Mpumalanga Refurbishment 300 MW Duvha Matla No Capacity increase No Capacity increase Majuba Rail No Capacity increase TOTAL Generation MW Installed to date (Since Build Programme Inception) Power Delivery Projects Installed to date (Since Build Programme Inception) Transformers Installed to date (Since Build Programme Inception) 3,182.4 MW 1,335 Km 7 New Transformer Substations * Tubatse has

10 JOH-ESK JvW-P1 Planned power delivery projects PROJECT PLANNED CAPACITY INSTALLED TO DATE Platinum Basin Cape Strengthening Western Grid 111km 56km Complete Complete Southern Cape Strengthening (Beta/Delphi) 408km Complete 765KV Zeus-Omega Western Cape 1450km 233km 765KV Majuba-Umfolozi 218km 0 275KV Tarbor-Spencer 85km 0 400KV Duvha-Lesideng Apollo Refurbishment 5 Year plan for Transmission Lines: 765Kv: 8,122km 400Kv: 7,768km 275Kv: 310km 132kv: 293km 205km Assure availabilty of the Cahora Bassa Apollo line 82km Complete

11 The benefits to South Africa go far beyond increased generation capacity Additional capacity will result in meeting 10% reserve margin target in 2015 Creation of a boiler and turbine component manufacturing industries in SA New industries Reserve margin Local Spend Regional development International competitiveness GDP impact Infrastructure Implementation of CSDP will improve competitiveness of SA electricity components manufacturing industry At least 54km of new roads to be built Local infrastructure improvements 40% of total spend (~R227bn) to be spent locally (~R90bn) Skills development More than 3,000 skills to be developed through partnerships with suppliers and educational institutions GDP growth: Medupi 0.34% /yr Kusile 0.34% /yr Ingula 0.04% /yr Total 0.72% /yr 11

12 Medupi Power Station rain that soaks parched lands, giving economic relief Project update Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 12

13 Medupi is SA s largest construction project by far!! Capex cost (Rand) 4X larger than Gautrain Medupi 13

14 Medupi - construction in commenced 2007 and is due to go online in 2012 Board approval March 2007 NERSA licence granted Medupi construction activities started First unit commissioned in 2012 Fully commissioned in Execution partner: Coal supply Boiler Enabling Civils Main Civils Turbine Generator transformers 14

15 Medupi Power Station will have a significant impact on SA Inc. HEADLINE FIGURES Funding required: Capacity as % of Eskom s installed base: R100bn (local & offshore) 11% (4,794 MW) Will be the 22 nd largest power plant, 4 th largest coal plant in the world Direct construction employment: 8,000 (at peak) Current construction employment: 2,700 (Dec 08) Indirect employment: ~1,500 Ongoing direct employment: 750 People directly impacted by Medupi ~80,000 plus keeping the lights on for all of South Africa! 15

16 Medupi Power Station s potential impact on SA Inc. Food, laundry, maintenance, security supplied to workforce R1bn, 500 jobs Catering and workforce supply Funding R100bn funding required from multiple sources: Government Local banks Foreign banks Engineers Artisans 200 required 2,400 required Hotels to expand 100%-150% Hotels Local business Semi-skilled 2,750 required buses at peak Increased taxis ~100 jobs Local transport Skills (current & legacy) Unskilled 1,000 required 500+ extra vehicles maintained locally 20 jobs Vehicle maintenance R&D Proj Mgt, Admin 70 required 1,500 required 1850 houses (320 being purchased and 900 being built) R2.0bn Housing Training to upskill local workforce (eg MPS-JV local training facility targeting 3000 in multiple skills categories) Training to reskill/upskill Eskom employees with on-the-job training for 500 people Benefit from Crocodile River diversion Sewerage plant upgrade R50m Water Sanitation Local Infrastructure MEDUPI Ongoing operations and maintenance Plant permanent T&D 250 jobs permanent 250 contracted R450m / yr ~130 jobs 2x schools, increased policing, recruitment centre, fire, social club, ICT centre R50m planned spend Richards Bay to Lephalale road Lephalale bypass R1bn, 500 jobs R50-100m Richards Bay facility R90m, 150 jobs 38 wagon train per day for limestone 12 tank carriers per year of oil Maintenance of rail lines 50 jobs Social facilities Roads Ongoing roads maintenance Freight forwarding Trains National Infrastructure Lines Transmission Substations 2500 km lines built ~R5bn 2200 jobs 1 large substations Upgrade to 1 other substation ~R1bn 450 jobs Main components (expanded on following pages) Coal, Water, Limestone Waste (Ash, Gypsum, General) Coal Water Limestone Ash Gypsum General 15Mt / yr ~R1.8bn / yr 2000 jobs for mine expansion Needs 14Mm 3 /yr vs current allocation of 2.9Mm 3 /yr. Crocodile River diversion R50m / yr 300kt/yr R60m / yr 3Mt / yr 20 jobs Potential to sell to cement manufacturers Low environmental impact Setting up local waste dump Up to 50 jobs R100m 16

17 Kusile Power Station The Dawn has come. Project update Kusile 17

18 Kusile construction in commenced 2007 and is due to go online in 2012 Board approval March 2007 NERSA licence granted (15 March 2008) Kusile construction activities started (01 April 2008) First unit commissioned in 2013 Fully commissioned by Execution Partner Coal Supply Boiler Enabling Civils Main Civils Turbine Generator Transformers 18

19 Kusile Power Station will have a significant impact on SA Inc. HEADLINE FIGURES Funding required: Capacity as % of Eskom s installed base: R111billion (local & offshore) 11% (4,800 MW) Will be the 22 nd largest power plant, 4 th largest coal plant in the world Direct construction employment (at peak) : 8,500 Current construction employment: 1100 Current local employment (Dec 08) 448 Indirect employment: ~5,000 Ongoing direct employment: 12,750 People directly impacted by Kusile ~71,000 plus keeping the lights on for all of South Africa! 19

20 Medupi, Kusile and Ingula 20

21 Medupi, Kusile, Ingula together represent the most ambitious infrastructure investment SA has ever undertaken HEADLINE FIGURES Funding required: Capacity increase as % of Eskom s installed base: Base load increases from Medupi and Kusile Peaking capacity increase from Ingula R227bn (local & offshore) 25% (+9,564 MW) 30% (+1,332 MW) Will be 4 th and 5 th largest coal plants in the world and 19 th largest pumped storage scheme Direct construction employment: People directly impacted by Medupi, Kusile and Ingula 20,000 ~ 155,000 Pace of build of Medupi and Kusile is 30% faster than previous Eskom coal builds plus they will keep the lights on for all of South Africa! 21

22 Opportunity for SA to grow its skills base Demand for skills on projects Ingula Kusile Medupi The three projects will require about 85% of one year s artisans and 105% of one year s higher education graduates Artisans 5,200 Project management and admin 2,840 Engineers 500 R&D skilled people required 22

23 Thank You 23