Title of presentation

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1 Title of presentation Kobus Steyn General Manager (Projects) Eskom Holdings Ltd South Africa.

2 Refurbishment of Eskom Power Stations Basic asset management strategies: 1. Technical plan 2. Maintenance 3. Refurbishment

3 Technical Plan Full analysis of each plant component leading towards an inspection plan, maintenance plan and refurbishment/ replacement plan.

4 Maintenance Maintenance is defined as: 1. Statutory maintenance 2. Planned maintenance 3. Corrective maintenance 4. Shutdown maintenance

5 Refurbishment Refurbishment is defined as: 1. Plant refurbishment/replacement done only once or twice in the life of the plant. Also referred to as mid-life refurbishment. 2. Return to service of plant that has been placed in deep storage for more than 15 years.

6 Mid-life refurbishment The need for mid-life refurbishment stems from: 1. Safety of employees compromised by old equipment. 2. The design life of the respective components exceeded leading to safety or plant reliability risks. 3. Obsolescence of equipment and difficulty of obtaining spares.

7 Mid-life Refurbishment Typical scope of work: 1. Electrical switchgear. 2. Control and instrumentation. 3. Electrostatic precipitators. 4. Boiler headers. 5. Turbine rotor shafts, blades, diaphragms, casings. 6. Electrical transformers and cables. 7. Generator stators and rotors.

8 Mid-life Refurbishment Power stations already in this phase: 1. Hendrina 1993 to Arnot 1994 to Kriel 2007 to Matla 2009 to Duvha 2011 to 2016 Present day cost average R2,5 bn 90 days average shutdown required

9 Mid-life refurbishment Eskom experience: 1. Objectives achieved. 2. Project dates and costs within vote. 3. Little scope of work changes. This is mainly due to good knowledge of plant as Eskom have a philosophy of plant engineers deployed at site.

10 Return to Service Because of the present electricity supply shortage, one of the options chosen by Eskom to bring new capacity online as quickly as possible, was the return to service (RTS) of previously decommissioned plants. The return to service projects average 4 years vs new plant estimated at 8 years.

11 Return to Service The power stations earmarked for RTS: 1. Camden, near Ermelo: 8x200 MW / 2003 to Grootvlei, near Heidelberg: 6x200 MW / 2005 to Komati, near Middelburg: 4x125 MW + 5x100 MW / 2005 to 2010 Total of 3800 MW, total cost R20 bn.

12 Return to Service Normal project phases: SOW definition Commercial phase Execution Time

13 Return to Service RTS Project phases: Execution Commercial SOW definition Inspection phase Time

14 Return to Service The time constraints lead to: 1. Project phases overlap. 2. Contracts without final SOW. 3. SOW surprises contract modifications 4. Bill of quantity type contracts. 5. Engineering overworked inspections and SOW determination 6. Project planning changes. 7. Modifications while in execution.

15 Return to Service Points of note: 1. Retrofit learning from last units to first units. 2. None of the units on these old stations are the same as each comes with it s own history. 3. Engineering effort is the same for each unit. 4. Always unexpected additional SOW.

16 Return to Service To date the following units have been refurbished and have been placed in commercial service: 1. Camden 7 x 200 MW 2. Grootvlei 1 x 200 MW Total of 1600 MW

17 Refurbishment of Eskom Power Stations Thank you