Post on 30-Oct-2019
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Purpose
• On 10 December 2014, Cabinet endorsed a Five Point
Plan
• The purpose of the presentation is to brief the PCE on
the following:
– War Room Institutional Framework and its resourcing
– Update on the load shedding prospects – Eskom emergency
measures
– Funding of the interventions
– Progress on the development of detailed implementation plans
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Problem statement
• The country is facing a real risk of load shedding daily.
• Approximately 14,000MW or about one-third of total Eskom generation capacity on average is offline. Of this 14,000MW, over 8,000MW is due to unplanned (breakdown) maintenance.
• To reverse this trend, Eskom needs space to execute preventative (philosophy based) maintenance instead of the reactive maintenance. What’s required?– In the immediate, the focus will be on sustained maintenance
and operational efficiency to reduce the level of this unpredictable breakdowns, and
– In the medium to long term, the focus will be to bring in new generation capacity to alleviate the constrained system and accommodate demand growth
• The key objective is to improve plant performance while limiting load shedding
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Key milestones achieved since adoption of the Five Point Plan
• The War Room has been set up and the participating
Departments have nominated representatives
• The Coal IPP RFP was issued
• The RFI for the Demand Management Interventions was
issued
• MOU has been signed between Eskom, CEF (Petro SA),
Strategic Fuel Fund and Transnet (TNPA) regarding
diesel supply
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War Room Institutional Framework
Inter-Ministerial
Committee on Energy
Deputy President
War Room on Electricity
(DPE, DoE, COGTA, NT, EDD, Eskom)
5 Point Plan Workstreams
Gas to power
and related
infrastructure
Energy
Efficiency
and DSM
Generation
Expansion:
Coal IPP
Eskom
Emergency
Measures
Financing Expansion of
capacity
through Co-
gen
Communicati
on
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Principles for prioritising actions
• The key objective of the War Room is to facilitate the
creation of space to effect the maintenance to improve
plant performance.
• The interventions are prioritised based on the following:
– How quickly can the intervention/s deliver or save the additional
megawatt to the grid
– The scale or capacity load factor
– The cost/KW
• Based on the above, the Eskom’s emergency measures
and funding work streams have been prioritised
• More work to be undertaken on other areas to deliver
additional capacity in the medium to long term
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Prioritised Interventions: Eskom Emergency Measures
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Key initiatives in the short term • Sourcing funding to support financial sustainability and
diesel costs
• UCLF reduction to 7 GW through structured planned
maintenance
• Reduce partial load losses
• Reduce outage slips
• Technical skills capacity to do maintenance, plans to
address shortage of skills
• Majuba recovery interim (full coal supply) solution for full
load
• First synchronisation of Medupi unit 6
• Integrated Demand Management
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UCLF reduction to 7 GW through structured planned maintenance, Reduction of partial load losses and outage slips• Reducing partial load losses greater than 7 days down to
1000 MW through;
• Targeting of sustained partial losses in scopes of
philosophy outages as well as prioritising additional
short term corrective outages on the capacity
• Reducing generating planned unit outage backlog
through;
• Executing the GX sustainability outage programme
• Reduce Outage Slip (UCLF) through;
• Improve performance management of contractors
during execution of outages to ensure both quality
and productivity (part of the turn-around strategy)
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First synchronisation of Medupi unit 6
• Commercial Operation of Medupi Unit 6 through;
• By the synchronisation of the unit to the
network during the first quarter of 2015
• The completion of the optimisation and tests
of all sub systems for commercial operation
during the second quarter of 2015
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1. Co-generation initiatives
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Key interventions
Existing agreements for
renewal Key focus • Short Term (1 – 2 months)
– Conclude PPA with Sasol Secunda which
was previously contracted on the MTPPP –
200MW from 1 January 2015
– Conclude PPA with Tshwane if their plant
is in a position to be operated – 165MW by
1 January 2015
– Short term (0-3 years)– Extend the current MTPPP, STPPP,
cogeneration and municipal generation
agreements for a further three years
• Short to medium term (0-3 years) – Conclude on the DoE IPP Unit’s Request
for Proposals issued on 5 December 2014
and contract all potential suppliers with a
target of 800MW.
– RFP already issued
No decisions required, focus on
execution of the procurement process
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2. Gas imports
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Scope of work
• The Gas will not be able to provide additional
capacity in the immediate term i.e. over the next
3 months
• Focus is on accelerating the conversion of
OCGTs from diesel fuel to gas
• However, through preliminary discussions
between the relevant stakeholders, the scope of
the plan has been expanded to include gas to
power generation options in addition to the diesel
to gas conversions
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3. Coal IPPs
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Coal IPP
Progress
• There is a determination for 2500MW
for Coal IPPs.
• Request For Proposals (RFP) out in
the market since 12 December 2014
– Submission for bids are due on 8 June
2015
– Announcement preferred bidders
August 2015
– Legal close by preferred bidders is
expected by March 2016.
– Financial Close by preferred bidders is
expected around June 2016
– Commissioning (1st MW) by early 2019
• As seen with renewable energy IPPs,
it is possible that the commissioning
can happen earlier than the above
mention date through the fast tracking
of construction by IPPs.
Risks and enablers
• Environmental Impact
Assessment (EIA), grid connection
and water licenses are generally
considered to be enablers that can
impact on the commissioning
timeline.
• Lephalale (Waterberg) has been
identified as an area that needs
some strategic investment to be
able to unlock its potential for coal
for power plants beyond Medupi.
• The water infrastructure
requirements are being addressed
through SIP 1 and the same
needs to be done with regard to
the electricity transmission (grid)
infrastructure.
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4. Demand Side Management
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Demand side management • Most of the supply side interventions are likely to be
realised over the medium to long term
• Demand Side Management (DSM), present a viable
option to ease the pressure on the system
• The focus will be on:
– The costing of the interventions
– Quantify the impact
– Securing funding
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Thank You
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