Questions and Replies

Reply:

The acquisition and replacement of official vehicles for the Minister is administered by the 2019 Ministerial Handbook which provides in paragraph 2.1 read together with 2.3, that National Members shall be provided with one vehicle for official use in each seat of office and that on assumption of office must make use of officials vehicles already purchased by the Department, unless such vehicle is to be replaced in terms of paragraph 2.9 of this chapter.

The Ministry was established after the 2023/24 budget allocation therefore no capital expropriation was made for the purchasing of the official vehicle, similarly in the 2023/24 budget adjustment. In light of the above, the Ministry has been renting the Minister’s vehicle on a monthly contract for his transportation in Gauteng and on ad hoc basis for travel outside of the province.

Reply:

1.(a) The donation from the People’s Republic of China to the Republic of South Africa was done in terms of a technical assistance agreement. The value R1 393 602 was charged as part of Eskom’s deferred group tax and this will be claimed back from SARS in due course.

(b)(i)(ii)(iii)-(c) The transportation of the emergency equipment was undertaken by Eskom, consequently, the Ministry did not appoint a service provider for the transportation and delivery of the emergency equipment, as a result no costs accrued.

2. (a) The South African Government did not incur any costs regarding the facilitation of the Chinese technical personnel

(b)(i)-(ii) The South African Government did not incur any costs regarding overdue storage, truck and container detention fees.

 

Reply:

The Ministry was established in March 2023, accordingly we advise that you refer the question to the Departmet of Public Enterprises as the legal manadte holder in this regard.

 

Reply:

In contextualising the Energy Availability Factor (EAF), one needs to understand the following equation:

EAF=100% Generation Available Capacity-% Unplanned Capability Load Factor (UCLF)-% Planned Capability Load Factor (PCLF) -% Other Capability Load Factor (OCLF).This means that the EAF is dependent on three variables, namely, Planned maintenance, Unplanned Outages as well as other outages. When either of these variables changes, the EAF is impacted negatively or positively depending on whether the variables increase or decrease respectively.

The EAF shown below depicts our performance over the past eight (8) years and also reflects the improvement when comparing January 2023 and January 2024. From January 2023 to January 2024, the unplanned outages have been decreasing as depicted on the graph below. In January 2023, UCLF was at 34% but it was 30% in January 2024. Other outages also saw a declining trend.  These other outages are unpredictable and outside management's control.

On the other hand, planned maintenance increased from September 2023 to December 2023 and January 2024. These outages are within management control in terms of whether to implement them or not and are essential for safety, statutory and performance improvement reasons. It does, however, mean that as planned maintenance necessarily increases, then EAF decreases. For example, planned maintenance was at 17.6% in January 2024 vs 13.5% in January 2023

(b) (i) The Eskom Board has approved the Generation plant recovery programme which details actions per power station that are in alignment with the President’s statement made during SONA.

(ii) Government has implemented the Energy Action Plan which also looks at energy crisis or resolutions. This runs at a government level and involves private business.

 

Reply:

(a) The government’s strategic plan on energy procurement is codified in the 2023 draft IRP which has been released for public participation and comments.

(b) The IRP sets the strategic plan which includes the optimal energy mix to achieve our energy security objectives with due regard to our energy resource endowments

(c) The energy action plan sets out short and medium interventions measures to balance the energy supply and demand which includes interventions to;

(i) Strengthen and/or repurpose the existing Eskom fleet including gas to energy on both open and close cycle gas turbines,

(ii) Optimize the uptake of private renewable energy investment both through renewable energy independent producer programme, embedded generation programmes and commercial/domestic rooftop solar solutions

(iii) Modernize and expand the transmission infrastructure

(iv) All procurement will be done in line with section 217(1) and (2) of the constitution

(v) refer to reply above

(2) Based on the 2019 IRP government will in 2024 will commence the procurement of:

(i) 2500MW nuclear energy

(ii) The conversion of Gourikwa and Ankerlig to gas from diesel/open gas turbine OCGT which will yield 2000MW and a further 1000MW conversion into Closed Cycle Gas Turbine OCGT

(iii) An additional 3000MW is approved in Richards Bay

Eskom will rollout plans for the development of solar PV coupled with battery energy storage systems which will yield 4000MW.

 

 

Reply:

1. The respective facilities have requested to install, secure, operate and maintain the allocated units and furthermore these facilities were requested to record the generators in their individual asset register.

2. The individual facilities are responsible for the operational budget of the generators

3. Procurement of fuel will be done through the regular procurement process of the respect facilities

4. Please refer to answer above

 

 

Reply:

The Ministry/Minister was appointed to oversee and direct the implementation of the Energy Action Plan, with 5-outcome areas. As such, the focus of NECOM has been on strengthening/stabilising generation, enabling the fast tracking of new generation including addressing legislative bottle necks, and accelerating the scale and pace of implementation of renewable energy projects, as well as upscaling rooftop solar/embedded generation projects, and transforming the energy landscape through transformation of the energy sector.

Whilst the deployment of smart meters is an important intervention (in particular to implement demand side management), it has not been a core focus the Ministry work. The level of the question is also largely operational, and assumes a national deployment of smart meters, whereas, smart meters will be deployed by respect distribution licence holders (Eskom and Municipalities). In respect of ESKOM the Department of Public Enterprises remains the shareholder department, to whom the Board of Eskom Holdings is accountable in terms of the Memorandum of Incorporation for strategic outcomes. As such, the question should either be directed to DPE (for Eskom supply distribution area) and the respective Municipalities and or COGTA for Municipal distribution areas

Reply:

The Ministry/Minister was appointed to oversee and direct the implementation of the Energy Action Plan, with its 5-outcome areas. As such, the focus of NECOM has been on strengthening/stabilising generation, enabling the fast tracking of new generation including addressing legislative bottle necks, and accelerating the scale and pace of implementation of renewable energy projects, as well as upscaling rooftop solar/embedded generation projects, and transforming the energy landscape through transformation of the energy sector, consequently, the Ministry has not kept the records of the financial and economic impact (since its establishment) associated with cable theft and/or sabotage of transformer.

2. Further, incidences of this nature are observed across Eskom distribution, Transmission and the Municipalities and as such the Ministry does not maintain a outage/response and repair log. This information will have to be sourced from (Eskom Distribution), through the Department of Public Enterprises or the respect Municipality (in municipal licensed areas)

Reply:

(a)-(b) We confirm that neither the Minister nor official(s) in his Office attended the Rugby World Cup final in France in October 2023.

(i)-(ii)-(iii)_(aa)-(bb) & (cc) please refer to the reply for (a) & (b)

Reply:

(1) Transmission owns and operates over 33 245 circuit kilometres of power lines, and regularly conducts asset health reviews on all its infrastructure, including the power lines, using international benchmark standards. Our last power lines condition assessment report was published in 2021 (the next revision is due in March 2024). The response below applies to the 2023/24 financial year:

(a) Transmission’s asset management approach prescribes that power lines do not generally reach life expectancy to the extent that they must be completely rebuilt. It is the transmission line components that reach the end of life and that are replaced. This applies to conductors, insulators, towers (steelworks), foundations and hardware. Therefore, individual parts are assessed for their performance and risk, and replaced or refurbished as needed.

Only when critical structural components such as foundations and/or tower member steel are condemned would an entire power line be deemed to have reached its expected life. A refurbishment or replacement project for such a power line would then be initiated.

(b)Same response as above.

(c) Projects are classified into two groups: Projects to address the end-of-life components, and projects to address the performance of lines.

• End of life component: 23 lines, 1 105 circuit kilometres are currently being worked on with a total value of R523 million.
• Performance: 28 lines, 2 358 circuit kilometres are currently being worked on (majority is bird guards in hotspot areas), total value R129 million.

More projects are planned for future years as Transmission continuously reviews the status of its transmission lines.

 

 

Reply:

1. To encourage the uptake of rooftop solar photovoltaic (PV), the government eased private generator regulation giving customers more private generation energy options through across-network wheeling and on-site self-generation. This year, the government introduced further incentives like SARS tax rebates and National Treasury energy bounce loan guarantee programmes making Roof Top PV systems more affordable to households and small businesses. This is against the backdrop of customers seeking reliability during loadshedding, affordable electricity and climate change objectives.

To make rooftop PV more attractive, in the same way that Eskom does, many municipalities also offer grid services like net-billing (i.e. using PV surplus energy to offset billed consumption), and

wheeling (i.e., using the grid to transport generator production to customers). In addition, work is being done through the National Energy Crisis Committee (NECOM) on the development of a feed-in tariff (i.e., the utility buying customer surplus PV energy) which also encourages uptake.  Eskom also has a standard offer programme in place where customers can sell excess energy to Eskom under a short-term power purchase agreement.  Under the NECOM draft, frameworks were developed on net billing and wheeling to guide the industry with a standardised approach. These two draft frameworks are currently with the National Energy Regulator of South Africa (NERSA).

2. The National Treasury is the custodian of the incentive and have not expressed any indication of whether the scheme will be extended. There is however an ongoing discussion on the expansion of scheme (coverage as opposed to time-line), to the extent that it be expanded to include the battery and inverter which are the largest cost components of roof top solar solutions.

3. With regard to Municipalities the determination of tariffs and fees is a function of municipal budgeting, as provided for by the Municipal Finance Management Act, and as such the legislative competence of the respective Municipal Council, subject to due process. Under these circumstances whilst the fees may be a counter-incentive to upscaling rooftop solar/embedded generation, the Minister cannot “stop” legitimate fees imposed by Municipalities. There is also a question of municipal revenue loss (which impact the viability of Municipalities), in the context of self generation. These are broader consideration in respect of division of revenue across government, and must be addressed through the structures of Government in the context of the strategic approach to the energy distribution sector.

In respect of Eskom, only grid-tied solar PV solar systems on the Eskom networks require Eskom permission even if they are not exporting their surplus on the Eskom network. Such grid-tied customers will be liable for upfront costs for quotation, and connections (including bi-directional time-of-use meters where required). It should be noted, if a customer is off-grid, this means there is no connection and therefore no charges will be raised by Eskom.  A customer that has grid-tied generation and uses the system as a backup must pay network fair charges for this backup.

 

Reply:

Annexure

Find reply here

 

Reply:

1. Steynsburg Town and the surrounding farming areas are fed from the Bulhoek Steynsburg 22kV overhead power line. This is an Eskom Eastern Cape electricity network. This network is 205 km in length and is maintained yearly by Eskom.

Eskom is aware of a couple of prolonged power line faults in the area in the last year up to now. The inspections and defects clearing described above are part of a mitigation strategy which is aimed at reducing such incidents.

Power line inspections are carried out yearly and defects picked up are cleared by Eskom maintenance teams. The next maintenance event emanating from this year’s already-completed power line inspections for the power line supplying the Steynsburg area is planned for February 2024.

2. Venterstad, Oviston Town and the surrounding farming areas are fed from Badsfontein Venterstad's 11kV overhead power line. This is an Eskom Northern Cape electricity network. This network is 139.92 km in length and is maintained yearly by Eskom.

The inspections are carried out annually and defects picked up are cleared by Eskom maintenance teams. Eskom is aware of thirteen (13) power line faults in the area thus far this year.

Five (5) of the thirteen (13) line faults affecting the Venterstad and Oviston areas are considered long-duration faults with the longest lasting for two days. Inspections of the power line have been completed and next the planned maintenance event for the power line supplying the Venterstad and Oviston areas is scheduled for 22 February 2024.

3. The inspections and defects clearing described above are part of a mitigation strategy which is aimed at reducing such incidents. It is in our interest to make sure we provide the customers in these areas with reliable power supply taking into consideration their farming, commercial and residential activities

 

Reply:

(1)-(2) (1)-(2) We have received an offer of between 80-100 megawatts from Mozambique, Eskom is ceased with processing the power purchase agreement in terms of the current Ministerial determination for cross-broader purchases. Eskom has since issued the Standard Offer Cross Border Programme (CBSOP), in terms of which the Mozambique offer will have to be processed.

The CBSOP enables Eskom to procure energy on a short-term basis (less than three years) from the Southern African Development Community (SADC) region. This standard offer approach permits Eskom to purchase cross-border energy at an established price calculated at the avoided cost of Eskom’s own generation (including long-term energy purchases from local independent power producers). The standard offer allows for a static price, which is established each year based on the regulatory-approved cost recovery mechanism, and benchmarks the variable cost of local generation. This programme is designed to simplify the procurement of energy from existing and new facilities in the region.

Once the applicable governance processes have been concluded, the Ministry will make the necessary pronouncement.

 

Reply:

Cabinet approved the JET implementation plan, which will guide South Africa’s transition to low carbon economy through the scaling up of renewable energy sources. Three priority areas to support the economy of the future has been identified, being, electricity sector, New Energy Vehicles (NEV) and Green Hydrogen. The Investment Plan supports South Africa’s goal of achieving a low carbon economy and a climate resilient society through the following interventions

1. Creating quality jobs in new sectors like electric vehicles, green hydrogen, renewable energy, and manufacturing
2. Increasing our energy security and ending load shedding through a massive rollout of new, sustainable energy sources
3. Addressing the risks of climate change and positioning South Africa to be an important global player in the green economy of the future
4. Boosting economic growth through more than R1 trillion of new investment in the South African economy

The JET IP sets out a number of interventions South Africa needs and investments required the country to transition to a low carbon and climate resilient economy in line with the National Determined Contributions presented to the United Nations. The JET IP will be driven by a combination of reforms in the energy sector including the Mpumalanga Just Transition, New Energy Vehicles and Green Hydrogen, among others.

The plan further responds to South Africa’s commitments under the Paris Agreement and United Nations Framework Convention on Climate Change as well as NDP commitments. The Jet IP will enable South Africa to gradually meet its carbon emissions reduction commitments while at same time, it will ensure inclusive economic growth, energy security and employment.

The full extent of the JET IP is available on the following link, and Annexure B contains the – electricity sector modelling assumptions and technical analysis, and Eskom jet project pipeline

https://pccommissionflo.imgix.net/uploads/images/South-Africas-Just-Energy-Transition-Investment-Plan-JET-IP-2023-2027-FINAL.pdf

Reply:

1. (a/b) The draft IRP 2023 reviews the approved IRP 2019 and covers two-time horizons, namely the 2030 and 2050 time horizons. Several key assumptions used in the IRP 2019 have significantly changed, including the electricity demand projection, Eskom’s energy availability factor, Eskom’s coal fired power plants shutdown plan, as well as the cost of new power generation technologies.

The 2030-time horizon (Horizon One) focuses on addressing prevailing generation capacity constraints, whereas the 2031 – 2050 time horizon (Horizon 2) focuses on an analysis of the energy mix pathways for sustainable security of supply.

For Horizon One – five scenarios have been developed and assessed based on the state of readiness of projects in the pipeline. The scenarios considered include first the RMIPPPP, REIPPPP 5 and business projects currently under construction. Second, all project initiatives with commercial operation date (COD) and a specified location. Third, all project initiatives include those with no grid capacity reservation, COD, and specified location. Additionally, two scenarios, one comprising the reference case and current gas programme, and another based in improved plant performance according to the generation recovery plan have been modelled.

For Horizon 2, six energy pathways were considered to assess the impact of the different energy technologies in ensuring the country’s power system security of supply at the least cost to the economy. The reference pathway establishes a benchmark against other pathways and it is based on least cost. The five other pathways are based on certain guiding policy principles and they are designed to be exploratory in nature. These policy principles were formulated with a focus on decarbonising the power system, shutting down of existing coal-fired power stations post 2035, and exploring clean coal technologies including carbon capture.

Technology specific options (including geo-thermal / wave energy) will be enabled once the 2023 IRP has been through public participation process, based on the least cost principal.

2. NECOM, has 5 outcomes to address the immediacy of energy security and reducing the frequency of load shedding. As such, no specific funding has been considered for energy innovation. Never the less, the Department of Science and Innovation remains the custodians of the National research and innovation strategic path, in concert with the relevant line Departments.

The Department’s Technology Innovation programme plays a key role in developing a sustainable and globally competitive South African energy knowledge base and industry, especially in relation to the emerging global hydrogen economy, by informing and co-shaping the national energy policy in coordination with the Department of Energy and other key stakeholders.

Reply:

First, with respect, the assumptions or statements attributed to the Minister in the preamble to the question are a mis-representation of fact and or any comments that were made. In respect of Unplanned Capacity Loss Factor (UCLF), what was reported is that over a period of time, using the average May 2023 UCLF (17369 MW) as a baseline, unplanned outages averaged 15510 MW for September 2023. There was also no “intentional delay of scheduled maintenance” in fact, for Month of September 2023, planned maintenance improved to 4874 MW (compared to the May 2023 Baseline of 3120 MW.

As codified in the summer 2023 outlook, Eskom remained committed to increase the available generation, with a specific focus over the summer period, by:

1. Adding 2880MW¹ from Kusile units (2160MW from U1-3 recovery and 720MW from U5 Synchronisation)
2. Supporting the system with diesel burn at the open cycle gas turbines (OCGT)
3. The return to service of the Koeberg steam generator on the 3rd of November 2023 (which will be followed by planned upgrades on Koeburg Unit 2)
4. Demand side initiatives of almost 250 MW have been developed to contribute to reducing load shedding.

Reply:

(1) (a) Yes, Eskom has determined the total cost of implementing smart meters.

(b) Eskom has a financial evaluation model that is used for all its projects and the same model was used to evaluate the financial viability of the various

phases of the smart metering project.

(2) Eskom does not have a designated installer as multiple contractors are appointed to install meters in various regions each time a project is initiated. For projects like this where a large number of meters are to be installed at one go (as a project), an open Request for Proposals (RFP) for potential installers is issued to the market and successful bidders are awarded tenders to install meters in various areas.

(3) Eskom started installing smart meters in 2010 when a pilot project was commissioned in Sandton (Gauteng) and Margate (KZN) for 5000 meters.

This was followed by Phase 1 of the project that was implemented in Sandton/Midrand in 2015, where about 33 000 smart meters were installed.

A decision was taken in June 2021 to only use smart meters going forward and as such, all faulty meters are now replaced by smart meters.

There is no official commencement date yet for a project to replace all meters with smart meters as the project is still going through internal

governance processes and an RFP still has to be issued to the market.

 

 

Reply:

(a) the 100MW threshold has been lifted as part of the deregulation of the energy sector. Currently, no limit exists for embedded generation.

The pipeline of confirmed private sector generation projects has increased to 126 projects representing more than 12 GW of new capacity since the amendment of Schedule 2 of the Electricity Regulation Act to remove the licensing threshold for generation facilities. 1338 MW is expected to connect to the grid in 2023 and 3081 MW in 2024. A survey by Eskom showed that the total number of projects in the pipeline is 66 GW.

(b) All Generators are required to Register their Projects with the National Electricity Regulator of South Africa (NERSA).

Reply:

The supply of South Africa’s energy demand is broadly determined by the energy mix as set out in The Integrated Resource Plan (IRP) 2019. Based on the 2019 IRP, Coal constitutes 43% of installed capacity followed by Wind (22.53) Solar PV (10.5) CSP (0, 76) Nuclear (2,36) and Gas and Diesel (8.1) Hydro (5.84).

Whilst the IRP is currently being reviewed, Coal, Nuclear and Gas is expected to continue to be significant contributors to SA’s base load demand in the foreseeable future, with investments in cleaner technologies to mitigate negative environmental impacts, coupled with and battery storage to neutralise and solar/wind hybrid solutions to stabilise the intermittency challenges of renewables.

Reply:

a) The transmission losses are the difference between the total energy that came into the transmission network from the generating sources and the energy delivered to Transmission customers. These are purely technical losses incurred in the transportation of energy. In the 2022/23 financial year, the transmission losses were 4 700 GWh or 2.32%. There are meters at all transmission boundaries to ensure accurate accounting of energy flows. There are processes in place to ensure that this data is accurate, which include routine maintenance of meters and associated infrastructure, and data validation processes to identify errors.

The losses are affected by the generating pattern, as they are sensitive to the proximity between sources and loads. Independent power producers (IPPs) have an overall positive impact because of the way that they are distributed. The usage of open-cycle gas turbines (OCGTs) has a positive impact as well. Network strengthening projects also have a positive impact on losses.

b) Maintenance and data verification processes are normal operational processes, so there are no additional costs.

Generation dispatch is done to optimise overall system energy costs. Network strengthening is done according to the Transmission Development Plan (TDP).

(c) Conductor theft is one of the primary security threats that face the Eskom network and critical infrastructure. Transmission Security has embedded a strategy to reduce network theft by dealing with the product (precious metals), the market (scrap metal dealers), and the thief (crime syndicates).

The following security operations have been initiated:

• Weekly operations meetings are held with the South African Police Service (SAPS) to visit illegal and legal scrap metal dealers to enforce the Second-Hand Goods Act. Fines are issued to non-compliant vendors, and illegal vendors are arrested. The operations deter the illegal purchase of Eskom material.
• A specialised investigation contract has been procured to deal with high-profile cases and organised crime.
• Transmission incident management is conducted via the Mission Area Joint Operation Centre (MAJOC SAPS) to ensure that all reported criminal cases that affect Transmission critical infrastructure receive immediate attention.
• Technology (vibration sensors) is being rolled out on high-risk lines for early warning, as well as improved security systems at high-risk substations, to ensure deterrence, detection, delay, and response.

Reply:

1. (a) It is estimated that more than R390 billion will be required over the next decade to meet the demand for grid capacity, largely due to the increase in generation capacity through renewable energy projects and insufficient grid capacity following the various Bid Windows.

Eskom’s current financial position places significant limitations on its ability to attract sufficient capital towards expanding the transmission grid, with the delivery of transmission infrastructure taking, on average, between 7 to 10 years. It is estimated this delivery rate needs to be scaled-up by eight times to connect the energy generation required for energy security by 2030.

It is anticipated that the transmission gridbuild rate needs to increase from 300km to 2300km per year with a greater rate of investment and delivery required through to 2050.

The Ministry in the Presidency for Electricity co-hosted a Transmission Financing Seminar with the Johannesburg Stock Exchange and is currently finalising a cabinet submission on transmission financing pathways aimed at fast-tracking transmission infrastructure investments to support the anticipated growth in generation capacity and secure long-term energy security.

1 (b) The generation supply gap will be addressed through a combination of base-load and renewable technologies, acting in concert to close the demand/supply deficit whilst maintaining frequency control in the management of the National grid. Closing South Africa’s supply gap will, therefore, require a balance between these technologies and not a choice between one or the other. The Eskom Winter 2023 demand analysis projected a maximum demand of 34 000 MW, and supply for the period June 2023 to October 2023 averaged at around 28 400 MW. This suggests a supply deficit (based on peak demand) of around 6000 MW. In the medium term, accounting for growth based on an industrial-intensive path will increase the demand for baseload supply to guarantee energy security.

2 (a) Refer to 1(a) above.

2 (b) REfer to 1(a) above.

Reply:

The Donation of emergency power equipment by the People’s Republic of China to South Africa is a consolidation of the strategic diplomatic partnership between the respect Republics, in an attempt to resolve the energy crisis, which presently besets South Africa.

The donation is in the form of emergency power equipment procured and supplied by the Chinese government, which will be distributed/dispatched in line with the differentiated energy demands in public facilities, in particular, public heath, educational and justice facilities to mitigate the impact during loadshedding.

Reply:

Municipalities can purchase electricity from Independent Power Producers (IPP) through the Small Scale Embedded Generation Project, subject to section 217(1) of the Constitution, read with their respective Supply Chain Management Policies.

Further, Municipalities may apply to the Minister in the Presidency for Electricity under s34(1)(d) of the ELECTRICITY REGULATION ACT 4 OF 2006, as amended, for a determination that will enable a Municipality to purchase energy from an IPP.

Reply:

(1)(a) (i), (ii), (b) At the concept phase for each new power station, the maintenance requirements for each system and component are received from the Original Equipment Manufacturers (OEMs). These are adapted by Eskom to take Eskom-specific and environmental factors into account.

This results in a philosophy maintenance regime, which is implemented as the plant becomes operational, and which determines the required periodicity and scope of the various maintenance activities and outages. Thus, philosophy maintenance refers to these specified required maintenance activities while planned maintenance refers to all maintenance that meets the requirements to be considered as planned – typically 28 days’ notice – and includes all philosophy maintenance.

(2) All power stations have their own maintenance philosophy which is effective on commercial operations throughout the life of the plant.

(3) As part of continuous improvement, Eskom has adopted liability-based maintenance which also assists in managing the plant based on risk. This allows Eskom to better manage the plant risk based on the available funds to execute maintenance.

Reply:

1. According to regulatory requirements, Eskom Transmission publishes a Transmission Development Plan (TDP) every year, looking 10 years ahead. It identifies infrastructure required to (i) keep abreast of load growth, (ii) comply with reliability/redundancy requirements, (iii) meet new generation integration requirements, and (iv) replace assets that are at end of life.

In the TDP2022, Eskom identified 1 009 projects requiring development and execution. This comprises 207 expansion category projects and 802 refurbishment projects over this period. The identified scope in TDP2022 broadly involves building 14,218 km of powerlines and 122,669 MVA of transformation.

This infrastructure will be built in all provinces around the country, with the bulk being in provinces such as the Northern Cape, that have the greatest potential for renewable energy power plants

2. It is estimated that more than R390 billion will be required over the next decade to meet the demand for grid capacity, largely due to the increase in generation capacity through renewable energy projects following the various Bid Windows. Eskom’s current financial position places significant limitations on its ability to attract sufficient capital towards expanding the transmission grid, with the delivery of transmission infrastructure taking, on average, between 7 to 10 years. It is estimated this delivery rate needs to be scaled-up by eight times to connect the energy generation required for energy security by 2030.

It is anticipated that the transmission grid build rate needs to increase from 300km to 2300km per year with a greater rate of investment and delivery required through to 2050 (Centre for Sustainability Transitions, 2023).

The Ministry in the Presidency for Electricity co-hosted a Transmission Financing Seminar with the Johannesburg Stock Exchange and is currently finalising a cabinet submission on transmission financing pathways aimed at fast-tracking transmission infrastructure investments to support the anticipated growth in generation capacity and secure long-term energy security.

Reply:

(1)(a) The projected cost for the temporary stacks is estimated at R700 million excluding the operating and maintenance costs.

b) The construction of the temporary stacks for Units 1, 2 and 3 means that the flue gas from these units will not go through the flue gas desulphurisation plants, which reduces Sulphur dioxide levels. The Sulphur dioxide emissions from the temporary stack will thus be higher than would have been the usual case for these units.

The temporary stacks are built after the fabric filter plants and main boilers. As such, the particulate matter and nitrogen oxide levels of the units with the temporary stacks are no different from what they would have been in normal operations.

(2) To operate the temporary stacks with the higher than usual Sulphur dioxide levels, Eskom applied to the Department of Forestry, Fisheries and Environment (DFFE) for a postponement from the Minimum Emissions Standards (MES) published in terms of the National Environmental Management Air Quality Act (NEMAQA). Eskom received a postponement decision from the DFFE

on 5 June 2023. The Nkangala District Municipality issued a revised Atmospheric Emission Licence (AEL) reflecting the postponement on 13 June 2023. The applicable AEL limits for the temporary stacks are thus: particulate matter – 50 mg/Nm3, nitrogen oxide – 750 mg/Nm3 and Sulphur dioxide – 3500 mg/Nm3 (all measured at a 24-hour daily average)

Four parties appealed the MES decision, and three appealed the AEL decision. The Minister ruled on the MES appeals on 26 September 2023, allowing Eskom to proceed subject to three revised conditions. The District Municipality ruled on the AEL appeals on 28 September 2023, accepting the Minister's decision and allowing the project to proceed.

A key consideration in the process was that Eskom must ensure that the operation of the temporary stacks did not result in any health impacts on surrounding communities. The authorities approved Eskom’s plan to monitor and mitigate air quality impacts from Kusile on 18 September 2023. Eskom is implementing the approved plan.

(3) (a) There is no design defect associated with the existing West Chimney failure. The duct failure occurred due to overloading of the chimney flues and inlet duct. The repair is to restore the chimney to its original condition or as close as possible.

b) The projected cost for repairing the West Chimney will only be known once the stabilisation of the flues has been achieved.

Reply:

The supply of South Africa’s energy demand is broadly determined by the energy mix as set out in The Integrated Resource Plan (IRP) 2019. Based on the 2019 IRP, Coal constitutes 43% of installed capacity followed by Wind (22.53) Solar PV (10.5) CSP (0,76) Nuclear (2,36) and Gas and Diesel (8.1) Hydro (5.84).

Whilst the IRP is currently being reviewed, Coal, Nuclear and Gas is expected to continue to be significant contributors to SA’s base load demand in the foreseeable future, with investments in cleaner technologies to mitigate negative environmental impacts, coupled with and battery storage to neutralise and solar/wind hybrid solutions to stabilise the intermittency challenges of renewables.

 

Reply:

1. Eskom removes sulphur dioxide (SO2), which is a by-product of fossil fuel combustion, from the flue gases. This SO2 is removed by means of a wet flue gas desulphurisation system. The flue gas flows through a spray of calcium carbonate (limestone) slurry and forms an end product of calcium sulphate (gypsum).

2. (2)(a) Therefore, no sulphur in its pure, corrosive form is extracted from the absorber, and no sulphur is being sold. The gypsum is currently disposed of on site in a designated area on the power station premises as per licence. The future plan is to sell the gypsum as it can be used in the industry.

(2)(b) No corrosive chemical is being stored and no revenue is being generated at this stage from gypsum.

 

Reply:

(a)Eskom is contracted for 1 150 MW until 31 March 2030.

(b)The extent of infrastructure investment/financing undertaken by Eskom to build/sustain Apollo high-voltage direct-current (HVDC) is provided in Table 1 below for a period of 13 years. Ten of the listed projects have been completed (over R241 million), and eight of the projects are in the execution phase (over R951 million), with the remainder in the development phase (R321 million). The infrastructure includes HVDC key components such as transmission lines, converter transformers, and shunt capacitors, which amounts to a total of R1.5 billion. Obtaining information prior to the year 2010 will require more time, as this information has been archived.

Table 1: Details of infrastructure investment (from 2010)

PROJECT NAME	PLANT TYPE	INITIATIVE PHASE	TOTAL (rand)
Apollo Shunt Capacitor Bank Refurbishment	CAP BANKS	COMPLETED	18 693 718
Apollo CS Breaker 11 kV Replacement	BREAKERS	EXECUTION	31 116 104
Apollo CS Pietersburg Security Fence and Road	SECURITY	COMPLETED	12 342 665
Apollo Bridge 5 Converter Transformers	TRANSFORMERS	COMPLETED	11 554 690
Apollo Upgrade DC Harmonic Filters	CAP BANKS	EXECUTION	11 800 000
Apollo CS Line Voltage Divider Replacement	LINE DIVIDERS	EXECUTION	62 143 000
Apollo CS Problematic Bypass Breakers	BREAKERS	EXECUTION	219 225 000
Apollo CS HVDC Line No. 1: Tower 322	TOWER	COMPLETED	4 266 123
Apollo Songo PLC refurbishment	PLC	EXECUTION	14 200 000
Apollo Storage Plinths DC Side	NON-PLANT	CONCEPT	11 600 000
Apollo CS: HVDC Refurbishment Phase 2: Bridge 4 Transformers	TRANSFORMERS	EXECUTION	296 156 754
Apollo CS: HVDC Refurbishment Phase 2: Bridge 2 Transformers	TRANSFORMERS	EXECUTION	296 156 754
Apollo – Cahora Bassa No. 1 and 2 Quad Spacers	LINES	CONCEPT	130 000 000
Apollo CS: Deluge System Water Storage Tank	NON-PLANT	CONCEPT	17 769 000
Apollo – Cahora Bassa Lines Bird Guards	BIRD GUARDS	CONCEPT	5 400 000
NSP1 Security Build 2 – Apollo (NKP) ERA	SECURITY	EXECUTION	20 450 000
Apollo CS: Replacement of Pole 1 533 kV Reactor	REACTORS	CONCEPT	155 500 000
Apollo HVDC Lines Reinsulation Project	REINSULATION	COMPLETED	44 602 502
Apollo CS: CCTV Installations	SECURITY	COMPLETED	3 834 421
Replacement Bushings for Converter Transformers – Apollo CS	TRANSFORMERS	COMPLETED	17 193 111
Apollo CS Install Spare Transformer in Bridge 6	TRANSFORMERS	COMPLETED	10 000 000
Apollo CS Install Spare Transformer in Bridge 8	TRANSFORMERS	COMPLETED	10 000 000
Apollo 2 x Converter Transformers + Reactor (Capital Spares)	TRANSFORMERS	COMPLETED	109 145 411
		TOTAL	1 513 149 254

The maintenance costs component, provided in Table 2 below, for a period of 14 financial years, amounted to over R165 million, which included the following:

• Servitudes maintenance
• Maintenance by Rotek Industries
• Materials
• Equipment spares
• Production plant services
• Facility services

The maintenance costs information can only be provided from the 2009/10 financial year, as Eskom changed to the current SAP system at that point. Obtaining information prior to that period will require more time, as this information has been archived.

Table 2: Maintenance (from the 2009/10 to the 2022/23 financial years)

(C) Are there long-term plans for the system in terms of (i) life-span of the existing infrastructure, (ii) expansion of the system and (iii) on-going usage?

(i) Details of the long-term plans for Apollo HVDC in terms of the lifespan of the existing infrastructure (refurbishment plan) are provided in Table 3 below.

Table 3: Long-term refurbishment plan

PROJECT NAME	PLANT TYPE	INITIATIVE PHASE	TOTAL (rand)
Apollo Install New Earth Electrodes	ELECTRODE	PRE-CONCEPT	14 000 000
Apollo CS: Permanent Bipole Bypass	ISOLATORS	PRE-CONCEPT	69 010 000
Apollo CS: Replace Bridge 1, 3, and 7 Transformers	TRANSFORMERS	PRE-CONCEPT	888 470 262
Apollo CS Repeater Station Pietersburg Battery System	BATTERY	PRE-CONCEPT	15 000 000
Apollo CS HVDC Line No. 1 Refurbishment	LINES	PRE-CONCEPT	230 000 000
Apollo CS HVDC Line No. 2 Refurbishment	LINES	PRE-CONCEPT	230 000 000
Apollo CS Problematic Equipment Phase 2	SUBSTATION	PRE-CONCEPT	105 600 000
Apollo CS Problematic Equipment Phase 3	SUBSTATION	PRE-CONCEPT	124 200 000
Apollo SS Auxiliary Transformer Bund Walls	NON-PLANT	PRE-CONCEPT	10 300 000
Apollo CS: HVDC System Ref. Upgrade Phase 3	SUBSTATION	PRE-CONCEPT	1 700 562 263
		TOTAL	3 387 142 525

(ii) Currently, there is no long-term plan for expansion for the Apollo Converter Station.

(iii) Hidroeléctrica de Cahora Bassa (HCB) has indicated that it would like to start engagements in terms of the contractual extension beyond 2030. Eskom will be open to such engagements, as HCB power forms part of the baseload power supply mix.

Reply:

(1)(a)Mozambique is currently developing a number of power plant projects and is engaging with South Africa at present. At this point, there are no firm commitments. The projects would need to be incorporated into the Integrated Resource Plan (IRP).

(1)(b) Yes, Eskom is currently using the power from Hidroeléctrica de Cahora Bassa (HCB), as well as purchasing power from the Southern African Power Pool (SAPP) competitive markets, which, at times, includes power from Mozambique. Eskom has aspirations to buy power from cross-border countries. Depending on the pricing and technical feasibility, Eskom will procure power from Mozambique in terms of a fair, transparent, and equitable process.

(2) Eskom utilises the allocated megawatts (MWs) most of the time. On odd occasions, Eskom is unable to access the power when there are limiting factors, including infrastructure faults.

(3) (a) 31 March 2030.

(b) The price is based on avoiding the cost of building a baseload station.

(c) 1 150 MW capacity.

Reply:

(1)(a)

Cabinet has resolved that the current generation fleet must be maximised based on a broader socio-economic benefit analysis and interest of securing energy security. In terms of the NERSA license conditions, Komati Power Station cannot be decommissioned until the shutdown has been approved by NERSA, although Komati Power Station units has been shut down cannot be decommissioned until the NERSA and the PFMA approvals are received.

Work is continuing to investigate the cost benefit of the extension of life and or the repurposing of the existing fleet. If it is feasible to continue to use the flue stacks, cooling towers or any other infrastructure for other new technologies that might feasibly be constructed at the Komati site, the repurposing and repowering will take that into account

(1)(b)

Currently, Eskom does not intend to shut down any more stations and replace them with renewables. Eskom does however intend to install renewable capacity at current sites while they are still operational.

(2)(a)(i)

Currently, only Komati Power Station has been shut down for repurposing and repowering. The intention is to construct solar PV, wind and battery storage. In addition, other repurposing options are being considered.

(2)(a)(ii)

Komati was shut down at the end of October 2022. (c) No other units have been shut down since the shutdown of Komati. Eskom is currently studying the feasibility of continuing to operate the older stations.

(3)

The conditionality is imposed by the funders

Coal will continue to be a feature of South Africa’s energy mix, which will include, gas, nuclear and renewable technologies. I.e. solar PV and wind. Our National Socio-economic and Energy security requirements will dictate our investment choices and the funding thereof.

Notwithstanding the conditions attached to climate change funding, South Africa has not formally entered into any agreements. It is up to the lender to decide whether it is in its overall interest to comply with the conditions to access the concessionary aspects or to attempt to raise loans on commercial terms.

 

 

 

Reply:

a) Synchronisation of Kusile Unit 5:

• Kusile Unit 5 is forecast for first synchronisation in November 2023.

b) Return to operation of all other Kusile units:

• Kusile Unit 4 has been in commercial operation since 31 May 2022, the unit was taken out on a 30 day planned outage and was scheduled to return to service on the 17 September 2023, the unit was returned as planned on 17 September 2023.
• Kusile Units 1 to 3 are forecast to return to operation between October and November 2023
• Kusile Unit 6 is forecast for first synchronisation in August 2024.

Name	Date of return
1. Kusile 1	30 Oct -11 Dec
2. Kusile 2	30 Nov-24 Dec
3. Kusile 3	14 Oct-26 Nov
4. Kusile 5	28 Oct-30 Dec

Reply:

The appointment of special advisors is done in terms of section 12A of the Public Service Act, 1994 as amended and is limited to two full-time equivalent positions for each Minister and Premier, unless Cabinet or the relevant Provincial Executive Council approves a higher number up to two additional full-time equivalent for each Minister and Premier because of work requirements.

The National Energy Committee (NECOM) is led by Minister Kgosientsho Ramokgopa and comprises of more than 100 high-level officials from across government, Eskom, business and social partners. NECOM is overseen at a technical level by the Director-General in the Presidency to advice on the energy crisis, the removal of barriers to new generation capacity and unlocking energy from various sources, including Eskom, Independent power producers, businesses and households.

It is important to distinguish that unlike officials seconded to NECOM for the purpose elucidated above, the special advisors are full-time in the office, advising the Minister in his engagements and discharging his delegated constitutional duties.

(b)

NAME	SURNAME	DESIGNATION	NOTCH
Sarel Jacobs	De La Rouviere	Special Advisor	R 2 158 533.00
Silas Mzingeli	Zimu	Special Advisor	R 2 158 533.00

(c) MR. SILAS ZIMU AND JACOBUS DE LA ROUVIERE

Mr. Silus Zimu

Mr. Zimu started his career in the electricity industry when he joined Eskom in 1992 where he worked as an engineer in the generation group. He then joined City Power as a General Manager - Planning and Technology and was thereafter promoted to Vice President, Customer Services. Because of the knowledge and passion he has for Engineering Operations, Silas was then appointed as a Vice President of Operations in December 2003 and served on Executive Management Committee.

Mr Zimu acted in the CEO position from February 2006, until he was appointed as Managing Director of City Power. Mr. Zimu was CEO of Suzlon Wind Energy South Africa (Pty) Ltd between October 2011 and 2015. He also served as a special advisor on Energy to Former President Jacob Zuma between 2015 and 2018.

Mr. Jacobus de la Rouviere

Jacobus de la Rouviere has over two decades experience in the independent power production cosmos and worked closely with the Southern African Power Pool countries like Eswatini and Mozambique. He has been a panellist in numerous energy summits and has published articles related to Eskom debt and possible solutions in resolving its existential challenges.

His key attribute lies in the development of realistic energy security mechanisms and installations that speak to critical evaluation of exit-price which will not burden the South African Economy with premium energy tariffs. Furthermore his strategic interventions have been tailored to resolve base-load underproduction and delivery of projects within the predicted project time.   

Reply:

a) The staff establishment for the private office of members of the executive is done in accordance with the approved 2019 guide for members of the executive in order to provide administrative support to the member in discharging his/her delegated constitutional duties. The operational cost relating to the Minister in the Presidency responsible for Electricity is drawn from the budget of the Presidency.

 

Reply:

1. Improvement of the EAF is a function of, inter alia, progress on the generation capacity of the Eskom installed fleet, on boarding of renewable energy and success of the Demand Side Management (DSM) programme. The build operate transfer model is being discussed in relation to the development and expansion of the grid.

2. Please refer to answer above.

Reply:

(a) and (b)

Relationships in the workplace are a responsibility of everyone - employees, supervisors, managers, executives, and trade union relationships. The Recognition Agreement signed with trade unions governs these relations and management programmes driven from Human Resources (HR) are in place to ensure that there is an engaged workforce in a harmonious and safe working environment. We continue to do everything to achieve this and below is a detailed account of the initiatives deployed to repair the relationship with labour, employees and between executives:

Eskom has an approved employee engagement programme geared towards enabling our employees to connect with each other and with the organisation. It is a 10 Platform programme that involves all stakeholders ranging from labour, bargaining level, managerial and executive employees, with strategic engagements with trade union leadership of the three recognised trade unions - NUMSA, NUM and Solidarity.

a) Eskom Executive messaging and communication platforms are leveraged to continuously engage leadership and employees to promote a sense of connection to the business and one another. This also includes organisation-wide publications, such as The Guardian, which promote a deeper sense of connection, engagement and relationship building amongst employees.

b) Eskom provides the infrastructure for various employee platforms, committees, and networks to strengthen communities of practice, enabling employees to keep on the pulse of the latest developments – this is a concerted effort made to ensure that wherever possible, employees hear news about Eskom from internal communication channels first and not external media. It is acknowledged that more can be done to strengthen the integration between internal and external communication efforts.

c) Eskom implemented two new talent development programmes to strengthen talent pools, build and retain leadership skills, and improve succession planning and leadership continuity. The top talent programme is focused on general and executive management positions, while the millennial talent programme is aimed at middle and senior management positions. The programmes commenced in October 2022 and will run until March 2024, whereafter the next cohorts will be selected. These programmes support and enrich relationships among Eskom’s leaders. In addition, Eskom rolled out the Management Development Programme (MDP) for 2022-2024 to supervisors, managers, and senior managers to equip leaders in their role to manage employees effectively.

d) Through its Employee Value Proposition (EVP) programme called “More for Me” that provides Eskom employees with over 1200 psychosocial resources which is available online 24/7 and serves as an additional tool to promote employee wellbeing, the Eskom Nkanyezi Programme which is an employee rewards/loyalty programme that offers employees discounts on various products and services through external service providers.

e) The Eskom launched the 1:1:6:10 Eskom Culture Transformation Programme, which is a key enabler for delivering a high-performance ethical culture as we drive the turnaround plan and power growth sustainably. This is backed by a Change Agent Network (CAN), appointing several change agents and champions (approximately 150 individuals). Eskom’s CAN serves as a critical connection/bridge between employees and leaders on all aspects related to Change Management and Culture Transformation.

f) The annual Eskom Human Capital Organisational Effectiveness (HC OE) Survey and other pulse surveys have been rolled out to assess employee views on several key dimensions of Employee Engagement, Employee Value Proposition and Organisational Culture and Change. Action planning within divisions to address survey gaps raised by employees also serves to strengthen relationships and drive enhanced morale.

g) The health and wellbeing of our people are important. Eskom has rolled out several health and wellness programmes that are intended to empower employees to make healthy and safe choices through prevention, treatment, care and support, education, and partnership. Of note to mention, Eskom’s COVID-19 response strategy was anchored in intense employee engagement and change management to drive performance and behaviour modification and was widely welcomed and appreciated by employees.

h) The employee assistance programme (EAP) continues to add value through counselling and psychosocial support programmes. This initiative is a contributing factor to help repair relationships as employees and management receive professional intervention and support in managing related challenges. Over the past year, mental health was identified as the most common problem affecting employees who contacted the EAP. In response, Eskom launched a digital application, LiveWell, in March 2023 to aid employees in dealing with mental health and stress-related challenges.

i) Events related to celebration, recognition and acknowledgement of excellence have been implemented to create unique employee experiences, which positively impacts employee relationships and morale.

j) Enhanced employee engagements, visible felt leadership, Gemba walks, engagements, Boots-on-the-floor site visits etc. have been conducted across various Eskom business areas. A Gemba Walk is a workplace walkthrough which aims to observe employees, ask about their tasks, and identify productivity gains. Hence, concerted efforts have been made to encourage executives to get out of the office and into the field, engaging employees and fostering improved relationships.

k) Employees at all levels of the organisation have undergone their annual declaration of interest submissions thus ensuring adherence to Eskom’s desired business conduct and ethical requirements. This, together with other related initiatives and associated training, builds trust and confidence amongst employees that Eskom is serious about eradicating corruption whilst simultaneously promoting ethics and integrity.

l) Successful conclusion of the Central Bargaining Forum (CBF) negotiations in June 2023 which resulted in a three-year collective agreement between Eskom and the three recognised trade unions on basic salary increases and improved Conditions of Service for Bargaining Unit employees. It bears noting that this is the first time in more than a decade that the parties have reached a collective agreement within the CBF process. This is a testament to the strengthening partnership with the trade unions. Relationships fostered during this process, will no doubt work towards the best interests of Eskom and the country.

m) Moderated (once per round) communication during the 2023 CBF process to allow all parties adequate time to engage their members/key stakeholders. This moderated (once per round) communication approach differed from the previous approach of daily Group Chief Executive messages to all employees and served to enhance the negotiation process. It also demonstrated respect for the views of Organised Labour, who had requested a more moderated approach to CBF GCE messaging and employee communication.

n) Employee and labour engagement initiatives continue to be delivered through various platforms, including leadership employee and executive engagement, organised labour, and Eskom leadership engagements through for a such as the strategic forum, leadership site visits, executive and staff interviews, and employee communiques and events to promote recognition and the celebration of success in the business. To continue in building a harmonious working relationship with trade unions, several initiatives were deployed from Human Resources, and they are:

• • An internal and an external expert disciplinary tribunal to supplement the current management of discipline processes to alleviate the backlog of cases. This will expedite the cases and improve fairness thereby building trust among organisational stakeholders. This will expedite disciplinary matters and create an easier process to manage conflict.

• • During the 2023 wage negotiations, Eskom reviewed the Disciplinary Procedure and Grievance Procedure with trade unions to ensure inclusivity and everyone giving an input, and these were implemented on the 1 July 2023.

• • We facilitate masterclasses on various topical issues to educate, empower and create awareness on labour relations and the management thereof across the company.
  • Other labour participative structures throughout all levels of the organisation are healthy and running well. These include the Central Consultative Forum, divisional forums, and business unit forums. The parties have agreed to reflect on their behaviours and submit proposals on how to improve the functioning of the structure and these will be rolled out continuously.

• • We had a third party facilitated discussion on how we can improve our relationships and how to apply our Recognition Agreement. Recently a Health and Safety Committee meeting consisting of top management and trade unions was held chaired by the Acting Group Chief Executive focusing on health and safety and the commitment of all parties to create a safe working environment.

• • We have introduced new courses to create an understanding of our policies and procedures. Further, we build capacity by conducting train-the-trainer courses that includes part-time shop stewards.

 

Reply:

The Energy Action Plan (EAP), announced in July 2022 remains government’s overarching strategy to tackle the energy crisis and to attain energy security.

Our set of interventions are buttressed on the following pillars.

• Fix Eskom and improve the availability of existing supply.
• Enable and accelerate private investment in generation capacity.
• Accelerate procurement of new capacity from renewables, gas and battery storage;
• Unleash businesses and households to invest in rooftop solar and other demand side management progammes.
• Fundamentally transform the electricity sector to achieve long-term energy security

These interventions are geared to ensure the Country is safely navigated out of the immediate crisis of load shedding and our energy demand and supply is harmonized. The roll out of an aggressive national demand side management campaign will further help stabilize demand with the immediate generation capacity constraints, and in the medium-term additional emergency energy will be introduced through the uptake of surplus energy within the South African energy pool.

The Ministry continues to work with Energy Intensive Users, the renewable energy sector Eskom, and other stakeholders across the energy value chain to ensure that beyond the immediate crisis, in the medium to long term, energy security is restored by increasing production in line with the energy-mix profile set out in the Integrated Resource Plan, and the strengthening and expansion of the national transmission infrastructure as codified in the Transmission Development Plan.

Reply:

1. No.

1. The mandate holder for the JETIP belongs to the Department of Forestry, Fisheries and Environment, we advise that you accordingly direct the matter to their office.

Reply:

1. There was no emergency procurement undertaken during the state of disaster gazetted on 09 February 2023.

 

1. (i)-(ii), (bb), (cc) (dd) Notwithstanding work done by Eskom for risk mitigation, there was no emergency procurement done since the establishment of the National Energy Crisis Committee.

 

Reply:

The Minister presents regular updates to the Cabinet and to the public through the weekly NECOM briefings on the state of generation and our capacity to address the frequency and intensity of loadshedding. Whilst every effort is been made to ensure that we reduce loadshedding, there is no definitive timeline, as this is, inter alia, a function of improvement to generation capacity of the Eskom installed fleet, on boarding of renewable energy and success of the Demand Side Management (DSM) programme.

Whereas many of the interventions being pursued will results in overall improvement to the demand-supply equilibrium, it remains premature to suggest load shedding will be over by the end of year. It is worth noting that generation performance showed improvement from the preceding two weeks (22 May 2023 – 06 June 2023) The average available generation improved by 631MW from 28382 MW to 29013 MW (07 June 2023 to 19 June 2023).

Between 15 May 2023 and 15 June 2023, Eskom’s unavailable plant capacity due to unplanned breakdowns (UCLF), Partial Load Losses (PLLs), and outage delays has decreased by 3580 MW from 18 255 MW to 14 765 MW. These improvements in generation plant performance have resulted in an upward trend in the Energy Availability Factor (EAF) and a reduction in the severity of load shedding from daily stages 4-6 to stage 3 for the period under review, largely the stage 3 was applicable to evening peaks, with the remaining part of the day with no load shedding. EAF for June is trending above 60%. Generation last achieved 61.39% EAF in August 2022.

Reply:

1. The short-term measures include the following:

• 1. Eskom has completed the engineering planning and identified and scoped the relevant infrastructure projects that will enable connection of new generation in line with the Integrated Resource Plan (IRP) and bid windows to come.
  2. Eskom has allocated a capital budget of R74.21 billion to the Transmission Division over the financial years 2024 to 2028. This is an increase from the previous figure of R59.9 billion and shows an appreciation for the urgent need to close the Transmission infrastructure gap.
  3. Eskom has embarked on various other measures to give some certainty that the projects will be delivered, such as reviewing manpower numbers, reviewing equipment supply, and looking at project development and construction capability.
  4. The recently established Energy NATJOINTS Workstream 10 is monitoring this programme closely and escalating matters that require unblocking, such as environmental approvals and rights of way approvals.
  5. Over and above these measures, Eskom is developing standard operating procedures to adopt best practices in network modelling that will allow for more renewable energy to be connected to existing infrastructure in exchange for moderate curtailment. This will be quicker than constructing new power lines and substations. 

(2) what are the relevant details of the kind of models and solutions for transmission build-outs that have been developed for (a) maintenance and upgrades and (b) new builds?

REPLY

For maintenance and upgrades, Eskom uses a combination of outsourced and in-house capabilities, providing services such as servitude, transformer, and switchgear maintenance.

Eskom’s Enterprises business is geared up for some of this specialised work.

(2)(b)

For new build:

• The same as the above applies, even though the volume of in-house is much smaller.
• Eskom will use a combination of the multiple package system (engineering, procurement, and construction management (EPCM)). Contracts for these services already exist.
• Eskom will use the engineering, procurement, and construction (EPC) methodology, sometimes called “turnkey”. This method is expected to reduce the administrative burden of multiple procurement and project management. One contract for these services has been issued to the market, and a second one is in the preparation stage.
• Eskom will also use the owner’s engineer (OE) method of project development and project management. A contract for these services is under evaluation

 

Reply:

The Minister is appraised of his responsibilities. On the 26 May 2023, President Cyril Ramaphosa, invoking Section 97 of the Constitution, signed a proclamation which transferred to the Minister in the Presidency responsible for Electricity certain powers and functions entrusted by the Electricity Regulation Act (Act No 4 of 2006.

President Ramaphosa transferred to the Minister in the Presidency responsible for Electricity all powers and functions contained in Section 34(1) of the Electricity Regulation Act, which were previously entrusted to the Minister of Mineral Resources and Energy.

In addition, the President transferred relevant powers and functions set out in Section 34(2) of the Electricity Regulation Act which are necessary to direct the procurement of new generation capacity and ensure security of supply.

Reply:

(1)- (2) & (3) On the 23rd of October 2022, a section of the Kusile Unit 1 flue gas duct (the equivalent of a chimney in a household) exiting the sulphur dioxide absorber failed on the horizontal rubber expansion joint as well as the compensator (a bend to direct flue gas up the chimney that allows for thermal expansion of the chimney) whilst the unit was on forced shutdown for Flue Gas De-sulphuration recirculating pump repairs. The failure at Unit 1 subsequently affected units 2 and 3 as the ducts for all these three units are welded together.

ESKOM is currently fabricating and erecting temporary stacks at Kusile Power Station to enable operation of the three units without the use of the Flue Gas Desulphurisation (FGD) mechanism which is an emission-abatement technology, for a period of 13 months while the flue gas ducts are being repaired. This will be subject to final authorisation by DFFE to grant ESKOM an exemption to operate the units at full capacity with the temporary stacks. The temporary stacks will be completed by the end of November 2023 and Units 1, 2 and 3 synchronised to the grid by the end of December 2023.

The steel fabrication for the chimney pieces are fairly well, factories are operating 24 hours and are ahead of schedule. The welding of the steelwork is done at the factories while the stacking together of the pieces is consolidated on site.

Unit 3 is projected to be completed by the 28 November 2023, unit 1 is projected to be completed by the 11 December 2023, while Unit 2 is projected to be completed by 24 December 2023. Unit 5 is expected to be completed by October 2023 and unit 6 is expected at the end of 2024

Reply:

An Energy Safety and Security Priority Committee was established to address ESKOM-related crime on an inter-departmental, multi-disciplinary basis to address the objectives of Work Stream Six of the National Energy Crisis Committee (NECOM).

A total of 1952 Eskom-related cases were reported to the SA Police Service between 1 April 2022 and 29 May 2023, with 1405 cases still under investigation, and 126 arrests have been made.

Whilst much remains, these interventions are beginning to turn the situation around, and there are indications that operational measures implemented have clearly disrupted the activities of criminal syndicates.

Reply:

The Ministry had conversations with the Western Cape, Eastern Cape and Gauteng Provincial governments, the Cape Town, Buffalo City, Johannesburg and Nelson Mandela Bay Metropolitan Municipality regarding their individual energy needs. In addition, the Ministry is scheduling fresh visits to each of the 9 Provincial Executive Councils, the leadership of Metropolitan Municipality and secondary Cities during June/July 2023 on the Energy Action Plan (EAP) and the interventions being undertaken to improve generation and reduce demand. These conversations will include the impact of revenue for municipalities and challenges regarding wheeling frameworks and feeding tariffs.

 

Reply:

The Eskom board and management continues to deal with management and operational shortcomings that impede the optimisation of generation capacity, in this regard, the necessary disciplinary action is being pursued as required by relevant legislation and sector collective agreements.

In addition, an Energy Safety and Security Priority Committee was established to address ESKOM-related crime on an inter-departmental, multi-disciplinary basis to address the objectives of Work Stream Six of the National Energy Crisis Committee (NECOM).

A total of 1952 Eskom-related cases were reported to the SA Police Service between 1 April 2022 and 29 May 2023, with 1405 cases still under investigation, and 126 arrests have been made.

Whilst much remains, these interventions are beginning to turn the situation around, and there are indications that operational measures implemented have clearly disrupted the activities of criminal syndicates

Reply:

a) The failed transformer PAMS 65 that is referred to by the Honourable Mr Singh was replaced on Saturday 13 May 2023 according to the process where all customers who had tampered with their meters to avoid paying for electricity had paid the required fine and illegal connections had been removed. Important facts to note regarding this transformer are that some customers were found to have converted themselves to prepaid meters and had installed sub-meters; in such cases, the revenue does not come to Eskom.

Eskom never disconnected or suspended electricity to this area; however, the transformer overloaded and isolated itself due to overload caused by illegal connections, bypassed meters, and vandalism of the infrastructure.

Eskom is experiencing a very significant increase in transformer failures in residential areas due to meter tampering, illegal connections, and vandalism of Eskom’s infrastructure. Replacement of infrastructure without addressing the root cause has become unsustainable, costly, and unsafe for Eskom’s technicians and members of the public, specifically also innocent children.

In such cases, Eskom has an obligation to eliminate the associated safety risk before a transformer is replaced. The replacement of transformers without resolving the problem leads to repeated failures and unsafe conditions for our technical team and the community, and this is also financially unsustainable.

The existing infrastructure has been installed to cater for the supply requirements of Eskom’s legally connected customers.

(b)In addition to the Electricity Regulation Act and its licence conditions, Eskom is required to comply with, among others, NRS 047 Part 1: Quality of Service (“NRS 047”) and the Distribution System Code (“the Distribution Code”), attached to this as Annexures A and B, respectively, which regulate matters pertaining to unplanned supply interruptions. Clause 4.5.3 of NRS 047 regulates the restoration of supply after unplanned interruptions. Under “normal circumstances”, Eskom would be required to follow the restoration period provided in NRS 047. This provision must be read together with paragraph 18.4(1) of the Distribution Code, which requires customers to comply with instructions from Eskom before the supply of electricity is restored. Paragraph 3(1) of the Distribution Code, furthermore, states that Eskom is required to take remedial action to relieve any condition that may jeopardise the reliability of the Distribution system.

Therefore, before the transformer can be replaced and supply restored, an audit must be conducted, and the customers normalised. In line with the regulations and Eskom’s processes, community members who are found to have tampered with their meters are issued with tamper fines of R6 052.60 per tampered meter and all illegal connections are removed. Furthermore, at least 75% of customers legally connected to the transformer must be in good standing before the transformer is replaced. This is to ensure that the infrastructure on the ground will be able to cater for the required load.

Reply:

(1) At present, Eskom is engaging with both the Department of Health and the Department of Water and Sanitation regarding their points of supply in the Eskom supply area identified as critical. Once completed and where possible, measures will be implemented to mitigate the impact of loadshedding as far as practically possible. Currently, Eskom exempts or partially exempts 25 public health establishments within its area of supply.

The Ministry of Electricity has developed costing scenarios for installing an embedded generation (solar installation) to address the impact of load shedding and mitigate the impact of high diesel costs on medical facilities (large and small hospitals).

Small Hospital (400kW power load) based on a 4-hour outage period for battery storage, solar panel and inverters option; R13 million per hospital capital expenditure is required. Large Hospital (1MW power load) based on a 4-hour outage period for battery storage, solar panel and inverters option; R59 million per hospital capital expenditure is required.

Based on the Department of Health figures, to cover 137 Hospitals (varying between small and large), R10.1 Billion capital expenditure will be required to provide a combined Solar, Battery and inverter solution.

In contrast, for the same 137 small hospitals, diesel generators will cost R89.1 Million in capital costs, whilst large hospitals will cost R411 Million (capital costs). However, the operating cost (primarily diesel purchase) will cost R3.3 Billion and R655 Million annually for large and small hospitals, respectively.

A rapid deployment of embedded generation or “micro-grid” solutions, including roof-top solar for hospitals, other critical installations, and economic hubs, will be possible through an aggregated power purchase agreement. Ministry to issue RFI before end of July 2023 and outline a fast track procurement process to secure IPPs for micro gridding.

(2) (a), (b), (c), (i) and (ii) Where a facility is deeply embedded in the network, partial exemption at lower stages of loadshedding has been granted. Eskom has concluded a preliminary assessment of establishing dedicated feeders for certain hospitals. This assessment has been shared with the Department of Health, and discussions on implementation are ongoing. A similar approach will be followed for other critical infrastructure. The implementation time is envisaged to take between 12 to 24 months, after the investment decision, depending on the type of solution and other factors such as environmental approvals and land acquisition.

(3)The legal matter before the Courts falls within the responsibility of the Minister of Public Enterprises and the Honourable Member should accordingly direct the question to the relevant Ministry.

Reply:

1) As part of our contingency measures for the high utilisation of the OCGTs, additional offsite storage has been secured in Mossel Bay and in Cape Town.

(2)Eskom has experienced maintenance and engineering staff to address any failures at the OCGTs with the support of the Original Equipment Manufacturer.

(3)(a) and (b) The OCGTs can run at the anticipated load factors for an extended period. YTD for FY2024, the OCGTs are running at a load factor (GLF) of 22%. The OCGTs are expected to run at approximately 20% for the winter period, until the end of August 2023. The required OCGT load factors after this period will depend on the performance of the generation fleet and the demand