South African energy crisis
Following recent announcements by Government of a National Recovery Plan to tackle the energy emergency, Eskom today announced measures being taken to address the situation while at the same time called on all South Africans to get involved in establishing a national movement to harness the ingenuity and resolve of the nation.
At a press conference in Johannesburg today, Jacob Maroga, chief executive, Eskom said: “The unavoidable load shedding of January left South Africans with a sense of anger and frustration, which was completely justified. It is a time for leadership and accountability. Although the solution to this problem does not lie with Eskom alone, in fact, Eskom cannot build new power stations fast enough to meet South Africa’s demand, it is our duty to deliver to South Africans a plan that is workable and achievable. A plan that demonstrates Eskom’s commitment to providing security of supply, in partnership, with all our stakeholders. A plan that can form the basis of a national rallying cry or a movement in which each and every one of us plays a crucial role, for the sake of our nation’s future.
“We have been overwhelmed by the response from all quarters of South Africa. President Mbeki and his Cabinet have acted decisively on the matter, pronouncing a national emergency and mobilizing all relevant departments to assist. Our meeting with Ministers and top business leaders on the 29th of January was another success story with concrete actions following; our key industrial customers have come to the party with a 10% saving which has had a dramatic impact on the stability of supply in the last two weeks. I would like to applaud the key industrial customers for the positive approach they have taken on the issue, and I take cognizance of their comment that this is a problem that needs to be shared, it cannot be shouldered by some industries alone. The media, both print and broadcast have offered assistance in getting the message through and lastly, the people of South Africa have demonstrated the spirit of this nation - a spirit that says we shall overcome, a spirit of ingenuity which we applaud and encourage as we partner forward.”
“Our mandate is to re-establish Eskom’s ability to provide a secure supply of power, the plan has already started and will run until 2012, when our first base-load power station comes on line.”
The plan follows three phases: Phase 1 - Stabilisation Programme (immediate to end February) which specifically looks at restoring 4000MW to the system; Phase 2 - Power Rationing (March - July); and Phase 3 - Power Conservation Program and Supply Side Options (August 2008 - 2012), which requires 3000MW continuously for a period of 4 years.
Phase 1: Stabilisation Programme: For the immediate restoration of the system security, 4000MW is required until the end of February: 1000MW from the improvement in coal delivery and associated problems; 1800MW in load reduction by municipality customers; and 1200MW or 10% in load reduction by industrial customers.
Says Maroga: “Since the 4 February, we have not had to load shed, in large part due to the relief provided by the key industrial customers through their 10% reduction in load and the generation improvements. The impact has been immediate and demonstrates just how effective energy saving can be. In January, losses were unusually high (2000MW-4000MW); plant performance deteriorated and unplanned outages were unusually higher than normal (2000MW-3000MW), resulting in a continuous 4000MW deficit in meeting supply and demand. If we could get the residential, commercial and agricultural customers to reduce consumption by 10% or 1800MW, we would be close to our 4000MW target, without having to load shed.”
Phase two: Power Rationing: during the power rationing phase, and having restored coal supply, the focus falls on the long-term recovery of the power system. During this period, 3000MW is required from load reduction (1800MW from municipal customers and 1200MW from industrial customers), so power rationing would be a continuation of the 10% voluntary curtailment.
Says Maroga: “It is important to note that power rationing is a positive step towards providing consumers and businesses with a measure of predictability. If we are able to maintain the load reduction , the reserve margin increases to the required 15% and our maintenance can be done to ensure reliability of supply.
Phase three: Power Conservation: During this phase and for a period of 4 years the 3000MW sustained reduction enables growth and ensures adequate operational reserves for the power system security.
The next step was to structure to enable the implementation of the plan. Maroga restructured EXCO, slimming down to a workable six key members and announcing a Recovery Task Team, clustered broadly around the supply side and the demand side of the business. Two Exco members with successful and long serving careers at Eskom will head up key streams within the task team, namely Brian Dames on the supply side and Erica Johnson on overall planning and risk management.
The six key streams or focus areas are:
• Supply side recovery: including generation plant performance, primary energy resources and enterprise build projects:
• Power buy-back:
• Demand side management: energy efficiency and demand reduction programmes:
• Confidence Building and Communication:
• Employee Morale:
• Planning, resilience management and risk management:
“Although the team has only been operational for a week we have progress to report, specifically around the critical and pressing issue of coal. We will also be instituting a weekly press briefing to keep media and the public up-to-date on all aspects of the recovery team’s performance,” said Maroga.
As to what has been achieved already, Brian Dames, was clear on the coal issue: “We have deployed a team to specifically investigate the coal issue and a detailed recovery response plan has been developed to address the issue. There are two main areas of concern: quantity of coal (the stocks are down to an average of 10 days rather than the norm of 20 days). Quality of coal, in particular, the high ash and fine coal content in our current supply. High coal fine content, together with unusual rainfall, led to the wet coal problem. The heavy rainfall and flooding at mines, hampered transportation of coal and hence production, from loading, to deterioration of roads and subsequent transport problems. Low grade coal with a high ash and fine content becomes slurry when wet. “
The coal plan will deliver the following:
• Approval of a mandate for emergency coal purchases including: supply and delivery of 53.5Mt over two years with 17.7Mt already approved.
• Although logistics for the transportation of coal over the next two years are extremely challenging, Eskom is in collaboration the Department of Public Enterprises and Department of Transport to solve the transport and logistics challenges. Eskom has already held discussion with the Chamber of Mines and the outcome has been positive in terms of supply of additional coal and transport.
Commenting on DSM iniatives, Maroga said that Eskom would be stepping up communication aimed at stakeholders and the general public and a new campaign would soon be launched to educate consumers and inspire the general public and business alike to partner with Eskom. In this regard, partnership proposals from a wide variety of national and regional media groups were being considered.
“We cannot stress the impact that an energy efficient culture can have on our ability to provide a secure supply of electricity. Energy efficient lighting would reduce capacity required from half a power station to one unit of a power station,” he said.
He added: “According to the plan, the energy saving required by the residential market, commercial and agriculture is 1800MW in the first phase. This saving, together with the 10% saving being made by key industrial customers, municipalities and metros will put us very close to achieving the necessary 4000MW.
In conclusion, Maroga added: “Eskom has unbelievably committed people at all levels of the organisation, working tirelessly to keep the lights burning, without them, all our efforts would be for nought. The system remains tight, and even with the plan in place, there are many elements and uncontrolled impacts that can adversely affect the supply. However, if we achieve our targets as a nation and become energy efficient we can, ‘Get the Power Back’.
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