Briefing to WC Provincial Government – Standing Committee on Finance, Economic Opportunities and Tourism 9 October 2019 Briefing - National Matters 2019/10/08 2 3 Introductory Notes Eskom operates a national grid, which implies: Generation Plant is not dedicated to the province in which they are located All forms of energy, including renewable energy is dispatched at a national level, not at a provincial or local level. Eskom Debt – COO will address Cost Containment – COO will address 2019/10/08 System Status Update 2019/10/08 4 Actual System Weekly Peak Demand (Including IOS) • The residual peak demand for 2018-19 Financial Year was 34 907 MW. The Year-To-Date residual peak demand for 2019-20 Financial Year is 33 736 (considering dispatchable generation and firm imports). • When including the supply from contracted IPPs (sold to Eskom) the RSA contracted peak demand for 2018-19 Financial Year was 35 345 MW, and the Year-To-Date RSA contracted peak of 2019-20 Financial Year is 34 500 MW. • The contracted demand reductions over peak last week was 280 MW, and the support from Renewable IPPs was 813 MW. Weekly Peak Demand (Financial Year) 2019-20 RSA Contracted Peak Demand 2019-20 Official Residual Peak Forecast 2019-20 Residual Peak Demand 2018-19 RSA Contracted Peak Demand 2018-19 Residual Peak Demand Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 36 000 1 35 000 x 10000 34 000 33 000 32 000 31 000 Peak Demand (MW) 30 000 29 000 28 000 27 000 26 000 25 000 24 000 1 08-Jul-19 22-Jul-19 06-Jan-20 20-Jan-20 10-Jun-19 24-Jun-19 14-Oct-19 28-Oct-19 01-Apr-19 15-Apr-19 29-Apr-19 02-Sep-19 16-Sep-19 30-Sep-19 03-Feb-20 17-Feb-20 09-Dec-19 23-Dec-19 05-Aug-19 19-Aug-19 11-Nov-19 25-Nov-19 02-Mar-20 16-Mar-20 13-May-19 27-May-19 5 Week Starting OCGT Usage: - Load Factors YTD 2019/10/08 6 Daily Average UCLF and OCLF figures UCLF and Average Daily 12 000 12 000 13 000 14 10 000 10 000 11 9 0009 1 0001 0002 0003 0004 0005 0006 000 7 0008 0 01/04/2019 05/04/2019 09/04/2019 13/04/2019 17/04/2019 21/04/2019 Average of Partial OCLF of Partial Average 25/04/2019 29/04/2019 03/05/2019 07/05/2019 11/05/2019 15/05/2019 19/05/2019 23/05/2019 27/05/2019 31/05/2019 04/06/2019 Average of Full OCLFof Full Average 08/06/2019 12/06/2019 16/06/2019 20/06/2019 24/06/2019 28/06/2019 02/07/2019 06/07/2019 10/07/2019 14/07/2019 Average of Partial UCLF of Partial Average 18/07/2019 22/07/2019 26/07/2019 30/07/2019 03/08/2019 07/08/2019 11/08/2019 15/08/2019 19/08/2019 23/08/2019 27/08/2019 Average of Full UCLFof Full Average 31/08/2019 04/09/2019 08/09/2019 12/09/2019 16/09/2019 20/09/2019 24/09/2019 28/09/2019 7 02/10/2019 Regional allocation of installed renewable energy • From a National perspective, the penetration is not yet at a level which is causing substantial challenges in operations. • Regionally, the local penetration is a lot higher, particularly with PV in the Northern Cape and wind in the Eastern Cape. CSP 0 PV 118 Wind 0 Other 0 CSP 0 CSP 0 PV 7 PV 0 Wind 0 Wind 0 Other 0 Other 8 CSP 500 PV 950 Wind 664 Other 10 CSP 0 PV 196 Wind 0 Other 4 CSP 0 PV 134 Wind 319 Other 0 CSP 0 PV 70 Wind 997 Other 0 8 Briefing - Provincial Matters 2019/10/08 9 10 Provincial Network Plan The Provincial Network Plan comprises of:- Capital Investment Plan Maintenance Plan This Provincial Plan outlines the infrastructure investment and maintenance required to deliver energy to the end customers 2019/10/08 Capital Investment Plan 2019/10/08 11 Network Development Plan Areas 12 Network Development Plans for City of Cape Town Areas 13 Definitions of Project Categories Refurbishment Modifications of an asset to extend its ‘useful life’. The useful life of most of the Distribution assets is 25-30 years with the exception of the Control Plant (Electronic) assets which range between 5 to 10 years. Strengthening Increase in the capacity of an asset to cater for increased electrical load demand. Reliability The improvement in the performance of an asset to prevent degradation or failure of the asset. In the case of Distribution such projects would entail inclusion of redundancy in the design of the asset. Direct Customer Projects that are initiated and paid for directly by external customers. These include new points of supply, additional points of supply, and improvements to existing points of supply. 14 Project per Network Development Plan Area 2019 - 2023 Ashton: R29m Bluedowns: R64m Ceres: R7m George: R79m Helderberg: R21m 15 Project per Network Development Plan Area 2019 – 2023 (cont.) Houhoek: R61m Karoo: R6m Khayelitsha: R66m Mooreesburg: R123m Oudtshoorn: R60m 16 Projects per Network Development Plan Area 2019 – 2023 (cont.) Prospect Hill: R700m 17 Projects per Network Development Plan Area 2019 – 2023 (cont.) Vredendal: R1,3m Vryheid: R5,6m Worcester: R7m Stikland: R170m 18 Standing Items Maintenance Plan 2019/10/08 19 Asset Definition Sub-Stations Sub-transmission Lines >44kv Transformers Conductor and Hardware Primary Plant (Power) Support Structures Secondary Plant (Control) Roads and Fences Sub-transmission Cables >44kv Reticulation 11 to 33kv Cables Transformers Poles, conductor, hardware, cables Prepaid Meters Prepaid Meters 21 Maintenance Categories Maintenance Category YTD July 2019 - 2021 Actual (RM) Annual (RM) Vegetation Management maintenance 1.42 38 Woodpole Programme Maintenance 2.76 25 Reliability Improvement Maintenance 3.92 20 Low Voltage Maintenance 1.17 15 Major Maintenance 10.8 60 PREVENTATIVE MAINTENANCE 21.36 162.71 Self Insurance (Theft & Vandalism) 14.77 44.53 Routine Maintenance and Defect Clearing 57.17 191 - CNC's TOTAL MAINTENANCE 87.35 410.46 2019/10/08 22 Major Maintenance 2019/2020 Sector YTD Actual Budget Allocated Sector 1 - Bredasdorp, Caledon, Ceres, De 4 195 648 7 690 000 Doorns, Montagu, Swellendam & Worcester Sector 2 - Delft, Polkadraai, Somerset West & 1 660 056 6 750 000 Kraaifontein Sector 3 - Airport, Carbon, Malmesbury, 1 173 099 8 153 209 Piketberg, Vredenburg & Vredendal Sector 4 - Beaufort West, George, Laingsburg, Oudtshoorn, Plettenberg Bay, Riversdale & 1 239 439 9 920 000 Ladismith Sector 5 Monwabisi, Spine & Grabouw 4 326 423 8 113 688 23 Reliability Maintenance 2019/2020 Sector YTD Actual Budget Allocated Sector 1 - Bredasdorp, Caledon, Ceres, De 4 920 954 8 100 000 Doorns, Montagu, Swellendam & Worcester Sector 2 - Delft, Polkadraai, Somerset West & 252 340 2 000 000 Kraaifontein Sector 3 - Airport, Carbon, Malmesbury, Piketberg, 92 914 4 300 000 Vredenburg & Vredendal Sector 4 - Beaufort West, George, Laingsburg, Oudtshoorn, Plettenberg Bay, Riversdale & 187 743 1 000 000 Ladismith Sector 5 Monwabisi, Spine & Grabouw 425 409 1 700 000 Standing Items Plant Performance 2019/10/08 24 WCOU Five Year SAIDI and SAIFI performance Eskom FY SAIDI WCOU SAIDI Dx SAIFI WCOU SAIFI Dx 2014 14.90 35.70 7.36 19.89 2015 17.19 35.44 9.26 19.51 2016 15.46 34.60 8.39 18.49 2017 20.35 35.64 8.90 17.16 2018 21.83 35.45 7.69 14.55 2019 YTD Aug 20.53 38.29 7.03 14.94 SAIDI – System Average Interruption Duration Index SAIFI – System Average Interruption Frequency Index WCOU Western Cape Operating Unit Dx - Distribution 2019/10/08 25 Dx SAIFI and SAIDI comparison YTD (August) Current SAIFI SAIFI (Shareholders SAIDI (Shareholders Current SAIDI 2019/2020 Target dataset) dataset) 2019/2020 Target Operating Unit (OU) (Prelim) Number per annum Number per annum Hours per annum Hours per annum Eastern Cape Operating Unit 13.53 22.76 45.57 52.69 Free State Operating Unit 10.46 12.24 26.91 25.03 Gauteng Operating Unit 17.58 18.12 37.18 34.56 KwaZulu-Natal Operating Unit 19.41 22.2 46.09 45.30 Limpopo Operating Unit 14.42 18.75 37.52 35.00 Mpumalanga Operating Unit 14.46 18.57 36.26 31.25 Northern Cape Operating Unit 7.55 9.64 24.13 22.18 North West Operating Unit 15.52 17.76 36.39 38.72 Western Cape Operating Unit 7.03 10.3 20.53 21.69 Distribution 14.94 19.6 38.29 38.00 2019/10/08 26 Standing Items Renewable Energy 2019/10/08 27 Installed Renewable Energy in the Western Cape Province Technology Installed Planned2 Capacity1 Name Location Capacity Grid WIND Bid 1: Connection Roggeveld Laingsburg 140MW 02 Dec 2020 91,6MW Karusa Matjiesfontein 139,8MW 15 March 2021 Bid 2: 232MW Soetwater Matjiesfontein 139,4MW 15 March 2021 Perdekraal Touwsrivier 107,76MW 26 April 2020 East Excelsior Swellendam 31,9MW 27 Oct 2019 Total: 398,6MW Bid 1: 41MW Power Dispatch SOLAR Bid 2: 17,8MW • All the available power is dispatched as per contract Bid 3: 75MW Total: 133,8MW Note 1: All installed during bid 1,2,3 Note 2: New capacity to be installed in bid 4, currently in construction 28 Towards Cleaner Power with Battery Energy Storage Systems (BESS) 29 BESS Project Target Completion 30 Procurement Method Where we are 31 Phase 1 - ECOU; KZNOU and WCOU sites • Phase 1 is made up of the following sites which make up to 800 MWh OU Site Name Nature of Solution Integration Type Size of BESS Capacity (MWh) (MW) EC Melkhout Load levelling and Substation HV 40 160 Generation KZN Elandskop Load shaving Substation MV 8 32 KZN Pongola Load levelling and Substation HV 40 160 Generation WC Skaapvlei Generation Smooting Substation without 50 Min 200 Max MV 320 WC Hex Capital deferment Substation without 25 100 MV WC Paleisheuwel Voltage Response Substation MV 16.5 66 11kV & 22kV 32 WC Graafwater Voltage Response Substation MV 9 36 Phase 1 - WCOU sites • Phase 1 is made up of the following sites which make up to 800 MWh OU Site Name Nature of Solution Integration Type Size of BESS Capacity (MW) (MWh) WC Nuwekloof Wind Generation Substation HV 9 36 smoothing & Peak shaving WC Witzenburg Wind Generation Substation HV 25 100 smoothing & Peak shaving TOTAL 222.5 MW 890 MWh Final mix of sites to reach 800 MWh will hinge on the capacity constraints of Skaapvlei influenced by environmental considerations and site limitations.