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Projects are underway to upgrade Eskom's infrastructure in the areas of generation and transmission in effort to increase their capacity and resolve load shedding.

Addressing a media briefing on Sunday, Minister of Electricity, Dr Kgosientsho Ramokgopa, said 25 projects to upgrade the existing transformers and increase their capacity are currently in construction.

“We are talking about 25 projects that can unleash about 13 gigawatts of electricity into the grid. The work starts now to be connected by 2026 to ensure there is additional capacity. We need to ensure we expedite the projects and bring them quicker online so we can expand the grid capacity.

“These are the twin challenges [generation and transmission] that we are facing at the moment and we must resolve to address load shedding. Of course, the issue of distribution must receive attention,” the Minister said in Pretoria.

In addition, Eskom has identified 22 projects that can provide 24 gigawatts by 2033.

The concentration of these projects is in the Western Cape, Northern Cape and Eastern Cape, as the coastal areas have the highest wind speed.

“From the Northern Cape, we can get about 5 845MW. In the Eastern Cape, we can get 5 875MW and 8 954MW in the Western Cape. Eskom will need R100 billion going into the 2025 financial year and by 2029, we will need about R170 billion.

“The Eskom balance sheet will not be sufficient to finance this. We need alternative sources of financing and that is the work we are doing,” the Minister said.

Grid capacity

Ramokgopa also gave an update on the Energy Availability Factor for the week 24 July – 28 July 2023.

“During this week in question, we had a peak on 25 July, where we had capacity available to the tune of 29 376MW.

“This energy availability is the sum of a number of elements, which include planned outages.

“On Friday (28 July), we had the highest of that period with 4 126MW. That represents 1 600MW above what we had projected for our planned outages for the winter period.

“When the planned outages are up, it means that we are doing everything that is possible in an orchestrated fashion to ensure we are able maintain the units and when they return, hopefully they will be more resilient and overtime, it will improve the capacity available,” the Minister said.

Ramokgopa said the albatross remains the capacity loss factor, where units fail as a result of a multiplicity of factors.

“The principle reason… is boiler tube leaks. They are a big contributor to the failure rate. In the context of the winter outlook, the best case scenario was that the unplanned loss capability factor would be about 15 000MW and the worst case scenario was that it would be about 18 000MW.

“We are just shy of 16 000 MW. It is an area that is receiving our attention. The partial load losses simply means that the units are producing but not at the desired level. This is at 6 340MW. We want to improve their efficiency so that they are able to perform better and give us a significant number of MW,” the Minister said.

Eskom is working on reducing the unplanned capability loss factor (UCLF). We want to improve the performance of the units by reducing the partial load losses. When you bring those together, they add to the available capacity. Those are the areas that we are tracking,” he said.

Ramokgopa assured citizens that Eskom is working hard ensure the country does not go beyond Stage 4.

“On outage slips, this is one area that we are seeing significant improvement. It almost halved from 3 476 MW. We are at 1 843MW. This is a function of planning and management. It has received extended attention by various station managers. This is one area that I am confident that we will continue to see major strides going into the future,” the Minister said. - SAnews.gov.za

The Energy Regulator says it agrees with the draft ministerial determination to procure 1 000MW of new generation capacity from the Cross-Border Procurement agreement.

“New generation capacity must be procured or purchased to contribute towards energy security and accordingly, up to 1 000 megawatts (MW) should be procured from the Southern African Development Community (SADC) region from a range of technologies/sources,” the National Energy Regulator of South Africa (NERSA) said on Friday.

The energy regulator explained that this programme is implemented in order to close the widening energy gap, as articulated in the Integrated Resource Plan for Electricity 2019 – 2030 (published by Government Notice No. 1360 of 18 October 2019 in Government Gazette No. 42784) ('the IRP 2019'), and as is currently being experienced in South Africa.

“The energy regulator said the energy capacity shall be procured from a range of energy producers from the region.

“The range of energy producers from the region will either be utilities from the host countries or independent power producers that are legally operating within the host countries,” NERSA said.

The energy capacity shall be procured by Eskom Holdings SOC Ltd and shall entail: the procurement of electricity through one or more processes that are fair, equitable, transparent, and cost-effective, and  the form of which shall be determined by Eskom; and the conclusion of Power Purchase Agreements (PPAs) in respect of the electricity, for which the duration will be agreed upon between Eskom and the energy producers from the region.

“The electricity procured or bought shall target the South African Grid as soon as reasonably possible, considering all relevant factors, including prevailing energy security risks and the time required for efficient procurement,” Nersa said.

In addition, the Energy Regulator concurred with the draft ministerial determination for the procurement of 2 000MW of new generation capacity from the Load Shedding Reduction Programme.

As part of the programme, up to 2 000MW should be generated from a range of energy technologies/sources in accordance with the short-term risk mitigation capacity allocated under the heading 'Other', for the years 2025 to 2028 of the Integrated Resource Plan for Electricity 2019 – 2030 (published by Government Notice 1360 of 18 October 2019 in Government Gazette No. 42784) ('IRP 2019').

The programme requires that the new generation capacity is established from energy generated from independent power producers.

The electricity produced from the new generation capacity ('the electricity') shall be procured by Eskom Holdings SOC Ltd and shall entail: the procurement of the electricity through one or more processes that are fair, equitable, transparent, and cost-effective; the form of which shall be determined by Eskom, and the conclusion of power purchase agreements (PPAs) in respect of the electricity, which PPAs shall be aligned with short-term power purchase agreements.

“The electricity procured or bought shall target connection to the Grid as soon as reasonably possible, taking into account all relevant factors, including prevailing energy security risks and the time required for efficient procurement,” the energy regulator said.

The Energy Regulator also concurred with the draft ministerial determination for the procurement of 800MW of New Generation Capacity from the Emergency Procurement Programme as follows:

• New generation capacity must be procured or purchased to contribute towards energy security. Accordingly, up to 800 megawatts (MW) should be procured from a range of energy technologies/sources in accordance with the Emergency Generation Procurement Programme allocated under the heading 'Other', for the years 2029 to 2030, in Table 5 of the Integrated Resource Plan for Electricity 2019 – 2030 (published as Government Notice No. 1360 of 18 October 2019 in Government Gazette No. 42784) ('the IRP 2019').
• The new generation capacity shall be procured from a variety of local generators, including independent power producers (IPPs).

The electricity shall be procured by Eskom Holdings SOC Ltd and shall entail: the procurement of the electricity through one or more processes that are fair, equitable, transparent, and cost-effective, and the form of which shall be determined by Eskom; and the conclusion of power purchase agreements (PPAs) in respect of the electricity, which PPAs shall be aligned to the short-term power purchase agreements; and

The electricity procured or bought shall target connection to the Grid as soon as reasonably possible, considering all relevant factors, including prevailing energy security risks and the time required for efficient procurement

The Energy Regulator noted the approved draft Reasons for Decision on the concurrence with the section 34 ministerial determinations for the procurement of 3 000MW of Combined Cycle Gas Turbine (CCGT) and 1 000MW Standard Offer Programme (SOP) by Eskom.

The detailed Decisions and Reasons for Decision documents regarding the above decisions will be available on the NERSA website at www.nersa.org.za in due course. - SAnews.gov.za

The Energy Regulator has approved that the National Transmission Company of South Africa (SOC) Limited (‘NTC’) be issued with a licence to operate a transmission system within the national boundaries of the Republic of South Africa. 

“This is a milestone decision by the Energy Regulator and will immensely contribute in Eskom’s unbundling trajectory,” National Energy Regulator of South Africa (NERSA) Chairperson, Thembani Bukula, said on Friday.

At the 2019 State of the Nation Address, President Cyril Ramaphosa announced that Eskom Holdings SOC Ltd would be unbundled into three wholly owned entities: Generation, Transmission and Distribution.

“The NTC is envisioned to be an independent transmission system operator incorporating, inter alia, the currently non-licensable but integrated functions of network provision, system operation and system planning.

“The NTC’s independence is an important signal to all stakeholders, including investors that they will have non-discriminatory access to the transmission system,” NERSA said.

Furthermore, the NTC is responsible for ensuring grid stability, to which end, it is allowed to buy and sell power, but not for profit.

“However, in terms of section 15(1) of the Act, the NTC will be afforded the opportunity to recover its efficiently incurred costs and a reasonable return on its assets. The Energy Regulator understands that the aforementioned provisions are both within the ambit of the Act and enable the NTC to be operationalised as an independent and reliable transmission system operator,” NERSA said.

The NTC a wholly owned subsidiary of Eskom, which was established as per the Government objectives and in alignment with the Department of Public Enterprises’ (DPE’s) ‘Roadmap for Eskom in a Reformed Electricity Supply Industry’ (‘the White Paper’), issued on 29 October 2019.

The NTC will operate the transmission system and perform the following key integrated roles to ensure the integrity of the interconnected power system (IPS):

• Transmission Network Service Provider (TNSP)
• System Operator (SO)
• Transmission System Planner (TSP)
• Grid Code Secretariat

The NTC’s licence application was processed following due regulatory process, including a public hearing that was conducted on 11 April 2023.

“All presenters that made oral presentations during the public hearing supported the application. NERSA analysed the application to assess whether it meets the minimum requirements for licensing as contained in section 10(2) of the Electricity Regulation Act, 2006 (Act No.4 of 2006) – the Act. The application was found to meet the licensing requirements,” the energy regulator said.

Generation licence application by Ngonyama Solar

The Energy Regulator approved that Ngonyama Solar (RF) (Pty) Ltd be issued with a generation licence as the sixth preferred bidder of the Department of Mineral Resources and Energy's (DMRE’s) Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window Six (BW6).

On 3 March 2023, Ngonyama Solar (RF) (Pty) Ltd was announced as the sixth preferred bidder, with a contracted capacity of 140 MW.

This brings the total contracted capacity for BW6 to 1 000 MW for solar projects.

“Ngonyama Solar’s preferred bidder status letter was issued on 13 March 2023. Ngonyama Solar applied for a generation licence in accordance with section 7 of the Electricity Regulation Act, 2006, which requires that no person may operate a generation facility without a licence issued by the Energy Regulator.

“NERSA analysed the application and found that it met all the licensing requirements. There were no objections received to the application,” the energy regulator said.

The six preferred bidders for all Solar Photovoltaic (PV) technology include Doornhoek PV (Pty) Ltd; Boitumelo Solar Power Plant (RF) (Pty) Ltd; Kutlwano Solar Power Plant (RF) (Pty) Ltd; URSA Energy (RF) (Pty) Ltd; Antlia Energy (RF) (Pty) Ltd and Ngonyarna Solar (RF) (Pty) Ltd. – SAnews.gov.za

By Dikeledi Molobela

St. Petersburg, Russia – As south Africa prepares to host the 15th BRICS summit in August, President Vladimir Putin has expressed his full support and confidence in the summit’s success.  

The Russian Head of State stressed the close collaboration between Russia and South Africa in various international fora like the United Nations, G20 and other multilateral organisations such as BRICS, which is currently being chaired by South Africa. 

“We closely and constructively cooperate within this grouping in order to extend our strategic cooperation between the five countries [Brazil, Russia, India, China and South Africa]. 

“I am convinced that the meeting you are currently preparing for will be held on the highest level possible. I have no doubts about this and we will spare no effort in giving our assistance to you,” he said. 

President Putin was speaking on Saturday during a bilateral meeting with President Cyril Ramaphosa at Konstantinovsky Palace in St. Petersburg. The gathering was held to discuss South Africa and Russia’s bilateral relations. 

In response, President Cyril Ramaphosa expressed his sincere appreciation, underscoring the longstanding history of collaboration between the two nations. 

He emphasised that their cooperation goes back to their joint efforts within the G20, where they have successfully worked together on numerous critical issues.

Additionally, President Ramaphosa said, the partnership extends to the BRICS platform, where they have actively engaged in addressing matters of mutual interest.

“We are delighted to have your support as we are going to host BRICS in a few weeks. We agree with you that BRICS should be held at an appropriate level. 

“We are in the process of preparing for BRICS and we thank you for the support you are giving and that you are willing to give. As it is, a number of Russian officials and Ministers have been to South Africa to attend the various preparatory meetings that are taking place for BRICS. We are hoping that the participation of all the BRICS countries will lead to a valuable outcome. We are looking forward to a successful summit,” President Ramaphosa said. 

Turning attention to the recently concluded second Russia-Africa Summit, President Ramaphosa lauded President Putin for hosting a successful summit, with a declaration that was “well negotiated and well crafted”, representing the views of various countries. 

President Ramaphosa took the opportunity to express gratitude to his counterpart for hosting a successful and well organised summit. 

“We believe the summit was successful and well organised. The outcome was very good and the declaration was well negotiated and well crafted. 

“It represents the views of various countries that were here and put together with your views. I believe that we have a declaration that can take forward our relationship between Africa and Russia. 

“What is particularly pleasing is that Russia conducts its relationship with Africa at a strategic level, with a great deal of respect for and recognition of the sovereignty of African States,” the President said.

President Ramaphosa acknowledged that Russia's support for Africa has remained steadfast over time, dating back to the days of the Soviet Union. He expressed satisfaction that the spirit of cooperation between Russia and Africa endures to this day.

Trade ties

Regarding the bilateral relationship between Russia and South Africa, President Ramaphosa affirmed that the two nations share and uphold strong ties.

“It’s a multi-level relationship. On an investment level, there are quite a number of companies in the South African market that are also invested in the Russia market,” he said.

The President emphasised that South Africa is presently grappling with an energy crisis and could gain valuable insights from Russia's experience. 

“Currently, South Africa is going through an energy crisis and we could learn a lot and do a lot together with Russia on the energy side. On the science and technology side, there's a great deal that we can learn from each other. We can learn a lot from you,” he said. 

The President mentioned his interest in exploring fields such as space, noting the presence of a Space Institute in South Africa.

“You have advanced a great deal in space, and that is one area in which we could cooperate.

“We appreciate the support we received from Russia during the COVID-19. Your innovation when it came to COVID-19 helped to inspire our own scientists. I remember you [President Putin] and I having a conversation after our scientists discovered Omicron and we spoke on the phone. You sent Russian scientists to South Africa so that we could exchange views. I do believe that that was really impactful. We thank you for that,” the President said. 

Regarding education, the President expressed South Africa's deep appreciation for the support received from Russia. He conveyed his desire to encourage an increasing number of students to pursue studies in various disciplines in Russia. 

President Ramaphosa acknowledged the value of the extensive support provided by President Putin to many South Africans who have been educated in Russia, and expressed his wish to see this support continue.

Furthermore, President Ramaphosa praised President Putin's stance on the representation of Africa at the United Nations level.

“We'd like to appreciate your position on the issue of the representation of Africa at the UN level. We continue to be a continent that is not represented in the key structures of the UN. Thank you for being supportive in that regard,” he said. – SAnews.gov.za