The Eskom War Room22nd July 2015

SANEADavid Lipschitz

People

Also AfricanUtility Week

Ashraf

Integrated EnergySolutions stats

5 point plan

Focus

IPP procurement, Demand sidemanagement, Draft IRP, Development

of the elecricity price plan Immediate Measures

Re-deploy managers, maintenance,Eskom Operational Management,

Partial Load Losses

Trying to move from 72% to 78%energy availability factor by 2020

RestorationMajuba

Duvha

But coal might have run out inthe area where the

recommissioned power stationis

Get online

Medupi

800 MW by Sep 2015

Kusile

Improve management of LoadShedding and reduce confusion;

and measuring load shedding (kWh)

Co-generation STPPP proposalNegotiation

Compilation and approval atEskom Investment and CapitalAssurance Committee (ICAS)

Gas for Power Gen andAdditional Sources of Supply

Other IPPs

Expedite existing (1000 MW); Coal (2500 MW);80 possible small scale RE Generation projects (1 to 5 MW);

re-commission Ingagane & Vierfontein

Govt procurement process forthe 80 IPPs: Dec 2015

DSM

R9 to R15 per kWh to theeconomy [R72?]

Mines, etc, 10%below 2008 levels

Damage to machinery and equipmentand labour; investor confidence and

social trust not included

R11bil per month

R5 per kWh for diesel

Eskom averagecost is R0.67 per kWh

excl new build Plus overstaffing, andover paying the staff

Other

Finance and procurement, skills,regulatory issues, LT issues with ST

implications, communications

Eskom's liquidity crisis; LTsustainability; LT tariff trajectory

Technical skills shortages amongst Eskom'ssuppliers (expediting Visa applications); technical plant senior managers

skills (11 empty positions); additional operating and maintenancestaff (141 empty positions)

Eskomreorganisation isrequired (BPP)

Gas for Power Generation andAdditional Sources of Supply

Namibian floating gas storage plant;Moz gas supply pipeline used by SASOL:

Imported LNG, OCGT conversion to gas or LNG

Floating bargesas Saldanha

War room onelectricity

Structure

Head is DeputyMinister of Energy& Deputy President EPME, DOE, DPE, DCOG, NT, GCIS, DTI, EDD,

Eskom, Contracted Experts

DCOG: Dept ofCooperativeGovernance

Not specificallyelectricity, but starting with electricity

Next Phase?

KPI's for Eskom'soperating divisions

Many Depts

Coordinate butdon't do their work

There is also theFinancial Task Team address bottlenecks

Started on 10 Dec 2014

The meet every Friday

And they meet with BUSA everysecond Friday to deal with

issues of cooperation

SA supplymust grow at 5%

to meet the NDP goals

Questions

Eskom wants tariff increases, but we have had 4xincreases already and we have less electricity;skills training; Medupi, Kusile, Ingula: when will

they be completed?

What abouthomeowner

IPPs?

Eskom's view is that its better tohave a higher tariff so that we don't

have load shedding!

Does the 67 cents per kWhinclude Medupi and Kusile?

The answer depends on a cost reflectivetariff for Eskom where people won't move

off the grid

Why is Eskom trainingpeople at Medupi?

China adds 1 GW of baseload perweek; why can't we do this?

ISMO