Volume II - The Northern Cape Provincial Spatial Development ...

Northern Cape PSDF
Volume 2
Office of the Premier &
Department of Rural Development & Land Reform
129
December 2011
Eskom generates approximately 95% of the electricity used in South Africa and approximately 45%
of the electricity used elsewhere in Africa. Eskom, as a state‐owned enterprise, has a greater role
to play than merely the supply of electricity. Eskom generates, transmits and distributes electricity
to industrial, mining, commercial, agricultural and residential customers and redistributors
(Northern Cape Business, 2011). Eskom with a generating capacity of 35 200 MW from 20 power
stations is one of the largest utilities in the world. Power generation is primarily coal‐fired, but
also includes a nuclear power station at Koeberg in the Western Cape, two gas turbine facilities,
two conventional hydroelectric plants and two hydroelectric pumped‐storage stations (LED
Strategy).
Electricity cannot be stored in large quantities and generally must be used as it is generated.
Therefore, electricity is generated in accordance with supply‐demand requirements. The demand
for electricity in South Africa has been growing at approximately 3% per annum. This growing
demand, fueled by increasing economic growth and social development within Southern Africa, is
placing increasing pressure on South Africa’s existing power generation capacity. Coupled with
this, is the growing awareness of environmental impact, climate change and the need for
sustainable development.
Eskom’s only current power station in the Northern Cape includes one of two conventional hydro‐
stations on the Orange River, the Vanderkloof power station. The Vanderkloof power station is
located at Petrusville and has 240 MW installed capacity comprising two 120 MW units. In order
to reinforce the existing transmission network and to ensure a reliable electricity supply in the
Northern Cape, Eskom is currently proposing the construction of a 400 kV transmission power line
from Ferrum Substation (near Kathu/Sishen) to Garona Substation (near Groblershoop). The total
length of the power line is approximately 155 km. According to the LED Strategy, the Sol Plaaitjie
and //Khara Hais local municipalities had the highest electricity usage in 2005, and it is evident
that the urban areas have higher access to electricity in comparison to rural areas in the province.
There is currently a national electricity supply shortage and the country is now in a position where
it needs to commission additional plants urgently. As a result, renewable energy projects are
considered to be high priority (LED Strategy).
Low‐income households rely on wood, coal and paraffin as energy sources. These energy sources
contribute to high levels of indoor pollution. Of serious concern are particulates, carbon
monoxide, respiratory illness, and fires. Quantified impacts of the external cost of household fuels
reveal that greater damages are from candles, paraffin and the use of wood as fuel.
A key challenge which the Northern Cape Provincial and Local government must overcome is
securing access to reliable, sustainable and affordable energy services to realize sustainable
economic growth and development. Innovation and new energy technologies are therefore
essential to make progress on these issues, as they also create jobs and income and therefore
alleviate poverty. The goals of securing supply, providing energy services, tackling climate change,
avoiding air pollution and reaching sustainable development in the province offer both
opportunities and synergies which require joint planning between local and provincial government
as well as the private sector (PGDS).
The PGDS states that renewable energy is an initiative to diversify the economy and thereby
promote the green economy in the province. It is therefore vital to conceptualise the term green
economy so as to fully understand the economic parameters in which renewable energy exists.
Greening the economy is characterized by substantially increased investments in economic sectors
Dennis Moss Partnership