Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom

Overview of Multi-Year Price Determination
2013/14–2017/18 (MYPD 3)
Table 50: Movement in Capital expenditure from 65% to 100%
R' million
Corporate, Distribution & Transmission
Total new build
Nuclear
Solar and CSP
Wind
Gas
Coal
Generation - technical capital expenditure
Total capex
Page 117 of 144
The change in the capital expenditure profile is due to the additional build on wind and gas
of 400MWs and 2300MWs respectively.
Financing the amount of debt needed to fund such expansion, while still covering Eskom‟s
operating costs and depreciation, would require average price increases of 20% per year for
five years (MYPD3), followed by 11% in 2018/19 and 9% for a further four years (MYPD 4),
and thereafter 5% annual price increases. The projected price path for electricity is 102
c/kWh compared to the IRP 2010 price path that reached 110 c/kWh in real terms in
2030/31.
Further findings were as follows:
Eskom would have to raise approximately R1.1 trillion in debt between 2013/14 and
2030, with a maximum level of debt per year of R60 billion in 12/13 real terms.
IPPs would incur a projected total cost of close to R720 billion from 2013/14 to 2030.
The costs incurred during MYPD 3 are approximately R140 billion. Of this, about 80%
would be for the renewable energy IPP programme. IPP costs are offset by deductions
in Eskom‟s primary energy cost.
The findings are similar to that of the 65% due to the incremental change in the build
profile. Table 51 indicates the incremental impact on the financial position when Eskom
builds 100%.
MYPD3 2014~2018 MYPD4 2019~2023 MYPD5 2024~2028 2029~2031 Total IRP 2030
-
3,278
-
-
3,278
-
-
5
3,283
139
38,012
-
-
14,287
23,725
-
591
38,742
137
13,604
-
-
-
13,604
-
340
14,081
239
-
-
-
-
-
-
193
433
515
54,894
-
-
17,565
37,329
-
1,129
56,538