Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
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Overview of <strong>Multi</strong>-<strong>Year</strong> <strong>Price</strong> <strong>Determination</strong><br />
2013/14–2017/18 (MYPD 3)<br />
Table 10: Components of Generation primary energy cost (R million)<br />
Coal and coal handling<br />
Page 55 of 144<br />
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 MYPD 3<br />
Coal 35 376 37 010 41 966 47 282 52 351 57 703 236 312<br />
Water 1 532 2 082 2 414 2 615 2 750 2 955 12 816<br />
Start-up gas & oil 1 442 1 511 1 636 1 721 1 813 2 018 8 699<br />
Coal handling 1 041 1 087 1 163 1 246 1 356 1 510 6 362<br />
Water treatment 301 327 370 396 428 477 1 998<br />
Nuclear 368 471 471 678 767 856 3 242<br />
Open cycle gas turbines (OCGT) 2 642 3 592 3 258 1 788 1 898 2 056 12 592<br />
Fuel procurement 457 435 435 443 452 485 2 250<br />
Sorbent 10 56 139 251 456<br />
Road maintenance 321 53 53<br />
External electricity purchases 22 23 24 26 27 27 128<br />
Enviromental levy 8 105 8 842 9 037 9 324 9 490 9 746 46 439<br />
Displacement savings - 405 - 710 - 959 - 1 061 - 3 135<br />
Generation primary energy (Rm) 51 606 55 433 60 380 64 865 70 512 77 022 328 212<br />
The rand per ton cost of coal, excluding transport, which accounts for most of <strong>Eskom</strong>‟s<br />
primary energy costs, grows by a compound average of 10% over the MYPD 3 period. Coal<br />
costs vary depending on the contract type.<br />
Table 11: Cost of coal purchases<br />
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 MYPD 3<br />
TOTAL (Mt) 128 131 133 136 141 141 682<br />
Delivered (R/ton) 271 299 334 355 397 438 366<br />
Total Cost (Rm) 34 805 39 197 44 331 48 270 56 003 61 760 249 561<br />
The amount of coal <strong>Eskom</strong> needs, which determines the overall cost of coal, is affected by<br />
the burn rate (the volume of coal required to produce a unit of electricity). <strong>Eskom</strong>‟s overall<br />
burn rate has increased from 0.55 tons per MWh in MYPD 2 to 0.57 tons per MWh for<br />
MYPD 3. The burn rate is affected by power-station efficiency and coal quality.<br />
In addition, coal volume projections take into account the projected power from IPPs over<br />
the period and thus the reduced requirement for coal. <strong>Eskom</strong> has included all three rounds<br />
of the renewable energy IPP bid programme on the basis that it is pursuant to a<br />
determination made by the Minister of Energy. Should the programme not be implemented<br />
as planned, there may be a shortfall in capacity which will need to be made up with<br />
additional generation. In such event additional costs will be required for coal purchasers and<br />
will need to be addressed appropriately to mitigate this risk.