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Transmission Ten-Year Development Plan 2011-2020 - Eskom

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i<br />

Foreword by Divisional Executive<br />

A reliable supply of electricity is essential for South<br />

Africa’s economy to grow and generate the additional<br />

job opportunities that our people so desperately<br />

need. A reliable <strong>Transmission</strong> network of adequate<br />

capacity to meet the country’s needs is a<br />

necessary condition for the provision of a reliable<br />

electricity supply to South Africa, and to support<br />

the Government’s initiatives to create jobs. The<br />

<strong>Transmission</strong> network does not only require regular<br />

preventative maintenance and timeous repair of<br />

faults to remain reliable, but it must be developed and<br />

extended as well to meet the increasing demands made<br />

upon it; or alternatively connect new loads and power<br />

stations should be connected to the network.<br />

The National Energy Regulator of South Africa<br />

(NERSA) has published, in the Grid Code; the rules<br />

governing investment in the <strong>Transmission</strong> network.<br />

<strong>Eskom</strong>, as the licensed <strong>Transmission</strong> Network Service<br />

Provider plans the network according to this Code<br />

and, subject to funding and other resource constraints,<br />

builds the network according to these plans. Where<br />

sufficient funds are not available to develop the network,<br />

a consistent set of rules is applied to prioritise projects<br />

and allocate funding in such a way that the maximum<br />

benefit is gained for South Africa.<br />

The <strong>Transmission</strong> <strong>Development</strong> <strong>Plan</strong> for the period<br />

<strong>2011</strong> to <strong>2020</strong> is the third such plan that is being<br />

published in the public domain. It follows on the second<br />

such plan published in 2010. The major focus of the<br />

plans continues to ensure that the new power stations<br />

<strong>Transmission</strong> <strong>Ten</strong>-<strong>Year</strong> <strong>Plan</strong> <strong>2011</strong>-<strong>2020</strong><br />

are integrated into the national power system and that<br />

there is minimum infrastructure to meet prescribed<br />

reliability criteria. Funding constraints mean that the<br />

time it will take to meet the full requirements of the<br />

Grid Code could be as late as <strong>2020</strong> .<br />

We estimate that, in nominal terms, an investment of<br />

R166 billion is required to the end of the financial year<br />

<strong>2020</strong>. This is a significant investment on its own if one<br />

compares it to what is needed for transport and water<br />

projects. These investments already consider constraints<br />

in funding and resource availability as they have ideally<br />

been accelerated. These investments will result in the<br />

reliability standards only being completely met in the<br />

period 2015 to <strong>2020</strong>.<br />

It is clear that electricity is the lifeblood of South Africa’s<br />

economy and hence there is a need for the country to<br />

understand what is required to ensure a reliable and<br />

secure supply and what investment levels are required<br />

to achieve it. We hope that this document will assist in<br />

this dialogue, and we welcome comments and queries<br />

on the content and format.<br />

We would also like to take this opportunity to thank<br />

the team that has worked and continues to work on<br />

the development of these plans. It is a difficult and<br />

complex process which requires extensive consultation<br />

and multiple iterations.<br />

Kind regards<br />

Mongezi Ntsokolo

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