Media presentation Tshediso Matona
Chief Executive
15 January 2015
Introduction
On December 9 we said the following…
• We apologised to the nation for the inconvenience of the past few weeks due to load shedding.
• We communicated that for an extended period the power system is extremely constrained and vulnerable.
• With the system being tight, any abnormal event pushes us into load shedding
• With the reserve margin being low, we do not have enough capacity to meet demand, necessitating planned, controlled and rotational load shedding, to protect the power system from a total country-wide blackout
• We also said that over the last few months we have seen a significant increase in unplanned maintenance/breakdowns on our plant (between 5000MW to 9000 MW) that has had a compounding negative effect on power system reliability
2
20 00022 00024 00026 00028 00030 00032 00034 00036 00038 000
23:0002:0005:0008:0011:0014:0017:0020:0023:0002:00
MW Summer & Winter load profiles
Typical Winter Day
- Typical Summer Day
In summer, the system is tight all day up to 10pm, due to the flat “Table Mountain” profile
Introduction
• We were able to avoid load shedding during the Festive Season
• As many businesses and industries reopened last week after the festive season, electricity demand increased. That coupled with the unavailability of some of our generating units meant that we had to go into load shedding on 9th January for the first time this year.
• The power system remains vulnerable, meaning that any extra load or faults in the system may necessitate load shedding.
• New generating capacity and other levers are needed in order to ease the pressure on the system.
• This summer has seen increased use of open cycle gas turbines (OCGTs) and other reserves to balance supply and demand. However there are constrains to the increased use.
• Summer is maintenance season at Eskom. We do planned maintenance in summer, when demand is lower, so that maximum capacity is available in winter. Maintenance season is usually from September to around mid-May, but some maintenance is done during winter
• On the financial side, the liquidity situation is under pressure not just because of the diesel, but also lower sales, building new capacity and the lack of cost-reflective tariffs
2015/01/15 3
Executive summary (1/2)
• Eskom has an elaborate maintenance regime that should maintain the health of our generation fleet ‒ Eskom has a codified maintenance philosophy in place ‒ This philosophy is translated into a detailed plant specific plan (down to turbine, auxiliary
etc.) ‒ The required resources are matched with the plan ‒ This results into a maintenance schedule that is asking for 2000MW of diesel capacity and
an additional 3000MW more capacity than we have
• Our philosophy of keeping the lights on at all costs superseded the maintenance philosophy and has put us into a very difficult position ‒ Keeping the lights on program has avoided load shedding in the last 7 years against all the
odds managing an extremely low operating margin ‒ There is a severe maintenance backlog ‒ Increasingly leading to unplanned outages (load losses) ‒ Which accelerates the problem of not being able to recover on the maintenance backlog ‒ Some of our running plants have partial load losses, because parts are worn out, and we do
not have an time window to replace/ fix ‒ There is a further risk of enduring load losses on the remaining units ‒ Keep the lights on philosophy has created a culture where proactive maintenance is less
important
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Executive summary (2/2)
• We have arrived at a point that does not allow us to ignore the health of our plants. Our reserve margin is so thin, that every incident creates a major systems issue and could also have safety implications for the plant. The massive usage of diesel helps to bridge the problem somewhat, but can’t help the systemic healing and a shortage of capacity for the coming 3 years appears to be unavoidable
• Eskom is preparing to minimise the effects of load-shedding ‒ Generation will focus on improving 5 KPIs (PCLF, Post Outage liability, UCLF, Slips and Trips) ‒ We will a create a mechanism to transfer the capabilities of our best in class operators (Koeberg
and Matimba) across the rest of the fleet ‒ We will use Koeberg and Matimba as a blueprint to develop the required skills at a station level ‒ We will bring our suppliers on board to deliver the required maintenance at the best possible quality ‒ We will create transparency on what additional spend on diesel will do to the country ‒ We will create a load-shedding schedule that supports our people and economy to the best of our
ability ‒ We will prepare our customers and our interfaces to deal with load shedding ‒ We will continue to keep the public informed on the progress of our new build program and the
implication on our system load ‒ We will continue to pull all possible demand side levers in collaboration with our customers and
government ‒ We will develop a health recovery plan and share progress as we go ‒ We will develop together with NERSA and government a diesel burn policy
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Eskom has a codified maintenance philosophy in place
Typical Mean Time Between Outages (Main focus of scope)
IR - 18 to 36 months (Boiler work)
MGO - 6 years (LP turbines because they can’t make 9 – 12 years)
GO’s - 9 to 12 years depending on the station (4 cylinders of the turbines)
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Inspection General Overhaul
Inspection Mini-General Overhaul
General Overhaul
Inspection
GO IR MGO IR GO IR
Example – Turbine
A plant specific plan exists
Category B outage
Category C outage
Outage cancelled
Outage as originally planned
Secondary start date
Small outage- to be dealt with frontline maintenance staff
Category A outage
Breakdowns
Scope of work not finalised
Scope of work received and finalised
On the LHS – plan and quality plan complete
On the RHS – plans submitted to outage manager
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Resource requirements and availability are matched
8
Maintenance backlog has led to increased breakdowns
3.68
4.63 4.345.13
4.385.10
6.14
7.97
12.1212.61
14.85
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013 F2014 (Dec14)F2015
UCLF
%
• Load shedding in 2008
• Deferral of maintenance
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• The past practice of postponing outages become unsustainable
• Additional capacity of 3000 MW on top of 2000 MW of diesel required
The unexpected outages at Majuba, Duvha and the diesel situation creates an unfavorable capacity outlook
DB04 RTS 19/02
AL41 RTS 18/02
GV06 RTS 17/02
HD10 GO for 82 days 13/02 Category C
KR04 RTS 16/02
AL32 RTS 11/02
AL32 Minor Inspection for 6.75 days 04/02 Category A
AL31 RTS 04/02
KB01 Refuel 121 for 98 days 09/02 Category A
AL41 Minor Inspection for 6.75 days 11/02 Category A
AL42 Minor Inspection for 6.75 days 18/02 Category A
AL43 Minor Inspection for 6.75 days 25/02 Category A
AL42 RTS 25/02
LT04 RTS 05/02
LT01 GO for 100 days 13/02 Category A
HD2 IN for 14 days 20/02 Category C
HD01RTS 14/02
KM01RTS 10/02
HD08 IR for 37 days 01/02 Category C
MJ04 RTS 17/02
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Tech Gov Outage
Inflexible Outage
Flexible Outage
RTS units
We are likely to load shed on most days in the near future
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Jan-15 Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Feb-15 Sun Mon Tue Wed Thu Fri Sat
5 6 7 8 9 10 11 12 13 14
15 16 17 18 19 20 21 22 23 24 25 26 27 28
1 2 3 4
Mar-15 Sun Mon Tue Wed Thu Fri Sat
Apr-15 Sun Mon Tue Wed Thu Fri Sat
5 6 7 8 9 10 11 12 13 14
15 16 17 18 19 20 21 22 23 24 25 26 27 28
1 2 3 4
29 30 31
2 3 4 5 6 7 8 9 10 11
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
1
Adequate generation capacity available to meet demand and reserves Constrained generation capacity with sufficient supply to meet demand and reserves. Medium probability of load shedding Insufficient generation capacity unable to meet demand and reserves. High probability of load shedding
• Required reserve margin is directly linked to the system reliability you are trying to achieve for your system, and the various risks implicit in your system
• NERSA have recommended a 19% NRM and Eskom’s internal requirements are between 15 and 18% NRM. There have been no expectation set for Expected Energy Not Served (EENS) and Loss of Load Probability (LOLP)
Loss of Load Probability (LOLP) Curve
0
24
48
72
96
120
144
168
192
8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% Reserve Margin
Loss
of L
oad
Hou
rs (L
OLH
)
48 hours in 1 Year Standard @ ~12.5%
24 hours in 1 Year Standard @ ~ 14.3%
US Standard (24 hours in 10 Years) @ ~ 19%
Eskom at times has managed a reserve margin of less than 8%
12
Eskom has kept the lights on over the last 7-years by managing an extremely small reserve margin
Keeping the lights on has created a backlog of maintenance
Backlog of outages
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Which accelerates the problem of not being able to recover on our maintenance backlog
Unit Load Loss description Action Plan
Expected Gain (MW)
Outage Duration
Outage Readiness Expected Completion date
KR1 HP Heaters not available
3 way valve repair 25 4 Awaiting opportunity (Jan 2015)
HD 5 Back end temps high
Do a smoke test to detect all casing leaks
30 5 Awaiting opportunity (Jan 2015)
HD 9 Stator coolant temps high
Replace change over valves
25 3.3 Awaiting opportunity (Jan 2015)
KM 7 Primary Air Fan Drive End Bearing running hot
Quick close the air damper
45 2 Awaiting opportunity (Jan 2015)
KM 3 RH FD Fan faulty Repair the fan 18 3 Awaiting opportunity (Feb 2015)
TOTAL 143
Deferred maintance causes partial load losses
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Some of our running plants have partial load losses because parts have worn out and there is no time to repair
Station PLL as at 01/04/14
PLL as at 05/01/15
Monthly Target Liberation Total
Jan Feb Mar AN 220 216 0 96 0 96 CM 53 70 0 0 5 5 DV 890 360 90 100 40 230 GV 120 80 50 0 0 50 HN 132 105 55 30 0 85 KD 90 260 60 0 100 160 KM 130 86 68 18 0 86 KR 490 190 145 0 0 145 LT 170 96 68 0 0 68 MJ 574 160 0 0 100 100 ML 100 0 0 0 0 0 TT 20 0 0 0 0 0
TotaL MW 2989 1623 536 244 245 1025
Plan 1087 843 598 598
Remain mw
Summary of partial load loss plan (Jan 15 – Mar 15)
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Unit MW Latest Philosophy Outage Last Opportunity Reason Duration Date reported Risk Rating
HD 8 190 MGO - May 2013 (52d) MGO – July 2013 BTL (Boiler Tube Leak) 6hrs 22-Dec 1
KR 3 475 LPT 1 & 2 inspections Sept 2012 (61d)
Refurbishment outage completed in March 2014(222d)
EFP A booster pump impulse line leak, Unit transformer installed, Clinker removal and Precips repairs 4days 08-Jan 1
ML4 575 HP Piping and LP Blade Inspection Nov 2013
Generator H2 seal inspection and repairs. Mar 2014(21d)
BTL 3 days 08-Jan 1
AN2 380 IR Apr 2013 (85d) GO in execution till Sept 2014 (90) Bearing temps high, trip risk 3 days 08-Jan 1
DV5 575 GO Dec 2013 (159.39) Completed outage – Dec 2013 Running BTL 3 days 08-Jan 1
HD 6 190 IR- Oct 2013(25d) IR- Oct 2013 Turbine condenser HP cleaning and H2 leak repairs 6.3 days 20-Oct 2
MT 4 615 B.4 I.R Oct 2010 (34d) GO completed in Apr 2014
Steam feed pump turbine and Turbine air ingress, acid clean stubs, Circ pump reg valve 3 days 09-Jan 2
MJ 6 669 IR – Sept 2013(64d) IR – Sept 2013 Replace Non-Return Valve on both Condensate Extraction Pumps 3 days 09-Jan 2
KD 5 640 GO Mar 2010 (64d) I.R Feb 2014 Generator Hydrogen leak worsening , cooler to be replaced. Primary Air leakges repairs. SSC (Submersible Scraper Conveyor) 7days 10-Nov 2
KM 7 114 MGO – Aug 2013 (80d) Midterm Outage Aug 2013(80d) C PA fan quick close damper repairs & rec-commissioning 2days 08-Jan 2
KD0 3 640 IR Jan 2011 (55d) IR Jan 2011 (Extended duration due to Turbine)
Bearing temps high, trip risk 3 days 09-Jan 2
KD 6 640 GO Mar 2012 (86d) GO Mar 2012 Left-Hand Induced fan balancing, Gen H2 Cooler & Air heater 3 days 09-Jan 3
ML 1 575 MGO May 2013 (109d) MGO Aug 2013(109d) U1 and U2 T1 & T2 CW valves actuators faulty. South side risk of trip 3days 27-Oct 3
LT 1 593 IR Nov 2010 (57d) IR Jan 2011 (57d) . Gen rotor swop for (21d) in June 2014
Boiler dipper plate fell into SSC( Shut down risk). Steam leak on hot reheat manifold vent line. Boiler Feed Pump Turbine on ptw to repair mechanical
seals. 1 day 19-Dec 5
Total 6871 `
Further potential Risk of UCLF Increase on remaining units
As of 9 Jan 2015
Keeping the lights on has also created a culture which de-emphasises maintenance
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Eskom is committed to minimising the effects of necessary load shedding
• We have arrived at a point that does not allow us to ignore the health of our plants. Our reserve margin is so thin, that every incident creates a major systems issue and could also have safety implications for the plant. The massive usage of diesel helps to bridge the problem somewhat, but can’t help the systemic healing and a shortage of capacity for the coming 3 years appears to be unavoidable
• Eskom is preparing to minimise the effects of load-shedding ‒ Generation will focus on improving 5 KPIs (PCLF, Post Outage liability, UCLF, Slips and Trips) ‒ We will a create a mechanism to transfer the capabilities of our best in class operators (Koeberg
and Matimba) across the rest of the fleet ‒ We will use Koeberg and Matimba as a blueprint to develop the required skills at a station level ‒ We will bring our suppliers on board to deliver the required maintenance at the best possible quality ‒ We will create transparency on what additional spend on diesel will do to the country ‒ We will create a load-shedding schedule that supports our people and economy to the best of our
ability ‒ We will prepare our customers and our interfaces to deal with load shedding ‒ We will continue to keep the public informed on the progress of our new build program and the
implication on our system load ‒ We will continue to pull all possible demand side levers in collaboration with our customers and
government ‒ We will develop a health recovery plan and share progress as we go ‒ We will develop together with NERSA and government a diesel burn policy
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0 290 1 351.0 1 043
1 770 453 315 535 261 120 0
6 137
17 384
659 237 430 480 418 600 443 631.3 787 811 162
5 659 9 756
5 280 1 090 1 000 1 355 1 375 1 630 5 940 2 525
3 580 3 790 90 0
27 655 42 470
2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Total Target
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Capacity expansion programme overview
Km lines Transmission
MVAs Substations
MW of capacity Megawatts
To date, the construction work that has been completed has added ~ 6 137MW of capacity, ~ 5 659km of transmission network and ~ 27 655 of MVAs
1. Refers to the target of the total capacity expansion programme
1
Build-Programme Dates
Medupi Power Station Project (6 x 794MW) ▪ 1st Unit (Unit 6) Synchronization Date – 1st half 2015 ▪ 1st Unit Commercial Operations Date – June 2015
Kusile Power Station Project (6 x 800MW) ▪ 1st Unit (Unit 1) Synchronization Date – 1st Half 2017 ▪ 1st Unit Commercial Operations Date – 2nd Half 2017
Ingula Pumped Storage Scheme Project (4 x 333MW) ▪ 1st Unit (Unit 3) Synchronization Date – 1st Half 2016 ▪ 1st Unit Commercial Operations Date – 1st Half 2016
Project Sere (100MW) ▪ Full Commercial Operations Date – 1st Half 2015
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First unit – Medupi Unit 6 progress
Source: Eskom
1. Statutory hydro 15/05
2. Boiler chemical cleaning
21/08
3. Turbine on barring
30/08
4. Draught group test
run 10/10
5. First Oil Fire 17/10 First Coal Fire 27/11
6. Boiler blow
through 31/12
7. Steam to Set (Turn on Steam)
8. 1st Sync
Text
Complete Current milestone in progress Target
Significant milestones have been reached towards synchronisation of Unit 6 Erratic power will flow to grid before full power is achieved during the first half of 2015
While the progress towards synchronisation is proceeding very well Eskom has previously indicated that the first unit would be synchronised later than 24 December 2014 This is to ensure that all systems are fully tested, safety-cleared and ready for con- tinuous operation, and that no additional risks impact the good progress made to date.
20
Our build programme compares well with global build programmes…
South Africa
Medupi Eskom Lephalale 6 800 4800 HC 570/590
Feb 07
2015 3
21
Conclusion
• The power system will be severely constrained and will begin to ease once new generating capacity comes online and other levers materialise
• The system will remain tight in Summer. Risks of extreme weather related outages such as wet coal, unplanned outage extensions and unavailability of primary energy may worsen the situation
• The country needs to be prepared for load shedding.
• Load shedding is a painful yet necessary decision to protect the electricity power system from a total black-out. A total black-out would have significant consequences on the South African economy
• It remains important for all customers to maintain or achieve 10% electricity savings especially in the commercial, industrial and residential sectors.
• We are committed to provide early warning, however at times the system status changes rapidly. Please follow us on twitter @Eskom_SA and @Eskom_MediaDesk for updates.
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Communication on the power system • Eskom communicates via the national, regional and local media including social media
regarding its intention to load shed and during the process.
• Load shedding information and schedules are available on Eskom’s website for Eskom customers
• National and regional spokesmen continue to spread the message and share additional information to provide information and clarity
• Stakeholders and direct customers are informed predominantly via social media and text messages and are able to communicate via Eskom’s customer contact centre
• The Power Alert on SABC and DSTV channels continue to provide real-time information on the power system status and encourages customers to switch off. An average of 350MW reduction in demand is observed during this flighting
• Eskom issues a system power bulleting twice a week, and holds a Quarterly system status media briefing to provide regular updates
• Face to face stakeholder engagements provide an opportunity for further dialogue on the status
Electricity users are encouraged to follow Eskom on twitter and Facebook and to
download the free Eskom App ‘Myeskom’ from android and Apple stores. The App is in process of being updated to provide load shedding information
We will collaborate with our customers to reduce demand- “Less is more − Live Lightly!”
Saving electricity reduces pressure on the grid, cuts your electricity bill and reduces South Africa’s carbon emissions
The power system remains vulnerable all day during summer
1. Use air conditioning efficiently
o Set air conditioning to 23ºC
o Close windows and doors to optimise air conditioning
o Switch off 30 minutes before leaving the office
2. Switch off all geysers and pool pumps (all day until 9pm), and invest in a timer
3. If you use the pool frequently, limit pool filtering cycles to two cycles daily, and not between 5pm & 9pm
4. Switch off all non-essential lighting
5. Respond to Power Alert messages by switching off all appliances that are not being used
“Live Lightly”
“Know your number”
24
Setting the context
Review of the last quarter of 2014
Outlook for 2015
New Build Update
Conclusion
25
Navigation Guide of
Load Shedding Website
27
Accessing Eskom’s Website 1. Log onto:
http://www.eskom.co.za
2. You will land on the Eskom
homepage
3. This is what you will see
4. Click here if you are an
Eskom Supplied Customer
5. Click here if you are an
Municipal Supplied
Customer.
28
Eskom Load Shedding Website Look and Feel 1. You will land on the Load
Shedding page http://loadshedding.eskom.co.za/
2. This is what you will see
3. You will be informed here
whether Load shedding has
been implemented. If Load Shedding has been implemented, the Stage of Load Shedding is indicated.
4. You can also access the
Municipal Schedules that has
been provided to Eskom by
the Municipalities here.
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Eskom Load Shedding Website How to navigate 1. The menu bar can be used to
navigate and find out: • What is Load Shedding
• How to interpret the Schedule
• The latest information
• Answers to Frequently asked
Questions
2. This is the search
functionality where as a
Customer you will be able to
search for you suburb and
view the schedule.
3. This is the advanced Search
Functionality – allows the
user to search by province
and Municipality.
30
Eskom Supplied (Direct) Customers Searching for your Schedule Quick Search Functionality 1. Enter your suburb here
2. A list of matching areas will become
available.
3. Select the appropriate Area
4. A Schedule will reflect
5. Now select the Stage (1,2 or 3)
6. Your correct schedule will now
reflect.
Advanced Search Functionality 1. Select your Province
2. Select the Municipality that you are
serviced by
3. Select your suburb
4. A Schedule will reflect
5. Now select the Stage (1,2 or 3)
6. Your correct schedule will now
reflect.
Example: Midland Schedule – Stage 1
31
Eskom Supplied (Direct) Customers Select your Schedule Stage Selecting the correct stage 1. Once your schedule appears it will
be defaulted to Stage 1
2. Scroll up until you see the menu
below.
3. Select the appropriate Stage (for
this exercise we have selected
Stage 2)
4. The schedule should have changed
accordingly.
Example: Midland Schedule – Stage 1 (default)
Example: Midland Schedule – Stage 2 Selected
32
Municipal Supplied (Direct) Customers Searching for your Schedule Quick Search Functionality 1. Enter your suburb here
2. If you are not an Eskom Customer,
the following message will pop-up.
3. You can now either navigate to the
Municipal Schedule using this link,
or
4. You can log into the appropriate
Municipal Website
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Municipal Schedules Link
1. If you select this link on the Eskom
website http://www.eskom.co.za or
the Eskom Load Shedding Website
http://loadshedding.eskom.co.za/
you will be directed to the following
link
http://www.eskom.co.za/Pages/load
sheddingmunic.aspx where you will
be able to view the Municipal
Schedules provided to Eskom by
the Municipalities.
2. Select the Municipality that Services
you
3. You will now be redirected to the
appropriate Municipal Site or a
download of the schedule will be
available.
34
Example: Ekurhuleni Munic 1. Select the Municipality that Services
you
2. You will now be redirected to the
appropriate Municipal Site or a
download of the schedule will be
available.
3. Example: Ekurhuleni Munic
4. You will be redirected to the
Municipality’s Website
http://www.ekurhuleni.gov.za/yourse
rvices/energy/power-cuts/load-
shedding-schedules .
5. Navigate down the page and select
the Area you need.
6. The schedules are available to
download in PDF format.
35
1. Once you have selected you Area and downloaded your schedule, this is an example of what you will
see (Area selected Alberton)
Example: Ekurhuleni Munic
36
Tips & Hints
• Quick Search - identify your Area or the Area closest are to you (Correct
spelling)
• Select the stage once the initial schedule appears
• Print or save to your Laptop / smart phone / desktop
• This schedule is applicable for a month - now request the schedules for
the remaining stages and do as above, as Stages may change.
For any queries and assistance on Load shedding, visit the Eskom Load
shedding Website http://loadshedding.eskom.co.za/ or call our Contact
Centers at 0860037566
Thank you