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Eskom National Grid Company David Lipschitz 2010 by Mind Map: Eskom
National Grid Company
David Lipschitz 2010
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Eskom National Grid Company David Lipschitz 2010

Parliament Talk Include

Costs

how easy to split?

Resources

Eskom's 2009 Annual Report

FLOE's internal research

IEEE web site

NERSA - REFIT Guidelines, Note: key elements of FIT include, "remove barriers to grid connection", "developing an appropriate and streamlined administrative and application process", key principles include, guaranteed access to the National Grid, guaranteed purchase price for a fixed duration, a willing buyer, willing seller approach, spreading costs across all consumers

Current Situation

Advantages, A single operator / utility owns most of the supply chain, the missing bit is where municipalities provide electricity to consumers inside their locales, can theoretically reduce costs across the supply chain

Disadvantages, Carbon taxes are going to be internalised over the next 10 to 50 years, Monopolies usually try to reduce costs as much as possible whilst trying to maximise profits as much as possible, this might not be in the interest of their clients, it might not be in the interest of the environment, Eskom provides 95% of South Africa's electricity, Eskom is 100% owned by the SA Govt, Eskom is the only organisation that is allowed to buy energy from IPPs, Eskom is stalling projects, eg: CSP in Northern Cape, even though a company has shown it can produce energy at 90 cents per kwh, Preventing Power Purchase Agreements from being signed, Preventing RE projects from going ahead, why: because Eskom has to buy this energy, Eskom wants to maximise its profits and perceives RE as being more expensive

Split Situation

Advantages, remove conflict of interest inside Eskom, allow for retail wheeling, where customer and supplier are the same person, where customer and supplier are different people, Eskom becomes the largest (for now) IPP, "for now", Eskom's existing power stations will be decommissioned, Gives clear Guidelines and procedures, a separate operator will give guidelines for allowing grid connection agreements, Barriers to entry will be reduced, Power Purchase Agreements easy to get, allows for competition, SA Govt wants to achieve 10 TWh (10,000 GWh) of electricity by 2013, Current Sales = 214 TWh, implies .5% from RE, Private investors will invest

Disadvantages, possibly insecurity of supply, but if security includes climate change and the need for alternatives, then we have huge potential

How Eskom can achieve its goals?

Can Eskom achieve its goals?

Can Eskom meet its values?

Eskom Structure

Generating Division

Customer Network Business Head: Erica Johnson Secretary: Colleen Helper: Lina

Transmission Division

Distribution Division

System Operations & Planning, 6 Regional Control Centres, Balancing Demand and Supply, Dealing with Load Shedding

Contacts

Andrew Etzinger

Talk

FLOE

Introduction to FLOE and why we are at Parliament

Eskom's conflict of interest

Supplying what it perceives as lowest cost electricity

Owning the supply chain

Not wanting IPP's to compete with it

Capital Expenditure, Asset Values, Incomes, Costs are known per the divisions

Eskom has two main divisions

The Customer Network Business Division has a number of sub-divisions

One could therefore determine how the split could happen

Is there a precedent for the split?

Network Rail in the UK, Operates and maintains the railroad infrastruture, Virgin Rail, British Rail, etc run their trains on Network Rail

What is prevented by the current arrangement

The NERSA relationship

Responsibilities of each, NERSA as "the regulator"

Are there alternatives to the suggestion?

3 debates inside Eskom, Single Buyer, Split Wires Side from Trading Side, Consolidate at the Regional Level (REDs)

Are there strategic problems with the suggestion

Is it in the "national interest"

Is is viable?

What about security of supply?

Is RE a reasonable source of electricity for base load energy, ie is it always available?, 1) having RE reduces carbon emissions, 2) does it reduce the need for base load power stations?, 3) does it reduce the need for coal and other non-renewable resources?

Would Eskom be for or against the split?

Who collects the money

NERSA

Relationship with Eskom

Gives Eskom 2 licences, Generation, Distribution, etc