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Generation Engineering division |

Mandate
Provides assurance of engineering integrity and integration across the line divisions by applying engineering governance standards, supported by an engineering framework that drives Eskom’s asset intensive business.
| Highlights | Future priorities |
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Material issues |
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Over the past year significant work was done to redefine and redesign Eskom’s engineering governance structure, develop the engineering framework and processes across the whole plant life cycle. Generation Engineering together with the engineering departments from Transmission and Distribution have analysed the gap between Eskom’s current performance and its aspiration to rank among the top five utilities worldwide. An operational excellence programme has been formulated to review and fix Eskom’s technical operations’ transformation programme, including fixing the context within which all engineering work happens in Eskom – from processes and standards through to the framework, tools and governance structures. This is aligned to the Back2Basics programme whereby policies, procedures and systems will be standardised, simplified and optimised across Eskom. In October 2010 Eskom approved a set of aspirations for the next six years for the Primary Energy, Generation, Transmission and Distribution divisions. Key operational performance indicators:
Additional key performance indicators (KPIs), such as cost and investments, robustness and efficiency, safety and environmental performance, will also be closely monitored through the operational excellence programme. |
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The Generation engineering design infrastructure project was launched in late 2008 and builds on previous investments in technology to optimise configurations and alignments for Eskom’s capacity expansion needs. The project is partnering with the Kusile project team to create an Eskom coal technology reference plant in collaboration with an implementation partner. In the process, fully intelligent piping and instrumentation diagrams will be created, as well as a full 3D plant model and a boiler internal 3D model. This information will also be usable at Medupi power station, which has similar boilers and turbines. |
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Eskom has identified internal energy efficiency as a strategic priority. Improving the energy efficiency of existing power stations is a cost-effective and fast way to improve the reserve margin and reduce national CO2 emissions. In this way Eskom will take a leading position in the nation’s drive to save electricity, and complement the demand-side management programme of its major industrial customers. Eskom’s planned energy efficiency measures will have a substantial impact on production capacity and coal consumption and is expected to be cashflow positive. The programme is estimated to yield a minimum of 150MW of increased capacity and 400 kilotons per annum in reduced coal consumption across the coal-fired fleet – a substantial financial benefit as well. The reduced coal consumption translates into 1.5 million tons reduced CO2 emissions per annum – a significant contribution to South Africa’s drive to reduce its overall carbon footprint. The Majuba power station energy efficiency pilot site, in its first four months of implementation, has already yielded positive results. A multifunctional team consisting of Eskom and international experts, has implemented several improvement measures, to increase Majuba’s output during peak demand by an estimated 26MW and improved its heat rate (coal energy consumed per electric energy produced) by an estimated 1% which translates to approximately 40 kilotons in reduced coal consumption per year. These improvements are being independently verified by Eskom’s measurement and verification department. The full energy efficiency programme will be rolled out across Eskom’s fleet to realise the total anticipated benefit. Several improvements will be captured in the short term before the winter of 2011 in order to alleviate anticipated supply constraints. The programme will be rolled out to all coal-fired stations in four waves during 2011 and 2012. The benefits from these initiatives will be realised during 2015. Ramp-up of energy efficiency improvements
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