Research Expenditure Breakdown

An expenditure of R156 million was invested in research in the 2007/8 financial year. This is allocated as part of the research process into various themes and then further broken down into projects and research activities. This breakdown per theme is shown graphically below;

Graphical representation of the research budget per theme

Return on investment

For every research activity a theoretical potential return on investment is calculated based on the savings or value-added that could be realised should the research recommendations be implemented. For the reports released in the 2008 financial year, the return on investment ratio was 5,2:1. This compares favourably with the previous year’s figure of 4,1:1.

International partnerships

To further leverage the research expenditure Eskom is active in several research memberships and partnerships, detailed below. The total research membership spend for the 2008 financial year amounted to R15,9 million.

• EPRI – Electric Power Research institute
• Doble Engineering
• IEA – International Energy Association
• IEA – Solar Paces
• CIGRE
• CERA (USA) – Cambridge Energy Research Associates
• VGB Powertech (Germany)
• CEA Technologies
• IHA – International Hydro Power Association
• TWI – The Welding Institute research arm (materials)
• CRIEPI (Japan) – Central Research Institute of Electric Power Industry
• IERE – International Electric Research Exchange

Budget for the 2009 year

The research programme budget for 2009 has been set at R164 million. The capital plan for the construction of demonstration projects is R541 million the majority of which is to be invested in the concentrating solar plant and underground coal gasification projects.

Seven research strategic objectives have been defined:

• contribute solutions to enable Eskom to meet energy demand reduction targets
• supporting the build programme through the identification of new and more effective capacity-adding technologies
• contribute to improvement of continuity of electricity supply and technical performance
• reduce Eskom’s impact on climate change, and preparing Eskom for the effects of climate change
• building human capacity
• financial sustainability
• manage technical knowledge for Eskom

Emerging technologies

The research technology strategy is constantly being reviewed and updated. The following two diagrams (based on the Gartner hype cycle and emerging technologies matrix) indicate current thinking in this regard.

Since 1995, Gartner has used hype cycles to characterise the overenthusiasm or "hype" and subsequent disappointment that typically happens with the introduction of new technologies. Hype cycles also show how and when technologies move beyond the hype, offer practical benefits and become widely accepted. Hype cycles aim to separate the hype from the reality, and enable technologists to decide whether or not a particular technology is ready for adoption. The diagram below is the current thinking regarding technology hype within the power industry.

The priority matrix is a tool to prioritising emerging technologies by forcing technology planners to look beyond the hype and assess technology opportunities in terms of their relative impact on the enterprise. The priority matrix supplements the vertical visibility or "hype" axis of the hype cycle with a focus on the potential benefit of the technology, rated as transformational, high, moderate, or low. The diagram below is illustrative of Eskom’s thinking regarding emerging technologies in the power industry.

The pairing of each hype cycle with a priority matrix will help you better determine the importance and timing of potential investments based on benefit rather than hype.