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Business and sustainability performance review  
EXECUTING THE BUILD PROGRAMME  
 
Integrated strategic electricity planning | Investment portfolio | Build programme highlights and lowlights  
 
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Build programme highlights and lowlights    
   
  The sod turning for the new Medupi power station in Lephalale on 14 August 2007
  The sod turning for the new Medupi power station in Lephalale on 14 August 2007.
   
   
 

The Eskom build programme is on track to deliver the projects as planned. Since the programme started in 2005, an additional 2 582MW has been commissioned.

The formal opening of both Ankerlig and Gourikwa power stations took place in October 2007 at Ankerlig. In May 2007, Nersa granted Eskom the licence to build the first new coal-fired power station in more than 20 years – Medupi power station in Lephalale, Limpopo Province. An official sod turning took place on 14 August 2007. In October 2007, Hitachi Power Africa was awarded the R20 billion boiler contract and Alstom S&E the R13 billion turbine contracts. More than 50% of the combined value of the contracts will be procured locally. Terracing work was started in May 2007. An independent assessment of the degree to which the Medupi power station and the associated environmental and social assessment and management approaches comply with the Equator Principles was undertaken.

In December 2007, Eskom awarded contracts worth about R31,5 billion for its “Bravo Project”, a coal-fired power station to be built at Emalahleni in Mpumalanga by 2017. Hitachi Power Africa was awarded the R18,5 billion boiler contract and Alstom S&E the R13 billion turbine contract. Terracing work started in April 2008.

The return to service of the three mothballed coal-fired power stations – Camden, Komati and Grootvlei – has progressed well. The original planned target date of end October 2011 for commercial operation of all 23 units (3 800MW installed capacity) will be achieved.

Work is also progressing well on Ingula, a pumped-storage scheme near Ladysmith, KwaZulu-Natal, with an installed capacity of 1 352MW. The station is planned to be fully operational by the end of 2013.

The Apollo substation refurbishment is on track for completion by June 2008 and will increase the availability and maintainability of the Cahora Bassa-Apollo HVDC interconnection.

A team of more than 2 500 engineering, project management and commercial resources, supplemented by 19 local and foreign engineering and project management companies who are contracted as partners over the next five to 10 years, is actively involved in the execution of the build programme.

The capital expenditure (capex) incurred from 2005 to date on these projects is:

         
  2005/6 
Rm 
2007 
Rm 
2008 
Rm 
Cumulative 
Rm 
Actual capex 4 820  8 226  13 311  26 357 

  Click here for a summary of all current projects under construction.

  Click here for details of the HVDC (high-voltage, direct current) research programme.

 
 
Building a coal-fired power station

The building of a coal-fired power station is a lengthy and complicated process, involving a large number of factors influencing the final decision. The construction alone could take eight to 10 years.

1. Site selection

When it comes to deciding where to build a power station, the following factors (among others) are taken into account: availability and accessibility of coal and water, the ease with which the new station can be integrated into the national transmission network; environmental impacts of both the power station and the transmission lines; local area impacts, that is, the social and natural environmental impacts; and capital and operating costs.

2. Awarding of contracts

The civil works, boiler, turbine, auxiliary plants, electrical and control and instrumentation contracts form part of the main contracts in terms of which the larger construction work is performed. Many smaller companies are involved as subcontractors.

3. Site establishment

This phase deals with the provision of infrastructure for the main contractors to start work. Water and electrical supplies need to be installed, land levelled, roads built and construction offices established. The terrain needs to be fenced off.

4. Construction

Construction starts with the setting out and digging of foundations. Although a number of areas are under construction at the same time, the main areas are the foundations of the boiler house, turbine hall, cooling towers and chimneys. From site establishment and civil construction to the point where the first boiler and turbine could be commissioned takes approximately four years. The units are commissioned between nine and 12 months apart.

5. Commissioning

Auxiliary plant systems need to be commissioned first to provide the logistical support for boiler and turbine operation. These include water treatment, coal supply and ash handling, electrical supplies and the transmission network.

Safety checks and testing are done before any plant is commissioned. Plant areas commissioned are taken over by Eskom, although the contractor remains responsible for defects.

 
 
   
 
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