Eskom   Annual Report 2008
 
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Message from the Eskom Chairman – Valli Moosa

My experience as the chairman of the Eskom board for the past three years has given me comfort that the utility is well on the road to recovery. Significant progress has been made to address all the key challenges identified.

This is not an easy business environment for Eskom’s new management team. There are six key challenges that needed urgent attention – keeping the lights burning on the back of inadequate reserve margin; addressing artificially low tariffs; building new generation and transmission capacity to meet the rising demand for electricity; mobilising all South Africans to become more energy efficient; responding to climate change imperatives; and mobilising all three spheres of government.

Finally, it is my sincere wish that South Africa as a nation will also become an integral part of the solution to the challenges at hand and will work with Eskom. Let us all conserve our vital energy sources – the lifeblood of our economy. Together, let’s build the power base for sustainable growth and development.

 
 
 

Message from the Eskom Chief Executive – Jacob Maroga

Since taking office as chief executive on 1 May 2007, my team and I have dedicated a significant amount of leadership time reflecting on the challenges at hand and aligning all the resources of the organisation towards a solution.

This massive build programme has been designed such that it adequately responds to the challenge of electricity availability and reliability. It has also been aligned with government’s target of 6% GDP growth between 2010 and 2014.

For the next five years at least, the South African power system will remain vulnerable given the low reserve margin. Plans are in place, and implementation has been accelerated. We are confident that the activities we are undertaking today – as Eskom, the energy sector, government, and the country at large – will enhance Eskom’s ability to deliver into the future.

 
 
Performance

The Eskom research and innovation department (ERID) provides scientific and technical advice, research and consulting, analysis, detailed design as well as strategic technical planning services and direction.

The actual research expenditure was R156 million (2007: R203 million) while the expenditure on demonstration plants amounted to R93 million for the year, compared to R121 million in 2007.

Forward-looking commitments

By working closely with the operational units, ERID is able to understand the organisational challenges and to pro-actively respond to find both short- and long-term solutions.

Given the current Eskom challenges, it was agreed that for the coming year, resources would be focused on:
  • generation capacity, asset management and plant performance
  • transmission capacity, asset management and plant performance
  • distribution asset management and plant performance
  • demand-side management and energy efficiency
  • coal quality and coal combustion
  • renewable energy sources
  • climate change
  • safety, health, social and environment
  • accelerated development of the underground coal gasification project
  • clean coal technologies
  • HVDC (high voltage direct current lines)
PBMR Project Status

Pebble Bed Modular Reactor (Pty) Ltd (PBMR) has become one of the largest nuclear reactor design teams in the world. In addition to the core team of some 700 people at the PBMR head office in Centurion near Pretoria, more than a thousand people at universities, private companies, and research institutes are involved in the project.

The PBMR team is currently preparing for the building of a commercial-scale power reactor project at Koeberg nuclear power station near Cape Town and a fuel plant at Pelindaba near Pretoria, where the PBMR fuel will be manufactured.

Assuming that the required regulatory approvals are obtained, the current schedule is to start construction in 2010 and for the first fuel to be loaded four years later.

The PBMR project enjoys solid support from the South African government, which regards it as one of the most important capital investment and development projects yet undertaken in the country. The Minister of Public Enterprises, Mr Alec Erwin, stated an intent to eventually produce 4 000MW to 5 000MW of power from pebble-bed reactors in South Africa. This equates to between 20 and 30 reactors of 165MW each.

PBMR’s mission is to be the first organisation that successfully commercialises pebble-bed technology for the world’s energy market. Being the first will be essential to achieve PBMR’s vision, which is to be the preferred global provider of standardised nuclear energy systems, fuel, and life-cycle support.

Good progress has been made in pursuit of this vision. A heat transfer test facility (HTTF) at the North-West University in Potchefstroom and a helium test facility (HTF) at Pelindaba were commissioned during 2007.

The HTTF will perform high-pressure and high-temperature tests. These empirical heat transfer tests will verify and validate thermo-hydraulic calculations and analyses that have been done to determine the heat generated in the core and the energy provided to the turbines for power generation. These thermo-hydraulic calculations have laid the platform for PBMR’s Brayton cycle design optimisation and component design specifications.

In 2007, a helium test facility (HTF) was commissioned at Pelindaba. This facility enables the first full-scale operating tests on the critical components of the reactivity control system, the reserve shutdown system, and the fuel handling system. All active components such as valves and measuring equipment are being tested in an actual high-temperature, high-pressure helium environment. These tests are providing crucial and early feedback regarding the performance of equipment designed and built for the high-temperature and high-pressure helium environment.

The Minister of Environmental Affairs and Tourism upheld the positive record of decision on the environmental impact assessment (EIA) for the pilot fuel plant at Pelindaba. The Minister also de-linked the EIA for the pilot fuel plant (PFP) from that of the demonstration power plant (DPP). This means that - from an environmental point of view – manufacturing of fuel can commence even though the regulatory approvals for the power plant at Koeberg are still outstanding.

HVDC research programme

The rapid growth of the South African economy since 2003 has greatly increased the demand for essential resources, including energy. As a result, Eskom has not only had to increase the generation of electricity, but also to strengthen its transmission network.

To accomplish the above tasks, various technical options and alternatives have been identified. One of these is HVDC (high-voltage direct current) transmission. In particular, the novel use of ±800kV DC as the operating voltage for the transport of large blocks of power over long distances is being investigated.

DC transmission at ±800kV has never been used operationally anywhere in the world, apart from a scheme (now operating at reduced voltage) in Russia and prospective systems in India and China. Although their experience will certainly help Eskom, the very different local conditions (severe lightning, high altitudes, acute insulator pollution, rampant fires, etc) and unproven voltage make local research, development, and testing essential.

To meet Eskom’s current operational objectives and to position the organisation as a leader in HVDC technology and application, ERID has already embarked on various research initiatives, including (but not limited to):

  • Apollo-Cahora Bassa upgrade to ±600kV, 3 500A
  • solving existing operational problems (Apollo-Cahora Bassa)
  • practical telecommunications media for long-distance transmission, up to 3 000km
  • 1,2MV HVDC testing facility
  • regional initiatives in HVDC, such as the Caprivi project
  • AC/DC line conversions
  • original HVDC research

The research being conducted by ERID will greatly contribute to the development and growth of local technical expertise in DC technology, especially regarding DC insulation and line design. It will also improve Eskom’s image and competitiveness as a competent user of HVDC technology.

   
 
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