Eskom Plans to Secure Transmission Network with $17 Billion Investment

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--South Africa's state-controlled power utility Eskom (Johannesburg) is in the middle of major planning, investing and construction activity. In its "Transmission 10-Year Development Plan 2013-2022," it will invest $17 billion in power transmission projects in order reinforce network reliability and integrate major new power additions onto the grid. The new power will follow the commissioning of new mega-thermal power stations, and a wide range of renewable power, pumped storage and power imports from neighboring countries.

One of the challenges facing the transmission network is the supply of power from independent power producers (IPPs) for the first time and the control of wind and solar power supplies.

Reliability improvements to the network will cost up to $14 billion, and a further $2.8 billion will go to programs aimed at integrating new power generation projects; the balance of about $345 million will be invested in customer-related projects.

In addition to the $17 billion investment in transmission projects, Eskom is planning to invest $1.4 billion on refurbishment projects and $265 million on capital pare over the ten-year period.

As the advent of IPPs looms and a greater degree of de-regulation in the system is called for, Eskom is seeking to raise user tariffs by 16% annually for the next three years. Once boasting the cheapest (subsidized) electrical power in the world, the company now sees the costs of priority capital projects creeping upward at a brisk pace, as industrial and domestic power customers put the pressure on for secure supplies and the end of development being inhibited by power output falling behind demand.

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