Eskom’s coal fleet operations and the challenges this presents

IEA CCC – October 2018

Sumaya Nassiep

South Africa – Electricity Overview

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Power crisis in 2007 saw the start of electricity blackouts due to demand exceeding

supply capabilities. This combined with rapidly aging electricity supply infrastructure

reduced available capacity by ~20%.

Costs associated with building new capacity, maintaining infrastructure and pressure

to “keep the lights on” have resulted in significant increases in electricity costs over

the past five years.

Electricity generation, transmission &

distribution undertaken by State

Owned Utility, Eskom.

Eskom produces >90% of SA’s power

and approx. 80% of the power within

the SADC region

Electricity System Status 31/03/2018

3Source: Draft IRP – Aug 2018

Government launched an Integrated Resource Plan in 2010, with a revised draft

released in August 2018, with the objective of establishing SA’s long term electricity

demand (2030) and how this should be met (i.e. energy mix).

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South Africa’s Integrated Resource Plan

Draft IRP 2018 estimates an

additional 35GW of electricity

would be required by 2030.

Based on GDP growth of 4.6%

over 20 years.

IRP 2010-2030 not only seeks to

provide a sustainable affordable

future energy supply but also

focuses on job creation and

achieving the 34% reduction in

GHG emission – Paris

Agreement

Renewable Energies will

comprise 20 GW of new

capacity planned.

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South Africa - Eskom Grid Map

Current Installed Nominal

Generation Capacity ~44GW;

15 Base Load Coal Fired PS

1 Nuclear Power Station

6 Pumped Storage PS

4 OGCTs PS

1 Renewables (Wind)

Solar PV for self consumption

>32000km of Transmission lines

Electricity distribution by Eskom &

187 municipalities

Actual available supply capacity

due to UCLF, PCLF and OCLF

stands at ~35GW

New capacity construction

>8GW coal

South African Electricity Consumption, Challenges& Mitigations

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Challenges:

• Escalating Electricity Costs

• Periodic Load Shedding

• Increasing UCLF

• Decreasing EAF

• Poor Primary Energy Quality

• Increasing cost of operation

• Increasing Environmental

pressures

Caused by:

• Growth (Population, dev.)

• Inadequate Energy Planning

• Inadequate PE contracting

Mitigating Measures:

• Introduced IDM programme

• Stepped up maintenance

• Reviewing QA of PE

• New build >8GW

Eskom Operational Performance 31/03/2018

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• Current YTD EAF ~ 74% * Severe Coal Supply Challenges*

• Decreasing Coal Quality * PE costs increased by ~14.5% in Q1 FY19

Eskom’s Installed Capacity & Challenges

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• Coal will remain the country’s main source of base load power until 2030

• Decommissioning of units may start as early as 2019 if demand continues to reduce.

• Coal availability, quality and price amongst the biggest challenges faced

• Increased need for HELE technologies to meet GHG emission targets.

• IPP take or pay contracts

• Tariff increases 19% requested vs 5% granted by National Energy Regulator

Key Initiatives to Drive Growth & Efficiency

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Thank you

Eskom System Status Report @ 10/10/2018

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UCLF Main Contributors (MCs): Boiler Tube Failures (FAE), Turbine Fault on Gen Stator

Partial Losses MCs: Poor Coal Quality (Load losses, FFP DP low, Poor Vacuum, ID/FD

Eskom R&D Focus – Coal & Clean Coal

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Investigation activities underway to support the above:

• The main objective of ensuring sustainable coal use on new and existing plants by:

Identifying and assessing green field sources and fines for future Eskom applications;

Understand the impacts associated with the introduction of new coal technologies in

Eskom, both positive and negative (risks);

Provide implementation strategies to mitigate against coal related risks.

• Review existing reserves to identify new sources

• Develop cost effective methods to remove stone, hence improve qualities

• Consider fine coal as a reserve and develop methods of combusting coal in power station.

• Improve analytical methods to ensure that quality of coal is determined in real time – be

proactive not retroactive.

• In depth analyses of the impact of coal quality on power station so we can manage

accordingly (ETAPRO/online analysers)

Existing Coal Fleet

Eskom R&D Focus – Coal & Clean Coal

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• South African targets a decarbonized electricity system by 2050 – expressed in it

Intended Nationally Determined Contributions (Paris Accord, 2015)

• Investigating HELE technologies to enhance environmental performance

• Focus on gasification, carbon capture and control

• Refer to additional Eskom Clean Coal Grand Challenge overview and 5 year focus

attached to email sent

Clean Coal – target to decarbonized electricity by 2050 (INDC)

Thank you

Sumaya Nassiep

General Manager (Acting)

Eskom Research Testing & Development

South Africa

Email: sumaya.nassiep@eskom.co.za

Tel: +27 11 629 5353

Mobile: +27 82 563 7429