http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.93Change: 0.00
R/$ = 12.67Change: -0.01
Au 1095.49 $/ozChange: 0.31
Pt 984.00 $/ozChange: 2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 19, 2007

Foreign landowners stymie transmission strengthening, says Eskom chief

Back
Eskom CEO Jacob Maroga speaking at the South African Institute of Electrical Engineers about transmission challenges and the need for a price increase (19/9/2007)
 
 
 
Construction|Engineering|Africa|Eskom|Flow|Gas|System|Systems|Africa|Energy|Flow|Systems|Environmental|Power
Construction|Engineering|Africa|Eskom|Flow|Gas|System|Systems|Africa|Energy|Flow|Systems|Environmental|Power
construction|engineering|africa-company|eskom|flow-company|gas|system|systems-company|africa|energy|flow-industry-term|systems|environmental|power
© Reuse this The heated debate over the foreign ownership of South African land took a somewhat surprising new turn on Wednesday, with the head of the State power utility suggesting that foreign ownership of large tracts of land is constraining its ability to secure the servitudes necessary to strengthen the transmission network.

Speaking at the South African Institute of Electrical Engineering's inaugural breakfast briefing at Woodmead, north of Johannesburg, Eskom CEO Jacob Maroga indicated that the acquisition of land and servitude rights had emerged as a major challenge.

This issue, together with delays in environmental impact assessment (EIA) approvals, had also emerged as a possible constraint to the delivery of a R150-billion, five-year investment programme aimed at increasing generation capacity and strengthening the transmission and distribution systems.

"Timelines are tight," Maroga warned, pointing out that Eskom was aiming to spent some R15,5-billion on its long-distance transmission lines up until 2012, including the addition of new lines linking into the R78-billion Medupi power station, being constructed near Lephalale, in the Limpopo province.

He indicated that one of the biggest challenges for its transmission business was the securing of servitudes and the timeous delivery of EIA records of decision.

"The issue of foreign land ownership, for some, is a nationalistic thing. For us, it is a big issue, because in some areas, especially in Lephalale, we have to cross new game farms owned by very important people living abroad. They didn't buy it so that they can see ugly transmission lines on their farms. That becomes a problem," Maroga asserted.

EIA-LINKED DELAYS

The remarks follow a recent acknowledgement by the utility earlier this month that plans for the introduction of an additional 1 050 MW of open-cycle gas-turbine (OCGT) capacity by the winter of 2008 had been thwarted by delays in the finalisation of the EIA.

Envisaged was the addition of five 150-MW units for the 600-MW Ankerlig station, in Atlantis, raising that station's capacity to 1 350 MW by the winter of 2008. And, a smaller expansion plan had also been approved for Mossel Bay, where an additional two 150-MW units were to be added to the 450-MW Gourikwa OCGT facility, raising that plant's capacity to 750 MW by the winter of 2008.

The utility had hoped to have completed the construction and commissioning ahead of an anticipated record demand peak of 38 600 MW, which would be well above the 36 513 MW demand record set on July 5, this year.

But as a result of EIA challenges, Eskom admitted that it would not be able to deliver the new capacity within its budgeted timeframes and that the generation system, which was operating within a tight reserve margin framework of between 8% and 10%, would be vulnerable to increased interruptions next year.

Maroga's statements also follow closely on the release of a report by a panel set up specifically to investigate the appropriate policy response to the increasing tendency for foreigners to buy land in South Africa.

The panel's report is currently out for public comment and includes the following recommendations: the compulsory disclosure of nationality, race and gender; a possible temporary moratorium on the sale of State land to foreigners; a possible prohibition on foreign ownership in certain classified areas; the harmonisation of laws affecting land-use planning and zoning; the establishment of an interdepartmental oversight committee to monitor foreign land-ownership trends; and measures to deal with fronting.

However, Maroga stressed that the servitude acquisition issue was but one of several challenges associated with the group's accelerated capital programme.

‘CORRECT PRICING' THE BIGGEST CHALLENGE

He again indicated that the correct pricing of electricity was probably the biggest challenge to the sustainability of its build programme, which could involve the doubling up of Eskom's generation capacity to nearly 80 000 MW by 2025.

He said he was optimistic that its approach to the National Energy Regulator of South Africa (Nersa) to reopen the three-year tariff declaration early to allow for a material increase in the tariff structure was being given a fair hearing.

Earlier, a Nersa report described Eskom's application for changes to prices and the rules governing the that determination as "valid in broad terms".

The utility had proposed that Nersa change its rules to allow a flow through of primary-energy costs; to compensate for the accelerated capital programme; and to facilitate a reopening of the multiyear price determination (MYPD).

The prevailing MYPD allowed for a 5,1% increase for 2005/6, 5,9% for 2006/7, and 6,2% for 2008/9.

Eskom wants an early adjustment of 18% for 2008/9, followed by 17% in 2009/10, having warned that South African electricity consumers could face an even more dramatic 30% step change if the adjustment was disallowed.

Nersa would hold public hearings into Eskom's application on November 22 and make a final determination by December 20.

Edited by: Terence Creamer
Creamer Media Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
A “record” $700-million in guarantees has been secured from the World Bank for Ghana’s Sankofa gas project to advance the West African nation’s energy transformation. The World Bank approved a $500-million International Development Association payment guarantee to...
Cabinet ministers are reviewing their decision to grant Eskom the ownership and operational rights of the proposed nuclear build programme, said the energy department's Deputy Director General Zizamele Mbambo. Mbambo, addressing a  seminar on South Africa’s nuclear...
POWER POTENTIAL Central Africa has significant hydropower potential to meet both its local and export requirements
The forecast increase in demand for electrical energy in the sub-Sahara Africa region has prompted heads of States to endorse an investigation of the 15 most promising hydropower projects, worth an estimated $50-billion, says black-owned engineering consulting firm...
More
 
 
Latest News
Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue. Mobile net revenue for the first three...
Dangote Cement revised its 2015 spending plans to $1-billion from the $700-million estimated nine months ago after it commissioned two new African plants this June, Nigeria's biggest listed company said on Friday. The company, majority owned by billionaire Aliko...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96