http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.05Change: 0.08
R/$ = 14.96Change: -0.04
Au 1271.56 $/ozChange: -6.56
Pt 1057.50 $/ozChange: 3.00
 
 
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 About 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|Africa|Business|Engineering|Eskom|Flow|Gas|Power|System|Systems|Africa|Energy|Flow|Systems|Environmental
Construction|Africa|Business|Engineering|Eskom|Flow|Gas|Power|System|Systems|Africa|Energy|Flow|Systems|Environmental
construction|africa-company|business|engineering|eskom|flow-company|gas|power|system|systems-company|africa|energy|flow-industry-term|systems|environmental
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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
The South African unit Enel Green Power, itself a subsidiary of Italian energy group Enel, reports that its 82.5 MW Paleisheuwel photovoltaic (PV) power plant has been connected to the grid. Located in the Western Cape, the plant is Enel Green Power’s largest power...
Article contains comments
State-owned electricity utility Eskom this week claimed that there had been a steady improvement in the energy availability factor (EAF) at its power stations, reporting “preliminary figures” indicating an EAF of 76.37% from the start of its financial year to May 3,...
US Democratic presidential front-runner Hillary Clinton on Monday began a two-day tour through rural, traditionally coal-reliant parts of the eastern Appalachian region, where Republican rival Donald Trump's pro-coal, anti-trade message has resonated with...
More
 
 
Latest News
Emira CEO Geoff Jennett
Updated 2 hours 56 minutes ago The JSE-listed Emira Property Fund has invested over R250-million in acquiring new centres and upgrading its shopping centres to strengthen its retail assets, according to Emira CEO Geoff Jennett, who stated on Thursday that the company was investing strategically....
Equites CEO Andrea Taverna-Turisan
Updated 3 hours ago JSE-listed Equites Property Fund achieved an 18.3% year-on-year increase in distributions to 96.6c a share for the year ended February 29. “The distribution growth reflects the strong property fundamentals of the Equites logistics portfolio,” Equites CEO Andrea...
Updated 3 hours ago It takes a coherent company to successfully and sustainably close the gap between strategy and execution in Africa, and one of the key factors in doing so is unconventional leadership, which is needed to foster the behavior required of coherent companies, according...
More
 
 
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
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 $149 Close
Subscribe Now for $149