http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.02
R/$ = 10.96Change: 0.00
Au 1195.22 $/ozChange: -3.23
Pt 1225.00 $/ozChange: -4.50
 
 
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 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|Johannesburg|Africa|Eskom|Flow|System|Systems|Africa|South Africa|Ankerlig Station|Gourikwa OCGT Facility|R78-billion Medupi Power Station|Energy|Flow|Open-cycle Gas-turbine|Systems|Transmission Network|Mossel Bay|Environmental|South African Institute Of Electrical Engineering|Jacob Maroga|Power|Directv R15 (120 GB) DTV Receiver / 100-Hours Video Recorder|Limpopo
Construction|Engineering||Africa|Eskom|Flow|System|Systems|Africa|||Energy|Flow|Systems|||Environmental||Power||
construction|engineering|johannesburg|africa-company|eskom|flow-company|system|systems-company|africa|south-africa|ankerlig-station|gourikwa-ocgt-facility|r78billion-medupi-power-station|energy|flow-industry-term|opencycle-gasturbine|systems|transmission-network|mossel-bay|environmental|south-african-institute-of-electrical-engineering|jacob-maroga|power|directv-r15-120-gb-dtv-receiver-100-hours-video-recorder|limpopo
© 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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Kenya Power plans to spend 8.7-billion shillings ($96.6-million) on new power distribution stations to improve electricity supply aimed at curbing chronic power shortages that companies say have discouraged investments. Kenya Power, the country's main electricity...
Themba Mkhwanazi
Anglo American Inyosi Coal and Eskom “are broadly aligned” regarding Eskom’s empowerment imperatives for the New Largo project, Anglo American coal business in South Africa CEO and Anglo American Inyosi Coal chairperson Themba Mkhwanazi reported on Friday. In a...
Barack Obama
Barack Obama last year told a cheering crowd in Cape Town that a $7-billion plan to "Power Africa" would double electricity output on the world's poorest continent and bring "light where currently there is darkness". A year later, the US president's flagship project...
Article contains comments
More
 
 
Latest News
South Africa’s National Treasury on Friday reissued its amended request for proposal (RFP) for the five-year multibillion-rand project to replace the legacy systems currently in use with an enterprise resource planning (ERP) solution for an integrated financial...
Systems Automation and Management Durban manager Weyers van der Merwe, Richards Bay dry bulk terminal manager Mandla Mpungose and Umfolozi TVET college principal Sam Zungu.
The handover of specialised computer equipment to the Umfolozi Technical and Vocational Education and Training College would address one of the greatest challenges faced by Transnet Port Terminals (TPT) at the Port of Richards Bay – a lack of skills in a highly...
Through hosting the WorldSkills 2014 competition’s mechatronic pre-national finals, industrial control and automation company Festo would promote and support skills development. Festo said the mechatronic competition would give schoolchildren, trainees and students...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
As the City of Ekurhuleni continues its bid to develop the largely industrialised metropole into the continent’s first aerotropolis, executive mayor Mondli Gungubele has committed the city to creating a predictable, stable and enabling business environment in which...
While Ford Motor Company of Southern Africa (FMCSA) did not have “significant issues” with power supply in Gauteng, it was a different story in the Eastern Cape, said FMCSA and American Chamber of Commerce in South Africa president Jeff Nemeth earlier this month....
In 2000, exports into Africa from South Africa represented less than 5% of the turnover of Federal Mogul Motorparts Africa, with sales largely centred around Zimbabwe, Zambia, Malawi and Mozambique. Today, African exports represent 30% of sales, with trade expanded...
The Malawi government has launched a $50-million project to upgrade the Kamuzu barrage, on the Shire river, an outlet of Lake Malawi, which is used to control the flow of water from the lake to the lower Shire area. The project will run from this year to 2017 and...
  Our new Technical and Vocational Education and Training (TVET) Colleges will replace the Further Education and Training (FET) Colleges which have served us for the past twenty years.  The buildings will be the same and most of the staff will be the same but as the...
 
 
 
 
 
 
 
 
 
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