http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.01Change: 0.11
R/$ = 11.04Change: 0.00
Au 1246.50 $/ozChange: -5.52
Pt 1271.00 $/ozChange: -13.00
 
 
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 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
Public Enterprises Minister Lynne Brown
Public Enterprises Minister Lynne Brown has released details of the remuneration of the chairpersons and nonexecutive directors of the various State-owned company boards falling under her Ministry. The remuneration figures, which are attached, are based on figures...
Article contains comments
Installed wind power capacity could swell by 530% to 2,000 gigawatts (GW) by 2030, supplying up to 19% of global electricity, a report from a trade association and Greenpeace said on Tuesday. It said installed wind energy capacity totalled 318 GW at the end of last...
Article contains comments
Article contains comments
More
 
 
Latest News
Updated 56 minutes ago Despite several real estate investment trusts (REITs) extolling the virtues of portfolio diversification, Resolution Capital Australia MD Andrew Parsons has cautioned against this strategy, advising trusts to rather simplify and specialise their asset portfolio....
Updated 2 hours 20 minutes ago Global crude steel output in September, at 134.4-million tonnes, was marginally lower than the 134.5-million tonnes produced in September 2013. According to the World Steel Association (worldsteel), China produced 67.5-million tonnes of crude steel in September,...
Updated 5 hours ago Stand a chance to win a CAT Phone.  Subscribe to Engineering News & Mining Weekly at a 30% discounted rate. The weekly print magazines will be posted to your preferred postal address. Also gain online access to: Project Browser - providing an overview of latest...
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
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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