Green Economy Journal Issue 56

NEWS & SNIPPETS
The National Energy Regulator of South Africa
(NERSA) ensures the orderly development of the
energy sector, mainly through licensing, setting and
approving of prices and tariffs, compliance
monitoring and enforcement, and dispute resolution
in the electricity, piped-gas and petroleum pipelines
industries.
NERSA endeavours to be more innovative and agile
in ensuring that we continue to make a valuable
contribution to the socio-economic development
and prosperity of the people of South Africa, by
regulating the energy industry in accordance with
government laws, policies, standards and
international best practices in support of sustainable
development.
NERSA is a regulatory authority established as a
juristic person in terms of section 3 of the National
Energy Regulator Act, 2004 (Act No. 40 of 2004).
NERSA’s mandate is to regulate the electricity,
piped-gas and petroleum pipelines industries in
terms of the Electricity Regulation Act, 2006 (Act No.
4 of 2006), Gas Act, 2001 (Act No. 48 of 2001) and
Petroleum Pipelines Act, 2003 (Act No. 60 of 2003).
NERSA’s mandate is further derived from written
government policies and regulations issued by the
Minister of Mineral Resources and Energy. NERSA is
expected to perform the necessary regulatory
actions in anticipation of and/or in response to the
changing circumstances in the energy industry.
The Minister of Mineral Resources and Energy
appoints Members of the Energy Regulator,
comprising Part-Time (Non-Executive) and Full-Time
(Executive) Regulator Members, including the Chief
Executive Officer (CEO). The Energy Regulator is
supported by staff under the direction of the CEO.
@NERSAZA
@NERSAZA
Kulawula House, 526 Madiba Street, Arcadia, 0083
PO Box 40343, Arcadia, 0007
Tel: 012 401 4600 | Fax: 012 401 4700
Email: info@nersa.org.za
Website: www.nersa.org.za
Thembani Bukula
Chariperson
Adv Nomalanga Sithole
Chief Executive Officer
and Full-Time Regulator
Member
Nomfundo Maseti
Full-Time Regulator
Member : Piped-Gas
Thembeka Semane,
Part-Time Regulator
Member
Precious Sibiya,
Part-Time Regulator
Member
Zandile Mpungose
Deputy Chairperson
Nhlanhla Gumede
Full-Time Regulator
Member : Electricity
Muzi Mkhize
Full-Time Regulator
Member : Petroleum
Pipelines
Fungai Sibanda,
Part-Time Regulator
Member
ESKOM ON LOADSHEDDING
Eskom substantiates that the high levels of loadshedding is
being implemented to ensure the appropriate reserve margins
are maintained to manage the risk of a blackout, and that the
outages do not indicate an approaching blackout.
Eskom is grappling with deep structural and maintenance
problems in its current and ageing fleet of generators, which
are on average 45 years old (they have a 50-year operating life).
Adding capacity is the only possible solution to the blackouts.
The shortfall is currently estimated at 4 000MW to 6 000MW of
generation capacity. This supply deficit can only increase as the
current fleet’s performance continues to deteriorate.
Eskom states that it is struggling to execute maintenance of
the power station fleet to improve reliability of the generating
units and to improve the energy availability factor. Planned
maintenance, currently at 6 022MW (approximately 11% of
installed capacity), is optimised during summer and tapers off
towards the high-demand winter period.
The plan is to return 6 000MW of generating capacity onto the
grid during the next 24 months. Six power stations have been
targeted with a detailed recovery plan for each one.
Medupi Power Station, which suffered a generator explosion
during August 2021, is anticipated to return to service during
September 2024. Eskom continues to explore options to reduce
the time to repair the unit.
The Kusile Unit 1 flue duct (chimney) failed in October 2022 This
incident compromised the adjacent units’ flue duct bends, making
all inoperable. This removed a total of 2 160MW from the power
system. Temporary flues for the units will be constructed to help
return the units to service while repairing the common chimney.
The construction of the temporary stack will take up to 12 months.
Together, the Kusile units, combined with Medupi 4, are
responsible for the shortfall of approximately 2 900MW in
generation capacity – equivalent to three stages of loadshedding.
Koeberg Nuclear Power Station will continue operating at half
of its 1 800MW generating capacity for the next 15 months. Unit
1 is currently on a regular refuelling and maintenance outage that
will include the replacement of the three steam generators as
part of the requirement and preparation of the unit for long-term
operation. It is anticipated the unit will return to service during
June 2023.
Koeberg Unit 2 will undergo a similar outage starting in
September 2023. It is anticipated this will take approximately six
months to execute. Upon successful execution, the combined
investment in both Koeberg units will secure 1 800MW of
generation capacity for a further period of 20 years.
The gas air heater fire of Unit 5 of Kusile removed a possible
720MW from the grid. Efforts are being made to expedite the
repairs and to bring the unit online within the shortest space of
time. It is anticipated the unit will be synchronised to the grid
during July 2023.
Together, these long-term projects and breakdowns have set
Eskom back 4 500MW of generation capacity, equivalent to five
stages of loadshedding.
ENERGY ACTION PLAN UPDATE
The Energy Action Plan was developed through extensive
consultation and endorsed by energy experts as providing
the best and fastest path towards energy security. National
Energy Crisis Committee (NECOM) has since been established
to coordinate government’s response and ensure swift
implementation of the plan.
Steps taken include:
- Schedule 2 of the Electricity Regulation Act has been amended
to remove the licensing requirement for generation projects,
which will significantly accelerate private investment.
- Since the licensing threshold was first raised to 10MW, the
pipeline of private sector projects has grown to more than 100
projects with over 9 000MW of capacity. The first of these largescale
projects is expected to connect to the grid by the end of
this year.
- NECOM has instructed departments to cut red tape and
streamline regulatory processes for energy projects, including
reducing the timeframe for environmental authorisations to 57
days from over 100 days previously; reducing the registration
process from four months to three weeks; and ensuring that
grid connection approvals are provided within six months.
- Project agreements for 19 projects from Bid Window 5 and
six projects from Bid Window 6 of the renewable energy
programme, representing 2 800MW of new capacity. These
projects will soon proceed to construction.
- A new Ministerial determination has been published for 1 4771MW
of new generation capacity from wind, solar and battery storage to
accelerate further bid windows.
- An additional 300MW has been imported through the Southern
African Power Pool, and negotiations are underway to secure a
potential 1 000MW from neighbouring countries starting this year.
- Eskom has developed and launched a programme to purchase
power from companies with available generation capacity
through a standard offer. The first contracts are expected to be
signed in the coming weeks.
- A team of independent experts has been established to
work closely with Eskom to diagnose the problems at poorly
performing power stations and take action to improve plant
performance.
Six power stations have been identified for particular focus
over the coming months through a comprehensive Generation
Recovery Plan, with oversight from the new Eskom board. While
the power system remains constrained in the short term, these
measures will reduce the frequency and severity of loadshedding
as new capacity is brought online.
Further updates will be provided on a regular basis regarding
progress in implementing the Energy Action Plan.
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