Isaac Sokopo Group Electrification Planning Manager ESKOM’S CONTRIBUTION TO RURAL ENERGISATION AND FUTURE STRATEGY FOR GROWTH Isaac Sokopo Group Electrification Planning Manager

INTRODUCTION Challenges facing Eskom in the early 90’s - Electrification Process Achieved reduction in cost Technology interventions Future strategies Conclusions

THE CHALLENGE In 90’s around 1,5m households to be connected in period of 5 years Core business or separate energy required? Requirements for the 5 years Connection every 30 seconds Pole in the correct place every 10 seconds 200m of cable strung every minute R6000 to be paid and managed per minute 200 simultaneous projects to be managed

PROCESS DEVELOPED Detailed planning and project management process developed Long lead times introduced from planning to implementation - 18 months to 24 months Business plan indicators used to assign targets per Region Each project was then identified and slotted in to the Regional plan approved at Corporate.

Process (Cont) Problem was volatility in the areas. Villages changed in size, people moved. Rolling reviews are conducted quarterly. Projects may be deferred a few months or scope changes reflected. All has to occur in a controlled manner. Result is a process which has enable the price to be reduced by 50% in real terms.

REDUCTION ACHIEVED

TECHNOLOGICAL INTERVENTIONS Needed to produce standards that could be used Eskom wide Compromises and adjustments were necessary Design parameters then defined to enable designers to optimally use the standards Load levels specified Indicators developed to enable designers to rapidly identify non-optimal designs

FUTURE STRATEGY Electrification has reached the end of the beginning phase. Much still has to be done. Four fronts need to be tackled Process for the Industry needs to be established Technology for the Industry Tariffs Non-Grid

PROCESS Involvement and support of the DME initiatives on the electrification process is in place. Eskom is willing to compromise in order to obtain the best process Experience gained has been incorporated into the future process developed by the NECC.

TECHNOLOGY To make use of existing standards other role players to review or adopt standards. NRS and SABS will form the basis of technology standards for the Industry. Offer to develop parameters and indices that will enable the building blocks to be effectively used.

TARIFFS Need for a range of Tariffs to enable the poorest of the poor to have access not a free handout but a tariff to match the needs and means of all. Eskom Distribution is piloting a “first light” tariff which limits the power drawn between 2,5A and 8A. It is not a flat rate breaker tariff.

TARIFFS Other ranges include 20A and 60A with increasing connection fees. To upgrade needs to be easily achieved Customers must have the choice of tariff. No tariff should be imposed.

NON-GRID Even with the latest grid technology there will still be areas that grid cannot reach. There is therefore a need for non-grid technology Eskom Distribution has decided to embrace non-grid and incorporate it into the suite of options available to planners

NON-GRID Non-grid is not limited to PV but includes mini or micro grids which may be powered by Diesel or renewable energy sources. The type of non grid technology to use will be determined by market forces and the community. Eskom will continue to work with stakeholders to ensure issues such as subsidy is resolved.

CONCLUSION Eskom Distribution has played a major role in rural energisation. Electricity provision has resulted in Increased education Improvement in quality of life Increase of economic activities in electrified area Increase in growth of trees in areas where this was used as fuel.

CONCLUSION It is our intention to Support Government in the upliftment of the people via the provision of electricity To assist wherever possible to ensure that electrification can continue in whatever structure of the future Industry.