1. ESKOM RURAL ELECTRIFICATION EXPERIENCES - LESSONS LEARNT -
Presentation to UPDEA Workshop in Durban
I. Sokopo

2. CONTENTS Strategic Approach Institutional and Funding Arrangements
Commitment From Government
Social Interventions
Technical Interventions
Process
Institutional and Funding Arrangements
Public Private Partnerships
Achievements to date
Electrification Success: Cumulative
Cost Per Connection
Way Forward
Lessons Learnt
Conclusion

3. COMMITMENT BY GOVERNMENT
Eskom performed connections
Target set by Government for 1,75m by year 2000.
2001 to date - 3,3 million households electrified
Connection every 30 seconds, pole every 10 seconds, 200m cable every minute.
1000 projects simultaneously each year.

4. SOCIAL INTERVENTIONS Critical to ensure success of any program
Existing structures not necessarily recognised by communities.
Electrification Committees set up
Transfer of skills crucial

5. TECHNICAL INTERVENTIONS
Tackled in four areas.
Realistic load requirements
3kVA - 0,4kVA
Type of supply
single or three phase
Utilisation of equipment
Poles, transformers, indicators used
Revenue management and metering
Prepayment

6. PROCESS Change from reactive to proactive target driven approach
Process had to be put in place
Lead time of 18 months
Centrally controlled.
Rolling plan reviewed every three months
very dynamic environment.

7. INSTITUTIONAL AND FUNDING ARRANGEMENTS
UP TO 2000
Funded by Eskom, flexibility, ability to meet targets, up front planning
2000 TO PRESENT
Funded By Government
Stringent processes to follow
No certainty on future cash availability
Situation is improving
Numbers have dropped [Energy White Paper]
FUTURE – CONFIDENT OF LIAISON WITH GOVERNMENT TO ENSURE DELIVERY

8. PUBLIC PRIVATE PARTNERSHIPS
USED FOR NON – GRID PV SYSTEMS
EXPENSIVE TO CUSTOMER
R100 connection fee compared to R0
R60 per month compared to usage
R9/kWh compared to R0.5/kWh
ELECTRIFICATION NOT PROFITABLE EVEN WITH LIMITED SUBSIDIES

9. ACHIEVEMENT TO DATE
By end 1999 Eskom electrified 1,750,750 households - bulk in rural areas.
12% in 1994 to 46% at end 1999.
Achieved cost per connection reduction by over 50% in real terms.
Approximately 6000 PV systems
8 500 schools and clinics

10. ELECTRIFICATION SUCCESS CUMULATIVE CONNECTIONS

12. WAY FORWARD

13. LESSONS LEARNT Need Vision From Government Need Supply Chain
Up front planning
Pre – engineering
Funding for 132 kV networks
Need Technology, Standards, Process
Public Private Partnerships have limited success due to profit requirement

14. CONCLUSION Need to always learn from mistakes
Need to have strict control from a Central office with a clearly defined target and process
Sound Stakeholder management throughout the process