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3/10/11
DEPARTMENT OF ENERGY
Integrated National Electrification Programme (INEP)
Select Committee on Economic Development
8 March 2011
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• After 1994 and through the Government’s initiative of RDP (Reconstruction and Development Programme), electrification programme was endorsed.
• In the period 1994 – 2001 electrification was an electricity industry funded programme.
• During 2001 Government took responsibility for funding electrification programme, via funds made available from National Treasury.
• New drive is to increase access to electricity from 81% to 92% by 2014 instead of universal access due to limited resources and competing Government priorities.
BACKGROUND
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To manage the electrification planning, funding and implementation process, with the aim of addressing electrification backlog so as to reach Universal Access.
Our Focus areas
Managing the electrification planning process Managing the electrification funding allocation process Managing the electrification implementation process Monitor the INEP in line with the Energy White Paper, the
Division of Revenue Act (DoRA), Public Finance Management Act (PFMA), Electricity Regulation Act, OHS Act etc.
MANDATE OF INEP
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• Integrate electrification with other Government Departments programmes with the view of addressing Government objective of poverty alleviation and job creation.
• Ensure full participation of Local Government in the planning and implementations process by using IDPs.
• To facilitate greater participation of previously disadvantaged ccommunities in the operations and management of sector activities with a particular emphasis on women, youth and the disabled.
• Ensure effective and efficient service to the Minister of Energy
OBJECTIVES OF INEP PROGRAMME
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ELECTRICITY VALUE CHAIN
POWER STATIONS
GENERATION
TRANSMISSION LINES TRANSMISSION SUBSTATIONS
DISTRIBUTION (< 132 kV)
SERVICE CONNECTION
RETICULATION HV LINE(11 & 22kV)
TRANSMISSION (>132 kV)
RETICULATION LV LINE
(380/220V)
DISTRIBUTION SUBSTATIONS
Electricity is Generated by burning of fossil fuels (coal, oil, or
natural gas), use of nuclear technology and
hydro capability
Transmission networks (or Transmission grids) is carrying
High Voltage electricity between Generation and
Distribution
The distribution networks collect ‘stepped down’
electricity from the transmission networks and
deliver it to Redistributors /End Users
DISTRIBUTION (132/66/33/22 kV)
Customer consumption is measured at the point of supply in KWh. This information is used to measure and bill consumption
levels utilised/sold
The voltage levels of electricity are further transformed to meet Distribution
requirements
1 2 3
MUNICIPALITIES/ ESKOM
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GridNon Grid Universal Access
20A free connectionSolar Home Systems50w free connection
Free Basic Electricity Policy• Indigent households
• Households (rural, urban & farm dweller houses)• Schools and Clinics
APPROACH TO UNIVERSAL ACCESS
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Fiscal
Grid ElectrificationEskomMunicipalitiesNon Grid ElectrificationConcessionaires
Department of Energy
National Treasury
Implementing Agents
• Municipalities and Eskom
• Service Providers
Donor Funding (KfW, EU)
FUNDING MODEL
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NATIONAL BACKLOG (HOUSEHOLDS)
PROVINCIAL BREAKDOWN - BACKLOGS
PROVINCE BACKLOG % BACKLOG INFORMAL BACKLOG FORMAL BACKLOG
Eastern Cape 673,694 19.88% 67,369 606,325
Free State 200,633 5.92% 70,222 130,411
Gauteng 715,195 21.11% 572,156 143,039
Kwazulu-Natal 813,315 24.00% 162,663 650,652
Limpopo 340,064 10.04% 51,010 289,054
Mpumalanga 222,755 6.57% 44,551 178,204
North West 192,774 5.69% 48,194 144,581
Northern Cape 49,375 1.46% 17,281 32,094
Western Cape 180,351 5.32% 126,246 54,105
Total 3,388,156 100.00% 1,159,691 2,228,465
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• Ninth Outline LevelClick to edit Master text styles
– Second level
• Third level
– Fourth level
» Fifth level
UN-ELECTRIFIABLE INFORMAL URBAN SETTLEMENT
ELECTRIFIABLE URBAN INFORMAL SETTLEMENT (TSHWANE MAHUBE VALLEY)
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TYPICAL EASTERN CAPE TERRAIN
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MTEF ALLOCATIONS AND ESTIMATED OUTPUTS
12:39:22 PM 13
ALLOCATION 2010/11
ESTIMATED CONNECTIONS 2011/12
ESTIMATED CONNECTIONS 2012/13
ESTIMATED CONNECTIONS
(R'000) (R'000) (R’000)
Municipal allocations
R 1,020,104,000 80 000 R 1,096,612,000 80 000 R 1,551,443,000 85 000
Eskom Allocations
R 1,751,780,000 100 000 R 1,902,186,000 100 000 R 1,914,057,000 125 000
Non Grid allocation
R 68,200,000 10 000 R 70,861,000 10 000 R 86,370,000 10 000
Total allocation R 2,840,084,000 190 000 R 2,937,285,000 190 000 R 3,551,870,000 190 000
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ALLOCATION CRITERIA• Backlog status;
• Electrification projects identified as part of the Integrated Development Planning (IDP) process;
• Rural bias;
• Development nodal zones (identified as part of the ISRDS process);
• Past Performance of licensed Distributors;
• Existence of completed houses as a preferred scenario;
• Area status (proclaimed / un-proclaimed); and
• Commitments not addressed during re-gazetting due to unavailability of funds.
1414
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PROVINCE BULK INFRASTRUCTURE
HOUSEHOLDS CONNS TOTAL
EASTERN CAPE R 123,650,500 R 216,207,500 19,466 R 339,858,000
FREE STATE R 34,837,000 R 43,226,000 8,865 R 78,063,000
GAUTENG R - R 77,200,000 14,026 R 77,200,000
KWAZULU R - R 219,851,000 8,985 R 220,501,000
LIMPOPO R - R 128,000,000 26,614 R 128,000,000
MPUMALANGA R 10,000,000 R 57,300,000 9,975 R 67,300,000
NORTH WEST R - R 31,800,000 6,014 R 31,800,000
NORTHERN CAPE R 10,702,000 R 10,653,000 1,900 R 21,355,000
WESTERN CAPE R 5,770,000 R 50,257,000 8,960 R 56,027,000
TOTAL R 184,959,500 R 834,494,500 104,805 R1,020,104,000
MUNICIPAL PROGRAMME (2010/11)
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PROVINCE BULK INFRASTRUCTURE
HOUSEHOLDS CONN TOTAL
EASTERN CAPE R 99,898,376 R 424,378,607 35,036 R 552,280,000
FREE STATE R 0.00 R 39,271,731 3,871 R 38,921,000
GAUTENG R 40,475,040 R 44,032,992 4,671 R 111,705,000
KWAZULU NATAL R 143,834,598 R 270,689,700 20,984 R 409,294,000
LIMPOPO R 10,718,907 R 153,765,288 14,851 R 196,663,000
MPUMALANGA R 0.00 R 114,724,940 7,539 R 107,378,000
NORTH WEST R 25,084,277 R 128,710,377 1,596 R 190,612,000
NORTHERN CAPE R 9,252,240 R 24,731,481 3,711 R 48,318,000
WESTERN CAPE R 35,389,362 R 50,353,885 2,496 R 96,609,000
TOTAL R 364,652,802 R 1,250,659,006 94,756 R 1,751,780,000
ESKOM PROGRAMME (2010/11)
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MUNIC PROGRAMME ALLOCATIONS (2011/12)
Province Backlog Households
Budget Bulk
Infrastructure Departmental
Budget Total Allocation
EC 18.82% R 160,188,800 R 30,000,000 R 30,000,000 R 220,188,800
FS 5.80% R 34,000,000 R 30,000,000 R 6,000,000 R 70,000,000
GP 22.66% R 80,000,000 R 30,000,000 R 76,000,000 R 186,000,000
KZN 23.73% R 232,319,000 R 14,000,000 R 12,000,000 R 258,319,000
LIM 9.36% R 90,400,000 R 10,000,000 R 14,000,000 R 114,400,000
MP 6.61% R 65,187,550 R 18,250,000 R 3,562,450 R 87,000,000
NW 5.69% R 40,794,000 R 4,000,000 R 7,206,000 R 52,000,000
NC 1.45% R 2,612,200 R 24,000,000 R 20,000,000 R 46,612,200
WC 5.88% R 20,092,000 R 30,000,000 R 12,000,000 R 62,092,000
TOTAL 100.00% R 725,593,550 R 190,250,000 R 180,768,450 R 1,096,612,000
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ESKOM ALLOCATIONS (2011/12 )
PROVINCEBULK
INFRASTRUCTURE
HOUSEHOLDS Pre-ENGINEERING
CONN TOTAL
EASTERN CAPE R 170,732,045 R 368,066,871 R 7,167,248 25,385 R 545,966,166
FREE STATE - R 16,685,340 R 8,215,133 2,377 R 24,900,473
GAUTENG R 6,173,395 R 137,397,401 R 1,053,158 13,454 R 144,623,956
KWAZULU R 155,904,827 R 280,083,587 R 14,250,000 15,725 R 450,238,415
LIMPOPO R 23,088,740 R 155,287,051 R 6,193,143 14,634 R 184,568,935
MPUMALANGA R 17,100,000 R 91,201,524 R 2,977,680 6,891 R 111,279,204
NORTH WEST R 9,381,048 R 110,041,858 R 8,098,535 8,816 R 127,521,442
NORTHEN CAPE - R 55,754,561 R 2,175,512 5,817 R 57,930,074
WESTERN CAPE R 29,265,063 R 53,783,137 R 6,857,283 6,304 R 90,265,484
TOTAL R 402,264,073 R 1,268,301,335 R 56,987,696 99,403 R 1,737,294,153
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NON-GRID PROGRAMME
SERVICE PROVIDER SERVICE AREA NUMBER OF PLANNED INSTALLATIONS
KwaZulu Energy Services Central KZN 4,000
NuRa North KZN Districts 4,000
Solar Vision LImpopo 1,000
Ilitha CooperativeNorth of Eastern Cape (Matatiele, Umzimkhulu, Umzimvubu)
1,500
TOTAL KwaZulu Natal, Limpopo, Eastern Cape
10,500
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SOCIO-ECONOMIC INDICATORS
INDICATOR TARGET ACTUAL % ACHIEVED AGAINST THE TARGET
Total number of Jobs 5000 5,811 116
BEE/BWO/SMME expenditure (50% of amount allocated)
R 504,731,218 R 363,901,989 36
Youth (18 to 35yrs) Employment (50%)
2500 3,271 131
Women (36 yrs and above) Employment (30%)
1500 78 5
Employment of people with disability (2%)
100 13 13
Men (36 yrs and above) Employment (18%) 900 1,480 164
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Jobs created to date
Province Total Male Total Female Disabled Youth Total Employment
EC 400 38 13 251 438 FS 253 14 - 67 267 GP 1,107 93 - 600 1,200
KZN 1,288 98 - 881 1,386 LP 410 100 - 162 510 MP 254 74 - 190 328 NW 1,337 154 - 1,032 1,491 NC 151 1 - 89 152 WC 39 - - 6 39
Total 5,239 572 13 3,278 5,811
SOCIO-ECONOMIC INDICATORS
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SOCIO-ECONOMIC INDICATORS
PROVINCEYEAR TO DATE ACTUAL EXP
BEE/BWO/SMMEXPENDIT
URE
% OF BEE/BWO/S
MME VS. YTD EXP
BWO EXPENDITURE
%BWO OF BEE/BWO/ SMME EXP
NO OF COMPANIES BENEFITED
EC 245,801,200 134,454,491 55 67,783,890 50 7
FS 31,758,516 13,830,206 44 1,882,577 14 5
GP 37,804,231 33,740,688 89 5,071,144 15 20
KZN 315,176,259 107,245,574 34 50,188,891 47 14
LP 137,305,653 22,504,599 16 4,100,338 18 8
MP 68,936,432 12,492,080 18 3,195,353 26 3
NW 95,977,345 22,183,321 23 6,461,852 29 27
NC 25,505,222 4,610,550 18 182,840 4 7
WC 51,197,579 12,840,480 25 6,663,238 52 2
Total 1,009,462,437 363,901,989 36 145,530,122 40 103
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• Insufficient programme funding
• Building of new bulk infrastructure in rural areas
• Refurbishment and rehabilitation of electrical infrastructure
• Building municipal capacity without negative impact on service delivery
• Structured Planning approach (COGTA, Human Settlement etc)
• Project Management
• Resources Management (Contractors, Consultants, etc)
• Technology Innovations (integration of other sources of energy)
• Unacceptability and misconceptions about off-grid technology used on SHS which lead to vandalism of systems.
2323
UNIVERSAL ACCESS (CHALLENGES)
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VANDALISM EXPERIENCE
Vandalised
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• 92% target by 2014 is more realistic under the current conditions.
• Low backlog municipalities and provinces (NC, FS and NW) will reach universal access by 2012/13 FY.
• Metros and Informal settlement strategies will provide more focus and differentiation of rural and urban backlogs.
• Focused approach on bulk infrastructure, specially in rural areas will cause a slight decrease in current connection figures, but will have a very positive effect within the next two years.
• Political drive is required for the non-grid programme to continue existing.
CONCLUSION