Electrification Overview
Electrification Indaba
by
DG of Department of Energy
Ms Nelisiwe Magubane
15 March 2012
Background
• After 1994 and through the Government’s initiative of RDP
(Reconstruction and Development
Programme) the
electrification programme was endorsed.
• In the period 1994 – 2001 electrification was an electricity
industry funded programme.
• During 2001 Government took responsibility for funding
and managing the electrification programme, via funds
made available from National Treasury – as a result of the
White Paper on Energy Policy (1998).
• This programme is managed by Integrated National
Electrification Planning (INEP) unit within the Department
of Energy.
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Objectives of INEP programme
• 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
municipality’s IDPs.
• To
facilitate
greater
participation
of
previously
disadvantaged communities in the operations and
management of sector activities with a particular emphasis
on women, youth and the disabled.
• To ensure 92% access to electricity by 2014/15 for all formal
households, instead of universal access due to limited
resources and electricity industry short comings.
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Funding process
Grid
Electrification
Eskom
- Connections
- Infrastructure
Municipalities
- Connections
- Infrastructure
Fiscal
Concessionaires
Non Grid
Electrification
Municipalities
- Limited projects
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Electrification progress
• Over 5.4 million households were
connected to the grid between 1994
and 2011.
Province
Electrified
Houses:
Municipalities
& Eskom
Eastern Cape
974 873
Free State
357 839
Gauteng
633 219
• More than 12 000 Schools were grid
connected from 1994 - 2011, and
about 3 000 schools were electrified
with non-grid technology in same
period.
KwaZulu Natal
878 867
Mpumalanga
535 356
Northern
Cape
130 135
Limpopo
915 098
• 345 Clinics in deep rural areas were
supplied with non-grid electrification
from 1994 to 2011.
North West
628 184
Western Cape
364 172
• In period 2002 to 2011 close to
50 000 households were supplied
with non-grid technology (Solar
panels – Renewable Energy)
Total
5, 417 743
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Non grid – Solar home systems
2011/12 Financial year
Total installed PV SHS - 47,226
• Eastern Cape
• Kwazulu Natal
• Limpopo
- 10,284
- 28,802
- 8,140
 Non-grid electrification programmes will in future not only be
implemented in concessionary areas, but on a limited basis in
other areas in the country that qualifies for non-grid roll-out.
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Infrastructure Projects
Various Municipal and Eskom infrastructure projects were funded in
2011/12, related to the building of new substations, upgrading of existing
substations and inter- connecting High Voltage (HV) lines:
1. Eskom
• 43 projects under construction, mostly in KZN, EC and WC
• 4 more substations than earmarked in Stratplan (6 of 10)
• Different stages of completion – next 6 months
2. Municipalities
• 48 projects under construction, mostly in EC, FS and WC
• 11 more substations than earmarked in Stratplan (4 of 10)
• Different stages of completion – next 12 months.
More than 1/3 of current allocation is made for infrastructure projects –
Municipalities - R238 mil and Eskom - R830 mil = R1,07 bil
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National Progress
Access
- 1996
Access
- 2010
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Households without electricity
Northern Cape
1.5%
North West 5.5 %
Western Cape
5%
Eastern Cape
20%
Mpumalanga
6.5%
Limpopo 10.5 %
Free State 6 %
Gauteng 21%
Kwazulu Natal
24%
Households without electricity: ~ 3.4 million (Informal 1.2 mil
and formal 2.2 mil)
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INEP: MTEF Allocations
MTEF 2010/11
R’000
MTEF 2011/12
R’000
MTEF 2012/13
R’000
MTEF 2013/14
R’000
MUNICIPALITIES
1 020 105
1 096 612
1,151,443
1,314,772
ESKOM
1 719 810
1 737 842
1,882,087
1,982,596
68 200
70 861
86,400
2 808 115
2 905 315
3,119,930
VOTED FUNDS
NON - GRID
BASELINE
ALLOCATION
91,152
3,388,520
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Allocations for 2012/13
Eskom allocations
(R’ 000)
Munic allocation
(R’ 000)
Eastern Cape
488 339
279 400
Free State
39 121
79 300
Gauteng
104 882
188 000
KwaZulu Natal
510 291
234 000
Limpopo
235 027
125 300
Mpumalanga
111 282
74 943
Northern Cape
36 107
59 900
North West
246 989
49 300
Western Cape
110 048
61 300
1 882 087
1 151 443
Province
Total
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Challenges
• In the order of 82% of all formal households in SA have
access to electricity – 76% of all households.
• However, challenges in increasing these access figures:
–
–
–
–
Shortcomings in the electricity distribution industry;
Slow roll-out of grid and non-grid programmes;
Funding shortcomings and
Escalation of electrification costs
• Under current conditions the real number of households to
be electrified in the years to come will decrease – gap
between households without access to electricity and with
electricity will increase dramatically.
– No dramatic increase in electrification fund within the next
three financial cycles.
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Proposed way forward
White Paper on Energy Policy (1998):
• Policy 7.1.4 states:
“Government will coordinate the electrification programme, including the
following activities: setting of realistic electrification targets, determination of
allocation criteria and priority areas for electrification, ensuring allocation and
management of funds, financing and subsidization of electrification projects and
determination of appropriate mix between grid and off-grid technologies.”
• Policy 7.1.4.10 states:
“Government will evaluate the impact of the national electrification programme
and will amend the electrification policy and strategy from time to time as
necessary”
• Electrification policies is still valid, need to look at different strategy
of implementation.
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Proposed way forward (....2)
• Options available are limited and if implemented it might not be
popular. Available options need to be debated and considered,
such as:
– Need to address EDI challenges and structure;
– Increase efficiency in managing and implementing electrification
projects;
– Standardization of equipment and supply standards;
– Single purchasing office;
– National planning of electrification roll-out;
– Diversification of electrification technology – Energization vs
Electrification
– Role of private service providers and financial institutions in future
electrification and
– Have to invest more in non-grid technologies. International grand
funding available only for non-grid electrification projects
• The deliberations during this Indaba and the process to be
followed after this Indaba will need to address these issue.
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Thank you
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