Address by Jeff Radebe, Minister of Public Enterprises, on the Occasion of the Opening of the Eskom National Control Centre
Simmerpan, 2 September 2000
The Chairman of Eskom, Mr Reuel Khoza has outlined in some detail the role and importance of the National Control Centre. It is quite clear to me that the modernisation of Eskom's National Control Centre will enable it to fulfil better its role as an important contributor to South Africa's participation in the realisation of the African Renaissance. I would like to restrict my comments this morning to an overview of the Southern Africa Power Pool as a whole, as the National Control Centre will be central to our interface with this power pool.
In line with government's vision, Eskom has embarked on a very serious campaign to expand its activities in Africa. In doing so, Eskom strives to be a pre-eminent, world class, supplier of electricity and related services in Africa. This does not mean that we wish to supplant existing African utilities. Rather, we want to employ the resource base and widespread skills represented within Eskom to elevate the African electricity industry as a whole to levels where it can compete with international players, particularly on our own continent.
Bound by common purpose and in support of each other, African utilities can achieve the world-class status that is needed for the type of effective competition that reduces costs and brings power to the people of our continent in real terms.
A satellite picture of Africa by night would reveal numerous clusters of light that are concentrated along the Mediterranean, the sub-Saharan coastal areas, the South African hinterland, and a number of isolated pools in the interior associated mainly with larger cities, transport routes and mining and/or industrial areas. However, generators still provide much of the domestic energy in many countries at great cost and noise. As dawn emerges, however, we discover that the areas of deepest darkness, with the exception of the great deserts and impenetrable forests of our continent, are areas where millions of people eke out their meagre livings.
Faced with this major challenge, and with the realisation that power and energy are basic requirements for development and growth, governments across the length and breadth of Africa are planning major electrification projects. An incomplete list includes the following projects that are in various stages of discussion or advancement:
It is important to note that in a number of these African countries, Eskom has been invited to participate as the partner of choice, often against intense rivalry from extra-continental companies. That this is the case brings a sense of pride in Eskom's achievements, but also underlines a particular responsibility that the entity has towards Africa and its people as well. Thus, Eskom must always seek to act in concert with host country utilities, after due consultation with the respective governments and other significant stakeholders alike.
However, it would be a mistake to see these projects as unconnected [no pun intended!], or that they are isolated events in remote corners of the African heartland. There is a developmental logic that underpins them that was emphasised in September 1995, when the twelve member governments of the SADC, including Mauritius, signed an "enabling memorandum" for the formation of a Southern African Power Pool. The power utilities of the same countries then signed an inter-utility agreement on this power pool.
This power pool organisation aims to create a mechanism by which member countries can trade electrical power among themselves, buying from suppliers with the best terms and conditions, and selling to those offering the best prices. To achieve this, high-capacity electrical transmission lines must be built connecting the various national networks to one another. Where power must move through an intervening country, this country must agree to "wheel" the power for a prearranged fee. Among the positive results of the formation of the power pool are the active pursuit of reduced generation costs and the furtherance of a long-held vision in the electricity supply industry, the establishment of a Southern African Grid as an ingenious and effective way of countering crippling shortages of electric power by moving it around the sub- continent. The Grid could also act to improve relations between regional states and encourage economic and social advancement.
The Power Pool vision has already resulted in practical results, such as the building of a second line, the 450km Aries-Kokerboom line, an important link in the proposed Western Leg of the grid, running up as far as Inga in the DRC. The first link was the Matimba-Insukamini line between South Africa and Zimbabwe. The Aries and Kokerboom line is one of the longest transmission lines in this part of the world and has a capacity of 900 megawatts, far more than the 200 megawatts of the 'old' line. At this level, it is well able to carry considerable loads for the developing Namibian economy and for Angola and even for the DRC at some stage in the future.
At present, the southern members depend almost completely on coal, while those in the north are dependent on hydro. Real concerns about environmental impacts and drought affect each area respectively. By connecting them on a common grid, each set can, in turn, reduce the problems of the other. Furthermore, natural gas off the coast of Namibia, impervious to climatic conditions and with a much-reduced environmental impact, could soon be harnessed to feed power into the new system.
A grid such as this is not a single project with an easily-defined starting or finishing date. It is a collection of smaller projects as each of the participating countries builds transmission lines connecting its national electricity grid to those of its neighbours. As the number of such interconnections increases, and the ability of African countries to buy and sell electricity improves, so the effectiveness and benefits of the arrangement will increase.
The southern African sector of the grid began to emerge several decades ago when South Africa was connected to Namibia, Botswana, Swaziland and Lesotho, and Zambia was connected to DRC and Zimbabwe. It came into general prominence with the building of Cahora Bassa in Mozambique and its line to South Africa in the late 70s. The most noticeable recent facets of the grid are the line from South Africa to Zimbabwe via Botswana and the renewed construction of the Cahora Bassa line to South Africa.
A significant element in the long-term success of the grid will be when the major hydro potential on various rivers is utilised to send substantial amounts of electricity to other African countries. For example, various hydrological surveys have estimated that there is a hydro-generation potential of between 50 000 MW and 120 000 MW at Inga on the Congo River. This would be enough to supply the total demand of the whole African continent and still allow for export to Europe and Asia. In the interim, however, the enabling infrastructure of lines throughout the rest of the sub- continent is preparing the way for sub-Saharan hydro schemes to become the prime generation source for the grid.
Regarding the northern sector, Eskom's discussions with its Egyptian counterpart have revealed that Egypt is seeking ways to play the same role as a co-ordinator and promoter of the grid in the north as Eskom is doing in the south. It also sees itself as a logical gateway for wheeling power through to the Middle East and Eastern Europe. Other possibilities include a route via West Africa into Europe through Spain or Italy.
In short, the concept of an interconnected grid for the exchange of electricity is accepted and endorsed by all the African countries, especially SADC member countries. The grid exists, albeit tenuously, throughout much of southern Africa, but the lines and substations need considerable upgrading and strengthening. Construction projects are under way, but many remain to be tackled. Countries 'already on the grid' could thus be said to be (from south to north) South Africa, Lesotho, Swaziland, Namibia, Mozambique, Botswana, Zimbabwe, Zambia, and Zaire. Countries committed to joining the grid are Angola, Congo Republic, Kenya, Malawi and Tanzania. The projects I outlined earlier, together with the concept of the Grid suggested here, will provide an extremely powerful instrument to boost development in southern Africa with impacts far beyond our own region.
Electricity is essential for significant economic growth. As electricity suppliers in the Southern African Grid, we must be businesslike, efficient and profitable to survive in this era of globalisation. When multinational organisations investigate possible sites for a new plant, they always have a list of very specific criteria against which to test the possibilities. It is my firm belief that a reliable, quality supply of electricity at very economic prices is a vital factor in such a situation.
Because of a combination of historical and environmental reasons, Eskom is currently one of the world's largest power supply companies, and arguably the most efficient. As such, it is a reliable and efficient partner to provide developmental infrastructure on the continent that will help change both the reality and perceptions of Africa's circumstances.
The refurbishment of this National Control Centre could, therefore, not have come at a better time. We are poised, together as members of the Southern African community, to place the efficient and cost-effective supply of electricity within reach of millions of our people.
I thank you.