PROMOTION: The lockdown presents an opportunity to research new business and new markets to pursue when it lifts. To assist South African businesses in these difficult times, Who Owns Whom is offering a 50% discount on all industry reports purchased during this period. The 50% discount will be applied on/at checkout.
INDUSTRY REPORTS PUBLICATIONS DATA FEED SERVICES WOWEB CONTACT US
Item added to your cart
Generation of Electricity
BY Yasmin Mahomedy
South Africa
15 January 2020
R 14 400.00 (ZAR)  
estimated $ 871.72 (USD) *
Buy Now

Generation of Electricity


State-owned power utility Eskom is in crisis due to generating capacity shortages, financial instability, corruption and mismanagement and R450bn debt. Eskom reported a net loss after tax of R20.7bn for the 2019 financial year and said it would make a R20bn loss in the 2020 financial year. In December 2019, load shedding reached stage 6, an indication that it has lost 40% of generating capacity. Ongoing power cuts will continue to affect economic growth. In October 2019, government approved the Integrated Resource Plan 2019, which outlines the energy mix for the next decade. The bulk of the increased generation capacity will be from renewable sources to lessen South Africa’s reliance on coal and help reduce the country’s carbon emissions.


Developments at Eskom


Eskom continues to struggle to meet generation demand, mainly due to maintenance issues, poor management and spiralling debt. A fifth of Eskom’s power stations are not operational at any given time and Eskom’s huge new coal-fired power stations, Medupi and Kusile which were intended to be completed by 2015 at a cost of R163.2bn, have been constantly delayed and expected to cost R451bn. Eskom will be unbundled to separate its generation, transmission and distribution functions into three separate business entities, owned by the state.


A New Plan


Since the Integrated Resource Plan 2010, 18,000MW of new generation capacity has been committed including 9,564MW of coal power, 1,333MW of water and 6,422MW of renewable energy by independent power producers. The 2019 plan calls for about 6,000MW of new solar capacity and 14,400MW of new wind power capacity by 2030.


Report Coverage


This report focuses on the generation of electricity by Eskom and independent power producers. There is comprehensive information on the state and size of the sector, the shifting energy mix under government’s resources plan to 2030 and progress in the introduction of renewable energy. There are profiles of 13 companies including Eskom, the Dedisa and Avon peaking power plants and solar energy companies such as the Hopefield Wind Farm and Coria, which trades as the Noblesfontein Wind Farm.


Page
1. INTRODUCTION 4
2. DESCRIPTION OF THE INDUSTRY 4
2.1. Industry Value Chain 7
2.2. Geographic Position 8
3. SIZE OF THE INDUSTRY 9
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Trade 17
4.1.2. Corporate Actions 18
4.2. Regulations 18
4.2.1. Enterprise Development and Social Economic Development 20
4.3. Continental 21
4.4. International 22
5. INFLUENCING FACTORS 23
5.1. Economic Environment 23
5.2. Rising Operating Costs 24
5.3. Supply and Quality of Coal 25
5.4. Crime, Corruption and Mismanagement 25
5.5. Technology, Research and Development (R&D) and Innovation 27
5.6. Labour 27
5.7. Electricity and Equipment Theft 30
5.8. Environmental Concerns 30
6. COMPETITION 31
6.1. Barriers to Entry 32
7. SWOT ANALYSIS 32
8. OUTLOOK 33
9. INDUSTRY ASSOCIATIONS 33
10. REFERENCES 33
10.1. Publications 33
10.2. Websites 34
APPENDIX 1 35
Summary of Notable Players 35
COMPANY PROFILES 37
ACWA POWER SOLAFRICA BOKPOORT CSP POWER PLANT (RF) (PTY) LTD 37
ASSOCIATED ENERGY SERVICES (PTY) LTD 39
AVON PEAKING POWER (RF) (PTY) LTD 41
CENNERGI (PTY) LTD 43
CORIA (PKF) INVESTMENTS 28 (RF) (PTY) LTD 46
DEDISA PEAKING POWER (RF) (PTY) LTD 48
ESKOM HOLDINGS SOC LTD 50
HOPEFIELD WIND FARM LOCAL COMMUNITY COMPANY 54
KELVIN POWER (PTY) LTD 55
NATIONAL ENERGY REGULATOR OF SOUTH AFRICA 57
PHELAN ENERGY GROUP (PTY) LTD 60
ROSATOM CENTRAL AND SOUTHERN AFRICA (PTY) LTD 62
SEF (SOC) LTD 64