Insert image here The Eskom Transmission Development Plan (TDP) 2022 - 2031 26 October 2021 Keynote address By: Segomoco Scheppers Group Executive: Transmission Contents Planning assumptions: Demand Forecast Planning assumptions: Generation Assumptions TDP2021: Provincial Development Plans Transmission Refurbishment Plans Summary of the TDP2021 Capex requirements Risks and conclusions 3 Setting-the-scene Overview and purpose of the TDP Public Forum The objective of the presentation is to: • Contextualise the planning timelines relating to the demand forecast and generation patterns • Share assumptions and results from the Transmission Development Plan 2022 – 2031 • Share information and results relating to the integration of IRP 2019 and address the future network requirements • Share information on the estimated Transmission Capital Investment Requirements for the period 2022 – 2031 • More importantly, to solicit comments and inputs to improve on the Transmission Plans Basis of the TDP 2021 The TDP 2021 was formulated to address the following Attain Grid Code compliance by resolving both substation 1 and line violations (N-1) to ensure network sustainability Determine new network infrastructure requirements to sustain 2 and allow for future demand growth Determine network infrastructure requirements to integrate new 3 generation (Eskom and IPPs) Consider asset replacement requirements to ensure reliability of 4 supply and network optimisation 6 The Different Plans Integrated Resource Plan (IRP) • The Department of Mineral Resources and Energy is accountable for the Country’s Electricity Plan, which is the Integrated Resource Plan (IRP) • The Integrated Resource Plan (IRP) is intended to drive all new generation capacity developments • NERSA licences new generators according to this determination Strategic Grid Plan (SGP) • The Strategic Grid Plan formulates long term strategic transmission corridor requirements • The Plan is based on a range of generation scenarios, and associated strategic network analysis • 20-year planning horizon, updated every 2 - 3 years Transmission Development Plan (TDP) • The Transmission Development Plan (TDP) represents the transmission network infrastructure investment requirements • 10-year planning horizon, updated annually • Indicates financial commitments required in the short to medium term 7 The TDP 2022 - 2031 Assumptions on the Demand Forecast Presented by: Jana Breedt Chief Advisor: Forecasting and Research Presentation overview The purpose of the Transmission demand forecast is to provide and overview of the national grid electricity demand in South Africa that serves as input to the Eskom Transmission Development Plan The presentation outlines the base of the Eskom demand forecast methodology, components used to model the demand forecast and the national forecast scenarios with a provincial break down 9 The future of electricity 2040 + 3rd World energy Outlook 2020 10 Local demand drivers: national overview Infrastructure development Sustainable cost effective electricity Electricity Cloud computing Demand Data Centers Revival of local industries Interconnectivity EVs between locations Renewable to meet demand Generation Hydrogen fuel cell technology Gas to fuel Alternative fuel sources Globalisation CO2 reduction & vs decarbonisation Growing populations Digitalisation Localisation Emerging & markets, Transportation urbanisation investment & Local Heating sources Beneficiation policy security Renewable Mining IMF More Technology technology Manufacturing NDP per capita in home IRP & business 11 SAPP Sustainable capacity demand Peak demand with RE generation Peak demand without RE generation Peak Peak Load Load (GW) (GW) Total Energy Total Energy with RE with no RE (clear day) (cloudy day) 2020 2021 YoY% diff +4% +2,5% -6% -1% TWh GW GW TWh 12 Factors influencing demand uptake Growth Economic recovery rates: Forecasting =Trend x Cycle WB : +4,5% Enabled IMF: +5% Future Only -1% GW demand in 2020 WEC: +5% Rise in commodity prices 2030 > 2,5% Drive to localization Additional generation drive Economic stimulus packages IMF & World Bank investment drives Eskom Turn around strategy Investment Pledges > R500 billion Energy efficiency gains RE integration Capital constraints Political uncertainty Increased planned COVID-19 – Economic down- maintenance turn globally & locally Low Investors confidence Economic lag of 2-5 years 2020 GDP contraction -7% EAF % decrease Generation shortage Financial downgrade 13 Forecast methodology 7 step demand forecast process Transmission national demand forecast scenarios 2022 – 2031 15 Transmission national forecast 2022-2031 Total additional GW in TDP period + 11 GW >8GW + 8 GW Market intelligence Applications and < 1 GW Customer 16 Demand drivers and spatial allocation of demand potential >8 GW potential 3757 Additional MW potential TDP period MI 3290 ICE Total BQ & ICE sources 2500 BQ 2 MW 17 Provincial peak load growth for TDP period Transmission high growth : Mining Total percentage growth per provinceData centers Chrome TDP 2021 Residential Coal developments + 1260 Platinum EV uptake MW Residential + 513 + 3200 MW Manganese + 830 MW Iron ore mining MW smelters + 215 + 1100 MW + 6,7 Billion + 514 MW MW Petrochemical plants + 300 Hydrogen fuel cell + 1200 MW MW Manufacturing Transport Smelters Industry Data Centers Manufacturing Smelters Robotics Residential Ports Agriculture Transport 18 The way forward Renewable energy Network demand • With cost decreasing and RE adoption increasing, worldwide the share of variable renewables expected to expand to 40-70% by 2050 compared to 10% today. • Future electricity systems will need to operate flexibly, enabled by adequate capacity and robust grids to enable future demand. • Electricity demand is growing and an essential catalyst to all economic sectors. • In South Africa the economy needs electricity to drive development and enable growth. • A competitive energy market should be enabled and collaboration formed between investors and planners to enable demand waiting to be ignited. 19 The way forward Renewable energy Network demand • With cost decreasing and RE adoption increasing, worldwide the share of variable renewables expected to expand to 40-70% by 2050 compared to 10% today. • Future electricity systems will need to operate flexibly, enabled by adequate capacity and robust grids to enable future demand. • Electricity demand is growing and an essential catalyst to all economic sectors. • In South Africa the economy needs electricity to drive development and enable growth. • A competitive energy market should be enabled and collaboration formed between investors and planners to enable demand waiting to be ignited. 20 Questions? 21 The TDP 2022 - 2031 Assumptions on the Generation Forecast Presented by: Ronald Marais Senior Manager: Strategic Grid Planning TDP Process Overview Strategic Grid Plan Stakeholder Inputs Grid Code and License Obligation Public Forum Operations Customer Appraisal Applications TDP Appraisal* Feedback Grid overview Conventional Demand ~35GW (205TWh) Grid ~48GW + HVDC 1.5GW Renewable ~6GW Pretoria Cape Town 7686 MW 27355 MW 11814 MW 44155 MW 22% 78% 21% 79% Demand Generation 2 4 Generation Capacity Forecast Co al Total Generation Capacity (MW) 2300 1405 90000 0 80000 Win d 70000 167 60000 5 50000 84121 80821 78552 78552 75171 74502 72646 71977 P 70521 69852 67473 67345 67262 66327 66244 40000 V 63644 62623 61044 58738 58239 56071 55910 55778 54631 30000 177 6 20000 10000 Gas 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 441 8 Total TDP 2020 Total TDP 2021 342 Generation Capacity Comparisons (MW) Col Spatial Considerations  The allocation of Renewables took into consideration the following: - CSIR view on RE potential adjusted for sensitive areas - EIA applications in the past few years from DEA - Grid Planning applications processed thus far - Proximity to major corridors and network • Relocations for earlier years due to network constraints Spatial Allocation – PV Potential Source: https://egis.environment.gov.za/redz 2 8 Spatial Allocation – Wind Potential Source: https://egis.environment.gov.za/redz 2 9 Spatial Allocation – Wind and PV Potential 3 0 Spatial Allocation – EIA Applications Source: https://egis.environment.gov.za/redz 3 1 Spatial Allocation – Applications Potential CSIR Source: https://egis.environment.gov.za/redz 3 2 Spatial Allocation - Applications Eskom & CSIR Provincial Capacity Allocations (MW) Generation Build-up Graph 120000 Net Added 28050 MW 100000 95586 MW -342MW Gas 89987 MW 1000 3000 1600 84121 MW 2088 -11125MW Coal 2500 6000 600 1860 80000 3000 2088 2724 2031 4000 14400 58339 MW 10081 60000 56071 MW 776 3660 600 1418 10489 1860 75 2724 1500 2306 3414 40000 3473 +31648 MW +5600 MW - 11467 MW 19548 +2269 MW RMIPPPP 20000 39493 32028 0 Generation up to RMIPPPP TDP/IRP 2031 Assumed Decommissioning Total 2021 (incl Decom) 3 5 Annual and Total Decommissioning -14050 MW -171 -14000 -1150 -171 -884 -11750 MW -1150 -1120 -12000 -10700 MW -575 -475 -1481 -9050 MW -700 -10000 -8575 MW -950 -1725 -475 -7400 MW -700 -8000 -171 -475 -1725 -171 -5883 MW -700 -475 -1823 -6000 -570 -1481 -2697 MW-2882 MW-3072 MW -2100 -4000 -2583 MW -760 -114 -185 -190 -770 -2000 -550 -2850 -575 -688 - 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Buffer Kriel Arnot Hendrina Duvha Matla Camden Grootvlei Komati Acacia Port Rex Total 3 6 Generation Evolution Charts Cumulative Generation Capacity (MW) 2000 - 2031 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 2012 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Coal OCGT Gas Landfill Gas Nuclear Import Hydro Pumped Storage Hydro Biomass Small Hydro Wind PV CSP Battery Storage 3 7 Generation Evolution Charts Cumulative Generation Percentage 2000 - 2031 Percentage by Type -2031 100% 1% 3% 90% 80% 12% 70% 60% 38% 50% 40% 23% 30% 20% 10% 0% 12% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 1% 5% Coal OCGT Gas Landfill Gas Nuclear Import Hydro 3% 2% Pumped Storage Hydro Biomass Small Hydro Wind PV CSP Battery Storage 3 8 Spatial Allocation – 2031 With Transmission Network Growth Comparison 2022 vs 2031 Spatial Allocation – 2031 Allocations Questions? 43 TDP 2021 Provincial Development Plans Compiled by : Grid Planning Chief Engineers Presented by : Thamsanqa Ngcobo October 2021 Provincial total load growth for TDP period Transmission high growth : Mining Total percentage growth per province Chrome TDP 2021 Coal Platinum 34% Residential 29% 13% Data Centers Manganese 25% Residential Iron Ore mining developments Smelters EV uptake 13% 20% + 6,7 Billion 50% Petrochemical plants 18% Hydrogen Fuel Cell Manufacturing 33% Transport Smelters Industry Data Centers Manufacturing Smelters Robotics Residential Ports Growth Transport Generation and Load Balance LOAD Significant transmission development 22% 78% is required in the northern, central and southern corridors Lower load in the South remains GENERATION 52% 48% Generation increase in the South Northern Cape Province TDP 2022 - 2031 Compiled by: Rashaad Tayob Northern Cape Province Profile LOAD Northern Cape Load Sectors 21% Botswana 27% Commercial North West KOKERBOOM Mining MOOKODI Agriculture & Namibia FERRUM Residential LEWENSAAR OLIEN Free State 52% HARIB UPINGTON PERSEUS ORANJEMOND GARONA BOUNDARY PAULPUTS GENERATION AGGENEIS NIEUWEHOOP GROMIS Prieska NAMA ARIES Van der Kloof 240 MW KRONOS ROODEKUIL VAN DER KLOOF Gariep 360 MW De Aar HELIOS HYDRA Eskom Total 600 MW RUIGTEVALLEI GARIEP Loeriesfontein PV 2 303 MW JUNO Wind 965 MW GAMMA Eastern Cape CSP 600 MW DROERIVIER Small Hydro 10 MW KOMSBERG REIPP Total 3 878 MW Western Cape KAPPA Northern Cape Province Load Forecast 3000 Load Drivers • Natural load growth • Anticipated mining and 2500 smelter load in Kimberley *CAGR = 4,38% and Namaqualand CLNs 2000 1500 +47% Load [MW] 1000 500 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Namaqualand 266 306 476 480 485 490 495 500 505 510 Karoo 348 356 363 370 378 386 394 402 410 413 Kimberley 730 758 788 811 844 872 910 934 959 985 Provincial Peak 1090 1128 1203 1401 1439 1472 1515 1546 1576 1604 2031 Peak 1604 1604 1604 1604 1604 1604 1604 1604 1604 1604 * Compound Annual Growth Rate Northern Cape Province Generation Forecast 12000 10000 8000 6000 MW 4000 2000 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Small Hydro 10 10 10 10 10 10 10 10 10 10 Battery Storage 0 0 0 0 0 0 0 200 200 200 CSP 600 600 600 600 600 600 600 600 600 600 Wind 965 965 965 1365 1665 1965 2315 2615 3315 4315 PV 2303 2403 2403 2403 2403 2403 3053 3603 4153 4653 Cumulative Total 3878 3978 3978 4378 4678 4978 5978 7028 8278 9778 Transmission Development Plan Reliability Plans for the Northern Cape Upington – Ferrum 400 kV line Botswana North West KOKERBOOM Upington 2nd 400/132 kV MOOKODI transformer Namibia FERRUM LEWENSAAR OLIEN Free State UPINGTON HARIB PERSEUS ORANJEMOND Aggeneis – Paulputs 400 kV GARONA BOUNDARY PAULPUTS line AGGENEIS NIEUWEHOOP GROMIS Prieska NAMA ARIES KRONOS ROODEKUIL VAN DER KLOOF De Aar HELIOS HYDRA Aries SVC RUIGTEVALLEI GARIEP Loeriesfontein JUNO GAMMA Eastern Cape Juno – Gromis 400 kV line DROERIVIER Gromis 400/220 kV transformer KOMSBERG Western Cape KAPPA Corridor Strengthening for IRP 2019 Support local generation integration Nam Strengthen 400 kV evacuation corridors Aries – Hydra 2nd 400 kV Corridor Large scale power transfer to load centres 765 kV 400 kV 275 kV 220 kV Substation Strengthening for IRP 2019 Paulputs 400 kV Garona 400 kV Strengthening Strengthening Garona 275/132 kV Upgrade Boundary 400 kV Korana Substation Strengthening Aries – Hydra 2nd 400 kV Corridor Namaqualand 400 kV Hydra B Substation Strengthening Cape Corridor Phase 5 & 6 Gamma 400 kV Strengthening (765/400 kV Strengthening) New New substations transformations Western Cape Province TDP 2022 - 2031 Compiled by: Ahmed Hansa Western Cape Province Profile Transmission Network  400 kV: ~2 800 km  765 kV: ~550 km Juno  14 Substations Vredendal  48 Transformers Northern Cape  16 345 MVA Beaufort West CLNs  Outeniqua Droërivier  Peninsula Kappa Aurora  West Coast Morreesburg Komsberg Ceres Load Malmesbury De Doorns Oudtshoorn 4000 Ankerlig Sterrekus Worcester 3000 Koeberg Paarl Montagu 2000 Acacia PS Proteus George Cape Town Acacia Muldersvlei Philippi Stikland Bacchus Swellendam Knysna 1000 Pinotage Mossel Bay Caledon Gourikwa 0 Palmiet 2012 2013 2014 2015 2016 2017 2018 2019 2020 Hermanus Bredasdorp  Peak load of ~3 800 MW Existing Generating Facilities in the Western Cape Eskom Power Stations Acacia 171 MW Ankerlig 1 327 MW Gourikwa 740 MW Koeberg 1 830 MW Sere 100 MW Palmiet 400 MW Total 4 568 MW RE IPPs PV 134 MW Wind 348 MW Total 482 MW City of Cape Town Total* 258 MW *excludes small scale embedded generation (SSEG) Western Cape Load Forecast 6000 5500 *CAGR = 3,21% 5000 4500 +33% 4000 3500 3000 Load [MW] 2500 2000 1500 1000 500 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 West Coast 507 520 533 553 580 607 636 665 696 728 Outeniqua 847 868 889 915 946 978 1011 1041 1072 1093 Peninsula 2741 2782 2881 2941 3021 3159 3256 3401 3546 3630 Provincial Peak 3757 3825 3947 4042 4168 4348 4493 4679 4867 4991 2031 Peak 4991 4991 4991 4991 4991 4991 4991 4991 4991 4991 * Compound Annual Growth Rate Developments in the Peninsula CLN Ankerlig – Sterrekus 1st and 2nd 400 kV Ankerlig lines – Worcester commissioned Koeberg Sterrekus Relocate Koeberg offsite supply to Paarl Ankerlig Blouberg Muldersvlei Bacchus Operate Koeberg – Acacia PS Acacia 2nd line at Acacia Stikland 400 kV Cape Town Stellenbosch Philippi Erica Pinotage Erica Substation Philippi Mitchells Plain Asteria Substations Lines Pinotage Substation Existing – commissioned Planned Palmiet Developments in the Outeniqua and West Coast CLNs Juno Gamma Vredendal Northern Cape Victoria Beaufort West Droërivier Bokkom Substation Komsberg Kappa (Phase 1) Aurora Komsberg Eastern Morreesburg Cape Bokkom Ceres Malmesbury De Doorns Oudtshoorn Ankerlig Agulhas Sterrekus Paarl Worcester Narina Substation Koeberg Agulhas Substation Acacia PS Montagu Narina Acacia Muldersvlei Proteus George Cape Town Bacchus Knysna Philippi Stikland Swellendam Pinotage Mossel Bay Palmiet Caledon Gourikwa Asteria Asteria Hermanus Substations Lines Bredasdorp Existing Substation Planned Developments to enable IRP 2019 Cape Corridor Cape Corridor Phase 5 and 6 Phase 4 (new 765 kV (2nd 765 kV corridor) line) Juno Gamma Vredendal Droërivier B Aurora – Juno Northern Cape Victoria Substation 2nd 400 kV line Beaufort West Droërivier Komsberg Komsberg Koring Droerivier B Koring Substation – Kappa Substation commissioned Aurora Eastern Morreesburg Komsberg Cape Bokkom Ceres Kappa ext. Malmesbury De Doorns Oudtshoorn Droërivier – Ankerlig Sterrekus 400/132 kV – Paarl Worcester Narina – Koeberg Agulhas Gourikwa commissioned Acacia Montagu Proteus Narina George Cape TownPS Acacia Muldersvlei Stikland Bacchus Knysna 400 kV line Philippi Swellendam Pinotage Mossel Bay Palmiet Caledon Gourikwa Asteria Asteria Hermanus Substations Lines Agulhas Bredasdorp Existing Substation Planned Substation Eastern Cape Province TDP 2022 - 2031 Compiled by: Popi Njapha Eastern Cape Province Profile 2020 Recorded Peak 1545 MW Agriculture 4% Manufacturing 19% 15% Electricity 3% Construction 5% Trade 26% Transport 17% Finance 11% Community services Generation Type Name Output Port Rex 171 MW Peaking Gas Dedisa 372 MW RE IPP Wind & Solar ALL ~1449 MW 23 October 2012 63 Total Installed Generation ~2031 MW Eastern Cape Province Load Forecast Eastern Cape Province Load Profile Actuals and Forecast for TDP period 2022 to 2031 2500,00 2000,00 Tx High Forecast at Province 1500,00 Peak Tx High Forecast at TOSP MW Tx Mod High Forecast at TOSP 1000,00 Tx High Forecast at TOSP 2020 500,00 Tx High Forecast at Province Low Load Tx High Forecast at Province Low 0,00 Load 2020 2029 2021 2022 2023 2024 2025 2026 2027 2028 2030 2031 Main Load Drivers – Coega Idustrial Development Zone • Load commitment is not as fast as anticipated before • Potential risk for major developments with potential step loads • Future Market Developments based on the Market Intelligence: • Manganese smelter • PV Silicon plant • Coega Ridge residential developments with approximately 3800 houses • Automotive Assembly plant • More industrial developments in the future. Eastern Cape Province Load Forecast Eastern Cape Province 3000 Load Forecast (2022 – 2031) 2500 *CAGR = 1.34% 2000 1500 Load [MW] +13% 1000 500 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 East London 832 836 840 844 848 852 856 861 865 871 Port Elizabeth 833 871 876 903 963 968 975 1037 1044 1051 Provincial Peak 1710 1753 1762 1794 1860 1870 1881 1949 1961 1975 2031 Peak 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 Eastern Cape Generation Forecast – IRP 2019 Eastern Cape Generation Forecast 14000 12000 10000 Generation (MW) 8000 6000 4000 2000 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Thyspunt 0 0 0 0 0 0 400 600 800 1000 1000 Ruigtevallei 75 75 75 75 75 75 75 75 75 75 75 Poseidon B 0 0 0 0 0 300 600 800 1000 1150 1150 Poseidon 647 647 647 797 797 797 797 797 797 797 797 Port Rex 171 171 171 171 171 0 0 0 0 0 0 Pembroke 53 53 53 53 53 53 53 53 253 253 253 Iziko 0 0 0 0 400 700 700 750 750 1450 1450 Grassridge 649 724 974 974 974 974 974 974 1174 1174 1174 Dorper 0 0 0 0 0 200 500 500 700 1400 1400 Delphi 100 100 250 250 650 650 650 800 800 800 800 Dedisa 335 983 983 1483 1483 1483 2483 2483 2483 2483 3983 Total 2031 2754 3154 3804 4604 5233 7233 7833 8833 10583 12083 66 Key Projects in the East London CLN Dorper  Pembroke 400 kV  Poseidon – Pembroke  Dorper substation  Poseidon North MTS Integration 400 kV line integration 23 October 2012 67 Key Projects in the Port Elizabeth CLN Poseidon North Poseidon South Grahamstown Hlaziya  Hlaziya integration  Coega Gas Integration  Dedisa 3rd 500  Grassridge 3rd  2x 765kV Gamma- MVA TRFR 500 MVA TRFR  Poseidon South MTS 23 October 2012 Grassridge lines 68  Grahamstown MTS North-West Province TDP 2022 - 2031 Compiled by: Caroleen Naidoo North West Province Profile Load  Peak load of 3307 MW in 2020 Rustenburg CLN Economic Sectors Agriculture North-West 2022 3% Carletonville Community Services CLN 24% Mining 34% Finance 11% ransport Manufacturing 6% TradeContruction Electricity 5% 11% 2% 4% Generation PV 157 MW REIPP Total 157 MW North West Province Load Forecast Load Drivers Rustenburg CLN • Natural load growth • Mining applications • Load shifts from neighbouring provinces Carletonville CLN • Natural load growth • Electrification • Bulk supply applications • Load shifts from neighbouring provinces *Compound Annual Growth Rate Renewable Energy in North West Province Renewable Energy Projections: • Approximately 1 GW in the 10 year horizon • Mookodi substation – 275 MW • Approved 75 MW Waterloo Solar Park • 200 MW PV • Watershed substation – 525 MW • Approved 75 MW Zeerust Solar Park • 450 MW PV • Bighorn substation – 107 MW • Existing 7 MW RustMo1 PV • 100 MW PV 72 Completed Projects Watershed 2nd 250 MVA 275/132 kV transformer commissioned on 2nd September 2021 23 October 2012 73 Available Capacity in North West Province: ~ 4051MW Round 5 applications were focused on integration at Mookodi Substation. Approximately 4051MW can be integrated in the remainder of North West Province in round 6. Mookodi – Ferrum 400 kV line bring power from Northern Cape Province into North West Province. Mookodi Substation is therefore constrained by Mookodi – Mercury 400 kV being the only path 74 to evacuate power from Mookodi Substation. Developments in the Carletonville CLN • Mookodi first 500 MVA 400/132 kV transformer • Mookodi Reactive Compensation • Kimberly strengthening (new corridor from Northern Cape will transverse via Mookodi Mahikeng • Mookodi – Mahikeng 400 kV lines & Mahikeng substation • Pluto – Mahikeng 400 kV line Developments in the Rustenburg CLN • 1x Medupi – Ngwedi 400 kV line (1x 765 kV design) - near Mogwase • Rustenburg Reactive Compensation (Bighorn, Marang and Dinaledi) • Bighorn Extension – near Marikana Limpopo Province TDP 2022- 2031 Compiled by: Caroleen Naidoo Limpopo Province Profile Load  Peak load of 3357 MW in 2020 Economic Sectors Polokwane CLN Limpopo 2022 Agriculture Community 3% Services Phalaborwa CLN 25% Mining 28% Finance 13% Manufacturing Transport Trade 3% Lephalale CLN 5% 16% Electricity Contruction 5% 2% Generation Type Name Output Coal Base Matimba (excl. unit 4) 3325 MW Load Medupi 2382 MW Witkop PV 30 MW Soutpan PV 28 MW Renewables Villa Nora PV 60 MW Total Installed Generation 6490 MW Economic Sectors Limpopo 2022 Limpopo 2031 Agriculture Agriculture Community Services 3% 11% 9% Finance 7% Community Services 25% Mining 28% Transport 5% Trade 10% Mining Finance 37% 13% Manufacturing 3% Electricity Contruction Electricity 5% 7% 12% Contruction Transport 2% 5% Trade Manufacturing 16% 2% North West Province Load Forecast Load Drivers Lephalale Load Growth Drivers: • Electrification • Commercial and light industrial load growth • Platinum and Coal Mining Polokwane Load Growth Drivers: • Electrification • Agriculture • Diamond and Coal Mining Phalaborwa Load Growth Drivers: • Electrification • Agriculture • Chrome Mining *Compound Annual Growth Rate Strengthening associated with Waterberg Generation Pool Musina Thohoyandou Makhado Medupi - Ngwedi 1st 765 kV line (To be energised at 400 kV) Tzaneen Lephalale Phalaborwa Mokopane Medupi - Witkop 400 kV line Steelpoort Tafelkop Borutho - Silimela 400 kV line Strengthening projects for load growth in Limpopo Province Establishment of 400 kV network to the Musina North: - Nzhelele integration Thohoyandou Makhado Establishment of Establishment of 400 kV 400 kV network network to to the the North East: North East: Tzaneen Lephalale Phalaborwa Limpopo East Limpopo East Mokopane Corridor Corridor Strengthening Strengthening (400kV at (400kV at Foskor Foskor and Spencer) and Spencer) Steelpoort Tafelkop Establishment of Establishment of 400 kV 400 kV network network toto the the South: South: Sekhukhune -- Sekhukhune Integration Integration Increase Increase capacity capacity of of Manogeng -- Manogeng existing existing Substations: Substations: Integration Integration -- Warmbad Warmbad Silimela -- Silimela Silimelaintegration integration integration -- Acornhoek Acornhoek -- Leseding Leseding -- Borutho Borutho 23 October 2012 82 Mpumalanga Province TDP 2022 - 2031 Compiled by: Kabir Singh Mpumalanga province profile Load of ~ 4 GW Generation capacity of ~26.5 GW Mpumalanga generation forecast 2022 - 2031 Generation Developments in Mpumalanga • Kusile Integration • Kusile-Duvha • Kusile-Minerva ARNOT • Kusile-Apollo • Kusile-Zeus LULAMISA • Kendal-Zeus VULCAN DUVHA • Kusile-Lulamisa APOLLO MINERVA KENDAL KUSILE ZEUS New 400 kV line Mpumalanga Load Forecast 2022 - 2031 CAGR* = 0.9% 8% Key Growth Drivers Residential Commercial Tourism Mining Industrial development * Compound Annual Growth Rate Strengthening developments in Mpumalanga • Marathon 400 kV integration • N-1 compliance • Creating spare capacity • Increased cross-border transfer capability Marathon 400 kV Integration - Gumeni-Marathon line - 400/132 kV TRFR • Madlanzini 400 kV integration • Creating spare capacity for freight rail project Detail in next slide Madlanzini 400 kV integration Strengthening developments in Mpumalanga • Wonderkrag integration • N-1 compliance • Safety compliance • Creating spare capacity • Fault level mitigation • Emkhiweni integration • N-1 Compliance • Safety related to burning grounds • Creating spare capacity Emkhiweni integration Wonderkrag integration Gauteng Province TDP 2022 - 2031 Compiled by: Thamsanqa Ngcobo Gauteng Province Profile Load  Grid peak demand: ~9 845 MW : 24th July ‘19 PELLY 0% Agriculture DINALEDI Mining 3% Pretoria Manufacturing 15% 27% Electricity KWAGGA 3% Bronkhorstspruit Construction LOMOND 4% TO VULCAN Trade NJALA 14% THUSO TO DUVHA Transport MINERVA APOLLO 24% 10% Krugersdorp LULAMISA TO KUSILE Finance Community TO KENDAL LEPINI ESSELEN services CRAIGHALL WESTGATE SEBENZA PRINCESS Sandton BENBURG PLUTO CROYDON TO MATLA FORDSBURG SIMMERPAN Generation TAUNUS PROSPECT JUPITER B BRENNER NEVIS Soweto EIGER ETNA PIETERBOTH Type / Owner Name MIDAS City Power Kelvin CARMEL HERA BERNINA Rooiwal & Vereeniging City of Tshwane PTA West SNOWDON GLOCKNER KOOKFONTEIN VERDUN OLYMPUS TO GROOTVLEI SCAFELL RIGI LETHABO Gauteng Projects - Complete Lepini Ext. 275 kV 2x150 MVar Capacitors - supports the Minerva- Lepini – Craighall 275 kV ring which supplies the northern suburbs of JHB (Sandton, Midrand, Tembisa) - 23 October 2012 92 Gauteng Projects in Execution Sisimuka 88 kV Busbar • 1st phase of converting Simmerpan to a 275/88 kV sub • supplies growth in Germiston area 93 Gauteng Projects in Execution Benburg Ext. 3rd 250 MVA 275/132 kV Transformer • Supports network reliability in the East Rand 94 Gauteng Load Forecast Growth drivers: - Residential, - Commercial, & - Light industrial Growth Nodes: - Northern Suburbs - West Rand - East Rand - Tshwane * Compound Annual Growth Rate Developments in the JHB East & South Area Key Projects Apollo Tembisa • Mesong Substation Esselen Chloorkop • Jupiter B Kempton Park integration & Matla- Mesong Benburg Jupiter 400 kV line Sebenza (operated at 275 kV) Edenvale Isando Croydon • Sisimuka Johannesburg Sisimuka East Rand Substation Fordsburg Germiston To Matla (Mpumalanga) Prospect Jupiter • Lesokwana Jupiter B Substation JHB Alberton Brenner Eiger Vosloorus Lesokwana To Lethabo To Snowdon Developments in the Tshwane Area Key Projects Warmbad • Diphororo Pelly Substation Soshanguve • Wildebees Dinaledi DIPHORORO integration Mamelodi Pretoria WILDEBEES Kwagga Bronkhorspruit Lomond Centurion Vulcan Njala Thuso Apollo Kusile Duvha Minerva PLUTO Lulamisa Esselen CROYDON Matla Kendal Zeus Developments in the JHB North Area Key Projects Tshwane Irene Thuso To Kusile (Mpumalanga) • Kusile-Lulamisa To Pluto 400kV line (North West) Apollo Minerva • Apollo-Lepini 2nd 275kV line Lulamisa Midrand Diepsloot • New MTS Sesiu Tembisa 400/88kV Kyalami Lepini Kempton Park • New MTS Kyalami 400/88kV Sesiu Sebenza Cosmo City Craighall • New MTS Donatello 400/88kV Sandton Donatello West Rand East Rand JHB Developments in the West Rand & Vaal Area Key Projects • 2x Etna – Glockner Westgate Roodepoort 400 kV lines Randfontein (operated at 275 NORTH WEST Princess kV) Pluto Westonaria Soweto JHB • Quattro Substation Quattro Taunus • Her-Westgate 400 West Rand Lenasia kV line Etna Hera Bernina Meyerton Vaal Glockner FREE STATE KwaZulu-Natal Province TDP 2022 - 2031 Compiled by: Thokozani Bengani KwaZulu-Natal Province Profile Load 2020 Peak Demand: 5904 MW Pongola Mkuze Agriculture Mining Newcastle 4% 2% Vryheid Community Dundee Services Manufacturing Ladysmith 25% 17% KwaZulu-Natal Richards Bay Electricity 4% Estcourt Construction Finance 3% KwaDukuza 16% Trade 16% Transport Durban 13% Generation Type Name Output Harding Pumped Drakensberg 1000 MW Port Shepstone Peaking Storage Ingula 1330 MW Existing Substations Existing Lines IPP Gas Avon IPP 680 MW Total Installed Generation 3010 MW KwaZulu-Natal Load Forecast 9000 *CAGR = 1.98% 8000 7000 +19% 6000 Load [MW] 5000 4000 3000 2000 1000 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Ladysmith 392 395 398 404 413 420 429 438 445 452 Newcastle 626 623 620 617 635 653 672 691 700 708 Empangeni 2046 2051 2056 2206 2225 2244 2267 2495 2635 2649 Pinetown 3751 3781 3817 3853 3928 4004 4081 4161 4227 4294 Provincial Peak 6341 6373 6411 6597 6707 6818 6935 7260 7474 7562 2031 Peak 7562 7562 7562 7562 7562 7562 7562 7562 7562 7562 Growth drivers in the province: Commercial, Light industrial, Residential, Tourism & Electrification KwaZulu-Natal Transmission Development Plans Northern KZN Strengthening: Iphiva 400/132 kV Substation Drivers for demand growth are electrification, tourism and agro processing Ermelo-Richards Bay Freight Rail Strengthening: Duma & Nzalo Substations Required to improve security of supply and to increase tonnage capacity KwaZulu-Natal Empangeni Strengthening: Mbewu 400 kV Switching Station Associated 765 kV and 400 kV lines Required to increase power transfers to coastal towns and to facilitate integration of gas power plants in Richards Bay South Coast Strengthening: Ariadne- Eros 2nd 400 kV Line Required to create capacity to meet demand growth and to improve the security of supply KwaZulu-Natal Transmission Development Plans Pinetown Strengthening: Isundu 400 kV Switching Station Associated 765 kV & 400 kV lines Required to provide network redundancy and to increase power transfers to the southern parts of KwaZulu-Natal KwaDukuza Inyaninga 400/132 kV Substation Required to supply the Dube Tradeport as well as commercial and residential developments in eThekwini Metropolitan and KwaDukuza Municipality Shongweni 400/132 kV Substation Required to supply commercial and residential developments around Hillcrest, Ntshongweni and Cato Ridge Free State Province TDP 2022 - 2031 Compiled by: Thokozani Bengani Free State Province Profile Load 2020 Peak Demand: 1584 MW Sasolburg Agriculture 6% Free State Mining Welkom Community 10% Harrismith Services 27% Dealesville Manufacturing Excelsior 11% Bloemfontein Electricity 4% Finance Construction 16% 2% Trade Transport 14% 10% Generation Existing Substations Existing Lines Type Name Output Base Coal Lethabo 3558 MW Hydro IPPs 4.4 MW IPP PV IPPs 199 MW Total Installed Generation 3761 MW Free State Load Forecast 3000 *CAGR = 2.7% 2500 2000 +27% Load [MW] 1500 1000 500 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Bloemfontein 460 462 466 470 473 477 481 493 505 517 Sasolburg 660 670 662 679 688 705 721 728 782 789 Welkom 841 848 855 864 872 881 889 898 908 918 Provincial Peak 1694 1709 1714 1737 1755 1779 1802 1827 1885 1910 2031 Peak 1910 1910 1910 1910 1910 1910 1910 1910 1910 1910 Growth drivers in the province: Commercial, Light industrial, Logistics & Electrification Free State Transmission Development Plans Dealesville 400/132 kV Substation Required to facilitate the integration of renewable energy sources around Dealesville Sasolburg Network Reinforcement: Igesi 275/88 kV Substation Free State Required to enable industrial developments and to reduce high fault currents in the transmission network Harrismith Strengthening: Sorata 275/132 kV Transformers & Sorata- Tugela 275 kV Line 2 Drivers for demand growth are electrification, commercial developments and logistics Questions? 109 Summary of the Transmission Refurbishment Plans FY22 - FY31 Presented by: Atha Scott Senior Manager: Asset Investment Planning Substation Asset Condition Assessment: Main Asset Classes National View 10/29/2021 111 Overhead Lines Asset Condition Assessment: Main Asset Classes National View 10/29/2021 112 Assets replaced and planned for replacement 113 Substation Asset Condition Assessment and Plan 10/29/2021 114 Capital projects allocation within the Refurbishment Plan Capital Projects Allocation FY22-31 10% 6% 31% 4% 1% 1% 0.6% 47% Substation Plant Specific Line National Control Production Equipment Properties Health & Safety Environmental 10/29/2021 115 Top Provincial Refurbishment Projects: 2022 - 2031 Matimba 5 x 275kV LEGEND Kruispunt Refurb Lines PHOKOJERefurb Nzhelele Refurb Projects in execution Watershed Refurb Warmbad Refurb TABOR Prairie Refurb Projects in development SPENCER MEDUPI MATIMBA MASA FOSKOR Projects in concept Craighall BORUTHO WITKOP LESEDING Refurb ACORNHOEK Manogeng MERENSKY Komatipoort FS CT SENAKANGWEDI SPITSKOP Refurb Aggeneis Replacements DINALEDI SIMPLON Diphororo KOMATIPOORT Refurb Eiger Refurb NGWEDI Emkhiweni MARATHON APOLLO KUSILE MAPUTO GUMENI ARNOT Scafell Refurb WATERSHED MINERVA KOMATI Ferrum Refurb MATLA GROOTVLEI TUTUKA Vulcan Refurb Oranjemond KOKERBOOM MOOKODI CAMDEN EDWALENI HERMES ZEUS ALPHA MADLANZINI Refurb Hydra-Perseus MERCURY NORMANDIE 765kV Guy Anchor FERRUM MAJUBA INCANDU Fordsburg ORANJEMOND LEANDER Refurb Upington OLIEN EVEREST UMFOLOZI PERSEUS INGULA HARIB THESEUS PEGASUS BETA DRAKENSBERG INVUBU PAULPUTS GARONA BOUNDARY MERAPI VENUS MERSEY ATHENE Gromis Refurb AGGENEIS NIEUWEHOOP HARVARD Bloedrivier GROMIS ARIES HECTOR Korana Refurb NAMA Groeipunt ARIADNE KRONOS VAN DER KLOOF ROODEKUIL SERUMULA KLAARWATER EROS Ingagane HELIOS HYDRA Refurb RUIGTEVALLEI Aurora SS GAMMA Georgedale IZIKO VUYANI Refurbishment JUNO Refurb DELPHI DROERIVIER Komsberg POSEIDON Muldersvlei SS AURORA Refurb Blouwater KAPPA PEMBROKENEPTUNE STERREKUS GRASSRIDGE Buffalo SS KOEBERG BACCHUS PROTEUS Acacia SS ACACIA 116 DEDISA Refurb Narina Grassridge Pembroke SS Refurb PALMIET Agulhas SS Refurb Transmission Development Plan 2022 – 2031 Summary and Capex Analysis By: Leslie Naidoo Senior Manager: Transmission Grid Planning Investments in the Eskom power system in the past 10 years: 7.9 GW of generation, ~ 4800 km of transmission lines, and ~ 20.5 GVA of transformation capacity Generation Integration (MW) Transmission lines (km) Transmission Substations (MVA) 29 October 2021 Major Transmission expansion projects completed in the last 10 years Lines commissioned: 4 800 km Witkop – Tabor Medupi Phase 1 PHOKOJE Substations commissioned: 13 Integration Nzhelele 400 kV Transformations commissioned: 20 520 MVA TABOR SPENCER MEDUPI MATIMBA Lowveld Tshwane Network MASA FOSKOR BORUTHO WITKOP Strengthening Strengthening LESEDING MERENSKY ACORNHOEK Kimberley Manogeng SPITSKOP SENAKANGWEDI Strengthening Silimela Sekhukhune DINALEDI Diphororo SIMPLON NGWEDI Kusile KOMATIPOORT Wildebees Emkhiweni MARATHON APOLLO KUSILE GUMENI Integration MAPUTO Northern Cape Mahikeng WATERSHED ARNOT MINERVA KOMATI Strengthening MATLA GROOTVLEI TUTUKA KOKERBOOM MOOKODI CAMDEN EDWALENI HERMES ZEUS ALPHA MADLANZINI Upington MERCURY NORMANDIE Substation FERRUM MAJUBA INCANDU Iphiva NZALO ORANJEMOND LEANDER LEWENSAAR OLIEN EVEREST INGULA UMFOLOZI HARIB PERSEUS THESEUS Duma BETA PEGASUS Isundu ` DRAKENSBERG Mbewu INVUBU PAULPUTS GARONA BOUNDARY MERAPI VENUS ATHENE Namaqualand AGGENEIS MERSEY NIEUWEHOOP HARVARD Strengthening GROMIS HECTOR Korana ARIES NAMA Groeipunt Inyaninga KRONOS ARIADNE ShongweniMajuba – VAN DER KLOOF KLAARWATER Umfolozi ROODEKUIL SERUMULA EROS HELIOS HYDRA RUIGTEVALLEI Everest - Merapi GAMMA VUYANI Strengthening JUNO IZIKO Cape Corridor DELPHI DROERIVIER 765 kV East London Komsberg POSEIDON Strengthening AURORA Ankerlig - Sterrkus Blouwater KAPPA PEMBROKENEPTUNE Strengthening STERREKUS GRASSRIDGE KOEBERG BACCHUS PROTEUS Pinotage ACACIA 119 Narina DEDISA Substation PALMIET Agulhas Thyspunt DMRE IPP programme overview – end August 2021 REIPP REIPP REIPP REIPP REIPP Small Peakers RMIPPP BW1 BW2 BW3&3.5 BW4&4B BW5 1-5 2 projects 28 projects 19 projects 18 projects 26 projects 11 projects TBA projects 20 projects 1200 MW 1436 MW 1054 MW 1656 MW 2205 MW ~2000 MW ~2600 MW MW TBD All projects All projects All projects 17 projects 19 projects Projects in Projects in Projects in connected connected connected. connected, connected, evaluation evaluation RFP stage 1 project in and 7 in stage by stage by execution execution IPPO IPPO phase phase 12151 MW from >130 individual projects (The capacity for individual Smalls REIPP project TBD) 85 projects totalling 6420 MW have been commissioned, of which 5423 MW is from RE Sources • Eskom has committed Capital to enable the integration of successful bidders (Bid Window 1 – 4B, including Small REIPPs) into the National Grid. 29 October 2021 120 Recap: Assumptions on the demand forecast Contracted NMD IPR2019 Demand F/cast 121 Recap: Assumptions on the generation pattern (Eskom) Generation Allocation For the 2031 Network Matimba (REBID Windows 1 to 4) Medupi Kusile North-East Central Power Pool Power Pool 1500 WW Coal potentially at 2088 MW of Battery Waterberg and Storage across the Drakensberg Mpumalanga network Ingula 6400 MW of PV generation Across different regions in South Africa DOE OCGT 1 & 2 3000 MW of Gas potentially at Dedisa, 14 400 MW of Wind generation Athene and Saldanha Potentially across the W Cape, N Cape and E Cape Ankerlig CCGT - potentially at Gourikwa Koeberg Dedisa and Ankerlig Transmission integration plans for the IRP 2019 Projects to enable future RE integration - Aggeneis – Aries line - Aries – Hydra line - Ferrum – Hotazel – Mookodi – Hermes line - Aries – Upington line - Aggeneis - Nama - Gromis line - Aggeneis - Paulputs line - Ferrum – Upington line - Grassridge – Thyspunt line Mahikeng LOMOND KOKERBOOM MOOKODI MOOKODI ZEUS ALPHA Hotazel MERCURY EVEREST FERRUM ORANJEMOND LEANDER UPINGTON PERSEUS UPINGTON PERSEUS THESEUS HARIB Dealesville BETA GARONA GARONA Nama PAULPUTS PAULPUTS NIEUWEHOOP GROMIS AGGENEIS AGGENEIS ARIES NAMA Groeipunt KRONOS Groeipunt KRONOS Hydra B HYDRA SERUMULA EROS HELIOS HELIOS Dorper RUIGTEVALLEI GAMMA VUYANI GAMMA IZIKO IZIKO JUNO JUNO DROERIVIER DELPHI DELPHI DROERIVIER Komsberg POSEIDON POSEIDON B NEPTUNE AURORA Komsberg AURORA Blouwater KAPPA KAPPA GRASSRIDGE KOEBERG BACCHUS BACCHUS PROTEUS PROTEUS ACACIA DEDISA PALMIET Agulhas MULDERSVLEI Thyspunt Pinotage GOURIKWA Major projects planned in the TDP period LEGEND Medupi Phase 2 Nzhelele PHOKOJE Integration Integration Jhb South Nzhelele Projects in execution Strengthening TABOR Projects in development SPENCER Lowveld Jhb East MEDUPI MATIMBA MASA Strengthening Projects in concept Strengthening WITKOP FOSKOR BORUTHO LESEDING NW / Kimberley MERENSKY ACORNHOEKKusile Manogeng Strengthening SENAKANGWEDI SPITSKOP Silimela Integration DINALEDI Sekhukhune Diphororo SIMPLON KOMATIPOORT NGWEDI Wildebees Emkhiweni MARATHON KUSILE MAPUTO Mahikeng APOLLO GUMENI Highveld South ARNOT Upington Phase 2 WATERSHED MINERVA MATLA KOMATI Integration GROOTVLEI TUTUKA Substation KOKERBOOM MOOKODI CAMDEN EDWALENI Hotazel HERMES ZEUS ALPHA MADLANZINI Northern Cape MERCURY NORMANDIE Strengthening FERRUM MAJUBA INCANDU Iphiva NZALO ORANJEMOND LEANDER Upington OLIEN EVEREST UMFOLOZI PERSEUS INGULA Duma HARIB THESEUS PEGASUS BETA Isundu ` DRAKENSBERG Mbewu INVUBU PAULPUTS GARONA BOUNDARY MERAPI VENUS MERSEY ATHENE AGGENEIS Empangeni NIEUWEHOOP HARVARD GROMIS ARIES HECTOR Strengthening Korana NAMA Groeipunt Inyaninga KRONOS ARIADNE Shongweni VAN DER KLOOF ROODEKUIL SERUMULA KLAARWATER EROS Pinetown HELIOS HYDRA Strengthening RUIGTEVALLEI West Coast KZN South GAMMA VUYANI Strengthening JUNO IZIKO Strengthening DELPHI DROERIVIER Bloemfontein Komsberg POSEIDON Strengthening AURORA Blouwater KAPPA PEMBROKENEPTUNE STERREKUS GRASSRIDGE East London Peninsula / KOEBERG BACCHUS PROTEUS Strengthening Mitchells Plain ACACIA 124 DEDISA Port Elizabeth Narina PALMIET Agulhas Thyspunt Strengthening TDP 2021 Project Life Cycle Model (PLCM) summary Transmission TDP 2021 Project Life Cycle Model (PLCM) Capex summary: Challenges / Actions: Expansion (new build) • Based on the network Refurbishment (life extensions) R22.9bn R162.4bn requirements, ~ 8400km of power lines and 119 X # of expansion projects 18.2 transformers are expected X # of refurb projects R59bn 4.7 between 2022 – 2031 52.3 Key Challenges: R80.5bn 6.7 • Capex constraints 140.9 • Servitude acquisitions Includes R22.5bn for • Supplier and construction the RE in the 70.4 capability IRP2019 10.1 21.5 Actions taken: Concept phase Definition phase Execution phase Total • Prioritisation of the project portfolio 64 47 43 154 • Maximise of available capex • Re-align the plan taking into 457 130 336 923 consideration the key challenges Summary of Transmission infrastructure requirements over the TDP period 2022 – 2031 ~ 8406 km of line: ~ 119 transformers ~ 58 GVA: 5808 124% 140% 73% 94% 2598 1504 • Compared to the previous 5 years: 73% increase in line construction 94% increase in transformer units • The following 5 years (FY27 – FY31): 124% increase in line construction 140% increase in transformer units 126 TDP 2021 Capex Analysis Transmission capital expenditure drivers 1. Capacity Expansion and Network Strengthening: • Integration of new generation (~30GW) as per the IRP2019 in areas with limited networks • Investments in “back-bone” strengthening to dispatch power to the major load centres • Connection of committed customer loads (Accepted / issued Budget Quotes) • Reliability Investments (N-1) for network sustainability • Mitigation of Fault-level Exceedances (existing and anticipated) • Securing of Servitudes and Environmental Authorisations • Compliance (Regulatory, OHSAct, Environmental etc.) 2. Refurbishment (i.e. Extension of Life of Existing Assets): Implementation of the Transmission Sustainability Improvement Plan to address: • Maintenance “backlogs” due to outage challenges and increased failure rate of ageing plant • Refurbishment of ageing equipment (CTs, VTs, Surge Arresters, H.V. Circuit Breakers and Power Transformers, Protection and Control Systems) • Refurbishment of ageing and “obsolete” telecommunications infrastructure • Asset Performance Improvements (lines and substation equipment) • Security improvements and surveillance and monitoring at our key assets and sites • Strategic and operational spares holding (to reduce SML<1 and MI risk) • Compliance (Regulatory, OHSAct, NKP Act, Environmental etc.) 128 Transmission 10 year CAPEX Plan: FY2022 - 2031 Summary of Transmission Capex Plan (R Million) FY 2022 – 2031 Transmission Capex Total IRP 2019 Categories (Rmil) FY 22 - FY30 Capacity Expansion 140 853 N-1 Refurbishment 21 453 EIA & Servitudes 3 276 Strengthening Telecommunications 5 753 Production Equipment 959 Startegic Spares 6 148 178 442 129 Capex observations The total Transmission Capital Plan amounts to R178 billion over the TDP period 2022 – 2031 of which: • R144 billion is required for reliability (N-1) projects, integration of committed generation (Medupi, Kusile, IPPs up to Bid Window 4B), integration of the IRP2019 projects, connection of new loads onto the system and to acquire the necessary Servitudes • R34 billion is required for Refurbishment, production equipment, Telecoms and Strategic Spares 29 October 2021 130 Risks and challenges • Decision on future MYPD applications may impact Eskom’s revenue stream and hence the execution of the TDP • Network capacity constraints especially in areas with potential for RE resources requires an acceleration to the TDP implementation plan • Servitude acquisitions still remains a huge risk and we appeal for support from all concerned (Local and National Authorities, land owners, developer etc.) to come together to resolve this challenge • Capacity and capability across the engineering, supplier and construction value chain in the Country • Capex requirements to fund the new network infrastructure and replacement of inadequate assets especially in the later years ie. beyond FY26 131 Implementation the TDP 2021 Established the TDP Delivery Steering Committee, a subcommittee of the Transmission Board and focusing on the following: • Resource analysis across the engineering and construction value chain • Commenced project development to expedite works in Concept / Definition phase in readiness for execution • Exploring opportunities to “unlock” the capex requirements for the TDP • Stakeholder engagement to seek the necessary support to assist in “fast- tracking” some of the challenges eg. EIAs, servitude acquisitions, • Programme office has been established to drive the TDP roll-out programme 132 Closing remarks  The success of the TDP 2021 requires a concerted effort by all role players including our stakeholders in Government, Customers, the various RE associations, as well as the Supplier and Construction industry across the engineering value chain.  In closing I wish to emphasize that our role in Transmission is to provide open and transparent access to the power system. Questions? 134 Questions? 135 Thank you 136