Transcript Document

SAPP Priority Projects for
Investor Consideration &
Funding
1
SOUTHERN AFRICAN POWER POOL
CONTENTS
1. BACKGROUND
2. SELECTION CRITERIA
3. SAPP PRIORITY PROJECTS
4. LONG-TERM PROJECTS
5. STRATEGIC CONSIDERATIONS
6. CONCLUSION
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SOUTHERN AFRICAN POWER POOL
1. BACKGROUND

The demand for power in Southern African is increasing at a rate
of about 3% per annum due to increased economic activities
resulting in diminishing generation surplus capacity.

Investment in both generation and transmission infrastructure is
required to copy with increased demand. The expected benefits
would include:



3
Increased economic activities in the region
Job creation and poverty reduction
Technology transfer and capacity building

SAPP has formulated Project Listing which is expected to act as
a project guideline to Investors, Public & Private Sector
Participation.

This presentation ends with a listing of the SAPP priority
projects for investor consideration and financing.
SOUTHERN AFRICAN POWER POOL
SAPP Projects currently in progress
Country
Project Name
South Africa
South Africa
Zambia
Zambia
South Africa
South Africa
Swaziland
Zambia
Zambia
Angola
Angola
South Africa
South Africa
South Africa
South Africa
Zambia
Zambia
ESKOM_ Camden
ESKOM_ Arnot
Kafue Upper expand
Kariba North Refurbishment
ESKOM_ Arnot
ESKOM_ Camden
Maguga
Kafue Upper expansion
Kariba North Refurbishment
Capanda Units 3 & 4
Lobito
ESKOM_ Arnot
ESKOM_ Camden
ESKOM_ Grootvlei
Open Cycle Gas Turbine
Kafue Upper expansion
Kariba North Refurbishment
TOTAL
R = Rehabilitation,
Capacity
[MW]
Type
380
20
30
30
40
380
20
30
30
260
83
40
570
188
1050
30
30
Coal
Coal
Hydro
Hydro
Coal
Coal
Hydro
Hydro
Hydro
Hydro
Gas
Coal
Coal
Coal
OCGT
Hydro
Hydro
Estimated
Expected
Feasibility
Project
Commissioning
S tudy
Cost US D
Year
Complete
[M]
2005
2005
2005
2005
2006
2006
2006
2006
2006
2007
2007
2007
2007
2007
2007
2007
2007
3,211
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
80
4.4
20
20
25
80
30
20
20
344
25
120
105
477
20
20
Category
R
R
R
R
R
R
NG
R
R
NG
NG
R
R
R
NG
R
R
1,410
NG= New generation
NOTE: Above projects not subjected to a selection criteria
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SOUTHERN AFRICAN POWER POOL
2. SELECTION CRITERIA
7 key aspects were considered as follows:
Size of the project [MW]
Levelised costs [USD/MWh]
Transmission integration
Economic impact
Percentage off-take committed [PPA, MoU, etc]
Regional contribution as a percent of project
capacity
7. Number of participating countries
1.
2.
3.
4.
5.
6.
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SOUTHERN AFRICAN POWER POOL
Notes:
1. Risk assessment - African Leaders are addressing the
perceived “country risks” of doing business in Africa
via the NEPAD initiative.
2. Capital cost - When hydro projects are compared to
either gas or coal fired projects, the initial capital cost
for a hydro is high, yet the levelised cost over a period
of time, say 20 years, is lower.
3. Environmental Impact Assessment (EIA) and feasibility
studies are key aspects to be considered in project
selection and listing.
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SOUTHERN AFRICAN POWER POOL
Item
No
Weight
%
1
Weak
2
3
4
Below
Standard
Above
Standard
Standard
5
Best
1
Size of Project, MW
15
<50
50-200
200-500
500-1000
>1000
2
Levelised costs in Country (Including
Transmission Lines), USD/MWh
25
>=50
43 - 49
36 - 42
29 –35
<=28
3
7
Key Aspects
Transmission integration
aspects/stability/ technology
10
>750km
101750km
50-100
Mainlykm <50km
national
Balance
Little
impact between
impact, National
jobs,
regional
limited to impact >GDP and
and
small only -jobs,
some
national
area
>GDP
regional
impact
Existing
infrastruc
ture, plug
in
Mainly
regional
impact jobs, >
GDP
4
Economic impact
10
5
15
<20
21 - 35
36 - 50
51 - 80
>80
6
Percentage off-take committed
Regional contribution as a % of
project capacity
(Including import replacement)
15
<20
21 - 35
36 - 50
51 - 80
>80
7
Number of participating member
countries
10
1
1
2
3
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SOUTHERN AFRICAN POWER POOL
3. SAPP PRIORITY PROJECTS
The SAPP priority projects are as follows:
8
1.
Rehabilitation & associated transmission projects
2.
Short-term generation projects
 Expected to be commissioned by 2010
 Completed feasibility studies
 Approved Environmental Impact Assessment
3.
Transmission projects aimed at interconnecting
non-operating members
SOUTHERN AFRICAN POWER POOL
3.1
Rehabilitation Projects
Country
Project Name
DRC
Zimbabwe
DRC
DRC
Malawi
Angola
DRC
DRC
Inga-1 Refurbish
Hwange Rehabilitation
Inga-2 Refurbish
Koni
Tedzani 1 &2
Gove
Nzilo
Nseke
Mavuzi & Chicamba
Mozambique
DRC
Zongo
DRC
Mwadingusha
DRC
Sanga
TOTAL
9
Expected Feasibility Estimated
Commission Study Project Cost
ing Year Complete USD [M]
Capacity
[MW]
Type
110
80
486
42
40
60
27
62
Hydro
Coal
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
2007
2007
2008
2008
2008
2008
2009
2009
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
78
30
160
15
12
58
28
56
No
No
No
No
No
No
No
No
34
24
62
8
Hydro
Hydro
Hydro
Hydro
2009
2010
2010
2010
Yes
Yes
Yes
Yes
30
20
30
6
No
No
No
No
1048
Funding
Availability
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TRANSMISSION INTEGRATION PROJECTS FOR GENERATION REHABILITATION
Interconnector Description
MW
Feasibility Cost
Year Status Study USD[M] Country
Triangle - Orange Grove 330 kV line & Substation
Second Alaska - Sherwood 330 kV line
Hwange - Livingstone -Kafue 330 /220 kV
Zambia -Namibia HVDC (220 kV DC)
Livingstone - Katima Mulilo 220kV 2nd line
Kolwezi - Solwezi 330 kV
DRC Reinforcement (2x 500 kV DC Inga-Kolwezi)
Karavia - Luano 330 kV
Second ZESA -Eskom 420kV line
650
650
650
200
300
800
840
600
2007
2008
2008
2008
2009
2009
2010
2009
NTC
NTC
NTC
NT
NT
NT
NT
NT
Yes
No
No
Yes
Yes
No
Yes
No
49.2
15.5
42.5
220
45
25
170
93
Zimbabwe
Zimbabwe
Zimbabwe /Zambia
Zambia, Namibia
Zambia, Namibia
DRC, Zambia
DRC
DRC, Zambia
650
2008
NT
Yes
46.1
Zimbabwe, RSA
Total
706.3
The above transmission projects are essential to support
rehabilitation projects:
1. Reduce congestion
2. Evacuation of power to load centre
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SOUTHERN AFRICAN POWER POOL
3.2
Short-Term Generation Projects
SHORT-TERM GENERATION PROJECTS (2005-2010)
Capacity
[MW]
Type
Expected
Commissioni
ng Year
Feasibility
Study
Complete
Estimated
Project Cost
USD [M]
Funding
Availability Category
Country
Project Name
Tanzania
Ubungo
60
Gas
2006
Yes
45
N
NG
Zimbabwe
Zambia
Gairezi Hydro Generation
Itezhi-Tezhi
35
120
Hydro
Hydro
2007
2008
Yes
Yes
35
142
N
N
NG
NG
Zambia
Kariba North Bank Extension
360
Hydro
2009
Yes
192
N
NG
Zimbabwe
Kariba South Extension
300
Hydro
2009
Yes
200
N
NG
Zimbabwe
Hwange Expansion
600
Coal
2009
Yes
500
N
NG
Malawi
Kaphichira Phase-2
64
Hydro
2009
Yes
50
N
NG
Mozambique Massingir
28
Hydro
2009
Yes
55
N
NG
Zambia
Kafue Gorge Lower
600
Hydro
2010
Yes
600
N
NG
Botswana
Morupule Expansion
400
Coal
2010
Yes
600
N
NG
Mozambique HCB North Bank
850
Hydro
2010
Yes
771
N
NG
Namibia
800
Gas
2010
Yes
640
N
NG
Kudu
TOTAL
4217
3830
NG= New generation
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SOUTHERN AFRICAN POWER POOL
3.3
Country Capacity Contribution
REHABILITATION & SHORT TERM PROJECTS
12
Country
Capacity, MW
%
Angola
60
Botswana
GENERATION PROJECTS IN PROGRESS
1.1%
Country
Angola
Capacity, MW
343
%
7.4%
400
7.6%
South Africa
4098
88.3%
DRC
834
15.8%
Swaziland
20
0.4%
Malawi
104
2.0%
Zambia
180
3.9%
Mozambique
912
17.3%
TOTAL
4641
Namibia
800
15.2%
Tanzania
60
1.1%
Zambia
1080
20.5%
Zimbabwe
1015
19.3%
TOTAL
5265
SOUTHERN AFRICAN POWER POOL
3.4 Transmission Projects
Transmission projects are classified as follows:
i.
Outstanding transmission interconnectors whose aim
is to interconnect non-operating members of the
SAPP to the SAPP grid:
 Malawi-Mozambique interconnector,


ii.
Zambia-Tanzania-Kenya Interconnector, and
Westcor project.
Transmission interconnectors aimed at relieving
congestion on the SAPP grid, and
iii. New transmission interconnectors aimed to evacuate
power from generating stations to the load centres.
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SOUTHERN AFRICAN POWER POOL
3.5
Summary of Transmission Projects - 1
TIE LINES TO INTERCONNECT NON-OPERATING MEMBERS
Interconnector Description
Mozambique - Malawi (2 X 220 kV)
Zambia -Tanzania - Kenya 330 kV:
Pensulo-Mbeya-Singida (Single
circuit)
WESTCOR - Inga -Kwanza- AuasGaborone-Pegasus)
MW
Year
Feasibility
Study
Status Complete
Cost
USD[M] Country
Mozambique,
Malawi
250
2008
P
Yes
85
200
2007
P
Yes
330.3
Zambia, Tanzania, Kenya
3000
2012
P
No
3500
Angola, DRC, Namibia, Botswana, RSA
TRANSMISSION CONGESTION RELIEF PROJECTS
Interconnector Description
MW
Year
Triangle - Orange Grove 330 kV line & Substation650
Project 2007
Second Alaska - Sherwood 330 kV line
650
2008
Hwange - Livingstone -Kafue 330 /220 kV
Project
650
2008
14
Status
NTC
NTC
Feasibility
Study
Yes
No
NTC
No
Cost USD[M] Country
49.2
Zimbabwe
15.5
Zimbabwe
42.5
Zimbabwe /Zambia
SOUTHERN AFRICAN POWER POOL
3.5
Summary of Transmission Projects - 2
INTERCONNECTORS TO INCREASE TRADE / TRANSFER CAPABILITY
Feasibility
Cost
Interconnector Description
MW
Year
Status
Study
USD[M]
Zambia -Namibia HVDC (220 kV DC)
Livingstone - Katima Mulilo 220kV 2nd line
Tanzania - Zambia 330 kV Phase 2:
200
300
2008
2009
NT
NT
Yes
Yes
220
45
Zambia, Namibia
Zambia, Namibia
Pensulo-Mbeya-Singida (second circuit)
200
2012
NT
No
289.8
Zambia, Tanzania
Kolwezi - Solwezi 330 kV
DRC Reinforcement (2x 500 kV DC Inga-
800
2009
NT
No
25
DRC, Zambia
Kolwezi)
Karavia - Luano 330 kV
Second Interconnector ZESA -Eskom
420 kV
840
600
2010
2009
NT
NT
Yes
No
170
93
DRC
DRC, Zambia
650
2008
NT
Yes
46.1
Zimbabwe, RSA
15
Country
SOUTHERN AFRICAN POWER POOL
4. LONG-TERM GENERATION PROJECTS
LONG TERM GENERATION PROJECTS (2011 )
Type
Expected
Commissioni
ng Year
Feasibility
Study
Complete
50
Hydro
2011
No
38
N
NGN
Capacity
[MW]
Country
Project Name
Tanzania
Tegeta
Tanzania
Kinyerezi
200
Hydro
2011
No
190
N
NG
Zimbabwe Mini Hydro Generation
15.5
Hydro
2011
Pre-feasibility
19.5
N
NG
Zimbabwe Lupane
300
Gas
2011
In Progress
250
N
NG
Zimbabwe Condo
100
Hydro
2011
Pre feasibility
100
N
NGN
Zimbabwe Western Power Station
1200
Coal
2011
Pre-feasibility
1300
N
NG
3500
N
NG
N
R
DRC
Inga - 3 (WESTCOR)
3500
Hydro
2011
Concept
DRC
Inga-2 Refurbish
Busanga
324
240
Hydro
2011
2011
Yes
DRC
Hydro
Yes
300
N
NG
South Africa ESKOM Coal Option 1
630
Coal
2011
Yes
753
A
NG
South Africa 2xCCGT
1600
CCGT
2011
Yes
811
N
NG
260
Hydro
2011
No
772
N
NG
Zimbabwe Victoria Falls
390
Hydro
2011
589.3
N
NG
Zimbabwe Mupata Gorge
600
Hydro
2011
Pre-feasibility
Pre-Feasibility
906.6
N
NG
Zimbabwe Devils Gorge
600
Hydro
2011
906.6
N
NG
Angola
16
Estimated
Project
Cost USD Funding
[M]
Availability Category
Cambambe II
Pre-feasibility
SOUTHERN AFRICAN POWER POOL
Long - term Generation Projects - 2
LONG TERM GENERATION PROJECTS (2012 - 2013)
Capacity
[MW]
Type
Expected
Commissioni
ng Year
Mphanda Nkuwa (Phase I)
1300
Hydro
2012
Yes
1363
N
NG
Grand Inga Phase-1
6000
Hydro
2012
Yes
4025
N
NG
1600
Hydro
2012
Yes
2500
N
NG
ESKOM North Coal Option 1
630
Coal
2012
Yes
753
A
NG
Zimbabwe
Gokwe North
1400
Coal
2012
Yes
1357
N
NG
Lesotho
Swaziland
Muela Phase-2
Lubombo
110
1000
Hydro
Coal
2012
2012
Yes
In Progress
N
N
NG
NG
Fufu
100
Hydro
2012
No
141
N
NG
Mozambique
Temane/Pande
450
CCGT
2012
No
229
N
NG
Mozambique
Mozambique
Temane/Pande
Lurio
714
183
CCGT
Hydro
2012
2012
No
No
344
339
N
N
NG
NG
Mozambique
Mavuzi III
60
Hydro
2012
No
119
N
NG
South Africa
ESKOM_Pumped Storage
Nzilo 2
1000
120
Hydro
2013
2013
Yes
976
N
NG
Concept
N
NG
Zongo 2
150
Concept
N
NG
ESKOM Coal Option 2
630
N
NG
Country
Mozambique
DRC
Project Name
Zimbabwe /Zambia Batoka
South Africa
Malawi
DRC
DRC
South Africa
17
Hydro
Hydro
Coal
2013
2013
Feasibility
Study
Complete
Estimated
Project
Cost USD Funding
[M]
Availability Category
In Progress
760
SOUTHERN AFRICAN POWER POOL
Long - term Generation Projects - 3
LONG TERM GENERATION PROJECTS (2014 - 2015)
Country
Project Name
Type
Feasibility
Study
Complete
Mozambique
Moatize
1800
Coal
2014
Yes
2000
N
NG
South Africa
ESKOM North Coal Option 2
630
Coal
2014
In Progress
760
N
NG
360
Hydro
2015
Yes
640
N
NG
Oxbow
Kudu Phase 2
80
800
Hydro
Gas
2015
2015
Yes
Yes
155
350
N
N
NG
NG
ESKOM_Pumped Storage
1000
Hydro
2015
Yes
976
N
NG
Ruhudji
358
Hydro
2015
Yes
611
N
NG
Angola
Medio Kwanza
6700
Hydro
2015
No
N
NG
Lesotho
Monontsa Pumped Storage
1000
Hydro
2015
No
2666
N
NG
Zambia
Luapula
950
Hydro
2015
No
1500
N
NG
Zambia
Kalungwishi
163
Hydro
2015
No
210
N
NG
South Africa
ESKOM Coal Option 2
630
Coal
2015
In Progress
760
N
NG
Mozambique
Lupata
654
Hydro
2015
No
1215
N
NG
Mozambique
Boroma
160
Hydro
2015
No
150
N
NG
Mmamabula
3600
Coal
2015
In Progress
5000
N
NG
Angola/Namibia Baynes
Lesotho
Namibia
South Africa
Tanzania
Botswana
18
Capacity
[MW]
Expected
Commissioni
ng Year
Estimated
Project
Cost USD Funding
[M]
Availability Category
SOUTHERN AFRICAN POWER POOL
5. STRATEGIC CONSIDERATIONS
The following factors were considered in the strategic
analysis:
i. Fuel diversity (coal, gas or hydro) - A check that not
only one technology is built, but a variety to ensure
that the risk is adequately spread.
ii. Geographical spread of the projects - A check to
reduce the risk of having most projects in one country.
iii. Reserve margin requirements - Ensure that no over
capacity or under investment occurs
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SOUTHERN AFRICAN POWER POOL
Committed Generation Projects only commissioned
65000
60000
MW
55000
50000
45000
40000
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
35000
Year
Capacity Planned
20
Peak Demand with DSM + Reserve
SOUTHERN AFRICAN POWER POOL
Committed & Rehabilitation only
72000
68000
64000
MW
60000
56000
52000
48000
44000
40000
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
36000
Year
Capacity Planned
21
Peak Demand with DSM + Reserve
SOUTHERN AFRICAN POWER POOL
Committed - Rehabilitation - Short Term
72000
68000
64000
MW
60000
56000
52000
48000
44000
40000
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
36000
Year
Capacity Planned
22
Peak Demand with DSM + Reserve
SOUTHERN AFRICAN POWER POOL
6. CONCLUSION
i.
The demand in SAPP is increasing at an average rate of 3% per
annum as a result of:
 Increased economic activity
 Establishment of energy intensive users
 Electrification programs
ii.
As a result the region needs investments in both generation and
transmission infrastructure.
iii. To avoid generation deficit:
 Some projects are currently in progress
 SAPP has developed plans for rehabilitation and expansion

of existing plants.
SAPP has come up with plans for short term and long term
generation and transmission projects.
iv. Funding is therefore needed for project implementations.
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SOUTHERN AFRICAN POWER POOL
THANK YOU
24
SOUTHERN AFRICAN POWER POOL