Southern African Power Pool 2012 annual report

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Southern African Power Pool 2012 annual report

  1. 1. TABLE OF CONTENT Vision and Objectives 2 Organogram and Members 3 About SAPP 4 Highlights 5 SAPP Executive Committee 6 Executive Committee Chairman's Report 7 Management Committee Report 9 Planning Sub-Committee Report 11 Operating Sub-Committee Report 14 Markets Sub-Committee Report 20 Environmental Sub-Committee Report 26 SAPP Coordination Centre Report 30 SAPP Statistics 36 SAPP Statistics and Forecasts 38 Financial Statements 42 Report of Independent Auditors 45 Statement of Income and Expenditure 47 Statement of Financial Position 48 Statement of Changes in Shareholders' Funds 49 Statement of Cash Flows 50 Notes to the Financial Statements 51 The SAPP Grid 2011 73 SAPP 2012 Annual Report Page 1
  2. 2. VISIONS AND OBJECTIVES VISION • Increase power accessibility in rural communities. • • Implement strategies in support of sustainable development priorities. • • • Facilitate the development of a competitive electricity market in the SADC region. Give the end user a choice of electricity supplier. Ensure that the southern African region is the region of choice for investment by energy intensive users. Ensure sustainable energy developments through sound economic, environmental and social practices. MISSION Aim to provide the least cost, environmentally friendly and affordable energy and increase accessibility to rural communities. STRATEGY OBJECTIVES • • • • To be the most preferred region for investment for Provide a forum for the development of a world value for money by energy intensive users. class, robust, safe, efficient, reliable and stable interconnected electrical system in the southern VALUES African region. Coordinate and enforce common regional • Respect for others and develop mutual trust. standards of quality of supply, measurement and • Honesty, complete fairness and integrity in dealing with issues. monitoring of systems performance. Harmonise relationships between member • Selfless discharge of duties. • Full accountability to the organisation and its utilities. stakeholders. Facilitate the development of regional expertise • Encourage openness and objectivity. through training programmes and research. Page 2 SAPP 2012 Annual Report
  3. 3. ORGANOGRAM AND MEMBERS SAPP 2012 Annual Report Page 3
  4. 4. ABOUT SAPP • • • The SAPP was created in August 1995 at the SADC summit held in Kempton Park, South Africa, when member governments of SADC (excluding Mauritius) signed an InterGovernmental Memorandum of Understanding for the formation of an electricity power pool in the region under the name of the Southern African Power Pool. The ministers responsible for energy in the SADC region signed the Revised InterGovernmental Memorandum of Understanding on 23rd February 2006. The SAPP is governed by four agreements: the Inter-Governmental Memorandum of Understanding which enabled the establishment of SAPP; the Inter-Utility Memorandum of Understanding, which established SAPP’s basic management and operating principles; the Agreement Between Operating Members which established the specific rules of operation and pricing; and the Operating Guidelines, which provide standards and operating guidelines. The SAPP Agreement Between Operating Members and the Operating Guidelines are under review. The SAPP has twelve member countries Page 4 • represented by their respective electric power utilities organised through SADC. The SAPP has four working committees: the Environmental Sub-Committee, the Markets Sub-Committee, the Operating Sub-Committee and the Planning Sub-Committee under a Management Committee which in turn reports to the Executive Committee. The Markets SubCommittee is a new sub-committee that was created in April 2007 following the signing of the Revised Inter-Utility Memorandum of Understanding by the SAPP Executive Committee on 25th April 2007. Also created in April 2007 is the Coordination Centre Board to govern the activities of the SAPP Coordination Centre. • The SAPP coordinate the planning and operation of the electric power system among member utilities. • The SAPP provide a forum for regional solutions to electric energy problems. The SAPP established the Short-Term Energy Market in April 2001. From January 2004, the SAPP started the development of a competitive electricity market for the SADC region. The new market is in form of a day-ahead market (DAM) and this was official opened in December 2009. • SAPP 2012 Annual Report
  5. 5. HIGHLIGHTS HIGHLIGHTS The main achievements for the period under 3. SAPP Priority Projects consideration, i.e. 1 April 2011 to 31 March 2012, The SAPP Executive Committee resolved that were as follows: regional transmission projects were a priority and 1. Growth in generation capacity the following transmission projects were highlighted: Capacity equivalent to 1,230MW was commissioned • in Angola (12.5MW), Botswana (90MW), DRC (60MW), Namibia (22.5MW), South Africa (961MW) and Zimbabwe (84MW) from rehabilitation and new projects. • In the period under consideration, a number of projects were under construction which included: • Transmission projects to interconnect nonoperating members of the SAPP to the SAPP grid and these Members are Angola, Malawi and Tanzania. Transmission projects to decongest the central transmission corridor were also classified as priority. Three projects have been indentified which are the Central Transmission Corridor project (CTC) in Zimbabwe, the Kafue-Livingstone project in Zambia and the Zimbabwe-ZambiaBotswana-Namibia (ZIZABONA) transmission project. Medupi (4800 MW), Kusile (4800 MW) and Ingula (999 MW) in South Africa, • Kariba North Bank Extension (360 MW) in Zambia, • Morupule-B (600MW) in Botswana, and • Cambambe-I (80MW), Gove (60MW), The SAPP Coordination Centre developed a regional Cambambe II (700 MW) in Angola. integrated resource plan (IRP) that optimises member countries IRPs. In order to draw up the regional IRP, 2. Growth in demand the Management Committee developed a criteria for prioritising projects in the SADC region. On average, electricity demand grew by 2.6% for the year. The 2011 peak demand for the total SAPP was The Management Committee developed a standard 45,315MW against an available capacity of 49,877MW. methodology for assessing project readiness and Taking into account 10.2% reserve requirement, the performed a peer review on project readiness and capacity that was required to meet the peak demand came up with detailed status of each project. is 49,877MW and this gives a shortfall of 60MW for the total SAPP or 173MW for the interconnected 4. Generation & Transmission Criteria system. The SAPP Generation and Transmission Planning Utilities implemented load management strategies criteria have been finalized by the Planning Subduring 2011 to meet the increasing load demand and Committee. The documents set out the standards these strategies included the following initiatives: that are applied in the planning period. • Replacement of incandescent bulbs with Compact Fluorescent Lamps (CFLs), Commercial lighting, Hot Water Load Control (HWLC), Solar water heaters and various energy efficiency programs. 5. SAPP EMS/SCADA System The SAPP EMS/SCADA system was installed at the SAPP Coordination Centre in Harare in June, 2011. The project was delivered by a consortium of ACTOM and AREVA.The SAPP Coordination Centre is now able to monitor system frequency, power From 2009 to date the CFL program has realized flows, voltage levels, and status of circuit breakers and savings amounting to 850 MW. switches of key interconnectors. • • • SAPP 2012 Annual Report Page 5
  6. 6. HIGHLIGHTS 6. Conference of Parties - 17 8. SAPP Day-ahead market The SAPP participated at the United Nations Framework Convention on Climate Change (UNFCCC) seventeenth conference of parties (COP 17) which took place from 28 November to 9 December, 2012 in Durban, South Africa. About 12,480 delegates converged in Durban from Governments, UN Bodies and agencies, Intergovernmental organisations, media, and NGOs. Trading on the SAPP day-ahead market (DAM) continued during the year.The market also continued to face a number of challenges, among them transmission constraints, the general power deficit in the region and mismatch of prices between buyers and sellers on the market. Transmission constraints have been the major challenge resulting in a significant difference between The key outcome of the conference was the decision power that was offered and the one that was actually to extend the second commitment period under the traded. The constraints, especially along the SAPP Kyoto Protocol starting January, 2013 and to run until central corridor, have had significant impact on both 2017 or 2020. This outcome provides the SAPP an bilateral and DAM trading during the period under opportunity to register planned renewable energy review. projects for funding under Clean Development Mechanisms (CDM). The conference also saw the On some corridors, existing contracts are more operationalisation of the Green Climate Fund with than double the available transmission capacities. In financing of USD100 billion by 2020 to support the period under review, a total of 21,767MWhr was projects for clean energy and the development matched but only 10,409MWhr was actually traded. of programs and policies and other activities in As a result, a total of 11,358MWhr or 52.2% of what was matched could not be traded due to transmission developing country parties. constraints. 7. SAPP Grid Emission Factors With financial support from the German Federal Ministry of the Environment, UNEP and the UNEP Risoe Centre, a study was initiated to examine how to best take into account exports and imports of electricity across the national boundaries in the SAPP and to systematically analyze issues associated with the sub-regional grid electricity system in order to develop national Grid Emission Factors (GEFs) in SAPP member countries for application in Clean Development Mechanism projects. Based on standard weighting of the BM and the OM, the SAPP Grid Emission Factor was calculated to be GEF of 0.9216 tCO2/MWh. If approved by the United Nations Framework Convention on Climate Change (UNFCCC), the SAPP member states will be able to use this factor for all Clean Development Mechanisms (CDM) projects. Page 6 SAPP 2012 Annual Report
  7. 7. SAPP EXECUTIVE COMMITTEE Mr. Jacob Raleru BPC Mr. Manuel Cuambe EDM Mr. Arthur Mandambwe ESCOM Mr. Fernando Barros ENE Mr. Brian Dames Eskom Mr. Francis Hloaele LEC Mr. Paulinus Shilamba NamPower Mr. Yengu Mussampu SNEL Mr. Pius Gumbi SEC Mr. William Mhando TANESCO Mr. Ernest Mupwaya ZESCO Mr. Josh Chifamba ZESA SAPP 2012 Annual Report Page 7
  8. 8. EXECUTIVE COMMITTEE CHAIRMAN’S REPORT of Lesotho, Hon. Monyane Moleleki (MP). The SAPP Executive Committee made the following resolutions: On the prioritisation of projects in the SADC it was resolved that regional transmission projects were a priority. Mr. Pius Gumbi Executive Committee Chairperson (1 April 2011 to 30 November 2011) 1. Power Supply 1.1 Peak demand and Available capacity As at 31 March 2012, the SAPP had an available capacity of 49,877MW against 50,204MW which is required after taking into account 10.2% reserve requirement. This gives a shortfall of 327MW for the total SAPP or 214MW for the interconnected grid system. Utilities implemented load management strategies during 2011 to meet the increasing load demand. Capacity equivalent to 1,230MW was commissioned in 2011 in Angola (12.5MW), Botswana (90MW), DRC (60MW), Namibia (22.5MW), South Africa (961MW) and Zimbabwe (84MW) from rehabilitation and new projects. In 2012, the SAPP is expecting to commission 1,776MW. 2. Executive Committee Meetings 2.1 31st SAPP Executive Committee Meeting The 31st meeting of the SAPP Executive Committee was held at the Lesotho Sun Conference Centre in Maseru, Lesotho, on 20th October 2011.The meeting was opened by the Minister of Natural Resources Page 8 The following transmission projects were highlighted: • Transmission projects to interconnect nonoperating members of the SAPP to the SAPP grid and these Members are Angola, Malawi and Tanzania should be accelerated. • Transmission projects to decongest the central transmission corridor. Two projects have been indentified which are the Central Transmission Corridor project (CTC) in Zimbabwe and the Zimbabwe-Zambia-Botswana-Namibia (ZIZABONA) transmission project. The Committee also tasked the SAPP Coordination Centre to develop a regional integrated resource plan (IRP) that optimises member countries IRPs. The Committee resolved to support South Africa and Eskom in particular in the logistics and arrangements for COP17 in Durban, South Africa. The SAPP Executive Committee took note that the SAPP will present the Southern African perspective on renewable energy and SAPP position on climate change at COP17. 2.2 Special Executive Committee Meeting A Special Meeting of the SAPP Executive Committee was held in Durban, South Africa, on 6 December 2011. The objective of the meeting was to review the criteria for prioritising projects in the SADC region. The criteria was first developed in 2005 by the SAPP Management Committee. The Executive Committee reviewed the criteria, made some changes by including criteria on climate change impacts and then endorsed it.The Committee further agreed to the list of priority projects that was developed by the Management Committee using the criteria. It was agreed that the list will be presented to the Ministers responsible for energy in the SADC region.The projects were drawn from the revised SAPP Pool Plan of 2009. SAPP 2012 Annual Report
  9. 9. EXECUTIVE COMMITTEE CHAIRMAN’S REPORT 5. Appointments 3. Acknowledgement I would like to take this opportunity and thank the members of the SAPP Executive Committee for the support that I have received from them whilst I was Chairperson of the SAPP Executive Committee during the year under consideration. Mr. Pius Gumbi Chairperson, Executive Committee The following people were appointed as Chief Executive Officers, or Managing Directors,in their countries and joined the SAPP Executive Committee during the year under consideration: 5.1 Mr Cyprian Chitundu was appointed Managing Director of ZESCO ltd in Zambia from 1 Nov 2011. 4. Farewell I would like to take this opportunity and say farewell to Mr. Pius Gumbi who has left SEC (Swaziland) after being Managing Director of the company for eight (8) years. His contract with SEC expired in November 2011. Mr Gumbi was the SAPP Executive Committee Chairperson at the time that he left SEC. The SAPP would like to wish Mr Gumbi all the best in his future career. I took over from him with effect from 15 March 2012. 5.2 Mr Augusto De Sausa Fernando was appointed as Chairman and Chief Executive Officer of EDM Mozambique, from 1 March 2012. Mr. Jacob Raleru Chief Executive Officer of BPC Incoming Executive Committee Chairperson The new Members to the Executive Committe are welcome. SAPP 2012 Annual Report Page 9
  10. 10. MANAGEMENT COMMITTEE REPORT Energy Working Group to help assess the impact of renewable energy technologies on the SAPP grid. vii. Tasked the Coordination Centre to move into new offices before end of fiscal year and reduce operating costs on Member Utilities. 2. Project Peer Review Mr. Mongezi Ntsokolo Management Committee Chairperson At a special SAPP Executive Committee Meeting held in Durban, South Africa, on 6 December 2011, the Management Committee was tasked to develop and use a standard methodology for assessing project readiness and do a peer review on project readiness and come up with detailed status of each project. A Task Team on project peer review was formed and composed of Management Committee In the period that I took over as Chair of the representatives from Eskom, SAPP-CC, LHPC and Management Committee, the SAPP made a ZESA. The Task Team had their first meeting in South deliberate decision to select priority projects from Africa to learn the tool and the process and its the Revised SAPP Pool Plan of 2009 and to start resource requirements that Eskom already uses for the implementation process so as to increase the such purposes with the aim of extending the tool to generation capacity in the region. At the same time, other SAPP projects. the SAPP also made a decision to start attracting investors in the transmission infrastructure. As a The Task Team performed trials on sample projects result, priority projects for both generation and and made recommendations on the way forward.The transmission are now clearly defined and agreed to tool that Eskom uses on project definition readiness by the SAPP Executive Committee. In summary, the index (PDRI) is from the United States Construction Management Committee has therefore achieved the Industry Institute and special permission has been given to the SAPP-CC via Eskom to use the same following in the period under review: tool on the SAPP priority projects. i. Revising the criteria that was developed in 2005 in selecting and classifying priority projects from the The Task Team received training on how to use the tool and how to apply the tool to the SAPP priority Revised SAPP Pool Plan of 2009. ii. Presenting the criteria and the result of using the projects that have been listed. criteria on the Revised SAPP Pool Plan of 2009 to the 3. Preparation for COP17 Executive Committee for adoption and approval. iii. Developing a peer review mechanism for A delegation of officials from Eskom visited the SAPP assessing project readiness and do a peer review on Coordination Centre for a meeting on conference of project readiness and come up with detailed status parties (COP17) preparations and the role of SAPP of each project. at the COP. iv. Adopting the proposed methodology for transmission pricing and losses charges by the The meeting was informed that about 22 utilities Planning Sub-Committee. worldwide, including the SAPP utilities are preparing v. Requested the three sub-committees (the OSC, on what to exhibit regarding their activities on MSC and PSC) to arrange a joint meeting to discuss Climate Change amelioration as well as adaptation and agree on the priority transmission projects to climate change. The meeting agreed that the SAPP necessary to promote trade in SAPP. would profile work done by utilities to combat climate vi. Spearheaded the creation of the Renewable change. Some of the activities to be considered were: 1. Introduction Page 10 SAPP 2012 Annual Report
  11. 11. MANAGEMENT COMMITTEE REPORT Adaptation – study on the Zambezi River Basin on climate change adaptation Renewable Energy initiatives in the SAPP The Eskom delegation was also presented with information compiled by SAPP on the activities the SAPP was embarking upon in combating climate change. 4. Membership In the year under review, two applicants had applied for membership: EMC of Zimbabwe and Sengwa Power, also of Zimbabwe. The two wanted to be participants in the SAPP day-ahead market (DAM). 5. Acknowledgement I would like to take this opportunity and thank the outgoing Management Committee Chairperson, Mr. Timothy Lungu, who was retired from ZESCO as Senior Manager, Transmission. I wish him all the best in his future career. I would also like to express my thanks to members of the Management Committee and the Coordination Centre staff for the support they have given me during the year. Mr. Mongezi Ntsokolo Management Committee Chairperson SAPP 2012 Annual Report Page 11
  12. 12. PLANNING SUB-COMMITTEE REPORT 12 Transmission Losses vs Benchmark, % 10 8 6 4 2 0 Daigram 1. transmission losses close to 3 %. The average for SAPP is 6.4%. Mr. Michel Muamba (SNEL, DRC) Planning Sub-Committee Chairperson 1. Introduction Diagram 1: Utilities transmission losses vs benchmark. Details of the utility statistics are contained in the statistics section of this report. 3. SAPP Demand and Supply Situation The Planning Subcommittee finalized the SAPP Generation and Transmission Planning Criteria. 3.1 Power Demand Forecast - Past Trends Transmission losses are now being charged based on an agreed methodology which looks at the weighted The peak demand in SAPP increased by a weighted average of 2.6% in the year under review. average cost generation for the utility. The region has made strides in the area of demand The peak demand for the region in 2011 stood at 45,315 MW, which requires generation capacity side management. amounting to 49,937 MW taking into account the Most utilities have now embarked on renewable energy need to meet the 10.2% minimum reserve capacity within their master plans in particular considering requirements. With the available capacity at solar and wind technologies. In the long term some 49,877 MW this gives a deficit of 60 MW. Taking generation plants will be decommissioned and this is into account suppressed demand the region has a being taken into account within the planning process. generation capacity shortfall of 6,000 MW. 2. SAPP Key Figures and Facts • • • • • • The table below highlights the utility demand growths. Electricity demand growth was an average of 2.6 % per annum SAPP installed capacity is 56,558 MW SAPP peak demand was 45,315 MW New generation capacity amounting to 1230 MW was commissioned in 2011 Average electricity tariffs range from 4.8 to 11.5 USc/kWh. Eight out of twelve utilities have good debtor collection days. This needs to be improved. The number of customers significantly increased in all utilities. Three utilities (BPC, Eskom and NamPower) have Page 12 SAPP 2012 Annual Report Table 1: 2010 /2011 Demand Growth
  13. 13. PLANNING SUB-COMMITTEE REPORT 3.2 Current Power Supply Situation SAPP has an installed capacity of 56,558 MW of which 49,877 MW is available. The difference of 6, 119 MW is due to the fact that some machines are under rehabilitation including 197 MW in Angola, 1,200 MW in DRC, 3,100 MW in South Africa, 228 MW in Tanzania, 150 MW in Zambia and 700 MW in Zimbabwe. There is virtually no load diversity in SAPP as most utilities peak almost at the same time. 3.4 Impact of Demand Side Management Utilities are implementing various demand side management strategies which include the replacement of incandescent bulbs with Compact Fluorescent Lamps (CFLs), Commercial lighting, Hot Water Load Control (HWLC), solar water heaters and various The diagram to follow shows the current installed energy efficiency programs. From 2009 to date the CFL program has realized savings amounting to 850 capacity by technology. MW. 3.5 Generation Supply and Project Tracking The generation projects commissioned in 2011 are shown in the table to follow: Diagram 2: SAPP Installed Capacity by Technology 3.3 Overall Demand and Energy Forecast The utilities prepare their forecasts independently. Table 2: Generation Projects Commissioned in 2011 The aggregated SAPP demand and energy is forecast to increase at an average of 3.1 % per annum as In the medium term between 2012 and 2016 up to shown in the diagram below. 18,000 MW will be commissioned of which 3% will be for renewable energy as illustrated in the diagram below. MW Installed Capacity by Technology 17.0% 2.5% 0.5% 52.7% 23.7% Coal Hydro Solar Gas Wind Diagram 3: Utility Demand and Energy Forecasts Diagram 4: Installed Capacity by Technology 2012 to 2016 SAPP 2012 Annual Report Page 13
  14. 14. PLANNING SUB-COMMITTEE REPORT 3.6 Security of Supply A number of projects are under construction which include Medupi (4800 MW), Kusile (4800 MW) and Ingula (999 MW) in South Africa, Kariba North Bank Extension (360 MW) in Zambia, Morupule B (600MW) in Botswana and Cambambe I (80 MW), Gove (60MW) Cambambe II (700 MW) in Angola. With some projects with secured funding the region will have adequate generation capacity to meet the generation reserve requirements by 2016. The generation situation will remain tight during this period. The security of supply will only be guaranteed after that time. 5.1 Zimbabwe - Zambia – Botswana – Namibia Interconnector (ZIZABONA) The four power utilities from Zimbabwe (ZESA), Zambia (ZESCO), Botswana (BPC) and Namibia (NamPower) intend to develop the ZIZABONA Interconnector project. A Transaction Advisor was appointed and has finalised the technical, legal, market and financial studies. The members have now agreed on the project scope, identification of key governance documentation necessary for the formation of the Special Purpose Vehicle (SPV) including Inter Governmental Memorandum of Understanding (IGMOU), the Joint Development Agreement (JDA), the Shareholders Agreement among others, the shareholding structure of the SPV etc. A way forward on the development of these key documents has been formulated. The members also agreed on the shareholding structure for the SPV company and its location which was agreed to be domiciled in Namibia. The target is to have the SPV in place before the end of year 2012. Other SAPP utilities were invitied to participate in the SPV shareholding and responses were received from Eskom of South Africa and Copperbelt Energy Corporation of Zambia which are being evaluated. An Investors Round Table is to held in July 2012 where the SADC Energy Ministers and potential investors will be invited. The IGMOU is also expected to be 4. Transmission Pricing and Wheeling signed during the proposed investors round table.The Arrangements Transaction Advisor for the project is expected to develop the Project Information Memorandum (PIM). Literature review was conducted assessing The project timelimes are indicated below: transmission pricing methodologies in other power pools. • Project Preparation Dec 2012 Diagram 5: Energy Planned vs Forecast • Financing and Contracting 2013 Work is still ongoing on transmission pricing review, • Project Implementation 2014-15 considering the advent of new Independent Power Producers (IPPs) and Independent Transmission 5.2 Zambia – Tanzania – Kenya Interconnector Companies (ITCs) in SAPP. ZESCO has secured funding from the World Bank for 5. Transmission Interconnector Projects the extension of the 330kV network within Zambia to extend to the northern parts of Zambia. The lines The existing transmission infrastructure is reaching will extend to Chipata and Kasama. Portions of the its limits and constraints in some areas especially the transmission lines to connect to Malawi and Tanzania Central Transmission Corridor within Zimbabwe. still need to be funded. A number of transmission projects are under consideration to relieve congestion. Page 14 SAPP 2012 Annual Report
  15. 15. PLANNING SUB-COMMITTEE REPORT In Tanzania the project is in three phases: a) Internal strengthening: Secured Funding. b) Tanzania – Kenya portion: Secured funding for feasibility studies for the 400 kV line from Singida to Nairobi. c) Portion to Zambia: Secured funds for feasibility studies. 5.3 Mozambique Transmission Backbone Project (CESUL) Launch The Mozambique Regional Transmission Backbone Project (CESUL) was launched on the 24th of November 2011 in Maputo, Mozambique, by H.E. Armando Emilio Guebuza. Mozambique is in possession of abundant natural resources including a hydropower potential of 12,000 MW, huge amounts of coal in Tete and Niassa Province, and substantial proven gas resources in Temane/Pande, Buzi and Rovuma Basin, not to mention other energy sources like geothermal, solar and wind power. In order to develop its vast resources the Government of Mozambique (GoM) has launched several major initiatives. In generation projects include a hydropower plant located 61km (river length) downstream of the existing Cahora Bassa Dam, the Mphanda Nkuwa Hydropower Plant, with a planned capacity of 1,500MW (Phase I) and on the Cahora Bassa North Bank (CBNB), with a planned capacity of 1,245MW. There are also planned thermal stations connected to mining projects in Tete Province, in Moatize, with a planned initial capacity of 300MW and Benga with a planned capacity of 500 MW. In the southern region it is planned to install about 300MW of natural gas fuelled thermal power stations. In order to evacuate power to major consumption centers located in the south of the country, a feasibility study for a transmission system, the Backbone, which would accommodate technical and economical requirements, has been undertaken. Once completed, the Mozambique Regional Transmission Backbone Project (CESUL) would move power from the north to the load centres in the south. 6. Technical Issues 6.1 Generation and Transmission Planning Criteria The SAPP Generation and Transmission Planning criteria were finalized by the subcommittee. The documents set out the standards that are applied in the planning period. Each utility has its own generation and transmission planning criteria. At SAPP level it sets the minimum standards expected but utilities may choose to apply more stringent criteria. The generation expansion planning process is also detailed. 6.2 Renewable Energy Task Team The Renewable Energy Task Team held a meeting in Johannesburg, South Africa, on 14 and 15 April, 2011. The objective of the meeting was to deliberate and come up with a regional strategy on renewable energy in the SADC region.The Task Team noted that there was little progress on renewable energy in the region and that the SAPP needs to be pro-active and take the region to the next level on renewables. It was noted that renewables could play an important role in reducing power deficit while increasing access to electricity. The Task Team recommended that the SAPP CC appoints a consultant to develop a framework for promoting/developing renewable energy in the SADC Region and come up with both country and regional targets for renewable energy.The Sub Committee has developed the Terms of Reference for the consultant. Funding is yet to be secured for the assignment. 6.3 Transfer Limits in SAPP The Transmission Planning Working Group (TPWG) met from 3 to 4 August 2011 at Eskom Academy of Learning in Midrand, Johannesburg. The TPWG updated the SAPP PSS/E case files and also updated the status of Transmission Projects. The Working Group continues to provide expert advise with the advent of new generation and transmission projects. It focuses on looking ahead to indentify problems and opportuinites facing the transmission grid. SAPP 2012 Annual Report Page 15
  16. 16. PLANNING SUB-COMMITTEE REPORT 7. Meetings and Workshops 7.1 Needs Assessment Study on Energy Efficiency in SAPP The SAPP secured EURO 200,000 from the European Union Energy Initiative Project Development Facility (EUEI-PDF) to carry out a needs assessment study on Energy Efficiency. Following a tender process Power Planning Associates Energy was appointed for the assignment. The objectives of the study are: • • • To enhance the use of the extensive potential and options for energy efficiency measures in the SAPP’s interconnected system, To provide a basis for decision making on appropriate energy efficiency interventions at regional level, To provide recommendations on high priority energy efficiency projects to be implemented at regional level. The Consultant presented the Project strategy and Implementation timeline during the SAPP Meetings held in Livingstone, Zambia in February 2012. 8. Acknowledgements I would like to take this opportunity to thank members of the SAPP Planning Sub-Committee for nominating me to the post of Chairperson. I will do my best do deliver for the benefit of SAPP. I also would like to take this opportunity to thank the outgoing Chairperson Ms Monica Moeko of LEC for her leadership during the last two years. Mr. Michel Muamba Planning Sub Committee Chairperson Page 16 SAPP 2012 Annual Report
  17. 17. OPERATING SUB-COMMITTEE REPORT 3. Revision of the SAPP Operating Guidelines Mr. Ntelane Sello, LEC (Lesotho) Operating Sub-Committee Chairperson 1. Introduction The OSC formed a Task Team comprising delegates from all SAPP utilities to carry out the revision of the Operating Guidelines (OG). In the year under review, the Task Team met three times. The meeting revised several clauses of the guidelines and also re-arranged the document. The Task Team developed new guidelines for establishment of a new Control Area, provision of Control Area services, and connection and operation of Independent Power Producers. The remaining task before presenting the revised OG for approval later in the year 2012 was inclusion of compliance levels and penalties for non-adherence to requirements in the OG. In the year under review (1 April, 2011, to 31 March, 2012), the SAPP Operating Sub-Committee (OSC) held its normal meetings twice, i.e. from 30 to 31 August, 2011, in Sandton, Republic of South Africa and from 14 to 15 February, 2012, in Livingstone, Zambia. Regular items on the agenda were:system disturbances, maintenance schedules, operating reserves, power transfer constraints, and power system performance. The OSC also received and discussed reports from Some members of the Revision of the OG Task Team with its working groups. The OSC also met jointly with the Chief Executive Officer of CEC, Mr. Croucher, during the the Markets Sub-Committee to discuss cross-cutting official opening of the 4th meeting of the Task Team in Kitwe, Zambia, in April, 2011. issues such as energy interchange and Control Area services. OSC members continued to engage each other from their normal places of work on various 4. Earth Hour system operations issues in a continous endevour to Saturday 31 March, 2012, was the day for the Earth meet objectives of the SAPP. Hour under the World Programme on Energy Saving (www.earthhour.org). Under this global programme, 2. System Demand Situation some power consumers voluntarily switched off Similar to the previous year, SAPP utilities continued non-essential power for one hour from 08.30pm implementing load management programmes of to 09.30pm with the objective of saving the earth varying magnitude due to power supply and other and the environment through reduced electricity constraints. In the year under review, the aggregate consumption.The SouthernAfrican region participated peak demand in the SAPP interconnected system in this event. Quantifying the savings realised was not a was 43,278MW and that for Eskom, South Africa, simple exercise as a number of factors played a role in was 36,543MW. Compared to the previous year, load changes. However, in South Africa, from Eskom’s the aggregate SAPP interconnected system demand analysis, a saving of about 400MW was realised from and the Eskom system demand were lower by this event. A quick comparison of system loads of 386MW and 427MW, respectively. The decrease was the Earth Hour day and those of a similar day in the attributed to various load management activities that previous week, assuming equal conditions, indicated were implemented during peak periods. a notable decrease in system loads from 08.30pm to 09.30pm in Swaziland, Zimbabwe and Mozambique. SAPP 2012 Annual Report Page 17
  18. 18. OPERATING SUB-COMMITTEE REPORT 5. System Disturbances 7. The SAPP System Viewer From 4 to 6 April 2011, members of the SAPP Telecommunications Working Group or their delegates were trained on the Inter-Control Centre Communications Protocol (ICCP). This is the protocol employed by the SAPP SCADA system in acquiring data from Control Areas.The SAPP SCADA system was installed at SAPP Coordination Centre in Harare in June, 2011. The project was delivered by a consortium of ACTOM and AREVA. Participants from ZESA and SAPP Coordination Centre attended the Operators’ local training which was delivered from 14 to 15 July, 2011. Participants from SAPP Coordination Centre, ZESA, ZESCO, Eskom and CEC attended the Software Maintenance local training from 18 to 20 July, 2011. They then proceeded to witness site acceptance tests which were done thereafter. In August, 2011, the OSC named the SCADA System ‘the SAPP System Viewer’ since the control function Reported SAPP System Disturbances was disabled. Otherwise, the SAPP Coordination Centre is now able to monitor system frequency, 6. Telecommunication power flows, voltage levels, and status of circuit Telecommunication issues on the SAPP breakers and switches of key interconnectors. interconnected system are currently overseen by the 8. SAPP Traders’ and Operators’ Forum Telecommunications Working Group (TWG). The TWG reports to the OSC. In the year under review, The 8th SAPP Traders’ and Operators’ Forum was the TWG met twice. Progress made in linking gaps held at Songo in Mozambique from 19 to 20 October in the SAPP optic fibre network was tracked and 2011.All SAPP Operating Members were represented. discussed. It became clear that the remaining three Various issues about SAPP interconnected system gaps in the fibre network would be linked by the end of control and energy trading were discussed. Delegates year 2015. In preparation, the TWG then planned the also took a familiarisation tour of the 2075MW interfacing of the various telecommunications systems Hidroelectrica de Cahora Bassa (HCB) power station in SAPP. Meanwhile, the TWG extended the contract and Songo High Voltage Converter Station. Delegates of the VSAT telecommunications network among the really appreciated the tour as it gave them a deeper three Control Areas and SAPP Coordination Centre understanding of the source of HCB power. It was to March, 2015.The TWG also evaluated performance noted that most SAPP utilities interface with HCB in of the SAPP System Viewer. energy transanctions. Refer to figure below for a general outlook of SAPP system disturbances. Main causes of the system disturbances were adverse weather conditions (especially in the rainy season) and failure of auxiliary systems and equipment. Refer to Appendix 1 for a summary of some system disturbances reported on the SAPP grid. The Hidroelectrica de Cahora Bassa Dam in Mozambique. Some TWG members at a meeting in Nyanga, Zimbabwe, in October, 2011. Page 18 SAPP 2012 Annual Report
  19. 19. OPERATING SUB-COMMITTEE REPORT reporting CPS on trial basis. Results for the first three months were very good for Disturbance On 30 August, 2011, professors from the University Control Standard but were average to below average of Manchester made a presentation to the OSC on for Control Perfomance Standards. In the year,the WAMPACS (Wide Area Monitoring, Protection and Task Team continued with evaluation of the trial and Control of Power Systems) in Sandton, South Africa. verification of the parameters used. It is envisaged In considering ways of implementing such systems in that efficient implementation of CPS will minimise SAPP, the OSC formed a task team to evaluate the accumulation of inadvertent energy and also enhance systems from various service providers and assess system reliability. readiness of SAPP utilities. From 16 to 17 November, 2011, the WAMPACS Task Team met at Eskom National Control Centre Building in South Africa. It was noted that SAPP utilities were at various levels of readiness in implementing the systems. Eskom, for example, had already successfully implemented a pilot project of Wide Area Monitoring Systems (WAMS). The Task Team members had an opportunity to familiarise with WAMS in Eskom. The Task Team recommended that WAMPACS be implemented in all SAPP utilities. As a first step, the OSC resolved that Some members of the SAPP CPS Implementation Task Team at relevant personnel should be trained on WAMPACS. their first meeting in Harare, Zimbabwe, in November, 2011. A capacity building training on WAMPACS was then scheduled for May, 2012. 11. Acknowlegements 9. WAMPACS In the year under review, like in the previous few years, the SAPP continued experiencing the state of power supply deficit. Further, most transmission corridors had no or very little margins to transfer limits. The OSC worked hard in finding ways to keep the power system reliable. I would like to thank my predecessor, Mr. Adriano Jonas, and all OSC members for assisting me in meeting the challenges from the time I took over in August, 2011. Some members of the SAPP WAMPACS Task Team at their first meeting in Johannesburg, Republic of South Africa 10. SAPP CPS Implementation and Task Team Having adopted the new Control Performance Standards (CPS) from the North American Electric Reliability Corporation (NERC), the OSC formed the SAPP CPS Implementation Task Team in August, 2011, to oversee implementation of the CPS in SAPP. The Task Team reviewed the CPS guidelines and the CPS Training Document. The Task Team determined the input parameters in the calculation of the CPS and also assessed the readiness of the SAPP Control Areas in implementing the CPS. From 1 January, 2012 the three Control Areas started monitoring and SAPP 2012 Annual Report Mr. Ntelane Sello Operating Sub-Committee Chairperson Page 19
  20. 20. MARKETS SUB - COMMITTEE REPORT Mr Adérito Sousa EDM (Mozambique) Markets Sub Committee Chairperson 1. Introduction More than one year has passed since my election as Markets Sub Committee (MSC) Chairperson in September 2010. A lot has happened on the SAPP trading portfolios and it is with great pleasure to report on the SAPP market activities for the year ended 31st March 2012. The market continued to register notable progress despite some challenges. The SAPP Day Ahead Market (DAM) continues to play a pivotal complimentary role to the traditional bilateral trading arrangements that have been characterising the SAPP trading portfolio since SAPP formation. Despite efforts being taken by the SAPP, there are still challenges on the DAM operation and trading in general that include the general diminishing of generation capacity, transmission constraints and mismatch of prices between sellers and buyers bids. These still need to be addressed and with the help of our cooperating partners such as the Government of Norway and Sida, it is my strong conviction that the dream for a competitive market in the SAPP will be fully realised. 2. DAM Participation: Levels and Criteria for Admission and CEC were the only new additions during the year ended 31st March 2012. On average, the total number of active players on the market for the year under review remained at five, a figure that was also recorded for the previous year. Two applications to participate on the DAM were received from Non SAPP members and these were reviewed by the SAPP. It should be noted that the revised SAPP governance documents have opened up participation of non SAPP members subject to meeting the conditions to participate as prescribed in the DAM Book of Rules. No market abuse or misbehaviour was recorded on the market during the period under review. 2.2 Criteria for Admission of Non SAPP Members in the DAM Trading Market In line with the DAM Book of Rules and the move by the SAPP to allow non SAPP members to participate in DAM market trading, the SAPP developed the following criteria that would assist in determining permission to participate in the DAM. a. Participants should be licensed or have permission to undertake cross border trading from the host country they are operating from. b. Participants should be any party accepted as a member of SAPP in any one of the membership categories in the Revised SAPP IUMOU or any party who has been granted permission to trade on DAM by the SAPP. c. Participants should have a Balance Responsibility Agreement (BRA) with a host SAPP Transmission System Operator (TSO). The SAPP shall provide a BRA template for use by Participants. d. Participants should have signed the DAM governance documents. e. Participants should have the requisite accounts for trading purposes and lodge the requisite security amount or bank guarantee for trading purposes. The levels of security amount requirements shall be in accordance to the DAM Book of Rules. f. Participants should have at least two Certified Traders. 2.1 Participation Levels The idea is to encourage other players on the market at the same time ensuring that the portfolios of such A total of ten (10) members have signed the DAM players can be executed without hindrance. These governance documents as of 31st March 2012 when conditions were incorporated in the SAPP Market compared to eight (8) in the previous year. SNEL Guidelines. Page 20 SAPP 2012 Annual Report
  21. 21. MARKETS SUB - COMMITTEE REPORT 3. DAM Market Performance Highlights 3.1 Traded Energy Volumes A total of 285.680GWhr Sale Bids and 525.101GWhr Buy Bids were received for the year beginning 1st April 2011 to 31st March 2012. Out of this, a total of 10.409 GWhr was traded which translates to only 3.64% of energy that was offered on the market as sale bids and 1.98% of what was offered as buy bids. Comparatively, a total of 395.642 GWhr Sale Bids and 258.418 GWhr Buy Bids were received during the previous year covering the period 1st April 2010 to 31st March 2011. Out of this, a total of 27.397 GWhr was traded or 10.60% of what was offered on the market as buy bids and 6.92% of what was offered as sale bids. Generally there was an increase in the total volumes of buy bids received and a decrease in sale bids received in year 2011/2012 when compared to year 2010/2011. The market achieved commendable progress although there was no market cross during the months of August and September 2011. It is also interesting to note that trading reached its peak during the month of June 2011, which is the peak period for the region. Fig 3.1 Total Energy Offered and Traded on DAM for the Year Ended 31st March 2012. Cumulatively, a total of 712.772GWhr Sale Bids and 791.244GWhr Buy Bids were received to date on the DAM market since the market went live on the 15th of December 2009. Out of this, a total of 38.351 GWhr was traded which translates to only 5.38% of energy that was offered on the market. Lower figures were traded when compared to bids and offers submitted to the market largely due to mismatch of prices between sellers and buyers in the market and transmission constraints. Below is a summary of the yearly market performance in terms of volumes submitted and those that were actually traded Fig 3.1 Total Energy Offered and Traded on the Market to Date as of 31st March 2012. SAPP 2012 Annual Report Page 21
  22. 22. MARKETS SUB-COMMITTEE REPORT 3.2 Market Share Distribution A total of 10,409 MWhr were traded on the DAM during the period 1st April 2011 to the 31st of March 2012 against a total of 9,378,586 MWhr traded on the bilateral trading platform. The average market share for the DAM trades during the period 1st April 2011 to the 31st of March 2012 was therefore 0.11%. In comparison, a total of 27,397 MWhr was traded on the DAM during the period from 1st April 2010 to the 31st of March 2011 when compared to 9, 516,515 MWhr traded on the bilateral trading platform during the same period, resulting in the average market share for DAM trades of 0.29%. Note that there was a general increase of average MCP prices from April 2011 to August 2011, after which the prices dropped to around 4.431 USc/ kWhr before stabilising between around 5 and 6 USc/kWhr. Since then, prices have generally stabilised. Market clearing prices on DAM have generally been very competitive when compared to bilateral trades 3.3 DAM Market Clearing Prices (MCPs) prices that ranged between 4.8 to 11.5 USc/kWh for The average DAM market clearing price (MCP) the period under review. recorded for the year 2011/12 was 5.555 USc/kWhr with the highest monthly average MCP being 9.368 On a year on year analysis, the average market clearing USc/kWhr which was recorded in August 2011. prices (MCP) recorded on the DAM market to date, Below is a summary of the average monthly MCP since market opening is 3.128 USc/kWhr with the highest yearly average MCP to date being 5.555 USc/ prices for the year ended 31st March 2012. kWhr recorded in year 2011/12. Below is a summary of the average yearly MCP prices to date. Note that there is a general increase of average yearly MCP Fig 3.3 Average Monthly DAM Market Clearing prices from year 2009-10 through to year 2011-12. Prices (MCPs) for the Year Ended 31st March 2012. Marcket Clearing Prices Month Fig 3.2 Yearly Average MCPs Realized on the Market to Date as of 31st of March 2012 (USD/MWh). Average MCP ($/MWhr) Apr-11 37.62 May-11 44.59 Jun-11 63.08 Jul-11 75.92 Aug-11 93.68 Sep-11 44.31 Oct-11 52.70 Nov-11 48.37 Dec-11 43.59 Jan-12 57.55 Feb-12 58.69 Mar-12 46.45 Average 55.55 Page 22 SAPP 2012 Annual Report
  23. 23. MARKETS SUB - COMMITTEE REPORT 3.4 Revenues Realised from the DAM Market A total of USD 617,527.78 was exchanged among the participants for the year 1st April 2011 to the 31st of March 2012. Out of this, a total of USD534,049.49 was exchanged among sellers and buyers, USD27,281.45 was collected as Wheeling revenues, USD13,827.95 was collected to cover wheelers’ losses, USD20,817.20 was collected as Administration charges on DAM trades and USD21,551.69 was collected as Congestion income. Below is a summary of the yearly market performance in terms of revenues realised. Fig 3.4 Total Revenues Realized on the Market for the Year 2011/12. Fig 3.5 Total Revenues Realized on the Market to Date as of 31st March 2012. A total of USD 1,623,195 was exchanged among the participants to date. Out of this a total of USD1,317,618.87 was exchanged among sellers and buyers, USD98,528 was collected as Wheeling revenues, USD31,057 was collected to cover wheelers’ losses, USD76,700 was collected as Administration charges on DAM trades and USD99,291 was collected as Congestion income. MSC delegates at the 38th SAPP Meetings held in Livingstone, Zambia, 9th February 2012. On a year on year basis, the revenues generated on the market increased from 2009/10 to 2010/2011 before retreating in the year 2011/12. Below is a summary of the annual revenues generated on the market since the market went live on the 15th of December 2009. 4. SAPP Trading Challenges The SAPP market continued to face a number of challenges, among them transmission constraints, the general power deficit in the region and mismatch of prices between buyers and sellers on the market. Transmission constraints have however been the major challenge resulting in a significant difference between power that was matched and power that was actually traded. SAPP 2012 Annual Report Page 23
  24. 24. MARKETS SUB-COMMITTEE REPORT Transmission constraints, especially along the SAPP central corridor, have had significant impact on both bilateral and DAM trading during the period under review. On some corridors, existing contracts are more than double available transmission capacities. In 2011/12 financial year, a total of 21,767.41 MWhr was matched on DAM but only 10,409 MWhr was actually traded. As a result, a total of 11,358.41 MWhr or 52.2% of what was matched could not be traded due to transmission constraints. Fig 4.2 Impact of Transmission Constraints on DAM Trading as of 31st March 2011. ENERGY TRADED (MWh) Energy Matched (MWhr) Below is a summary of the impact of transmission constraints on the DAM. Fig 4.1 Impact of Transmission Constraints on DAM Trading for the Year Ended 31st March 2011. 50,000.00 40,000.00 30,000.00 20,000.00 10,000.00 0.00 2009-2010 2010-2011 2011-2012 5. Procedures for Trading Power Resident outside a Member’s own borders The SAPP developed procedures of how to handle power that is resident outside a member’s own borders. The procedures are meant to remove the constraint whereby a member could not have access to power resident outside own borders for onward trading before that power is scheduled to the member first. This was viewed inefficient and members agreed on the procedures of how a member can trade such power with any other member without necessarily having it scheduled to his system first while at the same time meeting contractual obligations with the original seller of such power. 6. Market Guidelines Development The SAPP tasked the MSC to develop the SAPP Market Guidelines.The MSC has since completed the development of the guidelines for existing markets in the SAPP, which include, guidelines for Bilateral trading, Over the Counter (OTC) trading and the Day Ahead Market trading platforms. The final document is currently being reviewed for consistency by the SAPP prior to implementation. Cumulatively, a total of 66,720.31 MWhr was matched but only 38,350.80 MWhr was actually traded since market opening . As a result, a total of 28,369.51 MWhr or 42.5% of what was matched could not be traded due to transmission constraints. Page 24 The guidelines are designed to ensure coordinated trading among SAPP Members, efficient use of shared facilities and to achieve high levels of system reliability of the interconnected SAPP system. They specify how each of the identified SAPP Markets shall be developed, operated and managed. SAPP 2012 Annual Report
  25. 25. MARKETS SUB-COMMITTEE REPORT 7. DAM System Surveillance Projects Upgrade and Market The SAPP upgraded its trading platform during the year under review.The upgrade is in line with changing technology and involved installation of a new software and hardware for the trading system. In addition a Market Surveillance (MS) function was incorporated into the upgraded system. The MS function would ensure easier access to the market information by the market surveillance team, generation of reports for market analysis and reporting. 9. Traders and Operators Forum The 8th SAPP Traders and Operators Forum was hosted by HCB in Songo, Mozambique from the 19th to the 20th of October 2011. All SAPP Operating Members were represented. Various issues about SAPP interconnected system control, operations and energy trading were discussed. Delegates also took a familiarisation tour of the Cahora Bassa 2,075MW hydro-power station and Songo high voltage substation. 8. Capacity Building The development and operation of a competitive market comes with a number of challenges and for SAPP this is not an exception. The Markets Sub Committee developed a capacity building needs document that identified key areas for capacity building of the SAPP members. During the period under review, the SAPP had a workshop on Energy markets.The workshop was held on 26-27 July 2011 in Johannesburg, South Africa. The consultant, PPA Energy, presented and facilitated discussions on Day Ahead Market, Post Day Ahead Market, Capacity Market, Balancing Market, Financial Market and Ancillary Services Market and Control Area Services. Participants were exposed to arrangements of energy markets in major interconnected power systems in the world. Recommendations were put forward for SAPP and these are currently being considered for implementation. Participants at the 8th Session of the Traders and Operators Forum – Cahora Bassa, Mozambique. 10. Acknowledgements I would like to express my sincere gratitude to the Markets Sub Committee (MSC) team whose dedication to see the SAPP market succeed has been overwhelming during the year. I would also like to pay special tribute to our cooperating partners and in particular, the Government of Norway, Sida, the European Union etc whose continued commitment and support towards the implementation of the SAPP competitive market is very much appreciated. The SAPP CC team headed by the Centre Manager, Dr Lawrence Musaba, has also been splendid in the organisation, running and management of the SAPP market. Together with the respective market participants and their respective traders and system controllers, they contributed towards the market performance to date and their continued participation immensely contributed towards the success of the market during the period under review. Participants at the SAPP Workshop on Energy Markets held in July 2011, Johannesburg, SA SAPP 2012 Annual Report Mr Adérito Sousa Markets Sub Committee Chairperson Page 25
  26. 26. ENVIRONMENTAL SUB-COMMITTEE REPORT 2.3 DRC- Zambia Interconnector The ESIA Studies where approved and decision letters issued on the DRC side. On the Zambian side, the approval was issued in March 2009. Implementation of the project has commenced on the DRC side with towers installed as far as the Kasumbalesa border between Zambia and the DRC. On the Zambian side, land preparation in readiness for project implementation commenced in March 2012. 2.4 Mozambique Central and South Backbone Mr.Joseph L. Phalalo BPC (Botswana) Environmental Sub-Committee Chairperson 1. Introduction Environmental issues have become an integral entity of the Southern African Power Pool especially in view of the current climate change challenges resulting from electricity generation in the region. Climate change also affects the electricity sector in various ways and hence the need to come up with mitigation and adaptation measures on climate change. The SAPP therefore takes environmental issues seriously in all its operations. 2. Environmental Status of SAPP Transmission Projects 2.1Zimbabwe-Zambia-Botswana-Namibia Interconnector (ZIZABONA) Environmental and Social Impact Assessment (ESIA) studies for the lines have been completed and approved in Zimbabwe and Zambia while the same studies are currently on- going in Botswana and Namibia. 2.2 Zambia-Tanzania-Kenya Interconnector The ESIA was approved five years ago and has since expired and hence needs to be re-submitted to the Environmental Management Authority in Zambia.The Pensulo to Kasama stretch will be developed first and the ESIA for the stretch is currently being updated. The ESIA studies are underway on the Tanzanian side after which a Resettlement Action Plan (RAP) will be undertaken. Page 26 The consultant undertaking the Environmental and Social impact studies is revising the report for final submission to the Environmental Management Authorities for review and approval before construction can commence. 3.Climate Change 3.1 Conference of Parties (COP 17) SAPP participated at the United Nations Framework Convention on Climate Change (UNFCCC) seventeenth Conference of Parties (COP 17) which took place from 28 November to 9 December, 2012 in Durban, South Africa. About 12, 480 delegates converged in Durban from Governments, UN Bodies and agencies, Intergovernmental organisations, media, and NGOs. The key outcome of the conference was the decision to extend the second commitment period under the KyotoProtocol starting January, 2013 and to run until 2017 or 2020. This outcome provides the SAPP an opportunity to register planned renewable energy projects for funding under Clean Development Mechanisms (CDM). The conference also saw the operationalisation of the Green Climate Fund with financing of USD100 billion by 2020 to support projects for clean energy and the development of programs and policies and other activities in developing country parties. 3.2 Global Electricity Initiative (GEI) During the COP 17 in Durban, the SAPP joined 25 other electricity utilities from Americas, Europe, Africa and Asia to form what is known as the Global SAPP 2012 Annual Report
  27. 27. ENVIRONMENTAL SUB-COMMITTEE REPORT Electricity Initiative (GEI).The premise of this initiative is that clean electricity is a fundamental solution to • the challenge of climate change. The GEI utilities were able to demonstrate that they are committed to continue with research and • development so as to contribute to the development of sustainable electricity industry and reductions in • Greenhouse Gas (GHG) emissions. The GEI utilities highlighted a variety of projects that they intend to implement that are geared towards sustainable hydropower generationoptions. Included in these initiatives are: • • • • Engaging with stakeholders to find practical and implementable approaches to address climate • change Moving towards an energy mix that has a greater proportion of lower carbon and carbon free technologies Focus on energy efficient measures and loss • reduction measures Working together with other utilites and organisations to share experiences technologies expertise and best practices 4. PCB Phase-out in the SAPP The SAPP received financial assistance from the United Nations Environmental Programme (UNEP) for the implementation of the PCB Phase-out project in the SADC region. The project would ensure the phasing out PCBs from the SADC region by 2025 as per the Stockholm Convention on Persistent Organic Pollutants(POPs) requirement. Implementation of the project is in two phases. Phase 1 of the project focuses on capacity building on the handling and management of PCBs while phase 2 would include the collection, transportation and disposal of PCB contaminated material. The year under review witnessed the completion of phase 1 of the project. The components completed under the phase are as follows: • • The meeting of SAPP ESC and UNEP/SSC to facilitate strategic action plan on the PCB Project was held in May, 2011 Production of leaflets on PCB handling and managementwas completed and leaflets were distributed to all utilities Specific Guidelines for Team Leaders and Technicians on safe handling and management of PCB contaminated materials and equipment was done and the guidelines were distributed to members for use. The same guidelines were translated to Portuguese and French for use by members from Mozambique/Angola and the DRC respectively Production of a Short Documentary to raise awareness on dangers of PCBs was done and the documentary was distributed to all members for broadcasting at their respective national broadcasting stations. Endorsement Letters from utilities – as per the UNEP requirement, utilities are required to make a submission endorsement letters to the UNEP through their National Focal Points on PCBs. I am pleased to report that all SAPP utilites including those of Mauritius and Madagascar submitted their endorsement letters to UNEP through their National Focal Points on PCBs Some members of SAPP Utilites carrying out PCB inventories All utilities were able to carry-out detailed inventories of all PCB contaminated equipment at in their respective countries Training on PCB Handling and Management for all SAPP utility Environmental Managers was successfully done in May, 2011 SAPP 2012 Annual Report Page 27
  28. 28. ENVIRONMENTAL SUB-COMMITTEE REPORT 5. Sustainable Development Bulletin for the Based on standard weighting of the BM and the OM, Southern African Power Pool the SAPP Grid Emission Factor was calculated to As part of Environmental awareness, the be 0.9216 tCO2/MWh.If approved by the United Environmental Sub-Committee continues to publish Nations Framework Convention on Climate the monthly bulletin on various environmental Change (UNFCCC), the SAPP member states will issues. The bulletin is circulated to a regional - wide be able to use this factor for all Clean Development audience of stakeholders and is also available on the Mechanisms(CDM) projects. SAPP website. 8. Earth Hour 6. Training The Earth Hour which Involves individuals and Members of the Environmental Sub- Committee businesses switching off lights for one hour on received training on “Handling and Management a selected day every year was started in Sydney, of PCBs in Johannesburg in May, 2011 as well as, Australia in 2007 when 2.2 million individuals and Strategic Environmental Assessment”(SEA) during businesses turned their lights off for one hour to take the course of the year under review. Training on PCB a stand against climate change. Since then, the event Management was sponsored by the Government of has been held annually with more countries joining Norway through the UNEP, Secretariat of Stockholm in. Earth hour 2012 was on 31 March and about 135 countries participated including some SADC states Convention. The EU sponsored training on SEA. like Swaziland and Lesotho and South Africa. 9. International Hydropower Association (IHA) 2011 World Congress on Advancing Sustainable Hydropower Members of the SAPP Environmental Sub-Committee who received training on “”PCB Handling and Management” in Johannesburg, South Africa 7. SAPP Grid Emission Factor With financial support from the German Federal Ministry of the Environment, UNEP and the UNEP Risoe Center initiated a study to examine how to best take into account exports and imports of electricity across the national boundaries in the South African Power Pool (SAPP) and to systematically analyze issues associated with the sub-regional grid electricity system in order to develop national Grid Emission Factors (GEFs) in SAPP member countries for application in Clean Development Mechanism projects. Page 28 The SAPP participated at the International Hydropower Association (IHA) biannual World Congress on Advancing Sustainable Hydropower in Iguaçu, Brazil from 15-17 June 2011. Over five hundred participants from 71 countries attended the Congress. Representatives from the hydropower industry who are members of IHA, including utilities and operators, as well as representatives of social and environmental non-governmental organizations (NGOs), indigenous communities, multilateral finance institutions and research centres participated in the meeting. Following previous Congresses held in Antalya,Turkey in 2007 and Reykjavik, Iceland in 2009, this event included the launch of the Hydropower Sustainability Assessment Protocol, the result of a joint effort by the industry and environmental and social NGOs to define criteria for the sustainable management of hydropower projects. The meeting presented a broad view of the sustainability challenges to hydropower development, reflected on the latest Intergovernmental Panel on Climate Change (IPCC) assessment noting sustainability does not have a direct relationship with dam size, and discussed SAPP 2012 Annual Report
  29. 29. ENVIRONMENTAL SUB-COMMITTEE REPORT the opportunities arising from the growing interest in green growth strategies within the international community, as well as from the growth of carbon market finance opportunities. (MANCO) and the SAPP Executive Committee (EXCO) for putting environmental issues at the fore of the SAPP operations. Mr. Joseph L. Phalalo Environmental Sub-Committee Chairperson Reporters at the Regional Cooperation Workshop held during the IHA Congress in Brazil. From left to right: Johnson Maviya, Southern African Power Pool, Emmanuel Branche, EDF, Collin Clark, Brookfield Renewable Power and Aaron Salzburg, US Department of State Members of the SAPP Environmental Sub- Committee 10. Key Performance Indicators All SAPP utilities reported on their Key Performance Indicators during the year under review. It is encouraging to note that significant progress was made in terms of the following: • • • • • • 90% of all SAPP utilites now have Environmental Policies in place. 50% of all SAPP utilities have established some aspects of Environmental Management Systems. Several Environmental and Social Impact Assessments for both Generation and Transmission projects were completed and approved during the course of the year. Environmental awareness programmes are taking place at utility level in all SAPP member states. Programmes to phase-out PCB contaminated equipment is in place through funding from UNEP. Various forms of energy efficiency and Demand Side Management programmes are being implemented at all SAPP utilities. 11. Acknowledgement I would like to extent my gratitude to all members of the Environmental Sub-Committee for the hard work executed throughout the year,noting that this is my first year as the chairperson of the sub-committee. May I also take this opportunity to thank the Environmental Officer, Johnson Maviya for his efforts in co-ordinating all issues on EnvironmentalManagement within the SAPP and the SAPP Management Committee SAPP 2012 Annual Report Page 29
  30. 30. SAPP CO-ORDINATION CENTRE REPORT SAPP CO-ORDINATION CENTRE REPORT Dr. Lawrence Musaba Coordination Centre Manager Mr. Musara Beta Chief Market Analyst Mr. Sydney Zimba Operations Engineer Mrs Caroline Muringai IT Specialist Mrs. Daisy Gombera Finance & Admin Officer Mr. Johnson Maviya Environmental Officer Mr. Elisha Mutambudzi DAM Market Finance Officer Miss Edeline Mujogondi Secretary Mr. Simon Jaricha Messenger Mr. Alison Chikova Chief Engineer Page 30 SAPP 2012 Annual Report
  31. 31. SAPP CO-ORDINATION CENTRE REPORT SAPP and ACTOM officials during SAPP SCADA System Site Acceptance Tests Dr. Lawrence Musaba SAPP Coordination Centre Manager In the year under review from 1 April 2011 to 31 March 2012, the SAPP Coordination Centre (SAPP-CC) carried out a number of activities under the direction of the Coordination Centre Board, the Management Committee and the Executive Committee. The main activities were: i. Liaising with the government of Norway, Sida and the Development Bank of Southern Africa (DBSA) to secure preparatory funds for the Zimbabwe-ZambiaBotswana-Namibia (ZIZABONA) transmission project. ii. Liaising with the Government of Norway and Sida to secure funding for the SAPP Competitive Market. iii. Updating a criteria, developed in 2005, for selecting and ranking SAPP Priority Projects. A list that describes the SAPP Priority Projects up to 2025 have now been adopted by the Executive Committee. The list will be presented to the Ministers responsible for energy in the SADC region for adoption, endorsement and regional implementation. iv. Working with the contractor AREVA and Actom to implement and install the SAPP SCADA/ EMS system at the new SAPP offices in Harare. The system is now operational and was commissioned in June 2011. v. Renovating a property that was bought in 2010 to be the new SAPP offices. The SAPP-CC moved into the new offices in February 2012. 1. Human Resources The SAPP Human Resource Working Group met in Harare from 3 to 5 May 2011. The objective of their meeting was to carry out a resource utilisation and role clarity study for the SAPP Coordination Centre. A draft report containing the findings of the Working Group and the key preliminary recommendations has been submitted to the Coordination Centre Board for consideration. 2. Meetings and Workshops 2.1 SADC Energy Ministers Meeting Ministers Responsible for Energy in the Southern African Development Community (SADC) held their 32nd meeting at the Gaborone International Conference Centre (GICC) in Gaborone, Botswana, on the 26th May 2011. The meeting was preceded by a preparatory meeting of Senior Energy Officials on the 24th and 25th May and was opened by the Minister of Minerals, Energy and Water Resources of Botswana, Honourable P. H. K. Kedikilwe, while Hon Isak Katali, Minister of Energy and Mineral Development of Namibia chaired the meeting. The status of the generation and transmission projects in the region was presented by the SAPP-CC including the activities on the SAPP Day Ahead Market. The Ministers noted that the peak demand in 2010 was 45,650MW which requires generation capacity amounting to 50,306MW taking into account the need to meet the 10.2% minimum reserve SAPP 2012 Annual Report Page 31
  32. 32. SAPP CO-ORDINATION CENTRE REPORT capacity requirements. With the available capacity at 49,981MW this gives a deficit of 325MW. According to the current projection, the region will attain selfsufficiency in power by the year 2016, provided implementation of planned projects remains on course. criteria for prioritising SAPP projects and concluded by submitting a list of the SAPP priority projects. 2.2 SADC Multi-sector Water Dialogue The sixth Coordination Meeting of the African Regional Power Pools was held in Mombasa, Kenya, from 12-13 April 2011. SAPP was represented by Eng. Alison Chikova. The projects being undertaken in the region were discussed especially transmission interconnector projects. The meeting highlighted the need to harmonize technical standards. The 5th SADC Multi-Stakeholder Water Dialogue 2011 whose theme was “Watering Development in SADC; Financing Water for Climate Resilience to Ensure regional Security”, was held in Swaziland from 28-29 June, 2011. The dialogue’s main objective was to ensure that stakeholders have an understanding of climate change finance. The dialogue resulted in an increased understanding on issues relating to climate finance and where finance can play a role in adaptation and water sector development. Delegates received an update on the developments in the United Nations Framework Convention on Climate Change (UNFCCC) negotiations, specifically the design phase of the Green Climate Fund (a fund which could play a major role in delivering climate finance to the continent over the next decade). The SAPP was represented by the Environmental Officer, Mr. Johnson Maviya. 3. Technical Cooperation 3.1 Forum for Power Pools 3.2 PIDA Technical Committee Workshop The Programme for Infrastructure Development in Africa (PIDA) engaged a consultant to work on a criteria that will be used to identify infrastructure projects for development in Africa under the PIDA programme. The main areas of focus are Energy, Communications, Water and Transport. The consultant completed the Draft Report. A workshop was therefore held in Libreville, Gabon, on 18-19 April 2011, whose main purpose was to discuss the report contents and validate the critiea used and the projects identified. 2.3 SADC Infrastructure Master Plan The workshop was attended by the African Regional Economic Communitiees (including SADC) and the The SADC Infrastructure Master Plan kick off meeting regional coordinating agencies. Mr Musara Beta, the was held on 5 October 2011 in Johannesburg, South SAPP Chief Market Analyst attended on behalf of the Africa. The objective of the meeting was to introduce SAPP. the consultants to the project team and review the project implementation roadmap. 3.3 Central African Power Pool Meeting 2.4 SADC ETG Meeting The Central African Power Pool (CAPP) held the Electricity Forum and Exhibition in Brazeville, Congo, The second SADC Energy Thematic Group (ETG) from the 6-10 of June 2011. The SAPP Chief Engineer meeting for the year took place in Gaborone, attended and presented on possible opportunities Botswana, on 14 November 2011. The meeting was for cooperation and regional integration attended to by the international cooperating partners . (ICPs), SADC Secretariat, SAPP and RERA. The opening statement was given by the SADC Deputy 3.4 ICEM – SAPP Meeting Executive Secretary, Mr. Joao Caholo. The Norwegian Ambassador to Maputo also gave welcome remarks, The International Federation of Chemicals, Energy, Mine and General Workers„ Unions (ICEM) since Norway is the Lead ICP on energy. coordinates the unions in the energy sector in SADC. The SAPP presentation mainly touched on the The ICEM held a meeting with SAPP on 30 June 2011. The purpose was to familiarise the two oragnisations Page 32 SAPP 2012 Annual Report
  33. 33. SAPP CO-ORDINATION CENTRE REPORT with their current activities and identify possible areas of cooperation. 3.5 High-level Workshop on PPPs in the energy sector in Africa The United Nations Economic Commission for Africa (UNECA), in conjuction with the Korea Energy Economic Institute (KEEI), organised a workshop on public-private partnerships (PPP) implementation in the energy sector in Africa in Addis Ababa, Ethiopia, on 30 June to 1 July 2011. The workshop marked the beginning of a series of workshops on PPPs implementation frameworks in the major infrasturcure sectors and public service in Africa. The SAPP was representd by Dr Musaba. The main objective of the workshop was to examine the main challenges and prospects to scale up private sector investment in the energy sector in Africa, with a special focus on the main components of the PPP implementation framework. Through the analysis of the African and international best practices, the workshop examined the set of main principles for the PPP implementation framework in terms of processes and institutions, project structures, and recommended legislative and regulatory arrangements that would result in the optimal risk alocation and improvements in financing and deal structuring arrangements. Mr.Visvanaden Soondram, Lead Analyst PPP Unit, Ministry of Finance, Port Louis, Mauritius and Dr Lawrence Musaba (SAPP) with some of the delegates from Korea 3.6 PIDA Technical Meeting A high level techincal meeting was held in Tunis, Tunisia on 7-8 July 2011. The main purpose of the meetings was to discuss the draft Energy Sector Brief documents presented by the SOFRECO-led consortium.The Sector briefs constitute the outcome of phase 2 of the PIDA study process. It comprises four sections: Section 1: dealing with a summary of the continental and regional outlook up to 2040. This includes a summary and statement of an energy vision, outlook of energy demand, production, and investment needs. Section 2: dealing with strategic options and eligibility and selection criteria for PIDA projects; Section 3: dealing with the application of the eligibility and selection criteria to come out with a draft list of projects; and Section 4: dealing with an outline of the Priority Action Plan (PAP) The following organizations were represented: AUC, NPCA, RERA, UMA, UNECA, ECOWAS,WAPP, SAPP, AfDB, and the Panel of Experts. Mr. Cherif Salif SY, Director General of Cherif Salif SY International Consulting Services, Dakar, Senegal, and Dr Lawrence Musaba, SAPP Coordination centre Manager 3.7 AFUR workshop A workshop on Power Quality and Regulatory aspects was held on 20-22 July 2011 in Johannesburg, South Africa. The workshop covered a wide range of topics SAPP 2012 Annual Report Page 33
  34. 34. SAPP CO-ORDINATION CENTRE REPORT including power system planning and operations, power systems economics and regulatory aspects, reliability issues, standards and guidelines to power system regulation among others. The workshop was attended by energy & water regualtory bodies in Africa and power pools. The SAPP was represented by Dr Lawrence Musaba, the Centre Manager and Mr Musara Beta, the Chief Market Analyst. 4. Support from Cooperating Partners 4.1 SAPP- Sida- Govt of Norway AGM The SAPP-Sida-Government of Norway Annual General Meeting (AGM) was held in Harare, Zimbabwe, on 14 June 2011. The meeting agreed to a budget for the period from 1 April 2011 to 31 December 2011. The meeting also agreed to extend 3.8 East Africa regional Clean Energy Program the grant funding which was expected to expire on 31 December 2011 to 31 December 2012.As a result, Workshop a budget for the period from 1 January 2012 to 31 The East Africa Regional Clean Energy Program December 2012 was also agreed using the existing workshop was held in Tanzania from 17-18 October, grant funds and without recourse to further funding 2011.The aim was to bring private sector stakeholders, from the Government of Norway and Sida. project developers, and financiers together to promote development of Clean Energy in East Africa. 4.2 SAPP- EUEI PDF Meeting The key outcome of the workshop was that there is need to increase knowledge and understanding The SAPP Coordination Centre held a meeting on 15 of project finance among project developers, build June 2011 with the representative of the European Union Energy Initiative Partnership Dialogue Facility capacity of developers to develop bankable (EUEI PDF), Ms Annelie Gabrielson, and discussed the Clean Energy project proposals; strengthen the terms of reference for the proposed SAPP energy capacity of project developers to translate ideas into efficiency study. Phase-1 of the proposed study will bankable Clean Energy projects. The need to build closely coordinate the SAPP countries’ power sector the capacity of financial institutions to evaluate Clean energy efficiency interventions from the regional perspective. The assumption is that regionally Energy proposals also came up as one of the workshop’s key outcomes. The SAPP was coordinated interventions will prove more cost efficient that the ones undertaken independently by represented by Mr. Johnson Maviya. separate SAPP countries. The objectives of the study are: 3.9 EAPP visit to SAPP Delegates from the East Africa Power Pool visited • the SAPP Coordination Centre in Harare, Zimbabwe from 9 to 15 October 2011.The objective of the visit was to familiarize themselves with the operations • and setup of SAPP. • 3.10 AU Hydropower Workshop A workshop on the strategy for Large Hydropower projects Development in Africa was convened by African Union in Addis Ababa on 3-4 November, 2011.The workshop noted that potential for large hydropower exists in Africa. It was highlighted that there is need to give priority to projects with a regional impact as compared to national projects. The role of the private sector was noted and that appropriate framework for PPPs should put in place. Page 34 To enhance the use of the extensive potential and options for energy efficiency measures in the SAPP’s interconnected system, To provide a basis for decision making on appropriate energy efficiency interventions at a regional level, and To provide recommendations on high priority energy efficiency projects to be implemented at regional level. 5. Acknowledgement I would like to take this opportunity and thank members of staff of the SAPP Coordination Centre for their hard work during the year that has gone by. SAPP 2012 Annual Report Dr. Lawrence Musaba SAPP Coordination Centre Manager
  35. 35. SAPP STATISTICS Table1: SAPP EXISTING GENERATION STATIONS - 2011/12 Table 1: SAPP EXISTING GENERATION STATIONS – 2011/12 SAPP UTILITY GENERATOIN MIX , MW Technology / Utility Base Load Hydro Coal Nuclear CCGT Distillate Total SAPP UTILITY GENERATOIN MIX , MW Technology / Utility Base Load Hydro Coal Nuclear CCGT Distillate Total Table 2: YEAR 2011/12 INSTALLED CAPACITY VS PEAK DEMAND Table 2:YEAR 2011/12 INSTALLED CAPACITY VS PEAK DEMAND Installed Installed Capacity Available Capacity minus [MW] As at [MW] Available March March 2012 [MW] 2012 1400 108 1,508 No. Country Utility 1 Angola ENE 2 Botswana BPC 202 3 DRC SNEL 2,442 4 Lesotho LEC 72 5 Malawi ESCOM 287 6 Mozambique EDM 233 HCB 2,075 190 1,272 72 0 287 0 174 59 2,075 0 360 33 41,194 2,976 70 0 7 Namibia NamPower 393 8 South Africa Eskom 44,170 9 Swaziland SEC 70 10 Tanzania TANESCO 1008 11 Zambia ZESCO 1,812 12 Zimbabwe ZESA 2,045 1,320 56,317 53,514 50,812 48,225 TOTAL SAPP TOTAL SAPP Total Interconnected SAPP 870 12 1,170 2011 Peak Demand [MW] 542 1,050 125 277 616 ! 611 36,664 900 200 890 1,600 SAPP 2012 Annual Report 108 212 1,562 725 2,029 5,505 5,289 45,436 43,399 Page 35
  36. 36. SAPP STATISTICS Table 3 : Demand and Supply Growth 2011/12 Table Table 3 : Demand and Supply Growth 2011/12 2011/12 3: DEMAND AND SUPPLY GROWTH 11 12 2011 Peak Demand 2011 [MW] Peak 870 Demand 542 [MW] 1, 050 870 125 542 277 1, 050 616 125 611 277 36,543 616 200 611 890 36,543 1,562 200 2,029 890 Demand Growth [%] Demand 9.3% Growth -2.0% [%] -2.9% 9.3% 3.3% -2.0% 1.1% -2.9% 12.2% 3.3% 8.3% 1.1% 1.9% 12.2% -2.0% 8.3% 0.8% 1.9% 5.3% -2.0% 10.5% 0.8% ZambiaTOTAL ZESCO Zimbabwe ZESA 1,483 44,194 1,836 1,562 45,315 2,029 5.3% 10.5% TOTAL No. 1 2 No. 3 1 4 2 5 3 6 4 7 5 8 6 9 7 10 8 11 9 12 10 2010 Peak Demand 2010 [MW] Peak 796 Demand 553 [MW] 1,081 796 121 553 274 1,081 549 121 564 274 35,850 549 204 564 883 35,850 1,483 204 1,836 883 44,194 45,315 Country Angola Botswana Country DRC Angola Lesotho Botswana Malawi DRC Mozambique Lesotho Namibia Malawi South Africa Mozambique Swaziland Namibia Tanzania South Africa Zambia Swaziland Zimbabwe Tanzania Utility ENE BPC Utility SNEL ENE LEC BPC ESCOM SNEL EDM LEC NamPower ESCOM Eskom EDM SEC NamPower TANESCO Eskom ZESCO SEC ZESA TANESCO Table 4: :KEYStatistics 20 Table 4 Key STATISTICS 2011/12 1 1 /1 2 Generation Sent Out GWh/ Generation Employee Sent Out GWh/ 1.400 Employee 0.199 1.073 0.863 1.400 0.199 0.754 1.073 0.120 1.434 0.863 0.754 6.083 0.120 0.508 1.434 0.510 6.083 2.174 0.508 1.204 0.510 2.174 1.204 (PEAK Table 4 : Key Statistics 20 UTILITY UTILITY ENE BPC SNEL ENE LEC BPC ESCOM EDM SNEL NamPower LEC ESCOM ESKOM SEC EDM NamPower TANESCO ESKOM ZESCO SEC TANESCO ZESCO Page 36 DEMAND) MW/ (PEAK Employee DEMAND) MW/ 2.170 Employee 2.901 1.475 2.220 2.170 1.251 2.901 1.899 1.475 6.714 2.220 1.251 9.393 1.899 3.527 6.714 1.496 9.393 3.172 3.527 3.515 1.496 3.172 3.515 SAPP 2012 Annual Report Number 1 1 /1 2 of Customers Number per of Employee Customers 63 per 135 Employee 60 105 63 135 85 60 312 4 105 85 119 312 171 4 157 119 80 171 100 157 80 100 Number of Customers Number per of Employee Customers 1.41 per 1.90 Employee 0.96 0.94 1.41 0.75 1.90 0.96 0.15 3.82 0.94 0.75 6.00 2.11 0.15 3.82 0.88 6.00 2.17 2.11 1.29 0.88 2.17 1.29
  37. 37. SAPP STATISTICS Graph 1: Number of Customers per Employee - 2011/12 Graph 1: NUMBER OF CUSTOMERS PER EMPLOYEE - 2011/12 Number of Customers per Employee- -2011/12 2011/12 Graph 1: Number of Customers per Employee 325 300 275 250 225 325 200 300 175 275 150 250 125 225 100 200 75 175 50 150 25 125 0 100 75 No. of Customers per Employee 50 Number of Customers per Employee - 2011/12 ENE BPC SNEL LEC ESCOM EDM 63 135 60 105 85 312 ENE BPC SNEL LEC ESCOM EDM NamPower ESKOM 4 119 SEC TANESCO ZESCO ZESA 171 157 80 100 SEC TANESCO ZESCO ZESA 157 80 100 25 0 NamPower ESKOM Graph 2: Utility Debtors Days No. of Customers per Employee 63 135 60 105 85 312 - 2011/12 4 119 171 Deptors Day Graph 2: Utility Debtors Days DAYS - 2011/12 - 2011/12 Graph 2: UTILITY DEBTOR Deptors Day SAPP 2012 Annual Report Page 37
  38. 38. SAPP STATISTICS AND FORECAST APPENDIX 1: PLANNED GENERATION PROJECTS IN SADC COUNTRIES WITH SECURED FUNDING, MW Table 1: SAPP UTILITY GENERAL INFORMATION 2011/12 STATISTICS Page 38 SAPP 2012 Annual Report
  39. 39. SAPP STATISTICS AND FORECAST Table 2: ANNUAL MAXIMUM DEMAND FORECAST: 2011 TO 2025, MW Table 3: ENERGY FORECAST: 2011 TO 2025, GWH SAPP 2012 Annual Report Page 39
  40. 40. OPERATING SUB-COMMITTEE REPORT Appendix 1: Some System Disturbances (1 April, 2011, to 31 March, 2012) Most Affected Utilities / Countries Details of the system disturbances Eskom (South Africa), BPC (Botswana) On Friday 1 April 2011 at 07H51 the 132kV bus zone protection operated at Spitskop Substation in Eskom tripping several 132kV circuit breakers including the following 132kV lines connecting to BPC: Spitskop – Phokoje no. 2, Spitskop – Gaborone South no. 2, and Spitskop Segoditshane no. 1. Upon investigation, it was found out that the 132kV blue phase line CT on the 132kV Spitskop – Phokoje 2 line was burnt. All feeders were returned to service by 08H34. Eskom (South Africa), BPC (Botswana) On Friday 8 April 2011 at 09H45 the 132kV bus zone protection operated at Spitskop Substation in Eskom tripping several 132kV circuit breakers including the following 132kV lines connecting to BPC: Spitskop – Dwaalboom no. 1 and Spitskop – Segoditshane no. 1. Upon investigation, it was found out that the trip was initiated by system protection personnel who were working on the junction box for Transformer 42. A load of about 300MW was lost. All loads were restored by 10H05. SNEL (DR Congo) On Friday 6 May 2011 at 02H33, the 220kV blue phase of the circuit breaker for synchronous condenser 02 exploded at Kolwezi Converter Station (due to ageing) leading to tripping of the converter 21 and the following 220kV and 120KV system lines: Nseke - SCK L11 and L12 , SCK - Fungurume L21,Fungurume - Panda L41 and L42, SCK- RO; and Generator Machines 01 and 02 at Nseke power station. The system was restored at 05H47. The converter was restored with 70 MW only because of the condenser machine outage. SNEL exports to BPC and ZESA were affected. HCB (Mozambique), ZESA (Zimbabwe) On Monday 16 May 2011 at 08h02, the SAPP system split into two islands in the ZESA Control Area. The disturbance was triggered by events at Songo where a generator on the HVDC bus bar tripped on mechanical protection (high temperature) and the 220kV bus coupler circuit breaker tripped on excess energy variation protection. The events caused power oscillations which led to tripping of the following 330kV lines on distance protection in the ZESA system: Bulawayo - Insukamini, Insukamini-Hwange and Hwange-Sherwood 1. Further, all 4 generators on bars at Hwange subsequently tripped. ZESA lost total generation of 411MW and load of 69MW due to overvoltage protection and at Hwange due to blacking out. The SAPP system synchronism was re-established at 09h05. HCB (Mozambique), ZESA (Zimbabwe) On Tuesday 24 May 2011 at 06H23, the 220kV bus coupler circuit breaker tripped at Songo on access energy variation protection triggered by load rejection on the HVDC lines. The AC and the HVDC loads were then split. One generator was out for maintenance at Songo as such the remaining four generators were feeding both the AC and HVDC loads. With the split, EDM North inadvertently absorbed about 79MW from the ZESA system. At 06H24 the 220kV and 330kV circuit breakers at Songo tripped on transformer over-excitation protection due to high voltages on the AC network. At 07H07 the 330KV circuit breaker was closed and the Songo-Bindura line was synchronised at 07H12 on the Bindura side. At 07H13 the 220kV bus coupler circuit breaker was back in service, bringing the system back to normal. ZESCO (Zambia), HCB (Mozambique), ZESA (Zimbabwe) On Thursday 9 June 2011 at 15H59 the 330kV bus coupler circuit breaker at Kafue West Substation, out of service since 2 June 2011, was being restored. In the restoration process, due to loss of station auxiliary power supplies, the 330kV main bus isolator for Kafue Town line stalled in an intermediate position and flashed over during opening. The distance protection on the bus coupler operated and tripped the bus coupler breaker. The fault was further cleared by automatic tripping of remote station line breakers at Kafue Gorge and Leopards Hill. Further, the 220kV Victoria Falls – Muzuma line tripped on under-voltage protection, islanding the Victoria Falls Power Station in the process. Power swings were then observed on the SAPP system, leading to tripping of the 400kV Insukamini – Phokoje line (Zimbabwe-Botswana interconnector) on distance protection all phases. At Cahora Bassa the 220kV bus coupler circuit breaker tripped at Songo on maximum-angle-exceeded protection. A state of overfrequency was experienced in the northern island of Zimbabwe, Zambia and Mozambique North. At Kariba South generator no. 5 and at Kariba North generator no. 2 tripped on over-frequency. Some sensitive mining loads in Zambia were also lost on over-frequency and over-voltage protection. In Zimbabwe, six units at Hwange Power station generating about 575MW tripped on sensitive power, load angle and field failure protection. The Zimbabwe-Botswana interconnection was re-synchronised at 16H38. Eskom (South Africa), LEC (Lesotho) On Friday 10 June 2011 at 11H00 the 132kV red phase CT (current transformer) on the Mabote Feeder no. 1 at Maseru bulk supply point exploded. This led to loss of supplies in Lesotho for about one hour and then supplies were restored via the Mabote Feeder no. 2. Rains and bad weather hampered progress on replacement of the CT. HCB (Mozambique), ZESA At 10h20:23 on Saturday 2 July 2011 the converter bridge no. 2 at Songo Converter Station tripped on valve control protection. Then at 10h20:24 the 220kV bus coupler circuit breaker tripped on excess energy protection. Then at 10h20:25 there was 60% of 720MW load rejection Page 40 SAPP 2012 Annual Report
  41. 41. OPERATING SUB-COMMITTEE REPORT Appendix 1: Some Major System Disturbances (1 April, 2011, to 31 March, 2012 (Zimbabwe) in pole 2 to Apollo Converter Station. Then all the six (6) generators at Songo tripped on earth fault secondary protection. Further investigation showed that the secondary protection resulted from delays in opening of one pole of the 220kV bus coupler breaker circuit breaker. The delay in opening of one of the poles of the circuit breaker caused unbalancing of the voltage and current on the generators. Generation of about 1254MW was lost from Songo and frequency dropped to 48.4Hz at worst point, resulting in generators no. 2 and no. 5, generating about 240MW, tripping on under-frequency protection at Kariba South. During the disturbance, as 220kV lines to Mozambique North and Center did not trip, EDM imported up to 102 MW from SAPP through the ZESA network. About 480MW of power flowed inadvertently from Eskom Control Area northwards. At 11h15:15, the bus coupler was returned to service. At 11h16:30 generator no. 1 was synchronised and HCB started exporting 230 MW via Songo-Bindura line. Between 13h39:00 and 13h47:22 two generators (no. 3 and no. 5) were connected to the bus bar. At 13h49:00 generators no. 1 and no. 5 tripped on reverse power protection. At 13h51:49 the 220/330 kV circuit Breaker tripped again on transformer over excitation protection. At 15h35:59 Songo-Bindura line was returned to service and then power was restored according to the schedule. ZESCO (Zambia), ZESA (Zimbabwe) The ZESCO and ZESA systems experienced a system disturbance resulting in under frequency. Loads were lost throughout Zambia and Zimbabwe. The ZESA-ZESCO tie line swung from 47MW import to 152MW export. The ZESA-SNEL tie line also rose from 79MW to over 100MW. At 18H57hrs the Kariba South 1 & 2 interconnectors tripped on under-frequency. All generators in service tripped at Kariba South power station and Hwange power station on under-frequency and sensitive power, respectively. The 330kV Songo-Bindura interconnector also tripped. ZESA lost a total generation of 1117MW, imports of 225MW and all load. Restoration efforts commenced immediately and system significantly recovered by 00H00. At the time of the disturbance ZESA/ZESCO Control Areas were out of parallel with Eskom Control Area due to ZESA-BPC interconnector forced outage. ZESCO was controlling the northern island frequency while ZESA controlled the tie line. Numerous internal grid lines tripped on under-frequency and power swings. On Thursday 15 September, 2011, at 16H09 the ZESCO system experienced a partial system shut down, as the main grid collapsed except for islanded Victoria Falls Power Station feeding the southern part of Zambia and exporting to Namibia. All 330kV lines feeding Leopards Hill Substation from major ZESCO power stations (two lines from Kafue Gorge, two lines from Kariba North and one line from Kafue West) tripped on distance protection and under-frequency protection. Momentarily, the 330kV ZESCO - ZESA interconnection increased from 147MW to 461MW export to ZESA. The ZESCO - SNEL interconnector also tripped. Six Kafue Gorge Power station machines, generating about 850MW, tripped due to loss of load. (Over-frequency protection, mechanical over-speed protection and turbine governor fault protection operated.) The ZESCO - NamPower interconnector was not affected and remained synchronised to Victoria Falls Power Station. This system disturbance was attributed to jamming of the 330kV main bus bar isolator at Leopards Hill Substation during switching operation. The resulting imbalance activated the earth fault protection on the bus coupler. ZESCO (Zambia) Eskom (South Africa), HCB (Mozambique), SNEL (DR Congo), ZESA (Zimbabwe), ZESCO (Zambia) On Wednesday 27 September, 2011, at 16H23 Majuba Power Station units 4, 5 and 6, generating about 1,690MW, tripped on reverse power protection. The trip was initiated by a leakage in the cooling system. Power system frequency dropped to 49.10Hz at worst point. In Eskom, Drakensberg Power Station unit 4 auto-started and stage 1 of customer voluntary under-frequency load-shedding operated to about 1100MW. In ZESA, power oscillations were experienced and 330kV Bulawayo-Insukamini and 330kV Hwange-Sherwood no.1 lines tripped on main distance protection .Thus the interconnected system split within ZESA at 16H25as 330kV Haven-Bulawayo and 330kV Hwange-Sherwood no.2 were out of service.. This resulted in Hwange Power Station units 1, 5 and 6, generating about 350MW, tripping on sensitive power protection. 47MW load was lost and 500MW was shed for system stabilization and during synchronizing. The power swings were also experienced in ZESCO but generation units and transmission lines did not trip. However, the 330kV ZESA-ZESCO tie line reversed from ZESCO imports to about 400MW ZESCO exports. At HCB, the 220kV bus coupler circuit breaker tripped on under-frequency protection. In restoration, Eskom Majuba units 5 and 4 were resynchronised at 17H57 and 21H08, respectively. In ZESA, the interconnected system was resynchronised at 16H49. However, a split was again experienced at 18H19 at Bulawayo on the 330kV Insukamini line due to faulty circuit breaker. Synchronisation was established again at 19H08. BPC (Botswana), ZESA (Zimbabwe) On Tuesday 25 October, 2011, at 19H38 the 400kV Insukamini-Phokoje line (ZESA-BPC interconnector) tripped on distance protection zone 1 yellow phase to earth (Insukamini side). No generation or load was lost in ZESA but 80MW export schedule and all wheeling transactions from ZESA Control Area were curtailed. The line was returned to service at 20H04. But it tripped again twelve minutes later. The final attempt to restore it at 20H56 failed. It therefore remained out of service for investigations, checking and analysis of the line, terminal and protection equipment by both BPC and ZESA. However, line patrol and protection tests found no defect and the circuit was re-synchronised smoothly at 18H50 on Friday 28 October 2011. The disturbance was then attributed to adverse weather conditions. HCB (Mozambique) On Tuesday 27 December, 2011, at 18H41 all five generators tripped at Songo due to a fault on the telecommunication system between the HCB power station and Songo Substation. The SAPP 2012 Annual Report Page 5 of 6 Page 41

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