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ESKOM RURAL ELECTRIFICATION EXPERIENCES - LESSONS LEARNT -

ESKOM RURAL ELECTRIFICATION EXPERIENCES - LESSONS LEARNT -. Presentation to UPDEA Workshop in Durban I. Sokopo. CONTENTS. Strategic Approach Commitment From Government Social Interventions Technical Interventions Process Institutional and Funding Arrangements Public Private Partnerships

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ESKOM RURAL ELECTRIFICATION EXPERIENCES - LESSONS LEARNT -

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  1. ESKOM RURAL ELECTRIFICATION EXPERIENCES - LESSONS LEARNT - Presentation to UPDEA Workshop in Durban I. Sokopo

  2. CONTENTS • Strategic Approach • Commitment From Government • Social Interventions • Technical Interventions • Process • Institutional and Funding Arrangements • Public Private Partnerships • Achievements to date • Electrification Success: Cumulative • Cost Per Connection • Way Forward • Lessons Learnt • Conclusion

  3. COMMITMENT BY GOVERNMENT • 1990-1993 Eskom performed 380 000 connections • 1994 - Target set by Government for 1,75m by year 2000. • 2001 to date - 3,3 million households electrified • Connection every 30 seconds, pole every 10 seconds, 200m cable every minute. • 1000 projects - 200 simultaneously each year.

  4. SOCIAL INTERVENTIONS • Critical to ensure success of any program • Existing structures not necessarily recognised by communities. • Electrification Committees set up • Transfer of skills crucial

  5. TECHNICAL INTERVENTIONS • Tackled in four areas. • Realistic load requirements • 3kVA - 0,4kVA • Type of supply • single or three phase • Utilisation of equipment • Poles, transformers, indicators used • Revenue management and metering • Prepayment

  6. PROCESS • Change from reactive to proactive target driven approach • Process had to be put in place • Lead time of 18 months • Centrally controlled. • Rolling plan reviewed every three months • very dynamic environment.

  7. INSTITUTIONAL AND FUNDING ARRANGEMENTS • UP TO 2000 • Funded by Eskom, flexibility, ability to meet targets, up front planning • 2000 TO PRESENT • Funded By Government • Stringent processes to follow • No certainty on future cash availability • Situation is improving • Numbers have dropped [Energy White Paper] • FUTURE – CONFIDENT OF LIAISON WITH GOVERNMENT TO ENSURE DELIVERY

  8. PUBLIC PRIVATE PARTNERSHIPS • USED FOR NON – GRID PV SYSTEMS • EXPENSIVE TO CUSTOMER • R100 connection fee compared to R0 • R60 per month compared to usage • R9/kWh compared to R0.5/kWh • ELECTRIFICATION NOT PROFITABLE EVEN WITH LIMITED SUBSIDIES

  9. ACHIEVEMENT TO DATE • By end 1999 Eskom electrified 1,750,750 households - bulk in rural areas. • 12% in 1994 to 46% at end 1999. • Achieved cost per connection reduction by over 50% in real terms. • Approximately 6000 PV systems • 8 500 schools and clinics

  10. ELECTRIFICATION SUCCESS CUMULATIVE CONNECTIONS

  11. WAY FORWARD

  12. LESSONS LEARNT • Need Vision From Government • Need Supply Chain • Up front planning • Pre – engineering • Funding for 132 kV networks • Need Technology, Standards, Process • Public Private Partnerships have limited success due to profit requirement

  13. CONCLUSION • Need to always learn from mistakes • Need to have strict control from a Central office with a clearly defined target and process • Sound Stakeholder management throughout the process

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