12
Integrated Resource Plan
Cabinet, at the end of August 2018, approved the draft
updated Integrated Resource Plan 2018 (IRP 2018)
report for publication for public input.
Media statement from Jeff Radebe, Minister of Energy
The National Development Plan (NDP) identifies the
need for South Africa to invest in a strong network
of economic infrastructure designed to support the
country’s medium- and long-term economic and
social objectives. Energy infrastructure is a critical
component that underpins economic activity and
growth across the country; it needs to be robust and
extensive enough to meet industrial, commercial,
and household needs.
The first IRP for South Africa was promulgated in March
2011. It was indicated at the time that the IRP should be
a ‘living plan’, which would be revised by the Department
of Energy (DoE) frequently. The promulgated IRP,
commonly referred to as the IRP 2010, is currently being
used to roll out electricity infrastructure development in
line with ministerial determinations issued under section
34 of the Electricity Regulation Act.
The electricity generation and distribution landscape in
South Africa is changing at a rapid pace compared to the
period before 2010. In keeping with our climate change
commitments, the country has also introduced renewable
energy through independent power producers.
Technology advancements and the decline in cost make
it possible for end users to now generate their own
A combination of multiple
sources form the mix of
energy solutions for South
Africa to meet the 2030 plan.
November 2018 Volume 24 I Number 9
electricity. Increasing electricity prices have also made
substitutes such as LP gas a viable alternative for cooking
and heating. Electricity demand is therefore no longer
captive to the national grid (Eskom or municipalities),
which affects supply and demand planning.
Through engagement with business, labour, and
community representatives at NEDLAC, rising electricity
prices are of concern to us, as they threaten to reverse
our energy access gains. Many of our people are
struggling to pay for the services and are therefore
reverting to using wood for cooking and so forth. This is
not the case only in rural areas but also in urban areas.
These cost pressures do not only affect households, but
they also affect industry. I am inundated with requests
for intervention from energy-intensive companies on the
verge of closing down due to high electricity costs.
In June, a framework was developed in consultation with
the National Energy Regulator of South Africa (NERSA),
which enables Eskom and the Regulator to consider
temporary special pricing agreements, which will assist
in avoiding these companies from closing down and
jobs being lost. These, I have to emphasise, will also
assist with Eskom’s falling electricity sales volumes. It
is therefore in this context that our electricity planning
philosophy aims to minimise the cost of electricity while
keeping up with our environmental commitments.
NOTABLE CHANGES OF THE IRP 2010
A number of assumptions used in the IRP 2010 have
since changed or have not materialised. The following
changes are noted.
• The electricity demand on the grid continues to
decline on an annual basis and we are currently
sitting at volumes similar to those of the year 2007.
For the financial year ending March 2018, the
actual total electricity consumed is about 30 per
cent less than what was projected in the IRP 2010.
• Eskom’s existing generation plant performance
is not at expected levels. Eskom’s own reports
show that plant availability is below the IRP 2010
assumptions of 80 per cent and above.
• To date, an additional 18 000 megawatts of new
generation capacity in the form of coal, pumped
storage, and renewable energy has been committed
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