Eskom RT&D Overview

NSTF SUSTAINABLE ENERGY FOR ALL

IN SOUTH AFRICA

17 APRIL 2018

Sumaya Nassiep

Acting General Manager

Research, Testing & Development

Research, Testing & Development

2018/04/18 2

Business Mandates

Eskom Holdings SOC Ltd.

To provide electricity in an efficient and sustainable manner,

including its generation, transmission, distribution and sales

1.

Research, develop & select

next horizon technologies to

support Eskom’s future strategy

2.

Provide Specialist Technical

Testing & Inspection

Services

3.

Demonstrate next horizon

technologies

Risk & Sustainability Division

To provide long-term sustainable business performance& growing stakeholder

confidence by providing functional leadership to Eskom on Zero Harm, Quality, Low Carbon

Growth and Operations, and Reducing the Environmental Footprint

22.10.2017 3

RT&D Value Statement

Equipping Eskom leadership with knowledge to effect decisions today that will

optimise existing operational imperatives AND allow future generations to meet

their needs

RT&D Structure

R,T&D General Manager

S Nassiep (Acting)

Plant Performance &

Optimisation

N Haripersad

Power Delivery &

Utilisation

A Mashao

Sustainability

T Mogale

Technology Strategy

& Research Management

C Gross

Business Enablement

Middle Manager

N Hlela

Real Time Asset

Management

Information

Communication

Technologies

Socioeconomics,

Health & Safety

Materials and Plant

IntegrityDemand Management

Technology Strategy

and Research

Management

Air Quality, Climate

Change &

Ecosystems Mgmt.

Distribution Solutions

Underground Coal

Gasification

(UCG)

Renewable

Technologies

Fuels and Combustion

Transmission

SolutionsInnovation Circuit

Water Resources

Physical Metallurgy

Grid Planning and

OperationsProject Office

Applied Chemistry &

MicrobiologySMART Grids

Energy Markets:

Economics, Statistics &

Decision Sciences

System Dynamics

Emission Reduction

Technologies

Petroleum and Flow

Sciences

4

22.10.2017 5

Our People

HIGHEST QUALIFICATION TOTAL FEMALE MALE BCA

PhD - completed 13 2 11 5

PhD - underway 9 4 5 7

MSc (Eng) – completed 29 4 25 18

MSc (Eng) – underway 19 6 13 16

MSc – completed 30 18 12 23

MSc – underway 29 10 19 25

BSc (Hons) 40 10 30 20

BSc (Eng)/ B Eng completed 74 21 53 50

BSc (Hons) - underway 13 5 8 11

BSc - completed 15 8 7 13

BTech /BTech Eng 42 25 17 41

BTech - underway 25 13 12 25

National Diplomas 27 5 22 16

Total Further Studies (2017) 95 38 57 84

➢ 371 Employees

➢ 105 Engineers

➢ 57 Scientists

➢ 124 Technologists/Technicians

➢ 240 Learners Trained 2012-2017

RT&D Mandate & Work Integration

Research, Testing and Development

Mandate

Delivery & Outputs

Applied Research

Research, Develop and Select Next Horizon

Technologies to support Eskom’s future

objectives

Technical Consulting,

Testing and Inspection

Provides Specialist

Technical and Testing Services to support

Eskom’s existing asset base

Demonstration & Pilots

Demonstrate next horizon flagship

technologies within the business

Cap

acit

y &

Skil

ls D

evelo

pm

en

t

Leading technological development &

innovation in support of Eskom’s Evolving

Business Model

Flagship Projects

12 Grand Challenge Work Packages focussed

on the 8 Eskom Sustainability Dimensions:

Operational, Financial, Asset Creation, Climate Change &

Environment, Human Capital Growth, Social &

Transformation, Building a Solid Reputation

ES

KO

M D

IVIS

ION

S &

SU

BS

IDIA

RIE

S

Customers

Operational Excellence

Eskom RT&D’s most valuable contribution is answering the following research questions in the next 3 to 5 years

7

1. What would be our technology choices and future generation mix be in 2050?

2. How do we support (operate and maintain) our existing Generation, Wires & Retail business with severely constrained budgets?

3. How will Eskom adapt it’s business to the imminent strong technology disruptors and develop new business?

RT&D 12 Grand Challenge Focus Areas

8

9

Top 12 Grand Challenges for the next 5 years:

1. Coal: Development and implementation of technology and business solutions withinfive years that guarantee the quality of coal in line with plant design whilst ensuringthat the price of coal remains competitive relative to other resources

2. Water: Provide solutions that will support Eskom remaining within its 2% annualwater allocation whilst introducing new emission reduction technologies by 2020.

3. Clean coal: RT&D will provide innovative cost effective design solutions for lowemission coal options for Eskom in the next five years

4. Generation performance management and asset management: RT&D willprovide greater insight into plant condition for asset management purposes anddemonstrate technology solutions to drive performance to 80:10:10 sustainably

5. Gas: Can RT&D provide Eskom with gas strategic options and improve businesscase definitions based on the latest technologies, new applications and trends in thegas market within three years

6. Nuclear: RT&D will develop advanced high temperature gas cooled reactortechnology options for Eskom in the next five years

10

Top 12 Grand Challenges

7. Renewables: R,T&D will provide optimized solutions in support of Eskom’s

Corporate Plan through the delivery of at least 3-Renewables applications in the

next 3-years.

8. Transmission build solutions: RT&D will provide technology solutions for the

evacuation of power from new generation, including SADC, and for plant

refurbishment without customer interruption in constrained servitudes, and capex

within five years.

9. Transmission asset management and technical performance: RT&D will

provide greater insight into transmission plant condition for asset management

purposes and demonstrate technology solutions to improve operations and

maintenance under constrained budgets whilst maintaining system minutes

performance, within five years.

10. Distribution asset management and technical performance: Can RT&D assist

Distribution to achieve a step change improvement in technical performance (SAIDI

and SAIFI) by leveraging on technology innovations in the next five years

11

Top 12 Grand Challenges for approval cont.

11. Future Customer: Can RT&D formulate affordable value added, business products and services for Eskom’s existing and new customers based on an integrated, smart, green localised and energy efficient technologies in the next 3 years?

12. Flexibility: How do we operate our plant in a real time trading environment in the next 5 years?

FLAGSHIP PROJECTS

12

Projects

Target

FY17/18 FY18/19 FY19/20 FY20/21

FY21/2

2

Future customer revenue streams viz.

• eMobility

• Distributed Energy Resources

25% 50% 75% 100% N/A

Rural Off-grid Micro Grid Pilot 75% 100%

Unmanned Aerial Vehicle & Automated

Transmission Asset Inspection

50% 75% 100%

Bulk & Beyond Meter Energy Storage 20% 40% 80% 100%

Advanced high temperature gas reactor 20% 30% 40% 70% 100%

Coal logistics and assurance 50% 75% 100%

Underground coal gasification commission 40% 50% 70% 85% 100%

Establish Non-Destructive Test Facility 20% 40% 60% 100%

High voltage DC test site 50% 95% 100%

FY2019 Planned Research Allocations

13

1414

Developing Next

Horizon

Technologies