SOUTHERN AFRICAN POWER POOLSOUTHERN AFRICAN POWER POOL1

BRIEF ON SAPP POWER PROJECTS

by

Eng. Musara BetaChief Market Analyst

SAPP Coordination Centre

Zimbabwe Mining Indaba, Harare, ZIMBABWE

24-26 SEPTEMBER 2013

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KEY ISSUES

1. SAPP demand and supply situation

2. Short Term Generation Projects

3. Short Term Transmission Projects

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Demand and Supply Situation

No. Country Utility

Installed Capacity

[MW] As at Jan 2013

Available Capacity

[MW] Jan 2013

Suppressed Demand & Forecast Demand

Capacity Shortfall including reserves,

MW

Calculated Reserve Margin, %

1 Angola ENE 1,793 1,480 1341

2 Botswana BPC 352 322 604

3 DRC SNEL 2,442 1,170 1398

4 Lesotho LEC 72 72 138

5 Malawi ESCOM 287 287 412

6 Mozambique EDM /HCB 2308 2,279 636

7 Namibia NamPower 393 360 635

8 South Africa Eskom 44,170 41,074 42416

9 Swaziland SEC 70 70 255

10 Tanzania TANESCO 1380 1,143 1444

11 Zambia ZESCO / CEC/LHPC 1,870 1,845 2287

#REF! Zimbabwe ZESA 2,045 1,600 2267

57,182 51,702 53,833 (7,709) -4.1%

53,722 48,792 50,636 (7,079) -3.8%

TOTAL SAPP

Total Interconnected SAPP

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Reserve Margins as at March 2013

Projects need to go through screening to assess readiness

-7996

-5393

-1997

1268

3662

-9000-8000-7000-6000-5000-4000-3000-2000-1000

010002000300040005000

2013 2014 2015 2016 2017

Capacity Shortfall / Surplus, MW

-4284

-2418

-115

1001

3059

-5000

-4000

-3000

-2000

-1000

0

1000

2000

3000

4000

2013 2014 2015 2016 2017

Capacity Shortfall / Surplus, MWSAPP OPERATING MEMEBRS ONLY

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SAPP Planned & Required Capacity

Comparison of March 2013 & Sept 2013

Delays are evident due to various reasons

Projects shifting dates due to preparedness

Capacity balance by 2017 but energy balance by 2019

This is due to low load factor plants being commissioned.

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

2012 2013 2014 2015 2016 2017 2018

MW

Planned Capacity vs Forecast , MWAll SAPP Members

Forecast Capacity Planned

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

2012 2013 2014 2015 2016 2017 2018

MW

Planned Capacity vs Forecast , MWAll SAPP Members (As at Sept 2013)

Forecast Capacity Planned

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Projects Commissioned in 2012

No Utility Country Name Type

Capac ity

[MW]

1 ENE Angola Lobito Thermal 30

2 ENE Angola Gove Hydro 60

3 ENE Angola Futila Thermal 70

4 ENE Angola Mabubas Hydro 25

5 ENE Angola New CFL Thermal 125

6 DRC SNEL Inga 1 Hydro 55

7 DRC SNEL Nseke Hydro 65

8 Namibia NamPower Ruacana Hydro 92

9 Mozambique EDM Ressano Gacia Gas 100

10 Tanzania TANESCO Ubungo Gas 100

11 LHPC Zambia Hydro Hydro 612 Eskom South Africa Komati Coal 303

1031

GENERATION PROJECTS

TOTAL

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Committed Generation Projects – as of March 2013

3 % is Renewable Energy (Wind and Solar) from 2013 to 2016

No Country

2013 2014 2015 2016 TOTAL

1 Angola 0 645 550 2415 3,610 2 Botswana 600 - - 300 900 3 DRC 55 - 580 - 635 4 Lesotho - 25 300 - 325 5 Malawi 64 - - - 64 6 Mozambique - 150 300 300 750 7 Namibia 60 - - - 60 8 RSA 923 3,105 2,543 1,322 7,893 9 Swaziland - - - - -

10 Tanzania 60 160 500 1,110 1,830 11 Zambia 230 315 600 164 1,309 12 Zimbabwe - 300 690 900 1,890

1,992 4,700 6,063 6,511 19,266 TOTAL

NEW GENERATI ON CAPACI TY, MW

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Planned Projects for 2013 - as of Sept. 2013

Some projects under commissioningA number of delays have been encountered on some projects. This is 800 MW short than initially reportedSome delays are beyond the utilities’ control.

No Utility Country Name Type

Capacity

[MW] Funding / Status

1 BPC Botswana Morupule B Coal 600 Commissioning

2 IPP Zambia Ndola Energy HFO 50 Commissioning

3 SNEL DRC Inga 1 Hydro 55 Commissioned

4 IPP Tanzania Mwanza HFO Gas 60 Under construction

5 Eskom

South

Africa Komati Thermal 101 Under construction

6 Eskom

South

Africa Solar Solar 100 Under construction

7 IPP Malawi Kapichira Hydro 64 Under construction

8 ZESCO Zambia Kariba North Hydro 180 Under construction

1210TOTAL

GENERATION PROJ ECTS -2013 TARGET

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Mozambique - Malawi Utility Project Teams formed and communication

protocol set.

Mozambique Backbone – STE 4 Reports concluded and to be discussed by the

shareholders in Oct 2013. Roadmap to be done in consultation with generation

project integration (Mpanda Nkuwa)

Kafue Livingstone Upgrade Completed

TRANSMISSION PROJECTS STATUS

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Zambia - Tanzania – Kenya (4 Segments) Funding being sought by TANESCO Preliminary meeting held with EAPP on Grid Code

Interconnection requirements SAPP to initiate dialogue with EAPP to do joint studies to

assess impacts

DRC - Zambia 220kV Interconnector Work was completed on DRC side and is expected to

be competed in 2014 by CEC

TRANSMISSION PROJECTS STATUS

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ZIZABONA EOI for 3 packages received & detailed RFPs to be

submitted by 6 companies on each component.1. Transaction and Technical Advisory Services,2. Environmental and Social Impact assessment

(ESIA) for line in Zambia3. Project Coordination and Supervision

SPV to be set in Namibia Eskom and CEC invited to participate in project. Eskom technical due diligence process still underway

TRANSMISSION PROJECTS STATUS

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CTC Project Status Tender awarded for most project components Transaction Advisory Services to be developed ZESA and Eskom Joint Technical Committees

meeting regularly SAPP CC to be invited to participate in the project

Mozambique – Tanzania Interconnector Study to be done with World Bank financing

TRANSMISSION PROJECTS STATUS

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THANK YOU