1. Click to edit Master subtitle style 3/10/11 DEPARTMENT OF ENERGY Integrated National Electrification Programme (INEP) Select Committee on Economic Development 8 March 2011

2. 3/10/1122 After 1994 and through the Government’s initiative of RDP (Reconstruction and Development Programme), electrification programme was endorsed. In the period 1994 – 2001 electrification was an electricity industry funded programme. During 2001 Government took responsibility for funding electrification programme, via funds made available from National Treasury. New drive is to increase access to electricity from 81% to 92% by 2014 instead of universal access due to limited resources and competing Government priorities. BACKGROUND

3. 3/10/1133 To manage the electrification planning, funding and implementation process, with the aim of addressing electrification backlog so as to reach Universal Access. Our Focus areas  Managing the electrification planning process  Managing the electrification funding allocation process  Managing the electrification implementation process  Monitor the INEP in line with the Energy White Paper, the Division of Revenue Act (DoRA), Public Finance Management Act (PFMA), Electricity Regulation Act, OHS Act etc. MANDATE OF INEP

4. 3/10/1144 Integrate electrification with other Government Departments programmes with the view of addressing Government objective of poverty alleviation and job creation. Ensure full participation of Local Government in the planning and implementations process by using IDPs. To facilitate greater participation of previously disadvantaged ccommunities in the operations and management of sector activities with a particular emphasis on women, youth and the disabled. Ensure effective and efficient service to the Minister of Energy OBJECTIVES OF INEP PROGRAMME

5. 3/10/11 55 ELECTRICITY VALUE CHAIN POWER STATIONS GENERATION TRANSMISSION LINES TRANSMISSION SUBSTATIONS DISTRIBUTION (< 132 kV) SERVICE CONNECTION RETICULATION HV LINE (11 & 22kV) TRANSMISSION (>132 kV) RETICULATION LV LINE (380/220V) DISTRIBUTION SUBSTATIONS Electricity is Generated by burning of fossil fuels (coal, oil, or natural gas), use of nuclear technology and hydro capability Transmission networks (or Transmission grids) is carrying High Voltage electricity between Generation and Distribution The distribution networks collect ‘stepped down’ electricity from the transmission networks and deliver it to Redistributors /End Users DISTRIBUTION (132/66/33/22 kV) Customer consumption is measured at the point of supply in KWh. This information is used to measure and bill consumption levels utilised/sold The voltage levels of electricity are further transformed to meet Distribution requirements 1 2 3 MUNICIPALITIES/ ESKOM

6. 3/10/11 GridNon GridUniversal Access 20A free connection Solar Home Systems 50w free connection Free Basic Electricity Policy Indigent households Households (rural, urban & farm dweller houses) Schools and Clinics APPROACH TO UNIVERSAL ACCESS

7. 3/10/11 Fiscal Grid ElectrificationEskomMunicipalitiesNon Grid ElectrificationConcessionaires Department of Energy National Treasury Implementing Agents Municipalities and Eskom Service Providers Donor Funding (KfW, EU) FUNDING MODEL

8. 3/10/1188 NATIONAL BACKLOG (HOUSEHOLDS)

9. PROVINCIAL BREAKDOWN - BACKLOGS PROVINCEBACKLOG% BACKLOGINFORMAL BACKLOGFORMAL BACKLOG Eastern Cape673,69419.88%67,369606,325 Free State200,6335.92%70,222130,411 Gauteng715,19521.11%572,156143,039 Kwazulu-Natal813,31524.00%162,663650,652 Limpopo340,06410.04%51,010289,054 Mpumalanga222,7556.57%44,551178,204 North West192,7745.69%48,194144,581 Northern Cape49,3751.46%17,28132,094 Western Cape180,3515.32%126,24654,105 Total3,388,156100.00%1,159,6912,228,465 99

10. Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level UN-ELECTRIFIABLE INFORMAL URBAN SETTLEMENT

11. ELECTRIFIABLE URBAN INFORMAL SETTLEMENT (TSHWANE MAHUBE VALLEY)

12. 3/10/11 TYPICAL EASTERN CAPE TERRAIN

13. 3/10/11 MTEF ALLOCATIONS AND ESTIMATED OUTPUTS 12:39:22 PM13 ALLOCATION 2010/11 ESTIMATED CONNECTIONS 2011/12 ESTIMATED CONNECTIONS 2012/13 ESTIMATED CONNECTIONS (R'000) (R’000) Municipal allocations R 1,020,104,00080 000R 1,096,612,00080 000R 1,551,443,00085 000 Eskom Allocations R 1,751,780,000100 000R 1,902,186,000100 000R 1,914,057,000125 000 Non Grid allocation R 68,200,00010 000R 70,861,00010 000R 86,370,00010 000 Total allocation R 2,840,084,000190 000R 2,937,285,000190 000R 3,551,870,000190 000

14. 3/10/11 ALLOCATION CRITERIA Backlog status; Electrification projects identified as part of the Integrated Development Planning (IDP) process; Rural bias; Development nodal zones (identified as part of the ISRDS process); Past Performance of licensed Distributors; Existence of completed houses as a preferred scenario; Area status (proclaimed / un-proclaimed); and Commitments not addressed during re-gazetting due to unavailability of funds. 1414

15. 3/10/111515 PROVINCE BULK INFRASTRUCTURE HOUSEHOLDSCONNSTOTAL EASTERN CAPE R 123,650,500 R 216,207,50019,466 R 339,858,000 FREE STATE R 34,837,000 R 43,226,0008,865 R 78,063,000 GAUTENG R - R 77,200,00014,026 R 77,200,000 KWAZULU R - R 219,851,0008,985 R 220,501,000 LIMPOPO R - R 128,000,00026,614 R 128,000,000 MPUMALANGA R 10,000,000 R 57,300,0009,975 R 67,300,000 NORTH WEST R - R 31,800,0006,014 R 31,800,000 NORTHERN CAPE R 10,702,000 R 10,653,0001,900 R 21,355,000 WESTERN CAPE R 5,770,000 R 50,257,0008,960 R 56,027,000 TOTAL R 184,959,500 R 834,494,500104,805 R1,020,104,000 MUNICIPAL PROGRAMME (2010/11)

16. 3/10/111616 PROVINCE BULK INFRASTRUCTURE HOUSEHOLDSCONNTOTAL EASTERN CAPE R 99,898,376 R 424,378,60735,036 R 552,280,000 FREE STATE R 0.00 R 39,271,7313,871 R 38,921,000 GAUTENG R 40,475,040 R 44,032,9924,671 R 111,705,000 KWAZULU NATAL R 143,834,598 R 270,689,70020,984 R 409,294,000 LIMPOPO R 10,718,907 R 153,765,28814,851 R 196,663,000 MPUMALANGA R 0.00 R 114,724,9407,539 R 107,378,000 NORTH WEST R 25,084,277 R 128,710,3771,596 R 190,612,000 NORTHERN CAPE R 9,252,240 R 24,731,4813,711 R 48,318,000 WESTERN CAPE R 35,389,362 R 50,353,8852,496 R 96,609,000 TOTAL R 364,652,802 R 1,250,659,00694,756 R 1,751,780,000 ESKOM PROGRAMME (2010/11)

17. 3/10/11 MUNIC PROGRAMME ALLOCATIONS (2011/12) ProvinceBacklog Households Budget Bulk Infrastructure Departmental Budget Total Allocation EC18.82%R 160,188,800R 30,000,000 R 220,188,800 FS5.80%R 34,000,000R 30,000,000R 6,000,000R 70,000,000 GP22.66%R 80,000,000R 30,000,000R 76,000,000R 186,000,000 KZN23.73%R 232,319,000R 14,000,000R 12,000,000R 258,319,000 LIM9.36%R 90,400,000R 10,000,000R 14,000,000R 114,400,000 MP6.61%R 65,187,550R 18,250,000R 3,562,450R 87,000,000 NW5.69%R 40,794,000R 4,000,000R 7,206,000R 52,000,000 NC1.45%R 2,612,200R 24,000,000R 20,000,000R 46,612,200 WC5.88%R 20,092,000R 30,000,000R 12,000,000R 62,092,000 TOTAL100.00%R 725,593,550R 190,250,000R 180,768,450R 1,096,612,000

18. 3/10/11 ESKOM ALLOCATIONS (2011/12 ) PROVINCE BULK INFRASTRUCTU RE HOUSEHOLDS Pre- ENGINEERING CONNTOTAL EASTERN CAPER 170,732,045R 368,066,871R 7,167,24825,385R 545,966,166 FREE STATE-R 16,685,340R 8,215,1332,377R 24,900,473 GAUTENGR 6,173,395R 137,397,401R 1,053,15813,454R 144,623,956 KWAZULUR 155,904,827R 280,083,587R 14,250,00015,725R 450,238,415 LIMPOPOR 23,088,740R 155,287,051R 6,193,14314,634R 184,568,935 MPUMALANGAR 17,100,000R 91,201,524R 2,977,6806,891R 111,279,204 NORTH WESTR 9,381,048R 110,041,858R 8,098,5358,816R 127,521,442 NORTHEN CAPE-R 55,754,561R 2,175,5125,817R 57,930,074 WESTERN CAPER 29,265,063R 53,783,137R 6,857,2836,304R 90,265,484 TOTALR 402,264,073R 1,268,301,335R 56,987,69699,403R 1,737,294,153

19. 3/10/11 NON-GRID PROGRAMME SERVICE PROVIDERSERVICE AREA NUMBER OF PLANNED INSTALLATIONS KwaZulu Energy ServicesCentral KZN4,000 NuRaNorth KZN Districts4,000 Solar VisionLImpopo1,000 Ilitha Cooperative North of Eastern Cape (Matatiele, Umzimkhulu, Umzimvubu) 1,500 TOTAL KwaZulu Natal, Limpopo, Eastern Cape 10,500

20. 3/10/11 SOCIO-ECONOMIC INDICATORS INDICATORTARGETACTUAL % ACHIEVED AGAINST THE TARGET Total number of Jobs50005,811116 BEE/BWO/SMME expenditure (50% of amount allocated) R 504,731,218R 363,901,98936 Youth (18 to 35yrs) Employment (50%) 25003,271131 Women (36 yrs and above) Employment (30%) 1500785 Employment of people with disability (2%) 10013 Men (36 yrs and above) Employment (18%) 9001,480164

21. 3/10/11 Jobs created to date Province Total Male Total Female Disabled Youth Total Employment EC 400 3813 251438 FS 253 14- 67267 GP 1,107 93-6001,200 KZN 1,288 98-8811,386 LP 410 100-162510 MP 254 74-190328 NW 1,337154-1,0321,491 NC 151 1-89152 WC 39 --6 Total 5,239572 13 3,2785,811 SOCIO-ECONOMIC INDICATORS

22. 3/10/11 SOCIO-ECONOMIC INDICATORS PROVINCE YEAR TO DATE ACTUAL EXP BEE/BWO/SMM EXPENDITURE % OF BEE/BWO/S MME VS. YTD EXP BWO EXPENDITURE %BWO OF BEE/BWO/ SMME EXP NO OF COMPANIES BENEFITED EC 245,801,200 134,454,491 55 67,783,89050 7 FS 31,758,516 13,830,20644 1,882,57714 5 GP 37,804,23133,740,68889 5,071,1441520 KZN 315,176,259 107,245,57434 50,188,891 4714 LP 137,305,653 22,504,599 16 4,100,338188 MP 68,936,43212,492,08018 3,195,353263 NW 95,977,34522,183,321 23 6,461,8522927 NC 25,505,2224,610,55018 182,840 47 WC 51,197,57912,840,48025 6,663,238 522 Total 1,009,462,437363,901,989 36 145,530,122 40103

23. 3/10/11 Insufficient programme funding Building of new bulk infrastructure in rural areas Refurbishment and rehabilitation of electrical infrastructure Building municipal capacity without negative impact on service delivery Structured Planning approach (COGTA, Human Settlement etc) Project Management Resources Management (Contractors, Consultants, etc) Technology Innovations (integration of other sources of energy) Unacceptability and misconceptions about off-grid technology used on SHS which lead to vandalism of systems. 2323 UNIVERSAL ACCESS (CHALLENGES)

24. 3/10/11 VANDALISM EXPERIENCE Vandalised 2424

25. 3/10/112525 92% target by 2014 is more realistic under the current conditions. Low backlog municipalities and provinces (NC, FS and NW) will reach universal access by 2012/13 FY. Metros and Informal settlement strategies will provide more focus and differentiation of rural and urban backlogs. Focused approach on bulk infrastructure, specially in rural areas will cause a slight decrease in current connection figures, but will have a very positive effect within the next two years. Political drive is required for the non-grid programme to continue existing. CONCLUSION