The document discusses three technology projects that Eskom is undertaking to address its strategic challenges: 1) Underground Coal Gasification, which aims to provide syngas from unminable coal reserves for power generation. 2) A 100MW Concentrated Solar Power pilot plant using heliostats to be operational by 2012. 3) A Utility Load Controller pilot that will manage residential load shedding and aims to reduce peak demand by over 5,000MW.

1. Technology
responses to
Strategic Challenges.
Barry MacColl (Technology Strategy and
Planning Manager)
08 December 2008

2. Select Eskom Strategic Imperatives
• Build additional generating capacity
• Provide reliable supply of electrical energy
• Minimise the impact on the environment
• Keep price of energy as low as possible
• Create a conducive environment for growth and development
• Corporate governance and fiduciary responsibility
Economic
Balance
Social
Environmental
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3. 3 projects that are making a difference..

4. Underground Coal Gasification
(UCG)

5. 5

6. Underground Coal Gasification (UCG)
• Scope
Development of underground coal gasification site to provide
reliable and cost effective syngas for use in co-firing at Majuba
power station and for operating gas turbines as a generation
option for Eskom
• Major Deliverable/s
40 MWe co-firing at Majuba power station
42 MWe open cycle gas turbine connected to the grid running on
UCG gas
• Timeframe
Co-firing at Majuba power station – 2008/9
Open-cycle gas turbine – 2010
2100MW commissioned by Dec 2013
• Budget
R1 454 million (over 5 years), R190 million in 2008/9.
• Benefit to Eskom
Alternative, cost-effective energy source for Eskom.
Offers lower cost and shorter implementation time than
conventional coal plant.
Reduced emissions and environmental impact of mining.
Flaring of UCG gas
Use of ‘unminable’ coal reserves to extend coal resources.
Enables coal power generation in provinces previously deprived
of opportunities.
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7. Concentrated Solar Power (CSP)

8. Renewables Projects – Concentrated Solar Power
Focus:
• Photovoltaic not currently a
competitive large scale option
• Focus on concentrating solar
power options
• Previous studies have considered
both parabolic troughs (PT) and
central receiver (CR) technologies
• CR has a larger potential for local
manufacturing and cost reduction
• Current activities aimed at the
feasibility assessment of a 100MW
pilot
Image above courtesy NREL
• Have introduced local innovation +
working with industry leaders
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9. 9

10. Concentrated Solar Power (CSP)
• Scope
Design and construction of a 100MW CSP pilot plant in
Upington by 2012
• Major Deliverable/s
Concentrator; 9000 Heliostats; Salt Reservoir
Salt/Energy Storage; Heat Exchanger; Steam turbine
Generator
• Timeframe
Depending on approval. If Approved by end August, plant can
be operational by 2012. Eskom Heliostat
(above) and
• Budget
proof of concept
R 6 044M (estimated total cost), R8 million in 2008/9 plant built in the
USA (right)
• Benefit to Eskom
– Generate the lowest cost solar power in the world. Lowest cost
renewable option (cost competitive with wind, CC gas and
nuclear)
– Storage allows 24hr dispatchability – peak or base load.
– Clean – environmentally acceptable.
– Net present cost lower than Solar Water Heating programme for
comparable amount of energy
– Protected from future price increases in primary energy for the
life of the plant (35 years)
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11. Utility Load Controller (ULC)

12. PLC PLC
Kiosk
RS
GP
Updated Every 15 Min
Current Load = 10 000MW
GPR
S
Available Load shed =5 000MW
10A limit
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13. Utility Load Controller (ULC)
• Scope
– Eskom, jointly with EON consulting to develop and
fund a manufacturing specification for the Utility Load
Controller concept and pilot.
• Major Deliverable/s
– The development and joint ownership of the ULC
manufacturing specification for implementation and
commercial exploitation.
– Install and operate ULC in 27k residential houses
• Timeframe PL PLC
C
– Research project closeout 30 June 2008
Kiosk
– Pilot commencement: June 2008
RS
– Pilot project conclusion: March 2009 GP
• Budget
– Eskom opex contribution to ULM research: R3.6M Updated Every
15 Min
– Eskom capex funding of pilot study : R50M
• Benefit to Eskom Current Load = 10 000MW
GPR Available Load shed =5 000MW
– ULM gives back 6740MW from 8M residential customers – 1.5 S
10A limit
Power stations in 3 years
– ULM ensure “constrained but continuous” power to ALL
residential areas – NO BLACKOUTS.
– Use ULM instead of gas Turbine plant for base load.
– Eskom restores full service to industry without “pain” to
residential sector. Independent study has proven residential
behavior change.
– Lowest cost solution currently on the market: Total solution cost
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full country rollout approx. <R12bn (R1.6m/MW or less)

14. Conclusions
• The world faces some serious energy
challenges.
• Eskom is a big player in the world energy
market (Is one of the top 9 utilities in the
world by sales, generates approximately 45%
of electricity used in Africa) – our challenges
are not unique. They are a reflection of the
world electrical energy environment.
• Worldwide,
– assets are ageing,
– prices are rising,
– countries face huge capital replacement costs,
– financial markets are in a shambles,
– demand for energy continues to rise,
– environmental responsibility is an imperative.
• Many of these issues compete for the same
place on governments agenda and many of
them are contradictory.
• Technology Innovation is not a silver bullet
but can go a long way in solving the electrical
energy dilemma and provides some answer
to seemingly vexing problems.
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15. THANK YOU
Barry MacColl
Technology Strategy and Planning Manager
Eskom Holdings Limited
Tel +27-11-629-5585
Fax +27- 11-507-6398
Email barry.maccoll@eskom.co.za
Megawatt Park, Maxwell Drive, Sunninghill, Sandton
P .O. Box 1091, Johannesburg, 2000 South Africa
Strictly Confidential
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