Changes

After years of substantial overcapacity, the recent rapid growth of the South African economy and generation constraints led Eskom proposes that it would meet the South African government to propose a proposed massive expansion by a mix of the electricity generation systemnew coal, gas, nuclear power stations as well as some demand side management and renewables. HoweverThe utility states that, instead as of relying solely on the publicly owned electricity utilityNovember 2007, [[Eskom]]there are currently 11, to undertake 941 megawatts of plants in the expansion, the government directed "project execution phase". Of this it reported that 30% of the new capacity be provided by independent power producers1577 megawatts has already been commissioned. In 2004 To help fund the South African Cabinet approved a total five-year expansion plan costing R93 billion with Eskom funding R84 billion cost of that. Subsequentlythe massive construction programme, Eskom increased has been granted permission to increase its projected electricity demand forecast from 2tariff by 27.3% per annum to 4% and is now planning to spend R150 billion 5 percent in the five-2008/09 financial year period to 2011-2012 in order to cater for the government's target gross domestic product growth rate of 6%. "Under the revised plan, we will deliver an additional 22 000 megawatts (MW) by 2017," states Eskom.<ref name="Build">Phumza Macanda, [http://wwwafrica.eskomreuters.co.zacom/business/livenews/monsterusnBAN832950.php?URL=%2Fcontent%2FNB+0001Build+Programmehtml "S.doc&Src=Item+28 "Build ProgrammeAfrica retail sales dip, rate rise still on cards"], Eskom websiteReuters, June 18, November 20072008.</ref>

Eskom proposes that it would meet the proposed massive expansion by a mix of new coal, gas, nuclear power stations as well as some demand side management and renewables.  The utility states that, as of November 2007, there are currently 11,941 megawatts of plants in the "project execution phase". Of this it reported that 1577 megawatts has already been commissioned. Other "in execution" generation projects that are as yet uncompleted comprise:

In Rapid domestic demand for electricity prompted the wake of widespread blackoutsSouth African utility, described by the [[Department of Minerals and Energy (South Africa)|Department of Minerals and EnergyEskom]] as "load shedding", the South African government re-iterated in January 2008 the need for urgent measures to increase the ability of the electricity system cut back power exports to neighboring countries. Eskom power exports to cater for peak demand Botswana have been cut back and allow sufficient time for necessary maintenancewill cease entirely in 2012 when its contract expires. Setting a target The World bank said this had the spillover effect of having 15% reserve peak capacityprompting the [[Botswana Power Corporation]], the a government cautioned that in owned utility, to build the absence of major changes that "the risk of risk of load shedding will remain high until at least 2013[[Morupule B power station]]."<ref name="National ResponseWB">South African governmentWorld Bank, [http://tinyurl.com/242okt7 "World Bank Financing for Continued Growth, Enhanced Poverty Reduction in Botswana Board of Directors approves US$136.4 million for critical electricity supply project"], Media Release, October 29, 2009.</ref> Eskom also exported power to Swaziland, Lesotho, and Namibian utilities as well as having agreements with individual customers in Mozambique and Namibia.<ref>Eskom, [http://www.dmeeskom.govco.za/pdfsannreport08/energyar_2008/national_resp_planse_load_shedding.pdf "National Response to South Africa's Electricity Shortagehtm Business and sustainability performance review"], January Eskom Annual Report 2008.</ref>

Eskom's contracts with other countries are of longer duration than Botswana's. The government also noted that "contract with Namibia runs through to June 2017, while the price of electricity in South Africa is very low compared contract with Swaziland runs through to other countries around the worldDecember 2024. Many countries have also embarked upon large build programmes and the gap between South Africa and the rest of the world The contract with Lesotho is widening."indefinite". In particular it noted that The contract for the "‘Gap’ to next cheapest [country] increased Motraco aluminum smelter runs from December 1997 through to 74% in 2007 from 30% in 2006"December 2025, that "current pricing is half of the replacement value of power plant" Skorpion zinc mines from August 2000 through to January 2018 and that "increases above inflation will be needed to fund capacity expansionNamdeb from October 1986 for an indefinite period."<ref name="National ResponseHogan"/> To help fund the cost of the massive construction programme, Eskom has been granted permission to increase its electricity tariff by 27.5 percent in the 2008/09 financial year.<ref>Phumza Macanda, [http://africa.reuters.com/business/news/usnBAN832950.html "S.Africa retail sales dip, rate rise still on cards"], Reuters, June 18, 2008.</ref>

Rapid domestic demand for ===Access and pricing===According to a 2011 BankTrack report, 25% of South Africans have no access to electricity prompted the South African utility, [[Eskom]], and 33% have only limited access. While poor urban households are forced to cut back power exports to neighboring countries. For examplespend around 20% of their income on energy, Eskom power exports to Botswana have been cut back and will cease entirely in 2012 when its contract expiresApartheid-era “special pricing agreements” give companies lower guaranteed rates. This has had After the spillover effect approval of has prompting the [[Botswana Power Corporation]]Medupi project in April 2010, a government owned utilityelectricity prices for households went up 137% by 2011, forcing many poor people to build curtail electricity use or drop off the grid. [[Morupule B power stationEskom]].<ref name="WB">World Bank, [http://tinyurl.com/242okt7 "World Bank Financing for Continued Growth, Enhanced Poverty Reduction in Botswana Board has announced additional rises of Directors approves US$136.4 million for critical electricity supply project"], Media Release, October 29, 2009.</ref> Eskom also exported power at least 25% to Swaziland, Lesotho, and Namibian utilities as well as having agreements with individual customers in Mozambique and Namibiafinance Kusile.<ref>Eskom, [http://www.eskom.cobanktrack.zaorg/annreport08download/ar_2008bankrolling_climate_change/se_load_sheddingclimatekillerbanks_final_0.htm Business and sustainability performance reviewpdf "Bankrolling Climate Change: A Look into the Portfolios of the World’s Largest Banks"]Earthlife Africa Johannesburg and BankTrack, Eskom Annual 2011 Report 2008.</ref> Eskom's contracts with other countries are of longer duration than Botswana's. The contract with Namibia runs through to June 2017, while the contract with Swaziland runs through to December 2024. The contract with Lesotho is "indefinite". The contract for the Motraco aluminum smelter runs from December 1997 through to December 2025, the Skorpion zinc mines from August 2000 through to January 2018 and Namdeb from October 1986 for an indefinite period.<ref name="Hogan"/>