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South African Power Commodity Market, Forecast to 2022


News provided by

Reportlinker

Nov 28, 2017, 13:49 ET

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NEW YORK, Nov. 28, 2017 /PRNewswire/ -- Power Utilities Seeking Expertise from OEMs in Improving Product Performance and Reducing Life Cycle Costs



Read the full report: https://www.reportlinker.com/p05219395



Renewable energy has taken centre stage in South Africa's expanding power generation capacity, necessitating development and maintenance of requisite transmission infrastructure. Switch gears, transformers, and reactors are critical in supplying quality power to customers in a cost-effective manner. Local research and development, manufacturing, and supply chains will assist OEMs in these components in reducing manufacturing costs whilst increase competitiveness. There will be a steady shift in procurement strategy of utilities that will focus on the total cost of ownership (TCO) as against considering capital costs alone. Establishing a supply chain based on business activities could help deliver cost and value advantages to utilities.

Eskom's operational expenses have been increasing continuously in South Africa, with a negative impact on customers in the form of rising tariffs. Distributed generation, renewable energy, and a shift in economic activity have resulted in declining electricity sales affecting profit margins. In order to ensure business sustainability, Eskom will be required to upgrade its transmission infrastructure and equipment to minimise losses and ensure optimal performance of equipment through the adoption of latest technologies and materials.

The REIPPPP in South Africa has created tremendous interest amongst private investors, with major power projects focusing on solar photovoltaics (PV), concentrated solar power (CSP), wind, and biomass energy. Renewable energy accounted for 9.7% of the energy mix in South Africa in 2016. The government has determined that 3,725 MW is to be generated from renewable energy as stated in the IIRP 2010–2030 under the REIPPP programme. The growing contribution of renewable power and its inherent intermittent nature will drive the demand for upgraded transmission equipment and infrastructure requiring minimum maintenance and longer service life.

Eskom is planning to incorporate new projects for building transmission network and increasing the reach of electricity. The plan is to increase the current transmission lines infrastructure by about 10,000 km by the end of 2025. This will involve developing the 765 kVA, 400 kVA, and 275 kVA lines and procuring new transformers and reactors.

This research study outlines the current state of development of switchgears, transformers, and reactors in the South African market and capabilities possessed by the companies and organisations participating in this market. It also touches upon aspects that utilities need to consider whilst procuring critical transmission utility equipment.

Key questions this study will answer:
1. What are the commodity types available and what are their applications in power supply industry?
2. Who are the major players and what are their value propositions in the market for these commodities?
3. What are the power utility prerequisites and overall market dynamics for the sale of these commodities in South Africa?
4. What are the technological developments taking place in the market for these commodities?
5. What are the drivers and restraints for these commodities in the South African market?

Read the full report: https://www.reportlinker.com/p05219395

About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.

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