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Presentation Plan

Presentation Plan. INTRODUCTION NATIONAL ELECTRICITY NETWORK REVIEW OF ELECTRICITY OPERATIONS COMMERCIALISATION AND FINANCIAL SITUATION THE ROLE OF ELECTRICITY PREPAYMENT. Angolan Map. Introduction. Angola covers an area of 1,246,700 km2.

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Presentation Plan

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  1. Presentation Plan • INTRODUCTION • NATIONAL ELECTRICITY NETWORK • REVIEW OF ELECTRICITY OPERATIONS • COMMERCIALISATION AND FINANCIAL SITUATION • THE ROLE OF ELECTRICITY PREPAYMENT

  2. Angolan Map

  3. Introduction Angola covers an area of 1,246,700 km2. It borders the Republic of Congo and the DRC to the north, the DRC and Zambia to the east, Namibia to the south and the Atlantic Ocean to the west. Physiography varies from the lowland coastal areas, up to 300 m to an intermediate sub-plateau zone and inland plateau with altitudes between 1,200 and 1,700m.

  4. Cont. Angolan population is estimated at 14 million inhabitants. Social and economic conditions up to 2002 due to disruptions occurring during the transition period from independence in 1975, followed by the implementation of inadequate macro-economic policies. This situation wasaggravated by civil war, which resulted in a state of insecurity and destruction of vital economic infrastructure.

  5. Cont. Cumulative inflation rate reached 1,838% in 1993, 3,784% in 1995 and 1,650% in 1996. Since 2003, the social and economic situation has been improving slowly and a reduction of the inflation rate to 34.01% was registered in 2004. The electricity sector infrastructure is one of those that suffered the most from destruction during the civil war.

  6. Hydro GTG G Diesel Line 220kV Line 100kV Line 60kV Substation RT Substationj.CH Production and Transmission Rehabilitation Plan 1997 Northern System Luquixe Cacongo Uige Malongo Quibaxe Cabinda Mabubas N’Dalatando Kifangondo Luanda Viana Cambambe Cacuso Malanje Porto Amboim Gabela Umbe

  7. Production and Transmission Rehabilitation Plan 1997 CENTRAL SYSTEM Cunje Kuito Biópio (T) Lobito Quileva Chinguar Lomaum aaaumuum Catumbela Katchiungo Biópio (H) Benguela A.Catumbela Huambo Cavaco Baia farta Hydro Line 150kV Substation RT Line 60kV GTG Substation CH G Diesel Line 30kV

  8. GTG Line 150KV Substation T .Hydro G Diesel .Hydraulic Line 60KV Oral presentation layout Gove Saco Matala Jamba Lubango Namibe Tchamutete Tombwa SubstationH

  9. Program of Reconstruction Production centres, such as hydro dams and thermal turbines, HV and MV transmission lines and transformation points were partially or totally destroyed. The Angolan Government is engaged in a large program of reconstruction and rehabilitation. We believe that the large sums of money invested in reconstruction and rehabilitation should take advantage of thenew, modern hi-tech options

  10. National Electricity Network About 93% of electricity production and consumption is from three independent systems: ● North System: 93% ●Centre System: 5% ●South System: 1.5% ●Isolated Systems: 0.5%

  11. Review of electricity operations PRODUCTION Total installed capacity, including the Capanda hydro plant, is 901.9 MW. Only 69.2% (623.9 MW) is available. Breakdown is: ● 61.1% hydro (433.1 MW) ● 38.9%thermal (190.85 MW)

  12. Transmission/distribution ENE has 2,118 km of transmission and distribution lines –53.1% (1124.65 km) available. MV operating voltages are 6.3, 6.6, 15 kV. More than 54% of substations need to be rehabilitated, expanded or modernised Distribution network is almost 30 years old and no longer able to cope with increase in demand. Consequently the operation and distribution charges are very high.

  13. EDEL EDEL receives power from ENE through the 60 kV HV network at the Cuca, Golf and Zango substations. EDEL has 6 substations with capacity 330 MVA. EDEL’s primary network is a 15 kV MV and includes 20 distribution points. There are 837 transformation points, of which 440 are public and 397 private.

  14. EDEL NETWORK EXTENSION Line extensions are as follows: Highest peak reached by EDEL is 182 MW, registered 22 December 2003 at 20 hours.

  15. Failures Main causes of failure, especially LV, are ● cables and equipment due to illegal, unauthorised connections ● inadequate supply in high populated areas and newly emerging suburban zones

  16. Commercialisation and Financial Situation ENE has 110,801 customers (835 in Luanda). The situation was as follows: ENE not able to bill all the power it produces - commercial losses were 38% in 2004.

  17. Edel EDEL covers 7 of 9 municipalities of Luanda – coverage about 9% of the settled area and 111,131 clients. If the average family size is 6 and the total population of Luanda 4.5 million, then 15% of Luanda population are legally serviced by EDEL. The number of illegal connections is estimated at 40,000 to 50,000.

  18. COMMERCIAL SITUATION IN 2004 Commercial Situation 2004

  19. Commercial Situation 2004 It is obvious that EDEL has major difficulties in undertaking the metering of consumption. Accumulated debt of EDEL to ENE up to 2004is estimated at Kz554997 million (USD61.6 million).

  20. The Role of Electricity Prepayment ENE has more than one reason to think of installing a prepaid metering system. For ENE to become viable, the basic principle has to be institutionalised that: Power supplied must be paid for. EDEL must find ways to come up with the debt and ENE can assist by forcing EDEL through the installation of prepayment meters in EDEL’s three reception substations.

  21. Cont. ENE could do the same for all the big consumers, i.e. factories, public illumination, etc., which are directly supplied by ENE. On the other hand, EDEL can’t become viable if it is unable to meter, bill and collect the money from the consumers. The tariff is irrelevant if the payment issue is not solved. Installing prepayment meters to all big consumers, both private and public, will assist with starting the process.

  22. Cont. Up to now, there has been little incentive for ENE and EDEL to show interest in launching appropriate conservation initiatives. Given the normalisation of the political situation and the cut off of government subventions, ENE and EDEL will soon have to bring about effective billing and collection of electricity charges and later on the reduction of commercial losses.

  23. Conclusion Opting for prepayment metering will enable both ENE and EDEL to emerge from their unfavourable financial predicaments. In addition prepayment metering will enable EDEL to bring about effective reduction of technical losses through modernisation of the distribution network.

  24. Questions? Thank you

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