Peters, M. J.Sefale, Mokoena2023-09-202023-09-202022http://hdl.handle.net/11660/12219Dissertation (MBA (Business Administration))--University of the Free State, 2022A complex task, planning and implementing modern electric systems requires estimation of future power generation and consumption (Lannoye, Flynn, and O'Malley, 2012). Firstly, the electric system is made up of many interconnected circuits and machines. The task of maintaining acceptable voltages and frequencies in these systems under rapidly changing conditions is challenging in and of itself. Secondly, scheduling short run generation and load management to minimize costs can be challenging due to uncertainty in equipment and load availability, as well as the sheer number of alternative schedules that are possible. Last but not least, long-term planning requires sorting through the diverse range of possible resources and in-service times, while keeping in mind the implications for short-term schedules and costs (Loken, 2007). It is Eskom, as a power supplier, and Centlec, as a distribution and retail company, which is responsible for planning and implementing electricity generation and distribution in Mangaung metro municipality and broadly in South Africa. In 1902, Centlec became the power utility for the city of Bloemfontein, with a capacity of 102 MW (Megawatt). It last operated in 2006 with a peak power demand of 60 MVA (Mega Volt Ampere). Centlec (SOC) Ltd is an exclusively owned subsidiary of Mangaung Metro Municipality. Centlec is also required to comply with the Municipal Finance Management Act (MFMA) of 2003, which is a part of the Municipal Systems Act of 2000 and Companies Act of 1973. Moreover, Centlec (SOC) Ltd accounts for 96% of domestic and residential electrical consumers in Bloemfontein. Another 4% of Bloemfontein's electrical consumption is consumed by commercial buildings such as malls, government buildings, offices, and other businesses (Centlec Annual Report 2010/2011- 2017/2018). As part of the New York Global Energy awards ceremony, Eskom was named 2001 Power Company of the Year by the financial times. Nonetheless, because of corruption and mismanagement, Eskom became a liability to the state (Ward, 2020). In spite of having a capacity of over 45,000 MW, Eskom could generate only 27,000 MW and reverted to "rolling blackouts". Pravin Gordhan, Minister of Public Enterprises, observed in 2019 that Eskom was experiencing "systemic corruption, malfeasance, fraud, and state capture" that had "eroded investor confidence and compromised the credibility of the organization" (Ward, 2020). The failure of Eskom directly affects the power network provider and retailer which is Centlec.Centlec currently only purchases electricity from Eskom and does not generate its own. Centlec has been forced to completely rely on Eskom because of this phenomenon (Inglesi-Lotz and Blignaut, 2011; Eskom, 2011a). On the other hand, Eskom produces its power from coal-based power plants. The National Research Council (2010) reports that coal (fossil fuel) and nuclear power (more recently), were the main energy sources used to expand industrialization, housing, and transportation over the 20th century. Despite this, the growing consumption of fossil fuels is resulting in higher electricity prices, depletion of coal, and carbon dioxide emissions to the atmosphere (Arent, Wise & Gelman, 2011). South Africa's Integrated Resource Plan 2010 to 2030 (IRP) promulgated in May 2016 lays out the scale and mix of new electricity capacity needed over the next two decades for the first time. In addition to nearly doubling the system capacity, the new plan would drastically change the mix of energy sources and players in the marketplace. By 2030, coal's share of the energy mix will drop from 90% to 65%, renewables' share will increase to 9%, and nuclear's share will increase to 23% (Joffe, 2012). A third of the new capacity is to be built by private investors (Joffe, 2012). As a result of IRP (Integrated Resource Plan, 2010 to 2030), Centlec should formulate its own energy management plan to reduce its dependence on Eskom and become a leader in renewable energy generation.enDissertationUniversity of the Free State