Webinar: Doors Ajar for New Transformer Entrants in South Africa
Doors Ajar for New Transformer Entrants in South Africa, says Frost & Sullivan
South Africa’s Relevance for African Expansion
CAPE TOWN – 24 April 2012 – While activity appears slow or subdued, market players are preparing for some significant changes in the technological and contractual landscape of high voltage transformers in South Africa. The high voltage transformer market is soon to see the return of ABB as a key player, while the major current tender holders include Powertech, Siemens, Contipower, ABB and Zest WEG. The dominance of existing suppliers is likely to be challenged at the forthcoming tender adjudication in 2015. African Mega Trends, such as urbanisation, regional integration and future infrastructure have been identified by Frost & Sullivan as the key developments to impact on Transmission and Distribution, and more specifically, the high voltage transformer market for Southern Africa.
The South African transformer market is by far the largest outlet for high voltage transmission and distribution equipment on the African continent, with the country producing effectively half of the continent’s centralised power.
Eskom and local municipalities currently dominate the market, with collective control of approximately 90% of the total value of HV transformers demanded. Transmission, distribution and reticulation are the combined responsibility of Eskom and municipalities. Large “step-up” transformers facilitate the transportation of large volumes of electricity over long distances by escalating voltages up to a maximum of 765 kilovolts (kV, or 765 000 volts) in South Africa. Electricity is then transported at these voltages over long distances, and filters down through “step-down” transformers at substations to lower voltage levels such as 132kV, 33kV and 11kV into the distribution system. At each point of voltage alteration, the process of power transformation can be accomplished with varying levels of efficiency. The power lost as a result of this process is referred to as “load losses”.
Electrical efficiency is high on Eskom’s agenda which has prompted the adoption of high efficiency transformers. Minimisation of load losses is a top priority moving forward, and is expected to impact the market shares of major manufacturers.
The Transmission Development Plan is a good indicator of the equipment volumes to be installed. Due to uncertainties in the market, the exact dates may shift marginally, but Eskom planning officials seem confident of the volumes for the first five to six years.
Frost & Sullivan recently hosted a web-conference entitled “South Africa’s Relevance for African Expansion: Doors Ajar for New Transformer Entrants in South Africa”.
The web-conference highlighted the potential opportunities and concerns arising out of energy sector developments in South Africa. Rob Smith, Frost & Sullivan’s Africa Energy and Power Systems Research Analyst, identified current trends in large scale transformers, discussed challenges facing manufacturers in South Africa with expected technology developments, and investigated the major drivers and restraints facing the industry.
This web-conference will benefit anyone with an interest in or business relationship with members of the transformer market, including transformer manufacturers, service providers, and end users municipalities, mining houses, large industrial electrical users and Eskom.
To listen to this web conference, kindly copy and paste the following link into your browser: http://www.frost.com/prod/servlet/analyst-briefing detail.pag?mode=open&sid=255805875.
Should you wish to receive a copy of the presentation slides, kindly email Samantha James at email@example.com.
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