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WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa” IEP Stakeholder Consultation Presented by Pancho Ndebele 25 & 26 September, 2013

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WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

IEP Stakeholder Consultation Presented by Pancho Ndebele

25 & 26 September, 2013

Presentation Outline

1. SASTELA - Introduction

2. Concentrated Solar Power – CSP

3. Energy & Water Nexus

4. CSP Alignment with the objectives of the IEP

5. IEP Base Case

6. IEP Test Cases

7. The Case for a CSP Test Case

8. Conclusion

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Introduction – CSP 2030 Strategy

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Assessment of the localisation, industrialisation and job creation potential of CSP infrastructure projects in South Africa - 2030 Strategy & Action Plan

1.1: SASTELA’s – Objectives

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Promote the roll out of CSP Power Stations for the production of sustainable peak,

mid merit (shoulder) and base load solar thermal electricity in Southern Africa.

Source: WRI, JUICE CONCENTRATE

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Promote CSP in Southern Africa at policy and administrative levels (local, national,

regional & international) aimed at harnessing Africa’s vast Solar Thermal Fuel (DNI)

1.2: SASTELA’s – Objectives

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

1.2.1: SASTELA’s – Objectives

Solar A

Solar E

Solar D

Solar B

Solar C

Solar F

No limitations on DNI in South Africa and the rest of Africa

1.3: SASTELA’s – Objectives

Promote the manufacture of CSP components in Southern Africa and to

explore the ”airbus model”, where SADC countries can manufacture

different CSP components for Solar Thermal Power Stations.

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

1.3.1: CSP Components

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

SCA Foundations; 4.4%

Metal Support Structure (incl. Huckbolts); 24.2%

SF Assembly & Erection; 10.6%

SCE Assembly Line incl. Photogr.; 3.0%

License ( Collector Drawings ); 1.4%

HCE; 17.1%

Mirrors; 13.9%

Drive Units; 1.2%

Sensors & Pylon Cabling; 0.7%

LOC, FSC & Meteo Station; 1.3%

SF Cabling (Supply & Installation); 2.4%

SF Power Supply; 0.3%

Swivel Joints assemblies; 1.7%

Header Piping Material; 4.5%

Header Piping Installation; 2.1%

Inter Loop Piping Material; 3.2%

Inter Loop Piping Installation; 2.8%

Instrumentation; 0.2%

HTF; 4.7%

Local content target of 75% by 2020

2.0: Concetrated Solar Power – How it works?

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Source: LEORNADO ENERGY

2.1: CSP Technologies that we use to mine the sun?

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Central Receiver / Heliostats

Parabolic troughs

Parabolic dishes

Linear Fresnel Reflectors

2.3: CSP Power Stations with Storage

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

ANDASOL 1 – 7.5 HOURS STORAGE

GEMASOLAR – 15 HOURS STORAGE

2.4 CSP Hybridisation

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Solar Steam augmentation into existing coal fired power stations

2.5 : Northern Cape - CSP Projects in construction & development

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Round 1 and Round 2 Projects under construction (200 MW) -

200 MW available for Round 3: Potential Bidders -

FERRUM

GARONA

NIEWENHOOP

ARIES

GORDONIA

UPINGTON

PAULPUTS

AGGENSIS

to Hydra substation (backbone)

to Perseus substation (backbone)

New build 2016 400kV

400kV substation & TL

275kV substation & TL

132kV substation & TL

ABENGOA 1

ABENGOA

KAROSHOEK SOLAR VALLEY

BOKPORT

KATHU SOLAR PARK

CSP ROUND 1 & 2

NOT TO SCALE: Source : EMVELO

CSP Parks Potential = 3 - 5 GW CSP ROUND 3 BIDDERS

SOLAR RESERVE

3.1 : Energy, Climate & Water Nexus – Fossil Resources

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Source: Adapted from World Economic Forum 2009, River network 2009

GHG emissions contribute to climate change impacting water systems

Energy production results in greenhouse gas emissions

Water is needed to generate energy & energy is needed to provide water

Green House Gases

WATER ENERGY

3.2: Energy, Climate & Water Nexus – Fossil Resources

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

3.3 : Energy, Climate & Water Nexus – Renewable Resources

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

3.4: Energy, Climate & Water Nexus – SA Water Use

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Source: South Africa National Water Resource Srategy (NWRS2)

3.5 : Energy, Climate & Water Nexus – Water CMAs

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Source: South Africa National Water Resource Srategy (NWRS2)

3.6: Energy, Climate & Water Nexus – Surplus in the CSP Corridor (Orange)

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Source: National Water Resource Strategy 2004, McKinsey Analysis

4 : IEP Objectives – CSP Alignment

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Water Conservation – Dry Cooled CSP Plants

Localisation – Capable of achievinng the 75%

green economy accord aspirational target.

Energy efficiency - solar thermal process heat

CSP – the fuel source is the sun and will

contribute towards greenhouse gas reduction

targets

CSP – can play a key role in the diversification of

resources/carriers.

CSP – can play a key role in increasing access to

energy,

CSP – No fuel costs and hence can minimise the

cost of energy for current & future generations

Security of energy – no fuel supply risks as the

sun is always there and its free

Source: Draft 2012 Integrated Energy Planning Report

5 : IEP Base Case

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Source: Draft 2012 Integrated Energy Planning Report

5.1 : IEP Base Case

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Source: Draft 2012 Integrated Energy Planning Report

6 : IEP Test Cases

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Source: Draft 2012 Integrated Energy Planning Report

6.1 : IEP Test Cases

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Source: Draft 2012 Integrated Energy Planning Report

7 : The case for a IEP, CSP Test Case – CSP 2030 Strategy

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Assessment of the localisation, industrialisation and job creation potential of CSP infrastructure projects in South Africa - 2030 Strategy & Action Plan

7.1 : Potential IEP CSP Test Case – 2030 CSP Strategy

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

• Scenario A - IRP 2010 Scenario: deployment of the 1GW of CSP in the IRP 2010 by 2020 instead of 2025;

• Scenario B - Northern Cape Solar Corridor (NOCASCO) Scenario: this scenario is in line

with the 5 GW solar park/corridor under investigation by the DoE • Scenario C – 60% CSP: this scenario assumes that the Conventional Energy Options

(Nuclear) in the IRP 2010 are not deployed and are replaced by 60% of CSP with storage alongside gas power; and

• Scenario D - SADC Scenario: as per Scenario C, plus an additional deployment of 10GW of CSP power stations across (SADC)

Scenario Total (GW) By 2020

By 2025 By 2025 for export

By 2030 By 2040

Scenario A 1GW 1GW Scenario B 6GW 5GW 1GW Scenario C 12GW 10GW

2GW hybridisation

Scenario D 22GW 10GW 2GW hybridisation

10GW SADC

7.2 : CSP 2030 Strategy – Economic Contribution

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

Total (GW)

Contribution to GDP 1

Full time jobs created in peak

year2

Job years 3 Net CSP foreign trade

balance4

Scenario A 1GW R24bn 3,500 60,000 (R19bn)

Scenario B 6GW R108bn 17,000 320,000 (R37bn)

Scenario C 12GW R205bn 35,000 750,000 (R88bn)

Scenario D 22GW R251bn 37,000 790,000 R34bn4

Source: EY analysis 80% localisation !!!

8: Conclusion & Request for CSP Scenario

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

To ensure that South Africa understands the value proposition of CSP, SASTELA would

like a CSP Test Case Scenario to be considered as this is a dispatchable, non intermittent

technology that can be used as a base load, mid merit and peaker.

The RE scenario as currently presented does not split the CSP and PV Megawatts.

It is not clear what costs have been used for CSP, if it is the IRP 2010 costs that

relegated CSP to a lower calculation that are used these are outdated and request that

new independent CSP costs data is used. (GIZ CSP Study/REIPP)

CSP lifetime, unlike other renewables (PV & Wind) has a 35+ year lifetime which is

close to other convetional options (coal & nuclear). If CSP modelling is done on the

basis of a 35+ year it will be cheaper than renewables (PV & Wind) that have a 20 year

lifetime.

A CSP Scenario will help Eskom with its future Transmission Planning

A CSP Scenario will position South Africa and the region to challenge Saudi Arabia

(25 GW by 2030) for the race to become a global leader in the industrialisation,

manufacturing, deployment of CSP and export of CSP components.

8.1: Conclusion

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

A CSP Scenario will be help fulfill all the objectives of the IEP as well the following key

policy interventions:

New Development Plan.

The National Climate Change Response Policy.

The New Growth Path and the Industrial Policy Action Plan.

The Green Economy Accord

SASTELA is ready to work with IEP consultants to provide input to the

development of a CSP Test Case using independent material...

Contact Details

WWW.SASTELA.ORG ”Promoting the CSP Industry in Southern Africa”

SASTELA CEO • [email protected] +27 11 061 500 SASTELA Executive Committee Member • [email protected] +27 11 523 6299