KM NASSIEPCEO

SANEDI Role in Development of CSP

Industry in SA

Contents

Who or what is SANEDI?The Objectives of SANEDIHistory of CSP in South AfricaKey Research Areas underway in SASANEDI proposal on RECORD and CSP Demo

ProjectConclusions

Objectives

SANEDI is created for the sole purpose of assisting the DoE to achieve its strategic objectives as set out in the National Energy Act, 2008 (No. 34 of 2008), i.e. Promote diversification of energy supply Ensure emerging energy technologies are incubated and

commercialised Ensure appropriate human capital is developed to support new

industries Stimulate innovation in energy R&D, introduce next wave of

generation capacity in SA

Strategic Orientation

Set up R&D programmes and centres at universities where potential already exists – strengthen this capacity and turn into world class innovation centres

In the medium to long term create capacity to undertake research, development and demonstration in-house in strategic areas

Develop, demonstrate and prepare bankable projects for new energy technologies

Where required, equity may be taken in a particular project, along the lines of a PPP

Reasons for the formation of SANEDI

Government concerned over decline in energy R&D capacity

Too many technologies and initiatives caught up in the so-called “Valley of Death”

State requires an incubator for energy technologies to ensure that they are rigorously tested and developed to the point of commercialisation

State has put in place a strategic partner for PPP projects for demonstrating and piloting emerging technologies

SANERI Role in context

6

ImplementationStrategies /Legislation

SOEs PrivateSector

Universities

Policy / PlanningR&D Activities

Com

merc

ial

Con

tract R

&D

Human Capital Development

Contract

R&D

Rese

arch

Ch

airs

Bu

rsarie

s

Reg

ula

tory

NERSA

All Spheres ofGovernment

SANEDI Operational Model

7

SANEDI

Industry

CORDsNERSA

Department of Energy

Provision of governance and administrative

functions

Provision of technical,

research and information

support

Provision of research capability and information to facilitate licensing and

tariff decisions

Provision of research capability and information

as part of collaborative projects

Human Capital Development

Energy Knowledge Base

SANEDI Core Activities8

SAN

EDI

Man

agem

ent

Hum

anCap

ital

Dev

elop

men

t

Res

earc

h an

d

Dem

oCen

tres

Hub and Spokes9

RE

& S

E H

ub

(Ste

llenb

osch

)

Sola

rPV

Sola

rTh

erm

al

Win

dEn

ergy

EE &

DSM

Hub

(Pre

toria)

Sust

ain-

Able

Build

ings Mot

ors

/

Drive

s

Ligh

ting

Research and Demo Centres (CORDs)10

REC

ORD

(Ren

ewab

le

Ener

gy)

Adva

nced

Mat

eria

ls

Res

earc

h

and

Dem

o

Cen

tre

EE R

esea

rch

and

Dem

o

Cen

tre

CCS

Res

earc

h

and

Dem

o

Cen

tre

Gre

enTr

ansp

ort

Res

earc

h

and

Dem

o

Cen

tre

Cen

tre

for En

ergy

Syst

ems

Anal

ysis

& R

esea

rch

(CES

AR)

SAN

ERI

Coo

rdin

atio

n/

Man

agem

ent

CORD Fundamentals11

Edu

cation

Prom

otion

Prod

uct RD

&D

Consultancy

SANEDI CORDs

Institutional Framework (RE Research Demo Centres)

12

SAN

ERI

Proj

ect

man

agem

ent

Sola

r PV

Thin

Film Oce

an

Ener

gy

Liqu

idFu

els So

lar PV

Silic

on

University of Johannesburg

University of Stellenbosch

Nelson Mandela Metro University

University of Witwatersrand

Sola

rTh

erm

al

Wat

er

Hea

ting

CSP

Johannesburg /

Cape Town

RE Research and Demonstration Centre

13

Multi-disciplinary centre focusing on three major programmes Education and Training

Grade 10-12 Learners Science and Engineering Undergraduates Artisans

Product Development Solar PV products, ocean energy technology, cleaner liquid fuels, large-

scale concentrating solar power Contract Research aimed at specific requests from public / private sector

Centre will be project managed by SANERI staff but hosted by different universities to minimise duplication and reduce overheads

Centre will build on existing strengths from different universities Funding will be split between fiscal funding and private sector programmatic

funding with UNIDO supporting the proposal and will assist in fundraising for learnership programmes

Why CSP in South Africa?

Resource Assessment points to one of the best insolation sites in the world, in the Northern Cape

Other renewable energy technologies do not provide for the same level of energy storage, hence unable to provide baseload power (cf. Wind (load factor of about 30%), versus CSP Receiver (load factor of 68%))

Rising price of electricity creating opportunity for CSP

Manufacturing opportunities are sizeable and consistent with SA skills set

Green job potential is significant

History of Eskom CSP in South Africa

1997 Prefeasibility study completed – highlights value of CSP

1998 Eskom introduces SABRE-Gen, a programme designed to facilitate the uptake of large,

grid-connected RE Eskom partners with NREL to investigate CSP potential

1999/2000 Sunlab completes technology screening of CSP options, discarding solar chimney, and

highlighting use of Central Receiver and Trough 2001

Detailed engineering design for Central Receiver project commences 2002

Eskom commissions 25 kWe Dish Stirling system at DBSA offices, to co-incide with World Summit on Sustainable Development

2003 White Paper on Renewable Energy is approved by Cabinet, setting target for RE

2004 – Ongoing work on CSP project in Upington, including EIA, site selection

SOUTH AFRICA SOLAR RESOURCE (The potential of concentrating solar power in South Africa, Thomas P. Fluri)

One of the best solar resources in the world.Five out of the nine provinces of South Africa, Northern Cape, North West, Free State, Eastern Cape and Western Cape, include areas with an annual average DNI higher than 7.0 kWh/m2/d. DNI map shown below

The National Energy Regulators of SA (NERSA) announced a feed-in tariff system (REFIT) for renewables in March 2009.

Amongst other resource options, the REFIT scheme caters for CSP.

An initial tariff of $0.28/kWh was set.

This is being reviewed, with an updated tariff expected by the end of this month.

It is expected that the CSP tariff will not be technology specific, but rather inclusive of all technologies.

Hurdles to entry will be set based on the DoE’s New Generation Regulations

Regulatory Framework

Comparative Electricity Prices (BAU)

2009 2010 20110

5

10

15

20

25

30

Electricity Price (Ave retail)REFIT Price (CSP)REFIT Price (CSP) - reduced

Pri

ce (

US

c/k

Wh

)

Comparative Electricity Prices (Predicted)

200920102011201220132014201520160

5

10

15

20

25

30

35

Electricity Price (Ave retail)REFIT Price (CSP)REFIT Price (CSP) - reduced

Pri

ce (

US

c/k

Wh

)

• Numerous CSP technology options exist today, but only few are proven.

• Further, only few companies have experience in the installation, operation and maintenance of these power plants

• Current programme approached should focus on proven technologies for implementation and grid supply, together with a strong R&D programme, encouraging and enabling the installation of pilots around new technologies.

• Established international market players should be encouraged.

CSP Technology Status – High Level

Mature(In operation right now at a capacity ≥10MW)

Emerging(Constructed at pilot level and is generating (or has), no operational plant ≥10MW)

FutureResearch projects

Parabolic troughs (with / without molten salt storage)Steam towers

Molten salt towersCLFR systemsLFR systemsDish Stirling systems

Steam troughsMolten salt troughsAir receiversOther

State of Technology

Phoenix

Berlin

Tokyo

Munich

New York

Madrid

Seville

1 kW 100 kW 10 MW 100 MW 1 GW

Si PV

Thin film

CPV CSP

Daily

Sun

shin

e

System size

Possible Technology Approach – Size vs Solar Resource

Daily

Sun

shin

e

Green Jobs in CSP industry

Period Installed Capacity (MW) - cumulative

Direct Jobs(Jobs/MW)

Indirect Jobs (Jobs/MW)

Total Jobs(upper limit) - cumulative

2012-2016 300-400 18 4-6 9600

2017-2021 800 – 1000 18 5-7 24600

Research Area: System Modelling & Analysis

Past & Current Research• 100 MWe Upington power plant by ESKOM.• Solar Gas Turbine project at the CSIR.• Solar Chimney project at Stellenbosch University.• SunSPOT Hybrid (Combined Cycle) Solar Power Station at Stellenbosch University.Future Research Focus• CSP Plant Modelling, including collector, receiver, power block and cooling systemto optimise plant performance for selected technology and solar resource.• Cost modelling and optimisation.

International Partners• ISE, Fraunhofer Institute.• DLR, Germany.• NREL, USA.• Solar Millennium

Research Area: Policy & Regulations

Past & Current Research • Various policy projects focusing on energy policy, including renewable energy policy, completed by the ERC at UCT. • Policy to remove barriers and stimulate the uptake of wind and solar energy in SA, including CSP, project funded by the UNEP at the ERC, UCT. • Solar Energy Research Technology Road Map for SA, project funded by the DST with the CSIR. • DEAT study into barriers to renewable energy uptake by Stellenbosch University (CRSES).

Future Research Focus • Implementation and monitoring of effective policy and regulation to stimulate large scale uptake of CSP in South Africa.

International Partners • UNEP, UNIDO. • World Bank. • GTZ.

Research Area: Resource Assessment

Past & Current Research • CSIR/ESKOM/DME (SABREGen) Solar Map. • Review of available solar resource assessments for South Africa, Stellenbosch University • CSP potential assessment for South Africa, Stellenbosch University. • Feasiblity study to power the MeerKAT with solar energy, Stellenbosch University (CRSES) for the SKA Poject Office. • Feasibility study to power the SKA with solar power, Stellenbosch University (CRSES) and Hatch Africa for DST/SKA Project Office. Novel solar radiation measurement technology by UKZN.

Future Research Focus • Verified Solar Resource Map backed up with measurements. • Long term modelling of solar yields.

International Partners • ISE, Fraunhofer Institute. • DLR, Germany. • NREL, USA. • University of Florida.

Research Area: Parabolic Troughs

Past & Current Research• Automated trough designed, build and commissioned at MangosuthuUniversity of Technology (MUT).• Undergraduate student projects at the Solar Roof Laboratory,Stellenbosch University.

Future Research Focus• Lower cost mirrors. (Google is doing this at the moment!)• Lower cost receivers• Alternative heat transfer fluids.

International Partners• ISE, Frauenhofer Institute.• DLR, Germany.• NREL, USA.• Schott (?).• Solel (?).

Research Area: Heliostats

Past & Current Research• New configuration and design of a heliostat by ESKOM.• Prototype heliostats were built and commissioned by ESKOM inassociation with Reutech Radar Systems, Stellenbosch.• Optimisation of the heliostat field as well as the structure for ESKOM inassociation with Stellenbosch University (CRSES).• Target-aligned heliostat built and tested by CSIR for Solar GasTurbine project.

Future Research Focus• Structural optimisation of pedestal and supporting structures.• Novel focussing mechanism of mirror.• Alternative concepts and configurations.

International Partners• DLR, Germany.• NREL, USA.• eSOLAR (?).

Research Area: Solar Gas Turbines

Past & Current Research • Development of a solar driven gas turbine engine at the CSIR in collaboration with Stellenbosch University. • SunSPOT hybrid power station, Stellenbosch University. Future Research Focus • Cost optimisation. • Hybrid operation.

International Partners • DLR, Germany. • Turbec, Italy

Research Area: Energy Storage

Past & Current Research • Salt storage on 100 MWe CSP plant, ESKOM. • Storage for solar gas turbine project, CSIR. • Using locally sourced materials for thermal storage, ongoing research project at Stellenbosch University.

Future Research Focus • Cost efficient storage mediums. • Phase change materials. • High temperature thermal storage. • Alternative concepts.

International Partners • DLR, Germany. • NREL, USA. • Abengoa Solar, Spain. • Solar Institute Julich, Germany.

Research Area: Dish Stirling

Past & Current Research• ESKOM installed and operated a 25

kW Dish Stirling at the DBSA.• System donated to UKZN, may be

installed in two years time at the Westville (?) campus.

Future Research Focus• Reliable, low maintenance Stirling

engine.

Key National Initiatives

DST funded study: • Prepare a Solar Energy Technology Roadmap. • Centre of Competency in Solar Energy: Develop business and implementation plan. • Main contract placed with CSIR in consultation with various stakeholders and service providers.

SANERI (soon to become SANEDI) • Renewable Energy Centre for Research and Development (RECORD) Sub-Centres in SWH (TUT) and CSP (Johannesburg) • Contracted Accenture to develop a business plan for the RECORD

CSIR • “Solar Sandpit”, heliostat field with a central tower to test collectors, receivers and smaller systems. • Gas turbine cycle tri-generation demonstration plant.

Key Initiatives: Eskom CSP Project

Eskom, 100 MWe, CSP northwest of Upington • Receiver – 540MW(t) • Energy storage – 14 hours, Salt volume of 25,000 ton • Plant capacity – 100MW(e), generating 24 hours over summer solstice • Load factor – 68% • Construction will take 3 years. Plant can be operational by 2013/14. • Detailed technical risk assessment and mitigation studies have been conducted. • Project put on hold by ESKOM

Research Focus • Heliostat design • Field layout & optimisation • Receiver improvements • Salt circuit re-design • Resource characterisation

SANEDI CSP Proposal

Short term (1-3 years) Establish RECORD CSP Sub-Centre, including

Administrative Centre Solar Manufacturing Hub Design Centre Test Centre Demo Plant Site secured (in conjunction with commercial partner) Detailed Design completed and Project Finance secured for Commercial

Demonstration Project

Medium term (3-5 years) Implement commercial demonstration project with commercial partner (e.g.

Abengoa Solar, E-Solar, Eskom, Sasol) Establish manufacturing capacity in SA to support demo and future projects

(with potential partners such as IDC) Long term (> 5 years) Establish rollout programme for 1000 MW by 2021

Conservative target, will be stepped up, depending on REFIT availability

Proposed Solar Hub for South Africa

Administrative Centre

Solar Manufacturing Centre

Solar Test Facility

Possible Demo Site

Design Centre

Functional Areas of Key Components of Hub

Administrative Centre Based in Sandton, Johannesburg Will be nerve centre of Hub, detailing strategy and monitoring performance of spokes Fund-raising role Project finance (design and acquisition)

Solar Manufacturing Centre Site located near Johannesburg (~3 ha) Could be used to train technical staff to manufacture, assemble and maintain

CSP components, including heliostats Solar water heating components (collectors and tanks) PV module assembly

Solar Design Centre Based at University of Stellenbosch Will develop prototypes of new components Will do tests and analysis of systems to be introduced

Solar Test Centre Located in Upington (near Demo Plant site) Will be used to conduct field trials of various CSP systems, including new components developed by

Design Centre Demo Plant Site

Will be sited based on developer involved Will be commercial from day of commissioning Will transfer components from Test Centre to Demo Plant Site, once all tests have been completed

Proposed Demonstration Project

100 – 200 MWe Central Receiver technology, with adequate storage for 24 hrs generation in summer months

Power to be fed into national grid, at REFIT rates

Strong commercial focus, with only 25% equity in public hands (mainly through SANEDI, but possibly also CEF, IDC)

Big focus on local employment creation opportunities, with regional training centres to be introduced over time

Q&A

Acknowledgements Prof Wikus van Niekerk (University of Stellenbosch) Dr Louis van Heerden (Abengoa Solar)