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Renewable Energy Initiatives Ms Nomawethu Qase
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Presentation Outline Overview of RE Focus Areas Enabling Policy Framework Current Renewable Energy Implementation Status
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Renewable Energy Solar PowerWind PowerBiomass/BiogasHydro PowerHybrid Solutions The objective is to ensure the integration of renewable energy into the mainstream energy supply by planning and coordinating interventions Policy/Strategy Development Enabling Environment Regulations/ Standards Guidelines for Implementation Awareness Campaigns
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Policy Framework National Development Plan (2011) Renewable Energy White Paper (2003) Electricity Regulation Act (2006) Integrated Resource Plan (2010) Integrated Energy Plan (2013)
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Policy Framework National Development Plan (2011) Renewable Energy Policy White Paper Electricity Generation Act Integrated Resource Plan Integrated Energy Plan The National Planning Commission was appointed in 2010 by the President to develop a long-term national development plan (NDP). For the electricity sector, a key focus of the NDP is the country’s ability to return to a state of continued and uninterrupted electricity supply. This is to be achieved by increasing the electricity generation reserve margin from 1% (2014) to 19% in 2019, which will require the development of 10GW of additional electricity capacity by 2019 against the 2010 baseline of 44GW. Five of the 10GW are to be sourced from RE, with an additional 2GW to be operational by 2020. The NDP also has a long-term vision of 5 million SWH installations by 2030 building on the initial target of 1 million SWH installations by March 2015.
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Policy Framework National Development Plan Renewable Energy White Paper (2003) Electricity Generation Act Integrated Resource Plan Integrated Energy Plan The Renewable Energy White Paper had a number of objectives, including ensuring that an equitable level of national resources was invested in renewable technologies; directing public resources for implementation of renewable energy technologies; introducing suitable fiscal incentives for renewable energy and; creating an investment climate for the development of the renewable energy sector. envisioned a target of 10 000GWh of energy to be produced from renewable energy sources (mainly from biomass, wind, solar and small-scale hydro) by 2013.
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Policy Framework National Development Plan Renewable Energy Policy White Paper Electricity Regulation Act (2006) as amended Integrated Resource Plan Integrated Energy Plan The electricity regulation act is supported by new generation capacity regulations which made a determination for the procurement of 13 225MW of renewable energy Allocated quantities are derived from the IRP 2010-2030 The Act gives power to the Minister of Energy to determine new generation capacity requirements and to approve the generation and procurement thereof in consultation with the National Regulator of SA (NERSA)
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Policy Framework National Development Plan Integrated Resource Plan (2010) Electricity Generation Act Integrated Resource Plan Integrated Energy Plan The IRP 2010, developed the preferred energy mix to meet electricity needs The IRP is the most recent plan covering the period 2010 to 2030. It estimates that electricity demand by 2030 will require an increase in generation capacity of over 46GW, of which 23.6GW is from renewables (including Hydro). This represents 26% from renewable energy sources, including Hydro, towards the total system capacity of 89,532MW planned for 2030.
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Policy Framework National Development Plan Integrated Energy Plan (2013) Electricity Generation Act Integrated Resource Plan Integrated Energy Plan The IEP aims to guide future energy infrastructure investments, identify and recommend policy development to shape the future energy landscape of the country. The IEP considers all different energy carriers, all technology options and all key national policy imperatives and proposes an energy mix and policy recommendations that will ensure that the energy sector can help achieve broader government objectives in the most optimal manner.
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Solar Power Wind PowerBiomass/BiogasHydro PowerHybrid Solutions Most areas in South Africa average more than 2 500 hours of sunshine per year, and average solar-radiation levels range between 4.5 and 6.5kWh/m 2 in one day. This makes South Africa's local resource one of the highest in the world. Solar PV Concentrated Solar Power Solar Water Heaters
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Solar Water Heating Programme NSWH programme launched in 2010 In 2009 Eskom was mandated to install 1 000 000 (1 million) systems under conditional grant, with the objectives to: a) reduce electricity demand and Green House Gases (GHG) emissions; b) protect poor from electricity tariff increases; c) facilitate local manufacturing industry and create employment. Observations & Outcomes over 400 000 systems installed in residential dwellings to date; electricity reduction not achieved as more installations have been in low electricity consumption areas; imported products have dominated installations; poor quality installations - due to lack of training? ; unreliable (verification of) number and location of installed systems due to inadequate monitoring; lack of maintenance of systems resulting in users reverting to electric systems.
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Wind Power Solar PowerWind PowerBiomass/BiogasHydro PowerHybrid Solutions South Africa has good wind resources across her landscape particularly in the coastal areas of the Eastern and Western Cape provinces. A Wind Atlas has been developed with the support of the Danish Government and is currently being expanded to cover KwaZulu-Natal, Free State and the remaining parts of the Eastern and Northern Cape Provinces. It consists of - Verified Numerical Wind Atlas (VNWA), a database of wind time-series data and High Resolution Wind Resource Map = NB for estimating wind power production and therefore wind farm siting - an Extreme Wind Atlas = to inform wind turbine class. Eskom Klipheuwel (3.2MW) & SERE (100MW) wind farms South Africa Wind Energy Programme Darling National Demonstration Wind Farm (5.2MW)
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Biomass/Biogas Solar PowerWind PowerBiomass/BiogasHydro PowerHybrid Solutions The main source of biomass are fuelwood in the rural domestic sector, bagasse in the sugar industry, and pulp and paper waste in the commercial forestry industry. Biomass can be used for domestic thermal applications and Combined Heat and Power in industrial applications respectively. The Department of Science and Technology has recently completed a Bioenergy Atlas for South Africa which includes the national bio energy resource potential, location of such resources etc. A national Biofuels Industrial Strategy was approved by Cabinet in 2007 which envisaged a 2% biofuels penetration to the current fuel pool by 2013. The 2% will slightly contribute to energy security, create 25 000 jobs in rural farming, and achieve a balance of payments saving of R1.7 billion. This sector still requires further development and support. South African Biogas Platform Annual National Biogas Conference National Biofuels Industrial Strategy
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Hydro Power Solar PowerWind PowerBiomass/BiogasHydro PowerHybrid Solutions Opportunities under consideration in terms of the South African policy framework, particularly the IRP 2010 include Small Scale hydro power (within SA) and Large Scale Hydro Power from neighbouring countries e.g. Democratic Republic of Congo (DRC). IRP 2010 planned for 2 600MW to be imported from the region. Currently, there is a mix of publicly and privately owned small hydroelectric power stations including Eskom’s owned pumped storage schemes. Estimated potential for new small-scale Hydro development of about 247MW is located in the rural areas of the Eastern Cape, Free State, KwaZulu-Natal and Mpumalanga provinces; Baseline Study on Hydropower in South Africa E Cape & KZN provinces have the best potential Southern African Power Pool Free Trading
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Renewable Energy Independent Power Producer Procurement Programme The IPPPP is a key vehicle for securing electricity capacity from the private sector for renewable and non renewable sources as determined by the Minister of Energy.
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Part A: General Requirements, Rules and Provisions Part B: Qualification Criteria Part C: Evaluation Criteria Request for Proposals Contract between the Buyer (Eskom) and the Seller (IPP) Solar Photovoltaic PPA Onshore Wind PPA Small Hydro PPA Biomass PPA Power Purchase Agreement Contract between the IPP and the Department Obligation for IPP to deliver on Economic Development obligations On Buyer default – Department to pay the IPP Implementation Agreement 16 Procurement Process Documents
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Request for Proposal (RFP) Requirements Rules Provisions RFP Part A Environment Land Commercial Economic Development Finance Technical RFP Part B Qualification Price Economic Development Job Creation Local Content Ownership Management Control Preferential Procurement Enterprise Development Socio-Economic Development RFP Part C Comparative Evaluation 17 Procurement Process Documents
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18 Contractual Arrangements IPPGovernmentEskom Government Support Framework Agreement Implementation Agreement Power Purchase Agreement
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Progress to date…
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REIPPPP Contribution to Generation Capacity
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REIPPPP Successes Procured Renewable Energy Generation Capacity including bid window 1 to 4.5 (small-scale IPP generators) *As at Dec 2015
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THANK YOU
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