1. Ingula Pumped Storage Project & Spirit of Ireland Project Sam Mottram – Manager Power Services 8 November 2010

2. Outline Ingula 1,334 MW Pumped Storage – South Africa – ESKOM (SA Public Utility) – Environmental & Socio-Economic – Design, Costs, Construction Something New : Spirit of Ireland Project Why consider Pumped Storage in BC? 2

3. 3 Ingula Pumped Storage By Sam Mottram November, 2010

4. South Africa 4

5. 5 Population of 46 million Size approximately = BC and Alberta combined 11 Official Languages (English = business language) Democracy since 1994 9 Provinces Home of Nelson Mandela and the Vuvuzela

6. ESKOM ESKOM is the SA public utility that is about 4 times the size of BC Hydro ESKOM supplies approximately 45% of all Power in Africa (45,000 MW) SA base load is supplied by Coal Generation Other sources include: Nuclear 1,800 MW Hydro 600 MW Pumped Storage 1,400 MW Requires additional 40,000 MW by 2025 6

7. ESKOM – 5-Year Capital Plan US$ 50 Billion, including: Power Generation: Return to service3,720 MW Open cycle gas turbine2,084 MW Ingula Pumped Storage1,334 MW Medupi Coal-Fire Station4,764 MW Kusile Clean Coal-Fire4,800 MW Transmission: 765 kVLines-8,122km 400 kV Lines-7,768 km 275 kV Lines- 310 km 132 kV Lines- 293 km 7

8. ESKOM – 5-Year Capital Plan Financing the US$ 50 Billion Plan: Eskom & Government Reserves Privatization and Sale of some of Eskom Assets Shortfall met by World Bank Loan Increasing Electricity Rates at 25% per year over a 3 year period (i.e. 95% increase in rates!). 8

9. Pumped Storage Project Layout 9

10. 10 1,334 MW Pumped Storage – Daily Peaking Drakensberg Mountains (Kwa-Zulu Natal) Ingula Pumped Storage - RSA

11. 11 1,334 MW (4 x 333 MW reversible pump turbines) 480 m Gross Head, 450m Net Head Generating Flow = 348 m 3 /s Pumping Flow = 241 m 3 /s Lower Reservoir RCC Dam (Braamhoek Dam = 39m high) Upper Reservoir CFRD Dam (Bedford Dam = 41m high) Underground Powerhouse (150 m x 45 m x 25m) Main Access Tunnels (9m x 9m x 1,250m) Headrace Tunnels/Penstocks (2km) Tailrace Tunnels (2.5km) Ingula Pumped Storage - RSA

12. Ingula – Project Layout 12

13. 13 Ingula – Project Section

14. Ingula Underground Works 14

15. 15 90 different sites were assessed, before Ingula was selected Sediment control Baseline monitoring sites, Sediment management plans Bark stripping of indigenous plants for medicinal use There is a threat of illicit medicinal plant harvesting across South Africa. Policing, fines, medicinal plant nurseries, etc Feasibility study underway to designate some of the areas around Ingula as nature reserves. This has been done at many dam sites in South Africa. Access roads, camps, borrow areas and spoil areas Location, Traffic management, Borrow areas located with reservoirs, etc Ingula – Permitting & Environmental

16. Red-listed species in wetland surrounding upper reservoir (Critically endangered) – White-winged Flufftail. Location of reservoir – moved 1km away from where bird is usually found. Diverting wetland water around reservoir. Keeping construction activities and staff off wetland areas. Education programs and workshops 16

17. 17 Ingula – Access Roads

18. 18 Ingula – Upper Reservoir (CFRD)

19. 19 Ingula – Upper Reservoir (CFRD)

20. 20 Ingula – Intake Tower & Surge Shaft

21. 21 Ingula – Access Tunnel

22. 22 Ingula – Underground Works

23. 23 Ingula – Underground Works

24. 24 Ingula – Underground Works Surge Shaft Outlet Structure

25. 25 Ingula – Lower Reservoir (RCC)

26. 26 Ingula – Lower Reservoir (RCC)

27. 27 Total Estimated Cost = US$2.4 billion US$1.8 million per MW Installed Dams Contract = US$1,200 million Pump Turbines = US$200 million Underground Powerhouse & Waterways = US$800 million Ingula – Project Costs

28. 28 Ingula – Development Schedule Feb 2005 – Start Nov 2013 – Scheduled Completion Access Roads – Complete Upper Reservoir – CFRD: Reached full height Lower Reservoir – RCC: Reached full height Access Tunnel - Complete Underground Works 80% complete Can it be Built? YES!

29. 29 Spirit of Ireland Project Sea Water Pumped Storage Concepts Wind Power & Pumped Storage Integration

30. 30 Overview – Spirit of Ireland Understanding of Irish Power Sector Salt Water Pumped Storage Existing Plants - Japan Environmental Issues – Salt Water Related Technical Issues – Salt Water Related SOI Project: 1,000 MW Pumped Storage + 1,800 MW Wind

31. 31 Ireland Irish Population = 4.3 million Total Installed Capacity = 7,300 MW Annual Energy Demand = 28,000 GWh

32. 32 Irish Grid 400kV Backbone between Dublin and Limerick Weak grid on west cost where major wind resource exists

33. 33 Irish Power Sector Ireland imports > 90% of its energy requirements Wants to become more self-sufficient Energy Mix: Coal 10.3% Peat 4.4% Oil 56.4% Natural gas 25.3% Renewables 2.7% Electricity import 1%

34. 34 Ireland has a huge wind resource. Development of this resource is constrained due to transmission infrastructure and shaping capabilities. Spirit of Ireland – PS Hydro & Wind

35. 35 Wind Integration in European Union (EU): Wind provides about 5% of EU energy requirements. Continues to increase each year. Ireland currently > 8% Ireland would like to attain 40% by 2020. This can only be achieved by: Major expansion of transmission system, including interconnection to UK, then EU. Storage (i.e. Spirit of Ireland Pumped Storage Hydro) Spirit of Ireland – PS Hydro & Wind

36. 36 1,000 MW PS Hydro (Salt Water) 1,800 MW Wind (18 x 100 MW community owned wind farms) 7-10 days storage Future expansion to UK/EU, including additional 1,000 MW PS Hydro sites on Irish west coast Shaping of EU Renewables Spirit of Ireland – PS Hydro & Wind

37. 37 Spirit of Ireland – Saltwater PS

38. 38 Spirit of Ireland – Saltwater PS

39. 39 Okinawa Yanbaru Power Plant: A Seawater Demonstration Project Located on Okinawa (Japan) A prototype pumped storage plant with: a single 30-MW unit 136-m net head Reversible, variable speed 8 hours of generation “Sea-Water Pumped Storage” Okinawa Seawater Pumped Storage Plant - Japan

40. 40 Challenges: Leaching of Seawater – Upper Reservoir Seawater Spray - Upper Reservoir (Vegetation) Adherence of marine organisms Corrosion of Turbines/Other materials Effects on marine life at Ocean Outlet “Sea-Water Pumped Storage” Breakwater and Intake of Okinawa Seawater Pumped Storage Plant - Japan

41. 41 Okinawa Seawater Pumped Storage Plant - Japan “Sea-Water Pumped Storage”

42. 42 Lined Upper Reservoir - Okinawa Seawater Pumped Storage Plant - Japan “Sea-Water Pumped Storage”

43. 43 Spirit of Ireland – PS Hydro & Wind Can it be Built?

44. 44 Peaking Capacity – Close to load centres Energy Security (line outages, extreme cold, etc) Alleviate Transmission Constraints, especially if the Pumped Storage facility is built in: Lower Mainland Vancouver Island May reduce the need for major new transmission to: Lower Mainland Vancouver Island Energy Exports, and shaping of additional renewables for energy exports. Voltage Regulation. Why consider Pumped Storage in BC

45. Knight Piésold 45 Mining Environment Power and Water Resources