CONCENTRATED SOLAR POWER POTENTIAL OVERVIEW

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2 CONCENTRATED SOLAR POWER POTENTIAL OVERVIEW

3 ELECTRICITY GENERATION BALANCE Capacity Generation (MW) (TWh) Hydroelectric Nuclear Geothermal and Other Thermal Totals MW

4 Interventions National Energy Security through diversification is a responsibility of Government. The production and distribution of energy should be sustainable and lead to an improvement in the standard of living of citizens, In 1998, a White Paper on Energy Policy of the Republic of South Africa was adopted and published as an overarching energy policy, for South Africa. This Policy makes provision for the public and private sector investment in the energy sector. In 2003, a supplementary White Paper on Renewable Energy was developed to drive the renewable energy sector. This White Paper sets a target of GWh by 2013, seeks to create rural jobs and also identifies the roles and responsibilities of Government agencies and other state organs. In order to operationalise the policies, energy carrier implementation frameworks had to be developed. 4

5 Interventions (cont./) A macro-economic analysis study was conducted which provided guidance on the potential of each RE resource and possible prioritisation based on the least cost option. A Biofuels Industrial Strategy was developed and approved in 2007 to assist with the achievement of the non-grid portion of the RE White Paper target. December 2007: Political resolution - promote energy efficiency, renewable energy and integrated planning with tariffs that consider the full cost of energy (including externalized costs February 2008: Budget Speech announces 2c/kWh levy on non-renewable electricity. June 2008: cabinet endorses the Long Term Mitigation Scenarios (LTMS) and a target range for peaking and stabilizing the country s emissions by 2020 to 2025 and then decreasing them within ten years. A policy review Summit of March 2009, set in motion a process to look at targets beyond 2013, and removing blockages that hinder renewable energy deployment in South Africa. 5

6 Barriers to renewable energy deployment Pricing regime Technology Information dissemination Enablers Regulatory environment

7 RE SUMMIT RESOLUTIONS Policy, Legal and Regulatory Environment Decisive, ambitious, streamlined and progressive policy, legislative and regulatory frameworks for sustainable development principles and consistent with the LTMS. Policy and legislative alignment and harmonization between the three spheres of government and set ambitious and specific national targets An urgent need for finalizing institutional arrangements for transparent governance, implementation and rapid scaling up of renewable energy programmes. Multilateral considerations There must also be a clear, unambiguous policy, and legislative alignment with multilateral renewable energy and climate change imperatives, to which South Africa subscribes, including our international commitment that national greenhouse gas emissions will peak and plateau between 2020 and 2025 and decline in absolute terms after a decade.

8 RE SUMMIT RESOLUTIONS (Cont d 1) Financial Instruments comprehensive funding mechanism (state, donor agencies and the private sector.) establishment of sustainable structures and financing mechanisms for delivering renewable energy, including the strengthening of state support. carbon pricing and facilitation of the harnessing of greenhouse gas remittance increased funding to R&D spend linked to carbon taxation system. pro-poor approach to setting tariffs that does not compromise access to basic energy services when paying an appropriate premium for renewable energy Legal Instruments develop regulations for equitable access to transmission and distribution grids and wheeling of green electricity; set mandatory targets that must be achieved from each technology over time, develop a standard PPA that is favourable both to off-takers and IPPs.

9 RE SUMMIT RESOLUTIONS ((Cont d 2) Technology Development enhance collaboration between government and research institutes to accelerate national research and development in renewable energy technologies. promotion of local renewable energy technology manufacturing facilities, including through means such as concessionary finance, capital subsidies and/or preferential depreciation. develop and implement appropriate standards and guidelines and codes of practice for the appropriate and safe usage of renewable energy technology, without introducing barriers to investment. trade of local renewable energy technologies. Employment creation in RE Sector Skills development and training in RE Sector Awareness Raising, Capacity Building and Education in RE Sector Monitoring and Evaluation

10 NEED FOR CLEAN ENERGY BASED POWER IN SA CSP provides an opportunity for dispatchable mid merit renewable energy Replication potential of CSP plants in southern Africa is vast South Africa alone - 40 GW of commercially viable CSP in the Northern and Western Cape provinces. Replication in Namibia and Botswana could double or treble this potential. Integrated Resource Plan MW of CSP by 2028 Final design and risk mitigation review, followed by construction and operation of a 100 MW-capacity Concentrated Solar Power (CSP) plant 1 st ever commercial scale CSP plan in sub-saharan Africa.

11 ENABLING INSTRUMENTS Review and consolidation of the Renewable Energy Finance and Subsidy Schemes Development of the Tradable Renewable Energy Certificates Finalisation of the Renewable Energy Feed In Tariff regime Grid Codes for grid connected systems. Development of Standardised Power Purchase Agreements (PPA) for the grid connected systems. Establishment of an Independent Systems Operator through legislative means. 11

12 ENABLING INSTRUMENTS Budget speech: accelerated depreciation allowance for clean energy projects. Department of Energy splits from Department of Minerals. The new department identifies three focus areas: i. universal access to energy, ii. energy diversification (particularly through renewable energy) iii. energy efficiency. Renewable Energy Feed-in Tariff (REFIT) Phase 1 announced, covering CSP, Landfill gas, Wind, and Mini hydro schemes REFIT Phase 2 in process (NERSA) The Medium Term Strategic Framework (MTSF) prioritizes Sustainable Livelihoods (Priority 1) and Natural Resource Management (Priority 9) as focus areas The multi-stakeholder Framework for South Africa s Response to the International Economic Crisis identifies Green jobs as a priority area for recovery/stimulus.

13 SA S COMPETITIVE ADVANTAGE IN CSP We have lots of sun, in poor provinces, on unproductive land, close to major mining regions and in neighbouring countries with whom we have strong trade relations. We have expertise in energy technology, high-voltage transmission, dry cooling and maximizing power station availability. We have good transmission infrastructure and a mature manufacturing industry (e.g. in automotive)

14 MAXIMIZING POTENTIAL FOR SA Build large CSPs in the sunniest areas and maximize availability Manufacture locally (components where SA has advantage) and create local jobs Enhance local skills (manufacturing, installation, operation, maintenance and refurbishment). Use local intellectual property (where cost-effective) Integrate with other industries, like automotive for economies of scale and scope. Earn premium carbon credit Access available finance instruments

15 REMEMBER THE WSSD IN 2002 DISH STIRLING DEMO PLANT HERE AT THE DBSA CSP Let us move beyond the demo models

16 END OF PRESENTATION Thank You