Warwick de Villiers. Barloworld Power. Applications Manager. Southern Africa

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1 Warwick de Villiers Applications Manager Barloworld Power Southern Africa

2 Opportunities On Site Power in an African Environment World Wide Economic Growth and Technology Shifting from Engines to Engineering Power to be Always On, Always Available Africa is no exception

3 Solution Options Several possible solutions exist to : ensure the continuity of power supply - near centres of consumption - power at a point, regardless of the major transmission and distribution power lines

4 Types of Solutions Current quick solutions include generators. Africa has large potential for Solar, and in some countries, Hydro. Each solution has pro s and con s Hybrid solutions becoming relevant

5 Generators W.r.t generators, suppliers in Africa: Caterpillar General Electric Cummins MTU Volvo Perkins Hyundai 5kVA 100MVA Solutions

6 Fuel Sources African Fuel Sources Fossil Fuels Diesel Petrol HFO Biofuels Coal Gas LNG (Natural Gas) LPG Methane (CH 4 ) Biogas

7 Methane (CH 4 ) Sources Methane (CH 4 ) sources in Africa include Coal Bed and Mine Methane Underground Coal Gasification Landfill & Organic Waste Sites Water and Waste Treatment Facilities Livestock Manure Digester Plants Co-generation Opportunities

8 Fuel Quality and Storage Fuel Quality Poor diesel quality & contaminants System failure

9 Fuel Quality and Storage Fuel Storage Fuel Delivery Approvals

10 Solar Solar in Africa Many global solution providers Large solar installations feasibility stages Lack of knowledge & High initial capital cost Solutions include Grid tied systems to reduce grid feed Solar and Battery Backup Stand Alone Systems

11 Hydro Hydro in Africa Hydro plants exist throughout Africa. Not many are at full operational capacity Affected, seasonal rainfall and droughts Lack of skill, knowledge, and funds w.r.t maintenance.

12 IPP s IPP s - Independent Power Producers Opportunities exist Currently minimal significant purchasing agreements are signed. Major challenge in Africa - transmission Most infrastructure grid and transmission networks are not always available

13 IPP s IPP s - Independent Power Producers If available usually state owned Willingness to share / rent network not forthcoming Power is seen as Strategic Strict controls imposed Many industries have ability to produce SA government 10% from Private Sector

14 Funding Global Economic Crisis No CAPEX Funding & Structured Finance solutions: Asset Backed Loans Finance and Operating Leases Dual funding from financial institutions & DFI s Long Term Rentals Rental, Used, and New solutions Purchase power by kwhr

15 Skills Skills Shortage Developing local skills Training Knowledge Transfer Sustainability Support

16 Energy Efficiency Energy Efficiency and Power Conservation No more Cheap electrical power Energy Accord and Punitive Penalties Smart usage - result in cost savings Generators / alternative power no longer a grudge purchase Tool to control peak demand costs and provide risk insurance

17 Value Add Durability and Reliability Local backup and service w.r.t parts and skills offered in Africa Cheap solution normally minimal support Provider to understand local conditions Many solutions in African countries not functioning at full capacity. Cheapest option is not always the Best Option in the long run.

18 Sector Solutions Municipal Distribution & Utilities Interim or permanent on site power alleviating current constraints. Complementary urban power generation Base line or peak supply, at key substations Assist in managing demand.

19 Sector Solutions Municipal Distribution & Utilities Leverage the proximity of water treatment plants and landfill sites Generate power closer in the municipal power distribution zone Use gas generated to run bio gas generator sets or turbines. Technology successful in Europe

20 Sector Solutions Mining and Utilities Grid support power Stand alone power Key Installations Ring fencing of key installations Public, Commercial, Industrial, Manufacturing Supply dedicated prime, standby and uninterruptible power solutions at all times.

21 Sector Solutions Telecommunications Network Stability Essential Information backup Improved reliability Sites require remote monitoring Solutions include batteries, Solar System, Generators and Hybrid Solutions

22 Questions

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