Energy Solutions for Africa

Transcription

1 Energy Indaba 2010 Energy Solutions for Africa Energising Africa the road to achieve sustainable energy systems in Southern Africa Thulani S. Gcabashe February 2010

2 The BuiltAfrica Group Inspired by this need and the opportunity to establish an African Independent Power Producer and Project Development company, the BuiltAfrica Group was formed in 2008, with the view: To become a leading developer of sustainable utility infrastructure and energy assets across the African continent 2

3 Vision Interconnected Power System An intent dating back to the 1980s but driven by Utilities and Governments Hydro power generation in the north, and coal and nuclear generation in the south, linked by a high voltage transmission network Formation of SAPP in 1995 Bilateral and spot trading Coordination of planning Investment promotion of the region Formation of RERA Harmonisation of regulatory frameworks in the region Some early projects (1990s 2000s) Motraco system linking South Africa, Swaziland and Mozambique Interconnector between South Africa and Namibia Transmission line between South Africa and Zimbabwe via Botswana 3

4 Status of Energy System It is substantial by world standards Eskom Generation capacity of 40,503 Mw (ranking in the top 10 globally) 381,780 Km of transmission networks Gwh sales in 2009 Over 8 million customers In addition, the rest of SADC 11,623 Mw generating capacity Gwh sale in 2008 The potential capacity of the Inga Hydro site is as much as Mw Further Mw potential in the Kwanza Valley in Angola 4

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6 Status of Energy System All is not well... SA has achieved an electricity penetration of about 75%, but the rest of SADC is only about 15% System reserve margin sits at about 9% (preferred to be at 15%) Ageing generation plant which has been operated at its maximum rating for extended periods 221,7 mt of CO2 emissions in 2009 from Eskom plant alone The prospect of over 30% per annum price increases for 3 consecutive years 6

7 Road to a Sustainable Energy System Encompasses five pillars which must be addressed in creating a sustainable energy system for this region Shared Vision Meaningful participation by all stakeholders is a must business, NGOs, etc. Even those not connected to the grid are affected Increased involvement of organised business in SA has contributed to managing power shortages Sustainable National Accessible Power Planning (SNAPP) tool recently launched at a WWF workshop Societal Needs Empowerment of communities to make the right decisions to address energy usage Distributed ib t generation technologies making it possible for local l community control of energy supply Reliance on inefficient energy carriers such as firewood and paraffin a burden to the poorest 7

8 SNAPP Tool Road to a Sustainable Energy System 8

9 SNAPP Tool Road to a Sustainable Energy System 9

10 Road to a Sustainable Energy System Strategy on Environment SA is ranked amongst the top 15 emitters globally Strategy is to reduce the contribution of fossil fuels whilst meeting the needs of a growing economy and extension of the service to those not yet connected Mitigation scenario will first see emissions increasing up to 2020, then stabilising by 2035 and declining thereafter New and concerted approach to achieve energy efficiency, increased renewable energy generation and application of sustainable technologies Target of Gwh by 2014 from renewable sources. To be achieved by the utilisation of solar, hydro, biomass and wind generation technologies 1 million Solar Water Heaters to be installed within five years resulting in a saving of 1000Mw Clean coal, gas and nuclear are part of the base load solution 10

11 Road to a Sustainable Energy System Investment Climate Required investment has generally lagged behind growth in demand The current 5 year build plan amounts to R385 billion and growing Private investment has to be included as the public sector cannot meet such a requirement on its own Economic, cost reflective tariffs should be implemented as long as there are provisions for the poor Regulatory framework needs to clearly offer protection of long term investments that would be made Institutional Capacity Strong independent regulation A set of congruent and binding policies that provide the rules of the game Transparent market mechanisms Sustainable funding model for Eskom Cost recovery e mechanism to render the REFIT tariffs sustainable ab 11

12 Way Forward All encompassing body/commission to facilitate the development of a sustainable energy system by undertaking the following: 1.Efficient Investment Balance between base load (coal, nuclear, hydro) and non firm renewable energy (solar, wind, hydro, biomass) with emissions reductions as a primary objective Policy and incentives to guide the development of the most optimal generation resources at the most appropriate location without regard to political boundaries Promotion and facilitation of uptake of global climate change regimes such as the CDM programme throughout the region. Avoidance of stranded assets as attempts to overcome power shortages prompt countries to undertake projects that may not be competitive in future. 2. Financially Sustainable System Harmonised tariff regime that addresses affordability and investment return Optimisation of the SAPP trading system to include renewable energy 12

13 Way Forward 3. Public Accountability Greater involvement of the public in exercising choices, and greater accountability from the public for energy utilisation More effective public participation throughout the planning and execution phases of projects 13

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