Ian Curry Managing Director BR Energy South Africa

Ian Curry Managing Director BR Energy South Africa

GRID INTEGRATED ENERGY STORAGE THE MISSING LINK IN SOUTH AFRICA S INTEGRATED RESOURCE PLAN

INTRODUCTION South Africa is currently experiencing one of the most significant electrical energy crises in its relatively short history.

FROM THE HORSES MOUTH Unplanned Outage Allowance for planning has been increased due to a very constrained system and higher than expected demand Eskom

THE IMPACT IS SIGNIFICANT Curtailing economic growth; Reducing SA Inc competiveness and ranking as a destination for foreign investment; SA Inc Credit Ratings ; Cost of Debt ; Increasing the burden on the fiscus; Consumer confidence at its lowest in 9 years!

THE PRESSURE IS ON Deliver cheap electricity NOW to meet the country s requirements; Coal fired base load is considered to be the quickest and cheapest solution? But Medupi is behind schedule and significantly over budget! This can only increases the LCOE

ON THE OTHER HAND RSA is the 13 th highest emitter of CO 2 globally; 8 th highest in terms of GDP* Therefor SA has included Low Carbon Generation into the IRP (RE and nuclear); But what about grid stability due to the variable nature of wind and solar derived power? * The Economist

A BIT OF A SQUEEZE!

SOUTH AFRICA S INTEGRATED RESOURCE PLAN IRP2 2010-2030 41,346 MW Coal 15,133 Renewables (Wind, CSP, PV, Landfill, Hydro, Biomass) 12,525 Nuclear 9,600 OCGT 6,770 Hydro Imports 3,349 CCGT 1,896 Co-Gen Own Build 1,643 Ingula Pumped Storage 1,332 Decommissioning -10,902 RTS 1,463 Medupi Kusile 8,670 Future Coal 5,000 2030 Peak Demand Forecast 67,809 MW

PROPOSED 2030 GENERATION MIX AS PER IRP2 Generating Capacity in 2030 as per IRP2 Revised Balanced Scenario Renewables 13.80% CSP Hydro 6.50% Coal 48.20% Nuclear 13.40% Pumped Storage 3.40% CCGT 2.20% OCGT 10.80%

CURRENT GRID MANAGEMENT MECHANISMS

ESKOM POWER PLANTS Spinning Reserve

ESKOM POWER PLANTS Peaker Plants

ESKOM POWER PLANTS Hydro Pumped Storage

THE CASE FOR STORAGE

INTERNATIONAL RESEARCH FINDINGS Storage technologies are able to displace backup generation capacity on a MW for MW basis; typically replacing high OPEX peaker plants Storage capacity facilitates higher operational efficiencies of baseload and mid-merit plant; Storage duration beyond 6 hours does not add significant system value; Storage capacity minimises renewable energy generation curtailment;

INTERNATIONAL RESEARCH FINDINGS Distributed storage enhances transmission capacity utilisation; Distributed storage offsets transmission and distribution capacity investment required to accommodate peak demand congestion; Storage capacity is shown to be more cost effective than CCS in reducing grid emissions; A suite of technologies is required to suite the overall system requirements;

STORAGE TECHNOLOGIES

CRYOGENIC STORAGE?

CRYOGENIC STORAGE PROCESS FLOW DIAGRAM

CRYOGENIC STORAGE Alternative to pumped storage; Not geographically limited; Utilizes proven industrial scale processes and components; Round Trip Efficiency 50%; Supplementary Waste heat recovery increases RTE to 70%; Capital Cost 25% of NAS Battery System 30% - 50% of Pumped Storage

CRYOGENIC STORAGE 9 7 6 5 4 3 10 8 2 2 1 1 Provisional layout for 20MW/80 100MWh System 1. Containerised power turbine and generator 2. Heat exchanger containers 3. Cryo pumps 4. Liquid air storage 5. High grade cold stores 6. Hot water storage 7. Air cleaner 8. Cold box and cold expanders 9. Compressor house 10. Electrical intake and switch-house

SOUTH AFRICA S CURRENT GENERATION STRUCTURE

THE PLAN AS PER IRP2

A FUTURE WITH STORAGE

RECOMMENDATIONS REGARDING STORAGE IN RSA A study along the lines of that conducted by the Energy Futures Lab, Imperial College, London is required for South Africa; International collaboration between Tertiary Institutions on the subject of energy storage needs to be encouraged; The strategic importance of storage in a South African context must not be underestimated;

RECOMMENDATIONS REGARDING STORAGE IN RSA Revisions of South Africa s IRP must integrate a suite of storage technologies or run the risk of forcing a sub-optimal plan onto the nation; Policy makers must develop appropriate market mechanisms and legal frameworks to allow for and adequately reward investors for delivering storage capacity;

CONCLUSION The deployment of distributed, cost effective, grid connected storage capacity holds tremendous benefit for South Africa in its time of need; Such technologies are readily available and utilise commercially proven systems and processes that allow for high local content; The necessary policy frameworks must be adapted to accommodate the need for storage in South Africa.

REFERENCES Electricity Regulations on the Integrated Resource Plan 2010 2030; Department of Energy; Government Notice, No. 34263; May 2011 Strategic Assessment of the Role and Value of Energy Storage Systems in the UK Low Carbon Future, Report for the Carbon Trust; Energy Futures Lab, Imperial College; June 2012 Revisiting Energy Storage, There is a Business Case; The Boston Consulting Group; February 2011 Liquid Air, The Birth of the Nitrogen Economy; Gas World Magazine; October 2012 Pathways for Energy Storage in the UK; Centre for Low Carbon Futures; March 2012

REFERENCES The effect of Irish wind power on CO 2 emissions from thermal plant; Hugh Sharman; Incoteco (Denmark) ApS; 2012 Case Study of Ingula and Lima Pumped Storage Schemes; Frans Louwinger; Eskom Enterprises; February 2008 Impacts of large amounts of wind power on design and operation of power systems, results of IEA collaboration; 8 th International Workshop on Large-Scale Integration of Wind Power into Power Systems as well as on Transmission Networks of Offshore Wind Farms, 14-15 October 2009, Bremen