Eskom's Renewables Strategy

Eskom's renewable strategy,Eskom's renewable strategy, innovation and green energyinnovation and green energy

Presented by:

Dave Lucas

Corporate Specialist (Environmental Management)

Climate Change and Sustainability Department

US MEDIA TOUR OF SOUTH AFRICAUS MEDIA TOUR OF SOUTH AFRICA

World electricity picture

Eskom’s Climate Change Strategy

History of renewable energy in Eskom

Options to meet the future

Demand side management

Energy opportunities and constraints

Eskom’s renewable projects

Agenda

Heading The world picture

Africa Challenge: Access to Affordable Energy Services

12% of the global population

but consumes only 3% of all electricity produced

Electricity generation - World (Source: International Energy Agency – Key World Energy Statistics 2008)

Electricity generation per region (Source: International Energy Agency – Key World Energy Statistics 2008)

3.1%

Coal OCGT Nuclear Renewable Energy Imports Pumped Storage

Eskom (Source: Eskom 2008 Annual Report)

HeadingEskom’s climate change strategy

Eskom’s climate change strategy

Eskom’s climate change strategy:

commitment to reduce our greenhouse gas emissions

outlines our view on the impacts of climate change on our business and people and therefore what strategies we require to pro-actively manage these impacts

Although the amount of CO2 that we emit will increase in the short- to medium-term, we are committed to assessing options to retard that rate of increase

Our intent is to decrease our relative CO2 (Mt CO2/MWh) footprint - until 2025

Beyond 2025, we will continually reduce absolute emissions in support of national and global targets

This will be done by investing in aggressive energy efficiency programmes and lower carbon-emitting technologies, as these technologies become available and meet the feasibility requirements

Eskom’s six point plan on climate change

Diversification of the generation-mix to lower carbon emitting technologies

Energy efficiency measures to reduce demand, greenhouse gas and other emissions

Innovation through research, demonstration and development

Investment through carbon market mechanisms

Adaptation to the negative impacts of climate change

Progress through advocacy, partnerships and collaboration

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HeadingHistory of renewable energy in Eskom

History of Eskom – renewable energy (1)

The Encyclopaedia of Southern Africa, records that "an electric device" was used in South Africa in about 1809

Gold was found in 1873 at Pilgrim's Rest - two small [6 kW] hydroelectric generators were in use at the Pilgrim's Rest gold mines in 1892 and another one [45 kW] in 1894 - used to power the first electric railway

Street Light

Vereeniging power station



Table Bay Harbour illuminated from April 1882.(Photo: State Archives Ref E 8661)

The first electrified railway in South Africa at Pilgrim's Rest. (Photo: D Vermeulen, In "An Electric Railway at Pilgrim's Rest in 1897", Elektron, Aug 2000:9)


Kimberley switched on electric street lights in 1882 making it the first city in Africa to be illuminated in this manner - London still relied on gas lamps for street lighting

The notion of a central electricity undertaking gained the support - establishment of the Victoria Falls Power Company Limited (VFP) on 17 October 1906 - intended harnessing the power of the Victoria Falls to generate the electricity (but was coal-based)

History of Eskom – renewable energy (3) The Government Gazette of 6 March 1923 announced

the establishment of The Electricity Supply Commission (Escom), effective from 1 March 1923

The hydro station in the Sabie River came into commercial operation in mid-1927. The Sabie River Gorge hydro station was the first station designed by Escom engineers

1965-1967: Cahora Bassa hydro-electric power station on the Zambezi River, in Mozambique (between South African and Portuguese governments) It was intended to supply electrical power along a 1 400 km route to South Africa - first power transmitted from Cahora Bassa in May 1975


Hendrik Verwoerd (re-named Gariep) hydro power station started feeding into Escom’s transmission system in 1971

Vanderkloof, a similar hydro power station, was commissioned in 1977 as another feature of the Orange River Project

In 1987 - Escom was renamed Eskom

The Eskom Conversion Act was signed into law in 2002 - public enterprise into a public company


Research and demonstration wind energy facility at Klipheuwel in the Western Cape from 2002 (3MW)

2007 – completed an environmental impact assessment and received environmental authorisation for a 100MW concentrating solar power plant

2007 - completed an environmental impact assessment and received environmental authorisation for a 100MW wind facility along the west coast

Heading Options to meet the future

Long term forecasts - national + foreign

30000

40000

50000

60000

70000

80000

90000

2005 2010 2015 2020 2025

MW

PositionModerate 77960 MW

56710 MW

Additional 40 000MW added to current capacity

Driven by long term demand forecast

Eskom position based on 4% growth electricity growth supporting 6% GDP growth

Eskom moderate position 2.3% electricity growth based GDP growth of 4%

56 710MW

77 960MW

Understand where the need for electricity is coming from

Increase in Loadfrom 2009 - 2018

East LondonEast London

Port ElizabethPort Elizabeth

DurbanDurban

BloemfonteinBloemfonteinUpingtonUpington

JohannesburgJohannesburg

PretoriaPretoria

PolokwanePolokwane

Cape TownCape Town

Match demand against supply

Heading Demand side management

South Africa energy efficiency strategy

A final energy demand reduction of 12% by 2015Power Generation - An interim target of 15% reduction in parasitic electrical usage is required by 2015Industry and Mining Sector – 15% by 2015Commercial and Public Building Sector - 15% by 2015Residential Sector – 10% by 2015Transport Sector – 9% by 2015

Eskom signed the National Business Initiative (NBI) Energy Efficiency Accord

Energy efficiency

Internal energy efficiency programme at Eskom operations

working together with our consumers to reduce their demand and thus reduce all emissions, including carbon emissions

Target over next six years –

3 000MW; and

Long-term (2026) - 8 000 MW

Demand side management targets

3 000MW by 2011

Additional 5 000MW by 2026

8 000MW in total by 2026

…basically a saving of over two of these…

HeadingEnergy opportunities and constraints

Wind - opportunities

Solar- opportunities

Areas of importance for biodiversity protection

So, with these available resources …Imported hydro Imported

hydroCoal

Solar

Wind

Wave & Current

Biomass

Uranium

Imported Gas

How choices are made regarding alternatives

BuildProvenconcepts

Research process (RD&D)

Portfolio strategy

Opportunity identification and screening

Pre-feasibility Feasibility and business case

Eskom’s decision-making criteria:

Technical (including lead time)Safety & healthEnvironmental (greenhouse gases, particulates, SOx, NOx, water, land)Economic (gross domestic product, fiscus)Other risks (delay, cost overruns, underperformance, liabilities)Cost and financial riskStrategic fit (market, partners, skills)Social (employment, households)Transmission impacts

South African Policy, Plans and Legislation

Environmental Screening

Environmental Impact

Assessment

Environmental Management

SystemStrategic Environmental

Assessment

… Eskom is looking at these projects

Projects: Renewables (1)

100 MW wind facility

Projects: Renewables (2)

100 MW concentrating solar

Projects: Research and demonstration Concentrating solar thermal,

100MW, Upington

Underground coal gasification - CCGT, Volksrust (Majuba Power Station) – first for Africa

PBMR, 165MW, Cape Town (Koeberg Power Station)

Sea current and wave

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Heading The future

Currently activities to further accelerate renewable energy

South African target = 10 000GWh cumulative energy delivered by 2013 (60% electricity)

Department of Minerals and Energy indicate that producers could generate more than 5 000 MW from renewable energy sources in South Africa

Department of Minerals and Energy had received more than 100 applications (based on call for an expression of interest) to supply renewable energy in South Africa

45% wind energy

34% biomass

8% small-scale hydro energy

Eskom’s would undertake the procurement process

Thank youDave LucasCorporate Specialist (Environmental Management)Eskom Holdings LimitedTel +27-11-800-4514Fax +27- 11-507-6398Cell +27-82-940-4517Email [email protected]

Megawatt Park, Maxwell Drive, Sunninghill, SandtonP .O. Box 1091, Johannesburg, 2000 South Africa

Eskom's Renewables Strategy

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