Event Presentation - Southern Africa Solar Thermal and Electricity

CSP Today South Africa 2015
14 April 2015
WWW.SASTELA.ORG
”Promoting the CSP Industry in Southern Africa”
WELCOME to CSP Today South Africa 2015
Cape Town
Technical site assessment:
X Poor DNI
X Grid access concerns
X I&AP objections
X Avian interaction possible
√ At least the site is flat...
WWW.SASTELA.ORG
”Promoting the CSP Industry in Southern Africa”
SASTELA – Introduction
! The Southern Africa Solar Thermal and Electricity Association (SASTELA)
represents industry involved with electricity and heat generation using solar
concentrating systems.
! Established in 2010.
! Founding members: Exxaro Resources, DBSA, IDC,
Siemens, Areva Solar and Emvelo.
! The Association currrently comprises 16 world leading
engineering, construction and CSP companies.
! Founding member of the World Solar Thermal
Electricity Association (STELA-World) and member of the
South African Renewable Energy Council (SAREC).
WWW.SASTELA.ORG
”Promoting the CSP Industry in Southern Africa”
SASTELA’s – Objectives
! Promote the roll out of CSP Power Stations for the production of sustainable peak,
mid merit (shoulder) and baseload solar thermal electricity in Southern Africa.
! Promote CSP in Southern Africa at policy and administrative levels (local, national,
regional & international) aimed at harnessing Africa’s vast Solar Thermal Fuel (Direct Normal Irradiation (DNI)
! Promote the manufacture and industrialisation of CSP components in Southern
Africa and to explore the ”airbus model”, where SADC countries can manufacture
different CSP components for Solar Thermal Power Stations.
Source: WRI, JUICE CONCENTRATE
WWW.SASTELA.ORG
”Promoting the CSP Industry in Southern Africa”
Status of CSP in South Africa
Operation
Construction
Pre-construction Financing
100MW
Kaxu Solar One
50MW
Khi Solar One
100MW
Ilanga CSP 1
! 600MW CSP selected over a 4 year
50MW
Bokpoort CSP
Project
period since 2011.
! More than 4100MW of RE in total
100MW
Redstone Solar
Thermal Power
Project
100MW
Kathu Solar Park
100MW
Xina Solar One
selected as Preferred Bidders in the DOE
programme.
100MW
200MW
100MW
200MW
! CSP < 15% of allocation.
! CSP is ready for its next phase.
WWW.SASTELA.ORG
”Promoting the CSP Industry in Southern Africa”
Role of CSP
! OCGT (diesel/gas)
! Hydro
! Pumped storage
Coal & Nuclear
CSP IPP programme
! CSP is a renewable / conventional hybrid.
! It is dispatchable. Lowest LEC found with a significant storage volume.
! CSP is scaleable and can provide large power generation units
! It can operate at any point on the supply curve. However, the best value can be
obtained when viewed as an Integrated Generation Option, providing both baseload
and peak power at a large scale.
Source: WRI, JUICE CONCENTRATE
WWW.SASTELA.ORG
”Promoting the CSP Industry in Southern Africa”
CSP comparison with alternatives
Generation cost - new, greenfield
units
Low price (c/kWh) High price (c/kWh)
Ref:
Baseload
Coal*
Nuclear*
CSP (R3.5)
Peak
Technology
OCGT (diesel)**
CSP (R3.5)
0.77
0.91
•
1.72
1.47
1.46
•
3
5
3.942
∗ Worl d Energy Counci l - Worl d Energy Pers pecti ve (2013)
•
Pri ced i n Aus , UK and USA
**EcoPower Afri ca
!
Values in the table, for coal and nuclear, are unajusted at R10=US$1, as per 2013
when report was issued.
!
Comparing the Round 3.5 CSP tariff with LEC numbers for other conventional
technologies (coal, nuclear) shows that CSP is cost competitive with conventional
options, if CSP is viewed as an Integrated Generation Option (IOP) – providing both
Baseload and Peak electricity.
WWW.SASTELA.ORG
”Promoting the CSP Industry in Southern Africa”
CSP considerations
! Leveling the playing field between CSP and conventional options by increasing the
plant size (above 100 MW) and lengthening the PPA term (similar to the proposed
terms for the coal IPP program, i.e 30 years) will result in the further reduction of CSP
tariffs.
! CSP has the potential for large scale manufacturing, industrialisation and
localisation. Increased commitment to CSP as an Integrated Generation Option will
enable government to meet the objectives of IPAP and the Black Industrialisation Policy
and could contribute immensely to the goverment’s war room driven 5 Point Plan.
! CSP plants are modular and can be constructed within a period of 24-36 months. This will
allow South Africa to introduce much needed baseload and peak power into the grid
within a short space of time. Four providers, constructing 300MW each, delivers 1200MW
within 3 to 4 years. There should be consideration for awarding multiple projects to
Bidders.
WWW.SASTELA.ORG
”Promoting the CSP Industry in Southern Africa”
Future in South Africa
! Government has shown significant commitment to diversifying the country’s supply
through Four Rounds of the RE IPP programme. This is a clear commitment to the future
and we expect the IPP programme to continue. What the industry does, however, need is
the programme schedule going forward, to enable planning and development.
! Given decreases in the cost of CSP, the potential to obtain further cost reductions and the
contribution that CSP could make as an Integrated Generation Option, we expect the
allocation to CSP to increase in the future, compared with earlier rounds in the
programme.
! Several sites are being developed by the major CSP players, totalling thousands of
potential MW.
! Ability to connect to the Eskom Tx network is a contraint. The 2015-2024 TDP contains
the expansion of the network around Upington and includes the proposed solar park, but
does not support development in other areas.
WWW.SASTELA.ORG
”Promoting the CSP Industry in Southern Africa”
Regional potential
! The Southern African region has an excellent solar
resource.
! Both Namibia and Botswana require new power
generation and represent attractive investment
environments.
! Given the decrease in CSP cost and its dispatchable
nature, CSP can be a real option for both countries.
! Given the relatively small
generation base, uptake
will not be at the scale of
the SA DoE RE IPP
programme, however,
projects are possible within
the near term.
WWW.SASTELA.ORG
Fig 29 – ECB Namibia
”Promoting the CSP Industry in Southern Africa”