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DRAFT INTEGRATED ENERGY PLANNING REPORT

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Page 1: DRAFT INTEGRATED ENERGY PLANNING REPORT · DRAFT INTEGRATED ENERGY PLANNING REPORT. 18 DRAFT INTEGRATED ENERGY PLANNING REPORT 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10 20 30

DRAFT INTEGRATED ENERGY PLANNING REPORT

Page 2: DRAFT INTEGRATED ENERGY PLANNING REPORT · DRAFT INTEGRATED ENERGY PLANNING REPORT. 18 DRAFT INTEGRATED ENERGY PLANNING REPORT 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10 20 30

DRAFT IEP REPORT MODELLING RESULTS

Ms. Tshilidzi Ramuedzisi

Energy Planning: Chief Director

DRAFT INTEGRATED ENERGY PLANNING REPORT

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CONTENTS • PURPOSE OF MODELLING

– DOE objectives and indicators

• SUMMARY OF RESULTS

• OVERVIEW OF RESULTS

– Technologies

– System costs

– Emissions and water consumption

– Primary energy mix

DRAFT INTEGRATED ENERGY PLANNING REPORT 3

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PURPOSE OF MODELLING

DRAFT INTEGRATED ENERGY PLANNING REPORT 4

In the context of the following policy options:

• Emissions limits • Minimum renewable energy target • Carbon pricing

Quantify indicators for DoE objectives:

• Energy requirements and technology investments – Energy security and security of supply

• System costs – Affordability - minimise energy costs

• Carbon dioxide emissions and water consumption – Environmentally friendly energy supply

• Energy mix – Diversity - energy security

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Case Study

\

Objective

Base Case Emissions Limited Cases RE Target Carbon Tax Low Oil

Price

High Oil

Price Peak

Plateau

Decline

PPD + No

Nuclear

Energy and

technology Determine energy requirements and technology investments based on demand

Costs

Minimise and quantify

Externality

costs of

Carbon

emissions

included

Sensitivity

analysis of crude oil

prices

Emissions Quantify

Constrain emissions

Water Quantify

Energy Mix

Quantify

Specify

Minimum

RE target

5

PURPOSE OF MODELLING

DRAFT INTEGRATED ENERGY PLANNING REPORT

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Case Study

\

Objective

Base Case

Emissions Limited

Cases

RE Target Carbon Tax Low Oil

Price

High Oil

Price Peak

Plateau

Decline

PPD + No

Nuclear

Total discounted cost

R bn (2010) 2 484 2 701 2 705 2 570 2 644 1 779 2 977

Additional cost from

Base Case 8.8 % 8.9 % 3.5 % 6.4 % -28.4% 19.9%

Total emissions (Mt) 22 101 16 811 16 807 20 418 19833 22 393 22 425

Average annual CO2

emissions (Mt/a) 539 410 409 510 498 546 546

Total Water (Mt) 12 538 9 630 9 845 11 800 12 043 13 019 11 048

Total Primary Energy

(PJ) 289 912 249 197 249 359 282 741 262 348 292 907 297 956

Meets emissions

limits for electricity &

liquid fuels sectors

Meets RE target

SUMMARY OF RESULTS

6 DRAFT INTEGRATED ENERGY PLANNING REPORT

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High oil prices justify hybrid vehicles in medium term (based on ave vkm) High oil prices make other technologies and energy carriers viable

Electric vehicles significant share of fleet in all cases after 2035 Emissions limits remove new coal to liquids as an option

Case Study

\

Technology

Base Case

Emissions Limited

Cases

RE Target Carbon Tax Low Oil

Price

High Oil

Price Peak

Plateau

Decline

PPD + No

Nuclear

Electric vehicles

Hybrid vehicles Petroleum product

imports

High

<2020 High High

High

<2020

High

<2020 Low Medium

New refining capacity

New CTL

New GTL Notes Assumes crude oil and

natural gas prices are

not linked

7

TRANSPORT AND REFINING

DRAFT INTEGRATED ENERGY PLANNING REPORT

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Case Study

\

Share of energy mix

into generation

Base Case

Emissions Limited

Cases

RE Target Carbon Tax Low Oil

Price

High Oil

Price Peak

Plateau

Decline

PPD + No

Nuclear

2010

Coal 95.6% Nuclear 2.4% Hydro 2.0% Solar 0.0% Petroleum product 0.0%

2030

Coal 88.2% 88.8% 88.6% 70.9% 88.0% 88.1% 88.4% Hydro 3.1% 3.0% 3.0% 3.4% 3.1% 3.1% 3.1% Solar 2.7% 2.8% 2.9% 4.6% 2.9% 2.7% 2.8% Nuclear 1.9% 2.0% 2.0% 2.1% 1.9% 1.9% 1.9% Biomass 1.9% 2.0% 2.0% 13.5% 1.9% 1.9% 1.9% Petroleum product 1.3% 0.5% 0.5% 1.4% 1.3% 1.3% 1.0% Wind 0.9% 1.0% 1.0% 4.0% 0.9% 0.9% 0.9%

2050

Coal 95.0% 60.7% 60.7% 76.8% 74.1% 95.0% 95.1% Solar 3.6% 20.1% 29.4% 11.1% 9.4% 3.6% 3.6% Hydro 1.0% 1.6% 1.6% 1.2% 1.4% 1.0% 1.0% Petroleum product 0.3% 0.4% 0.4% 0.4% 0.4% 0.3% 0.2% Wind 0.0% 8.0% 8.0% 5.2% 6.8% 0.0% 0.0% Biomass 0.0% 0.0% 0.0% 5.3% 0.0% 0.0% 0.0% Nuclear 0.0% 9.2% 0.0% 0.0% 7.9% 0.0% 0.0%

CSP not constrained results in 40 GW

22GW likely limit - Solar Energy

Technology Roadmap

No determinations after 2030 allows more

coal

ELECTRICITY GENERATION

8 DRAFT INTEGRATED ENERGY PLANNING REPORT

RE target more effective in short term –

Carbon tax more effective in long term

Emissions limits most effective in long term

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Base Case EmissionsLimit

No Nuclear RE Target Carbon Tax Low Oil Price High Oil Price

GW

Generation Capacity 2010, 2030, 2050

gas

solar

other

DSM

pumped storage

hydro

petroleum

nuclear

biomass

wind

coal

DRAFT INTEGRATED ENERGY PLANNING REPORT 11

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Base Case EmissionsLimit

No Nuclear RE Target Carbon Tax Low Oil Price High Oil Price

GW

Generation Capacity 2010, 2030, 2050

gas

solar

other

DSM

pumped storage

hydro

petroleum

nuclear

biomass

wind

coal

CSP not constrained results in 40 GW

22GW likely limit - Solar Energy

Technology Roadmap

2010 and 2030 are similar for all cases

except RE target case mainly due to

determinations

2050 Base Case, Low Oil Price Case and

High Oil Price Case are similar – no

constraints or costs to emissions

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Base Case Emissions

Limit

PPD No

Nuclear

RE Target Carbon Tax Low Oil

Price

High Oil

Price

Component R'b

2010

% R'b

2010

% R'b

2010

% R'b

2010

% R'b

2010

% R'b

2010

% R'b

2010

%

Total 2484 100 2701 100 2705 100 2570 100 2644 100 1779 100 2977 100

Imports 1922 77.4 2187 81.0 2187 80.8 1922 74.8 1923 72.7 1209 68.0 2363 79.4

Extraction/

Production 208 8.4 188 7.0 188 7.0 187 7.3 197 7.4 207 11.6 207 7.0

Electricity

generation

infrastructure

189 7.6 199 7.4 203 7.5 297 11.5 310 11.7 189 10.6 189 6.3

Liquid fuels

production

infrastructure

129 5.2 92 3.4 92 3.4 129 5.0 179 6.8 138 7.8 183 6.2

Storage,

Transport and

Distribution

35 1.4 35 1.3 35 1.3 35 1.4 35 1.3 36 2.0 35 1.2

12

SYSTEM COSTS

DRAFT INTEGRATED ENERGY PLANNING REPORT

Additional costs due in part to carbon tax

Additional costs due mining of coal for CTL

Greater imports due to no CTL

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13

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Bill

ion

Ran

d (2

010)

Discounted costs

Base Case

High Oil Price

Low Oil Price

Emissions Limit

No Nuclear

Renewable Energy Target

Carbon Tax

Periods of

investment based

of retirement of

existing

infrastructure

All test cases within range

defined by low and high oil

price cases

DRAFT INTEGRATED ENERGY PLANNING REPORT

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14

Base Case Emissions

Limit

PPD No

Nuclear

RE Target Carbon

Tax

Low Oil

Price

High Oil

Price

Total Discounted Cost 2 484 2 701 2 705 2 570 2 644 1 779 2 977

Difference in cost

from Base Case (Rb) 218 222 87 160 -705 494

Difference in cost

from Base Case (%) 8.8% 8.9% 3.5% 6.4% -28.4% 19.9%

Model Period

Emissions 2010-2050

(Mt)

22 101 16 811 16 808 20 419 19 833 22 393 22 425

Difference in

emissions from Base

Case (Mt)

-5 290 -5 293 -1 682 -2 268 292 324

Average cost

difference per tCO2

from Base Case (R/t)

41 42 52 71 2 411

DRAFT INTEGRATED ENERGY PLANNING REPORT

EMISSIONS

Carbon Tax Case - prices all carbon including final consumption

Emissions limited cases - applied to electricity and liquid fuels production

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Mt

CO

2CO2 Emissions for Test Cases

Base Case

High Oil Price

Low Oil Price

Emissions Limit

No Nuclear

Renewable Energy Target

Carbon Tax

New CTL

Retirement

of old CTL Increasing

carbon tax

reduces

slope

Increasing min

RE levels slope

in medium term

Peak-plateau-decline

imposed on electricity and

liquid fuels production

Power station

retirements

DRAFT INTEGRATED ENERGY PLANNING REPORT

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Mt

Water use for Test Cases

Base Case

High Oil Price

Low Oil Price

Emissions Limit

No Nuclear

Renewable Energy Target

Carbon Tax

DRAFT INTEGRATED ENERGY PLANNING REPORT

Emissions limited cases

have lowest water

consumption

Base Case and Low Oil

Price Case have highest

water consumption

Water consumption is influenced by both

electricity generation and liquid fuels

production technologies

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PJPrimary Energy Use

Base Case

High Oil Price

Low Oil Price

Emissions Limit

No Nuclear

Renewable Energy Target

Carbon Tax

New CTL

Retirement

of old CTL

DRAFT INTEGRATED ENERGY PLANNING REPORT

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DRAFT INTEGRATED ENERGY PLANNING REPORT 18

0%

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Base Case Emissions Limit No Nuclear RE Target Carbon tax Low Oil Price High Oil Price

Primary Energy Use

Wind

Solar

Petroleum product

Nuclear

Biomass

Hydro

Gas

Crude

Coal

All cases have an increasing dependence on

imported petroleum products and decreased

dependence on coal

Increase in imported crude oil coincides with

new refining capacity

Increasing shares of solar and wind particularly

in emissions limited, RE target and carbon tax

cases

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DRAFT INTEGRATED ENERGY PLANNING REPORT 19

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Base Case Emissions Limit No Nuclear RE Target Carbon tax Low Oil Price High Oil Price

PJPrimary Energy Use

Wind

Solar

Petroleum product

Nuclear

Biomass

Hydro

Gas

Crude

Coal

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TJ/R

mEnergy Intensities for Test Cases

Base Case

High Oil Price

Low Oil Price

Emissions Limit

No Nuclear

Renewable Energy Target

Carbon Tax

DRAFT INTEGRATED ENERGY PLANNING REPORT

New CTL

Retirement

of old CTL

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THANK YOU

DRAFT INTEGRATED ENERGY PLANNING REPORT 21