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Grid Access Unit:

KZN Generation

Date: 2015-03-03

Other

1 %

Renewables

21 %

4 %

Peaking - OCGT8 %

Mid-merit Gas

3 %

Baseload - Import

5 %

Baseload - Nuclear

13 %

Baseload - Coal

46 %

The (policy-adjusted) IRP leads to a new 2030 capacity mix (national/ Energy Planning process)

40,996 MW

11,400 MW

4,109 MW

2,370 MW

7,330 MW

3,512 MW

18,925 MW

890 MW

1 %5%

6%0%

3%

4%

81%

• The forecasted peak demand will

grow from 38.9 to 62 GW by

2030. Total 81.3 GW of Gx

capacity is required by 2030

(revised IRP, 2013), growth

mostly from renewables

• DoE is driving the growth of RE

and other generation (e.g.

Procurement Programmes)

• DoE is also encouraging power

generation by other IPP means

(Wheeling, Self-Generation etc.)

Peaking – Pumped Storage, Hydro

2030

2010

Source: IRP2010 published in 2010 < www.doe-irp.co.za >

Existing Generation in KZN (connected)

Name Location Technology Size of

Generation

output to Grid

Contract Type

IPSA Within Newcastle

Municipality

Gas 11MW Eskom – Medium

Term Power

Purchase Contract

Sappi

Saiccor Co-

Gen

Umkomaas Biomass - By-

product from

Wood

5MW Eskom – Short

Term Power

Purchase Contract

Tongaat

Hulett Sugar

- Felixton

Empangeni Biomass –

Bagasse from

Sugar Cane

9MW Eskom – Wholesale

Electricity Purchase

Supply Contract

Tongaat

Hulett Sugar

- Amatikulu

Amatikulu Biomass –

Bagasse from

Sugar Cane

5MW Eskom – Wholesale

Electricity Purchase

Supply Contract

Umfolozi

Sugar Mill

Mtutatuba Biomass –

Bagasse from

Sugar Cane

4.5MW Eskom – Wholesale

Electricity Purchase

Supply Contract

Existing Generation (connected)

Name Location Technology Size of

Generation

output to Grid

Contract Type

Mooi Hydro Mooi River Small Hydro

(run of river)

0.4MW Eskom – Wholesale

Electricity Purchase

Supply Contract

Illovo Sugar

- Sezela

Sezela Biomass –

Bagasse from

Sugar Cane

5MW Eskom - Wheeling

Illovo Sugar

– Eston

Eston Biomass –

Bagasse from

Sugar Cane

2MW Eskom – Wholesale

Electricity Purchase

Supply Contract

TOTAL

(MW)

41.9MW

Generation in progress

Name Location Technology Size of

Generation

output to Grid

PPA

Navosynch(Approved REIPPP DOE Round 3)

Mkuze Biomass –Bagasse from Sugar Cane

16.5MW (Eskombudget quote accepted. Finalisation of PPA with DOE)

Department of Energy – Round 3. Date of connection : January 2017

Tongaat Hulett Sugar -Amatikulu

Amatikulu Biomass –Bagasse from Sugar Cane

100MW (In Eskom Budget quotation stage –pending

Biomass Cogenprogram from DOE)

Department of Energy –Cogeneration. Date of connection : June 2017

Avon Peaking 800MW station(Rating high)

Stanger -WithinKwadukuzaMunicipality

Diesel 800MW (in construction phase)

Department of Energy – Peaking Projects. Date of connection : April 2016

Inala Power Station Colenso Coal 350MW (withEskom for technical evaluation )

Department of Energy – Base Coal IPP Program. Date of connection : June 2019

Generation in progress … continued

Name Location Technology Size of

Generation

output to Grid

PPA

EAB Empangeni Wind 100MW (Pending environmental clearance)

Department of Energy – Round 5. Date of connection : July 2017

Keldoron Power Station Consortium

Ngagane Coal 300MW (withEskom for technical evaluation)

Department of Energy – Base Coal IPP Program. Date of connection : August 2019

Illovo Sugar Various sites (Eston, Dalton, Umzimkulu)

Biomass –Bagasse from Sugar Cane

50MW (Customer technical evaluation stage – pending

Biomass Cogenprogram from DOE)

Department of Energy –Cogeneration. Date of connection : June 2017

TOTAL 1716.50MW

Generation projects in SA (including Munics)

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BID ROUND EC FS GP KZN LIM NC NW WC TOTAL

REIPPP BID 1 5 1 2 15 1 4 28

REIPPP BID 2 6 2 7 4 19

REIPPP BID 3 2 1 5 1 1 10 1 21

TOTAL 13 4 5 1 3 32 1 9 68

BID ROUND EC FS GP KZN LIM NC NW WC TOTAL

REIPPP BID 1 485 64 58 689.73 7 132.59 1436.32

REIPPP BID 2 414.26 96.8 330.1 249.8 1090.96

REIPPP BID 3 197 75 18 16 60 1015 75 1456

TOTAL 1096.26 235.8 18 16 118 2034.83 7 457.39 3983.28

NUMBER OF PROJECTS PER PROVINCE

MW PER PROVINCE

Generation projects in SA (including Munics)

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TECHNOLOGY EC FS GP KZN LIM NC NW WC TOTAL

Biomass 16 16

CSP 400 400

Gas 18 18

Hydro 10 10

PV 75 235.8 118 959.83 7 133.8 1529.43

Wind 1021.26 665 323.59 2009.85

TOTAL 1096.26 235.8 18 16 118 2034.83 7 457.39 3983.28

TECHNOLOGY EC FS GP KZN LIM NC NW WC TOTAL

Biomass 10 10

CSP 0

Gas 0

Hydro 0

PV 75 124 58 650.93 7 45 959.93

Wind 405 75 91.59 571.59

TOTAL 480 124 0 0 68 725.93 7 136.59 1541.52

TOTAL MW OF TECHNOLOGY PER PROVINCE

TOTAL CONNECTED MW OF TECHNOLOGY PER PROVINCE

Small Scale Embedded Generation (SMG)

• The IRP 2010–30 (update) estimates that residential and commercial PV could reach 22.5GW by 2030 (and there are also other SMG technologies). This points to a significant gx potential.

• Some Munics are allowing connections in a controlled manner.

vs.

• There is also a view that the customer incentive to install SMG is not appropriate (e.g. the policy/industry uncertainty, cost and “red-tape” are not worth it).

• Utilities and network owners see benefits from SMGs often in opposing areas.

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Only recently has NERSA published a consultation paper on

proposed regulation; it highlights a multitude of challenges in this

area. DoE policy direction is not as clear as for large IPPs.

Eskom supports Small Scale Embedded Generation and sees a net-

benefit if this is managed appropriately.

SMG: some pegs in the ground

• SMGs are private, grid tied generation < 1MW.

• There are three distinct categories viz.

• Category 1: Medium voltage (greater than 1,000V, but less than 33,000V),

• Category 2: Low voltage (less than 1,000V) with dedicated MV/LV Eskom transformers, and

• Category 3: LV on shared LV networks.

• In June 2014, a SMG Steering Committee (SMG SC) was established by GCS Manco, and supported by EXCO Ops.

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SMG: some pegs in the ground (cont. ... )

• Eskom’s current stance:

• Technical options that are currently available for connection of Category 1 are expensive and not always practical.

• As there are no SABS standards for connection of Category 2 and 3 types, connections would compromise safety in Dx Operations.

• Eskom has not given formal permission for connection of any of category 2 or 3, unless part of the pilot testing phase (which are category 2) (28).

• Many customers are not aware of these issues and this market is being aggressively driven by suppliers/installers of these types of generation.

• A bill insert (customer pamphlet) for all metered customers was issued in October 2014. The strategy of which was to empower customers with required understanding of the environment and curtail “illegal” connections being done.

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SMG: some pegs in the ground (cont. ... )

• In summary:

• While a coherent national policy is not in place (which is also affecting many municipal distributors), Eskom needs to pro-actively complete the framework within current uncertainties.

• The Eskom Grid Access Unit (GAU) has been engaging with the AMEU, SALGA, also DoE and the NERSA, highlighting risks and the industry needs related to SMG, and has been facilitating progress within Eskom.

• These affect and have an impact on:

• Future loss of revenue to Eskom (direct connections, and via Munics)

• Increase in illegal connections (because of red-tape to connect legal SMGs, perceptions on Eskom’s cost to supply)

• Safety related incidents

• Compromised network integrity

• Disconnections will have negative reputational implications to Eskom

• Distributed generation benefits vs. large projects cause conflicts in Network planning.

• There are some current challenges within framework development.

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