energy research priorities for a future south africa km nassiep chief executive officer sa national...
TRANSCRIPT
Energy Research Priorities for a Future South Africa
KM Nassiep
Chief Executive Officer
SA National Energy Research Institute
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Contents
About SANERI
Energy Sector Characteristics
Policy and Legislative Framework in SA
Energy R&D Priorities
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The time to act has come and ….
“We are not starting to address climate change with the technology we have in hand, and we are not accelerating our investment in energy technology research and development,”
Prof John Holdren (Harvard University Professor, Director of WHRC, President of AAAS)
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Background to SANERI establishment
Established in response to concerns from government regarding perceived threat to indigenous energy research capacity
Established under Ministerial Directive (Minister of Minerals and Energy) in October 2004
Reports to both Ministries of Minerals and Energy & Science and Technology in terms of governance
Is directed by the objectives of the Draft National Energy R&D Strategy of South Africa (10th Order Draft, 2007)
Has mandate to conduct own research or solicit work from external parties
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CEF Group Structure
Minister of Minerals & Energy
CEF Board of Directors
Chairman
CEF (Pty) LtdCEO
Wholly incorporated divisionse.g. NEEA, EDC
Part Shareholding
Funds
Wholly owned Subsidiaries, includingSANERI (Pty) Ltd
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SANERI is 100% state funded at present, receiving grants via the Department of Science and Technology
A total of R70 million has been transferred to SANERI from government, since 2004/5
An amount of R42 million has been made available in 2007/8 for activities related to:
Flagship project developmentChairs of Energy Research ProgrammeBursary Support ProgrammeEstablishment costs
SANERI mandated to leverage additional funds through grants, royalty income and through collaborative projects
State Funding of SANERI
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SANERI Key Objectives
Ensure long term health of energy research capacity in the country and assist in stimulating a culture of innovation in the energy research environment
Support government goals of energy security of supply through identifying viable and sustainable diversified energy supply options
Address deficiencies in current race, gender and age profile of postgraduate students, academia and scientists
Stimulate socio-economic upliftment through improved access to modern, clean and affordable energy services
Support economic growth through development of flagship projects that will ultimately result in commercial rollout
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Key Challenges Faced by SANERI
Low PIER&D spend in SA – about 0.8% of GDP is spent on R&D, of which about 6% is Energy
Low contribution from Black scientists – measured in publications where about 8% is produced from Black Scientists
Percentage women in energy R&D sector is low, about 26.5% in 2004, which is well below equity targets of government
Challenge of meeting national development goals with consequent increase in demand of natural resources and energy
Access to modern, clean and affordable energy remains a challenge for about 30% of South Africans
Skills loss in Energy R&D sector, particularly Eskom Research
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SA energy contribution to overall publications
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Number of energy publications by year
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Top Research institutions by publishing
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SA in the international Context
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Findings
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Human Capital status
Identified 19 core researchers; 30 tail and 540 post-graduate students (2000-2007)
Core: 84% male, 63% white; 79% PhD; median age 49
Tail: 84% male; 79% white; 85% PhD; median age 43
Post grads: 81% male; 62% white; 23% PhD
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Thematic Areas addressed by SANERI (proposed)
9 thematic areas identified as areas of focus for energy R&D
Energy infrastructure optimisationEnergy Efficiency and DSMUnderstanding the impact of energy use on the environmentStimulating socio-economic development through the productive use of energyCleaner fossil fuels, including clean coal technologyRenewable energyAlternative energy, including hydrogen economy and fuel cellsEnergy planning and modelling andEnergy policy research
These areas are covered in the Draft National Energy R&D Strategy (10th Order Draft, 2007)
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SANERI Role in context
The DMEImplementation
Strategies /Legislation
SOEs PrivateSector
Universities
Policy / PlanningR&D Activities
Com
mer
cial
Contract R
&D
Human Capital Development
Contract
R&D
Research C
hairs
Bursaries
Regulatory
NERSA
All Spheres ofGovernment
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SANERI Collaboration Focus
Universities, Technical Universities, Research Chairs, Hubs, CoE, CoC
SOEs & Pvt Sector (e.g Eskom ERID, Sasol, Anglo, etc)
International R&D Agencies, donors, governments
Legend
CR – Contract ResearchJFP – Jointly Funded ProjectsDFP – Donor Funded ProjectsNL – Jointly Funded National LaboratoriesPRP – Postgraduate Research ProgrammesSFCB - SANERI Funded Capacity BuildingJFCB - Jointly Funded Capacity Building
SANERI In-house
R&D Activity
JFP
CR
DFP
NL
JFP
NL
PRP
SFCB
SFCB
JFCB
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Key Strategic Focus Areas
Energy R&D Agenda
Human Capital Development and TransformationEnergy Research Chairs at UniversitiesRenewable Energy and Sustainable Energy Hub at the University of StellenboschBursary Support Programme
Cooperative Energy R&D ActivitiesFlagship projects
Clean Energy SolutionsAdvanced Fossil Fuel UseEnd Use and Infrastructure ManagementEnergy Policy and Planning (R&D)
Governance
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Energy economy dominated by energy intensive industry and synthetic fuel production - energy intensive industries, largely coal dependent
Cheap coal + high efficiency steam coal-based generation + amortised plants = lowest cost electricity in the world (powerful disincentive for market conditions supporting RE)
No major investment needed in new power generation or refining capacity in last 20 years
Limited market exists for natural gas (mainly imported from Mozambique) although offshore discoveries are sustaining national oil and gas company’s synfuel and chemicals plant
Apartheid left majority of citizens without electricity
Large electrification drive to attain universal access to energy
Remote communities too expensive to electrify – But….
Photovoltaic (SHS) programme - largely unsuccessful (no thermal energy and high maintenance)
Paraffin – unacceptable deaths, injuries and damage to property
Characteristics of Energy Sector
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Electricity Capacity Outlook
Source: Eskom ISEP, 2006
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Build1000
800
1775
165
Feasibility, Business
Case, Contract
Concluding
Pre-feasibility
ResearchOpportunity
Identification
PBMR
Delta
1128
Grootvlei
1520
Camden
300 Arnot P1&P2
November
600
Juliett
Oscar
6000
Mike
1000
Lima
3600
1000
Romeo
1600
Sierra
1050
OCGT
1600
*Papa
1300
Kilo
Bravo
961
KomatiUCG
17375 MW 7800 MW 23100 MW
1050
Quebec
800
Tango90
112
4000Concentrating Solar
100
Version CPF 1.3.16 Date: 30/08/2006
- Coal
W - Hydro
- Nuclear
- Gas
- Coal- Coal
- Hydro
- Nuclear
- Gas
- Coal
Solar- Transmission-
Whiskey
500
Songo ApolloHVDC Link Capacity Upgrade
* Possible 2400MW Mid Merit
Trans KalahariInterconnector
0
0
Discard Coal
0
New Coal Supply
0
90
9
90
Gas 1
1800
Uniform
1200
Victor
Rainbow Millenium
2000
Nuclear 1
1775
3500
Zulu
* Brown outer circle indicates – out of Borders project
2100
Echo
Charlie872
1000
4200
500
Yankee
800
2100Alpha
Hotel 1332
4200
Foxtrot 4200
500
1800
Golf
1050
200
Hwange
India
600
0
CBM
Future Supply Options
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Major energy related priorities
– Universal access to energy by 2012– Energy security of supply
Liquid Fuels Master Plan approved by Cabinet in August 2007Electricity Master Plan under development
Deputy President leading the programme of fastracking economic growth through several strategic projects
– Accelerated and Shared Growth Initiative of SA (ASGI-SA 2005) – Ties in to Government’s Plan of Action to improve service delivery– Energy related strategic projects selected include
Accelerated electrificationBiofuels industry developmentBeneficiation of raw minerals and materials
National Government Objectives
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Energy Policies of SA
White Paper on Energy in SA (1998)
White Paper identified the following objectives:Increasing access to affordable energy services;Improving energy governance;Stimulating economic development;Managing energy-related environmental and health aspects; and Securing supply through diversity (including renewables)
White Paper on Renewable Energy (2003)
Approved by Cabinet in November 2003Follows on the direction set by the Energy White Paper (1998)White Paper calls for:
real, measurable increase in renewable energy use, based on prescribed targetCalls for strategies to be developed to promote specific areas where RE could be developedPolicy aimed to create an enabling environment for renewable energy, setting a platform for industry development.
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Electricity Regulation Act (No. 4 of 2006, became operational 1 August 2006)
Objects of the Act:(d) facilitate universal access to electricity;(e) promote the use of diverse energy sources and energy efficiency;(f) promote competitiveness and customer and end user choice;
Regulator regulates prices and tariffsThe Regulator may make any licence subject to:
conditions relating to the setting and approval of prices, charges, rates and tariffs charged by licensees; compliance with energy efficiency standards and requirements, including demand-side management
A transmission or distribution licensee must, to the extent provided for in the licence, provide non-discriminatory access to the transmission and distribution power systems to third parties.
The Minister may, by notice in the Gazette, make regulations regarding:(m) new generation capacity;(n) the types of energy sources from which electricity must be generated;(0) the percentages of electricity that must be generated from different energy sources; (p) the participation of the private sector in new generation activities;
Legal and Regulatory Framework
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SANERI role in electricity sector
Research and develop technology-based solutions that support grid stability and diversification of energy supply
Develop human capital that supports project implementation in this sector
Support national development objectives by identifying income-generating opportunities that tie in with electricity provision
Support national goals of energy efficiency by supporting local government in implementation of sound projects, in conjunction with the National Energy Efficiency Agency
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Research Vision for the electricity industry
Stabilise Markets
Protect the Environment
Provide for Public good
Educate and empower the Consumer
Unleash Innovation
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Energy Sector Challenges
Regulatory challenges and competition
Unbundling value chains (Electricity)
Consolidation (merges, acquisitions)
Environmental concerns
Increasing energy requirements
Large demand increases (Asian glut)
Diminishing surplus supply capacity
The need to secure alternative renewable resources
Energy security
Increasing pressure on margins
Increasing production cost
Skills shortage
Equipment supply and lead times
Ageing infrastructure due to limited capital for re-investment
Increasing importance of innovation and technology
Increased use of technology to reduce costs and improve reliability
Convergence of technology (IT and telecommunications)
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Current Status of Grid-connected RE
Slow uptake of renewable energy – based on current market conditions
Limited CDM project development, limited PIER&D expenditure on renewable energy
Focus placed squarely on top-up feed-in tariff as only realistic incentive for investors
Department of Minerals and Energy and National Treasury are studying implications of introducing the feed-in tariff and expect decision by April 2008
Eskom to consider competitive bids for renewable energy as part of new supply options
Eskom to construct at least 2 large-scale renewable energy plants as part of their own build programme
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Status Quo of Strategy (Biofuels)
An Industrial Development Strategy has been developed and submitted to Cabinet
Government in the process of soliciting input from stakeholders to refine strategy
Strategy calls for 4.5% contribution by biofuels to petrol and diesel supply
Debate over whether food crops such as maize, sugar-cane and soya should be used for biofuels
Research programmes underway to investigate use of japtropha, algae and other plant types for biodiesel production
Research underway into enhancing cellulosic extraction of ethanol for bioethanol
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Energy R&D Priorities
Grid-connected Technologies
Resource assessments (ongoing)Pilot and Demonstration projectsPotential for local design and manufacture of components, e.g.
heliostats for CSPPotential for development of low-wind speed turbinesPotential for development of advanced hybrid mini-grid technologyDevelopment and testing of local, high quality solar water heatersIntegrate RE into building design, beyond passive solar design
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Energy R&D Priorities
Non-grid electrification
Refinement of model for hybrid mini-grid deployment
Investigation into possible use of fuel cells to provide more sustainable energy supply to remote communities
Ongoing development of PV, small wind turbines, biomass digesters and gasification projects
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Energy Efficiency: Vision
To encourage sustainable energy sector development and energy use through efficient practices thereby minimising the undesirable impacts of energy usage upon health and the environment, and contributing towards secure and affordable energy for all (DME).
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Research Focus Areas: Energy Efficiency
Applying the 80/20 principle
Criteria
– Value added
– Technology breakthrough
– Social, environmental
Focus areas that are going to make the biggest difference in the short term (1-3 years)
Water heating
Compressed air
Pumping
Minimizing electricity transmission and distribution
Steel industry
Commercial lighting
Solar Traffic lighting
Solar street lighting
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Research Focus Major focus is on :
Sustainability (economic, social and environmental)
Carbon capture and storage ( oil and gas and electricity)
EmissionsEnergy security
Alternative fuel sources (solar, gas, batteries)
Support the development of the hydrogen economy
Planning for capacity expansion (what, when, how)
New technologies to deal with capacity expansion (choices)Optimisation
Asset management (oil and gas and electricity sectors) – increasing the life-cycle of existing assets, efficiency and reliability
Electricity sector network/ substation automation
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Medium to long term focus: Electricity
Reviewing generation options
Increasing transmission capacity
Superconductors (conductors, transformers)
Improving power quality and reliability
Understanding service level requirements
Planning for reliability
Transformer research
Increasing robustness, resilience and security of supply
Exploiting energy storage
Transforming markets
Creating infrastructure for a digital society
Electricity transportation
Technology innovation
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Superconductor Research Applications
Underground power transmission
HTS underground power transmission cables will carry electricity from the utility stations to transformer substations.
Since the cables are composed of superconducting wire there is very little loss of electricity.
This transmission cable can carry 3-5 times the current of conventional power cables.
This capacity will be great value in places where new rights of way are restricted.
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Superconductor Research Applications
High temperature superconducting transformers
Offer utilities and industry a highly efficient, lightweight compact and environmentally friendly alternative to today’s oil filled transformers
Fault current limiter (FCL)
Can protect power transmission, cable and operating equipment from surges of excess electricity caused by lightning strikes, short circuits and power fluctuations.
The HTS coils in the FCL control the high current burst just long enough for the circuit breaker to open.
Generator coils
The coils will be used in high efficiency low cost generators for electric utilities
Thank You
We would like to take the opportunity to invite all members of the AMEU to join us in the effort to affect a change to a
sustainable energy future