kevin minkoff edf renewables - windaba
TRANSCRIPT
Grid Access & New Business Models for RPPsKevin Minkoff -- Windaba
7 November 2018
2
SUMMARY
1. EDF EN Group Overview
2. Connection Charges
3. New Business Models for RPPs
3
1. EDF EN Group Overview
An expertise in multiple segments An international footprint
South African Activities
224,000
countries
employees
25 employees107 MW
34 MW
PE and Cape Townoffices
under construction
GENERATION ACTIVITY
Developed, built and operational
Wind energyOnshore & offshore
Solar energyPV
Other segments+ Energy storage+ Marine energy+ Biomas/biogas
11.8 GW
Global Installed
CapacityCOUNTRY PRESENCE
10 yearsEstd. 2008 in South Africa
4
2. Connection Charges
Current Philosophy
• Connection charge (shared assets)
= R/kVA charge * project MEC
• R/kVA charge = [Cost of shared assets] /
[installed capacity of equipment]
• All connections considered « equally »
*Eskom graphic
5
2. Connection Charges
Current Philosophy
• No consideration for:
• Project location
• Existing minimum load
• Existing equipment (where no upgrade required)
• Opportunity to optimise generators’ location on network by
incentivising projects that:
• Reduce network losses (by reducing load)
• Improve network stability
• Delay or avoid need for network upgrades
• Can connect faster (by using existing infrastructure)
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3. New Business Models
for RPPs
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3. Business Models for RPPs
Centralised – Single Buyer
kWh
$$
• E.g.: REIPPP
• Pros:• Bankable• Low IPP risk• Lowest tariffs
• Cons:• Central procurement• Possible conflict
(utility = buyer)
IPP OFFTAKERSUTILITY
kWh
$$
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3. Business Models for RPPs
Distributed – Captive
kWh kWh
$$ $$
IPP OFFTAKER UTILITY
(optional)
• E.g.: Rooftop, mines…
• Pros:• Easy / quick to deploy• No network charges• Enabling legislation
• Cons:• Site limitations• High offtake risk• Higher LCOE• Difficult to regulate• No network charges
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3. Business Models for RPPs
Distributed – Wheeled
kWh
$$
IPP OFFTAKERUTILITY
kWh
$
• E.g.: Google datacenters
• Pros:• Low LCOE• PPAs don’t sit with utility• Tolling fee for utility
• Cons:• Network charges• Regulatory framework
lacking
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3. Business Models for RPPs
Distributed – Wheeled: US Market Growth
Over ¾ of thesedeals concernWind Farms
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3. Business Models for RPPs
Summary
Single Buyer* Captive Wheeled
Rapidity to deploy
Utility connection
Network charges
LCOE
Wind compatible
Regulatory status
Risk to IPP
Risk to Utility
*Utility / Eskom« REIPPP » « Embedded Generation »
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3. Business Models for RPPs
Conclusion
• Different models serve different purposes and technologies
• Diversity = risk management
• Wheeling = risk shifted from utility to the IPP / C&I offtaker
• Need to update regulatory framework to ensure wind isn’t excluded
from IRP embedded generation allocations (200MW / annum)
• Grid codes / rules need to align with RE policy objectives
Thank You