Presentation to Cape Chamber of Commerce Energy and Climate Change ED: Kadri Nassiep - 15 April 2019 - Cape Chamber of ...
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Presentation to Cape Chamber of Commerce
Energy and Climate Change
ED: Kadri Nassiep
15 April 2019
Energy Security of Supply and Load-shedding
Impact Mitigation
The short – term system constraints provide the catalyst for the
longer-term realignment of the industry and its consequent
impact on energy security of supply in the Western Cape
2
Objectives of Clean Energy Roadmap for CoCT
2018
Low
carbon
Energy
Security
Resource
Efficiency
Revenue
Protection
Job
Creation
2020 (IDP 2017)
120 MW SSEG
100MW RE
300 MW Gas / Clean Energy
3
Cape Town Carbon Neutrality by 2050
C40 Climate Action Planning and C40 Deadline 2020:
SA Buildings Programmes Paris Agreement goals require
unprecedented collaboration
and urgent action.
Carbon neutrality
city wide
• Four South African cities – Cape Town, Johannesburg,
Carbon neutrality for all Tshwane and eThekwini – have made a bold commitment
new buildings
towards transformative climate action and are working towards
the same target: carbon neutrality for all new buildings by
2030 and city-wide carbon neutrality by 2050.
• Both programmes, under the C40 Deadline 2020 commitment,
were launched in 2018 and each includes support from C40
in the form of expert technical assistance (via SEA, C40 and
Ricardo Energy & Environment) and embedded specialist staff
members for 3 years.
Sustainability in changing Electricity environment
• National Supply constraints and load-shedding
• Breaking up of Eskom
• New generation technologies (PV and storage)
• Energy efficiency and alternate fuel sources (LPG, LNG, etc)
• Changing Grid (bi-directional energy flows, wheeling, smart technologies)
• New and developing business areas
• Changing business model and new transactional relationships within EGD
Other EGD Steenbras EGD Retail
Generation Hydro Services Customer
Pumped
Eskom Storage
Generation Eskom
Wires
Services
EGD Wires
Services
IPP Future
Generation Market
Electricity Operator
Traders Prosumer
6
Ramping up implementation of identified measures
3.00 Effective implementation
Embedded
Generation
Residential SWHs
2.50
Commercial EE
Residential EE
Programme Status
Large
Transport Large Scale LNG
Scale
modal
2.00 Mostly strategy shift Wind
Built Electric
Environment vehicles
1.50
Increased
vehicle
occupancy
1.00 Concept
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00
Low Carbon impact
False Bay High
Ecology Park (FBEP) Interns Workshop 25.8.14 7
Summary of interventions (current and planned)
Initiatives Short Term Medium Term Longer Term
(
Loadshedding as Implemented by the City
• Each stage of loadshedding requires the City to reduce its electricity demand
from Eskom by 5%
• This typically equates to 60MW per stage (time and day and weather
dependent)
• Consumers of Cape Town are divided into 16 distinct areas.
• Each area typically incudes a number of main substations
• Each area is switched off cyclically for a period of 2.5 hours.
• The “off-periods” of adjacent time shed areas overlaps by half an hour to
make up for “pick-up load”- short term increase in load of an area which soon
settles down
• The number of periods each area is switched off per day increases in direct
proportion to the load shed stage.
• This results in an increasing number of areas being switched off simultaneously
as the stage number increases
10
City of Cape Town Curtailment
• The City of Cape Town performs load-shedding by switching HV feeders to
main stations, as this can be done remotely. The curtailment programme can
therefore be implemented for very large customers that are supplied directly
at main station level.
• Most City customers, even if they are large power users, are embedded in the
network and cannot be excluded from load-shedding without the unintended
consequence of also excluding less essential customers, such as residential
customers that should remain on the load-shedding schedule.
• However, if large customers in an industrial or commercial area can
collaborate with each other and, as a group, achieve the required load
curtailment at the main station, then this programme can succeed for these
embedded customers.
• Must reduce load at the main station
– 10 % of normal main station load under stages 1 and 2
– 15 % of normal main station load under stage 3
– 20 % of normal main station load under stage 4
• Normal main station load is 25-50 MVA
Go to Insert > Header & Footer > Enter presentation name into footer field 11Process
• Curtailment area added to programme
• SMS sent to all participants at start and end of loadshedding
• Monitoring & Assessment
– Curtailment base load for the day calculated (daily, weekly, monthly
variation)
– Daily demand profile downloaded from SCADA
– Performance calculated and sent to participants
• If targets are not reached, removed from programme
Go to Insert > Header & Footer > Enter presentation name into footer field 13Extension of curtailment programme
• Currently 4 areas are in the programme
• Limited curtailment opportunity (could expand to 6)
• Limited resources to manage (3 technical staff)
• Enterprise and Investment Department to possibly assist to canvass customers
in identified areas
• Curtailment info to be added to City Website
• Decision Required: By Enterprise & Investment on their capacity to assist
• Timelines: Currently being implemented
141. Request for information
• To assess the types and extent of
innovative sustainable energy
initiatives and/or projects available
for implementation within the City of
Cape Town
• A Request for Information call will
be shortly issued by the City asking
inter alia for suggestions regarding
loadshedding mitigation
interventions which may not yet
have been identified by the City.
• Decision Required: None
• Time line: 2 months to advertise. If
advertising nationally timeline
extends to 6 months. Finalise To assess the types and extent of
submissions by end August 2019 innovative sustainable energy
initiatives and/or projects available
for implementation within the City of
Cape Town
152. What is PACE?
• Aims to promote consumer uptake of rooftop solar PV
• Financing mechanism that enables low-cost, long-term funding for energy
efficiency (EE), renewable energy (RE), water conservation and resilience
upgrades. City of Cape Town to focus on residential rooftop solar PV.
• City imposes a “special rate” (via a Special Ratings Area) on the property to
repay the Lenders (Commercial Banks, Development Finance Institutions,
Special Funds, Government Funds).
• City can choose to perform the core functions or outsource them to for/non-
profit partners or a combination thereof. In all cases, City has the core
responsibility of acting as the conduit for the finance i.e. collecting and
transferring the funds to the appointed PACE Entity who is responsible for
repaying the Lenders.
• Successfully implemented in the USA, Europe, Asia and Australia.
16- Day 1 savings
The PACE Model - Partial protection from Eskom
tariff hikes
- No upfront payment
- Smooth
procurement/registration
Property
Owner
- Accelerated PV uptake
- Economies of scale
- Streamlined
registration/authorisation
Contractors
PACE Municipality
Entity
- Customer retention
- Additional service to
customers
- Quality approved systems
- Future load mgt capabilities
- Secure lending (debt collecting
through rates)
- Debt linked to property not Lenders
person
- Long tenor of debt
173. Own Generation: 10 MW City-owned PV solar plant
• Requirements
– 20 Ha site
– Grid access – at 132 kV substation Typical medium-scale PV plant
– Adequate solar irradiation (business case)
– Basic Environmental Assessment (as compared to
full EIA) + 30 other permits
– R 100 – 120 million (R 100 m budgeted in 2020/21
and 2021/22 financial years)
– NERSA license
• Process
– Site finalization (Paardevlei)
– Zoning, permitting, grid access, geotech
– Specifications
– Design (Optimisation ito time of day, time of year,
tracking, efficiency, etc)
– Procurement
– Construction (PV & Grid)
– Commissioning
– Maintenance
• Advantages: Site access in discussion, Basic Assessment
is a 6 months process, shorter construction period,
budget is available, under 10MW might be easier to
get through permitting and licensing under expected
IRP
• Disadvantages: Relatively small, may provide lower
yieldNext Phase of expansion of rooftop PV on City Buildings
• Current contract to deliver 3 sites
over next 12 months 3
• Next phase: 60 sites have been • Total new installations
identified / shortlisted as potential
installation sites 698 kWp
156 kWp
• Consultant will be appointed to • Total kWp to be installed
assist with site selection and fatal • Proposed 1 150 MWh
flaw analysis Atlantis Bus
Depot • Total annual expected
• SEM to draw up specifications for solar energy yield
construction 185 kWp
1 140 tonnes
• SEM may opt to design the systems • Proposed
and issue to tender for Prestwich Bus • Potential annual CO2
construction Depot emissions
• The project is a multi-year one and 357 kWp R12 679 234
further site identification will be • Planned Financial
• Hillstar Water
done continuously by SEM Investment
& Sanitation
• Decision Required: Multiple Depot 25% decrease
procurement decisions
• Time line: Specs need to be in by end • Capital costs over time
April 2019 in order to start process in R1 382 040
July 2020 – June 2023 • Annual Energy purchase
savings
194. Wheeling
• Legal framework (including By-law provision) in place
• Wheeling Tariffs approved in 2018
• Wheeling rules under development (complex)
– Double charging of demand charges & contribution to rates (during
banking)
– Pricing issues of banked energy and supplier of last resort energy
• Input on Wheeling rules from interested parties
• Nersa approval of customer “fair discrimination” required in terms of City
Distribution License
• Pilot implementation to test rules
Wheeling Rules
Input on Rules
Nersa “approval”
Testing Phase
July August October December 2019
20Wheeling considerations
• Currently cost neutral
• Contribution to rates is fully recovered
• Expected to not be economically competitive at today’s technology prices
• May be no takers
• Should traders be incentivized
215. Purchasing directly from IPPs
• Legal Case underway
• Ekurhuleni and Nelson Mandela processes have stalled
• Engaging IPP office for support on a robust procurement process that will
ensure a credible programme
• Decision Required: Multiple
• Time line: unable to ascertain, critical elements dependent on external parties
22Innovative Financing
• Any residential/commercial building can use PACE for
energy/water/resilience upgrades. Initial pilot for residential rooftop PV, then
battery storage
23Next steps
• Internal stakeholder engagements continue:
Political:
Finance Legal Procurement Energy & CC
Mayor, Cllr
• Identify champions in each department: PACE working group
• MAYCO report #1: Go/No Go? [April 2019]
– Budget, timeframes, task list
• Detailed programme development
– PACE specialists, Finance, Legal, Admin
• MAYCO report #2: Go to tender for PACE entity? [Sept/Oct 2019]
• SLA / Tender development, Award & Procure
• Decision Required: For Mayco & CM & CFO to sign off on support of PACE
• Time line: 6-18 months from Mayco report 2 in October 2019
243. Own Generation: 10 MW City-owned PV solar plant
• Requirements
– 20 Ha site
– Grid access – at 132 kV substation Typical medium-scale PV plant
– Adequate solar irradiation (business case)
– Basic Environmental Assessment (as compared to
full EIA) + 30 other permits
– R 100 – 120 million (R 100 m budgeted in 2020/21
and 2021/22 financial years)
– NERSA license
• Process
– Site finalization (Paardevlei)
– Zoning, permitting, grid access, geotech
– Specifications
– Design (Optimisation ito time of day, time of year,
tracking, efficiency, etc)
– Procurement
– Construction (PV & Grid)
– Commissioning
– Maintenance
• Advantages: Site access in discussion, Basic Assessment
is a 6 months process, shorter construction period,
budget is available, under 10MW might be easier to
get through permitting and licensing under expected
IRP
• Disadvantages: Relatively small, may provide lower
yieldNext Phase of expansion of rooftop PV on City Buildings
• Current contract to deliver 3 sites
over next 12 months 3
• Next phase: 60 sites have been • Total new installations
identified / shortlisted as potential
installation sites 698 kWp
156 kWp
• Consultant will be appointed to • Total kWp to be installed
assist with site selection and fatal • Proposed 1 150 MWh
flaw analysis Atlantis Bus
Depot • Total annual expected
• SEM to draw up specifications for solar energy yield
construction 185 kWp
1 140 tonnes
• SEM may opt to design the systems • Proposed
and issue to tender for Prestwich Bus • Potential annual CO2
construction Depot emissions
• The project is a multi-year one and 357 kWp R12 679 234
further site identification will be • Planned Financial
• Hillstar Water
done continuously by SEM Investment
& Sanitation
• Decision Required: Multiple Depot 25% decrease
procurement decisions
• Time line: Specs need to be in by end • Capital costs over time
April 2019 in order to start process in R1 382 040
July 2020 – June 2023 • Annual Energy purchase
savings
264. Wheeling
• Legal framework (including By-law provision) in place
• Wheeling Tariffs approved in 2018
• Wheeling rules under development (complex)
– Double charging of demand charges & contribution to rates (during
banking)
– Pricing issues of banked energy and supplier of last resort energy
• Input on Wheeling rules from interested parties
• Nersa approval of customer “fair discrimination” required in terms of City
Distribution License
• Pilot implementation to test rules
Wheeling Rules
Input on Rules
Nersa “approval”
Testing Phase
July August October December 2019
27Wheeling considerations
• Currently cost neutral
• Contribution to rates is fully recovered
• Expected to not be economically competitive at today’s technology prices
• May be no takers
• Should traders be incentivized
285. Purchasing directly from IPPs
• Legal Case underway
• Ekurhuleni and Nelson Mandela processes have stalled
• Engaging IPP office for support on a robust procurement process that will
ensure a credible programme
• Decision Required: Multiple
• Time line: unable to ascertain, critical elements dependent on external parties
29Benefits of PACE
Removes financial barriers & creates a more competitive environment
• Accelerate uptake of RE
• Outsourcing green finance
• Standardised process
Benefit to City • Existing revenue collection model
• Credit enhancement: security for
investors
• No capital outlay
• Immediate savings
Benefit to • Longer term loan (20 yrs)
• Comprehensive financing
customers • Linked to property not your credit
• Increase in property value
Energy Achievements PM Forum 2018Low Income
Towards a Cape Town Carbon Neutral future – LowServices
Energy Income
Energy Services
Deadline 2020 Delivery
Delivery
• CCT, together with over 80 major cities around the world and the 3 biggest metros
in SA, have committed to developing and following a pathway to carbon
neutrality by 2050 to prevent catastrophic climate change
• This means by 2050: All of the activities that take place within our city (including all
those activities that take place in our city which result in emissions elsewhere) result
in zero carbon and other greenhouse gas emissions
What needs to be done?
• Power our city with renewable energy
• Ensure all buildings (homes and
businesses) are highly energy efficient
• Reduce our need to commute and to
travel, and do so without using fossil
fuels (petrol and diesel); public transport
prioritised
• Produce as little waste as possible, and
Source: Deadline 2020 – Focused Acceleration Report re-use any waste producedRamping up climate action ambition:
Collaboration, enabling and collective action
• The City however cannot tackle climate change, and in particular carbon
neutrality on its own. We will need to create the right conditions and an
enabling environment for others to come to the party, be they local businesses,
citizens, civil society groups, NGO’s, academia, sector development agencies
and provincial and national government. This will also require having a wider
spread through branding and awareness raising.
> 80 cities around
the worldRepositioning of APS as Integrated Energy Hub
DC Policy Review 33APS Site Map
34Integrated Energy Hub
35Solar PV
Solar PV Yield
0.66
MW/Hectare
1200MWh/year
1 Hectare
Go to Insert > Header & Footer > Enter presentation name into footer field 36Waste to Energy
Bisasar Landfill LFG
6x1 MW + 1x0.5 MW
3500-7000 tons per day
Organic fraction
about 35%
Go to Insert > Header & Footer > Enter presentation name into footer field 37Drivers for considering the site for an Integrated Energy Hub
Location, visibility and proximity to the various Universities in CT
Reuse turbines
Proximity to ARTS&WWTW (little space required)
Proximity to New
Available space Horizons AD- 70m across
tanks
Rail access – compressed natural gas
Independence from Eskom
Environmental “waiver”
Network access (Very large power transfer capacity)
Go to Insert > Header & Footer > Enter presentation name into footer field 42APS decommissioning
Primary purpose of decommissioning is to make safe the disused plant and to hand over facility to unlock commercial, social and strategic capital use of site.
Consultant appointment in place – Aurecon South Africa (Pty) Ltd. (June 2018)
Scope of project: –
•Stage 1 - Inception
•Stage 2 - Concept and Viability
•Stage 3 - Design Development
•Stage 4 - Documentation and Procurement
•Stage 5 - Decommissioning Contract Management
•Stage 6 – Close Out
Various engineering assessment services – Heritage specialist services – Environmental management services – Health monitoring services by AIA – Act as
the Employer’s agent in terms of OHS Act – Quantity surveyor services – Land surveyor services – Level 4 construction monitoring
Timeline:
•Stage 1 - Project Initiation, Inception and Project Plan (2 months) (Sept 2018)
•Stage 2 - Concept and Viability (15 months) (Nov 2019)
•Stage 3 - Design Development (8 months) (Nov 2019)
•Stage 4 - Documentation and Procurement (18 months) (May 2021)
•Stage 5 - Decommissioning Contract Management (18 months) (May 2022)
•Stage 6 - Project Close Out (1 month) (June 2022)
Go to Insert > Header & Footer > Enter presentation name into footer field 43THANK YOU | ENKOSI | DANKIE
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