Filetype Power Point PPTX | Posted on 05 Sep 2022 | 4 years ago
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275x Filetype PPTX File size 1.66 MB Source: busa.org.za
• MAIN OBJECTIVE:
Promote the Renewable Energy Sector in South Africa
Act as an umbrella body for industry associations
representing specific RE sectors
• GOALS :
to collectively remove barriers hindering Renewable Energy;
to provide expert resources to support Government in the
formulation & execution of energy policies;
to promote public and private sector coordination towards
cost optimisation of RE generation & localisation of the RE
industry;
to engage with other active SA organisations in the broader
fields of climate change mitigation/adaptation and
sustainable development
to liaise with local and international media regarding RE in
South Africa;
to promote excellence in RE and related areas of business
and to provide information to government, media and the
public on behalf of the industry.
- Confidential -
Introduction
>150 GW of new solar PV and wind added to the grid in 2017 globally
• Renewable energy is a new economic sector for South Africa
• Introduced by policy adjustment to IRP 2010 Global annual new capacity in GW/a
154
• Since 2012, renewable energy has been the largest 120 124
91 98
contributor to new generation capacity globally Solar PV 57 70
71 76 73
Wind 40
56 31
• In 2017 solar alone added more new power than coal, gas and nuclear 46 30 38 Total South African
33 7 17 power system
22 7 63 (approx. 45 GW)
17 51 54 56
combined 9 9 13 2 3 39 39 41 45 35
4 7 8 1 1 20 27
7 8 1 8 12 15
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
• Globally a massive disruptor to conventional fossil-fuel
Subsidies Cost competitive
based electricity systems
• In light of RE economics, 57 countries have drawn up plans to 3
decarbonize their electricity sectors completely and 179 have set
national or state renewable energy targets
• In India, declines in wind and solar prices have created $30-40 Billion
of stranded coal projects sitting with banks
• Since the introduction of REIPPP there has been a sharp
decline in solar and wind tariffs
• Rapid proliferation of SSEG
- Confidential -
Renewables:
South Africa
Provincial economic and socio economic 51
development at a glance
• REIPPP commenced in 2012 Commitments for bid windows 1, 2, 3, 3.5 , 4, 1S2 and 2S2 R 7.2 billion
R 366 million
• Projects adjudicated on combination of tariff (70%) and ED
R 615 million
commitments (30%)
3 121 job years
• 4 Rounds implemented
• 6 422MW procured from 112 IPPs R 5.9 billion R 840 million R 174 million 7 693 job years
R 3.6 billion R 284 million R 929 million 2 917 job years
• 3 776MW (62 IPP projects) connected to grid
R 134.1 billion
R 1.5 billion R 196 million R 133 million 2 709 job years
• R 259 Billion of equity and debt raised across the 4 rounds Limpopo
R 13 157 million
3
projects
• SA ownership @ 48% R 18 348 million Mpumalanga
North West Gauteng 2
R 0.3 billion
68 041 job years 6 1 project
• Black ownership (31%) including community ownership projects
project
R 29 million
Northern Cape Free State
59 9 KwaZulu Natal
• 36 528 job years created for South African citizens projects projects R 26 million
1
Western Cape Eastern Cape project
14 17 246 job years
• Local content spend across 4 rounds = R 67,1 Billion projects projects
• SED spend of R640,3 million; ED spend of R204,6 Million R 14.4 billion R 33.8 billion
R 1.1 billion R 78 million R 55 million 336 job years
(June 2018) R 1 109 million R 4 500 million
R 1 636 million R 7 434 million
11 067 job years 18 137 job years
IPPPP Overview | June 2018
- Confidential -
Source: IPPPP Overview (as at 30 June 2018), IPP Office
Renewables role in
assisting in equitable
growth
Contributor Comment
Energy security (short term) • Shortfalls due to Eskom operational, environmental and financial challenges indicate load shedding
will be a reality for the SA economy over the next 5 years
• Renewables have the shortest deployment time (12-24 months construction time: SSEG even
shorter)
• Wind and solar PV have the lowest tariffs
• Distributed RE deployment mitigates against bad maintenance and primary energy shortages
Industrialization • REIPPP saw a number of specialized manufacturers (solar, wind, inverters etc.) open production
plants to meet local content requirements. Delays in closing R4 has caused large scale closure and
transfer of production to elsewhere in the world
• Policy certainty about the role of renewables in South Africa’s electricity mix will see production
return
• Facilitator of new energy sectors
• Battery storage
• “Green” hydrogen and ammonia (in tandem with natural gas)
Just energy transition • Renewable energy can be deployed across the entire country
• Spatial deployment with designated areas that require socioeconomic upliftment
• Industry has proposed a plan to use the concentrated deployment renewable energy in declining
coal and gold mining areas to contribute with other stakeholder to a just energy transition.
- Confidential -
Job and
investment
potential
Currently the roll out of utility scale renewable energy is determined by DOE via the IRP and ERA.
•
• Draft IRP 2018 only anticipates new wind and solar procurement in 2024
• Government needs to make strategic decisions to provide short term support for a sector that will become a
mainstream electricity generation source post-2025 if South Africa wants industrialization benefits
• >1 Million megawatts of wind and solar will be deployed globally before DOE awards the next RE MW in South Africa
• Cost of earlier deployment of renewable energy maybe a deviation from least cost worth paying
• The industry has requested policy adjustments (1.5GW of wind and solar per annum) to increase capacities
and bring forward solar and wind allocations in the final gazette IRP
Cumulative job creation Cumulative investment
5 year (2025) 10 year (2030) 5 year (2025) 10 year (2030)
IRP 2018 scenario 100 000 372 000 IRP 2018 scenario R57 billion R220 Billion
PA scenario 350 000 643 000 PA scenario R262,5 Billion R577,5 Billion
- Confidential -
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