reliable. It is here that Energy Storage provide a multitude of solutions to enable the smooth transition towards grid modernisation.

Transcription

1 Eskom Outgoing Group Executive: Generation / Risk & Sustainability (Acting), Mr Thava Govender SA Energy Storage, Smart Grid & SSEG 2018 Conference 23 October 2018 Programme director Executives from business Industry associates International associates Members from academic institutions Researchers Members of the media Distinguished guests Ladies and gentlemen Good morning Yesterday was the 22 nd of October, which marked the anniversary of discoveries that have not only given birth the use of electricity but revolutionised the electricity industry. On this day in 1879, American inventor Thomas Edison perfected the first commercial incandescent light bulb. Forty-eight years later, in 1927, Serbian scientist and inventor Nikola Tesla invented single-phase electric power, which ushered in the second industrial revolution. Mechanised industrial processes were replaced with electrically driven machinery that enabled mass production and ultimately the global economic boom. 1

2 Both these inventions were technological disruptors of their time, much like the advent of technologies such as Energy Storage, Small Scale Embedded Generation (SSEG) and Smart Grid Solutions are set to fundamentally transform the electricity landscape of today. One of the big challenges that we face today is making this invisible product called electricity visible. Once visible electricity can be better directed and optimise for the betterment of all. Energy storage offers the means to do that make electricity visible. It is therefore fitting that almost a century later we again gather on this remarkable day to participate in the South African Energy Storage, Smart Grid & SSEG 2018 Conference. Allow me then to take this opportunity to thank Mr Chris Yelland and EE Publishers for hosting this conference and giving industry the opportunity to have strategic conversations on the technological advancements that are set to reshape our industry. The recently released draft Integrated Resource Plan estimates a generation mix of approximately 20% renewables by 2030, thereby confirming that the South African electricity grid, like many others around the world, will continue to incorporate electricity produced from intermittent and variable energy sources. The proposed 2030 energy mix increases the need for enhanced grid management mechanisms, technologies and revised grid operating philosophies, to ensure the South African grid is sufficiently flexible, robust and 2

3 reliable. It is here that Energy Storage provide a multitude of solutions to enable the smooth transition towards grid modernisation. Energy Storage solutions provide utility owners with the capability to, amongst other, implement bulk energy services in the form of load shifting, back-up and reserve capacity. It also allows for grid related ancillary services such as voltage support and frequency regulation as well as, grid strengthening and capital deferment. Eskom, recognises that the future grid will incorporate energy storage in significant quantities. In this regard, we are involved in notable energy storage initiatives amongst these are the roll-out of 1440 MWh installed battery capacity within the Eskom Distribution network as part of a World Bank funded initiative and the 1MW Battery Storage Testing facility, the first of its kind on the African continent, situated at our Research, Testing & Development facility in the South of Johannesburg. The facility has the capability to test a range of storage technologies rangings from mechanical storage to batteries, chemical storage, thermal energy storage, and supercapacitors, with the objective of providing the required level of technology assurance prior to large-scale roll-out within the grid. Our three pumped-storage schemes, namely, Drakensberg, Palmiet, and Ingula, provide a combined installed capacity of MW of electricity during peak load periods. 3

4 The immense value of battery storage in particular, transcends its grid and off-grid electricity supply capabilities. The African Continent is rich is natural mineral resources, with South Africa and the SADC region possessing significant deposits of Lithium, Vandium and Cobalt. These globally scarce mineral resources have the potential to render Africa a key player in the global battery manufacturing industry. This opportunity cannot go unattended as it holds notable potential for economic growth and development on the content. This aspiration can however only be realised through collaborations between key local and regional stakeholders. In support of local industry stimulation Eskom has invested in the development of in a locally manufactured battery in collaboration with the University of the Western Cape. This augurs well for our intensified efforts to take advantage of large-scale energy storage technology opportunities. Eskom is expanding its energy storage focus to include beyond-themeter value added storage solutions development. In this regard, the research team has developed the Energy Storage Selector Tool which performs comparative analyses, modelling, and simulation of energy storage technologies for the South African market. The Fourth Industrial Revolution may bring us closer to realising a Super Smart Grid in Africa Advances such as energy storage, micro off-grid technologies and control systems, and the introduction of electric vehicles all offer potential opportunities for South Africa s system future. 4

5 To this end, Eskom successfully piloted a solar-pv-powered microgrid in Ficksburg, a small rural community in the Free State. This provided an option for green rural electrification. While this is a notable stride towards the goal of universal access to electricity, it is also in line with Eskom s 2030 vision to implement smart-grid technology, ensuring safe, reliable, and energy-efficient operations. This will enhance our customers experience while enabling new energy service offerings. The official launch of the Wilhelmina Rural Microgrid site will take place within the next few weeks. On the customer service improvement side, Eskom has begun introducing smaller and localised network control centres to give easier access to manage the volumes of customer faults. While this integration improves customer experience, it also provides value for money, reducing the operating costs of utilities. This initiative is in line with the emerging global trends of self-healing networks with seamless solutions for providing visibility and automation of the network. These networks have the ability to detect and isolate faults and restore power supply to the customer from alternative network lines on the same grid through the use of realtime communication methods. New technologies and business models are indeed broadening the potential of distributed generation, disrupting the energy industry in a 5

6 significant way; and how we as industry players respond to these developing trends will determine the future of the energy industry. Storage compensates for intermittency and volatility of renewable energy sources and platforms like distributed resource aggregators provide the required flexibility. I am often asked about the future of Eskom, and while the Eskom Strategic Review process is currently underway, I can state with conviction that any successful future utility business model should have, at its core, an electricity system that is smart, accessible, affordable and resilient to the growing external market forces. It should furthermore have a diverse suite of value added service offerings that places the customer and country at the forefront of its business. On this note, I wish you well with the conference as we pave the way to ensure future global access to affordable, reliable, and sustainable energy for all. I thank you. 6