SAIREC Panel Discussion
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1 Text SAIREC Panel Discussion Cape Town 04-Oct-2015 Unlocking Grid Capacity for the Energy Mix Proposed in the IRP Cape Town International Convention Centre Sunday, 04 October 2015, 11:30 for 13:00
2 Highlights of Eskom collaboration with IPPs to facilitate grid connections Established the Grid Access Unit to facilitate the connection of the IPP plants to the grid Established the Single Buyer Office to facilitate the purchasing of the energy from the IPPs. Published the Grid Connection Capacity Assessment (GCCA) document to guide the IPP Developers on available grid capacity is available Identified strategic transmission line routes to unlock network capacity to connect future IPPs. Collaborating with Department of Environmental Affairs and the CSIR to initiate Strategic Environmental Assessments (SEAs) Working closely with the DOE IPP Office to align the IPP programme with network expansion plans Invested over R2.4 billion in network infrastructure to integrate RE IPP Bid Windows 1 to 3 Provided IPPs with the Self Build Option to allow them opportunity to seek efficiencies in cost and timelines in their dedicated connection infrastructure Beyond Bid Window 3.5 and based on the IRP2010 and interest from IPPs, we have a good indication of network requirements and cost to integrate potential IPPs up to 2024 We continue to work with IPP organisations and NERSA in the maintenance and development of the SA Grid Code for the various RE Technologies 2
3 Since 2011, 42 projects (2124 MW) of RE IPPs have been connected, of which ~88% (1865 MW) are in operation Status of Committed IPP programme (as at August 2015) Name of programme Bid Window 1 MW contribution 1436 Current status All 28 projects connected. (28 projects) Bid Window 2 (19 projects) Bid Window 3 (19 projects) projects connected (706MW) 5 projects in execution All budget quotations issued for 19 bid window 3 projects MW of RE IPPs have been connected to the grid underpinned by a R2.4 Billion Eskom investment 3
4 The geographical spread of the 42 connected projects (2124 MW) bid window 1 and 3 across the country 4
5 Required Investment to Unlock Capacity for RE IPP projects Beyond Bid Window 3 (up to 2022) 5
6 Strategic Unlocking of Renewable Access Preparation Status Already in TDP and projects to be accelerated Projects triggered by successful RE Bids Projects defined and ready to be developed Complex projects still to be fully defined and presented later Strategic Unlocking 6 Implementation Time 6
7 Strategic Planning to Enable Integration of Future Generation to the Grid here
8 The work that Eskom has done Identify Future Corridors Outputs and Studies Completed Determining the Future Grid Conducted Transmission 2030 Study Conducted Transmission 2040 Study Flexibility to move to Different Scenarios Expanding the Grid Publish Annual Transmission Development Plan Reduce Implementation time to meet generation & demand development Impact of Intermittence Grid Capacity On Time Grid Access Prepared Generation Connection Capacity Assessment (GCCA) Provide information on spatial network capacity available to connect Generation Created Generation Connection Application Procedure Developed a Tx Self -Build Policy Developed Streamlined Application Process Enable faster implementation to ensure success of REIPP Final SIP 10 Corridors
9 The identified 2040 Power Corridors for SEA The SIP 10 SEA Project is currently underway and completion including government gazetting is targeted for December 2015 Combining all the available info and results from the supporting studies with the 2040 Network Study findings enabled the five power corridors to be further refined. DEA proposes to use SIP 10 SEA studies to undertake all the Environmental. Scoping studies which will be valid for longer period. Relatively simple process can be followed to secure the final environmental authorisation. 9
10 Transmission Generation Connection Capacity Assessment (GCCA) here
11 What is the value of the GCCA? Guides generators to areas of the network with grid capacity Created in response to the DOE s IPP Procurement Programme First one issued in 2011 to indicate grid capacity up to 2016 Second issued earlier in 2015 to indicate grid capacity up to 2022 Both GCCAs are based on existing network plus approved TDP projects GCCA 2022 Enables Grid Capacity Assessment for RE Bid Windows with CO dates up to 2022 Beyond Bid 4 IPP projects will need information on capacity beyond
12 Current Constraints to Grid Access Servitude Acquisition and EIAs (can take up 24 Months to resolve) o IPP developments tend to be in close proximity of Eskom substations. This sometimes restricts access to other RE IPP participants due to limited powerline corridors through IPP properties Long Lead Times for New Infrastructure (can take up to 7 years): o Post REBIDs 1, 2, & 3; there is very limited spare capacity on the existing Distribution and Transmission networks. Hence, necessity for deep strengthening. High Cost of the Shared Infrastructure (due to requirement for deep strengthening) o Due to uncertainty of allocation of Preferred IPP Bidders, quotations are issued on an individual basis i.e. no other application is considered in the quotation. This potentially raises the cost of connection per quotation CELs issued to IPPs are non-binding but are utilised in the BID price, which is binding to the DOE IPP 12
13 Opportunities to Accelerate the Integration of IPP Projects to the Grid Earmark specific geographical areas for renewable energy development Encourage the installation of smaller blocks of PV (e.g. < 50MW) closer to load centres Avoid large projects in grid-remote areas Encourage projects in areas with grid capacity (i.e. align projects to GCCA document) Align the timetables of the IPP programme to the timetables of the grid development plans. Expedite the EIA, servitude acquisition, and water-use license authorization (WULA) processes 13
14 Thank you 14
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