Energy Research Priorities
for a Future South Africa
KM Nassiep
Chief Executive Officer
SA National Energy Research Institute
Contents
About SANERI
Energy Sector Characteristics
Policy and Legislative Framework in SA
Energy R&D Priorities
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The time to act has
come and ….
“We are not starting to
address climate change with
the technology we have in
hand, and we are not
accelerating our investment in
energy technology research
and development,”
Prof John Holdren (Harvard
University Professor, Director of
WHRC, President of AAAS)
3
Background to SANERI
establishment
Established in response to concerns from government regarding perceived threat to
indigenous energy research capacity
Established under Ministerial Directive (Minister of Minerals and Energy) in October
2004
Reports to both Ministries of Minerals and Energy & Science and Technology in terms
of governance
Is directed by the objectives of the Draft National Energy R&D Strategy of South
Africa (10th Order Draft, 2007)
Has mandate to conduct own research or solicit work from external parties
4
CEF Group Structure
Minister of Minerals
& Energy
CEF Board of
Directors
Chairman
CEF (Pty) Ltd
CEO
Wholly incorporated divisions
e.g. NEEA, EDC
Part Shareholding
Funds
Wholly owned Subsidiaries, including
SANERI (Pty) Ltd
5
State Funding of SANERI
SANERI is 100% state funded at present, receiving grants via the
Department of Science and Technology
A total of R70 million has been transferred to SANERI from government,
since 2004/5
An amount of R42 million has been made available in 2007/8 for activities
related to:
Flagship project development
Chairs of Energy Research Programme
Bursary Support Programme
Establishment costs
SANERI mandated to leverage additional funds through grants, royalty
income and through collaborative projects
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SANERI
Key Objectives
Ensure long term health of energy research capacity in the
country and assist in stimulating a culture of innovation in the
energy research environment
Support government goals of energy security of supply through
identifying viable and sustainable diversified energy supply
options
Address deficiencies in current race, gender and age profile of
postgraduate students, academia and scientists
Stimulate socio-economic upliftment through improved access to
modern, clean and affordable energy services
Support economic growth through development of flagship
projects that will ultimately result in commercial rollout
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Key Challenges
Faced by SANERI
Low PIER&D spend in SA – about 0.8% of GDP is spent on R&D, of which about 6%
is Energy
Low contribution from Black scientists – measured in publications where about 8% is
produced from Black Scientists
Percentage women in energy R&D sector is low, about 26.5% in 2004, which is well
below equity targets of government
Challenge of meeting national development goals with consequent increase in
demand of natural resources and energy
Access to modern, clean and affordable energy remains a challenge for about 30% of
South Africans
Skills loss in Energy R&D sector, particularly Eskom Research
8
SA energy contribution
to overall publications
9
Number of energy
publications by year
1
0
Top Research
institutions by publishing
1
1
SA in the international
Context
1
2
Findings
1
3
Human Capital status
Identified 19 core researchers; 30 tail and 540 post-graduate students
(2000-2007)
Core: 84% male, 63% white; 79% PhD; median age 49
Tail: 84% male; 79% white; 85% PhD; median age 43
Post grads: 81% male; 62% white; 23% PhD
1
4
Thematic Areas addressed
by SANERI (proposed)
9 thematic areas identified as areas of focus for energy R&D
Energy infrastructure optimisation
Energy Efficiency and DSM
Understanding the impact of energy use on the environment
Stimulating socio-economic development through the productive use of energy
Cleaner fossil fuels, including clean coal technology
Renewable energy
Alternative energy, including hydrogen economy and fuel cells
Energy planning and modelling and
Energy policy research
These areas are covered in the Draft National Energy R&D Strategy (10th Order
Draft, 2007)
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5
SANERI Role in
context
NERSA
Universities
Research Chairs
Contract R&D
R&D Activities
Commercial
Implementation
Strategies /
Legislation
Bursaries
Regulatory
The DME
Policy / Planning
All Spheres of
Government
SOEs
Private
Sector
Human Capital Development
1
6
SANERI
Collaboration Focus
Universities,
Technical
Universities,
Research Chairs,
Hubs, CoE, CoC
SOEs & Pvt Sector
(e.g Eskom ERID,
Sasol, Anglo, etc)
JFP
CR
NL
NL
SFCB
PRP
SFCB
JFCB
SANERI In-house
R&D Activity
JFP
DFP
Legend
International R&D
Agencies, donors,
governments
CR – Contract Research
JFP – Jointly Funded Projects
DFP – Donor Funded Projects
NL – Jointly Funded National Laboratories
PRP – Postgraduate Research Programmes
SFCB - SANERI Funded Capacity Building
JFCB - Jointly Funded Capacity Building
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7
Key Strategic
Focus Areas
Energy R&D Agenda
Human Capital Development and Transformation
Energy Research Chairs at Universities
Renewable Energy and Sustainable Energy Hub at the University of
Stellenbosch
Bursary Support Programme
Cooperative Energy R&D Activities
Flagship projects
Clean Energy Solutions
Advanced Fossil Fuel Use
End Use and Infrastructure Management
Energy Policy and Planning (R&D)
Governance
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8
Characteristics of
Energy Sector
Energy economy dominated by energy intensive industry and synthetic fuel production - energy
intensive industries, largely coal dependent
Cheap coal + high efficiency steam coal-based generation + amortised plants = lowest cost
electricity in the world (powerful disincentive for market conditions supporting RE)
No major investment needed in new power generation or refining capacity in last 20 years
Limited market exists for natural gas (mainly imported from Mozambique) although offshore
discoveries are sustaining national oil and gas company’s synfuel and chemicals plant
Apartheid left majority of citizens without electricity
Large electrification drive to attain universal access to energy
Remote communities too expensive to electrify – But….
Photovoltaic (SHS) programme - largely unsuccessful (no thermal energy and high
maintenance)
Paraffin – unacceptable deaths, injuries and damage to property
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9
Electricity Capacity Outlook
Source: Eskom ISEP, 2006
2
0
Future Supply Options
Research
Opportunity
Identification
Pre -feasibility
1000
165
0
PBMR
New Coal Supply
3500
0
100
Concentrating
Solar
1200
1800
Hydro
- Hydro
Sierra
Victor
6000
4200
4000
Mike
Foxtrot
4200
Zulu 90
Songo Apollo
HVDC Link
Capacity Upgrade
0
Rainbow Millenium
0
Trans Kalahari
Interconnector
Bravo
1000
Echo
500
4200
1050
Quebec
Juliett
800
Komati
Romeo
90
3600
300
Alpha
1300
Kilo
Whiskey
* Brown outer circle indicates – out of Borders project
Grootvlei
2100
Charlie
7800 MW
Arnot
P1&P2
1128
Delta
* Possible 2400MW Mid Merit
17375 MW
Camden
2100
9
Golf
872
Solar
- Transmission
Lima
1520
2000
Tango
Nuclear
- Nuclear
-
600
Nuclear 1
CBM
Gas
- Gas
- Coal
Coal
- Coal
1000
961
India
*Papa
800
500
500
600 1000
1600
1800
200
W
1600
November
Uniform
Hwange
Yankee
1775
Discard Coal
Hotel
0
UCG
1775
Build
1332
800
Oscar
112
Feasibility, Business
Case, Contract
Concluding
1050
Gas 1
1050
OCGT
90
23100 MW
2
1
Version CPF 1.3.16 Date: 30/08/2006
National Government
Objectives
Major energy related priorities
– Universal access to energy by 2012
– Energy security of supply
Liquid Fuels Master Plan approved by Cabinet in August 2007
Electricity Master Plan under development
Deputy President leading the programme of fastracking economic
growth through several strategic projects
– Accelerated and Shared Growth Initiative of SA (ASGI-SA 2005)
– Ties in to Government’s Plan of Action to improve service delivery
– Energy related strategic projects selected include
Accelerated electrification
Biofuels industry development
Beneficiation of raw minerals and materials
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2
Energy Policies of
SA
White Paper on Energy in SA (1998)
White Paper identified the following objectives:
Increasing access to affordable energy services;
Improving energy governance;
Stimulating economic development;
Managing energy-related environmental and health aspects; and
Securing supply through diversity (including renewables)
White Paper on Renewable Energy (2003)
Approved by Cabinet in November 2003
Follows on the direction set by the Energy White Paper (1998)
White Paper calls for:
real, measurable increase in renewable energy use, based on prescribed
target
Calls for strategies to be developed to promote specific areas where RE
could be developed
Policy aimed to create an enabling environment for renewable energy,
setting a platform for industry development.
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3
Legal and Regulatory
Framework
Electricity Regulation Act (No. 4 of 2006, became operational 1 August 2006)
Objects of the Act:
(d) facilitate universal access to electricity;
(e) promote the use of diverse energy sources and energy efficiency;
(f) promote competitiveness and customer and end user choice;
Regulator regulates prices and tariffs
The Regulator may make any licence subject to:
conditions relating to the setting and approval of prices, charges, rates and tariffs
charged by licensees;
compliance with energy efficiency standards and requirements, including demandside management
A transmission or distribution licensee must, to the extent provided for in the
licence, provide non-discriminatory access to the transmission and distribution
power systems to third parties.
The Minister may, by notice in the Gazette, make regulations regarding:
(m) new generation capacity;
(n) the types of energy sources from which electricity must be generated;
(0) the percentages of electricity that must be generated from different energy
sources;
(p) the participation of the private sector in new generation activities;
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4
SANERI role in
electricity sector
Research and develop technology-based solutions that support grid stability
and diversification of energy supply
Develop human capital that supports project implementation in this sector
Support national development objectives by identifying income-generating
opportunities that tie in with electricity provision
Support national goals of energy efficiency by supporting local government
in implementation of sound projects, in conjunction with the National Energy
Efficiency Agency
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5
Research Vision for
the electricity industry
Stabilise Markets
Protect the Environment
Provide for Public good
Educate and empower the Consumer
Unleash Innovation
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6
Energy Sector Challenges
Regulatory challenges and competition
Unbundling value chains (Electricity)
Consolidation (merges, acquisitions)
Environmental concerns
Increasing energy requirements
Large demand increases (Asian glut)
Diminishing surplus supply capacity
The need to secure alternative renewable resources
Energy security
Increasing pressure on margins
Increasing production cost
Skills shortage
Equipment supply and lead times
Ageing infrastructure due to limited capital for re-investment
Increasing importance of innovation and technology
Increased use of technology to reduce costs and improve reliability
Convergence of technology (IT and telecommunications)
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7
Current Status of
Grid-connected RE
Slow uptake of renewable energy – based on current market conditions
Limited CDM project development, limited PIER&D expenditure on
renewable energy
Focus placed squarely on top-up feed-in tariff as only realistic incentive
for investors
Department of Minerals and Energy and National Treasury are studying
implications of introducing the feed-in tariff and expect decision by April
2008
Eskom to consider competitive bids for renewable energy as part of
new supply options
Eskom to construct at least 2 large-scale renewable energy plants as
part of their own build programme
2
8
Status Quo of
Strategy (Biofuels)
An Industrial Development Strategy has been developed and submitted to
Cabinet
Government in the process of soliciting input from stakeholders to refine
strategy
Strategy calls for 4.5% contribution by biofuels to petrol and diesel supply
Debate over whether food crops such as maize, sugar-cane and soya
should be used for biofuels
Research programmes underway to investigate use of japtropha, algae and
other plant types for biodiesel production
Research underway into enhancing cellulosic extraction of ethanol for
bioethanol
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9
Energy R&D
Priorities
Grid-connected Technologies
Resource assessments (ongoing)
Pilot and Demonstration projects
Potential for local design and manufacture of components, e.g.
heliostats for CSP
Potential for development of low-wind speed turbines
Potential for development of advanced hybrid mini-grid technology
Development and testing of local, high quality solar water heaters
Integrate RE into building design, beyond passive solar design
3
0
Energy R&D Priorities
Non-grid electrification
Refinement of model for hybrid mini-grid deployment
Investigation into possible use of fuel cells to provide more
sustainable energy supply to remote communities
Ongoing development of PV, small wind turbines, biomass
digesters and gasification projects
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1
Energy Efficiency: Vision
To encourage sustainable energy sector development and energy use
through efficient practices thereby minimising the undesirable impacts of
energy usage upon health and the environment, and contributing towards
secure and affordable energy for all (DME).
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2
Research Focus Areas:
Energy Efficiency
Applying the 80/20 principle
Criteria
–
–
–
Value added
Technology breakthrough
Social, environmental
Focus areas that are going to make the biggest difference in the short term (1-3
years)
Water heating
Compressed air
Pumping
Minimizing electricity transmission and distribution
Steel industry
Commercial lighting
Solar Traffic lighting
Solar street lighting
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3
Research Focus
Major focus is on :
Sustainability (economic, social and environmental)
Carbon capture and storage ( oil and gas and electricity)
Emissions
Energy security
Alternative fuel sources (solar, gas, batteries)
Support the development of the hydrogen economy
Planning for capacity expansion (what, when, how)
New technologies to deal with capacity expansion (choices)
Optimisation
Asset management (oil and gas and electricity sectors) – increasing the life-cycle of
existing assets, efficiency and reliability
Electricity sector network/ substation automation
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4
Medium to long term
focus: Electricity
Reviewing generation options
Increasing transmission capacity
Superconductors (conductors, transformers)
Improving power quality and reliability
Understanding service level requirements
Planning for reliability
Transformer research
Increasing robustness, resilience and security of supply
Exploiting energy storage
Transforming markets
Creating infrastructure for a digital society
Electricity transportation
Technology innovation
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Superconductor Research
Applications
Underground power transmission
HTS underground power transmission cables will carry electricity from the utility
stations to transformer substations.
Since the cables are composed of superconducting wire there is very little loss of
electricity.
This transmission cable can carry 3-5 times the current of conventional power cables.
This capacity will be great value in places where new rights of way are restricted.
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6
Superconductor Research
Applications
High temperature superconducting transformers
Offer utilities and industry a highly efficient, lightweight compact and
environmentally friendly alternative to today’s oil filled transformers
Fault current limiter (FCL)
Can protect power transmission, cable and operating equipment from surges
of excess electricity caused by lightning strikes, short circuits and power
fluctuations.
The HTS coils in the FCL control the high current burst just long enough for
the circuit breaker to open.
Generator coils
The coils will be used in high efficiency low cost generators for electric utilities
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We would like to take the opportunity to invite all members
of the AMEU to join us in the effort to affect a change to a
sustainable energy future
Thank You