System Dynamics Projects in Eskom NALINI SOOKNANAN PILLAY HEAD: SYSTEM DYNAMICS CENTRE OF EXPERTISE RESEARCH TESTING AND DEVELOPMENT SUSTAINABILITY GROUP Reducing environmental footprint, pursuing low-C growth opportunities SI_4 Leading and partnering to keep the lights on SI_3 SI_1 Becoming a high performance organisation SI_2 System Dynamics CoE Alignment with Eskom’s Strategic Imperatives Securing future resource requirements, mandate & enabling environment System causality through causal loop diagrams Extend mental models into SD simulators with feedbacks & time delays System Market Operator Development of appropriate user interface tools Strategy & Policy Setting ourselves up for success SI_7 Ensuring financial sustainability SI_6 SI_5 Build capacity for SD simulations and systems thinking principles Asset Management Distribution Primary energy IDM Generation and New Build Implementing coal haulage and road to rail migration plan EAL SI_8 Extraction of core archetypal behaviour Customer Service BUSINESS FOCUS AREAS Research and consulting in the field of systems thinking and system dynamics Pursuing private sector participation 2 System Dynamics CoE Language of System Dynamics 1. CAUSALITY 3. SYSTEM ARCHETYPES • • • • • • • • 2. TIME PATHS Balancing loop with time delays Reinforcing loops Limits to growth Fixes that fail Tragedy of the commons Success to the successful Eroding goals Shifting the burden 4. LANGUAGE System Time 3 System Dynamics CoE Positioning of Eskom “ORGANIZATIONAL CHANGES/ DECISIONS/ POLICIES DO NOT INSTANTLY FLOW FROM EVIDENCE, DEDUCTIVE LOGIC AND MATHEMATICAL OPTIMIZATION” EDWARD B. ROBERTS Systems have unique emergent properties. SYSTEMIC UNDERSTANDING DETERMINISTIC Water, Tariffs, Emissions, etc. IRP, Intl. Treaties, CO2 derivatives, Fossil depletion, Energy policy, Transport & Mobility, Non-proliferation of Nuclear, Customer Behaviour, Demand Response, Carbon Tax etc. Gen IV Nuclear, Batteries, Smart grid, Electric Vehicle, Wave power, GS Heat Pumps, Disruptive Technologies, Ocean pumped storage, Efficiency technologies, Energy Intelligence, Energy storage, Mini-grids CCS, etc. PF Coal, HVDC, PWR, FGD, Nuclear, Gas, Pumped storage etc. System Dynamics CoE EXAMPLES OF SYSTEM DYNAMICS APPLICATION 1. Eskom Technology Systems Model 2. Strategy Scenario Simulator 3. Gini Coefficient Simulator 5 System Dynamics CoE Eskom Technology Systems Simulator: E-TechSim CAUTION: BY RUNNING THE MODEL, YOU HAVE NOT CONSULTED THE ORACLE!! YOU HAVE A FLIGHT SIMULATOR TO ENGAGE IN STRATEGIC DIALOGUES 6 System Dynamics CoE Eskom Technology Systems Simulator: E-TechSim 7 System Dynamics CoE Organisational Strategy: Eskom Scenario Simulator System Dynamics CoE Organisational Strategy: Eskom Scenario Simulator 9 System Dynamics CoE Exploring Gini Coefficient Dynamics 10 System Dynamics CoE Research Projects RESEARCH AREA PROJECTS Strategy & Policy Supply Dynamics Demand Dynamics Skills Development Customer Service Index Model: Dynamics in network performance, customer demands, the walk-in call centres and customer network centres and trouble responses. Green Bonds Simulator: Will assist EFC and the DBSA to understand the impact of variations in subsidies and tax rebates on attracting players to participate in the concept of green bonds. Scenario Simulator: Looking at key driving forces including SADC relations. GINI Coefficient: Sensitivity analysis and relationships between Gini coefficient and electricity tariff increases, electricity intensity, redistributive measures (social grants, subsidies, capital etc). Eskom Water Simulator: Scope will include the water consumption dynamics through Eskom generation value chain and eventually will be integrated with a global energy model. Plant Availability Simulator: Assemble empirical basis for linking variables such as UCLF, PCLF, EAF; actual versus scheduled outage programs; experience level of staff etc and its impact on outage creep. Economic sectors: Will include a simulator that will explore the dynamics within various economic sectors (mining & quarrying; services; agriculture; transport) and the residential sector and its impact on the electricity industry. Training Course 11 System Dynamics CoE “TODAYS SOLUTIONS ARE TOMORROWS PROBLEMS….” 12