Building the Wires, Capacity and Harmonization for True ...

SOUTHERN AFRICAN POWER POOL 1

Building the Wires, Capacity and Harmonization for True Regional

Integration

Presentation by

Pius N Gumbi

SAPP – Executive Committee Chairperson

Johannesburg, SOUTH AFRICA

September 15 – 16, 2011


1. Introduction to the SAPP

2. Challenges & Opportunities for Increasing Power Trade in SAPP

3. SAPP Position a Climate Change

4. Renewable Energy in the SAPP

5. Energy Efficiency

6. Role of Key Stakeholders – Government, Donors & Financiers

7. Grid Emission Factor & CDM in the SAPP

8. Earth Hour

CONTENTS


1. Introduction to the SAPP

1.1 Geographic

DR Congo Tanzania

Zambia

Angola Malawi

Zimbabwe

Mozambique Botswana Namibia

South Africa Lesotho

Swaziland

12 Countries

230 Million people

Average electricity growth

rate 3% p.a.

For South Africa

demand growth was

4.9% in 2007 and for

whole region 4.1%.


1.2 Generation Mix & Contributions – Year 2010

74.3% Coal

20.1% Hydro

4.0% Nuclear

1.6% Gas/Diesel

80.4% South Africa

5.0% Mozambique

4.1% Zimbabwe

3.6% Zambia

2.6% DRC

4.4% Rest


SAPP Pool Plan.

The current Pool plan is 10 years old. The last revision was

done in 2008.

SAPP is in the process of reviewing the Pool Plan.

Stakeholder engagement and consultation including SADC is

ongoing.

Project priority to be indicated for funding considerations.

2. Challenges and Opportunities for Increasing

Power Trade in SAPP


Transmission Constraints Impact

Demand of Transmission Capacities on Critical Corridors in SAPP

1*Mozambique-Zimbabwe 330kV AC 400 215 350 50 615 154% (215)

2*Within Zimbabwe 300 415

650 501115 372% (815)

3*Zimbabwe-Botswana 400kV 300 265 700 100 1065 355% (800)

4*Zimbabwe - Botswana 220 kV 250 0

0 00 0% 250

5Botswana-South Africa 400kV 300 280 600 100 980 327% (680)

6DRC - Zambia 260 100 50 0 150 58% 110

7Zambia 210 100 50 0 150 71% 60

2* ZESA Transactions from the North included since they wil pass through the congested area within ZESA

3* 250 MW is declared Operational capacity against SAPP transfer limits of 300MW on this interconnector

4* 220 KV interconnection between Zimbabwe and Botswana is not being used for wheeling purposes

Capacity Less DemandTotal Demand % LoadingNO. Circuit Transfer LimitFirm

Contracts

Non Firm

ContractsDAM Appetite


Challenges and Opportunities for Increasing Power Trade in SAPP

Opportunities for Increasing Power Trade.

ZIZABONA interconnector Projects.

SAPP Central Transmission Corridor

Mozambique - Malawi interconnector.

DRC - Zambia interconnector.

Zambia - Tanzania – Kenya.

Mozambique Backbone.

Kafue Town - Muzuma – Livingstone

Namibia - Angola Interconnector

Mozambique – Tanzania Transmission Corridor


All SAPP Member Countries have ratified/acceded to the UNFCCC & have an obligation to reduce carbon emissions. SAPP Members are therefore encouraged to:

Raise awareness & promote training & capacity building within their respective organizations at all levels

Support the establishment of an inventory of applicable greenhouse gases

Become involved in the Climate Change projects.

3. SAPP Position on Climate Change


4. SAPP Initiatives – Renewable Energy

SAPP Embarking on Renewable Energy Initiatives

SAPP recognizes the importance of Renewable energy in Climate Change stabilization

Embarking on Renewable Energy & action Plan for SADC countries

SAPP intends to promote renewable energy & benefit from significant renewable energy resources that exist in the region

The following forms of renewable energy have been identified in the region:



SAPP Embarking on Renewable Energy Initiatives

- Bio-mass - Geo-thermal - Solar

- Wind - Hydro - Ocean

Wind

• Energy potential for Southern Africa has been estimated at 16.0 TWh/year

• Wind Energy projects are being implemented in all SADC countries, though at different magnitudes

• Eskom has started development of 100MW wind facility on the West Coast of RSA



Solar

• Most abundant of all energy resources

• Solar potential in Southern Africa is estimated at between 25,000 to 30,000 TWh/year

Geo-thermal

• Studies indicate that Malawi, Zambia & Tanzania & Mozambique have a potential of 4,000MW from Geo-thermal

Ocean Energy

• SA has so far attempted to assess the ocean potential

• Eskom has completed an ocean energy assessment

Overall, the SAPP expects to increase Renewable Energy contribution from the current 20% to 29% by 2030


5. Energy Efficiency Initiatives

SAPP taking an active part in Energy efficiency through introducing;

• Compact fluorescent Lamps – Energy saving bulbs

• Commercial Lighting

• Hot Water Load Control measures

• Solar Water Heaters

• Has so far realized 850 MW through saved power

Also taking active part in Transmission Loss reductions


Signing of PPA`s would promote viability of project and thus attract

investments.

There is a need to develop Financial models for cross-

boarder projects i.e. SPV ,PPP.

SAPP is working with Donors & Financiers to implement least cost

solution to promote cross border energy trading.

Most Governments in the SADC can not raise the necessary

investment finance without the help of international financiers.

Tendering procedures, low tariffs and political instability are major

stumbling blocks by some investors.

6. Role of Governments , Regional Economic

Communities , Donors and Financiers in Advancing

key , transformational cross boarder projects.


7. SAPP Grid Emission Factor & CDM

• SAPP has done a study to calculate the Grid emission Factor

• Average emissions from the electricity in the SAPP stands at 1.0136 tones of carbon –dioxide per MW

• This results in additional carbon finance impact of 1.52USc

• An energy CDM project in the SAPP may claim 1.0136 tonnes of carbon emission reductions per MWh fed into the SAPP

• SAPP working on the Registration of a CDM Project for the region by 2012

• There is a need for SADC Policy on Incandescent bulbs for the C&M Project to be a success.


8. Earth Hour

• SAPP Recognizes the importance of the Earth Hour which call for

individuals and businesses to switch themselves off for an hour one

day per year as a stand against climate change.

• The Earth Hour, 2011 was held on 26 March, 2011 and all SAPP

countries recognized this day by switching themselves off for an hour

at 8.30pm.

• The Earth Hour, 2012 will be held on 30 March, 2012 and the SAPP

will again take note of the day and switch themselves off for an hour

and measure the impact.


THE END

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