Department of Energy (DoE)National Electrification Indaba

Electrification & Localization

Elangeni Hotel, Durban, 15&16 March 2012

History> South African Association of Consulting Engineers (SAACE) founded in 1952

> Original membership 30 individuals

> August 2008 - SAACE transformed to Consulting Engineers South Africa (CESA)

> Consists of 485 private CE firms – still growing

> Employing more than 22 000 people

Promote interests of Members and Clients by:

> Regular liaison meetings

> Engineering comment on legislation etc

> Advisory Notes for Members and Clients

> New/revised contracts/forms of agreement

> Guidelines on professional practice matters

> A peer review and quality management

programme

> Seminars, workshops and conferences

> FIDIC (International Federation of CE Association)

Role

Professionalism and Integrity of Members: 

1. In general:• ECSA registers professional individual engineers,

technologists etc• CESA ‘registers’professional Consulting Engineering Firms

2. Credibility of applicants• In business > 12 months• Nominated & Seconded by CESA member firms

3. Ongoing requirements• Subject to CESA Code of Conduct (includes BIMS)• Ownership/principals > 50% Professional Engineers/Technologists • Primary work (Consulting Engineering)• implement and maintain a QMS

Overview of Presentation

> Challenges & Opportunities for Electrification> Electrification & the Engineering Profession> Engineering Contributions to SA’s Infrastructure> How engineer’s can help South Africa> Localization: Definition & Maximization> Localization: CSP Example

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Limited Generation Plant (Low safety margins)

Regional(few opportunities for import)

Increasing Demand(3 million households not electrified)

Aging Infrastructure(Generation, Transmission, Distribution)

Sustainable Income for future expansion

Localization(technology transfer, industrialization & jobs)

Energy Efficiency(reduced revenue from electricity sales)

Evolving Government Policy(IPP’s, ISMO, small scale renewable etc)

Infrastructure Expansion & Upgrading

(Growth, job creation, carbon reduction, localization, diversification etc)

Poverty Elevation & Growth

Cost reduction & Greening

Rapid increase in electricity cost

Reform & Modernization

Industrialization & Job Creation

Export of SA knowledge & products

Challenges OpportunitiesElectrifi

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The Engineering ProfessionChallenges

Shortage of Experienced Engineers

Aging work force(loss of experience, knowledge, mentorship)

Un-sustained infrastructure investment(leads to loss of local engineering knowledge)

Limited Technology Transfer(limited development of new engineering skills in SA)

Training Young Engineers(generational knowledge transfer, greater

career opportunities & faster growth for young engineers than in other countries)

Receiving Technological Knowledge from Developed Economies &

transferring to other African nations

Maintaining & Growing Knowledge through sustained investment in

new technologies (Nuclear & Renewable)

Opportunities

Moral & Professional Duty to SARole Models & Leaders in

Developing our Nation through our Work

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Engineering ContributionsDespite challenges South African Engineers, contractors and manufacturers have delivered challenging new projects to Government in the recent past …

Fifa World Cup 2010

Gautrain

Eskom’s Medupi & Kusile Coal Power Stations

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How can we help you?

Government IPP’sSA’s Engineers bring valuable local knowledge to the project:

> Multi-discipline engineering services (mechanical, electrical, structures, civil, nuclear ..)> Local Design & Building Standards> Local site conditions (geotechnical, seismic, wind etc).> Local Regulations (Building, Environmental, Legal, Water, Electricity use etc. etc.)> Knowledge of local construction techniques & materials> Local site supervision, project management & bid bid preparation> Grid connections & sub-stations to Eskom Standards> Strong ties with local construction & manufacturing industries, government & Eskom> Supported by robust industry institutions like CESA, NIASA, SASTELA, SAICE etc)> History of successful collaboration with foreign vendors & engineers

SA’s Engineers can bring guidance to Government policy:

> Technical and economic assessment of existing infrastructure> Projections for infrastructure investment> Feasibility studies> Tender evaluations> Localization potential & requirements> Education policy on developing the engineering profession> Training of government’s technical staff> Regional integration

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Localization

What is localization?Localization is the transfer of new technologies from technology providers (typically from developed countries) to local market (typically developing countries). Complete transfer involves the knowledge to design, manufacture and install the technology as well adapt and further develop the technology.

Why is it important?Localization creates jobs in design (engineering), manufacturing and construction, thereby stimulating growth, alleviating poverty and ensuring a sustainable economy.

What are the opportunities?Technologies can be adapted and exported to other African countries. If other African countries follow South Africa’s lead in electricity policy, with regional integration a bigger market will form, encouraging specialization. South Africa could become a leading exporter of technology and engineering services.

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Localization

How can localization be maximized?Regulation & Tender Criteria

Encouraging Technology Transfer not only in Manufacturing but also

Engineering

Giving preference to technologies that have a higher potential for localization

Giving preference to technologies that have a high potential for further

development

Maximizing the market for technologies

through policy certainty and assigning enough MW to the technology to build

a local engineering & manufacturing base

Policy and implementation for providing small scale projects (own

generation, off grid etc)

Off grid small scale applications for electrification of rural households.

Offering attractive return on investment for technology vendors to

invest in SA.

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Localization Example

Problems with current IRP allocation & policy: > 1000 MW allocation in IRP2010 (~100MW/ per year)> Undersubscribed compared to wind (8400MW) and PV (8400MW)> Allocation to sufficient to maximize localization (200MW/year required)> Project scale could be increased to up to 250MW/plant maximize economies of scale> Tarrifs in direct competition with cheaper PV, does not recognize CSP advantages for energy storage (dispatchibility) and localization potential

Concentrated Solar Thermal Power (CSP)Electrifi

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0

10

20

30

40

50

60

Hour of the day

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(MW

)

Localization ExampleAdvantages

Greater Localization Potential (up to 60% immediately, 80% long term)

Manufacturing can be implemented in existing factories (steel & car

industry)

Larger component for local civil & structural and mechanical

engineering

Energy storage option (base load & dispatchibility)

Commonalities in design with thermal power stations (power

blocks, heat exhangers etc)

Utility Scale (up to 250MW)

Further development potential

Labour intensive manufacturing

Local O & M

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countries

Adaptable Process heat for local industries

Built in poor developed areasImplemented in high DNI areaswhere water use will not grow

Dramatically due to low population density

Thermal boosting for existing coal fired power stations

Adopted by Eskom and Sasol

SCA Foundations; 4.4%

Metal Support Structure (incl. Huckbolts); 24.2%

SF Assembly & Erection; 10.6%

SCE Assembly Line incl. Photogr.; 3.0%

License ( Collector Drawings ); 1.4%

HCE; 17.1%

Mirrors; 13.9%

Drive Units; 1.2%

Sensors & Pylon Cabling; 0.7%

LOC, FSC & Meteo Station; 1.3%

SF Cabling (Supply & Installation); 2.4%

SF Power Supply; 0.3%

Swivel Joints assemblies; 1.7%

Header Piping Material; 4.5%

Header Piping Installation; 2.1%

Inter Loop Piping Material; 3.2%

Inter Loop Piping Installation; 2.8%

Instrumentation; 0.2%HTF; 4.7%

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Thank You.

Presented by BKS Engineering & Management representing CESA.BKS is a proud member of CESA.

www.bks.co.za

www.cesa.co.za