Technology Responses to Strategic Challenges


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A presentation by Eskom Technology Strategy and Planning Manager Barry MacColl to US bloggers in Johannesburg on December 8, 2008

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Technology Responses to Strategic Challenges

  1. 1. Technology responses to Strategic Challenges. Barry MacColl (Technology Strategy and Planning Manager) 08 December 2008
  2. 2. Select Eskom Strategic Imperatives • Build additional generating capacity • Provide reliable supply of electrical energy • Minimise the impact on the environment • Keep price of energy as low as possible • Create a conducive environment for growth and development • Corporate governance and fiduciary responsibility Economic Balance Social Environmental 2
  3. 3. 3 projects that are making a difference..
  4. 4. Underground Coal Gasification (UCG)
  5. 5. 5
  6. 6. Underground Coal Gasification (UCG) • Scope Development of underground coal gasification site to provide reliable and cost effective syngas for use in co-firing at Majuba power station and for operating gas turbines as a generation option for Eskom • Major Deliverable/s 40 MWe co-firing at Majuba power station 42 MWe open cycle gas turbine connected to the grid running on UCG gas • Timeframe Co-firing at Majuba power station – 2008/9 Open-cycle gas turbine – 2010 2100MW commissioned by Dec 2013 • Budget R1 454 million (over 5 years), R190 million in 2008/9. • Benefit to Eskom Alternative, cost-effective energy source for Eskom. Offers lower cost and shorter implementation time than conventional coal plant. Reduced emissions and environmental impact of mining. Flaring of UCG gas Use of ‘unminable’ coal reserves to extend coal resources. Enables coal power generation in provinces previously deprived of opportunities. 6
  7. 7. Concentrated Solar Power (CSP)
  8. 8. Renewables Projects – Concentrated Solar Power Focus: • Photovoltaic not currently a competitive large scale option • Focus on concentrating solar power options • Previous studies have considered both parabolic troughs (PT) and central receiver (CR) technologies • CR has a larger potential for local manufacturing and cost reduction • Current activities aimed at the feasibility assessment of a 100MW pilot Image above courtesy NREL • Have introduced local innovation + working with industry leaders 8
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  10. 10. Concentrated Solar Power (CSP) • Scope Design and construction of a 100MW CSP pilot plant in Upington by 2012 • Major Deliverable/s Concentrator; 9000 Heliostats; Salt Reservoir Salt/Energy Storage; Heat Exchanger; Steam turbine Generator • Timeframe Depending on approval. If Approved by end August, plant can be operational by 2012. Eskom Heliostat (above) and • Budget proof of concept R 6 044M (estimated total cost), R8 million in 2008/9 plant built in the USA (right) • Benefit to Eskom – Generate the lowest cost solar power in the world. Lowest cost renewable option (cost competitive with wind, CC gas and nuclear) – Storage allows 24hr dispatchability – peak or base load. – Clean – environmentally acceptable. – Net present cost lower than Solar Water Heating programme for comparable amount of energy – Protected from future price increases in primary energy for the life of the plant (35 years) 10
  11. 11. Utility Load Controller (ULC)
  12. 12. PLC PLC Kiosk RS GP Updated Every 15 Min Current Load = 10 000MW GPR S Available Load shed =5 000MW 10A limit 12
  13. 13. Utility Load Controller (ULC) • Scope – Eskom, jointly with EON consulting to develop and fund a manufacturing specification for the Utility Load Controller concept and pilot. • Major Deliverable/s – The development and joint ownership of the ULC manufacturing specification for implementation and commercial exploitation. – Install and operate ULC in 27k residential houses • Timeframe PL PLC C – Research project closeout 30 June 2008 Kiosk – Pilot commencement: June 2008 RS – Pilot project conclusion: March 2009 GP • Budget – Eskom opex contribution to ULM research: R3.6M Updated Every 15 Min – Eskom capex funding of pilot study : R50M • Benefit to Eskom Current Load = 10 000MW GPR Available Load shed =5 000MW – ULM gives back 6740MW from 8M residential customers – 1.5 S 10A limit Power stations in 3 years – ULM ensure “constrained but continuous” power to ALL residential areas – NO BLACKOUTS. – Use ULM instead of gas Turbine plant for base load. – Eskom restores full service to industry without “pain” to residential sector. Independent study has proven residential behavior change. – Lowest cost solution currently on the market: Total solution cost 13 full country rollout approx. <R12bn (R1.6m/MW or less)
  14. 14. Conclusions • The world faces some serious energy challenges. • Eskom is a big player in the world energy market (Is one of the top 9 utilities in the world by sales, generates approximately 45% of electricity used in Africa) – our challenges are not unique. They are a reflection of the world electrical energy environment. • Worldwide, – assets are ageing, – prices are rising, – countries face huge capital replacement costs, – financial markets are in a shambles, – demand for energy continues to rise, – environmental responsibility is an imperative. • Many of these issues compete for the same place on governments agenda and many of them are contradictory. • Technology Innovation is not a silver bullet but can go a long way in solving the electrical energy dilemma and provides some answer to seemingly vexing problems. 14
  15. 15. THANK YOU Barry MacColl Technology Strategy and Planning Manager Eskom Holdings Limited Tel +27-11-629-5585 Fax +27- 11-507-6398 Email Megawatt Park, Maxwell Drive, Sunninghill, Sandton P .O. Box 1091, Johannesburg, 2000 South Africa Strictly Confidential 15