Category Archives: IEP

Integrated Energy Plan

Public-private partnership bridge energy gap – Ramaphosa

ESI Africa, 19 January, 2017.

South Africa’s Deputy President, Cyril Ramaphosa, advises countries to consider a partnership between government and the private sector in order to bridge the energy gap.

Ramaphosa was speaking during a panel discussion about bridging the energy gap in Africa by 2030 at the World Economic Forum in Davos, Switzerland on Tuesday, Fin24 reported.

According to the media, the deputy president is leading the South African delegation in Davos, themed “Responsive and Responsible Leadership”.

Among other ministers attending the seminar is finance minister Pravin Gordhan, minister of trade and industry Rob Davies and minister of economic development Ebrahim Patel.

Energy gap in Africa

Media reported that Ramaphosa recommended that in order for Africa to improve energy access, governments should look at getting the private sector to partner with them and eventually reach a point where the private sector generates power independently.

He said: “In South Africa we have seen the effectiveness of involving the private sector to set up independent power projects.”

The partnership is said to have resulted in nearly ZAR194 billion ($14 billion) worth of investments and 2,500MW of power generation, which presented the private sector an opportunity to generate power independently.

IPP programme

According to Fin24, Ramaphosa told the delegates that the South African IPP programme was established when government realised it could not bridge the electricity gap alone.

“We needed to bring in new technology and those with better reach for technology were in the private sector,” the deputy president stated.

He explained that the private sector is capable of raising funding and use their networks to acquire technologies, media reported.

As a result, a special unit was set up within the Department of Energy, which developed a policy to evaluate the IPP proposals. He applauded the robustness of the regulations in place.

“We had a huge number of proposals that came in because the private sector realised the government was serious about increasing energy supply in the country and that we wanted to move towards renewable energy and smart energy,” Ramaphosa said.

He added: “The private sector had a key role in sharpening government’s capability in this regard. We came out strong on renewable energy.”

Here is the article.

DoE extends comment period for energy plans to end of March

Engineering News, 9 January, 2017.

The Department of Energy (DoE) has formally extended the period for public comment on the draft Integrated Energy Plan (IEP) and the draft Integrated Resource Plan (IRP) base case until March 31.

The closing date for written comment was initially set as February 15, after the two plans were formally Gazetted on November 25.

The DoE said the decision to extend the comment period followed requests from a number of stakeholders.

To date, the department has hosted hearings on the IEP and the IRP in Gauteng, the Western Cape, the Eastern Cape and KwaZulu-Natal.

A number of participants expressed dismay at the short notice provided for preparing oral submissions and the restricted timeframe for the submission of written comments.

There has also been strong criticism of the plans, particularly of the IRP base case, which, in its assumptions, places constraints on the amount of renewable energy that should be introduced yearly on the basis of possible negative consequences for grid stability.

Several presenters urged the DoE to re-run the base case in order to generate a least-cost outcome, free from the “artificial constraints” imposed on renewable energy in the current draft.

Despite the constraints, the base case still assumes that the first new nuclear reactor would only be required by 2037, rather than the now unobtainable deadline of 2023 in the current IRP, which was published in early 2011 and is considered to be significantly out of date.

Nevertheless, State-owned utility Eskom issued a request for information (RFI) on December 20 for the ‘Nuclear New Build Programme’ in line with an amended section 34(1) determination, published in the Government Gazette of December 14, designating Eskom as the procurer of the nuclear generation plant, which also involves the front-end fuel cycle facilities which will be procured by the South African Nuclear Energy Corporation, or Necsa.

The RFI was issued instead of the request for proposals, previously mooted, and Eskom stressed that the process was not a competitive tender and would, thus, not create any financial commitments or obligations on it or government.

The closing date for responses to the RFI is April 28.

DoE urged to re-run IRP base case without ‘artificial constraints’

Engineering News, 8 December, 2106

A call has been made for the Integrated Resource Plan (IRP) base case to be re-run in order to generate a “least-cost” outcome that is free from the “artificial constraints” imposed on renewable energy in the current draft.

The base case, published by the Department of Energy (DoE) on November 22, outlines a proposed electricity generation mix to 2050. It has been generated, however, using a computer model that places constraints on how much wind and solar can be introduced in a single year. It also uses cost assumptions for renewables that are higher than those that have already been achieved during the most recent bidding rounds.

Here is the full article

Experts’ advice ignored to force nuclear option

BusinessDay, 8 December, 2016.

Task team tells public hearings of artificial constraints on how much renewable energy can be built, leaving lowest-cost option off the table.

A panel of experts appointed by Energy Minister Tina Joemat-Pettersson told public hearings on the Integrated Resource Plan (IRP) in Ekurhuleni on Wednesday that their advice had been ignored to force nuclear energy into the plan.

A task team for the 40-strong panel, which was headed by Mike Levington, says that the Department of Energy’s decision to impose artificial constraints on how much renewable energy can be built — as well as the use of outdated prices — had allowed nuclear energy into the model.

The result of this distortion was that the IRP, which will determine SA’s future energy mix, did not recommend the lowest-cost option for the generation of electricity in the long term. A lowest-cost option, said Levington, would not include nuclear in the plan, which projects energy needs until 2050.

Instead, the “base case” of the IRP 2016 suggests that new nuclear energy will be required by 2037 — 15 years later than was expected under the 2010 IRP — and that, by 2050, SA will need an additional 20GW of nuclear power.

Read more about the flawed planning process here

Public consultations for IRP, IEP get under way as DoE attracts criticism over timelines, pricing basis

Engineering News, 7 December, 2016.

Planned nationwide public consultations got under way in Boksburg on Wednesday for the Department of Energy’s (DoE’s) long-awaited draft Integrated Energy Plan (IEP) and updated Integrated Resource Plan (IRP), drawing some industry criticism regarding timelines and an outdated pricing structure.

Industry proponents, which individually unpacked their own contributions to bolster South Africa’s energy plans, seemed to agree that more time was needed to provide sufficient input for the energy development plans moving forward. They also put forward that a realistic demand forecast was required and that the IRP draft’s levelised cost of electricity(LCOE) needed to be based on current trends…

Speaking at Wednesday’s public consultation, the EnergyIntensive User Group’s Jarredine Morris argued that the draft required more time for “proper” consideration and enhanced public consultation. She suggested a deadline, rather, of March 31, 2017, a view that was shared by the South African Renewable Energy Council and the South African Independent Power Producers Association.

She further noted that the 2.2% growth forecast was “optimistic”, with Eskom’s predictions of between 0.4% and 1.8% a more likely outcome.

“There must be scenarios with updated sensitivities, including a realistic demand forecast and . . . unconstrained renewables,” Morris told stakeholders.

Meanwhile, the draft’s limit on renewable energy also concerned industry participants at the discussion on Wednesday.

Council for Scientific and Industrial Research (CSIR) head of energy research Dr Tobias Bischof-Niemz noted that the limit was drawn with no technical explanation of the constrained build capacity assumptions applied to renewable energy, particular solar PV and wind.

He also pointed out that the updated IRP assumed a similar LCOE for new baseload coal, solar PV and wind, whereas the tariffs of the latter two were, in actuality, some 40% cheaper than that of coal.


Here is the full article