1. KM NASSIEP CEO SANEDI Role in Development of CSP Industry in SA

2. Contents Who or what is SANEDI? The Objectives of SANEDI History of CSP in South Africa Key Research Areas underway in SA SANEDI proposal on RECORD and CSP Demo Project Conclusions

3. Objectives SANEDI is created for the sole purpose of assisting the DoE to achieve its strategic objectives as set out in the National Energy Act, 2008 (No. 34 of 2008), i.e.  Promote diversification of energy supply  Ensure emerging energy technologies are incubated and commercialised  Ensure appropriate human capital is developed to support new industries  Stimulate innovation in energy R&D, introduce next wave of generation capacity in SA

4. Strategic Orientation Set up R&D programmes and centres at universities where potential already exists – strengthen this capacity and turn into world class innovation centres In the medium to long term create capacity to undertake research, development and demonstration in-house in strategic areas Develop, demonstrate and prepare bankable projects for new energy technologies Where required, equity may be taken in a particular project, along the lines of a PPP

5. Reasons for the formation of SANEDI Government concerned over decline in energy R&D capacity Too many technologies and initiatives caught up in the so-called “Valley of Death” State requires an incubator for energy technologies to ensure that they are rigorously tested and developed to the point of commercialisation State has put in place a strategic partner for PPP projects for demonstrating and piloting emerging technologies

6. SANERI Role in context 6 Implementation Strategies / Legislation SOEs Private Sector Universities Policy / Planning R&D Activities Commercial Contract R&D Human Capital Development Contract R&D Research Chairs Bursaries Regulatory NERSA All Spheres of Government

7. SANEDI Operational Model 7 SANEDI IndustryCORDsNERSA Department of Energy Provision of governance and administrative functions Provision of technical, research and information support Provision of research capability and information to facilitate licensing and tariff decisions Provision of research capability and information as part of collaborative projects Human Capital Development Energy Knowledge Base

8. SANEDI Core Activities 8

9. Hub and Spokes 9

10. Research and Demo Centres (CORDs) 10

11. CORD Fundamentals 11 Education Promotion Product RD&D Consultancy SANEDI CORDs

12. Institutional Framework (RE Research Demo Centres) 12 University of Johannesburg University of Stellenbosch Nelson Mandela Metro University University of Witwatersrand Johannesburg / Cape Town

13. RE Research and Demonstration Centre 13 Multi-disciplinary centre focusing on three major programmes  Education and Training  Grade 10-12 Learners  Science and Engineering Undergraduates  Artisans  Product Development  Solar PV products, ocean energy technology, cleaner liquid fuels, large-scale concentrating solar power  Contract Research aimed at specific requests from public / private sector Centre will be project managed by SANERI staff but hosted by different universities to minimise duplication and reduce overheads Centre will build on existing strengths from different universities Funding will be split between fiscal funding and private sector programmatic funding with UNIDO supporting the proposal and will assist in fundraising for learnership programmes

14. Why CSP in South Africa? Resource Assessment points to one of the best insolation sites in the world, in the Northern Cape Other renewable energy technologies do not provide for the same level of energy storage, hence unable to provide baseload power (cf. Wind (load factor of about 30%), versus CSP Receiver (load factor of 68%)) Rising price of electricity creating opportunity for CSP Manufacturing opportunities are sizeable and consistent with SA skills set Green job potential is significant

15. History of Eskom CSP in South Africa 1997  Prefeasibility study completed – highlights value of CSP 1998  Eskom introduces SABRE-Gen, a programme designed to facilitate the uptake of large, grid- connected RE  Eskom partners with NREL to investigate CSP potential 1999/2000  Sunlab completes technology screening of CSP options, discarding solar chimney, and highlighting use of Central Receiver and Trough 2001  Detailed engineering design for Central Receiver project commences 2002  Eskom commissions 25 kWe Dish Stirling system at DBSA offices, to co-incide with World Summit on Sustainable Development 2003  White Paper on Renewable Energy is approved by Cabinet, setting target for RE 2004 –  Ongoing work on CSP project in Upington, including EIA, site selection

16. SOUTH AFRICA SOLAR RESOURCE (The potential of concentrating solar power in South Africa, Thomas P. Fluri) One of the best solar resources in the world. Five out of the nine provinces of South Africa, Northern Cape, North West, Free State, Eastern Cape and Western Cape, include areas with an annual average DNI higher than 7.0 kWh/m2/d. DNI map shown below

17. The National Energy Regulators of SA (NERSA) announced a feed-in tariff system (REFIT) for renewables in March 2009. Amongst other resource options, the REFIT scheme caters for CSP. An initial tariff of $0.28/kWh was set. This is being reviewed, with an updated tariff expected by the end of this month. It is expected that the CSP tariff will not be technology specific, but rather inclusive of all technologies. Hurdles to entry will be set based on the DoE’s New Generation Regulations Regulatory Framework

18. Comparative Electricity Prices (BAU)

19. Comparative Electricity Prices (Predicted)

20. Numerous CSP technology options exist today, but only few are proven. Further, only few companies have experience in the installation, operation and maintenance of these power plants Current programme approached should focus on proven technologies for implementation and grid supply, together with a strong R&D programme, encouraging and enabling the installation of pilots around new technologies. Established international market players should be encouraged. CSP Technology Status – High Level Mature (In operation right now at a capacity ≥10MW) Emerging (Constructed at pilot level and is generating (or has), no operational plant ≥10MW) Future Research projects  Parabolic troughs (with / without molten salt storage)  Steam towers  Molten salt towers  CLFR systems  LFR systems  Dish Stirling systems  Steam troughs  Molten salt troughs  Air receivers  Other State of Technology

21. Phoenix Berlin Tokyo Munich New York Madrid Seville 1 kW100 kW 10 MW100 MW1 GW Si PV Thin film CPVCSP Daily Sunshine System size Possible Technology Approach – Size vs Solar Resource Daily Sunshine

22. Green Jobs in CSP industry PeriodInstalled Capacity (MW) - cumulative Direct Jobs (Jobs/MW) Indirect Jobs (Jobs/MW) Total Jobs (upper limit) - cumulative 2012-2016300-400184-69600 2017-2021800 – 1000185-724600

23. Research Area: System Modelling & Analysis Past & Current Research 100 MWe Upington power plant by ESKOM. Solar Gas Turbine project at the CSIR. Solar Chimney project at Stellenbosch University. SunSPOT Hybrid (Combined Cycle) Solar Power Station at Stellenbosch University. Future Research Focus CSP Plant Modelling, including collector, receiver, power block and cooling system to optimise plant performance for selected technology and solar resource. Cost modelling and optimisation. International Partners ISE, Fraunhofer Institute. DLR, Germany. NREL, USA. Solar Millennium

24. Research Area: Policy & Regulations Past & Current Research Various policy projects focusing on energy policy, including renewable energy policy, completed by the ERC at UCT. Policy to remove barriers and stimulate the uptake of wind and solar energy in SA, including CSP, project funded by the UNEP at the ERC, UCT. Solar Energy Research Technology Road Map for SA, project funded by the DST with the CSIR. DEAT study into barriers to renewable energy uptake by Stellenbosch University (CRSES). Future Research Focus Implementation and monitoring of effective policy and regulation to stimulate large scale uptake of CSP in South Africa. International Partners UNEP, UNIDO. World Bank. GTZ.

25. Research Area: Resource Assessment Past & Current Research CSIR/ESKOM/DME (SABREGen) Solar Map. Review of available solar resource assessments for South Africa, Stellenbosch University CSP potential assessment for South Africa, Stellenbosch University. Feasiblity study to power the MeerKAT with solar energy, Stellenbosch University (CRSES) for the SKA Poject Office. Feasibility study to power the SKA with solar power, Stellenbosch University (CRSES) and Hatch Africa for DST/SKA Project Office. Novel solar radiation measurement technology by UKZN. Future Research Focus Verified Solar Resource Map backed up with measurements. Long term modelling of solar yields. International Partners ISE, Fraunhofer Institute. DLR, Germany. NREL, USA. University of Florida.

26. Research Area: Parabolic Troughs Past & Current Research Automated trough designed, build and commissioned at Mangosuthu University of Technology (MUT). Undergraduate student projects at the Solar Roof Laboratory, Stellenbosch University. Future Research Focus Lower cost mirrors. (Google is doing this at the moment!) Lower cost receivers Alternative heat transfer fluids. International Partners ISE, Frauenhofer Institute. DLR, Germany. NREL, USA. Schott (?). Solel (?).

27. Research Area: Heliostats Past & Current Research New configuration and design of a heliostat by ESKOM. Prototype heliostats were built and commissioned by ESKOM in association with Reutech Radar Systems, Stellenbosch. Optimisation of the heliostat field as well as the structure for ESKOM in association with Stellenbosch University (CRSES). Target-aligned heliostat built and tested by CSIR for Solar Gas Turbine project. Future Research Focus Structural optimisation of pedestal and supporting structures. Novel focussing mechanism of mirror. Alternative concepts and configurations. International Partners DLR, Germany. NREL, USA. eSOLAR (?).

28. Research Area: Solar Gas Turbines Past & Current Research Development of a solar driven gas turbine engine at the CSIR in collaboration with Stellenbosch University. SunSPOT hybrid power station, Stellenbosch University. Future Research Focus Cost optimisation. Hybrid operation. International Partners DLR, Germany. Turbec, Italy

29. Research Area: Energy Storage Past & Current Research Salt storage on 100 MWe CSP plant, ESKOM. Storage for solar gas turbine project, CSIR. Using locally sourced materials for thermal storage, ongoing research project at Stellenbosch University. Future Research Focus Cost efficient storage mediums. Phase change materials. High temperature thermal storage. Alternative concepts. International Partners DLR, Germany. NREL, USA. Abengoa Solar, Spain. Solar Institute Julich, Germany.

30. Research Area: Dish Stirling Past & Current Research ESKOM installed and operated a 25 kW Dish Stirling at the DBSA. System donated to UKZN, may be installed in two years time at the Westville (?) campus. Future Research Focus Reliable, low maintenance Stirling engine.

31. Key National Initiatives DST funded study: Prepare a Solar Energy Technology Roadmap. Centre of Competency in Solar Energy: Develop business and implementation plan. Main contract placed with CSIR in consultation with various stakeholders and service providers. SANERI (soon to become SANEDI) Renewable Energy Centre for Research and Development (RECORD) Sub-Centres in SWH (TUT) and CSP (Johannesburg) Contracted Accenture to develop a business plan for the RECORD CSIR “Solar Sandpit”, heliostat field with a central tower to test collectors, receivers and smaller systems. Gas turbine cycle tri-generation demonstration plant.

32. Key Initiatives: Eskom CSP Project Eskom, 100 MWe, CSP northwest of Upington Receiver – 540MW(t) Energy storage – 14 hours, Salt volume of 25,000 ton Plant capacity – 100MW(e), generating 24 hours over summer solstice Load factor – 68% Construction will take 3 years. Plant can be operational by 2013/14. Detailed technical risk assessment and mitigation studies have been conducted. Project put on hold by ESKOM Research Focus Heliostat design Field layout & optimisation Receiver improvements Salt circuit re-design Resource characterisation

33. SANEDI CSP Proposal Short term (1-3 years)  Establish RECORD CSP Sub-Centre, including  Administrative Centre  Solar Manufacturing Hub  Design Centre  Test Centre  Demo Plant Site secured (in conjunction with commercial partner)  Detailed Design completed and Project Finance secured for Commercial Demonstration Project Medium term (3-5 years)  Implement commercial demonstration project with commercial partner (e.g. Abengoa Solar, E-Solar, Eskom, Sasol)  Establish manufacturing capacity in SA to support demo and future projects (with potential partners such as IDC) Long term (> 5 years) Establish rollout programme for 1000 MW by 2021  Conservative target, will be stepped up, depending on REFIT availability

34. Proposed Solar Hub for South Africa Administrative Centre Solar Manufacturing Centre Solar Test Facility Possible Demo Site Design Centre

35. Functional Areas of Key Components of Hub Administrative Centre  Based in Sandton, Johannesburg  Will be nerve centre of Hub, detailing strategy and monitoring performance of spokes  Fund-raising role  Project finance (design and acquisition) Solar Manufacturing Centre  Site located near Johannesburg (~3 ha)  Could be used to train technical staff to manufacture, assemble and maintain  CSP components, including heliostats  Solar water heating components (collectors and tanks)  PV module assembly Solar Design Centre  Based at University of Stellenbosch  Will develop prototypes of new components  Will do tests and analysis of systems to be introduced Solar Test Centre  Located in Upington (near Demo Plant site)  Will be used to conduct field trials of various CSP systems, including new components developed by Design Centre Demo Plant Site  Will be sited based on developer involved  Will be commercial from day of commissioning  Will transfer components from Test Centre to Demo Plant Site, once all tests have been completed

36. Proposed Demonstration Project 100 – 200 MWe Central Receiver technology, with adequate storage for 24 hrs generation in summer months Power to be fed into national grid, at REFIT rates Strong commercial focus, with only 25% equity in public hands (mainly through SANEDI, but possibly also CEF, IDC) Big focus on local employment creation opportunities, with regional training centres to be introduced over time

37. Q&A Acknowledgements  Prof Wikus van Niekerk (University of Stellenbosch)  Dr Louis van Heerden (Abengoa Solar)