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The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP: An Eastern Cape Perspective Alistair McMaster Director: Sustainable Energy, DEDEAT Eastern Cape Province, South Africa

The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

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Page 1: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

The landscape and infrastructure for Natural Gas

Power in South Africa in regards to the IRP:

An Eastern Cape Perspective

Alistair McMaster

Director: Sustainable Energy, DEDEAT

Eastern Cape Province, South Africa

Page 2: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

THE ELECTRICITY LANDSCAPE IS CHANGING

Page 3: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

THE ELECTRICITY LANDSCAPE IS CHANGING

Page 4: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

THE ELECTRICITY LANDSCAPE IS CHANGING

Page 5: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

• What does an increasingly disrupted, dynamic demand-supply situation mean for electricity planning?

– Where possible reduce planning horizon as outer years become increasingly uncertain?

– Favour more flexible, modular generation technologies?

– Under the current South Africa system adequacy conditions, pursue quicker-build options?

– But nevertheless pursue least-cost technology options.

IMPLICATIONS FOR ELECTRICITY PLANNING

Page 6: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

NEW GENERATION PLANNING: 2018 DRAFT

Page 7: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

SA GAS SUPPLY AND UTILIZATION LANDSCAPE

• Noting that gas is likely to play an important mid-merit and peaking role, what are the locational and supply options?

• What are the time-horizons?

Page 8: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

SA GAS SUPPLY AND UTILIZATION LANDSCAPE

• Noting that gas is likely to play an important mid-merit and peaking role, what are the locational and supply options?

• What are the time-horizons?

Page 9: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

GAS OUTLOOK EC PROVINCE

Page 10: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

HOW DO WE PLAN AND PREPARE FOR A POSSIBLE FUTURE WITH NATURAL GAS?

Page 11: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

PLANNING FOR GAS TO POWER IN THE EC

Page 12: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

Third Party Offtake Requirement• Adds to business case• Key for economic growth and

transformation

Domestic, Commercial, Industrial utilisation

Local/Regional distribution

Dimensions of Preparedness for Gas to Power

Any integrated solution will require a strong socio-economic transformation overlay

What would an integrated gas to power solution look like?

Page 13: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

Hig

hlig

hts

: P

rep

arat

ion

fo

r G

as t

o P

ow

erTechnical readiness and

support for the integrated solution

Institutional readiness and support

Support for Socio-Economic Dimensions

Logistics for 3rd party offtake

SMME and Black Industrialists

Local content

Skills Development

Preparedness for Gas to Power

Creating a ready and de-risked receiving environment

Page 14: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

ADVANCING GAS READINESS AT COEGA

Project name Gas-to-Power Project

Implementing

Agent;

Partners &

Developers

• CDC (Readiness)

• DEDEAT

• Dept. of Energy (MoU)

• CEF Group (MoU)

• Private Developers

Project

Rationale; Work

Done

Extensive preliminary work to advance the

Readiness of Coega to host or locate the

Gas-to-Power Project.

The project entails the generation of close

to 3000 MW of electricity;

• identified three suitable sites within SEZ

• in close proximity to Port of Ngqura

• access to Sub-Stations and Services

Corridor

Page 15: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

Hig

hlig

hts

: P

rep

arat

ion

fo

r G

as t

o P

ow

erTechnical readiness and

support for the integrated solution

Institutional readiness and support

Support for Socio-Economic Dimensions

Logistics for 3rd party offtake

SMME and Black Industrialists

Local content

Skills Development

Preparedness for Gas to Power

Creating a ready and de-risked receiving environment

Page 16: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

VALUABLE LEARNINGS THROUGH RECENT MEGA PROJECT

Page 17: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP:

Hig

hlig

hts

: P

rep

arat

ion

fo

r G

as t

o P

ow

erTechnical readiness and

support for the integrated solution

Institutional readiness and support

Support for Socio-Economic Dimensions

Logistics for 3rd party offtake

SMME and Black Industrialists

Local content

Skills Development

Preparedness for Gas to Power

Creating a ready and de-risked receiving environment

Page 18: The landscape and infrastructure for Natural Gas Power in South … · 2019-09-02 · The landscape and infrastructure for Natural Gas Power in South Africa in regards to the IRP: