ENERGY STORAGE COULD BECOME A FUTURE INDUSTRY IN SOUTH AFRICA Release of the US Trade and Development Agency sponsored Energy Storage for South Africa study 17 August 2017 DRAFT
PROGRAM • WELCOME • KEY NOTE – Lizeka Matshekga (IDC Divisional Executive for Agro, Infrastructure and New Industries) • KEY NOTE – Jacob Flewelling – USDTA • PRESENTATION • Overview of USTDA study content – Bertie Strydom (IDC Senior Project Development Manager) • Energy storage perspective by ESKOM – Sumaya Nassiep (Acting General Manager – Eskom Research, Testing and Development) • Energy storage perspective by City of Joburg – Paul Vermeulen (Manager DSM and SSM) • QUESTIONS • CONCLUSION REMARKS AND THANKS • NETWORKING 2 2
OVERVIEW OF STUDY OUTCOME Release of the US Trade and Development Agency sponsored Energy Storage for South Africa study 17 August 2017 DRAFT
CONTENT Background • Global market and trends • Energy storage use cases • Technology landscape • Economics for energy storage • Financial considerations • Environmental perspective • Regulatory perspective • Way forward • 4 4
BACKGROUND DRAFT
BACKGROUND Source - EPRI 6 6
BACKGROUND Source - EPRI 7 7
BACKGROUND Positioning of Energy Storage SOURCE : IRENA ROADMAP REPORT 8 8
ENERGY STORAGE MARKET DRAFT
BACKGROUND Energy Storage is globally considered the new wave in • the energy sector. According to Bloomberg 45 GW/81 GWh of distributed • or advanced stationary energy storage will be installed by 2024 (excluding pumped hydro and electric vehicles). The top five markets are Japan, India, the United • States, China, and Europe. They represent 71% of the global total in 2024 for storage installed. Between 2016 and 2024, some $44bn is expected to be • invested in storage. 10 10
CUMULATIVE INSTALLED STATIONARY ENERGY STORAGE BY MAJOR REGION 11 11
CUMULATIVE STATIONARY MARKET DEPLOYMENT IN KEY AREAS (GW) 12 12
CUMULATIVE STATIONARY MARKET DEPLOYMENT IN KEY AREAS (GWh) 13 13
ANNUAL STATIONARY NEW BUILD (GW) 14 14
ANNUAL STATIONARY NEW BUILD (GWh) 15 15
ANNUAL STATIONARY DEMAND COMPARED TO OTHER APPLICATIONS (GWh) 16 16
STATIONARY ENERGY STORAGE USE CASES DRAFT
ENERGY STORAGE OPTIONS Power-to-Power: A process of converting electrical energy from a power network into a form that can be stored for converting back to electrical energy when needed with as low as possible energy losses due to inefficiencies. Power-to-Heat: A process where electricity is used to generate heat for consumption at a later time Power-to-Gas: A process where electricity is used to produce a gas such as hydrogen. The hydrogen can then be used as a fuel or to produce electricity at a later stage. 18 18
POWER TO POWER – USE CASES The USTDA study only considered stationary power-to-power market 19 19
POWER TO HEAT – USE CASES Comfort Industrial Heat Heat Space Process heat heating (water) Process heat Water (non-water, heating smelters) Still to be analyzed 20 20
POWER TO GAS/LIQUIDS – USE CASES Chemical Fuels Feed stocks H2 as Power-to-Gas chemical (CH4) feedstock Power-to- CO2 as Liquids feedstock (CH3OH, -CH-) H2 as fuel Still to be analyzed 21 21
FORECAST : STATIONARY POWER TO POWER USE CASES (GW) 22 22
FORECAST : STATIONARY POWER TO POWER (GWH) 23 23
CURRENT SA STORAGE INITIATIVE CONTEXT DRAFT
OPPORTUNITIES FOR SOUTH AFRICA Energy Storage could unlock opportunities in: � Mining and Beneficiation � Research and Development � Commercial exploitation � Local Industry Development � Developmental Impact � Global market player aspirations 25 25
INDUSTRY DEVELOPMENT STRATEGY ROADMAP 6 1 SA MARKET DEVELOPMENT OF OPPORTUNITIES / REGULATORY PRIORITIZATION FRAMEWORK 6 8 4 6 1 FORM INDUSTRY CREATE BROAD IDENTIFY DEVELOPMENT INDEPENDENTLY AWARENESS OF DEVELOPMENT OF SA ENERGY ALTERNATIVES TO CREATE SA VALUE PARTNERSHIPS ASSESS THE VALUE THE ROLE AND IMPLEMENTATION FULL SCALE STORAGE USE CASE EACH OF THE ENERY PROPOSITION FOR (IDC, SANEDI, OF STORAGE FOR VALUE FUNCTION AND SUPPORT IMPLEMENTATION DEVELOPMENT STORAGE USE ENERGY STORAGE SAWEA, SAPVIA EACH USE CASE OF ENERGY PROGRAMME CASES OTHER) STORAGE 7 4 5 2 IDENTIFY SUITABLE FILTER FOR SHORT PREFERRED ESTABLISH TECHNOLOGIES LIST OF SUITABLE TECHNOLOGY GLOBAL TECHNO- INDUSTRY CRITICAL STAKEHOLDER AGAINST USE CASES TECHNOLOGIES SOLUTIONS BASED PILOT PROJECTS ECONOMIC STUDY SUCCESS FACTORS FORUM (SUPPLY AND CONFORMING TO ON LOCALIZATION DEMAND) SA's NEEDS OPPORTUNITIES 5 3 IDENTIFY IDENTIFY CURRENT IDENTIFY SA ENERGY STORAGE POTENTIAL TECHNOLOGY COMPETITIVE VALUE CHAIN LOCALIZATION/ PROVIDERS AND ADVANTAGES FOR ANALYSIS DOMESTICATION ROLE PLAYERS LOCALIZATION PARTNERSHIPS 5 CRITICAL LOCAL MINERAL RESOURCE COMPONENT MANUFACTURING / BENEFICIATION / DEVELOPMENT / ASSEMBLY SUPPLY / R&D SUPPLY / R&D 3 Work package number Task already commenced 18 months 26 26
FUNDAMENTAL PRINCIPLES � Partnering � Market (use cases) � Technology � Value chains � Preferred technologies and partnerships � Value proposition/critical success factors � Regulatory/support framework and/or incentives � Pilot projects / “quick wins” � Full scale implementation 27 27
PARTNERING – STEERING COMMITTEE • SANEDI – South African National Energy Development Institute • SAWEA – South African Wind Energy Association • SAPVIA – South African Photovoltaic Industry Association • Eskom Research, Testing and Development • CSIR –Council for Scientific and Industrial Research • DST – Department of Science and Technology • The DTI - Department of Trade and Industry • IPP Office – Independent Power Procurement Office • EIUG – Energy Intensive User Group • Metros – City of Jo’burg and City of Cape Town • Close co-operation with DOE – Department of Energy 28 28
TECHNOLOGY • The U.S. Trade and Development Agency (USTDA), an independent U.S. Government foreign assistance agency sponsored an Energy Storage the techno- economic assessment • Parsons Inc., an architectural/engineering firm in the USA with experience in renewable energy and energy storage technologies, was appointed to perform the assessment. • The team, which comprises experienced consultants from the US and SA, collaborated with the University of Stellenbosch and Gibb Engineering and Architecture as their local partners. 29 29
STUDY CONTENT • The techno-economic study is completed, released today and outputs consist of the following: � Technology assessment � Economic assessment � Financial assessment � Developmental impact (high level) � Environmental Impact assessment � Legal and Regulatory assessment � Proposed way forward • Objective : Stimulated engagement for development of energy storage industry and projects in South Africa 30 30
FOCUS TO DATE 6 1 SA MARKET DEVELOPMENT OF OPPORTUNITIES / REGULATORY PRIORITIZATION FRAMEWORK 6 8 4 6 1 FORM INDUSTRY CREATE BROAD IDENTIFY DEVELOPMENT INDEPENDENTLY AWARENESS OF DEVELOPMENT OF SA ENERGY ALTERNATIVES TO CREATE SA VALUE PARTNERSHIPS ASSESS THE VALUE THE ROLE AND IMPLEMENTATION FULL SCALE STORAGE USE CASE EACH OF THE ENERY PROPOSITION FOR (IDC, SANEDI, OF STORAGE FOR VALUE FUNCTION AND SUPPORT IMPLEMENTATION DEVELOPMENT STORAGE USE ENERGY STORAGE SAWEA, SAPVIA EACH USE CASE OF ENERGY PROGRAMME CASES OTHER) STORAGE 7 4 5 2 IDENTIFY SUITABLE FILTER FOR SHORT PREFERRED ESTABLISH TECHNOLOGIES LIST OF SUITABLE TECHNOLOGY GLOBAL TECHNO- INDUSTRY CRITICAL STAKEHOLDER AGAINST USE CASES TECHNOLOGIES SOLUTIONS BASED PILOT PROJECTS ECONOMIC STUDY SUCCESS FACTORS FORUM (SUPPLY AND CONFORMING TO ON LOCALIZATION DEMAND) SA's NEEDS OPPORTUNITIES 5 3 IDENTIFY IDENTIFY CURRENT IDENTIFY SA ENERGY STORAGE POTENTIAL TECHNOLOGY COMPETITIVE VALUE CHAIN LOCALIZATION/ PROVIDERS AND ADVANTAGES FOR ANALYSIS DOMESTICATION ROLE PLAYERS LOCALIZATION PARTNERSHIPS 5 CRITICAL LOCAL MINERAL RESOURCE COMPONENT MANUFACTURING / BENEFICIATION / DEVELOPMENT / ASSEMBLY SUPPLY / R&D SUPPLY / R&D 3 Work package number Task already commenced 18 months 31 31
TECHNOLOGY ASSESSMENT DRAFT
STORAGE APPLICATIONS VERSUS TECHNOLOGY 33 33
MAIN ELEMENTS OF ESS Boundary of Energy Storage System ESS DATA Grid Monitoring Management and Control System Balance of Plant Systems l o r Required Power t n o C & ESS State & g Conditioning & n i r o t Environmental i n Monitoring & Control o M Control Battery Management System M o n i t o r i n Battery System g Power transfer & & C o converter state n t r o l Comprised of packs (strings) of modules Power Conversion containing cells and includes pack, module Equipment POWER and cell management systems POWER POWER GRID Transformer POWER 34 34
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