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Taking action to bridge South Africa’s power gap
from IMIESA August 2022
by 3S Media
Taking action to bridge
SOUTH AFRICA’S POWER GAP
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Unveiled by President Cyril Ramaphosa on 25 July 2022, South Africa’s latest energy action plan provides a more immediate response to the country’s power crisis and opens the door for widespread private sector participation.
What was great about the President’s speech was that he has opened the energy challenge to a shared solution with opportunities for everyone to have an impact, no matter how small,” says Janice Foster, market managing director: Energy, Zutari.
A highlight of the plan is the doubling of new generation for Bid Window 6 of the Renewable Energy IPP Procurement Programme (REIPPPP) from 2 600 MW to 5 200 MW. Zutari has supported client projects in all REIPPPP bid windows to date, including the latest round.
Another significant step is removing the licensing threshold for embedded generation capacity entirely. Raising the threshold to 100 MW last year has already unlocked a pipeline of more than 80 confirmed private sector projects with a combined capacity of over 6 000 MW. “This is a significant increase in capacity for private offtakers, which we expect to see starting to come online in the coming months,” says Foster.
Priority focus
She stresses that preferred projects in Bid Window 5 should be prioritised. “These have already been awarded and in theory would be the quickest to get online if we can overcome the obstacles to those achieving financial close.” Foster adds that Bid Window 6 projects are anticipated to factor these constraints into their costing and delivery.
Another important move is the announcement of an Eskom feed-in tariff for small-scale embedded generation. “That is a real signal of incentive to Eskom’s commercial users and private residential customers that they can also contribute and support their own needs at the same time,” says Foster.
Government’s planned battery energy storage initiative to supplement Eskom’s capacity also represents a multifaceted approach to the energy crisis. “This opens up the energy storage market to private investment. The addition of battery energy storage systems will support the grid by catering for peak shaving, providing network stability,” Foster continues, adding that these systems will enable greater penetration of renewables into the future.
Janice Foster, market managing director: Energy, Zutari
An equitable transition
While the current energy crisis is the result of years of load-shedding, the situation is not unique to South Africa. “Globally, we see different parts of the world facing energy challenges that might look different but are based on some of the same fundamental issues,” she explains. These include the shift from coal-fired power plants.
“It is a global imperative for the world to reduce its reliance on carbon-intensive energy solutions. This is a problem likely to be with us for the foreseeable future. It entails both an energy security challenge and the need to reduce the carbon footprint of our energy supply,” explains Foster.
A ‘just’ energy transition is probably the most important consideration from a local perspective. “The bulk of our power supply is still coal-based. As we transition away from fossil fuels, we need to ensure there are opportunities for the participation of all stakeholders, especially the thousands employed in the coal-mining industry. Our energy crisis is a relatively solvable problem from a technical standpoint, but the number of social and institutional challenges it brings are equally, if not more, important,” concludes Foster.
EPWP candidates assist with a wiring alteration on an AMV12 switchboard control cubicle under the watchful eye of site supervisor Kaizer Sithole, at a substation in Tshwane recently refurbished by Actom Power Systems
REFURBISHING TSHWANE’S fire-damaged substations
Earlier this year, the City of Tshwane awarded two contracts worth R200 million to Actom Power Systems to revamp the Pyramid and Kentron substations following extensive fire damage. In both instances, the initial focus is on constructing new control and switchgear buildings to house the replacement equipment.
Thereafter, Power Systems will supply, install and cable up a total of 109 new 11 kV switchgear panels – 49 for Pyramid and 60 for Kentron – including associated protection schemes, a Scada overlay, and DC chargers with battery backup.
The replacement 11 kV switchboards will consist of the modern premier class AMV12 brand of switchgear developed by Actom MV Switchgear in conjunction with an international partner and now well proven in the local market.
“Impromptu repairs were carried out by the municipality to restore power supply as quickly as possible, but the longer-term security of supply shall remain compromised until permanent solutions are implemented, which is what we are doing now,” explains John McClure, GM at Power Systems.
Phased equipment upgrade
Both substations will receive a major upgrade over the three-year contract term, as annual funds are released. New outdoor equipment includes 132 kV circuit breakers, isolators, current transformers, voltage transformers and surge arrestors supplied by Actom High Voltage Equipment. In addition, the cable and cabling accessories required for the works will be sourced from Actom Electrical Products.
For both contracts, Power Systems is obligated to involve and upskill local labour under the Extended Public Works Programme and earmark sections of work for local subcontractor participation.
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