Renewable Energy

The Reisa Kathu Solar PV installation designed by Zutari

Resource Plan 2019 presents a realistic forecast of the future energy mix, which includes the evolving renewables segment. Given the abundance of South Africa’s coal reserves, though, and the major investments that have been made in newer power stations like Kusile and Medupi, the plan clearly states that thermal energy will be with us for decades.

A similar scenario exists for other developed and developing nations that have existing large-scale thermal power capacity – prime examples being the USA and India. (As an aside, the latter remains a major coal export market for South Africa.) However, most countries, including South Africa, remain committed to the Paris Climate Agreement signed in 2016 and acknowledge the need to transition to greener power sources. Alongside renewables, these include natural gas, cogeneration, hydroelectric power and hydrogen.

“In addition to climate change concerns, the spiralling cost of fossil-fuel-based energy is another factor motivating the switch to renewables. Solar and wind plants are prime examples, since they are much more affordable power generators,” Foster explains.

For South Africa, renewable and alternative forms of power are part of the medium- to

longer-term solution to the current energy crisis, as Eskom struggles to maintain and run its ageing coal-fired plants and South Africa’s distribution networks. hybrid power “As power generation experts, our role is to work with public and private sector clients to manage and build existing and future

solution

capacity via a multiplatform approach,” Foster continues. “The transition from conventional coal-fired energy to a wider

Globally, growth in the renewable energy market is rapidly gaining momentum. In South Africa’s case, however, there’s a greater sense of urgency, as power utilities and municipalities struggle to meet the growing energy gap. Janice Foster, technical director: Energy Generation at Zutari, expands on key regional trends.

By Alastair Currie

South Africa’s Integrated

application of renewable power is a complex process. It must be able to integrate and deliver consistently in terms of national baseload and peak demand.”

RMIPPPP opportunities

The Department of Mineral Resources & Energy’s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) will certainly help to simulate activity in that direction. To meet South Africa’s power gap, the RMIPPPP makes provision for the purchase of some 2 000 MW from the open market for activation during 2022.

Janice Foster, technical director: Energy Generation, Zutari

“While not exclusively focused on renewables – gas and cogeneration being among the alternative options – the RMIPPPP could potentially be a game changer for the South African grid in terms of how power is supplied,” says Foster.

Zutari (previously trading as Aurecon) has extensive experience in renewable energy projects. This is underscored by the fact that Zutari has played a role in approximately 70% of the solar and wind projects awarded so far in terms of South Africa’s Renewable Energy IPP Procurement Programme (REIPPPP). This includes present REIPPPP Round 4 projects being installed.

Reisa Kathu solar project

One of South Africa’s first utility-scale solar PV projects was the 75 MW Renewable Energy Investments South Africa (Reisa) Kathu development in the Northern Cape. Zutari was appointed as the owner’s engineer in 2012 and was responsible for construction, commissioning supervision and the provision of technical assistance during commercial operations. The production of the first kWh took place in August 2014.

As part of its ongoing asset management support strategy, Zutari is using advanced digital diagnostics to analyse plant performance. This analysis will help further refine the return on investment model for IPPs and municipal clients.

The viability of going off the grid

For renewables investors securing Power Purchase Agreements (PPAs), the key issue is about the financial viability of their projects, whether it be a REIPPPP or RMIPPPP project. With numerous municipalities securing the right to go the renewables route, the question will be how best to make this commercially viable for all parties.

To make it attractive, investors need a realistic payback period from their PPAs. Here, the terms of the PPA period are especially important since this ultimately

The Cookhouse wind farm development

determines the tariffs charged to residential and commercial users. As a rule of thumb, a 20-year PPA is a realistic model, but each project needs its own individual assessment.

“In most instances, municipalities are unlikely to have the capital on hand to build their own renewable plants, so IPPs are the obvious choice,” Foster explains. “Here, Zutari’s power generation team works with municipalities to develop the best approach. This includes possible power studies or tariff analysis, so we can develop the best fit from a service delivery and profitability perspective. To work effectively, contractual and performance guarantees must be agreed on and adhered to.”

Storage, and more storage

The good news is that battery technology is constantly improving, and prices are dropping as technology and efficiency improve and demand continues to grow worldwide. This is opening the door to new opportunities for both utility-scale storage solutions and renewable energy projects.

“For South Africa, the roll-out of renewable energy, coupled with energy storage solutions, will take major pressure off South Africa’s coal-dominated grid and prepare the way for a carbon-free energy mix,” Foster concludes.

Zutari’s Stortemelk hydropower project