1 / 17

ROLE OF NERSA IN DIVERSIFICATION OF ENERGY IN SOUTH AFRICA

ROLE OF NERSA IN DIVERSIFICATION OF ENERGY IN SOUTH AFRICA. By Andile Gxasheka. Southern Africa Biofuels Association National Stakeholders Forum 2009. 1-2 December 2009. PRESENTATION OUTLINE. Mandate of NERSA Objectives of the ERA Renewable Energy Policy

cmauzy
Télécharger la présentation

ROLE OF NERSA IN DIVERSIFICATION OF ENERGY IN SOUTH AFRICA

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ROLE OF NERSA IN DIVERSIFICATION OF ENERGY IN SOUTH AFRICA By Andile Gxasheka Southern Africa Biofuels Association National Stakeholders Forum 2009 1-2 December 2009

  2. PRESENTATION OUTLINE • Mandate of NERSA • Objectives of the ERA • Renewable Energy Policy • REFIT Phase 1 Regulatory Guidelines • REFIT Phase 1 Tariffs • Qualifying Technologies under REFIT Phase 2 • Definitions of the REFIT Phase 2 Qualifying Technologies • REFIT Phase 2: NERSA public consultation process • REFIT Financial Assumptions • REFIT Phase 2 Tariffs • Issues raised during REFIT Phase 2 Public Hearing

  3. MANDATE OF NERSA Regulate the electricity, piped-gas and petroleum pipeline industries in terms of the Electricity Regulation Act (ERA), 2006 (Act No. 4 of 2006), Gas Act, 2001 (Act No. 48 of 2001) and Petroleum Pipelines Act, 2003 (Act No. 60 of 2003).

  4. OBJECTIVES OF THE ERA • Achieve the efficient, effective, sustainable and orderly development and operation of electricity supply infrastructure in South Africa, • Promote the use of diverse energy sources and energy efficiency, • Promote competitiveness, customer and end-user choice • Facilitate a fair balance between the interests of customers and end users, licensees, investors in the electricity supply industry and the public. In terms of tariff principle the ERA prescribes that the Setting or approval of tariffs must enable efficient licensee to recover the full cost of its licensed activities, including reasonable margin of return 4

  5. RENEWABLE ENERGY POLICY • Renewable Energy is a major contributor in protecting our climate, nature and the environment as well as providing a wide range of environmental, economic and social benefits that will contribute towards long term global sustainability. • The NERSA initiated a development of the REFIT regulatory framework to promote renewable energy in South Africa and to meet the Government’s target of 10 000 GWh by 2013. • Approved technologies in REFIT Phase 1 were: • − Concentrated Solar Power with storage • − Landfill Gas • − Small Hydro • − Wind 5

  6. REFIT PHASE 1 REGULATORY GUIDELINE - 26 MAR 2009 • The main principles of the Regulatory Guidelines include: • The REFIT Qualifying Principles/technologies. • REFIT applies to new grid connected projects with capacity >= 1 MW • Renewable Energy Feed – in Tariffs. • Renewable Energy Purchasing Agency (REPA) • Term of REFIT PPA 20 years. • Annual review of the REFIT every year for the first 5-year period and every 3-year thereafter. • The MTPPP PPA be used as a basis for the REFIT PPA. • Tariffs based on the life cycle cost of electricity produced by RE facilities using financial assumptions. 6

  7. REFIT PHASE 1 REGULATORY GUIDELINE - 26 MAR 2009 (2) • The term of the Power Purchase Agreement is twenty (20) years: • This is in line with international best practices and ensures bankability of the renewable energy projects. • Clean Development Mechanism (CDM) was not included: • In the context of the number of uncertainties post 2012 the NERSA REFIT act as a “stand alone” financial instrument and is separated from third party market volatility. • IPPs to apply for CDM revenue separately, this will improve the attractiveness of the FITs. • REPA (Eskom) is the Single Buyer of electricity from REFIT IPPs • This is in line with the Cabinet Meeting statement of 5th September 2007. 7

  8. REFIT PHASE 1 TARIFFS - 26 MAR 2009 • The above tariffs are in constant Rand 2009 • Licensees awarded these tariffs will have them adjusted for inflation using CPI once per annum 8

  9. THE REFIT PHASE 2 The second phase of the REFIT includes: Development of generic Power Purchase Agreement (PPA) for renewable energy projects on the basis of the Medium Term Power Purchase Program (MTPPP) PPA Development of qualifying principles for additional commercially available RE technologies such as: biogas, biomass solid, photovoltaic, concentrated solar without storage and concentrating PV Development of the tariffs for the newly included technologies as per b) above 9

  10. QUALIFYING TECHNOLOGIES UNDER REFIT PHASE 2 • Biogas • Biomass solid • Concentrated Solar Power plant without storage • Concentrated Solar Power (Central Tower) • Photovoltaic (PV) systems (large ground- or roof-based > 1 MW) 10

  11. DEFINITIONS OF THE REFIT PHASE 2 QUALIFYING TECHNOLOGIES • Biogas can be obtained from two different forms of technologies, namely, anaerobic digestion and Landfill gas (LFG). • Biomass solid is based on 100% forest wood with no mill waste, plants and residues from agriculture as well as trees residues. It also covers power generation based on solid fuel produced as a result of physical processing of municipal waste. • Photovoltaic (PV) refers to the direct conversion of light into electricity. A PV device consisting of two semiconductor layers is used. The two layers are doped oppositely so as to create a net voltage across the terminals of the cell. 11

  12. DEFINITIONS ON THE REFIT PHASE 2 QUALIFYING TECHNOLOGIES (continue..) • Concentrated Solar Power (CSP) Central Tower uses many large, sun-tracking mirrors (heliostats) to focus sunlight to a receiver at the top of a tower. A heating transfer fluid heated in the receiver is used to generate steam which, in turn, is used in a conventional turbine-generator to produce electricity. • Concentrated Solar Power (CSP) Trough uses solar energy to generate electricity. Large fields of parabolic trough collectors supply the thermal energy used to produce steam for steam turbine power generation cycle. 12

  13. REFIT PHASE 2: NERSA PUBLIC CONSULTATION PROCESS Publication of consultation paper 20 Jul 2009 (Qualifying principles, tariffs & PPA) Public comments submission on REFIT Phase 2 20 Aug 2009 Public Hearing on qualifying technologies, tariffs & PPA 03 Sep 2009 NERSA decision of technologies and tariffs 29 Oct 2009 13

  14. REFIT FINANCIAL ASSUMPTIONS 14

  15. REFIT PHASE 2 TARIFFS 15

  16. KEY ISSUES RAISED IN REFIT PHASE 2 PUBLIC HEARING • The REFIT Guidelines together with REFIT PPA must be revised to be in line with Electricity Regulations on New Generation Capacity. • Electricity generation from based on sugar bagasse, mill waste and pulp and paper waste will be covered by separate cogeneration COFIT to be developed in the next review of the REFIT. • All garden waste, landscape waste as well as all forms of invader bush must be included under biomass solid. • The biogas definition must be expanded to include anaerobic digestion of industrial waste water sources and pineapple plant material. 16

  17. THANK YOU! Email: Andile.Gxasheka@nersa.org.za Tel: 012 4014775

More Related