Transcript A leading group in renewable energies

Wind Energy in South Africa
A Vision for Development
EHN - a leading group in renewables
The EHN Group
EHN is the largest independent developer of renewable energies
in Europe and the largest constructor and operator of wind farms
in Spain
EHN - a leading group in renewables
Company mission
• EHN's mission is to become an international benchmark to
demonstrate the technical and economic viability of a sustainable
energy model
• This model should overcome the environmental and geopolitical
conflicts that are generated by the present energy system
• ... through the exploitation of clean, inexhaustible energy sources
available in all the countries on Earth
• In 2002 the “Financial Times” awarded EHN the
Prize for the Best Renewables Company in the World
EHN - a leading group in renewables
Main business areas
Power business
Business development
Biofuels business
• Process engineering
• Plant construction
and management
• Production and sale
of Biofuels:
- Biodiesel
- Bioethanol
• Hydrogen*
• Site search and
purchase
• Permit
arrangements
• Development of
wind energy
projects
Electricity generation
•
Wind
• Small hydro
• Pholtovoltaic solar
• Biomass
Services
• Civil Engineering
• Turnkey
construction
• Operation and
Maintenance
• Quality and Safety
• Puchasing &
Logistics
Industrial business
• Engineering and
design of turbines
• Production (Ingetur)
• Technology transfer
Marketing
• Sale of renewable
energy *
• Emission
certificates*
* In progress
EHN - a leading group in renewables
Shareholder structure
ACCIONA
50%
SODENA
39.58%
Corporación
Caja Navarra
10.42%
EHN - a leading group in renewables
Energy Data - Installed Capacity
(Figures at August 2004, in MW)
2,495
Other companies: 3.15
Own:
1.23
Solar: 4.38
Biomass 25
Small hydro 60
Other companies:
Wind power: 2,400
1256
29 Wind farms in operation in
Navarre, Aragon, France, Canada
and Germany totalling 1,074 MW
Own: 1,164
Energia Hydroelectrica de Navarra (EHN), founded in 1989, arose from small hydroelectric projects in the Pyrenees mountains of Spain
EHN - a leading group in renewables
Initiatives in other countries
•
Apart from France and Germany, EHN has ambitious
programmes over the next few years
• The company has operating or under construction
facilities in USA, Ireland, Australia and Canada
• China, the United Kingdom, and Slovenia are some
other preferential countries where EHN will carry out
projects
•
In other countries including South Africa EHN is paving
the way for future wind energy development
EHN - a leading group in renewables
Own turbine – Ingetur 1.5MW
• EHN has developed a turbine using in-house technology, applying
its experience in O&M to create a stronger and more durable
machine that achieves good results at low windspeeds
• It initially installed 3 prototypes and 20 units of its 1,3MW model in
its own wind farms
• In 2003 EHN commissioned its own manufacturing plant in
Navarre, through its subsidiary INGETUR.
• A total of 140 1.5MW turbines will be manufactured in 2004, and a
further 400 are planned for 2005. Annual production levels of 800
turbines are projected from 2008
The South African
Perspective
THE SOUTH AFRICAN PERSPECTIVE
EHN’s INTEREST IN SOUTH AFRICA
•
•
•
•
•
•
Positive economic growth in last decade
Stable political environment
Positive Renewable Energy Policy framework
Need to develop new power plant options
Local manufacturing capability
Depleting energy reserves coupled to
increasing demand
• Population growth trends ?
THE SOUTH AFRICAN PERSPECTIVE
SOUTH AFRICA’S ENERGY STRUCTURE
(2003 data)
coal
43,800 MW installed capacity
178,192 GWh annual production
(ESKOM)
73.2%
gas turbine
5.3%
hydroelectric
5.9%
pumped storage
3.2%
nuclear
4.1%
mothballed coal
8.1%
non-grid hydro
0.01%
wind
0.006%
THE SOUTH AFRICAN PERSPECTIVE
GRID CONNECTED WIND ENERGY
IN SOUTH AFRICA
Existing pilot projects:
• ESKOM Klipheuwel wind farm 3.16 MW
• Darling National Demonstration 5MW windfarm
- currently under development
- PPA signed with Cape Town for 1st phase
- second phase 7MW planned
Lack of experience in large-scale wind farms:
• EHN’s expertise can serve as a base for an integral wind energy
50MW pilot project
THE SOUTH AFRICAN PERSPECTIVE
CRITERIA FOR WIND ENERGY
INVESTMENT IN SOUTH AFRICA
• Regulatory framework with govt targets and a fixed price
• Long term term PPA’s with off takers
• Power wheeling agreement with Eskom
• Good wind capacity plus 30%
• CDM through bankable CER’s
• Grant funding
• Positive downstream impacts of local component manufacture,
construction, civil works, job creation and skills transfer
THE SOUTH AFRICAN PERSPECTIVE
THE REGULATORY ENVIRONMENT
South African Government Plan:
• 2004: White Paper on Renewable Energy Uptake in South Africa
• 2004: 10 000 GWh renewable energy target by 2013
of which 150 GWh could be wind derived…opportunity for 50MW wind farm.
- EHN also active in the other targeted RE areas viz. biomass, biofuel, solar, hydro
- EHN biofuel plant was commissioned this month in Spain
50MW windfarm will generate approximately 136 GWh per year, representing 0.076%
of the total annual energy production in SA. (using on a capacity factor of
approximately 30%)
• Electricity utility ESKOM and the Central Energy Fund
will play a large role in development
• The SA Wind Energy Programme, supported by the
Global Environment Facility has set the tone for widescale
use of Wind Energy
• A Designated National Authority, recently established at
the DME, will approve CDM Projects for South Africa
THE SOUTH AFRICAN PERSPECTIVE
WIND ENERGY DERIVED BENEFITS FOR
SOUTH AFRICA
• Profit from existing natural resource
• Employment linked to Sustainable Development
• Introduction of State of the Art technologies
• Black Economic Empowerment benefits
• Demonstration of SA’s commitment to the Kyoto Protocol
• Help government achieve Renewable Energy targets
• Opportunity to improve and protect our natural environment
“South Africa is globally one of the highest per capita emitters of greenhouse gases
Development imperatives mean we will double emissions over the next 15 years.
Great potential now exists for the generation of jobs and revenue through the supply
of clean and alternative energy”
- Dr Chippy Olver, Director General Environmental Affairs SA, October 2004
South Africa - A Viable Proposal
WIND ENERGY DEVELOPMENT IN SOUTH AFRICA
WIND POWER POTENTIAL IN SOUTH AFRICA
“I must state at this point that it is not EHN’s policy to embark
on small scattered wind projects. EHN would probably adopt a more flexible
approach to a first phase 50 MW pilot project in South Africa given the
complexities of the market and future growth potential in renewable energy”
• Wind resource analysis has been conducted in South Africa by Risso
of Denmark which indicated 500-1000 MW of wind energy potential
specifically in coastal areas
• EHN are currently measuring wind velocities in South Africa and have
recorded good results over the last 6 months, which will impact positively
on our business model
• EHN has set aside Euro 10M for an R&D centre on acceptance of their industrial plan
• The DME is planning to conduct wind measuring tests at 10 sites in South Africa
WIND ENERGY DEVELOPMENT IN SOUTH AFRICA
WIND POWER POTENTIAL - EVALUATION
THE FOLLOWING HAVE BEEN SOURCED/UNDERTAKEN AS PART
OF THE EVALUATION PROCESS FOR SOUTH AFRICA:
• Wind power atlas of the country (Risso)
•
•
•
•
•
•
•
Identification of Meteorological stations
Climatologic data, specifically with reference to wind regimes (SAWS)
Topographic, geographic and road mapping of the country
Electrical distribution mapping of South African network in potential pilot areas
Information on existing vegetation types
Location of existing and proposed wind power initiatives
Location of land preserves, biospheres, parks and forestry areas
WIND ENERGY DEVELOPMENT IN SOUTH AFRICA
EMISSION REDUCTION BENEFITS
Pollutants
CO2
SO2
Tonnes
50 MW
143,704
406
Tonnes
1000 MW
2,874,071
8,110
NOx
SPM
CxHy
403
21
14
8,069
4,416
277
WIND ENERGY DEVELOPMENT IN SOUTH AFRICA
THE 50 MW PILOT PROJECT
• Likely located in Western or Eastern Cape region with proven wind capacity
• Integration of local manufacturing in project development and commissioning
• EHN flexible in utilisation of our own Ingetur, Vestas or other suitable turbines
(e.g. 33 x 1.5MW Ingetur or 25 x 2MW Vestas turbines)
• PPAs signed with significant offtakers (metropoles such as Cape Town,
Port Elizabeth, Durban or Johannesburg)
• Power wheeling agreement signed with ESKOM via the national grid
• Initial R0.40c per kWh price binding offtaker in long-term PPA
• Tie-in with government mandatory target of 150 GWh for wind energy
• Priority access of wind energy to the grid with first evacuation purchase guarantee
WIND ENERGY DEVELOPMENT IN SOUTH AFRICA
GRANTS AND ASSISTANCE
• The price/kWh gap that exists between wind and conventional
generated power can be reduced through, amongst others:
- UNDP/GEF interventions including barrier removals
- DANCED support
- World Bank
- Danish mixed credit facilities (35-50% grant funding and possibility of 10 year
interest-free loans)
- German government allocation of Euro 500M for RE projects in developing
countries, of which 100M is earmarked for South Africa
- EU has set aside Euro 250M for the development of RE project in Southern African
Development Community
• EHN electricity utility ESKOM and the Central Energy
Fund will play a large role in development
• The SA Wind Energy Programme, supported by the
Global Environment Facility has set the tone for widescale
use of Wind Energy
• A Designated National Authority, recently established at
the DME, will administer the CDM for South Africa
WIND ENERGY DEVELOPMENT IN SOUTH AFRICA
BUSINESS MODEL – 50 MW Pilot Project
FOR ATTENTION: FERNANDO FERRERAS
PLEASE INCLUDE BUSINESS MODEL EX SPAIN AS PER
LISTED ASSUMPTIONS
ASSUMPTIONS:
Price 40 ZAR cents/kWh
Project Cost R430M
Prime 11%
CPI-X 3.7%
CF 31%
Corporate Tax 30%
25 Yr Depreciation
20 Yr Loan
Exchange rate 1 Euro = 8.10 ZAR
Grant funding levels Euro 0-10-15-20 million
WIND ENERGY DEVELOPMENT IN SOUTH AFRICA
REDs POLICY – RED DAY ONE IN 2005
• President announced formation of first Regional
Electricity Distributor (RED) in his State of the Nation
Address in 2004
• Target date for First RED – RED Day 1 is early 2005
• REDs will be targeted for purchase of green power
from IPPs
• Minister may impose minimum standard on RED to
ensure uptake of RE – provision contained in the Draft
Energy Bill (2004)
WIND ENERGY DEVELOPMENT IN SOUTH AFRICA
ENVIRONMENTAL IMPACT ASSESSMENTS
• Stringent EIA requirements exist in SA – the way is
being paved by SA Wind Energy Programme (UNDP/
GEF – supported) to facilitate this process
• Amendment to Environmental Conservation Act
specifies 10 MW power plants or less exempt from EIA
requirement – positive move forward
• Biospheres and other protected areas are however nogo sites for wind farms
• SA Wind Energy Programme will assist project
developers in minimising duplication of effort in
selecting suitable sites
Thank you
Stephen Mark De
Beer