NB Presentation - Department Of Energy

Department of Energy (DoE)
National Electrification Indaba
Electrification & Localization
Elangeni Hotel, Durban, 15&16 March 2012
Promote interests of Members and Clients by:
> South African Association of Consulting
Engineers (SAACE) founded in 1952
> Regular liaison meetings
> Engineering comment on legislation etc
> Original membership 30 individuals
> Advisory Notes for Members and Clients
> August 2008 - SAACE transformed to
Consulting Engineers South Africa (CESA)
> New/revised contracts/forms of agreement
> Consists of 485 private CE firms – still
> A peer review and quality management
> Employing more than 22 000 people
> Seminars, workshops and conferences
> Guidelines on professional practice matters
> FIDIC (International Federation of CE Association)
Professionalism and Integrity of Members:
1. In general:
• ECSA registers professional individual engineers,
technologists etc
• CESA ‘registers’professional Consulting Engineering Firms
2. Credibility of applicants
• In business > 12 months
• Nominated & Seconded by CESA member firms
3. Ongoing requirements
• Subject to CESA Code of Conduct (includes BIMS)
• Ownership/principals > 50% Professional Engineers/Technologists
• Primary work (Consulting Engineering)
• implement and maintain a QMS
Overview of Presentation
> Challenges & Opportunities for Electrification
> Electrification & the Engineering Profession
> Engineering Contributions to SA’s Infrastructure
> How engineer’s can help South Africa
> Localization: Definition & Maximization
> Localization: CSP Example
Limited Generation Plant
(Low safety margins)
Aging Infrastructure
Infrastructure Expansion &
(Growth, job creation, carbon reduction,
localization, diversification etc)
(Generation, Transmission, Distribution)
Increasing Demand
Poverty Elevation & Growth
(3 million households not electrified)
Rapid increase in electricity cost
Sustainable Income for future
Energy Efficiency
Cost reduction & Greening
(reduced revenue from electricity sales)
Evolving Government Policy
Reform & Modernization
(IPP’s, ISMO, small scale renewable etc)
Industrialization & Job Creation
(technology transfer, industrialization & jobs)
(few opportunities for import)
Export of SA knowledge & products
Shortage of Experienced Engineers
Training Young Engineers
Aging work force
(generational knowledge transfer, greater
career opportunities & faster growth for young
engineers than in other countries)
(loss of experience, knowledge, mentorship)
Un-sustained infrastructure investment
(leads to loss of local engineering knowledge)
Limited Technology Transfer
(limited development of new engineering skills in SA)
Moral & Professional Duty to SA
Maintaining & Growing Knowledge
through sustained investment in
new technologies (Nuclear & Renewable)
Receiving Technological Knowledge
from Developed Economies &
transferring to other African nations
Role Models & Leaders in
Developing our Nation through our
Despite challenges South African Engineers, contractors and manufacturers have
delivered challenging new projects to Government in the recent past …
SA’s Engineers can bring guidance to
Government policy:
SA’s Engineers bring valuable local
knowledge to the project:
> Technical and economic assessment of existing
> Projections for infrastructure investment
> Feasibility studies
> Tender evaluations
> Localization potential & requirements
> Education policy on developing the engineering
> Training of government’s technical staff
> Regional integration
> Multi-discipline engineering services (mechanical,
electrical, structures, civil, nuclear ..)
> Local Design & Building Standards
> Local site conditions (geotechnical, seismic,
wind etc).
> Local Regulations (Building, Environmental,
Legal, Water, Electricity use etc. etc.)
> Knowledge of local construction techniques &
> Local site supervision, project management & bid
bid preparation
> Grid connections & sub-stations to Eskom Standards
> Strong ties with local construction & manufacturing
industries, government & Eskom
> Supported by robust industry institutions like CESA,
> History of successful collaboration with foreign
vendors & engineers
Localization is the transfer of new technologies from technology providers (typically
from developed countries) to local market (typically developing countries).
Complete transfer involves the knowledge to design, manufacture and install the
technology as well adapt and further develop the technology.
Localization creates jobs in design (engineering), manufacturing and construction,
thereby stimulating growth, alleviating poverty and ensuring a sustainable economy.
Technologies can be adapted and exported to other African countries. If other African
countries follow South Africa’s lead in electricity policy, with regional integration a
bigger market will form, encouraging specialization. South Africa could become a
leading exporter of technology and engineering services.
Regulation & Tender Criteria
Encouraging Technology Transfer not
only in Manufacturing but also
Policy and implementation for
providing small scale projects (own
generation, off grid etc)
Off grid small scale applications for
electrification of rural households.
Giving preference to technologies that
have a higher potential for localization
Giving preference to technologies that
have a high potential for further
Maximizing the market for
through policy certainty and assigning
enough MW to the technology to build
a local engineering & manufacturing
Offering attractive return on
investment for technology vendors to
invest in SA.
Problems with current IRP allocation & policy:
> 1000 MW allocation in IRP2010 (~100MW/ per year)
> Undersubscribed compared to wind (8400MW) and PV (8400MW)
> Allocation to sufficient to maximize localization (200MW/year required)
> Project scale could be increased to up to 250MW/plant maximize economies of scale
> Tarrifs in direct competition with cheaper PV, does not recognize CSP advantages for
energy storage (dispatchibility) and localization potential
Greater Localization Potential (up to
60% immediately, 80% long term)
Manufacturing can be implemented
in existing factories (steel & car
Larger component for local civil &
structural and mechanical
Energy storage option (base load &
Adopted by
Eskom and Sasol
Commonalities in design with
thermal power stations (power
blocks, heat exhangers etc)
Utility Scale (up to 250MW)
HTF; 4.7%
Instrumentation; 0.2%
Inter Loop Piping Installation;
Inter Loop Piping Material; 3.2%
Further development potential
SCA Foundations; 4.4%
Header Piping Installation; 2.1%
Header Piping Material; 4.5%
Metal Support Structure (incl.
Huckbolts); 24.2%
Swivel Joints assemblies; 1.7%
SF Power Supply; 0.3%
SF Cabling (Supply & Installation);
LOC, FSC & Meteo Station; 1.3%
Sensors & Pylon Cabling; 0.7%
Drive Units; 1.2%
Local O & M
Mirrors; 13.9%
SF Assembly & Erection; 10.6%
SCE Assembly Line incl. Photogr.;
Exportable to neighbouring countries
Implemented in high DNI areas
where water use will not grow
Dramatically due to low population
HCE; 17.1%
License ( Collector Drawings );
Adaptable Process heat for local 50
Electric output
Labour intensive manufacturing
Built in poor developed areas
Thermal boosting for existing coal
fired power stations
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