AFRICAN UTILITY WEEKAFRICAN UTILITY WEEK16-19 OF MAY 200516-19 OF MAY 2005

RENEWABLE ENERGY RENEWABLE ENERGY SOURCES AND INTEGRATION SOURCES AND INTEGRATION OF GENERATION PROCESSESOF GENERATION PROCESSES

Hermann OelsnerDARLING INDEPENDENT POWER PRODUCER

““GLOBAL OVERSHOOT”GLOBAL OVERSHOOT”

Recent WWF REPORT shows that humans are consuming 21% more Recent WWF REPORT shows that humans are consuming 21% more natural resources than the Earth can producenatural resources than the Earth can produce

The Energy Footprint, dominated by fossil fuels was the fastest-growing The Energy Footprint, dominated by fossil fuels was the fastest-growing component of the global ecological footprint which increased by 700% component of the global ecological footprint which increased by 700% between 1961 and 2001between 1961 and 2001

Compare Fossil Fuel with Renewable Compare Fossil Fuel with Renewable Energy ResourcesEnergy Resources

Myth No. 1: Fossil fuels are inherently more economical,Myth No. 1: Fossil fuels are inherently more economical, is based on an incomplete analysis of the nuclear/fossil fuel complex is based on an incomplete analysis of the nuclear/fossil fuel complex

using calculations that cannot be applied to RE resourcesusing calculations that cannot be applied to RE resources is assessed solely on cost comparison between isolated generation is assessed solely on cost comparison between isolated generation

technologiestechnologies ignores what is economically relevant prior and following the ignores what is economically relevant prior and following the

generation process generation process acknowledges negative environmental consequences of using acknowledges negative environmental consequences of using

fossil/nuclear sources but fails to fully account for the external costsfossil/nuclear sources but fails to fully account for the external costs Conventional energy subsidies currently amount to $300 billion/a Conventional energy subsidies currently amount to $300 billion/a Myth No. 2: RE cannot supply all our energy needs on earth Myth No. 2: RE cannot supply all our energy needs on earth Every year the sun delivers 15 000 time more energy than is consumed Every year the sun delivers 15 000 time more energy than is consumed

by the entire human population:by the entire human population:

35 000 000 000 000 000 kWh/a35 000 000 000 000 000 kWh/a

Crude Oil Supply ChainCrude Oil Supply Chain

1. Extraction,1. Extraction, high-tech, capital extensive – especially secondary by high-tech, capital extensive – especially secondary by flooding with water, polymers, carbon dioxide, corrosive water and gas flooding with water, polymers, carbon dioxide, corrosive water and gas injection injection

2. Transport2. Transport over thousands of km via energy-hungry, accident prone over thousands of km via energy-hungry, accident prone pipelines, pumping stations, tankers and tanker trains to:pipelines, pumping stations, tankers and tanker trains to:

3. Refineries3. Refineries crack oil by fractional distillation to fuels and feedstock for crack oil by fractional distillation to fuels and feedstock for chemical industry causing more environmental problems than extraction chemical industry causing more environmental problems than extraction like emissions of hydrocarbons, sulphur, nitrogen, carbon monoxides, like emissions of hydrocarbons, sulphur, nitrogen, carbon monoxides, liquid and solid waste, which requires: liquid and solid waste, which requires:

4. Waste Disposal4. Waste Disposal 5. Storage5. Storage in huge tank farms (pollution and fire hazards)in huge tank farms (pollution and fire hazards) 6. Shipping6. Shipping to the end user destination to the end user destination 7. Fuel combustion7. Fuel combustion in engines, furnaces, power stations in engines, furnaces, power stations

Natural Gas Supply ChainNatural Gas Supply Chain

1. Extraction,1. Extraction, complicated process requires purification and complicated process requires purification and condensing condensing

2. Liquidification2. Liquidification requires a process that uses temperatures of -requires a process that uses temperatures of -162 deg Celsius, consuming enormous quantities of energy to 162 deg Celsius, consuming enormous quantities of energy to achieve 600-fold volume reduction for transportachieve 600-fold volume reduction for transport

3. Transport3. Transport over thousands of km through pipelines and over thousands of km through pipelines and compressors or by super tankercompressors or by super tanker

4. Storage4. Storage tankstanks are costly to construct, requiring good insulation are costly to construct, requiring good insulation to maintain low temperatures and energy intensive cooling systems to maintain low temperatures and energy intensive cooling systems have to be maintainedhave to be maintained

5. Distribution 5. Distribution through regional pipelines or in gas tanks to the through regional pipelines or in gas tanks to the end user destination end user destination

6. Fuel combustion6. Fuel combustion in engines, furnaces, power stations in engines, furnaces, power stations

Coal Supply ChainCoal Supply Chain

1. Extraction,1. Extraction, open cast and shaft mining ofopen cast and shaft mining of coal deposits differ coal deposits differ greatly in their water and sulphur content and are often mixed with greatly in their water and sulphur content and are often mixed with other materialother material

2. Refining 2. Refining requires grading and removal of foreign bodies followed requires grading and removal of foreign bodies followed by crushing and homogenisation, crude and fine sorting and by crushing and homogenisation, crude and fine sorting and dehydration. Finally it is turned into briquettes, power station coal or dehydration. Finally it is turned into briquettes, power station coal or coke for use in blast furnacescoke for use in blast furnaces

3. Waste Disposal 3. Waste Disposal processes are sludge thickening, mineral processes are sludge thickening, mineral enrichment (flotation), flushing and filtering. High energy consumption enrichment (flotation), flushing and filtering. High energy consumption during refining and waste disposal and extensive water pollution resultsduring refining and waste disposal and extensive water pollution results

4. Shipping4. Shipping to the end user destination to the end user destination 5. Fuel combustion5. Fuel combustion in engines, furnaces, power stations in engines, furnaces, power stations

Nuclear Supply ChainNuclear Supply Chain

1. Extraction 1. Extraction of uranium is complicated by the danger of radiation of uranium is complicated by the danger of radiation 2. Transport2. Transport of uranium to refining plant of uranium to refining plant

3. Refining3. Refining for conversion into uranium oxide, “yellow cake” for conversion into uranium oxide, “yellow cake”

4. Transport 4. Transport to processing plantto processing plant

5. Process5. Process of production of uranium hexafluorideof production of uranium hexafluoride6. Transport6. Transport to uranium enrichment plant to uranium enrichment plant 7. Enrichment 7. Enrichment where the actual fuel rods are producedwhere the actual fuel rods are produced8. Shipping 8. Shipping to nuclear power stationto nuclear power station 9. Power generation9. Power generation

Biomass/Biofuel Supply ChainBiomass/Biofuel Supply Chain

1. Cultivation 1. Cultivation of energy and resource-yielding cropsof energy and resource-yielding crops 2. Harvest 2. Harvest 3. Transport 3. Transport to preparation plant, oil presses or alternatively to preparation plant, oil presses or alternatively

direct to a power stationdirect to a power station 4. Preparation 4. Preparation chipping or chopping up using specialised plantchipping or chopping up using specialised plant

f.i. palletising or high-temperature gasification, oil extractionf.i. palletising or high-temperature gasification, oil extraction 5. Nutrient return 5. Nutrient return taken from fields and woodlandstaken from fields and woodlands 6. Transportation 6. Transportation of gasified biomass or biofuel to power of gasified biomass or biofuel to power

stationsstations 7. Power generation7. Power generation

Biogas Supply ChainBiogas Supply Chain

1. Collection1. Collection of organic waste of organic waste

2. Transport 2. Transport to fermentation tanks to fermentation tanks

3. Drawing off and Transport 3. Drawing off and Transport to to power stationspower stations

4. Power generation4. Power generation

One Link Supply ChainsOne Link Supply Chains

Electricity chain Electricity chain begins at the power begins at the power stationstation. Only . Only oneone link in the chain. link in the chain.

Solar PowerSolar Power Ocean PowerOcean PowerHydro PowerHydro PowerWind PowerWind Power

Wind is the preferred optionWind is the preferred option

Wind the preferred optionWind the preferred option

Energy Pay-back periodEnergy Pay-back period

Job Creation 10 – 4 - 1Job Creation 10 – 4 - 1

Reduction in Wind Turbine PricesReduction in Wind Turbine Prices

Foreign Investment and Export PotentialForeign Investment and Export Potential

Clean Development Mechanism (CDM)Clean Development Mechanism (CDM)

Embedded generationEmbedded generation

Advantages over Advantages over Centralised GenerationCentralised Generation::

• Delivery in closer proximity Delivery in closer proximity to the user reducing electrical to the user reducing electrical losseslosses

• Delivery at or closer to the Delivery at or closer to the correct voltage for correct voltage for distributiondistribution

Economic Benefits Economic Benefits

Pollution related external costs from fossil Pollution related external costs from fossil fuel power generation are avoidedfuel power generation are avoided

External Costs are the costs to human health and External Costs are the costs to human health and the environment, which are not reflected in the the environment, which are not reflected in the price of electricity and result in:price of electricity and result in:• Higher health service costsHigher health service costs• Increased cost of food and farm productsIncreased cost of food and farm products

Less electricity is lost in transmission distribution Less electricity is lost in transmission distribution resulting in less hidden external costsresulting in less hidden external costs

Strategic BenefitsStrategic Benefits

Prevent Power CutsPrevent Power Cuts

Central System FaultsCentral System Faults

Earth QuakesEarth Quakes

War and TerrorWar and Terror

Short lead timesShort lead times

West Coast Energy MixWest Coast Energy Mix

WEST COASTWEST COAST

Wind EnergyWind Energy

Wave EnergyWave Energy

Solar thermalSolar thermal

BiomassBiomass

Waste to powerWaste to power

Coal firedCoal fired

Gas off SaldanhaGas off Saldanha

NuclearNuclear

HydroHydro

Final QuestionFinal Question

What happens if the wind does not blow?What happens if the wind does not blow?

Wind power is not replacing generation capacity but Wind power is not replacing generation capacity but generation of electricity energygeneration of electricity energy

Back-up supply needed from central power stations, Back-up supply needed from central power stations, mostly base load generation in off-peak periodsmostly base load generation in off-peak periods

99% availability, predictable on 24 hour basis99% availability, predictable on 24 hour basis Generally accepted penetration of 20% into grid is Generally accepted penetration of 20% into grid is

regarded a safe assumptionregarded a safe assumption Denmark plans are for 50% by 2030Denmark plans are for 50% by 2030 In 100 years time the wind will still blowIn 100 years time the wind will still blow

RES are free, clean, safe and sustainableRES are free, clean, safe and sustainable

Thank Thank You You