What could South Africa’s Energy future look like? Presentation at workshop hosted by Project 90 by 2030 Dr Tobias Bischof-Niemz, Head of the CSIR Energy Centre Cape Town, 27 February 2017 Dr Tobias Bischof-Niemz +27 83 403 1108 [email protected] Dr Tobias Bischof-Niemz Chief Engineer Agenda Background CSIR’s Approach and Project Team Comments on IRP Assumptions IRP Results and Least-cost Scenario Energy Sector Implications 2 World: In 2016, 124 GW of new wind and solar PV capacity installed globally Solar PV Wind Global annual new capacity in GW/yr 120 91 71 56 46 33 4 7 2000 2001 4 0 7 8 0 70 2002 9 8 2003 1 9 13 8 1 12 2004 2005 17 1 22 7 30 76 2 15 20 27 2006 2007 2008 40 31 38 Sources: GWEC; EPIA; BNEF; CSIR analysis Total South African power system (approx. 45 GW) 17 39 39 41 45 2009 2010 2011 2012 51 63 54 35 2013 2014 This is all very new: Roughly 80% of the globally existing solar PV capacity was installed during the last five years 3 70 73 7 3 57 124 2015 2016 World: Significant cost reductions materialised in the last 5-8 years Solar PV Wind Global annual new capacity in GW/yr 120 100% 91 71 56 46 33 4 7 0 4 0 7 2000 2001 8 7 0 2002 13 9 9 1 8 1 1 8 2003 2004 17 22 4 Sources: IEA; GWEC; EPIA; BNEF; CSIR analysis 17 20 27 12 2 15 2005 2006 2007 2008 39 39 41 2009 2010 2011 45 2012 70 65% 40 31 124 57 73 38 7 3 Subsidies 7 30 76 Solar PV cost Wind cost 51 35 2013 2014 63 54 Total South African power system (approx. 45 GW) 22% 2015 2016 Cost competitive South Africa: From 2013 to 2016, 3.1 GW of wind, solar PV and CSP commissioned Capacity online in MW (end of year) +1 094 3 134 +520 2 040 +1 053 1 520 5 Solar PV Wind CSP 965 960 467 Supply Sources 1 474 1 460 1 075 210 257 560 2013 2014 200 2015 2016 2017 2018 2019 Notes: RSA = Republic of South Africa. Solar PV capacity = capacity at point of common coupling. Wind includes Eskom’s Sere wind farm (100 MW) Sources: Eskom; DoE IPP Office 2020 South Africa: In 2016, almost 7 TWh electricity produced from wind, solar PV & CSP Annual energy produced in TWh 6.9 4.7 Supply Sources 2.6 Solar PV Wind CSP 2.2 2.2 3.7 1.1 0.01 0.1 2013 6 0.05 2.5 1.1 2014 0.5 2015 Notes: Wind includes Eskom’s Sere wind farm (100 MW) Sources: Eskom; DoE IPP Office 2016 2017 2018 2019 2020 2016: Wind, solar PV and CSP supplied 3% of the total RSA system load Actuals captured in wholesale market for Jan-Dec 2016 (i.e. without self-consumption of embedded plants) Annual electricity in TWh 7 231.3 3.7 (1.6%) 2.6 (1.1%) 0.5 (0.2%) 238.2 Residual Load Wind Solar PV CSP System Load (domestic and export load) Notes: Wind includes Eskom’s Sere wind farm (100 MW) Sources: Eskom; DoE IPP Office Actual tariffs: new wind/solar PV 40% cheaper than new coal in RSA Results of Department of Energy’s RE IPP Procurement Programme (REIPPPP) and Coal IPP Proc. Programme Significant reductions in actual tariffs … Actual average tariffs in R/kWh (Apr-2016-R) … have made new solar PV & wind power 40% cheaper than new coal in South Africa today Actual average tariffs in R/kWh (Apr-2016-R) -59% 5 -83% 4 -40% 3.65 3 2.18 2 1.51 1.19 1.17 1 0.87 0 Nov 2011 8 1.03 Solar PV Wind Mar 2012 Aug 2013 0.87 0.62 0.62 Solar PV IPP Wind IPP 0.62 0.69 0.62 Aug 2014 Nov 2015 Baseload Coal IPP Notes: Exchange rate of 14 USD/ZAR assumed Sources: http://www.energy.gov.za/files/renewable-energy-status-report/Market-Overview-and-Current-Levels-of-Renewable-EnergyDeployment-NERSA.pdf; http://www.saippa.org.za/Portals/24/Documents/2016/Coal%20IPP%20factsheet.pdf; http://www.ee.co.za/wpcontent/uploads/2016/10/New_Power_Generators_RSA-CSIR-14Oct2016.pdf; StatsSA on CPI; CSIR analysis Agenda Background CSIR’s Approach and Project Team Comments on IRP Assumptions IRP Results and Least-cost Scenario Energy Sector Implications 9 IRP process as described in the Department of Energy’s Draft IRP 2016 document: least-cost Base Case is derived from technical planning facts Scenario 1 Scenario 2 Constraint: RE limits Planning Facts Least Cost Base Case Constraint: Forcing in of nuclear, CSP, biogas, hydro, others Constraint: Advanced CO2 cap decline Case Cost Base Case Base Scenario 1 Base + Rxx bn/yr Scenario 2 Base + Ryy bn/yr Scenario 3 Base + Rzz bn/yr … … 1) Public consultation on costed scenarios 2) Policy adjustment of Base Case 3) Final IRP Scenario 3 11 Sources: based on Department of Energy’s Draft IRP 2016, page 7; http://www.energy.gov.za/IRP/2016/Draft-IRP-2016-Assumptions-Base-Case-and-Observations-Revision1.pdf The CSIR has embarked on power-system analyses to determine the least-cost expansion path for the South African electricity system The Integrated Resource Plan (IRP) is the expansion plan for the South African power system until 2050 • Starting point of the IRP Base Case: pure techno-economic analysis to determine least-cost way to supply electricity • Later process steps: least-cost mix can be policy adjusted to cater for aspects not captured in techno-economic model Draft IRP 2016 Base Case entails a limitation: Amount of wind and solar PV capacity that the model is allowed to build per year is limited, which is neither technically nor economically justified/explained (no techno-economical reason provided) The CSIR is therefore conducting a study to determine the Least Cost electricity mix in RSA until 2050 • Majority of assumptions kept exactly as per the Draft IRP 2016 Base Case • First and most important deviation from IRP 2016: no new-build limits on renewables (wind/solar PV) • Second (smaller) deviation: costing for solar PV and wind until 2030 aligned with latest IPP tariff results • Scope of the CSIR study: purely techno-economical optimisation of the costs directly incurred in the power system Two scenarios from the Draft IRP 2016 are compared with the Least Cost case • “Draft IRP 2016 Base Case” – new coal, new nuclear • “Draft IRP 2016 Carbon Budget” – significant new nuclear • “Least Cost” – least-cost without constraints 12 An hourly capacity expansion and dispatch model (incl. unit commitment) using PLEXOS is run for all scenarios to test for technical adequacy same software platform as by Eskom/DoE for the IRP Sources: CSIR analysis CSIR team has significant expertise from power system planning, system operation and grid perspective Dr Tobias Bischof-Niemz • Head of the CSIR Energy Centre • Member of the Ministerial Advisory Council on Energy (MACE) • Member of IRP2010/2013 team at Eskom, energy planning in Europe for large utilities Robbie van Heerden • Senior Specialist: Energy Systems (CSIR Energy Centre) • Former General Manager and long-time head of System Operations at Eskom Crescent Mushwana 14 • Research Group Leader: Energy Systems (CSIR Energy Centre) • Former Chief Engineer at Eskom strategic transmission grid planning Joanne Calitz • Senior Engineer: Energy Planning (CSIR Energy Centre) • Previously with Eskom Energy Planning • Medium-Term Outlook and IRP for RSA Mamahloko Senatla • Researcher: Energy Planning (CSIR Energy Centre) • Previously with the Energy Research Centre at University of Cape Town Jarrad Wright • Principal Engineer: Energy Planning (CSIR Energy Centre) • Commissioner: National Planning Commission (NPC) • Former Africa Manager of PLEXOS Agenda Background CSIR’s Approach and Project Team Comments on IRP Assumptions IRP Results and Least-cost Scenario Energy Sector Implications 15 Draft IRP 2016 limits the annual build-out rates for solar PV and wind The imposed new-build limits for solar PV and wind mean that the IRP model is not allowed in any given year to add more solar PV and wind capacity to the system than these limits No such limits are applied for any other technology. No techno-economical reason/justification is provided for these limits. No explanation given why the limits are constant until 2050 while the power system grows 27 Year System Peak Load in MW (as per Draft IRP) New-build limit Solar PV in MW/yr (as per Draft IRP) 2020 44 916 1 000 2.2% 1 600 3.6% 2025 51 015 1 000 2.0% 1 600 3.1% 2030 57 274 1 000 1.7% 1 600 2.8% 2035 64 169 1 000 1.6% 1 600 2.5% 2040 70 777 1 000 1.4% 1 600 2.3% 2045 78 263 1 000 1.3% 1 600 2.0% 2050 85 804 1 000 1.2% 1 600 1.9% Note: Relative new-build limit = New-build limit / system peak load Sources: IRP 2016 Draft; CSIR analysis Relative new-build limit Solar PV (derived from IRP) New-build limit Wind in MW/yr (as per Draft IRP) Relative new-build limit Wind (derived from IRP) Today: Both leading and follower countries are installing more new solar PV capacity per year than South Africa’s IRP limits for 2030/2050 Annual new solar PV capacity relative to system peak load Germany Leader Spain Italy UK Follower Australia Japan China Follower 2nd wave India South Africa 17% 10% 9% 9% RSA new-build limits in 2030 and 2050 7% 7% 6% 6% 5% 4% 4% 4% 4% 4% 3% 2% 1% 0% 2007 2% 0% 1% 0% 0% 0% 0% 2008 1% 1% 1% 0% 1% 0% 0% 0% 0% 0% 0% 0% 2009 2010 3% 3% 2% 2% 1% 2% 1% 0% 1% 0% 2011 1% 1% 1% 0% 2012 28 Sources: SolarPowerEurope; CIGRE; websites of System Operators; IRP 2016 Draft; CSIR analysis 3% 3% 2% 2% 2013 RSA’s IRP relative new-build limit decreases over time 3% 3% 3% 1% 2% 2% 2% 1% 1% 0% 1% 0% 0% 2014 2015 0% 2030 (1.7%) 2050 (1.2%) Today: Both leading and follower countries are installing more new wind capacity per year than South Africa’s IRP limits for 2030/2050 Annual new wind capacity relative to system peak load 8% Germany Leader Spain Ireland China Follower India Brazil South Africa 8% RSA new-build limits in 2030 and 2050 7% 7% 6% 6% 6% 6% 5% 5% 5% 4% 4% 3% 3% 4% 4% 2% 1% 0% 0% 2006 2% 2% 2% 2% 2% 2% 2% 2% 1% 0% 0% 2007 3% 3% 3% 2% 2% 2% 2% 2% 2% 1% 1% 2009 3% 3% 2% 0% 2011 29 Sources: GWEC; CIGRE; websites of System Operators; IRP 2016 Draft; CSIR analysis 2012 RSA’s IRP relative new-build limit decreases over time 2030 (2.8%) 2% 1% 1% 2010 3% 2013 2050 (1.9%) 2% 1% 1% 1% 0% 2008 4% 3% 3% 3% 4% 5% 5% 4% 1% 1% 0% 2014 0% 2015 0% 2016 Solar PV penetration in leading countries today is 2.5 times that of South Africa’s Draft IRP 2016 Base Case for the year 2050 Total solar PV capacity relative to system peak load 70% Germany Leader Spain Italy UK Australia Follower Japan China Follower 2nd wave India South Africa South Africa IRP 2016 Base Case 60% 50% 40% 30% 20% 10% 0% 2005 30 2010 2015 2020 2025 2030 2035 Year Sources: SolarPowerEurope; CIGRE; websites of System Operators; IRP 2016 Draft; CSIR analysis 2040 2045 2050 Wind penetration in leading countries today is 1.7-1.8 times that of South Africa’s Draft IRP 2016 Base Case for the year 2050 Total wind capacity relative to system peak load 70% Germany Leader Spain Ireland China Follower India Brazil South Africa South Africa IRP 2016 Base Case 60% 50% 40% 30% 20% 10% 0% 2005 31 2010 2015 2020 2025 2030 Year Sources: GWEC; CIGRE; websites of System Operators; IRP 2016 Draft; CSIR analysis 2035 2040 2045 2050 Agenda Background CSIR’s Approach and Project Team Comments on IRP Assumptions IRP Results and Least-cost Scenario Energy Sector Implications 32 Inputs as per IRP 2016: Key resulting LCOE from cost assumptions for new supply technologies Lifetime cost per energy unit1 (LCOE) in R/kWh (Apr-2016-R) 1.00 1.09 Fixed (Capital, O&M) 2.89 1.41 1.41 Variable (Fuel) 0.62 Solar PV Wind Baseload Coal (PF) Nuclear Gas (CCGT) Mid-merit Coal Gas (OCGT) Diesel (OCGT) 0 1 000 0 400 1 000 600 600 82% 90% 50% 50% 10% 10% 0 Assumed capacity factor2 38 Same assumptions used as per IRP 2016 0.62 CO2 in kg/MWh 1 3.69 Lifetime cost per energy unit is only presented for brevity. The model inherently includes the specific cost structures of each technology i.e. capex, Fixed O&M, variable O&M, fuel costs etc. Changing full-load hours for new-build options drastically changes the fixed cost components per kWh (lower full-load hours higher capital costs and fixed O&M costs per kWh); Assumptions: Average efficiency for CCGT = 55%, OCGT = 35%; nuclear = 33%; IRP costs from Jan-2012 escalated to May-2016 with CPI; assumed EPC CAPEX inflated by 10% to convert EPC/LCOE into tariff; Sources: IRP 2013 Update; Doe IPP Office; StatsSA for CPI; Eskom financial reports for coal/diesel fuel cost; EE Publishers for Medupi/Kusile; Rosatom for nuclear capex; CSIR analysis 2 Draft IRP 2016 Base Case is a mix of roughly 1/3 coal, nuclear, RE each As per Draft IRP 2016 Draft IRP 2016 Base Case Total electricity produced in TWh/yr 550 523 500 431 450 22 400 13 36 300 250 66 344 350 248 17 200 23 13 33 34 35 15 28 (5%) 93 (18%) 39 (7%) 33 (6%) 165 (32%) 150 100 207 235 229 2030 2040 50 0 2016 51 Sources: DoE Draft IRP 2016; CSIR analysis 159 (30%) More stringent 2050 carbon limits Solar PV Wind Gas (CCGT) Nuclear CSP Peaking Hydro+PS Coal Draft IRP 2016 Carbon Budget case: 40% nuclear energy share by 2050 As per Draft IRP 2016 Draft IRP 2016 Base Case Draft IRP 2016 Carbon Budget Total electricity produced in TWh/yr Total electricity produced in TWh/yr 550 523 500 431 450 22 400 350 13 36 300 250 66 344 248 17 200 23 13 33 34 35 550 28 (5%) 93 (18%) 39 (7%) 33 (6%) 165 (32%) 15 44 (8%) 500 433 450 400 345 350 23 300 250 63 248 17 15 23 235 229 159 (30%) 50 0 2016 2030 2040 52 Sources: DoE Draft IRP 2016; CSIR analysis 2050 33 29 206 (39%) 134 207 100 161 50 More stringent carbon limits 63 (12%) 35 (7%) 103 57 150 207 109 (21%) 39 200 150 100 525 63 (12%) 85 0 2016 2030 2040 2050 No RE limits, reduced wind/solar PV costing, warm water demand flexibility Solar PV Wind Gas (CCGT) Nuclear CSP Peaking Hydro+PS Coal Least Cost case is largely based on wind and solar PV As per Draft IRP 2016 Draft IRP 2016 Base Case Draft IRP 2016 Carbon Budget Total electricity produced in TWh/yr Total electricity produced in TWh/yr 550 523 500 431 450 22 400 350 13 36 300 250 66 344 248 17 200 23 13 33 34 35 165 (32%) 15 44 (8%) 500 433 450 345 350 23 300 63 248 17 15 23 57 150 207 235 229 159 (30%) 50 0 2016 2030 2040 53 Sources: DoE Draft IRP 2016; CSIR analysis 2050 207 2030 2040 17 22 15 150 207 212 50 63 (12%) 0 49 248 200 100 85 35 300 250 87 346 350 161 50 2016 400 206 (39%) 134 100 More stringent carbon limits 33 29 130 (25%) 433 450 63 (12%) 35 (7%) 103 527 500 109 (21%) 39 400 250 550 525 200 150 100 Total electricity produced in TWh/yr 550 28 (5%) 93 (18%) 39 (7%) 33 (6%) Least Cost 282 (54%) 189 15 44 (8%) 20 (4%) 36 (7%) 9 22 16 15 83 0 2050 2016 2030 2040 No RE limits, reduced wind/solar PV costing, warm water demand flexibility Solar PV Wind Gas (CCGT) Nuclear CSP Peaking Hydro+PS Coal 2050 Least Cost means no new coal and no new nuclear until 2050, instead 90 GW of wind and 70 GW of solar PV plus flexible capacities As per Draft IRP 2016 Draft IRP 2016 Base Case Total installed net capacity in GW Total installed net capacity in GW Least Cost Total installed net capacity in GW 250 250 250 200 200 200 150 100 50 51 5 3 37 111 12 85 7 21 11 12 8 17 2 6 5 8 39 33 0 2016 54 Draft IRP 2016 Carbon Budget 2030 2040 135 16 30 13 22 8 20 Note: REDZ = Renewable Energy Development Zones Current REDZ cover 7% of South Africa‘s land mass Sources: DoE Draft IRP 2016; CSIR analysis 129 100 50 51 5 3 37 25 2050 149 150 More stringent carbon limits 98 13 20 10 7 8 0 2016 2030 19 100 8 2040 33 50 8 26 10 51 5 3 37 0 2050 93 100 10 17 19 73 1 782 GW 52 150 36 34 34 178 25 22 8 Technical potential 237 in REDZ only 2016 19 16 60 22 31 2 5 5 7 2 34 19 2030 2040 No RE limits, reduced wind/solar PV costing, warm water demand flexibility Solar PV Wind Gas (CCGT) Nuclear CSP Peaking Hydro+PS Coal 37 18 5 10 2050 Plus 25 GW demand response from residential warm water provision 535 GW Areas already applied for Environmental Impact Assessments can cater for 90 / 330 wind / solar PV capacity -22 Polokwane -24 -26 Latitude All EIAs (status early 2016) Wind: 90 GW Solar PV: 330 GW Johannesburg -28 Upington All REDZ (phase 1) Bloemfontein Durban -30 Wind: 535 GW Solar PV: 1 782 GW -32 -36 16 55 Port Elizabeth Cape Town -34 18 20 22 24 26 Longitude 28 EIA: Onshore Wind EIA: Solar PV REDZ 30 32 34 Sources: https://www.csir.co.za/sites/default/files/Documents/Wind_and_PV_Aggregation_study_final_presentation_REV1.pdf; https://www.csir.co.za/sites/default/files/Documents/Wind%20and%20Solar%20PV%20Resource%20Aggregation%20Study%20for%20South%20Africa_Final%20report.pdf Draft IRP 2016 Base Case: Weekly electricity demand profile in 2050 Demand in GW Exemplary Week under Draft IRP 2016 Base Case (2050) 120 110 100 90 80 70 60 50 40 30 20 10 0 Monday Tuesday Wednesday Thursday Friday Saturday Demand 58 Sources: CSIR analysis, based on DoE‘s Draft IRP 2016 Sunday Total cost of power generation: Draft IRP 2016 Base Case R86 bn/year more expensive by 2050 than Least Cost (without cost of CO2) Total cost of power generation in bR/yr (constant 2016 Rand) 522 550 Draft IRP 2016 Base Case Draft IRP 2016 Carbon Budget Least Cost 500 450 398 +86 (+20%) 413 436 400 350 300 300 250 286 359 262 200 132 150 100 50 Note: Medium-term from 2016 to 2030 not in the main focus of a long-term IRP study and therefore only indicative. Will be investigated in more detail in a separate sub-study. 0 67 2010 Sources: CSIR analysis 2016 2020 2030 2040 518 2050 Least Cost without renewables limits is R82-86 billion/yr cheaper by 2050 than IRP 2016 Base Case and IRP 2016 Carbon Budget case As per Draft IRP 2016 Draft IRP 2016 Base Case ~525 TWh/yr Draft IRP 2016 Carbon Budget ~525 TWh/yr ~525 TWh/yr 5% 18% 8% 30% 1% 7% 70 Coal 25% 7% 4% 8% 1% 12% 32% 12% 21% 1% 6% Least Cost 2% 39% 54% 7% R522 billion/yr R518 billion/yr R436 billion/yr Ø tariff = 1.29 R/kWh Ø tariff = 1.29 R/kWh Ø tariff = 1.13 R/kWh 200 Mt/yr 100 Mt/yr 70 Mt/yr 38 bn l/yr 16 bn l/yr 9 bn l/yr Nuclear Hydro + Pumped Storage Gas (CCGT) Peaking Other Wind Note: Average tariff projections include 0.30 R/kWh for transmission, distribution and customer service (today‘s average cost for these items) CSP Solar PV Sources: Eskom on Tx, Dx cost; CSIR analysis Agenda Background CSIR’s Approach and Project Team Comments on IRP Assumptions IRP Results and Least-cost Scenario Energy Sector Implications 72 South Africa’s energy system relies on domestic coal and imported oil Simplified energy-flow diagram (Sankey diagram) for South Africa in 2014 in PJ Primary Energy Conversion End Use Oil 897 Non-energy 179 Liquefaction 709 T Coal 6 200 Transport 749 E Nuclear 151 Power Plants 2 829 Electricity 700 H Renewables 661 Natural Gas 161 74 Sources: IEA; CSIR analysis Heat 1 503 Export 1 935 Today, very little sector coupling – electricity relatively easy to decarbonise, but transport and heat sector more challenging Primarily supplied by Decarbonisation potential Electricity Coal Very high RE potential RE fully cost competitive Transport Oil Liquid biofuels limited potential Needs coupling to electricity Heat Coal/biomass Electricity Biomass limited potential Needs coupling to electricity E T H 75 E Workhorses of the future energy system: solar PV and wind Solar PV and wind are the cheapest bulk energy providers Their technical potential can be considered unlimited, especially in a large country like South Africa 76 E Additional renewable electricity sources in South Africa Biogas from • Municipal solid waste • Waste water • Agricultural waste • Animal waste • Energy crops Other forms of biomass Hydro CSP (Concentrated Solar Power) Power-to-Power storage • Pumped hydro • Battery storage 77 additionally: source of CO2 T Transport sector consists of a number of sub-sectors Ground transportation of people Ground transportation of goods Aviation Shipping 78 T In-principle options to decarbonise transportation Liquid biofuels • Biodiesel • Bioethanol • Biogas E E Power-to-Gas/-Liquids • H2 • Methane • Methanol • Other liquid fuels Power-to-eMobility • Electricity 79 Sources: https://sh-gruene-partei.de/sites/sh-gruene-partei.de/files/2016-05-20_gruenstrom-enge-sande_quaschning.pdf T Hydrogen or hydro-carbons can be produced from RE electricity Inputs Electrolysis Fuel Production Outputs Renewable electricity E H2 H2 H2 Methane Methanol Other liquid fuels H2O CO2 CO2 80 Sources: CSIR Energy Centre analysis T Power-to-eMobility: battery driven for urban areas and highway overhead lines for long-distance transport of goods Electrification of passenger transport “Around the corner” (2020s will see large global uptake) Electrification of transport of goods Pilot projects 81 H Space heating/cooling and warm water largely electrified already in RSA, industrial process heat to be converted from coal to electricity Space heating/cooling Warm water 82 Industrial process heat E Electricity demand during a typical week GW 65 60 55 50 45 40 35 30 25 20 15 10 5 0 Electricity Demand Monday Tuesday Wednesday Thursday Day of the Week 83 Friday Saturday Sunday E Future energy system will be built around variability of solar PV & wind Actual scaled RSA demand & simulated 15-minute solar PV/wind power supply for week from 15-21 Aug ‘11 GW 65 60 55 50 45 40 35 30 25 20 15 10 5 0 2 1 Demand shaping 3 Biogas, hydro, CSP 2 Power-to-Power 4 Sector coupling 1 Monday 84 Sources: CSIR analysis 3 Tuesday Wednesday Excess Solar PV/Wind Residual Load (flexible power) Useful Wind Useful Solar PV Thursday Day of the week Electricity Demand Friday 4 High Renewables: energy in RSA mostly from domestic renewables Hypothetical energy-flow diagram (Sankey diagram) for South Africa in the year 20?? T Transport H2 PtL fuels H2 E Electricity Liquid biofuels CO2 H Heat 85 100% of South Africa’s energy needs could be supplied by renewables Sector coupling (electricity, transport, heat) is an essential factor for cost-efficient High Renewables Electricity will be the new primary energy source, with the bulk of the kWh coming from solar PV and wind • Biomass will supply up to its economical potential 1) heat, 2) liquid biofuels and 3) biogas (CHP) • Other flexible sources of electricity can complement variability from solar PV and wind (e.g. CSP, hydro) All residual demand will be electrified • All heat demand not met by burning biomass or CHP from biogas will be electrified (flexible demand) • Whatever transport demand that can be electrified will be electrified • Residual transport demand (aviation, trucks, sea shipping) will be supplied by biofuels/Power-to-Liquid • In addition to heat (CHP), biogas will be a source of highly flexible electricity and of CO2 (for P-t-L) With abundant, very cheap clean electricity, new demand in South Africa might be created • Seawater desalination (new flexible pumping load) to address water shortage in RSA • Export of CO2-neutral liquid fuels to less solar- and wind-endowed countries (e.g. EU) 86 Abundant wind/solar can make South Africa global leader in cost-competitive renewables energy systems Re a leboha Ha Khensa Enkosi Siyathokoza Thank you Re a leboga Ro livhuha Siyabonga 87 Note: „Thank you“ in all official languages of the Republic of South Africa Dankie
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