ENERGY STORAGE COULD BECOME A FUTURE INDUSTRY IN SOUTH AFRICA - - PowerPoint PPT Presentation

energy storage could become a future industry in south
SMART_READER_LITE
LIVE PREVIEW

ENERGY STORAGE COULD BECOME A FUTURE INDUSTRY IN SOUTH AFRICA - - PowerPoint PPT Presentation

ENERGY STORAGE COULD BECOME A FUTURE INDUSTRY IN SOUTH AFRICA Release of the US Trade and Development Agency sponsored Energy Storage for South Africa study 17 August 2017 DRAFT PROGRAM WELCOME KEY NOTE Lizeka Matshekga (IDC


slide-1
SLIDE 1

DRAFT

17 August 2017

ENERGY STORAGE COULD BECOME A FUTURE INDUSTRY IN SOUTH AFRICA

Release of the US Trade and Development Agency sponsored Energy Storage for South Africa study

slide-2
SLIDE 2

2

2

PROGRAM

  • WELCOME
  • KEY NOTE – Lizeka Matshekga (IDC Divisional Executive for Agro,

Infrastructure and New Industries)

  • KEY NOTE – Jacob Flewelling – USDTA
  • PRESENTATION
  • Overview of USTDA study content – Bertie Strydom (IDC Senior Project

Development Manager)

  • Energy storage perspective by ESKOM – Sumaya Nassiep (Acting

General Manager – Eskom Research, Testing and Development)

  • Energy storage perspective by City of Joburg – Paul Vermeulen

(Manager DSM and SSM)

  • QUESTIONS
  • CONCLUSION REMARKS AND THANKS
  • NETWORKING
slide-3
SLIDE 3

DRAFT

17 August 2017

OVERVIEW OF STUDY OUTCOME

Release of the US Trade and Development Agency sponsored Energy Storage for South Africa study

slide-4
SLIDE 4

4

4

CONTENT

  • Background
  • Global market and trends
  • Energy storage use cases
  • Technology landscape
  • Economics for energy storage
  • Financial considerations
  • Environmental perspective
  • Regulatory perspective
  • Way forward
slide-5
SLIDE 5

DRAFT

BACKGROUND

slide-6
SLIDE 6

6

6

BACKGROUND

Source - EPRI

slide-7
SLIDE 7

7

7

BACKGROUND

Source - EPRI

slide-8
SLIDE 8

8

8

BACKGROUND

SOURCE : IRENA ROADMAP REPORT

Positioning of Energy Storage

slide-9
SLIDE 9

DRAFT

ENERGY STORAGE MARKET

slide-10
SLIDE 10

10

10

BACKGROUND

  • Energy Storage is globally considered the new wave in

the energy sector.

  • According to Bloomberg 45 GW/81 GWh of distributed
  • r advanced stationary energy storage will be installed

by 2024 (excluding pumped hydro and electric vehicles).

  • The top five markets are Japan, India, the United

States, China, and Europe. They represent 71% of the global total in 2024 for storage installed.

  • Between 2016 and 2024, some $44bn is expected to be

invested in storage.

slide-11
SLIDE 11

11

11

CUMULATIVE INSTALLED STATIONARY ENERGY STORAGE BY MAJOR REGION

slide-12
SLIDE 12

12

12

CUMULATIVE STATIONARY MARKET DEPLOYMENT IN KEY AREAS (GW)

slide-13
SLIDE 13

13

13

CUMULATIVE STATIONARY MARKET DEPLOYMENT IN KEY AREAS (GWh)

slide-14
SLIDE 14

14

14

ANNUAL STATIONARY NEW BUILD (GW)

slide-15
SLIDE 15

15

15

ANNUAL STATIONARY NEW BUILD (GWh)

slide-16
SLIDE 16

16

16

ANNUAL STATIONARY DEMAND COMPARED TO OTHER APPLICATIONS (GWh)

slide-17
SLIDE 17

DRAFT

STATIONARY ENERGY STORAGE USE CASES

slide-18
SLIDE 18

18

18

ENERGY STORAGE OPTIONS

Power-to-Power: A process of converting electrical energy from a power network into a form that can be stored for converting back to electrical energy when needed with as low as possible energy losses due to inefficiencies. Power-to-Heat: A process where electricity is used to generate heat for consumption at a later time Power-to-Gas: A process where electricity is used to produce a gas such as hydrogen. The hydrogen can then be used as a fuel or to produce electricity at a later stage.

slide-19
SLIDE 19

19

19

POWER TO POWER – USE CASES The USTDA study only considered stationary power-to-power market

slide-20
SLIDE 20

20

20

POWER TO HEAT – USE CASES

Comfort Heat

Space heating Water heating

Industrial Heat

Process heat (water) Process heat (non-water, smelters)

Still to be analyzed

slide-21
SLIDE 21

21

21

POWER TO GAS/LIQUIDS – USE CASES

Fuels

Power-to-Gas (CH4) Power-to- Liquids (CH3OH, -CH-) H2 as fuel

Chemical Feed stocks

H2 as chemical feedstock CO2 as feedstock

Still to be analyzed

slide-22
SLIDE 22

22

22

FORECAST : STATIONARY POWER TO POWER USE CASES (GW)

slide-23
SLIDE 23

23

23

FORECAST : STATIONARY POWER TO POWER (GWH)

slide-24
SLIDE 24

DRAFT

CURRENT SA STORAGE INITIATIVE CONTEXT

slide-25
SLIDE 25

25

25

OPPORTUNITIES FOR SOUTH AFRICA Energy Storage could unlock opportunities in: Mining and Beneficiation Research and Development Commercial exploitation Local Industry Development Developmental Impact Global market player aspirations

slide-26
SLIDE 26

26

26

INDUSTRY DEVELOPMENT STRATEGY ROADMAP

SA MARKET OPPORTUNITIES / PRIORITIZATION DEVELOPMENT OF REGULATORY FRAMEWORK FORM INDUSTRY DEVELOPMENT PARTNERSHIPS (IDC, SANEDI, SAWEA, SAPVIA OTHER) SA ENERGY STORAGE USE CASE DEVELOPMENT IDENTIFY ALTERNATIVES TO EACH OF THE ENERY STORAGE USE CASES INDEPENDENTLY ASSESS THE VALUE OF STORAGE FOR EACH USE CASE CREATE SA VALUE PROPOSITION FOR ENERGY STORAGE CREATE BROAD AWARENESS OF THE ROLE AND VALUE FUNCTION OF ENERGY STORAGE DEVELOPMENT OF IMPLEMENTATION AND SUPPORT PROGRAMME FULL SCALE IMPLEMENTATION ESTABLISH STAKEHOLDER FORUM GLOBAL TECHNO- ECONOMIC STUDY IDENTIFY SUITABLE TECHNOLOGIES AGAINST USE CASES (SUPPLY AND DEMAND) FILTER FOR SHORT LIST OF SUITABLE TECHNOLOGIES CONFORMING TO SA's NEEDS INDUSTRY CRITICAL SUCCESS FACTORS PREFERRED TECHNOLOGY SOLUTIONS BASED ON LOCALIZATION OPPORTUNITIES PILOT PROJECTS ENERGY STORAGE VALUE CHAIN ANALYSIS IDENTIFY CURRENT TECHNOLOGY PROVIDERS AND ROLE PLAYERS IDENTIFY SA COMPETITIVE ADVANTAGES FOR LOCALIZATION IDENTIFY POTENTIAL LOCALIZATION/ DOMESTICATION PARTNERSHIPS LOCAL MANUFACTURING / ASSEMBLY CRITICAL COMPONENT DEVELOPMENT / SUPPLY / R&D MINERAL RESOURCE BENEFICIATION / SUPPLY / R&D Work package number Task already commenced

18 months

1 2 3 4 4 5 5 6 7 8 5 1 6 6 3

slide-27
SLIDE 27

27

27

FUNDAMENTAL PRINCIPLES

Partnering Market (use cases) Technology Value chains Preferred technologies and partnerships Value proposition/critical success factors Regulatory/support framework and/or incentives Pilot projects / “quick wins” Full scale implementation

slide-28
SLIDE 28

28

28

PARTNERING – STEERING COMMITTEE

  • SANEDI – South African National Energy Development

Institute

  • SAWEA – South African Wind Energy Association
  • SAPVIA – South African Photovoltaic Industry

Association

  • Eskom Research, Testing and Development
  • CSIR –Council for Scientific and Industrial Research
  • DST – Department of Science and Technology
  • The DTI - Department of Trade and Industry
  • IPP Office – Independent Power Procurement Office
  • EIUG – Energy Intensive User Group
  • Metros – City of Jo’burg and City of Cape Town
  • Close co-operation with DOE – Department of Energy
slide-29
SLIDE 29

29

29

TECHNOLOGY

  • The U.S. Trade and Development Agency (USTDA), an

independent U.S. Government foreign assistance agency sponsored an Energy Storage the techno- economic assessment

  • Parsons Inc., an architectural/engineering firm in the

USA with experience in renewable energy and energy storage technologies, was appointed to perform the assessment.

  • The team, which comprises experienced consultants

from the US and SA, collaborated with the University

  • f Stellenbosch and Gibb Engineering and

Architecture as their local partners.

slide-30
SLIDE 30

30

30

STUDY CONTENT

  • The techno-economic study is completed, released

today and outputs consist of the following: Technology assessment Economic assessment Financial assessment Developmental impact (high level) Environmental Impact assessment Legal and Regulatory assessment Proposed way forward

  • Objective : Stimulated engagement for development of

energy storage industry and projects in South Africa

slide-31
SLIDE 31

31

31

SA MARKET OPPORTUNITIES / PRIORITIZATION DEVELOPMENT OF REGULATORY FRAMEWORK FORM INDUSTRY DEVELOPMENT PARTNERSHIPS (IDC, SANEDI, SAWEA, SAPVIA OTHER) SA ENERGY STORAGE USE CASE DEVELOPMENT IDENTIFY ALTERNATIVES TO EACH OF THE ENERY STORAGE USE CASES INDEPENDENTLY ASSESS THE VALUE OF STORAGE FOR EACH USE CASE CREATE SA VALUE PROPOSITION FOR ENERGY STORAGE CREATE BROAD AWARENESS OF THE ROLE AND VALUE FUNCTION OF ENERGY STORAGE DEVELOPMENT OF IMPLEMENTATION AND SUPPORT PROGRAMME FULL SCALE IMPLEMENTATION ESTABLISH STAKEHOLDER FORUM GLOBAL TECHNO- ECONOMIC STUDY IDENTIFY SUITABLE TECHNOLOGIES AGAINST USE CASES (SUPPLY AND DEMAND) FILTER FOR SHORT LIST OF SUITABLE TECHNOLOGIES CONFORMING TO SA's NEEDS INDUSTRY CRITICAL SUCCESS FACTORS PREFERRED TECHNOLOGY SOLUTIONS BASED ON LOCALIZATION OPPORTUNITIES PILOT PROJECTS ENERGY STORAGE VALUE CHAIN ANALYSIS IDENTIFY CURRENT TECHNOLOGY PROVIDERS AND ROLE PLAYERS IDENTIFY SA COMPETITIVE ADVANTAGES FOR LOCALIZATION IDENTIFY POTENTIAL LOCALIZATION/ DOMESTICATION PARTNERSHIPS LOCAL MANUFACTURING / ASSEMBLY CRITICAL COMPONENT DEVELOPMENT / SUPPLY / R&D MINERAL RESOURCE BENEFICIATION / SUPPLY / R&D Work package number Task already commenced

18 months

1 2 3 4 4 5 5 6 7 8 5 1 6 6 3

FOCUS TO DATE

slide-32
SLIDE 32

DRAFT

TECHNOLOGY ASSESSMENT

slide-33
SLIDE 33

33

33

STORAGE APPLICATIONS VERSUS TECHNOLOGY

slide-34
SLIDE 34

34

34

MAIN ELEMENTS OF ESS

Grid Monitoring and Control ESS Management System Battery Management System Power Conversion Equipment Battery System

Comprised of packs (strings) of modules containing cells and includes pack, module and cell management systems

Balance of Plant Systems

Boundary of Energy Storage System

Conditioning & Environmental Control Required Power & ESS State Power transfer & converter state POWER POWER POWER GRID M

  • n

i t

  • r

i n g & C

  • n

t r

  • l

M

  • n

i t

  • r

i n g & C

  • n

t r

  • l

Transformer

POWER Monitoring & Control DATA

slide-35
SLIDE 35

35

35

STORAGE TECHNOLOGIES

  • In the study more than 16 different power-to-power

technologies was identified and reviewed (excluding pump storage).

  • Power versus Energy applications
  • These technologies have different
  • Performance criteria
  • Maturity
  • Risk/barriers
  • Advantages/disadvantages
  • Best use case application
  • Study provide some view and comparison on this.
  • Important: It is a view and different role players could have

different views

slide-36
SLIDE 36

36

36

HIGH LEVEL COMPARISON (SAMPLE)

slide-37
SLIDE 37

37

37

HIGH LEVEL COMPARISON

slide-38
SLIDE 38

38

38

TIME FRAMES OF RELEVANCE FOR SA

slide-39
SLIDE 39

DRAFT

ECONOMIC ASSESSMENT

slide-40
SLIDE 40

40

40

STORAGE BENEFITS Storage is not a source of primary electricity – it is net electricity consumer; It can work as generation or load, provide lots of flexibility

slide-41
SLIDE 41

41

41

STORAGE BENEFITS

slide-42
SLIDE 42

42

42

CHALLENGE - EXAMPLE

?

slide-43
SLIDE 43

43

43

APPROACH

slide-44
SLIDE 44

44

44

ASSUMPTIONS – STORAGE PRICES

Source : IRENA

This is battery cost only

slide-45
SLIDE 45

45

45

ASSUMPTIONS – STORAGE PRICES

  • !

"" #"$ %&'()*+!,

  • %&'()*,

.-" $- %/

  • ""
  • !

"" #"$ %&'()*+!, $-" .- %&'()*, .-" $-

  • Include engineering, procurement and construction (EPC) costs;
  • Assume Li-ion battery pack is replaced in year 8;
  • PCS systems for Li-ion and Flow Battery replace in year 10;
  • Replacements costs = capital costs of item in year of

replacement

slide-46
SLIDE 46

46

46

FUNDING GAPS Funding gap – the difference between the forecasted price in 2030 and the price at which storage adoption is triggered

slide-47
SLIDE 47

47

47

LOCAL AND CUSTOMER BENEFITS

  • Potential Grid Infrastructure Services Benefits
  • Potential Customer Energy Management Services Benefits
slide-48
SLIDE 48

48

48

T&D DEFERRAL EXAMPLE

The deferral results in a savings of about $1 million if:

  • inflation is 2%; and
  • the utility weighted average cost of capital (WACC) is 7.5%;

If assumed that 5 MW of load reduction is needed to achieve that deferral, the avoided cost is $200/kW ($1M/5MW)

slide-49
SLIDE 49

49

49

RESULTS – GRID CONNECTED STATIONARY STORAGE

  • Regardless of which price evolution is assumed, no

storage is currently built at national grid level for any of three cases using the base case assumptions;

  • The modelling is based on bulk system benefits and

does not factor in the potential of local level benefits;

  • Additional benefits such as T&D deferral, voltage

support need to be quantified and added to the bulk system benefits and will bring to year of first battery deployment from a least cost perspective forward;

  • There is likely a system wide business case to be made

for stationary batteries from 2020 onwards subject to: Cost reduction for storage Energy mix

slide-50
SLIDE 50

50

50

VALUE OF STORAGE

slide-51
SLIDE 51

51

51

VALUE OF STORAGE

slide-52
SLIDE 52

DRAFT

FINANCIAL ASSESSMENT

slide-53
SLIDE 53

53

53

DIMENSIONS

TECHNOLOGY BANKABILITY COMMERCIAL READINESS PROJECT BANKABILITY

slide-54
SLIDE 54

54

54

TECHNOLOGY BANKABILITY

  • The rapid pace of development of new storage technologies and

project deployments is widely viewed as following the same path as solar and wind with respect to the need for mainstream financing.

  • Unlike solar and wind — energy storage projects have the potential for

multiple-use applications within a given project to enable variable revenue streams.

  • Bankability for informed financiers is determined through:
  • perceived technology readiness level
  • an assessment of the likely risks associated with a technology
  • an evaluation whether the risks are sufficiently low and adequately

controlled or bounded

  • confidence in the technical success and profitability of the project
  • the technology is sufficiently mature so that performance and

reliability can be adequately predicted

slide-55
SLIDE 55

55

55

COMMERCIAL READINESS

  • The level at which the technology is deployed determines it

commercial readiness and type of funding it could attract

  • understanding market/use case (CRL 1) – R&D
  • wide spread deployment (CRL 9) – commercial equity/debt

etc.

  • The transition from an initial demonstration or proof-of-concept

project to full-scale commercial application can be difficult.

  • This is where Governments and DFI’s need to play a critical

role.

slide-56
SLIDE 56

56

56

PROJECT BANKABILITY

  • Bankability of an underlying technology should not be confused with

bankability of an overall specific project, which goes well beyond the demonstrated maturity of an underlying technology.

  • Bankability for a project is achieved when

(1) a lender is satisfied that a given project will be successful so that the borrower will profit from the project and be able to repay the loan plus interest; (2) when a lender is satisfied that the contractual allocation of risk between the project parties is such that, even if difficulties are encountered, the debt will be protected so far as reasonably possible; and (3) A bankable project will be able to compete for non-recourse lending.

slide-57
SLIDE 57

57

57

COMMERCIAL FINANCE CHALLENGES

  • Energy storage projects to date has not been done on project finance
  • Important to identify energy storage projects that are financially sufficiently

robust to be bankable.

  • The ability of projects to enter into a PPA or ESA that could provide

adequate confidence in the ability to generate and collect revenues over the life of the project.

  • The financial community is aware of the ability of an ESS to provide

multiple revenue streams through the stacking of benefits to one of more

  • customers. However, there is some concern whether there is adequate

experience in developing and demonstrating the control systems capable

  • f implementing these potentially complex algorithms.
  • There is also some concern about the lack of experience in developing

ESAs to provide for multiple revenue streams.

slide-58
SLIDE 58

DRAFT

ENVIRONMENTAL ASSESSMENT

slide-59
SLIDE 59

59

59

ENVIRONMENTAL OBJECTIVES

Assess anticipated environmental impacts of each energy storage technology with reference to local South African requirements:

  • identify anticipated environmental impacts, both positive and

negative, associated with each energy storage technology;

  • provide recommendations for maximizing positive

environmental impacts and minimizing negative environmental impacts

  • identify key considerations and steps to comply with local

environmental requirements. Overview of the anticipated environmental impacts of

  • verall adoption of energy storage technologies in South

Africa through 2030.

slide-60
SLIDE 60

60

60

ENVIRONMENTAL IMPACT IN DIFFERENT PHASES

slide-61
SLIDE 61

61

61

ASSUMPTIONS

  • In order to determine the true environmental impact of each energy

storage technology, a high-level cradle to the grave approach was taken.

  • The impacts that are common among the technologies (such as

production of steel etc., and general construction impacts) are not assessed.

  • In order to effectively compare the various technologies, it was

assumed that each technology would aim to achieve the same energy storage capacity to determine the differences in land requirements, material usage etc.

  • The study however, does not include the an evaluation of the
  • verall net impact that the introduction of an ESS might have on

the whole energy system.

slide-62
SLIDE 62

62

62

ASSESSMENT EXAMPLE

Phase Aspect Description Potential Impacts Potential Mitigation Material Manufacturing Raw Material Extraction and processing Lithium occurs as a compounded form within the environment, such as lithium carbonate (although some lithium oxide sources also exist) thereby requiring chemical processing to be developed into lithium. Lithium carbonate is generally situated within salt flats, which are typically water scarce areas. The mining of such resources requires large amounts of water.

  • Mining of lithium carbonate in salt flats has extensive

negative impacts to these highly sensitive ecosystems and will have resounding effects on biodiversity [0286].

  • Mining of lithium requires extremely high amounts of

water, which is cause of concern due to the already scarce supply of water connected to areas being mined for lithium [0286].

  • The extraction of raw materials can also have negative

effects on air quality due to heavy use of machinery as well as the generation of particulate matter in the form of dust.

  • Processing of the lithium will result in various forms of

waste, such as emissions, effluent discharges as well as solid waste that will all have negative impacts on the

  • environment. This is due to the toxic chemicals that are

used in the leaching process required in producing elemental lithium [0286].

  • Lithium is highly volatile when exposed to water thereby

is a high health and safety risk [0254].

  • The toxicity of chemicals used in the leaching process can

also have significant health risks.

  • Lithium batteries are not the
  • nly source of lithium demand,

therefore, lithium will still be mined irrespective of whether the energy storage system is adopted. Heavy metals (such as cobalt) are used within the lithium ion battery as part of the reactions required to store energy. Therefore, lithium ion batteries require the extraction of an additional battery specific element for its manufacture.

  • Opencast mining of ore containing cobalt will have

biodiversity and agricultural impacts relating to the disturbance of land.

  • The extraction of raw materials will also have negative

effects on air quality due to heavy use of machinery as well as the generation of particulate matter in the form of dust.

  • Processing of the cobalt will result in various forms of

waste, such as emissions, effluent discharges as well as solid waste that will all have negative impacts on the

  • environment. This could be in the form of sulphur acid

used in the stripping process, magnesium hydroxide used in the processing plant to extract cobalt or from emissions such as sulphur dioxide.

  • Processing of cobalt also has a number of health risks

associated to the smelting process.

  • The processing of the cobalt requires a large amount of

both water and energy.

  • The amounts of heavy metals

used in the manufacture of lithium ion batteries depends on the specific anode and cathode chemistry but is generally small enough not to pose a significant potential for environmental impact due to production

slide-63
SLIDE 63

63

63

RATING EXAMPLE

/!/01+ ," *' ,#" 2 #," 3 4"

slide-64
SLIDE 64

64

64

ENVIRONMENTAL IMPACT COMPARISON

  • !!"

''5'!1''

  • #

67/8'!1'9 8:'91101-6 0/1'!08071; !; 9/'0 1' 0811/-

  • 619'/:89

1//&111/1/101 1/!9/'1'8 1818/;1''0/ 1'&8/ 9- </101 . , # 3'%/

  • =1,%/
  • ,%/
  • '/0

# #!$% 2'>/1/:%/// ? 611'82' >/1/:%//// 18

  • '581

'1;'&01'#"' 88181/1;81//'9 '1/'/1 /'90- 8';$/8 @'0'1 @!/8/80/A"B-

  • %/ />
  • 6/71'88/ /

1'9/'91'9/-2 !; 8/ /191''C D10/0119''/- 0'5> # 0'5>1''0//! !8101'/!//1/ 1/-//5> 9!' // !81/8 0/!/11

slide-65
SLIDE 65

65

65

EIA FINDINGS

  • Each energy storage technology presents environmental

impacts in varying degrees depending on the specific technology, design, and materials of construction.

  • The net impact is also dependent on how the systems are
  • perated and the manner in which they are integrated onto

the grid.

  • Physical impacts are not the only concerns relating to the

introduction of large-scale energy storage systems.

  • Issues relating to the South African environmental regulatory

framework must be understood and considered.

slide-66
SLIDE 66

DRAFT

REGULATORY PERSPECTIVE

slide-67
SLIDE 67

67

67

SCOPE

  • Assess legislation, regulations, policies and incentives

related to the adoption of energy storage in South Africa.

  • Identify international best practices for legislation,

regulations, policies and incentives to support the deployment of energy storage

  • Identify key gaps and provide recommendations for

improving South Africa’s existing legislation, regulations, policies and incentives

  • Provide recommendations related to the inclusion energy

storage technologies.

slide-68
SLIDE 68

68

68

KEY FINDINGS

Compared to international best practices the following shortcomings were identified within the bigger context:

  • Improvement and amendments are required to existing

legislation, regulations, policies and incentives in relation to energy storage.

  • Lack of procurement targets related to specific use cases that

can be provided by energy storage.

  • Lack of specific financial “incentives and subsidies” and “tariff

structure” for energy storage.

  • Lack of demonstration and pilot projects that will enable

evaluation of the different use cases and understand the learning curve.

slide-69
SLIDE 69

DRAFT

WAY FORWARD

slide-70
SLIDE 70

70

70

FUTURE FOCUS AREAS

5 Demo Projects 3 Level Playing Field 4 Transformative Policy 6 Build Infrastructure 3.2 Market Products for Grid Services 3.4 Tariff setting and cost recovery 5.3 Behind the Meter Demo 3.1 Internal Value – Grid Service 5.2 FTM Substation Demo 4.1 Procurement Targets 3.3 IRP Reform to incl full value of storage 4.2 Create Incentives 4.3 Provide Tax Credits 6.4 Communication Network 6.2 Encourage IT Development 6.3 Allow Utility Control 5.1 Tools & analysis to ID high value sites 1 Global and SSA Energy Storage Market 2 SA Value Chain Opportunities 2.1 Analysis of HP/ ID technology value chain 1.1 Analysis of global energy storage market 1.2 Analysis of SSA energy storage market 1.3 Identify High Potential (HP) technologies 2.2 Match value to SA Capabilities 2.3 ID SA industry development priorities 5.4 Community Storage w/ Aggregator Demo 6.1 Standardize Energy Storage Requirments

slide-71
SLIDE 71

71

71

INITIATIVES

  • If South Africa wish to be part of the energy storage wave, it

is time “to get our foot in the door”

  • All role players need to understand their role and be willing to

play that role

  • Achieve collaboration (Government and Private Sector);
  • Demonstrate the abilities of storage;
  • Quantify the stacked advantages/benefits;
  • Experience and understand the “learning curves”
  • Assist in the development of a Energy Storage Agreement
slide-72
SLIDE 72

72

72

DEMONSTRATION / COMMERCIAL OPPORTUNITIES

  • Demonstration projects are an essential instrument to achieve the

requirements on the previous slide

  • Despite current pricing, some commercial opportunities may

already exist and need to be development within :

  • Distribution networks (deferrals, voltage support, etc)
  • Hybrid-, Mini- or Smart grids
  • Security of supply / arbitrage
  • Etc…..
  • In order to achieve this it will be required:
  • Identify such opportunities
  • Assess the business case on a case by case basis
  • Secure Government support to establish a conducive

framework and environment

  • Policy framework need to be place
  • Close co-operation between Government and Industry
slide-73
SLIDE 73

73

73

KEY STAKEHOLDERS

  • Industry
  • ES developers
  • C&I clients
  • Technology providers
  • Manufacturers
  • Research and Development institutions
  • Mining industry
  • Government
  • DST, theDti, DOE, DMR, DEA, DPE, National Treasury,

Nersa, etc

  • Financiers
  • DFIs (IDC) and Government Agencies
  • Commercial banks
slide-74
SLIDE 74

74

74

CONCLUSION

  • South Africa need to prepare itself if we wish to be part of the energy

storage growth opportunities within

  • Stationary value chain
  • Mobility value chain
  • If South Africa wants to be part of the global ES market, we need to:
  • “not try to re-invent the wheel”
  • understand our competitive advantages and the sustainable
  • pportunities within the respective value chains;
  • commence exploiting those opportunities and secure our position in

collaboration with key international partnerships

  • SA cannot expect to mobilize and become only involved once the market

really take off or pricing is viable – storage is already taking off!!!

  • South Africa need to be ready to supply ES solutions globally from a

locally established industry that contribute to economic growth and developmental impact (jobs, etc.)

slide-75
SLIDE 75

75

75

CONCLUSION

BOLD STEPS NEED TO BE TAKEN!!! however ENSURE WE CRAWL BEFORE WE RUN!!!

slide-76
SLIDE 76

DRAFT

THANK YOU