Steps in Building a Wind Farm

Andre Otto

Project Manager

South Africa Wind Energy Programme

Dept of Energy

South Africa

Outline

• Outline�SA Energy Overview

�GHG Emissions

�Water situation

�Practical RE potential

�Wind Resources

�Grid connection

�Conclusion

South Africa Energy Overview

Eskom Installed Generation Capacity

South Africa GHG Emissions

World’s Surface Water

South Africa Water Scarcity

According to the WWF, South Africa is a chronically water stressed country. In 2000, South Africa's water surplus was only 1.4% of the country's total water supply, and it is estimated that South Africa will have a water deficit of 1.7% by 2025. Consequently, water availability is one of the most decisive factors that will affect the future economic development of South Africa.

Could water issues drive energy reform/technology in future?

South Africa Practical RE Potential (2009 – 2023)

Renewable Energy Business Case, SAWEP, RDE, Feb 2009

South Africa Policy, Legal & Regulatory Environment

White Paper on Renewable Energy: 10 000 GWh by 2013 (currently being reviewed)

Electricity Regulation Act (Act 4, 2006)• IPPs• Non-discriminatory grid access• Integrated Resource Plan (IRP)

Integrated Resource Plan (IRP)IRP1:• MTPPP, REFIT: 343 (2010), 518 (2011), 284 (2012), • Sere, CSP: 150 (2010) MW• IRP2 (June 2010, 20 year period)

New Generation Regulation (No.32378, Aug 2009)• Procurement of RE and Co-gen under REFIT

• Rules relating to RE, Co-gen IPP selection criteria • (Independent) System Operator

• Selecting preferred IPP under REFITBuyer?

Renewable Energy Feed-in Tariff

REFIT 2009 (=levelised cost), ROE after tax 17%

South Africa Policy, Legal & Regulatory Environment cont

• National Environmental Management Act NEMA (Act 62, 2008)• NEMA regulations (2006)

• Basic Assessment activities Listing Notice 1 No R386The construction of masts of any material or type and of any height, including those used for telecommunication broadcasting and radio transmission, but excluding -(a) masts of 15 metres and lower exclusively used(i) by radio amateurs; or(ii) for lighting purposes(b) flag poles; and(c) lightning conductor poles.

• Scoping EIA activities Listing Notice Notice 2 No. R387The construction of facilities or infrastructure, including associated structures or infrastructure, for -

(a) the generation of electricity where –(i) the electricity output is 20megawatts or more; or(ii) the elements of the facility cover a combined area in excess of 1Hectare;

12

Basic assessment Process (R386)

Public participation (R. 22 and 56)

Basic assessment report (R. 23)

Submit application (R 24)• Application form• Assessment report• Exemption application (R 52)

14 days

Acknowledge receipt (R. 14)

Check application (R. 14)

30 days

Response (R. 25)

• Submit additional information• Specialist studies• Alternatives• Rejection• Scoping & EIA

Scoping & EIA

Grant / refuse authorisation (R. 26)

10 days

Notify I&APs of decision (R. 10)

Notify applicant of decision (R. 10)

Competent authorities must strive to meet timeframes (R. 9)

Notify Authority (form) (R. 22):•Basic information•Indicate if exemption will be applied for

Authority response and advice (R 5)

10 days

13

Scoping/EIA process (R387)

Submit application (R. 27)• Application form• Landowner’s consent• Indicate if exemption will be applied for (part of application from)

14 days

Check application (R. 14)

30 days

Authority response (R. 31)• Request amendments• Reject because:

• insufficient information• failure to consider guidelines

• Accept

Decision (R. 36)

10 days

Notify I&APs of decision (R. 10)

Notify applicant of decision (R. 10)

Acknowledge receipt (R. 14)

Submit Scoping Report (R. 30)

Scoping (R. 28-29)• Public participation (incl. organs of state)• Scoping Report• Public comment on SR (R. 58)

EIA (R.32)• Prepare EIA report & draft EMP

60 days

Authority response (R. 35)• Reject• Amend• Specialist review• Accept

45 days 45 days

Competent authorities must strive to meet timeframes (R. 9)

Submit EIA Report

South Africa Policy, Legal & Regulatory Environment cont

• SUBDIVISION OF AGRICULTURAL LAND ACT 70 OF 1970

• 3 Prohibition of certain actions regarding agricultural land“no lease in respect of a portion of agricultural land of which the period is 10 years or longer, or is the natural life of the lessee or any other person mentioned in the lease, or which is renewable from time to time at the will of the lessee, either bythe continuation of the original lease or by entering into a newlease, indefinitely or for periods which together with the firstperiod of the lease amount in all to not less than 10 years, shall be entered into;”

� Application to Minister required

• Provincial Ordinances e.g change of land use

South Africa Policy, Legal & Regulatory Environment cont

• THE AVIATION ACT, 1962 (ACT NO 74 OF 1962) CAA

• CIVIL AVIATION REGULATIONS, 1997• PART 139.01.33

• Document SA-CATS-AH

• Wind turbine generators (Windfarms).

� Windfarm Placement:

Not to be built closer than 35 Km from an aerodrome

� Configurations

Linear, cluster, grid

� Markings

Painted bright white

� Lighting

Individual, 3 or more units, Turbine Lighting Assignment

South Africa Policy, Legal & Regulatory Environment cont

Industrial Policy Action Plan (IPAP2) (2010/11-2012/13)

• 9.1.6 Developing and strengthening South African National Standards to support the creation / resuscitation of specific industries

� Key milestones

• 2010/11 – 2012/13: SABS to develop SANS for:

• Wind energy turbines……

• 12.2.5 Develop sector strategies for other green industries

Further work is required to develop strategies for other green industries and activities.

• These include:

• � Wind energy generation…

� Key milestones:

• � 2010/11 Q4: Development of wind energy generation strategy and action plan

SAWEP project: Investigation into the Development of a Wind Energy Industrial Strategy for South Africa

Wind Resources

Estimated wind potential ranges from 3 GW to 64 GW and more

Tripod Review (2003) of Wind Energy Resources (Atlases) in SouthAfrica concluded:

� these studies are inconclusive and under estimate the true wind energy potential as weather measurement stations at 10 m were used and in may cases these stations are shaded by buildings etc from measuring the true wind potential; and

� recommended that a dedicated wind energy measurement programme needs to be undertaken to confirm the true wind energy potential in SA

SAWEP, RDE and partners (SANERI, CSIR, SAWS, UCT, Riso) Wind Atlas for South Africa project

Grid Connection & Integration

• Grid impact

• High level feasibility studies for analyzing the impact of up to 2800MW of wind generation in the Western Cape on the 400kV transmission grid have been carried out1

� The results show that no considerable impact on the transmission grid has to be expected and that it will be possible to accommodate such a high level of wind generation without any major upgrades of the 400kV transmission grid.

� At the same time it is understood that the transmission capacity of subtransmission and distribution grids (voltage levels <=132kV) will be limited in some cases and that major network upgrades at these lower voltage levels will be required.

• Grid codes

� South African Grid Code (v7, March 2008)

� South African Distribution Code (v5.1, Sept 2007)

� SA Grid codes to be revised to accommodate wind turbine technologies

• 1 Grid Integration of Wind Energy in the Western Cape, GTZ, DEADP, Eskom, Dec 2009

Grid Connection & Integration cont.

• Cost of Grid connection, integration

Sample of 40 regional transmission studies 2 concluded:

� The majority of studies in our sample, however, have a unit cost of transmission that is below $500/kW, or roughly 25% of the current $2,000/kW capital cost of building a wind project. The median cost of transmission across all scenarios in our sample is $300/kW, on a capacity weighted basis; roughly 15% of the current cost of building a wind project

• Capacity Credit

� How much 'conventional' power can be avoided or replaced by wind power?

2The Cost of Transmission for Wind Energy: A Review of Transmission Planning Studies. Andrew Mills, Ryan Wiser, and Kevin Porter. Ernest Orlando Lawrence Berkeley National Laboratory. February 2009. Download from http://eetd.lbl.gov/EA/EMP

Conclusion

Business case environment for wind energy utilisation in South Africa has been established

In place:

� Policy (Energy, Environment, Industrial), Legal and Regulatory framework (Electricity Regulation, NEMA, regulations)

� Financing framework (REFIT, cost of grid connection, integration?)

� Capacity allocation framework (IRP)

Outstanding:

� REFIT implementation:”rules of the game”

� Buyer,

� Capacity value of wind energy

Thank you

Wind Atlas for South Africa: Workshop

Date: 4 MarchTime: 8:30Venue: River Club, Observatory, Cape Town