130725 prana
TRANSCRIPT
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Submission on the cogeneration ofelectricity
25 July 2013
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• Introducing Prana Energy
• The type of proects co!ered by our submission
• "haracteristics of #aste Energy $eco!ery proects
• #hat %e need from &o!ernment
• 'uestions
AGENDA
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Prana Energy
• Prana Energy started de!eloping cogeneration proects in
200()
• #e are considered to be one of the leading proect
de!elopers in the cogeneration space)
• #e formed a J* %ith E++aro in 200, -.E++aro /nSite
%ith the specic aim of the J* being de!eloping
cogeneration proects as these proects %ere percei!ed to
be the .lo%hanging fruits bac4 then)
• E++aro /nSite submitted cogeneration proects %ith a
combined capacity of 30 6# into Es4om7s Pilot 8ational
"ogeneration Programme -.P8"P in 200, but %ithdre%
these due to a poor PP9)
• #e ha!e roughly 2006# of proects %hich can be
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The type of proects
co!ered by our submission
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The type of projects covered by oursubmission
"ombined ;eatand Po%er
-";P
Electricityreco!ered from
%aste
•Pulp and Paper•Sugar•<iomass•8atural gas•Etc=
The cogeneratorhas signicantcontrol o!er the fuelsource
The cogenerator has nocontrol o!er the fuelsource at the end of anindustrial process•>errochrome smelters•>erromanganese smelters•"ement 4ilns•Steel manufacturing•Etc=
8ot co!eredby our
submission
"o!ered byoursubmission
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"haracteristics of #asteEnergy $eco!ery proects
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Cogeneration from wasteenergy recovery• 'uic4 to implement relati!e to ne%build coal -circa 2:
months
• 9s .green as electricity from %ind? solar and hydro @ i=e= it
reduces carbon emissions
• It also typically ha!e further en!ironmental benets @ e=g=
reduced air pollution
• The grid connection points are already in place @ no
additional transmission infrastructure reAuired
• The electricity is not e+ported bac4 into the grid as
generation is typically less than the onsite consumption @
i=e= reduced grid losses
• >antastic grid alignment -almost li4e baseload @ see ne+t
slide
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Fantastic grid aignment
If the demand from theindustrial process on Es4omis ;I&;? the cogeneration
plant produces 9 B/T ofelectricity
If the demand from theindustrial process on Es4omis B/#? the cogenerationplant produces BESSelectricity
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Economic Comparison ofTechnoogies
c!"#h
Avoidpea"ing !mid merit
pantcosts$
Avoiddeep gridconnectio
n costs
%eductionon
transmission osses
Solar -P* 1:0C & ! & ! &
Solar -"SP 1(5C &
! &
! &
#ind 100C & ! & ! &
;ydro -small 10(C ! & ! &
<iogas D0C ! & ! &
<iomass 1:0C
! &
! &8atural &as D0150CC
! &
! &
"oal D0120CC ! & ! &
Pea4ing-diesel
320:20CC ! & ! &
Energy'()*+(
C <ased on $EIPPP round 3 capsCC Estimates
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#hat %e need from&o!ernment
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#hat we need fromGovernment1= #e need continuity of policy====
• #e ha!e been de!eloping 2 cogeneration proects
-#aste Energy $eco!ery %ith generation capacity of
(06#)
• These proects are only !iable if there is an I6 type
subsidy a!ailable but gi!en that this %as the case until
9pril of this year? %e spent in e+cess of $15m on
de!eloping these proects)
• In 9pril? the I6 subsidy %as abruptly ta4en a%ay as
part of 8E$S97s 6FP3 ruling)
• 8o alternati!e is being oGered=== i=e= a total discontinuity
in policy
• These proects may ha!e to be terminated at a time
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#hat we need fromGovernment ,cont-.
2= The cheapest H Auic4est H best %ay to ma4e these proectshappen is a onceoG up)front capita subsidy
This is similar in nature to the I6 subsidy %hich e+isted atEs4om for cogeneration proects until 6arch H 9pril this year
and %hich aready enabed a number of cogenerationprojects successfuy
/ur reAuest is that the I6 subsidy %hich pre!iouslye+isted %ithin Es4om be re)activated -!ery easy to do
until such time as an alternati!e mechanism e+ists -as perthe 8E$S9 ruling
/ur further reAuest is that su/cient funding be madeavaiabe to Es"om -from an alternati!e source and thatthey be gi!en a temporary mandate to taior the amount
of the 0D1 subsidy to enable these proects as long as
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2p)front capita subsidy
Subsidy ma4es the priceof cogeneratedelectricity comparableto that of Es4om
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2p)front capita subsidy ,cont-.
• "heap==== the I6 subsidy at 9$ 5=25mH6# %or4s out toroughly D cH4#h for the Prana proects already submitted
to Es4om= It is far cheaper than anything else but the siKe
of the subsidy reAuired %ill diGer from proect to proect
•
'uic4==== the I6 infrastructure and legal frame%or4already e+ists at Es4om and is being used for other
energy eLciency proects
• 9lignment of interest==== There is perfect? selfregulating
alignment of interest as the o%ner of the cogenerationplant has to pro!ide the rest of the capital @ i=e= there is a
!ery strong incenti!e to ma4e sure the plant produces
electricity
• 9 pro!en mechanism=== It already %or4ed in South 9frica
and is %idely used internationally