There is an immediate solution to load-shedding
‘Powerships’ off the coast of SA could fill the Eskom gap quickly and cleanly
● One silver lining of the coronavirus cloud has been the absence of load-shedding due to decreased demand for power during the lockdown. However, with lockdown restrictions expected to move to level 3 by the end of May, it is likely that load-shedding will soon affect our daily lives again.
This likelihood was confirmed by Eskom COO Jan Oberholzer during a media briefing recently, when he admitted that, due to a decade of neglect of the country’s ageing power plants, the grid remains unpredictable and unreliable.
This problem will be exacerbated by the onset of winter, the inability of Eskom to carry out its reliability maintenance programme due to the lockdown and the temporary closure of the 1,600MW Camden power plant due to safety concerns. As one analyst put it: “I would not be surprised if we see the worst load-shedding we have ever seen by the end of June.”
It is fair to say that the resumption of regular loadshedding will be a crippling blow to SA’s postlockdown economic recovery plan. Energy analysts have estimated that every hour of load-shedding costs the economy between R50m and R100m.
Last year was the most intensive year of loadshedding to date, with power outages in excess of 530 hours costing the economy between R59bn and R118bn.
Continuous breakdowns at ageing power plants during peak periods, when demand is higher than usual, has forced the state utility to utilise its expensive diesel-powered peaking gas turbines for extended periods. These peakers cost about R3.60 per kilowatt hour (kWh) to run — more than double the cost of other, cleaner solutions that can be deployed in a short space of time.
Now, more than ever, there is an urgent need to fill the country’s short-term energy deficit of at least 2,000MW-3000MW, and end load-shedding altogether.
In order to plug this short-term gap and procure new generation over the longer term, the National Energy Regulator of SA (Nersa) recently published two draft determinations by mineral resources & energy minister Gwede Mantashe in terms of section 34 (1) of the Electricity Regulation Act for public comment. These determinations are the first step in the process of procuring new electricity generation totalling some 13,813MW from independent power producers (IPPs).
Karpowership South Africa, backed by the world’s largest powership firm, has submitted comment to
Nersa on both draft determinations. Our submission makes the case that, to the best of our knowledge, Karpowership is the only solution that can begin supplying electricity to the grid within two months of being deployed.
A powership is a fully self-contained floating power station. Each powership contains its own generation facility, fuel storage and electrical control system, along with a grid substation as the interconnection point to the national grid. The onboard substation is connected via overhead cables to the national grid without lengthy delays, complicated engineering or major infrastructure construction. Electricity is generated by a number of high-power alternators in the hull of the powership, driven by engines that operate on regasified liquid natural gas (LNG).
These powerships are ready for deployment to SA without any capital expenditure. They can be made operational within two months of an instruction to proceed, ramping up to 2,000MW of additional power to the national grid within five months. By contrast, it would take at least 12 months to construct a solar photovoltaic plant, 18 to 24 months to build a wind farm, at least four years to build a coal power station and eight years to build a nuclear power plant.
Powerships are also a cost-effective way to procure and deliver electricity. Utilising LNG, powerships produce electricity for about R1.70/kWh. This price is inclusive of all capital costs of fuel and equipment, as well all operation and maintenance costs.
Powerships are therefore an all-in delivered cost that provides significant savings immediately. By using powerships instead of privately owned dieselpowered generators, Eskom could save about R28bn every year.
A key operational advantage of powerships is their reliability in providing electricity on an ongoing basis. Powerships guarantee continuous delivery of power in excess of 98% reliability. This is due to ongoing maintenance programmes, multiple engine technology and built-in redundancy systems throughout the plants.
In contrast, the maintenance of large coal and nuclear plants requires the plants to be shut down entirely to perform essential work programmes for weeks at a time, as South Africans well know.
Powerships are an obvious complement to other renewable energy sources because of the baseload and mid-merit power that they deliver irrespective of fluctuating externalities. Wind power, for instance, can only be generated when it is windy, and solar power when there is sunshine.
It is worth noting that the powerships for use in the South African market would operate on a clean source of energy specifically required in the Integrated Resource Plan.
As we begin the painful post-lockdown rebuild of the economy, it is important to remember that loadshedding doesn’t need to be a handbrake on growth and jobs.
Mantashe was recently quoted as saying that “Covid is changing the country’s outlook, but it also has a silver lining in that we must to do things differently and quicker going forward”.
It is true that we need speed and innovation if we are going to see any light at the end of the Covid-19 tunnel. Within two months we can help bridge the energy gap with a clean, reliable and cost-effective source of power. Karpowership South Africa is ready to play our part in the next chapter of the South African story.