SESSION 2.2 (Wed 15h20) Accelerating Renewable Grid Connections And Improving Network Resilience Enabling Transmission Grid Access Current and Future

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1 SESSION 2.2 (Wed 15h20) Accelerating Renewable Grid Connections And Improving Network Resilience Enabling Transmission Grid Access Current and Future Initiatives Ronald Marais Transmission Strategic Grid Planning Manager Eskom South Africa

2 Enabling Transmission Grid Access Current and Future Initiatives Challenges of a Changing Generation Spatial Footprint Current Generation Footprint Irrespective of generation scenario Future Generation Future Generation Potential Footprint Footprint Enabling Transmission Grid Access?? There is Increased uncertainty in Where is the location? What is the size? What is the type?

3 Enabling Transmission Grid Access Current Initiatives Partnering, Adapting and Communicating Current highlights contributing to the success relating to Transmission and Distribution network connections Partnering Committed resources to work closely with the DoE IPP Office Collaborating with the Department of Environmental Affairs to initiate Strategic Environmental Impact Assessments Successfully enabled the network to integrate Bid Windows 1 to 3 Adapting Established the Grid Access Unit and the Single Buyers Office Introduced a Self Build Procedure document that provides IPPs with the option to self build their dedicated connection infrastructure Communicating Published the Grid Connection Capacity Assessment (GCCA) Identified strategic transmission line routes to unlock network capacity to connect future IPPs Eskom Grid DOE GAU & SBO IPP Office

4 Enabling Transmission Grid Access Current Initiatives What have we done Anticipation, Preparation and On-time Grid Access Identify Future Corridors Outputs and Studies Completed Anticipation of the Future Grid Preparation to expanding the Grid Conducted Transmission 2030 Study Publish Annual Transmission Development Plan Conducted Transmission 2040 Study Flexibility to move to different scenarios Reduce implementation time to meet generation and demand development Impact of intermittence Grid Capacity On-time Grid Access Prepared Generation Connection Capacity Assessment (GCCA) Provide information on spatial network capacity available to connect Generation Created Generation Connection Application Procedure Developed a Tx Self-build Policy Developed streamlined application process Enable faster implementation to ensure success of REIPP Final SIP 10 Corridors

5 Change in generation diversity has major impact on future Tx Grid Current Generation Footprint Enabling Transmission Grid Access Current Initiatives Grid Access Increased connection capacity needed in new areas (delivery time > 8yr) On Time Connection Smaller IPP generation plant can be constructed faster (delivery time <5yr) Unknown locations - Multiple unspecified IPP sites require market access for best price Change in Location - Spatial Footprint Tx Strategy for Increased Future Grid Access Change in Construction 3yr - 5yr Speed of IPP plant rollout Current Eskom Wind, Solar & REIPP 1,2,3,4 Solar Wind Strategic EIAs & Servitudes can enable faster grid development Eng. 1yr Transmission Line Project Timeline EIA & Land Acquisition 2yr + >3yr Construction 3yr 1. Strategic Investment in the EIAs & Land acquisition is critical to meet future IRP connection timeframes Future Generation Potential Footprint Gas Nuclear Beyond 2020 demand balance significantly changed by dispersed generation in south Change of spatial footprint into areas with limited demand requires additional transmission capacity Significantly more transmission corridors and grid access required 2. Reducing Tx investment today compounds future Tx Grid roll out leading to high risk of Gx capacity delays Need to reduce the time to increase grid access by investing in strategic access and corridors servitudes

6 Enabling Transmission Grid Access Current Initiatives & Future Tx Strategy for Increased Future Grid Access Cabinet on Wednesday, 17 February 2016, approved the gazetting of 8 Renewable Energy Development Zones (REDZ) and 5 Power Corridors. The gazetting of 8 Renewable Energy Development Zones (REDZ) is targeted for 3 rd quarter 2016 and early 2017 for the 5 Power Corridors. This will enable proactive environmental compliance and the ability to secure collector route for grid access. The strategic planning and acquisition of collector hubs and major corridor servitudes will enable shorter response times required for the changing energy supply.

7 Enabling Transmission Grid Access Current Initiatives & Future Strategic Unlocking of Renewable Access Actively Unlocking Future Grid Access Grid access projects are proactively being identified in collaboration with stakeholders. Projects range in complexity and hence vary in implementation time. The SEA project ensures long term acquisition enabling budgeting and strategic investment for access to the grid. Preparation Status Already in TDP and projects to be accelerated Projects triggered by successful RE Bids Projects in definition and in preparation for development Complex projects still to be fully defined and presented later Strategic Unlocking Implementation Time

8 Anticipation of the Future Grid Strategic Unlocking of Renewable Access Enabling Transmission Grid Access Current Initiatives & Future Actively understanding & unlocking future Grid Access Preparation for Grid Access Resources (electricity generation) Extraction (Technology impacts) Collector (Dx integration) Transportation (Tx Corridors) System behaviours (Stability & Compliance) Regional integration (Diversifying) Technologies (current & emerging) Aggregated wind and PV power profiles for different spatial distributions Potential for distributed solar photovoltaic systems (Western Cape Province) Collector hub integration location and corridor investment Partnering DoE, DoE IPP Office, Metropolitan munic, Universities, international agencies, CSIR, CRSES, SANEDI, DTU, RNEL, etc.

9 Enabling Transmission Grid Access Current Initiatives & Future Concluding Thoughts Partnering, adapting and communicating. Anticipation, preparation for expanding the grid will enable on-time grid access. Critical success factors are strategic servitudes for collector hubs and corridors. Regional integration increased diversity, which reduces the impact of variability of renewable energy sources. Increase access enables reduced competitive pricing