Page 11 - AfrElec Week 31 2021
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AfrElec                                     NEWS IN BRIEF                                            AfrElec








                                                                                major cities experience even higher biases.
                                                                                Due to variable microclimates created by
                                                                                diverse topography, satellite solar irradiation
                                                                                estimates for sites nestled in highlands,
                                                                                valleys, or next to lakes can be biased by up
                                                                                to 20%. The findings are in line with kWh
                                                                                Analytics’ inaugural 2020 Solar Generation
                                                                                Index Report, which found that that 25%
                                                                                of U.S. solar projects surveyed missed
                                                                                their 3-year forecasted production targets
                                                                                by over 10%. The American solar risk
                                                                                management firm attributed this result in
       Eskom’s Group Capital Division. “This is   our contractors, exceeding Eskom’s local   part to overreliance on biased satellite data for
       an investment that will serve generations of   skills development target of 3071. More   production estimates.
       the people of South Africa and power the   significantly, over 60% of the beneficiaries   CrossBoundary Energy’s report goes
       economy for at least the next half-century.”  were local residents and from Limpopo   on to say that, as a result of systems
         The commercial operation status means   province.                      underperforming their production estimates,
       technical compliance to statutory, safety and                            CI clients in African metropolitan areas could
       legal requirements have all been met. The unit   SOL AR                  fail to realise 4-5% of their projected savings
       was officially declared commercial after the                             from solar, while those outside major cities
       completion of the unit optimisation, control   Solar expansion in Africa   risk savings reductions up to 20%.
       demonstration, as well as the 72-hour and                                  The risk is even higher for off-grid solar
       the 30-day reliability run, which have put all   driven by falling equipment   customers, such as mining companies, which
       performance guarantees to effect. Unit 1 was                             use generators to supplement renewable
       first synchronised to the national grid on 27   prices                   power and could carry unexpected increases
       August 2019 and reached the full load of 794                             in fuel costs to offset unmet power needs.
       MW on 5 December 2019. During this testing   Declining solar equipment costs continue to   For investors, such systemic
       and optimisation phase, Unit 1 contributed   drive African businesses toward solar energy   underperformance can reduce the projected
       intermittent power to the country’s electricity   solutions.             IRR by up to 1% for urban sites, while diverse
       supply.                                A report by CrossBoundary Energy titled,   portfolios of urban and rural assets could see
         It was on 23 August 2015 when the first   Measuring Solar Irradiation in Africa shows   deviations from projected IRR of greater than
       unit, Unit 6, attained commercial operation   how the biases in the estimation of solar   1%.
       status. Over the following 6 years, four other   production in Africa can lead to up to a 20%   Phuthi Tsatsi, co-author and Business
       units were built and brought to commercial   reduction in savings for African businesses   Development Associate at CrossBoundary
       status, providing electricity to the national   and a 1-2% reduction in the internal rate   Energy says, “Until we all recognise the
       grid.                               of return (IRR) for solar developers and   shortcomings of how we currently forecast,
         The Medupi Power Station uses direct   investors.                      the growth of the African distributed
       dry-cooling systems due to the water scarcity   Lenny Matei, co-author and Senior Project   solar market as a whole – and its promise
       in the Lephalale area, and is the fourth largest   Engineer at CrossBoundary Energy, says, “For   to neutralise the carbon footprint of the
       coal-fired plant and the largest dry-cooled   most commercial and industrial (CI) clients,   continent’s growing industries – rests on a
       power station in the world. The power plant   a major factor in awarding projects is the   fractured foundation.
       incorporates super critical technology, which   electricity tariff and resulting savings offered.
       is able to operate at higher temperatures than   An often-overlooked factor is the estimated   RENEWABLES
       Eskom’s earlier generation of boilers and   solar irradiation on site, which can have a
       turbines. Importantly, the technology enables   significant impact forecasted production and,   Nigeria’s energy deficit
       the power plant to operate with greater   thus, expected savings.”
       efficiency, resulting in better use of natural   A statement to newsrooms indicates that   presents huge prospects
       resources such as water and coal, and will   CrossBoundary Energy operates solar plants
       have improved environmental performance.  for businesses in Ghana, Kenya, Nigeria and   for renewables
         At its peak during construction, the   Rwanda, and has a pipeline of over 300MW of
       Medupi project directly employed more   projects across Africa.          The huge on-grid energy deficit and low
       than 18 000 people on building activities,   An analysis of two operational sites, in   electricity output in Nigeria portends great
       while another 2000 supporting employees   Nairobi, Kenya and Accra, Ghana, revealed   prospect for emerging renewable and cleaner
       were employed on site. The capital cost of   that actual irradiation – measured by project   energy companies, Chief Executive Officer,
       the project is ZAR 122bn so far, and Eskom   ground-based measurement systems, deviated   Engie Energy Access Nigeria Limited, Mr.
       expects to spend in total under ZAR 135bn on   3-5% from the satellite data widely accepted   Bankole Cardoso, has stated.
       completion of balance of plant.     as accurate for making production forecasts   Currently, the campaign in pursuit of
         Since the construction of the project,   during solar design. This translated into   achieving net-zero carbon emissions by 2050
       Eskom has been working with the nearby   an equal deviation of 3-5% in solar power   through a shift away from fossil and other
       communities in the Limpopo province. More   production estimates, while all other factors   dirty fuels to renewables and other cleaner
       than 4600 artisans, technicians, engineers   are held constant.          and environmentally friendly energy sources,
       and managers were formally trained by   The report also found that sites outside of   is beginning to attract heavy investments to



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