Backup Generation Supplement 2016

BACKUP GENERATION Supplement Single Source Solution Provider, delivering world-class products and services in Sub-Saharan Africa

BACKUP GENERATION Living lightly off the grid, where diesel remains centre stage The anticipated growth in the market for diesel gensets reflects the increasing demand for electrical power and the fact that prime power may not be readily available or reliable from the national electricity grid. ith a realised figure renewables, storage capacity and Global consultancy, his, predicts estimated at 3,000 reliable, backup generators in an efficient and that sales of diesel generators will Wuninterrupted hours of sustainable manner. Thanks to these expand by almost $7 billion between sunlight each year, Africa is well micro-grids, living lightly off the grid 2013 and 2018 – you may have some positioned to be one of the most can happen today and Africa is geared questions at this point as one would innovative markets for the adoption of to lead the way. assume that the world is moving widespread solar power for primary For many communities around the away from fossil fuels, right? – The electric power generation. This world, access to a reliable electricity anticipated growth in the market for realisation is matched with the hottest supply has been a transformative diesel gensets reflects the increasing trend in power, going off-grid. This new journey, which has enabled a higher demand for electrical power and dynamic combines new solar systems quality of life whilst contributing the fact that prime power may not with advanced storage and a tried and towards economic growth. For many be readily available or reliable from true partner in electricity generators outside of developed areas, this has the national electricity grid. Many – a diesel ‘genset’. Known as a micro- been promoted by the use of diesel communities and businesses across grid, the dynamic system integrates generators, a primary power provider. Africa rely completely or partially on ESI AFRICA – BACKUP GENERATION SUPPLEMENT 1

BACKUP GENERATION Diesel fuel is the most energy access to clean diesel fuel, the United Nations Environment Programme and dense fossil fuel and the diesel engine other partners are actively working with is the most efficient mechanism to turn fuel producers to provide clean diesel fuel as a necessary first step in the this potential energy stored as fuel into process of introducing the latest clean air technologies. useful mechanical energy or work. One of the great benefits of the diesel platform is its capability to operate on a variety of fuels including diesel fuel. In fact, the original diesel power from diesel gensets, which micro-grid, the engines themselves engine design patented by Rudolph provide prime power in just about have also enhanced their performance Diesel was intended to operate on any location, capable of delivering and efficiency to become an integral peanut oil. Today, much has changed power independent of a grid network. solution to meet clean air and climate about the diesel engine; it does The only drawback is the access to goals. The latest emission control more work using less fuel with lower and cost of fuel. Diesel fuel is the solutions found on the large variety emissions than ever before. However, most energy dense fossil fuel and of commercial vehicles and off-road what remains is its ability to use a the diesel engine is the most efficient equipment result in near-zero emissions wide array of renewable high-quality mechanism to turn this potential along with fuel savings potential. These biofuels, many of which are derived energy stored as fuel into useful technologies play an important role in from waste agricultural feedstock. mechanical energy or work. While improving air quality in many regions diesel is the most efficient option for and are important in contributing to Seeking viable solutions motive power, it may not be the most climate change commitment goals that More communities across Africa are cost-effective solution to deliver long- many countries recently adopted in looking to the sun to provide low cost term prime-power. Paris in December 2015. electricity, and to reduce reliance on The latest clean diesel technologies diesel fuel for electricity generation. Generators become efficient depend on access to clean diesel fuel This is fast becoming a solution for While diesel generators are an with low sulphur content. While much many communities as the increased essential component to any sustainable of sub-Saharan Africa does not have competition has driven the cost of the technology down to an affordable rate. While Africa benefits from 3,000 hours of reliable uninterrupted hours of annual sunlight, that leaves 5,760 hours a year that the sun will not provide uninterrupted energy supply. This is when fossil fuels stand in and assist to ensure a continuous supply of reliable electricity along with battery backup capabilities. The International Energy Agency estimates that many communities across Africa have made expensive investments in their diesel generators to provide prime power or necessary backup power. The diesel platform is prized for its durability, longevity and reliability and these assets should not be discounted. The fleet of diesel generators can provide the much needed prime power in the absence of solar and battery backup capabilities. Investments made in diesel technology are a central component to any sustainable micro-grid. It is the best of all worlds: renewables that you want, with the reliability that you need. Shining light in the micro-grid The International Energy Agency recently highlighted the enormous potential these sustainable micro- grids may offer to communities across the African continent. Population 2 ESI AFRICA – BACKUP GENERATION SUPPLEMENT

BACKUP GENERATION dense areas, including communities maintenance costs. Another example It is entirely possible to envision in Nigeria and the southern African is the development of a scalable and a future where the diesel engine region, have experience with a grid customised micro-grid for any on- or off- relies more on biofuels than network, but at frequently intermittent grid application that couples renewables traditional petroleum-based fuel, levels requiring reliance on diesel with battery storage and backup power further contributing to its sustainable gensets. Sustainable micro-grids offer provided by a diesel generator. credentials. While communities these communities greater reliability These examples are being led by across Africa have made investments at a much lower cost. Other less companies that are not only experts in existing diesel generators to population dense communities in in diesel electric power generation, provide either prime power or East Africa, for example, do not have but also in the advanced controllers necessary backup power, these experience with a grid network and and switching technology that assets can now be transformed have relied sometimes exclusively on enables multiple power sources to be into a new role as a backstop to diesel gensets for prime power. Again, integrated and automated to ensure the growing use of renewable and sustainable micro-grid technology a seamless supply of electricity no sustainable sources of power to help offers these communities a much lower matter the weather conditions. Many the continent show the way to live cost of power generation while taking aspects of system performance can lightly off the grid. With diesel, you advantage of the past investment in be monitored remotely as well, further get the best of all worlds: renewables the diesel genset. enhancing the micro-grid system’s that you want, with the reliability that The leaders of clean diesel ability to be used in outlying regions. you need. technology are stepping up and developing innovative sustainable and scalable micro-grid technologies ABOUT THE AUTHOR suitable for powering a single business Ezra Finkin has served with the Diesel Technology Forum since or an entire village. In one instance, July 2012. As the policy and outreach director, he works to educate a solar array along with a diesel various stakeholders and policy makers with state, local and federal governments about the importance of diesel technology and the generator was adapted in Senegal in economic benefits of continuing investments in emission reduction a unique hybrid system that minimises technologies. diesel fuel consumption and lowers THE HIGHEST THERMAL QUALITY without compromise FLIR T1K HD Thermal Camera Outstanding image quality: 1024 x 768 px Best in class optics Fully radiometric JPEGs & videos Compact, streamlined design that's easy to use and carry Check out the amazing HD thermal video at www.flir.eu/T1K T1K_opzetje_A5_UK.indd 1 19/09/16 08:30

BACKUP GENERATION COVER FEATURE Closing Africa’s infrastructure gap through generation and backup power projects he sub-Saharan African region, and add to Africa’s power capacity as Generation technologies although diverse in resources, long as they are well planned,” says Utilities and municipalities will concur Teconomies, and policies, Darin Mac Allister, MD of Poweroad that initial costs for development vary shares one commonality – a lack of Africa. “We have a team with over considerably between the different investment in power infrastructure as 30 years’ experience with energy in generation technologies available witnessed by rolling blackouts, load Africa and emphasise the need to in the market. For instance, to shedding and spiralling energy tariffs. take time to conduct studies prior to obtain bankability for a project, solar Add to this a startling fact disclosed commencing projects.” technology is a relatively inexpensive at the African Development Bank’s Studies, which initially begin option when compared to hydro and annual meeting in Lusaka in May 2016. with an energy landscape study, are geothermal power. This is partly due The bank estimates that by 2050, conducted to determine the most to the availability of solar irradiation two-thirds of Africans will live in cities. suitable energy source. This is followed data and also due to the scale of However, according to the International by a concept study on the chosen the projects. Hydropower, however, Energy Agency’s (IEA) Africa Energy generation technology, and then a requires specific flow measurements Outlook 2014, for those who have pre-feasibility/feasibility study. Finally, to be conducted over a substantial access to a grid connection, the supply after the completion of these studies, time-period. To determine geothermal is often unreliable, necessitating conducted to provide evidence for power, exploration drilling, which can widespread and costly private use of the viability of the project, bankable prove to be expensive, has to take backup generators running on diesel feasibility studies are conducted with place first. or gasoline. The report further states the ultimate goal being to obtain project Prices for the various technologies, that in 2012, the cost of fuel for backup finance supported by solid information. and specifically for solar PV and wind generation (across businesses and By following this process, developers generation, have dropped considerably households) was an estimated $5 will face the least risk, and ensure that in recent years due to innovation, billion. The question to ask is therefore, any finance obtained will result in the improved efficiency, increased number given the pressure already being successful completion of a project. of completed projects, and the rising experienced on the power sector, how “This expert process, which we demand for these technologies. This, can the continent begin to close the provide to clients, allows project along with increased availability of infrastructure gap to be able to deliver developers to evaluate the viability of funding, has resulted in increased quality and reliable supply of electricity their projects with the least amount of implementation of renewable through clean and cost-effective finance required. This greatly assists technologies. Solar PV has decreased generation and backup power solutions? project developers in implementing in price to the point where it is now projects, which otherwise would within the reach of private individuals Planning equals good returns not have been able to commence,” and corporates wishing to install it “At Poweroad Africa, we believe new Neil Borthwick, director of sales and within their own homes and at their generation projects can be bankable marketing at Poweroad Africa explains. business premises. 4 ESI AFRICA – BACKUP GENERATION SUPPLEMENT

BACKUP GENERATION COVER FEATURE Poweroad Africa is active in the following African countries: • Angola • Botswana • Burundi • Cameroon • DRC • Eritrea • Kenya • Malawi • Mozambique • Namibia • Rwanda • RSA • South Sudan • Tanzania • Zimbabwe Wholesale of electrification market transmission systems to the location. These principals include the following: Borthwick continues: “We provide a This has resulted in some projects Cost control and reporting fully comprehensive service to ensure being implemented where ordinarily Schedule control that the electrons generated are they would not have been. Project scope control delivered to your electrical equipment, Borthwick knows that funding Quality control safely and efficiently. We can meet for any project can be difficult Expediting and accurate materials your total project requirements to obtain. “However, due to our control through the supply of switchgear, involvement in the industry for a Project management systems cables and transformers. Not only do number of years, we have built Client reporting and transparency we supply the equipment; we are also relationships with sources of early Document control and governance able to assist with design specification stage funding and can assist clients in Change management and client and implementation.” how best to access this funding.” approval process Even though there is a concern “The key to project success is Health, safety and environmental around tariffs, some African countries being able to bring all the various management have very favourable feed-in tariffs aspects together in a coordinated in place for technologies like solar manner and ensure overall project Borthwick concludes: “When PV, wind and biomass. Thus, control. At Poweroad Africa, we considering your next energy project, projects that are aimed at self-use or therefore make use of tried and know that Poweroad Africa looks generation in isolated areas can be tested project management body of forward to forming lifelong partnerships viable when consideration is given knowledge (PMBOK) principals for that will enable you to navigate the to the opportunity cost, the loss of the delivery and implementation tricky world of projects and ensure that production, or the cost of installing of projects.” your project is a success.” ABOUT THE AUTHORS Poweroad Africa managing director Darin Mac Allister’s passion is driven by being involved in providing solutions in a constantly changing and demanding market. He has over 25 years’ international energy sector experience in delivering results in the African market. Neil Borthwick, sales and marketing director for Poweroad Africa, has over 10 years’ experience in the energy sector having worked on events in the US and Africa, and worked at a tier 1 PV module manufacturer. He holds a BSocSci in Politics, History and Public Relations (UCT). www.poweroadafrica.com Poweroad Africa executives, Darin Mac Allister (right) and Neil Borthwick (left). ESI AFRICA – BACKUP GENERATION SUPPLEMENT 5

BACKUP GENERATION CSP technology growth ranks high in South Africa: why is this? olar thermal power technology, with South Africa’s abundance of direct and carbon emissions programmes, more commonly known as normal irradiation (DNI), substantially foresees a break in the recent growth Sconcentrated solar power more than the above-mentioned of CSP plants in the country. According (CSP), has established a firm countries, this is starting to change. to the strategy from investors, local foundation in South Africa, with plants The combination of these facts has led government and power necessities, this already having been commissioned to a current (installed and projected) may allow South Africa to scale up easily and feeding back into the national net electrical capacity of solar thermal to second place position within the next electricity grid since 2015. This power plants in the country of 600MW, 15 years. technology continues to develop roots catapulting South Africa to third place within the market, especially with the worldwide in less than five years, as Examining CSP technology current growing expectations for South shown in Figure 1. From the pure technological perspective, Africa as an industrialised country. The Spain still holds onto first place, the use of thermal energy storage (TES) Department of Energy’s Renewable where government policies engaged systems plays a key role in daily plant Energy Independent Power Producer from 2004 until the end of 2013 saw operations, the economic feasibility Procurement Programme (REIPPPP) an increased installation of CSP of the project and grid stability. When has, at the time of this article, brought technologies, based on several looking at alternative backup power online 2,062MW of which 150MW are favourable tariffs and market conditions solutions, CSP technology has the attributed to two CSP plants, Kathu for facilities up to 50MW each. The USA capability to store energy, a unique and Bokpoort CSP in the Northern ranks second, where the development characteristic of the existing renewable Cape Province. of these plants started in the middle power technology we see today. When The existing installed power 80s and continues nowadays with the compared with the Spanish and USA capacities are still not enough to meet implementation of the latest molten salts markets (see Figure 2), all installed growing expectations. The confidence in technologies for storage systems and South African plants include energy CSP technologies from local authorities solar towers. storage facilities within different nominal and local and foreign investors is Currently, the USA, although capacities. An example of this is the supported by over 30 years of CSP’s strongly influenced by changes in the Bokpoort CSP plant in the Northern worldwide commercial track record, internal policies for renewable energies Cape Province, which has a 9.3-hour mostly in Spain and the USA. However, and other worldwide trends like oil costs storage capacity. This provides the CSP plant with the capability of extending the operation time beyond sunset and even to allow 24-hours continuous plant operation during the summer months. This proves critical when having to provide the grid with a certain capacity that would traditionally be provided by conventional technologies (nuclear, coal, gas and combined cycles), while making a big difference to other renewable technologies where energy storage is still far from fully reliable and commercial-scale implementation (particularly wind power). With many utilities seeking to reduce their carbon Figure 1: Net CSP capacity installed worldwide and number of CSP plants per country. footprint and provide a reliable supply Note: test facilities and plants under 2.0MW net nominal capacity have not been considered. of power to the grid, CSP is becoming a Source: National Renewable Energy Laboratory, United States. popular alternative. 6 ESI AFRICA – BACKUP GENERATION SUPPLEMENT

BACKUP GENERATION Bokpoort CSP plant in the Northern Cape, South Africa technology. Solar towers provide higher process temperatures (in the range of 500–600 o C) than parabolic trough-based technologies (up to 400 o C), which has an impact on overall process efficiency and the final cost of electricity. The experienced gained by local companies in the construction, commissioning and operation of the molten salts-based storage technologies (with particular reference to the tower technology-based plants) can turn South Africa into a technical reference Figure 2: Number of CSP plants and installed CSP net capacity, Total vs. TES. Note: test facilities and plants under 2.0MW net nominal capacity have not been considered. worldwide for further implementations of Source: National Renewable Energy Laboratory, United States. CSP plants in other countries. That said, Chile and Morocco are currently a reality, Technology development during bidding and at development stage. but what about the Middle East, India, the 2004-2013 period in Spain Compared with parabolic trough China and even Australia? resulted in a solid state-of-the-art technology, tower technology does not South African professionals, from know-how in storage systems, which use a secondary heat transfer fluid for all perspectives – civil, mechanical is now extending beyond borders collection of solar energy: towers based and electrical erection, engineering, and reaching fruition in South Africa. on direct steam generation and molten manufacturing, consultancy, O&M, Although direct steam generation salts as process fluid are commercially project management and grid specialists systems can work with storage based proven by specific Spanish and North- – are now appointed to be a part of it, systems on saturated steam vessels, American engineering companies. to enjoy these current and upcoming the most common and reliable way South Africa is slowly starting to see challenges to the full and to export this remains molten salts: potassium/ this technology emerge in the market, experience worldwide at later stages, sodium nitrate molten salts stored in not only as a learning process but also giving the know-how in CSP plants a two tanks with heat exchangers to as a fully commercial state-of-the-art local South African mark. collect (during charge at daytime) and to release (during discharge at night time) the excess of energy provided by the solar field. It is worth highlighting the fact that the installation of solar towers in South Africa is representing a significant portion of the overall local CSP references: as shown in Figure 3. Twenty five percent of the CSP plants, built or under construction, are based on this technology. Even in the early stages, this represents a huge difference when compared with Figure 3: Number of CSP plants and installed CSP net capacity, Total vs. Tower Technology. scenarios in other countries – and still NOTE: test facilities and plants under 2.0MW net nominal capacity have not been considered. more tower projects not mentioned in Source: National Renewable Energy Laboratory, United States. this editorial that are currently under ABOUT THE AUTHOR Carlos Espada is the process engineer and commissioning manager at ACWA Power, NOOR-2 Project Co. He has 10 years’ experience in the engineering and construction of concentrated solar power (CSP) plants. ESI AFRICA – BACKUP GENERATION SUPPLEMENT 7

BACKUP GENERATION MICROGRID TECH AS By: Amy Ryan, Deputy Editor, Metering & Smart Energy International esilience’ can be defined essentially ‘leapfrog’ the necessity to charging and microgrid software and as the capacity to recover be connected to conventional utilities hardware controls all contribute to ‘Rquickly from difficulties; in order to receive power. By US DoE developing a smarter, ‘harder’ grid. or toughness – and is therefore definition, a microgrid is “a group of S&C Electric rightfully describes it ‘as a crucial factor when considering interconnected loads and distributed an old idea with new potential’ as the the modernisation of critical power energy resources (DER) with clearly usefulness of this approach continues infrastructures for the durability and defined electrical boundaries that to be explored and its functionality longevity of the electric grid. Having acts as a single controllable entity re-examined as a decentralised torn through the US Northeast in with respect to the grid (and can) alternative for increasing reliability and 2012, Superstorm Sandy left some connect and disconnect from the quality of power supply. Depending 8.5 million people in the dark, acting grid to enable it to operate in both on the need, microgrid technology as a timely catalyst for US leaders grid-connected or island mode”. Its can be adapted to accommodate the and policy makers to investigate the architecture creates an environment operator’s requirements, yielding a overdue upgrade and reinforcement of for interoperability amongst microgrid host of economic and system efficiency the aging regional electricity grid. Like enabling technologies culminating benefits. These include: many 20th century electrical models in a robust electricity network, and Reduction in transmission loss around the world, the country’s legacy thereby creating a viable off-grid with use of direct current microgrid infrastructure was not designed to solution for sustained distribution of technology withstand the extreme pressure it has power amongst employing entities. Overall lower energy intensity been subjected to in recent years. It also allows for the incorporation rating and optimum use of Today’s power utilities are not only of renewable energy (predominantly available resources expected to keep up with escalating wind and solar) for locally produced Close to 100% uptime for critical demand and the changing needs of the power, reducing reliance on dirty loads (important in military modern consumer, but are also faced power and having the added benefit applications) with the arduous task of combating of zero-emission generation. Drawing Stable supply to meet consumers’ the adverse effects of severe storms, on natural cleaner sources, which are exact energy requirements whilst at the same time attempting becoming increasingly cost effective, Increased control and allows for to maintain a secure, uninterrupted microgrids provide an incentive to two-way communication in utility power of high quality regardless of a transition to a model that enables the distribution microgrids (UDM’s). compromised grid. bulk of electricity to be generated from Cost savings through locally Traditionally, backup power renewables. Surplus power can also generated power from renewable systems in the form of diesel be sold back to the central grid, in a sources and energy storage generators would be the typical process known as net metering. Apart systems solution to keep the grid going in the from making the grid greener and ‘Plug and Play’ capabilities event of a power failure; representing more resilient, distributed generation one of the earliest forms of the sources like CHP and fuel cells along As much as microgrid use is microgrid. This concept has evolved with advances in energy storage, supported, it has traditionally faced and continues to revolutionise the grid smart islanding inverters, automated equal opposition from electricity to which we are accustomed and could demand response, electric vehicle utilities who have historically had the 8 ESI AFRICA – BACKUP GENERATION SUPPLEMENT

BACKUP GENERATION VIABLE REDUNDANCY SYSTEM monopoly on power supply to end- sustenance of power to critical facilities grid technologies, UC San Diego users. Investor-owned utilities are in eight cities in preparation for future is currently generating 92% of its reluctant to embrace the microgrid power disruptions. When Metering & electricity to power the 1,200 acre as it is perceived to be a ‘disruptive Smart Energy International spoke to campus from two 13.5MW natural gas technology for their current business Alex Kragie, Deputy Chief of Staff at turbines which produce electricity and model’. Apart from regulatory and the Connecticut Department of Energy usable heat. Adding to its renewable legal issues that have come to the and Environmental Protection (DEEP), portfolio are its pilot programmes, fore, there exist grievances around he noted that resilience represented using retired electric car batteries to the imposition on a utility’s revenue a ‘key political driver’ in overcoming store electricity; and its 2.8MW fuel stream and the financial burden some of the regulatory barriers faced cell for power generation collectively of interconnection costs incurred by others and that state Governor saving $800,000 – $850,000 pm. In with the implementation of utility Dan Malloy’s fervour for the safety other efforts, San Diego is capitalising distributed microgrids. Utilities are and security of citizens, together with on its inherent sun potential with an called upon to recognise the value of leadership’s responsibility to large electrical circuit at its Naval Base microgrids in taking on the customary commercial and industrial sectors in Point Loma powered by 58kW utility functions when the central providing operational assurance, ‘led solar carports. The combination of grid is affected. This notion is further the charge’ in seeing the proposed expertise engineering, military and supported by Peter Asmus, principal programme being written into telecommunications expertise as well research analyst with Navigant Connecticut law in 2012. He believes as its avidity towards its renewable Research, who in a recently released the microgrid is a more cost-effective goals, lends itself to befit the creation report said: “In the United States, in approach than the hype around of microgrids. particular, the increasing frequency of underground power lines to realise New York University and Princeton, severe weather is prompting utilities energy surety and security. New Jersey, both operating co- to reconsider their historic opposition As for his predictions of how he generation plants, presented “beacons to customer-owned microgrids that sees the microgrid changing the face of light” amidst Sandy’s chaotic path. can disconnect from the larger grid of long-established utilities: “That all Taking into account that New York is hit and continue to function, allowing depends on what happens within the by approximately 100 storms annually, critical mission functions to stay up next 2-3 years; there is potential for the has necessitated local government to and running.” microgrid to transform the central grid address this reality and consider the An example of this co-operation – but not completely replace it.” As for implications of non-action in tackling can be found in Hartford, Connecticut, future development: “The sky is the limit; the worn regional grid that simply does where cities and universities will however, there needs to be considerable not possess the fortification needed to be allowed to link up to bulk power proof of concept in workability and withstand excessive trauma. New York systems across utility right of economic sustainability apart from state leadership was swift in its actions way. Despite regulatory difficulties government subsidisation”. He says that to repair the damage that was done experienced by many US states battery storage will be an increasingly and have put in place extensive plans looking into microgrids, Connecticut popular trend in microgrid set-ups, in to minimize the detrimental effects of was also the first to implement an cases of unanticipated power shortages. extreme weather events. New York $18 million state-wide rollout of In San Diego a microgrid State Governor, Andrew Cuomo and nine microgrid projects enabling the hotspot and “leading laboratory” for Vice President Joe Biden recently ESI AFRICA – BACKUP GENERATION SUPPLEMENT 9