Introduction to SAPP. Omar Vajeth Head SAPP: Project Advisory Unit. 23 June Snr. Transaction Advisor SOUTHERN AFRICAN POWER POOL

Transcription

1 Introduction to SAPP Omar Vajeth ead SAPP: Project Advisory Unit Snr. Transaction Advisor 23 June

2 Contents 1. Introduction to the SAPP 2. Project advisory unit 3. SADC market status 4. Current/planned projects 2

3 SAPP Introduction A Power Pool with a strong and successful history SAPP was created in 1995 with the following Objectives: to cooperate and coordinate in the regional electricity planning and operation Facilitate trading in SADC Promote regional cooperation in power projects development (Generation and Transmission Infrastructure Development) Increase Access to Electricity in Rural Areas Ensure that the region attracts investment for large energy intensive electricity users (attractive tariff) SAPP Plays a central pivotal role in the region between all SADC Public Sector Utilities, SADC Energy Ministries, and the private sector 3

4 SAPP EXECUTES ITS MANDATE VIA A ROBUST and PROVEN MANAGEMENT & GOVERNANCE STRUCTURE SADC - Directorate of Infrastructure and Services Executive Committee Management Committee Coordination Centre Board Planning Sub- Committee Operating Sub- Committee Environmental l Sub- Sub- Committee Markets Sub- Committee SAPP Coordination Centre 4

5 New Structure of the SAPP-CC SAPP CC Based in Johannesburg Personal Assistant Technical Unit Chief Engineer Trading Unit Chief Market Analyst CC Manager: Support Unit ead: Project Advisory Unit Operations Engineer Energy Trading Officer ITS FAO Transaction Advisor Planning Engineer Energy Market Analyst Messenger Environmental Specialist EO/PC Caretaker Procurement Specialist Key EO/PC = Environmental Officer / Project Coordinator ITS = IT Specialist FAO = Finance and Administration Officer = Vacant position Accounts Officer Financial Controller/Manag er SADC Liaison 5

6 Introduction to the SAPP-PAU The SAPP-PAU is a division of SAPP: Accountable for the preparation and implementation of agreed priority projects in SAPP By utilising grant funding the PAU will: Conduct regional analytical work, Screen, select, prepare and monitor the implementation of regional priority projects, and Play an advisory role to SADC governments and utilities Initial seed capital from the World Bank 6

7 IDA Grant Components The seed funding from the World Bank is provided as a grant trough the International Development Agency ( IDA ). It has three components: 1. Component A: Setting up the PAU under the SAPP which would fund the mobilization of a team (including supporting specialist) 2. Component B: Project Preparation Funds The funds in this Component would be managed by the PAU. Key focus will be on projects environmental and social performance. 3. Component C: Analytical support to SAPP This component would support analytical work to update critical nonproject specific information used by SAPP to support project preparation, including revision of the SAPP Pool Plan. 7

8 SAPP-PAU Status Operational The unit is operational fully staffed New office in Morningside has been started and is occupied Next steps: Project Zizabona TOR s being developed for Technical, Legal, Environmental, insurance and Financial ( modelling ) advisors. These resource will be available for preparation of projects in the SAPP STE/Mpanda Nkua Mozisa/BOSA Other projects SAPP-CC analytical support : - Working on funding models and structures - To meet with sponsors to finalise structure and negotiate risk allocations - Appoint legal advisor and finalise documentation across the project - Currently finalising scope of work with the Sponsors - Currently in execution - Working on projects with other SAPP utilities - There is an agreed process to release funding for project preparation. Pool Plan started under the PSC: SAPP-PAU to provide project management and environmental support Environmental Management and Social Framework: being led by the SAPP-PAU with Environmental subcommittee support. Launched EOI for the EAPP and SAPP integration study 8

9 SADC Electricity Status As reported by utilities as reported on the 17 June 2016 Gabon Luanda Congo Dem Rep of Congo Brazzaville Kinshasa Angola Namibia Lusaka Windhoek T Gaborone Pretoria Johannesburg T South Africa Zambia Botswana T Rwanda Burundi Lesotho T arare Malawi Lilongwe Zimbabwe T T T T P T TT T Tanzania T T T Maputo T Mbabane Swaziland T Kenya Nairobi Mozambique Dar es Salaam Cape Town N P 9

10 SAPP Introduction The big challenge is to electrify 280m people SAPP includes 12 SADC Member Countries 280 Million people Regional Average Electricity growth rate 4.6% p.a. Consumption 400TWh DR Congo Tanzania Angola Zambia Malawi Installed Capacity Operating Capacity 61,894 MW 46,959 MW Namibia Zimbabwe Botswana Mozambique Peak Demand 52,524 MW Swaziland Shortfall 5,583 MW South Africa Lesotho 10

11 ELECTRICITY GENERATION MIX IN SADC SAPP Installed Generation Capacity Landfill 0.03% Wind 4.03% ydro 21.02% Solar PV 2.94% Solar CSP 0.97% Nuclear 3.01% OCGT 1.51% Coal 62.05% Distillate 4.38% Biomass 0.07% Total Installed Capacity stands at 61,859 MW 11

12 SAPP Demand and Supply Balance in No. Country Demand and Supply Balance with Current Peak Demand Utility Installed capacity (MW) Operating Capacity (MW) Current Peak Demand (MW) Peak Demand Plus Reserves 5,583 MW Shortfall for all SAPP members. Capacity excess/ shortfall including Reserves Angola ENE 2,210 1,772 1,599 1,829 (57) Botswana BPC (239) DRC SNEL 2,442 1,066 1,317 1,507 (441) Lesotho LEC (102) Malawi ESCOM (22) Mozambique EDM/CB/MOTRACO 2,724 2,279 1,780 2, Namibia Nampower (366) South Africa Eskom 46,963 36,000 34,481 36,481 (481) Swaziland SEC (205) Tanzania TANESCO 1, ,070 (247) Zambia ZESCO/CEC/ LPC 2,206 2,175 2,287 2,616 (441) Zimbabwe ZESA 2,045 1,555 1,589 1,818 (263) TOTAL ALL 61,894 46,959 45,930 52,542 (5,583) TOTAL Operating Members Only 57,952 44,013 43,070 49,270 (5,257)

13 GENERATION PROJECTS COMMISSIONED in 2015 GENERATION PROJECTS - COMMISSIONED 2015 No Utility Country Name Type Capacity [MW] Funding / Status 1 RNT Angola Lomaum ydro 50 Commissioned 2 BPC Botswana Diesel Diesel 35 Commissioned Coal 3 Eskom South Africa Medupi 722 Commissioned 4 IPP South Africa Renewable Round 3 PV,CSP,Wind 322 Commissioned 5 IPP South Africa OCGT OCGT 335 Commissioned 6 ESKOM South Africa Sere Wind 100 Commissioned 7 TANESCO Tanzania Kinyerezi 1 Gas 150 Commissioned 8 ZESCO Zambia Lunzua ydro 15 Commissioned 9 ZESCO Zambia Itezhi Tezhi ydro 120 Commissioned 10 ZESA Zimbabwe Pungwe ydro 15 Commissioned TOTAL 1864 South Africa Decommissioning Coal TOTAL ADDITIONAL 1684

14 Generation Projects planned in 2016 No Utility Country Name Type Capacity [MW] Funding / Status 1 RNT Angola Cambambe 1 & 2 ydro 350 Under construction 2 RNT Angola Cambambe 3 & 4 ydro 350 Under construction 3 RNT Angola GENERATION PROJECTS TARGET Cambambe I Rehabilation ydro 80 Under construction 4 IPP South Africa OCGT IPP Gas 1070 Under construction 5 IPP South Africa Cogen Gas 100 Under construction 6 IPP South Africa Renewable Round 3 PV,CSP,Wind 454 Under construction 7 NamPower Namibia Ruacana ydro 15 Under construction 8 NamPower Namibia Renewable Energy Renewable 25 Under construction 9 IPP Mozambique Gigawatt Gas 120 Under construction 10 IPP Mozambique Kuvaninga Gas 40 Under construction 11 IPP Mozambique Nacala Power Ship Gas 110 Under construction 12 EDM Mozambique Mavuzi Chicamba ydro 90 Under construction 13 IPP Zambia Maamba Colliery Coal 300 Under construction 14 ZESCO Zambia Musonda ydro 10 Under construction 15 SNEL DRC Inga 1 ydro 110 Commissioned 16 SNEL DRC Inga 2 ydro 348 Commissioned 17 IPP Malawi Diesel Diesel 10 Commissioned 18 IPP Zimbabwe Dema Diesel 200 Under construction TOTAL A good combination of IPP s and Utility projects South Africa Decommissioning Coal -90 TOTAL Additional 3692

15 Generation Projects planned to be Commissioned [ ] No Country Commited Generation Capacity, MW Total 1 Angola ,551 2 Botswana DRC Lesotho Malawi , ,115 6 Mozambique ,500 3,460 7 Namibia ,030 8 RSA 1, ,167 1,445 2, ,528 10,653 9 Swaziland Tanzania , , , Zambia , ,200 3, Zimbabwe ,860-1,200 4,517 TOTAL 3, 3, ,529 4,333 3,607 8,182 2,353 5,728 32,504 At least half of this is already committed 15

16 SAPP Demand and Supply All SAPP Members Planned Capacity vs Forecast, MW All SAPP Members (As at May 2016) MW Peak Demand Capacity Planned (No Renewables) Capacity Planned (All Technologies) 16

17 Project status - Details 17

18 There are many projects being developed by utilities in the region. They are at various stages Feasibility Stage / Project Preparation 1. ZTK 2. ZIZABONA 3. Mozambique-Malawi 4. MOZISA 5. BOSA 6. ANNA 7. STE 8. Zambia - Malawi 9. Zambia - Mozambique Pre-Feasibility Stage 1. Botswana Namibia 2. Mozambique -Tanzania 3. DRC Angola 4. Malawi Tanzania 18

19 Project Stakeholders: STE Mozambique Backbone and Mpande Nkua The project has been rejuvenated by the MoE in Mozambique Engaging with UTIP, the GOM, EDM, and CB on support that can be provided. Technical and environmental work has been progressed substantially revision required 2024 completion Role Sponsors Transaction Advisor Other Stakeholders Financiers Project Management Project Party EDM CB To be appointed SADC, SAPP, ESKOM, Regional Utilities Still to be determined donors expressed interest UTIP Government department SAPP-PAU involvement being discussed 19

20 Project Stakeholders: Zimbabwe Zambia Botswana Namibia (ZIZABONA) Project Scope: Phase 1: wange-victoria Falls-Livingstone line, utilizing the existing ZESA-NamPower 80MW PPA (15year) and the existing 220kV Livingstone-Zambezi Caprivi lines Phase 2: Victoria Falls-Pandamatenga and Livingstone-Zambezi lines. 231km Project Cost: Total Cost USD 223 million First phase USD 33 million 76km 101km Project Status: Consultants were appointed for the 3 packages with funding from the AfDB Transaction Advisor (TA), Fitchner to complete scoping and preparation of tender documents for the EPC contractor ESIA completed in Botswana, Namibia & Zimbabwe Next steps Updated structure being discussed and negotiated with Sponsors Legal workstream to start finalising contractual structure. Financial model development 2019 completion (Phase 1) Role Sponsors Transaction Advisors Environmental Consultants Financiers Project Management Project Party ZESA (Zimbabwe) ZESCO (Zambia) BPC (Botswana) NamPower (Namibia) Fitchner (current Advisor) SWECO (ESIA for line in Zambia) African Development Bank (AfDB) Norway/Sweden Trust Fund SAPP CC (via SAPP-PAU) 20

21 Project Stakeholders: Project Scope: Mozambique Zimbabwe South Africa (MOZISA) 935 KM of 400 KV transmission line across three countries Project Cost: Estimated Total project cost will be US$342.2 million made up of the following components US$132.2 million (Zimbabwe Mozambique), US$210 million (Zimbabwe South Africa) Expected Benefits Mozambique excess capcity to be traded in the region. 21 Increase capacity in Zimbabwe unlocking bottlenecks Project Status: Inception Report to be completed Feasibility Report is in progress ESIA is in progress Steady State Modelling has commenced EDM transmission line route has not been finalised 2022 completion Role Sponsors Transaction Advisors Sub-Contractors Financiers Project Management Project Party EDM (Mozambique ZESA (Zimbabwe) Eskom (South Africa KPMG Services Proprietary Limited, Trans-Africa Project (Pty) Limited (TAP) Technical GIBB (Pty) Limited Environmental Studies Norton Rose Fulbright - Legal Baagi Environmental Consultancy Development Bank of Southern Africa (DBSA) KfW SAPP CC (via SAPP-PAU)

22 Project Stakeholders: Project Scope: Botswana South Africa (BOSA) Interconnector Close to 560 KM of transmission line to be built and operated at 400KV Total Project cost Still do be determined Status Aurecon appointed as Transaction Advisor Project Kick-off meeting held Project Steering Committee comprising the key project stakeholders to be established Role Sponsors Project Party BPC (Botswana) Eskom (South Africa) Training component included with Completion 2022 Transaction Advisor Aurecon (Technical) erbert Smith Freehills (Legal) EO (Environment) J Maynard Project Advisory Services Financiers DBSA (KfW) Project Management SAPP CC (via SAPP-PAU) 22

23 CONCLUSION The SAPP is the oldest power pool in Africa and was established in The SAPP is the most interconnected of all the power pools in Africa and is regarded as the most advanced at the moment. Energy trading via bilateral contracts started in the 1960 s and has since expanded to include the DAM and IDM and is planning to include other markets in the future. The expansion of generation and transmission infrastructure is the biggest challenge facing the SAPP. 23