Connecting Hydro Power in Africa -

The Need for Transmission and

Distribution Grid Interconnectivity

and Capacity

Nishan Rathanlall | Sector Unit Manager

Africa Utility Week, CTICC, 17-19 May 2016

1.Energy in Africa and the Electricity

Market/Value Chain.

2.Hydro Power Potential locations across

Africa versus potential Grid Plans/Power

Flows.

3.Why Grid Connectivity and

Interconnectivity.

4.The need for Generation Capacity.

5.Africa Power Pools creating

Interconnectivity and Capacity.

6.T&D Sector Trends

Index

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Energy in Africa

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“In Africa power is inaccessible,

unaffordable and unreliable for most

people – this traps people in poverty –

today 25 African counties face an energy

crisis”

World Bank Africa Energy Unit 2012

Energy in Africa – Access to Electricity

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2012 was the UN year of universal access to

energy for Africa

Some of our African countries have an electricity

access rate below 20 percent

In South Africa it is 85 percent with universal

access planned for 2025

Power & Energy Sector Market

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Inbound Logistics

Generation Transmission & Distribution

Reticulation

Primary Energy

Hydro Power Potential locations versus Power Flow plans

across Africa

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Why Connectivity and Interconnectivity?

Transmission and Distribution Grid/Network Connectivity is important for the

development of Hydro Power projects (clean energy) on the continent.

Interconnectivity = Power Pools.

Not all jurisdictions have access to natural resources for power generation e.g.

coal, gas, hydro etc. Also the MW potential of Generation Capacity is sometimes

larger than the offtake capability of a country, so the need to export to other counties

where there is an offtake capability or higher load growth projections/potential.

Ability to trade energy across the regions in a pool.

Access to funding – the risk profiles are different in each region and therefore

certain countries with a lower risk profile can attract lower costs of funding with less

risk mitigation.

Ability to manage Environmental requirements – some regions have a

concentration risk e.g. coal in SA. Another region may not have that risk hence

resulting in the ability to utilise the regions energy resources more effectively. 2

Regional interconnections are drivers of economic growth and hence job

creation. The associated Transmission Grid projects its self, create jobs in the

regions i.e. Consulting, Engineering, Construction etc.

It attracts investment – Having access to electricity and being able to connect

faster, allows investors to have faster payback periods.

Results in the ability of one region to meet its daily energy deficit if connected

to a interconnected pool.

Increases security of supply.

The access to Generation sources results in the ability of a region/country to

meet its electricity universal access targets towards getting people connected

to the grid.

Technically, interconnecting Transmission networks increases stability under

light loaded situations. Increased Fault Levels assist with Quality of Supply with

regards to voltage fluctuations etc.

Why Connectivity and Interconnectivity cont.

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Why Connectivity and Interconnectivity cont.

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Interconnectivity will help with managing the

variability/intermittency aspect of Renewable sources like Wind

and PV.

Being able to dispatch more controlled resources like Hydro and

Pump Storage schemes becomes a reality with Interconnected

systems,

Interconnectivity will assist in reducing the marginal cost of

generation.

Interconnectivity will assist if the load forecasts in any country are

underestimated. Generation from other countries could make up for

this instead of having to load shed.

The need for Grid Connection Capacity

In any Hydro Power Development whether large, medium or small scale, it is

essential to study/determine the Transmission or Distribution Grid Capacity

Availability as one of the first steps.

It is essential to work with the Electricity Utility Engineers/Planners to determine

this capacity.

It will be required that the existing countries or Power Pool’s Grid Code Planning

and connection requirements are met.

Its recommended that Utility Planning Engineers carry out studies on all/most parts of

their networks points, giving a Generation Capacity outlook so that developers

have information on existing and potential Transmission Capacity. E.g. the Eskom

Generation Connection Capacity Assessment (GCCA) reports/updates.

The above does not mean that new capacity with new network development does not

get considered. This only means that there will be a lead time to create network

capacity.

It can take up to 10 years or more depending on the challenges to create new

Transmission lines. 5

The need for Planning Studies within Africa Power Pools

Require medium to long term integrated Energy/Generation and

Transmission Development plans supported by good load/demand

forecasting.

This can be achieved by Power Pools:

o SAPP – Southern African Power Pool

o East African Power Pool

o West African Power Pool

o Central African Power Pool.

o COMELEC

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Africa Power Pools - Diagram

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T&D Major Sector Trends

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• Huge Capital requirements over next 10 years predicted in SA and Africa e.g.

approx. R170billion planned at some point in the Eskom Transmission Development

Plan for new works.

• Africa Transmission Development could be valued much higher than the Eskom

amount above.

• Drivers:

o Economic Growth and Reliability enhancement (Grid Codes and Aging assets)

o Transfer of Bulk Electricity from new Generation nodes in Africa to Load

centres.

o Other African Countries in general have an under-developed Electricity network

– 8-20% of people in Africa (SAPP) have access to electricity.

• Some Bottlenecks:

o Lack of Funding

o Co-operation between countries.

o Lack of Regulatory Frameworks, Planning directives and policies for cross

border trade of power.

o Power Pools can solve these and most power pools seem to be achieving this

goals.

o Difficulty to build Transmission lines through certain regions.

NISHAN

RATHANLALL

+ 27 (83) 296 8774

+ 27 (11) 519 4721

nrathanlall@gibb.co.za

Contact information

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