Overview of SANERI

KM Nassiep

Chief Executive Officer

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Contents

About SANERI

BackgroundStructureFocus

SANERI Programmatic Areas – Focal areas

Advanced Fossil Fuel UseClean Energy SolutionsEnergy Data and Knowledge ManagementEnd Use and Infrastructure Management

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Background to SANERI establishment

Established in response to concerns from government regarding perceived threat to indigenous energy research capacity

Eskom Research Facilities in Rosherville, JohannesburgCSIR Enertech capacity

Established under Ministerial Directive in October 2004

Reports to both DME (strategy) and DST (funding) in terms of governance

Is directed by the objectives of the Draft National Energy R&D Strategy of South Africa (10th Order Draft, 2007)

Has mandate to conduct own research or solicit work from external parties

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SANERI is 100% state funded at present, receiving grants via DST

A total of R70 million has been transferred to SANERI from government, since 2004/5

An amount of R42 million has been made available in 2007/8 for activities related to:

Flagship project developmentChairs of Energy Research ProgrammeBursary Support ProgrammeEstablishment costs

SANERI mandated to leverage additional funds through grants, royalty income and through collaborative projects

Current levels of state funding insufficient to support in-house research or to fund projects to the required level

State Funding of SANERI

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CEF Group Structure

Minister of Minerals & Energy

CEF Board of Directors

Chairman

CEF (Pty) LtdCEO

Wholly incorporated divisionse.g. NEEA, EDC

Part Shareholding

Funds

Wholly owned Subsidiaries, includingSANERI (Pty) Ltd

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CEOKM Nassiep

Senior Manager

Clean Energy SolutionsDr T Mali

Senior ManagerAdvanced Fossil Fuel Use

Dr AD Surridge

Senior ManagerEnd Use & Infrastructure Mngt

Dr M Bipath

Personal Assistant(K Trimmel)

Head of Administration(D Govender)

Senior ManagerEnergy Policy / Planning

Dr P Masangane

System AdministratorVacant

Research AssistantE Nyandoro

Research AssistantL Steyn

Portfolio ManagerRenewable Energy

Vacant

Portfolio ManagerClean Coal Technologies

Vacant

Portfolio ManagerEnd Use and Energy

Efficiency Vacant

Portfolio ManagerEnergy Modelling and

Planning Vacant

Administrative Assistant Vacant

Administrative Assistant Vacant

SANERI Management Structure

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SANERI Key Objectives

Ensure long term health of energy research capacity in the country and assist in stimulating a culture of innovation in the energy research environment

Support government goals of energy security of supply through identifying viable and sustainable diversified energy supply options

Address deficiencies in current race, gender and age profile of postgraduate students, academia and scientists

Stimulate socio-economic upliftment through improved access to modern, clean and affordable energy services

Support economic growth through development of flagship projects that will ultimately result in commercial rollout

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Key Challenges Faced by SANERI

Low PIER&D spend in SA – about 0.8% of GDP is spent on R&D, of which about 6% is Energy

Low contribution from Black scientists – measured in publications where about 8% is produced from Black Scientists

Percentage women in energy R&D sector is low, about 26.5% in 2004, which is well below equity targets of government

Challenge of meeting ASGI-SA goals with consequent increase in demand of natural resources and energy

Access to modern, clean and affordable energy remains a challenge for about 30% of South Africans

Long-term funding is not secure, proposed budget allocation of R42 million for 2007/8 not adequate for future research needs

Skills loss in Energy R&D sector, particularly Eskom Research

Limited funding for SANERI makes better coordination and ownership of PIER&D facilities impossible

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Thematic Areas addressed by SANERI (proposed)

9 thematic areas identified

Energy infrastructure optimisationEnergy Efficiency and DSMUnderstanding the impact of energy use on the environmentStimulating socio-economic development through the productive use of energyCleaner fossil fuels, including clean coal technologyRenewable energyAlternative energy, including hydrogen economy and fuel cellsEnergy planning and modelling andEnergy policy research

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Key Strategic Focus Areas

Energy R&D Agenda

Human Capital Development and TransformationEnergy Research Chairs at UniversitiesRenewable Energy and Sustainable Energy Hub at the University of StellenboschBursary Support Programme

Cooperative Energy R&D ActivitiesFlagship projects

Governance

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Research Policy

SANERI to operate initially as research management function, but focus to shift to mainly in-house research from 2008/9

For SANERI to consider in-house research it must consider the following:

skills loss in sector, e.g. Eskom ERIDestablishment of Centres of Excellenceadditional Research Chairs

Most of research supported should be applied, incremental research

Exclusions are nuclear energy and standards developmentSmall percentage should be devoted to fundamental research (pure basic), to generate intellectual property rights for sustainability

BEE procurement supported

Support to women – either as researchers or project developers will be encouraged

Strategic alliances, including the development of collaborative projects, will be sought

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Programmatic Areas

This next section deals with the focus of the four individual programmatic areas currently in place in SANERI

An additional focus on 2010 Green Transportation is to be added in 2007/8 – this will be a 5-year programme and is funded separately funded by the Department of Science and Technology

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Advanced Fossil fuel Use:Advanced Clean CoalStatement of Problem

Coal is currently SA’s only Economically Energy Resource

Coal Resources Finite

Long-Term Mining Seen ‘Cherry Picking’ and Decline in Quality

Further Understanding of Current Mined Coal Characteristics

Synfuels to Supplement Dwindling International Oil Supply

Natural Gas a New Entry to SA Energy Economy

Environmental Pressures:

Lower Greenhouse Gas Emissions

Efficiency Measures

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Advanced Clean CoalVision

Characterisation of New Coals

Characterisation of Coal Combustion

Lower Emissions [local & global]Higher EfficiencyConversion to Liquid FuelsOptimisation of Resources

Lower Environmental Impacts

Towards Compliance with Kyoto and SuccessorLower Local Emissions

Operationalisation of Phase I SANERI Fossil Fuel Laboratories

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Advanced Clean CoalResearch Focus Areas

Coal Characterization

Coal Preparation Parameters

Coal Beneficiation

Handling & Storage

Marketing & Economics

Combustion and Electricity Generation

Industrial and Household utilisation

Gasification and Conversion

Metallurgical Uses

Environment: Mitigation

Environment: Adaptation

Liquid Fuels

Blue Skies

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What are Clean Energy Solutions ?

Clean Energy Solutions

Renewable energy that flows from natural sources

Biomass

Solar

Wind

Hydro

Ocean (wave and tidal)

Alternative Energy

Hydrogen Economy

Fuel Cells

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Drivers?

Climate Change

Global warming

CO2 emissions

Energy supply diversification

Imbalance of reserves

Energy security

National Policy

National target – Renewable Energy Production of 10 000 GWh by 2013

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Barriers?

“About 13 percent of primary energy globally comes from renewables and the technical potential for their use is very large.”

Cost

Availability

Reliability

Environmental and social impacts

Land and water use

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Focus?

Biomass

Biofuels

Feedstocks

3rd Generation conversion technologies

Value Chain Understanding

Waste gasification

Solar

PV – material and solar cells, module characterisation and design

Renewable Energy Technologies in Buildings

Integration in house design and planning

Wind

Wind speed mapping

Component design

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Focus?

Ocean (wave and tidal)

Low key investment and cooperate with Eskom on ongoing research and track international landscape

Alternative Energy

Support from DST

Capacity Building

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Energy Data and Knowledge

Management: Relevant National Government Prerogatives

Energy Planning

Requires ongoing updating of energy data

Requires consistency in data collection

Requires an appropriate energy model system with good assumptions

Energy Policy Development

Needs to be from an informed view

Proposed policies need to be modeled to study likely impacts

Energy Research & Technology Development

Information on ongoing research activities is needed to reduce duplication of public funding

A system that makes it easy for possible (local and international) collaboration research areas to be identified is needed as this enhances research

Gaps in research activities need to be identified and quickly addressed

Research output needs to be monitored

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Ongoing National Government Initiatives

Planned establishment of National Energy Planning Institute

Preparation for Integrated Energy Planning II

Programme for identifying a suitable energy model system for the South African energy sector is underway

Establishment of energy data and information system is proposed

SANERI established to undertake and oversee energy research and technology development

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Proposed focus areas for division

Research on trends in energy statistics

Will better inform assumptions in energy models

Will study impact of policies

Might improve data collection methods and increase consistency

Might help develop appropriate regional energy planning models

Will ensure human capital development in energy planning and modelling

Energy research information system

Baseline data will be used to measure SANERI’s performance

Trends in energy research outputs can be used to measure strength of research in the country

Will reduce duplication of funding and disseminate research outputs/information

Will help to increase research collaboration

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End Use and Infrastructure:Energy efficiency: Electricity sector

DSM

Focus is in 4 sectors (Commercial, Residential, Industrial, Transport)

Looking at new DSM technologies e.g.

Superconductors to reduce line losses in power sector

Motor efficiency

Lighting

Thermal insulation

Solar

Looking at energy optimization techniques

Assisting NEEA with technology development and testing

Load management

Load shifting /clipping techniques

Wider application of interruptible load tariffs

Understanding customer responses in the different sectors

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Energy Efficiency: Transport sector

Supply side

Focus is on sustainability

Environmental impacts (Climate change)

Socio-economic development (Second economy)

Growth

Diversification of fuel options

New propulsion technologies

Electric vehicles

Trains, buses, cars

Fuel cells

Hydrogen economy

Public transport

Change management strategies to deal with

Behaviour change in support of public transport

Support for new technologies

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Energy Efficiency: Transport sector

Demand side management

Concerned with how to change behaviour from private to public transport

Pricing options

Load management

Introduction of tolls

Private vehicle fuel taxes

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InfrastructureMajor focus is on sustainability and energy security and optimisation

Sustainability

Carbon capture and storage ( oil and gas and electricity)

Emissions

Energy security

Alternative fuel sources (solar, gas, batteries)

Support the development of the hydrogen economy

Planning for capacity expansion (what, when, how)

New technologies to deal with capacity expansion (choices)

Optimisation

Asset management (oil and gas and electricity sectors) – increasing the life-cycle of existing assets, efficiency

Electricity sector network automation

Thank You