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Greater Saldanha RSIF Energy Report

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Greater Saldanha RSIF Energy Report Greater Saldanha Regional Spatial Implementation Framework Energy and Electricity Grid Corridors Final Report December 2017 Contact Client Chrizelle Kriel Environmental and Spatial Planning Western Cape Department of Environmental Affairs and Development Planning email: [email protected] call: 021 483 0765 Professional Team GIBB Jim Stanbury / [email protected] Karen Liebenberg / [email protected] Megan Bussey / [email protected] 14 Kloof St, Gardens, Cape Town 021 469 9100 Setplan Antony Meuleman / [email protected] Rodney Cronwright / [email protected] Janine Loubser / [email protected] Content 1. Introduction 6 3. Future Electricity Generation 4. Summary Conclusions and 1.1. Background 6 Scenarios and Associated Recommendations 29 Corridors for Electricity Grid 1.2. Project Terms of Reference 6 4.1. Institutional Cooperation and Infrastructure and Gas Pipelines Coordination 30 1.3. Outputs of the GSRSIF 7 16 4.2. Information Dissemination 31 1.4. This Report 7 3.1. Summary of Policy Framework 16 4.3. Planning Tools and Regulatory 1.5. Report Structure 8 3.2. Future Electricity Generation Instruments 31 2. Context 9 Scenarios of Relevance to GSR 17 4.4. Possible Catalytic Interventions 31 2.1. Energy Generation and Electricity: A 3.2.1. Scenario 1: 1 GW-Plus Nuclear Baseload 4.4.1. LNG Importation Facility at Saldanha Bay Generation 17 Broad Legal and Regulatory Context Port 31 9 3.2.2. Scenario 2: 1 GW Gas-to-Power Generation 4.4.2. Challenging the Single Buyer Model 32 18 2.1.1. The Electricity Supply Industry in Outline 10 3.2.2.1 Ankerlig Power Station Conversion to CCGT 18 Reference List 33 2.1.2. The Oil and Gas Sector in Outline 11 3.2.2.2 Saldanha Steel IPP Gas-to-Power Initiative 21 2.2. Status Quo of the Electricity Network in GSR 12 3.2.3. Scenario 3: Smaller-Scale IPP Gas-to-Power Generation 22 2.2.1. Current Electricity Grid Infrastructure (EGI) 12 3.3. Spatial Corridors Associated with 2.2.2. Future Development Demand and EGI and Potential Gas Pipeline Capacity Impact Projections in GSR 13 Infrastructure in the GSR 23 2.2.3. Upgrade Proposals for the West Coast EGI 3.3.1. Current and Potential EGI Corridors in GSR 14 24 2.2.3.1 Saldanha Bay Network Strengthening Project 15 3.3.1.1 Saldanha Bay Network Strengthening Project 25 2.2.4. GSR Electricity Implications 15 3.3.2. Gas Pipeline Networks 26 3.3.2.1 Phase 1a Corridor: Saldanha to Ankerlig 26 3.3.2.2 Gas Pipeline Network Ibhubesi Gas Field 26 List of Figures and Tables Table 1. Projects of Relevance in the GSR Figure 11. Locality of the Proposed Saldanha (Eskom TDP 2016-2025)) 14 Steel Gas-to-Power Plant (Downloaded from https://gasnetwork.csir.co.za/workshops-and- presentations/ accessed on 21 October 2017) 21 Diagram 1. GSRSIF Package of Reports 7 Figure 12. Layout and Linkages between Saldanha Steel Gas-to-Power Plant and Manufacturing Facility Figure 1. Overall relationship of the IEP and other 22 Plans in Energy Planning 9 Figure 13. National EGI and Gas Pipeline Spatial Figure 2. Overview of Prospective Onshore and Corridors 23 Offshore Oil and Gas Resources 11 Figure 14. EGI Corridors in the GSR (Commissioned, Figure 3. Close-up of Western Cape provincial Surveyed and/or Designed Powerlines) Data transmission network (Source: extract from Figure Source: Eskom 24 6.29 of Eskom’s 2016-2025 TDP) 12 Figure 15. Saldanha Bay Network Strengthening Figure 4. Eskom’s West Coast South distribution Project: Preferred Spatial Layout 25 system 13 Figure 16. Potential Gas Pipeline Route Alignments Figure 5. Zones served by individual substations 13 (CSIR, 2014) 26 Figure 6. Substation load capacity and estimated Figure 18. Ankerlig Power Station Showing Potential additional demand (Data source: Eskom Western Onshore Gas receiving Facilities and Proposed Cape West Coast Master Plan: load forecasting, Alignments of Gas Pipeline and 132 kV Power Line 2011) 14 (Source: CCA Environmental, Pty) Ltd, March 2017. Proposed Development of the Ibhubesi Gas Project: Figure 7. Energy SIPs (Source: PICC, 2012. Final Environmental Impact Report – Addendum Presentation: Summary of the National Infrastructure Report) 27 Plan) 16 Figure 17. Regional View of Ibhubesi Gas Pipeline Figure 8. Duynefontein NPS Site (Source: GIBB Alignment Alternatives 27 Nuclear-1 EIA, Revised Draft Version 2, August 2015) 18 Figure 19. Composite Map of Gas Pipeline Alignments in GSR and GCM 28 Figure 9. Locality of the Proposed Ankerlig CCGT Power Station and associated 400 kV Tx lines (alternative alignments) to Omega/Sterrekus Substation 19 Figure 10. Latest National Phased Gas Pipeline Network Phasing (including National EGI Corridors) (Source: Taken from presentation made at the Operation Phakisa Offshore Oil and Gas Exploration A1 Workstream, Expert Reference Group Meeting 1, 13 September 2017) 20 Acronyms and Abbreviations 5 CCGT Combined Cycle Gas Turbine NPS Nuclear Power Station CoCT City of Cape Town OCGT Open Cycle Gas Turbine CSIR Council for Scientific and Industrial PICC Presidential Infrastructure Research Coordinating Commission CSP Concentrated Solar Power R&D Research and Development DEA National Department of RE Renewable Energy Environmental Affairs SBM Saldanha Bay Municipality DEA&DP Western Cape Government: SBNSP Saldanha Bay Network Strengthening Department of Environmental Affairs Project & Development Planning SDF Spatial Development Framework Dx Distribution SEA Strategic Environmental Assessment EGI Electricity Grid Infrastructure SFF Strategic Fuel Fund EIA Environmental Impact Assessment SIP Strategic Integrated Project ESI Electricity Supply Industry TDP Transmission Development Plan GSRSIF Greater Saldanha Regional Spatial (Eskom) Implementation Framework Tx Transmission GSR Greater Saldanha Region WC Western Cape IEP Integrated Energy Plan WCG Western Cape Government IPP Independent Power Producer WCIF Western Cape Infrastructure IRP Integrated Resources Plan Framework kV Kilovolt WCIP West Coast Industrial Plan LNG Liquefied Natural Gas MVA Megavolt Amp MW Megawatt NDP National Development Plan: Vision 2030 NEMA National Environmental Management Act, Act 107 of 1998, as amended NPGPN National Phased Gas Pipeline Network Greater Saldanha RSIF / Energy and Electricity Grid Corridors Report / December 2017 6 1. Introduction 1.1. Background • Improving regional competiveness; 5. A review and update of the Greater Saldanha Area Environmental Management Framework • Skills Development (education) linked to Job In March 2014, the Western Cape Minister of that includes a Strategic Environmental Creation (assimilating young people out of Local Government, Environmental Affairs and Management Plan. Development Planning approved the Western schools); 6. Proposals to unlock opportunities in the Cape Provincial Spatial Development Framework • Integrated Social Strategy: Co-ordination and functional region’s space-economy, (PSDF). building of social capital in all stakeholders In adopting a strategic view of the Provincial space through an appropriate structure (per 7. including the identification of a list of catalytic economy, the PSDF identified three functional municipality) supported by a Social Contract; governmental regional infrastructure projects and regions where significant development trends and/ 8. by determining bulk infrastructure requirements or development potentials were seen to exist. One • Infrastructure: Integrated Planning and for water, solid waste, energy, and transport of these identified functional regions is the emerging Budgeting. over the next 15 years; taking into account Greater Saldanha Regional Industrial Complex, with existing Infrastructure Growth Plans (IGP) and In addressing all the above, the project Terms of the Saldanha Bay/Vredenburg growth centre at its the Industrial Project Inventory conducted by Reference specified that the GSRSIF should contain heart. the DEDAT; also including three-year action the following elements: This Greater Saldanha Region (GSR) is noted as plans to align and inform the MTEF. 1. A vision for the integrated development of the experiencing a wide range of developmental 9. An accessibility analysis for social infrastructure functional region. and environmental initiatives driven by an array (i.e. education, health, libraries and sport of role-players. These initiatives, furthermore, are 2. An assessment of the existing levels of facilities) for the West Coast District. likely to be progressively realised in implementation development in the functional region. programmes over an extended period of time. 10. Proposals on the rationalisation and clustering 3. An assessment of the challenges of provincial of social services and facilities in order for It is against this background that the Western land use planning in relation to other provincial government to deliver these services in an Cape Government: Department of Environmental functional areas listed in Schedules 4 and 5 of integrated and financial sustainable manner. Affairs & Development Planning (WCG: DEADP), the Constitution; in partnership with the municipalities in the West 11. A determination of the viability of different 4. An assessment of Provincial priorities, objectives Coast district, agreed to collaborate in preparing public transport options, as well an investigation and strategies, dealing in particular with: a Regional Spatial Implementation Framework on the shift from road to rail for freight. (RSIF) for the broadly defined Greater Saldanha - Compliance with land use planning principles 12. Proposals on settlement level
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