Biogas in Südafrika: Das GIZ-Programm SAGEN und Potenziale vor Ort

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Durchführer

Biogas in Südafrika: Das GIZ-Programm

SAGEN und Potenziale vor Ort

Carsten Linnenberg

GIZ external consultant for the South African German Energy Programme (SAGEN)

Berlin, 16.11.2015

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South African German Energy Programme

(SAGEN): The objectives, principles and duration

Important principles

• SAGEN supports the enhanced uptake of RE and EE • In RE, SAGEN focuses on grid-connected projects

• In EE, SAGEN focuses on supporting national incentive programmes and initiatives • Ownership of partner institutions

• Seeking synergies with other initiatives

• Framework conditions and processes for investment in renewable energy (RE) and energy efficiency (EE) are improved.

Programme Objective:

• Overall programme duration planned until 2020

• Phase 1 from 01/2011 - 12/2014 (budget EUR 12 million)

• Phase 2 from 01/2015 - 12/2017 (budget of EUR 17.5 million, incl. 5 million SECO co-funding) Budget and Duration

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Durchführer

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South African – German Energy Programme (SAGEN) – Phase 2

Component 2: Energy Efficiency

Objective: The conditions and processes for the implementation of investments in EE have improved

Component 1: Renewable Energy

Objective: The conditions and processes for the implementation of investments in RE have improved

Sub-Component 1.1: Support to REIPPPP including grid and system integration of RE

Sub-Component 1.3: Market development for biogas projects

Sub-Component 1.2: Market development for PV rooftop systems

Sub-Component 2.1: Energy efficiency in municipalities under the Municipal Energy Efficiency Programme (MEEP)

Sub-Component 2.2: EE street lighting in municipalities based on of SECO co-financing

Sub-Component 2.3: Support to the National Solar Water Heating Programme (NSWHP)

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Feedstock for Biogas Production

• Energy crops

• Organic household waste

• Landfills

• Sewage sludge

• Organic industrial waste (e.g. food processing industry: fresh-produce

markets, sugar industry, pineapple industry, fruit pulp from vineyards

and juices, breweries, milling industry)

• Animal waste (abattoirs in cattle feedlots, piggeries, chicken farms)

• Agricultural sub products (e.g. maize residues)

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Status quo biogas market for electricity in

South Africa

• No specific allocation for biogas in the current Integrated Resource Plan (long term electricity

capacity plan issued by Department of Energy) – biogas categorized under general RE

• No national biogas strategy in place

• No specific support mechanisms for biogas in place (disregarding the national Renewable

Energy IPP Procurement programme, where out of 6000 MW procured up-to-date only 18 MW was awarded to a landfill biogas project)

• Licensing in terms of environmental impact assessment is not streamlined (biogas project is

not seen as a “whole”)

• No existent technical standards

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BUT: Some positive developments…

• Creation of Southern African Biogas Industry Association (SABIA) as non-profit organisation to represent the biogas sector in Southern Africa

Established in April 2013

Currently 28 member companies, 5 member individuals

• Creation of the National Biogas Platform (ownership of the DoE and SABIA, facilitated by GIZ)  Established in October 2013

 Bi-monthly meeting of the governmental institutions, financing institutions, research, industry,

municipalities and provincial government representatives

 Aims:

 To address the lessons learned from the existing biogas projects

 To assess current and future regulatory requirements in order to make the regulations proactive and conducive for the development of the industry

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Durchführer

BUT: Some positive developments…

 National Biogas Conference

 First conference: October 2013: “Conversations around Challenges and Opportunities”, attended

by 100 participants

 Second conference: March 2015: “Navigating the Path to Biogas Implementation”, attended by

250 participants

 Next conference: Mid 2016

 Work towards potential estimation and awareness creation

 Biogas baseline study on licensing procedures in terms of environmental assessments  Biogas information hub http://www.biogasassociation.co.za/biogas-info-hub/

 Biogas potential calculation (sewage sludge, agro processing, food waste)

 Proposal for the tariff structure for electricity from biogas, submitted by SABIA to DoE  Creation of the national biogas strategy, custodian DoE

 Work on the streamlining of licensing procedures - discussion with the South African National

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Biogas Potential from Sewage Sludge

• Anaerobic digestion of sludge at municipal WWTW has been widely practiced in South Africa since 1960

• Rough figures estimate that sludge treated at SA’s 968 municipal WWTW could generate up to 780 MWh/a of power

• Previously: low electricity prices

• Now: rising electricity prices, load shedding concerns

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Biogas Potential from Agro-waste and Food

Processing

• Evaluation of the following feedstock:

 Livestock: dairy industry: feedlots, dairy industry: milking parlours, cattle feedlot , piggeries,

chicken farms

 Agro-processing industry: milk-processing industry, abattoirs: in conjunction with cattle feedlots,

abattoirs: in conjunction with piggeries , abattoirs: in conjunction with chicken farms, fresh-produce markets, sugar industry, pineapple industry, fruit pulp: vineyards, fruit pulp: juice, breweries, milling industry

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Biogas Project finance possibilities

• Possible GIZ support:

• Support of development of pilot Biogas projects

 The SAGEN looks for feed stock owners as Biogas project partners. SAGEN is willing to

provide their expertise in appropriate selection and mixing of biomass sources, technical design and quality parameters, navigation through the complicated legislative framework for permitting and licensing as well as providing a network of financiers for project funding.

 In a second step SAGEN will facilitate / co-fund the feasibility study for one or two most

promising projects so as to enable the feed-stock owner to apply for necessary licenses and respective financing.

 After the completion of the project the experience will be made public and disseminated so as

to promote the use of Biogas in South Africa.

 The prerequisite for a feed stock owner / energy consumer to participate is to cooperate with

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Biogas Project finance possibilities

• Possible GIZ support:

• PPP project - www.developpp.de

 BMZ (GIZ, DEG, Sequa) provides companies investing in developing and emerging

countries with financial support of up to a maximum EUR 200,000

 4 application phases per year

 Any company that applies must meet the following minimum requirements:  annual turnover of at least EUR 1 million

 ten employees

 three years of business operations.

• South African Sustainable Energy Finance Information Database (SASEFID)

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National Biogas Strategy Outline

 Introduction and vision

 Definition of biogas, feedstock options, biogas utilisation purposes

 Biogas potential

 Biogas technology application

 Biogas benefits

 Socio-economic

 Environmental

 Security of supply

 Multiple applications

 Implementation action plan

 Incentive schemes

 Financing

 Permission and licensing

 Biogas standards and norms

 Skills development

 Research

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Biogas Market Development: Outlook

 More international initiatives coming to support

 German Chamber of Commerce

 Danish Chamber of Commerce

 GIZ

 UNIDO

 USAID

 There is a need for cooperation with international biogas companies to create more synergies

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Biogas in Südafrika: Das GIZ-Programm SAGEN und Potenziale vor Ort