Challenges in Implementing

Smart Grid Technologies in Africa

KA Folly
Associate Professor
University of Cape Town
South Africa
 Presentation Outline

 Introduction
 Global Energy Use
 Drivers towards Smart Grid
 Challenges in Implementing Smart Grid in Africa
 The South African Case
 Conclusions
 Introduction

 The basic structure of the electric power grid has

remained unchanged for more than hundred
years.
 Existing power generation infrastructure is not
able to keep pace with growing power demand.
 The methods of power delivery to consumers
are also outdated and extremely inefficient.
 Global power industry is facing challenges.
 Introduction (cont.)
 The electric grid in its current state is falling behind
the 21st century technological advancements and
energy demands.
 Current trends in energy supply and use are
unsustainable-economically, environmentally and
socially.
 According to the International Energy Agency,
overall energy use will at least double by 2030.
 Most of the expansion will be powered by growth
in fossil fuels.
 Introduction (cont.)

 On the other hand, climate change scientists

now tell us that we will need to reduce emissions
of CO2 and other greenhouse gases by at least
60% by 2050, if we are to meet our emissions
reduction target.
 We can decide to do something about climate
change by expanding massively the contribution
of renewable energy to our overall energy needs
or continue with “the business as usual” model.
 Global Energy Use
World primary energy-2010
 About 84% of the world
primary energy is fossil
fuels.
 A substantial proportion
of coal and gas
production is used to
generate electricity
(about 40%), a
percentage that is
gradually increasing
Source: EIA Annual Energy Outlook 2012 and EIA Electric
Power Monthly (Feb 2012 Edition)
 Global Energy Use (cont.)
RSA primary energy supply 2006
 About 90% of the RSA
primary energy is fossil
fuels.
 Coal is the most
polluting energy source
on the planet. RSA is
using 210% more coal
than the rest of the
world. More than 90% of
the SA electricity is
Source: Department of Energy of the Republic of South Africa:
“South African Energy Synopsis 2010” generated from coal.
 Global Energy Use (cont.)
• China has consolidated its position as the world’s
largest energy consumer. By 2035, China will
consume nearly 70% more energy than the United
States (the second largest consumer).
 In 2010, about 1.3 billion people (1/4 of the world
population) did not have access to electricity. In 11
countries all in Africa, more than 90% of people go
without electricity.
 Until now, most Africans have no access to modern
fuels like natural gas, kerosene or propane. They
still rely on traditional use of biomass for cooking.
Why Smart Grid?

 Since the rolling

blackout in 2008, the
price of electricity in SA
has been increasing
steadily every year to
fund the building of new
power stations.
 Low reserve margins
 Ten million people
without electricity in
RSA
 What is Smart Grid ?

 There is a growing consensus in the power

industry and among many governments that
smart grid technology is the answer to the
uncertainties and challenges that we are
currently facing.
 The name “Smart grid” is controversial, but most
researchers agree on the attributes of smart grid
 What is Smart Grid ?

 Smart grid is characterized by the following:

- Self-healing from power system disturbances
- Enables active participation by consumers in
demand response
- Operates resiliently against both physical and
cyber attacks
- Accommodates all generation and energy
storage technologies
- Optimizes asset utilization and efficiency
 What is Smart Grid ?

- Digital upgrade of distribution and transmission

grids
- Optimise current operations and to open up
new markets for alternative energy production
- The use of robust two-way communications,
advanced sensors and distributed computing
technology
- Improve the efficiency, reliability and safety of
power delivery and use
 What is Smart Grid ?
Demand
Response

AMI Renewable
Integration

Field Data SMART GRID Distribution

Applications Automation

Outage
Power Quality and
Management PHEV Planning
Management
Smart Grid Implementation
in USA and Europe
 In 2009, Smart Grid grew into a full-fledged
national commitment. President Barack Obama
featured it prominently in his roll-out of the $787
billion stimulus package, including $4.4 billion
earmarked for Smart Grid seed money.
 The Smart Grids Task Force (SGTF) was set up
by the European Commission (EC) at the end of
2009. The SGTF reached a consensus over the
on policy and regulatory directions for the
deployment of Smart Grids.
Smart Grid Implementation
in Africa
 Africa has an abundance of natural resources. The
entire continent can be regarded as one giant solar
panel. South Africa for instance, has very good solar
and wind resources.
 The deployment of renewable energy technologies has
been slow to take off. About 92% of Africa’s
hydropower potential is still underdeveloped.
 With the abundant renewable energy resources in the
African continent, Africa as whole can improve access
to electricity services by adapting smart grid
technologies to meet the electricity demand of the
future.
Smart Grid Implementation
in Africa
 Most African countries do not have any policy for
smart grid.
 South Africa is still at an early stage of implementing
part of Smart Grid Smart. In 2008, Eskom approved
a rollout of smart meters, combined with time of Use
tariff to 120,000 customers. Phase 1- 10,000 meters
pilot project was completed in November 2010.
Phase 2- 110,000 rollout is expected to finish in
2012.
 Distribution Automation (3 sites completed)
 IRP 2010 a Positive Step
 IRP 2010 is a document that has been promulgated
by the Department of Energy (DoE) which is expected
to form the basis of South Africa’s power generation
programme for the next 20 years.
 According to the IRP 2010, 42 % of all new generation
will be expected to come from renewable energy over
the next 20 years.
 Can this be achieved without large scale integration of
renewable? Also, our present transmission
infrastructure will not be able to cope with this increase
 Challenges in Implementing
Smart Grid in Africa
 Ageing and outdated Infrastructure: Present
Infrastructure in all African countries is inadequate and
requires major overhaul and augmentation to support
the growth of Smart Grids.

 Inadequate resources: There is a need for new

technologies in the electricity supply system and new
infrastructure for transmission and distribution.

 Lack of integrated communication platform

 Challenges in Implementing
Smart Grid in Africa (cont.)
 Cost of deployment: Distribution systems make up the
bulk of smart grid costs. It is estimated that the cost of
upgrading the US grid could range from $338 to 476
billion.
 Management of the vast amount of data generated by
a wide range of stakeholders such as the power
utilities, vendors, municipalities, IPP, and consumers
will be challenging.
 Transition from legacy systems: Old legacy systems
cannot always be retrofitted with new technologies and
there may be a need for an entire technology
solutions.
 Challenges in Implementing
Smart Grid in Africa (cont.)
 Smart consumers: “ The customer is ultimately the
stakeholder that the entire grid was created to
support”.
- consumer’s embrace of the two-way communication
- Implement dynamic pricing that can be incentives
for consumers to change their energy-use patterns.
 Compatibility of older equipment: Some older
equipment must be replaced as it cannot be retrofitted
to be compatible with smart grid technologies. Early
retirement of equipment may become an issue.
 Challenges in Implementing
Smart Grid in Africa (cont.)
 Smart Grid Cybersecurity: is another challenge area
for smart grid implementation. Use of the internet to
link data flow between utilities and customers creates
a need to address cyber security. “Remote access to
control systems poses a huge danger”
 Lack of standard and interoperability: The shift to
common standard will take years of additional
development, testing and negotiation.
The quest for Smart Grid standards to facilitate
interoperability is the most complicated issue facing
the Smart Grid industry.
 Challenges in Implementing
Smart Grid in Africa (cont.)
 Make more energy available at affordable prices to
enable all people to use modern energy to meet their
basic needs.
 To slow overall growth of energy consumption through
conservation and energy efficiency improvement and
to make energy sources more environmentally
sustainable.
 Changes in Regulatory Policies: Many regulatory
policies are now outmoded to deal with consequences
of Smart Grid.
 Lack of human skills: who have they “know how” to deal
with highly sophisticated equipment.
 The Way Forwards

 Energy efficiency and conservation policies should be

put in place.
 If the grid were just 5% more efficient, the energy
savings would equate to permanently eliminating the
fuel and greenhouse gas emissions from 53 million
cars.
 Diversification of energy sources should be a priority
of the government
 Facilitate access to modern energy for all households
 Conclusions

 The Smart Grid will come from the application of

intelligent energy technology to optimize the use
of generation resources and the delivery of
power
 There are several key challenges that should be
addressed before smart grid implementation
could be a reality in Africa.
 Conclusions

 Government must
(1) Promote broad deployment of energy
efficiency
(2) Deploy various types of renewable energy
(3) Deal effectively with carbon capture and
storage
(4) Put the right policy in place