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Energy

The panel emphasised South-South collaboration. (Image source: Alain Charles Publishing)

During a panel session at recently-concluded ADIPEC 2024 Exhibition & Conference, industry stakeholders discussed ways to increase collaboration between countries in the global South and the global North.

The discussion focused on energy transitions and the role of OPEC in ensuring energy access. Key points included the need for diverse energy sources, with OPEC advocating for all forms of energy, not just renewables. The conversation highlighted energy inequalities, such as Heathrow Airport consuming more energy than Sierra Leone.

The Paris Agreement was emphasised as a reduction of emissions, not a phase-out of fossil fuels. The East Africa pipeline and Uganda's oil projects faced financing challenges but are progressing.

The importance of South-South cooperation and regional collaboration in energy projects was underscored, with examples from Uganda, Cyprus, and Sierra Leone.

His Excellency Haitham Al Ghais, Secretary General of OPEC, explained why fossil fuels will continue to play an important role in the global South.

“We talk about the importance of another factor, which is urbanisation. By 2030 which is less than six years from today, we're going to have over 582 million people, nearly 600 million people, moving into new cities all around the world, again in non OECD developing parts of the world,” he said.

“The Paris Agreement, ladies and gentlemen, is about reduction of emissions. It's not about phasing out or phasing down or keeping the oil under the ground. It's about reducing emissions that includes technology, that includes investing in renewables, investing in all sources of energy.”

“We have the OPEC Fund for International Development, an agency, a sister agency, based in Vienna, that is very active in Africa and other parts of the world in developing and promoting socio economic development projects, energy projects as well as renewable energy projects.”

“We also have the charter of cooperation, which we signed in 2019 which is a platform that is open for oil producers to participate in, whether it's exchange of technologies, exchange of experiences between various member countries and non OPEC producers who are not members of OPEC that can participate in this platform to gain access to the best practices being implemented in our member countries.”

Growing collaboration

Uganda’s Minister of Energy and Mineral Development Ruth Nankabirwa, said, “The East African crude oil pipeline was a negotiated project, and it was a win-win. My president wanted all the oil refined in Uganda, but because we didn't have money to do it by ourselves, we collaborated with investors and we let some of the crude leave the country, while some is refined, which will come with industrialisation.”

Deputy Minister of Energy for Sierra Leone Edmond Nonie, said, “We have big clients in the mining sector who have the capital to pay and have the willingness to pay for lower priced electricity from the grid. So we are embarking on a campaign to connect these mining companies, and once we have these transmission lines out to these companies, we can then do the further, last mile connection to our communities.”

Meanwhile, Cyprus is collaborating with Egypt for energy transmission.

The country’s Minister of Energy, Commerce and Industry, George Papanastasiou, said, “The conversation with my colleagues in Egypt is to utilise the [Egyptian] infrastructure [for export]. Secondly, there are pipelines that cross the eastern Mediterranean, which reach Egypt. And the infrastructure in Egypt, there are two LNG terminals, liquefaction plants in Egypt, which are under-utilised.

“This is possibly the destination in order to reach the markets. Of course, there is the domestic market of Egypt as well, which is very important. We all know that power generation in this country is mostly coming from natural gas. Cyprus is very well positioned, and at the right time in order to support and provide the natural gas and use the infrastructure in order to reach the international markets.”

3000kVA 400V primary equipment prior to enclosure installation. (Image source: WEG Africa)

The increasing reliance of South African businesses on generator sets (gensets) to mitigate power disruptions highlights a crucial need for proper selection based on specific operational demands

Despite their growing usage, there is still widespread confusion about how to choose the appropriate genset, often leading to inefficient and costly decisions.

Understanding the differences between standby, prime and continuous applications is essential to optimise genset performance and longevity. This is according to Craig Bouwer, senior manager gensets at WEG Africa, who explained that many customers mistakenly select gensets based solely on nameplate rating.

“Understanding the specific application of the genset is crucial for the right selection, and the first step is knowing that genset applications are broadly categorised into standby, prime and continuous, each with distinct operational requirements,” he said.

Selecting the right genset

Standby gensets are seldom used, typically kept for emergency situations. These units have a limit on operational hours per year and a specific load factor. In South Africa, due to frequent load shedding, few gensets are used solely for standby purposes.

Prime and continuous applications are more common in the country. Prime gensets can run unlimited hours annually with variable loads, maintaining an average load factor below their maximum rating. Continuous gensets also operate unlimited hours, but with a constant and predetermined load.

Damian Schutte, engineering manager at WEG Africa, explained that understanding the difference between prime and continuous ratings is also critical. The load factor is a key differentiator and not the unlimited time requirement, with prime applications having variable loads and continuous ones having fixed loads.

Schutte used a vehicle analogy to illustrate the differences: a continuous genset is like a car on cruise control operating at a steady speed within its capacity on a long-distance trip, while a prime genset is akin to a vehicle driving in the city. Standby can be perceived as racing between traffic lights.

Matching needs and service life

The choice of genset rating impacts its expected lifespan and maintenance needs. For example, continuous power may be required in mines during load shedding to supplement limited grid power, while industrial applications like workshops, with variable loads, would need a prime-rated genset.

Bouwer noted that standby power remains vital in essential service sectors for health and safety reasons, especially in environments like mines, hospitals, and data centres.

WEG Africa, as an Original Equipment Manufacturer (OEM), uses these categories to guide customers in their genset choices, aiming to match their specific needs and expected service life. They caution against oversimplifying the selection process by just matching the total load with a genset's nameplate rating, as this can lead to premature failure and additional costs.

“To ensure the correct choice, we work closely with customers assessing their load requirements, usage frequency and operational conditions and through this process ensure optimal genset selection,” Bouwer concluded.

This article was authored by WEG Africa.

WEG Africa offers in-house access to specialised facilities including a labyrinth rolling machine for sealing strips. (Image source: WEG Africa)

Steam turbines represent mission-critical equipment for a range of industries from sugar and paper to steel and petrochemicals, but there is now greater opportunity among these sectors to generate more energy to sell into South Africa’s national grid, according to WEG Africa

Traditionally, companies using steam turbines have usually consumed all the energy they produce in their processes – with a range of benefits such as supply reliability and cost savings. As the country struggles to keep up with power demand, however, there are more opportunities for the private sector to produce excess electricity for sale into the grid.

According to Alastair Gerrard, executive energy systems at WEG Africa, this trend is already advanced in Brazil – the home of holding company WEG. Many steam turbine users in Brazil have capitalised on these opportunities by increasing their boiler efficiency.

“While it may be common in South Africa’s sugar industry, for example, to use medium pressure boilers, the Brazilian market uses high pressure boilers up to 140 bar – and gain significant efficiencies with these higher pressures,” said Gerrard. “This allows these sugar producers and other users to upgrade their facilities and considerably augment their revenues through the sale of electricity, while also paying off their capital investments much quicker.”

He points to the government’s strategic direction in establishing the National Transmission Company of South Africa, a key step in transforming the country’s electricity industry. This will open doors for more private companies to ‘export’ excess electricity into the grid, helping to stabilise supply and strengthen the foundation for economic growth.

“This has been successfully achieved in countries like Brazil, and it is exciting to see that we are making progress on this journey in South Africa,” Gerrard added. “We believe that WEG Africa has an important role to play in this endeavour – through our long experience in this field and our full service offering for steam turbine users.”

A comprehensive offering

Cobus van Eeden, WEG turbine services manager at WEG Africa, highlighted that the company offers customers a turnkey capability. It sizes steam turbine solutions according to the specific operating parameters of the customer’s application, and supplies a bespoke thermal power system. The service also includes installing the machines, commissioning and ongoing after-sales servicing and maintenance.

“As an OEM of steam turbines, gearboxes and generators, we can even help customers to assess their current equipment – whether these are WEG products or from other OEMs – and provide strategic options and recommendations,” surmised van Eeden. “In addition to our depth of engineering expertise for repairing such equipment, we can also analyse the potential for enhancing operational efficiency and increasing power output capability of the equipment.”

The company provides long term service level agreements, including contracts for preventative maintenance. WEG Africa also works with customers on their forward planning, which may include considering the transition to electricity exporting.

Unrivalled customer support

Gerrard pointed out that this approach is built on its commitment as an OEM to stand alongside customers throughout the lifecycle of the equipment supplied. He noted that, while there has in the past been some acceptance of third-party support in this field, WEG Africa favours in-house OEM support for its solutions through service level agreements that give customers confidence in the total lifecycle cost of their purchase.

“Our field service technicians – active in many African countries and offshore – are on site with customers, developing a thorough understanding of their equipment and requirements,” he explained. “We integrate this information within our various functions to deliver the most valuable response and guidance on maintenance scheduling.”

Van Eeden outlined WEG Africa’s extensive engineering capability which includes machine servicing on customers’ sites – from gearboxes and turbines to generators and control systems. Equipment requiring more intensive work can be transported to the company’s 1,200 sq m workshop east of Johannesburg, which prides itself on quick turnarounds.

“Our facility includes full engineering capabilities, including the repair and manufacture of turbine bearings as well as the ability to conduct aftermarket engineering and optimising of numerous components,” he said. “We achieve this through our skilled machinists and technical staff, working with sophisticated scanning and engineering tools.”

In-house access to specialised facilities such as a labyrinth rolling machine for sealing strips, as well as a sandblasting booth for preparing components, further underpins the quality of workmanship and efficiency – thereby minimising downtime for customers.

This article was authored by WEG Africa.

Advanced metering technology will transform Africa's electricity industry by providing real-time monitoring, accurate billing, and enhanced energy management. (Image source: Adobe Stock)

SteamaCo, a UK-based leader in energy revenue management, has announced that it has merged with Shyft Power Solutions, a Nigerian innovator in digital energy solutions

SteamaCo has more than a decade of experience providing advanced metering infrastructure (AMI) to energy companies across the continent. Its flagship product, Nimbus AMI, helps users manage their networks, detect losses and enhance customer service. Meanwhile, Shyft Power Solutions entered the Nigerian market around eight years ago with its cloud-based distributed energy resource management system and diesel management solutions. Its latest metering solution, FlexView, offers enhanced reliability and allows energy consumers to monitor usage in near real-time.

Uniting the two pioneers in advanced metering solutions, the merger is expected to pave the way for rapid expansion into the grid-connected market and increased consumer reach. It comes at a critical time as regulatory changes have opened up new investment opportunities for independent power producers and utilities and the need for reliable power across the continent continues to grow in urgency.

“Our vision goes beyond delivering cutting-edge technology; it’s about transforming the energy experience of power providers and their consumers,” remarked Shyft’s CEO, Ugwem Eneyo. “Alongside our customers, we can leapfrog inefficient grids and build more intelligent, resilient infrastructure. Power plays a critical role in economic advancement and enabling sustainable cities, so catalysing digital transformation with our solutions is a part of our overall commitment to enabling smart cities and sustainable communities.”

Tom Parkinson, MD of SteamaCo, added, “This merger greatly boosts our ability to grow in African markets. By combining our advanced metering technology with Shyft’s local expertise, we can better meet our customers' specific needs. Together, we will foster innovation, improve our services, and provide effective, customised solutions to Africa's energy issues.”

Revolutionising Africa’s energy sector

The announcement was also delivered alongside the news of a new funding round led by Equator VC with participation from Praetura Ventures and KawiSafi Ventures. Collectively, these bring decades of experience investing in African and climate-tech ventures.

“This merger represents a pivotal moment in the evolution of energy management across Africa," surmised Nijhad Jamal, managing partner of Equator. “We are creating a powerhouse capable of addressing critical energy challenges. This integration will enhance the sector’s ability to deliver reliable, smart metering solutions and drive significant progress in closing the energy access gap in Africa.”

Successfully implementing PPP projects requires a nuanced understanding of financial, legal, and operational complexities. (Image source: Synergy Consulting)

Synergy Consulting explores why government and institutional clients should invest in public-private partnership (PPP) capacity building and how Synergy Academy can help

As governments and institutions seek to address complex infrastructure and service delivery challenges, Public-Private Partnerships (PPP) have emerged as a critical solution. PPPs offer a collaborative approach that leverages the expertise, efficiency, and resources of the private sector to meet public needs. However, successfully implementing PPP projects requires a nuanced understanding of financial, legal, and operational complexities. This is where capacity building becomes crucial.

Key reasons why governments and institutional clients must invest in PPP capacity building:

• Enhanced project design and implementation: PPP projects often involve long-term contracts and intricate risk-sharing arrangements. Without adequate training, public sector officials might struggle to design and implement effective partnerships. Capacity building ensures that they can develop sound project frameworks, from feasibility studies to contract management, reducing the risk of project delays or failures.

• Improved risk management: A critical component of PPPs is risk allocation between the public and private sectors. Proper capacity building equips government agencies with the skills to assess and mitigate risks associated with infrastructure projects, such as financial, operational, and regulatory risks. This enhances the chances of project success while safeguarding public interests.

• Efficient resource utilisation: PPPs aim to deliver value for money through efficient resource use. By strengthening capacity, government and institutional clients can optimise financial structuring, negotiate favorable contract terms, and ensure that public investments are used effectively.

• Sustainability and long-term benefits: A well-structured PPP contributes to sustainable development by aligning with long-term policy objectives such as economic growth, environmental conservation, and social inclusion. Capacity building ensures that public sector teams are equipped to pursue these goals, enabling projects that benefit society over the long-term.

• Strengthened institutional framework: Capacity building also helps improve the institutional frameworks within which PPPs operate. This includes enhancing regulatory environments, building cross-departmental collaboration, and developing standardised processes that can be replicated for future projects.

How Synergy Academy can help

Synergy Academy, under the banner of Synergy Consulting Infrastructure and Financial Advisory Services, offers tailored training programmes designed to empower government officials and institutional clients. Here is how Synergy Academy makes a difference in comparison with some of the traditional offerings:

• Expert-led webinars and training programmes;
• Comprehensive coverage of PPP and project finance;
• Collaboration with leading institutions;
• Building long-term institutional capacity.

This article is authored by Synergy Consulting IFA.

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