Energy

Vertiv DynaFlex BESS provide utility-scale energy for long duration support. (Image source: Vertiv)

The Vertiv DynaFlex BESS, a battery energy storage system designed to enable energy independence and bolster sustainability efforts at mission critical facilities, provides flexibility in the use of utility power and is a critical step in the deployment of a dynamic power architecture

The system allows organisations to fully leverage the capabilities of hybrid power systems that include solar, wind, hydrogen fuel cells, and other forms of alternative energy.

The lithium-ion batteries in the Vertiv DynaFlex BESS provide utility-scale energy for long duration support, allowing seamless and repeated transitions between energy sources. When paired with the optional Vertiv DynaFlex EMS (Energy Management System), the Vertiv DynaFlex BESS enables advanced energy management strategies, such as demand management and sharing or selling energy back to the grid that can result in a reduction of utility energy consumption and costs and potentially generate revenue for the parties involved.

“Sustainability has become a core tenet of many organisations’ growth plans, but concerns about operational resilience and growing stress on the grid have limited efforts to adopt alternative energy sources,” said Peter Panfil, vice president, global power, Vertiv. “The Vertiv DynaFlex BESS opens the full energy management toolbox. It allows organisations to leverage the strengths of these new energy generation assets and relegates the traditional utility provider to a complementary role in a more dynamic, efficient, and reliable mix of energy sources.”

Supporting mission critical environments

“Mission-critical facilities across the globe must find reliable sources of energy that can handle significant events or fuel access restrictions, and even more so within Africa, where many countries are experiencing serious grid constraints,” remarked Wojtek Piorko, managing director, Africa at Vertiv. “The African Legal Support Facility, in partnership with the Commercial Law Development Program and Power Africa, notes the implementation of BESS solutions in their ‘Understanding Energy Storage’ handbook as an alternative to traditional power solutions, saying that ’energy storage is a powerful tool that can change the pathways to power that sector decision-makers can pursue’. It also refers to BESS as potentially being used as a mitigation measure to unlock grid capacity.”

The Vertiv DynaFlex BESS is designed specifically for mission-critical environments, such as commercial industrial facilities, high-value manufacturing plants, data centres, and more. The system’s power conversion system (PCS) is designed to support 2 millisecond output, virtually eliminating any delays while shifting the load between hybrid power sources.

Vertiv was recently named as ‘Intelligent Power Partner of the Year’ for 2024 at the inaugural Intelligent ICT Awards that took place in Johannesburg, South Africa. Based on the judging panel's five criteria - sustainability, innovation, scalability, costs benefits and future proofing – the Vertiv DynaFlex BESS solution was named as the clear winner of this category.

Click here for more information on the Vertiv DynaFlex BESS

Reducing greenhouse gas emissions is a top priority for petrochemical and oil and gas companies. (Image source: Adobe Stock)

SEGITEC, an integrator of control and instrumentation solutions with roots in North Africa, has become the official distributor of Fluenta, a global leader in developing ultrasonic sensing technology to measure flare gas

Fluenta’s technology enables accurate measurement and reporting of flare gas emissions, an incredibly pertinent issue in the oil and gas industry amid increasingly stringent environmental regulations. The company offers real-time data for immediate response to irregularities, supporting regulatory compliance, environmental sustainability, safety, and operational optimisation. With precise monitoring, petrochemical companies can balance economic efficiency and responsible environmental management. With SEGITEC providing its expertise as an integrator of control and instrumentation, the new partnership will help organisations enhance their sustainable practices.

"Fluenta's mission to help operators comply with environmental regulations is complemented by SEGITEC's expertise in providing value-added services, which include project management, engineering, commissioning, operations, and maintenance,” said Julian Dudley-Smith, Fluenta managing director. “The partnership will support operators' decarbonisation plans, enhance environmental credentials, and ensure compliance with regulations and safety standards.”

“We are excited to partner with Fluenta, a company that shares our vision for a sustainable future," added Omar Ben Ayed, SEGITEC's CEO. “This partnership is a significant milestone, as it allows us to offer energy companies in North Africa and Gabon the best-in-class solutions to meet tightening environmental standards. Together, we are committed to empowering the region's oil, gas, and petrochemical industries to achieve their environmental goals while maintaining operational excellence.”

The report says that investment in pipelines would help alleviate the region’s higher rates of traffic accidents, productivity losses, pollution and supply disruption. (Image source: Adobe Stock)

A CITAC report commissioned by Puma Energy, a leading downstream energy company operating largely in sub-Saharan Africa, has identified bottlenecks and constraints in the liquid fuel supply chain that are impacting energy security and hampering economic development throughout the region

The report, titled “Fuelling Africa's Potential: Bridging the Gap in Energy Infrastructure”, finds that African fuel supply chains today are fragmented and insufficient, leading to energy security challenges as well as inefficiencies that are driving costs higher for governments and consumers. The report forecasts that liquid fuels, predominately traditional fuels for transportation and power, will remain prevalent for the immediate future, while the share of lower carbon and clean energy continues to steadily grow.

“In recent years, we have witnessed the fuel security impact resulting from insufficient infrastructure in our markets – from ports, to storage, to pipelines. This has resulted in costly stock outs and shortages that have grounded planes and disrupted businesses and transport sectors,” said Fadi Mitri, head of Africa for Puma Energy.

Rising demand for energy

Population growth combined with rapid urbanisation in sub-Saharan Africa is leading to rising demand for energy, especially transportation fuels, which CITAC forecasts will grow by 56% by 2040. These demographic trends will strain an already fragile and underdeveloped energy distribution system and require the scale-up of key infrastructure, such as ports, storage and pipelines, to improve supply chain efficiencies of fuels such as gasoline, diesel, jet and kerosene fuel to meet growing demand and ensure energy security.

“In advanced economies, pipelines are the preferred mode of transport for moving large volumes of product inland. This is for reasons of reliability, security of supply, road traffic congestion and safety. Every day the US Colonial Pipeline alone moves more transport fuel than the whole of Sub-Saharan Africa consumes,” said CITAC.

The report maps out the bottlenecks to come in key supply corridors in the next five to ten years and explores potential investing opportunities in pipeline infrastructure that present economically viable options to debottlenecking an increasingly congested system.

Collective investment

A collective investment in extending or building pipelines – mainly across Eastern and Southern African supply corridors – is estimated at US$9bn, and would help alleviate the region’s higher rates of traffic accidents, productivity losses, pollution and supply disruption. Furthermore, a total of 750kt of GHG emissions could be saved annually from 2030 onwards through the adoption of pipelines – removing as much as 95% of the trucks required to transport fuels in this part of the supply chain.

“The situation calls for increased international master-planning of infrastructure development to ensure Africa’s growing economies have security of supply critical to achieving their economic ambitions. The CITAC report highlights the potential for public-private partnerships to address the region’s energy challenges and to open up avenues for international trade and investment,” said Mitri.

“Energy sits at the core of economic growth and shortages directly impact people’s lives and economic development,” says CITAC. “The challenge going forwards will be to ensure that future members of Africa’s society are not subject to energy poverty but, rather, prosper.”

Public-Private Partnerships hold promise for addressing Africa’s electricity needs. (Image source: Synergy Consulting)

Synergy Consulting, an independent global firm at the forefront of financial advisory, explains why Public-Private Partnerships (PPP) are vital for addressing Africa’s energy needs around transmission

Power transmission, the vital process of delivering electricity from generation sites to distribution networks and eventually to end-users, stands as the backbone of modern energy systems. This intricate web of infrastructure encompasses high-voltage transmission lines spanning vast distances and substations performing crucial functions like voltage conversion and grid management. However, the realisation of these projects requires robust funding mechanisms tailored to their scale and complexity. The procurement methods can vary, each with their own features and implications.

One prevalent and most used method in procuring such projects is the Engineering, Procurement, and Construction (EPC) approach, wherein the government assumes the responsibility of raising funds for the entire project. For instance, Namibia's NamPower secured substantial debt to finance the Caprivi Link Interconnector, thereby enhancing regional electricity networks. Features of the EPC method include government ownership and control, allowing for infrastructure management and revenue sources. However, it also entails significant balance sheet impacts and fiscal considerations.

Alternatively, the Engineering, Procurement, Construction and Financing (EPC + F) model shifts the burden of project financing onto the contractor, particularly in markets with favorable access to funds. For instance, the Lake Turkana Transmission Line in Kenya received financing facilitated by the contractor, utilising a blend of concessional and commercial loans to realise the project. This model allows for private sector involvement in financing while leveraging their expertise in navigating financial markets.

Public-Private Partnership structuring

PPPs present another avenue for procuring transmission projects, where private entities collaborate with governments to deliver services. Some key considerations involved in the structuring of a transmission line procured on a PPP basis would be:

1. Tariff Model: The basis for determining the transmission utility’s allowed revenues depends on the tariff model adopted by the regulator. The tariff may be on an availability or wheeling basis;
2. Ownership and Maintenance: The selection between PPP models (BOOT, BOT etc.) will depend upon the level of control on the sector required by the government utility, which is usually high in the case of transmission lines;
3. Route Identification: Transmissions lines usually cross lands with different kinds of ownership. Studies like Environmental and Social impact Assessment (ESIA), soil investigation studies, geotechnical studies etc. are necessary to plan an effective right-of-way for the projects;
4. End-user Tariff: The involvement of the private sector introduces a return-on-investment component to the project which might increase the end-user tariff. However, on a Value-for-Money (VfM) basis the value of the transferable risks might offset the increase in tariff;
5. Financing: The financing burden is shifted onto the contractor in a PPP procurement method;
6. Risk Allocation: Each risk should be allocated to the party that is in the best position to first control/reduce it and then manage it.

Addressing Africa's energy needs

PPP involvement holds particular significance in addressing Africa's electricity challenges, where access remains low, and state-owned enterprises encounter sustainability hurdles. Collaborations like Kenya's partnership with Power Grid Corporation of India Ltd (PGCIL) and Africa50 to develop the Kenya Transmission Project underscore the potential for private sector engagement in bridging infrastructure gaps, bringing not only capital but also expertise in project management and risk mitigation. Brazil's extensive transmission line concessions exemplify the success of the PPP model, driving infrastructure expansion and fostering private sector participation in the energy sector.

In conclusion, diverse procurement structures exist for power transmission projects, each offering distinct benefits and challenges. PPPs hold promise for addressing Africa's electricity needs by leveraging private sector resources and expertise to drive infrastructure development and enhance access for millions. As nations continue to pursue energy security and sustainability, innovative procurement models will play a pivotal role in shaping the future of power transmission.

For more details on these and Synergy’s services, visit the company website: https://www.synergyconsultingifa.com/

This article is authored by Synergy Consulting IFA. For more information, reach out to: This email address is being protected from spambots. You need JavaScript enabled to view it.