Ingula Pumped Storage Project & Spirit of Ireland Project Sam Mottram – Manager Power Services 8 November 2010

1. Ingula Pumped Storage Project & Spirit of Ireland Project Sam Mottram – Manager Power Services 8 November 2010

2. Outline • Ingula 1,334 MW Pumped Storage • South Africa • ESKOM (SA Public Utility) • Environmental & Socio-Economic • Design, Costs, Construction • Something New : Spirit of Ireland Project • Why consider Pumped Storage in BC?

3. Ingula Pumped Storage By Sam Mottram November, 2010

4. South Africa

5. South Africa • Population of 46 million • Size approximately = BC and Alberta combined • 11 Official Languages (English = business language) • Democracy since 1994 • 9 Provinces • Home of Nelson Mandela and the Vuvuzela

6. ESKOM • ESKOM is the SA public utility that is about 4 times the size of BC Hydro • ESKOM supplies approximately 45% of all Power in Africa (45,000 MW) • SA base load is supplied by Coal Generation • Other sources include: • Nuclear 1,800 MW • Hydro 600 MW • Pumped Storage 1,400 MW • Requires additional 40,000 MW by 2025

7. ESKOM – 5-Year Capital Plan • US$ 50 Billion, including: • Power Generation: • Return to service 3,720 MW • Open cycle gas turbine 2,084 MW • Ingula Pumped Storage 1,334 MW • Medupi Coal-Fire Station 4,764 MW • Kusile Clean Coal-Fire 4,800 MW • Transmission: • 765 kV Lines - 8,122km • 400 kV Lines - 7,768 km • 275 kV Lines - 310 km • 132 kV Lines - 293 km

8. ESKOM – 5-Year Capital Plan • Financing the US$ 50 Billion Plan: • Eskom & Government Reserves • Privatization and Sale of some of Eskom Assets • Shortfall met by World Bank Loan • Increasing Electricity Rates at 25% per year over a 3 year period (i.e. 95% increase in rates!).

9. Pumped Storage Project Layout

10. Ingula Pumped Storage - RSA • 1,334 MW Pumped Storage – Daily Peaking • Drakensberg Mountains (Kwa-Zulu Natal)

11. Ingula Pumped Storage - RSA • 1,334 MW (4 x 333 MW reversible pump turbines) • 480 m Gross Head, 450m Net Head • Generating Flow = 348 m3/s • Pumping Flow = 241 m3/s • Lower Reservoir • RCC Dam (Braamhoek Dam = 39m high) • Upper Reservoir • CFRD Dam (Bedford Dam = 41m high) • Underground Powerhouse (150 m x 45 m x 25m) • Main Access Tunnels (9m x 9m x 1,250m) • Headrace Tunnels/Penstocks (2km) • Tailrace Tunnels (2.5km)

12. Ingula – Project Layout

13. Ingula – Project Section

14. Ingula Underground Works

15. Ingula– Permitting & Environmental • 90 different sites were assessed, before Ingula was selected • Sediment control • Baseline monitoring sites, Sediment management plans • Bark stripping of indigenous plants for medicinal use • There is a threat of illicit medicinal plant harvesting across South Africa. Policing, fines, medicinal plant nurseries, etc • Feasibility study underway to designate some of the areas around Ingula as nature reserves. This has been done at many dam sites in South Africa. • Access roads, camps, borrow areas and spoil areas • Location, Traffic management, Borrow areas located with reservoirs, etc

16. Ingula – Permitting & Environmental • Red-listed species in wetland surrounding upper reservoir (Critically endangered) – White-winged Flufftail. • Location of reservoir – moved 1km away from where bird is usually found. • Diverting wetland water around reservoir. • Keeping construction activities and staff off wetland areas. • Education programs and workshops

17. Ingula– Access Roads

18. Ingula– Upper Reservoir (CFRD)

19. Ingula– Upper Reservoir (CFRD)

20. Ingula– Intake Tower & Surge Shaft

21. Ingula– Access Tunnel

22. Ingula– Underground Works

23. Ingula– Underground Works

24. Ingula– Underground Works Outlet Structure Surge Shaft

25. Ingula– Lower Reservoir (RCC)

26. Ingula– Lower Reservoir (RCC)

27. Ingula– Project Costs • Total Estimated Cost = US$2.4 billion • US$1.8 million per MW Installed • Dams Contract = US$1,200 million • Pump Turbines = US$200 million • Underground Powerhouse & Waterways = US$800 million

28. Ingula– Development Schedule • Feb 2005 – Start • Nov 2013 – Scheduled Completion • Access Roads – Complete • Upper Reservoir – CFRD: Reached full height • Lower Reservoir – RCC: Reached full height • Access Tunnel - Complete • Underground Works 80% complete • Can it be Built? YES!

29. Spirit of Ireland Project Sea Water Pumped Storage Concepts Wind Power & Pumped Storage Integration

30. Overview – Spirit of Ireland • Understanding of Irish Power Sector • Salt Water Pumped Storage • Existing Plants - Japan • Environmental Issues – Salt Water Related • Technical Issues – Salt Water Related • SOI Project: • 1,000 MW Pumped Storage + 1,800 MW Wind

31. Ireland • Irish Population = 4.3 million • Total Installed Capacity = 7,300 MW • Annual Energy Demand = 28,000 GWh

32. Irish Grid • Irish Grid • 400kV Backbone between Dublin and Limerick • Weak grid on west cost where major wind resource exists

33. Irish Power Sector • Ireland imports > 90% of its energy requirements • Wants to become more self-sufficient • Energy Mix: • Coal 10.3% • Peat 4.4% • Oil 56.4% • Natural gas 25.3% • Renewables 2.7% • Electricity import 1%

34. Spirit of Ireland – PS Hydro & Wind • Ireland has a huge wind resource. • Development of this resource is constrained due to transmission infrastructure and shaping capabilities.

35. Spirit of Ireland – PS Hydro & Wind • Wind Integration in European Union (EU): • Wind provides about 5% of EU energy requirements. • Continues to increase each year. • Ireland currently > 8% • Ireland would like to attain 40% by 2020. This can only be achieved by: • Major expansion of transmission system, including interconnection to UK, then EU. • Storage (i.e. Spirit of Ireland Pumped Storage Hydro)

36. Spirit of Ireland – PS Hydro & Wind • 1,000 MW PS Hydro (Salt Water) • 1,800 MW Wind (18 x 100 MW community owned wind farms) • 7-10 days storage • Future expansion to UK/EU, including additional 1,000 MW PS Hydro sites on Irish west coast • Shaping of EU Renewables

37. Spirit of Ireland – Saltwater PS

38. Spirit of Ireland – Saltwater PS

39. “Sea-Water Pumped Storage” • Okinawa Yanbaru Power Plant: • A Seawater Demonstration Project • Located on Okinawa (Japan) • A prototype pumped storage plant with: • a single 30-MW unit • 136-m net head • Reversible, variable speed • 8 hours of generation Okinawa Seawater Pumped Storage Plant - Japan

40. “Sea-Water Pumped Storage” • Challenges: • Leaching of Seawater – Upper Reservoir • Seawater Spray - Upper Reservoir (Vegetation) • Adherence of marine organisms • Corrosion of Turbines/Other materials • Effects on marine life at Ocean Outlet Breakwater and Intake of Okinawa Seawater Pumped Storage Plant - Japan

41. “Sea-Water Pumped Storage” Okinawa Seawater Pumped Storage Plant - Japan

42. “Sea-Water Pumped Storage” Lined Upper Reservoir - Okinawa Seawater Pumped Storage Plant - Japan

43. Spirit of Ireland – PS Hydro & Wind • Can it be Built?

44. Why consider Pumped Storage in BC • Peaking Capacity – Close to load centres • Energy Security (line outages, extreme cold, etc) • Alleviate Transmission Constraints, especially if the Pumped Storage facility is built in: • Lower Mainland • Vancouver Island • May reduce the need for major new transmission to: • Lower Mainland • Vancouver Island • Energy Exports, and shaping of additional renewables for energy exports. • Voltage Regulation.

45. Knight Piésold Power and Water Resources Mining Environment