Wietze Post – Electricity supply: Wishful thinking and economic reality (Part 1)

Wietze Post – Electricity supply: Wishful thinking and economic reality (Part 1)

The Department of Mineral Resources and Energy (DMRE) has actually launched the draft Integrated Resource Plan (IRP 2023), recommending brand-new financial investments in gas, “tidy” coal, and nuclear plants, in addition to solar PV, wind generators, and batteries. Regardless of the propositions, uncertainty occurs over the advancement of gas, coal, and nuclear jobs due to monetary obstacles. Ir. Wietze Post checks out international cost patterns, producing experiences, and solar practices, presenting ideas like “Wright’s Law” and the “Duck Curve” to clarify the developing energy landscape.

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By Ir. Wietze Post

The Department of Mineral Resources and Energy (DMRE) has actually released the draft Integrated Resource Plan (IRP 2023). You can discover the total set of IRP files here

The IRP proposes brand-new purchases of gas, “tidy” coal, and nuclear plants. Solar PV, wind generators, and batteries. DMRE anticipates non-state entities to include 900MW of dispersed generation every year. In 2023, South Africans made a bargain of development. According to Eskom, every quarter we installed about 650MW of solar PV (photovoltaic)– 2,6 GW in overall. Chinese records reveal that they exported 4,345 GW to SA.

I anticipate the gas, coal, and nuclear plants will not be established. They will have a hard time to reach a monetary close on the industrial market.

In the next couple of short articles, I’ll describe why I have the expectations that I do. They’re based upon worldwide rate patterns, producing experience, and solar use practices. Customers desire to pay as little as possible for electrical energy. Customers desire lots more electrical power when it’s low-cost.

I’ll present you to “Wright’s Law”, and the “Duck Curve.” I keep in mind that making things by hand triggers each system to be various. In a factory items can be standardised.

Wright’s Law|The Learning Curve

Theodore Wright was a U.S. aerial engineer. In 1936, he released a paper “Factors impacting the expenses of aircrafts.” It explains what is called Wright’s law or experience curve impactsThe paper explains that “we discover by doing.” The expense of each system reduces as a function of the cumulative variety of systems produced.

Wright discovered that each time overall aeroplane production doubled, the labour time for a brand-new one fell by 20%. This has actually ended up being referred to as “Wright’s Law.” It’s likewise referred to as the finding out curve.

Let’s bake a cake!

Let’s use Wright’s Law to how you discover to bake a cake. The very first time you ever bake a cake, you will get guidance, follow a dish, and take a great deal of time. You might need to purchase components and devices. The outcome might not be all that excellent.

The 2nd time you bake that cake, you’ll make less errors. You’ll enhance how you do things. Your procedure will be quicker. The cake will look and taste much better.

The 3rd and 4th time you bake that cake, it will go much faster and much better. You’ll have some regular by the time you bake the 8th cake. You’ll be applauded for how delicious your cake is!

That might motivate you to bake a lot more of those cakes and offer them. You’ll purchase components wholesale and get more devices so you can speed things up. You’ll employ assistance and find out how to offer much better.

You might bake another sort of cake, for range. You’ll have experience from the very first cake, so you’ll prevent some errors.

The knowing rate likewise uses to making each cake look the very same, i.e., standardising. You’ll wish to reduce expenses and enhance quality. Specifically when you begin baking cakes in a devoted kitchen area, or factory pastry shop. When you broaden and construct a brand-new bakeshop, you’ll consist of design and workflow enhancements.

You might have a concept that can drastically accelerate cake baking. That would be a step-change in baking cakes at a much lower expense, much faster, and with greater quality. You can offer more affordable than everyone else. A a little lower expense might suffice to offer a lot more. You’ll make a larger revenue per cake due to the fact that your expenses are so much lower than your rivals. You’ll offer a lot more cakes due to the fact that they’re less expensive than others. You’ll make a bigger revenue entirely, due to the fact that you’re offering more cakes.

Wright’s Law states that you discover at a constant rate when going from 1 to 2 cakes, 2 to 4, 4 to 8, 8 to 16, and so on. To put it simply, the knowing rate is constant throughout every doubling of what has actually preceded. You have the very same rate of finding out when going from 2 million to 4 million systems, as you did from 1 million to 2 million. You’ll have the exact same portion of expense decrease and quality enhancements.

Making photovoltaic panels, batteries, and coal power plants

As it provides for cakes, a rate of finding out uses to making photovoltaic panels, inverters, batteries, and vehicles. It likewise uses to coal power plants. Coal power plants are almost constantly one of a kind. They’re constructed by hand. They might have elements constructed in a little run. And there are lessons from constructing previous power plants, even if they’re not similar.

Those lessons might not use to the existing (coal power) task. They might hence be improperly used. Medupi and Kusile’s style engineers had a specific understanding set. It was improper for their boilers, grinding mills and material filters. These 2 plants were not similar. That caused outrageous expense overruns.

Generally expenses and quality enhance with experience/learning. Costs drop, and quality enhances, in line with Wright’s Law.

Note it’s the intrinsic worth and quality of the products that enhance. When we take a look at photovoltaic panels, we get more generation capability for less expense. Making speed and harmony enhance. The panels’ quality enhances and with that it’s durability

Hence the generation capability enhances. The panel’s expense might increase, however it can create far more power. Its expense per system of generation capability (R/kWp*) decreases.

Richard Swanson created Swanson’s LawIt’s like Moore’s Law (computer system chip capability). Both Swanson’s and Moore’s Laws originate from Wright’s Law. Swanson stated the rate of solar PV modules drops 20 percent for every single doubling of cumulative sales. Now PV panel expenses decrease about 75% in 10 years. That’s about 12% annually. PV panel expenses have actually gone from $125,83/ Wp in 1975 to $0,26/ Wp in 2022 (continuous 2021 USD/Wp). On a logarithmic scale, the yearly cost reduction looks like a straight line. Therefore we can anticipate the most likely cost in future.

With batteries, the expense per system of storage capability enhances. Simply put, the expense of a kWh of storage capability decreases. A quality and dependability step is how typically you can charge and release a battery. It’s determined in cycles of totally charging and releasing the battery. More cycles are much better. A battery ought to be much better when this number goes down: Rand/kWh/cycle, e.g., R84000/11,2 kWh/5000 cycles=R1,50. That’s the small expense for keeping a kWh.

For automobiles, the expense, speed, convenience, and security of taking a trip a kilometre enhances. And contamination declines.

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