I recently sat down with Ella Teperi, General Manager, Market and Financial Analysis, Decarbonisation Services at Wärtsilä Energy.
How has Wärtsilä evolved to align with the global energy transition, and what are the primary products and services you currently bring to South Africa and the broader market in Africa?
Wärtsilä has evolved from an equipment manufacturer into a lifecycle partner at the forefront on the path to a 100% renewable energy future. We support our customers with the technologies and services needed to integrate and balance intermittent renewables.
Our primary offerings include:
- Flexible Engine Power Plants: Our fuel-flexible engines (capable of running on natural gas, liquid fuels, and in the future on hydrogen-based sustainable fuels) provide the “balancing power” needed to support grid stability as coal is phased out.
- Battery Energy Storage: We have deployed over 130 utility-scale battery storage systems globally
- Lifecycle services: as a lifecycle services provider, we offer agreements ranging from spare parts supply to full operation and maintenance of power plants and outcome-based Decarbonisation Services agreements that ensure the long-term performance of power systems.
- GEMS: our Energy Management System optimises the dispatch of renewables, energy storage, and thermal assets based on load and renewable forecasting.
The ROI challenge in African power projects
Many power projects in Africa fail to achieve their expected cost savings. Why is unoptimised dispatch such a critical factor behind this ROI hurdle?
Especially for islanded power systems, adding intermittent renewables greatly increases the operational complexity they face: operators must anticipate weather and demand changes, make sure that every kilowatt-hour of renewable energy is prioritised, dispatch thermal assets at their optimal points for efficiency and optimise the charge and discharge of batteries, all while continuously maintaining reserves,
Due to the complexity of this task, without sophisticated coordination, the systems suffer from curtailment, higher fuel consumption, and unreliability. This can easily make projected cost savings evaporate and ROI plummet.
Digital intelligence for renewable integration
Renewable energy introduces significant volatility. How do Energy Management Systems (EMS) act as the “digital brains” of power systems by balancing battery storage and engine loading in real time?
Our GEMS Digital Energy Platform, acts as the “digital brain” of the system by providing a unified layer of control and dispatch optimisation over diverse assets like solar, wind, batteries, and engines. It uses machine learning to analyse historical load patterns and weather data, in order to predict the electrical demand and renewable yield.
A practical example of the role we play in integrating and optimising hybrid microgrids can be seen in our work with mining operations like QMM in Madagascar. At QMM, GEMS is optimising dispatch of all assets in the microgrid, maximising renewable energy penetration, reducing fuel dependency, and managing reserve compliance.
From fuel substitution to integrated systems
Why is the energy transition no longer just about replacing fossil fuels, but about engineering fully integrated energy systems that can meet the 24/7 reliability demands of heavy industry?
Decarbonisation is an intricate engineering challenge of integration, not just a simple game of substitution. For heavy industries like mining, “guessing” at power stability is not an option. Simply adding solar panels doesn’t guarantee emission reduction and can make it more difficult to maintain reliability.
Engineering an integrated system involves using techno-economic modelling and dynamic simulations to identify optimal asset sizing and dispatch philosophies, and stress-test the grid against worst-case contingencies, such as sudden line trips. By integrating storage, flexible thermal power, and digital intelligence, we transform “green ambition” into bankable projects that provide the 24/7 reliability required for industrial operations while keeping the Levelised Cost of Electricity (LCOE) as low as possible.
Performance-based partnerships & decarbonisation
Wärtsilä is increasingly moving toward outcome-based partnerships. Can you explain the shift to Decarbonisation Services Agreements and how linking fees directly to carbon and cost reductions benefits mining and industrial clients?
Decarbonisation is a journey spanning years, not a one-time asset purchase. Wärtsilä’s Decarbonisation Services Agreements shift the relationship from a technology vendor to a long-term partner.
The primary benefit for clients is the alignment of incentives:
- Outcome-Based Fees: Our performance fees are linked directly to the customer’s key value drivers, typically fuel savings, carbon reduction, and system reliability.
- Partnership: through this model, we are incentivised to continuously improve performance throughout project lifetime, instead of delivering a one-off project
- Bankability: Linking fees to actual performance metrics improves project bankability, providing investors with the confidence that the projected ROI will be realised in the real world.
Thank you , we are grateful for your time and wish you all the best in growing your market share in Africa through tailor-made lifecycle partnerships with heavy industrial users, mine operators, IPP’s and public sector power utilities.
Author: Bryan Groenendaal
