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Energy Services demand creation

In support of:

The Western Cape government


Energy Security Game Changer
November 2016

Focus of the Western Cape Government


The Energy Security Game Changer
Goal statement
Enough power for growth in the
Western Cape that is sustainable
and low carbon

Key Performance Indicator


10% reduction in current Western
Cape demand from ESKOM in the
next 3 years generated through
alternative low carbon supply and
energy efficiency measures

What does the target mean?

4 x Western Cape based Wind farms


= 318 MWs or
1000 rugby fields of solar panels or
400 000 geysers switched off or
replaced with SWH

How change will happen


2015
POWER SHORTAGES
FROM GRID

2a

ENHANCED
UPTAKE OF
ROOFTOP PV

ENHANCED
UPTAKE OF
SOLAR WATER
HEATERS

2b

REDUCTION IN
ENERGY USAGE IN
PUBLIC & PRIVATE
BUILDINGS

3
MINIMISE METRO
LOADSHEDDING

4
DEVELOPING A
GAS ECONOMY

2019
ENOUGH POWER FOR
GROWTH

What we will do Lever 1 (Rooftop PV)


POWER SHORTAGES
FROM GRID

ENHANCED
UPTAKE OF
ROOFTOP PV

TARGET:
135 MWp by 2020

Key issues
GreenCape is supporting
Municipalities to allow their residents
to connect legally to the grid by
putting the following in place:
o SSEG Rules, regulations &
application processes

GreenCape is assisting private sector


players in decision making for the
uptake of energy services options
Province is promoting rooftop PV
through various initiatives

ENOUGH POWER FOR


GROWTH

FAQs on Small-scale Embedded Generation


What is Small Scale Embedded Generation (SSEG) and Solar PV?
Small Scale Embedded Generation (SSEG)
Less than 1MWp capacity
Located on the site of consumption
On the customer side of the municipal electricity meter Embedded in the municipal electrical grid

R 3.00
R 2.50
R 2.00
R/kWh

Solar Photovoltaic (PV)


SSEG that converts solar energy into usable electricity
System size and use varies drastically
Most widely used alternative generation technology

R 1.50
R 1.00
R 0.50
R 0.00
Year

FAQs on Small-scale Embedded Generation


What is the difference between grid-feed-in, grid-limited and off-grid PV?
SSEG system that is grid-tied without reverse flow protection:
Connected to the municipal electrical grid
The export of energy onto the municipal electrical grid is possible
SSEG system that is grid-tied with reverse flow protection (grid-limited):
Connected to the municipal electrical grid
Prevents power flowing onto the municipal electrical grid
Off-grid SSEG system:
Not connected to the municipal electrical grid in any way

It is critical that we customers are discouraged from defecting from the grid, as the
consequences for municipal finances are very negative.

Why are we here?


Objective + agenda

Job creation

Information

For the economy:


Investments

Sharing

Increased
business

Awareness
Technology
uptake

Savings
Financial and environmental
sustainability
Positive stakeholder image
Energy security

Changes in decision making in the energy market


Reasons for companies to consider alternative energy supply options

Decision drivers
Cost:
Cost

Image

Payback period
Cost of energy security
Capex required and return on investment

Image:
Ease of
implementation

Sustainability metrics for investors


Green branding for consumers
Modern trends

Ease of implementation:
Energy management
decision

Resources required
Change programme

Existing energy options


Available options to improve your energy use

Reduce energy
consumption:
Energy Efficiency

Energy services
Options

The option here is to implement systems/ technology that


reduces consumption, while maintaining or even increasing
output ENERGY EFFICIENCY

Increase energy
production:
Own Generation

An increase in on-site energy generation, with a cheaper


alternative, may result in:
Savings
Lowered OPEX
Improved energy security

Fuel switching

Options exist for switching of primary fuels to cleaner (less carbon


intensive) sources, that may also be cheaper in the long term. Very
case specific

Procuring your system


Considerations

Are you developing this in-house?

Is space a real constraint?

Are aesthetics a major factor?

What capacity do I need to do this?


Can my engineers do this?

System design

Project stages:

Funding or financing

Operation and maintenance

Thinking through energy services


Example: thinking through connecting a solar PV system

How to figure out which


feed-in tariff is applicable to
your company/ business

Thinking through energy services


Example: Comparison between installed systems and their business case
Different PV sizes:
500kWp
10kWp
Tariff structures:
George Municipality
Eskom Ruraflex

Different per annum tariff increase scenarios


13% for 5 years and 8% thereafter
10% increase per annum
Different financing options
Self funded
80% loan for 10 years at 10%
80% loan for 10 years at 18%

Insights available on:


Appropriate system sizes
Available financing
Expected payback periods
Costs of projects
Connecting to known developers/
suppliers

Business case for solar PV on packhouse


Key insights

The economies of scale are significant:


Large (500kWp) systems were feasible in all scenarios considered.

Financing is key to unlocking full potential of solar PV:


Even small systems (10 kWp) are financially viable under the right financing
conditions.

Existing case studies provide clear illustration of feasibility

Business case for solar PV on packhouse


Existing case studies (illustrative non-comprehensive)
Ceres Fruit
Growers
Town
System
Electricity gen per
annum

Electricity
reduction per
annum
CO2e reduction
per annum

Ceres
Koelkamers

ArbeidsVreugd
Fruit Packers

Stellenpak
Fruit Packers

Ceres

Ceres

Villiersdorp

Paarl

986 kWp

508 kWp

450 kWp

420 kWp

1 690 MWh

848 MWh

743 MWh

600MWh

6%

11%

(R38 mil savings


over 25 years)

15%

1 622 tonnes

839 tonnes

733 tonnes

576 tonnes

THANK YOU
Energy Security Game Change
Hildegarde.Fast@westerncape.gov.za
Energy Services guidance pack
seraj@greencape.co.za | maloba@greencape.co.za
Pack-houses Business Case:
Pieter@greencape.co.za

Thank You

www.greencape.co.za
(021) 811 0250

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