A leading South African bank is forecasting “exponential growth” for the country’s small-scale embedded generation (SSEG) market in the coming few years, having already committed to funding project pipelines worth more than R1-billion, mostly in the form of rooftop solar.

Nedbank CIB energy finance principal Duncan Abel tells Engineering News that the market has already expanded materially from close to zero only five years ago, in spite of ongoing regulatory uncertainty. Liberalisation of the grid, wheeling and battery storage will further fuel rapid growth, he asserts.

The bank is also a leading financier to South Africa’s utility-scale renewable energy programme, with over R35-billion committed to funding such projects.

The growth in SSEG has been underpinned by a sharp fall in the cost of solar photovoltaic (PV) technology in particular, as well as a desire among South African companies for tariff certainty in a context of ongoing, above inflation, Eskom hikes and load-shedding.

In addition, many SSEG deployments, particularly those being undertaken by multinationals operating in South Africa, are increasingly motivated by internal decarbonisation targets and commitments to the United Nations Sustainable Development Goals.

Abel says there is significant pent-up demand for small-scale deployments, which have hitherto been restricted mostly to sub-1 MW projects, owing to regulatory uncertainty regarding the licensing of larger plants.

Even absent any possible change to the regulations, Abel anticipates that demand will continue to increase strongly.

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THE first phase of a 258 MW solar power complex has been completed in Upington. The facility, known as Sirius, has completed an 86 MW installation.
The project is part of a host of similar initiatives given the green light by the government to support the struggling power supply across the country.

Scatec Solar and its partners have announced that this connection is expected to produce 217 GWh and will lead to the abatement of more than 180 000 tons of CO2 emissions annually.

“We are pleased to reach another milestone with the grid connection of our fourth solar power plant in South Africa, with a combined capacity of 276 MW. South Africa continues to be a very important market for Scatec Solar, and we are developing several interesting project opportunities both within the utility-scale segment as well as our container-based solar solution”, says Raymond Carlsen, CEO of Scatec Solar.

The company is an independent power producer that has a total of 1.9 GW of solar power across four continents.

Completion of the remaining 172 MW of the project is expected in the upcoming months, after being awarded the project in 2015.

According to MyBroadband, Sirius is one of 27 renewable energy independent power producer (IPP) projects which aim to add 2 300 MW to the Eskom grid and help deal with the national electricity crisis.

Source....

The Department of Mineral Resources and Energy (DMRE) is finalising an internal audit on a bidding process to enable the finalisation of contractual arrangements with appointed service providers for the department’s National Solar Water Heater Programme.

Following the conclusion of the audit, the installation of solar water heaters (SWH) is set to resume.

The DMRE has not installed any SWHs in the 2019/20 financial year.

In a response to a Parliamentary question by the Democratic Alliance’s (DA’s) Kevin Mileham, who is the Shadow Minister of Mineral Resources and Energy, the DMRE confirmed that installation companies had been appointed in December 2019.

When asked about the number of units still in storage, the department said it had procured 87 206 SWH baseline systems from bid number DOE 008/2015/16, from which 150 systems were installed in the Sol Plaatjie municipality on a repair and replace programme during the 2018/19 financial year.

Another 200 systems were installed during the same period at a pilot project in Nelson Mandela Bay municipality, with the remaining systems in storage – some at State-owned entities, municipalities and suppliers/manufacturers’ storage facilities.

The monthly storage fees, however, vary depending on the number of days in a month, the DMRE indicated. As an example, for a 30-day month, the storage costs amount to just over R7.9-million, while in a 31-day month, storage costs are just under R8.2-million.

In terms of the supply agreement for the supply of the SWHs, the department said it had “both financial and contractual obligations” to settle additional storage costs in line with the extension of time on taking delivery of the manufactured goods.

However, the DMRE noted that a delay was experienced owing to participating municipalities’ delay in concluding framework agreements in accordance with the Intergovernmental Framework Act owing to the project being implemented across the different spheres of government and the need to clearly outline roles, responsibilities and obligations of each of these spheres during the programme’s implementation.

Following the delay, the DMRE partnered with the Department of Labour and Employment (DoL) and the Central Energy Fund to facilitate the training of installer assistants.

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South African Breweries (SAB) on Monday published a call for a clear process to be implemented with regard to generation licence applications above 10 MW, which it says will assist the company in achieving its sustainability vision.

The company welcomed the government’s commitment in this year’s State of the Nation Address that the National Energy Regulator of South Africa will process applications for the self-generation of electricity in excess of 1 MW within 120 days.

In a newspaper advertisement, the company highlights that industry “needs the ability” to on-sell electricity to other users on the grid; in turn, reducing the need to draw off the current grid and freeing up power for communities.

“We cannot stop the future from arriving, therefore time is of the essence. We believe the faster industry is able to self-generate electricity using off-site facilities, the faster the economy as a whole is able to recover,” SAB comments.

SAB also aims to foster partnerships with energy regulators and government to provide long-term certainty on wheeling tariffs that will support private sector companies, to have the ability to generate power off-site.

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An estimated total of R88 billion into these projects are set to attract both local and international investment. The next five years will prove vital in rolling this plan out to ensure growing momentum and support from the industry.

The need for an interactive, educational and industry led platform for the renewable energy and solar market in South Africa is a top priority for these plans to be achieved in the next ten years. That is why association driven events, Solar Power International (US) and SNEC PV (China) have decided to partner with Messe Frankfurt, offering one industry platform to:

Gain insight and knowledge from international, as well as local RE experts
​Discuss strategy and implementation to drive the industry forward
Apply best practices and lessons learnt from actual case studies
Network and foster long-lasting partnerships with solution providers, utilities, and large power users
​Experience live demonstrations and technical workshops

Solar Power Africa –  The solar and energy-storage market authority of the future, will take place from 4-6 November, 2020 at the Cape Town International Convention Centre. This event is driven by and for the industry amd promises to deliver a valuable experience for all attendees.

With this in mind, if you are interested in exhibiting, sponsoring, attending or would like to participate as a speaker at the event, please get in contact with one of the team members below:
 
Sponsorship and Exhibition enquiries:
Tracy.Gounden@za.messefrankfurt.com
Neil.Borthwick@za.messefrankfurt.com
 
Conference Delegate enquiries:
Priyanka.Lutchman@za.messefrankfurt.com
Laurell.Kok@za.messefrankfurt.com

Speaking enquiries 
Neil.Piper@za.messefrankfurt.com

EVENT DETAILS
Date: 4-6 November 2020
Venue: Cape Town International Convention Centre
Website: www.solarpowerexpo.co.za

South Africa received hundreds of responses to a call for 3,000 megawatts of emergency power that it estimates could be brought online within two years.
The Department of Mineral Resources and Energy put out a request for information in December to gather solutions for power generation in the midst of outages that are slowing economic growth.

There were 481 responses to the RFI that included options for gas, liquid fuels, coal, renewables, storage and nuclear, Mineral Resources and Energy Minister Gwede Mantashe told lawmakers Wednesday.

A preliminary analysis found that “some proposals can bring power to the grid in less than 24 months,” Mantashe said. The original request asked for short-term power-supply options of as much as 3,000 megawatts within a year.

Analysis by the department “also suggests that longer-term contracting is required to ensure prices do not negatively affect the current tariffs.”

The National Energy Regulator of South Africa also received 132 applications for a total capacity of 59 megawatts of generation for own use, according to Mantashe.

The licensing requirements for this category have been removed in an effort to reduce South Africa’s power supply deficit.
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Source.....

Energy solutions company BlueNova Energy, part of JSE-listed Reunert Group, on Wednesday launched its grid-scale Intelligent Energy Storage System (iESS) at Reunert Park, in Midrand, where the first unit has been installed to support businesses occupying the office park.

The BlueNova Energy iESS, which is housed in a shipping container, is the first of its kind to be produced in South Africa.

The system is equipped with a battery storage converter, a self-developed environmental management system, industrial-grade heating, a ventilation and air-conditioning system, and a lithium iron phosphate (LiFePO4) battery pack, which can store up to 1 MWh of energy.

The system’s building block has a 250 kW power output, with 1 000 kWh installed stored energy, and is scalable to provide more than 250 MW output power with 1 GWh installed energy capacity.

The iESS is designed for both offgrid and grid-connected applications.

“While many systems exist to provide essential power during outage periods, this system is designed to be able to provide total power during outage systems,” BlueNova Energy CEO James Verster said at the launch event.

One key application for the system is load shifting, which is the practice of buying energy from the grid during low-tariff periods, then storing it in the iESS system for discharge during peak tariff periods to offset energy costs.

Peak shaving is another possible use for the system, which involves using stored energy to ensure that peak grid energy use is limited.

Voltage and frequency stabilisation to prevent surges or drop-offs in power is another use for the system.

The system is also a reliable source of total backup power during grid failures and load-shedding.

Up to 40 iESS systems can be used in parallel when used off the grid. There is no limit when connected to the grid, Verster said.

He pointed out that the cell chemistry was central to the design of the iESS to ensure safety.

“LiFePO4 is the safest of all lithium-ion batteries, with no thermal events recorded in 25 years of rigorous testing.”

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Cape Town wants to set up its own independent power producer office to secure renewable energy, following President Cyril Ramaphosa’s announcement during his Sona address that municipalities in good financial standing will be allowed to procure their own power from IPPs.

Executive director for energy at the City of Cape Town, Kadri Nassiep says the City has engaged national treasury with a view to setting up its own independent power producer (IPP) office along the lines of the renewable energy independent power producer programme (REIPPP).

He says “we have also engaged CSIR to prepare our mini-IRP that will direct our call for proposals”. Electricity provision in the country is guided by the integrated resource plan (IRP) which sets out what electricity will be sourced and when.

Government has used the IPP office, which falls under the department of mineral resources and energy, to procure renewable energy in earlier REIPPs. The IPP office has begun an exercise to source 2,000 to 3,000 megawatts of emergency supply on an urgent basis.

Cape Town’s intention to set up its own IPP office, which will implement its own IRP, would constitute a dramatic re-shaping of the energy landscape.

Nassiep says “we still have to refine tariffs, but we are looking at it already”.

Budgets need to be realigned, he says, but that’s not a huge issue.

“So we are cautiously optimistic, but let’s see what [mineral resources and energy minister] Gwede Mantashe publishes in terms of schedule 2.”

Mantashe announced earlier in February at the Mining Indaba in Cape Town that the government would be gazetting a revised schedule 2 of the Electricity Regulation Act, which will enable self-generation and facilitate “distributed generation” by municipalities.

The City of Cape Town has fought a protracted battle with the minister and regulator Nersa over the right to source its own electricity. The dispute has its origins in 2015 when then Cape Town mayor (Patricia de Lille) asked the then energy minister (Tina Joemat-Pettersson) to allow the City to source renewable energy, but did not even get a reply.

The case has been set down to be heard in the high court on 11-12 May. Given the constrained electricity supply, the City of Cape Town had argued for an earlier court date, but has not been able to secure this.

Asked if the court case will still go ahead, Nassiep said:

“In my opinion yes. We still need clarification from the court regarding our rights.

“For instance, the minister might opt to issue [a] once-off determination in favour of munis and then not again. Or he can opt to keep it later to a cap of 500 megawatts, which might limit us unfairly. So it’s still needed.”

Nassiep says that “unfortunately” there is a likely two- to three-year time horizon for Cape Town’s own sourced power to come on stream because of financial closure issues, environmental impact assessments, power purchase agreements as well as connection charges and ordering of connection and plant equipment.

The Centre for Environmental Rights (CER) has joined the Cape Town court action, the CER’s Nicole Loser saying that local government has a constitutional duty to provide clean and healthy electricity, “which does not pollute our air, water, soil, or damage our climate”.

Loser says the Sona remarks were “very vague” on the details of municipal procurement.

“Also not clear is if there will be the needed legal reform to address the current uncertainty around municipal procurement of whether Mantashe will simply issue the determination requested by the City.”

Cape Town mayor Dan Plato cautiously welcomed Ramaphosa’s announcement.

“However, urgent clarity is required from the national government on the legal and regulatory nuts and bolts of how this must happen.

“We need urgent clarity from the government on the roles and responsibilities for municipalities and other stakeholders in terms of the new generation capacity regulations in the Electricity Regulation Act,” said Plato.

He says the City is doing a study to determine how best to overcome energy poverty, through various projects including installing solar kits, solar home systems, increasing free basic electricity and improving access to gas. 

“Improving access to affordable electricity is a key deliverable that we are investigating at the moment.”

Ramaphosa also announced that “a Section 34 ministerial determination will be issued shortly to give effect to the IRP 2019, enabling the development of additional grid capacity from renewable energy, natural gas, hydropower, battery storage and coal”.

“We will initiate the procurement of emergency power from projects that can deliver electricity into the grid within three to 12 months from approval,” he said.

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12 March 2020      3:00 - 4:00 PM CET
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The Africa Energy Indaba will host the continent’s leading Energy Conference from 3-4 March 2020 in Cape Town, South Africa. The event serves as the ideal platform for achieving Africa's energy vision for a sustainable energy future and keeping abreast of global energy competitors in this dynamic landscape. The symposium provides invaluable business growth opportunities for the continent's energy realm, subsequently inspiring much-needed transformation within the sector.

WHAT WILL BE DISCUSSED DURING THE CONFERENCE SESSIONS?

• African Ministerial Panel: What are African Energy Ministers doing to stimulate investment into the energy sectors of their countries?
• Resource Mobilisation: How can the African Energy Transition drive investment and business opportunities across the continent?
• How will South Africa’s IRP 2019 drive investment opportunities in Africa?
• Unlocking finance to grow Africa’s Energy sector
• How will the Transport Sector be impacted by an Energy Transition?
• Enabling the supply of reliable and sustainable energy for Africa
• Corporate Off-takers: Standardised PPAs – is it possible?
• The evolution of Digitisation in the African energy sector
• From Coal to Gas: Decarbonising Africa
• The role co-generation has to play in the energy mix
• Decentralisation: the role of renewable energy and mini & off-grid solutions
• Energy Storage, unlocking large scale use of renewable energy
• Municipalities as direct off-takers
• Democratisation, building energy businesses and access to energy for all
• African Power Pools and the emergence of energy trading platforms
• The link between water and power and the role of desalination

The event also features a world-class Energy Exhibition, Business Matchmaking opportunities for delegates and exhibitors, and multiple opportunities to network with like-minded attendees from across Africa.
LEARN MORE: africaenergyindaba.com / ENQUIRIES: info@energyindaba.co.za