https://www.moneyweb.co.za/news/south-africa/ekurhuleni-fast-forwards-its-green-energy-programme/

Ekurhuleni fast-forwards its green energy programme Renewables plan expected to bring billions in investments into the city.
Moneyweb  /  5 September 2019 00:01     One comment so far
Ekurhuleni hopes to procure 10% of its energy needs from green energy providers by next year. Image: Patrick T Fallon/Bloomberg Ekurhuleni hopes to procure 10% of its energy needs from green energy providers by next year. Image: Patrick T Fallon/Bloomberg
The City of Ekurhuleni is accelerating an ambitious programme to procure almost 700 megawatts (MW) of green electricity generation capacity from 47 independent power producers (IPPs).

Read: How renewables are helping Eskom keep the lights on

Most of the projects fall within the 10MW upper limit and are thus covered by former energy minister Jeff Radebe’s May 2019 notice, which allows for deviation from the current Integrated Resource Plan for a total of up to 500MW of generation capacity annually.

Read: Independent power producers catch a break
This should simplify the licensing process, according to Thembani Bukula, former full-time member of energy regulator Nersa and current PowerX CEO.

Projects that exceed 10MW have to apply to the minister of energy via the Department of Energy, according to Jabulile Kgomo, project manager for alternative and renewable energy at the City of Ekurhuleni.

Employment

The programme is expected to bring billions of rands in investment to Ekurhuleni and, with special conditions relating to local employment, also create jobs for residents.

While the city asked for bids in 2016 and made the 47 awards in 2017, the project then stalled until unlocked by Radebe’s notice, says Kgomo.

The awards were made subject to three conditions:

Compliance with section 33 of the Municipal Finance Management Act (MFMA) to provide for a municipality to conclude contracts over periods longer than three years;
The conclusion of a power purchase agreement (PPA) between the IPP and the municipality; and
The IPP obtaining the required generation licence from Nersa.
The capital investment will be for the account of the IPP, but the city will sign a power purchase agreement that would guarantee the off-take over a period of 20 years.

The city is currently conducting a public participation process in compliance with section 33 of the MFMA and members of the public may submit comments until September 16.

The council will then consider a report on the project incorporating these comments and, if approved, will continue to conclude the power purchase agreements, says Kgomo.

With the PPA in hand the IPP can then apply for the necessary generation licence.

The programme includes a variety of energy technologies including solar photovoltaic (PV), waste-to-power, utilisation of landfill gas and fine coal dust.

Ekurhuleni will only consider tariffs equal to or less than the Eskom Megaflex tariff. The IPPs will be paid their full tariffs for the first three years of the 20-year PPAs, with discounts applied for the remainder of the period. The average discount rate for solar PV projects amounts to 8.7% and for natural gas technology 12.4%, for example.

IPP despondence turns to excitement

John Mashao, technical director of Akani Energy, which has been awarded a 10MW solar PV project, says the company was quite despondent when the project stalled, but the new developments are very exciting. He expects a meeting between the city, successful bidders and possible sub-contractors within the next week or two. He hopes to start construction before the end of the year and says the plant should be up and running within six months thereafter.

Alfred Phiri, engineer at Alcha Energy Solutions, which has been awarded a 36MW fine coal generation project, says the project might be split into different units, each not exceeding 10MW. This will ensure that it qualifies for Radebe’s deviation.

According to Phiri, the project is being financed by both local and international investors and the capital cost could be more than R1 billion. It would use fine coal dust – a by-product of Eskom’s coal-fired power stations.

“We are ready to start,” Phiri says, adding that a 10MW plant could be constructed in four to six months and a 36MW plant in a year.

Specialist energy legal consultant Sue Rohrs says obtaining ministerial determination for projects of more than 10MW could be a challenge. The minister of energy has never before granted anybody but Eskom permission to buy from IPPs, she says.

The City of Cape Town in fact went to court in an effort to force the minister to grant it such a determination, or alternatively have the relevant provision in the Electricity Regulation Act declared unconstitutional. The application was heard earlier and the high court reserved judgment.

Rohrs says Ekurhuleni is, together with Cape Town, at the forefront of the move to green energy at local government level.

If successful, she expects other municipalities to follow.

Ekurhuleni hopes to procure 10% of its energy needs from green energy providers by next year, according to Kgomo. She says Ekurhuleni’s power purchases from Eskom would not decrease, but as a growing city it would procure its additional needs from IPPs.

 

35 minutes ago, DeepBass9 said:

The City of Cape Town in fact went to court in an effort to force the minister to grant it such a determination, or alternatively have the relevant provision in the Electricity Regulation Act declared unconstitutional. The application was heard earlier and the high court reserved judgment.

Rohrs says Ekurhuleni is, together with Cape Town, at the forefront of the move to green energy at local government level.

If successful, she expects other municipalities to follow.

Ekurhuleni hopes to procure 10% of its energy needs from green energy providers by next year, according to Kgomo. She says Ekurhuleni’s power purchases from Eskom would not decrease, but as a growing city it would procure its additional needs from IPPs.

Now my hope is that they will buy form us small folks too. 1000's of us selling back a few watts each and every hour could become a very large number.

I've heard a rumour that the president and his two bil are going for solar... 

Meddling from the AnC side will trip any venture... 

2 hours ago, The Terrible Triplett said:

Now my hope is that they will buy form us small folks too. 1000's of us selling back a few watts each and every hour could become a very large number.

There is an interesting legal case going on in Joeys right now which revolves around the resale of electricity. This is because Vumacam have stuck poles up all over the place, not always with all the correct paperwork having been obtained first. Now they go to the suburbs involved and say they can do all sorts of marvellous things to track villains and suspicious vehicles (or even vehicles moving suspiciously) but they need power. COJ is unwilling to directly supply, so Vumacam are asking residents if they can tie in to the house supply, meter the connection and reimburse them. COJ now say this makes those residents 3rd party sellers of electricity and that is not allowed and any such connections will be deemed illegal.

I'd also like to sell back, though I suspect no actual money will change hands, just the meter will run backwards. But isn't there a problem with all this juice being generated in the middle of the day when it's really required in the early evening?

20 minutes ago, Bobster said:

no actual money will change hands

The law needs to change. At the moment Eskom are the only people allowed to buy and sell power from anyone, so your own municipality can't even buy from you.

Within co-ops (eg residential estates) there is apparently some leeway, but usually also without an actual sale being done.

In all cases, instead of buying electricity from you, they rebate you on what they sell to you.

22 minutes ago, Bobster said:

meter will run backwards

What they do is give you a special meter that measures forward and reverse energy separately. If was done using a single meter, they'd end up rebating you at the same rate you buy from them, and that is simply not a good deal given that you are using their infrastructure to transport the product 🙂

 

27 minutes ago, Bobster said:

But isn't there a problem with all this juice being generated in the middle of the day when it's really required in the early evening?

It is yes. SA would need to change some habits to make it work properly, unless one has the batts to push back at those times.

Gov providing tax and VAT breaks and subsidies to allow more people to buy more batteries so that the can charge during the day and feed back at peak hours ... oeps, my coffee is cold. Sorry.

And that bi-directional meter Plonkster refers to, about R12k last time I checked, which should be installed free of charge as it is the Munic's property WHEN we can either use the grid as storage OR, preferably, the law is changed and we can earn some cash selling power to the Munic.

41 minutes ago, plonkster said:

The law needs to change. At the moment Eskom are the only people allowed to buy and sell power from anyone, so your own municipality can't even buy from you.

Within co-ops (eg residential estates) there is apparently some leeway, but usually also without an actual sale being done.

I would think that in such cases, the customer is the body corporate, and as long as they don't sell to another body corporate or to the fish and chip shop next door then there is no resell.

 

41 minutes ago, plonkster said:

What they do is give you a special meter that measures forward and reverse energy separately. If was done using a single meter, they'd end up rebating you at the same rate you buy from them, and that is simply not a good deal given that you are using their infrastructure to transport the product 🙂

Yes. I wouldn't mind if they paid me back at 50% of retail. I'm currently using about 1 kw/h a day, and with all that spare juice in the PM I'd be laughing all the way to the bank.

 

41 minutes ago, plonkster said:

What they do is give you a special meter that measures forward and reverse energy separately. If was done using a single meter, they'd end up rebating you at the same rate you buy from them, and that is simply not a good deal given that you are using their infrastructure to transport the product 🙂

My installer told me a tale (I can't verify) of a customer who has an old meter with the digits on wheels that is now running backwards and how happy he is with this. This sounds to me like a a disaster waiting to happen. Say the meter was on 3456789.3, then a month later it is on 333456.3, the billing software will assume that the meter ran up to all 9s then kept going around, and will generate one massive bill.

5 minutes ago, Bobster said:

I wouldn't mind if they paid me back at 50% of retail.

CoCT wants to pay the same rate that they buy from Eskom Excl VAT off course.

3 minutes ago, Bobster said:

... wheels that is now running backwards ...

Therein CoCT insisting you get a new PAYG meter for that is happening and yes, when that gets noted, man, I don't want to get into that argument with officials. 🙂

3 hours ago, Bobster said:

Say the meter was on 3456789.3, then a month later it is on 333456.3

Apparently you can set a www.Iammeter.com system up to alert you if that situation is imminent.

Check out the demo mode, seems interesting.

It's a system I intend to install on my next trip to SA, the 3ph meter and the GPRS/GSM modem are already on the way.

4 hours ago, Bobster said:

My installer told me a tale (I can't verify) of a customer who has an old meter with the digits on wheels that is now running backwards and how happy he is with this. This sounds to me like a a disaster waiting to happen. Say the meter was on 3456789.3, then a month later it is on 333456.3, the billing software will assume that the meter ran up to all 9s then kept going around, and will generate one massive bill.

I know someone with such a meter as well. They manage it carefully to ensure that it creeps up slowly by the next meter reading. I've also seen some meters that have reverse lock-up: A small ratchet mechanism prevents the disk from spinning backwards past the zero point. That's actually not a bad meter to have: It doesn't trip and it also doesn't bill you.

14 minutes ago, phil.g00 said:

Apparently you can set a www.Iammeter.com system up to alert you if that situation is imminent.

Check out the demo mode, seems interesting.

It's a system I intend to install on my next trip to SA, the 3ph meter and the GPRS/GSM modem are already on the way.

What sort of price are we looking at for the 3 phase meter?

There is a single phase version that is around 120 USD.

The retail unit price for 3Ph  230A meter is 180USD (150USD for 100A meter). 

There are bigger CT's included with the 230A. - This is the version I ordered.

They connect to your wireless network if it is within range.

Stats viewable on the local network or in the cloud, there is also a phone app.

And use a GSM dongle if not. ( needs a local sim card).

The dongle is 20USD, but the seller, (who I think is also the developer) threw the dongle in for free on the basis that I let him know if it works in SA and Ireland.

Very nice chap with excellent English and product knowledge.

He says the firmware contains all the SA APN's already, he just has never sold one to someone from SA before.

25 USD shipping extra.

Customs charges, we'll see.

Edited September 5, 20196 yr by phil.g00

27 minutes ago, phil.g00 said:

There is a single phase version that is around 120 USD.

Actually I have just rechecked and it is the single phase solar package that is 119 USD.

But that package includes two single phase meters and two CT's in this configuration.

Edited September 5, 20196 yr by phil.g00

Well my three phase Victron and Solis grid tie combo has finally been installed and is busy commissioning. 
It produces a peak of just over 9 Kw at midday at the moment and around 65-70Kwh per day it seems. I tend to average 25Kwh own use per day, less in summer.

This system is approved to feed in via AMI three phase meter. According to my calculations I should be able to break even on my electricity bill averaged over a year, i.e. overall it should be a zero amount or at least close to it. This despite COCT feed-in tariff version 2 and the large discrepancies between what I pay per Kwh to COCT vs the pittance I get in return for my power (which obviously smells funny I presume).

Since I am lucky enough to have a three phase 150A connection my allowed feed in is just over 30Kw so I am not even close to that limit.

But the point is - with this fairly large system by residential standards I can only just break even. With the normal single phase 60A house feed it simply is not feasible to give COCT your excess power. You might as well just route it into a nice aircon or something just for kicks.

 

23 hours ago, Bobster said:

My installer told me a tale (I can't verify) of a customer who has an old meter with the digits on wheels that is now running backwards and how happy he is with this. This sounds to me like a a disaster waiting to happen. Say the meter was on 3456789.3, then a month later it is on 333456.3, the billing software will assume that the meter ran up to all 9s then kept going around, and will generate one massive bill.

No tale - that works with any old style ferris wheel meter. It might not work well though as these things are not designed to do this - the counter mechanism can foul and even jump vastly increasing the number. In addition this is regarded as meter tampering so it is illegal. I am sure any meter reader that sees your wheel merrily going the wrong way will report you and you might have some explaining to do to one of these guys: 👨‍⚖️

I have two of those spare in my old eskom box if anyone wants to experiment. The other one is on my generator to measure the kWh.