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COCT court case vs Eskom


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The City of Cape Town has been awarded an opportunity to make its case on why it is beneficial for the province to cut out the middle man (Eskom) and purchase electricity directly from independent power producers (IPPs).

As reported by EWN, the City, led by its mayor, Dan Plato, will get a chance to engage Eskom and the National Energy Regulator of South Africa (Nersa) in court about this on 18 June.

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WHY DOES THE CITY OF CAPE TOWN WANT POWER FROM IPPS?

IPPs are privately-held corporations with facilities to generate power. IPPs own 1 000MW of power generated from gas turbines, all of which is exclusively available to Eskom for procurement.

If approved, the City will be able to purchase up to 400MW of electricity from IPPs as surety in instances where load shedding is implemented.

“The City maintains that it will be vital for the national government to open up the electricity generation environment if cities are to be able to reduce carbon emissions and if the security of power supply is to be achieved,” he said.

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PLATO ENCOURAGES OTHER PROVINCES TO JOIN THE FIGHT

For Plato, the ball lies in Eskom’s and Nersa’s court on what they deem is more important between profit and the catering needs of the people.

“This is not just a Cape Town fight. As a city, we encourage all other metros, being the growth engines of our country, to join us and to actively participate in constructive responses to mitigate the impact of the electricity supply shortage in the commercial sector especially,” he added.

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The City, Plato revealed, wants to “loosen itself from Eskom”. As things stand, the power utility has the exclusive rights to purchase renewable energy, for resale, from IPPs.

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This forum must be the biggest in RE in South Africa but correct me if I'm mistaken..

So having said that I find the lack of interest in electrical power utilities disappointing. We are nowhere near being able to do without the grid without a massive outlay of capital which only the obsessed will pursue (not the prudent!)

It seems to me that everyone with a PV panel, inverter & battery has a pipe dream of going off grid so takes little interest in the utilities. I beg to differ! 

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10 hours ago, Richard Mackay said:

This forum must be the biggest in RE in South Africa but correct me if I'm mistaken..

So having said that I find the lack of interest in electrical power utilities disappointing. We are nowhere near being able to do without the grid without a massive outlay of capital which only the obsessed will pursue (not the prudent!)

It seems to me that everyone with a PV panel, inverter & battery has a pipe dream of going off grid so takes little interest in the utilities. I beg to differ! 

Richard, you're right, and you're wrong...

Some of us saw this trainwreck coming a long time ago and started working on our own solutions. Becoming power (or water) independent is a long and gradual process to which you must devote decades.

We also may or may not have had a long history of trying to sway official policy and direction, to little effect.

If you wait for policy to shift you should get used to cooking over an open fire and going to bed when the sun goes down.

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On 2020/10/18 at 7:29 AM, Richard Mackay said:

Look like there has been some progress: https://ewn.co.za/2020/10/17/ipps-vital-for-energy-led-economic-recovery-in-sa-says-wc-government

I'm not sure quite what this means for us micro SSEGs.. 

I was about to say that policy amendments had been tabled and are open for public comment. 

AIUI (reports are now going behind paywalls), the option will be open to municipalities who have a good financial position with Eskom (there aren't many) and with a restriction that the power from the IPP can only be supplied within the municipality. Reportedly Ekhuruleni and COCT are ready to go.

I note that COJ are starting to take over from Eskom in some areas within the city but historically supplied by Eskom.  Why are they doing this? Might it be because they are lining up alternate sources of power?

I also note aggressive programs of disconnecting illegal connections. I do feel sorry for some of these poor folks BUT, certainly in Johannesburg, there is a free allocation that the financially stressed can apply for. Not a huge amount, but it will keep lights burning and your fridge running. You do have to have a meter and the free amount is given as a credit each month. This is a reasonable solution, and it is available across the entire city (a person in my street has taken advantage of this, but since that person regularly overruns and can't or won't pay, they get cut off anyway. My point is the municipality is not completely heartless).

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12 hours ago, Richard Mackay said:

This forum must be the biggest in RE in South Africa but correct me if I'm mistaken..

So having said that I find the lack of interest in electrical power utilities disappointing. We are nowhere near being able to do without the grid without a massive outlay of capital which only the obsessed will pursue (not the prudent!)

It seems to me that everyone with a PV panel, inverter & battery has a pipe dream of going off grid so takes little interest in the utilities. I beg to differ! 

Oh we do still need a good grid. I have spent what, for me, is not small change. I don't have regrets, it is saving me money (not as much as I'd hoped, though breaking even is still possible depending on future tariff increases), and load shedding doesn't bother me personally, but to put myself in a position where I am completely independent of the grid would cost at least as much again, and then what about the robots, the telecomms networks, the businesses and all the other users of the grid?

So, yes, whilst I have improved my own position, an improved grid is a necessity for my suburb, the city and the country.

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