The ongoing generation crisis at Eskom has led to uncertainty surrounding the future of the South African energy sector.
An adequate response to the crisis would require “an independent platform for business, government, public enterprise and civil society to communicate, mobilise and coordinate”.
This was the objective behind the hosting of the Cape Chamber of Commerce & Industry’s (CCC&I) Electricity Summit last Monday, according to Heini Nel, the CCC&I Industrial Portfolio Committee’s Vice-Chairman.
Held at the River Club in Observatory, Cape Town; the Electricity Summit invited “some of the best people to provide context” to the issues and solutions surrounding “economic survival, social equity and environmental sustainability”, says Nel.
Speakers included Western Cape Premier Helen Zille, Eskom’s Western Cape Operating Unit General Manager Alwie Lester, as well as various experts and industry specialists from within the energy sector.
The CCC&I’s Electricity Summit on 15 April brought together some of the leading figures in the SA energy sector. PHOTO: Facebook
One of the recurring themes at the Summit was the use of renewable and sustainable energy to mitigate strain on the national grid.
According to Prof Wikus van Niekerk, the Summit’s moderator and the Dean of Engineering at Stellenbosch University, “consumers are depending on a public utility which is in the midst of a death spiral for their electricity, where alternative sources do exist at an even lower cost.”
Formerly the Director of the Centre for Renewable and Sustainable Energy Studies, Van Niekerk suggests that photovoltaic (PV) systems—which convert sunlight into energy using solar panels—are an increasingly viable option for South African middle-class consumers.
“The decrease in the price of electricity from PV has decreased dramatically in the last four to five years,” Van Niekerk says, adding, “so much so that we’re now at a point where it is becoming inexpensive.”
Consumers in Johannesburg, for example, pay City Power anywhere between R1.18 and R1.86 per kilowatt hour (kWh), depending on whether they are prepaid consumers or whether they use a meter. PV systems, on the other hand, generate electricity for an equivalent R0.70/kWh according to Van Niekerk—around half of what consumers typically pay their municipalities.
Not only has the cost of solar-generated electricity reduced over the past several years, but so has the capital cost of installing PV modules themselves.
PV modules have become an increasingly common sight on rooftops across the Cape. PHOTO: Facebook
According to marketing and sales at Energy Partners Home Solutions, the price of a partial installation of PV into one’s residence begins at R35 000. The pricing categories range all the way up until a full PV installation (which includes a heat pump and a hybrid inverter) which go for up to R180 000.
“Admittedly, PV systems are not cheap, but consumers ought to rethink their approach to these kinds of capital investments,” Van Niekerk says.
“When one buys a car, the high costs surrounding its purchase and maintenance are seen as worth it in exchange for the freedom of movement the car allows. When one installs a swimming pool, the high costs are seen as worth it in exchange for the leisure the pool allows. It is no different when it comes to PV systems and the ‘freedom of energy’ they allow.”
However, despite the fact that solar energy can be a more affordable option in the long-run, consumers tend to need encouragement before making such an investment, according to Van Niekerk.
This is where the local government ought to be stepping in, he says. “Municipalities should incentivize solar generation by buying surplus electricity directly from consumers who produce it using their PV systems. This way, the Municipality would be able to buy the energy at a much cheaper rate than they would through Eskom.”
The City of Cape Town declined to comment as to whether or not such subsidization was in any way part of the municipality’s agenda, stating only that “the City is working hard to meet carbon emissions reduction targets” and reminding consumers that they need to apply for authorisation should they wish to generate solar energy in their homes.