Congratulations South Africa

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Being a part of the recent drive towards renewable energy implementation in South Africa, I feel proud that the decision makers put the citizens first instead of any narrow interests of one or another sector. Its a tough job to put the right policies in place, one which I don’t envy at all, yet when we look back in ten years time hopefully we will mark the implementation of this Feed in Tariff as the turning point of an exciting journey towards carbon free energy generation.

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Earthlife Africa publishes “Sustainable Energy Briefing 17: Renewable Energy Costs”

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Here’s a very good paper on the opportunity for renewable energy in South Africa “Sustainable Energy Briefing 17″ exploring the costs of renewable energy vis-a-vis fossil fuel. As Earthlife summarizes:

“With Eskom negotiating with the World Bank for a US$5 billion dollar loan to finance a part of its planned R1 trillion expansion plan, there is an urgent need to assess Eskom’s current build plan in the sober light of financial long-term health. Eskom’s current plans are for increased investment in coal-fired power stations and nuclear plants. These plants have life expectancies of between 40-60 years.

The attached Sustainable Energy Briefing will summarise recent research into the costs of renewable energy versus fossil fuel energy. This research indicates that the cost of building renewable energy is cheaper (or at par) with that of fossil fuels and without the consideration of externalised costs.

In addition, the unit cost of electricity will be examined. In the next 15 years or less, the unit cost of renewable energy will be less than that of conventional energy. This statement (perhaps one of the most important statements in the energy sector today) has the logical consequence that Eskom’s continued reliance on coal will result in higher than necessary energy prices. Once again, these calculations do not include externalised costs such as carbon emissions, poor air quality, waste storage, and acid rain.

Finally, this issue will outline the faulty economics of nuclear power. Simply put, nuclear power may be the altar upon which this country bankrupts itself.”

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Responses to NERSA’s REFIT Proposal

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Following is Kayema’s reponse to NERSA’s REFIT proposal

Another well thought our proposal was submitted by Earthlife South Africa which may be found at the following link: Earthlife Response to NERSA’s REFIT proposal

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South Africa’s Renewable Energy Feed-in Tariff

Filed Under Cleantech, Global Warming, South Africa | Tags: none | Leave a Comment

The National Electricity Regulator of South Africa (NERSA) just published two key pieces of new proposed regulations:

1 Power Conservation Program (PCP)

2. Renewable Energy Feed-in Tariff (REFIT)

The PCP proposal has the potential to revolutionize the energy efficiency/renewable energy sector in South Africa by requiring South Africa’s biggest electricity consumers to reduce their use of electricity by 10% or face very high rates. Compared to these rates, renewable energy or energy efficiency steps become highly profitable based on avoided penalties.

The feed in tariff on the other hand is not helpful as a promoter of  renewable energy in South Africa since the prices being proposed do not come near to guaranteeing a suitable return on investment. In addition we believe that a 15 year period is too short. Investor are going to want to see at least 20 years guaranteed rate. We are still early in the process so there is still time to influence NERSA to adopt a more realistic rate. Hopefully the final document will reflect a more realistic policy.

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