Page 37 - Energize July 2021

VIEWS AND OPINION

The new 100 MW threshold: The best megawatt

remains the megawatt not used

by Barry Bredenkamp, SANEDI

s the country focuses on improved energy generation companies across the country adopt their
capacity, energy savings must not be forgotten! The South own generation plants.
AAfrican energy industry – and indeed the wider business Added to that, at the most basic, it is
community – is celebrating the recent very positive announcement cheaper to save energy than to generate it.
by President Ramaphosa on the increased threshold for embedded Building new generation capacity is a big
electricity generation for private companies, up from just 1 MW to investment, regardless of the energy source.
100 MW. However, while companies start investigating their self- While it will be exciting to see the small-scale
generation options, it is vital that we do not forget our impact on embedded generation projects popping up
“the other (demand) side of the meter”. in the coming months and years, there are
The International Energy Agency still regards energy efficiency additional cost and environmental savings to
as the “first fuel”, and we should strive to save every possible Barry Bredenkamp be gained by including energy efficiency in
kWh before adding new generating capacity, whether it be from the overall mix. Regardless of how and where
renewable sources or not. Companies must prioritise energy savings, not just self-generation. power is generated, someone still pays
While I agree that the new 100 MW threshold is great news for the stability of supply and our for the megawatt consumed, whereas the
economic potential, I would like to see every installation targeting a baseline load of 110 MW. You avoided megawatt is “free”. In my opinion,
might wonder why I would suggest this when the new threshold is 100 MW. My take is that there the best megawatt is still definitely the
is at least 10% energy savings potential on the demand side of the meter at virtually all proposed megawatt not used.
installations that should be investigated and optimised, before adding additional supply-side capacity. Alternative energy solutions are
The more energy (consumption) we can avoid or save, the smaller the size of the load understandably a priority in South Africa,
required to operate those end-use technologies. Therefore, we urge project developers not to lose with our ageing electrical infrastructure
focus on first exploring the energy efficiency potential, by setting an internal target to save 10 MW and threatened energy security. Giving
of electricity for every 100 MW of renewable power generation capacity installed, in this new and companies the opportunity to generate
exciting journey in the South African energy landscape. their own power is sure to assist with our
Businesses are now empowered to generate their own electricity with limited country’s economic recovery plan. However,
administrative bureaucracy. If companies can install and operate their own energy I implore these companies to not forget
infrastructure to cater for their own needs, without having to apply for licences from the about the other side of the green coin.
National Energy Regulator of South Africa (Nersa), why worry about energy savings? Well, aside Energy efficiency should still be the first step
from the substantial financial investment required for self-generation installations, all new towards energy security!
build projects come with an environmental cost. Even renewable and clean energy projects
come with a carbon footprint. If you consider the manufacture and transport of every piece of Send your comments to
equipment and component required for a solar farm, you can see how this might add up when rogerl@nowmedia.co.za

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