Page 42 - Energize July 2022

VIEWS AND OPINION

In addition, municipal metros will be Finance
required to ensure and provide network It is envisaged that all the individual installations within this national priority project would
access for that portion of the total of 10 GW be self-generation, embedded generation or distributed generation facilities built by
of wind and solar PV and 5 GW of energy private sector developers, IPPs and customers of electricity, and financed by private and
storage capacity envisaged to be connected development finance institutions.
to municipal metro networks by IPPs and The allocations of new capacity to Eskom and municipal metros would be met by
municipal metro direct customers of electricity. generation facilities built and financed by IPPs to supply the energy to Eskom or the
Finally, the role of municipal metros municipal metros through power purchase agreements.
would be to facilitate and enable wheeling Thus, the major capital and finance costs for all the individual installations making up the
of power within their networks, and across national priority project would not require finance from government, municipalities or the
municipal/Eskom boundaries, in bilateral and fiscus.
trading arrangements between embedded Financial support by government and the fiscus would to a great extent be short term
generators and customers of electricity. incentives such as tax breaks, feed-in tariffs and other innovative incentives identified.

Role of the private sector Conclusion
It is envisaged that 100% of the national With the necessary will and commitment by government, Eskom, municipal metros,
priority project will be designed, engineered, financiers and customers of electricity – big, medium and small – loadshedding can be ended
financed, procured, constructed, built and within two years from the green light to proceed.
installed by private sector developers, IPPs, The starting point should be a simple, clear statement of national intent by government,
OEMs, EPCs, contractors and installers. Eskom, metro municipalities and customers of electricity, namely: to end load shedding fast.
The breakdown of the 10 GW of wind and But the plan has to be more than only words – it must contain specific actions to be
solar PV and 5 GW of energy storage capacity delivered upon.
in two years, to end loadshedding as detailed, The national priority project should be an undivided mission of government, Eskom,
is a customer sectorial breakdown. municipal metros, domestic, commercial, industrial, mining and agricultural customers of
In this sense, Eskom and municipal electricity, the Energy Council of South Africa, the Minerals Council of South Africa, the
metros are also customers of the electricity Energy Intensive User Group, Business Unity South Africa and heavy weight electricity
so produced, as are the domestic, customers such as Sasol, South32, Arcelor Mittal, Anglo American, and others, to end
commercial, industrial, mining and loadshedding fast.
agricultural customer sectors. This will not be an easy task, but it is most definitely achievable if stakeholders are
committed and determined.
Role of the Energy Council (ECSA), No naysayers or problem raisers should be tolerated – only problem solvers and solution
Minerals Council (MCSA) and Energy providers.
Intensive User Group (EIUG)
ECSA, MCSA and EIUG and their members This article has proposed short- and medium-term solutions to South Africa’s electricity
are prominent, high-profile participants challenges. For longer-term solutions addressing South Africa’s electricity future, see here.
in the South African economy and energy
sector. As such, ECSA, MCSA and EIUG and For further reading
their members are deeply affected by load - Dr Adam Dorr and Tony Seba: “Rethinking Energy 2020-2030: 100% Solar, Wind, and Batteries
shedding, is Just the Beginning”, a RethinkX Disruption Report, October 2020
ECSA, MCSA and EIUG and their - Chris Yelland: “SA needs a ‘Marshall Plan’ to solve its load shedding crisis, or face a national
members are therefore uniquely positioned disaster”, Daily Maverick, 9 May 2022
to act as a catalyst and to play a vanguard - Prof. Mark Swilling: “The long and short of load shedding solutions – time to call disaster and
role in supporting and engaging with harness the power of wind and solar energy”, Daily Maverick, 29 May 2022
government and other key stakeholders to - Clyde Mallinson: “Here’s one idea for ending load-shedding within two years”, Engineering
establish this national priority project to end News, 9 June 2022
load shedding fast. - Meridian Economics: “Resolving the power crisis, Part A: Insights from 2021 - South Africa’s
ECSA, MCSA and EIUG are in a position worst loadshedding year so far”, 13 June 2022
to raise this national priority project to the - Meridian Economics: “Resolving the power crisis, Part B: An achievable game plan to end
attention of government at the highest level, loadshedding” 13 June 2022
to promote and drive the necessary action - Meridian Economics “Hot air about gas: An economic analysis of the scope and role for gas-
by its members and likeminded business and fired power generation in South Africa”, 20 June 2022
industry associations, and to coordinate the - Prof. Mark Swilling: ‘Imagine no load shedding, it’s easy if you try — no hell below us, above
necessary actions by heavyweight energy us only sky” Daily Maverick, 20 June 2022
customers and companies in the private
sector. Send your comments to rogerl@nowmedia.co.za

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