Page 37 - Energize August 2022

VIEWS AND OPINION

Enabling any enterprise to sell energy

by Berrie de Jager, Standard Bank

outh African President Cyril Ramaphosa’s recent removal of the licensing threshold
on embedded private generation, the announcement of feed-in electricity tariffs
Sfor the outright purchase of privately generated electricity, tax incentives for the
construction of commercial generation installations, and a virtual – albeit temporary –
scrapping of private power generation application red tape, marks a watershed in South
Africa’s 14-year struggle against the socially and economically crippling onslaught of
loadshedding and persistent energy insecurity.
While the country breathes a collective sigh of relief that a comprehensive and broadly
inclusive plan is finally on the table, the effectiveness of these bold initiatives depends
on how quickly they can be implemented, and how successfully the expertise available
Berrie de Jager
in South Africa’s private sector can mobilise and gear capital in the development of an
environmentally and financially sustainable public-private energy future.
Kick-starting stalled construction on Bid Window 5 of the Independent Power Producer modelling, delivering a report which
projects by addressing impractical local procurement requirements, doubling the size of can be used to justify renewable energy
Bid Window 6 projects from 2600 MW to 5200 MW, issuing requests for proposals for investments to boards or investors.
battery storage, as well as the review and speeding up of Integrated Resource Plan (IRP) In Standard Bank’s experience, a key
allocations, are significant developments that the country’s existing energy sector should need for any business thinking of building
leverage – and take to scale – with alacrity. The funding mechanisms and capital structures an independent energy generating and
enabling these projects has long been in place. They are proven and are working well in the trading capability, includes accessing
formal, relatively restricted, public-private renewable generation sector. and shortlisting accredited engineering,
What is most exciting about the president’s recent announcement, however, is the new procurement and construction partners.
opportunity that these pronouncements present in the decentralised energy generation Introductions to specialist concierge teams
space, that is the niche and entirely untapped energy market that sits behind the Eskom or to guide the process is also critical for
municipal meter. businesses whose core capability is not
Making this space available for general investment for the first time means that energy. As such, PowerPulse is also linked
almost any business in any sector can now potentially generate – and sell – any amount of to solar photovoltaic and other technical
energy to the grid. In short, once the required regulatory adjustments are made, energy knowledge bases across the energy value
production, sale and trading will no longer be the preserve of the state and its exclusive chain, connecting client enterprises with
and very limited circle of approved energy partners. the specialist energy experts, advice and
Instead, if South Africa urgently implements the reforms promised on Monday night, resources that they may require.
investment in the country’s energy market will expand exponentially, allowing all manner Supported by this kind of energy
of innovative combinations of energy generation, sale and supply. From malls to mines, procurement and build capability
hotels to hospitals, and farms to factories – every business or even small enterprise might ecosystem, any businesses can confidently
soon be participating in the generation and sale of electricity. add an energy income stream to their
While Eskom will retain control through a soon-to-be spun-off transmission entity, existing operations or infrastructure.
regulating and controlling the trading and transmission of energy across the grid, the key Moreover, knowing that clients are being
challenge for South African businesses wishing to participate in the country’s new energy guided by PowerPulse provides Standard
market, is managing the financing, construction delays and cost overruns that typically Bank with the confidence to provide funding
plague private generation projects. Poor quality energy generation technology investments support to as many clients as possible,
are another common pitfall preventing businesses with no knowledge of energy generation heeding the president’s call to contribute
from reaching cash-neutrality as quickly as possible. to South Africa’s future energy security in a
To help businesses manage the operational and reputational challenges associated with profitable and sustainable manner.
independent energy generation, Standard Bank has developed a digital platform to support
clients in procuring high quality and financially sound solar photovoltaic (PV) solutions. Berrie de Jager is the head of Natural
Even before the president’s recent announcement, we designed PowerPulse as a digital Resources at Standard Bank’s Business and
platform to empower ordinary businesses to produce, deliver, consume and trade energy. Commercial Clients division
Whether you are a financial executive looking to manage energy costs, feel overwhelmed
by the jargon and complexity of technical solutions, or are simply unsure of which Send your comments to
providers to use, PowerPulse provides the answer. PowerPulse even assists with financial rogerl@nowmedia.co.za

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