Page 16 - Issue 3 2023

VIEWS AND OPINION

Challenges and opportunities abound

in the power utilities sector in 2023

By Godfrey Marema, Eaton South Africa

urbulent 2022 will live long in the memory for those of us who work in the
power utilities sector. Loadshedding dominated local headlines, adding
Tfresh impetus to the drive to bring more renewables into the system. The
energy transition has been high on the agenda for some time and momentum
towards new patterns of energy generation will increase in 2023. Challenges and
opportunities abound, and these are the trends that I believe will shape the year
ahead:

Loadshedding continues
Eskom has already warned South Africans that 2023 is set to come with intensified
loadshedding as more of the national network suffers breakdowns and new plants
struggle to fully come online due to construction delays and design flaws.
Pressure will be on government to deregulate the industry and allow for more
private producers, including consumers themselves. Those traditionally described
as ‘behind the meter’ – the households, businesses and industries that consume Godfrey Marema
energy – are increasingly stepping ‘in front of the meter’ to generate some of their
own energy from assets such as solar panels, as well as manage their own supply
and demand with energy storage systems. Green energy is still the key
Known as prosumers, because they produce and consume energy, their solution
increasing involvement in energy markets is recognised as the likely way forward The abundance of natural renewable
in an energy sector that must back away from heavy dependence on fossil fuels to energy in South Africa has massive
mitigate climate change. untapped potential. For large South
For national economies, domestically generated energy, even in small packets, African companies in industries like
reduces reliance on imports thus boosting energy security too. mining and heavy industry, generating
The attractions are evident, but decentralisation presents challenges to their own power from renewable sources
the utilities sector that centre on how to balance the variable energy inflow such as solar and wind is more than just
from prosumers and commercial renewables while maintaining steady supply, about protecting the environment. These
particularly at times of peak demand on the grid. What is not in doubt is that new sources are critical in managing
decentralisation will be a growing trend in 2023 locally and abroad. fast-rising electricity costs, as well as
ensuring stability of supply while the
Digitalisation state utility, Eskom, repairs its ageing
451 Research, a subsidiary of S&P Global Market Intelligence, concluded from and ailing infrastructure. Alternative
international research that the utility sector is at a critical transition point. It is power sources, like green hydrogen, will
challenged with keeping existing grid and service levels in place, despite increasing also see greater emphasis as continued
demands and ageing legacy infrastructure, while facing the need to change service research unlocks the plentiful resource
models and apply data insights to optimise operations. of water through electrolysis.
Supporting the acceleration of new additions to South Africa’s energy mix
will be achieved through the adoption of digital technologies that increase and Ending the use of SF6
optimise available energy. Energy storage opportunities will flourish and abound switchgear
considering these developments. It is important to note that while the
Digitalisation can be seen by utilities either as a key to success, or as intended move away from coal-fired
competitor to what they regard as more pressing challenges. The pressure to power generation is very positive, the
choose will be greater than ever in 2023 and beyond. choice of materials used in electrical

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