Undercover Farming Magazine January / February 2021

Page 15

greenhouses I shade net I hydroponics I aquaponics

Eskom’s recently tabled tariff restructure programme, which proposes changes such as charging consumers a fixed connection fee, may indeed improve the landscape for renewable energy in South Africa.

Eskom changes mind about

Renewable Energy Power

T

ygue Theron, Head of Business Lifting the generation cap Development at Energy Partners Intelligence – a Theron explains that Eskom is in fact division of Energy Partners and coming out in support of greater part of the PSG group of companies renewable energy adoption in the – says that while there has been a fair country, while also acknowledging that amount of criticism levelled against the this will expose the utility to additional state-owned utility’s proposed plan (as costs. “I believe one of the biggest well as its recent request for a 10.95% developments for renewable energy increase in tariffs), there is another way adoption locally, was when Eskom CEO, to look at the situation. André De Ruyter, joined the call for lifting the generation cap on renewable “One of the biggest points of contention systems. is the proposal that users are charged a At the same time, we “One of the biggest points split tariff, consisting of contention is the proposal have to recognise that of a volumetric surplus renewable that users are charged a usage cost, and energy will have to split tariff, consisting of a a fixed daily be stored and connection cost. volumetric usage cost, and a distributed through While consumers fixed daily connection cost. the national grid, who rely on solar “ Tygue Theron, Head of Business and that Eskom’s power are saying coal-fired generation Development at Energy Partners that this would facilities still have to Intelligence, Eskom make it longer be able to provide before they get power during the a return on their investment (thus early morning and evening hours. lowering the feasibility of investing in a These are maintenance and operational solar energy system), it could actually costs that the utility would not be better for renewable energy in SA in be able recover under the current tariff the long-run.” model.”

Greater stability? Ultimately, Theron points out that the proposed tariff restructure could indeed lead to greater stability for South Africa’s power grid. “We have run quite a few models so far, and we have found that this change, as well as the other proposed tariff changes, will not have too much of an effect on businesses. While it may increase costs for home users, it would help us get closer to our renewable energy goals while relieving some pressure on businesses in the country.” Tygue Theron, Head of Business Development at Energy Partners Intelligence is available for interviews and is keen to discuss the following points: • How the proposed tariff restructure programme can benefit renewable energy growth and more affordable energy generation; • A breakdown of the possible 10.95% tariff increase for the 2021/22 financial year; • The energy options for businesses and consumers going forward. Source: Eskom PR

Undercover farming I

September/October 2020

I Volume 17 No 5 15


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