Eskom changes mind about Renewable Energy Power

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.

Tygue Theron, Head of Business Development at Energy Lifting the generation cap Greater stability? Partners Intelligence – a Theron explains that Eskom is in fact Ultimately, Theron points out that division of Energy Partners and coming out in support of greater the proposed tariff restructure could part of the PSG group of companies renewable energy adoption in the indeed lead to greater stability for South – says that while there has been a fair country, while also acknowledging that Africa’s power grid. “We have run quite amount of criticism levelled against the this will expose the utility to additional a few models so far, and we have found state-owned utility’s proposed plan (as costs. “I believe one of the biggest that this change, as well as the other well as its recent request for a 10.95% developments for renewable energy proposed tariff changes, will not have increase in tariffs), there is another way adoption locally, was when Eskom CEO, too much of an effect on businesses. to look at the situation. André De Ruyter, joined the call for While it may increase costs for home “One of the biggest points of contention lifting the generation cap on renewable users, it would help us get closer to our is the proposal that systems. renewable energy goals while relieving users are charged a split tariff, consisting of a volumetric usage cost, and “one of the biggest points of contention is the proposal that users are charged a At the same time, we have to recognise that surplus renewable energy will have to some pressure on businesses in the country.” Tygue Theron, Head of Business Development at Energy Partners a fixed daily split tariff, consisting of a be stored and Intelligence is available for interviews connection cost. volumetric usage cost, and a distributed through and is keen to discuss the following While consumers fixed daily connection cost. the national grid, points: who rely on solar power are saying that this would make it longer “ Tygue Theron, Head of Business Development at Energy Partners Intelligence, Eskom and that Eskom’s coal-fired generation facilities still have to be able to provide • How the proposed tariff restructure programme can benefit renewable energy growth and more affordable energy generation; before they get power during the • A breakdown of the possible 10.95% a return on their investment (thus early morning and evening hours. tariff increase for the 2021/22 lowering the feasibility of investing in a These are maintenance and operational financial year; solar energy system), it could actually costs that the utility would not • The energy options for businesses be better for renewable energy in SA in be able recover under the current tariff and consumers going forward. the long-run.” model.” Source: Eskom PR