Tuesday, 29 March 2016

Is SA’s power problem a thing of the past?


Is SA’s power problem a thing of the past?

By Jack Ward, MD of Powermode



 If you believe Eskom’s chief executive Brian Molefe, then it’s time to celebrate: He says the power utility has stabilised its power delivery and there won’t be any load shedding for the rest of the summer – and through winter.

To give credit where it’s due, Molefe has commendably headed a new management team at Eskom that has, on the surface, resolved the parastatal’s service delivery problems.

But while he is doing his best to restore calm to the tempestuous waters of the troubled energy sector, there are a slew of challenges awaiting him, like shadowy spectres, in the dark recesses of Eskom’s aging infrastructure.

In addition to the scourge of illegal electricity connections and cable theft – which are said to cost billions of rand annually - Eskom’s poor infrastructure planning and inadequate maintenance are becoming increasingly problematic, leading to massive, costly repair projects.

Many power users report long, unannounced power outages caused by grid failures. Frustrated, they claim that load-shedding, with its regulated, predictable black-out periods, was preferable to the current state of affairs.

For those who view Eskom’s challenges from the ‘glass-half-full’ perspective, I believe there will be trouble in store when SA’s economy decides to pick up again. Quite simply, there is not enough electricity available to power any meaningful industrial or commercial growth. We increasingly hear of factories and commercial centres having their expansion plans shackled by Eskom’s inability to deliver enough power to support them.

As electricity consumers gaze down the barrel of a NERSA-approved price increase of 9.4% for 2016/17, we should remind ourselves that the hike will have a significant impact on consumer price index inflation this year, and it will be the catalyst for increased upward pressure on inflation-linked expenditure including social grants and free basic services to the poor who now number around 17 million South Africans. There could be danger ahead on this road to the future.

What’s the answer? For electricity consumers who decide to take the long view, there are very few alternatives as appealing as solar power. Rooftop solar photovoltaic (PV) power solutions are among the most practical and they’re in use the world over by those looking to act responsibly to boost their energy needs, control of their carbon footprints and minimise harmful emissions.

In SA, while eco-friendliness might not be at the top of the drivers for the adoption of solar energy, an escalating number of consumers see it as an attractive, cost-effective solution. In fact, we have examples of a number of successful installations undertaken recently in which solar and generators have partnered successfully in hybrid solutions to resolve Eskom’s supply problems.

Solar is also seen an ideal hedge against electricity price rises which will be inevitable. Decisions to select solar power as the ‘go-to’ option are increasingly supported by developments in the field of solar technology, including the release of utility grid-connected, hybrid solar PV power systems capable of functioning as back-up as well as complementary power sources.

In the event of a power outage, these systems can be operated in three modes: linked to the electricity grid (grid-tied); as a grid-tied unit with genset backup (in a hybrid configuration); or as a stand-alone hybrid unit.

For those who look for ways to boost SA’s ailing economy, the rooftop solar PV market could provide a solution. According to estimates, there is a sizable market with potential for substantial growth for solar installations in SA. Sales of these systems could well help create hundreds of new small-scale businesses and hundreds of thousands of new jobs in the near term.



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