Ambitions for self generation in the City of Cape Town - Leila Mahomed Weideman Director Sustainable Energy Markets Energy & Climate Change ...
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Ambitions for self generation in the City of Cape Town
Leila Mahomed Weideman
Director Sustainable Energy Markets
Energy & Climate Change - Sustainable Energy Markets
August 2020
ENERGY SECURE LOW CARBON FUTURE FOR CAPE TOWN
Planning and Research:
Energy Planning; Carbon Neutral Modelling & Planning; Feasibility Studies; Data Management; Policy Dev
2. Small Scale IPP
1. Large Enhanced Embedded procurement
Scale IPP Generation 3. 1-10MW City-
Procurement Owned
Generation
Roll out of Independent 4.
City-Owned Renewable Energy Generation readiness
• An assessment for viable solar PV project sites on vacant City-owned land and
some Transport and all Wastewater and Energy facilities has been concluded.
• The sites assessed, could deliver a range of installations from less than 1 to
10MWp, with a preference for larger installations due to economies of scale.
• The land audit & initial grid connection assessment suggests development of
Renewable Energy projects on City-land & assets will be constrained and is
unlikely to exceed 50MW – 70MW under current conditions.
• 50 MW of solar will provide about 1% of the energy purchased from Eskom on an
annual basis. (City supplies about 75% of the electricity consumed in the metro.)
The total budget at current prices to develop 50 MW would be about R750
million.
• 4 Waste-to-Energy generation sites are under assessment and development and
form part of a Cleaner Development Mechanism Programme
• To meet energy diversification objectives, renewable energy targets and our
carbon neutral by 2050 commitment would require significant purchasing and
importation of renewable electricity from Independent Power Producers
(IPPs) outside of City boundaries.
3
Immediate CoCT Solar PV Development Programme
Goals and Activities
• Current work on the small scale (
Atlantis Buffer Zone – ERF 2756RE Quick Facts
• Development expected to cover a land area of 10 to 20 Hectares;
• Expected installation size of 7 – 10 MWp dependent on final feasibility designs;
• Expected to generate enough clean electricity to power the equivalent of
4000 low to middle income households every year;
• 50 jobs expected to be created during construction phase of the project;
• Increased security presence in vicinity hoped to result in decrease in rates of
crime.
Atlantis Buffer
Zone – ERF 2756RE
Location
5
Wheeling is not about electrons
Wheeling is the financial transactions representing the transportation of third
party electrical energy (kWh) over the City’s distribution network which allows for
the third party supplier to sell this electrical energy to a City customer at that
customer’s point of supply.
• City of Cape Town Electricity Supply By-law of 2010
– Allows for retail wheeling of electricity through the City’s network by a third
party licensed electricity supplier to customers within the City Supply Area
• Tariffs approved, but not yet implemented. Tariffs are published on City’s web
• Date of implementation delayed due to back office work regarding billing
requirements and integration
CITY/DISTRUBUTOR
ESKOM/
CUSTOMER
GENERATOR
THIRD PARTY SUPPLIER (RETAIL)
6
Wheeling Rules- City of Cape Town at 20 August 2020
• Generators must have a NERSA generation license
• Generators and consumers must both be connected to the City’s Grid at MV or
higher (Generation probably >1MW) (Same as for wheeling over Eskom’s grid)
• Consumer pays all wheeling charges. No cross subsidisation between wheeling
and non-wheeling customers- wheeling tariff therefore equal to difference
between retail tariffs and Eskom’s wholesale price (WEPS)
• The generator will pay demand and energy and admin charges as would any large
consumer of electricity, but will not pay any wheeling charges
• Initially only generators connected directly to the City’s grid will be allowed
• Wheeling charges includes rates and streetlighting contributions
• Energy will be balanced on a half hourly basis. There will be no aggregating of
excess or shortfall of energy within TOU periods and subsequent balancing of
aggregated excess or shortfall (i.e. no banking of excess energy generation)
7How the City is facilitating SSEG uptake with its residents
Providing easy-to-use information and guidance
i booklets and videos to installers and residents
Registration awareness campaign (June 2018 –
June 2019)
Working with SAPVIA’s PVGreenCard accreditation
System, to provide assurance to residents
Exploring innovative financing programmes
► Work underway to look at the legal implications of the
City playing an enabling role in financing residential
SSEG.
► Internationally done, but our legal/regulatory structures
are very strict when it comes to City’s involvement in
interventions to private property.
► We are committed to developing a system that is
beneficial to the customer without putting the City at risk
as we believe this type of facilitation by the City is key to
large scale residential uptake.
Moving to an online registration process 201
9Small-scale embedded generation (SSEG) in the City
WHAT DOES THE CITY OF CAPE TOWN ALLOW?
Capacity: less than 1 MW
Note: 1 000 kVA = 1 MVA = 1 MW (for solar PV systems)
Generation: Solar PV and small wind turbines
Grid-tied: Connected to the City’s electricity grid
(feed-in or reverse flow blocking)
OR
Off-grid: physically disconnected from the grid
(i.e. no connection to electricity grid at all)
Consumption: Supplies ‘a single customer’ –
can be residential, commercial or industrial & must 1st municipality to develop SSEG
be a net consumer over a rolling 12-month guidelines, tariffs and automated
period billing in SANumber of PV Systems in the City
Approved grid-tied installations Total Systems (based on aerial
commissioned (June 2020): study):
• No. of Systems = 976 • Over 4 000 (as of 2019)
• Capacity = 41.59 MVA • Estimated Capacity = 50 MVA
1000
900
Approved, grid-tied SSEG Installations
800
700
600
500
400
300
200
100
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Residential CommercialTariffs set by all
municipalities need
CoCT SSEG Feed-in Tariffs for 2020/2021 to strike a balance
between protecting
municipal revenue
Residential SSEG 2 tariff: and ensuring a
► Service Charge = R 226.36/month viable business case
► Energy Charge: for SSEG customers
Block 1 (0 – 600 kWh) = 183.93 c/kWh
Block 2 (600.1 + kWh) = 253.83 c/kWh CT with an export
► Feed-in Tariff = 73.24 c/kWh
credit of 73c/kWh is
at the upper end of
Commercial & Industrial SSEG tariff: allowable credit
► Feed- in Tariff = 73.87 c/kWh rates approved by
NERSA.
*NB: All values are excl. VAT
A recent study by independat
NPO Sustainable Energy Africa
recommends a sensible
residential SSEG tariff:
• Fixed charge R200 - 400/month
• Feed-in tariff in line with avoided
purchasesSUMMARY OF SUPPLY SIDE
IPP Large Scale Programme
• Internal preparation for City REIPPP underway
• National REIPPP scale project, primarily wind and solar wheeled over Eskom's grid
IPP Small Scale Programme
- S33 tender under development (18 month process)
- Tender adjudication
IPP - PPAs signed subject to S34 determination/Court Case
Programme Introduction of a Wheeling Facility
- The City is implementing a program to enable third party renewable energy generators to
sell energy to City consumers using the City’s electricity
- Systems Testing phase
City rooftop and Ground mounted PV programme (less than 10MW)
• The City has set aside funding for a programme to increase RE generation owned by the
City (rooftop and groundmounted)
• Draft City Owned Generation Framework & Rules developed
• City wide O&M tender specs to be developed
Distributed • Supporting Waste to Energy generation(4 sites) and carbon work
Generation Residential, Commercial and Industrial SSEG program (less than 1MW)
Programme • Investigating innovative financing mechanisms for increased uptake of SSEG
• Installers awareness / compliance campaign
• Assisting with development of an easier online registration process
12Thank You
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