TOWARDS AN ENERGY SECURE AND CARBON NEUTRAL CAPE TOWN - Resilient Cities Network
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#03: Transitioning to Sustainable Energy
Thursday, 25 February 2021| 07.00 AM EST – 12.00PM GMT – 08.00 PM SIN/KUL time
TOWARDS AN ENERGY
SECURE AND CARBON
NEUTRAL CAPE TOWN
LEILA MAHOMED WEIDEMAN
DIRECTOR SUSTAINABLE ENERGY MARKETS
Note the presentations are organized for the purpose of knowledge sharing and do not necessarily represent the views of the o rganizers
1
CONTEXT OF CAPE TOWN
2
CITY OF CAPE TOWN SUPPLY AREA – GEOGRAPHIC LOCATION
City of Cape Town
Currently purchases 99%+ of its electricity from Eskom for onward sale to
consumers in the City’s grid.
44 Energy Intake points
10 TWh consumption per year
(10 x 1000 000 MWh)
1650 MW combined maximum demand
Eskom supplies approximately 25% of the metro’s electricity directly to City
ratepayers (grey areas)
THE DISTRIBUTION OF
CCT RESIDENTIAL ELEC.
DEMAND OVER TIME
3
WHY THE URGENCY?
ENERGY INSECURITY AND
HIGH CARBON FOOTPRINT
• National generation fleet owned and
operated by Eskom is increasingly
unreliable and expensive
• For a variety of reasons national
demand regularly exceeds national
supply
• Cape Town and the rest of the country
are forced to shed load on a rotational
basis
• National grid electricity cost is set to
rise well above inflation to cover the
cost of replacing power stations at end
of life
• Fossil fuel (primarily coal) fired
generation will continue to be a
significant complement in the national
energy mix
4
ENERGY SECURE - CARBON NEUTRAL FUTURE FOR CAPE TOWN
PLANNING AND RESEARCH:
Energy Planning; Carbon Neutral Modelling & Planning; Feasibility Studies; Data Management; Policy Dev
Price diversity (lower
cost of bulk electricity
1. Large Scale I PP Enhanced Embedded purchases)
Procurement 2. Small Scale I PP
Generation
procurement Move towards
3. 1-10MW City- increased City
Roll out of I ndependent Owned Generation resiliency wrt energy
Power Producers (I PPs) 4.
GETTING TO NET ZERO CARBON IN THE CITY OF CAPE TOWN
Cape Town’s climate change vision is to become a city
• Climate Change Strategy that is climate resilient, resource efficient and carbon
• Climate Change Action Plan
neutral, in order to enable inclusive economic and social
• Carbon Neutral 2050 Goal
development and environmental sustainability.
LARGE SCALE PROCUREMENT FROM IPPS
In 2018 after several attempts since 2015 to engage
national government to provide a S34 Determination To meet energy diversification
(an allocation under the IRP) ito the Electricity objectives, renewable energy targets
Regulation Act, the City took The National Minister of
and our carbon neutral by 2050
Energy and the National Energy Regulator to court.
commitment would require
The IPP court case (heard on the 11/12 May 2020) was significant purchasing and
intended to pave the way for the purchase of at least importation of renewable
300 MW of power from IPPs by the City (and open the
electricity from Independent
doors for other SA municipalities).
Power Producers (IPPs) outside of
On the 08th of May 2020 the Ministry released draft City boundaries.
regulations enabling municipalities to purchase
directly from IPPs. The new generation regulations
came into effect on 16 October 2020.
The requirements linked to this new regulation to
undertake a RE IPP procurement programme at the
local level is highly challenging and complex.
National procedures to support this new regulation is
still under development by the National Ministry and
Regulator
• Collate Bid
• Finalise
POTENTIAL LARGE SCALE IPP
Schedule 9
agreements PROGRAMME TIMELINE • Complete
• Non-binding permitting
agreements PREPATORY /licensing The process
Go ahead
• Bid bonds
received PROCESS
• Due Diligence plan indicates
Legal work Purchase Plan &
Year 2 Implementation Agreement
Power Purchase Agreements
• Agree
Financing and
that from a
Bid Structure
Conditions
equity terms positive
City internal process RFI developed
Precedent
• Binding offers confirmation of
• PPA signed
MREIPPP/NT??? Legal
Signature
Internal MFMA
our
Commercial
Framework
Framework
Terms of Reference S33 Council ‘determination
Grid Access
IPP Budgeting
and Technical Specifications Decision Year 5-6
CLEAN
’ to first power
MFMA
Requirements
Wheeling Socio-Economic
Requirements
ENERGY
Ongoing…
could take up
Communication Year 3 BID to 5 years
Year 1 INTERNAL
PROCESS
(more if doing
Tender Evaluation
Tender Award
a PPP).
Tender Advertisement Bid
Year 4
Challenges: EXECUTE
Financial Close
IPP Tenders regulations that govern how municipalities
National Government has not yet published the procurement
Ensure intention in IDP can buy electricity from IPPs. Construction,
Commissioning &
and linked budget
Funding for renewable energy and carbon mitigation interventions compete with other developmental Connect
Determination
priorities in the City fiscus.
approved
First Power
Official Programme COVID has had a significant impact on funding options going forward
kickoff Continuous process,
Funding/technical support needed for feasibility studies to design specifications of appropriate systems. next Bid preparation
Funding/technical support needed to identify innovative financial mechanisms for implementation.
EMBEDDED IPP PROCUREMENT
The City’s Small Scale procurement programme :
1-10MW Renewable Energy Projects developed by IPPS and located in the City network
Totaling 100MWs
An RFP is under development and will be advertised shortly by the City. A preferred bidder status will be granted to bidders as a
first stage where they will be given a grid connection cost and then a final bid will be negotiated which will develop into a n SLA
and PPA over 20 – 25-year period.
A Pre-feasibility study has been completed where the city will be divided into regions based on grid -capacity. This will form part
the RFP specification.
SOLAR PV & WASTE TO ENERGY DEVELOPMENT IN THE CITY 09
The City aims to develop, build, own and operate several
(3-7) Solar PV facilities of between 5 and 10MWp each
within the municipal boundaries with an aim of having a Atlantis
total of 50MWp installed by 2030. Buffer
Zone – ERF
2756RE
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.
Development expected to cover a land area of 10 to 20 Hectares;
4 Waste-to-Energy generation sites are under Expected installation size of 7 – 10 MWp dependent on final feasibility
assessment and development and form part of a designs;
Cleaner Development Mechanism Programme. Expected to generate enough clean electricity to power the equivalent of
4000 low to middle income households every year;
The buffer region between Atlantis Industrial and 50 jobs expected to be created during construction phase of the project;
Residential zones has been identified as a feasible Increased security presence in vicinity hoped to result in decrease in rates
site for one of the first 10MW PV installations. of crime.
Tender awarded for EIA and Geotech assessmentELECTRICITY SERVICES HEAD ROOFTOP SOLAR ON CITY
OFFICE (BLOEMHOF)
BUILDINGS
Description of Three separate PV
PV System systems installed
on the main office
building, carports
and the stores
building.
Office building and
carports first
installed in 2014
and the stores
rooftop PV only
added in late
2018.
Installed 260 kWp GALLOWS HILL TRAFFIC
DEPARTMENT (GREEN
Capacity
POINT) 10KWP
Construction Staggered
Period
Rooftop PV
Commissioning First installation
Date was on office
building and
carports
completed in 2014
Total Energy 1, 823 MWh
Generated Since
Installation*
Estimated 1 805 tonnes
ROYAL ASCOT ADMIN
Avoided CO2 BUILDING (MILNERTON)
20KWP OMNI FORUM MUNICIPAL
Emissions**
BUILDING (KUILSRIVER)
11 60KWPWHEELING
Wheeling is not about electrons 07
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 SAP integration
CITY/DISTRUBUTOR
ESKOM/
GENERATOR
THIRD PARTY SUPPLIER (RETAIL)COCT IS A LEADER IN SSEG UPTAKE IN SOUTH AFRICA
SSEG REGULATIONS
1st municipality to develop
WHAT DOES THE CITY OF CAPE TOWN ALLOW?
SSEG guidelines in SA
Capacity: 1 MW or less
BI-DIRECTIONAL METERING
Note: 1 000 kVA = 1 MVA = 1 MW (for solar PV systems)
Grid allows consumers to both
import & export electricity Generation: Solar PV and small wind turbines
AUTOMATED BILLING Grid-tied: Connected to the City’s electricity
grid (feed-in or reverse flow blocking)
Billing system allows customers
OR
to purchase & sell electricity
Off-grid: physically disconnected from the grid
SSEG TARIFFS (i.e. no connection to electricity grid at all)
City created a SSEG tariff to
credit consumers for excess
Consumption: Supplies ‘a single customer’ – can be
generation
residential, commercial or industrial & must be a net
consumer over a rolling 12-month period
i Providing easy-to-use information and guidance booklets
and videos to installers and residents
Moving to an online registration process
Exploring innovative financing options (e.g. the PACE Model)ENERGY EFFICIENCY IN MUNICIPAL OPERATIONS
The City consumes 4% of all
electricity used in Cape Town. As
such, it is committed to improving
the management of energy use in
all its municipal operations with 34% of street
563 kWp lights 155 staff trained
the aim of improving resource
rooftop solar retrofitted on SmartFacility
efficiency, reducing its carbon
footprint and saving money.
Between 2009/10 to 2019/20, this
initiative saved over 231 GWh of 60 ±847
buildings ALL traffic lights AMRs
electricity, which translates to
retrofitted retrofitted installed
avoided emissions of 229 035
tCO2e with a saving of R300
million.
Key achievements
14REACHING OUT TO OUR RESIDENTS TO CO-BUILD OUR RE-IMAGINED
ENERGY FUTURE
The festival aims to spark conversations on climate action, energy efficiency, solar
and wind power, water and waste efficiency, smart transport and sustainable living.
This is happening through various sub-events such as:
✓ Watts In the Pot? Cooking Competition
✓ Green Maker Mania
✓ My Clean Green Home
✓ Smart City Kids
✓ Future Energy Conversations
www.capetownfutureenergyfestival.co.za/
✓Smart Living Handbook
A series of fun, family friendly virtual event experiences designed to ✓Smart Cooking and Home Safety Guide
include you in your city’s future energy story. Join the movement ✓Smart Office Handbook
towards a safer, more resilient and sustainable future. ✓Resource Efficiency for Development
15BUILDING PARTNERSHIPS AND OPPORTUNITIES WITH THE
COMMERCIAL SECTOR
Promotes resource efficiency in commercial
buildings and operations.
Forum members are owners and managers of
commercial buildings, energy-efficiency-related
service providers, policymakers and other
stakeholders who share practical knowledge and
support.
Recently, the focus has been on disruptive
technologies in the energy sector.
16INNOVATIVE SUSTAINABLE ENERGY SOLUTIONS PROJECT SMART GEYSER
In 2019, we embarked on a Request for Information (RFI) initiative to solicit the A pilot project to convert household geysers
industry for ideas pertaining to innovative sustainable energy solutions. A total of into intelligent virtual batteries to reduce and
shift peak electricity demand
123 submissions were received across the following categories:
Energy trading/micro-grids/demand side management/storage; The aim is to offer smarter, cleaner and more
reliable energy to our residents and strengthen
Energy efficiency and or renewable energy; our electricity system
Smart metering/smart grids/smart city/Internet of Things; A collaboration between GiZ, City of Cape Town
Waste to energy/refuse-derived fuel; (SEM, Water & Sanitation and Facilities
Management) and Plentify:
Alternate transport/biofuel/electric vehicles;
100 HotBots installed in City-own houses
Behavioural change;
1 year pilot to develop business case for rollout and
Biomass; and identify and solve technical and operational
challenges
Other.
The top five ideas were identified through an evaluation process and are
currently being considered by SEM for possible implementation over the next
three years.
PV POWERED PUBLIC EV
CHARGING STATIONS PILOT
The City is actively preparing
for the uptake of electric
vehicles and the impact it will Bellville Civic Centre: Launched 2
have on the grid. December 2020 (UNIDO Funded) 17LOW INCOME ENERGY SERVICES
Solar Water Heating (SWH): Previous installations include 2300 SWHs in Kuyasa (grant
funding from the Department of Environmental Affairs NSWH Social Programme), and
1500 SWHs in Joe Slovo (Danida Urban Environmental Management Programme funding)
between 2008 and 2010.
Ceilings Retrofit Program (2008-2017): The ceiling retrofit project in Cape Town has
included to date the retrofit of 240 homes in Mamre, 2,300 homes in Kuyasa, and 8,001
homes in various areas in Gordons Bay, Macassar, Wesbank, Sir Lowry’s Pass Village and
Chris Nissan Village. A larger multi-community rollout will be implemented when funding
is established.
Solar lighting kits and wonderbags: In 2018, the City distributed 380 solar kits (each kit
including three lights and a cell phone charging facility) and wonderbags to low-income
households in four areas (Haasendal, Goliath, Gxagxa, Dassenberg).
Knowledge Sharing: A LINES task team comprising of NGOs, academics and practitioners
was hosted by the LINES team between 2014 and 2018 as a platform to share knowledge
and promote collaboration in this field of work.
Research: various studies over the last 3 years to understand electricity consumption in
low income households, how to optimise the effectiveness of electricity services to these
houses and financial modelling and risk and cost-benefit analysis of various scenarios.
These form the basis of work going forward.
18Our Departmental Mission/Purpose
To enhance the dignity and resilience of our
citizens and transform our city by pioneering a
new low-carbon energy future
19SPEAKER SERIES
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