Oct 16, 2012
Overhauled solar-geyser incentive to focus on industrial spin-offsBack
Building|Eskom|Industrial|Installation|Public Enterprises|SECURITY|Solar|Water|Contracting|Electricity Consumer|Electricity Tariffs|Energy|Maintenance|Manufacturing|Manufacturing Industry|Products|Andrew Etzinger|Power
© Reuse this
Currently, the deployment is incentivised through a rebate programme, funded from electricity tariffs. This rebate support has facilitated the deployment of 285 000 SWHs, which Eskom claims have delivered power savings equivalent to 46 MW.
But the utility’s Andrew Etzinger reports that changes will be made when the rebate expires at the end of the year.
The objective of installing one-million such geysers by 2014 remains intact. However, the redesigned programme will seek to integrate government’s economic objectives of building a larger-scale domestic SWH manufacturing industry, while also supporting smaller installation and maintenance companies.
A total of R4.7-billion will need to be secured from the National Treasury to meet the target and Etzinger has indicated that the first R1-billion should be transferred to Eskom “shortly”, in line with an agreement between the utility and the Department of Energy (DoE).
“The reason for the change is driven by a new contracting model that places greater emphasis on the local production of SWHs,” he explains, adding that the new approach is supported not only by the DoE, but also the Departments of Trade and Industry and Public Enterprises.
Under the proposed arrangement, Eskom will procure the units from domestic manufacturers and offer these on a “free-issue basis” to installers.
Government and Eskom say the model should provide demand security for manufacturers, while transferring the financial burden from small and medium-sized installers to Eskom.
Tenders have been issued for the supply of the SWHs and Eskom is in the process of evaluating the submissions received. “We will be communicating back to the market soon,” Etzinger says.
A range of products have been developed in support of further business, industrial and residential power savings and these will be “aggressively driven” over the coming months and years.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Renewable Energy News
Article contains comments
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
Additive manufacturing, better known as 3D printing, has the potential to completely change the relationships between individual consumers, professional designers and manufacturers. So argued Loughborough University Reader in Computer Aided Product Design Dr Ian...
Airbus Defence and Space: Military Aircraft has highlighted that its A330 Multirole Tanker Transport (MRTT) has significant commonalities with the Airbus A330-200 commercial airliner, upon which it is based. The South African Air Force (SAAF) once operated a fleet of...
Financial services provider Nedbank launched the second edition of its Carbon Footprinting Guide earlier this month, which is aimed at demystifying carbon footprint approaches and help readers grasp the main concepts of carbon measuring, monitoring, reporting and...
This year marks the thirtieth anniversary of Caterpillar’s first backhoe loader. This also coincides with the worldwide release of its latest-generation F2 series backhoe loader, which was launched at supply chain services company Barloworld Logistics’ Big Dig Day in...
A shortage of software engineers is leading to fewer information technology (IT) projects in private and public sector organisations. This also places a dampener on the economy, as IT is an integral part of business and civil service, says University of Witwatersrand...