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REIPPPP reduces cost of renewable-energy technologies

MEGAWATT PARK Through the Ilanga solar PV project campaign, Eskom has installed photovoltaic panels at Megawatt Park power station

AYANDA NAKEDI Wind power tariffs have decreased significantly, with local-content targets for this technology having been reached in all the rounds, and increasing to almost 50% in the third round

27th June 2014

By: Pimani Baloyi

Creamer Media Writer

  

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Government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has been extremely successful in reducing the cost of solar, wind and concentrated solar power (CSP) technologies, says State-owned power utility Eskom renewables senior GM Ayanda Nakedi.

Nakedi tells Engineering News that Eskom is pleased with the progress of the programme and the contribution that some projects are already making to the national power grid.

“In each of the three REIPPPP rounds, the cost of solar power technology has gone down by almost a quarter of the initial price. Wind power tariffs have also decreased significantly, with local-content targets for this technology having been reached in all the rounds and increasing to almost 50% in the third round.

“CSP has also made its way to the generation mix, with a clear focus on peak generation,” she explains. 

The decreased costs also extend to parties outside the REIPPPP, states Nakedi, adding that this will encourage the use of alternative energy sources, as opposed to using electricity, in more homes and businesses.

The Department of Energy (DoE) set a target in 2011 of 3 725 MW to be generated from renewable energy by 2016. The programme has delivered
3 916 MW of electricity from 64 projects across the country to date, prompting the DoE to set a new target of 3 200 MW in December 2012.

The REIPPPP aims to encourage private-sector investment in wind, solar photovoltaic (PV), CSP, biomass and small hydropower technology energy sectors.

Renewable-Energy Trends
Eskom integrated demand management senior GM Andrew Etzinger says recent trends indicate that energy conservation in South Africa is focused on lighting and solar water heating sources.

“The focus has always been on Eskom’s slogan: Small actions together can make a big impact. The leading actions stemming from this slogan are turning off lights when they are not needed, no longer relying on stand-by electricity, turning off electrical water heaters during peak hours, installing solar water heaters and heat pumps, turning off air conditioners in off-peak hours and using devices that avoid parasitic consumptions from chargers and other electrical devices that always tend to be connected to the plugs,” he elaborates.

Etzinger highlights that, for small-scale renewable-energy users, trends indicate an increase in the use of PV panels to power lights, adding that “this is not new, but the developments in light-emitting diode technologies make this approach extremely attractive”.

Eskom Renewable-Energy Programmes
Etzinger tells Engineering News that Eskom has launched several awareness campaigns to inform communities of the benefits of saving energy and effectively using renewable energy when cooking, heating water and/or a living space and when using air conditioning and lighting.

“Research indicates high recognition and sound understanding of our awareness campaigns by 74% of respondents. A total of 81% of respondents implemented some of the savings conveyed by these campaigns, with the switching off of lights and geysers being the most popular action taken. However, conversion to energy efficient technology, such as compact fluorescent lights, and solar water heating awareness is still low at this stage,” he points out.

Eskom’s own renewable-energy programmes include the Ilanga solar PV campaign, implemented at Eskom’s technically feasible power stations, substations and offices, where the power utility is rolling out 150 MW of PV for self-consumption.

“This could potentially exceed 1 000 individual installations. The roll-out of the entire portfolio will take place over the next five years. So far, we have successfully completed five PV installations in the last two years, which equates to about 2 MWp of PV for self-consumption,” Nakedi explains.

The programme has been rolled out at Eskom’s Megawatt Park power station, in Sandton, Johannesburg; at Lethabo power station, in the Free State; and at Kendal power station, in Mpumalanga.

The projects have resulted in a steep learning curve and each project showed significant improvement in execution, states Nakedi, adding that “different technologies, configurations and procurement strategies were employed at the three stations, which will assist Eskom in developing the most optimal solution for future projects at different locations across the country”.

Eskom is developing a performance evaluation report from the projects to ascertain the performance levels and ratios of the each project. In addition, a comparative analysis is being performed to assist Eskom in improving its understanding of PV technologies and configurations.

“This improved knowledge will be applied to ensure that future projects compare favourably with the best practices globally, as well as the lowest levelised cost of electricity in the region,” Nakedi concludes.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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