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Energy institute urges urgent overhaul of ‘relic’ distribution grid

SMART DISTRIBUTION
Providing funds to introduce smart grid technologies in the absence of a clearly defined strategy will not result in the desired outcome

SMART DISTRIBUTION Providing funds to introduce smart grid technologies in the absence of a clearly defined strategy will not result in the desired outcome

17th April 2015

By: Schalk Burger

Creamer Media Senior Deputy Editor

  

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South Africa’s distribution grid is a twentieth-century relic and must be changed to serve the country’s modern electricity needs, says South African National Energy Development Institute (Sanedi) Smart Grid Programme manager Dr Minnesh Bipath.

“What we are looking for in the industry is bold leadership to drive the change,” he states, citing the now defunct Electricity Distribution Industry Holdings (EDI) and Regional Electricity Distributors as examples of consecutive initiatives that have failed to produce the desired results over the past decade.

“We do not lack the technology and, as an enabler of change, the technology is there. “We must reinvigorate the sector with a clear end goal in mind of providing a robust system that can meet the needs of citizens, commerce and industry of the future.”

These problems can be addressed through decisive leadership and closing the gaps in policy to realise a smart grid vision, adds Bipath.

The EDI initiative, which was terminated in 2008, provided information about the maintenance and refurbishment backlog of the grid, which was R27-billion at the time. Current estimates indicate that this backlog is R60-billion to R70-billion.

These structural deficits are worsened by most municipalities not ever having been empowered to manage electricity distribution effectively.

“Most of these municipalities are apartheid-era structures that were designed to provide limited management of distribution to a few privileged consumers. However, the increase in connections to the grid since democracy has not been matched by an increase in resources for these municipalities. Their capabilities and capacity were stretched to the point where they failed,” explains Bipath.

Metropolitan municipalities have good access to skills and support and are delivering reasonable distribution management and services to customers. However, rural municipalities do not have access to these support structures, with an ageing workforce and vacancy rates of up to 50%, in some cases, rendering the management of distribution ineffective.

Further, companies in the private sector not paying for electricity compound the problems of revenue collection and maintenance funds. For example, a sample study in a rural municipality found that 43 out of 170 private-sector companies had bypassed their meters, effectively stealing electricity, Bipath notes.

Private-sector companies that bypass municipal metering systems lead to higher tariffs, augment service delivery problems and remove the ability to fund maintenance and upgrades of distribution grids.

“Questions continue regarding electricity revenue cross-subsidising other municipal services, which removes the ability to fund prudent maintenance programmes. “This is only part of the issue, electricity theft removes revenue from these municipalities and negatively affects the ability to maintain distribution and maintenance standards.”

However, municipalities must simultaneously improve their operational efficiencies and customer service levels to provide the levels of service typically required for the twenty-first century, he says.

Although South Africa has the technology to enable change, municipalities risk having technology and equipment foisted on them, owing to a lack of expertise, policy clarity and relevant standards, he adds.

Bipath therefore believes that, under the current scenario, providing funds to introduce technologies in the absence of a clearly defined strategy will not result in the desired outcome.

Smart grid systems are required to enable municipalities to manage modern distribution requirements effectively, as the systems will also improve the collection of data, the management of users and revenue collection.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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