Wind body questions unjustified constraints in power-mix base case

21st April 2017

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

     

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The South African Wind Energy Association (Sawea) has rejected the current base case scenario used for the 2016 updated Integrated Resource Plan (IRP) Update for Electricity, calling for the scenario to be remodelled as a “least-cost energy plan” and re-issued for consultation.

The public participation period for the update to the IRP closed on March 31. Following a countrywide public consultation roadshow, expectations were that the plans would be finalised by August or September, Engineering News reported last month.

“The current update includes unjustified artificial constraints on the connection rates for wind and solar photovoltaic. A least-cost base case is an essential starting point for the IRP process and government has an obligation to select the most affordable electricity supply options available,” explains Sawea CEO Brenda Martin.

She stresses that the South African economy and electricity consumers have “a right to see the full picture” in terms of future potential for energy supply and associated financial considerations.

“The cost implications of any policy decision to depart from the least-cost base case should be explained, quantified and justified to ensure rational and transparent trusted policymaking,” Martin further argues.

In its submission to the IRP2016 update, the Council for Scientific and Industrial Research claims that, without artificial constraints, a starkly different base case emerges. This offers a significantly lower total cost to the economy, a far lower level of carbon emissions, and a substantially lower demand for raw water, Sawea states.

Further, grid networks can be expanded to address capacity expansion and should not be considered a fundamental issue. While Sawea’s submission acknowledges that grid constraints may create temporary obstacles, it requests that these constraints be determined through independent studies and results shared transparently, rather than by State-owned power utility Eskom, which has a conflict of interest, the association suggests.

“Sawea’s submission asserts that each of these considerations is sufficient justification to re-run and re-issue the base case. This is not just a sector-specific issue – the people of South Africa deserve to have the most cost-effective, accessible electricity system,” Martin says.


Sawea further highlights that the sustainability of renewable-energy project investments and the ability of industry to make long-term commitments of growth to job creation and socioeconomic development requires continuity of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). This is, in turn, guided by new-generation capacity as stated in the IRP and declared through Ministerial declarations, the association noted in its full consultation submission for the Updated IRP2016.

“It is . . . important that the IRP update aligns itself clearly with the country’s stated developmental pathway. . . . a pipeline of further investments is waiting in the wings, for the IRP update to be completed, as well as the general continuity of the REIPPPP. “Policy and implementation are, therefore, imperative at this point in the country’s economic context,” Sawea states.

The association further suggests that, “with policy certainty, value chain growth effects can further accelerate job growth”.

The REIPPPP has procured 3.36 GW of wind energy and if the programme proceeds without further delay, this allocation could be achieved yearly, according to Sawea.

Currently, R91.1-billion is committed to various development initiatives under the REIPPPP. Since 2013, the construction and operation of renewable-energy projects has created 111 835 job years for South African citizens.

To date, more than R30-billion has been spent on local content and a further R65.7-billion is expected to be spent by projects that have yet to start construction. Twelve new industrial facilities have also been established as a direct result of the programme.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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