ALTERNATIVE ELECTRICITY ALTERNATIVE ELECTRICITY DISTRIBUTION SOLUTIONSDISTRIBUTION SOLUTIONS

NORTH WEST PROVINCE

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Discussion Discussion

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• Due to South Africa’s vast coal reserves used in the manufacturing of fuel (Sasol) and the generation of electricity (Coal fired electricity plants – ESKOM), we have become the world’s third highest producer of carbon emissions.

• There is mounting international pressure to ensure the reduction of carbon emissions in order to curb the adverse effects these emissions have on the environment / climate.

• Renewable energy solutions have advanced over the past several decades and contributing positively to energy and electricity distribution.

• The Solar, Wind and Biomass energy must be expanded and the power transmission and storage systems to be integrated with Eskom Grid.

• There is a need for commitment by NERSA, Eskom and the leadership of South Africa to commit to clean energy developement and distribution

Discussion Discussion

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• There must be a target set on energy solutions from , solar, wind and Biomass and looking at South Africa and the province, the intervention can be sustainable both for economic growth and empowerment of communities

• This create an opportunity to link with the education system and create skills to manage and maintain the storage(Plants) established

• Wind Energy is the fastest growing energy source globally and most of the developed countries generate electricity from wind, e.g Germany and Spain. This require research and development in South Africa and government to commit to a target on electricity from wind.

Discussion Discussion

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• There is a mismactch in the production and consumption of power as Households, buildings and commercial business consume at kw and power generated at MW.

• The Solar energy is also growing and the province have the potential to produce solar energy and this can benefit most of the rural communities in terms of access to electricity and development

• Biomass Energy is also growing and can be use for electricity, heating and transportation fuel needs. This will require air quality and land management issues to be addressed to achieve in full potential.

• Apart from obvious financial benefits, the nature of alternative electricity distribution solution will ensure that municipalities are committed to sustainable community development. It will aslo address environmental concerns.

StrengthStrength

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• Greenfield projects • A financially viable community project that will ensure 500

– 1000 jobs over the long term, thereby providing truly sustainable upliftment within the local community

• Guaranteed uptake agreements for all electricity & BioChar produced

• Revenue available from Carbon Credits

WeaknesesWeakneses

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• Potential quantification of available Wind, Solar Biomass still needs to be confirmed

• Potential EIA needed before operations may commence – potential extended delay to commencement of project due to red tape

OpportunitiesOpportunities

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• High entry barriers due to Licensing & Capital requirements as well as in-house developed propriety knowledge

• Due to modular design, multiple plants can be established on site as well as throughout the province

• Some areas due to geographical location can sustain, solar and wind energy

• Readily available raw materials at very little / no cost / subsidised cost

• Potential for other forms / sources of Biomass to be identified & used in this process (Landfill sites / Forestry operations / Mining Activities)

ThreatsThreats

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• Market price for Carbon Credits may fluctuate due to Supply & Demand forces in the Global Market Place

• Potential delays in obtaining permission from Eskom to supply electricity into the national grid (may not be applicable given the end user is a municipality.

Recommendation Recommendation

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• There is a need to increase R &D funding for alternative energy distribution solutions. There is a need to provide funding for the wind, solar and biomass opportunities. There is a need to transform the energy and electricity sector to be a pillar of the green economy

• NERSA to provide Tax incentives for Companies that develop and use alternative energy distribution solutions. This will have a greater effect on the energy and electricity system of the country and minimise health and environmental risks

• Set up standards and targets for research, development and market growth for energy and electricity from solar, wind, biomass and landfill gas

• Policy development and enforcements on standards • Ensure that alternative electricity distribution empower entrepreneurs

and local community in terms of skills and employment