The energy sector is witnessing significant changes as the adoption of solar power gains momentum. A recent report highlights how independent power producers (IPPs) are helping to alleviate electricity supply issues, particularly during periods of load-shedding.
Scott Havemann, senior commercial manager at Fibon Energy, noted how around 13% of Eskom’s grid is now occupied by energy-wheeling IPPs. This practice is largely credited for the noticeable decrease in load-shedding occurrences across South Africa.
Havemann emphasized the potential growth of electricity wheeling, affirming the government's supportive stance but recognizing room for improvement. He stated, “We are currently sitting on about 13% of Eskom’s grid being taken by wheeled energy IPPs, and I think that's the reason why we’re not seeing a lot of the load-shedding we’re accustomed to.”
Electricity wheeling allows consumers to procure energy directly from IPPs, broadening their options beyond traditional utility providers. This system is especially advantageous for large businesses whose onsite solar arrays may not meet their entire energy needs.
One major advantage of this model is the potential for cost savings, with wheeling tariffs often reaching up to 50% less than traditional utility rates. SolarAfrica's analysis indicates businesses operating for eight hours can swap out 70% to 90% of their utility consumption with wheeled electricity.
Despite the beneficial aspects of energy wheeling, some experts believe other factors contribute to the recent respite from load-shedding. Lower energy consumption from the mining sector and increased rooftop solar capacity also play significant roles.
Kuben Naidoo, former deputy governor of the Reserve Bank, pointed out the mining sector's downturn has substantially reduced electricity demand. He remarked, “My personal view is half of the reason we don’t have load shedding is because the mining sector is in a deep recession.”
The rise of rooftop solar systems has also significantly decreased reliance on the national grid. This form of generation jumped from under 2,265 MW last year to almost 5,800 MW this year, showcasing rapid adoption.
Although the government and Eskom are making strides to stabilize the energy supply, many believe more work lies ahead. Eskom's improved Energy Availability Factor (EAF)—averaging 54.69% last year compared to 58.47% this year—reflects positive developments, but issues still loom.
Bheki Nxumalo, Eskom's head of generation, noted their approach focused on enhancing the coal-fired generation fleet rather than pursuing costly expansion projects. “If you look at the amount of money spent, this was cheaper.”
Meanwhile, convenience stores across the nation are also exploring solar energy adoption as they strive to meet rising energy demands. Allie Kelly, executive director of The Ray, shared insights at CSP's Outlook Leadership conference about the solar potential for businesses along highway right-of-ways.
Kelly painted an optimistic picture, noting electric vehicle sales are projected to surpass 11% of the market by the end of 2024. This surge signals growing demand for renewable energy sources within industries traditionally reliant on fossil fuels.
The Ray has partnered with state departments across the country to develop projects aimed at energy sustainability. Their right-of-way solar fields and pollinator gardens not only provide clean energy but also contribute to ecological diversity.
Kelly highlighted how convenience stores can leverage this initiative to create solar fields on government-owned land. These sites present low-cost energy development options, particularly with federal incentives aimed at making projects more affordable.
Notably, states often lack interest in charging fees for land utilized for solar projects, equipping businesses like c-stores with advantageous conditions. This presents “free land,” as Kelly puts it, for businesses to innovate and invest.
With energy prices rising sharply, having solar power can serve as insurance against outages during severe weather. “When you develop solar on the right of way... you tap onto energy,” explained Kelly.
Investing in solar not only cuts energy costs but could also generate additional revenue through energy sales back to the grid. This reshapes how businesses like convenience stores interact with their customers and communities by promoting clean energy initiatives.
Kelly urged business leaders to see this as both an environmental and economic opportunity. “This is an opportunity for you to make an investment immediately repaid at 50 cents on the dollar,” she said.
The momentum for solar power is palpable, with numerous sectors increasingly recognizing its advantages. It serves as both a practical response to the energy crisis and as part of the growing movement toward sustainable energy solutions.
Given the structures being put in place to support renewable energy, including IPPs and the rise of solar among businesses, the future appears bright. With proper execution and support, both large-scale and small operations stand to benefit substantially from the shift to solar energy.
With the focus on sustainability continuing to grow, communities are urged to capitalize on these changes. What’s clear is the call for action to embrace and innovate within the renewable energy sector is more relevant than ever.
