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New 100MW threshold : The best megawatt remains the megawatt not used By Barry Bredenkamp As the country focuses on improved energy generation capacity , energy savings must not be forgotten !
The South African energy industry – and indeed the wider business community – is celebrating the recent , and very positive announcement by President Ramaphosa on the increased threshold for embedded electricity generation for private companies , up from just 1MW to 100MW . However , while companies start investigating their selfgeneration options , it is vital that we do not forget our impact on ‘ the other ( demand ) side of the meter ’.
The International Energy Agency still regards energy efficiency as the ' first fuel ', and we should strive to save every possible kWh before adding new generating capacity , whether it be from renewable sources or not . Companies must prioritise energy savings , not just self-generation .
While I agree that the new 100MW threshold is great news for the stability of supply and our economic potential , I would like to see every installation targeting a baseline load of 110MW . You might wonder why I would suggest this when the new threshold is 100MW . My take is that there is at least 10 % energy savings potential on the demand side of the meter at virtually all proposed installations that should be investigated and optimised , before adding additional supply-side capacity .
The more energy ( consumption ) we can avoid or save , the smaller the size of the load required to operate those enduse technologies . Therefore , we urge project developers not to lose focus on first exploring the energy efficiency potential , by setting an ‘ internal ’ target to save 10MW of electricity for every 100MW of renewable power generation capacity installed in this new and exciting journey in the South African energy landscape .
Businesses are now empowered to generate their own electricity with limited administrative bureaucracy . If companies
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New solutions are critical in South Africa ’ s demand for energy security considering primarily the ageing existing infrastructure and continual delays on new large plant completion , while on the other hand it will always be cheaper to save energy than to generate it .
can install and operate their own energy infrastructure to cater for their own needs , without having to apply for licences from the National Energy Regulator of South Africa ( NERSA ), why worry about energy savings ? Well , aside from the substantial financial investment required for selfgeneration installations , all new build projects come with an environmental cost . Even renewable and “ clean ” energy projects come with a carbon footprint . If you consider the manufacture and transport of every piece of equipment and component required for a solar farm , you can see how this might add up when companies across the country adopt their own generation plants .
Added to that , at the most basic , it is cheaper to save energy than to generate it . Building new generation capacity is a big investment , regardless of the energy source . While it will be exciting to see the small-scale embedded generation projects popping up in the coming months and years , there are additional cost and environmental savings to be gained by including energy efficiency in the overall mix . Regardless of how and where power is generated , someone still pays for the megawatt consumed , whereas the avoided megawatt is ‘ free ’. In my opinion , the best megawatt is still definitely the megawatt not used .
Alternative energy solutions are understandably a priority in South Africa , with our ageing electrical infrastructure and threatened energy security . Giving companies the opportunity to generate their own power is sure to assist with our country ’ s economic recovery plan . However , I implore these companies to not forget about the other side of the ‘ green ’ coin . Energy efficiency should still be the first step towards energy security !
ABOUT THE AUTHOR Barry Bredenkamp is the general manager for Energy Efficiency & Corporate Communications at the South African National Energy Development Institute . CLA
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