Grassroots Grassroots - Vol 19 No 4 | Page 23

NEWS Solar and wind energy could set South Africa on track for the world’s cheapest electricity Reprinted From: http://bit.ly/2KurjRg Dom Wills I t’s a no-brainer — a move to renewable energy will not only boost the economy and create jobs, it is also the path to pro- viding South Africa with potentially the cheapest electricity in the world given our natural wind and solar resources. Energy was never this difficult. Energy came from coal in the ground, burnt somewhere, put in a turbine, wires were connected, and cheap energy flowed for many years. However, this was never going to last long, because the amount of coal that forms in a year was being burnt in a minute. The world has now realised that this is unsustainable behaviour, and we’re faced with a set of future alternatives: hydro, nuclear, wind, solar, biomass, coal — each with a sidecar of complexity, and we need to make some decisions. Ten years ago, the general public didn’t know what a kilowatt-hour (kWh) was, what it cost, where it came from; they didn’t know how many litres of water were spent in a flush or shower, how many dams we had or how many megalitres we use per day. That’s changed. We’re more knowledgeable now. Why? Because we’ve felt the effects. Electricity is expensive and we’ve even run out of it (many times). We’ve been on wa- ter restrictions for years, and Cape Town came close to being the first major city in the world to run out. Authorities are having to find alternative methods to abstract wa- ter, domestically and regionally. Unemploy- ment is a major contributor to poverty and addiction, and we witness frequent protests against injustice. Knowledge, however, can help us to solve problems. If the problem at hand is to solve the electricity crisis, we need deep under- standing to find the least cost kWh and invest in the technologies that will deliver that. The “least cost” does not only refer to the financial cost, but also the environmen- tal and social cost. The industry has been poor at recognising the entrenchment of communities reliant on the electricity sector and ensuring that reform is done fairly. In the long wait for the IRP 2019 to be ga- zetted, many people have missed a recent study published in the international journal, ScienceDirect, which took a bold step for- Grassroots Vol 19 No 4 ward in modelling a best electricity policy scenario based on cost, water and employ- ment. The strength of this peer-reviewed article is that it is founded on solid scientific data. And while a cold approach to kWhs might not reflect every sensitivity in our country, the study did pay attention to the largest social item on our agenda: jobs. The paper, titled Pathway towards achiev- ing 100% renewable electricity by 2050 for South Africa, modelled the costs of renew- able and non-renewable electricity genera- tion pathways in South Africa, taking into consideration South Africa’s current energy requirements, the expected population growth, and costs of electricity. The paper highlighted the possible scenarios for South Africa’s electricity future — whether we stay on the Current Policy Scenario, highly reli- ant on coal — or go aggressively into re- newable energy (what the authors term the “Best Policy Scenario”). Their suggested “Best Policy Scenario” (BPS) includes 71% of overall electricity pro- duction coming from solar PV and 22% by wind by 2050. In addition to this, storage technologies, transmission grids and gas power plants would be utilised to provide the elements of consistency for a stable electricity supply. The BPS is 25% cheaper than the current policy scenario, and this doesn’t take into account the additional benefits of electric- ity being virtually 100% renewable, such as the reduction in the detrimental effects of carbon and other poisonous gases in Earth’s atmosphere, the distributed nature of the employment, and the lower risk in the tech- nologies. If you put a cost saving to these benefits, particularly the greenhouse gas emissions, then the 100% renewables case becomes more than 50% cheaper than the Current Policy Scenario. In addition, the cost reduc- tions in Levelised Cost of Electricity (LCOE) are not the only benefit of this pathway. In addition to their findings on LCOE, the au- thors assert that the low-carbon pathway will also decrease water consumption by 87% by 2030, and by 99% by 2050, compared to the baseline — which would remain in the Current Policy Scenario. November 2019 From an employment perspective, the re- newables-rich BPS will grow the jobs creat- ed by the energy sector dramatically, almost doubling to 408,000 by 2035 and tapering off to 278,000 by 2050 as construction jobs stabilise. In the Current Policy Scenario, fewer jobs are created, never rising higher than the 200,000 mark, and decreasing to 184,000 jobs in 2050. What about coal and nuclear? The arguments to retain a coal-heavy elec- tricity supply are becoming thinner, par- ticularly given the overwhelming evidence toward coal’s contribution to greenhouse gas emissions that cause climate change and the fact that South Africa is one of the world’s worst emitters of CO 2 , clocking in just behind huge economies like China and the US. The authors assert that coal and nuclear should be phased out in the BPS, adding that new investments in coal and nu- clear could be at risk of becoming stranded assets as more banks tend to opt out of in- vesting in non-renewable technologies. On nuclear energy, the authors assert that, “results for the fully renewable end-point scenarios indicate that there is no need for high cost and high-risk nuclear energy in the future South African electricity mix”. From the study, it is clear that South Africa has an important policy decision to make: one that will steer its future toward low-cost, low-carbon electricity that will create jobs and reduce freshwater consumption. It is an option that would be to the benefit of all South Africans — and the world at large. The “side” benefit is that in this scenario, due to our significant wind and solar re- sources, we’d probably have the cheapest electricity in the world, adding a strong el- ement of competitiveness to our economy, which we’re also trying to grow. Now more than ever, we need to do the right thing. It’s clear as day. Wills writes in his personal capacity, but as the CEO of solar PV company SOLA, it should be acknowledged that the journal in which the study appeared was titled Solar Energy. The scientific models used were not biased towards solar and included various other possible scenarios and forms of en- ergy. 22