Eskom

South Africa's power blackouts: solutions lie in solar farms and battery storage at scale, and an end to state monopoly

Retrieved on: 
Friday, June 2, 2023

It has raised input costs for producers and retailers, and has triggered a new round of inflation and interest rate increases.

Key Points: 
  • It has raised input costs for producers and retailers, and has triggered a new round of inflation and interest rate increases.
  • Any solution will obviously incur cost because it will require the adoption of new technologies, such as large-scale grid-connected solar farms that are linked to battery energy storage.
  • A solar farm consisting of 50 MW of photovoltaic panels with 240 MWh of storage capacity will cost R2.6 billion.
  • I argue that South Africa can solve much of its energy crisis by building new facilities consisting of battery storage with photovoltaic panels.

Reforms to the energy market

    • A market operator is an energy “stock exchange”.
    • It facilitates contracts between the energy producers, the transmission system and the distributors.
    • The UK, Canada, the US and many countries in the European Union have undertaken market reforms like this, with positive outcomes.

Blackouts have changed supply and demand

    • On the supply side, customers are increasingly using alternative energy sources.
    • Consumers who require stable energy supply have made alternative plans, in most cases shifting to the use of diesel generators.
    • On the demand side, the blackouts have led to shifts in the use of grid electricity at a different time of the day/night cycle.

The costs of small-scale solutions

    • At current interest rates, and assuming an average energy consumption of 15kWh per day and an Eskom rate of R2.75 per kWh, the net cost will be R6.10 per kWh.
    • Back-up power from an 8kVA diesel generator, using the same set of assumptions, will cost about R5.20 per kWh, including diesel and capital charges.
    • The installation of 1.4GW of battery capacity nationally confirms that there is already a market for the purchase of energy at higher cost.

The costs of large-scale solar with batteries

    • Customers could pay different rates depending on the time of day when they used electricity.
    • It concluded that the grid would need an installed photovoltaic capacity of 18GW, coupled with a storage system rated at 3.7GW/10.4 GWh.
    • The facility would pay for itself if a time-of-use tariff of R3.50 per kWh, almost double the present tariff excluding network charges, could be levied.

A three-step plan

    • The analysis suggests that it would be possible to solve the peak power problem in three steps.
    • Firstly, unbundle Eskom and establish the market operator, secondly use the bail-out funds to build connection capacity, and thirdly, use the market operator to build large-scale photovoltaic/battery capacity.

Remembering South Africa's "Grand Geek" Barry Dwolatzky - engineer and programming pioneer

Retrieved on: 
Thursday, June 1, 2023

To some of his former students, Professor Barry Dwolatzky was the “Grand Geek” – a name of which he was very proud.

Key Points: 
  • To some of his former students, Professor Barry Dwolatzky was the “Grand Geek” – a name of which he was very proud.
  • But Barry, who passed away in Johannesburg, South Africa on 16 May 2023, was much more than a computer geek.
  • He was also a leader and a visionary in the field of software engineering in South Africa.

A pioneer in programming

    • I first met Barry in 1989 when he returned to South Africa as a senior lecturer in the School of Electrical Engineering at Wits.
    • When he joined the School, there was only one programming course, Engineering Applied Computing, taught to second-year electrical, civil and mechanical engineering students.
    • Barry identified the growing importance of programming and information technology in engineering fields before anyone else in South Africa really had.
    • Today, the School of Electrical & Information Engineering’s curriculum contains two second-year programming courses and a third-year course that is compulsory for all electrical and information engineering students.

Software to drive development

    • At that time, Barry started working on a software programme that would assist engineers in planning the electrification of townships, historically black urban residential areas.
    • A number of postgraduate students under his supervision worked on aspects of this software.
    • It was the work he did through the centre that established him as an important thought leader in the software and IT space.

Innovation champion

    • He raised funding and transformed the rundown buildings into the innovation hub that is today one of the university’s flagship projects.
    • Even after retiring, Barry remained committed to and driven by the idea of innovation.
    • He worked alongside Wits University’s deputy vice-chancellor, Professor Lynn Morris, to establish the Wits Innovation Centre.

Farmers in South Africa face power cuts and a weak rand - but a number of factors are working in their favour too

Retrieved on: 
Tuesday, May 9, 2023

Preparation of the land for winter crops begins in April, which is also the same time harvesting of the summer crops begins.

Key Points: 
  • Preparation of the land for winter crops begins in April, which is also the same time harvesting of the summer crops begins.
  • Farmers in the Western and Northern Cape, Free State, Limpopo and other winter crop growing regions are making arrangements for growing winter wheat, canola, barley and oats.
  • This year, the outlook for winter crops is clouded by a difficult operating environment, especially the areas that are under irrigation.

Headwinds

    • South Africa’s agriculture has never faced a period of power cuts as severe as the current ones.
    • For example, recent work by the Bureau for Food and Agricultural Policy (BFAP) shows that roughly a third of South Africa’s farming income is directly dependent on irrigation.
    • This shows that disruptions in power supply generally puts at risk a substantive share of the South African agricultural fortunes.
    • Of the other key field crops, about 15% of soybeans, 20% of maize and 34% of sugar production are under irrigation.

There are positives

    • This is according to Crop Estimates Committee, a government and industry body that monitors crop production.
    • These declines would have been higher had the South African Rand not weakened against the US dollar over the same period.
    • That’s because in US dollar terms, the prices of the very same agrochemicals are down by 30% from February 2022.
    • I generally expect an ample harvest in most summer crops, which is aligned with the view of the Crop Estimates Committee.

Takeways

    • The one major risk is electricity stability.
    • If the government’s proposed interventions help during irrigation periods – afternoons and evenings – South Africans can expect a favourable winter season.

South Africa's power outages could reach critical levels this winter - likely scenarios

Retrieved on: 
Tuesday, April 18, 2023

The year 2022 was marked by the worst power outages in the country’s history.

Key Points: 
  • The year 2022 was marked by the worst power outages in the country’s history.
  • High outages have persisted through the warmer early months of 2023, and since early January the country has experienced power cuts every day.
  • Based on an analysis of trends and recent events in the power sector, I here identify the factors that I expect will lead to power outages reaching critical proportions this winter.

The power generation mix, and what’s failing

    • Of this a massive 74% (40 GW) is generated from coal power stations.
    • In recent years, and partly as a result of persistent power shortages, the power stations have been used excessively.
    • These builds were initiated in 2007 to mitigate against power shortages that were predicted a decade down the line.
    • Two units at the Koeberg power station in the Western Cape have a total capacity of 1.8 GW.
    • The remaining 13 GW (23%) of the South African power generating capacity is roughly equally shared by gas, hydro, wind and solar.

The winter spike

    • South Africans therefore have to brace for the winter power shortages.
    • South Africa’s electricity daily peak consumption rises from a summer average of 32 GW to 36 GW in winter.
    • But there are too many plants that are going to be out of operation for the entire winter season.

The danger of a grid collapse

    • A national blackout triggered by the current oscillating frequency of the grid drifting too far from the prescribed 50 Hertz would raise the danger of the power grid collapsing.
    • Rolling power cuts are the best practical way to prevent a grid collapse and total blackout.
    • A prompt reduction in power usage through the speedy implementation of tougher electricity cuts would always prevent a grid collapse.

EQS-News: African Energy Chamber: Understanding South Africa’s Energy Crisis (By NJ Ayuk)

Retrieved on: 
Wednesday, March 22, 2023

By NJ Ayuk, the Executive Chairman of the African Energy Chamber ( www.EnergyChamber.org ) and Author of A Just Transition: Making Energy Poverty History with an Energy Mix

Key Points: 
  • By NJ Ayuk, the Executive Chairman of the African Energy Chamber ( www.EnergyChamber.org ) and Author of A Just Transition: Making Energy Poverty History with an Energy Mix
    Witnessing the far-reaching effects of South Africa’s continuing power cuts has been tremendously disheartening.
  • At the root of South Africa’s energy crisis are the country’s coal-fired power plants, which are responsible for generating about 95% of the country’s electricity.
  • Last October, the Pan South African Language Board (PanSALB) made “load-shedding” the 2022 South African Word of the Year.
  • South Africa’s energy challenges will be front and center at African Energy Week scheduled to take place on 16-20 October in Cape Town.

MWC 2023: Huawei Launches Innovative Simplified Network and Data Center Solutions for the Intelligent World

Retrieved on: 
Wednesday, March 1, 2023

BARCELONA, Spain, March 1, 2023 /PRNewswire/ -- During the 2023 Mobile World Congress (MWC 2023), Huawei successfully held its 5th Industry Digital Transformation Summit.

Key Points: 
  • BARCELONA, Spain, March 1, 2023 /PRNewswire/ -- During the 2023 Mobile World Congress (MWC 2023), Huawei successfully held its 5th Industry Digital Transformation Summit.
  • Together with our partners, we will enable industry digitalization, help SMEs access intelligence, and promote sustainable development, creating new value together."
  • Bob Chen, Vice President of Huawei Enterprise BG, delivered a keynote speech entitled "Digital Technology Leads the Way to the Intelligent World".
  • Simplified network solutions: new products for four fields, building a solid network foundation
    Huawei is committed to helping enterprises build intelligent cloud-networks with cloud-network synergy, simplified architecture, and energy-saving features, thereby maximizing digital productivity and creating the ultimate experience.

South Africa State-Owned Enterprises (SOE) Report 2022: State of the Industry, Key Issues, Corporate Actions, Regulations, Enterprise Development and Social Development - ResearchAndMarkets.com

Retrieved on: 
Friday, January 20, 2023

The "State-Owned Enterprises in South Africa 2022" report has been added to ResearchAndMarkets.com's offering.

Key Points: 
  • The "State-Owned Enterprises in South Africa 2022" report has been added to ResearchAndMarkets.com's offering.
  • This report on state-owned companies in South Africa includes information on the SOE sector as a whole and major SOEs such as Eskom, Transnet, SAA, Denel and the Post Office.
  • It includes information on the state of SOEs and their effect on the fiscus and the economy, state capture and corruption, government guarantees and support and regulations.
  • State-owned enterprises (SOEs) play a critical role in South Africa's economy as they are responsible for providing the infrastructure and services on which the economy depends.

South Africa Electricity Generation Industry Report 2022: The Role of Eskom and the effect of its Financial and Operational Crisis and Renewable Energy and Embedded Generation Developments

Retrieved on: 
Saturday, January 21, 2023

DUBLIN, Jan. 21, 2023 /PRNewswire/ -- The "Electricity Generation in South Africa 2022" report has been added to ResearchAndMarkets.com's offering.

Key Points: 
  • DUBLIN, Jan. 21, 2023 /PRNewswire/ -- The "Electricity Generation in South Africa 2022" report has been added to ResearchAndMarkets.com's offering.
  • There is information on the state of the sector, the role of Eskom and the effect of its financial and operational crisis and renewable energy and embedded generation developments.
  • South Africa's electricity crisis has worsened as power cuts, which began in 2007, escalated in 2022.
  • While it remains small, the percentage of South Africa's electricity produced by renewable energy has increased rapidly.

South Africa Electricity Generation Industry Report 2022: The Extent of the Crisis, Relief Projects and Actions, & Planned Sources of Generation - ResearchAndMarkets.com

Retrieved on: 
Wednesday, January 18, 2023

The "Electricity Generation in South Africa 2022" report has been added to ResearchAndMarkets.com's offering.

Key Points: 
  • The "Electricity Generation in South Africa 2022" report has been added to ResearchAndMarkets.com's offering.
  • This report on the generation of electricity in South Africa includes comprehensive information on the extent of the crisis, actions and projects aimed at relieving it, and the sources of generation that are planned.
  • South Africa's electricity crisis has worsened as power cuts, which began in 2007, escalated in 2022.
  • While it remains small, the percentage of South Africa's electricity produced by renewable energy has increased rapidly.

South African Diesel Genset Industry Outlook Report 2022-2025 - Opportunities with Diesel Genset Technology Merging with Alternative Distributed Energy Resources - ResearchAndMarkets.com

Retrieved on: 
Friday, January 6, 2023

The "South African Diesel Genset Industry, Outlook 2025" report has been added to ResearchAndMarkets.com's offering.

Key Points: 
  • The "South African Diesel Genset Industry, Outlook 2025" report has been added to ResearchAndMarkets.com's offering.
  • South Africa is arguably sub-Saharan Africa's most developed economy and home to the region's largest energy sector.
  • However, alternative distributed energy resources (DER) are, to date, more expensive than diesel gensets and forecast to remain in the next 5 years.
  • There are many opportunities for genset distributors to overcome market restraints through innovative customer services and the ability to adapt and enter new market opportunities.