Engineering News Online Audio Articles

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.

Local solar-as-a-subscription service provider Wetility is deploying a rooftop solar solution in a lower-income community as part of a proof-of-concept study to firm up the feasibility of extending the offering to other underserved areas.

COO Franta Pour tells Engineering News that the company's current focus is on the provision of bundled solar-battery rental solutions to more affluent households and small and medium-sized businesses, where attention is shifting progressively from security of supply to electricity bill savings.

Despite being loadshedding-sensitive, he expects this higher-income market to continue to grow, but for customers to increasingly opt for solutions that extend well beyond panels and batteries to include ways of optimising production and accelerating their returns on investment, including through the integration of smart-geyser control systems.

"We anticipate that the market has started to rapidly progress beyond loadshedding to emphasise savings, customer experience and maintenance and that it will eventually also be motivated by the goal of reducing environmental impact," Pour says.

However, 70% of South Africa's potential household market is located in lower-income areas, where the penetration of solar remains extremely low and where market-ready affordable solutions have not been developed.

Wetility is, thus, working on what it describes as a "fit-for-purpose subscription model" that it believes can help overcome both the key affordability hurdle, as well as the practical difficulties associated with installing solar on properties where ownership is unclear or where illegal connections are common.

"We are currently rolling out systems with a partner who has a strong footprint in lower-income communities.

"We will start sharing the results of the proof-of-concept in the next couple of weeks," Pour tells Engineering News, without disclosing the location of the pilot or the identity of the company's partner.

"We are using various strategies to bring power to these households, including community advocacy, specialised credit products to enhance adoption while minimising credit losses, and collectivised schemes such as powering critical community points like schools and clinics.

"This allows multiple households to connect to a larger shared plant and distribute the costs."

However, he acknowledges that mass deployments will require collaboration with government at various levels, as well as funders, hardware and software providers and, crucially, the communities themselves.

"We believe the discussions should start with local businesses as they provide the backbone of support.

"Once they are convinced and start using solar systems, we can take huge strides forward towards including the residents and, finally, engage local government."

Wetility is convinced that the benefits of finding a solution will be significant, with cheaper access to reliable and renewable electricity not only ensuring greater lifestyle convenience, but also creating the potential for enterprise development and job creation.

"There are many benefits - the most important one is that competition from private companies will benefit customers and municipalities.

"There will be more innovation, and the diversification of the power sector will help municipalities deliver better services.

"In my opinion, communities will also make a point to protect those assets," Pour concludes.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.

Three Just Energy Transition (JET) skills development zones focusing on renewables and grids, electric vehicles and green hydrogen value chains are proposed for implementation under the larger JET Investment Plan (JET-IP), for which pledges of $11.5-billion have been made by several developed countries.

The zones will be anchored to specific educational institutions, most likely technical and vocational education and training (TVET) colleges selected for their proximity to the priority sectors, where education and training will be tailored towards a specific JET focus and where catalytic interventions will be undertaken and partnerships with business developed.

Joanne Yawitch of the JET Project Management Unit, which is located in the Presidency, reports that the development of JET-aligned skills has been identified as one of the key portfolios required to implement the JET-IP, approved by Cabinet in 2022.

The plan was then endorsed initially by France, Germany, the UK, the US and the European Union and later by several other countries, some of which have teamed up with the original International Partners Group, with others providing bilateral support.

The South African government's JET-IP outlines the need for R1.5-trillion-worth of investment in the renewables, new energy vehicles and green hydrogen sectors between 2023 and 2027 to support the country meet its goal of reducing its carbon emissions to as close as possible to the lower band of the emissions range submitted to the United Nations Framework Convention on Climate Change, namely between 420- and 350-million tons by 2030.

The goal is currently likely to be missed given plans to extend the life of certain coal stations beyond their initial retirement dates, owing to a electricity supply deficit.

Speaking during a South African National Energy Association webinar, Yawitch said that skills had been identified as a key cross-cutting requirement for the JET-IP, the implementation of which was currently under way, following Cabinet's endorsement of the implementation plan late last year.

Envisaged was a three-tier JET skills ecosystem, to be coordinated by a 'JET Desk' that would be set up either within the Department of Higher Education and Training or the Human Resource Development Council of South Africa.

The second tier would comprise a 'National JET Skills Advisory Forum', which would include representatives from government, civil society, the private sector, labour, higher-education institutions and TVET colleges to provide guidance regarding skills requirements and challenges.

The skills development zones would make up the third tier with each zone focusing on one of the three priorities of renewables and grids, electric vehicles and green hydrogen.

Without providing specific timeframes, Yawitch said the immediate priority was the establishment of the JET Skills Desk and the JET Skills Advisory Forum. In parallel, JET skills needs assessments would be undertaken for the three value chains.

Speaking on the same platform, Strategic Mindsets director Wendy Poulton confirmed that a South African Energy Skills Roadmap had already been considered in collaboration with the University of the Witwatersrand, which made several recommendations while also highlighting the need for flexibility amid several uncertainties.

It was recommended that an occupation and skills atlas be developed and skills planning be undertaken to ensure alignment between the needs of employers in the energy sector and education and training courses implemented at higher-education institutions.

Also being prioritised were specific interventions, including skills development programmes, in the Mpumalanga province, where workers and communities were especially vulnerable to the shift from coal to renewables.

Yawitch said a specific Mpumalanga po...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.

Electricity Minister Kgosientsho Ramokgopa describes surplus electricity arising from existing renewable energy facilities as "low hanging fruit" in improving the supply-demand balance and reports that discussions are under way to assess ways to make this energy available to the grid.

Speaking during a regular update on the Energy Action Plan, Ramokgopa confirmed that the issue, which had been under consideration for years, had again been raised with him by the leadership of Scatec during his recent visit to the group's Kenhardt solar-battery facility in the Northern Cape.

The hybrid Kenhardt plant comprises 540 MW of solar photovoltaic capacity and 225 MW/1.1 GWh of battery storage to provide 150 MW of dispatchable electricity daily.

However, it is restricted, owing to the design of the much-criticised risk-mitigation procurement programme, from delivering any surplus solar electricity into the grid.

It is understood that this results in up to 30% of the plant's solar generation being lost to the system. This despite the threat of daily loadshedding, which has eased somewhat in recent weeks, with Eskom having refrained from implementing rotational cuts for 26 days at the time of the briefing.

Ramokgopa said finding a way to absorb the surplus being generated by Kenhardt and other renewables independent power producers (IPPs) required a "three-way conversation" between Eskom, the IPPs and government's IPP Office regarding a fair contractual model.

It would also be feasible, he added, only if there was sufficient grid capacity to absorb the electricity.

That said, discussions regarding the surplus available from existing IPPs have been under way for years, and even predate the 2022 establishment of the National Energy Crisis Committee, which initially indicated there to be some 70 MW of such surplus capacity available, which was before Kenhardt entered commercial operations.

It is not clear why the negotiations have not progressed, with Ramokgopa indicating that several IPPs had approached him directly about the surplus that they "essentially throw away" because it exceeded their contractual limits.

"We have initiated discussions with Eskom and the IPP Office to see how best we can design an intervention that makes it possible for us to benefit from that excess generation, without undermining what was a public procurement process to contract the megawatts," the Minister said.

The outcome, he added, should not lead to questions about the credibility of the procurement processes or the resulting contracts, as the business case of the IPPs would be improved should the surplus electricity above the initial contracted amount be purchased.

"It's a conversation we are having and the sooner we resolve it the better, [because] this is one of the matters I refer to as a low-hanging fruit."

DIESEL USE FALLING

Meanwhile, Ramokgopa expressed confidence that the loadshedding corner had been turned, which he attributed to more stable production from the coal fleet and the relief on the system being provided by both large-scale renewables and surging rooftop solar installations.

Last year about 2 500 MW of rooftop solar was added, much of which was coupled to battery storage, increasing the overall installed base to above 5 000 MW.

The installations had decreased daytime demand, which provided space for the replenishment of pumped storage reserves.

The combination of improved coal stability, renewables, batteries and lower demand meant that Eskom was expecting to operate the open cycle gas turbines (OCGTs) it owned, as well as those operated by IPPs, at a far reduced capacity factor than was the case in its 2023/24 financial year.

The utility confirmed that it exceeded its R30-billion diesel budget for the period by R3-billion.

Ramokgopa said that, since December, Eskom had been using ...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.

With the National Transmission Company South Africa (NTCSA) currently scheduled to be operationalised in July and efforts under way to ensure that the Electricity Regulation Act (ERA) Amendment Bill is passed by the current Parliament, work is now advancing on the market code for the future multimarket architecture that will progressively replace the vertically integrated structure that has prevailed for over a century.

Eskom transmission MD Segomoco Scheppers will lead the NTCSA once it begins trade after addressing the remaining Companies Act requirements, having already met the key conditions of board independence, licensing and lender consent.

He reported that, barring any surprises, the wholly owned Eskom subsidiary would transition towards being the transmission system operator (TSO) envisaged in the amended ERA, which by South African standards had advanced relatively speedily through the Parliamentary process.

The ERA is currently being consider by the National Council of Provinces, having been endorsed by the National Assembly, and, if approved, will then be sent to President Cyril Ramaphosa, who has previously expressed an eagerness for the legislation to be promulgated as a matter of urgency.

Scheppers admitted during a workshop on the draft market code that would govern the transition to a competitive industry, that he was continuously monitoring his emails for any sign of a legal challenge, following the recent issuance of creditor notices, which stipulated that any objection be lodged within 15 days of issuance and take the form of a legal challenge.

However, he expressed cautious optimism that, absent any objections, the July timeframe could be met. This, after Eskom failed to meet the April 1 target date, which would have coincided with the start of the 2024/25 financial year.

NEXT CHAPTER

That said, he also stressed that the start of trade represented but one major milestone in a larger transformation effort, with the "next chapter" to begin once the ERA came into force and the NTCSA began integrating the TSO roles envisaged in the Act, which provides five years for such an evolution.

Initially, the role of the NTCSA would be a "plug and play" version of the one performed hitherto by the transmission division.

The amended ERA, however, also stipulates the following:

The establishment of an independent TSO to manage the national grid, as well as system and market operations;

The creation of a competitive electricity market, enabling multiple generators to compete on a level playing field;

Ensure that regulation and tariffs are transparent, effective and clearly defined in scope; and

Provide certainty to all market participants of their respective roles and responsibility.

Speaking from the same platform as Scheppers, the Presidency's Saul Musker also highlighted that the ERA stipulated that a clear process be followed for the development by NTCSA of a market code, outlining qualifying criteria for power market participants, and for that code to be approved by the National Energy Regulator of South Africa (Nersa).

The first draft of such a market code was published on April 19, following initial consultations pursued through the structure of the National Energy Crisis Committee (Necom), which was set up by Ramaphosa in July 2022 in response to the country's intensifying loadshedding crisis.

Besides setting short- and medium-term goals to reduce the severity of, and eventually end, loadshedding, Necom was also instructed by Ramaphosa to "fundamentally transform the electricity sector to achieve long-term energy security".

Musker said that besides the unbundling of Eskom in line with international trends and establishing the NTCSA, the key next steps related to developing a Nersa-approved market code, setting up a market operator within the NTCSA and imple...

Engineering News editor Terence Creamer discusses South Africa's plans to stimulate local manufacturing around solar, wind and batteries.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.

The combination of public and private procurement of large-scale renewables in South Africa signals increased stability for manufacturers of key components, a new GreenCape report argues.

Published ahead of the release of the much-anticipated South African Renewable Energy Masterplan (SAREM), which will outline the country's official approach to localising renewables value chains, GreenCape's 'Large-scale Renewable Energy' report estimates that 6 GW of solar photovoltaic (PV) and 4 GW of wind power could be added through private procurement alone by 2030.

This would be in addition to public procurement, which was expected to add 2.6 GW of solar PV, 3.2 GW of wind and 3.7 GWh of battery energy storage systems over the same period.

Published as one of three sector-focused national studies released as part of its 2024 Market Intelligence Report, the non-profit organisation said the emergence of private procurement should help mitigate the boom-bust cycles associated with the market's previous heavy reliance on public procurement.

The emergence of the private market has been facilitated by market reforms allowing distributed projects of any size to proceed without a licence, while the pace of procurement has been further accelerated by a sustained period of intense loadshedding, which has only recently abated.

Speaking at a public launch in Johannesburg, Ulrich Terblance, who helped author the large-scale renewables report, said that the public and private markets to 2030 would be relatively similar in size at about R200-billion apiece, which could be sufficient to stimulate domestic manufacturing investment.

He said the combined markets should also result in yearly deployments of about 2 GW, which should be sufficient to support the manufacture of certain components, even though such an installation rate was insufficient to address the overall supply deficit.

The report estimates the total market size for domestic renewables components at R42-billion over the period to 2030.

"Additionally, there is potential to manufacture components for both utility-scale and small-scale renewable energy projects, such as balance of plant or system components.

"Smaller-scale projects can provide a steady demand, reducing manufacturers' vulnerability to fluctuations in utility-scale project demand and resulting in cost savings through economies of scale," the report states.

GreenCape's separate 'Energy Services' report highlights the recent surge in rooftop solar and battery installations by businesses and households and estimate the overall market size for the period to 2030 at R88.4-billion.

Energy programme manager Jack Redmore forecast that the small-scale market would continue to add between 1 GW and 2 GW despite the recent easing of loadshedding, but expressed caution about household affordability, with credit approvals by banks having slipped in recent months.

Nevertheless, he argued that the large- and small-scale markets combined were providing demand stability that had been absent previously and which represented an opportunity for domestic manufacturers.

Redmore noted that the South African government was working towards supporting the localisation of renewable-energy manufacturing through various industrial policy interventions, including SAREM, which was in its final draft.

Engineering News confirmed with a Department of Mineral Resource and Energy official that the SAREM drafting process had been finalised, but the official was unable to confirm when the document would receive ministerial sign-off and be released for public consumption.

GreenCape's third market intelligence report, which focuses on electric vehicles, highlights the potential not only for electric busses, trucks and taxis but also motorcycles used for last-mile deliveries.

Report author Prian Reddy said the b...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.

The National Energy Regulator of South Africa (Nersa) has initiated consultations on Eskom's latest Regulatory Clearing Account (RCA) application for the 2022/23 financial year, where Eskom is requesting R9-million, its lowest RCA application since the utility began making yearly submissions under the claw-back mechanism.

Given that the amount is less than 2% of Eskom's allowable revenue for the year, Nersa is not required to undertake public hearings. Nevertheless, a consultation document has been published, with virtual hearings scheduled for August 2 and 4 and a decision expected by December 2.

Eskom indicates that the cost and revenue variances during the period were relatively modest largely because foregone revenue related to loadshedding during the period has not been included in the RCA.

GM for regulation Hasha Tlhotlhalemaje reports that the effect of loadshedding on Eskom during the period was about R20-billion, but that this amount has been excluded from the application as has been the case historically.

She also tells Engineering News that the relatively small variance does not reflect a growing convergence between Eskom and Nersa regarding RCA calculations, disputes over which have been the subject of legal action.

Eskom has reviewed all RCA decisions from 2014/15 to 2020/21 in court and court processes are still under way involving about R60-billion in what the utility alleges to be incorrect RCA decisions.

Tlhotlhalemaje says this view has been endorsed by a court judgment and order for the financial years 2014/15 to 2016/17 RCA decisions, which Eskom subsequently re-reviewed after Nersa failed to comply with the order.

Therefore, she does not view the current small variation as reflecting a growing convergence between Nersa and Eskom on the way the RCA mechanism is being implemented.

"Instead, the key variances make the difference; one of these being revenue related to loadshedding that has not been included in the RCA.

"Thus, an amount of approximately R20-bilion is not recovered, which has always been the tradition, but the amount is very extreme for this financial year," Tlhotlhalemaje explains.

Eskom and Nersa also not yet aligned on the methodological approach that should be taken for the next round of tariff applications.

Nersa has approve Electricity Pricing Determination Rules (EPDR), which it wants to be implemented for the 2025/26 financial year.

Eskom, however, says the EPDR cannot be implemented as its fails to include a method for calculating tariffs and that the prevailing multiyear price determination, or MYPD, framework and methodology will, thus, have to be used.

"Eskom is complying with the court order that requires the use of whatever methodology is in existence in September 2023 for the revenue determination for 2025/26.

"The process is under way for a decision by Nersa in December 2024," Tlhotlhalemaje tells Engineering News.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.

The National Energy Regulator of South Africa (Nersa) has belatedly moved to quell concern that its recent approval of a new loadshedding code of practice, which increases the number of potential stages from eight to 16, represents a signal that the prospect for higher levels of loadshedding is imminent.

Following extensive public consultations undertaken by the National Rationalised Specifications (NRS) Association of South Africa, the third edition of the NRS048-9 standard was approved by the regulator for use by Eskom and municipal system operators during times of electricity constraint.

It increases the number of loadshedding stages from the eight outlined in the second edition to 16 with the aim of preventing the system from succumbing to a blackout; a scenario from which it could take South Africa weeks to recover.

At Stage 16, which Nersa fulltime regulator for electricity Nhlanhla Gumede described as a "highly unlikely scenario", 80% of demand would go unmet, and South African households and businesses would experience 32 hours of power cuts over a 32-hour period.

At Stage 8, a level not yet implemented by Eskom, 40% of the load would be shed, equating to 16 hours over 32 hours.

The utility has already implemented loadshedding at Stage 6 on several occasions, which under the third edition of NRS048-9, involves 30% of the load not being met, or 12 hours of loadshedding over 32 hours.

In a media briefing hosted partly to explain the code and partly to allay fears, Gumede stressed that the approval of the new code was "not an indication that greater levels of loadshedding are imminent".

NRS Association management committee chairperson Vally Padayachee said the updated standard had been developed using a scenario-planning methodology across the entire country load so as to address critical uncertainties, "including the unlikely event of Stage 16".

"In so doing, we significantly mitigated the propensity of human error," he added.

Prior to the approval of the update to NRS048-9, Eskom and municipal system operators had no firm guidance regarding the implementation of loadshedding beyond Stage 8, which was left open to their discretion.

Padayachee argued that the lack of clear guidelines beyond Stage 8 posed a risk, particularly given that system operators would be making difficult decisions in an emergency situation where stress levels would be heightened, which could in turn increase the propensity for error.

The new code of practice, he added, would help prepare operators to protect the national electricity grid, as it outlined a structured and proactive approach to addressing a crisis should one arise.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.

Volkswagen Group Africa (VWA) will invest R4-billion in its manufacturing plant in Kariega, in the Eastern Cape.

The investment will be used to prepare the plant for the addition of a third model to the company's production line-up from early 2027.

The third model, which will be a compact sports-utility vehicle (SUV), will be manufactured on the same production line as the Polo and Polo Vivo.

VWA currently produces the Polo for the local and export markets, and the Vivo for the local market.

Most of the R4-billion investment will be allocated to capital expenditure for the production facilities, manufacturing tooling, local content tooling, and quality assurance.

Nearly R877-million will be spent to enhance automation in the body shop.

In the press shop, R418-million will be used to procure new press tooling.

The first phase of the plant upgrade will begin at the end of this year, during the facility's yearly shutdown.

VWA chairperson and MD Martina Biene said on Tuesday that the investment reaffirmed Volkswagen's commitment to South Africa, where the German car maker has been manufacturing vehicles for nearly 73 years.

"Plant Kariega is an important manufacturing plant within the Volkswagen Group production network," she said at the investment announcement in Kariega.

"Since 2011, Volkswagen has invested R10.28-billion in production facilities, manufacturing equipment, local content tooling and training of people.

"The new investment is a vote of confidence in the future of the plant.

"It also futureproofs jobs, not only for our people, but also those employed in our supplier network."

Export demand for the Polo from the VWA plant may trend downward towards 2030 as large swathes of the world shift to electric vehicles (EVs).

VWA expects to export 127 000 Polos to 38 global markets this year. The company is set to become the sole global Polo manufacturer in July.

The group produced 140 400 vehicles in total in 2023.

VWA says localisation remains a key priority for the group.

The Polo and Vivo currently have 46% and 58% local content levels, respectively.

The trend is set to continue with the new model, which aims to achieve about 40% local content through a R1.2-billion investment programme.

SOUTH AMERICAN FLAVOUR

Volkswagen Brazil is leading the design and development of the new SUV, which will largely be aimed at world markets where EVs will be introduced at a slower pace.

VWA's engineering team has, however, collaborated with Volkswagen Brazil to adapt the new model for local and African requirements, such as developing a right-hand-drive version.

"South Africa is an important market for the Volkswagen Group, particularly in terms of our long-term goal to establish our footprint on the African continent, which is seen as the last frontier for automotive development," noted Biene.

"As such, we have recently renamed our local company to Volkswagen Group Africa, to represent our responsibilities and ambitions to grow the Volkswagen brand on the continent.

"The new model has the potential to be sold in other African markets where Volkswagen has a presence.

"As most global vehicle markets transition to EVs, African markets like South Africa will continue manufacturing and selling vehicles with internal combustion engines (ICEs) for the foreseeable future, owing to customer demand for ICEs and the slow introduction of EVs in these markets," added Biene.

This said, though, the Volkswagen Brand this year starts its electrification journey with the introduction of a ID.4 test fleet in South Africa and Rwanda.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.

South Africa has fallen to sixty-ninth from sixty-fourth on the World Energy Council's (WEC's) latest World Energy Trilemma Index which ranks more than 100 countries against the three key dimensions of energy security, equity and environmental sustainability.

The index is included in the 'World Energy Trilemma 2024' report, released on April 16, and which is topped by Denmark and Sweden, with Niger and the Democratic Republic of Congo at the bottom of the standings.

South Africa, which has experienced extreme levels of loadshedding over the past three years, placed below Lebanon in the overall index and ranks eighth in the African regional index, behind Angola and Gabon, and which is led by Mauritius and Egypt.

Titled 'Evolving with Resilience and Justice', the WEC says its latest report exposes profound changes in global energy systems, triggered by what it describes as the world's first demand-driven energy shock in response to Russia's invasion of Ukraine and accelerating energy transitions in all regions.

Africa, the report states, is grappling with rising demand, security challenges and a transition towards cleaner energy.

Amid strong population growth and increased urbanisation, energy demand across the continent is expected to rise by 30% between 2020 and 2030.

"Meeting rising demand while ensuring affordability and sustainability is a critical aspect of Africa's energy security," the report states.

It adds that Africa stands at a critical juncture between two divergent energy models: the conventional, extractive model of the past and an emergent twin transition to clean energy and digitisation.

The report also cautions that the pursuit of export-driven revenues in several African countries continues to take precedence over the need for universal access, leaving significant segments of the population without modern energy supplies.

However, it describes the emergence of increased private-sector financing and investment as a positive signal, arguing that this trend is being driven by supportive policies, rising demand, cost reductions in renewable energy and access to financing.

The report highlights South Africa's decision of 2021 to ease licensing requirements on distributed projects, which it says is resulting in a notable surge in renewables projects related to commercial and industrial sectors.

WEC secretary-general Dr Angela Wilkinson confirmed that the World Energy Trilemma framework itself was being redesigned to align with changes under way in the energy sector and to ensure that the tool remained relevant to policymakers.

"This latest edition of the World Energy Trilemma Report demonstrates that how we got 'here' won't get us to 'there' when it comes to managing orderly, inclusive and just global energy transitions.

"The future of energy is going to be much more demanding, literally! As we redesign energy for people and planet, we are transforming the World Energy Trilemma framework to extend the practical use of this performance management and pathfinding tool beyond countries to regions and cities," Wilkinson reported.