responding to the national energy crisis - the energy game...
TRANSCRIPT
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Responding to the National Energy Crisis - The Energy Game-Changer Process
Lance Greyling- Director: Trade and Investment, City of Cape Town
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www.capetown.gov.za 2
The City Recognises the Impact of the Energy Crisis
• The impacts are being felt all over the City
• Our economy is suffering from lost production
• Some sectors are severely impacted upon
• The cost of unserved energy is R75 kwh
• Security concerns, particularly in poorer
communities
• Chasing away investment and dissuading
current businesses from expanding their operations
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ENERGY SECURITY DESIGN LAB
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Problem statement
“What can the WCG, City and local municipalities
do to enable all actors to help minimise the
impact of power shortages and load shedding
on the Western Cape economy and jobs over
the next 5 years?”
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Key contextual considerations in seeking
solutions
• Constitutional mandates mean there are limited levers
within direct control of provincial and local government in
SA (but there are some, and mandates are open to interpretation!)
• Energy security, affordability, municipal financial
sustainability, job creation and environmental sustainability all need to be considered
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Government can help in 2 ways
1. Using things within their direct control to minimise the impact of the crisis
– Load shedding approach and schedule design
2. Enable/drive customers (business and residential) to implement useful solutions
– Clear, simple rules
– Incentives (pricing, subsidies, etc)
– Availability (single point of contact) and responsiveness
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Influence and buy-in
• We need to engage with other regions/cities to find
solutions that are replicable and have broad support – to
succeed this cannot be a Western Cape agenda!
• We need to find load shedding solutions with Eskom as
City and Eskom supply areas in Cape Town are adjacent
and consistency will be key to customer buy-
in/acceptance
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Load shedding stage
Demand reduction (%)
Demand reduction (MW)
(COCT)
Demand reduction (WC)*
Stage 1 5% 80MW 130MW
Stage 2 10% 160MW 260MW
Stage 3 15% 240MW 400MW
* Assumes COCT supply area is ±75% of CT demand and CT represents ±80% of WC elec use
We are are solving for hundreds of megawatts
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CITY’S PRIORITIES & PLAN TO MITIGATE THE IMPACT OF LOAD-SHEDDING
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Framing
• No silver bullet, but there are a number of things that jointly can help get us out of this
• Optimizing for long term solution when making immediate solutions
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The City is committed to exploring 10 priority actions
• 4 levers with immediate impact
• 6 things to enable short to medium term solutions and improvements to energy security
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Immediate levers
1. Load shedding certainty to enable businesses to plan better
e.g. Commitment to Stage 1 or 2 load shedding for the month whether it is needed by Eskom or not
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Immediate levers
2. Use City-controlled levers (e.g. pumped storage, geyser control) to help avoid or mitigate load shedding
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Immediate levers
3. Load shedding schedule design
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Immediate levers
4. Contracted demand response to avoid or mitigate load shedding
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Short- to medium term solutions
5. Try and agree a baseline with Eskom
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Short- to medium term solutions
6. Incentivising rooftop PV
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Short- to medium term solutions
7. Direct power purchase agreements (PPAs) with independent power producers (IPPs) for renewables and gas
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Short- to medium term solutions
8. Solar water heaters and heat pumps
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Short- to medium term solutions
9. Time-of-use tariffs e.g. investigate cheap night time power to enable load
shifting through battery systems
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Short- to medium term solutions
10. Show leadership with our own energy use
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Thank You