Latest news with #ElectricityRegulationAct
Yahoo
22-05-2025
- Science
- Yahoo
Satellite images reveal the dark side of household solar power – South Africa's green transition is only for a few
As winter approaches, memories of the past haunt South Africans in more ways than one. The country has experienced years of rolling blackouts, known locally as load shedding. During the worst periods of these power cuts in 2022 and 2023, South Africans who did not own solar photovoltaic systems or generators would go without electricity for up to 12 hours a day. Due to the extent of the damaging power outages, solar power was adopted quickly in South Africa. For example, in 2020, smaller systems installed at homes or businesses made up just 38% of the country's solar systems. At that time, 62% of solar systems were utility-scale solar power. (These included large solar farms that feed electricity directly into the national grid.) But by May 2024, the share of smaller solar power systems had shot up to 74%, far more than that of utility-scale photovoltaic systems. Read more: As a team of researchers specialising in mapping, geography, and renewable energy transitions, we noticed that satellite imagery showed that some parts of South Africa were still brightly lit at night, even during power cuts. We wanted to find out if this was because these areas were exempt from power cuts or if it was because they'd switched to alternative power sources. So we compared publicly available night-time satellite images of 300 suburbs with satellite images of South African rooftops taken during the day. We looked at the images for both day and night between 2016 – when there were almost no power cuts – and 2023, when power was cut for almost 79% of the year. The satellite imagery revealed that night-time light declined by 20% over urban South Africa between 2016 and 2023. However, some suburbs remained curiously bright even when the power was out. We overlaid the satellite images with national census maps and found that areas where predominantly Black residents lived darkened twice as much during this time as predominantly white suburbs. There were virtually zero solar panels in impoverished areas, whereas wealthy suburbs were plush with rooftop solar systems. This reflected the spatial divisions established under apartheid – that is, the geographic divisions established under South Africa's former system of racial segregation, where people were forcibly separated into different areas based on race. Read more: Our study shows that while solar energy adoption is booming in South Africa, it is mostly benefiting wealthier, white communities. We believe we are seeing evidence of energy apartheid – access to energy that still follows the racial divisions created by apartheid. This means that the government needs to take steps to make sure that the green energy transition benefits everyone equally. Without rolling out renewable energy to all, inequality will deepen and millions of people will be left in the dark. South Africa's Electricity Regulation Act aims to ensure that everyone can access electricity on an equal basis. However, there's no public data on whether the power utility Eskom's power outages are more severe in some areas, or not. This meant we could not verify whether power cuts were happening fairly and equally across all suburbs. Read more: Instead, we tried to find out who gets to keep their lights on by using daytime satellite images from 300 suburbs for the seven years between 2016 and 2023. These showed us which communities had the most homes with rooftop solar photovoltaic panels. For example, in the high income Rietriver Country Estate near Johannesburg, an average of 13 solar panels were detected per house. A middle-income suburb in the town of Benoni, where residents earn half as much, has an average of one solar panel per household. And in Thembisa, a low income area where residents earn an average of R740 (US$41) per person per month, not one solar installation was recorded in the area, highlighting the stark contrast with wealthier suburbs. We found that the number of solar systems in predominantly white suburbs was 73 times higher than in areas that mainly house racial groups who were previously disadvantaged by apartheid. Our findings are typical of the extremes of energy injustice in the global south. Here, moving from coal-fired power to cleaner, renewable energy doesn't solve the problem of energy poverty (where energy is concentrated among more affluent people). Instead, the green energy transition amplifies social inequality. Our study highlights the risk that South Africa's move to cleaner energy could make long-standing inequalities even worse. But it also points to ways of overcoming them: policy initiatives such as tax rebates for low-income households to help more houses install solar systems innovative ownership models where solar panel arrays are owned and managed by a group of households targeted subsidies like zero-interest loans or free basic solar systems for low-income groups to help overcome the high upfront costs of solar panels, batteries and inverters. For these measures to work, they need to be co-designed with diverse stakeholders. They must focus on the specific needs and aspirations of South African households. For the green energy transition to be inclusive and sustainable, conversations around renewable energy should consider who can access and benefit from solar power. This article is republished from The Conversation, a nonprofit, independent news organization bringing you facts and trustworthy analysis to help you make sense of our complex world. It was written by: Zander Venter, The Norwegian Institute for Nature Research; Megan Davies, Stellenbosch University, and Samantha L. Scott, The Norwegian Institute for Nature Research Read more: Mozambique's unstable and expensive power supply is devastating small businesses – study examines what's gone wrong Energy poverty in Zimbabwe takes many forms but policy only looks at one Why the UK's unfair energy market is unlikely to spearhead a green transition The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.
IOL News
12-05-2025
- Business
- IOL News
NERSA establishes Electricity Market Advisory Forum to transform South Africa's electricity sector
New Electricity Market Advisory Forum launched by NERSA for South Africa's energy reform Image: IOL/Independent Newspapers The National Energy Regulator of South Africa (NERSA) has taken a significant step towards transforming the country's electricity sector by approving the establishment of the Electricity Market Advisory Forum (EMAF). This new advisory body, formed under the provisions of the Electricity Regulation Act of 2006, aims to provide expert guidance on the development and regulatory oversight of South Africa's emerging competitive electricity market. In a statement issued on Friday, NERSA's Head of Communications, Charles Hlebela, highlighted the importance of the EMAF in navigating the profound changes anticipated in the sector. 'The decision recognises the transformative shift in the electricity landscape, driven by amendments to the Electricity Regulation Act (ERA), which envisage a competitive electricity market within the next five years. 'The EMAF is a strategic move to involve stakeholders early on, fostering a robust, inclusive regulatory environment to support this transition.' Hlebela stated that the establishment of the EMAF aligns with South Africa's broader energy reform agenda, which includes licensing a Market Operator—likely to be the National Transmission Company of South Africa (NTCSA)—and the development of comprehensive Market Rules and Codes. These regulations will underpin the operation of the nascent wholesale electricity market, which introduces regulatory activities that are relatively new to the South African context, such as market surveillance and enforcement. Stakeholder Engagement and Institutional Strengthening According to NERSA, the EMAF's primary role will be advising NERSA on key regulatory frameworks, including the finalisation of Market Rules and Codes crucial for the market's launch. It added that the forum will also provide insights on the necessary enablers for a competitive market, such as licensing procedures, operational oversight, and enforcement mechanisms. Recognising the complexity and novelty of these activities, NERSA emphasised the importance of stakeholder consultation and institutional capacity building. 'An inclusive consultation process like the EMAF will help ensure all stakeholders are prepared for the evolving market. This initiative will foster readiness among industry players, regulators, and end-users alike, " said Hlebela. Composition and Operational Framework While specific details about the appointment process are yet to be finalised, NERSA indicated that the EMAF's membership would be carefully curated to include a diverse blend of institutional representatives, industry experts, and end-user perspectives. The energy regulator said that the Market Rule Project Team is currently finalising the forum's terms of reference, which will outline its scope, mandate, membership criteria, and code of conduct. [email protected] IOL Politics
Daily Maverick
08-05-2025
- Business
- Daily Maverick
Nuclear and gas ‘forced in' SA's draft updated electricity masterplan
South Africa's draft Integrated Resource Plan 2024 (IRP) is 'deeply flawed' in both process and outcome, according to a panel of independent energy economists, climate policy specialists and engineers. A group of eminent South African technical experts have roundly criticised the draft Integrated Resource Plan 2024 (IRP) – the country's electricity blueprint for the future – as being flawed in both process and outcome, with at least one expert saying that nuclear energy and gas were 'forced in' despite there being no techno-economic rationale for their inclusion. These extra costs could be 'socialised' and filter through to taxpayers and electricity tariffs. The Electricity Regulation Act defines the Integrated Resource Plan (IRP) as 'an indicative, forward-looking plan [established by the national sphere of government to give effect to] for electricity generation, which reflects national policy on electricity planning, which plan specifies the types of energy sources and technologies from which electricity may be generated and indicates the amount of electricity that is to be generated from each of such sources or technologies.' The current draft of the IRP is being discussed at the National Economic Development and Labour Council (Nedlac) before Cabinet considers a final version later this year. Subesh Pillay, acting director-general of the Ministry of Electricity and Energy, gave the opening address at a webinar focused on policy and planning considerations for energy and electricity in South Africa in the years to 2050. He said conversations around the IRP were happening as the country was at an inflexion point from an energy perspective. Pillay said past energy debates were framed by scarcity and load-shedding, but improved generation performance now allowed 'long-term thinking' and 'evidence-based planning'. However, other attendees would later suggest that the document best exemplifying this long-term thinking – the IRP – was anything but a display of 'evidence-based planning'. Dr Grové Steyn is MD at Meridian Economics. He specialises in infrastructure regulation, policy and restructuring. He said executive policy-making was bound by the constitutional principle of legality, which essentially required a minimum level of rationality and that least-cost power-system planning mattered greatly – tariffs were likely to increase as old Eskom coal plants were retired. 'Securing a reliable supply at the lowest possible economic and environmental cost is one of the most critical challenges in supporting our long-term development. This challenge is immensely complex and requires rigorous analysis.' A credible IRP, Steyn said, was one where, in terms of process, 'outcomes must follow logically from the results of proper analysis, outcomes have to be evidence-based, it should be grounded in sound, transparent and well-documented techno-economic analysis.' The IRP should also be consistent with other policy frameworks such as South Africa's climate commitments, local air quality regulations and broader socioeconomic goals. Based on these considerations and others, he described the draft IRP as deeply flawed. Integrated Resource Plan 2024 by Ethan van Diemen on Scribd Nuclear 'forced in' 'So the IRP, as in earlier years, develops essentially a 'modelled optimised reference case'. In this case, this includes the existing committed public procurement projects and also the private sector plans that are very far advanced,' said Steyn. He noted that the optimiser's 'emerging technology mix' pointed only to wind, solar PV, gas and storage, with no new nuclear, coal or pumped storage in the least-cost case. 'The modelled scenarios using the actual optimiser in the model does not build nuclear so the IRP modellers wanted to have a nuclear scenario and I presume the policy makers – the government – wanted that investigated and the only way they could do that was essentially to take away the other generation options that [were] available to the model to build the power system to meet demand.' He said modellers disabled new gas options after 2030, in effect, forcing the model to 'build nuclear.'. 'That is how the nuclear scenario was built. So the nuclear case is not an outcome of the model's optimisation, it's a forced-in scenario.' Gaps in the data Steyn highlighted more flaws he said undermined the credibility of the IRP. 'It's astonishing that the document does not show data on the technology capacity, energy mix costs or emissions for the modelled scenarios or the actual proposed balanced plan. Technically, of course, this means that it does not qualify as an IRP in terms of the legal definition.' 'It's not clear to us how Nedlac can participate in a meaningful consultation process if this information is simply not in the document.' 'The assumptions about nuclear technology are overly optimistic… The analysis does not test compliance or alignment with other policies, whether it is our net-zero emissions objectives or our local air quality objectives, etc, no information is available on how we meet those requirements.' 'The key concern here is that the proposed balanced plan is not logically derived from the underlying analysis presented in the IRP document. The conclusions and the plan are not the result of the analysis presented in the IRP document,' Steyn said. The IRP creates an illusion of science-based planning when its recommendations do not follow the evidence, Steyn argues. 'We have an IRP that neither went through a meaningful public consultation process nor benefited from review by independent experts, an IRP that contains lots of technical descriptions of our power system modelling, but does not adequately investigate the most critical uncertainties affecting future outcomes, an IRP that presents recommendations that do not follow logically from the analysis or are not otherwise substantiated or for which the technical and cost implications are not presented and, in fact, creates an illusion that the recommendations are based on scientific and economic principles when they are clearly not.' 'The technologies that are uneconomically forced into the plan, especially gas and nuclear, will actually rely on public procurement with limited competition, where risks and costs of these investments will be socialised,' Steyn warned. 'Unfortunately, as we all know, South Africa's recent empirical experience with these types of projects provides stark warnings about the enormous risk for cost overruns, opportunities for rent-seeking and even corruption.' Lebogang Mulaisi, executive manager responsible for policy and research at the Presidential Climate Commission (PCC), questioned whether short notice for stakeholder meetings constituted 'meaningful consultation', noting no public record of how inputs changed the document had been made available to her. Policy-based evidence-making Professor Harald Winkler with the Policy Research in International Services and Manufacturing (Prism) unit in the School of Economics at the University of Cape Town (UCT) summarised the views of others and shared his thoughts about the draft plan. 'I don't think the current draft of the IRP meets the standards of a good IRP in terms of its outcome, and in terms of process.' 'The fundamental approach should be one of evidence-based policy making based on clearly stated data and assumptions,' said Winkler. Winkler, whose research includes equitable transitions away from fossil fuels and low-emission development strategies, continued, 'It's remarkably clear that this is not a least-cost plan, but even more in terms of process, the balanced plan is not logically derived from the underlying analysis. 'It's more like an exercise in policy-based evidence-making… which is the opposite of what we need, which means policy determines outcome.' 'It must be the other way around, policy must be evidence-based, plans must be based on strong evidence, and I think that was not the case.' Chris Yelland, managing director at EE Business Intelligence, said, 'The current draft IRP currently before Nedlac is deeply flawed both in terms of process and in terms of substance. In terms of collaboration, in terms of consultation and the way it's been put together, I think it's deeply lacking.' 'I take heart from one thing… We're moving from a time of prescriptive IRPs into a time of indicative IRPs because, ultimately, Eskom and government don't have the balance sheet to finance this, it relies on external finance and government and National Treasury do not have the appetite to give government guarantees, and therefore everything hinges upon the business case of the different proposals. 'It's easy to put something in an IRP like 10,000 megawatts of new nuclear power that was in IRP 2010 that never happened, and we're moving to a stage where if it does not make business sense, it will not fly. And because it will have to fly without government guarantees, and external investment will insist on a business case that makes sense for their investment… I just don't see some of the ideas put in the IRP as flying.' 'They'll be in there, but they will not happen. So, in a way, the situation is moving to a stage where it just has to make sense as opposed to being ideologically driven,' said Yelland. 'It worries me when a Minister of Energy and Electricity says long before the finalisation of the IRP that 'there will be significantly new nuclear and gas in the IRP' because it presents an ideological position as opposed to a rational position one has taken after doing a socio- and techno-economic study like the IRP should be.' DM
IOL News
07-05-2025
- Business
- IOL News
Nersa stands firm on licensing private operators amidst Eskom's court battle
Eskom contends that Nersa violated its own regulations by issuing these licences without the proper industry rules, potentially jeopardising the integrity of the electricity supply chain. Image: IOL/Independent Newspapers Banele Ginidza The National Energy Regulator of South Africa (Nersa) has expressed confidence in its decision to grant trading licences to private electricity operators, despite Eskom's legal challenge. Eskom contends that Nersa violated its own regulations by issuing these licences without the proper industry rules, potentially jeopardising the integrity of the electricity supply chain. At the core of the dispute is Eskom's frustration over licensing that permits private operators to trade electricity, diverging from the traditional path of virtual wheeling agreements. The challenge suggests a fear that these new entrants might cherry-pick the best-paying customers, leaving Eskom burdened with slower-paying clients. Nersa chairperson Thembani Bukula on Tuesday said the dispute Eskom had with the traders revolved around certain areas that traders will take the best paying customers and leave the utility with slow payers. "That dispute is one we will still see ventilated in court, if it comes to that. But the Electricity Regulation Act is very clear, you have to have a licence if you are going generate transmit, distribute, trade import and export," Bukula said. "That is what is being applied right now, but we have not seen the papers, we have heard they will bring the case' around that but as we speak they are already upto 10 traders in this country doing the wheeling." He said Nersa still awaited Eskom's virtual wheeling pilot results from which the regulator would assess and make determination of whether its proper or not. "There were issues around who collects the money and whether there is line of sight between offtaker and generator and those issues have not been finalised," he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Bukula said with curtailment rules having been approved last month, Eskom can use curtailment as an ancillary service and that the amount is in the existing Multi-Year Price Determination (MYPD) and the percentage to be applied would be determined as the process unfolds. Curtailment is expected to harness an additional 3 000MW and the process was expected to solidify over the next three years of the MYPD. Meanwhile, Electricity and Energy Minister Kgosientso Ramokgopa said the release of the updated Regulatory Rules on Network Charges for Third-Party Transportation of Energy was the most consequential intervention in South Africa's electricity sector. "It's going to help us remake the energy and electricity landscape in the country," Ramokgopa said. "It's also consistent with our objective of ensuring that we are able to achieve energy security in the country. We are able to diversify generation sources and we don't only rely on Eskom for electricity generation in the country." Conditions for third-party participation include that participants must be licensed and registered with the Nersa, power purchase agreements, connection and use-of-system agreements must be appropriately concluded and that the grid code compliance and auditable metering were required. The updated wheeling framework is aimed at supporting open access to the electricity network, which will allow consumers to choose power sources – enabling competition and lowering electricity prices. "We are democratising this space. We are not just relying on Eskom as a sole generator of electricity, there will be multiple generators of electricity. And with competition comes efficiency, comes innovation, research and investment, and we are likely going to drive the prices down," Ramokgopa said. "That's why when we talk about affordable electricity, these are part of the elements [and] the components that are going to make it possible for us to make energy affordable for everyone, including the poor and downtrodden and those that are in villages, those are who are in peri-urban areas." BUSINESS REPORT
IOL News
03-05-2025
- Business
- IOL News
NERSA establishes Electricity Market Advisory Forum to transform South Africa's electricity sector
New Electricity Market Advisory Forum launched by NERSA for South Africa's energy reform Image: IOL/Independent Newspapers The National Energy Regulator of South Africa (NERSA) has taken a significant step towards transforming the country's electricity sector by approving the establishment of the Electricity Market Advisory Forum (EMAF). This new advisory body, formed under the provisions of the Electricity Regulation Act of 2006, aims to provide expert guidance on the development and regulatory oversight of South Africa's emerging competitive electricity market. In a statement issued on Friday, NERSA's Head of Communications, Charles Hlebela, highlighted the importance of the EMAF in navigating the profound changes anticipated in the sector. 'The decision recognises the transformative shift in the electricity landscape, driven by amendments to the Electricity Regulation Act (ERA), which envisage a competitive electricity market within the next five years. 'The EMAF is a strategic move to involve stakeholders early on, fostering a robust, inclusive regulatory environment to support this transition.' Hlebela stated that the establishment of the EMAF aligns with South Africa's broader energy reform agenda, which includes licensing a Market Operator—likely to be the National Transmission Company of South Africa (NTCSA)—and the development of comprehensive Market Rules and Codes. These regulations will underpin the operation of the nascent wholesale electricity market, which introduces regulatory activities that are relatively new to the South African context, such as market surveillance and enforcement. Stakeholder Engagement and Institutional Strengthening According to NERSA, the EMAF's primary role will be advising NERSA on key regulatory frameworks, including the finalisation of Market Rules and Codes crucial for the market's launch. It added that the forum will also provide insights on the necessary enablers for a competitive market, such as licensing procedures, operational oversight, and enforcement mechanisms. Recognising the complexity and novelty of these activities, NERSA emphasised the importance of stakeholder consultation and institutional capacity building. 'An inclusive consultation process like the EMAF will help ensure all stakeholders are prepared for the evolving market. This initiative will foster readiness among industry players, regulators, and end-users alike, " said Hlebela. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕
