Latest news with #R8.4
The Citizen
9 hours ago
- Business
- The Citizen
Homeowners caught in solar registration grey zone
While City Power encourages voluntary solar registration, homeowners remain confused as Eskom and municipalities apply different rules. There is still uncertainty surrounding registration of home solar systems, with either Eskom or municipalities, as Johannesburg's City Power confirms its meter readers are scouting for the locations of such systems. Randpark residents said this week that meter readers had been asking about solar power systems and had been seen photographing rooftop solar panels on houses. City Power begins checking solar systems City Power spokesperson Isaac Mangena said City Power was in the process of registering small-scale embedded generation systems such as rooftop solar photo-voltaic installations. 'While registration is not yet being enforced, customers are strongly encouraged to begin the process voluntarily to ensure compliance with National Energy Regulator of SA (Nersa) regulations,' he said. Mangena said meter readers visiting households were conducting standard meter audits that may include noting the presence of rooftop solar panels or related infrastructure. 'This is part of routine data collection,' he said. Mangena said City Power was developing measures to identify unregistered systems in the future, including the possible use of satellite and drone-based detection, he said. 'There is currently no official or forced registration drive underway,' he said. An off-grid does not have a connection that ties the generator to the Eskom electricity distribution network. This type of configuration does not need authorisation from Eskom or Nersa registration. Information and graphics: Eskom 'Grid safety' Mangena said Nersa's licensing threshold was 100kVA, which means systems below this capacity are exempt from requiring a generation licence. However, this does not exempt them from the obligation to register with the distributor, in this case, City Power. 'The focus on smaller suburban setups is aligned with national guidelines and City Power's obligation to maintain grid safety, stability and visibility of all systems connected to its network. ALSO READ: South Africa gets R8.4 billion loan to help fix and improve its energy sector 'Even small systems can pose risks such as back feeding, phase imbalances or grid disturbances if not registered and properly integrated,' he said. Mangena said about 1 100 systems have been voluntarily registered. 'City Power is working to simplify the process. Registration requires customers to submit documentation, including a certificate of compliance, single-line diagram and a completed electricity supply application form. 'Once the installation is inspected and approved, the customer may qualify for a smart bi-directional meter, which will allow for both consumption and feedback tracking,' he said. Generation systems already connected to the grid can take advantage of battery storage. This means being able to store solar energy generated during the day and using it at night. Information and graphics: Eskom Eskom and City Power have different registration routes Eskom launched a campaign in April to help residential owners of small-scale embedded generation systems, including photovoltaic installation systems, comply with the National Energy Regulator of South Africa (Nersa) regulations. These regulations require all owners in Eskom-supplied areas to register with Eskom. Eskom has, however, referred owners of solar systems in non-Eskom-supplied areas to their local municipality. Eskom's registration demands rejected While Organisation Undoing Tax Abuse (Outa) CEO Wayne Duvenhage said Outa would challenge Eskom's decision, AfriForum has added fuel to the fire and maintained that Eskom's registration requirements for grid-tied solar power systems have no legal basis. AfriForum local government affairs manager Morné Mostert said Eskom could not threaten or force people to register their systems through statutory requirements, nor fine them. Mostert added that Eskom wants its hands on people's data – potentially for solar tariffs in the future. AfriForum advisor for local government affairs Deidrè Steffens said what frustrates people is that Eskom's underperformance over the past few years has forced people to install solar panels, especially industries and farmers, who had to do it for survival. ALSO READ: Are municipalities failing — or are residents just unable to pay? Why many are turning to off-grid living In this generator network configuration, any surplus generated energy may be exported into the type of grid-tied generator connection requires Eskom authorisation and registration with Eskom or Nersa. Information and graphics: Eskom Concerns over high costs and engineer bottlenecks 'It has already cost them a lot of money. Now they will have to pay an extra R20 000 to R50 000 for the engineer's certificate,' she said. Steffens said it didn't make sense for an engineer to inspect a small solar system, adding that Eskom's requirement that small-scale embedded generation systems customers get an electrical engineer registered with the Engineering Council of SA to sign off on the system was not a prescribed requirement. 'The enforceable National Rational Standards say nothing about the requirement for engineer sign-off; it primarily speaks of an accredited technician who must sign off on the system.' Steffens warned that it could create a bottleneck because only a handful of electrical engineers are available across the country to inspect installations. She said the requirement would cause a big bottleneck in registrations. More confusion as municipalities apply own rules Association for Renewable Energy Practitioners president Carel Ballack said each municipality has its own rules. 'There are 177 municipalities that can sell power. Eskom is just one of the utilities that have its own rules for connection,' he said. Ballack said it depended on the municipality and on how thoroughly an installation has been done. 'If you were to register through Eskom, that will be about R2 500 for the administration fee and then Eskom will send someone to look at the infrastructure. They'll probably change the meter. That's R6 000 and upwards. 'Then you must have other compliances in place. If you don't have an engineer sign-off, that can set you back R4 500 for the line diagrams and sign-off.' NOW READ: Identifying the bugs in SA's long-promised infrastructure boom
The Citizen
11 hours ago
- Business
- The Citizen
What Eskom's solar registration campaign means
Eskom and City Power insist solar registration is vital for protecting infrastructure and planning the country's future energy mix. In its campaign to get households to register their solar systems, Eskom emphasises that 'unauthorised grid-tied generators can endanger the lives of operating staff, the environment, equipment and the quality of electricity supply'. Association for Renewable Energy Practitioners president Carel Ballack said the registration was a safety function. 'If the municipality shuts down power in the area to maintain the electrical infrastructure, they needed to know whether there was a chance that a generator [tied to the grid] would start up somewhere and the changeover switch wouldn't function and the generator would push power back to the municipal supply line,' he said. Ballack said regulator Nersa utilised generation capacity to determine the energy mix for the power supply going forward. 'They use the growth of solar to determine how the mix is going to affect all the other sources they have,' he said. Nersa's data supports energy planning, not taxation – yet 'We would be able to argue that we could use that data to apply taxes,' Ballack said. 'But to understand that, you would have to look at different municipalities and that each municipal region had its own rates and those rates had to be approved by Nersa. Nersa is not necessarily the entity that would be taxing users for using the electrical infrastructure,' he said. ALSO READ: South Africa gets R8.4 billion loan to help fix and improve its energy sector Ballack said the issue was that electricity has become a human right. 'You have at the bottom of the income chain those who are getting electricity for free because it is a human right, while Eskom has to maintain the infrastructure for the portion,' he said. 'There's a percentage of the population that doesn't pay for electricity at all and the issue is that those who can pay are being burdened to pay for those who can't.' Proper registration stressed City Power spokesperson Isaac Mangena said the organisation had an 'obligation to maintain grid safety, stability and visibility of all systems connected to its network'. 'Even small systems can pose risks such as back feeding, phase imbalances, or grid disturbances if not registered and properly integrated,' he said. Mangena said registration ensured technical compliance and protects both customers and infrastructure. He said everyone with solar – regardless of size – had to register. 'All customers with solar PV systems connected to City Power's grid are required to register their systems, regardless of the size or capacity,' he said. ALSO READ: City Power denies claims its headquarters raided by Hawks 'This applies to grid-tied and hybrid systems. The registration process allows City Power to assess technical specifications, ensure the installation meets safety and regulatory standards and avoid potential risks to the grid. 'Even if a system does not export energy back to the grid, registration is still required to ensure full visibility of energy generation within the network.' Mangena said City Power will not provide bi-directional meters at no charge and customers will be responsible for the cost of the meter and its installation. These would enable customers who had spare generation capacity to feed back into the grid – and be paid for it. Implementation timelines Mangena said the procurement of a service provider to implement the feed-in tariff incentive is still underway, and would take four to six months once the service provider is appointed, after which further implementation timelines will be communicated. City of Tshwane spokesperson Selby Bokaba said: 'Customers who are not interested in back-feeding energy into the grid are still required to register their systems with the municipality by completing the relevant application forms. 'Although the city encourages customers to feed excess energy into the grid, only customers with installed bi-directional meters can export excess energy into the city's grid.' NOW READ: Ekurhuleni mayor to suspend electricity tariff hike after protests in Thembisa
The Citizen
25-07-2025
- Business
- The Citizen
South Africa gets R8.4 billion loan to help fix and improve its energy sector
The money will be used to support the implementation of the Just Energy Transition (JET). South Africa has secured a $474.6 million (approximately R8.4 billion) loan from the African Development Bank (AfDB) to support the country's energy sector transition efforts. The National Treasury stated on Thursday that the money will be used to support the implementation of the Just Energy Transition (JET). JET is a strategic shift towards a low-carbon economy, specifically focusing on reducing reliance on fossil fuels, particularly coal, while ensuring a fair and equitable transition for those affected by the change. ALSO READ: SA's just energy transition: Why investing in gas is a bad idea Second loan with AfDB This is the second loan that the Treasury gets from the AfDB. This first one was concluded in 2023. 'This new agreement highlights the importance of South Africa's partnership with the AfDB in advancing South Africa's development agenda.' Treasury believes that this loan will strengthen efforts to improve energy security measures, accelerate the decarbonisation of the economy, and enhance socio-economic benefits of the energy transition, thereby enabling inclusive economic growth and fostering job creation. Loan is part of third Development Policy 'The loan is part of the third Development Policy Operation which includes participation from the World Bank, KFW Development Bank, Japan International Cooperation Agency, and the Organization of the Petroleum Exporting Countries Fund for International Development (OPEC Fund) to support structural reforms to enhance the efficiency, resilience, and sustainability of the country's infrastructure services,' read the statement. One of the JET's key aspects is transitioning away from fossil fuels, especially coal, towards renewable energy sources such as solar and wind, and exploring other low-carbon technologies. ALSO READ: 'There is hope' for SA's Just Energy Transition despite concerns about funding gap US withdraws from JET Partnership In March, the US withdrew from the Just Energy Transition Partnership (JETP), leaving SA in need of about $1.56 billion (about R28 billion) for its JETP financing. The United States government had pledged $1.56 billion for the country's decarbonisation during the Joe Biden presidency. 'This funding either needs to be found elsewhere or SA's climate change programme will need to be reprioritised,' said Professor Raymond Parsons from the North-West University Business School. NOW READ: SA's R1.5 trillion Just Energy Transition Investment Plan unpacked
IOL News
25-07-2025
- Business
- IOL News
South Africa secures R8. 4bn loan from AfDB to accelerate Just Energy Transition
Treasury said the agreement marked a pivotal step in South Africa's ongoing efforts to implement the Just Energy Transition (JET), a plan designed to enhance the efficiency, resilience, and sustainability of the country's infrastructure services. Image: EPA/RITCHIE B. TONGO South Africa has inked a 15-year, $474.6 million (around R8.4 billion) loan agreement with the African Development Bank (AfDB) in a bid to bolster its energy transition efforts, the National Treasury announced on Thursday. This crucial financing is part of the third Development Policy Operation and comes with collaboration from key international players including the World Bank, KFW Development Bank, Japan International Cooperation Agency, and the Organization of the Petroleum Exporting Countries Fund for International Development (OPEC Fund). Treasury said the agreement marked a pivotal step in South Africa's ongoing efforts to implement the Just Energy Transition (JET), a plan designed to enhance the efficiency, resilience, and sustainability of the country's infrastructure services. It said this loan agreement echoed the first policy loan secured earlier in 2023, reinforcing South Africa's commitment to sustainable development through an energy-inclusive strategy. The partnership with the AfDB is positioned as a cornerstone of South Africa's development agenda, seeking to improve energy security measures while accelerating the decarbonisation of the economy. Not only does this agreement have the potential to drive meaningful structural reforms, but it also aims to increase the socio-economic benefits associated with the energy transition, ultimately facilitating inclusive economic growth and fostering job creation. 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 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. Next Stay Close ✕ Reflecting on the partnership, Treasury expressed profound appreciation to the AfDB for its unwavering support of South Africa's development objectives. It noted the significance of implementing critical reforms in the energy and transport sectors, which are essential to advancing the goals of the Just Energy Transition, while fulfilling foreign currency commitments at lower interest rates. As South Africa works towards a sustainable energy future, this substantial financial backing from the AfDB signals renewed hope and opportunity for a nation striving to navigate the complex challenges posed by climate change and economic disparity. It underscores the collaborative efforts required to facilitate an energy sector transformation that benefits all South Africans. BUSINESS REPORT
IOL News
01-07-2025
- Business
- IOL News
African Development Bank approves R8. 4bn million for SA's green growth programme
Cooling towers at an Eskom coal-based power station in Duhva. The AfDB funding, designed to bolster the country's transition to a low-carbon economy, is a vital component of South Africa's ongoing efforts to enhance its energy landscape amidst pressing challenges. Image: Mike Hutchings/Reuters The African Development Bank (AfDB) Group has approved a $474.6 million (around R8.4 billion) loan earmarked for South Africa's Infrastructure Governance and Green Growth Programme (IGGGP). This funding, designed to bolster the country's transition to a low-carbon economy, is a vital component of South Africa's ongoing efforts to enhance its energy landscape amidst pressing challenges. The IGGGP represents the second phase of the bank's strategic backing for a Just Energy Transition in South Africa, following the success of the earlier $300 million Energy Governance and Climate Resilience Programme, approved in 2023. This prior initiative succeeded in reinforcing financial stability whilst expanding renewable energy capacity throughout the nation. Structured around three crucial pillars—transforming energy security through power sector restructuring, promoting a low-carbon and just transition, and enhancing transport efficiency—the IGGGP is poised to catalyse South Africa's green transformation and drive inclusive, resilient growth. Finance Minister Enoch Godongwana heralded the bank's assistance, emphasising the critical nature of this partnership. 'Our country faces the significant challenge of energy shortages, leading to loadshedding, as well as significant transport bottlenecks, which have been detrimental to growing our economy and achieving our developmental aspirations,' Godongwana said. 'With your partnership, our government has committed itself to stay the course and implement these critical reforms in the energy and transport sectors, while endeavoring to achieve our international commitments on climate change and our JET objectives.' The IGGGP is not only about transforming the energy sector; it also focuses on fostering green industrialisation, creating jobs, and developing skills, specifically by supporting initiatives in electric vehicle manufacturing and green hydrogen production. According to recent International Monetary Fund estimates, South Africa's Just Energy Transition could enhance the country's GDP growth by between 0.2 and 0.4 percentage points annually from 2025 to 2030. 'This approval represents more than financing — it's a blueprint for Africa's energy future,' said Kennedy Mbekeani, AfDB's director general for Southern Africa. 'South Africa's success in building a just, green, and inclusive energy system demonstrates that sustainable development and economic growth can go hand in hand.' The financing package includes targeted grant components aimed at promoting energy efficiency initiatives and advancing rail sector reforms. Key priorities will focus on accelerating vertical separation and establishing an investment framework designed to revitalise South Africa's freight and logistics systems. This, in turn, is expected to enhance the transport sector's competitiveness and foster regional integration, which is critical for economic growth across the Southern African Development Community. As one of Africa's more advanced economies and a pivotal regional power, South Africa's triumph in its energy transition could inspire similar shifts continent-wide. Its experience in integrating renewable energy, modernising its grid, and implementing effective transition policies will prove invaluable for other African nations exploring sustainable development avenues. Moreover, the initiative includes comprehensive environmental and social safeguards, with a pronounced emphasis on gender and youth empowerment. Women are projected to constitute 70% of the beneficiaries of the expanded Social Employment Fund, while specialised youth skills programmes will prepare the younger generation for forthcoming opportunities in the burgeoning green economy. The success of the IGGGP aligns with multiple United Nations Sustainable Development Goals, including affordable and clean energy (SDG 7), decent work and economic growth (SDG 8), industry, innovation, and infrastructure (SDG 9), and climate action (SDG 13). This landmark financing from the AfDB is part of a robust international financing package amounting to $2.78bn, which includes $1.5bn from the World Bank, €500 million from Germany's KfW, up to $200m from Japan's JICA, and an anticipated $150m from the OPEC Fund. Such coordinated funding exemplifies the global importance of South Africa's energy transition, particularly in light of its G20 presidency. The programme is in line with the nation's updated Nationally Determined Contributions under the Paris Agreement, which aim for greenhouse gas emissions reduction to between 398–510 million tons of CO₂ equivalent by 2025 and 350–420 million tons by 2030. BUSINESS REPORT
