Page 19 - AfrElec Week 20 2022

AfrElec RENEWABLES AfrElec

Citizen-owned solar,

wind plants could ‘save’

Johannesburg’s City Power

SOUTH AFRICA JOHANNESBURG’S struggling electricity “In that way, the residents actually own the
distributor City Power could be turned around cash flows or dividends of those wind and solar
by purchasing wholesale electricity from large- plants and, at the same time, City Power could
scale, citizen-owned solar and wind plants, Engi- turn a loss of about a third of a billion rand a year
neering News reported. into a profit of between ZAR3bn and ZAR4bn
The move would end load-shedding and a year on the electricity distribution business,”
boost the green credentials of its manufacturing he said, as quoted by Engineering News, a South
industry, energy specialist Clyde Mallinson said. Africa-based publication.
Mallinson, director at Virtual Energy and City Power could then use the profits to
Power (VEP), which develops storage-backed repair, grow and strengthen the distribution
renewable energy projects, proposed that City grid, he said. It could also use some of the savings
Power purchase 80% of its wholesale electricity to make electricity less expensive for those strug-
from solar and wind generation plants located gling to afford current tariffs, which continue to
anywhere in the country at costs below that pur- rise, said Mallinson.
chased from Eskom currently. The plan is that poor citizens would be lent
Such a system, he said, could be progressively money, at highly concessional rates, to make the
built between now and 2035 at a yearly cost of investments and that the dividends should be
$6bn. According to Mallinson, it would deliver sufficient to ensure that the bond can be repaid
stable electricity to meet current demand, as well within ten years. Mallinson expects the contin-
as an abundance of low-cost surplus electricity. ued dividend stream to be equivalent to about
Mallinson was a guest speaker at the annual three or four times the current ZAR350 monthly
general meeting (AGM) of the South African COVID relief grant.
National Energy Association (SANEA) on The expert suggests that the city can pass on
May 18. The virtual AGM was held ahead of the the green credits associated with that electricity
Energy Indaba scheduled to take place on May to businesses that want to remain competitive,
23-24. He said City Power was currently record- particularly those involved in export industries.
ing yearly losses of about ZAR300mn ($18.8mn), “So, we actually have a solution where the
owing to various technical and non-technical municipalities are going to save on the whole-
losses, including “outright theft” sale price of electricity and have space to allo-
The expert’s idea is that citizens of Johannes- cate those savings to the poor and pass on the
burg subscribe to green bonds to finance the green benefits to business,” said Mallinson. “It
construction of these renewable-energy plants, will also end load-shedding, which is in every-
which could be run by professional operators for one’s interest and the dividends from these
a fee and held as City Power assets on behalf of plants will flow into the pockets of the people of
residents. Johannesburg.”™

Week 20 19•May•2022 www. NEWSBASE .com P19