{"id":687655,"date":"2023-05-12T14:51:07","date_gmt":"2023-05-12T12:51:07","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=687655"},"modified":"2023-05-12T14:51:07","modified_gmt":"2023-05-12T12:51:07","slug":"eskom-to-pay-r3-million-for-every-megawatt-saved","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/687655\/eskom-to-pay-r3-million-for-every-megawatt-saved\/","title":{"rendered":"Eskom to pay R3 million for every megawatt saved"},"content":{"rendered":"<p>Electricity minister Kgosientsho Ramokgopa says that Eskom is getting ready to ramp up its demand-side energy management (DSM) programme to help ease pressure on the national grid.<\/p>\n<p>According to Ramokgopa, his team is getting ready to meet with the South African Property Owners Association (SAPOA) to discuss measures that can be implemented to help conserve power.<\/p>\n<p>He said that Eskom is extending its DSM programme to commercial and residential users, which will contract qualifying groups to assist Eskom in load curtailment.<\/p>\n<p>The programme is currently running with the industrial sector, which sees big energy users cut off as much as 20% of their power usage when requested to ease demand. In turn, the contracted groups get a financial incentive.<\/p>\n<p>Ramokgopa said that the financial incentive that will be offered through the programme is<strong> R3 million for every megawatt spared<\/strong>. He said the programme will be moving forward, and only qualifying and &#8220;deserving&#8221; groups will receive the incentive.<\/p>\n<p>The applicants will provide the baseline, and relative to this baseline, the energy saved will be incentivised.<\/p>\n<p>All applicants will be independently reviewed and verified, he said, and the proposed baseline will be carefully analysed to prevent abuse or &#8220;leakage&#8221;.<\/p>\n<p>The minister said that the DSM will become vital heading into December as it&#8217;s easier and cheaper to manage household demand &#8211; and it&#8217;s faster.<\/p>\n<p>&#8220;Once we aggregate the number of organisations and households participating, we are likely to see this coming to fruition rapidly,&#8221; he said, adding that this will ensure demand reduction during specified peaks.<\/p>\n<p>Through the DSM programmes, Eskom has so far been able to avert national stage 7 and stage 8 load shedding.<\/p>\n<p>While the group had shed between 6,000MW and 7,000MW on several days over the last few months, it has managed to keep load shedding schedules at stage 6 by only shedding 6,000MW from the grid and reducing the balance through DSM load curtailment.<\/p>\n<p>Electricity-intensive organisations are subjected to four stages of load curtailment:<\/p>\n<ul>\n<li><strong>Stage 1 and stage 2:<\/strong>\u00a0companies are required to reduce 10% of their power consumption<\/li>\n<li><strong>Stage 3:<\/strong>\u00a0companies are required to reduce 15% of their power consumption<\/li>\n<li><strong>Stage 4:<\/strong>\u00a0companies are required to reduce 20% of their power consumption<\/li>\n<\/ul>\n<p>He said that a lot of municipalities are on board with demand-side management, but noted that to cut one stage of load shedding, <strong>around 200,000 households need to commit to the programme<\/strong>.<\/p>\n<p>There will also be another push in residential areas to boost rooftop solar.<\/p>\n<p>The minister said that SAPOA has around 100 million square metres of rooftop space available for energy generation. But its own calculations, using just 50% of this space could secure 9,500MW in generation capacity.<\/p>\n<p>This wouldn&#8217;t require state funding, he said, as the commercial banks can be approached for this &#8211; but the government needs to work to resolve issues like feed-in tariffs and other regulatory issues. This is being processed by the National Energy Crisis Committee (Necom), he said.<\/p>\n<p>As winter approaches, however, South Africa&#8217;s energy demands require urgent action.<\/p>\n<p>Necom and energy regulator Nersa and moving ahead with three programmes to secure 3,800MW of new generation capacity &#8211; however, in the immediate term, Ramokgopa said that Eskom is moving to secure at least 400MW on energy through its &#8220;standard offer programme&#8221;.<\/p>\n<p>This is in place to try and mitigate some of the load shedding issues in winter, where the energy demand is expected to hit between 34,000MW and 37,000MW.<\/p>\n<p>The programme will see extra megawatts sourced from generators like the privately-owned Kelvin Power Station in Johannesburg as well as with assistance from large industry players like Sasol.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/energy\/686261\/how-eskom-continues-to-dodge-stage-7-load-shedding\/\" rel=\"bookmark\">How Eskom is dodging stage 7 load shedding \u2013 for now<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Power utility Eskom is turning to estates, residential areas and commercial customers to cut demand and spare the grid.<\/p>\n","protected":false},"author":10,"featured_media":671609,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[26],"class_list":["post-687655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/687655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=687655"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/687655\/revisions"}],"predecessor-version":[{"id":687711,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/687655\/revisions\/687711"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/671609"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=687655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=687655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=687655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}