AMITH SINGH: Embedded generation: the next vital developments to an energy-secure SA

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Eskom alone cannot manage the demand and everyone has a part to play to resolve our ongoing energy crisis

04 July 2022 - 14:17There is interest from energy consumers looking to access electricity through embedded generation from predominantly renewable energy projects. The interest has ranged from smaller on-site projects to large off-site projects where the electricity will be wheeled across the national electricity grid, from the generating project to wherever the consumer is located in SA.

Given the renewed focus on climate-related issues for a number of corporates, it is also expected that more corporates would look to either develop embedded on-site clean energy sources where possible, or use wheeling as a source of procuring clean energy. Renewable Energy Independent Power Producer Procurement Programme style terms. In the corporate & industrial energy space we are also starting to see projects proposing to have multiple power purchase agreements with an aggregate model being established.

Though the Northern Cape grid is at capacity, we are now seeing developers exploring other provinces such as North West, Free State and Limpopo, which demonstrates that developers still consider SA to be a key destination for energy investments.

 

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