Grid Access Unit Small and Micro Generator frame-work key focus areas

1. Grid Access UnitSmall and Micro Generator frame-work key focus areas Date : 18 April 2013

2. . Small and Micro-Generation (<1 MW) Framework Areas to be addressed Measures to be put in place Aspiration (2013) Cost Recovery Establish clear accountability • Set up an additional leg to the GAU to manage service relationship, stakeholder management and interfaces related to SMG’s • Define and implement technical rules for evaluation, connection and operation. • Establish resource capability to integrate SMG’s across business • Develop an optimised IPP connection process • Define operations process for SMG • Establish pricing policy and cost recovery framework • Build IPP intelligence framework and capability (inside and out) Engagement with Industry/ Munics Improve Eskom’s image and reputation in dealing with SMG’s Technical requirements (Eskom Technology and Dx) Process excellence,application, quotation, contracting Achieve non-discriminatory grid access for SMG’s Database Effective organization with process excellence in SMG connection and operation Help desk and Organisation

3. . Small and Micro Generation Types Own Use Supplemental/ Energy Banking/Offset Third Party Wheeling Own Use/ Load Reduction Gen Gen Customer Gen Customer Meter (Gen) Meter (Gen) DB DB Meter (Load) Meter (Load) Distribution Network Distribution Network Distribution Network Less than 1MW installed capacity and zero export at all times Category 1: less than 350kW export Category 2: greater than 350kW export

4. Key Stages Process and System to cater for multiple access points Application Evaluation Customer Quotation and Contracting Physical connection established Process and resource interface for key stages Call Centers • DOE Application • IDM RE application • Self Gen Application Walk in Centers GAU Application Investigation and Engineering requirements assessment Energy Advisors Licensing and power purchase agreement applications Budget Quotation for connection Connection and Use of System Agreement Process Discrimination for <350kW Establishment of new supply agreement Process Discrimination for >350kW Validation / PPA approval Monthly Reconcilliation of Account Upfront Costs Customer Relationship Management Project Management & Construction of POC

5. Engagement with Industry / Municipalities • Engagement with SABS on regulation of NRS 097 -2 standards, NERSA with respect to licensing, and DOE with the FIT’s • Establish process for IDM renewable program integration • Establish process used by large Munics and Metros • Establish process for roll out SMG by DOE • Integration with SALGA and AMEU

6. Technical Requirements • Technical Planning guideline for connection available • Resource and operational execution challenge • NRS 097 – 2 complete and implementable • Operational change management – DX (Wires) system integration • Resource and training requirements • Certification process and contractor accreditation • Pilot sites for billing reconciliation • Billing system adequate for pricing policy • Update of Embedded Generation Standard • Purchase Contract settlement • Single Buyers Office integration – Budget management and monthly settlements • Metering technology available • AMI integration • SPU application only technically possible but with system limitations • PPU application not possible currently

7. Thank you