FUTURE IPP’s CAN BENEFIT FROM EXISTING EUROPEAN NET METERING SYSTEMS.

1. FUTURE IPP’s CAN BENEFIT FROM EXISTING EUROPEAN NET METERING SYSTEMS. Johan Woudstra (THU) jbwoudstra@hhs.nl & Ben Groenewald (CPUT) groenewaldb@cput.ac.za 15 - 16 August 2012 ICUE Conference Protea Hotel, Stellenbossh

2. Contents: • Introduction • Opportunities in South Africa (SA) • Dutch/European System of Distributed Generation (DG) • Solar and Wind Systems • Cost & Savings • Payment of Energy delivered back to the Grid • Permits • b. Metering Systems • Analogue and Digital Smart Metering (Billing System) • c. Integration of Solar and Wind Systems into the Grid • 4. Conclusion

3. Opportunities in South Africa (SA) • Two acts direct the planning and development of the country’s electricity sector: • The Electricity Regulation Act (ERA) of 2006 (No. 4 of 2006). • The National Energy Act of 2008 (No. 34 of 2008).

4. Opportunities in South Africa (SA) • August 2009, Department of Energy (DoE) gazetted Electricity Regulations on New Generation Capacity under the Electricity Regulation Act (ERA). • The New Generation Regulations established: • Rules and guidelines applicable to the undertaking of an IPP Bid Programme • Procurement of IPP’s for new generation capacity • Facilitation of fair treatment and non-discrimination between IPP’s and the buyer of the energy.

5. Components of Dutch Electricity Grid • ProductionNuon, Essent, Electrabel, Delta, E.ON - (65% of market) • TransportTenneT • Distribution NUON, Essent, Eneco • “Dealers”GreenChoice, Nederlandse energiebedrijf, Nuon, Eneco, Atoomstroom, etc.

6. Distributed Generation Technologies Used • Solar • Wind • Water?

7. A typical IPP supply system connected to the national grid

8. Dutch/European System of Distributed GenerationSolar Systems Solar panel roof installation

9. Dutch/European System of Distributed GenerationSolar SystemsTypical Solar installation on a farm in Spain

10. Government Grants for Solar Panels/Farms From 2 July 2012 – December 2013 Applicants get 15% of the cost of the Panels Up to a maximum of 650 euro (R6500)

11. Basic Compensation for Solar Power Generation(Government Regulation) Dealers must compensate your own use up to 5000 kWh/year When you use 5000 kWh and you produce 5000 kWh you have to pay nothing This means: Solar kWh price is ± 0.20 euro

12. Payment Example No. 1(per year) Used 4000 kWh Produced solar 3000 kWh Difference 1000 kWh (due by customer) Consumer pays: 1000kWh x €0.2 = €200 1000kWh x R2.00 = R2000

13. Payment Example No. 2 Used 4000 kWh Produced solar 6000 kWh Difference 2000 kWh (customer over supply) Payment received: 2000 kWh x €0.07 = €140 2000 kWh x R0.70 = R1400 Price produced solar energy: €0.07/kWh = R0.70/kWh

14. Payment Example No. 3 Used : 8000 kWh Produced solar: 6000 kWh To Pay: (8000-5000) kWh x €0.20 = €600 Compensation received: 1000kWh x €0.07 = €70 Total amount due by customer: €600 – €70 = €530

15. Payment Example No. 4 Used 7000 kWh Produced solar 8000 kWh To Pay (7000-5000) kWh x €0,20 = €400 Compensation received: 3000 kWh x €0,07= €210 Total amount due by customer: €400 – €210 = €190

16. Permits for Solar Installations Depending on local government rules Most cases no permit necessary Only when you change the look of your roof

17. Dutch/European System of Distributed Generation Wind SystemsExample of a horizontal axis wind turbine

18. Example of a vertical axis (Darius) wind turbine

19. Wind Turbines on a farm

20. In the future we will have enough energy but no food!!

21. Government Grants for Wind Turbines • Generally No Grant for small scale Wind Turbines < 15 kW • Local governments do have there own system • Dealers must compensate your own use up to 5000 kWh/year (government regulation)

22. Grants for Large Wind Turbine >15 kW SDE = Stimulation (Duurzame) Sustainable Energy Complicated arrangement but it guarantees a basic payment per kWh Depending on the market price you get a grant

23. Investment and Profit for Large Wind Turbines Cost of 3 MW Wind Turbine : ± 4.6 million euro Repayment period: 15 years Electricity produced over 15 years: ± 8 million euro The profit is ± 1.2 million euro = ± 80 000 euro/year

24. Permits for Wind Turbines • Environment and building permits are required • In urban areas wind turbine heights are restricted to no higher than 18m (local government rules may dictate otherwise) For large wind turbines it is difficult to obtain a permit. Can take years to obtain a permit due to regulations and procedures.

25. Dutch/European System of Distributed Generation MeteringA Typical “Draaistroommeter” (Ferraris meter)

26. Typical Smart meter used in the Netherlands

27. Example of a settlement for the solar energy production of a year

28. Example of a grid tie inverter

29. Example of a grid tie inverter

30. Typical Grid Tie Inverter specifications • Model GTI-500W • AC Output Voltage Range 190V ~ 260V • AC-output Frequency Range 46Hz ~ 65Hz • Total Harmonic Distortion <5% • Power Factor 0,99 • DC-Input Voltage Range 14V ~ 28V • Peak Efficiency 94% • Stand-by Power <0,5 W

31. Conclusion Clear that there are opportunities for IPP’s Distributed Generation (DG) can lighten the supply load on Eskom without affecting profit margins Recently 28 IPP licenses were approved by NERSA – shows SA’s commitment to encourage independent power generation Much can be learned from the Dutch/European System!

32. Thank YouQuestions?