1. Cogeneration
24 July 2013

2. Agenda
Who we are
Challenges
Benefits & Constraints
Wheeling
Recommendations

3. Who we are - Infographic

4. Challenges

5. South Africa’s Challenge is Formidable Co Generation?
Long Road to
Less Carbon

6. Why Co Generation? One of the most effective GHG Mitigating Options for Industry/Mining

7. Why Co Generation? Improves Energy Efficiency

8. The Global Challenge Is to find ways to Change the Nature of Growth!

9. Cogeneration Reduces Energy Intensity

10. Benefits & Constraints

11. Co-generation Types Own Use Sell Produce on site Produce at energy
source,
To National
Buyer
Wheel to a customers
& use
at site
wheel to use at site
“Bilateral”

12. Benefit/Burden for South Africa from Eskom and IPP Generators
Neutral
Burden
Own Generating
On Site
Own Generating
Off Site
Bilateral
Generating to sell
To Entries of State
Eskom
RISK
Planning
Regulatory
National Price Path
Use of Tx/Dx System
Load/Supply Balancing

13. Constraints on Co-generation Investments
Non-Eskom
Eskom
Level of Constraint
Low
Own Use
Sell
Some
High
Produce on site
Produce
at energy
source,
To National
Buyer
Wheel to a customers
Very High
& use
at site
wheel to use at site
“Bilateral”
Issue
Guaranteed Cost Recover
Sovereign Guarantees
Protection against Risk
Wheeling
Source: EIUG
No Policy to Promote
Co-generation Policy

14. Constraints through the Tariff Methodology
2011
BUT
It gets Worse
Source: AT Kearny ; Various government and company sources

15. Preventing IPP entry into RSA with Tariff Methodology
Source: Derived from Eskom MYPD3 Submission

16. RECOMMENDATIONS Recognise the full benefit to RSA
Framework to promote Co-generation
Recycle “Environmental” Taxes to promote.
Fair Equitable Wheeling Charges & Arrangements:
Eskom and,
Municipalities
Simple, Quick, Fair and Equitable Processes