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: 1.Introduction 2.Opportunities in South Africa (SA) 3.Dutch/European System of Distributed Generation (DG) a.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 DistributionNUON, Essent, Eneco “Dealers”GreenChoice, Nederlandse energie bedrijf, 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 Generation Solar Systems Solar panel roof installation

9. Dutch/European System of Distributed Generation Solar Systems Typical 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 Difference1000 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 Difference2000 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 Systems Example 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 Metering A 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

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 You Questions?