Challenges and opportunities for integrating SSEG in commercial and municipal distribution networks by Christopher Gross, South African – German Energy Programme (SAGEN), GIZ
Background information on GIZ • As a governmental organisation, GIZ implements sustainable development projects worldwide on behalf of the German government • GIZ operates in more than 130 countries and employs some 20,000 staff members (with a 70 - 30% split between national and international personnel) • In South Africa, GIZ first started in 1994 and has since implemented projects with a total volume of more than EUR 550 million as part of the bilateral cooperation between Germany and South Africa • The main focus of our work in South Africa is Governance and Public Administration, HIV/AIDS, Energy and Climate In cooperation with:
Development of SSEG best practice with national departments, industry and municipalities
SSEG is here to stay
Local government embarking on SSEG
Elements of market development and integration Phase I: Market development Finalisation of national regulation documents (DOE and NERSA). Introduction of a national mechanism for SSEG registration (NERSA and distributors). Introduction of harmonized and transparent application and registration processes within distributors (AMEU, SALGA, distributors). Introduction of technical standards and guidelines to guide SSEG industry (SANS, NRS, PV Green Card). Phase II: Market integration Consideration of SSEG in national and local integrated resource planning. Market integration of SSEG. Security for SSEG investors.
Current challenges in phase I: market development - National regulatory rules not yet finalised. - Registration process for SSEG needs to be developed and introduced. - Application processes within distributors are not always harmonized due to incomplete regulatory framework, but SALGA/AMEU are coordinating. - Distributors struggle with implementation that requires changing business processes (including internal mandates), additional resources, and the development of SSEG knowledge. - Customers and SSEG industry are often unaware of policies and processes due to a lack of public communication, leading to additional bureaucracy. - National standard landscape evolving, but still lacking important elements. Consequences: 1. SSEG industry encouraged to operate outside the system leading to increasing amount of “illegal“ non -registered systems. 2. SSEG industry focusses on profitabale commercial and industrial self-consumption projects without feeding back to the network.
Opportunities in phase I 1 Introduce SSEG registration National process integrated resource planning (DOE) Power Market system integration operation (national aggregator) (Eskom SO) Relevance of SSEG registration data Network SSEG planning and market operations regulation (NERSA) (Distributors) National GHG monitoring (DEA)
Opportunities in phase I 2 Further develop and use harmonized application processes as developed by AMEU and SALGA. 1. Requirements for Embedded Generation 2. SSEG Supply Contract 3. SSEG Application Form 4. SSEG Commissioning Form 5. SSEG Decommissioning Form http://www.cityenergy.org.za/category.php?id=5#14
Opportunities in phase I 3 Communicate and inform about local SSEG policies and processes and pursue non-registered “illegal“ SSEG installations (carrot-stick approach).
Opportunities in phase I 4 Finalize standards and guidelines
Grid connection Equipment Installation Bidirectional metering (impact assessments) (inverter requirements) Standard or NRS 097-2-3 (2014) SA RPP Grid SANS 10142-1- NRS 049 (2016) guideline Code v.2.9, NRS 2 097-2-1 (2017) Challenges Covers only installations Requirements for Currently under Really valuable as it up to 350 kVA. A3 plants (100 development. promotes standardisation Simplified criteria is kW-1MW) very Unclear liability and avoids vendor lock-in. exhausted rather quickly. high. issues during But only covers smart Can only be performed sign-off of SSEG meters which are more with knowledge of all systems. expensive and require a SSEG capacity communication system to connected to the be established. Integration respective grid area. with municipal billing processes can be difficult. Opportunity Very good framework to NRS provides Once finalized a Non-smart, cheaper bi- kick-start SSEG. Need good framework thorough directional meters are also for a complementing for SSEG. framework available. guideline to perform Harmonize NRS around COCs Find balance between detailed grid impact with SA RPP grid could be required functionality, assessments. code. created, solving other benefits from smart- Challenge: SSEG and the liability meters and nice-to-have network data issues. add-ons.
Opportunities in phase I 5 Training and compliance PV Industry + Embrace PV Green Card quality label + Expand on the 10 training centres, 2 assessment centres, and 100 registered companies + Integrate with QCTO qualification landscape Distributors + Develop utility oriented SSEG training + Integration with municipal processes, make part of the mandate of distributor employees + GIZ-DOE-SALGA training support programme + Opportunity for better collaboration with PV industry (merging of municipal and industry processes)
Deadline to apply : 7 November 2018 http://sagen.org.za/support-for-municipalities
Challenges in phase II: market integration Manage the disruption! (more often referred to as the „revenue - loss debate“) Regulate two elements: Self-consumption: • Reduced retail sales (also including lost collection of cross-subsidies, revenue margins, taxes etc) • more difficult to regulate Feed-in: • Buying of excess electricity at predetermined price • easier to regulate
Challenges in phase II: market integration Eskom REIPPPP 4 GW 45 GW Generation Generation • • Energy Energy • Capacity Eskom Transmission • Single Buyer • System operation Export Energy Eskom Distributors • Utilities Intensive Distribution (Municipalities) • End users Users 32 TWh 87 TWh across the • Industrial border • Mining 15 TWh 78 TWh End users End users (SS)EG • • Residential Residential < 10 MW • • Commercial Commercial • • Agriculture Agriculture Energy • • • Rail Rail 0.4 GW
Challenges in phase II: market integration Eskom REIPPPP 4 GW 45 GW Generation Generation • • Energy Energy • Capacity Eskom Transmission SSEG is • Single Buyer perceived • System by Eskom operation clients as an attractive Export Energy Eskom Distributors and cheaper • Utilities Intensive Distribution (Municipalities) alternative • End users Users 32 TWh 87 TWh for sourcing across the • Industrial border energy • Mining 15 TWh 78 TWh End users End users (SS)EG • • Residential Residential < 10 MW • • Commercial Commercial • • Agriculture Agriculture Energy • • • Rail Rail 0.4 GW
Challenges in phase II: market integration Eskom REIPPPP 4 GW 45 GW Generation Generation • • Energy Energy • Capacity Eskom Transmission SSEG is • Single Buyer perceived • System by Eskom operation clients as an attractive Export Energy Eskom Distributors and cheaper • Utilities Intensive Distribution (Municipalities) alternative • End users Users 87 TWh – X TWh 32 TWh for sourcing across the • Industrial border energy • Mining 15 TWh 78 TWh – Y TWh End users End users (SS)EG • • Residential Residential < 10 MW • • Commercial Commercial • • Agriculture Agriculture Energy • • • Rail Rail 0.4 GW
Challenges in phase II: integration of SSEG feed-in Eskom REIPPPP 4 GW 45 GW Generation Generation • • Energy Energy • Capacity Eskom Transmission • Single Buyer / Aggregation • System operation Export Energy Eskom Distributors • Utilities Intensive Distribution (Municipalities) • End users Users 32 TWh 87 TWh across the • Industrial border • Mining 15 TWh 78 TWh End users End users (SS)EG • • Residential Residential < 10 MW • • Commercial Commercial • • Agriculture Agriculture Energy • • • Rail Rail 0.4 GW
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