Mitigation of financial losses from small-scale embedded electricity generation in Drakenstein Municipality

Date
2021-12
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH SUMMARY : South Africa has seen an increase in interest in alternative clean energy in recent years from higher-end electricity consumers, mainly due to environmental concerns, the load capacity of the country’s electricity generator and also the decreasing cost of alternative electricity especially rooftop photovoltaic systems. Drakenstein Municipality implemented a mixed generation tariff in the 2015/2016 financial year that gave consumers the choice and opportunity to generate their own electricity and feed it into the municipal electricity grid for a consumption credit. This study attempts to find an alternative tariff structure to lessen the potential financial losses associated with the rapid uptake of Small-Scale Embedded Generation (SSEG) through roof Photovoltaic (PV) systems in Drakenstein Municipality. The objective of the study is to determine: (1) the basis of the current mixed distribution tariff structure of the municipality, (2) determine the level of cross-subsidisation of lifeline electricity consumers and (3) ultimately devise and propose an alternative tariff structure that will lessen financial losses for the municipality. However, in order to fully understand the phenomenon of mixed electricity distribution, the relevant literature and legislation related to the topic will be explored as the non- empirical component of the study. The secondary data sets of the municipality that is related to electricity purchases and sales were analysed to determine the core drivers and assumptions of the current electricity mixed distribution tariff of the municipality. The results of the analysed data were supplemented with interviews with relevant experts within Drakenstein municipality to enable the proper interpretation of analysed data. The results that were obtained from the analysed data were interpreted and used to determine if the municipality’s tariffs are able to mitigate the future possibilities of revenue losses. The conclusion made is that the municipality has with their tariff changes in the 2019/2020 financial year decreased the future financial losses that could have resulted from the introduction of Small-Scale Embedded Electricity Generation (SSEG).
AFRIKAANSE OPSOMMING : Suid-Afrika het die afgelope paar jaar 'n toename in belangstelling in alternatiewe skoon energie gesien by hoërverbruikers van elektrisiteit, hoofsaaklik as gevolg van omgewingsprobleme, die laaivermoë van die land se elektrisiteitsopwekker en ook die dalende koste van alternatiewe elektrisiteit, veral dak fotovoltaïese stelsels . Drakenstein-munisipaliteit het 'n gemengde opwekkingstarief in die boekjaar 2015/2016 geïmplementeer, wat verbruikers die keuse en geleentheid gegee het om eie elektrisiteit op te wek en in die munisipale elektrisiteitsnet in te voer vir 'n verbruikskrediet. Hierdie studie poog om 'n alternatiewe tariefstruktuur te vind om die potensiële finansiële verliese wat verband hou met die vinnige opname van Kleinskaalse Ingebedde Opwekking (SSEG) deur dak Fotovoltaïese (PV) stelsels in die Drakenstein-munisipaliteit te vind. Die doel van die studie is om (1) die basis van die huidige gemengde verspreidingstariefstruktuur van die munisipaliteit te bepaal, (2) die vlak van kruissubsidiëring van lewenslyn-elektrisiteitsverbruikers te bepaal en (3) uiteindelik 'n alternatiewe tariefstruktuur te ontwerp en voor te stel wat finansiële verliese vir die munisipaliteit sal verminder. Om die verskynsel van gemengde elektrisiteitsverspreiding ten volle te begryp, sal die relevante literatuur en wetgewing wat met die onderwerp verband hou, egter as die nie-empiriese komponent van die studie ondersoek word. Die sekondêre datastelle van die munisipaliteit wat verband hou met die aankoop en verkope van elektrisiteit is ontleed om die kerndrywers en aannames van die huidige elektrisiteitsgemengde verspreidingstarief van die munisipaliteit te bepaal. Die resultate van die geontlede data is aangevul met onderhoude met relevante kundiges in die Drakenstein-munisipaliteit om die ontlede data behoorlik te interpreteer. Die resultate verkry uit die ontleding van data is geïnterpreteer en gebruik om vas te stel of die munisipaliteit se tariewe die toekomstige moontlikhede van inkomsteverlies kan versag. Die gevolgtrekking gemaaak was dat die munisipaliteit met die tariefveranderings gemaak in die boekjaar 2019/2020 die toekomstige finansiële verliese as gevolg van die bekendstelling van Kleinskaalse Ingebedde Opwekking (SSEG) verminder het.
Description
Thesis (MPA)--Stellenbosch University, 2021.
Keywords
Capital losses -- Management -- Drakenstein Municipality -- Boland (South Africa), Distributed generation of electric power -- Drakenstein Municipality -- Boland (South Africa), Building-integrated photovoltaic systems -- Drakenstein Municipality -- Boland (South Africa), UCTD
Citation