Browsing by Author "Rhode, Aiden"

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    The potential of photovoltaics and battery energy storage to address declining electricity price margins within South African municipalities
    (Stellenbosch : Stellenbosch University, 2024-03) Rhode, Aiden; Nicholls, Christo; Bekker, Bernard; Stellenbosch University. Faculty of Engineering. Dept. of Electrical and Electronic Engineering.
    ENGLISH ABSTRACT: This thesis explores the impact of Photovoltaic (PV) and Battery Energy Storage Systems (BESS) interventions in both municipal and private entity contexts on the municipal Electricity Price Margin (EPM). The research journey begins with a comprehensive literature review that provides various NERSA regulated tariff-setting methodologies such as benchmarking, for ensuring the sustainability of regulated municipal electricity businesses. It also investigates the challenges faced by municipalities, particularly concerning their electricity margins. By establishing the extent of the electricity price margin problem, the study highlights the potential applications of Distributed Energy Resources (DERs). To ensure a holistic investigation, a case-study design was adopted to investigate the potential of PV and BESS to address declining electricity price margins. This consisted of utilising PV and BESS interventions to reduce municipal cost of supply by means of implementing energy arbitrage and demand reduction strategies. The use of Homer in conjunction with Excel allowed for the sizing, simulation, and financial analyses of PV and BESS intervention in a municipal and private context. Two case studies were designed for municipal PV and BESS design and analyses to establish the impact the respective technologies could have on the municipal EPM. A third case study was introduced for designing and analysing the impact private BESS could have on private operations and the municipal EPM. The results of the simulations done in the case studies highlight the following: PV and BESS interventions can improve municipal EPM. However, given the base case EPMs of 36.17% and 43.76%, the interventions investigated within the case studies were unsuccessful in improving municipal EPM to the desired NERSA EPM benchmark. Even though the PV and BESS interventions improved municipal EPM to similar degrees, the analyses highlighted the importance of investigating the financial feasibility of the various interventions. A noteworthy result was that private ownership of BESS marginally improved municipal EPM but contrastingly reduced municipal electricity sales revenue. System sizing and ownership of the interventions as well as the tariff structure are critical factors to the improvement of EPM. Future research should explore the technical analysis of applicable intervention integration into distribution networks, the influence of different funding models, and the effectiveness of addressing additional NERSA performance indicators.