SESSA condemns sustainable energy tariff bidding model
3 August 2011
News
Government’s plan to adopt a tariff bidding model effectively abandons the REFIT model it promulgated in 2009 and puts the local sustainable energy industry, particularly the photovoltaic sector, at a disadvantage.
That’s the opinion of SESSA, the Sustainable Energy Society of Southern Africa. Echoing the sentiments of other industry bodies, SESSA said a tariff bidding model will be detrimental to the country’s stated objectives of localisation and job creation, and the establishment of a strong local industry.
Given the current global over-capacity in photovoltaics and the strong Rand, it is likely that foreign suppliers and engineering, procurement and construction companies will dominate the rollout of projects, limiting local value-add and local long-term employment, SESSA said.
“SESSA’s photovoltaic division has been following with interest and concern the recent developments regarding the government’s planned renewable energy programme, particularly the announcement this week by the Energy Minister that a tariff bidding model is to be adopted. This effectively abandons the REFIT model promulgated in 2009,” said Uwe Klingenberg, head of SESSA’s photovoltaic division.
“Of special concern to SESSA is the exclusion altogether of smaller scale (below 1 MW) photovoltaic systems from renewable energy rollout, despite NERSA (National Energy Regulator of South Africa) promises that it would form part of the mix.
“SESSA, with over 100 members – mostly smaller businesses – involved in photovoltaics, strongly believes that a framework needs to be put in place to facilitate the rollout of smaller grid-connected photovoltaic systems. These rooftop commercial and residential installations will allow for more broad-based photovoltaic industry participation.”
Klingenberg pointed out that the German model of distributed smaller and medium sized systems has successfully led to the development of a strong and sustainable photovoltaic industry in the country, with substantial job creation across a spectrum of supply of goods and services.
He suggested a significant portion of the IRP2010’s target of achieving 300 MW per annum using photovoltaic systems should be diverted to medium and smaller scale installations, and more distributed applications in South Africa. In addition to creating broad-based and sustainable employment, and contributing to skills development and entrepreneurship especially at the SME and SMME level, this would address the advantages of distributed generation, he said.
For more information contact Uwe Klingenberg, SESSA, +27 (0)11 513 4071.
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