Solar should shed light on new IRP

The updated draft Integrated Resource Plan (IRP), released in August, is a step in the right direction, writes Dominic Wills.

The document’s intention is to map out the least-cost electricity path, while retaining energy security and reliability. It prescribes to Eskom where its investment in generation assets should lie.

Electricity can now be generated by independent parties under the Renewable Energy Independent Power Producer Procurement programme; and developments in embedded solar photovoltaic (PV) technology have made way for a market where people can produce their own power on site.

The IRP has recognised this change and included a capped allocation for embedded generation in the new IRP.

Private companies can now save 40% for every kilowatt hour bought from embedded solar PV rather than Eskom.

As stated in the IRP, there is a flat allocation for embedded generation of 200MW a year for the next 12 years.

My assertion is that the department of energy will likely then announce that the cap has been reached, at which point Nersa would refuse any more applications. Interested parties will then need to wait until the following year.

This will be hugely problematic as it will position the regulations in direct opposition to a basic right to produce one’s own electricity.

The public will likely continue without the requisite approvals.

This will lead to an increase in illegal electricity connections.

Unregistered connections mean policymakers will have no idea how many megawatts of PV is connected to the grid, and therefore no empirical means to further update the IRP.

It is therefore crucial that the department of energy realises it can control the registration process of embedded generators, but it shouldn’t try to dictate the volume of the market.

Instead, its approach should monitor the progress of the market with a quick and easy online registration process. – Dominic Wills is CEO of SOLA Future Energy