Energy expert punts ‘smart grid’ to MPS
SA SHOULD use the refurbishment of the energy distribution industry to think about future technologies and create a “smart grid” system, but it first had to figure out what the situation was, industry consultant Willie de Beer said on Friday.
“What we have to do is figure how to use new technologies to make the grid smarter in order to do more with less, and know where to build extra capacity in the future,” Dr Beer told Parliament’s portfolio committee on energy. The committee was conducting public hearings to find a way around the estimated R35bn backlog of supplying electricity to consumers and businesses, and the uneven supply structure of the industry.
Dr de Beer was the CEO of EDI Holdings, the government-owned entity that was supposed to run the electricity distribution system and which was disbanded by the Cabinet in 2010.
Committee chairman Sisa Njikelana said the hearings were Parliament’s initiative to find a solution. Dr de Beer said the time for analysis was over and action was needed, but proper data had to be collected about assets that were in place. He said that proper financial management had to be put in place and that ring-fencing of assets had to be imposed.
“We cannot understand the nature of this business unless we actually know what the balance sheet is. We need proper ring-fencing,” Dr de Beer said.
The electricity distribution infrastructure was now approaching the end of its design life of 50 years.
Dr de Beer said that while 2014 had been designated by the government as the year of universal electricity access, it would not be met unless strong action was taken.
“I remember when 2012 was supposed to be the year. Now you (the government) had better find another excuse,” he said.
Speakers pointed to the fact that municipalities were owed R76bn in unpaid electricity bills, which was hurting their ability to refurbish and roll out new connections.
South African Local Government Association executive director for infrastructure services Mthobeli Kolisa said the long period of uncertainty over the ownership of electricity distribution assets had contributed to underinvestment in the infrastructure.
“This added to inherited maintenance backlogs that also accumulated as a result of the country’s prioritisation of infrastructure to the unserved, rather than focusing on maintaining infrastructure that served a minority,” Mr Kolisa said.
Chamber of Mines deputy head for techno economics Dick Kruger called for the creation of a publicowned and independent company that would be regulated by the National Energy Regulator and would use its profits to maintain and extend electricity distribution infrastructure. Mr Kruger said this new company would be able to implement equitable electricity tariffs, rather than the current fractured approach.