Eskom looks at solar power solution to crisis
February 2, 2007
By Samantha Enslin
Durban – Eskom is working on plans to offer an incentive to households and businesses to install solar water heaters as one solution to South Africa’s electricity crisis.
This is due to be announced in the next few months but it is unclear how it will be structured.
Andrew Etzinger, Eskom’s general manager of investment strategy, said yesterday: “For Eskom, solar water heating is a priority … The idea is to roll it out on a large scale.”
Eskom, the Central Energy Fund (CEF) and the department of minerals and energy are working together on this project. Neither the CEF nor the department could be reached for comment yesterday.
Etzinger said: “We are looking at a long-term sustainable project around solar water heaters. There may be some form of incentive for households, commerce and industry. Incentives will be for the entire market and not only for low-cost households.”
Eskom is working on obtaining the necessary approvals from the government and the National Electricity Regulator of SA.
The average demand for electricity is 30 000 megawatts during morning peak. Households account for one-third of this demand, of which 25 percent is used to heat water. As more homes are built and more homes are electrified, demand for electricity will rise.
Etzinger said that on average it cost R3.5 million to save 1MW, compared with the R10 million it cost to build 1MW. But there are hurdles to installing a large number of solar water heaters in South Africa.
The solar water heater industry is small. Etzinger said talks were under way with industry stakeholders on costs and training people to install solar water heaters.
Installing a 200 litre solar water geyser would cost about R10 000.
It would cost about R6 000 to install an electric geyser of equivalent size.
Yoram Gur-Arie, the managing director of SunTank, which manufactures solar water heaters, said the price difference could be recovered in about two years as between 40 percent and 50 percent of a household’s monthly electricity bill would be cut if a solar geyser was used. But Etzinger said a two-year recovery period would be optimistic and it was likely to take longer.
Gur-Arie estimates that there are five local manufacturers and about three significant importers in the industry. He said the cost of importing was determined by demand, which was low at present.
Brian Jones, the manager of green energy at electricity services at the Cape Town municipality, said earlier this week that a by-law that all new buildings must be fitted with solar water heaters was likely to become effective this year.
Etzinger said Greece had installed solar water heaters on a large scale, with 50 percent of homes using this system. In most parts of Australia, rebates were offered to households that installed solar water heaters.
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10th September 2007 at 3:42 pm