1. Sustainable & Cheap & Reliable
Electricity
An Implementation Strategy for Net Metering
By David Lipschitz
My Power Station Technology
28th August 2012
Phone: 021 551 9935; 074 119 3246
david@mypowerstation.biz; skype: MyPowerStation
(c) My Power Station Technology cc 2012
Permission is given to copy parts of this presentation as long as the author is acknowledged 1
2. Why I’m here
• I’m asking people to join me in a business
venture that will save us all money
• We get to critical mass when we reach 50,000
residences
– At 50,000 residences out of 14 million we become
one of Eskom’s biggest customers / suppliers
• To discuss:
– Grid Parity and Net Metering
– Virtual Power Stations and Smart Grids
– Business, Homeowner Responsibility
– Government Responsibility
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3. Grid Parity And Net Metering
• Grid Parity
– Repayments on our installed systems cost the
same as buying electricity
– We become Power Producers economically
• Net Metering
– A payment system
– Different types of “Net Metering”
• Buy and sell at the same price
• Buy and sell at different prices
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4. Reaching Grid Parity in July 2012
Graph in Rand per kWh (ex VAT) (Also at Grid Parity inc VAT)
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5. Fix your price and save
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6. Virtual Power Stations & Smart Grids
• Virtual Power Stations
– A collection of small power producers and
consumers look like a Normal Power Station in the
grid
• Smart Grids
– Intelligent, computerised, dynamic, electricity
grids
– The user tells the grid what it needs
– The grid tells the user what is available
– Price changes depending on demand and supply
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7. Business / Homeowner Responsibility
• Can we help?
• How?
• Why?
• What do homeowners need?
– Cheap, reliable electricity (on demand)
• What does business need?
– Cheap, reliable electricity on demand
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8. Government’s Responsibility
• “Government should create an enabling
environment to allow renewable energy
technologies to compete with fossil-based
technologies.”
Government’s White Paper on Renewable Energy, 2003
• With electricity growth at 3% per annum,
Eskom meets half of the electricity demanded.
With coal, oil, nuclear, we can never catch up
with the demand.
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9. Government
• So, has government created an enabling
environment?
• If not then because:
– Myopia?
– Changing the rules? Too many rules?
– Greenwashing?
– Electricity revenue?
• Up to 95% of some cities income
• 60% of city of Cape Town’s income; up from 40% 5
years ago
– Lack of insight into the possibility of South Africa
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10. The Cities
• Worry about losing revenue due to
homeowners, etc, making their own electricity
• What model allows cities to make more
money with Renewable Energy than with
Fossil Fuel Energy?
• What about City growth?
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11. Let’s look at “the gap”
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12. What’s electricity for anyway?
• It’s an enabler to get the economy moving
• The cost of unserved energy: R70 / kWh
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13. Electricity Challenges
• For City Dwellers without electricity, NO:
– Water, Banking, Petrol, Transport, Food, Life
– Only 4 days of food in the supply chain
• Everything we do depends on electricity
– We need security of supply
– We need price certainty
• So, how do we:
– Create security of supply? Quickly?
– How do we start reducing prices? Quickly?
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14. Why are electricity prices increasing rapidly?
At 3% electricity consumption growth
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16. World Energy Growth Rates by Source
Percent Annual Average Growth
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17. Contacts
• David Lipschitz, My Power Station
– Phone
• 021 551 9935 (W); 074 119 3246 (C)
– Email
• david@mypowerstation.biz
– Web
• http://www.mypowerstation.biz
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South Africa has gone from being one of the cheapest electricity countries to one of the most expensive. Our electricity is already more expensive than electricity in China, India, and even in Austin, Texas! Comparing the price of electricity in Dollars. And taking account of cost of living, electricity is much cheaper overseas.
Calculate what you would spend if the price was constant for the next 20 years. Bank: how much will you give me if I can pay you R1000 per month?
Based on 3% Compound Annual Growth Rate in electricity since 1990. We have 38 GW, and we should have 80 GW. The 42 GW is in China!
South Africa has gone from being one of the cheapest electricity countries to one of the most expensive. Our electricity is already more expensive than electricity in China, India, and even in Austin, Texas! Comparing the price of electricity in Dollars. And taking account of cost of living, electricity is much cheaper overseas.
Imagine life without electricity.
South Africa is the 37th fastest growing country in Africa! Everything we do depends on electricity. David Murrin / research tells us we need electricity, population growth and resources
Cut it to a minute
In 2011 Capacity Installed: China 18GW; Doubled every year 2005 to 2009; Total Installed Wind Capacity Worldwide in 2011: 41,000 MW! World Wide Wind Total Installed Capacity: 238,000 MW (238 GW)
If the whole world is growing with new tech, then why are we still focused on old tech
Overcome peoples’ inertia and their unwillingness to change. I have a technique that will fix your electricity to the price you are spending today.