Group Five, one of Kayema’s major shareholders achieves highest rating for carbon disclosure

Group Five has achieved the highest rating of a JSE Top 100 listed construction company in the 2011 Carbon Disclosure Project (CDP). Local carbon advisory firm, Promethium Carbon, achieved a first when three of its clients including Group Five were placed in the top ten of the JSE Top 100 CDP report.

Promethium director Harmke Immink said that since 2000 the CDP has, on behalf of its signatory investors, encouraged the world’s largest companies to measure and report their carbon emissions. “This year, CDP was backed by 551 institutional investors holding US$71-trillion in assets under management with questionnaires to the world’s largest companies asking them to report on their carbon emission,” said Immink.

“To address carbon reduction, Group Five implemented a total quality management culture that underpins every aspect of its operations and reinforces the centrality of sustainability,” said Celia Becker, country risk director at Group Five. A ‘green team’ was established covering all operating divisions and is responsible for the identification of opportunities and risks resulting from climate change. In addition Group Five has commented on the Green Paper on Carbon Tax directly and was also invited to participate in the carbon tax impact study to be performed by Treasury.

Demand for green buildings are increasing

She said the demand for green buildings is on the increase, and internal procedures are continuously evolving to accommodate this. “Becoming a leader in green buildings and acquiring a stake in the associated products for green buildings will aid in Group Five’s reputation of becoming a greener construction company, and result in actual emission reductions when implemented in construction projects.”

Another strategic business decision was the creation of the project development team in the energy division, dedicated to renewable energy. The role of this team is to play a bigger role in the early stage development of potential projects.

Group Five is also a founding member of the Green Building Council of South Africa (GBCSA). This council aims to lead the transformation of the South African property industry to ensure that all buildings are designed, built and operated in an environmentally sustainable way.

Local Is Lekker With Kayema Energy And Ikhwezi Solar

A new service agreement between Kayema and East-London based manufacturer Ikhwezi Solar (Pty) Ltd starting November is great news for consumers. Kayema now offers a 100% locally manufactured high quality solar water heating system to the South African market using Ikhwezi’s panels, the first next-generation collector to be manufactured locally, making solar energy even more affordable for South African households and large-scale commercial applications. Ikhwezi plans to contribute 66000 panels a year to Government’s goal of 1 million systems by 2014. The Ikhwezi/Kayema partnership is also good news for the country, with the creation of hundreds of new jobs on the horizon. Ikhwezi Solar is owned by the Ikhwezi Investment Group, which has a 63% black shareholding. Kayema has installed domestic systems under group schemes for the staff of many of SA’s large corporations, has designed and implemented some of SA’s largest commercial solar water heating systems and was awarded the SAEE 2010 ‘Energy Company of the Year’.

25 Degrees Magazine: Spotlight on solar water heaters with insights from Kayema GM, James Shirley

Volume 6, Number 5 – Oct/Nov 2011
25 Degrees in Africa – Solar Water Heating
The spotlight on solar water heaters
The South African government sees solar water heaters (SWH) as the ideal way
of providing hot water to communities without the burden of water-heating
monthly bills. The large-scale introduction of SWH’s is a means to reduce
the demand for energy on the national grid.
The solar water heater (SWH) rebate programme has been in existence since
2008, and is funded from the NERSA-approved demand-side management (DSM)
budget. This is in support of the Department of Energy’s drive to install
one-million solar water heaters in five years.
To date, 72 257 low-pressure solar water heaters (LP SWH’s) have been
installed since 2008, adding up to a total of R344.7-million. A total of 29
449 high-pressure solar water heaters (HP SWH’s) have been installed in this
time, adding up to a total of R172.8-million.
Currently, solar water heaters are a hotly-debated subject. Therefore 25° in
Africa puts the spotlight on the SWH market and spoke to some key players,
regarding this matter.
How has the solar water heating market changed since 1997?
James Shirley, general manager of Kayema Energy Solutions: South Africans
paid only 12c per kWh and Eskom had a 25% reserve margin. Solar water
heating in South Africa was reserved for areas with no power supply or those
who purchased for purely environmental reasons.
Solar water heaters are a critical investment for every household, and
reduce the peak load on Eskom significantly.
The benefit of reduced peak demand is that Eskom would not need to load-shed
as often, and stations and network transmission/distribution components can
be powered down to allow for more regular maintenance, increasing their
lifespan.
Eskom’s DSM programme has also put rebates in place to assist end-users and
commercial clients to make the investment even more financially viable and
the decision to go solar even easier.
Barry Bredenkamp, operations manager at the National Energy Efficiency
Agency: The solar water heater market has changed radically, and due to
various factors such as increasing electricity prices, a more general
awareness on “green” issues, various incentive programmes on offer and
obviously, the rolling black-outs South Africa experienced in 2008. Improved
quality of SWH-technologies has also assisted in overcoming consumer
resistance and/or fear of the technology.
Lea Smith from Institute of plumbers South Africa (IOPSA): The market has
changed drastically, and for obvious reasons. The problem is the fact that a
growth spurt resulted in opportunists who did not care for the solar
plumbing industry. These people only came to pillage the industry and
weren’t interested in adding value to this market.
Dylan Tudor-Jones, the Managing Director of Solar Heat Exchangers: In 1997,
the ROI for a solar water heater was much longer due to cheap and abundant
electricity. It was therefore much harder to convince people to do the right
thing by investing in SWH and sales volumes were lower.
How has load-shedding in 2008 influenced the SWH market?
Shirley: Load-shedding has highlighted the importance of energy-efficiency
to average South Africans. While highly annoying and inconvenient, it has
forced companies and homeowners to take action to reduce both their
consumption and monthly electricity bills, and led to increased sales of
solar water heating systems since the electric geyser is a major consumer of
household electricity.
The increased demand has led to hundreds of solar water heating companies
springing up all around the country, creating many new jobs, and existing
plumbers learning the new skills required to install SWH systems.
Tudor-Jones: The load-shedding in 2008 and the Eskom Solar Rebate Programme
have been the catalysts to the rapid growth of the SWH industry. However,
with the growth have come additional challenges. Consumers are now spoilt
for choice with 250 products (high- and low pressure) as well as 600
suppliers. Apart from too many options, consumers experienced a lack of
education surrounding the various technologies available. To add to this,
the current rapidly growing supplier base also needs to be educated to
prevent making the same mistakes of the past. The mass product failures,
regarding the 2010 frosts has definitely caused some negative public
sentiment towards the technology.
How long will Eskom’s rebate programme last?
Shirley: It is unclear exactly how long the rebate programme will last.
However, it was confirmed by Mr. Andrew Etzinger of Eskom on 30 June 2011,
that additional funding was made available for the SWH programme and that it
would continue for the moment.

The rebate values have already been reduced this year, and the numbers of
systems that each supplier may submit for rebate each month have been
limited in order to increase the amount of time the programme can run for.
For those still sitting on the fence about whether or not to convert to
solar water heating, I would recommend that they do so sooner rather than
later in order to ensure their rebate.
Smith: I really can’t say, but what I can say is that the solar rebate
budget is completed for the year. However, they are running a special
reduced rebate.
Bredenkamp: According to my knowledge, the rebate in its current form will
not last beyond 2011 unless a significant amount of additional funding is
secured for this purpose.
Tudor-Jones: When the money runs out?
How will Eskom replenish the money spent on the rebate programme?
Shirley: Unfortunately I can’t speak for Eskom (or NERSA). However, it is my
opinion that should the programme continues any additional funds would be
taken from the ever-increasing electricity prices.
Rewarding those who switch and penalizing those who choose not to switch to
solar (or at least a heat pump) seems to me like the best way to go while
our country is experiencing an energy shortage.
Bredenkamp: As consumers of electricity, the onus currently will rests on us
to pay back the money for this rebate program. Even if the funding model
changes from a tariff-based levy, we (as tax payers), will end up paying
through a treasury/fiscal allocation.
Smith: The idea is simple, subsidise solar systems which reduces load on the
electrical grid. With a reduced load there is no need for power stations.
Subsidising solar is cheaper than building a power station.
According to Frost and Sullivan, the SWH market experienced volatile growth
between 2007 – 2010 that was plagued by malfunctioning products,
fly-by-night companies and incorrect installations. Do you agree? If so why?
Do you disagree? If so why?
Shirley: I agree strongly that the SWH market has experienced volatile
growth. Unfortunately, many South Africans have paid good money for bad
systems on terrible advice from people trying to make a quick buck on solar
water heating.
A solar water heater should be selected based on reliability, service and
applicability to your needs (much like any other investment), rather than on
price.
Many of the systems that were brought into South Africa, while perhaps being
applicable to another country’s environmental conditions, were not relevant
to our local temperatures, weather patterns and water quality.
These factors have led to overheating in summer, freezing in winter,
bursting due to pressure or rapid component deterioration due to chlorinated
water – all of which have done damage to the name of the industry as a
whole. Even worse than this, though, is the poor quality of installation and
total lack of understanding of how the systems work by unqualified (and many
supposedly “qualified”) installers.
Regulations and industry bodies are in place to deal with this. However, it
is very difficult to police those operating outside of the rules unless
something catastrophic happens and the matter comes to the attention of the
ombudsman.
The good news is that we are now seeing fewer and fewer different
manufacturers in the market – those who are surviving and doing well seem to
be coming from “real” companies who have a long-term plan and will be around
long enough to honour their warranties.
Bredenkamp: Probably before 2007, when there were no Standards in place
and/or a test facility at the SABS.
Smith: I fully agree. The problem is the fact that a growth spurt resulted
in opportunists who did not care for the solar plumbing industry. These
people only came to pillage our industry and weren’t interested in adding
value to this market.
Tudor-Jones: I do agree. The Solar Water Heating Division of SESSA reported
at the March 2011 AGM that membership grew from 272 to 510 in 12 months.
They also reported that 168 members had resigned in the previous 8 months. I
know of a reported +/- 1000 collectors which failed during the June 16th
2010 black frost. This is one incident which caused many casualties within
the industry and does not include other issues of overheating and the like
that has also occurred since the influx of vac-tubes into the market.
How are building codes and regulations influencing the SWH market?
Shirley: SANS 10400X has now been promulgated, which means that within a few
months it could become law for any new building that at least 50% of the
water heating must be done by non-electric resistance means.
Since SWH is not applicable to every home or business, the client also has
the option to achieve this by, amongst others, using heat pumps or
installing a heat-recovery system.
It is becoming more important for developers, architects, specifiers, QS’s
and consulting professionals to develop an understanding of the functioning,
and advantages and disadvantages of each, and of which systems are available
in the market that they would recommend to their clients.
Bredenkamp: The regulations have only just been published and once properly
up-and-running, will have a positive effect, i.e. the requirement that where
hot water is provided, a maximum of 50% by volume can be supplied by the
traditional electrical-resistance water heater and 50% must be from a
renewable resource.
Smith: The building codes and regulations impacted the SWH market
drastically.
Tudor-Jones: We haven’t seen any impact as of yet, but we will see a
positive influence once the new SANS10400 PartXA2 becomes mandatory in Feb
2012.
Karel Deist, Head of Laboratory Solar – SABS: These standards are there to
support the market in a positive way. The standards and regulations protect
the end user against possible abuse and claims about the functionality of
these systems.
You have various standards and regulations that govern the installation of
SWH’s like the Occupational Health and Safety act (OSH), the National
Building Regulations and Installation codes.
There are two important clauses dealing with this matter in the said
Occupational, Health and Safety Act. The first one is clause 10 which states
the following:
General duties of manufacturers and others regarding articles and substances
for use at work
(1) Any person who designs, manufactures, imports, sells or supplies any
article for use at work shall ensure, as far as is reasonably practicable,
that the article is safe and without risks to health when properly used and
that it complies with all prescribed requirements.
(2) Any person who erects or installs any article for use at work on or in
any premises shall ensure, as far as is reasonably practicable, that nothing
about the manner in which it is erected or installed makes it unsafe or
creates a risk to health when properly used.
(3) Any person who manufactures, imports, sells or supplies any substance
for use at work shall.
(a) Ensure, as far as is reasonably practicable, that the substance is safe
and without risks to health when properly used.
(b) Take such steps as may be necessary to ensure that information is
available with regard to the use of the substance at work, the risks to
health and safety associated with such substance, the conditions necessary
to ensure that the substance will be safe and without risks to health when
properly used and the procedures to be followed in the case of an accident
involving such substance.
(4) Where a person designs, manufactures, imports, sells or supplies an
article or substance for or to another person and that other person
undertakes in writing to take specified steps sufficient to ensure, as far
as is reasonably practicable, that the article or substance will comply with
all prescribed requirements and will be safe and without risks to health
when properly used, the undertaking shall have the effect of relieving the
firstmentioned person from the duty imposed upon him by this section to such
an extent as may be reasonable having regard to the terms of the
undertaking.”
The second very important regulation that one should keep in mind is as per
the SA Government Gazette no. 22355, Notice No. 509 and Regulation no 7079
dated 8 June 2001.
Every consumer must comply withSABS/0252: Water supply and drainage for
buildings and SABS/0254: The installation of fixed electric storage water
heating systems, or similar substituting re-enactment or amendment thereof
if the consumer installation is of a type regulated by either standard.
This legislation requires that all new geyser installations and replacement
geyser installations performed after the 8th June 2001 must be in accordance
with the specification, which requires the installation to have a geyser
drip tray with overflow pipe piped to the exterior of the building. Vacuum
breakers must be installed on the hot and cold water supply and the overflow
from the safety valve and expansion relief valve must be piped to the
exterior of the building.”
What are the advantages of SWHs?
Shirley: The three main advantages of solar water heating are:
• They are reliable, especially thermosiphon systems which have no moving
parts. Incorrect installation or a total lack of maintenance is the most
common source of systems failing to produce hot water. Electric controllers
ensure that during periods of extended rainfall, or the very cold winter
days, the system reaches the desired temperatures.
• They are durable. Many systems offer 10 year guarantees, and flat-plate
collector technology has been proven over the past 30 years to operate very
well in conditions similar to South Africa. Clients can be certain, as long
as they invest with a reputable company, that they will certainly see a
great return on investment.
• They save money. It is not often that people get the chance to do
something that is good for the environment, good for society AND saves money
every month – a real triple threat.
Bredenkamp: The biggest advantage is the fact that we get to harness free
energy from the sun and generally would have accessible hot water during
times of extended power outages.
Smith: Renewable energy and lower energy costs are major advantages to SWH.
Tudor-Jones: The purchase of a quality solar water heater is a proven means
to save electricity, therefore money and our environment. They are built to
last and therefore have an excellent life cycle savings compared to that of
an electrical geyser. When comparing prices, the difference in cost between
the lower end, five year warranty models and the proven, ten year warranty
models is about R5000. This may seem like allot, but when you consider that
this is only one extra year of savings on your ROI in four years time,
compared to doubling your warranty, then the investment in quality is
absolutely worth it.
What are the disadvantages of SWH?
Shirley: High capital costs for a good system have been a major disadvantage
and slowed the sales of SWHs in South Africa. Finally there are attractive
financing options available for selected systems, and the monthly
installments can be offset by the savings. Instead of asking “how much does
the system cost?” can clients now ask “how much can I put back into my own
pocket every month?”.
Aesthetic reasons have also been a bump in the SWH rollout process. Two
years ago, we used to hear the term ugly almost every day. Now, however,
many homes display their systems proudly and most of our clients are
actually glad to show their neighbours that they are smart enough to install
a system.
Bredenkamp: SWH’s don’t always achieve the expected savings, i.e. very
dependent on the elements and human behavior. Another disadvantage is that
if something does go wrong, the consequential damage to property can be
quite significant.
Smith: The disadvantages of SWH’s are the fact that it is complicated to
install. There is a need for a higher plumber skill base, and for the last
15-years our plumbing skills base has been eroded due to the lack of
training. One can also say that another disadvantage is the fact that the
technology is complicated and the consumer does not always understand the
lifestyle shift. Another disadvantage is the fact that there were too many
fly-by-night companies selling one thing and the consumer not getting the
product that was promised to them. Thus the SWH market got a bad name.
Tudor-Jones: They are not always suitable for all applications due to
shadowing, roof type, orientation, inclination and often aesthetics. They
also have a higher capital cost than conventional geysers.
Where are the trends heading for SWH?
Shirley: The take-up on SWH has been slower than expected around the
country. However, the general public is now far more aware of the options
available to them. While many people want a SWH and understand all of the
benefits, there has been no need to switch. More than half of our clients
are people who have been quoted previously, and only made the decision to
switch when their electric geyser had burst and a replacement system was
necessary.
Every time the electricity price increases, sales volumes also spike – and
so long as it remains “cheaper” to install a solar water heater than to use
an electric geyser, the local market will continue to grow.
A couple of years ago it was very difficult to install an on-roof system in
South Africa, since home owners were concerned with the aesthetics of
systems. Recently, however, this has not been an issue and more and more
clients are opting for thermo-siphon systems because of better cost and
reliability over the split options.
Bredenkamp: Personally, I believe we will ultimately see more of a move
towards heat pumps in the middle-to-high income market sectors. They are
more reliable, predictable and ultimately more energy-efficient.
Smith: It is my opinion that the SWH trend is moving downwards. I strongly
feel that heat pumps will become the new solar solution.
Tudor-Jones: More up-market and environmentally-conscious homes will install
SWH whereas more middle-income, money-conscious homeowners will go for heat
pumps.
How long does a SWH last?
Shirley: A good SWH has a design lifespan of 20 years or longer, and should
have a warranty on physical components of 10 years – this ensures that every
owner will benefit financially over an electrical geyser, even if financed.
Flat-plate collector systems have been installed in many countries around
the world since the early 1980’s, many of which are still in existence
today. A poorly designed or installed system, however, may only last two
years. It is critically important that suppliers, installers and clients
understand exactly what each system does and the impact that various
environmental, water and time-of-use conditions have on each, so that they
can offer the best advice and make.
Bredenkamp: Depending on the specific quality of the system, but generally
the panels should last between 15 to 20 years and the reservoir tank five to
ten years.
Tudor-Jones: Some better quality, proven brands can last up to 20 years.
Cheaper models have been known to last between five to ten years. If ones
return on capital is only in year four for instance and there is a risk of
having to replace the unit or a major component of the unit in year five,
then the investment in a higher priced, better quality and longer lasting
unit becomes favorable.
Are we seeing more SWH products imported or locally manufactured? Why?
Shirley: While there are still more imported systems available than local
products, we are now seeing more and more locally manufactured components
and complete systems in South Africa. There are several reasons for this:
• In order to stimulate local employment and keep South African funds in SA,
Eskom’s rebate structure is changing to allow for greater rebates for
systems with a higher local content.
• The Department Of Trade and Industry is offering assistance for setting up
local factories in order to stimulate local employment.
• There are now sufficient skills in South Africa to ensure that quality
standards are met (and exceeded in many cases).
Bredenkamp: Definitely imported, and this has got to change if we really
want SWH’s to make a significant impact to the South African economy through
local job creation, etc. However, price and quality will always be the key
determinant and it remains a challenge to compete with China in this regard.
Smith: Most of our SWH’s are imported, and this is simply because no South
African manufacturer in their right mind will invest in such a market. What
surety does South African manufacturers have, if they put capital in for
factories and manufacturing lines etc, when their own government and
parastatals do not support South African products.
Tudor-Jones: There are still more imports. Local content specifications may
change this in future. Until there is less choice and a strong single
supplier emerges, local producers will continue to struggle.
How do insurance companies play a role in the SWH market, if any?
Bredenkamp: Some of them are coming to the party, but the challenge remains
that when a conventional geyser fails, the home owner basically wants the
general situation relating to access to hot water resolved, without delay.
If one first has to “think” about the pros and cons of SWH vs a conventional
heater (cost, electrical back-up, aesthetic impact on the roof, etc.), the
majority of customers opt to go for what they originally had installed.
Smith: Insurance companies play a massive role in the SWH market. They have
a capture market, however the problem is that SWH’s do not fit into their
models, i.e. the client wants hot water and they want it now, not later –
SWH on average has a lead time of three to five days.
Tudor-Jones: Most major insurers have chosen reputable suppliers and proven
brands as optional replacements when geysers fail but the uptake by the
insured is still very low. I feel the insurance industry holds the key to
turning around our solar industry as it makes the most sense to convert to
solar when a big chunk of your capital cost is covered by your insurance
company.
25° in Africa would like to thank James Shirley, General Manager of Kayema
Energy Solutions, Barry Bredenkamp, Operations Manager at the National
Energy Efficiency Agency, Lea Smith from the Institute Of Plumbers South
Africa, Dylan Tudor-Jones, Managing Director of Solar Heat Exchangers, and
Karel Deist Head of Laboratory, Water Meters and Solar – SABS, for their
contribution to this article.

South Africa Needs to move to 100% Renewable Energy Scenario

Recently Greenpeace published a report which shows that South Africa needs to move to a 100% renewable energy mix scenario to avoid catastrophic negative economic and social impact and to benefit from clean energy.

When will Solar be Cheaper than Coal?

As anyone in the energy game will tell you, it’s all about price. What is the Levelised Cost of Energy or LCOE? the LCOE is represented into a per unit price of energy or kilowatt hour or kWh. There are literally hundreds of data points that determined the kWh price of energy. Most discussions revolve around the initial capital expense of building the equipment to generate electricity however in reality its actually the ongoing financing and operating costs including fuel costs that have a far greater impact on the kWh price since the kWh price takes into account the life time that each generating system has. When we are talking about power stations such as solar, coal, gas or nuclear this can by from 20 to 50 years. Imagine the cost of all that fuel.

When one looks at a comparison between solar and coal the main difference is that coal power stations need ongoing supplies of fuel/coal in order to it to operate whereas solar has free fuel in the form of sun radiation. Thus if we can understand better the future price of coal, perhaps we can predict when solar power will become cheaper than coal.

Recently GE’s Global Research Director Mark M. Little said that GE will soon be able to produce electricity at prices that are cheaper than current coal power stations.

First Solar believe it will be able to compete with conventional electricity generation within 3 years.

These discussions of course don’t take into account the enormous health costs of coal burning power stations. Recently a Harvard Medical professor coauthored a paper that the health costs of coal power in the US alone is more than $500 billion.

SA Electricity On Track to Becoming Most Expensive in The World

The ‘2011 International Electricity Report and Price Survey’ by NUS Consulting Group recently published shows that South African Electricity is on track to becoming one of the most expensive in the world.

According to the study “South Africa 27.8% increase was also the highest recorded in the 2011 survey, but the country was not alone in implementing increases of more than 20%. Germany and Finland’s costs increased by 24.8% to US18.56c/kWh and US12.11c/kWh respectively, the UK recorded an increase of 24.5% to US15.10c/kWh, while Poland’s cost rose 21% to US11.87c/kWh”.

Kayema Nominated for a SANEA ENERGY Project of the Year AWARD 2011

Kayema’s Standard Bank Hybrid Solar and Heat Pumps Project nominated for a SANEA ENERGY AWARDS 2011 Awards to be announced at a Ceremony & Gala Dinner taking place on 25 August 2011

Today it was announced that Kayema’s project completed for Standard Bank at their head quarter building in the CBD of Johannesburg was nominated for the SANEA ENERGY PROJECT AWARD 2011

Kayema Energy Solutions designed, installed and commissioned a solar-heat pump hybrid system at Standard Bank’s head office complex in Johannesburg. The system, commissioned in November 2010, is expected to reduce electricity demand by around 500 000kWh per year.According to James Shirley, General Manager of Kayema, Standard Bank took the initiative to fund the project themselves, as part of their drive to take a strong leadership role in SA and reduce the electricity demand of their buildings. The results of this project will have far reaching effects, both in terms of energy savings, and as proof to other organizations that the technologies work well pay for themselves. Having set the example on a corporate level, the Bank have subsequently rolled out a scheme allowing special rates for staff members wishing to install solar water heaters at their own homes.

Kayema Energy Solutions Secures Exclusive Deal with Global Leader in Smart Grid and Energy Management and Sub Metering Solutions

Johannesburg, South Africa – Today it was announced that Kayema Energy Solutions (PTY) Ltd. of South Africa secured the exclusive agency for SATEC Ltd. targeting the commercial and residential markets in South Africa. Through this deal, Kayema is able to offer a complete energy management, billing and sub metering solution including software, hardware and services to commercial clients such as shopping malls, office buildings and complexes. Amongst SATEC’s clients include De Beers, Intel, ABB, General Electric, ExxonMobil, WalMart, Verizon Wireless, Anglo Coal, Carlsberg Breweries, Southern Sun Hotels, Monash University, Westfields Retail and Property Group and more.

Managing Director of Kayema Energy Solutions Dr Dino Petrarolo stated that “Using the SATEC platform, Kayema Energy Solution is able to provide clients in South Africa a full range of solutions including billing, sub metering, electricity demand reduction and power quality monitoring. We are excited to be joining with the SATEC team to provide these services to the South African market which are geared to maximizing revenue and profitability for property owners while at the same time reducing electricity costs. Energy management is especially critical now more than ever considering the latest price increases by Eskom of more than 25%”. Based on statements by Eskom executives, these price increases are expected to continue at this rate until 2014 and thereafter at rates that are significantly above inflation.

About Kayema Energy Solutions

Kayema Energy Solutions (PTY) Ltd. is a leading engineering integrator of large scale commercial and residential Solar Water Heating solutions in Southern Africa. Kayema provides know how and experience that is unrivaled in the region when it comes to executing large scale renewable energy and energy efficiency projects in South Africa having completed projects for the Legacy Resorts Group, Investec and Standard Bank. Our shareholders include Group Five Ltd. www.g5.co.za one of the largest publicly traded engineering firms in Africa. Kayema was awarded South African Association for Energy Efficiency 2010 Energy Company of the Year Award Winner for its ground breaking performance. For more details, please see www.kayema.co.za.

About SATEC Ltd.

SATEC Ltd. is a global leader in the research, development and manufacturing of energy management and power quality solutions. With 25 years of rich experience in energy management and a presence in more than 60 countries around the world, the SATEC team has the technological expertise to deliver flexible solutions for customer applications worldwide. All SATEC devices comply with world-acknowledged regulations and are supported by SATEC’s energy management software. SATEC’s on-line service, eXpertpower, collects, archives and analyses energy and power quality data. eXpertpower allows multiple users to view data, create automated billing, produce sophisticated reports and implement energy saving plans. PAS – Power Analysis Software – provides direct data access for monitoring and analysis. PAS is bundled with all SATEC instruments. . For more details, please visit www.satec-global.com

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Analysis: Brace yourself for a decade of big electricity price hikes

Trying to get authoritative figures on what the future price of electricity in SA is no simple matter.

Finally I have found an authoritative source that verifies/proves the need for electricity prices to increase way above inflation for the next ten years. I highly recommend using these figures for financial modelling purposes in what ever context commercial, industrial, residential consumers and for business planning purposes.

Here are some highlights from this article:

“Shock though it would have been to consumers, the three-year power price hikes would, at least, have seen electricity prices eventually drop back to tracking inflation. Now it’s likely that the switch marked “Price Increases” will be left on – for the next 10 years at least. By MIKE RYCROFT, MARK BOTHA and CHRIS YELLAND”.

“…with the revised Eskom price trajectory now indicating increases of 27% ,31%, 35%, 35%, 35%, 13% and 13% for the years 2008 to 2014″

“Irrespective of which scenario is considered, the projected electricity prices in the draft IRP 2010 show annual increases well above inflation up to 2021, and it would appear that the golden era of Eskom price increases at or below inflation will only arrive thereafter”.

“It should also be noted that the current IRP 2010 draft document may still be subject to revision. Its projected price increases are based on several assumptions and there are many areas of uncertainty which could cause prices to increase even above those projected”.

Hybrid Systems

Recently the topic of hybrid systems including solar pv, microturbines, wind turbines and diesel generators has been occupying alot of my time lately. In pursuit of reaching the nexus between the cleanest and cheapest delivery of electricity I have scanned the globe trying to understand what is available today. Operating in markets where the price of electricity for many people is still very cheap or where prices are expensive the clients just don’t have the money to invest in a significant capital expense that these hybrid systems require, means that we have to be very creative. I came across quite an old but helpful analysis of solar pv and wind integrating with diesel generators. This case study document provides the frame of reference needed to explore this important topic further.