The integration of solar and wind power poses specific challenges as system operators pursue low-carbon investments and long-term energy sustainability. As these variable renewable energy (VRE) sources reach high shares of power generation, power systems must be increasingly flexible to maintain the balance of supply and demand over each day or year.
At the end of 2018 SAWEA appointed a team of multi-disciplinary consultants to carry-out a study that investigates the value proposition of DG RE with a particular emphasis on wind and solar PV technologies. The study examined the following:
The rationale behind the anticipated increase in DG RE and the potential contracting structures to facilitate electricity sales between IPPs and Munics/customers.
The impact on operations at local (municipal) level and national (Eskom) level.
A detailed assessment of the commercial impact of increasing levels of DG RE on customers, municipalities and Eskom.
A high-level assessment of the impact on the National Fiscus as well as Local Economic Development.
The study also included a case study review of existing bilateral transactions.