Sinetech https://sinetechstore.co.za The Power of Choice Tue, 09 Feb 2021 07:32:14 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 https://sinetechstore.co.za/wp-content/uploads/2023/12/cropped-xmas-2019-logo-square-only-32x32.png Sinetech https://sinetechstore.co.za 32 32 Load-shedding is dead! Long-live load-shedding! https://sinetechstore.co.za/load-shedding-is-dead-long-live-load-shedding/ https://sinetechstore.co.za/load-shedding-is-dead-long-live-load-shedding/#respond Mon, 08 Feb 2021 08:18:16 +0000 https://sinetechstore.staging1.wowinteractive.co.za?p=24667 The post Load-shedding is dead! Long-live load-shedding! appeared first on Sinetech.

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Load-shedding, load reduction, load rotation, planned maintenance…. unplanned maintenance? Call it what you will, the net effect is that our homes and businesses have no power. Remember when the villainous Dark Knight pronounced in May 2016 his “happiness and excitement” for the achievement of the end of load-shedding in South Africa on a visit to Megawatt Park, Sunninghill? We still had the same number of outages, if not more, but the knave of Nkandla came up with the cunning plan of not calling it load-shedding any longer. A rose by any other name remains a rose (apologies to the bard).

Tens of billions have been lost to load-shedding in the past 15 years and many large industries have relocated to greener pastures, costing us millions of jobs and the fiscus billions in lost tax revenue. Volumes have been written on the woes of our energy sector, suffice to say it is a catastrophic failure and will not change anytime soon despite the best efforts of a few at Eskom, who should be lauded for their grit and determination. The blackguards of the administration who orchestrated this should be put to the sword for treason, metaphorically speaking.

Hardest hit are small businesses who rely on electricity being present for lighting, tills, security, machinery and so on. How often have we seen retail shops, restaurants and petrol stations without generators closed during load-shedding? SME businesses most often do not have surplus cash to invest in generators or inverter/battery systems.

Heavy industries suffer equally, as most industrial machinery uses significant amounts of electricity and, albeit the business may have back-up systems in place, most often they cannot cope with all the demand the various machines require. Anecdotally, a large glass manufacturer recently explained that when power outages happen and they are in the midst of glass production, it can take many days to clear the machine of the molten glass that has hardened in the midst of production. This, I believe, is true of the plastic industry as well. Thus, it is not just the production lost during the power outage but the cumulative knock-on effect of rectifying the damage caused by the power outage.

So, while we drink tea, without milk though (it was all spilt), we need to try and keep our homes and businesses functioning, our people employed and the vaccine cool. Our very lives depend on how we deal with this crisis and if we think that the government is going to rescue us, then we deserve exactly what we will get: nothing. Your energy future is in your hands and more than ever we need to make sure we have at least some form of electrical back-up if not our own electricity generation as well.

Entry Level Solutions

Many of us are working online from home due to the pandemic and a four-hour power outage can impact your productivity substantially but how do you mitigate this without breaking the bank? Solutions designed to keep wi-fi or ADSL routers powered are available below R1 000 and are simply a plug-and-play 12VDC to DC UPS. These units are roughly the same size as the router and employ Lithium-Ion batteries to store energy from the grid (or solar optional) and automatically switch over to battery back-up when the grid fails. A marginally more expensive version, less than R1 500, will provide 19VDC back-up for a laptop.

5/9/12/19V DC to DC UPS front and rear panel

AC and Solar Portable Power System (SPS)

Should you require 220V back-up for monitors, printers or any other relatively low-demand device, a slightly more expensive unit (around R4 000) can be used as a UPS and will offer longer run-times than the smaller units described above. These units are completely portable, weighing around 4kg, and have multiple inputs, both solar or 220/230VAC, and 220/230 VAC output as well as 3X USB/1X USB QC3 outputs.

Peak power is rated at 1200 Watts with a Lithium-Ion battery capacity of 396Wh, which should run a laptop, inkjet printer, router and LED lamp for 4 hours. Most notably, if the power outage is during sunlight hours, a 100W solar panel can be connected to extend battery capacity.

These two categories of back-up solutions can be considered as being for “personal” use and whilst there is substantial demand for teleworkers to be equipped with these, they also play a role in many other applications, such as keeping CCTV cameras powered and charging all manner of smart devices such as tablets and laptops. The SPS above can run a small TV and decoder or router for 4 hours, so the application is not exclusively telework related but can also help keep loved ones in contact across the globe by maintaining power to laptops and routers during power outages.

Scaling up to devices that offer longer run-times and the ability to accept heavier current loads but are still semi-portable, a popular category is for 1000 – 1500 Watt units, which employ predominantly deep cycle lead-acid batteries. These batteries are comparatively inexpensive compared to Lithium-Ion although substantially larger, heavier (up to 40kg) and have less useable energy due to Depth of Discharge limitations.

Starting at around R8 000, these units generally use inexpensive inverter/chargers and are most often used to back-up TVs, decoders, routers and possibly one or two low Wattage lamps. The inverters automatically detect a grid failure and switch to battery in around 20 milliseconds, thus it is virtually a seamless transition with decoders not having to reboot.

There is also the option to add solar on some models, which can extend the run-time during sunlight hours.

Lead-Acid based PowerCaddy back-up system

PowerHex Plus Portable back-up system

Moving to more ergonomic and modern semi-portable solutions, the PowerHex is based on more sophisticated inverter technology incorporating a robust transformer to deal with electrical surges and spikes. Additionally, the inverter incorporates such features as temperature compensation and control permitting the use of more sophisticated batteries such as AGM-Gel, which have greater cycle life than ordinary lead-acid batteries. This translates into less frequent battery replacement and hence is more cost efficient.

The unit has a steel hexagonal chassis and integrated telescopic trolley handle at the rear to enable easier movement. An LCD front panel shows the important information such as battery charge remaining, electrical load, etc. The chassis door is lockable to secure the internals from children.

A recent development is the option of a Lithium Ion battery to further improve cycle life as well as offering greater depth of discharge. This is known as the PowerHex Plus; it is approximately twice the price of a PowerCaddy but it must be borne in mind that it has double the back-up run-time and a battery that will last 3 to 4 times longer.

Integrated Back-Up and Hybrid Systems

These solutions are integrated into the Distribution Board of a premises and generally use the power grid, solar panels or generators as an energy source to charge batteries and, in the case of hybrid or grid-interactive systems, provide solar power directly to the premises during daylight hours.

For clarity, many of the solar panels we see in urban areas are used in grid-tied systems, which are solar generation installations without any battery storage. The primary purpose of a grid-tied system is to reduce monthly utility bills by generating PV solar energy, thereby supplementing the grid-power to whatever scale the system has been designed for. It is important to note that even if a premises has solar panels and the sun is shining, a grid-tied system does not provide energy when there is a grid failure. The reason for this is that the inverter requires a frequency from the grid in order to operate, and when the grid is absent the grid-tied inverter cannot operate. We will not describe grid-tied systems in any more detail as this article is focused on back-up solutions.

3kW Back-up kit showing 2 X AGM-Gel batteries

An integrated back-up system consists of a few primary components: an inverter, a battery charger (which is often integrated into the inverter nowadays) and a battery bank to store and provide the standby energy. There are other items required which we refer to as Balance of System (BOS), which refers to the cabinets, cables, fuses, lightning protection, etc.

The scale of these systems can be as small as 500 Watts (with regard to the maximum current load the inverter can facilitate) up to Megawatt systems in industrial and commercial applications. To make this article relevant to the general public, we will talk in the scale of residential systems, usually from 1kW up to 10kW, however, there are some residential systems much larger.

When referring to battery or storage capacity, it is expressed in kWh (kilo Watt hours) or kW X time = kWh

Thus if you have a 2kW heater, for example, and you ran it for one hour, it would use 2kWh.

It is important to note that if you have a 1kW inverter and you try and draw 2kW through it, it will trip. This is relevant in calculating your electricity usage and in calculating battery bank capacity required. Using the common size 100Ah (delivers current of 1 amp for 100 hours) 12V battery to calculate the kWh, we multiply the voltage (12V) by 100 to get 1200Wh or 1.2kWh.

A popular size back-up system is a 3kW inverter with 4 X 100Ah 12V batteries connected in series to create a 48 Volt system, thus the battery capacity would be 4.8kWh. The maximum demand you could draw from this system at any one time would be 3000W without the inverter tripping. The total amount of energy you have available is 4800Wh; with lead-acid batteries, however, it is advisable not to discharge them more than 50%, thus there is 2400Wh minus 20% for the normal losses through a DC system.

This will leave you with 1920Wh useable energy available. As an example, if you connect a 55-inch TV (120W), a decoder (20W), wi-fi router (20W), 2 x 9W globes (18W) and a fridge/freezer (150W) you would be able to run those for 5 hours 50 min theoretically.

To calculate what you need, focus on your essential loads (your equipment) that is:
a) Not too power-hungry
b) Important to your home or business

Geysers, ovens, heaters, pool motors are power-hungry devices and to provide back-up for them, whilst technically possible, is generally prohibitively expensive. Additionally, a geyser does not lose heat that fast, pool motors do not need to run during the normal 4-hour load-shedding outage and stoves/ovens can be avoided by using microwaves or gas. Inductive loads (devices like electric motors and hair-dryers) cause “in-rush current”, a sudden spike in current demand that can trip inverters, so avoid including these devices on the back-up system.

Important considerations are security systems and access control, plugs for routers, computers, TV, lamps, fridges and possibly a microwave oven. There may also be some unique requirements such as aquariums and possibly even medical apparatus.

Component matching can be a very important criteria when choosing inverters and batteries as certain technologies work well together whilst others don’t. Charging and control of batteries has become more important as battery technology advances. Installing conventional lead-acid batteries is comparatively simple but when you move to technologies such as AGM-Gel (Absorptive Glass Matting with Gel electrolyte), installation and configuration becomes more critical.

Whilst the latter provide almost twice the cycle life of conventional batteries, they are very sensitive to temperature control and equalisation for example. Some inverters do not offer these capabilities but are attractively inexpensive; the net result is a cheap inverter destroying expensive batteries in a matter of months.

It is recommended that you apprise yourself of what you are buying and how well the components work together. Ask the provider how many similar systems they have installed of this make-up and how long have they been operational. Request references and contact them to ask how satisfied they are with the system’s performance; most people like to wax lyrical about how prepared they are for power outages or how much money they are saving through solar.

The quality of your system will inevitably be reflected in the price. It is a case of “buy nice or buy twice”. There are unscrupulous providers out there who will provide you a system at a good price; later when the problems start, you discover the wrong grade of cable has been used, fusing has been omitted, there is inadequate charging current, incorrect configuration and a litany of other ills … and the installer is no longer in business.

It is vital to seek out providers who have been around for longer than a couple of years, who offer not only product warranty but also a warranty on the workmanship. Integration to the DB board must be performed by a suitably licenced electrician and a Certificate of Compliance should be issued upon completion. Insurance will be unsympathetic when a fire occurs due to poor installation. Caveat Emptor (Buyer Beware).

A safer option is to buy a pre-configured kit with all the components included and matched to ensure optimum performance, mitigating errors from cable diameter to the harmonious working of the inverter with the batteries. These kits are usually sized from 1kW to 8kW and options include size of battery bank (quantity of batteries) and type of batteries: regular lead-acid, AGM-Gel or Lithium-Ion.

This approach gives the buyer the comfort that all the correct components and BoS are provided; additionally, the supplier should pre-configure the inverter to work with the number and type of batteries before delivery. This reduces the errors that can be made in the installation phase, although does not guarantee that the installer will perform all the work to the highest standard. For this reason, savvy customers invest in a turnkey solution from one entity that encompasses an energy audit to determine the requirements, design or recommendation of a suitable system, installation and commissioning, and ongoing maintenance.

Once the system is installed and working as intended, you will wonder why you did not do this sooner. Power outages become almost irrelevant as the system switches over so fast you do not even know that it has happened. Seamless, continuous power is critical to many businesses and, from a residential perspective, equally important to your normal day-to-day activities which may include working from home.

In making the decision to install a back-up system, you should always consider an upgrade path for adding batteries, as well as possibly adding solar PV panels to the system at a later stage.

Lead-based batteries are not very flexible in terms of expanding, for example, from 4 batteries to 8 batteries beyond approximately the 6 month period. Once the batteries are older than that, the older batteries will tend to decrease the performance of the new, so this is not recommended.

Lithium-Ion, however, is much more flexible allowing you to upgrade your batteries at any time, not to mention all the other benefits of Li-Ion, namely cycle life, physical size, weight, DoD (useable energy) and faster recharge time. Although more expensive, there is an argument that to install a similar quantity of lead batteries, you would need twice the kWh of Li-Ion.

Additionally, Li-Ion is equipped with a Battery Management System (BMS) that offers a complete audit trail of the batteries’ history. This could be relevant when making warranty claims as it could prove that through no fault of the user, the battery failed.

Your supplier should assist you in making this decision, showing expected cycle life and comparative costs per kWh. Ultimately, it will be your decision and it is preferable to make this decision upfront.

Hybrid Kit with Li-Ion batteries and CIGS solar panels

Another decision that should be made at the outset, is whether you will look to augment the system with solar PV in the future. This will determine the type of inverter you should install upfront. If this is the case, then you would be advised to install a grid-interactive or Hybrid inverter.

These inverters are essentially back-up inverters with the added capability of being able to accept energy from solar panels, so you can think of them as grid-tied but with battery back-up. The batteries can be charged by both the grid and the solar panels and, simultaneously, the panels can provide power to your premises.

The beauty of a hybrid system is that you can decide to start with reducing your bill initially, using the system as grid-tied, and add the batteries to provide back-up power at a later stage. You may also choose to do it the other way round, electing to begin with a battery bank for back-up power and adding the solar panels in the future. Clearly this approach would make the inverter more expensive than a back-up power only inverter but this route is preferable to having to buy another inverter in the long run.

Your energy future is in your hands!

In summary, we may feel aggrieved that we even have to look to back-up systems and devices – the monopoly supplier should surely, at a minimum, provide us with reliable, if not affordable, power! Unfortunately, this is not the case and South Africa is not alone in her predicament: many countries, even first-world countries, are battling to meet demand.

Investing money in a back-up system is like buying insurance: it’s a grudge purchase, but the reality is that unlike short-term insurance where you may never have a claim, you are guaranteed to need your back-up system.

Standby power adds value to your life now and, if installed as an integrated system, will be viewed favourably by prospective buyers of your property in future.

If you plan to be in your business or residence for longer than 5 years, you should consider the Hybrid route where you can make substantial savings on your monthly bill by using solar. The added benefit of the back-up power is difficult to quantify, however, it certainly adds value to your peace-of-mind if not your ability to generate income despite power outages.

Start your journey to energy independence today. Contact Sinetech’s experienced technical sales consultants on 011 886 7874 or [email protected].

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Load shedding looming again, even as renewables ease Eskom pressure https://sinetechstore.co.za/load-shedding-looming-again-even-as-renewables-ease-eskom-pressure/ https://sinetechstore.co.za/load-shedding-looming-again-even-as-renewables-ease-eskom-pressure/#respond Thu, 10 Dec 2020 08:05:59 +0000 https://sinetechstore.staging1.wowinteractive.co.za?p=23989 The post Load shedding looming again, even as renewables ease Eskom pressure appeared first on Sinetech.

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Renewable energy procured from private generators as part of the department of energy’s Renewable Energy Independent Power Producer Procurement (REIPPP) programme contributed more than a quarter of the peak-time electricity South Africans consumed during the first half of 2020.

This is according to a report on the performance of renewable energy projects compiled by energy regulator Nersa.

This news comes as the availability of Eskom’s fleet deteriorated to just over 60% in the last week of November, according to the latest data published by the state-owned utility. This is partly the result of an increase in plant taken offline for maintenance, but unplanned outages remain very high.

In the week ending 29 November, 18.48% of Eskom’s generation capacity was unavailable due to maintenance and 18.08% due to unplanned breakages.

In the week ending 29 November, 18.48% of Eskom’s generation capacity was unavailable due to maintenance and 18.08% due to unplanned breakages

The average availability factor for the year to date is 65.65%, which is considerably lower than the almost 67% in 2019. The norm is 80% availability, with 10% taken out of service for planned maintenance and 10% for unplanned maintenance.

Eskom’s forecast to 1 March 2021 shows that it is likely to have a consistent supply shortage of more than 1 000MW in all but one week. It indicates that the country could suffer stage-2 load shedding for most of this period.

Clearly helping

While electricity demand in the first half of the year was distorted by the Covid-19 lockdown, renewable energy clearly helps Eskom to limit the use of expensive open-cycle gas turbines or keep it from instituting load shedding during the morning and evening peaks.

According to Nersa, 68 of the contracted 112 projects were in commercial use with a combined generation capacity of 4 283MW. The regulator expects a further nine projects to be in operation by the end of the year, which will increase the total capacity to 5 048MW.

Although the performance of the different technologies is not comparable, it is useful to note that the combined installed REIPPP capacity will by the end of the year exceed the nameplate capacity of Medupi, of 4 764MW.

Nersa reports that non-REIPPP renewable projects, aimed at own use or generation for a specific client, adds a further 823MW to the country’s renewable capacity. It has also approved the registration of small-scale embedded projects with a combined capacity of 72MW. This is mostly solar photovoltaic energy.

Nersa says the increase in renewable generation has resulted in the geographical diversification of power generation. The dependence on coal in the northern parts of the country has been diluted, with renewables spread through the Eastern, Western and Northern Cape, closer to the demand. This means that electricity losses associated with long-distance transmission can be reduced.

Renewable energy will be even better utilised during peak demand periods if the storage capacity is increased, according to Nersa. Currently only six concentrated solar plants have storage capacity, varying between two and nine hours.

Renewable energy will be even better utilised during peak demand periods if the storage capacity is increased

Nersa expects that increased storage capacity will, by 2022, enable renewable energy that is generated when demand is low to be utilised during the peak.

Eskom has in fact embarked on a big storage project.

Nersa reports that Eskom paid independent renewable power producers R14-million in 2019/2020 in terms of the take-or-pay power purchase agreements for energy it was unable to take.

During the first half of 2020, Eskom paid on average R2.23/kWh for renewable energy. Nersa expects this number to come down as projects contracted later at lower tariffs come into operation.

This article was originally published on Moneyweb and is used here with permission

Take charge of your own energy requirements today with a solar and backup power system from Sinetech. Pay less for your own electricity AND ensure continuity of operation during power outages. Complete the enquiry form below or contact us on 011 886 7874 or [email protected]:

[contact-form-7]

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Don’t let rising electricity costs eat into your retirement savings https://sinetechstore.co.za/dont-let-rising-electricity-costs-eat-into-your-retirement-savings/ https://sinetechstore.co.za/dont-let-rising-electricity-costs-eat-into-your-retirement-savings/#respond Wed, 23 Sep 2020 06:13:43 +0000 https://sinetechstore.staging1.wowinteractive.co.za?p=23122 The post Don’t let rising electricity costs eat into your retirement savings appeared first on Sinetech.

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Invest in a solar power system today

Retirement should be something we all look forward to, and by installing a hybrid solar system, you can take control of your electricity expenses and availability.

Save on your electricity bill

Protect against future price increases

Guarantee continuity of power day or night

Reduce your carbon footprint and help reduce climate change

Solar is good for your wallet
  • For the period 2002 to 2019, electricity increased by a staggering 500% in South Africa.
  • Future annual increases could be in the region of between 15% to 20% compounding year on year.
  • Municipalities are starting to permit the “feed-in” of surplus electricity that you might generate thereby giving you a credit on your electricity account.
  • Loadshedding is set to TRIPLE in frequency and severity within three years (CSIR Report). The battery component of a hybrid system ensures your lifestyle is not affected by power outages.

FACT: Electricity produced by solar panels costs R1.20/kWh right now compared to R2.30/kWh for grid power

Solar is good for our planet
  • Solar is an extremely water-wise technology. Did you know we need 3150L of water to generate 1MW of electricity from coal and 1700L of water to generate 1MW of power from nuclear power?
  • A 1kW solar panel will prevent the use of 105 Gallons of Water, 170 Pounds of Coal and 300 Pounds of CO2.
  • The solar industry is creating jobs for more than 35 people per MW compared to just 3 people per MW in the coal industry.
  • One household can save 12 tonnes of CO2 going into the atmosphere per year by installing a solar power system to reduce their reliance on coal.
  • To start reversing climate change, we would need to continue decreasing carbon emissions by 7.6% every year until 2030 – solar power is one of the few technologies that can achieve this.
  • Rooftop solar provides an insulation layer, reducing internal roofspace temperatures.
Solar is unbeatable as an investment vehicle

The current return on investment per annum on R100 000 is around 5.5% for property, 6.89% for SATRIX and around 6.25% in a call account. Thanks to Eskom’s devastating price increases, you can invest that same R100 000 in a PV solar system (enough for a 5kW grid-tie) and you’re looking at returns of 40.7%.

FACT: A solar system installed in your home can add around 5% to the selling price.

Sinetech has been supplying and installing solar and standby systems for 25 years.
We guarantee all of our products and workmanship.

To begin your journey to energy independence, write to [email protected], call 011 886 7874 or complete the enquiry form below and one of our experienced technical consultants will be in touch:

[contact-form-7]

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Reduce operating costs with solar https://sinetechstore.co.za/reduce-operating-costs-with-solar/ https://sinetechstore.co.za/reduce-operating-costs-with-solar/#respond Tue, 15 Sep 2020 08:33:02 +0000 https://sinetechstore.staging1.wowinteractive.co.za?p=23079 All businesses can benefit from taking control of their electricity costs and controlling future energy price increases. Those engaged in product manufacture and others in large factories and warehouses are

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All businesses can benefit from taking control of their electricity costs and controlling future energy price increases.

Those engaged in product manufacture and others in large factories and warehouses are generally using a substantial amount of electricity during daylight hours, which makes them excellent candidates for solar energy. Solar energy officially became the cheapest energy source in the world in 2016, surpassing wind and its fossil fuel counterparts like natural gas; this means solar power will save a manufacturer thousands of Rands over time on electricity costs and provides a hedge against energy price increases, making your company more competitive.

Let’s take a look at why solar is such a good fit for these industries:
• Most concerns operate during sunlight hours, however, with battery technology rapidly decreasing in price, even 24-hour operations can benefit from solar energy created during the day.
• Peak factory / floor energy use and peak power production from the PV solar system will generally coincide or be stored, which means no produced power goes to waste.
• Large-scale commercial solar systems are an even better deal in terms of long-term savings because of the economies of scale inherent in solar power. The cost of energy will decrease the larger the system is.
• If batteries are included in the design, power outages can be seamless and the exorbitant cost of running diesel generators can be obviated.
• Factories are known for having large flat roofs with ample roof space, offering an ideal installation site for solar panels.
• Carbon taxes are definitely a reality in South Africa’s future, thus it would be beneficial to start using renewable energy today.
• The greening of a company is a newsworthy upgrade that sets your business apart from others and offers huge marketing and competitive advantages.
Whether your operation is big or small, solar can reduce your electricity bill.

Case Study

Commercial Building, Gauteng, 60kWp Grid Tie System (image above)
A Grid-Tie PV system was found to be the most ideal solution given the fact that the production profile of the PV system fitted well into the power usage profile of the company. The system generates approximately 90MWh per year and offers a high return on capital while reducing the operational expenditure of the company. This system has saved the client in the region of R750 000 since its installation in 2016. As electricity tariffs increase annually, the gap between the cost of self-generation and Eskom supplied power will increase, thus the sooner you make the move to solar the better.

Connect with Sinetech today through the enquiry form below, call us on 011 886 7874 or write to [email protected]:

[contact-form-7]

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Ratel 860P succeeded by Ratel 8100 https://sinetechstore.co.za/ratel-860p-succeeded-by-ratel-8100/ https://sinetechstore.co.za/ratel-860p-succeeded-by-ratel-8100/#respond Thu, 30 Jul 2020 07:02:03 +0000 https://sinetechstore.staging1.wowinteractive.co.za?p=22687 The post Ratel 860P succeeded by Ratel 8100 appeared first on Sinetech.

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The popular Ratel 860P has been succeeded by the Ratel 8100 offering higher load bearing up from 60W to 100W. The most significant change is the addition of the 19VDC output which is ideal for powering laptops. Solar and PoE are no longer standard but are available as options (MOQ will apply). For more information, please write to [email protected].

AVAILABLE ON BACKORDER HERE: Ratel 8100 Micro DC-to-DC UPS

Ratel Micro DC-to-DC UPS Sockets 1

Ratel Micro DC-to-DC UPS Sockets 2

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Eskom UP, Interest Rates DOWN – You CAN afford solar https://sinetechstore.co.za/eskom-up-interest-rates-down-you-can-afford-solar/ https://sinetechstore.co.za/eskom-up-interest-rates-down-you-can-afford-solar/#respond Thu, 30 Jul 2020 05:49:10 +0000 https://sinetechstore.staging1.wowinteractive.co.za?p=22674 An increase in electricity tariffs is not good news for any business or homeowner and unfortunately, you do not have the choice to shop around for electricity providers to get

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An increase in electricity tariffs is not good news for any business or homeowner and unfortunately, you do not have the choice to shop around for electricity providers to get the best deal.

The choice to provide your own electricity is, however, within your control and the use of solar power is becoming inevitable and, financially, a complete no-brainer. A small installation for a domestic household to supply 3 kWp (kilowatt peak) of solar panels along with 7kWh lithium battery would cost R170 000 installed.

A system of this size would produce 450 kWh per month resulting in savings of R10 470 in year and these savings would increase in-line with the Eskom increases: if there is a 10% increase in the second year, the savings would increase to R11 500 and so on. Most significantly, the batteries would provide the energy storage to allow you to use the energy created in the day during night-time hours as well, as providing back-up for the very annoying, and now costly, power outages.

As a direct comparison, 1kWh from Eskom is currently R2.30, whilst 1kWh of solar from the above system would equate to R1.54. A 450kWh system is generally not large enough to take you totally off-grid in an average 3-bedroom house, but it does take care of approximately 50% of your usage.

As we are using a residential dwelling in the example it is interesting to note that even a bond of R1 000 000 would have cost R9 900 per month in repayments in February 2020. With the 3% decrease in the repo rate, that same bond repayment is now R8 100 per month.

Many of the large financial institutions have flexibility in their offerings and certainly where you are seeking to improve your property by adding solar and standby power, they may be amenable to adding the cost to the existing facility. Thus, rather than laying out R170 000 in cash, which you may not have, you could use the now comparatively inexpensive bond facility to procure a hybrid solar system with batteries.

The repayments could be offset, at least in part, by the savings on your monthly electricity account and the value added to your home is significant as many buyers are now looking for homes with energy and water efficiency.

A hybrid solar/battery system will amortise in approximately eight years, where after your 450kWh is free.

The choice to move to renewable energy used to be predominantly about eco-friendliness, but with the exponential growth in solar, the solar choice is a matter of economy for all homes and businesses. The addition of batteries to the system becomes more important as many of us now work from home and power outages affect our productivity, security and overall lifestyle.

You DO have the power to choose – connect with Sinetech through the enquiry form below and start your own journey to energy independence:

[contact-form-7]

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Standby Power Essentials Post-Covid19 https://sinetechstore.co.za/standby-power-essentials-post-covid19/ https://sinetechstore.co.za/standby-power-essentials-post-covid19/#respond Mon, 13 Jul 2020 07:33:23 +0000 https://sinetechstore.staging1.wowinteractive.co.za?p=22494 Lockdown has resulted in many employees continuing to do their jobs from home. You’ve got your laptop and decent fibre but if you don’t have electricity, you’ve got a problem.

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Lockdown has resulted in many employees continuing to do their jobs from home. You’ve got your laptop and decent fibre but if you don’t have electricity, you’ve got a problem. How will you be able to work as loadshedding increases in frequency? You need reliable inverter-and-battery backup power that kicks in automatically and instantly when the power fails. Sinetech offers backup power systems to fit all lifestyles and budgets. In these videos, Sinetech CEO Chris Rodgers will give you a tour of a professionally-installed backup power system that allows the homeowner to run essential devices seamlessly during a power outage. Watch our 2-Part Series below:

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Solar Truths : Post-Covid19 : Video Series https://sinetechstore.co.za/solar-truths-post-covid19-video-series/ https://sinetechstore.co.za/solar-truths-post-covid19-video-series/#respond Thu, 25 Jun 2020 06:46:33 +0000 https://sinetechstore.staging1.wowinteractive.co.za?p=22288 Sinetech CEO, Chris Rodgers, weighs in on Solar Power and Standby Power as it pertains to the South Africa Covid19 landscape: lockdown, shrinking budgets, unemployment, loadshedding all point towards moving

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Sinetech CEO, Chris Rodgers, weighs in on Solar Power and Standby Power as it pertains to the South Africa Covid19 landscape: lockdown, shrinking budgets, unemployment, loadshedding all point towards moving to solar to become more stable financially and as a society as a whole. From job creation to investment potential, solar makes more sense today than it ever did before. Watch our 3-Part Series below:

Like what you see here? Why not subscribe to our newsletter and receive content like this in your inbox. We try to reach out at least once a week with news of latest products, new stock of best-sellers, specials and promotions, open days and events, as well as highly-watchable and shareable digital content from our YouTube channel.

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Five primary reasons why PV solar and standby power make more sense than ever post-COVID https://sinetechstore.co.za/five-primary-reasons-why-pv-solar-and-standby-power-make-more-sense-than-ever-post-covid/ https://sinetechstore.co.za/five-primary-reasons-why-pv-solar-and-standby-power-make-more-sense-than-ever-post-covid/#respond Tue, 12 May 2020 09:56:48 +0000 https://sinetechstore.staging1.wowinteractive.co.za?p=22002 Whilst we find ourselves in an almost surreal world from a socio-economic perspective, there are some positive developments that have occurred during the past 8 weeks or so. Number one,

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Whilst we find ourselves in an almost surreal world from a socio-economic perspective, there are some positive developments that have occurred during the past 8 weeks or so. Number one, and most important, the environment has had a holiday from CO2 emissions and even wildlife is making a bid to reclaim the streets. This has served to show how fragile but resilient our world is and should inspire us all to continue contributing to reducing our environmental impact in future.

From a social perspective and contrary to how we have had to distance ourselves physically, we have pulled together very well as a people, supporting the indigent, aged and ill members of our society. Many have contributed financially and some have even given of their time to help others, despite risk to themselves.

It is my personal view that the government has performed admirably compared to many other countries and with much fewer resources. Many difficult (and some illogical) decisions have been taken but with a high level of co-opting the numerous stakeholders in, making these decisions even more difficult, as there will always be differing opinions and agendas. In fact, COVID-19 has focused most South Africans on the issues that should always have been primary ie. poverty, job creation and healthcare. We must continue to focus on these concerns and I believe the by-product will address other social ills such as crime, education and the massive economic disparity in our society.

In the renewable energy industry, we have a role to play, most critically in educating the public at large as to the merits of using PV solar or energy storage systems in their homes and businesses. It is a widely-held view that these systems are prohibitively expensive but in fact the reverse is true, as we will illustrate below. The benefits of inexpensive and continuous power are numerous and touch many aspects of our daily lives.

 

Reason 1 – Back-up for essential loads

An energy storage system is in essence the JoJo tank of the electricity world, using an inverter and batteries to store energy. That energy can be the electricity provided by your municipality or Eskom, or it could be energy that is created by solar panels that you have installed on your roof, or both.

The primary purpose of such a system is to provide back-up power during periods of load-shedding or power outages for any other reason. Ordinarily, during a power outage one would seek to power “essential loads”; these are the electrical circuits that feed devices that are critical to you. Most domestic households focus on alarm system, electric gate/garage, fridge/freezers, some lighting, TV, decoder, router and possibly a microwave oven.

In a post-COVID world, working from home will become much more prolific and thus the continued operation of your computer and wi-fi will be very important to productivity. We are advised by Eskom that load-shedding will resume in May 2020 and will be around for at least the next 18 months. Equally important is the non-interruption of the normal functioning of access and security systems such as electric fence, gates, garage doors, cameras and alarms. Many of these have built-in backup facilities but the batteries are often depleted or damaged and don’t offer adequate backup time. Security will unfortunately become more critical as economic conditions deteriorate, therefore it is vital to ensure seamless power backup for these systems. The cost of these backup solutions start from as little as R1 000 to simply back-up a wi-fi router to tens-of-thousands of Rands for a fully- integrated solution.

It is advisable to consider the future integration of solar as well, but if current budget does not allow currently, ensure that the inverter has hybrid capability so that you can add solar at a later date.

Backup Power System - Grid Stable
Backup system integrated to DB board
Backup Power System - Grid Failed
Mobile backup system non-integrated

 

Reason 2 – Solar as a cost mitigation strategy

For the period 2002 to 2019, electricity increased by a staggering 500% in South Africa and looks set to continue with double-digit increases for the foreseeable future when one includes the Regulatory Clearing Account (RCA). The result is annual increases of between 15% to 20% compounding year on year. The objective of this section is to reduce or at a minimum, control the amount you pay for electricity as a consumer or business. It must be said at this point that all of us should have adopted behavior that is energy conscious and made our homes and businesses as energy efficient as possible by using LED lights and ensuring that when we replace appliances, we seek-out the most energy-efficient units. The following seeks to illustrate how you can take control of your energy future.

We will assume useage of 1 000kWh per month, which is an approximation for middle income households in S.A. Current tariffs for Eskom Direct customers are roughly R1.45/kWh for 0-600kWh and R2.30 for 601kWh onwards, thus 1 000kWh would result in energy charges of R1 790 plus R6.23/ day network capacity charge for 30 days (R187) giving you a total of R1 977 excluding VAT. Municipality provided electricity tariffs will vary from place to place.

The table below (Table 1) shows the effect of the combined increases ie. base tariff and RCA recovery but does not show the Network Capacity Charge. This has been increasing incrementally over the years and whilst it is a relatively small number (around R172 in 2019 moving up to R187 in 2020 for Homepower Standard), it is an increase of almost 10%. There were mumblings about actually lowering tariffs and hiking Network Capacity charge massively, thus reducing the price to poorer communities. Table 1 does not include the RCA percentage for 20/21 and 21/22 as this issue is before court at the moment. Eskom’s claim for variations for additional costs and revenue shortfalls in the preceding years would see a Total tariff increase of 16.5% in 2021 and 2022.

Table 1:

Source: Eskom/NERSA

Thus in 2021, the 1 000kWh example shown above would increase from R1 977 to R2 303 in 2021 and to R2 683 in 2022 and based on historical increases, Network Capacity charge will increase from R187 to R224 in the two-year period. Therefore using this example, Homepower Standard will increase by around R700 or 35.4% in that same period.

How can solar help reduce some of this pain? There are two paths to pursue in moving to solar to mitigate tariff increases, namely Grid Tie solar or Hybrid solar. Grid-tie, as the name suggests, involves deploying PV solar panels and the required inverter connected into the existing power grid. This system adds supplemental power to your premises while the sun is shining, thus roughly six hours per day depending on location and season. The intelligence in the inverter will route energy sourced from the solar panels to the circuits in your premises connected to the inverter.

Grid Tie Solar System - Grid Stable - AM

During daylight hours, the system will reduce or possibly omit usage of grid power. Grid-tie solar does not provide backup power in the event of a power outage as it is dependent on the grid being online to work.

Additionally, many municipalities permit feed-in of surplus energy to the grid offering a credit on the associated account. This would require a specific application for “net metering” over and above the normal compliance documents required to connect to the national grid. Feed-in is advantageous for both domestic and commercial premises as surplus power generated in the example of a commercial instance, will direct energy generated over weekends back into the grid. An existing commercial customer offset their total Network Capacity charge, minimal usage as they were closed and accrued a small credit during the COVID-19 lockdown.

A hybrid system includes the functionality of the grid-tie system with the added benefit of providing a battery bank as a storage mechanism for grid or solar sourced energy. This would provide power to the designated electrical circuits during power outages, at night or on overcast days where solar radiation is minimal.

Intelligence in the hybrid inverter can be configured to direct energy to the electrical circuits of the premises as priority one, recharge the batteries as priority two and feed-in to the grid as priority three. It is also possible to apply “peak-shaving”, an intervention to use the batteries when premises demand and tariffs are high, thus avoiding using grid-power at peak times/tariffs.

Hybrid Solar System - Grid Stable - AM
Hybrid Solar System - Grid Failed - PM

Clearly, the purpose of this article is to explore what options we have in terms of continuity of power supply and the cost-effective sourcing of electricity. It is therefore the juncture to explore what the various options cost with regard to the basic solar options described above. Using our 1 000kWh example again, Table 2 illustrates that solar makes sense post-Covid19 primarily due to the fact that interest rates have decreased by 200 basis points. It may therefore be advisable to use your existing mortgage bond to fund solar on your premises in a domestic or commercial instance.

Furthermore, in a commercial case, Section 12 B of the Income Tax Act permits accelerated depreciation of renewable energy assets purchased for cash such as solar plants used in business premises. These assets can be depreciated in Year 1, thus reducing the overall tax burden where this is advantageous. Alternately, there are rental programs available for commercial entities thus treated as OPEX.

Table 2:

Assumptions: Eskom increases Year 2 to 4 = 15%, Year 5 to 8 = 10%, Year 8 to 10= 8%. Includes maintenance, depreciation and interest of prime -1%.

Over a ten-year period you will avoid energy costs of around R125 000 with the benefit of having back-up power. Monthly repayments will be less than for 1 000kWh from Eskom from Day 1 and the savings will become greater over time. Once the system is fully repaid, the 1 000kWh will be at zero cost for at least another 15 years, inverter and battery replacement excluded but solar panels included.

 

Reason 3 – Solar as an investment

Reason 2 dealt with how you can save on costs and have some control over your electricity provision by funding through mechanisms such as your mortgage bond. Reason 3 focuses on how, if you are fortunate enough to have surplus cash you wish to invest, a solar system can provide an excellent investment. The current return on investment per annum on R100 000 is around 5.5% for property, 6.89% for SATRIX and around 6.25% in a call account. Now, thanks to Eskom’s devastating price increases, you can invest that same R100 000 in a PV solar system (enough for a 5kW grid-tie) and you’re looking at returns of 40.7%. Simply put, there is no other investment that offers this return plus the security of knowing you have electricity.

Municipalities are also starting to permit the “feed-in” of surplus electricity that you might generate thereby giving you a credit on your electricity account. Additionally, with a hybrid system (Solar panels plus batteries) you will have an automatic back-up solution for those annoying power outages.

Naturally, we invariably do not stay in the same house for 20 years or more, however the investment in solar will not necessarily be lost should you move. In first-world countries, solar has become so ubiquitous that buyers often make it a requirement in their buying decision. In California, for instance, every 1kWp of installed solar you have on your home attracts an additional $6 000 in the asking price. It must be stated though, that the State of California offers significant rebates for homeowners who have rooftop solar. Perhaps sometime in the distant future we may be so fortunate.

As illustrated in Reason 4 below, a rebate system may provide additional incentives to homeowners and business owners and create the jobs described below.

Solar vs Eskom: A comparison over 20 years
The graph below takes a conservative view of the potential savings to be had by investing in a grid-tied solar system over a 20-year period. In the scenario below, you could realise savings of R1 921 000:

We have based these calculations on a grid-tie system (no battery) costing R79 000, which comprises polycrystalline panels, grid-tie inverter(s), cabling, mounting and installation. Assumptions include:
• Eskom agreed rate in 2020 of R1.98p/kWh – thereafter 15% per annum escalation.
• Current electricity price of R1.45 for less than 600kWh, and R2.30 above 600kWh.
• Normal household consumption of 1 000kWh pm
• 6.2 Hours of sunlight per day.
• Excludes VAT.

 

Reason 4 – Job Creation

One of our most significant challenges in S.A. has always been job creation. Post-Covid 19, we will have an even greater challenge as retrenchments and business liquidations increase. Between 3-million and 7-million jobs could be lost depending on how quickly we can contain and ultimately control the virus.

The consequential impact on food security, crime and further health crises in our country are a national emergency which concerns all of us. Our pre-existing financial woes Pre-Covid 19 and the coincident downgrade to junk status by Moodys, and further into junk status by S&P, only served to see more capital flight from S.A.

These are massive macro-economic problems which most of us have very little control over, however they affect all our lives. Most households in South Africa will see a decline in their lifestyle in the coming months and years, so prioritisation of monthly expenses will be an exercise many of us should already have undertaken. The obvious priorities are food, rent/bond, water and electricity and it is with electricity that we believe savings and savvy investments can be made as per Reason 2 and 3 above.

It is refreshing that the incumbent Minister of Minerals & Energy has been prompt in delivering the IRP2019. The plan addresses many issues that are extremely urgent to the very existence of our fiscus. The absence of affordable energy from a domestic and commercial perspective is probably the most pressing non-human issue facing government and, indeed, every South African.

In my view, the IRP does not go far enough with regards to focusing on renewables, however, I accept that there is a social and political perspective which limits radical transformation of the energy sector in the short term. It is however apposite to note that renewables actually deliver more jobs than current coal- and nuclear-powered mechanisms. The emergence of the “green collar worker” on the international stage should be eagerly pursued in South Africa, especially given the proclivity toward technology jobs by our youth today.

Jobs created from generating electricity
Source: Earthlife Africa

Distributed or self-generated energy could go a long way to addressing these challenges by employing solar and battery storage at the domestic, commercial and industrial level. From a jobs perspective, envisage a scenario where micro-enterprises spring up nationally to perform the installation and maintenance of solar systems at the residential level, very similar to how the DSTV installers operate. At the commercial and industrial level, small enterprises can emerge to fulfil these services for factories, shopping centres and any other larger structures. Business can join hands with government to fulfil the re-skilling of coal workers into “green-collar” workers who market, install and maintain the systems in domestic and commercial buildings.

And yet, we do have a bridge to cross in terms of upskilling the youth for these positions and reskilling existing energy workers toward renewables. It must be said though that renewables and fossil fuel energy are not mutually exclusive but rather complementary to each other. It would be impractical to decommission existing power stations in the short term (less than 10 years) and switch to renewables with storage overnight. This would be politically inexpedient and would create yet more unemployment and therefore more social ills. Additionally, technologies, specifically around energy storage, are in their infancy and still quite expensive.

We are therefore in a position where we have the time to plan the phase-over with little impact on the socio-political imperatives. It is critically important though that we start now with the phase-over in order to transform the energy sector to a more efficient and environmentally-friendly industry. In doing so, we can achieve so many of our objectives of making energy affordable, creating jobs and saving our most critical asset, the planet.

 

Reason 5 – Environmental Issues

Thus far in this article we have ensured continuity of electricity supply, saved on monthly energy costs, put our savings into an asset with incomparable returns, created thousands of jobs, so all that’s left is for us to save the planet.

Sounds like something from a movie, but then again, I think many of us feel like we are starring in a doomsday flick with this global pandemic. The truth is, the world will never be the same again; however, it can be better if we all heed the wake-up call that we have just received. The International Energy Agency estimates that carbon emissions will fall by 8% this year but in order to start reversing climate change, we would have to continue decreasing by 7.6% every year until 2030.

Seems unachievable, as we know that most industries have been shutdown for 6 to 8 weeks across the globe, most vehicles have been stationary, including thousands of airliners, so not something we could do every year. We could however accelerate our migration to renewable energy, electric vehicles, recycle more plastic, paper and water. When we get back to work, although it will possibly look very different to pre-COVID, we should try to not give up the gains we have made from an environmental perspective.

Using our 1 000 kWh per month residential example, a 7.5kw solar system will produce about 12 000kWh a year which will mean around 12 tonnes less of CO2 emissions per year.

Grid-Tied Solar System on a House
Lower CO2 Emissions

In our pursuit to reduce CO2, we concurrently save H2O by moving away from fossil fuels. 95% of our energy is produced by burning coal, heating water and spinning a turbine, simplistically put. To my mind this seems extremely primitive, albeit that the systems that run and manage our grid are highly sophisticated, the core is quite dated science.

Creating energy from coal requires mining effort, processing effort and a myriad of heavy industrial machines to generate electricity. Most concerning is that generating electricity from coal is a water-intensive process and South Africa is challenged with minimal water resources constantly. The table below indicates the volume of water required in making electricity:

Water Used in Electricity Production

Renewables also require some water in their production and operation but it is fractional compared to conventional energy mechanisms. We are seeing a strong shift away from coal-fired power stations globally and in response to that, the larger coal-miners are not investing additional capital in growing their coal assets.

 

Summary

In closing, the COVID-19 lockdown has been a wake-up call for all of us. Nature is fighting back and humankind must recognize that we have to adapt the way we live on our planet. The way we work, play, eat and travel will change over the coming years in response to COVID-19 and possibly new and more virulent pandemics.

Food security and service delivery are threats we need to be aware of at home, commuting and at work. Many of our barriers and warning systems are electronic so there is an element of security offered by a back-up system. More likely though is the absence of electricity while you are working and staying at home that poses most concern: seamless continuity of power would be welcomed.

No doubt there are a select few who have capitalized on the COVID-19 crisis, but for most of us, it has meant, at best, reduction of salary and for some, total loss of income. If you are fortunate enough to not have suffered any impact on your regular income, now may be the time to gain control of those runaway electricity bills. Access to credit in your existing bond, which is now 2% cheaper, could be a smart move toward solar power.

The investment case will only get stronger as electricity becomes more expensive and this is inevitable. Pensioners are one group of our economy who could benefit from such an investment as it is virtually risk free. Cash that may have been directed towards other asset classes can be used to power your own home and deliver incomparable returns.

The job scenario will require the governments commitment to move toward having a large segment of “green collar” workers. It is imperative though that the mind-set of moving from fossil fuels to renewables is not a mutually-exclusive transition. Coal power, thus coal jobs, will be with us for years to come but we must start the transition on a larger, distributed scale.

Finally, all of the above is irrelevant if we choke our atmosphere with CO2 and use water irresponsibly. As shown above, one household can save 12 tonnes of CO2 going into the atmosphere per year. Imagine the savings on CO2 and water large industry can deliver annually.

The world will change post-COVID, exactly how, we do not fully understand yet. My hope is that we see some of the 5 Reasons in our article adopted to contribute towards improving our financial, social and environmental future.

Article by Chris Rodgers, CEO of Sinetech

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Renewables are key to reducing unemployment and crime https://sinetechstore.co.za/renewables-are-key-to-reducing-unemployment-and-crime/ https://sinetechstore.co.za/renewables-are-key-to-reducing-unemployment-and-crime/#respond Fri, 01 Nov 2019 11:58:06 +0000 https://sinetechstore.staging1.wowinteractive.co.za?p=19305 Chris Rodgers, CEO of Sinetech, weighs in on the urgency of adopting a sustainable energy mix in SA and the impact it will have on all levels of society: South

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Chris Rodgers, CEO of Sinetech, weighs in on the urgency of adopting a sustainable energy mix in SA and the impact it will have on all levels of society:

South Africa has incredibly lucrative opportunities for renewable energy given the commercial and social imperatives. The Fourth Industrial Revolution (4IR) is a reality and a further opportunity for South Africa. Like all industrial revolutions, the primary driver is commercial demand which is enabled by technological advantages. As a metaphor, commercial demand is the oxygen and electrical energy is the blood of 4IR.

In the South African context, we have multiple challenges that we are facing at the moment, unemployment, crime, crumbling state infrastructure which affect health, education, transport and every other strategic component of an efficient government. At the core of the problem lies a culture of ineptitude and entitlement which has played out in the form of institutionalised corruption.

Notwithstanding this, most South Africans desire a life that is safe and secure in all respects, including personal security and well-being, job security, educational stability and many other aspects that are, in fact, not just desirous, but human rights.

IRP Goals

The energy sector in S.A. and specifically, the electricity industry has a very significant role to play in moving towards the South Africa we all desire. In the mid-2000s we had started to move towards an energy sector which is well-founded and showed great promise albeit that the electricity infrastructure had taken a back seat in the 90s. The REIPPPP projects for utility-scale renewable energy were established in response to the NDP and IRP 2010 with the following goals:
• Job creation
• Social upliftment
• Broadening economic ownership

The program was initially hugely successful and in fact the “bid-window” concept became a best practice for other countries on the same path. Opportunities for Biomass, Solar and Wind energy were at the forefront with a smattering of hydro, given South Africa’s limited water resources. The economic ownership objective was marginal, with many of the primary bidders originating in Europe, Asia and the U.S. There are, however, a few examples of ownership, but nothing significant that would address the ills of the past and truly empower South Africans to the extent that we desire.

The dark clouds of the Zuma-era saw these programs take a backseat to the pursuit of nuclear power stations which, on the face of it, may appear as foolish and self-serving, however, nuclear does have a role to play in SA’s future energy mix. This would not be in the quantum that the Zuma government intended.

Descent into darkness

In the interim, Eskom has declined to an operational and financial disaster, unprecedented in South African history. An excessive staff complement at salary rates that are unsustainable, rampant corruption, a complete dearth of maintenance on an ageing coal-fleet, cable-theft and a culture of non-payment have rendered Eskom wholly inadequate for the consumers of electricity. The knock-on effect has seen many international industrial manufacturers exit S.A., international fund managers shorting Eskom bonds and local businesses struggling to keep trading without electricity. Net result: more job losses, increased crime and a skills brain-drain that we will live to regret in future years.

A rather gloomy picture for all South Africans but being the nation that we are, we tend to always find ways to get things done when times are hard. We are also blessed with great sunshine, thus PV Solar makes a lot of sense.

Whilst the REIPPP program begins to gain momentum again and the IRP2019 has been published, we are definitely heading in the right direction again. But is it too little too late? Certainly if we rely solely on coal as a core component of our energy mix for the long term, we will fall behind our commitments to the Paris Accord on Carbon Emissions, continue to see tariff increases of between 10% to 20% per annum and have greater exposure to power outages due to ageing coal-fired power stations.

The solution lies in in renewable energy of course, but we also need to look toward gas and storage technologies as part of our future energy mix. The great opportunity is in the affordability and rapid deployment of renewables, typically less than five years in the utility scale and at the smaller scale, a matter of months.

Small Scale Embedded Generation

The IRP2019 will allow for Small Scale Embedded Generators (SSEG) to be deployed nationally in an effort to de-centralise electricity generation. There are two segments to this: Sub- 1 Megawatt which requires registration only with the municipality or Eskom for commercial, industrial or residential properties. These “generators”, typically PV solar installations, will be permitted to feed energy into the grid for a credit on the registrant’s electricity account. The second segment addresses installations of between 1MW to 10MW to apply for a licence to commercially produce and feed energy into the national grid against very specific guidelines. In this example, owners of tracts of land that are not arable may, for example, construct solar or wind farms purely for the purposes of generating electricity to be supplied to the grid.

This could be one of the most significant steps forward not only in addressing our energy demands but also addressing wider social issues such as unemployment. I envisage a scenario where micro-enterprises spring up nationally to perform the installation and maintenance of solar systems at the residential level, very similar to how the DSTV installers operate. At the commercial and industrial level. small enterprises can emerge to fulfil these service for factories, shopping centres and any other larger structures.

Are you a consumer of a prosumer?

This scenario will transition the whole of South Africa into a large distributed generator of electricity and many of us into prosumers rather than just consumers. Inevitably, when a resource like electricity is seen as a valuable resource rather than an expensive service, we will all become much more energy savvy and cautious with how we use electricity.

At the utility scale REIPPP level, areas where coal mining has been the historical centre of energy production – and hence where many energy workers reside – could be transformed into renewable solar farms. Mpumalanga, for example, actually enjoys 3% more sunshine than the Northern Cape, paving the way for skills transition of existing coal and power station workers.

A very significant consideration for moving toward renewables is the water demand that alternative generation sources such as coal and nuclear require. In a water-scarce country like South Africa, and especially give current climate change concerns, water is without doubt our greatest concern in the coming years. Every tonne of coal mined requires 250 litres of water and to produce 1 MW of power from a coal-fired power station requires approximately 692 gallons of water. A nuclear power plant uses around 400 gallons of water to produce 1 MW. Renewables such as solar and wind use negligible amounts of water by comparison.

Green collar jobs are growing

It is refreshing that the incumbent Minister of Minerals & Energy has been prompt in delivering the IRP2019. The plan addresses many issues that are extremely urgent to the very existence of our fiscus. The absence of affordable energy from a domestic and commercial perspective is probably the most pressing issue facing government and, indeed, every South African.

In my view, the IRP does not go far enough with regards to focusing on renewables, however, I accept that there is a social and political perspective which limits radical transformation of the energy sector in the short term. It is however apposite to note that renewables actually deliver more jobs than current coal- and nuclear-powered mechanisms. The emergence of the “green collar worker” on the international stage should be eagerly pursued in South Africa, especially given the proclivity toward technology jobs by our youth today.

Jobs created from generating electricity
Source: Earthlife Africa

And yet, we do have a bridge to cross in terms of upskilling the youth for these positions and reskilling existing energy workers toward renewables. It must be said though that renewables and fossil fuel energy are not mutually exclusive but rather complementary to each other. It would be impractical to decommission existing power stations in the short term (less than 10 years) and switch to renewables with storage overnight. This would be politically inexpedient and would create yet more unemployment and therefore more social ills. Similarly, technologies, specifically around energy storage, are in their infancy and still quite expensive.

We are therefore in a position where we have the time to plan the phase-over with little impact on the socio-political imperatives. It is critically important though that we start now with the phase-over in order to transform the energy sector to a more efficient and environmentally friendly industry. In doing so, we can achieve so many of our objectives of making energy affordable, creating jobs and saving our most critical asset, the planet.

Regulation remains a stumbling block to us achieving this as the regulatory framework, legislation and appropriate amendments take time and, in our case, are taking too long. It is absolutely critical that we invoke the appropriate regulations, as failure to do so could be disastrous for the national grid. Sinetech, as a player in the solar and storage arena, is acutely aware of our responsibility in complying with all the local and national regulations when deploying our solutions. Peoples’ lives depend on all energy companies in adhering to the grid-code, failing which, electricity workers could be severely injured or even killed.

The DoE and NERSA are well down the road in formulating the relevant regulations, however, the public participation and legal promulgation are not happening quickly enough. Similarly, the training regimens cannot be defined until the final legislation is passed as it is key in training the green-collar workers.

Eskom split into three divisions

To outline how I see our energy future, all stakeholders need to be taken into account. The stakeholders broadly are Government, Eskom, DoE, Nersa, municipalities, business and the general population of South Africa. Whilst each one of these may have different priorities, there remains two imperatives that apply to all: affordable and available electricity.

The plan to create three different operating entities from the existing Eskom, namely Generation, Transmission and Distribution, definitely has merits as each entity has different objectives and focus areas. Similarly, as independent operating companies, service level agreements and resultant penalties will hold each entity to a high standard. Remuneration of executives and personnel should be based on the delivery performance of their entity against predefined Key Performance Areas and Indicators.

As an example, Generation would look towards electricity production at the lowest cost which inevitably would be renewables over the longer term. No doubt, government would apply certain requirements with regard to job retention as it is in no-one’s interest to see thousands of workers lose their jobs. This would require the reskilling of the existing coal workers into renewable energy workers and to de-commission ageing coal plants simultaneous to retirement or re-employment of the workers in the renewable sector.

Training is the key

In my nirvana state of the energy market, training would be a top priority and will create considerable opportunities both for the institutes that train and the students who receive the training. Within Sinetech, we have a 20-seat training centre where students, young and old, are trained on solar, battery and inverter technology, how it works, how to install it and what regulations require of them. We would like to see more companies offering this and would also like to expand our efforts in this space, as education is fundamental in the new economy.
With the requisite skills, these students can seek employment in what is the fastest growing sector in the world today. The entrepreneurs amongst them can establish their own SME business deploying solar and standby power with the help of entities such as the DTI, IDC or even the World Bank via their International Finance Corporation.

Having spent 30 years of my life in the ICT industry since before the inception of the PC, I have seen how an industry can fulfil so many needs and create so many opportunities, even prior to the connected world we have today. Electricity is a far more ubiquitous need as we all need it more and more, thus the opportunity that exists around 4IR is actually exponentially larger than the advent of the PC, Internet, VOIP and everything else the ICT industry has delivered. The key to embracing the change in how we do business and live our everyday lives is education. Government need to focus on two things if South Africa is to prosper, Education and De-regulation. Everything else will fall into line behind these efforts. Well educated, employed people do not commit crime generally, rather they commit to growing a country that offers quality of life to all its citizens.

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