Responding to the National Energy Crisis
- The Energy Game-Changer Process
Department of Trade and Investment, City of Cape Town |10 March 2015
The City Recognises the Impact of the Energy Crisis
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The impacts are being felt all over the City
Our economy is suffering from lost production
Some sectors are severely impacted upon
The cost of unserved energy is R75 kwh
Security concerns, particularly in poorer communities
Chasing away investment and dissuading current businesses
from expanding their operations
Responding to the National Energy Crisis - The Energy Game-Changer Process
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Energy Security Design Lab
Problem statement
“What can the WCG, City and local
municipalities do to enable all actors to help
minimise the impact of power shortages and
load shedding on the Western Cape economy
and jobs over the next 5 years?”
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Key contextual considerations in seeking solutions
• Constitutional mandates mean there are limited
levers within direct control of provincial and local
government in SA (but there are some, and
mandates are open to interpretation!)
• Energy security, affordability, municipal financial
sustainability, job creation and environmental
sustainability all need to be considered
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Government can help in 2 ways
1. Using things within their direct control to minimise
the impact of the crisis
– Load shedding approach and schedule design
2. Enable/drive customers (business and residential)
to implement useful solutions
– Clear, simple rules
– Incentives (pricing, subsidies, etc)
– Availability (single point of contact) and
responsiveness
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Influence and buy-in
• We need to engage with other regions/cities to find
solutions that are replicable and have broad
support – to succeed this cannot be a Western
Cape agenda!
• We need to find load shedding solutions with Eskom
as City and Eskom supply areas in Cape Town are
adjacent and consistency will be key to customer
buy-in/acceptance
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We are solving for hundreds of megawatts
Load Shedding Demand
Stage
Reduction (%)
Demand
Reduction
(MW) (COCT)
Demand
Reduction
(WC)*
Stage 1
5%
80MW
130MW
Stage 2
10%
160MW
260MW
Stage 3
15%
240MW
400MW
* Assumes CCT supply area is ±75% of CT demand and CT represents
±80% of WC electricity use
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City’s priorities and plan to mitigate
the impact of loadshedding
Framing
• No silver bullet, but there are a number of things
that jointly can help get us out of this
• Optimizing for long term solution when making
immediate solutions
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The City is committed to exploring 10 priority actions
• 4 levers with immediate impact
• 6 things to enable short to medium term solutions
and improvements to energy security
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Immediate levers
1. Load shedding certainty to enable businesses to plan better
e.g. Commitment to Stage 1 or 2 load shedding for the
month whether it is needed by Eskom or not
2. Use City-controlled levers (e.g. pumped storage, geyser
control) to help avoid or mitigate load shedding
3. Load shedding schedule design
4. Contracted demand response to avoid or mitigate load
shedding
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Short- to medium term solutions
5. Try and agree a baseline with Eskom
6. Incentivising rooftop PV
7. Direct power purchase agreements (PPAs) with
independent power producers (IPPs) for renewables
and gas
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Short- to medium term solutions
8. Solar water heaters and heat pumps
9. Time-of-use tariffs
e.g. investigate cheap night time power to enable
load shifting through battery systems
10. Show leadership with our own energy use
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Thank You
For queries contact Lance.Greyling@capetown.gov.za