Eskom IDM
Small-scale Renewable Energy
Pilot programme
Lodine Redelinghuys

Background to small-scale renewable energy
The Eskom IDM programme , in consultation with NERSA, will be piloting
(with immediate effect from 1 June 2012) the inclusion of small-scale renewable energy solutions
The initial pilot phase will target 10 MWs from small-scale renewable energy solutions that will displace or reduce existing electricity supply requirements .
The incentive will initially be exclusively available under the Standard Offer at a rate of R1.20 per kWh to be paid over the usual Standard Offer contract period of 3 years .

Project Considerations
• Pilot Phase only available to Commercial, Industrial, Agriculture applications
• Rebate only applicable to load reduction portion with-in program specific criteria (i.e. between 06h00-22h00 weekdays only for SOP )
• Not available for predominant electricity generation projects. IDM program focus on load reduction on site.
• Generation projects fall outside IDM mandate and forms part of DOE programs
• Not available for existing installations
• For projects between 10kW and 50kW approval will be subject to M&V costs
• Projects will only be considered if all required documentation is included in submission pack
• This program excludes Solar water (thermal) heating

What is entailed?
Participating solution will be limited in size to a minimum
10kW and a maximum 1 MW installed peak capacity from a renewable energy solution. For the purpose of this initiative Renewable energy has been defined as:
Energy that is derived from resources that are naturally regenerative or are practically inexhaustible, such as biomass waste/residue, heat (geothermal, solar, thermal gradient, ground source heat), moving water (hydro, tidal, and wave power), and wind energy, produced from zero or low carbon source technologies. For this purpose municipal solid waste will also be considered a source of renewable energy.
*Approval of projects between 10kW and 50kW will depend on M&V costs
**Solar hot water (thermal) projects excluded – already part of SOP program

Who qualifies?
Small-scale renewable installations will have to meet the following qualification requirements :
• Only equipment installed on the host customer’s side of the meter will be eligible.
• Systems must be new and in compliance with all applicable performance and safety standards (applicable to all components of the installation).
• Stand-alone systems (i.e. applications that are not grid tied) must replace an existing grid connection/supply therefore substituting energy that would have been drawn from the grid.
• Grid tied systems must comply with all Regulatory and embedded generation interconnection requirements . Where relevant a letter from the relevant local authority / electricity utility will be required as part of the application to confirm their knowledge and acceptance of the (proposed/designed) connection onto the network.

What qualifies?
Per day
0
0
3
2
1
3
‘baseline’
24
‘baseline’
24
Incentive payable
Isolated system*
Supplemental / input electricity only* (no flow into the grid)
Net Generation-
Energy flow
(Banking or selling)
Eskom clients
1 IDM pays in full IDM pays in full IDM pays in full
2 IDM pays in full IDM pays in full IDM pays in full
3 IDM pays up to baseline (red dashed line)
IDM pays up to red dashed line
(flow of energy onto the grid restricted)
IDM pays up to red dashed line (flow of energy onto the grid – separate contract with
Supply Authority)
Municipal clients
1 IDM pays in full IDM pays in full IDM pays in full
2 IDM pays in full IDM pays in full IDM pays in full
3 IDM pays up to baseline (red dashed line)
IDM pays up to red dashed line
(flow of energy onto the grid restricted)
I
Where allowed by
Municipality - IDM pays up to red dashed line (flow of energy onto the grid – separate contract with
Supply Authority)

How to participate?
The incentive will initially be exclusively available under the Standard Offer at a rate of R1.20 per kWh to be paid over the usual Standard Offer contract period of 3 years
(standard SOP contract still apply)
Projects that save between 10kW and 1 MW can qualify
Participation details and requirements for the Standard
Offer programme is available at http://www.eskomidm.co.za/industrial/sop
Alternatively contact your nearest Eskom Regional
Energy Services office.

Additional provisions and requirements
A few additional provisions and requirements are applicable to small-scale renewable energy solutions applying for the
Standard Offer incentive:
• An electrical design incl a list of applicable standards and regulations certified by a Competent person /Professional engineer will be required as part of the application.
• A structural design incl a list of applicable standards and regulations certified by a Competent person /Professional engineer will be required as part of the application.
• A letter from the electricity supplier (Municipality or Eskom as relevant) confirming knowledge and acceptance of the proposed/designed network connection and registration of the project as per NERSA requirements (if applicable).
• Close out and the first incentive payment will be subject to an as built confirmation and an audit of the above.

Specifications and standards have been identified for the components of a typical RE installation
A
Renewable power source
B
C
Energy storage
(optional)
End use (residential, agricultural, commercial, industrial, other)
D
Electricity network/grid
(electrical utility)
Examples of standard Focus Gist
A A range of IEC and EN standards pertaining to the respective energy sources and equipment
Installation standards and building regulations
B Standards and specifications relating to batteries
C
SANS 10142 – 1: 2009 “ The Wiring Code ’
(The wiring of premises Part 1: Low voltage installations)
Technical performance, and quality
Installation requirements
Technical performance, and quality
Installations smaller than 1,000,V a.c. or
1,500V d.c
Range depending on technology type
Appropriate installation for optimal operation
Provides general specifications for standardisation of batteries, as well as physical and electrical, and safety specifications
Governs the safety and design, material and equipment specified and installed, the wiring of premises and the testing of the installation.
Installation, earthing, energy storage, etc. NRS 052-3:2008
Environmental impact and other site selection legislation
By-laws
D
NRS 097
DST 34-1665
Off-grid solar home systems
Extent of environmental impact assessment requirements
TBD
Grid interconnection for embedded generation:
Installations <100kW
Distribution Standard for the Interconnection of
Embedded Generation (DSiEG): Installations
100kW – 1 MW*
Dependent on site, ownership, current use,
Standards for connecting to the grid that includes aspects such as safety and protection, metering and utility compatibility.
Interconnection standard covers legal requirements, operational safety, and network interface. This standard serves to fulfil
Eskom Distribution’s obligation under Section 8.2(4) of the South
African Distribution Code: Network Code.
* The responsibility lies with the project developer to ensure that all aspects of the installation comply with all relevant quality, safety and performance standards as well as legal and regulatory requirements. A list of standards and specifications of potential relevance to the various configurations of the illustrated components are specified on the Eskom IDM website

Standard Offer Process Overview (…1)
Project Approval

Standard Offer Process Overview (…2)

Standard Offer Process for Renewables http://www.eskomidm.co.za/industrial/sop
R1.20/kWh
Rate for smallscale RE
R1.20/kWh

Standard Offer Process for Renewables
• Electrical design certified by a qualified engineer
• Structural design certified by a qualified engineer
• Letter from the electricity supplier (Municipality or Eskom as relevant) confirming knowledge and acceptance of the proposed/designed network connection and registration of the project as per NERSA requirements (if applicable).

Standard Offer Process for Renewables

Standard Offer Process for Renewables
Renewable energy projects that saves between 10kW and 1MW qualifies for
Standard Offer

Standard Offer Process for Renewables

Standard Offer Process for Renewables
Ring-fenced budget allocation for Renewables
Close out and the first incentive payment will be subject to an as built confirmation and an audit of the installation