Energising South African Cities & Towns - City Energy Support Unit

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o v e r v i e wGREEN ELECTRICITYbrings opportunitiesGREEN ELECTRICITY offers excellentopportunities for sustainabledevelopment within the context ofglobal warming. It is electricity generatedin a sustainable manner fromrenewable energy resources such aswind, solar, wave, geothermal andcertain biomass and hydro energy.The key is not only that GreenElectricity is derived from renewableenergy resources, but that it is generatedin a sustainable manner.Is Green Electricity relevantin a developing country likeSouth Africa?It is essential to provide basic accessto energy services: electricity is partof the energy mix that is needed forsocial and economic development.This needs to be provided in themost sustainable way possible sothat South Africans and the economycan remain competitive andhealthy in the longer term.Right now, South Africa needsto make decisions regarding newelectricity generation capacity, asthe country is expected to run outof peaking capacity within the nextfew years and baseload capacitywithin 5–7 years. Green power generationoffers a real opportunity tomove away from environmentallydamaging and economically costlyforms of electricity generation.What are the benefits ofGreen Electricity?Green electricity has unique advantagesover conventional electricity.• It is less damaging to health andthe local and global environment.• It provides more long-termemployment than conventionalenergy systems.• It can be implemented at anyscale: from 1kW to 1GW.• It can be implemented quickly,with shorter lead times (and thereforeless risk).GREEN POWER FOR THE WSSDAGAMA Energy together with project partners, including the NER, City Power and Green Generators,facilitated the supply of 845 MWh of Green Electricity to the UBUNTU Village and NASREC ExpoCentrefor the duration of the World Summit on Sustainable Development in September 2002. The venuespaid 50 c/kWh for this Green Electricity which was supplied by a diverse range of green generatorsincluding bagasse, small hydro, solar, wind and geothermal generators. The project was supportedby USAID.Arising from this pilot project, City Power – as a leading distributor of electricity in SA – hascommitted to supply Green Electricity to consumers in 2003.WHAT DOES GREENELECTRICIT Y COST?Green electricity costs about the sameas ‘normal’ electricity, but the full costsof the latter are not included in the pricewe pay. These hidden costs are paidthrough taxes (eg, the costs of mining,nuclear accidents or oil spills) and thedepletion of the quality of health andthe environment.So, the present cost of ‘normal’ electricitycan range between 15–40 c/kWh,depending on the kind of tariff chargedby the local supplier, whereas GreenElectricity has been costed at approximately50 c/kWh. This was the priceapproved by the NER for City Power tosupply the main venues of the WSSDin 2002, and reflects the full costs ofpower generation from new wind farmsin South Africa.Overall the costs of Green Electricitywill fall, with economies of scale and technicaldevelopments, while conventionalelectricity costs will rise, to reflect fullcosts of production and increased inputcosts for land, water and fuels.• It offers empowerment opportunitiesbecause it can also beowned by individuals and SMEs.• It can be implemented anywhereon (or off) the national grid andhence provide for more decentralisedeconomic development.• It offers an easy but meaningfulway to demonstrate commitmentto more sustainable operatingpolicies and more equitable triplebottom line reporting.• It assists government objectivesof increasing the amount of renewableenergy in the economy.What can local authorities do?Local authorities in South Africa canhave a big impact on climate changebecause they are responsible for thedistribution of electricity to thousandsof consumers, and are largeconsumers of electricity themselves.Local authorities can also beleaders in getting their cities ontogreen power.24 ENERGISING SOUTH AFRICAN CITIES & TOWNS
COMMUNITYELECTRICITY SUPPLYModels for developing a greener futureLOCAL COMMUNITIES all overthe world are playing pivotal rolesin shaping their energy futures,including electricity supply. Deregulatedand decentralised energysectors have resulted in increasedlocal autonomy, which has enabledlocal governments, independentpower producers and others torespond to opportunities, in somecases more readily and with furtherreaching effects than higher levels ofgovernment.China: Decentralisationpromotes renewableelectrificationFor more than 20 years China hasseen remarkable development inthe field of small hydro power(SHP). The country has over 43 000SHP stations – more than 26GW ofinstalled capacity, generating 87.1billion kWh annually and employing1,2 billion people.The Chinese government haslaunched a series of programmes topromote SHP development in ruraland urban areas. Unlike the centraliseddevelopment model in otherdeveloping countries, most SHPdevelopment here occurs throughdecentralised management. Sincethe early 1960s, a series of preferentialpolicies have been introducedto encourage local governments todevelop local resources. As a result,SHP planning, construction, designand operation are undertaken bylocal governments. These policieshave promoted the development ofthe SHPs’ own supply areas, involvingan integrated power generation,supply and distribution system.Joint investment by individuals,community or private enterprises isencouraged with investment fromoutside, including overseas markets.Moreover, government has ensuredthat the developer can get financialsupport from different levels of governmentand from banks in the formof soft loans and grants.The City of Santa MonicaIn 1999, Santa Monica City Counciladopted a strategic energy planthat launched the city as a nationalleader in renewable energy: theSanta Monica City Council votedunanimously to exclusively userenewable electricity in all city-runfacilities. It focuses on wind, solarand geothermal energy.The city awarded a contractto a certified supplier to supplygreen power to facilities as largeas the Santa Monica airport and assmall as the public bathrooms onthe beach. Its commitment to 100%Green Electricity increased the city’sannual electricity costs by approximately5%, but the additional costwas perceived as prudent and areasonable investment in protectingenvironmental and public health.Although not focused only onrenewables, another related componentof the strategic plan is thepromotion of distributed electricitygeneration. These include photovoltaics(PV), wind turbines, fuelcells and natural gas microturbinesthat can provide site-specific supplyof electricity while putting surpluspower into the power grid. Thecity’s Civic Centre is fed by PV asis the ferris wheel on Santa Monicapier. A PV system in conjunctionwith a natural gas microturbinesupplies 90% of tenants’ needs in a44-unit affordable housing projectAt the heart of Santa Monica’sinitiatives is a shared vision thatwasteful energy use causes negativeenvironmental impacts and thatcomprehensive energy efficiencyefforts will result in significant longtermeconomic benefits.Santa Monica is working withother municipalities and organisationsto push state energy legislationtoward greater emphasis on renewablegeneration and local control.Toronto’s WindShareCo-operative kick startsa local wind industryToronto adopted a co-operativemodel to spur development of renewableenergy in a province withno prior wind power projects.WindShare, a project developedby the Toronto Renewable EnergyCo-operative (TREC) and TorontoHydro Energy Services is developingtwo wind turbines on the city’swaterfront. These will be the firstutility-scale turbines in an urbanenvironment in North America.The WindShare project is intendedto profile wind power as a solutionto smog and global climate changeand showcase a community-basedinitiative for renewable energy.The impetus for WindSharecame from TREC’s founders, aneighbourhood community group,concerned that leaders in businessand government were too slow torespond to pressing environmentalissues. It was also conceived as aunique opportunity for citizens togenerate green power in Ontario’snew deregulated electricity marketplace.To date, the co-operativehas more than 450 individual andcorporate members who have investedenough to cover the firstturbine’s development costs andsome for the second.c a s e s t u d yENERGISING SOUTH AFRICAN CITIES & TOWNS 25
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Energising South African Cities & Towns - City Energy Support Unit

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