The need for sustainable energy

Is there enough energy to sustain the world in the future? And what are the implications for global warming? These are two key questions underpinning sustainability and energy.

Global energy is currently largely fossil fuel-based. The major non-renewable fossil fuels are oil, coal and natural gas, while alternative sources of energy include nuclear power and renewable sources such as biofuels, solar, wind, geothermal and hydro-electric power. As a result of rapid global urbanization, the demand for electricity will grow faster than any other energy source over the next few decades. Key issues that need to be considered are:

• The generation of electricity
• The lifespan of liquid fuels
• Energy security
• Biofuels

While coal has been the fuel most widely used in  the generation of  electricity, the use of nuclear power is increasing rapidly, as is gas-fired generation. Much has been written about biofuels as the "long-term answer" to the world’s energy problems, and consumption is increasing. The increasing amount of farmland that has converted to biofuel crops, however, has brought along its own problems.

South Africa has built Africa’s most advanced economy on the back of cheap electricity. However, this has been at great cost to the environment. South Africa is one of the world’s worst offenders in polluting the atmosphere. In 2007 South Africa released an Energy Security Master Plan - Electricity that looks at electricity supply up until 2025. The Master Plan aims to ensure that diverse energy resources, in sustainable quantities, at affordable prices, are available to all South Africans. One of the key uncertainties identified in the Plan is the impact that the various elements of the Plan will have on the environment and particularly the emission of greenhouse gases.

CLEAN ENERGY TAKES LION'S SHARE OF FUNDING FROM FOSSIL FUELS IN 2008 - UN REPORT New York, Jun 3 2009 2:00PM Over half the $250 billion invested in new power generating capacity worldwide in 2008 was spent on renewable energy sources, according to a new United Nations Environment Programme (UNEP) report launched today.
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UN-BACKED ROADMAP FOR HALVING AUTO EMISSIONS UNVEILED IN GENEVA New York, Mar 4 2009 1:00PM With the world's car fleet expected to triple by 2050, a road map to halve greenhouse gas emissions from automobiles by that date was laid out today at the Geneva Motor Show by the United Nations Environment Programme (UNEP) and partner organizations.
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NERSA

The National Energy Regulator of South Africa (NERSA) is tasked with the economic regulation of the electricity industry (under the Electricity Regulation Act). Under this mandate it deals with licensing and compliance, pricing and tariffs, electricity infrastructure planning and regulatory reform. NERSA also regulates the petroleum pipelines and piped-gas industries.

NERSA has set tariff pricing for renewable energy sources that feed into the national electricity grid, called the REFIT Guidelines (Renewable Energy Feed-in Tariff Guidelines. For the tariffs and permitted renewable sources please see the NERSA website.

www.nersa.org.za

NERSA is a member of the African Forum for Utility Regulators, established under NEPAD, www.afurnet.org

Renewable Energy Feed-in Tariff (REFIT) Guidelines

In July 2009, NERSA (the National Energy Regulator of South Africa) issued a consultation paper - Renewable Energy Feed-in Tariff Phase 2.

The paper adds new technologies to the existing Refit guidelines. The new technologies are: biomass, biogas, concentrated solar without storage, photovoltaic (PV), concentrating photovoltaic, concentrated solar power (central tower).

The omission of PV from the first Refit guidelines passed in March 2009 was a bone of contention in the renewables industry. The new paper includes PV, but only large-scale PV (greater than 1 MW). The paper says this is due to economies of scale. It adds that small-scale PV systems will be considered at a later stage during the annual Refit review.

Photovoltaic is the direct conversion of light into electricity using a photovoltaic device (or cell). Concentrating photovoltaic is a system where sunlight is concentrated on photovoltaic surfaces for the purpose of generating electricity. The surfaces are often mounted on a flexible mechanism to track the sun's moves.

NERSA invites written public comments on its Refit 2 paper. The deadline is 20 August 2009. The Energy Regulator is scheduled to approve Refit 2 on 29 October 2009. The email address for comments is refit2009@nersa.org.za See www.nersa.org.za for more details and the consultation paper.

In March 2009, NERSA issued its long-awaited tariff rates for renewable energy sources to feed into the national Eskom grid. The feed-in tariffs - set at variable rates and with conditions – cover the following: wind, small hydro, landfill gas and concentrated solar.

NERSA says the tariffs have been set at a rate that covers the cost of generation plus a 'reasonable profit' to induce developers to invest.

"The approved REFIT Guidelines will create an enabling environment for achieving government's 10 000 GWh renewable energy target by 2013 and sustaining growth beyond that target," says NERSA.

The REFIT tariffs have received some criticism. For instance, that renewable energy source solar photovoltaic was surprisingly excluded.

www.nersa.org.za

Energy Efficiency Tax Allowance Proposed

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