New research on Rooftop Solar Systems
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Rooftop solar photovoltaic (PV) systems currently contribute a limited amount of power to South Africa’s electricity supply, with installed capacity estimated at 150MW. But these systems are characterised by low capital and operation and maintenance expenditure requirements, and are privately financed. And advances in PV technologies with economies of scale in production have resulted in declining costs over the past decade.
Compare costs
Estimated levelised cost of electricity for a residential PV system: R1.18/kWh
Estimated levelised cost of electricity for a commercial PV system: R0.91/kWh
Independent power producer coal: R0.90/kWh
Independent power producer PV: R0.90/kWh
Cogeneration: R1.15/kWh
Bruce Dzenga's full briefing note, "Power Generation Technologies Feasibility: Grid-tied Rooftop Solar PV", is available below. Contact Dzenga on +27 (0)12 395 6770 and
bruce.dzenga@treasury.gov.za.
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Assistance to National Treasury on assessing Eskom's financial sustainability
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The unit worked closely with divisions of the National Treasury to assess Eskom’s situation, explore different solutions and package a set of proposals on behalf of an inter-departmental task team, for acceptance by policy makers. Policy makers were assisted over several months to explore the various aspects of proposals on the table, and the unit provided additional analysis to support decision-making, at policy makers’ request. The process culminated in the proposal of a particular solution, known as the Government Support Package, which was adopted by Cabinet in September 2014. Following this, the unit continues to support Treasury and the task team in overseeing the implementation of the support package, and to track developments in Eskom’s financial sustainability.
Following the adopted of the package, the unit continued to support ALM and the Task Team in overseeing the implementation of its various solutions, and to track developments in Eskom’s financial sustainability. The focus then also turned to looking at longer-term energy sector issues, for which the unit continued to provide analytical support to the Task Team.
With the establishment of the Eskom War Room in late 2014, the unit was again called upon to assist (as part of Treasury), given the extensive knowledge that had been built up of the electricity industry, alongside economic and financial assessment skills, which were needed to guide the key workstreams underway. The focus expanded to include not just Eskom’s medium-term financial sustainability, but also short-term challenges, as well the need to look at immediate and medium-term electricity supply concerns. The energy security of South Africa rests critically on resolving these issues, and so the unit is expected to continue providing support to the Task Team for the foreseeable future.