The world is changing rapidly, and in order to keep up with the times, you need local knowledge with a global background.

The world is changing rapidly, and in order to keep up with the times, you need local knowledge with a global background.

In the final episode of the Standard Bank PowerPulse podcast series, BizNews founder Alec Hogg joined the ranks of Deerosh Maharaj, Senior Manager of Natural Resources, Electricity, and Sustainable Solutions for Standard Bank's PowerPulse platform; Paul Vermeulen, Chief Engineer of Renewable Energy, City of Johannesburg; and Hendrik Raedani, chief engineer of alternative and renewable energy in Ekurhuleni City, disassembles and installs solar photovoltaic installations for companies that rely on alternative energy sources to ease load shedding. Before starting a solar photovoltaic installation, companies should understand the regulatory and compliance factors, as well as the consequences of not complying with regulations and procedures.

Deerosh Maharaj's legislation on the management of corporate solar photovoltaic power generation

As a bank, we have to get close to this point. From the way we understand it, the overall regulatory legislation is basically the Electricity Regulatory Law. However, the regulatory process for the legal connection of power generation assets is much more complicated because it focuses on the frame of reference that needs to be followed. First, you have obtained the NERSA framework, which consists of the NERSA licensing requirements.

This refers to the two exemptions in the attached table. You also have rules and standards that you need to follow. In this particular area, we see that the government has turned to support decentralized power generation, and they recently raised the threshold from 1 MW to 100 MW. Therefore, any system below 100 megawatts no longer requires a NERSA license. However, there are [must follow] rules and standards.

Secondly, you also need to comply with the grid code, which is the entire other reference system that must be followed. Finally, collaborate and sign from the utility you linked. This must be observed. Sometimes, it is necessary to sign a connection agreement. So, broadly speaking, this is what the regulatory environment looks like.

Regarding the different types of installations allowed

You have your grid-connected system, which is essentially a solar photovoltaic array and an inverter. In these cases, these systems will provide power when the sun is shining, but it will not provide you with a backup solution. In the event of load shedding, the system will also be technically shut down according to the content allowed by the grid code and the configuration of the inverter. You also have a backup system or a hybrid system, which contains some battery storage components. In these systems, you can safely island the system, so you can still use solar and batteries in the event of load shedding. Then you have an off-grid system, which is not connected to the grid. 

With the off-grid system, you can be completely self-reliant. However, without a safety net, when you leave the grid, the cost is quite astronomical, because battery storage is still quite an expensive job. The backup system is a kind of challenge, especially in the case of load shedding, we have already seen the supply side. It is becoming an increasingly feasible solution. You are basically saying that you want solar power, but you also want a four-hour backup. Although the cost is high, sometimes when you determine the cost of downtime, you can justify it from a cash flow perspective.

The simplest system to prove from a cash flow perspective is the standard system. However, you do not have this kind of backup function. Therefore, when there is a load shedding, even if you have solar energy, you will [still be affected]. Another consideration is to feed back into the grid. Eskom allows you to conduct banking, but you must follow the process, register, and ensure that the agreement is in place. You basically use the Eskom grid as your storage capacity. Many municipalities also allow this.  

Paul Vermeulen talks about what companies should pay attention to before starting solar photovoltaic installations

First of all, the National Distribution Network Regulation is a mandatory legislation that requires end users or customers to notify network service providers of their intention to connect any form of power plant to the grid. The first problem on our side is safety, which usually applies to tidal inverters. This is a device that can run in parallel with the grid. The device must pass the certification we call NRS 097. This is not mandatory, but Eskom and all municipalities require compliance with this specific code. The specification says that the inverter device must be able to detect when the grid stops running and stop returning energy.

Therefore, from our point of view, this is a critical security issue. We expect that the inverter must be able to detect a dead grid and immediately stop feeding energy back to the grid. It does not have to stop supplying power to the local area, but it must absolutely stop feeding back electricity. The second major concern is that the reason we made this legislation is that we need to prevent power quality problems. I mean you are connected to a network, and your neighbors are connected to the same network. For example, if you propose a system that is too large, it may introduce overvoltage conditions, which will start to affect your neighbors. 

There needs to be an application process, you can come to us and request to connect this particular device or a device of this size at this point in your network. Then we use NRS 097 to stick to [determine if it fits] within their so-called simplified connection standard. If so, technically, your system looks good, and you can continue to install it now. And, in fact, the same specification also stipulates that if your system is greater than 350 kilowatts, you should conduct network research to ensure that these effects will not occur on the network. 

Hendrik Raedani on the consequences of non-compliance with rules and procedures

If we give our customers a chance to register and they don't, we have the right to disconnect the power supply, because most of these systems are connected to the grid in time. This means they need to deliver voltage from our grid to operate. Therefore, if they do not want to apply to register their system, we are fully entitled to disconnect. When I checked the city of Cape Town last time, they even offered their customers a grace period for the next three months. If you don't register, we will cut off the power. There are some fines, nearly 6,000.

As the city of Ekurhuleni, we have not yet reached the point where we want to enforce it, because once you do, you have the ability to handle the influx of registrations internally. For now, people still have enough time to register. I found that most industrial customers are registered, not residential customers, because most installers are more professional. They understand the regulations; 80% to 90% of applications come from commercial customers and their installers, because they are more reputable, so they will promote registration with the council.

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