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The Impact of Slow Uptake of Renewable Energy in South Africa with Emphasis on the Solar Energy Type Systems

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The Impact of Slow Uptake of Renewable Energy in South Africa with Emphasis on the Solar Energy Type Systems COPYRIGHT AND CITATION CONSIDERATIONS FOR THIS THESIS/ DISSERTATION o Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. o NonCommercial — You may not use the material for commercial purposes. o ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original. How to cite this thesis Surname, Initial(s). (2012) Title of the thesis or dissertation. PhD. (Chemistry)/ M.Sc. (Physics)/ M.A. (Philosophy)/M.Com. (Finance) etc. [Unpublished]: University of Johannesburg. Retrieved from: https://ujdigispace.uj.ac.za (Accessed: Date). THE IMPACT OF SLOW UPTAKE OF RENEWABLE ENERGY IN SOUTH AFRICA WITH EMPHASIS ON THE SOLAR ENERGY TYPE SYSTEMS By INNOCENT MDUDUZI MNCUBE 201495178 Submitted as a full Dissertation for the Degree Masters in Engineering Electrical and Electronic University of Johannesburg Supervisor: Prof B Twala 2015 DECLARATION By submitting this dissertation, I declare that the entirety of the work contained therein is my own, original work and that I have not previously in its entirety submitted it for obtaining any other qualification. I declare that all sources used or quoted, have been indicated and acknowledged by means of complete references, and that this dissertation was not submitted by any other person at any other university for a degree. Signature: ……………………………………………… Name: ………………………………………………...... Date: …………………………………………………… ACKNOWLEDGEMENTS I would like to humbly highlight the following people that have made this dissertation possible: My wife Portia Tshidi Mncube for allowing me time to conduct this dissertation and encourage me, on the same note I also want to extend my sincere gratitude to my kids Nthabiseng, Khambule and Combela for giving me strength to strive to make our future better. My Supervisor Prof B. Twala for giving me direction and support on this project. At some stage I wanted to quit but he gave me strength and encouragement that I will be able to finish and even study further for Ph.D. Tshilidzi Thenga Director: Energy at Ekurhuleni Municipality, our conversations were casual but almost everything we discussed assisted me in greater detail in this dissertation and the material and information that I received from you. Thank you as well for allowing me to use Ekurhuleni as an example for this dissertation. My mother Mavis Mncube even though she may not know or understand what I am doing on this dissertation, I hold much higher respect for her in believing in education and taking us to school. She always say “education is your future”. My friend Mafika Thusi, I can say much more about you but thank you for giving me inspiration to study. ABSTRACT The dissertation examines the slow uptake of renewable energy in South Africa, especially solar type energy systems. It aims to identify and understand the issues and the unique dynamics involved in the local government (municipalities) since they are at the forefront of electricity distribution. The dissertation takes a qualitative research approach and a triangulation of data collection methods, combined with a relatively broad literature study to capture the complexity of the related issues. The contextual focus includes the macro-economic factors that contribute to the environment in which municipalities operate, developmental, economic, political and social aspects and the related experience of poverty, urbanization and unemployment. Furthermore, the dissertation attempts to show that a relationship exists between a slow uptake of renewable energy technologies, particularly solar energy and the loss of electricity sales revenue by municipalities in recent times. Key findings indicate that the electricity sales revenue of municipalities is affected by the introduction of renewable energy technologies. This in turn causes reluctance in promoting such technologies from the decision makers at municipal level, because electricity distribution income is a key contributor to municipal revenue without which municipalities will not be able to meet their constitutional obligations. These findings are supported by the view of this dissertation when comparing electricity sales revenue of metropolitan municipalities over the past five years and also studying municipal legal framework. A variety of related theoretical work is chosen in this dissertation as a useful framework for analysis in order to approach issues of comparing the relationship between depleting municipal electricity sales revenue and the slow uptake of the renewable energy type system with a major focus on solar energy. i TABLE OF CONTENTS 1 CHAPTER ONE……………..………………………….…………..............................................1 INTRODUCTION………………………………………………………………………………………………..1 MOTIVATION OF STUDY ............................................................................................... 1 STRUCTURE OF THE REPORT ....................................................................................... 2 PROBLEM STATEMENT ................................................................................................. 4 RESEARCH OBJECTIVES ................................................................................................. 4 2 CHAPTER TWO ................................................................................................. 9 BACKGROUND REVIEW................................................................................................. 9 2.1.1 Electricity Industry Background .......................................................................... 9 2.1.2 Legal Framework of Municipalities ................................................................... 10 2.1.3 Free Basic Electricity ........................................................................................... 11 2.1.4 Municipal Fiscal Framework .............................................................................. 15 2.1.5 Electricity Regulation and National Policy ....................................................... 16 SOLAR ENERGY ............................................................................................................ 19 2.2.1 Solar Home Systems ........................................................................................... 23 2.2.2 Solar Portable Lights ........................................................................................... 23 2.2.3 Solar Bottle Bulb .................................................................................................. 26 ii 2.2.4 Solar Street Light ................................................................................................. 27 2.2.5 Cooking ................................................................................................................. 28 2.2.6 Solar Box Cooker and Oven ............................................................................... 29 2.2.7 Water Heating ..................................................................................................... 29 3 CHAPTER THREE ............................................................................................. 33 RESEARCH DESIGN AND METHODOLOGY ................................................................ 33 3.1.1 Limitations and Assumptions ............................................................................ 34 3.1.2 Eligibility and Reliability...................................................................................... 35 3.1.3 Ethical Issues ........................................................................................................ 36 STUDY METHODOLOGY .............................................................................................. 37 3.2.1 Constitutional Mandate of National and Provincial Government ................ 38 3.2.2 City of Cape Town Electricity Sales Revenue ................................................... 38 3.2.3 Cross Subsidization across All Municipal Services .......................................... 41 3.2.4 Ethekwini Municipality Electricity Sales Revenue .......................................... 42 3.2.5 National Electrification Programme ................................................................. 46 3.2.6 Inclining Block Tariffs (IBTs) ............................................................................... 47 3.2.7 Previous Studies .................................................................................................. 49 iii 3.2.8 Hybrid Optimization Model for Electric Renewable (HOMER) Software Tool……………. ................................................................... …………………………………………………49 4 CHAPTER FOUR .............................................................................................. 52 CONCLUSIONS AND DISCUSSIONS ............................................................................ 52 5 REFERENCES ................................................................................................... 59 6 ANNEXURE 1 .................................................................................................. 71 ELUNDINI MUNICIPALITY ELECTRICITY ..................................................................... 71 GEOGRAPHIC AND DEMOGRAPHIC PROFILE ........................................................... 72 POPULATION FIGURES ...............................................................................................
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