GRID OPERATIONS COMMERCIAL FEATURE SMART GRID DEVELOPMENT IN SOUTH AFRICA – THE REAL STORY C limate change and the addition of renewable energy to the grid is changing the traditional power sector business model. In South Africa, solar energy prices have almost reached grid parity and the tradition of large, centralized power stations is changing. As time passes and more alternative generation is embedded into the grid and added into the equation, fossil fuels and large generation will not necessarily continue to be ‘go to’ choice. As we move toward an ever expanding energy mix that encompasses multiple options and the opportunities brought by renewable energy, a shift has to occur away from a centrally controlled mindset to one which encompasses distributed grid elements. Additionally, accommodation needs to be made for the fact that power flows from more than one direction. To understand the South African context, Metering & Smart Energy International spoke with Minnesh Bipath, acting CIO and general manager: smart grids, data and knowledge management for the South African National Energy Development Institute (SANEDI), a government funded think tank and research facility. benefit is the improvement to service delivery, particularly in municipalities. The introduction of smart grid technology is a key enabler for South Africa to achieve its proposed energy mix. Without smart grids large scale integration is impossible. With regard to service delivery, smart grid technology is enabling the use of integrated systems and processes in the municipal environment, thus enabling efficiencies and effectiveness not seen before in the municipal environment. “Smart grids give municipalities visibility and control over the grid that they have never had before. In this instance, by giving greater visibility and control, technology really is a key enabler for change. Embracing this change will allow municipalities particularly to exercise greater efficiency and effectiveness.” At an individual customer level, electricity pricing has gone up by almost 200% in South Africa over the last 8 years. Users often ask: “Why has it gone up so much? What has changed to drive the price up?” In developing economies, increasing tariffs impacts on the poor the most. “Smart grid gives visibility and control so an individual can manage their own demand. This is important as the electricity system at large is demand driven. Traditionally it has been ‘uncharted and uncontrolled’ and it has been difficult to establish a direct link between demand and supply. Smart grid and automation changes that dynamic. Strategically, you may now have more options to control demand.” SANEDI has been overseeing 10 pilot projects across the country in order to assess the benefits around management and self- management of usage in particular. Through a signed Memorandum of Agreement with the Department of Energy, SANEDI’s smart grids programme is tasked with the responsibility of implementing the EU donor funded smart grids programme with regard to the components that deal with the introduction of smart grid concepts within the South African electricity distribution industry (municipalities). The Department of Energy through the electricity chief directorate has identified five priority areas within the electricity distribution industry (EDI) to conduct applied research pilot projects. The objective of the applied research projects is to provide policy and regulatory input through the experience and lessons learned from the pilot projects implemented. These five priority areas resulted in the selection of 10 municipalities to participate in the programme. The projects not only serve the broad objectives of the department but address burning issues within the municipality, thereby serving as a catalyst for change. The five priorities of the department are as follows: a) Distributed power generation b) Enhanced revenue management c) Energy efficiency demand side management (EEDSM) d) Active network management e) Asset management According to Bipath, the implementation of a smart grid has benefits across three levels – societal; for the country as a whole, municipalities inclusive; and for individuals. “For society and the country as a whole, we have to meet the climate change targets we have agreed to and become more efficient. This has huge benefits for all South Africans and for our country. An additional societal 44 METERING INTERNATIONAL ISSUE – 1 | 2017