The Truth about the Electricity Tariff Increase

July 28, 2009 · Filed under 1 · Tagged , , , , , , ,

South Africa’s 31.3% tariff increase has continued to spark debate in all quarters, with public and private entities airing their views on the controversy.

The public say it is ridiculous:

Eighty-Five percent of South Africans deem the 31% electricity tariff hike as unacceptable, according to a survey released recently by market research company, Synovate.

While the experts say it is necessary:

Frost & Sullivan Consultants say South Africa’s electricity tariff increase will be hard on consumers in the medium term, but is important for the country’s longer-term economic development.

And outgoing SA Reserve Bank Governor Tito Mboweni says….

The hike in electricity prices is one of the biggest risks to the country’s inflation outlook.

  • The Synovate study was conducted with 1 000 adult South Africans. Surveys were administered in metropolitan areas in the Eastern Cape, Free State, Gauteng, KwaZulu-Natal and Western Cape.

“We wanted to speak to those South Africans…..and gain an understanding of the consequences that the tariff increase will have on their everyday lives” states Charlotte Jackson, Managing Director of Synovate.

Daniel Silke, Independent Political Analyst has the opinion that the hike will have far-reaching consequences on the public of South Africa and expects a big fallout from the hike:

“Already there is an increase in service delivery protests around the country – some turning violent. The increases will create a further sense of unease and can contribute to more social and political unrest at the fringes of South Africa’s society,” he said.

When voicing their reasons for not supporting the 31% hike, most survey participants, raised affordability (93%) as their primary concern, the survey says.

Some were disillusioned by the government (6%), harbouring the belief that free electricity was promised and that the government should pay, or at least intervene.

The minority who support the hike commented that it was fair, as long as everybody is treated equally (15%) and that the same tariff increase applies to all. 13% of these participants felt that the hike will be a good thing for the country and Eskom.

  • Meanwhile, Frost & Sullivan have urged the public to not be short-sighted in their condemnation of the hike, saying it is a necessary evil.

“The increase will be hard on consumers in the medium term, but we maintain that a long-term view needs to be taken on this issue,” said Frost & Sullivan’s energy industry manager, Cornelis van der Waal.

“These decisions must be taken in the interests of the country’s economic development, the sustainability of industry, and ensuring a reliable supply of electricity.”

Eskom, which supplies 95% of South Africa’s power, has been battling to cover cost increases while embarking on a five-year expansion programme. The electricity supplier says it requires over R150-billion to fund a R385-billion expansion plan to build new power stations.

Hiking tariffs now was the best way to support these long-term goals, Van der Waal said.

  • And while Tito Mboweni is on his way out come November, the Reserve Bank Governor says that the electricity tariff increase will impact South Africa’s inflation targets.

“The outlook for inflation remains bleak in an environment of sustained increases in international oil and food prices.

“Adding to the inflation uncertainty is the impending announcement of the electricity price increases to be granted to Eskom,” Mboweni said.

So with all the controversy surrounding the increase in electricity price tariffs, what is the average South African to believe? And whatever we believe….does it really matter?

People will protest and Eskom will explain, surveys will be undertaken and analyses done of the range of socio-economic and monetary impacts of the electricity tariff increase and people will debate the point endlessly.

But, the truth is, decisions have been made.

We will have a 31.3% electricity price increase and we will have to deal with it. The time for debate and protest will come to an end and it must be replaced by a basis for action.

Now is the best time to start thinking of ways that you can save electricity and negate the electricity hike’s impact on your pocket. Energy saving devices and systems are on the market and will soon be in high demand.

Now is the best time to buy-in to the new wave of products and businesses that save our electricity, our money and ultimately, our economy.

Click here for an energy saving solar geyser

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Eskom’s Solar Water Geyser Rebate

July 6, 2009 · Filed under 1 · Tagged , , , , , , , , , , , , ,

Despite the protests and continuing debate, it is clear that massive increase in the electricity price is imminent, and focus has began to shift towards ways and means of negating the effects of the hike on the pockets of the public.

Eskom is driving initiatives that strive toward the more efficient and conservative use of South Africa’s strained power supply. Eskom’s efforts are combined in a process known as Demand Side Management (DSM), which according to Eskom,  is “a comprehensive process in which the planning, implementation and monitoring of the consumer’s electricity use- and the modifying of this use- is considered against the levels of electricity available in the power grid which supplies the nation.”

The overarching goal of DSM is to keep the electricity supply flowing at a steady rate to avoid putting the system under undue pressure. By keeping the electricity flow constant, the system works at its optimal level and the costs associated with generating power are also contained.

The aim is a constant, reliable and affordable supply of electricity without major peaks and troughs in supply and demand. The DSM process has wide ranging benefits in terms of limiting the strain on the electricity network and reducing environmental damage, but it also creates opportunities for the introduction of funding for projects and products that will help to promote efficient electricity usage.

Eskom has realised that it needs the support of consumers and has thus introduced incentivised schemes to encourage the installation of energy efficient systems.

One such scheme is Eskom’s Solar Water Heating Programme, introduced at the beginning of 2008. This initiative. Eskom pay up to a 25% rebate on the installation of approved solar water heating systems directly to the consumer. This initiative forms part of a drive by government for renewable energy to contribute 10 000 gigawatt hours (GWh) of final energy consumption by 2013. Solar water heating could contribute up to 23% of this target.

So what does the rebate mean to the consumer?

Eskom will pay up to a 25% rebate on the installation of approved solar water heating systems directly to the consumer. This is a significant incentive to install a solar water geyser, which itself can reduce your heating bill by as much as 70%.

According to Eskom the rebate system is not in anyway exclusive. The requirements of a supplier to sell systems that qualify for rebates are the following:

  • Be able to offer a 5 year guarantee
  • Submit documents, including public liability and company details
  • The system must have passed the South African Bureau of Standards (SABS) tests, and comply with the South African National Standards (SANS) for thermal and mechanical performance and safety.
  • The supplier of the system must be registered with SESSA (Sustainable Energy Society of South Africa) solar water heating division.

How does solar water heating work?

  • A solar water heater is a combination of three elements:
  • Solar collector – an energy device, designed to absorb solar radiation and transfer the energy to the energy transfer fluid or material passing through the collector.
  • Energy transfer medium – a medium that through the process of conduction or convection, transfers the absorbed heat to the water. The type of material used is dependant on the design and needs of the installation. Where freezing of the transfer medium is a concern, the liquid used should be mixed with a non-toxic coloured anti-freeze liquid and a corrosion inhibitor.
  • A thermally insulated hot water storage vessel or geyser with a protected inner lining, copper, steel or a polymer. There are solar water heating systems that work on a low pressure, but most are pressurised from 100 kPa to 600 kPa, depending on the materials used. (The Eskom programme will initially only rebate high pressure systems)

Evacuated heat pipe technology

Evacuated heat pipe technology

So what does this all mean for the consumer?

The installation of a solar water heater makes environmental and economic sense and the benefits to consumers make it clear that using these systems will become common practice as the world becomes more environmentally and economically aware.

The systems can reduce CO2 emissions by over 3 tons per year.  If it is too cloudy the system switches to electric so your water is always hot. You can also cut your electricity bill by 35% for as long as the system is in place. A solar water geyser also increase the value of your house according to a recent study from the Appraisal Institute (USA)which demonstrated that the selling price of homes increased by R20 for every R1 decrease in annual utility bills. These benefits are over and above the rebate which is usually around R3 000 from Eskom’s Solar Water Heating Programme. This rebate will often cover the entire installation cost.

Go Solar Now in South Africa

Go Solar Now in South Africa


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Chemical containers wash up on beaches near Cape Town

June 26, 2009 · Filed under Green Current Affairs · Tagged , , , , , , , ,

The recent storms and rough seas in Cape Town have caused a ship carrying chemicals to lose 23 of its containers. The containers, carrying a harmful cleaning agent, have started to wash up on beaches near Cape Town. Major clean up operations are taking place to retrieve the containers before they start to leak and endanger sea and bird life in the area.

Disaster management teams were up at 2am this morning when the first container washed up on Camps Bay beach. A ramp was erected to allow the massive cranes to get far enough out into the ocean to collect the floating container. The second container was lifted to safety from a small cove in Sea Point. To date 4 containers have been retrieved, one of which had leaked and was empty by the time it washed up.

Teams of people wearing protective suits were armed with shovels and made to cleaned up the beaches where the chemicals had spilled by taking the top layer of sand away. The smell was suffocating as many people watched the containers and front end loaders being lifted onto flatbed trucks that lined the roads.

containers get washed ashore

containers get washed ashore

for more information, videos, and photos click here

Greenfan News Article

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Making the Springboks Greener

June 22, 2009 · Filed under Green Current Affairs · Tagged , , , , , , , , ,

South African Breweries (SAB), the primary sponsor of the South Africa 2009 Lions Series, have extended their environmental support to a unique new project, ‘Greening the Boks’, which aims to offset the carbon emissions  generated by the Springbok team’s transport and accommodation during this tour.

Our blood is environmentally green

Our blood is environmentally green

This project aims to showcase SAB’s commitment to a cleaner climate, which consists of a strategy that focuses on lessening the overall carbon footprint in many different areas of their business. ‘Greening the Boks’ is a pioneer campaign that allows for the creation of a new platform of climate change awareness in rugby and sport in South Africa.

To achieve this SAB will adhere to international best practice and offset the Boks emissions by purchasing Kyoto compliant carbon credits in order to minimize the environmental impact of the Boks on tour. SAB and SA Rugby have enlisted global carbon solutions company Cleaner Climate to calculate the emissions generated from the Boks tour by conducting a Carbon Footprint Assessment using the methodology of the Green House Gas Protocol and the ISO 14000 series. These calculations include elements such as flights, accommodation and ground transport.

Rob Fleming, SAB Sponsorship Manager, says “This is the first national sports team in South Africa to support climate change mitigation, and we urge corporate companies involved in sports sponsorships to demonstrate their dedication to protecting the environment.” Environmental considerations such as carbon offsetting will also play an important part of future Rugby World Cups, with New Zealand striving to host a carbon neutral event in 2011.

The Boks will be encouraged to tackle climate change as well, by pledging to adopt a greener lifestyle and showing fans how simple changes to their behaviour can make significant changes to the environment. The Springbok team and management took time off from training recently to learn about the threat of climate change and South Africa’s vulnerability to its effects.

“Greening the Boks” is an effort to show commitment to rugby and the environment in South Africa, and SAB hopes that this initiative will set the benchmark within the global rugby community.SA Rugby has starting on a sustainability path by drafting a Climate Change Strategy, and has recently conducted a carbon footprint assessment of the Cape Town Head Office. SAB hopes that the influence of SA sports star brand will promote a call to action regarding climate change, as a platform to get a very powerful message out there to the supporters and public in general.

About Cleaner Climate

Cleaner Climate is a specialist carbon solutions firm with expertise in developing tailored corporate climate change strategies and carbon management plans to assist businesses in minimizing the risk and identifying the opportunities in a carbon constrained world. Services include carbon footprint assessment, energy efficiency & reduction initiatives, green product/service development, offsetting and carbon project identification & development.

Cleaner Climate is headquartered in the United Kingdom and has a global network of operations in over 6 countries.

Cleaner Climate is a Top 100 member of the UN Climate Neutral Network, and is a preferred supplier to United Nations Environment Program (UNEP and was recently selected as a member of the UK Department of Energy and Climate Change’s Quality Assurance Scheme for Carbon Offsetting forum.

www.cleanerclimate.com

Kyoto Protocol

The Kyoto Protocol is a legally binding agreement that arose out of the UNFCCC (United Nations Framework Convention on Climate Change) to tackle climate change through a reduction of green house gas emissions. Developed countries are legally bound to reduce man-made greenhouse gases emissions. Developing countries do not have mandatory reductions but are required to report on emissions.

Greenhouse Gas (GHG) Protocol:

An initiative from the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) designed to support credible reporting and accounting for GHG emissions.

www.ghgprotocol.org

What is a Carbon Project?

Carbon projects are emission reduction projects that reduce, remove or destroy CO2 and other greenhouse gases. Examples include renewable energy (solar, wind hydro etc), energy efficiency (replacing incandescent light bulbs with CFL’s, changes to manufacturing/industrial processes) and industrial/animal/landfill gas destruction. They are situated in developing countries.

Carbon credits

A carbon credit is a tradable stock that represents one tonne CO2 reduced or removed from the atmosphere by a registered carbon project.

Selling the carbon credit provides the project developer with an additional financial revenue stream that contributes towards the economic viability of the project.  Carbon projects represent technologies and practices that are not business as usual and are thus more expensive, making the financial incentive of the carbon credit necessary to ensure implementation.

Carbon credits are the market based mechanism that the UN devised to stimulate the transfer of clean technology from developed to developing countries where projects would be cheaper to implement.

Offsetting

This refers to mitigating the carbon emissions of an individual, event or organisation by purchasing the equivalent number of carbon credits and thus compensating for the environmental impact of these emissions.

For example, if a company’s operations emits 100t of CO2, they can they purchase 100 carbon credits, which represent 100t of carbon emission reductions arising from a carbon project.

Offsetting can be an environmentally responsible manner in which to mitigate emissions. Nonetheless, it should only be viewed as a piece of the puzzle. It is imperative that companies develop internal initiatives that focus on decreasing their emissions as related to energy, water and waste, and in so doing minimize their overall footprint.

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Super rich lead the move towards Green

June 22, 2009 · Filed under 1 · Tagged , , , , ,

Some of the wealthiest people on the planet are making the move towards green. This fact is demonstrable by the new trend of billionaire investors putting massive amounts of their money into electric cars, solar and wind power and geothermal energy initiatives.

Dr Philip Beresford has compiled the British Sunday Times Rich List since 1989, which this year includes the Green List. The Green list is a compilation of the 100 richest tycoons worldwide who have made either serious investments in green technology and businesses or hefty financial commitments to environmental causes.

The Green List shows that world’s super rich are embracing green like never before.

The list is dominated by American tycoons, with the likes of Warren Buffett and Bill Gates leading the pack of green entrepreneurs. Buffett is heavily involved in electric cars and solar power, while Gates has backed alternative fuel enterprises such as oil and algae.

George Clooney and his Tango

George Clooney and his Tango

The strong American representation stems from the large contribution of the entrepreneurial hotbed of Silicon Valley, where young innovators such as Google’s Larry Page and Sergey Brin putting their financial muscle behind green projects.  Also helping the cause is the Obama administration’s commitment to a huge stimulus package involving the very technologies that investors are focusing on.

Apart from the Americans, the list is made up of Chinese investors (mainly solar and electric-car technology), German tycoons (wind turbines and the like) and a sprinkling of British based business minds such as Sir Richard Branson who is piling millions into alternative fuel technologies.

Many of these eco-entrepreneurs are not only backing new green technology, but also putting their support behind environmental activism, promoting awareness of green energy, climate change and the profit-making possibilities of green business. This can, in turn have a great impact on the political green agenda, where the Obama administration can lead a push from world leaders towards green initiatives.

The Green List is evidence that the move towards green is not only a moral issue, but an economic necessity. These tycoons have previously led innovation ahead of their time, and their new focus on green is a strong indication of the direction that business is going. The powerful individuals on the List are worth a total of nearly £267 billion and are at the forefront of a global shift towards, sustainable, green business practices. The current economic downturn only serves the strengthen to focus on renewable energies and green technologies. The move towards green is no longer an attempt to save the environment, but the equally fragile economy too.

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Greenfan launches it’s new “Green Network”

June 18, 2009 · Filed under 1 · Tagged , , , , , ,

Greenfan have launched their new “Green Network” to enable green thinkers and businesses to communicate online. The Greenfan network enables businesses and individuals who are “Green Minded” to connect, share ideas, start discussions and stay in touch in today’s growing “green” industry. Use the Greenfan network to promote your green products and or business. Find out more about eco-info, green news, environmental events and promote your green business.

To join visit www.greenfan.co.za and follow the “Become a FAN!” link on the home page. It’s Free. Become a FAN!

Greenfan's "Green Network"

Greenfan's "Green Network"

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Eskom Price hike will hurt the Economy and the Poor

June 9, 2009 · Filed under Green Current Affairs · Tagged , , , , , ,

Eskom acknowledged that a 34 percent interim electricity tariff hike was “not a trivial matter” and would have a negative impact on the economy and the poor, its chief executive Jacob Maroga said on Tuesday.

“I think in particular acknowledging that 34 percent is not a trivial matter, we understand its impact on the economy, we understand its impact to the vulnerable members of our society and we take your comments very, very seriously,” he told public hearings held by the National Energy Regulator of SA (Nersa) in Pretoria.

“But as we move into the funding model, we want those issues to be developed so that we can emerge with an integrated solution that takes into account all those issues that have been raised,” he said, emphasising once again that the application was “not about Eskom” but “it’s about what the country needs”.

While acknowledging the impact of the hike, Maroga said the country’s electricity supply was at risk should Eskom not receive the “right” increase.

“… if we do not get the right amount of increase this year, obviously depending on the size [of the increase] it means we have more risk in terms of security of supply,” he told.

“We still have the process to go through to deal with the totality of what we require [funds], as we [are] speaking and making a determination today will not solve the issue; there is still uncertainty about the long-term.”

During the hearings, the parastatal was accused of flouting the Municipal Finances Act by submitting its application late as well as failing to provide sufficient information on why the steep increase was required.

Maroga said a lot of consultation was required before Eskom could make a determination on the cash it needed… and this process has not yet been finalised, hence the application for the interim tariff hike.

“In my view… as much as you need to respect deadlines, with the substantial amount of money we are talking about and the implications for the country… We needed dialogue,” he said.

The parastatal needed to “engage the shareholder”, the state, and also it needed to assess its ability to obtain funds through borrowing and to pay it back. – Sapa

Greenfan’s View 

As the protests mount and discussions drag on about the extent of Eskom’s price increase and its impact on the South African public, it is becoming increasingly clear that our days of cheap and abundant energy are quickly coming to an end. The fact is, an electricity price hike is unavoidable and we should stop complaining and start finding solutions to minimise its impact on our pocket. Renewable energy solutions and energy saving devices are going to become sought after products, as awareness grows of the need to conserve electricity.

South Africans are wasteful by nature and we need to change our attitude to conserve the resources that are becoming increasingly scarce.

How much will the price hike affect our daily lives? Should we keep protesting or start thinking of ways to change? Let us know your thoughts…

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Environmental Photo Collection

June 1, 2009 · Filed under 1 · Tagged , , , ,

Pierre Pressure (Environmental Photographer) has a collection of Environmental Photos up at www.greenfan.co.za/pierrepressure.html.

Pierre Pressure’s photos are printed on recycled paper and framed using environmentally friendly materials.

Have a look and give us your feedback!

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Dead Beached whales to be buried

May 31, 2009 · Filed under 1 · Tagged , ,

About 30 false killer whales that were beached on Kommetjie yesterday could not be saved by national sea rescuers. The dead whales are being loaded onto truck to be taken away and buried.

Rescuers said that some of the whales that they managed to release back into the ocean swam straight back to shore and beached themselves again. The task was very difficult and they tried their best to save as many as possible without having to put the whales under to much stress. Unfortunately we could not save them all.

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Breaking News – Beached Whales to be put down – by shotgun

May 30, 2009 · Filed under 1 · Tagged , ,

Of the 55 beached whales (false killer whales) in Kommetjie in Cape Town only 30 have managed to be saved and have been released back to sea. The remaining beached whales are to be put down. Sea Rescuers say it is the most humane thing to do. Sea Rescuers will use shot guns to kill the whales that cannot be saved. Apparently the whales beach them selves because of their social nature and if one whale is ill the other respond to its distress signal…

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