Green Electricity for Sale

Transcription

1 Green Electricity for Sale Brian Jones Manager: Green Energy Electricity Services City of Cape Town Organised by

2 City of Cape Town Strategy The City of Cape Town has adopted an Energy and Climate Change strategy City s Primary role would be to facilitate adoption of renewable energy by energy consumers 10% of all the City s energy consumption to be sourced from renewable energy by 2020

3 Background In June 2006 the City of Cape Town signed a 20 year power purchase agreement with Darling Wind Power to purchase all green electricity to be produced by the farm at a price of 37c per kwh with escalation Cape Town currently pays Eskom ±12c per kwh for conventional electricity i.e. green will be energy purchased at a 25c per kwh premium.

4 Background cont d Generator license conditions preclude this premium being spread across all consumers. Green power must therefore be sold into a voluntary green market The Green Electricity is to be wheeled through the national utility Eskom s network to a City intake substation in Atlantis Annual production estimated to be 13.2 GWh by MWA wind turbines

5 Project Goals The project is a National Demonstration Pilot Project designed to: explore the technical, commercial and environmental viability of converting wind energy into electricity in the Western Cape and other regions It is funded jointly by: The Central Energy Fund (CEF) The Development Bank of South Africa The Danish Government (Danida) A private developer: Darling Independent Power Producer

6 Project Location Darling Wind Farm Intake Point, Atlantis

7 Network Arrangements Eskom s Networks DWF Green Electricity Eskom Coal Based Electricity Atlantis Intake Substation Cape Town s Atlantis Distribution Network

8 Agreements Darling Wind Power Wheeling Agreement Eskom Power Purchase Agreement Special Supply Agreement City of Cape Town

9 Definition of Renewable Energy Renewable or green electricity is electricity generated from renewable sources such as wind, solar energy or wave power. Nuclear, and sometimes large scale hydro storage schemes are excluded (different countries have varying rules)

10 Income Streams 3 Streams of potential income from green electricity: Sale of electricity itself Sale of carbon emission reduction e.g. through CDM mechanism (Darling Wind Farm excluded because of donor funding) Sale of renewable energy certificates (Rec s, Trec s, green certificates )

11 Components of Green Electricity Green Attributes Electricity Cost of Green Certificate Cost of normal electricity Total Cost of Green Electricity Green characteristics and electric energy are separated

12 Green Attributes Green attributes include: Reduction in CO2, SOX, NOX, particles Generation from renewable source Local health benefits Job creation etc. etc.

13 Environmental Benefits - DWF Over 20 years the Darling Wind Farm is set to: Save Resources tons of coal 370 million litres of water Reduce pollutants tons of carbon dioxide tons of sulphur dioxide tons of nitric oxide 58 tons of particulates tons of ash

14 Energy and Green flows normal tariff kwh meter Electrons kwh meter kwh meter Green Tariff- Normal plus 25c per kwh Green attributes Green characteristics and electric energy are separated Green 25c per kwh

15 Direct Sale of Green Electricity Option 1: Green Electricity sold to voluntary consumers at a Green Tariff flat premium of 25c per kwh over cost of normal electricity bill City of Cape Town Voluntary buyer Voluntary buyer Electricity Consumers

16 Direct Sale of Green Electricity Green electricity purchase linked to electricity consumption Consumer pays 25c premium on top of ordinary electricity bill. Could buy a % of consumption as green up to 100% Billed through electricity invoice/direct payment through pre-paid system Need to be careful not to sell green electricity which has not yet been generated

17 Sale of Green Certificates Option 2: Coal Electricity sold to consumers at normal tariff, green certificates sold at 25c per kwh to anyone who wants to purchase greenness Voluntary buyer City of Cape Town Voluntary buyer Voluntary buyer Voluntary buyer Non-Electricity Consumers Voluntary buyer Electricity Consumers

18 Sale of Green Certificates Green Certificates represents all the environmental benefits of Green Electricity Consumers buy normal electricity at normal tariff Electricity consumers AND non consumers can buy the Green Attributes of the green electricity purchased by the City Usually done through the sale of Green Certificates, usually of size 1 MWh Invoiced separately to electricity invoice

19 Credibility Strict certification and audit process required to authenticate that: Source of electricity is renewable Seller does not sell more green electricity/certificates than has been generated Green benefits are not sold twice -No formal certificate system yet in RSA -Cape Town to follow international standards closely (Association of Issuing Bodies)

20 FAQ s about Green Electricity Q: What happens if the wind stops blowing? A: Green electricity will automatically be replaced by conventional electricity generated by Eskom. Q: Will Darling Green electricity reduce the possibility of power outages this winter? A: Not to any noticeable extent, the Wind Farm will only supply about 0.2% of Cape Town s power.

21 FAQ s about Green Electricity Q: Will I have to live in Atlantis to receive Green Electricity? A: No, you may purchase green electricity wherever you are supplied conventional electricity over the City s electricity network. If you purchase green electricity certificates you do not even have to be an electricity consumer

22 FAQ s about Green Electricity Q: Why should I buy Green Electricity? A: Global warming caused largely through the emission of greenhouse gases is causing the climate to change. Purchasing Green Electricity is a way to reduce your environmental impact (carbon footprint)!

23 FAQ s about Green Electricity Q: Why should my company buy Green Electricity? A: -Reduce your company s carbon footprint - Improve your triple bottom line (JSE has a Socially Responsible Investment index 58 companies registered) - comply with requirements of overseas business partners -Improve your company s image

24 FAQ s about Green Electricity Q: When will Green Electricity become available? A: Production is scheduled to start in about September 2007 Q: How can I purchase Green Electricity when it becomes available? A: Contact the Green Energy Manager, Electricity Services, Cape Town brian.jones@capetown.gov.za

25 Thank You Organised by