Finance and Economic Opportunities

With reference to the decision by Stellenbosch Municipality (SM) to investigate the use and generation of alternative electricity energy supplies:

1. (a) What alternative energy supplies are being considered by the Municipality

Stellenbosch Municipality is considering several alternative energy supply options through a partnership with the CSIR and the University of Stellenbosch. The provincial government is not involved in this project.

However, the alternative energy supply options will be considered for inclusion in the Municipal Energy Resilience (MER) project once finalised by the municipality.
As such, the member will need to enquire directly with the municipality for further information.

1 (b) what are the relevant details?

The member will need to enquire directly with the municipality for relevant details.

2. What exact support, such as resources and consultation, does the MER project offer the Municipality?

The Municipal Energy Resilience (MER) Project is aimed at enabling municipalities, businesses and households to generate, procure and sell own power. Specifically, the initiative aims to assist municipalities to take advantage of the new energy regulations, which include the potential for municipalities to purchase energy directly from Independent Power Producers, or IPPs. As such, the project includes consideration of multiple technologies, renewable energy mixes and financing and contracting mechanisms (amongst others) and presents complex sets of inter-related and inter-dependant projects that are expected to be delivered by incorporating innovative methodologies and delivery mechanisms. 

To this end, the MER Project has onboarded service providers to provide strategic advice to guide and assist the development of foundational business cases and identify pioneering renewable energy projects. 

In Phase 1 of the MER Project the support that will be offered to Stellenbosch Municipality can include:

1. Development of business cases for each of the four MER Project components: municipal utility scale electricity procurement from Independent Power Producers (IPPs); new distributed generation capacity at sub-utility scale; new self-generation at small-scale embedded generation (SSEG) scale (under 1 MW); & energy storage: large scale battery storage - including different technology solutions & scales. Engagements will be held with Stellenbosch Municipality to test /and or build on some of their project ideas.
2. The renewable/alternative energy municipal projects identified at this stage will be added as potential pioneering projects where relevant and will then go through a pre-feasibility assessment towards the identification of projects.
3. The development of a municipal capacity development plan (including consideration of technical and financial skills, Electricity Master Plan (EMP), Cost of Supply (CoS) studies, financial/revenue tariff modelling) will be done for the potential projects in the municipality.
4. The development of a project roadmap
5. Project implementation support, which may include the establishment of a Project Management Office (or similar)
6. Project development, transaction and procurement support, consultants and services, e.g. a panel of service providers, including transaction advisors to help implement the pioneering projects.
7. Direct strategic advisory support to the energy project team, focusing on implementing projects.

In Phase 2 and 3 of the MER Project, the exact support provided will depend on the projects selected and undertaken by Stellenbosch Municipality.

3. When does the Municipality envision that it will complete its investigations into alternative energy supplies?

The Stellenbosch Municipality timeline of investigations is still being defined.

4. Whether a working document has been developed on the matter; if so, can a copy be provided?

Stellenbosch Municipality and the energy project team have not developed a working document at this stage.