Business Case for a Special Funding Application to NERSA (2008)

This report by the Sustainable Energy Society Southern Africa (SESSA) presents an indicative business case in support of Eskom's application to the National Energy Regulator of South Africa (NERSA) for large-scale residential solar water heating (SWH) installation and implementation as part of the DSM funding mechanism.

The report details that SWHs represent a flexible contribution to the management of electrical supply and demand load matching. It estimates that a SWH programme would provide a contribution to after-diversity load management per system of 0.5kW and 0.4kW in respective morning and evening water heating peaks. This corresponds to a contribution of 2500GWh to South Africa's primary renewable energy supply: 25% of the country's national renewable energy target.

The report then quantifies that a recommended programme of 1 million solar water heaters would require a total incentive of R4 billion to be made available to consumer, and then recoverd through the DSM mechanism over the 5 year duration of the programme.

Author: Sustainable Energy Society South Africa (SESSA)

Date: 2008

Pages: 19

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