Community Electricity in Rural South Africa: Renewable ... · PDF filedemonstration project in...

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Community Electricity

in

Rural South Africa:

Renewable mini-grid assessment

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GENERAL PRESENTATION In 2003, ScottishPower plc (SP), an e7 member company, took the lead in the development of ademonstration project in South Africa targeting off-grid mini-hybrid systems, with an emphasis on windand solar power. The project aims included eligibility for CDM status, replicability, financial sustainabilityand the practical implementation of the principles associated with economic sustainability.After identifying promising sites, the e7, under the leadership of SP, undertook a pre-feasibility studythat yielded positive conclusions, leading to a decision to pursue the project at the feasibility stage.However, due to a change in electrification plans in South Africa, the sites chosen for the feasibilitystudy are no longer eligible for further implementation.Nevertheless, the information and lessons learned from this study can greatly benefit similarelectrification projects and programmes in the region. It is with this aim of sharing experiences withinterested parties that this document has been prepared.

ABOUT E7

The e7 electricity companies operate on the national territories of the G7 countries (Canada, France,Germany, Italy, Japan, United Kingdom and United States). Membership in the e7 is by invitation. Thee7 may also invite other organisations from around the world to become Partners and contribute to theimplementation of the e7’s goals.

The e7 can be characterised as an entity with a unique operational knowledge of the electricity sector.In other words, the e7’s diversity of experience and expertise complement each other harmoniously,granting it with an all-encompassing scope of the global electricity industry. Sharing this wealth ofexperience with countries facing new pressures on their electrical industry is one way the e7 cancontribute to sustainable development throughout the world.

Each e7 member considers the management of environmental issues among its highest corporatepriorities, and all support the concept of Sustainable Development.

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AbstractThe e7 group of electricity companies have made a commitment to sustainable development and areengaged in many different initiatives throughout the developing world. As global companies, they haveconsiderable expertise in a wide range of technical and management areas. Sharing this experiencewith countries facing new pressures on their electrical industry is one way the e7 can contribute tosustainable development.

e7 Projects include Human Capacity Building, where expertise is shared across economic and socialdivisions. e7 is also closely involved in the implementation of capital investment projects to practicallydemonstrate the opportunities afforded by innovative sustainable energy technology such asrenewables.

ScottishPower plc, as a member of e7, has conducted a significant component of work in South Africato analyse aspects of rural electrification. In particular the work has made an assessment of how therenewable mini-grid model of rural electrification can contribute to the development of rural communitiesin South Africa and other countries in sub-Saharan Africa. This report summarises the findings of thework, which may be of interest to those involved in the various social, technical and economic aspectsof rural electrification.

Acknowledgments ScottishPower would acknowledge the support and assistance of the following in carrying out ourfeasibility studies and in development of this report.

Energy for Sustainable Development Ltd (ESD), Wiltshire, United Kingdom, as lead consultant toScottishPower for the duration of this project.

Ndizani Networks Group , Centurion, South Africa, for managing all activities associated with on siteworks including community consultation and GIS mapping.

CSIR (Government Technology and Research Institution in South Africa) for assistance in provision ofdata for the project.

Department of Minerals and Energy of the Republic of South Africa, Pretoria, for support andadvice on national policy matters

Eskom, nationally (Megawatt Park, Johannesburg), provincially (Planning offices in Durban and EastLondon) and locally (Operations office, Shelly Beach, Eastern cape) for their support and guidancethroughout the duration of the project.

National Energy Regulator of South Africa, Pretoria, for advice on licensing and compliance matters.

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Table Of Abbreviations

Abbreviation DescriptionA AmpereABMDA African Business and Manufacturing Development AssociationAh Ampere-hourCAPEX Capital ExpenditureCDM Clean Development Mechanism of the Kyoto ProtocolCER Certified Emissions Reductions under the Clean Development

Mechanism of the Kyoto ProtocolCFL Compact Fluorescent LightCMIP Consolidated Municipal Infrastructure planDME Department of Minerals and Energy, South AfricaESD Energy for Sustainable Development LtdGBP United Kingdom PoundsGPS Global Positioning Systemh or hr HourIDP Integrated Development PlanIDT Independent Development Trust, South AfricaIP Illuminating Paraffinkm KilometreKVA Killovolt-AmperekW KillowattKwhr Killowatt-hourLPG Liquid Petroleum Gasm Metrem/s Metres per secondMV Medium VoltageMW MegawattNER National Electricity Regulator of South AfricaNGO Non-Government AssociationNNG Ndizani Networks GroupNRS National Rationalised SpecificationOPEX Operational ExpenditurePLAAS Programme for Land and Agrarian StudiesPV Solar Photovoltaic RDP Reconstruction and Development ProgrammeRSA Republic of South AfricaSP Scottish Power UK plctCO2e Tonne of CO2 equivalent – unit of emission reductionV VoltW WattWh Watt-hourZAR or R South African Rand

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About e7 .................................................................................................................... 2Abstract....................................................................................................................... 3Acknowledgments...................................................................................................... 3Table Of Abbreviations .............................................................................................. 41 Introduction ............................................................................................................. 6

1.1 Electrification in South Africa ............................................................................... 61.2 The South Africa Mini-Grid Initiative – Executive Summary................................. 62.1 Site Identification................................................................................................. 72.2 Site Assessment................................................................................................... 8

3 Results - Site Identification .................................................................................... 93.2 Use of wind data................................................................................................ 123.3 Western and Northern Cape .............................................................................. 123.2 Limpopo............................................................................................................. 133.3 KwaZulu Natal ................................................................................................... 133.4 Eastern Cape ..................................................................................................... 133.5 Final site selection ............................................................................................. 13

4 Results - Stakeholder Consultation..................................................................... 144.1 Household.......................................................................................................... 144.2 Business............................................................................................................. 254.3 Institutional Stakeholders .................................................................................. 275.1 Distribution System............................................................................................ 285.2 Generation System ............................................................................................ 28

6 Results - Costing and Business Model ............................................................... 306.1 Costing and Tariff assessment........................................................................... 306.2 Business Model .................................................................................................. 317.1 Site identification ............................................................................................... 337.2 Stakeholder consultation ................................................................................... 337.3 Design and costing ............................................................................................ 347.4 Implementation ................................................................................................. 34

Annexes .................................................................................................................... 35Annex 1 - Bibliography............................................................................................. 35Annex 2 - Consumer Electrical Supply Design.......................................................... 36Annex 3 - Proposed Distribution System in Mbandana and Dumsi .......................... 37Annex 4 - Generating Systems – Macro Bill of Materials.......................................... 39

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1 Introduction

1.1 ELECTRIFICATION IN SOUTH AFRICA

The energy sector in South Africa is overseen by the Department of Minerals and Energy (DME), and itis this department which prepares energy policy and legislation. The National Electricity Regulator(NER), established in April 1995 as a statutory body, falls under DME’s jurisdiction and acts as theregulatory authority over the electricity industry in South Africa. The routine regulatory activities that fallwithin the NER’s jurisdiction include licensing, tariff approval, handling of disputes and customercomplaints, as well as monitoring the quality of supply. The DME appoints board members, but onceappointed the NER acts independently and reports to parliament. The NER is funded from a levyimposed on generators of electricity, which is passed onto all electricity customers.

The South African government aimed to electrify 2.5 million households by the year 2000. In fact, thesetargets were exceeded and the costs of connection, distribution and metering are some of the lowest inthe world. The same government directive specifically targeted electrification of all schools and clinicsand has set the goal of providing universal access to electricity by the year 2010. This has resulted inthe great majority of significant load centres becoming grid-electrified, leaving relatively few isolatedcommunities without grid connection. The remaining 3 million South African households that do nothave grid connection are geographically dispersed.

The Energy Policy White Paper of 1998 required the integration of grid and non-grid technologies in asingle National Electrification Programme. The South African Government encouraged private-sectorparticipation in rural energy service provision. The approach being pursued, as in a number of othercountries, was the award of geographical concessions to provide non-grid electricity supplies (primarilysolar home systems) in remote areas. The process began in 1998 with a joint venture betweenESKOM and Shell International in the Eastern Cape Province. This venture started with the objective ofsupplying solar energy to 50,000 low cost housing units. Other concessionaires were granted similaragreements between 1998 and 2002, in the Provinces of KwaZulu Natal, the Eastern Cape, and TheNorthern Province. Further, Shell Renewables has initiated two isolated renewable mini-grid systems inthe Eastern Cape: one at Hluleka Nature reserve and one nearby at Lucingweni village.

Reflecting the close relationship between energy and sustainable development, and in recognition ofthe Johannesburg Declaration made at the World Summit for Sustainable Development in 2003, thegovernment passed a White Paper on the Renewable Energy Policy of the Republic of South Africa.This commits the country to a target of “10 000 GWh (0.8 Mtoe) renewable energy contribution to finalenergy consumption by 2013, to be produced mainly from biomass, wind, solar and small-scale hydro.”This target represents 4% of projected electricity demand in 2013.

1.2 THE SOUTH AFRICA MINI-GRID INITIATIVE – EXECUTIVE SUMMARY

As a member of the e7 group of electricity companies Scottish Power plc (SP) has a commitment toplaying an active role in relation to global electricity issues and sustainable development. As such, SPinitiated work in South Africa, focused particularly on the opportunity for the implementation ofinnovative forms of rural electrification using renewable energy.

The work conducted was particularly focused on the potential for isolated communities to benefit fromemerging renewable technologies in the form of a renewable mini-grid (off grid). The interest in thisparticular form of rural electrification comes from the demographic profile of many sub-Saharan Africancountries, which have a high proportion of isolated communities.

While not discounting any form of renewable energy source, ScottishPower’s expertise in windtechnologies was an influence in site selection. As the assessment progressed it became obvious thatthe areas of the country that were likely to be best suited for the mini grid application were areas wherewind resource predominated.

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Development of an appropriate, economic solution for isolated communities is a challenging aim. Yetbalanced against rising fuel prices and the mixed success of a number of diesel based isolated systemsthroughout the region, interest is growing in the emerging role of renewables in this form of electricityservice delivery. The work that is summarised within this text concludes that it is not feasible to deliver a sustainablemini-grid solution in South Africa, but that the methodology employed is valid for other Sub-SaharanAfrican countries where the challenges of competing with low cost grid electricity are not so prominent. Our conclusion not to proceed in South Africa was driven by a number of factors including failure toidentify a suitably remote site of reasonable density that was unlikely to be grid connected within thenext five years. In discussions with government it also became obvious that providing ruralcommunities with renewable energy solutions was likely to conflict with developing electrification policyin South AfricaThe assessment carried out also provides valuable social information regarding rural communities inSouth Africa and offers the first substantive proof that the economics of a mini grid approach do notallow implementation of a project at this time.

2 Methodology

2.1 SITE IDENTIFICATION

Appropriate sites for a renewable mini-grid project were identified through direct consultation with keyinstitutions and the use of Geographical Information System (GIS) modelling.

2.1.1 Criteria

First a set of clear criteria were established in order to identify appropriate sites. These criteria were:

Electrification• Grid electrification plans (No grid electrification plans in area for at least 5 years)• Off-grid electrification plans (No off-grid plans for the area)Customer• Institutional users (Potential off-grid school(s), clinic(s) and others)• Household density (General density of >50 households/km² in clusters)• Community commitment (Alignment of community expectations)Topography• Isolated village (Potential impact of revised grid electrification plans)• Renewable resources (Preference for wind-based generation)• SMEs/Agricultural potential (Promotes productive use and economic sustainability)Others• Positive political landscape (Facilitates access & communication)• Secure generation site (Prevent vandalism/theft)

2.1.2 Geographic Information System (GIS) Model

A GIS (Geographic Information System) tool was developed to assist in the identification of possiblemini-grid areas. Four sets of parameter were used in the GIS process:1) Provincial boundaries2) Grid electrification data3) Village population data4) Supplementary village and geographical dataThe main sources of the data used in the GIS modelling process were:

• MV electrification data: Eskom;• Village Data (HELP Data): Eskom; and• Provincial & District Data: Demarcation Board

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2.2 SITE ASSESSMENT

Following the determination of appropriate locations for renewable-based generation, severalcomponents of site assessment were carried out as detailed below.

2.2.1 Stakeholder ConsultationRelevant stakeholders at the national, provincial and local level were consulted at appropriate stages ofthe project. This included government partners, utilities and non-government organisations (NGOs).

For the community component of the stakeholder consultation, best practice participatory approachesfor poverty alleviation in developing countries were used. A methodology was developed for thecommunity consultation which included 100% household and business surveys, focus group work andindividual meetings with community leaders.

2.2.2 Outline Technical DesignAn outline design for a potential renewable energy mini-grid initiative development was produced. Thiswas based on the available technical and socio-economic data from the previous work.

The distribution and reticulation design was based on Eskom standards for reticulation systems. Thisapproach was used to allow for:

1) Interconnection with Eskom standard equipment in the future; and2) Delivery of “grid-like” electricity services

2.2.3 Outline Costing and Business ModelPreliminary costings for the outline design were developed in order to assess the relative economicmerits and measure costings against existing tariff structures.

This costing was then aligned with an operational model that would be most likely to suit the localbusiness and government structures. This included aspects of private and public sector capacity toperform necessary implementation and operational duties.

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3 Results - Site Identification

3.1 GIS MODELLING

A GIS (Geographic Information System) tool was developed to assist in the identification of possiblemini-grid areas. Four key parameters were used in the GIS process (Provincial boundaries, Gridelectrification data, Village population data, and Supplementary village/geographical data) wereincorporated into 4 distinct steps in the modelling process.

3.1.1 Step 1 – Provincial boundaries

The process started out by placing a map of the nine provinces of South Africa as a platform of the GIStool as indicated in figure 1.

Figure 1 Map of South Africa showing provinces

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3.1.2 Step 2 – Electrification data

The 2003 Medium Voltage (MV) data for the whole of South Africa was then layered over the map ofSouth Africa. This led directly to the identification of geographical pockets that are currently un-electrified.

The results of this assessment indicate several pockets of un-electrified areas (shown as white in figure2) all over South Africa especially in the Northern Cape, the Northern part of the Western Cape,Kwazulu Natal and the Eastern cape.

Even though the MV data indicated all the areas that are currently not electrified, this does not yetrepresent any other data relevant to the site identification exercise. For instance, many of the un-electrified areas are also unpopulated and this is not yet taken into account.

Figure 2 MV Network

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3.1.3 Step 3 – Village data

The next step was to add village data to the GIS tool to eliminate empty spaces and only identify thezones where villages are situated. Due to the large number of rural villages, it was necessary to thensplit this data into two further categories

The first set indicated villages that are known from existing data to be electrified as well as thosevillages that are in close proximity to the grid. The second set highlighted villages that are notelectrified or within close proximity to the grid. The result of this step is presented in figure 3 (darkareas).

The larger dark areas indicate several villages without electrification. The results also point out thateven though the MV data as presented in figure 2 indicates huge pockets in the Northern Cape and theNorthern part of the Western Cape there are very few populated areas without electricity.

Figure 3 MV network and areas not electrified

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3.1.4 Step 4 – geographical detail

Although the GIS tool was now able to deliver results at a National level, it now required further detail toallow navigation in specific regions. More data was therefore added to assist in the site identificationexercise. The following data sets were included in the GIS tool at step 4):

- Roads and Rivers- Village Names- The number of people living in a specific village

3.2 USE OF WIND DATA

National level wind data was not incorporated into the GIS model itself. However, the existing broadinformation available on wind resources in South Africa was used to guide the next phases of siteidentification. The information used is the first Wind Atlas of South Africa, published in 1995 for theDepartment of Minerals and Energy (DME) (Diab, 1995).

The atlas was based on existing data from South Africa's approximately 170 meteorological stations.The coastal and escarpment areas were identified as having a mean annual wind speed of greater than4 metres/second at 10 metres above ground level (see map below). This parameter was used to guidethe further selection of sites and particularly directed the selection of coastal areas in the Eastern Cape.

3.3 WESTERN AND NORTHERN CAPE

Figure 4 shows the un-electrified areas identified in figure 3, by province. It can be seen in figure 4 thatthere are very few potential areas for mini-grid in the Western and Northern Cape.

Electrification stakeholders in the Western and Northern Cape indicated that these two provinces arenot ideal candidates for a mini-grid demonstration.

Figure 4 Areas not electrified

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3.2 LIMPOPO

The Limpopo province is one of the provinces where mini-grid might be a possibility. The province stillhas in the vicinity of 456,000 households that are not electrified. The province was discounted in theassessment as the majority of the villages that are not electrified are sparsely distributed (figure 4).

3.3 KWAZULU NATAL

Figure 4 indicates several pockets of un-electrified communities in the KZN area, however, these arerelatively small areas. This means that the villages situated in these pockets are closer to the grid thansome of the pockets in the Eastern Cape for instance (see below). Further, the non-grid Concessionholder of the Northern part of KZN (NUON-RAPS) has previously performed work in their concessionarea to identify possible mini-grid sites and have yet to move forward with implementation.

3.4 EASTERN CAPE

In the GIS analysis, the Eastern Cape exhibits large un-electrified village areas, particularly in thecoastal and mountainous areas to the East.

Electrification stakeholders in the Eastern Cape province suggested focusing on a) the Fort Donaldarea; b) the area between Mt. Frere and Cedarville; and c) the coastal zone between Elliotdale, CoffeeBay and the Haven.

3.5 FINAL SITE SELECTION

Final site selection from the results of the GIS assessment, review of wind data, extensive consultationwith stakeholders at the national and local level and individual site visits at short-listed locations.

Villages located in the Fort Donald area of the Eastern Cape, called Mbandana and Dumsi wereselected for further assessment. These sites were investigated further to demonstrate the key socio-economic and technical issues associated with a mini-grid renewable based project. The detailed GISmodel of this area is shown in figure 5 below. Dark blue indicates village areas and red lines representexisting grid electricity lines.

The results of this detailed work includes Stakeholder Consultation (Section 5), outline TechnicalDesign (Section 6) and Costing and Business Model development (Section 7).

Figure 5 Detailed GIS image for the Dumsi-Mbandana area

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4 Results - Stakeholder Consultation

As described in section 2.2.1 a best practice approach was used in the consultation process. Thisincluded an exhaustive 100% household survey, specific consultation on business related issues and acomprehensive dialogue with key institutional stakeholders. The results of this process are presentedin the following sections.

4.1 HOUSEHOLD

A household survey was administered to approximately 411 households in each of the two villages ofDumsi and Mbandana. The survey was designed to provide household data on basic demographics,housing types, current fuel use patterns, livelihoods and access to services.

4.1.1 Sample demographics & housing

Gender ratios within both the total sample population and within the respondent group exhibited afemale bias. The age sets of the sample populations correlate closely with the national average.

Figure 6 Age sets

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The villages have been in existence for more than 30 years. The clustered layout of the villages (unlikethe dispersed patterns encountered in other regions) suggests that the villages might have been aproduct of the village planning processes that were instituted under the historically Independentgovernments of the Transkei. In each case, between 60%-80% of the households have lived in theirrespective villages for more than 10 years.

The range of construction methods and materials of houses is fairly constant between the two villages.The figure below records the type of construction for the principle dwelling within the homestead1.

Figure 7 Construction of main dwelling

Dumsi MbandanaNumber Percentage Number Percentage

House(bricks/blocks) 45 22% 54 26%Traditional dwelling 122 60% 79 38%Combination 36 18% 75 36%Total 203 100% 208 100%

Perhaps more informative from an electrification perspective are the number of dwellings (buildingunits) which comprise the homesteads. The average number of rooms per dwelling is 3.6 and theaverage number of buildings or dwellings is 2.8 per homestead.

1 A homestead refers to the boundaries of a family space, which can include a number of houses/buildings.

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Figure 8 – typical village layout

4.1.2 Paraffin Use

Paraffin is the most commonly used modern or commercial fuel within the two villages. Paraffin is apopular choice in all non-electrified rural areas in South Africa as it is freely available, can be bought invarying unit sizes and compatible appliances are both cheap and readily available. On average, 89% ofhouseholds reported that they use paraffin at a monthly cost of R 68.

As indicated below, most non-electrified households use candles for lighting while the general andcommon use of wood provides easy ‘co-application’ possibility for heating water.

Figure 9 Paraffin applications

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The majority of paraffin using households spends in excess of R 40 a month on fuel. Prices of paraffinvary significantly both in terms of ‘economies of scale’ as well as specific retail outlets. The averageprice of paraffin is around R 3 per litre although purchasing from larger commercial centres coupled withlarger quantities sees the price fall to closer to R 2 per litre.

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Figure 10 Paraffin expenditure profile

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4.1.3 Candle Use

The majority of non-electrified households in South Africa use candles for lighting. Candles are readilyavailable from spaza shops and general dealers within the communities. Alternatives to candlesinclude LPG lanterns and paraffin lanterns. On average 87% of householders responded that they usecandles at an average monthly cost of R 19.

4.1.4 LPG Use

South Africa lags behind in LPG usage when compared to equivalent economies, with a nationalaverage for non-electrified households of just 12%2. LPG usage amongst the two villages is relativelyhigh, however. In the villages sampled, use of LPG is 27% and a monthly expenditure of about R 135.

The contrast against the national average might be explained by a number of local conditions. First, itappears that household incomes are significantly higher than for an average rural community in SouthAfrica. And, secondly, the LPG infrastructure is very accessible. The latter point is brought about by theclose proximity (approximately 30km) to the regional centres of Kokstad and Bizana.

LPG is a clean burning, easy to manage fuel that is well suited to cooking. Other applications includeheating water and ironing. Refrigeration as a service requirement is also becoming increasinglypronounced. Studies elsewhere in South Africa have pointed to an increasing use of modern (non-electrical) fuels for refrigeration. The benefits include food preservation and small businessesopportunities.

Figure 11 LPG applications

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2 IES; LPG the fuel for poverty reduction in rural South Africa. 2003

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The expenditure profile for LPG presents significantly larger ranges than paraffin. The principle reasonfor this is the operation of LPG fridges which require significant amounts of LPG. That said, there arehouseholds who rely exclusively on LPG contributing to the higher accounts as indicated in the figurebelow.

Figure 12 LPG Expenditure profile

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4.1.5 Dry-cell battery use

Dry cell batteries are principally used for powering radios although other applications such as Hi-fi’s,tape recorders and clocks were recorded. 54% of households use dry cell batteries at an averagemonthly cost of R 30.

Figure 13 Dry cell battery applications

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4.1.6 Wood Use

Consistent with developing countries elsewhere, South Africa’s rural populations are reliant on woodfuel. While the South African energy industry is significantly more developed than many otherdeveloping economies, there remains a high portion of non-electrified (and electrified) householdswhich rely on wood for cooking. This is particularly true for rural areas. In the case of Dumsi, 90% ofhouseholds used wood fuel while in Mbandana, 76% use this energy source.

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Figure 14 Wood fuel use

Dumsi MbandanaTotal households 203 208Total users 182 159% (using) 90% 76%Total users (buying) 82 74Average expenditure R 17 R 15% (buying) 40% 36%

Wood fuel often has social value beyond the utilitarian or service type relationship that LPG and paraffinpresent. Many households light wood-fires within the homestead for social purposes and use it forsocial cooking or water heating.

Figure 15 Wood fuel applications

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There are three categories of wood users within the two villages. The first of these include the peoplewho collect wood, free of charge, from neighbouring forest plantations and the open bush. The secondcategory consists of people who purchase and collect pre-packaged wood. The final category is thosewho purchase wood and have it delivered to their homesteads.

The costs of wood vary between 15 to 50c/kg depending on the volume purchased at any one time.Most people purchase ‘tractor loads’ in the winter months. Those collecting are subject to opportunitycosts. Households collecting wood spend between 2½-3 hrs, 2-3 times a week collecting wood.

4.1.7 Car battery Use

While the use of car batteries (lead acid) is quite common in both villages, its use is more pronouncedin Dumsi village. Forty-eight percent of households in this village use this energy option as opposed to32% in Mbandana. In addition, users in Dumsi spend more per month on recharging (& transporting)their batteries than their Mbandana counterparts.

Figure 16 Car batteries

Dumsi MbandanaTotal households 203 208Total users 99 66Average expenditure R 32 R 23% Battery users 49% 32%

The number of users and the distribution of users are indicated on the expenditure profile in the figure

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below. The bulk of the users fall in the R 11-20 category.

Figure 17 Battery expenditure profile

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The end uses of the car batteries include powering televisions, radios and Hi-fi’s. None of theseactivities can be considered essential, providing further support to the idea that poorer households willrecharge their batteries less. Most households use their batteries for powering televisions. Car batterysystems for households are often seen as a precursor for solar PV and subsequently grid electricity.

Figure 18 Car battery applications

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4.1.8 Generator Use

Given the costs associated with the purchase and use of small generators, it is not surprising that fewhouseholds within the sample group use them. 11 out of the 411 households own and operategenerators. High average costs are clearly indicated in the figure below. In Mbandana. there is only asingle user/owner. Overall, users report an average monthly cost of R 70-300. Most interesting arereferences to welding, phone-charging and sewing; all three are the basis of small business.

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Figure 19 Generator applications

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Lighing Television Radio Welding Chargingphone

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4.1.9 Electricity Use and willingness to pay

While the villages are obviously not grid electrified they do fall within the Shell/Eskom off-gridconcession. The consortium provides (on a fee for service basis) PV electricity to rural households. Avery small portion of the households have signed a contract to receive this basic electricity service.

Other than households using generators, car batteries, PV and dry cell batteries the remaininghouseholds do not have access to electricity. Part of the survey enquiry included a number of questionswhich sought to establish some level of expectation for an improved community electricity service aswell as the household’s willingness to pay for that service.

Included amongst these questions were how many electric lights the household would require and thepositioning of these lights. The average preferred number of lights per household is 5. Most householdindicated that they would want between two and four bedroom lights.

Enumerators were instructed to inform respondents that they would be required to pay for electricity.They were then asked which of three different energy scenarios (which had an associated fee) theywould be prepared to pay for.

• Option 1: R 20 per month - radio (6-10 hrs), three lights and a black and white television.This scenario was generated on the basis of the kind of energy provided by a 50Wp solar homesystem.

• Option 2: R 70 per month - colour television, VCR, 4 lights and a radio. This is based onservice associated with a 100Wp solar home system with inverter

• Option 3: R 140 per month - colour television, VCR, radio/Hi-fi, 5 lights and a combinedfridge/freezer. The results are included in the willingness to pay graphic in figure below.

Figure 20 Willingness to pay

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4.1.10 Total Household Energy Expenditure

The sample households from Dumsi village spend on average 17% (R28) a month more on energy thantheir Mbandana counterparts. The average monthly expenditure on energy is:

- Dumsi village R 174- Mbandana village R 145

Figure 21 Energy expenditure profile

Expenditure Profile

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The two sample groups have been further analysed in terms of sample and user averages. Thisfacilitates a more accurate understanding of energy expenditure and, potentially, of the customermarket for mini-grid electricity. For instance, in the sample average in figure 22, LPG expenditure isbetween R 30 and R 40 for the two villages. However, looking exclusively at the average amongst LPGusers only, the monthly expenditure is between R 100 and R 150, a situation far more likely toencourage switching between present energy utilisation and electricity.

Figure 22 Energy expenditure (sample average)

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Figure 23 Energy expenditure (user average)

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4.1.11 Household commitments

For the mini-grid to be sustainable, consumers will have to pay an appropriate tariff. This section isaimed at drawing attention to the present commitments that households have in terms of social andfinancial contracts, giving us some idea of their amenability and, indeed, reliability, when it comes tofinancial commitments. To start, approximately 75 households in each sample have bank accounts, 50each have life insurance and 125-150 households belong to burial societies. Other schemes includestokvels (community savings club), credits cards, etc.

Figure 24 Financial participation

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Otherschemes

Financial participation

DumziMbandana

Most household pay schools fees with village averages between R 1,200 and R 1,600 per year. Whileconstitutionally schools cannot refuse to accept pupils on the basis of non-payment, there are strongstigmas attached to non-payment which often prevent households from benefiting from theseprovisions.

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Figure 25 Local School building

4.1.12 Income & Remittances

Many households receive remittances from household members that are employed outside of thecommunities, usually in the larger commercial centres around the country and the mines of theWitwatersrand. 50% of households in both villages receive remittances from family members at leastonce a year. Remittances received average R 5,400 per month. Those paid out are R 4,700 permonth.

In addition to monetary remittances, households both receive and give support in kind as well. A totalof 114 households out of reported receiving in kind support, including food clothing and furniture.

4.1.13 Household Income

Average monthly household income in Dumsi is R 2,000. In Mbandana it is R 1,600. The specificaverages are included in the figure below. The figures include all sources of income, includingemployment and non-employment.

Figure 26 Income sources (average per household per month)

R 0.00R 200.00R 400.00R 600.00R 800.00

R 1,000.00R 1,200.00R 1,400.00R 1,600.00R 1,800.00R 2,000.00

Regular Casual Self-employ Non-employ Manufacturing Total

Income categories

DumziMbandana

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4.1.14 Agriculture As is generally the case in rural villages in South Africa, households plant crops and practice animalhusbandry both as a means of supplementing/investing incomes as well as contributing to thefunctioning of the household. The two village’s surveys proved no different in this regard. The majorityof households in both villages (87% in both cases) plant crops for household consumption. A smallportion of these households, 7% in Dumsi and 6% in Mbandana, sell some of their produce within theirrespective local markets. A diverse range of animals are kept by households including cattle, sheep,chickens, goats, pigs and horses.

Figure 27 Agricultural activities

0

50

100

150

200

Dumzi Mbandana

Agricultural activities

HH Plant cropsHH Sell cropsHH own animalsHH sell animals

4.1.15 CommunicationsOnly three out of the 411 households surveyed owned ‘Telkom3’ telephones. These are not landlines,as there is no such infrastructure in the area, but rather fixed cellular which are powered by photovoltaicelectricity. In contrast, there are approximately 190 households in the sample which own cellularphones4 Those households that use cellular phones report that they spend an average of R 25 permonth on phone calls. In addition to this, they spend approximately R 5-6 to charge their cellularphones between once and twice per week.

4.1.16 Health and AccessThe survey addressed specific health and access issue with particular reference to medicines,treatment and food. The graph below indicates the level to which villages affirmed sufficient access tothese services and resources.

Figure 28 Access to health services and food

68.0070.0072.0074.0076.0078.0080.0082.0084.00

%

Medication Treatment Food

Access to...

DumziMbandana

3 The parastatal Telkom is the national telecommunications utility. 4 The three licensed companies are Vodacom, MTN and Cell C.

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4.2 BUSINESS

4.2.1 The types of businessesThe number and type of businesses were consistent with expectations vis-à-vis a rural village in SouthAfrica. The most prominent category of business operation is micro retail including spaza shops andshabeens (taverns). Generally speaking, products are few and margins are low. The exceptions in thiscase included a general dealer store, a welding business and a block making business.

The rationale behind the proprietors’ involvement in their respective businesses is generally of a pushrather than a pull nature. Of the 14 businesses surveyed, 10 of the proprietors stated that their reasonfor setting up the business in the first place was to get out of financial difficulty – as opposed to anyperceived market need.

Figure 29 Number of village businesses

Type of business NumberSpaza/Tuck Shop 7General Dealer 4Welder 1Phone Business 1Block Maker 1

The general dealer stores have a significantly higher turn-over than the other businesses represented inthe villages. Of the four general dealers some financial estimates for three of them are available(average turnover of R 175,000 per annum). All seven of the spaza shops surveys provided someindication of their annual turn-over (average turnover of R 30,000 per annum). It should be noted thatthese figures could not be verified. Due to the informal nature of business, some exhibit temporaryclosures.

Figure 30 Example of a local dealer

Most spaza shops sell basic goods such as edibles including bread, flour, sugar, salt as well as energysources such as candles and paraffin. General dealer stores include such products in addition to fruit &vegetables, tinned foods, toiletries, household cleaners, sweets, alcohol and tobacco.

4.2.2 Commercial environmentWhile there are not a great number of businesses in the two villages, it seems as if the micro-retailmarket may be close to saturation. There are, however, a number of opportunities in the service sector.While the welding business and the telephone business presently illustrate this, there are many otheropportunities which include; phone shops (Mbandana), seamstress, shoe repairs, business services(such as computers for CV’s and training) and hair salons.

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Micro/small retail business such as those in the villages have low entry requirements - a certain rangeof products - while service sector counterparts generally require some level of training/experience andin many instances, capital investment as well.

Ten of the 14 businesses only accept cash purchases with no credit facilities while the remaining 4businesses do allow customers to purchase on credit. Twenty people in total earn a livelihood from theoperation of these 14 businesses. General dealers employ on average 2.5 persons. All of thebusinesses surveyed are located within 2km of the main road and their customer base is located with a1-2km radius of the business. Most of the suppliers and business services (banks) are located inKokstad and Bizana which are located some 35km from the villages.

All of the businesses surveyed collect their own stock either using their own vehicles (50%) or usingpublic transport (36%). Two of the businesses (14%) hire vehicles from others in the village to collecttheir stock. The businesses purchase stock from either of the two commercial centres.

All businesses open from 7am to 7pm, intended as a measure to combat crime.

4.2.3 Business and energyEight out of the 14 (57%) businesses surveyed own a refrigerator and/or freezer. In each case therefrigerator is powered by LPG. Five of the 8 are combined fridge-freezer while the remaining three arefreezers. In terms of lighting, the figure below details what lighting sources are used in each of thebusinesses.

Figure 31 Energy used for lighting in businesses

0

1

2

3

4

5

Candles LPG paraffin solar genset

No. of businesses

No. of businesses

In the case of the smaller businesses, the average expenditure is R 137, while the average monthlyenergy expenditure for the general dealers is R 250. The latter’s higher expenditure can be attributedto the greater number of energy applications and the common use of refrigerators.

Entrepreneurs were asked how the introduction of electricity would affect the operation of theirbusinesses. The most common selection was the ‘introduction of new products and services’ thatelectricity would facilitate. Other common selections indicated security issues and the opportunity touse displays. The principle perceived benefit is encouraging as electricity is seen as a conduit forgrowth; or alternatively its absence is seen as a commercial constraint.

4.2.4 Fort Donald StoreThe Fort Donald store is located at the entrance to Dumsi Village, on the main road to Bizana. Thestore comprises a large general dealership and a hardware store as well as two petrol pumps and anassortment of large warehouses and smaller accommodation cottages. The owner spends R 5,000 permonth on diesel as well as additional monies on maintenance.

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4.3 INSTITUTIONAL STAKEHOLDERS

A very wide variety of stakeholders were consulted in order to gauge the extent of interest and supportfor the initiative. This included discussion of aspects of mini-grid opportunities and constraints, rangingfrom local development issues and planning to national policy.

Work was also done to establish the linkages with water supply in the area, since current water supplystandards are below the standards set for rural supply.5

The following groups of institutional stakeholder were consulted closely during the course of the work.

Local level:Tribal ChiefsLocal Government: Mbizana Municipality

IDP (Integrated Development Plan) CMIP (Consolidated Municipal Infrastructure Plan)

District MunicipalitySouth African National Electricity Utility (Eskom)Non-governmental Organisations (NGOs)

The structure of government in South Africa is such that a great deal of decision making has recentlybeen delegated to local government. Development of the infrastructure plan for any province is carriedout a municipal level and this ultimately dictates the progression of electrification in that area.

Ultimately this means that agreement at national level must be complimented with support atmunicipality level in order for any project to be successful.

Provincial or Regional Level:Provincial GovernmentSouth African National Electricity Utility (Eskom)Non-grid Service Provider (Eskom-Shell Solar Home Systems)Non-governmental Organisations (NGOs)

Establishing contact with Eskom at every level is vital the success of any project. The responsibility fordeveloping the 10 year electrification plan lies at the provincial level within Eskom and this is a key inputto the feasibility of a project such as this.

National Level:National Electricity Regulator (NER)Department of Minerals and Energy (DME)South African National Electricity Utility (Eskom)Non-governmental Organisations (NGOs)

It is important to establish congruence with national policy aims. The electrification policy in South Africais currently developing at such an enhanced rate that this objective proved difficult to achieve. While amemorandum of understanding was agreed and signed with Eskom we are still in discussion to agree asimilar document with DME.

5 South Africa standard (RDP) refers to a service of 25 litres per person per day within 200m of the persons house

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5 RESULTS - TECHNICAL DESIGN

Following from the consultation phase described in section 5 above, three scenarios were identified forthe development of electricity generation and distribution in the Mbandana area. These scenarios wereused to determine a potential design and costing for electrification using a renewable mini-grid. Thethree scenarios are:

I Generation & distribution in Mbandana servicing mostly domestic loads;II Generation & distribution in Mbandana and Dumsi servicing mostly domestic loads; andIII Generation & distribution in Mbandana and Dumsi with provision for an anchor customer.

The potential anchor customer considered was the Fort Donald Store, which has a number ofdiversified loads including a mill.

These three scenarios are described in the following sections. Macro design and costing was for thegeneration component since wind resources were undetermined and this is a key element of generationsystem design. Costing for the distribution system is fully detailed, since this will be almost unaffectedby changes to the generation system design.

5.1 DISTRIBUTION SYSTEM

The total distribution and reticulation design is based on Eskom standards for reticulation systems6. TheHerman-Beta approach is applied to cater for demand and usage growth based on the income levels ofthe community with fixed current limiting over a 5-year period. The following parameters were used inthe design:

• ADMD 0.5 upgradeable to 1.0 kVA (µ = 1.0/230*1000 = 4.34A)• Current limit 5A (c) • Income level R1200/month• Usage limit per month < 90kWh• α Skewing choose 3.8; β Skewing choose 5.0 (from practical case studies)• Volt drop max 10%• Voltage boost 5%

Design parameters used for electrical supply to the various consumers are shown in Annex 2:Drawings of the proposed distribution in both villages are shown in Annex 3.

5.2 GENERATION SYSTEM

The generating sources were chosen to be predominantly renewable: wind (55%), Solar (25%) andDiesel (20%). Biomass was considered as part of the mix, but there was no significant agriculturalactivity in the area to allow this to be developed further. Note that design is provisional due to unknownwind resource characteristics on site. The size of the Diesel generator was chosen small enough towarrant full load running when selected to start operation and large enough to cater for the full dailydemand within 75% of a day running time if all the other renewable resources were unavailable.Storage was included to service peak periods. Allowance was also made for loads at Schools, Waterpumping, Churches, and Businesses etc as indicated in Annex 2.

These loads were applied to hourly intervals, diversity factors were introduced and the net result was anhourly indication of watt-hours demand. This was then matched with a generation supply optioncomprising a combination of wind, solar and diesel generation with storage batteries. A limiting designfactor, the Inverter, was sized at 150% of peak load in order to cater for motor starting currents and amargin for future expansion of the system of 15-20%. The summary technical design results for thegenerating plant (all three scenarios) are shown in Annex 4.

6 Distribution Technology standards Part 1 Planning; Part 2 Earthing; Part 3 LV; Part 4 MV; Part 8 Services; Part 10Construction

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Wind resources for the identified sites remains undetermined. Wind monitoring was performed on sitefor a period of three months prior to suspension of work on the project. A wind measurement devicewas located at GPS position S30/49/34.0 E29/35/04.9, elevation 1,205m and a height of 18m aboveground level.

The results of this wind monitoring are shown in the figure below, indicating an average wind speed of5.3 m/s over the period. Completion of wind monitoring would determine final technical design andassociated costings for the generation component of the installation.

Figure 32 Wind measurement at Mbandana Dec 03 to Feb 04

Wind Data

0

20

40

60

80

100

120

< 0.5 m/s 4 m/s 8 m/s 12 m/s 16 m/s

Wind speed

Hou

rs p

er m

onth

Dec-03Jan-04Feb-04

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6 Results - Costing and Business Model

6.1 COSTING AND TARIFF ASSESSMENT

A summary of the total capital costs for each scenario is shown in the figure below.

Figure 33 – Summary of Generation and Distribution Capital Costs

Scenario I Scenario II Scenario IIIGenerating Station (R m) 6.94 13.20 15.49

Distribution System (R m) 1.86 3.87 4.11

Total Gen + Dx Costs (R m) 8.80 17.08 19.60

The government of South Africa offers a variety of levels of support for rural electricity supply. ForEskom grid service, rural consumers (average consumption of 80-90kWh per month) are typicallygranted the first 50kWh per month free of charge. The cost of this is provided to Eskom at theconsumer rate of R 0.45 per kWh or R 22 per month.

The only formal non-grid services in place in rural South Africa are concession model Solar HomeSystems. These are charged to consumers at a rate of 58R per month, 40R per month of which issupported by the government.

An analysis of the full life cycle costing over 20 years was performed and this led to the conclusionsindicated in the figure below. The results show that with 100% capital subsidy for the project,consumers would pay up to R 1.39 per kWh7. Note that this assessment did not address the possibilityof differential tariffs.

Figure 34 Subsidised capital (100%) with full operational cost recovery

Scenario I Scenario II Scenario IIIConsumption (kWh/month) 345 352 5,167

Tariff (R/kWh) 1.39 1.12 1.13

Costs to customers (R/month)

Domestic

Small Business

Large Business

74

406

N/A

59

335

N/A

60

273

5,505

Sales (R/month) 25,280 40,520 47,160

Another interesting comparison is the costs to consumers between the various options. These can besummarised as follows:

Figure 35 Comparison of cost to consumers

Mini-grid8 Eskom Grid Solar HomeSystem

CurrentHousehold Spend9

Householdcost/month (R) 38 24 18 53

7 Eskom grid electricity tariff (as of 2003): 0.45R per kWhr8 Based on “grid-like” service with the same free basic electricity subsidy as grid supply9 Calculated from energy sources to be substituted by mini-grid service

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6.2 BUSINESS MODEL

6.2.1 ProcurementThe following sourcing was proposed for the procurement component of the project:

South Africa Suppliers:• All Distribution and Reticulation equipment• Source Diesel Generators• Batteries • Control gear

International supplier:• Wind turbines • Photovoltaic (PV) Panels

6.2.2 Construction and CommissioningFor the distribution network a local construction company could be used, since local experience ofelectrical distribution systems is significant. For the generation plant it is suggested to use experiencedSouth Africa contractors and add a significant element of construction and commissioning skills transferthrough equipment supply contracts.

6.2.3 Operations and MaintenanceFor the generating station it is recommended to contract an experienced maintenance service providerfor major maintenance and refurbishment activities. First line maintenance could be contracted to thesame group responsible for the distribution network.

For the distribution network, any of the following options could be used:

• Appoint the construction company that has built the network to also do the operating andmaintenance function;

• Appoint the Electrical Department of the nearby Kokstad Municipality; or• Employ and train a local person from the villages to do first line operations and maintenance.

6.2.4 Revenue managementAppoint a private revenue management contractor. A number of these companies are in businessrunning the full revenue management function for Eskom and local Municipalities. The successfulcompany would have to set up local customer service offices and services to be provided include:

• Conventional meter reading and Billing• Prepayment meter vending stations• Cash receipt and Banking• Credit control• Disconnections/ reconnections• First line maintenance on meter and customer service supplies • New applications• Management reporting

6.2.5 Model FeasibilityFollowing advice from stakeholders, it was anticipated that issues associated with local socialempowerment, institutional capacity and private sector capacity may offer barriers to theimplementation of this model approach. Mitigation of these risks would only come through careful andsustained capacity building measures, through existing government initiatives. As an example, a lack ofvillage level banking requires an operator to establish expensive revenue collection systems.

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7 CONCLUSIONS

7.1 SITE IDENTIFICATION

1) The area and site identification exercise demonstrates the considerable extent of electricity grid inSouth Africa. This electrification extent has been known in principle from the outset, yet up to date theGIS work summarised in this report shows the situation on the ground very clearly.

2) The GIS methodology utilised during this study is an effective way of filtering a large range ofopportunities into a small group of appropriate sites.

3) A mini-grid investment needs to remain isolated from grid supplies for a considerable period into thefuture in order to justify and protect the investment. Even though a substantial number of householdsdo not have electricity (about 29%), there are not many zones left that are sufficiently far away from theelectricity grid to give some form of guarantee in terms of a 7-10 year operating safety barrier.

4) The remaining zones that do have potential are mainly situated in the Limpopo, Kwazulu Natal andcoastal areas of the Eastern Cape province. Out of all these areas, the Eastern Cape has the largestsuch zones.

5) The site survey process has finally identified a small number of appropriate mini grid sites, all in theEastern Cape. Of the sites identified, two villages were selected for further detailed assessment.

6) The unpredictable nature of municipality planning makes it difficult to recommend any of theidentified sites for full implementation as a mini-grid initiative

7.2 STAKEHOLDER CONSULTATION

7.2.1 National

Major stakeholders at the national level including DME, NER and Eskom were closely consulted duringthe course of this project. Guidance was taken on policy initiatives and the range of issues related todelivery of a renewable mini-grid project.

Government support for non-grid rural energy projects was in transition during the timeframe of thiswork, therefore it was not possible for a new mini-grid initiative to be clearly aligned with national policyand support mechanisms.

7.2.2 Local

Investment in capacity at the local levels of government may be appropriate to support the creation ofan enabling environment. If local government is to take ultimate ownership of such a scheme, thiselement is crucial.

Parallel investment in water supply, which has been reported to be a key priority for households, is verylikely to be forthcoming through the Consolidated Municipal Infrastructure Plan (CMIP). Aside from theexpected expansion of a large electricity consumer (under Scenario III) no activities have beenidentified that would contribute significantly to local economic development in the area. Such activitieswould normally be associated with farming, agri-processing, tourism, crafts and so on.

Since the sustainability of the project is dependent on the ability of consumers to pay for services, localeconomic development is extremely important. This element needs further work if the prospects forsustainability are to be improved.

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Survey results from the community indicate that, with government support (e.g. free basic electricitysubsidy), the community will be able to afford to pay an appropriate tariff to allow for operational costrecovery. Recovery of capital costs from consumers is unrealistic. The electricity service that isprovided must, however be “grid-like” in nature and there is a significant benefit in attracting an anchorcustomer and clearly link the project to parallel investment in productive technologies.

Also at the community level, reports from all experienced stakeholders suggest that communityawareness and “social ownership” is vital. For this, ongoing efforts will be required to prepare thecommunities for the delivery of electricity services.

7.3 DESIGN AND COSTING

From a technical perspective, the design philosophy was to deliver a “grid-like” electricity service.Allowance was made for Domestic consumers as well as loads at Schools, Water pumping, Churchesand Businesses.

Due to the intermittent nature of renewable supply, appropriately sized back-up generators andelectricity storage was incorporated into the design.

The high-level design is feasible from a technical perspective. However, wind resources for theidentified sites remains undetermined. Wind monitoring was performed on site for a period of threemonths prior to suspension of work on the project. The results of this wind monitoring indicate anaverage wind speed of 5.3 m/s over the period. Completion of wind monitoring would determine finaltechnical design and costings for the generation component of the installation.

Costing is high in comparison to the extremely low grid tariff offered by the national utility and a directtrue cost comparison to grid supplies shows a cost ratio of approximately 6:1. Given the cited extent ofgrid electrification in South Africa, in areas that are commonly considered extremely remote, this costingissue is a major factor in the prospect for the further development of this type of project in the country.

7.4 IMPLEMENTATION

The sites chosen for the feasibility study have not been selected for further implementation. This is dueto a change in electrification plans in the locality. Subsequent to the work in Dumsi and Mbandana, siteselection was carried out in several other areas of the Eastern Cape. These were also not taken to afurther level of development due to similar uncertainty over future grid electrification.

In addition, the wider site identification process undertaken to date, including the GIS work andconsultations, makes it clear that there is not significant prospect for roll-out of a mini-grid programme inSouth Africa. This is due to a) the extent and rate of grid electrification in the country and b) theabsence of a policy framework to support such a roll-out.

There is, however potential to use the information and lessons from this study to the benefit of similarelectrification projects and programmes in the region. A significant number of rural communities in sub-Saharan Africa could benefit from small mini-grid renewable initiatives, particularly as technologymatures at this scale and as the operating cost of diesel-based systems escalates.

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Annexes

ANNEX 1 - BIBLIOGRAPHY

DME, 2003. White Paper on the Renewable Energy Policy of the Republic of South Africa. PretoriaNovember 2003.

CSD-11, 2002. Johannesburg (WSSD) Plan of Action http://www.un.org/esa/sustdev/documents/docs.htm

Banks, D, 2003. Rural Energy Service Delivery : A Public Private Partnership Approach. Domestic Useof Energy Conference 2003

Diab, 1988. Renewable Energy Resources and Technology in Southern Africa, A Eberhard, A Williams,Élan Press, Cape Town, 1988.

Diab, 1995. Generalised map of wind power potential in South Africa.

DME, 1998. White Paper on the Energy Policy of the Republic of South Africa, Department of Mineralsand Energy, Pretoria, December 1998.

DME, 1999. Digest of South African Energy Statistics, compiled by CJ Cooper, Department of Mineralsand Energy, Pretoria.

DME, 2003. Integrated Energy Plan for the Republic of South Africa, March 2003

DME, Eskom, CSIR, 2001. South African Renewable Energy Resource Database,www.csir.co.za/environmentek/sarerd/contact.html.

EIA, 2001. Analysis of Reports and Discussions with Various Sources from Industry, Government andthe Department of Energy National Laboratories. Office of Integrated Analysis and Forecasting, USDOE

Energy Futures, 2001. Department of Minerals and Energy, November 2000.

ANNEX 2 - CONSUMER ELECTRICAL SUPPLY DESIGN

Customer type Supply ice description Comments

Households All SiADMD 0.5kVA,current 5

Streetlights Street BEKALAluminair2 x 26W3600 lum

Water pumping

Boreholequippesubmers250W ra

“Anchor”customer –General Dealer

System allow for

Schools,Clinics

All thsupplies

Churches Single-p

Largerbusinesses(stores)

All thsupplies

Smallerinformalbusinesses

Single-p

Serv

ngle Phaselevel at

maximumA

Sufficient for 4 internal (12W) and 2outside (15W) lights (all CFL’s), plugpoints for 90W colour TV,30WRadio/HiFi/Cassette/ CD playerand 400W Fridge

Cooking and other thermal supplied by

front designNE

es, fitted with CFL’s givingens.

Mounted at 5m height, spacing approx50m will give approx 0.5 lux.

Streetlight costs to berecovered from theGovernment’sConsolidated MunicipalInfrastructure Programme(CMIP).

es to d wible pumpsting.

Pumps rated at 1800 litre per hour All costs (sinking ofborehole and equipment)

design 25kVA.

ree pha 10kVA

hase

ree pha 5 -15kVA

hase suppli

beith
of to be funded and
plemented by CMIP

to Currently: hammer mill (~12kVA) andlighting in the store. Expansion: fuSupermarket with 3-phase deepfreezers, cooking facilities, electricafuel pumps and security lights.

se

Maximum current 20A

se

es Maximum current 20A

im

ll

l

loads to beLPG

Currently: oversized60kVA diesel Gen from0800-1700

Page 36 of 39

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ANNEX 3 - PROPOSED DISTRIBUTION SYSTEM IN MBANDANA AND DUMSI

A3.1 Mbandana Village

A3.2 Dumsi Village

Transformer (TX) 1

TX 2

TX 4

Note - Allowance is only forTransformer zones 1, 2 and 4(zone 3 requires approx 90connections but density is low)

Future TX 3

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Note - Allowance is fortransformer zones 1, 2 and4 only. 5 and 6 are forfuture development. 3 isonly applicable if ScenarioIII (with anchor customer)

TX 2

Transformer (TX) 1

TX 4

TX 3

Future TX 5

Future TX 6

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ANNEX 4 - GENERATING SYSTEMS – MACRO BILL OF MATERIALS

Scenario I

Mbandana only

Scenario II

Mbandana and Dumsi

(Mostly domestics)

Scenario III

Mbandana and Dumsiwith an additionalzone for an anchor

customer

Photo Voltaic 330 x 150Wp panelswith net output of34.85kW

720 x 150Wp panelswith net output of76.03kW

840 x 150Wp panelswith net output of88.7kW

Wind turbines 3 x 15 kW units 5 x 15 kW units 6 x 15 kW units

Diesel Generators 1 x 50 kW 2 x 50 kW 2 x 50 kW

3 Phase inverter 100 kW (80kW min) 175 kW (150kW min) 200 kW (175kW min)

Battery system 180 x 2 V 2500Ah cells

Arranged 60 in seriesfor the 120v systemwith 3 parallel banks

300 x 2 V 2500Ah cells


360 x 2 V 2500Ah cells


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