Parsons Hill could benefit from a localised Solar Plant established on one of two open areas of park land.
Based on the generated excess power from said grid tied solar power park plant it could be possible to negotiate 100% relief from any load shedding.
This is an exploratory proposal from Straton Solar for residents and stakeholders to comment on, contribute to and benefit from. Register your interest HERE – no obligation, no money down.
One of Gqeberha hidden gem suburbs is Parsons Hill. Established after the Second World War this quiet suburb is sandwiched between the Collegiate Schools, Parsons Hill Primary, Diaz Road and Perridgevale. Parsons Hill is named after Mr. M.G. Parson, Municipal Land Surveyor, 1932-1950. Hence the proposed name of Parsons Power Park.
Offering magnificent views of the bay, properties very seldom come on the market.
Despite it’s small size Parsons Hill boasts two large areas of open land:
- Park 1: Area bounded by Trichardt, van Niekerk, Brebner and Pretorious Streets
- Park 2: Area bounded by Diaz Road, Wepener Crescent, Gradwell and Rochelle Roads.
The Park 1 area is not used as much as we would like our open land areas to be used and, at the top of the land on the corner of Pretorious and Trichardt streets, is the local substation. The park land along van Niekerk street is steeply sloped and roughly North Facing. This stretch of land could accommodate enough solar panels to power the immediate area.
Subject to confirmation we estimate that the substation services around 150 homes. If each consume around 900 units of electricity per month then a solar plant producing 4.5MW per day will be sufficient – representing around 250 x 550 Watt panels.
The usable length of the van Niekerk Road is 210 metres.
The usable slope is 10 metres giving us roughly 2100 square metres of usable space.
Canadian Solar Panels of 550 Watt each weigh in at 32.5 kg with the following dimensions: 218 × 139 × 3.5 cm (just over 3 square metres).
In theory the 2100 square metres of land available will allow the erection of 700 solar panels (450 more than required).
What will it Cost?
Cost estimates are all subject to final design, permissions and land lease costs. Costs will escalate rapidly with added battery storage should the municpality require that the homes are still loadshed.
Initial costs are estimated at R10 Million – representing around R66 666.66 per household.
Register your interest in forming part of a committee to move forward with the Parsons Hill Power Park below:
Parsons Power Park could fall into one of these scenarios:
1. A municipality constructing its own power plant and generating its own electricity whether in the municipal jurisdiction or outside the municipal jurisdiction. “In respect of this Scenario the municipality will in addition have to comply with requirements that are common to most Scenarios and also have to comply with the requirements of procuring strategic infrastructure or assets. This will also require further analysis as there may be implications for a municipality and its neighbouring municipality, depending on the location of the asset, which impact on operations outside of its jurisdiction or boundaries. The MFMA has some specific prohibitions or conditions in section 164, relating to the latter point.”
Summary of Approvals/Requirements:
Section 34 Determination setting out terms on which a municipality may establish new generation capacity. (Authority/ies: Minister of Mineral Resources and Energy and NERSA concurrence).
Key considerations: In light of changes to the generation facilities licensing requirements, the requirement to obtain a Determination before initiating procurement will be confirmed by the procedures agreed to within DMRE and NERSA. As a result, this may be required at Preferred Bidder stage. DMRE view is that if Regulation 5 approval is granted, then section 34 Determination will follow. The Determination could be sought at the same time as Ministerial Consent.
Timing for Application: A Determination may be required for registration purposes however, it is not required presently.
Timing for approval: No statutory time period. It is therefore recommended that all relevant information is provided as early as possible. It could be a lengthy process, however, DMRE has indicated it will expedite all processes.
Ministerial consent under regulation 5 of the New Gen Regulations. (Authority/ies: Minister of Mineral Resources and Energy – approving authority and Municipality as the applicant after completing a feasibility study.)
Key Considerations: DMRE advises that Ministerial Consent is needed for a generation facility and requires registration. To ensure Ministerial Consent, a feasibility study that complies with regulation 5(2) of the New Gen Regulations will need to be undertaken.
Timing for Application: Ministerial Consent may be linked to registration. This could be sought at Preferred Bidder stage.
Timing for approval: No statutory time period. It is therefore recommended that all relevant information is provided as early as possible. It could be a lengthy process, however, DMRE has indicated it will expedite all processes.
Registration in terms of Schedule 2 of ERA. (Authority/ies: NERSA – authority empowered to register generation facilities. The generator applies for registration certificate.)
Key Considerations: We have assumed that the projects that will participate in the Municipal IPP procurement programme will generate 100 MW or less which will mean they do not require a generation license but do require registration with NERSA. Registration itself is done in terms of the SSEG Registration Procedure to be updated from time to time.
Timing for Application: Following appointment as Preferred Bidder
Timing for approval: The registration certificate is required to be issued within 60 days of NERSA or its electricity subcommittee receiving the evaluation report.
Section 33 requirements for conclusion of a contract longer than 3 years. (Authority/ies: Municipal council approves the contract after public participation process and consultation with National Treasury, COGTA and DMRE among others. Information to be made available for public participation process. It is also advisable to include this during the municipal IDP consultation processes.)
Key considerations: Public notice and comment required. Solicitation of views and recommendations from a range of government stakeholders will be required as these have long term financial and other obligations for the municipality and it promotes the key principles of transparency and accountability.
Timing for applying/obtaining the approval: After appointment of preferred bidder and prior to final PPA approval by the municipal council. 60-day comment period required.
Price under the PPA. (Authority/ies: NERSA)
Key Considerations: Considered and approved at registration, also considered at during annual tariff approval process. Updated Cost of Supply Study to reflect and changes arising from the PPA.
Timing for applying or obtaining the approval of the tariff: Municipal electricity tariffs approved annually by NERSA.
Government Guarantee. (Authority/ies: Minister of Mineral Resources and Energy, Minister of Finance, Municipal Council.
Key Considerations: The Minister under section 34(2)(e) of the ERA is empowered to provide a government guarantee to support the PPA if the Municipal IPP procurement programme is procured by the municipality under a Determination. The provision of financial support is generally addressed in the Annual Division of Revenue Act. National Treasury has not issued guarantees for a Municipal IPP procurement programme. The current policy position is that such transactions be undertaken within the financial capacity of the municipality.
2. A multi-buyer scheme where a municipality is one of more than one off-taker with a potential IPP. “This is a Scenario which with clear policy support is viable. There are different models which can be adopted to give effect to this Scenario. The different models include establishing a multi-jurisdictional service utility or incorporate of a state-owned entity to which two or more municipalities are shareholders.”
Summary of Approvals/Key Considerations: The specifics which apply to each type of possible vehicle which the municipalities may use are not discussed here. This discussion is quite specific and requires an in-principle decision based on exactly what is intended. For example, are municipalities considering providing this service through a state-owned company as opposed to a service utility. If a service utility is contemplated, is the intention for this entity to have customer interface or it will just be selling power to the participating municipalities.
3. Unsolicited bids (i.e. where a municipality is approached by a bidder or developer with a specific project and the municipality seeks to enter into an agreement with such party in the absence of a competitive tender). “This scenario is not recommended due to a lack of competition. Outside the set pre-conditions, it is difficult to justify unsolicited bids especially in the power purchase environment. The National Treasury recommends that electricity procurement processes are fair, equitable, transparent, competitive and cost-effective.”
Summary of Approvals/Key Considerations: The criteria for unsolicited bids are clearly articulated in section 113 of the MFMA and Regulation 37 Municipal SCM Regulations. The National Treasury recommends that electricity procurement processes are fair, equitable, transparent, competitive and cost-effective. If the criteria and threshold in the SCM Regulations are met, a municipality may proceed to the next step.
In respect of each of these Scenarios above, the applicable legal framework is identified and key aspects in the process are highlighted in the Regulatory Framework On Procurement For New Generation Capacity. This will assist municipalities and municipal entities to ensure risk mitigation measures are included and addressed appropriately.
Essentially the Parsons Power Park proposal is a MICROGRID.
1. What is a microgrid?
A microgrid is a set of on-site energy loads and resources that work as a system and can operate independently of the grid. It can be as small as a few solar panels and a battery or as large as an array of solar, wind, hydrogen, and other systems across multiple facilities or a community. An intelligent microgrid that automatically adjusts energy loads and resources to optimize cost and resilience requires a full stack of generation, storage, analytics, interconnection, and software components. This can be a complex undertaking, so finding the right partner is essential for success.
2. How does a microgrid help with resilience?
Utility outages are growing more prolonged and frequent in many areas, often caused by weather-related disasters and aging infrastructure. A microgrid enables your organization to remain powered by seamlessly switching to on-site generation or storage. If the grid fails, a microgrid controller can sense the disruption, disconnects from the utility, activates “island mode,” and reconnects when the utility service is restored.
3. How does a microgrid help with sustainability goals?
A microgrid provides the technical infrastructure to pilot, integrate, and scale renewable energy systems in lieu of or to balance out non-renewable sources from the grid at your own pace. With the right software, controller, and interconnection equipment, the microgrid can use renewable sources, including battery storage, to supply your needs and could enable providing decarbonized power through a utility to other users.
4. How does a microgrid aid in energy cost efficiency?
An intelligent microgrid controller determines the optimal times to consume, produce, store, or sell energy based on weather, predicted utility rates, and other factors. It allows you to use your own loads without paying peak rates from the utility and the option to sell excess power when available. A microgrid can be a long-term hedge against inflation as the cost of fossil-fuel utility plants increases relative to renewable sources.
What About Additional Revenue?
The area of the park alongside Van Niekerk Street is a very popular spot for motorists to park and appreciate the view. We could install Electric Vehicle charging points and sell excess solar energy.