Cost efficient procurement of solar photovoltaic plant for embedded generation

Abstract

South Africa has one of the highest carbon emissions per capita in the world, and this has raised the need to reduce reliance on coal generated power which is carbon intensive. The South African government has focussed on introducing renewable energy technologies for power generation through the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) which is a renewable energy competitive bidding mechanism, which commenced in 2011. The success of the REIPPP, has seen the average prices of utility scale solar PV dropping by 83 % from R3.65/kWh in 2011 to R0.62/kWh in 2016. South Africa’s electricity tarrifs have increased by more than 300 % from 2008 to 2016, and this has caused various energy consumers to implement energy efficiency measures and reduce their electricity costs where possible. It has also raised the need for various energy consumers to look at alternative energy supply options, one of them being solar PV for own electricity use.