Time to redefine energy business models as trend grows to move off grid - expert

Kicking off discussion at the South African Local Government Association (Salga) energy Indaba in Sandton, Johannesburg, 702/CapeTalk's Ray White speaks to independent energy expert Dr Willem De Beer about energy solutions which South Africa can explore in the near future.

De Beer says South Africa is moving towards an era where people will increasingly be looking for energy efficient solutions that can enable them to be off the grid. But that, he adds, this would create a decline in the kilowatt sales which impacts negatively on Eskom and municipalities.

Read: Municipalities are owed R143 billion

At a local level, we must embrace the new technology and redefine the business model to say how do we remain sustainable and capitalise on the new opportunities.

Dr Willem De Beer, Independent energy expert

The challenge for local government is that it is the high-end consumer that will first switch and those are the customers who are providing most of the revenue which the government uses to cross-subsidise other services. Therefor you are forced to revisit and review your current business model.

Dr Willem De Beer, Independent energy expert

De Beer says there is no reason for government to venture into embedded distribution generation and make it part of its offering.

In order to achieve that, new infrastructure and reviewed business models will have to be put in place.

You have to make sure that everybody contributes fairly to the infrastructure that needs to be maintained to run.

Dr Willem De Beer, Independent energy expert

This calls for really thinking out of the box, we really need to pull up our sleeves and do something about it.

Dr Willem De Beer, Independent energy expert

To hear the rest of the interview on local energy, listen below:


This article first appeared on CapeTalk : Time to redefine energy business models as trend grows to move off grid - expert


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