The Green Power Voluntary Trading Market
Driver of Local Economic Development (LED)
City of Tshwane allows first trade of green power to Mercedes-Benz South Africa
Presentation to the EC Green Energy Conference
29 November 2012
Amatola
Green Power
Requirements for Green Power Trade :

Amatola Green Power is an electricity trading company
operating in the voluntary market of willing buyer,
willing seller

69% Black equity, therefore aligned with BEE charter

On the basis of a pilot project by DME 2006, adopted by
cabinet 2008.

Was awarded a license by NERSA 2009

Rents networks from Eskom and municipalities for a
fee. Wheeling Agreement NMBM

Buy physical energy from generators supply green
certificates

Sell it to Customers it directly to Customers many
customers in municipal /Eskom Areas.
Amato
la
Green Power
Amato
la
Green Power
The Voluntary Green Power trading market
The Amatola Green Power concept (cont)
G
G
IPP
IPP
Amatola Green Power
generators (IPP’s)
Green Power generator
output monitor
Electrical Network Owned and operated by
Distributor or Re-distributor
Renting the existing
network (Wheeling)
Green Power
supply monitor
Amatola Green Power
users
Amatola
Green Power
The Voluntary Green Power trading market
The Role of Municipalities

1. Councils need to adopt a Policy to
develop the green economy.
 2. Eskom wants (PCP ) 10% savings /
Allow 10 % of their power to be traded.
 3. Wheeling Agreement.
 4. Embedded Generation Policy Nersa
 5. Rooftop easiest to kick –start SMME’s
Amatola
Green Power
The current electricity supply scenario has only one
direction in SA
From a few big power stations down to the consumers
Import/Export
110 / 220 / 380 kV
10 / 20 kV
400 V
6
At local/municipal - distributed generation proceeds, energ
grids and information & communications technology
(ICT) are mergeing
Import/Export
110 / 220 / 380 kV
10 / 20 kV
132V
Distribution Grid
Control Center
Smart GridTechnology
Forecast of load
and RE generation
7
Practical Benefits of the Green Economy Strategy
Renewable electricity generators are setting up shop in the NMBM
to generate electricity and customers are willing to enter into long
term agreements to make the projects viable and bankable.
Amatola
Green Power
Practical Benefits of the Green Economy Strategy in
the NMBM
Already stimulating existing investment , travel air and vehicle hire,
fuel usage to and fro, accommodation establishments, property
purchases, lease agreements, maintenance agreements, training of
existing engineers and electricians to opportunities and Job creation.
Amatola
Green Power
☻Practical Benefits of the Green Economy Strategy
☻3 @ 300KW Wind power generation at Rangers R20 million
☻ 500 KW Biomass at Rangers . R10 million
☻10MW Solar Roof Top @3. Value R 300 million. Requires
generation license . 9 months from implementation.
☻The rooftop Solar installations in Germany was the biggest
stimulant to SMME’s with 1000’s jobs.
72 MW Wind Farm Project Green South with Community based Trust
Amato
as beneficiary 1year rollout from day PPA signed R1,4bn
Green Power
la
The Benefits of the Green Power trading market
☻Benefits of the Green Power Trading to a Municipality :
☻New Growth Path implemented.
☻Private sector investment in new IPP
☻Additional kilowatts made available to the munic.
☻ Reduce load shedding and begin to build
independence from Eskom
☻Green economy implemented
☻Job creation
Amatola
Green Power
The Way Forward
☻ Request to Municipality is :
☻Enter into a Wheeling Agreement with Amatola.
☻Cap trading at 10% of total consumption
☻Charge a wheeling fee of eg 7% on the energy charge
☻Allow trading of 80% from local IPP’s and 20% outside
the municipality.
☻Enter into 20 year agreement which is required by banks
to finance new generation projects.
☻Can be implemented ito Sect 32 of the MFMA.
Amatola
Green Power
Thank you
Any Quest
Amatola
Green Power