NMB Businesses to 'Go Green'

BY KHALED EL-JABI - DECEMBER 17, 2014

The NMBM had recently signed a ‘wheeling’ agreement with Amatola Green Power, the only entity in SA to hold a Renewable Energy Trading License. Essentially, Amatola purchases renewable energy from producers and sells this energy to customers within the Metro. The wheeling agreement between the NMBM and Amatola is for approximately 10% of the Metro’s annual consumption and runs for 20 years.

The NMBM has been at the forefront of renewable energy promotion and was the first municipality in the country to pass a policy and by-law allowing the net metering of renewable energy. The NMBM lobbied NERSA extensively to secure approval for net metering up to 100kw without requiring a power producer license.

As part of the ‘wheeling’ agreement, the NMBM requires that a minimum of 80% of the renewable energy sold to customers in the Metro be sourced from projects within the borders of the Metro. This requirement is a long-term vision from the Metro to promote the production and distribution of renewable energy within its mandated borders.

The desired effect of this requirement is the attraction of new businesses, manufacturers, RE educational facilities, RE financing solutions and most importantly, job creation. Port Elizabeth is in pole position to achieve this because of its world class manufacturing status with the automotive sector. Coega IDZ has already signed agreements with various manufacturers servicing the local content portion of the REIPPP.

Accordingly, Amatola Green Power has contracted PE based Fusion Solar Solutions to market the green energy to various businesses in the Metro, especially those on certain tariff structures suitable for RE consumption.

Amatola is able to supply certain amounts of green energy to these businesses at a discounted rate than what they would normally pay to the Municipality. This is done by signing a long-term (5-10yr) Power Purchase Agreement between Amatola and the purchaser with minimal to no upfront costs.

Once the PPA is signed, energy usage data is collected and monitored for analysis to make sure the process is managed effectively. Fusion Solar Solutions manage the ongoing process and keep the energy user informed so they are able to make decisions about their energy consumption and management.

For further information contact:

Tim Whitaker: 071 689 9985

Khaled El-Jabi: 073 454 1412