Founder: Turnaround Talk
Loadshedding has proven to be one of the single most significant root causes of financial distress for many companies as they struggle to come to terms with its disruption.
In the past, companies were at the mercy of Government and had to participate in some creative planning to try and maintain cash flow within their business. This has changed significantly over the past few months as solar (and its pricing) is becoming more accessible. However, smaller and medium-sized companies are still struggling as they must account for every cent that runs through the business.
Significant work needs to be done to find a workable solution to loadshedding that is available to every company. I recently read an article by Moneyweb which may have a product that can provide this solution.
More control
The Moneyweb article points out that Eskom has announced the beginning of a pilot project that will give consumers more control over load shedding by using smart meters.
The utility said selected consumers in Fourways in Gauteng will during Stage 1-4 load shedding get four opportunities to reduce their load from 60/80 Amps to 10 Amps by switching off some appliances.
They will be notified through the interface of their smart meters and cellphones an hour before load shedding starts. This will allow them to keep essential appliances on, but if they don’t respond, the supply to the whole property will be switched off for the duration of load shedding.
The article adds that the success of this pilot will inform the countrywide roll-out of its demand management programme, says Eskom.
The use of the system, especially on geysers, can be very beneficial, says Dr Adriaan Davidse, a South African living in Canada and director at consulting service Deloitte.
However, Davidse believes it can be done much more efficiently.
He cautions against reverting to the established way of thinking to solve the electricity crisis rather than positioning the country for a rapidly changing electricity supply industry that will look very different in future.
Experts develop device
The article points out that Davidse has brought together several small businesses – all world leaders in energy management – and believes that jointly they can within 12 weeks provide a device and conclude simulations to end disruptive load shedding as we know it. In addition, this solution will position South Africa for the future where exclusive central control over the power system will be a thing of the past.
This, he says, can be done at a cost equal to what two days of load shedding costs the economy.
The first phase of the Ubuntu Power Solutions Alliance solution is also based on using geysers as “batteries” – a well-known concept.
The article adds that the alliance however takes it much further.
“There are about six million geysers in South Africa with one to two million switched on at any given time,” says Davidse.
The article points out that, if all the geysers were switched on at the same time, it would equal a load of 20 000MW. This is significant if compared to the roughly 29 000MW Eskom has been supplying daily over the past week.
Image By: Supplied
Reducing the load on the grid
Each stage of load shedding represents a shortage of 1 000MW at any given time. By switching off geysers, the load can be reduced by between 3 000MW and 5 000MW, he says. Consumers in affected households would hardly notice it because the water stays warm for four to six hours, and even longer with a geyser blanket, says Davidse.
The article points out that Davidse is sceptical about the success of the centrally controlled programme Eskom is proposing. The number of households with smart meters is limited. He says it will take years to implement nationally – time that South Africa doesn’t have.
In addition, it is complex, and he points to the risk that something can go wrong with central control that may affect the whole system negatively.
“Yes, install the smart meters. It is necessary for billing,” he says.
The solution the Ubuntu Power Solutions Alliance offers comes at a cost of 20% of a smart meter and can be implemented within a year if all decision makers are aligned.
Measuring frequency
The Moneyweb article adds that the device the alliance has developed, which is installed on the geyser and can also be used on a fridge, for example, continuously reads the frequency of the electricity system. It measures it in split seconds with extreme accuracy.
The frequency is the same countrywide and can therefore be measured at any point on the network to analyse the state of the system. When demand and supply are in balance, it is 50Hz, but it varies with any over-supply or under-supply. A sudden, big variation can result in a network collapse and national blackout.
By installing the devices countrywide, geysers can be switched off automatically when demand increases and a supply deficit develops “but the algorithm must be written to introduce changes gradually countrywide and prevent sudden mass switch-offs or switch-ons that will be detrimental to grid stability”.
Davidse says instead of switching off the electricity supply to whole areas as is currently being done during load shedding, geysers all over the country will work together to keep the network in balance and consumers will be able to keep their lights and other appliances on.
The article points out that the system will, for example, switch on geysers to heat water in the afternoon when there is ample energy on the grid, thanks to the increasing contribution of solar power, rather than during the evening peak when consumers arrive home from work and switch on kettles and stoves.
Pilot project
Davidse says this is all existing technology, but the way it is put together is new. A successful pilot project has been run in Germany, but the device has not yet been deployed at scale.
“The rest of the world has not yet seen the level of variation in power supply that South Africa is currently experiencing. It must now be built in South Africa with simulations for Eskom to be sure that it won’t harm the system,” he says.
The article adds that the alliance has already engaged Eskom and the utility offered to give its support for the testing of simulations, adds Davidse.
He says the parties in the alliance are “small, innovative companies from all over the world, each with a team of not more than 10 people” who are prepared to provide their services to assist the country.
No cost to consumers
The article points out that Davidse believes the project should be funded by government and come at no cost to the consumer.
“It is a simple installation. One cuts the cable to the geyser and installs it in the roof.” Each geyser gets its own device, about the size of a chocolate bar.
The simplicity lies in the fact that it does not require communication to the central control point for the system to work.
The article adds that Davidse believes the experience of companies like Deloitte in rolling out mass programes during the Covid-19 pandemic will help to get consumers’ cooperation and to coordinate implementation.
Image by: Image By: Dwayne Senior/Bloomberg
If the six largest metros agree, installation can be done quickly. He has already met with leaders in Cape Town.
Davidse proposes consumers should be given the choice of allowing the installations in their homes, or accepting that the municipality will otherwise install the device on its side of the meter, where it will switch off power supply to the whole house when the frequency indicates the power system is under pressure.
More support please
Economic growth will only be achieved if we have a reliable power grid. While Eskom says it has been working valiantly to address the loadshedding challenge, very little evidence supports this. It is up to businesses to fend for themselves with very little support from Governmental powers.
More support for research needs to be needed to produce products that will ultimately end loadshedding. Additionally, there needs to be more support for small, medium and micro enterprises (SMMEs), even if this means that larger corporations must dig deeper into their pockets to assist. Surely short-term pain for long-term gain is better than having an unequal business environment where those with access to capital prosper while those who are not as lucky fight over the scraps.
While the article does indicate that this pilot project is being rolled out to residential properties, it is worthwhile noting that many SMMEs are home-based. Additionally, with remote work still proving to be popular, remote employees of larger businesses can remain online.
