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The potential of photovoltaics and battery energy storage to address declining electricity price margins within South African municipalities

Thesis (MEng)--Stellenbosch University, 2024.

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Main Author: Rhode, Aiden
Other Authors: Nicholls, Christo
Format: Thesis
Language:en_ZA
en_ZA
Published: Stellenbosch : Stellenbosch University 2024
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access_status_str Open Access
author Rhode, Aiden
author2 Nicholls, Christo
author_browse Nicholls, Christo
Rhode, Aiden
author_facet Nicholls, Christo
Rhode, Aiden
author_sort Rhode, Aiden
collection Thesis
dc_rights_str_mv Stellenbosch University
description Thesis (MEng)--Stellenbosch University, 2024.
format Thesis
id oai:scholar.sun.ac.za:10019.1/130544
institution Stellenbosch University (South Africa)
language en_ZA
en_ZA
last_indexed 2026-06-10T12:46:50.651Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository
publishDate 2024
publishDateRange 2024
publishDateSort 2024
publisher Stellenbosch : Stellenbosch University
publisherStr Stellenbosch : Stellenbosch University
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source_str SUNScholar — Stellenbosch University Repository
spelling oai:scholar.sun.ac.za:10019.1/130544 The potential of photovoltaics and battery energy storage to address declining electricity price margins within South African municipalities Rhode, Aiden Nicholls, Christo Bekker, Bernard Stellenbosch University. Faculty of Engineering. Dept. of Electrical and Electronic Engineering. The potential of photovoltaics; battery energy storage; address declining electricity price margins; South African municipalities Photovoltaic power systems Energy storage Electricity price margin Electric utilities -- South Africa UCTD Thesis (MEng)--Stellenbosch University, 2024. ENGLISH ABSTRACT: This thesis explores the impact of Photovoltaic (PV) and Battery Energy Storage Systems (BESS) interventions in both municipal and private entity contexts on the municipal Electricity Price Margin (EPM). The research journey begins with a comprehensive literature review that provides various NERSA regulated tariff-setting methodologies such as benchmarking, for ensuring the sustainability of regulated municipal electricity businesses. It also investigates the challenges faced by municipalities, particularly concerning their electricity margins. By establishing the extent of the electricity price margin problem, the study highlights the potential applications of Distributed Energy Resources (DERs). To ensure a holistic investigation, a case-study design was adopted to investigate the potential of PV and BESS to address declining electricity price margins. This consisted of utilising PV and BESS interventions to reduce municipal cost of supply by means of implementing energy arbitrage and demand reduction strategies. The use of Homer in conjunction with Excel allowed for the sizing, simulation, and financial analyses of PV and BESS intervention in a municipal and private context. Two case studies were designed for municipal PV and BESS design and analyses to establish the impact the respective technologies could have on the municipal EPM. A third case study was introduced for designing and analysing the impact private BESS could have on private operations and the municipal EPM. The results of the simulations done in the case studies highlight the following: PV and BESS interventions can improve municipal EPM. However, given the base case EPMs of 36.17% and 43.76%, the interventions investigated within the case studies were unsuccessful in improving municipal EPM to the desired NERSA EPM benchmark. Even though the PV and BESS interventions improved municipal EPM to similar degrees, the analyses highlighted the importance of investigating the financial feasibility of the various interventions. A noteworthy result was that private ownership of BESS marginally improved municipal EPM but contrastingly reduced municipal electricity sales revenue. System sizing and ownership of the interventions as well as the tariff structure are critical factors to the improvement of EPM. Future research should explore the technical analysis of applicable intervention integration into distribution networks, the influence of different funding models, and the effectiveness of addressing additional NERSA performance indicators. AFRIKAANSE OPSOMMING: Hierdie tesis ondersoek die impak van Fotovoltaïese (PV) en Battery Energiesbergingstelsel (BESS) intervensies in beide munisipale en privaat entiteit kontekste op die munisipale Elektrisiteitsprysmarge (EPM). Die navorsingsreis begin met 'n omvattende literatuuroorsig wat verskillende NERSA-gereguleerde tariefstellingsmetodologieë soos maatstawwing verskaf, om die volhoubaarheid van gereguleerde munisipale elektrisiteitsbesighede te verseker. Dit ondersoek ook die uitdagings wat munisipaliteite in die gesig staar, veral met betrekking tot hul elektrisiteitsmarges. Deur die omvang van die elektrisiteitsprysmargeprobleem vas te stel, beklemtoon die studie die potensiële toepassings van Verspreide Energiebronne (DER). Om 'n holistiese ondersoek te verseker, is 'n gevallestudie-ontwerp aangeneem om die potensiaal van PV en BESS te ondersoek om dalende elektrisiteitsprysmarges aan te spreek. Dit het bestaan uit die gebruik van PV en BESS-intervensies om munisipale voorsieningskoste te verminder deur middel van die implementering van energie-arbitrage en elektrisiteit aanvraagverminderingstrategieë. Die gebruik van Homer in samewerking met Excel het toegelaat vir die dimensionering, simulasie, en finansiële ontledings van PV en BESS-intervensies in 'n munisipale en privaat konteks. Twee gevallestudies was ontwerp vir munisipale PV en BESS-ontwerp en -ontledings om die impak wat die onderskeie tegnologieë op die munisipale EPM kon hê, vas te stel. 'n Derde gevallestudie ondersoek die ontwerp en ontleding van die impak wat privaat BESS op privaat operasies en die munisipale EPM kon hê. Die resultate van die simulasies wat in die gevallestudies gedoen is, beklemtoon die volgende: PV en BESS-intervensies kan munisipale EPM verbeter. Maar, gegewe die basisgeval EPM's van 36.17% en 43.76%, was die intervensies wat binne die gevallestudies ondersoek is, onsuksesvol in die verbetering van munisipale EPM na die gewenste NERSA EPM-maatstaf. Alhoewel die PV en BESS-intervensies munisipale EPM tot soortgelyk verbeter het, het die ontledings die belangrikheid van die ondersoek na die finansiële haalbaarheid van die verskillende intervensies beklemtoon. 'n Noemenswaardige resultaat was dat privaat eienaarskap van BESS marginaal munisipale EPM verbeter het, maar kontrasterend munisipale elektrisiteitsverkope-inkomste verminder het. Stelselgrootte en eienaarskap van intervensies sowel as tariefstruktuur is kritiese faktore tot verbetering van EPM. Toekomstige navorsing moet ondersoek instel in tegniese analise van toepaslike intervensie-integrasie in verspreidingsnetwerke, invloed van verskillende befondsingsmodelle, en effektiwiteit om addisionele NERSA prestasie-aanwysers aan te spreek. Masters 2024-03-04T08:39:21Z 2024-04-26T21:28:31Z 2024-03-04T08:39:21Z 2024-04-26T21:28:31Z 2024-03 Thesis https://scholar.sun.ac.za/handle/10019.1/130544 en_ZA en_ZA Stellenbosch University 124 pages : illustrations. application/pdf Stellenbosch : Stellenbosch University
spellingShingle The potential of photovoltaics; battery energy storage; address declining electricity price margins; South African municipalities
Photovoltaic power systems
Energy storage
Electricity price margin
Electric utilities -- South Africa
UCTD
Rhode, Aiden
The potential of photovoltaics and battery energy storage to address declining electricity price margins within South African municipalities
title The potential of photovoltaics and battery energy storage to address declining electricity price margins within South African municipalities
title_full The potential of photovoltaics and battery energy storage to address declining electricity price margins within South African municipalities
title_fullStr The potential of photovoltaics and battery energy storage to address declining electricity price margins within South African municipalities
title_full_unstemmed The potential of photovoltaics and battery energy storage to address declining electricity price margins within South African municipalities
title_short The potential of photovoltaics and battery energy storage to address declining electricity price margins within South African municipalities
title_sort potential of photovoltaics and battery energy storage to address declining electricity price margins within south african municipalities
topic The potential of photovoltaics; battery energy storage; address declining electricity price margins; South African municipalities
Photovoltaic power systems
Energy storage
Electricity price margin
Electric utilities -- South Africa
UCTD
url https://scholar.sun.ac.za/handle/10019.1/130544
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AT rhodeaiden potentialofphotovoltaicsandbatteryenergystoragetoaddressdecliningelectricitypricemarginswithinsouthafricanmunicipalities