Report proposes replication of collaborative water model in electricity sector
A new PwC report makes the case for replicating a collaborative infrastructure model that has been used in South Africa’s Limpopo province to provide bulk water to both mines and some 400 000 residents for the delivery of electricity infrastructure.
Titled ‘Africa Energy Review 2023’, the report highlights the success of Lebalelo Water User Association (LWUA), which was established in 2002 to supply bulk raw water to the mining sector and communities on the eastern limb of the Bushveld Igneous Complex.
Using what PwC describes as a ‘collaboration-aggregation model’, the LWUA leveraged the commercial support provided by large-scale mining offtakers to reduce the risk of funding of the Olifants River Phase 2 programme, while also alleviating pressure on the fiscus.
“Given the proven concept, the opportunity also exists for energy collaboration-aggregation.
“The essence of this system-based energy model is that it would aggregate demand (using a series of sub-aggregation pilots) and design a best mix of technologies to provide stable power at best cost, including transmission/distribution considerations,” the report argues.
PwC notes that aggregation enables businesses to create economies of scale that can improve the negotiating position of the collective buyers, support competitive pricing, yield favourable power purchase agreement terms and accelerate deployment.
Aggregation models also mitigate risks associated with energy procurement by spreading the risk across a larger portfolio and creating buffers against potential market volatility and changes in regulatory policies.
“The collective demand can accommodate a variety of energy sources, including renewable energy, promoting a diversified and sustainable energy mix.
“This flexibility enables buyers to align their procurement strategies with their sustainability goals and adapt to changing market dynamics,” the report adds.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation