ELECTRICITY GENERATION
Renewables will make more sense than megaplants
As the world moves away from carbon dioxide-emitting power, being locked into a coal-based energy system sees increased risks, write Dirk de Vos and Nicole Löser
As renewable sources of energy continue to decline considerably in price, they are no longer dependent on policy support or subsidies. They are now viable, mainstream sources of electricity generation that can be compared with traditional generation sources — whether fossil fuel-based or powered by nuclear reactors. There are several misconceptions about how different sources of electricity are priced. A good number are a result of how Eskom seeks to present them. This is particularly true in relation to renewable sources supplied by Independent Power Producers (IPPs). The internationally accepted metric for comparing different generating technologies is the levelised cost of electricity. Its principal purpose is as a planning tool and it seeks to bring into account the value of all the energy produced (in kWh) by a generator. It is the life cycle cost per kWh of any future project, but it is static and only considers capital costs of competing technologies at a point in time and fa...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.