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Back-up power will sell your home
All this bears out the beliefs of Generator Logic's Craig Silver, who spoke to Property24 in late October, saying that he was of the opinion that "much information about South Africa's electricity capacity problems are being kept hidden from public scrutiny, and that the reality of the situation facing both the commercial and private sectors may be far worse than anticipated."
In a recent report by analysts Global Insight, South Africa's electricity sector's contribution to overall GDP in the country halved from 1990 to 2006. The country is now facing a serious electricity supply problem due to the spiralling demand for power and rapidly dwindling excess capacity, and the prospects for the next few years do not look rosy. This is having a knock-on effect on the property market, where the presence of an inbuilt back-up power supply is a very attractive option for potential buyers.
"We are already sitting with a very precarious balance between supply and demand, with very tight margins during peak times such as winter, and the situation is not going to improve in the next year or two," says Silver. "There is an urgency to expand electricity supply but at a cost of more than R150 billion over the next five years, much debate is still raging as to the 'when, how and who' of these upgrades. Top level discussions have been held between Eskom, the departments of Public Enterprises and Minerals and Energy departments of the government, and the National Energy Regulator, and plans have been put forward for possible solutions – none of them offering any short-term solution to the electricity crisis."
In a report published a couple of months ago by Nersa, an audit of 11 large distributors - including Ekurhuleni, Tshwane, Cape Town, eThekwini, Emfuleni, Mangaung, Msunduzi, Rustenburg, Nelson Mandela Metro and the Eskom Southern and North-West regions - painted a bleak picture of the state of electricity distribution in the country, especially in metro areas and small municipalities. Massive skills shortages and a lack of investment are the main threats to the continued supply of power. Some of this has been borne out this week by comments from trade union Solidarity, although the truth of these were vehemently denied by Eskom.
Meanwhile, what can the public do? All over the country stores are selling generators like hot cakes, but is it really that simple? Not so, claims an extract from an information sheet provided by the Electrical Contractors Association, which states:
If the generator does not deliver a constant voltage and there are dips and spikes in the system, equipment is likely to suffer damage.
There are also other obvious dangers, such as the risk of lighting matches or candles near a fuel-powered generator and the danger of fatalities from electrocution.
Most homeowners purchase basic petrol generators which can provide backup for one or two items in the home for a couple of hours at most. These are available at prices ranging from R2500 up to around R10,000. A diesel-operated generator that can provide full electrical supply for a three-bedroomed house for up to 50 hours will cost around R79,000 plus VAT, and installation outdoors in a weather-proof canopy will add to the price. However, for residential complexes it can be very economical for a ten-unit complex to club together and install a 15kva diesel generator for around R150,000 that will feed all ten units running at full capacity for several days.
"It is vital for industry as well as consumers to understand that we cannot expect Eskom to make a full recovery without support and awareness about how to conserve energy as well as derive energy from alternative sources," says Silver. "South Africa is relying heavily on an ageing power infrastructure that was never designed to handle the volumes now required. There are bound to be serious shortages in the interim exacerbated by the phenomenal growth spurt South Africa is experiencing, especially in the run-up to 2010 and beyond." |
Posted on Thursday, December 20, 2007 (Archive on Monday, December 31, 2007)
Posted by hayleym Contributed by hayleym
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