ABSA at the forefront of renewable energy solutions

If you are a regular visitor to Makro Woodmead, Riversands, Carnival, Strubens Valley, Springfield or Silverlakes stores, you will have no doubt parked in a shaded parking space that has solar panels on the roof. Did you know that those carport systems have the capacity to generate 4.4 million kWh and offset 4 700 tonnes of CO2 emissions per year?

Absa Relationship Banking provided the debt facility to Nesa Investment Holdings that acquired Makro’s carport solar photovoltaic (PV) systems at stores countrywide – that will generate clean electricity that is fed directly into stores, allowing these stores to reduce their total monthly electricity bills and alleviate pressure on the national grid.

Absa’s Renewable Energy division under Justin Schmidt who will be one of the speakers at FASA’s Conference in Johannesburg on the 26th October, offers its clients a valuable insight into the current energy crisis landscape and offers sustainable solutions.

“Over the past decade, solar PV has become a very cost competitive solution,” said Justin Schmidt, Head of Renewable Energy, Manufacturing,Transport & Logistics at Absa. “With power challenges facing the economy, the renewable energy sector plays a vital role in providing additional energy security to the grid.”

Tapping into the sun for your energy solutions

The abundance of sunlight and solar resources in South Africa makes the use of solar radiation to generate electricity a no-brainer. Compared to most other continents, Africa receives higher levels of sunlight per square meter than many other parts of the globe and whilst many countries require subsidies to make solar viable, our subsidy comes through the abundance of solar radiation we receive.

According to Justin Schmidt, the price of PV systems has declined significantly in the last decade. “Despite this reduction, the initial capital costs of PV systems are relatively high when compared to non-renewable energy sources, such as diesel generators. However, unlike non-renewable energy sources, PV has no fuel costs and low operation and maintenance costs. Higher electricity prices have also resulted in a more feasible financial model for a PV system. Larger PV systems offer lower energy costs over the PV system’s lifespan when compared to smaller systems, due to the lower installation costs. It should therefore be considered as a long-term investment.”

Lifespan, costs and implementation

Most solar PV panels on the market today come with a warranty of 25 years, meaning that the power output will not be below 80% of the rated power until after 25 years of service. Other components, such as the inverters, must be replaced after every 10 years of service – an important cost to consider.

Solar PV systems can operate as stand-alone units or tied to the local electricity network. Small-scale stand-alone units are commonly used in remote areas that are not connected to the grid. In typical stand-alone units, battery packs are installed for night-time operation. The electricity from small-scale stand-alone units is used for powering domestic appliances such as radios and refrigerators.

Grid-tied systems are connected to the national power grid. These systems are becoming increasingly popular, with many households installing small PV systems. It is also implemented increasingly in the commercial and industrial sector to offset electricity usage from the grid. Since PV systems only generate electricity when the sun shines, we have seen highest adoption with farmers, manufacturers, retailers, shopping centres and other businesses that operate in day light hours.

Conclusion

When thinking about your company or household’s future energy mix, solar PV is likely to be the most viable option for you. Given the reducing costs of technology, increasing energy costs, our abundant sunlight and the long lifespan of the technology the business case is increasingly attractive. Solar PV is therefore a key enabler to achieving goal number 7 of the UN Sustainable Development Goals by ensuring affordable, reliable and sustainable energy for all.
If you would like to get first-hand solutions to the energy crisis then you cannot miss booking your seat to the FASA Conference on the 26th October at the Balalaika Hotel, Sandton – book here