SOUTH AFRICA'S ENERGY CRISIS: HOW IT AFFECTS US
Government Ministers and Captains of Industry attended the Manufacturers Indaba at Emperors Palace this past week, discussing some of the challenges that face the commercial/industrial sector. One of the greatest hindrances to economic growth remains the crippling effects of Annual Tariff Increases of energy consumption. Eskom finds itself in nearly R500 Billion of debt and the only way to deal with this shortfall is to increase the price of electricity.
South Africans pay some of the highest electricity bills in the world and increases have been as much as 400% over the past decade. The National Energy Regulator (NERSA) has kept the parastatal in check for the past few years, but Eskom have recently suggested that they require a 20% Annual Tariff Increase to remain functional as a business.
Not only will this affect large factories, but also individual households who are already struggling with inflation and the rising cost of living. More and more South Africans are turning to Solar Energy as a solution, by integrating the energy output of the panels into their existing Eskom supply. Whilst many frustrated South Africans are insisting on living completely off the grid, the reality is that the alternative (battery storage) is not economically viable just yet. They may be in five years’ time, but for now renewable energy is best used to assist your energy demand, not to completely disregard Eskom.
Next week we will look at how you can use solar energy to assist other South Africans with their energy demands.