Mechanical Technology June 2015

⎪ Sustainable energy and energy management ⎪

Jasco’s grid-tied solar PV project at its own premises, built to proof the concept to new customers. Renewable energy: a business case

MechTech talks to Dave Smith (right), the newly appointed managing director of Jasco Renewable Energy. With qualifications in electrical engineering and business and more than 20 years of experience in utility power, network development, transmission and telecoms, Smith brings an ability to balance technology and financial sense to this challenging emerging sector.

“ T he power supply situation in South Africa is an issue that needs to be addressed as a matter of urgency. The cost of unserved energy, in other words the indirect cost of not supplying power to those who need it, can and will have a significant impact on growth and the economy. There are also widespread con- cerns relating to on-going electricity price increases. The reality is that we need to look at alternative sources to sustain the supply of electricity. Independent studies have shown that renewable energy has the potential to achieve just this, and I am excited to be a part of growing this emerg- ing market in South Africa,” begins Smith. With a degree in electrical engineer- ing from the University of Stellenbosch,

as well as a Master’s degree in business leadership from the University of South Africa’s Graduate School of Business Leadership, Smith has nearly 20 years of experience with Eskom – including electrification, system planning, network development and transmission on the engineering side – before moving into telecommunications management and development. In 2008 Smith joined Broadband Infraco as chief executive officer and saw the company through to commercial launch, after which he worked as an independent business consultant before joining the Jasco team. “The initial focus of Jasco Renewable Energy will be on solar solutions at a commercial level, including rooftop, car- port and ground-based solutions. Solar

represents a significant investment for businesses, and costs are reducing and payback periods are down to within six to eight years. We believe the technol- ogy is now economically viable for South African businesses. Jasco Renewable Energy is targeting systems in the 100 kW to 1.0 MW range, commercial entities such as shopping malls, hospitals, offices and property groups with rental portfolios. “But the upper end of this offering is only being limited by licensing issues. Currently, any system above 1.0 MW requires an independent power producer (IPP) license, which involves another level of complexity,” he reveals. “Jasco has a long standing energy management and optimisation skills ca- pability and, at the starting point of our renewable energy offering we go into a clients premises to monitor their energy usage. Initially, we give advice on energy efficiency interventions, such as efficient lighting and heating. There is no sense in installing a PV solar system in an inefficient environment,” Smith advises. The first stage of developing a PV

A comparison of grid and solar PV energy prices for different Eskom price escalation scenarios. Smith argues that the compound impact of utility price increases over the next 10 to 20 years makes grid-tied solar PV solutions “very attractive in the long term”.

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Mechanical Technology — June 2015