Electricity generated from renewable resources is commonly called Green Power. The generation of Green Power reduces the amount of carbon emissions associated with traditional electricity generation which has a host of benefits, environmentally as well as financially.
For each 1000 kWh (1MWh) of power generated a number is generated by an independent auditing body called the Issuing Body (“IB”) and recorded on a national database in the form of a certificate. These certificates “TRECS” are then sold separately to the physical energy and traded in the voluntary market in South Africa or internationally.
Meters very seldom read identically, the Embedded Generation Standard states that the meters must be Class 0.5, which means they have a variance of +-0.5% (for a max of 1%, if one meter is reading high and the other is reading low)
The license is valid until 2029. POWERX, however, fully expects the license to be renewed again. That being said, a PPA that PowerX signs in 2029 for 20 years will remain valid for that term.
Our customers are never cut off from the Eskom/Municipal supply. If the Wind does not blow, the Sun does not shine or the rivers run dry, and we cannot provide you with green and/or clean power you will still receive brown power form Eskom.
POWERX is regulated and audited by NERSA and as such any unauthorized activity will be picked up very quickly. It is very important to POWERX to retain the integrity of our operations and as such each IPP is registered with zeRECS and is independently verified. For every 1,000 kWh of power that is produced a Renewable Energy Certificate (“REC”) is registered which allows anyone to track the generation.
POWERX will pay the Municipality a Use of System fee per kWh traded equal to the Net Profit the Municipality is currently making per kWh (ordinarily the actual fee is in fact higher than the Municipalities’ current profit per kWh).
By signing a Use of System Agreement more IPPs will look to develop projects in the Municipal area and as such direct investment, job creation and further developments will be unlocked due to the increase in power available to the region. The more power that is produced within the Municipality the lower the Notified Maximum Demand charges that Eskom will levy on the Municipality.