Presentation to the political leadership of the ACDP, African Christian Democratic Party, about how to enhance and run the electrical system in South Africa. Presentation on 14th June 2012. Note that my contact details have changed. My cell number is now +27 74 119 3246, and I don't have a landline anymore.

1. Cluster Electricity Savings
Sustainable and Cheap Electricity
A Financial Understanding of the costs and
benefits and possibilities of Renewable Energy
By David Lipschitz
My Power Station Technology
14th June 2012
Phone: 021 813 9895; 082 900 5903
david@mypowerstation.biz; skype: MyPowerStation
(c) My Power Station Technology cc 2012
Permission is given to copy parts of this presentation as long as the author is acknowledged 1

2. This Presentation
To Rev Meshoe MP, ACDP
Government’s
2003 White Paper on Renewable Energy
“Government should create an enabling environment through the
introduction of fiscal and financial support mechanisms within an appropriate
legal and regulatory framework, to allow renewable energy technologies to
compete with fossil-based technologies.”
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3. China’s 12th 5-year plan tabled in 2011
• “Has a striking change from the past”
• “From
– A focus on investment-driven, high energy and
low-cost manufacturing”
• “To
– Low-carbon industries, new energy, next
generation information technology and high-end
manufacturing
– China’s goal is to achieve 15% global share of
these industries, compared with 3% now (in 2011)”
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South Africa is still stuck here!
Note that the Chinese quote comes from
the NPC document! Page 69, NPC Plan 2020

4. The Miracle of Earth
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5. What’s electricity for anyway?
• It’s like ICT, except ICT depends on Electricity
• It’s an enabler to get the country moving
• Fast, cheap, reliable pathways from a to b will
get our economy going
– Communications (Infrastructure)
– Electricity, Population Growth, Resources
• David Murrin: “Breaking the Code of History”
• Can the “Energy Internet” finally happen?
– Thomas Friedman in “Hot, Flat and Crowded”
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6. Electricity Challenges
• For City Dwellers without electricity, NO:
– Water, Banking, Petrol, Transport, Food, Life
– Only 4 days of food in the supply chain
• Everything we do depends on electricity
– We need security of supply
– We need price certainty
• So, how do we:
– Create security of supply? Quickly?
– How do we start reducing prices? Quickly?
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7. Video
We Live in Exponential Times
• 5 minutes
• http://www.youtube.com/watch?v=lUMf7FW
GdCw
• This exponential growth depends on
exponential availability of inexpensive
electricity
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8. World Energy Growth Rates by Source
Percent Annual Average Growth
(c) My Power Station Technology 2012 13

9. Buying and Producing Electricity
Graph in Rand per kwh
(c) My Power Station Technology 2012
R0.57
R0.77
R0.95
R1.14
R1.32
R5.56
R3.89
R2.00
R1.56
R1.32
R0.00
R1.00
R2.00
R3.00
R4.00
R5.00
R6.00
2008 2009 2010 2011 2012
City of Cape Town - When do we get to "Grid Parity"?
ie when can we make our own electricity cheaper than we can buy it?
For Homeowners using 1,200kwh or more. Plus some other assumptions.
Green Line is production using Net Metering. The red line is buying.
kwh cost of buying kwh cost of manufacturing

10. Fix your price and save
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11. R2.3 trillion
R2,300,000,000,000
• Repayments
– At 10% over 20 years
– R23,000,000,000 per month
• R23 billion per month is what the people of South
Africa will be paying for their new electricity fleet if we
follow the old 20th Century technology path
– 50 million people; 7 million taxpayers
• R3,285 per taxpayer per month
– for capex repayments only
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12. Existing or New Money?
• New Large Scale Power Stations require
– New Money
• New Small Scale Power Stations use
– Existing Money
• Homeowner and SMME pays R1.32 per kWh
for buying electricity and for producing it!
• Net Metering is an enabler
– With a Wheeling (Reverse Feed) Tariff
– Without a Service Fee
• Buy electricity at R1.32 per kWh; Sell at R1.16 per kWh
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13. The Big Energy Myth
• From Dr Hermann Scheer’s Book “The Solar
Economy” pp 169 to 170
– “Once the fear of the small scale has been dispelled,
once RE has demonstrated that it can replace fossil
energy in its entirety, then the aura of the centralised
nuclear/fossil industry will quickly fade.
– Ordinary people are caught up in the myth of big
technology … We need an active and engaged society”
– Trevor Manuel & the National Planning Commission
calls for an active and engaged society
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14. Contacts
• David Lipschitz, My Power Station
– 021 813 9895; 082 900 5903
– david@mypowerstation.biz
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