Municipal Nano-Grid
Deployment Programme
A strategic initiative to deploy 3kWp Solar PV and 10kWh Battery Energy Storage Systems for Dr. Beyers Naudé Local Municipality, achieving NERSA-compliant sustainable electricity trading status.
Role of UtCS as Appointed Entity
Utility Consulting Solutions - Strategic Implementation Partner
UtCS has been appointed as the strategic implementation partner to assist Dr. Beyers Naudé Local Municipality in achieving NERSA-defined Sustainable Electricity Trading Status. This status requires municipalities to achieve an Electricity Price Margin (EPM) of minimum 60% after settling Bulk Supply Costs.
Strategic Objective
Deploy innovatively and strategically placed Nano-Grids to impose maximum cost avoidance, enabling Dr. Beyers Naudé Local Municipality to achieve the 60% EPM benchmark.
Financial Impact
Through TOU arbitrage and maximum demand reduction, achieve >40% total cost avoidance, directly improving the municipality's financial sustainability.
NERSA Financial Indicators - Sustainability Benchmarks
Key performance indicators for sustainable electricity distribution
| Performance Indicator | Benchmark | Acceptable Range |
|---|---|---|
| Electricity Price Margin (%) | 60% | 58% - 62% |
| Bulk Purchase Cost / Total Expenditure (%) | 75% | 58% - 78% |
| Energy Losses (%) | 10% | 5% - 12% |
| Revenue Collection Rate (%) | 95% | 95% |
| Repairs & Maintenance (% of revenue) | 6% | 6% - 15% |
| Net Surplus Margin (%) | 15% | 10% - 20% |
Source: NERSA Guidelines - Municipalities that operate within these benchmarks are expected to run a sustainable and efficient electricity business.
Municipal Funding Overview
Detailed breakdown of funding requirements and projected cost avoidance for Dr. Beyers Naudé Local Municipality
| Municipality | Households | Funding Required | Annual Eskom Cost | Cost Avoided | Reduction |
|---|---|---|---|---|---|
| Dr Beyers Naudé | 12,644 | R910.37M | R152.13M | R88.24M | 42% |
| Total Programme | 12,644 | R910.37M | R152.13M | R88.24M | 42% |
Solar PV System
Battery Energy Storage
Total Investment Opportunity
Combined Nano-Grid deployment cost for Dr. Beyers Naudé Local Municipality