Unsustainable Bulk Electricity Costs
Annual Eskom Bill
R152.1 million
Electricity Income Collected
R163.0 million
Critical Issue
93% of income spent on bulk electricity
NERSA benchmark: Maximum 40% on bulk supply
Current State
93%
on Bulk Supply
Target State
40%
NERSA Benchmark
| 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 - 95% |
| Repairs & Maintenance (% of revenue) | 6% | 6 - 15% |
| Net Surplus Margin | 15% | 10 - 20% |
Source: NERSA - Municipalities operating within these benchmarks are expected to run a sustainable and efficient electricity business.
Our SSEG Journey at a Glance
Where We Are
2.481 MWp
PV deployed (1.8% of target)
R2.4m
saved in 7 months
8-12 month
journey
Where We Want to Be
60% Reduction
R152m to ~R60m/year
Combined PV + BESS
Target deployment
Solar PV Target
137.61 MWp
~R60.8m annual savings
BESS Expansion
73 MWh
~R30.4m additional savings
Combined Impact: PV (40%) + BESS (20%)
= 60% Total Reduction
From R152m to ~R60m annually
Target: Q2 2027 (8-12 months)
Phase 1: +1 MWp by Jul 2026 | Phase 2: Scale to 7,000 rooftops | Phase 3: Large-scale plants post-EIA
Small-Scale Embedded Generation (SSEG) Program
The ONLY viable solution: Add cheaper electricity to the grid via SSEG
By deploying distributed solar PV and battery storage across the municipality, Dr Beyers Naudé can reduce dependency on expensive Eskom bulk supply and achieve financial sustainability.
SSEG PV Impact (Jul'25 - Jan'26)
Three categories of PV SSEG connected to the grid are already delivering measurable results.
R2.4m
Total Cost Avoided
2.12M
kWh Injected
2.481
MWp Deployed
1.6%
of Eskom Spend
| Category | kWh Injected | Cost Avoided | % of Total |
|---|---|---|---|
| Category 1: Net Generator | 533,757.73 | R514,549.27 | 21.1% |
| Category 2: Pure Generator (PV) | 825,426.47 | R595,878.75 | 24.4% |
| Category 3: Municipal Owned (PV) | 765,178.51 | R1.3m | 54.5% |
| TOTAL | 2,124,362.71 | R2.4m | 100% |
Important Context
The current 2.481 MWp represents only 1.8% of the targeted 137.61 MWp. This slower initial deployment was intentional to ensure the RIGHT investment partnerships were secured. The foundation is now in place for accelerated growth.
SSEG BESS (Battery Energy Storage Systems)
Strategic deployment of battery storage to maximize TOU (Time-of-Use) cost avoidance.
4 MWh
Currently Connected
R1.8m
Yearly Potential Savings
R535,262.21
Phase 1 BESS Cost to Offset
Deploy Distributed BESS
10 kWh BESS at 7,300 households = 73 MWh total
Deploy Additional PV
16 MWp to offset Phase 1 BESS cost of R535,262.21
Path to 60% Cost Reduction
From R152m to R60m annual Eskom spend over 8-12 months.
1.8% of target deployed
Current State
Jan 2026
PV Capacity
2.481 MWp
BESS
4 MWh
Annual Savings
R4.2m
% Reduction
2.7%
Phase 1 Expansion
Jul 2026
PV Capacity
3.481 MWp
BESS
4 MWh
Annual Savings
R4.0m
% Reduction
2.6%
Distributed Rollout
Q1 2027
PV Capacity
50 MWp
BESS
30 MWh
Annual Savings
R25.0m
% Reduction
16.4%
Full Deployment
Q4 2027
PV Capacity
137.61 MWp
BESS
73 MWh
Annual Savings
R91.0m
% Reduction
60%
Primary Constraint: Environmental Impact Assessment (EIA)
The deployment timeline is primarily constrained by the mandatory Environmental Impact Assessment process for larger installations. This is a regulatory requirement that ensures sustainable and responsible development.
A Significant Milestone for Financial Sustainability
60%
Reduction in Annual Eskom Costs
From R152m to ~R60m per year
Annual Savings
~R92 million
Available for other municipal services
Key Impact
Municipality can finally afford to settle ALL bulk costs + support other essential services
This milestone will eradicate the inherited inability to settle the full Eskom bill
caused by distribution tariffs that are not cost-reflective, where every Eskom increase further reduces the municipality's ability to pay.