- a more environmental friendly future
- creation of new job opportunities in the green sector
- attraction of huge investments into the metro
- the opportunity for citizens to have an alternative to Eskom
- create for many citizens a cheaper way of purchasing electricity
- Installations will initially be limited to rooftop PV and structures which fulfil a second purpose besides energy production. Freestanding installations will not be allowed.
- Participating customers will have to be connected to the NMBM electrical network.
- The proposed program is based on NERSA’s approval in terms of the connection of embedded generators within municipal boundaries provided that such generation systems are 1MW or smaller. The contract period with the participating customer per installation is 20 years.
- The average installed capacity of all participating customers (from each investor) must be =5kW per participating customer. For example investor x signed up 3 prosumer. No.1 got a 2KW system, no.2 a 3KW system and no.3 a 10KW system. In average the investor got a 5KW system per prosumer installed.
- The amount of produced kWh/a from the PV system per participating customer must be half of the yearly electricity consumption of this participating customer, whereby it is allowed to install the necessary capacity at a different participating customer to meet this requirement.
- The amount of produced kWh/a from the PV system per participating customer must not exceed twice the yearly electricity consumption of this participating customer. The investor is allowed to wheel the electricity between the participating customers, whereby the produced electricity shouldn’t exceed the overall electricity consumption of all participating customers, since the municipality will not buy excess energy.
- Third party arrangements with licensed power traders will be allowed, to sell excess energy.
- Lost yield due to grid faults or maintenance will not be compensated by the municipality.
- The NMBM will not be signing a Power Purchase Agreement (PPA) with the IPP, but will only facilitate the flow of money between the IPP and the participating customer (i.e. the NMBM will invoice, and collect the money from the participating customers on behalf of the IPP). The payment to the investor will be on the usual payment conditions of the municipality (which is normally within 30 days).
- It will be the responsibility of the IPP to enter into the necessary agreements with – the participating customer.
