South African Business 2018 edition

OVERVIEW
Whereas national utility
Eskom’s supply of power was insufficient
for a booming South
African economy in 2008, the
global economic slowdown that
kicked in later that year meant
that by the time independent
producers were selling to the
grid (also controlled by Eskom),
electricity demand was much
reduced. Eskom itself had been
adding power to the grid and
improving the maintenance of
its existing fleet.
Eskom is investing heavily in
two new coal-fired power stations.
Medupi and Kusile power
stations will jointly generate
9 564MW. These factors resulted
in Eskom refusing to sign any more
power purchase agreements with
independent producers.
Although Eskom’s shareholder,
the Minister of Energy, said that
the REIPPPP was still government
policy, it was not until the third
quarter of 2017 that the process
was started again, but this time
with a limit imposed by the state
on how much could be charged
for energy in new contracts. Many
in the renewable energy sector
believe that the price cap of 77
cents per kilowatt-hour (kWh) will
deter many possible investors and
make small-scale renewable energy
projects (such as small-hydro)
impossible.
One of the consequences of
the policy uncertainty of 2016-
2017 was that DCD Group sold
its share in the Coega IDZ-based
DCD Wind Towers joint venture
for R1.
South Africa’s electricity comes
mainly from Eskom’s coal-fired
power stations. The Koeberg
WATERPROOFING PROMOTES ENERGY
EFFICIENCY
With energy efficiency being a vital part of all new building codes,
having a cool roof coating pays off in a number of ways. With the
surface and the interior of the building being cooler, air-conditioning
costs are reduced, the environment is better off, the building
is code compliant and incentives and tax breaks could come into
play. Roof coatings available from Topps make all of this possible.
A cool roof acts like a sunshade in the windshield of a car. The
white coating deflects the sun’s rays away from the building. An
industrial grade cool roof maintenance coating like Topps Seal®
brings the additional benefit of extending the life of the roof.
In Knoxville, Tennessee, a retail store recorded 24.5% energy
reduction after the application of Topps Seal®. Topps Seal® is
triple-certified, by Miami-Dade County (US), CRRC and Energy
Star. Energy Star-qualified products can reduce the amount of
air conditioning needed in buildings and can reduce peak demand
by 10%-15%. A cool roof reduces greenhouse gases and keeps the
building cooler inside by deflecting the sun’s rays.
Some government and local utilities offer incentives and tax
breaks for roofs that qualify as a “cool roof” along with tax
deductions for performing roof maintenance.
Topps Seal® won’t freeze and it won’t wash off, saving unwanted
expenses and mess.
Use of the world’s leading repair product, Topps Polyprene®, ensures
that what is sealed remains sealed. With roofing materials
expanding and contracting at different rates, stresses develop on
seams and the areas around penetrations – vents, signs, flashings,
pitch pockets, joints and rooftop equipment.
Heavily fibred Polyprene won’t crack when it gets cold. It stays pliable
permanently and stops leaks from recurring. It has been voted
the #1 repair compound among professional roofers. Creating a
reliable seal promotes building efficiency by keeping the building’s
heat within the envelope, reducing costs by avoiding heating loss.
The same is true for cooling systems. A long-lasting seal also
contributes to reducing maintenance costs.
77 SOUTH AFRICAN BUSINESS 2018