Alternative electricity generation : Safripol as a case study

Abstract

Electrical energy supply in South Africa, provided by ESKOM, has become more expensive with regular price increases in the past seven years. Increases on an annual basis have seen the Mega flex tariffs quadruple in the years from 2007 to 2014. ESKOM is the sole supplier of electricity to Safripol, a polymer producer of which the manufacturing facility is located in Sasolburg, South Africa. This study will provide contextual information on what impact the escalation in cost of this utility has on the financial returns of the business. Independent power generation within the boundaries of the manufacturing site has become essential in order to alleviate the impact of inflated electricity costs, by at least 10% of the current total demand from ESKOM. Primary research includes different types of alternative electricity generation techniques that will be able to deliver a practical solution to the business. The means of operation, required resources and cost to produce are set out to provide input into concrete models that are scaled to the potentials applicable to the production facility. Total alternative electricity generation added up to almost half of the current total site electricity demand from ESKOM. This finding was truly beyond the expectations of the case study and clearly set out how understated the potential to generate electricity is within the industrial sector.