A cost-benefit analysis of concentrator photovoltaic technology use in South Africa: A case study
The South African Government currently faces the dual problems of climate change mitigation and the rollout of electricity provision to rural, previously disadvantaged communities. This paper investigates the economic efficiency of the implementation of concentrator photovoltaic (CPV) technology in...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Cape Town
2017-10-01
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| Series: | Journal of Energy in Southern Africa |
| Subjects: | |
| Online Access: | https://journals.assaf.org.za/jesa/article/view/3140 |
| _version_ | 1811267746716975104 |
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| author | Mario du Preez Justin Beukes Ernest van Dyk |
| author_facet | Mario du Preez Justin Beukes Ernest van Dyk |
| author_sort | Mario du Preez |
| collection | DOAJ |
| description | The South African Government currently faces the dual problems of climate change mitigation and the rollout of electricity provision to rural, previously disadvantaged communities. This paper investigates the economic efficiency of the implementation of concentrator photovoltaic (CPV) technology in the Tyefu area in the Eastern Cape, South Africa, as a means of addressing these problems. Two cost-benefit analyses (CBA) are carried out in the study, namely a private CBA and a social CBA. The private CBA investigates the desirability of the CPV project from a private energy investor’s perspective, whilst the social CBA investigates the desirability of the CPV project from society’s perspective. The social CBA found that the project was socially viable and was, thus, an efficient allocation of government resources. The private CBA, on the other hand, found that investing in a CPV project was not financially viable for a private investor. With respect to the incentive scheme currently offered to private energy investors, it is recommended that the maximum bidding price of R2.85/kWh be increased. A sensitivity analysis of the bidding price showed that an increase of 300% is required to attract private investors into electricity generation projects. |
| first_indexed | 2024-04-12T21:09:36Z |
| format | Article |
| id | doaj.art-81412d39d21e4af08d085a647b097955 |
| institution | Directory Open Access Journal |
| issn | 1021-447X 2413-3051 |
| language | English |
| last_indexed | 2024-04-12T21:09:36Z |
| publishDate | 2017-10-01 |
| publisher | University of Cape Town |
| record_format | Article |
| series | Journal of Energy in Southern Africa |
| spelling | doaj.art-81412d39d21e4af08d085a647b0979552022-12-22T03:16:38ZengUniversity of Cape TownJournal of Energy in Southern Africa1021-447X2413-30512017-10-0124421110.17159/2413-3051/2013/v24i4a31403140A cost-benefit analysis of concentrator photovoltaic technology use in South Africa: A case studyMario du Preez0Justin BeukesErnest van DykUniversity of Cape TownThe South African Government currently faces the dual problems of climate change mitigation and the rollout of electricity provision to rural, previously disadvantaged communities. This paper investigates the economic efficiency of the implementation of concentrator photovoltaic (CPV) technology in the Tyefu area in the Eastern Cape, South Africa, as a means of addressing these problems. Two cost-benefit analyses (CBA) are carried out in the study, namely a private CBA and a social CBA. The private CBA investigates the desirability of the CPV project from a private energy investor’s perspective, whilst the social CBA investigates the desirability of the CPV project from society’s perspective. The social CBA found that the project was socially viable and was, thus, an efficient allocation of government resources. The private CBA, on the other hand, found that investing in a CPV project was not financially viable for a private investor. With respect to the incentive scheme currently offered to private energy investors, it is recommended that the maximum bidding price of R2.85/kWh be increased. A sensitivity analysis of the bidding price showed that an increase of 300% is required to attract private investors into electricity generation projects.https://journals.assaf.org.za/jesa/article/view/3140concentrator photovoltaic technologysocial discount rate |
| spellingShingle | Mario du Preez Justin Beukes Ernest van Dyk A cost-benefit analysis of concentrator photovoltaic technology use in South Africa: A case study Journal of Energy in Southern Africa concentrator photovoltaic technology social discount rate |
| title | A cost-benefit analysis of concentrator photovoltaic technology use in South Africa: A case study |
| title_full | A cost-benefit analysis of concentrator photovoltaic technology use in South Africa: A case study |
| title_fullStr | A cost-benefit analysis of concentrator photovoltaic technology use in South Africa: A case study |
| title_full_unstemmed | A cost-benefit analysis of concentrator photovoltaic technology use in South Africa: A case study |
| title_short | A cost-benefit analysis of concentrator photovoltaic technology use in South Africa: A case study |
| title_sort | cost benefit analysis of concentrator photovoltaic technology use in south africa a case study |
| topic | concentrator photovoltaic technology social discount rate |
| url | https://journals.assaf.org.za/jesa/article/view/3140 |
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