WHAT IS GREEN POWER?

Electricity generated from renewable resources is commonly called Green Power. The generation of Green Power reduces the amount of carbon emissions associated with traditional electricity generation which has a host of benefits, environmentally as well as financially.

WHAT ARE THE BENEFITS OF BUYING POWER FROM POWERX?

In addition to purchasing Green Power and reducing carbon emissions, depending on the tariff of the facility / premises, the buyer of power will receive a discount on the power supplied.

WHAT ARE RENEWABLE ENERGY CERTIFICATES (“RECs”)?

For each 1000 kWh (1MWh) of power generated a number is generated by an independent auditing body called the Issuing Body (“IB”) and recorded on a national database in the form of a certificate. These certificates “RECs” are then sold separately to the and traded in the voluntary market in South Africa or internationally. The Issuing Body in South Africa is zaRECs.

SHOULD I WISH TO PURCHASE POWER, WHAT ARE THE CAPITAL COSTS?

There are no capital costs incurred in the purchase of power from POWERX. Assuming a meter is required, POWERX will cover the cost of procurement and installation of such meter, subject to certain qualifying criteria. There are no other costs associated with purchasing power from POWERX.

WHAT DO I DO IF MY METER DOES NOT REGISTER THE SAME KWH READING AS POWERX’S SYSTEM?

Meters very seldom read identically, the Embedded Generation Standard states that the meters must be Class 0.5, which means they have a variance of +-0.5% (for a max of 1%, if one meter is reading high and the other is reading low)

HOW LONG IS POWERX’S TRADING LICENCE VALID FOR?

The licence current expiry is 2042. However, the validity of the licence extends to cover its longest Power Purchase Agreement

DOES POWERX ENTER INTO PARTNERSHIPS WITH GENERATORS?

POWERX does not enter into any partnerships with Generators. Generators are strictly prohibited from claiming to be in partnership with POWERX. POWERX is merely the purchaser of power from the Generator and beyond these commercial parameters no further relationship exists.

WHAT HAPPENS IF POWERX IS UNABLE TO SUPPLY ME WITH POWER?

Eskom or the relevant municipality always remain the supplier of last resort, so should POWERX be unable to supply power for whatever reason, the consumer will continue to receive power as normal from the grid with no interruption. However, in the event that the relevant transmission or distribution lines experience technical faults or are shut down due to load shedding, POWERX will not be able to supply power.

HOW CAN I BE CERTAIN THAT POWERX IS PROVIDING ME WITH GREEN/CLEAN POWER?

All Green Power sold by POWERX is verifiable via the associated RECs. Each Generator is registered with zeRECs and is independently verified. The relevant RECs allow for ease of verification of generation of the power, the origin of the power generated, and the resource utilized to generate the power

WHAT IS THE ENERGY RATE PAID FOR POWER PER KWH?

In addition to purchasing Green Power and reducing carbon emissions, depending on the tariff of the facility / premises, the buyer of power will receive a discount on the power supplied.

DOES POWERX OFFER FUNDING AND/OR GUARANTEES OR SECURITY FOR PROJECTS?

POWERX is purely a trader and does not finance projects at all. Given the extensive financial security required to underpin investment in projects and the vast number of projects on POWERX’s books, POWERX’s balance sheet is not capable of supporting the requisite security. Instead various other options are currently being explored such as a clearing house with a “waterfall” type structure. Private equity partners that understand the sector are preferred instead of the traditional debt funding model which is not feasible at this stage.

DOES POWERX PURCHASE EXCESS POWER?

POWERX generally does not purchase excess power in municipal areas and prefers buying all the of the power generated, but is willing to look at purchasing excess from facilities on an ESKOM connection based on a Time of Use structure in accordance with WEPS less losses.

DOES POWERX PAY AN INTRODUCTORY FEE FOR PROJECTS?

POWERX does not pay any introductory fees on projects.

IS A GENERATOR LIABLE FOR ANY PPA FEES?

es, all generators are liable for a PPA fee of R30 000/MW. R10 000/MW on signature of PPA & R20 000/MW on commercial operations date will be applicable for projects over 1MW. R5 000 on signature and R5 000 on commercial operations date will be applicable for microscale projects under 1MW.

WHAT IS THE PROCESS FOR A GENERATOR TO OBTAIN A PPA FROM POWERX?

Upon approval of the online application, POWERX will issue the generator with a Term sheet. Once all the commercial terms are negotiated and agreed upon by all parties, POWERX will issue the generator with a Power Purchase Agreement. The PPA takes effect once all the suspensive conditions have been fulfilled or waived.

GENERATOR METERING AND BILLING?

The generator procures the supply and installation of the prescribed meter/s. All meters must have an IST (APN) sim card, 4 quadrant and web enabled.  Maintenance of the meters is the generator’s responsibility. The generator as well as POWERX, will have web portal access to the meter data.