The hidden cost of Utility Scale power

A Facebook Friend of mine Ranga Mberi posted this today.? I found the post hilarious but useful. Loosely translated "Electricity supply is much better but the cost is increasing so much that the tokens are not lasting". This prompted me to put together this post about the hidden costs of utility power.

The cost of electricity in Zimbabwe is relatively low, token prices go up periodically and in leaps and bounds. The latest increase in June was by 100%. The real cost in USD terms is still very low around USD0.03 per kwh?for consumer units. Businesses pay around USD0,09 to USD0.12 per kwh unit. Regionally tariffs range from USD0.06/kwh to USD0.15/kwh. Electricity access in Southern Africa is improving but over 600m people remain in the dark. The biggest consumer of electricity in Zimbabwe are mining companies that require around 2300MW to function.?

The hidden costs of utility electricity are often overlooked in Zimbabwe. The electricity grid in Zimbabwe is getting old and becoming inefficient, not forgetting the increasing cases of transformer oil theft. This means that a significant amount of energy is lost in transmission and distribution. This lost energy is a hidden cost that is paid for by consumers in the form of higher electricity bills. Although consumers do not pay for these costs directly, the biggest hidden cost that will haunt them for many years to come is the cost of subsidies if nothing is done to reduce reliance on the national grid. The Government of Zimbabwe, like many other Governments in the region, subsidizes the cost of electricity for some consumers, especially domestic consumers and farmers.?This means that these consumers pay less for electricity than they would otherwise, but the cost of the subsidy is ultimately paid for by taxpayers. These hidden costs can add up over time, and they can make it difficult for people to afford to use electricity in the long term.

This is where electricity consumers should step in. Once you install your solar system you reduce your reliance on grid power and reduce the pressure on the national grid. In fact you also save money as you pay less on your energy bills. In countries where solar is being installed on rooftops this is why rebates are given to those moving to solar. Governments in those countries are reliasing that its more sustainable to do this than to subsidise power forever. The more people take up solar the less we have to rely on centralised power, the less the tax burden in the future.?

There are a number of things that can be done to reduce the hidden costs of utility power in Zimbabwe. These include:

• Giving tax rebates and incentives to those installing 3kw solar systems and above
• Educating consumers about the hidden costs of utility power
• Encouraging the adoption of the net metering programme.
• Incentivising those who want to manufacture or assemble solar products in the country.

By taking some of these steps, Zimbabwe can reduce the hidden costs of utility power and make it more affordable for everyone.

Solar energy offers a quick way to reduce the burden on the taxpayer as a result of electricity subsidies. In recent years we have now come to rely on the the Kariba Dam as the main source of power and this doesn't work well for us as droughts are more frequent than before. The next biggest source of power is coal powered power stations which require the coal to wheeled from Hwange. This again is costly and not friendly to the environment. Sadly to make up for shortfalls in electricity many large consumers have turned to diesel powered generators. The country's demand for fuel has continued to rise putting pressure on foreign currency reserves and exchange rates.

These factors make it difficult for Zimbabwe to reduce the cost of electricity, even if it takes steps to reduce the hidden costs. However, by addressing these factors, the country can make progress towards making electricity more affordable for everyone. If you want to learn how you can go solar for your home or business contact Solarpro.co.zw today.?