Utility Consulting Solutions

Dr Beyers Naudé

SSEG Report

28 Apr 2026

Small-Scale Embedded Generation Program

Municipal Energy Cost Avoidance

Impact Report & Strategic Roadmap

Transforming Dr Beyers Naudé's electricity financial sustainability through distributed solar PV and battery storage deployment.

The Challenge

Unsustainable Bulk Electricity Costs

Annual Eskom Bill

R152.1 million

Electricity Income Collected

R163.0 million

Critical Issue

93% of income spent on bulk electricity

NERSA benchmark: Maximum 40% on bulk supply

Current vs Target Spending

Current State

93%

on Bulk Supply

Target State

40%

NERSA Benchmark

NERSA Financial Benchmarks for Sustainable Electricity Distribution
Performance IndicatorBenchmarkAcceptable Range
Electricity Price Margin60%58 - 62%
Bulk Purchase Cost / Total Expenditure75%58 - 78%
Energy Losses10%5 - 12%
Revenue Collection Rate95%95 - 95%
Repairs & Maintenance (% of revenue)6%6 - 15%
Net Surplus Margin15%10 - 20%

Source: NERSA - Municipalities operating within these benchmarks are expected to run a sustainable and efficient electricity business.

Our SSEG Journey at a Glance

Where We Are

2.481 MWp

PV deployed (1.8% of target)

R2.4m

saved in 7 months

Where We Want to Be

60% Reduction

R152m to ~R60m/year

Combined PV + BESS

Target deployment

Solar PV Target

137.61 MWp

Cost Reduction40%

~R60.8m annual savings

BESS Expansion

73 MWh

Additional Reduction+20%

~R30.4m additional savings

Combined Impact: PV (40%) + BESS (20%)

= 60% Total Reduction

From R152m to ~R60m annually

Target: Q2 2027 (8-12 months)

Phase 1: +1 MWp by Jul 2026 | Phase 2: Scale to 7,000 rooftops | Phase 3: Large-scale plants post-EIA

The Solution

Small-Scale Embedded Generation (SSEG) Program

The ONLY viable solution: Add cheaper electricity to the grid via SSEG

By deploying distributed solar PV and battery storage across the municipality, Dr Beyers Naudé can reduce dependency on expensive Eskom bulk supply and achieve financial sustainability.

Progress: Solar PV

SSEG PV Impact (Jul'25 - Jan'26)

Three categories of PV SSEG connected to the grid are already delivering measurable results.

R2.4m

Total Cost Avoided

2.12M

kWh Injected

2.481

MWp Deployed

1.6%

of Eskom Spend

Cost Avoidance by SSEG Category
Monthly Cost Avoidance Trend
SSEG Category Performance Details
CategorykWh InjectedCost Avoided% of Total
Category 1: Net Generator
533,757.73R514,549.2721.1%
Category 2: Pure Generator (PV)
825,426.47R595,878.7524.4%
Category 3: Municipal Owned (PV)
765,178.51R1.3m54.5%
TOTAL2,124,362.71R2.4m100%

Important Context

The current 2.481 MWp represents only 1.8% of the targeted 137.61 MWp. This slower initial deployment was intentional to ensure the RIGHT investment partnerships were secured. The foundation is now in place for accelerated growth.

Progress: Battery Storage

SSEG BESS (Battery Energy Storage Systems)

Strategic deployment of battery storage to maximize TOU (Time-of-Use) cost avoidance.

4 MWh

Currently Connected

R1.8m

Yearly Potential Savings

R535,262.21

Phase 1 BESS Cost to Offset

BESS Expansion Requirements

Deploy Distributed BESS

10 kWh BESS at 7,300 households = 73 MWh total

Deploy Additional PV

16 MWp to offset Phase 1 BESS cost of R535,262.21

The Roadmap

Path to 60% Cost Reduction

From R152m to R60m annual Eskom spend over 8-12 months.

PV Deployment Progress2.481 / 137.61 MWp

1.8% of target deployed

Current State

Jan 2026

PV Capacity

2.481 MWp

BESS

4 MWh

Annual Savings

R4.2m

% Reduction

2.7%

Phase 1 Expansion

Jul 2026

PV Capacity

3.481 MWp

BESS

4 MWh

Annual Savings

R4.0m

% Reduction

2.6%

Distributed Rollout

Q1 2027

PV Capacity

50 MWp

BESS

30 MWh

Annual Savings

R25.0m

% Reduction

16.4%

Full Deployment

Q4 2027

PV Capacity

137.61 MWp

BESS

73 MWh

Annual Savings

R91.0m

% Reduction

60%

Primary Constraint: Environmental Impact Assessment (EIA)

The deployment timeline is primarily constrained by the mandatory Environmental Impact Assessment process for larger installations. This is a regulatory requirement that ensures sustainable and responsible development.

The Outcome

A Significant Milestone for Financial Sustainability

60%

Reduction in Annual Eskom Costs

From R152m to ~R60m per year

Annual Savings

~R92 million

Available for other municipal services

Key Impact

Municipality can finally afford to settle ALL bulk costs + support other essential services

This milestone will eradicate the inherited inability to settle the full Eskom bill
caused by distribution tariffs that are not cost-reflective, where every Eskom increase further reduces the municipality's ability to pay.