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Effective URL: https://www.discoverygreen.co.za/portal/dgr/home
Submission: On May 03 via api from US — Scanned from DE
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* powerful products * wheeling explained * why discovery green * START * * * powerful products * wheeling explained * why discovery green * DISCOVERY GREEN Discovery's Renewable Energy Platform for business Discovery's Renewable Energy Platform for business MEET THE ENERGY GOALS OF YOUR BUSINESS Discovery Green makes it simple and affordable for businesses to run on renewable energy. By bringing together scale, the best expertise, actuarial modelling and sophisticated systems, our Renewable Energy Platform can help businesses meet their decarbonisation goals and provide savings and certainty to the cost of electricity. In doing so, we are supporting the development of private electricity generation in South Africa and lessening the impact of loadshedding over time. START WHETHER YOUR BUSINESS WANTS TO MAXIMISE SAVINGS FROM RENEWABLE ENERGY, OR MINIMISE BUSINESS EMISSIONS, WE HAVE THE PRODUCTS TO HELP YOU ACHIEVE THESE OBJECTIVES. TWO PRODUCTS. GREEN SAVER AND GREEN GUARANTEE We have developed two products, aimed at addressing the two potential needs of any business. The first, the Green Saver, finds the highest point on the Energy Frontier and maximises the financial savings and emission reductions for your business. The second, the Green Guarantee, allows your business to fully run on renewable energy and reduce your emissions. Previous Green Guarantee Provides businesses with the opportunity to move to 100% use of renewable energy to achieve the highest possible reduction in carbon emissions. Learn more START Green Saver Provides the maximum saving on the renewable energy procured by a business. This is done by optimising renewable energy generation and the renewable energy consumption of the business. Learn more START Green Guarantee Provides businesses with the opportunity to move to 100% use of renewable energy to achieve the highest possible reduction in carbon emissions. Learn more START Green Saver Provides the maximum saving on the renewable energy procured by a business. This is done by optimising renewable energy generation and the renewable energy consumption of the business. Learn more START Next * 1 * 2 Wheeling of energy. Explained Installing solar panels at your business premises will only take you so far in terms of meeting your green energy goals. Wheeling of energy is a process where renewable energy is generated at the most efficient locations in the country and "wheeled" to your business through the national grid. While it does not directly reduce the impact of loadshedding, it does allow you to get your business running on more affordable, renewable energy. Instead of having only one provider of electricity, you now have the option to choose who to buy your electricity from. WHY SHOULD COMPANIES WHEEL? Wheeling of renewable energy has a number of significant benefits to businesses: 1 SAVE ON ELECTRICITY COSTS AND LOCK-IN FUTURE PRICE SECURITY Advancements in renewable energy generation technologies have resulted in lower generation costs and certainty in the annual cost increases for businesses. 2 REDUCE SCOPE 2 EMISSIONS AND IMPROVE ESG RATINGS Scope 2 emissions from electricity consumption typically account for 80% of a non-industrial company's total greenhouse gas emissions (Scope 1 and 2). Wheeling of renewable energy provides an authentic and cost-effective mechanism to significantly reduce business emissions. 3 ACTIVELY CONTRIBUTE TO ENERGY SECURITY IN SOUTH AFRICA It is estimated that South Africa requires 60GW of renewable energy generation to be fully operational by 2030 just to maintain current levels of economic growth. Private renewable energy generation can help meet this demand. Learn more Discovery Green Renewable Energy Platform The Discovery Green Renewable Energy Platform brings together a wide variety of businesses and their consumption profiles at scale and connects with leading international and local renewable energy providers that have been successful in large scale private sector development and government programmes. By doing so, the platform has the benefit of diversification and economies of scale. The platform places the administrative management with our expert team, backed by Discovery's 30 years of experience in bringing innovation and actuarial expertise to market for positive change. Discovery's renewable energy products benefit from an actuarial layer which provides insights on the best renewable energy solutions for businesses. Actuarial expertise ensures certainty of coverage through a diverse range of energy providers, and clear cost savings by matching energy generation profiles in different locations with the energy use profile of a business. A technical layer ensures businesses have access to the best-in-class engineering, legal and financial expertise in the industry, enabling sophisticated due diligence and connection to the grid. The latest technology supports these pillars and provides the foundation for sophisticated systems that ensure ample operational capability, quick and efficient contracting and accuracy in energy use and cost savings. This combination and platform allow Discovery Green to offer business an expanded Energy Frontier - higher financial savings and a greater reduction in overall business emissions. Getting technical. Discovery Green Platform in action SCALE Not all renewable energy power plants are created equal. With Discovery Green, your business benefits from among the most economic and efficient sources of renewable energy in the country. PROTECTION Businesses face the risk of having to pay for renewable energy that is never used. Discovery Green offers businesses protection against the unnecessary costs associated with reductions in consumption. SMOOTHING A single business will always face the risk that its consumption profile is not similar to the profile of renewable energy generation. Discovery Green's actuarial optimisation allows it to extract the benefits from smoothing and eliminate wasted energy. Learn more Frequently asked questions When will I start receiving renewable energy from Discovery Green? Discovery Green is collaborating with Independent Power Producers to access energy from among the most efficient renewable energy power plant sites across the country. Power plant construction is a complex process that needs considerable funding. There are no renewable energy power plants currently in operation to which you can connect. Discovery Green has partnered with the industry's leading technical, engineering and legal expertise to offer a quick timeline for the supply of renewable energy. Discovery Green aims to start wheeling renewable energy by 2026. What if our business already has solar on site? For the average business, it is expensive to have on site solar energy to make a material difference to your energy use. You can continue to draw energy from your solar solution. Discovery Green will cover the balance of your energy requirements and replace it with renewable energy through wheeling. However, Discovery Green will only replace the grid tied electricity you use. Which of my sites can receive renewable energy? Wheeling of renewable energy is a well established practice globally, but it is still in its infancy in South Africa. Currently, national regulations allow for the wheeling of energy exclusively to high-voltage Eskom-connected clients and a select number of businesses located within certain municipal networks. Discovery Green will wheel renewable energy to your eligible sites under Eskom's traditional wheeling framework currently in use. There has been a growing need for generation capacity and a rapid adoption of renewable energy. This has led to the imminent release of new power wheeling frameworks to support the established Eskom process that will allow wheeling of renewable energy to almost all electricity consumers in South Africa. Discovery Green will be able to wheel renewable energy to your qualifying municipality connected sites as soon as these frameworks are implemented. Why does wheeling of renewable energy not prevent my business from being affected by load shedding? Wheeling of energy does not provide complete protection from load shedding in the short term. However, generating more energy in the form of renewable energy will provide greater stability to energy generation in South Africa and lower the impact of load shedding over time. When you enter into a Renewable Energy Supply Agreement (RESA) with Discovery Green, there are no physical changes to the infrastructure supplying you with power. The same transmission and distribution networks that supply your business with Eskom-generated electricity are used to supply you with energy from renewable energy sources. When Eskom implements load shedding, power supply is interrupted completely, including the transmission of renewable energy. What is the difference between a kilowatt (KW) and a kilowatt-hour (kWh)? A kilowatt is a unit for measuring the rate of electricity flow at a given moment in time. Kilowatt-hours are used to measure the volume or quantity of electricity consumed over a period of time. One kilowatt-hour is the amount of electricity that is consumed from a supply of one kilowatt over the course of an hour. One megawatt is equivalent to 1000 kilowatts; one megawatt-hour is equivalent to 1000 kilowatt-hours. The two concepts can be explained using the analogy of water flowing out of a tap. The 'kilowatt' would be the rate at which the water flows from the tap. Opening and closing the tap would either increase or reduce the number of 'kilowatts'. If one were to let the water flow out of the tap for an hour, the 'kilowatt-hour' would be the total amount of water that flowed from the tap during that hour. If one were to increase the rate at which the water flows from the tap, thereby increasing the number of 'kilowatts', more water would be collected after the hour has passed i.e. more 'kilowatt-hours'. The same volume of water ('kilowatt-hours') could be collected if, instead of increasing the rate at which the water flows from the tap ('kilowatts'), the tap was left open for a longer period of time. How is my energy consumption tracked? Your business must have an approved electricity meter. This meter tracks electricity usage regularly to facilitate time-of-use billing. Discovery Green integrates with these meters to retrieve details of your electricity use. Time-of-use is a classification to account for the hour of the day, the day of the month and the season of the year when a kilowatt hour of electricity is produced and used. A 24-hour period is divided into three time-of-use periods: Peak, Standard and Off-peak. Peak periods refer to hours of the day when the demand on the national grid is at its highest, usually in the morning and evening. Eskom charges higher tariffs during Peak hours to encourage lower use. Time-of-use tariffs are higher during the winter months of June, July and August compared to the remaining months of the year. To have a kilowatt hour of electricity you've used successfully credited against a kilowatt hour of electricity produced, both must be produced and used in the same time of use period in a calendar month. For example, a kilowatt hour of electricity supplied by Eskom that is used during Peak times in January can only be offset with a kilowatt hour of renewable electricity if the renewable electricity is produced during Peak times in January. This means a kilowatt hour of renewable electricity produced during Off peak times cannot be credited against a kilowatt hour of electricity consumed during Peak times, or against a kilowatt-hour consumed during Off-peak times in another month. Time of use tracking enables Discovery Green to accurately measure and then reconcile the renewable electricity produced to what is consumed, which results in a saving to your business. This saving shows differently depending on the wheeling framework that is in place where your business operates. Under traditional wheeling of power, the saving reflects as a credit on your Eskom bill. How will renewable energy wheeling reduce my business' emissions? Wheeling of renewable energy will reduce your business' scope 2 emissions. For most non-industrial businesses, scope 2 emissions account for most greenhouse gas emissions. Wheeling of renewable energy is often the most effective way to achieve carbon neutrality. A business' greenhouse gas emissions can be divided into 3 categories: scope 1, scope 2 and scope 3 emissions. Scope 1 emissions occur because of activities that are directly under the business' control. For example, fuel burned by company owned vehicles. Scope 2 emissions occur from the direct production of energy that is used by the business. Scope 2 emissions are generated off site but are a result of the business' energy use, for example, heating and cooling. Typically, scope 2 emissions of a non industrial company account for 80% of its total greenhouse gas emissions. Scope 2 emissions are reduced through wheeling of renewable energy. Scope 3 emissions include all other indirect greenhouse gas emissions and occur through a business' activities that are not included in scope 1 or scope 2. These emissions are often the most challenging to measure. It includes the entire value chain of the business, including suppliers, customers and other stakeholders. For example, employee commutes. Why should my business maximise renewable energy coverage now? There is a financial benefit to maximising your coverage of renewable energy now as opposed to filling up your demand in incremental steps. Delays in maximising your renewable energy coverage means your business will do without the potential savings available from wheeling. When choosing a low renewable energy coverage, your renewable energy supplier may wish to wheel power to you mainly during Off-peak periods when electricity is less expensive. Renewable energy prices may appear low to reflect this saving for the energy provider. However, you may be setting yourself up to pay higher tariffs for renewable energy in future when you increase your coverage level to begin offsetting your consumption of electricity supplied by Eskom during Peak and Standard periods. There are also a limited number of power plant sites available with the ability to connect to the national grid. The unpredictability of future grid availability may lead to uncertainty in future renewable energy prices. With renewable energy through Discovery Green, the saving and pricing structure provides certainty of cost and supply. Download full FAQ document GREEN GUARANTEE RUN ON 100% RENEWABLE ENERGY The platform aims to provide you with 100% of your electricity needs each month. Should your electricity consumption profile change, the platform can provide up to 110% of your expected consumption but will provide a minimum coverage of 90% . DISCOVERY GREEN PLATFORM BENEFITS Discovery Green has the ability to reallocate renewable energy between businesses on its platform. Should your consumption profile change and should there be excess renewable energy available on the platform, this energy could be offered to you to increase your coverage level above 110%. Similarly, in the case of reduced consumption, Discovery Green will use all reasonable endeavours to ensure that the risk of you paying for unused generation is minimal. Unused energy can be reallocated to other businesses on the platform wishing to increase their renewable energy coverage level. A COMPETITIVE PREMIUM FOR A SUBSTANTIAL EMISSION REDUCTION The Green Guarantee product charges a premium in your active energy charge per kilowatt-hour consumed, irrespective of your time of use or existing tariff structure. The premium flexes by contract duration, decreasing in size with an increasing duration. RENEWABLE ENERGY CASH BONUSES Discovery Green offers renewable energy cash bonuses on contract renewal. This cash bonus will become available on contracts that expire after a duration of between 5 and 10 years when businesses then choose to renew their agreements with Discovery Green for at least another 5 years. The cash bonus varies in accordance with the duration of the initial contract. MORE CERTAINTY, AND A LIKELY SAVING OVER TIME Over the past decade, active energy charges have become increasingly expensive for businesses, increasing at an annual rate of CPI + 5%. The active energy charges from Discovery Green will increase annually at CPI. While the Green Guarantee product comes at a premium, over time the lower expected annual increases will create a net saving to your business. 90% Minimum Coverage 100% Target Coverage 110% Maximum Coverage* *Potential to move above 110% ILLUSTRATIVE PRICES WHEREVER YOU ARE AND EVEN IF YOU MOVE Wheeling is live and currently available to high-voltage Eskom-connected clients and a select number of businesses located within certain municipal networks. With the expected introduction of new power wheeling frameworks to support the established renewable energy wheeling process from Eskom, Discovery Green aims to offer your business access to renewable energy from almost anywhere you may operate. Discovery Green will be ready to make use of these new frameworks as soon as they are implemented. We understand that businesses don't always remain in the same premises. Businesses may also need more renewable energy as they grow. Discovery Green can provide enough flexibility to ensure your business remains connected to renewable energy. GREEN SAVER RUN ON ±90% RENEWABLE ENERGY The platform aims to provide you with 90% of your electricity needs each year. Should there be more renewable power available, through the platform, we have the right to provide up to 100% of your electricity demand. Irrespective, the platform should serve at least 70% of your demand. DISCOVERY GREEN PLATFORM BENEFITS Discovery Green has the ability to reallocate renewable energy between businesses on its platform. Should there be excess renewable energy available on the platform, this energy could be offered to you to increase your renewable energy coverage level above 100%. Similarly, in the case of reduced consumption, Discovery Green will use all reasonable endeavours to ensure that the risk of you paying for unused generation is minimal. Unused energy can be reallocated to other businesses on the platform wishing to increase their renewable energy coverage level. A SAVING OVER YOUR CURRENT COST OF ELECTRICITY Instead of a blended tariff that is based on your electricity consumption according to your time of use, and on the renewable energy generation profile, Discovery Green makes savings for businesses transparent and clear. The Green Saver product provides a flat discount in your active energy charge per kilowatt-hour consumed, irrespective of your time of use or existing tariff structure. The discount flexes by contract duration, increasing in size with an increasing duration. RENEWABLE ENERGY CASH BONUSES In addition to the per kilowatt-hour discount to your active energy charges, Discovery Green offers renewable energy cash bonuses on contract renewal. This cash bonus will become available on contracts that expire after a duration of between 5 and 10 years when businesses then choose to renew their agreements with Discovery Green for at least another 5 years. The cash bonus varies in accordance with the duration of the initial contract. MORE CERTAINTY IN YOUR ANNUAL COST OF ELECTRICITY Over the past decade, active energy charges have become increasingly expensive for businesses -increasing at an annual rate of CPI + 5%. The active energy charges from Discovery Green will increase annually at CPI. This is likely to result in an increasing savings wedge over existing providers over time. 70% Minimum Coverage 90% Target Coverage 100% Maximum Coverage* *Potential to move to 100% of actual consumption ILLUSTRATIVE PRICES WHEREVER YOU ARE AND EVEN IF YOU MOVE Wheeling is live and currently available to high-voltage Eskom-connected clients and a select number of businesses located within certain municipal networks. With the expected introduction of new power wheeling frameworks to support the established renewable energy wheeling process from Eskom, Discovery Green aims to offer your business access to renewable energy from almost anywhere you may operate. Discovery Green will be ready to make use of these new frameworks as soon as they are implemented. We understand that businesses don't always remain in the same premises. Businesses may also need more renewable energy as they grow. Discovery Green can provide enough flexibility to ensure your business remains connected to renewable energy. MAKING THE MOST OUT OF WHEELING Every business consumes electricity differently, both in terms of the amount of consumption (MWh or kWh) and time of consumption (peak, off-peak or standard). For the majority of businesses, a renewable power plant will generate too much electricity during certain times and not enough during others - this creates a mismatch between the generation and consumption of renewable energy that reduces the affordability and efficiency. A consequence of this is having to pay for renewable energy that you are not consuming, or your business not consuming enough and thereby missing out on potential savings and emission reductions. There is a fine balance here that requires diversification, scale and sophisticated modelling. Solar plants offer an intense supply of renewable power, but limited to daylight hours. Wind, however, offers a more consistent supply over a 24-hour period but at less intensity. Every business consumes electricity differently and it varies over time. FINDING THE RIGHT AMOUNT OF ENERGY TO WHEEL Unlike your current consumption of electricity where you pay for what you use, renewable energy is, in most cases, ordered and paid for regardless of how much your business consumes. This is because a new renewable energy generation facility has to be built and paid for over time. The more renewable energy you order, the greater the risk of paying for electricity that you don't consume. This means less savings on each additional MWh of wheeled energy and, eventually, that any additional renewable energy you order will be at a cost over your current bill. This leads to what we like to call, the Energy Frontier. A business should strive to find the point where savings and emissions reduction is maximised, the point at the top of the Energy Frontier curve. In turn, a renewable energy provider should strive to get the best Energy Frontier for its clients. THINKING OF DELAYING, OR STARTING SMALL? DON'T. While starting with a small order of renewable energy (as a percentage of your total consumption, or coverage level) might be considered safe, this can create a number of problems. OPPORTUNITY COST While the cost of renewable energy generation has been decreasing, foregoing present-day savings is likely to prove more costly in the long run. In simple terms, for every five years of delay, the price of renewable energy has to drop by 19% for a delay to make economic sense. GRID AND RESOURCE AVAILABILITY Independent power producers are finding it increasingly expensive and complicated to connect their renewable power plants to the national grid. Furthermore, locations with the most appealing natural resource availability are in high demand and are being reserved first. AVAILABILITY OF CREDIBLE RENEWABLE ENERGY GENERATORS The number of renewable energy providers in South Africa has increased exponentially over the past few years, as updated regulations for the private market have come into play. While this is good for competition, the complexity of a sizeable renewable energy project requires considerable due diligence and scrutiny. A select number of independent power producers have a successful track record in South Africa and internationally-businesses have to consider the cost of due diligence and the risk of underperformance of the plant or a delay in its construction. SCALE There are significant fixed costs associated with the construction of a renewable power plant, such as the costs of having to connect to the national grid. This means that the cost of generating a single kilowatt is higher for smaller plants. Discovery Green's Renewable Energy Platform brings together a wide range of businesses to gain access to the largest renewable power plants. Your business benefits from among the most economic and efficient sources of renewable energy in the country. PROTECTION Unlike the consumption of Eskom-supplied electricity, renewable electricity is often ordered and paid for irrespective of actual consumption, provided such electricity is generated. In some cases, this presents a risk to the business of having to pay for electricity that is never used. Discovery Green offers businesses protection against the unnecessary costs involved with reductions in consumption. Consider the scenario where two businesses agree to wheeling of energy to their premises. Each business has a coverage level (percentage of expected consumption that is covered by renewable energy) that is below 100%. The two businesses consume all the renewable energy that is generated. TRADITIONAL MODEL One of the offtakers experience an extreme reduction in consumption to half of its previous level. Under the traditional model, this offtaker would have to pay for renewable electricity up to its contracted amount. DISCOVERY GREEN PLATFORM However, the other offtaker has capacity for more renewable power. Under the aggregation model, the excess supply could be allocated to it. The original offtaker benefits from no wasted costs, and the other offtaker benefits from more renewable power that is cheaper, and further emissions reductions. SMOOTHING A single business will always face the risk that its consumption profile is not similar to the profile of renewable energy generation. This presents the risk of wasted supply. Consider, for example, the typical consumption profile of a gym. A gym can expect to have consumption spikes in the early morning and evening when customer usage is high. If the gym receives renewable energy from a solar PV (photovoltaic) plant, it will be poorly matched as the plant generates renewable energy during daytime hours. Wind offers more stable generation over a 24-hour period. A generation profile that makes use of both solar PV and wind technology would better suit the gym's consumption needs and reduce the amount of wasted supply. Further reductions in wasted renewable energy could be achieved if a business with a different consumption profile to the gym joined the wheeling arrangement. A pharmacy, for example, may have a consumption profile that is more heavily weighted to daytime hours. This blended demand between the two businesses would smooth out their combined consumption profile and reduce wasted renewable energy even further. The increased scale in both demand and supply that is achieved by the platform is key to maximising a business' renewable energy coverage while avoiding wasted supply. Importantly, in addition to matching generation and consumption over a 24-hour period, Discovery Green can mitigate against any seasonal volatility in power generation and consumption. Discovery Green's actuarial optimisation allows it to extract the benefits from smoothing and eliminate wasted energy to the benefit of all businesses on its platform. * FAQ * Terms and conditions * Terms and conditions * Privacy policy * Privacy policy * DG NERSA Application * Contact us: support.discoverygreen@discovery.co.za Discovery Ltd is the licensed controlling company of the designated Discovery Insurance Group. Registration number: 1999/007789/06. YOUR SESSION WILL EXPIRE IN 60 SECONDS. To remain logged in, please click on the "Extend session" button below. TO SECURE YOUR ACCOUNT YOU HAVE BEEN LOGGED OUT Log in to start a new session or go to the home page. Log in Username password Log in COOKIE POLICY We use cookies to give you the best possible online experience. 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