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Tuesday, December 2, 2014

Energy Solutions

Dear all

Letter in last 23rd October 2014 Cape Times.

They called it "Energy Solutions".


Dear Editor

In the wider international news (Car and Driver Online Magazine), we read the following:

"Today’s Tesla Electric Vehicle Model S batteries are manufactured in Japan before taking the long boat ride to California. Moving those processes to the USA eliminates logistics expenses and Tesla’s exposure to Japan’s electricity rates, which are roughly twice those of the United States.

Elon Musk, CEO of Tesla Motors, plans to drive his energy expenses even lower with an expansive solar array and wind turbines on-site."

I think that this particular paragraph is the most important for the South African government to notice

If it is cheaper to move production from Japan to the USA because of cheaper electricity, amongst other things, then it is becoming cheaper to move electricity guzzling operations out of South Africa, where our electricity prices are already higher than those in India, China and the US.

The fact that our government compares our electricity prices to those in Germany which are up to 3 times higher than here, is all very well, but Germans are prepared to pay those prices because the grid is free, everyone has access to it, and everyone can be a power station.

Germany has benefitted magnificently because of its setup, where overall electricity prices are actually falling now, and where its network is probably the most robust in the world. But our government want
 the price increases, without giving away grid access.

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