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August 26, 2010 at 4:10 pmXON brings alvitnarete energy solutions to marketXON has launched its Alternative Energy division, XON AE, which brings to market a range of alvitnarete energy solutions based on solar, wind and geothermal power heat pumps and green building solutions. The division’s solutions range across the rural, agricultural, retail, and manufacturing sectors. “South Africa is in the grip of an energy crisis,” says Carel Coetzee, CEO of XON. “Eskom has been given the go-ahead to increase the price of electricity by 25% for the next three years, which means the price will effectively double. They’re also building more coal power stations that will produce more pollution. Yet there are people living in informal settlements who do not have electricity for simple lights and cellphone charging.” Product-agnostic XON AE, headed up by Marnus Pieterse, will provide a range of solutions, from alvitnaretely powered street lights to security lights, reading lamps, cellphone chargers, power for TVs, radios, water pumps and more, through to fully capable off-the-grid manufacturing solutions. “There will only ever be a market for green or alvitnarete energy once it becomes affordable and it makes business sense. If you cannot prove an ROI of around 24 months or less, there is no market for a solution. This rule also applies to our solar light and cellphone charging solution for informal settlements and low-cost housing areas. We estimate the saving on candles, paraffin and cellphone charging costs means our solution will pay for itself within 24 months. In addition, customers will derive many safety benefits,” says Coetzee. One of the initial products on offer to developers of low-cost housing and local government as well as the retail market is a packaged 12V lighting and cellphone kit in a box that has five lights for general lighting, reading, and security, plus a point for charging a cellphone, all for around R2 500. “We have a full research and development facility staffed by electrical engineers that bring solutions specifically to the African and South African environment,” says Pieterse. “With their expertise and our access to a wealth of specialised technology, we can design any application in terms of alvitnarete energy for the local market to optimise energy use and cost savings.” XON has a national footprint of sales offices and service centres and a distribution channel already established to bring solutions to market countrywide. “We see the informal and low-cost housing markets in Africa and South Africa as being the initial focus of our efforts because these people have the biggest need for simple affordable off-the-grid power solutions,” says Coetzee. “They have no power in their homes and they are being inconvenienced when they have to pay between R14 and R20 just to charge a cellphone once. At the once off cost of around R 2 500, this solution also represents a business opportunity for the entrepreneurial market in rural areas that will benefit all communities.”

$100/tonne coal from South Africa$25 shipping for a tonne of coal from South Africa$125/tonne deevelrid.25 MBTU's in 1 tonne of South Africa Coal = $5 MBTU's.1 MBTU/3413 BTU/KW = 292 KW * 30% plant efficiency factor = 100 KWh = 5 cents/KWh fuel cost.Fuel cost for 1,000 megawatt coal fired electricity plant operating at 75% capacity per year = $328 million. 20 years fuel cost = $6.5 billion. Brand new 1000 megawatt nuclear power plant = $6 billion.Sometimes while governments dither free markets solve problems.