Alternative energy for Hyundai SA
As part of an initiative to reduce downtime due to load shedding and to minimize its carbon footprint, Hyundai Automotive South Africa has installed a solar energy system at its Parts Distribution Centre.
The Parts Distribution Centre which receives more than 450 shipping containers filled to the brim with car parts every year and warehouses stock worth R100 million will now benefit from the solar photovoltaic (PV) project, which has an installed cost of just over R3 million.
“A smooth operation at the Parts Distribution Centre is paramount to maintain and improve our on-time parts delivery ratio of 92% to our dealer network, which we are very proud of. The installation of the solar photovoltaic energy system, which generates and stores electrical power in a bank of batteries, plays a big role to keep to our target,” Samuel Matlhola, parts operations director at Hyundai Automotive South Africa.
The main focus according to Samuel Matlhola is the tons of carbon savings which will take place year after year. “There are other benefits too, such as a saving in electricity costs, which we will really benefit from in five or six years’ time when the cost of the investment has been fully recovered,” Samuel Matlhola, parts operations director at Hyundai Automotive South Africa.
In addition to the positive effect this initiative will have on the environment, the system will be able to feedback excess solar energy generated into the municipal grid and once this function is licensed could result in the estimated six-year term for the investment to be recovered, reduced to only five years. “However, the primary reason for installing this system is that it is the right thing to do, from a sustainability and environmental point of view. We really feel good about it,” concludes Matlhola.
The solar panels were installed on the previously unused roof area of the Parts Distribution Centre’s warehouse which feeds power into an inverter to transform the power into alternating current for use in the centre. AGE Technologies were responsible for installing the system which with its battery bank assists in offsetting the grid maximum demand tariff charges during peak times.
Even during winter months when the sun rises at a later time, the battery bank will provide for power until around 8 a.m. after which the system will utilize the sun’s power to both provide electricity for the facilities and charge the battery banks for use in the evening. During the off-peak time at night, the system will use the grid to recharge the batteries for use in the morning again.
“If one considers that 58-litres of diesel burnt per hour at the centre to generate electricity during load shedding would deliver 150 kg of carbon dioxide into the atmosphere, the benefits of the solar system to the environment is substantial,” Michael Powell, operations and business development director, AGE Technologies.
It is estimated that Hyundai Automotive South Africa could save up to R450 000 in the first year of operation and could result in an R6 million saving after 15 years. The project will serve as a case study and could result in a wider implementation, even at Hyundai dealerships.
“We are very proud of what Samuel, his team at the Parts Distribution Centre and AGE Technologies have implemented. The installation of the solar power system indicates that Hyundai really gives practical meaning to one of its core values, which is environmentally sustainable and responsible business practices,” Niall Lynch, CEO, Hyundai Automotive SA.
