shifting the focus
IDM Funding Mechanisms
IDM activities previously focused primarily on
three areas
Industrial and mining
process optimisation &
efficiency upgrades
Mass rollouts
(mainly of CFLs)
Solar Water Heaters
(high and low pressure
systems)
164
527
1,440
48
2,006
6,667
38,731
84,677
30
60
projects
megawatts
gigawatthours/annum
projects
megawatts
gigawatthours/annum
high pressure systems
low pressure systems
megawatts
gigawatthours/annum
A range and funding mechanisms are being
developed for improved accessibility
Aggregated
Standard
Product
Performance
Contracting
Projects
<100kW
1MW – 5MW
Substantially
larger than
ESCo process
>5MW
Standard value
per kWh saved
per technology
Standard value
per item
calculated
based on
savings
potential
Based on
individual
project
calculation
Competitive
bidding process
Eskom or DoE
Published
Market Price
per technology
(average of
NERSA
Benchmark)
Market price
per technology
(up to 85% of
NERSA
benchmark)
Market price
per technology
(up to NERSA
benchmark)
Market Price
per technology
(up to NERSA
Benchmark)
Customer and
Eskom (up to
NERSA
benchmark)
Progress
payments
Batch invoicing.
Payment as per
contract.
70% on
implementation,
10% pa based
on M&V
100% on
installation,
based on M&V
Batch
invoicing.
Payment as
per contract.
Progress
payments with
retainer
Individual IC
approval
Bulk IC
approval
Individual
projects
approval by
IDM
Bulk IC
approval per
technology
Bulk IC
approval per
technology
Bulk ICAS
approval
Aggregated
project
approval by
IDM
Bulk approval of
individual
projects
Individual
tender
processes
Call for
Proposals in
Phases –
Streamline
Individual
Project
Approvals
Streamline
individual
project
approvals
Possibly no
requirements if
outsourced
Streamline
individual
project
approvals
Possibly no
requirements if
outsourced
Call for
Proposals in
Phases –
Streamline
Individual
Project
Approvals
Residential
Mass Roll
out
Standard
Offer
Standard
Product
Large Scale
Roll-outs
1MW – 5MW
50kW<Project<
1MW
In line with
MYPD
benchmarks,
with discretion
Based on
individual
project
calculation
Customer and
Eskom (up to
NERSA
benchmark)
Rebate claimed
by consumer
ESCo
Process
Rebates
Mass Rollout
Size
Projects >
1MW
Individual
Products
Eskom
Payment
Value
Based on
individual
project
calculation
Value per
product based
on savings
potential
Funding
Customer and
Eskom (up to
NERSA
benchmark)
Payment
Progress
payments to
ESCo’s
Investment
Decision
Procurement
Decision
Individual IC
approval
Price
evaluation
based on
submitted
approval
Once-off IC
approval per
technology
Rebate
administration
outsourced
RFI
Tender
Residential Mass Rollout
Demand-based payments for verified savings.
Mixed basket of technologies including: CFLs, LEDs, Showerheads,
Geyser Controllers, and Geyser blankets
Replace inefficient technologies with a
pre-approved suite of energy efficient
products
Size: 1MW-5MW
Market focus: Residential
Fixed rate per technology
as published
Sustainability ensured through product
guarantees and warranties
14 projects
66 MW savings
Standard Offer
Energy Efficiency payments at a fixed rate for a fixed period (16 hours)
Lighting, LEDs, Hot Water Systems, Solar, Industrial Process Optimisation
Standard rate per kWh per technology
42 – 70 c/kWh (Peak Hours)
No. Of Projects
Demand Savings (MW)
Energy Savings (GWh)
44
48
36
120
39
90
36
26
24
13
12
60
16
9
30
4
0
61 projects
31.4 demand
148.1 energy
savings (GWh)
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
0
savings (MW)
Sustainability ensured by procuring
energy savings over a 3 year period
(70% on completion and 10% pa
thereafter)
49
Demand (MW) & Energy (GWh)
Savings
150
60
Apr
Size: 50kW-5MW (Mon-Fri 6:00-22:00)
Market focus: Industrial / Commercial
Standard Offer projects registered (cumulative progress 2011)
No. of projects
Replace inefficient technologies with a
pre-approved suite of energy efficient
products
Standard Offer
Energy efficient
lighting systems
Electrical hot
water systems
Building
management
systems
Solar water
heaters
Process
optimisation
Standard Product
Pre-approved rebates for deemed energy savings (24/7) achieved
through specified technologies – efficient replacements
Lighting, Shower heads, Industrial heat pumps
Standard Product projects registered (cumulative progress 2011)
Energy Savings (GWh)
460
400
64
48
236
200
32
133
100
4
15
37
96
80
332
300
66
16
0
572 projects
19.7 demand
savings (MW)
86.9 energy
savings (GWh)
Dec
Nov
Sep
Aug
Jul
Jun
May
0
Apr
Standard value per rebated item,
scaled to 85% of SOP
Rebate capped at R750 000
Demand Savings (MW)
Demand (MW) & Energy
(GWh) Savings
No. Of Projects
500
No. of projects
Size: <100kW savings
Market focus: Commercial
569
600
Oct
Small to medium projects
Standard Products
Current technologies included:
Shower
heads
Lighting
CFL, LED
Extension of standard product offer to include:
Air
conditioners
Solar water
heaters
Heat
pumps
Performance Contracting
Bulk buying of energy savings from project developers for multiple projects
Energy efficiency-based payments for verified savings (24/7).
Compressed Air, Ventilation, Lighting, Shower Heads, Heat Pumps, SWH
etc
Large, Capital Intensive Industrial
projects.
Size: >30GWh for 3 years
Market focus: Industrial
Multiple fixed rates per kWh based on
time of savings
Peak 55 c/kWh
Other 10 c/kWh
Sustainability ensured by procuring
energy savings over a 3 year period
16 projects
131 contracted MW
2076 GWh energy
savings (over 3 years)
How can Eskom help me implement an energy
efficient solution?
Funding
Models
Which
technologies
will
you implement?
How much power will
Your project save?
(Who is it for?)
Performance
Contracting*
(Industrial &
Commercial)
How long is
the approval
process?
Custom or
hybrid solution
3-4 Months
Custom or
hybrid solution
6-18 Months
How and when are the
rebates paid?
5 MW
ESCO Model
(Industrial &
Commercial)
1 MW
Standard Offer
100 kW
(Industrial &
Commercial)
50 kW
Standard Product
(Residential and
small commercial)
0
* Pending finalisation of offer
Limited to
categories of
technology on
a published list
Limited to
specific
products on a
published list
Less then
2 month
70%
10%
10%
Less than
2 week
Commissioning Date
10%
THANK YOU