PRIV AT E SECT OR E NERGY EFF ICIENCY Introduction to PSEE March 2014 www.psee.org.za Who are the stakeholders in PSEE? Carbon Trust • Technical support to the NBI • Over 10 years experience with over 35 000 companies supporting government by assisting companies in EE 2 What are the service offerings? Company size and complexity Small Medium Large (Energy spend < R750k pa) (Energy spend bet. R750k & R45m pa) (Energy spend > R45m pa) Remote Advice and guidance provided by: – Telephone – Website – Publications – Events & workshops Target by March 2015: 2 500 As per small companies plus: Fully subsidised 4 day energy site survey delivered by third-party energy consultant (fully subsidised, ~R30k) Follow up support Target by March 2015: 1 000 As per small companies plus: Co-funded Strategic Energy Management assistance of up to 60 days of support from third-party consultant (Up to ~R500k, 60% subsidised) On going relationship with account managers Target by March 2015: 60 3 Requirements from each company • Commitment of time from a project champion • Senior executive management sponsor to drive progress & buy-in • Willingness to share information regarding energy consumption data • Co-funding of 40% of the cost (for large companies only) • Commitment to implement some priority recommendations • Inclusion of project outcomes in case studies for publication by the PSEE 4 Target timelines per company Medium Company – Energy Site Survey Week1-2 Week3-4 Week5-6 Week7-8 Week9-10 Week11-12 Week13-14 Week15-16 Week17-18 Week13-14 Week15-16 Week17-18 Scoping & Contracting Delivery by consultant Follow-Up Large Company – Strategic Energy Management Week1-2 Week3-4 Week5-6 Week7-8 Week9-10 Week11-12 Scoping & Contracting Delivery by consultant Follow-Up 5 Key Contacts Head of PSEE : Mukoma.peter@nbi.org.za Head of NBI Energy : Geen.valerie@nbi.org.za Programme Manager: Kaputu.chisakula@nbi.org.za Programme Manager : Bhana.hemal@nbi.org.za www.psee.org.za www.nbi.org.za 6 Outline • Introduction to the NBI • Why energy efficiency? • Who are the stakeholders in PSEE? • PSEE project purpose & scope • What are the service offerings? • How are the services delivered? 7 The National Business Initiative • Launched by former President Nelson Mandela in 1995 • Not for profit organisation with a membership base of over 120 leading businesses, acting as a collective, in support of sustainable growth and development in South Africa through projects, partnerships and policy engagement Regional/Local Partner to: World Business Council for Sustainable Development United Nations Global Compact Key Focus Areas: Environmental Sustainability: • Climate, Energy & Water Human Skills Development Carbon Disclosure Project World Resources Institute Ethical Business Leadership 8 Why energy efficiency? “Key to adapting to higher energy prices over the longer term will be efficiency” Maria van Hoeven, Executive Director : IEA Energy Outlook 2013 Energy input costs continue to rise rapidly, affecting all companies ability to sustain operations… 9 Why energy efficiency? Increasing regulatory pressure through further compliance requirements, incentives and taxes to improve energy efficiency is underway Business drivers include: • • • Compliance Requirements Incentives Taxes Energy Management Plans, GHG reduction targets, Assessment of Implementation 12 L Tax Allowance for Energy Efficiency Savings 12 I Tax Allowance for Investment & Training in Manufacturing Competitiveness Enhancement Programme Carbon Tax • Carbon levy on new vehicles • enabling cost and energy reductions in a business’s own operations and supply chains risk mitigation (price volatility, security of supply etc) brand enhancement opportunities including Business to Business (B2B) + Business to Consumer (B2C) sales competitive advantage or in response to competition the value of demonstrating to investors that their business is based upon sustainable operations indicating a long term future 10 Stakeholders – NBI EELN 11 PSEE project purpose To support the continuous improvement of energy efficiency in industrial and commercial sectors across various sizes of business in South Africa 12 Small companies service offering www.psee.org.za 0861 123 624 Information on: • Energy Management • Making a business case • Finance options • Creating awareness campaigns • Tips to reduce energy • Regulations 13 Medium companies offering • 1-2 days on-site, 2-3 days to analyse findings and data, write-up a site visit report and briefing • Scope of work will vary from project to project according to customer requirements ( scoping of work shall be done by the PSEE staff); however at a high level this will commonly include the following: • Review of existing energy policy, strategy and operational plans; Site survey • Expert data analysis and commentary on (4 Days Total) energy performance; • Conduct a thorough site visit and assess major energy using systems against best practice; • Model cost and environmental impact of the existing systems; • Provide a prioritised, costed action plan of recommendations that will improve energy performance; and • Outline cost-benefit analysis for investment. 4 DAY FULLY SUBSIDISED ENERGY ASSESSMENTS/ SITE AUDITS 14 Large companies offering • • • • • • • • • UP TO 60 DAYS OF BESPOKE STRATEGIC ENERGY MANAGEMENT 5 step process – SEM – [mobilise org, develop business case, identify opportunities, develop implementation plan, manage implementation] Training programme and train the trainer Internal awareness campaigns – development of materials, campaign strategy, champions Energy audit programmes - replication key requirement (multi-site) Technology feasibility studies e.g. CHP, Waste to energy, MMTR Establishing baselines and setting targets Energy policy development & governance support Legislative compliance/ Tax incentive advice e.g. EECC, section 12L Energy efficient design advice/refurbishment plans 15 How are energy services delivered? PSEE has undertaken a stringent accreditation process for energy service providers. Thus far 30 consultants across the country have been accredited. Typical skills within our database: • Energy strategy • Green buildings • HVAC & R • Pumps & Fans • Motors • Lighting • Compressed air • Industrial processes ( Process heating & cooling) 16 How are energy site survey services delivered? Scoping and Contracting Delivery Follow-up Kick Off Meeting , Identify Project Sponsor, sign Letter of Intent Contact Preferred Consultant Company engages with Consultant Deliverable Pre Audit Questionnaire completed, Site Visit Conducted PSEE Appoints Available Consultant Implementation of Energy Efficiency Projects Sign Customer Contract Consultant Conducts Site Audit and Develops Report AM follow up with Company on Savings Finalise Scope of Work Report, Baseline and/or Business Cases Signed Off by AM and Company kWh and tCO2e savings reported by PSEE 2 Weeks - 1 Month 2 Weeks – 1 Month 3 - 6 Months 17 How are SEM services delivered? Scoping and Contracting Delivery Follow-Up Kick Off Meeting, Identify Project Sponsor Send RFP to 3 Preferred Consultants Relationship between AM and Company Continues Sign Letter of Intent Evaluate Consultants’ and Presentations Company engages with Consultant Deliverable Obtain Data Required and Conduct Site Visit Company and AM agree on Consultant, Company issues PO Implementation of Energy Efficiency Projects Sign Customer Contract Consultant Contracted and Managed by AM, SoW Delivered AM follow up with Company on Savings Finalise Scope of Work (SoW) Deliverables Signed Off by AM and Company kWh and tCO2e savings reported by PSEE 2 - 4 Months 6 - 12 Months 4-6 Weeks 18