Eskom Integrated Demand
Management Update
Wayne Fortuin
Energy Efficient Buildings Forum
Background
Keeping
the lights
on
“Keeping
the lights
on”
IDMs efforts have displaced the equivalent capacity of a
full power station
IDM cumulative performance over time
(Measured and Verified savings provided for annual report 2013/14)
10780
12000
9417
Cumulative demand
savings (MW)
10000
7590
Cumulative energy
savings (GWh)
6240
8000
1082
432
285
162
126
90
2000
1004
3941
3531
3072
2725
2371
2656
4000
1999
4343
4906
6000
0
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
EE has permanency / longevity - once implemented, the energy efficient solution is in
place for the duration of the technology life.
The IDM programme produces benefits at all levels of
the economy and society…
Developmental contributions
Access to lighting
62 million
The number of CFLs
replaced since inception
Access to hot water
The number of SWH
382,542 installed since inception
The number of heat
19,354 pumps installed since
inception
Education and training
The number of teachers reached via
1,778 workshops since 2004
85 The number of learners receiving ESCO
Development Programme Certificates
The number of building energy auditors
33 certified through the Building Energy Auditors
Training programme (BEAT)
The IDM programme initiated a cultural and behavioural change
amongst South Africans
Eskom’s IDM Programme is world class
CFL ROLL OUT
SOLAR WATER HEATING IMPACT
382 thousand SWH units installed in
62 Million CFLs have been distributed across South Africa,
representing one of the largest CFL roll outs in the world
COST EFFECTIVENESS
Amongst the lowest cost
programmes in the world as
measured by both $/MW demand
reduction and $/kWh energy
savings
partnership with the DOE, representing installed
operational capacity that exceeds the combined
SWH capacity of Africa.
INTERNATIONAL AWARDS
Eskom’s innovative Power Alert
tool has won prestigious international
awards in both marketing and
engineering fields and is again
nominated for an international award
Source: EAI data
IMPLEMENTATION BEST PRACTICE
ENERGY SAVED
Aligned with best
In 2012/13 the IDM programme saved
2,251 GWh - equivalent to the electricity
developed by the EU Energy Efficiency Watch
survey of the National Energy Efficiency Action
Plans from 27 EU Member States.
needs of more than 154,000 typical*
households in South Africa.
practices for energy
efficiency implementation programmes as
*At an average per capita consumption: 3,645.1 kWh/a
Source: "Energy Use Per Capita". World Development Indicators. World Bank.
Reported for 2011 data.
Overview of demand and supply,
customer and load profiles
7
Average Summer Week Load Profile for
Main Sectors
Industry
Average Summer Week Load Profile for Main Sectors
The industrial sector
contributes consistently and
significantly to energy use
throughout the week
Commercial
The commercial sector has a
prominent impact on the
characteristic shape of the summer
profile
MW
Residential
The residential sector usage
contributes to the evening peak
between 5 and 9pm.
2011/11/09
| Source: Integrated Demand management market 8
end-use knowledge Basc UI 240-66204213
Opportunities to improve efficiency is typically
sought where electricity consumption is highest
Energy Consumption
Agriculture
4%
Transport
2%
Demand
Residential
17%
Residential
35%
Mining 14%
Mining 18%
Agriculture
4%
Commerce
10%
Industry
49%
Source: as reported in the Eskom 2011 Integrated report)
Industry
35%
Transport
2%
Commerce
10%
2012 USERS CONFERENCE | AFRICA 9
Industrial Sector
Other *
23%
Fans
4%
Pumps
8%
Compressors
1%
Geysers
3%
Lighting
26%
The Industrial sector is by far
the largest consumer of
electricity in South Africa.
Within the sector, the second largest
single end-use contribution to energy
consumption is from Heating, Ventilation
and Air Conditioning (HVAC) again
demonstrating an important opportunity for
efficiency interventions.
*Other describes a grouping of end uses
that were not not individually specified
including electronic equipment.
MW
Motors
15%
HVAC
20%
Sectoral summer load profile for an average week
Main sectors reflected only
Sector’s Peak Coincidence Demand
16,948.28 MW
(48.6%)
Sector’s annual
energy consumption
148,559.94 GWh
(60.7%)
The industrial sector contributes
consistently and significantly to
energy use throughout the week
Industrial sector
Commercial sector
Residential sector
| Source: Integrated Demand management market end-use knowledge Basc UI 240-66204213
10
South African periods of peak consumption
priority target for energy efficiency interventions
• Electricity tariff should support energy efficiency and demand
management.
• Provide a clear signal to customer to change their behavior.
2012/05/12
Overview of IDM solutions
12
Multiple funding mechanisms
(NOT AVAILABLE AT PRESENT)
TECHNOLOGY
KEY:
PRIORITY 1
PRIORITY 2
Priority 3
Industrial
ESCO
Performance Contracting
Standard Offer
Standard Product
Downlighters Mass
Roll-out
Residential Mass Roll-out
SWH / HP Rebate
Other Mass Rollout
Energy
Solutions
Demand
Solutions
Commercial / Agricultural
Residential
Process Optimisation, Lighting
Heat Pumps, HVAC etc.
Compressed Air, Ventilation,
Lighting, Shower Heads,
Heat Pumps, SWH, etc.
Lighting, Hot Water Systems,
Solar , Process Optimisation
Lighting, Shower Heads,
Industrial Heat Pumps
LED Downlighters, & CFL
downlighters
“Mixed bag” of
technologies
HP & LP Solar Water
Heaters, Heat Pumps
CFL Sustainability and
Fill-ins
Multiple funding mechanisms (NOT
AVAILABLE AT PRESENT)
Funding
Models
Which
technologies
will
you implement?
How much power will
Your project save?
(Who is it for?)
Performance
Contracting*
(Industrial)
>30 GWh
in 3 years
Aggregated
Standard Product
(Industrial &
Commercial)
5 MW
Residential
Mass Rollout
(Residentail)
ESCO Model
(Industrial &
Commercial)
1 MW
1 MW
Batches
1 MW
Batches
Standard Offer
(Industrial &
Commercial)
50 kW
Standard Product
(Commercial)
0
* Pending finalisation of offer
Custom or
hybrid solution
3-4 Months
Limited to
specific
products on a
published list
2-4 weeks
Limited to
specific
products on a
published list
Custom or
hybrid solution
250 kW
How long is
the approval
process?
Limited to
categories of
technology on
a published list
Limited to
specific
products on a
published list
How and when are the
rebates paid?
2-4 weeks
6-18 Months
70%
10%
10%
Less than
2 months
Less than
2 weeks
Commissioning Date
10%
Advisory Service
• The IDM energy advisory team are an integral part of Eskom’s
Integrated Demand Management initiative.
• The IDM energy advisory team are trained and skilled to assist
customers in identifying energy saving opportunities and to advise
them on energy saving technologies.
• Main focus is to achieve energy savings by assisting customer with
the implementation of customer self-funded projects.
• Energy advisory staff including professional technicians, engineers
and Certified Energy Managers and Auditors, as well as Certified
Measuring and Verification Professionals.
• Energy advisory is supported by a comprehensive marketing and
customer education programs
15
IDM Demand Response Programmes
• Demand Response currently supports the strategic imperative of
“keeping the lights on” by combating peaking demand issues, and
contributing towards addressing generations maintenance backlogs.
• Demand Response is an ESKOM initiative through which customers are
contracted to make agreed capacity available through reduction in their
consumption on instruction from ESKOM.
• Demand Response Programmes include:
• Customer Stand-by Generation,
• Demand Market Participation (DMP),
• Demand Response Rewards Programme (DR Rewards).
• Currently 1500 MW signed-up
16
Overview of Communication
17
Communication:
Commercial Market: Strategic approach
Engagement with different influencers within a commercial environment via a mix of communication
channels.
18
Through the Power Alert, South Africans have
contributed to keeping the lights on
Since its introduction in 2006, the Power Alert has consistently kept the South
African public informed about the electricity supply situation and have effectively
reduced the peak demand during weekday evenings by between 150 to 350
MWs (delivering as much as 450MWs peak demand reduction on occasion)
Impact – MW reduction
Average impact of Power Alert signals: April 20 – Dec 2014
221
143
64
19
350
Overview of Measurement and
Verification
20
Stakeholder engagement plan
NO
STAKEHOLDER
ENGAGEMENT DATE
ESKOM ENGAGER
1
SACCI
07 February 2014
Mr Kannan Lakmeerharan
BMF
After 25 February
Mr Andrew Etzinger
2
BUSA
After 25 February
Dr Steve Lennon
3
SANGONeT
After 25 February
Mr Mohammed Adams
4
Black Business Council
(BBC)
1st Week March 2014
5
American Chamber of
Commerce & Industry
(AMCHAM)
2nd Week March 2013 (TBC by
AMCHAM)
Mr Kannan Lakmeerharan
6
Johannesburg Chamber of
Commerce & Industry (JCCI)
3nd Week March 2013 (TBC by JCCI)
Mr Andrew Etzinger
2015/08/25
21
(TBC by BBC)
Mr Andrew Etzinger
Measurement and Verification
22
Measurement and Verification
23
Policy framework and current
funding opportunities
South Africa has demonstrated commitment to
EE with a comprehensive policy framework
Some of the most pertinent policy, legal and regulatory mechanisms include:
Energy Policy and
Strategy
White Paper on Energy Policy for the RSA, DME 1998
Integrated Energy Plan, 2013 (draft)
Renewable Energy White paper, DME 2003
Energy Efficiency Strategy of the RSA, DME 2005 (1st revision 2008)
Draft Energy Efficiency Strategy of the RSA, DOE 2012 (2nd review, Sept 2011)
National Energy Efficiency Action Plan, 2013 (draft)
Energy Regulations
and Legislation
Electricity Regulation Act, DME 2006 and subsequent regulations
Electricity Regulations on the Integrated Resource Plan 2010-2030, DoE 2011
National Energy Act, DME 2008 and subsequent regulations
National Energy Act: Regulations on the Allowance for Energy Efficiency Savings
DOE 2011
Energy Efficiency
Incentive Programs,
Taxes, Rebates and
other incentives
Section 12-I of the Income Tax Act, Act no 58 of 1962
…and
Building and Measurement Standards: SANS 204, 10400XA, 50001 and 50010
Section 12-L of the Income Tax Act, Act no 58 of 1962
Regulations on the Mandatory provision of Energy Data, DOE 2012
Carbon Tax discussion paper, National Treasury 2010
25
As national priority, multiple roleplayers are now
promoting and participating in EEDSM initiatives
12 I Tax incentive +
SANEDI and the dti
12 L Tax incentive +
SANEDI and the DoE
Private Sector Energy
Efficiency (PSEE) Initiative
+ National Business
Initiaitive
Green Energy Efficiency
Fund + IDC and kfW
AfD Green Loan and
Technical Assistance
Facility
Solar Water Heating
(SWH) rebate +
Department of Energy
Industrial Energy
Efficiency Programme +
National Cleaner
Production centre (NCPC)
DR and EEDSM +
Department of Energy IPP
Procurement Office
Thank you!