EEDSM offerings – Standard Offer Lodine Redelinghuys September 2010 Processes of Implementation Standard offer/ Customer Offer Paying for savings at a predetermined rate ESCo Programme ESCo submits proposals and manages an effective execution of the project Standard Product Programmes are funded which encourage energy efficiency in communities – e.g. CFLs Rebate Programmes Incentives are given to encourage energy saving e.g. Solar water heating Energy Advisory Services Customers are encouraged to fund their own energy efficiency projects through self funding schemes but savings are claimable by Eskom 2011/02/15 2 Program and Benchmarks Program Offer Lighting & HVAC Up to R5.2m/ MW Hot Water (Heat pumps, Solar water heating & Shower heads) Up to R6.3m/ MW Demand Reduction Up to R3.5m/ MW Compressed Air Up to R4.4m/ MW Process Optimisation Up to R5.2m/ MW Other Up to R5.2m/ MW 2011/02/15 3 Standard Offer Concept • Pre-determined rebate – c/kWh for the delivery of verified energy savings • The current rebate payable is 34c/kwh over 3 years • The SOP does not replace the existing EEDSM process • Applicable for Industrial & Commercial end users • The current SOP is applicable only for lighting EE initiatives that involves: – – – – Re-lamping Retro –fitment Replacement Control Requirements of SOP • Rebate is applicable to energy reduction between 6am and 10pm Monday to Friday only • Energy efficient lighting technologies will be considered for the SOP • The project developer shall ensure that the approved technology complies with all laws and regulations relating to the installation, working environment and lux levels • Minimum project size: 50 kW Payment Schedule • Initial payment price = Number of kWh saved (pa) x 3 years x 0.34 • Installation Payment – Upon the completion of the installation and verification of the achievable energy savings (M&V Report), Eskom shall pay 40% of the initial Payment Price to the project developer on the Measure Acceptance Date (MAD) • Performance Payment – Eskom will issue 3 performance payments of 20% the Annual Adjusted Purchase Price. First payment would be 12 months from the Measure Acceptance Date. The second payment would be 12 months from the first performance payment. The third payment would be 12 months from the second performance payment. Payment spread over 3 years 8 Performance Payment Example 100 Savings from EE Lighting initiative 416000 MAD - M&V Rebate Payment Term kW kWh per annum 34 c/kWh 3 years Total Payment Price R 424,320.00 Initial Payment of 40% R 169,728.00 Performance Payment 1 - Year 1 R 84,864.00 Performance Payment 2 - Year 2 R 84,864.00 Performance Payment 3 - Year 3 R 84,864.00 Thank you Contact Details for Standard Offer: Pradesh.mewalala@eskom.co.za 011-8005843 FortuneW@eskom.co.za 021-5242000