Contract No: R031200542 CoCT Electricity Customer Eskom EEDSM Programme Opportunity Screening Project Consultant: Carbon & Energy Africa CoCT Project Manager: Sarah Ward/Hilton Trollip Overview Project Objectives Methodology Identified Electricity Customers Energy Efficiency Opportunities CoCT Energy Efficiency Goals Eskom IDM Funding Action Plans Conclusions Proposed Way Forward Overall City Electricity Usage Project Objectives Desktop research on CoCT electricity customers and screening for major focus entities Identifying significant CoCT customer electricity efficiency improvement opportunities Advising main CoCT electricity customers on Eskom EEDSM programmes Estimating the potential savings and likely Integrated Demand Management (IDM) opportunities Reporting on customer action plans to access Eskom IDM programme funding Methodology (1) Email correspondence with CoCT large electricity customers database as well as the Energy Efficiency Forum database Awareness raising via radio interviews with Heart FM and Cape Talk, and newspaper articles in the Cape Times and Die Burger Two-page document providing a detailed list of (i) no cost measures, (ii) low cost measures, and (iii) high cost measures for electricity savings Describing the processes involved in accessing funding (Standard Product, Aggregated Standard Product and Standard Offer Programmes) Report outlines which customers engaged commenced with applications for energy efficiency project funding from Eskom Methodology (2) - Technologies Efficient lighting (higher lumens/watt) Lighting control gear changes Use of heat pumps and solar water heaters instead of electrical elements for heating requirements at temperatures of 60°C. Motor replacement with high efficiency motors Use of variable speed drives Cogged V-belt retrofit of belt driven motors Refrigeration compressor efficiency improvements Identified Electricity Customers (1) Customer Arcus Facilities Atlantic Laundry Bevcan (Epping) Brancroft Capensis Investments (IWT Group) Century City Clothing Warehouse Communicare Crown National Elsenberg Department of Agriculture Dongola Guest House DynaDeals EuroCape Granite Group GrowthPoint Properties Irvin and Johnson (I & J) Inframax IPIC Group Leisure Kitchens Levi Straus (Sacks Circle, Epping) Lohr's Auto Longstreet Backpackers Mainstream Media 24 Applicability Yes Yes No (Industrial) Yes No (Industrial) Yes Yes Yes Yes No (not CoCT) Yes Yes Yes Yes Yes No Yes Yes Yes No (Industrial) Yes Yes Yes Yes Focus Commercial Building Clock Tower Precinct Salt River N/a Arden Grove Business Park, Milnerton N/a 1 Park Lane 7 Benbow Ave Communicare Buiding, Cape Town Various N/a Tokai Shopping Centre (Bellville) 85 St. Georges Mall, Cape Town State House, Cape Town Various Paarden Eiland (Industrial) Sunrise Park, Sunrise Circle, Ndabeni Aurora Centre, Durbanville 76 Denton Rd, Parow N/a 1A Assagaai Rd, Parow Industria Cape Town Mariendahl House, Claremont Naspers, CBD Identified Electricity Customers (2) Customer Old Mutual Old Mutual Properties Omnicron Investments Park Inn Property Exponents Radio Holland Redefine Properties Reonet Retirement Hotel Seapoint Flats Shopping Centre Swish Properties Transnet University of the Western Cape (UWC) Venus GP Holding Vineyard Hotel Woolworths Real Estate Applicability Yes Yes Yes Yes Yes Yes Yes No (Product Supplier) Yes Yes Yes Yes Yes Yes Yes Yes Yes Focus Commercial Building Pinelands Pinelands Bellville 29 Heerengracht Street, Cape Town Mutual Heights, Darling St 16 Paarden Eiland Rd 42 Hans Strydom Avenue, Cape Town N/a Wynberg and Muizenberg 281 Beach Rd, Pavillion Place Bergvliet Belvedere Office Park Transnet Building, 1 Adderley Street Modderdam Rd, Bellville 28 Sir Lowry Rd Newlands Various Energy Efficiency Opportunities Potential Electricity Savings (kWh/year) 120 000 100 000 80 000 60 000 40 000 20 000 0 Energy Efficiency Opportunities Table 3: Potential electricity savings from lighting retrofits Customer Name Possible kWh Savings Clothing Warehouse - Epping Facility 93400 DynaDeals - Bellville Shopping Centre 8000 EuroCape - 85 St Georges Mall 49500 IPIC Group - Aurora Shopping Centre 50000 Leisure Kitchens - Parow Facility 500 Lohr's Auto - Parow Facility 3500 Seapoint Flats - Pavillion Place 60300 Transnet - 1 Adderley St Building 36800 Vineyard Hotel - Newlands 108000 Total 410000 Table 4: Potential electricity savings from hot water system retrofits Customer Name Brancroft - Arden Grove Park Possible Annual kWh Savings 12 800 Communicare - Diep River Clinic 31 000 Longstreet Backpackers - Cape Town 35 800 Park Inn – 29 Heerengracht Rd 50 900 Retirement Hotel - Wynberg & Muizenberg 20 500 UWC - Residences 72 600 Total 223 600 City of Cape Town EE Goals (1) City of Cape Town (2006); “Energy and Climate Change Strategy” Energy Vision 3: A City that Uses and Manages Energy in an Efficient Way “Facilitating implementation of national demand side management (DSM) initiative (driven by Eskom) in the commercial and industrial sectors” City of Cape Town EE Goals (2) Customer category No.of customers Total kWh/yr used Sample¹ % Reduction² Commercial – small 1&2 34 337 7 151 481 400³ 0.1% 9.3% Large & very large 3 359 ¹ The sample represents the % of commercial properties engaged in the project (36 divided by 37 696) ²The % reduction represents the 633 600 kWh/year possible savings identified in the sample entities as a function of their total electricity use ³Usage for commercial and industrial sector as reported in “State of Energy and Energy Futures Report” (City of Cape Town; 2011) Eskom IDM Funding Action Plans 2 Entities (Media 24 and Woolworths Real Estate already received Eskom funding for energy efficiency retrofits) 3 entities stated that they are aware of the schemes and keeping them in mind in investment decisions 2 entities ESCo’s to assist them with applications 6 entities submitted Standard Product Programme applications to Eskom and are awaiting approval 1 entity (UWC) has recently submitted Standard Offer Programme application with the facilitation of an ESCo 6 entities have found that even with Eskom funding the retrofit costs are too high or are the responsibility of tenants 15 entities are investigating the potential for applying for funding for retrofits via the Eskom IDM programmes Eskom has revealed that a total of 17 Standard Product Programme projects were submitted between April 2012 and June 2012, and average savings represented by each project amount to 20kW Conclusions (1) Project has met the CoCT goal in providing necessary marketing around the Eskom IDM programmes to facilitate implementation Project should result in savings of in excess of 600 000 kWh/year by commercial entities once implemented Bearing in mind that the scope of this project was a sample of all commercial buildings the scope for further savings is immense The Property Groups engaged are envisaged to roll-out the opportunities to their other sites Conclusions (2) Anticipated to largely have been empowered to undertake funding applications to Eskom without assistance Where entities deem that they do not have the resources to complete applications they have been assisted in becoming aware of the ESCo’s that they may engage for assistance Proposed Way Forward (1) A similar exercise to the work carried out in this project but incorporating project management of savings measure implementation (requires a contract of a longer timeframe) Extension to cover industrial sector as well (greater scope for savings in a specific entity) Mandatory or funded energy audits to bring about greater action Co-operative work with universities to highlight areas of saving opportunities Proposed Way Forward (2) Investigate feasibility of tax and other incentives Establishment of “Energy Advice Centre” in partnership with organisations with relevant expertise Prioritising energy efficiency in sustainability strategies Overall City Electricity Usage Government Transport 2% 2% Industrial 13% Residential 43% Commercial 40% Total Electrical Energy Usage = 13 493 361 100 kWh/year QUESTIONS Carbon & Energy Africa (Pty) Ltd 1st Floor Dean Street Arcade, Newlands 7700 Tel: 021 802 32 42/3/4/5; Fax: 086 244 0869 Oliver Stotko (os@carbonenergyafrica.co.za) Denis van Es (dve@carbonenergyafrica.co.za) www.carbonenergyafrica.co.za