Gaining being Smart!
Presented By:
Douw De Kock
082 650 8789
Challenges
• Material multiple tariff increases
• Proposed Power Conservation Programme [PCP]
– Use less –and/or- augment supplies
• Lack of generation capacity
– Reliance on Government capacity –and/or- own generation
capacity.
– Eskom’s Situation.
• Risk to continuity of supply
– Localised diesel standby power.
• Government’s renewable drive – White Paper on
Renewable Energy November 2003
Electricity Marketplace
Eskom base case
SOUTH AFRICAN NET RESERVE MARGIN
10% demand savings
5% demand savings
% net capacity reserve margin
Key assumptions
20
• Growth: 4% p.a.
18
• Supply side assumptions:
– Eskom supply base case
plans including Medupi, Bravo
and Mmamabula (2013)
– Excluding UCG at Majuba,
extra wind capacity,
OCGT/CCGT conversions,
Co-Gen and DME IPP
• Demand savings calculation
– Annual energy is reduced by
5% or 10%, and then the peak
demand is calculated to derive
the projected reserve margin
16
14
12
10
8
6
4
2
0
-2
-4
03
05
07
09
11
13
15
2
Source: Team analysis
Electricity Marketplace
TARIFF INCREASE OVER 10
YEARS
BUSINESS RATE TARIFFS
1.2
1
0.8
kWh cost Summer
Cost/kWh 0.6
kWh cost Winter
0.4
0.2
0
1996
1998
2000
2002
2004
2006
2008
Effect of Tariff Increases
Consideration of Savings Options
• Cost
• Benefit
• Risk
Best way to save...
•Don’t USE
Industrial Production vs Consumption
800000
700000
Step 1
600000
500000
Output Kg
400000
KWh
300000
200000
100000
0
•
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug Sep
Oct
Nov Dec
Identify Consumption Areas
– Know where u are using electricity and how much.
• Introduce reliable metering and verification systems [M&V].
– Verify accuracy of bulk accounts.
– Determine most affordable tariff in light of determined profile.
– Prove and confirm savings achieved.
– Capability achieved
• Capacity to benchmark plant and equipment
• Consumption cost vs. Value calculations
• Areas for possible intervention identified
• Proof of savings achieved.
Step 2
•
From M&V systems, determine strategy to set policy going forward.
– Confirm targets for service providers –(know what you want) internal
& external.
– Investigate and identify large to small consumption patterns, to ensure
financially viable solutions implemented [financial analysis].
– Making sure what is installed works optimally to
OEM spec.
Step 3
•
Introduce energy management
• Disconnection policy and procedure
– Identify work hours.
– Identify critical plant and equipment for operation outside of normal
work hours.
– Arrange for disconnection implementation re non critical plant,
equipment and lighting.
» Security staff interventions
» Electronic timers
» Centrally monitored remote disconnection / timing functions.
• Motion sensors
• Management with other scheduled work to reduce costs.
Step 4
• Energy Efficiency
– Introduce energy efficiency i.e. Lighting, motors,
climate control etc
• Review energy efficiency accord document.
Step 5
• Verification
– With M&V systems, confirm savings actually
achieved
– Confirm rate of return
• Accelerated payback with each tariff increase.
• We know what upward trend there is going to be.
Step 6
• Renewable Energy Sources
– Deployment of wind generation as potential alternative
energy source.
• On site – Micro Turbines
• 3rd Party Independent Power Producers
– Methane/ Bio-mass/ Concentrated Solar Options
– Mitigate penalty tariffs
– Environmentally friendly
In Summary
• M & V System
• Strategy [Cost, Benefit, Risk]
• Action
– Management
– Efficiency
• Verify and compare
• Alternative supply
Thank You
Questions
• www.sapoa.org.za
• www.remotemetering.net
• www.broll.co.za