Lessons for starting an Energy
Efficiency Accord
21 October 2009
Valerie Geen
National Business Initiative
Director Climate and Energy
Content
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Introduction and background
The Accord
Implementation of the Accord
Achievements
Recommendations for Action
Introduction and Background
• The EE Accord was initiated in 2005 to support the
Energy Efficiency Strategy
• Initial signatories included 30 companies, 8 of these
being industry associations
• Initial signatories included most of the largest energy
users including mining and industry
• Implementation of the Accord has been driven by a
technical committee including Energy managers and
other significant role players and chaired by business
and industry with NBI as secretariat
Overall objectives of the EE Strategy
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To improve the health of the nation
To facilitate job creation
To alleviate energy poverty
To reduce environmental pollution
To reduce CO2 emissions
To improve industrial competitiveness
To enhance energy security
To reduce the necessity for additional power generation
capacity
To achieve these objectives an overall national target of a 12%
reduction in final energy demand was set for 2015
The Voluntary Energy Efficiency Accord
• Agree on baseline
• Develop sector specific strategies and
targets
• Promotion of DSM projects
• Develop Reporting requirements
• Projections of future energy consumption
• Establish methodologies
• Develop generic auditing protocol
Contribute to training material for skills dev
• Government to develop strategies and fiscal
incentives
• Government to promote CDM
• Government to engage signatories in
strategy, regulations, standards and inputs to
DEAT LTMS processes
• Promote networking and sharing of best
practice
Voluntary Energy Efficiency
Accord Signatories
Energy Efficiency Accord signed with Minister Sonjica
Summary of progress against objectives
Objectives
Progress
Agreement on Baseline
Varied baselines due to data
availability
Sector Specific Strategies and targets
Still to be achieved
Promotion of DSM
DSM investments to the value
of R565 million against
numerous challenges
Business investment in EE of
R9 billion
Reporting Requirements
Energy Management
Performance Matrix (common
reporting requirements still to
be agreed )
Projections of future
Energy Consumption
Varied projections and
overtaken by PCP and current
economic downturn
Summary of Progress Continued…..
Objectives
Progress
Establish Methodologies
Measurement and verification protocol
Proposed in accordance with IVMVP
Auditing Protocol
Underway through NCPC
Skills Development
Energy Efficiency Hub
Fiscal Incentives
Treasury has started processes in this
regard
Government promotion of CDM
DNA has made serious efforts but
uptake has been slow. SAPPI is a
good case study from the Accord
Government to engage Business on
strategy, standards, and inputs to
LTMS
This has been done via the EE
technical committee and meetings
between the Minister, leading CEOs
and BUSA and technical committee on
standards
Promotion of networking and best
practice
Valuable networks established and
good sharing of best practice
Achievements of the Accord after 3 years
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Platform for collective engagement between business and
government and other key stakeholders
Increased to 50 signatories including more commercial
signatories
Sharing of best practice, peer support and stimulation of company
level policy and action
Energy savings
Engagement with policy, e.g. revision of Energy Efficiency
Strategy, recommendations on Power Conservation Programme ,
input into LTMS, input into Energy Efficiency incentives from
DTI,NERT Work Streams
Value Add to Carbon Disclosure
Encouraging Energy Mgt Performance:
Majority with More Than Half Total Score
Skills & Knowledge Remain Significant
Problem in Energy Management
Impressive Improvements in Elec Energy
Intensity based on Value-Added
Defining Energy Efficiency
POET
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Performance
Operational
Equipment
Technical
Diesel Energy Intensity Poorly Reported
& Improvement Not Impressive
Petrol Energy Intensity Poorly Reported
But Gains Made by Those Reported
Coal Energy Intensity Shows Some
Improvements
Examples of Electricity Savings of 15 EE
Accord Signatories (MWh)
Company
Electricity Saved (MWh)
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B
5,344
64,774
C
68,700
D
F
H
L
N
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Q
R
S
V
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Y
11,608
28,000
6,581
20,150
140,000
290,000
17,500
881,174
695,700
19,800
1,610
154,700
Total
2,405,641
Significance of Electricity Consumption
(GWh) of 18 EE Accord Signatories
Industry
Mining
Commercial
Accord (18 Signatories)
National Consumption
27,035
14,795
473
47,240
224,000
Where to start
• Admit that you have a problem
– Energy Security
– Electricity Pricing
– Climate Change
– Assessment of Risk : Business, Reputational,
Regulatory
• Determine the scope of the problem
• Form an Association e.g. Energy Forum, Provincial
Accord, Technical or working group
What to do?
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Solicit buy-in from Executive leadership
Energy Audit and baseline
Allocate responsibility( In house team including energy or facilities
manager, sustainability manager, IT manager, procurement
manager, financial manager, communications manager)
Formulate policy/strategy
Skills development
Raise awareness and communicate
Set Targets
Identify projects to attain targets
Investment
Measurement and verification
Reporting
The property sector
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Owner vs tenant responsibility
Metering
Control over consumption
Retrofitting
What’s good for business ?
– Infrastructure requirements for different businesses
– More discerning customer
– Opportunity for new design
– Reducing cost to stay in business
– Managing business in the dark
– Leverage : hospitality industry, tenant, consumer
Recognising Top performers: 2009 ETA
Awards
Xstrata-Merafe:
Mining
Afrisam:
Industrial
Woolworths:
Commercial
Thank You
Valerie Geen
geen.valerie@nbi.org.za