Energy Efficiency & Demand Side Management WAYNE FORTUIN Senior Energy Advisor ESKOM Western Region Contents • • • • • • • • EEDSM Background EEDSM Targets EEDSM Structure Funding Mechanism Implementation model EEDSM initiatives EEDSM Pillars Barriers to EEDSM 1 Projected Load Profile The demand for electricity is growing steadily at around 3% per year… New capacity requirement Existing capacity And what that means… Every three years we need one base load power station 1200MW 1200MW 1200MW (R10bn) (R10bn) (R10bn) 2 What is DSM? • Create predictable changes in customer demand and load profile • Alternatives to the provision of additional generation plant. • Includes load management, peak clipping and energy efficiency Long term DSM target 8000 MW To be achieved by 2025 …basically a saving of two base load power stations 3 DSM Medium Term Target • Winter Weekday Demand Profile 2004 - 2012 Target Peak Demand Reduction Through DSM by 2012 3000 MW Demand Projected New DSM Load profile Daily load 1 Hours 24 Approach to be followed Comprehensive National Demand Management Programme OR STICK NEEA ESSENTIAL SUPPORT FUNCTIONS TO ALL OF THE ABOVE 4 Funding mechanism • Load Management – 100% • Energy Efficiency – 50% • Peak Clipping – 100% DSM OBJECTIVES Strategic Growth Load Shifting Interruptibility Energy Efficiency 5 DSM Implementation Model Eskom DSM DSM Agreement • Evaluation • Financier Customer • Sustainability ESCo ESCo New Engineering Contract Maintenance or Performance agreement • Audit • Proposal • Installation DSM Initiatives - Industrial Industry Mining and Agricultue Load Management Line Losses 7% Process Heating 7% Homes & Hostels 4% Electrochem 3% Arc Furnace 14% Lighting 7% Other motive 2% Industrial Cooling 3% HVAC 1% Processing 15% Pumping 13% Material Handling 10% Motor & VSD Fans 5% Compressed air 9% Pumping Compressed Air 6 DSM Initiatives - Commercial Commerce Homes & Hotels 6% Line Losses 10% Process Heating 10% HVAC 27% EE & LM Lighting 35% Fans 9% EE Other motive 3% DSM Initiatives - Residential Residential Cool Storage 8% Line Losses 15% EE Space Heater 14% Other 8% Pool Pump 1% Laundry 2% Other Cooking 3% Controlled Water Heating 6% Stove & Oven 8% Uncontrolled Water Heating 18% HWLC CFL 0% Fluorescent 5% Incandescent 12% EE 7 EEDSM Pillars • Economic – Lower cost than generation plant – Lower lead time to implementation – Better utilisation of national resources • Environmental – Lower environmental impact (coal, water) – Low GHG emissions • Social – Job creation • Sustainable – Change consumer behaviour Barriers to speedy EEDSM roll out • Shortage of technologies locally • Shortage of specialised professionals trained in EEDSM • Energy efficient products of low quality (Import market) • Uncertainty with reform of Regional Electricity Distributors (Municipalities) • Development of agreements • Development of the ESCO market 8 THANK YOU ? 9