SANEDI strategic 5-year plan
2012/13 – 2016/17
Final
A corporation established under Section 7 of the National Energy Act, 2008 (Act No. 34 of 2008)
energy development and
planning context
1
The transition to a low-carbon economy is globally
recognised as a competitive and development priority,
but with the understanding that this will require farreaching changes in technology, finance, policy and
societal behaviour.
2011
3/12/2016
LTMS: Peak
2024: LTMS
550Mt CO2 ‘cap’
2025: 42 % emission
reduction commitment
(Copenhagen)
2015
IRP 2020 + 34% emission
reduction commitment
(Copenhagen)
IRP 2018
IRP 2016
EE Strategy Target date
IRP 2014
RE White paper Target date
IRP 2012
COP 17, National EE Strategy
Review process, IEP (date)
2020
2025
2035 Decline
commitment for carbon
emissions
2024 Plateau
commitment for carbon
emissions. 275 Mt CO2
(50%) ‘owned’ by
energy sector (IRP
2010)
2020 Planning horizon
current capacity
expansion programme
(IRP 2010)
2020 New Growth Path
target for 5 million jobs
and 15% less
unemployment
South Africa also requires urgent solutions for sustainable energy
supply and economic development
275 Mt CO2 ‘owned’ by energy sector (IRP 2010)
275 Mt CO2 to be allocated to remainder of economic sectors
2030
LTMS: Plateau
South African Energy Development Institute
2035
2040
LTMS: Decline
Time (years) and prominent milestones in the energy policy and climate mitigation landscape
5
SANEDI incorporates two key building blocks of sustainable
energy solutions and a low carbon economy
energy conservation
energy innovation
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vision, mission and mandate
2
vision
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To serve as a catalyst for sustainable
energy innovation, transformation
and technology diffusion in support of
South Africa’s sustainable development that
benefits our nation.
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8
mission
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Advance innovation of clean energy
solutions and rational energy use that
effectively supports South Africa’s national
energy mandate and transition towards
a sustainable, low carbon energy
future.
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mandate
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The National Energy Act, 2008 (Act No.
34 of 2008), Section 7 (2) provides for
SANEDI to direct, monitor and
conduct energy research and
development as well as undertake
measures to promote energy efficiency
throughout the economy.
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the south african energy
development institute’s
strategic contribution
3
SANEDI’s role and goals have been defined in direct support of
the energy policy and climate mitigation landscape
3.) Foster a culture of greater efficiency and more
rational use of energy
2.) Accelerated transformation to a less energy and
carbon intensive economy
LTMS: Peak
2024: LTMS
550Mt CO2 ‘cap’
2025: 42 % emission
reduction commitment
(Copenhagen)
IRP 2018
IRP 2016
IRP 2014
EE Strategy Target date
2015
275 Mt CO2 ‘owned’ by energy sector (IRP 2010)
IRP 2020 + 34% emission
reduction commitment
(Copenhagen Pledge)
2011
RE White paper Target date
IRP 2012
COP 17, National EE Strategy
Review process, IEP 9date)
1.) Enable well Informed and high confidence energy
planning, decision-making and policy development.
2020
2025
275 Mt CO2 to be allocated to remainder of economic sectors
2030
LTMS: Plateau
2040
2035
LTMS: Decline
Time (years) and prominent milestones in the energy policy and climate mitigation landscape
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3 strategic orientated goals have been identified for realising
SANEDI’s vision
Strategic outcome
orientated goal 1
Strategic outcome
orientated goal 2
Strategic outcome
orientated goal 3
Enable well Informed and
high confidence energy
planning, decision-making
and policy development
Accelerated transformation
to a less energy and carbon
intensive economy
Foster a culture of greater
efficiency and more
rational use of energy
Actively stimulate ‘green’ energy
industry development, capacity
building, skills development and job
creation to support the immediate
concern of job scarcity and also
support economic development and
the critical transformation of the
South African economic
structure/activities to less energy and
carbon intensive activities during the
transition period identified by national
commitments*.
Actively influence consumer
consciousness and behaviour to
improve the energy-efficiency of
existing economic activity and energy
consumption by 10% during the shortterm (period of supply constraints) and
to contribute to achieving a energy
resource efficient society (described
by energy intensity levels on par with
international benchmarks) in the
medium to long term (2020).
Develop a technical knowledge base
of cost effective, proven (low risk)
alternative, clean energy solutions and
technologies to (1) adequately inform
energy planning, policy development
and decision-making and (2) enable
the country’s transition to a
competitive, low carbon economy
within the relevant planning horizon*.
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Incorporating 6 priority programmes that were defined in
support of these goals
Strategic outcome
orientated goal 1
Strategic outcome
orientated goal 2
Strategic outcome
orientated goal 3
Enable well Informed and
high confidence energy
planning, decision-making
and policy development
Accelerated transformation
to a less energy and carbon
intensive economy
Foster a culture of greater
efficiency and more
rational use of energy
Programme 1:
Applied energy research
Programme 3:
Low energy and carbon intensity
innovation cultivation
Programme 6:
Energy efficiency programme
Programme 2:
Data and knowledge
management
Programme 4:
Green industry capacity building
and development
Programme 5:
Working for energy programme
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The programmes also align with the 2 main focus areas identified
by the SANEDI business case
Energy
Efficiency Focus
Programme 1:
Applied energy research
Energy Research and
Development Focus
✔
Programme 2:
Data and knowledge
management
✔
✔
Programme 3:
Low energy and carbon intensity
innovation cultivation
✔
✔
Programme 4:
Green industry capacity building
and development
✔
✔
Programme 5:
Working for energy programme
✔
✔
Programme 6:
Energy efficiency programme
✔
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…and aim to directly support the priorities of the Department of
Energy
Departmental Programmes
Minister’s KPIs
(5-year Strategic Plan 2011/12 - 2015/16)
(Government Outcomes), 27 May 2011)
Programme 2
Progamme 3
Programme 1:
Applied energy research
✔
✔
Programme 2:
Data and knowledge
management
✔
✔
Programme 3:
Low energy and carbon intensity
innovation cultivation
✔
Programme 4:
Green industry capacity building
and development
✔
OUTCOME 6
✔
OUTCOME 10
✔
✔
✔
✔
Programme 5:
Working for energy programme
✔
Programme 6:
Energy efficiency programme
✔
✔
✔
✔
Programme 2 (Hydrocarbons and Energy Planning): Integrated energy planning to promote the sustainable use of energy resources by developing appropriate policies and regulations that
promote the efficient use of petroleum products, coal, gas and renewable energy sources; Programme 3 (Electricity, Nuclear and Clean Energy): Monitor developments in the electricity,
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nuclear and clean energy sectors. Improve and implement appropriate policies governing these sectors. Promte universal access to electricity by the broader South African Population.;
OUTCOME 6: An efficient, competitive and responsive economic infrastructure network; OUTCOME 10: Environmental assets and natural resources that are well protected and continually
These specific programmes were prioritised because of their
contribution to reducing the carbon intensity of the economy
CO2 intensity of
the economy
The result of a
combination of efforts
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=
Energy intensity
• Improved energy
efficiency
• Optimal energy
application / rational use
of energy
• Green industry growth
(shift away from energy
intensive activities)
• Advanced metering
(smart grids and
infrastructure)
South African Energy Development Institute
×
CO2 intensity of
energy supply
• Increased reliance on
renewable / clean energy
• Mitigation of CO2 from
existing sources
• Transportation fuels with
higher biogenic content
• Optimal supply
infrastructure (smart
grids)
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SMART strategic objectives describe the outputs expected from
the programmes (…1)
Programme 1:
Applied energy research
Programme 2:
Data and knowledge
management
Programme 3:
Low energy and carbon intensity
innovation cultivation
Programme 4:
Green industry capacity building
and development
Strategic Objective 1.1: Knowledge creation in the energy sector in support of policy direction
Develop a portfolio of demonstrable, cost-effective, sustainable energy options with an emissions intensity of
less than 40 gCO2/MJ that have the potential to increase the low carbon content of the South African energy
mix by 5% (225 million GJ/a) by 2020) .
Strategic Objective 1.2: Intelligent energy systems infrastructure
Finalise an accepted, comprehensive National Smart Grid 2030 vision with tangible system benefits, and define
SANEDI’s role and mandate towards realising this vision by 2012. Suggested contributions may be structured as:
a 20% reduction in South Africa’s electricity peak demand, 100% system availability for critical loads, 40%
improvement in system efficiency and asset utilization (to achieve a load factor of 70%) and incorporate 9%
electricity capacity from distributed and renewable energy sources.
Strategic Objective 1.3: Optimised energy research investments
Consolidate energy related public spend for research and innovation and pursue increased overall energy
research investments (nationally and internationally) to correspond with the goal of 1,5% of GDP
(R5.6bn/annum for the energy sector) by 2014 of which 30% (R1 864 800 000/annum) (i.e. 0.5% of GDP for the
energy sector) to be invested from public funds.
Programme 5:
Working for energy programme
Programme 6:
Energy efficiency programme
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SMART strategic objectives describe the outputs expected from
the programmes (…2)
Programme 1:
Applied energy research
Programme 2:
Data and knowledge
management
Programme 3:
Low energy and carbon intensity
innovation cultivation
Programme 4:
Green industry capacity building
and development
Strategic Objective 2.1: Establishment of a Technology Management Centre
Establish a highly competent, independent technology management centre by 2017 that can adequately
support energy related analysis and decision-making and tracking of progress indicators towards a low carbon
economy (refer equation A, Section 8 of this plan)
Strategic Objective 2.2: Develop and maintain a comprehensive, central data repository with high quality
data relating to the areas of SANEDIs focus
Compilation and maintenance of a credible and current energy dataset to the adopted IEA standard at an
adequate level of disaggregation for the areas and indicators directly under SANEDIs influence (Energy
Efficiency, Renewable Energy, Clean Carbon Technology and Clean Oil and Gas, Carbon Capture and Storage,
Smart grids, Working for Energy, Tax incentives) by 2013 and thereafter maintain as current and continue to
develop in response to national requirements.
Strategic Objective 2.3: Enhanced access to energy information and knowledge
Provide appropriate (in a suitably controlled manner to protect confidentiality commitments) access and
disseminate available energy data to a broad range of users as soon as possible and sustained over the planning
horizon.
Programme 5:
Working for energy programme
Programme 6:
Energy efficiency programme
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SMART strategic objectives describe the outputs expected from
the programmes (…3)
Programme 1:
Applied energy research
Programme 2:
Data and knowledge
management
Strategic Objective 3.1: Increase the share of demonstration and commercialisation phase projects in
SANEDI’s portfolio
Increase the focus on innovation and demonstration by increasing the share of projects in the portfolio that are
in the Demonstration and Commercialisation phase to 40% (currently 32% of the portfolio by number of
projects and spend) by 2017.
Strategic Objective 3.2: Facilitate technology innovation progress to commercialisation
Transfer one fully-fledged, commercially viable concept for every R500 million spent on Research and
Development to TIA or EDC or similar for active business incubation and deployment.
Programme 3:
Low energy and carbon intensity
innovation cultivation
Programme 4:
Green industry capacity building
and development
Programme 5:
Working for energy programme
Programme 6:
Energy efficiency programme
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SMART strategic objectives describe the outputs expected from
the programmes (…4)
Programme 1:
Applied energy research
Programme 2:
Data and knowledge
management
Programme 3:
Low energy and carbon intensity
innovation cultivation
Programme 4:
Green industry capacity building
and development
Strategic Objective 4.1: Growing the pool of active and productive researchers, technicians and support staff
Actively contribute to strengthening research leadership and capacity and contribute to job creation and skills
development by creating 100 additional research positions (i.e. ~25% increase for the sector) (including
research chairs, assistant research chairs, fellowships as well as internal research positions) by 2017.
Strategic Objective 4.2: Facilitate the development of a skilled workforce that meets the needs of the
changing economy
Mobilise and coordinate an industry-wide skills development initiative (which should include, amongst others,
establishment of a reference and support group for green jobs and skills and a key occupations review process)
for energy efficiency and renewable energies that leverages and complements existing frameworks and
structures and resolve identified gaps.
Strategic Objective 4.3: Promote job creation through innovation
Deliver at least 1 permanent employment position for every R1,5 million spent on technology innovation
(demonstration and commercialisation innovation stages) until 2017.
Programme 5:
Working for energy programme
Programme 6:
Energy efficiency programme
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SMART strategic objectives describe the outputs expected from
the programmes (…5)
Programme 1:
Applied energy research
Strategic Objective 5.1: Demonstrated increase in employment levels within participating communities.
Create 400 new full time employment opportunities and 120 000 person days of temporary employment during
the five years until 2017 and hence contribute 0.01% (equivalent to 500 new jobs) towards the 5 million new
jobs by 2020 targeted by the new growth path.
Programme 2:
Data and knowledge
management
Strategic Objective 5.2: Rural clean energy production and provision
Establish clean energy and electricity production/generation and supply facilities equivalent to 5MWp and
25 GWh/a within (rural) communities by 2017 with all associated economic, social and sustainability benefits.
Programme 3:
Low energy and carbon intensity
innovation cultivation
Strategic Objective 5.3: Demonstrated Energy Management opportunities
Develop and demonstrate the rural application of energy efficiency technologies to deliver energy savings of
0.5 MW and 1.5 GWh/a by 2017 with all associated economic and environmental benefits.
Programme 4:
Green industry capacity building
and development
Programme 5:
Working for energy programme
Programme 6:
Energy efficiency programme
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SMART strategic objectives describe the outputs expected from
the programmes (…6)
Programme 1:
Applied energy research
Programme 2:
Data and knowledge
management
Programme 3:
Low energy and carbon intensity
innovation cultivation
Programme 4:
Green industry capacity building
and development
Programme 5:
Working for energy programme
Programme 6:
Energy efficiency programme
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Strategic Objective 6.1: Establish NEEA as National Champion for Energy Efficiency
Define NEEA’s role to play a central role and for an optimal impact on South Africa’s energy culture; develop
and implement a plan for NEEA to transition into fulfilling this role comprehensively by 2017.
Strategic Objective 6.2: Energy Efficiency improvements in Public Facilities
Target an annual reduction in energy consumption by 250 GWh and GHG emissions by 250 tCO2e in public
facilities by 2017.
Strategic Objective 6.3: Create large-scale awareness of energy efficiency and market demand for energy
efficient and green technologies
Improve general awareness levels** across all sectors by 5% by 2015 relative to 2012 (in support of equation A,
term 1, Section 8 of this plan).
**define awareness scope i.e. recognition of the need to save energy, how to save energy, etc .
Strategic Objective 6.4: Create market demand for energy efficient and green technologies
Achieve a 10% real increase (over and above existing trends) in sales of energy efficient and green technologies
by 2017.
Strategic Objective 6.5: Support the Income Tax Amendment Act section 12i and 12 l relating to the tax
rebate for energy efficiency improvements
Establish the capacity to support the certification of energy savings for tax reduction claims .
Strategic objective 6.6: Management of the EEDSM hub and oversight of transition of Hub to CORD
Continue the Energy Efficiency Hub initiative to strengthen energy related researches, human capacity
development, and market transformation and enterprise development initiatives
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Linking SANEDI strategy to
climate change response strategy
4
2035 Decline
commitment for carbon
emissions
2024 Plateau
commitment for carbon
emissions. 275 Mt CO2
(50%) ‘owned’ by
energy sector (IRP
2010)
2020 Planning horizon
current capacity
expansion programme
(IRP 2010)
2020 New Growth Path
target for 5 million jobs
and 15% less
unemployment
Climate Change
Response Strategy
detail plans ready
Within 2 years of
publication of Strategy
Further Urgency: Climate Change Response Strategy requires
detailed plans completed within 2 years of Strategy publication
The strategy quantifies energy generation alone to produce around 40% of GHG
emissions in South Africa (vs 50% for which the IRP 2010 took responsibility)
Plans to be completed within 2 years after the publication on the Climate Change
Response Strategy includes:
2024: LTMS
550Mt CO2 ‘cap’
2025: 42 % emission
reduction commitment
(Copenhagen)
2020
2025
IRP 2018
4) Roll-out of downscaling methodology with appropriate M&V safeguards.
IRP 2016
IRP 2014
EE Strategy Target date
2015
275 Mt CO ‘owned’ by energy sector (IRP 2010)
2
3) A methodology to downscale climate information
and comprehensive impact
assessments to provinces and municipalities.
IRP 2020 + 34% emission
reduction commitment
(Copenhagen)
2011
RE White paper Target date
2) Strategy to continuously update and maintain the South African Risk and
Vulnerability Atlas (SARVA).
IRP 2012
COP 17, National EE Strategy
Review process, IEP (date)
1) 10 year Global Change Research Plan for South Africa.
275 Mt CO2 to be allocated to remainder of economic sectors
5) Ensure all National Communications submitted as part of UNFCCC
commitments contain the most up to date modeling results and risk and
impact assessments.
2030
2035
LTMS: Peak
LTMS: Plateau
2040
LTMS: Decline
Time (years) and prominent milestones in the energy policy and climate mitigation landscape
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Climate Change Response Strategy Objectives and Key Elements
Objective 1: Make a fair
contribution to the global effort
to stabilise GHG concentrations
in the atmosphere at a level that
avoids dangerous anthropogenic
interference with the climate
system within a timeframe that
enables economic social and
environmental development to
proceed in a sustainable manner.
Objective 2: Effectively manage
inevitable climate change impacts
through interventions that build
and sustain South Africa’s social,
economic and environmental
resilience and emergency
response capacity.
Key Element 1 - Setting the Performance Benchmark: Using a National GHG
Emissions Trajectory Range to measure the collective outcome of all mitigation
actions will be measured.
Key Element 2 - Identifying desired sectoral mitigation contributions: Defining
desired emission reduction outcomes for each significant sector and sub-sector
of the economy based on mitigation potential and options, science, evidence and
cost and benefits assessment.
Key Element 3 - Defining Carbon Budgets for significant GHG emitting sectors
and/or sub-sectors: Adopting a carbon budget approach to provide flexibility and
least-cost mechanisms for companies at company level desired emission
reduction outcomes.
Key Element 4 - Mitigation Plans: Requiring companies and economic sectors or
sub-sectors to prepare and submit mitigation plans to achieve the desired
emission reduction outcomes.
Key Element 5 - The use of different types of mitigation approaches, policies,
measures and actions: Developing and implementing a wide range and mix of
approaches, policies, measures and actions that optimise outcomes, job creation
and other sustainable developmental benefits.
Key Element 6 - Using the Market: The deployment of a range of economic
instruments to support the system of desired emissions reduction outcomes,
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pricing of carbon and economic incentives, use of emissions offset or
emission reduction trading mechanisms.
Key Element 7 - Monitoring and Evaluation: A national system of data collection
to provide detailed, complete, accurate and up-to-date emissions data in the form
of a GHG Inventory and a Monitoring and Evaluation System.
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Linking Climate Change Response Strategy Key Elements with
SANEDI Strategic 5-year plan priority programmes
Climate Change Response Strategy
SANEDI Strategic 5-year plan
Goal 1: Enable well Informed and high confidence energy
planning, decision-making and policy development
Key Element 1: Setting the Performance Benchmark
Key Element 2: Identifying desired sectoral mitigation
contributions
Key Element 3: Defining Carbon Budgets for significant
GHG emitting sectors and/or sub-sectors
Programme 1:
Applied energy research
Programme 2:
Data and knowledge management
Goal 2: Accelerated transformation to a less energy and
carbon intensive economy
Programme 3:
Low energy and carbon intensity innovation cultivation
Key Element 4: Mitigation Plans
Key Element 5: The use of different types of mitigation
approaches, policies, measures and actions
Programme 4:
Green industry capacity building and development
Programme 5:
Working for energy programme
Key Element 6: Using the Market
Key Element 7: Monitoring and Evaluation
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Goal 3: Foster a culture of greater efficiency and more
rational use of energy
Programme 6:
Energy efficiency programme
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SANEDI’s programmes directly support the mitigation plans and
approaches identified in the Climate Change Response Plan
Option 2: Significant upscaling
of energy efficiency applications
EE Hub + smart Grids
Option 3: Promoting transportrelated interventions
Green transport +smart grids
Green transport
Carbon Capture &
Storage research
Carbon Capture &
Storage demonstration
Option 4: Carbon capture and
storage in the synthetic fuels
industry
Programme 4:
Green industry
capacity building and
development
Programme 3:
Low energy and
carbon intensity
innovation cultivation
Clean energy pilots and
demonstration projects
Programme 6:
Energy efficiency
programme
Clean energy solutions +
carbon capture and storage
+smart grids
Programme 5:
Working for energy
programme
Option 1: Shifting to lowercarbon electricity generation
options
Programme 2:
Data and knowledge
management
PRIORITY MITIGATION OPTIONS
(identified and listed in Section 6.3
of Climate Change Response Plan)
Programme 1:
Applied energy
research
SANEDI PROGRAMMES
RE part of
Programme
Small-scale
RE solutions
EE part of
Programme
NEEA
Option 5: mitigating non-energy
emissions in agriculture and
land-use
Option 6: Transitioning society
and economy to more
sustainable consumption and
production patterns.
Smart grids
South African Energy Development Institute
Directly supported in SANEDI plan
Directly supported in SANEDI plan
SANEDI furthermore plays a leading role in three of the
identified near-term priority flagship programmes
8.1 The Climate Change Response Public Works Flagship Programme
Working for Energy
8.4 The Energy Efficiency and Energy Demand Side Management Flagship
Programme
NEEA and specifically the Public Buildings Energy Efficiency Programme
8.7 The Carbon Capture and Sequestration Flagship Programme
SANERI’s Carbon Capture and Storage
South African Energy Development Institute
financing the strategic plan
5
3 operation scenarios where considered for SANEDI, each with specific
investment requirements, however scenario 4 is what has emerged by
default and not by design
Scenario 1
Rapid transition and full
operationalisation as
independent entity with
programme
implementation in parallel
Scenario 2
Rapid transition and full
operationalisation as
independent entity with
skeleton programme only
Scenario 3:
Focussed programme
implementation with
gradual transition to
independence
Scenario 4
SANEDI in survival mode
Year 1 2012/13
R 255 192 831
R 154 712 387
R 136 579 179
R 50 110 000
R1 578 334 991
R 2 768 474 563
R 264 193 372
Total 5 year budget 2012/13 – 2016/17
R 2 794 851 532
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In addition to cost considerations, each scenario also has
associated delivery implications
Scenario 1:
Rapid transition and full
operationalisation as
independent entity with
programme implementation in
parallel
Scenario 2
Scenario 3:
Rapid transition and full
Focussed programme
operationalisation as
implementation with
independent entity with
gradual transition to
skeleton programme only
independence
Scenario 4:
SANEDI in survival mode
Benefits
• Full programme benefits and
contribution achieved (as per this
plan)
• Rapid establishment of SANEDI as
independent entity
• Financial commitment for year
1 is reduced
• The budget requirement
for year 1 is less onerous
than scenario 1
• Full programme benefits
and contribution can be
achieved
• SANEDI sustained until
funding is made available
Considerations
• Significant financial
commitment required.
• Continuity of operation to
receive priority attention
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• Programme benefits as
• Slow transition to
presented in this plan
independence
moves out with one year
• Opportunities may be lost
• Synchronisation with IRP
and other planning
processes impeded
• Existing and planned
partnerships and initiatives
may be at risk
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• SANEDI is operating in
survival mode
• Keeping the lights burning
32
thank you
6