BRIEFING ON ENERGY EFFICIENCY AND ENERGY
SAVINGSTO THE PARLIMENTARY PORTFOLIO COMMITTEE
ON ENERGY
10 AUGUST 2011
1
Energy Efficiency and Demand Side
Management
•
This programme is done in terms of Division of Revenue Act (DoRA),
Schedule 6 & 7
– Schedule 6: EEDSM transfer of grants directly to the participating
municipalities and Schedule 7: Transfer of grants to Eskom as the
implementing agent
•
Schedule 6 include the retrofitting of public lights (street and traffic) and
installation of solar water heaters
•
Solar Water Heating Programme: 1 million Solar Geysers by 201 4
– This programme is funded through the fiscal allocation and tariff.
–
The fiscal phase of the programme is implemented in the following
municipalities: Tshwane, Naledi, Sol Plaatjie, Umsobomvu, Musina
whilst the rebate programme by Eskom and other organisations is
spread across the country.
Rebate Programme Installations
Presentation outline
PROVINCIAL INSTALLATIONS: 01 April 2010 - 30 June 2011
25000
21106
20000
16796
15552
15000
10736
10000
7567
No of Installations
5000
3398
374
280
774
0
3/16/2016
-Confidential-
3
SWH Rebate Level Revision
•
•
The future of rebate programme is persistently threatened by the diminishing
Rebates Fund.
The above constraint prompted Eskom to review the Rebate Progamme as
follows:
–
On 11 April 2011 Eskom announced the downward revision of the
rebate levels as shown on the table below:
Presentation outline
–
The aforementioned new rebate values were to be applicable to all
claims received by Deloitte later than 17h00 on the 29th of April 2011.
-Confidential-
4
SWH Rebate Level Revision cont’
3/16/2016
–
There are no changes on current rebate values that are lower than
the new maximum values
–
For ease of planning and placement of orders by industry
participants, Eskom provides weekly updates concerning the
availability of funding for the rebate programme.
–
Further Eskom has warned that the rebate programme will cease
once the funds for the current financial year have been exhausted.
–
Despite the reduction in rebate levels as well as the constant
communication on the remaining rebate fund, the rate of installations
continued to increase to the extent that available funds for 2011/12
were depleted by the end of June 2011.
–
In order to avoid causing an upset in the programme, the Eskom
Integrated Demand Management (IDM) unit applied (within Eskom)
for additional funding but further saw it necessary to reduce the
number of installed systems per supplier in order to bring down the
rate of fund depletion.
Presentation outline
-Confidential-
5
SWH Rebate Level Revision cont’
–
–
–
3/16/2016
The reduced installation rates per supplier are effective from 01 July
2011 to 30 September 2011 (or until further notice).
Based on each supplier’s average installations over the past three
months, participants of low pressure systems are now limited to a
maximum number of claims per months as shown on the table below:
Concerns raised on the proposed table are being attended to by DoE
and Eskom
Presentation outline
-Confidential-
6
SWH Rebate Level Revision cont’
3/16/2016
–
Participants of high pressure systems are now limited to a
maximum of 200 claims per months.
–
No new applicants/participants are being registered during this
period.
–
On 30 June 2011 Eskom proposed developing a more structured
approach to the rebate fund allocation.
–
This will be done in consultation with industry participants, and a
workshop has been scheduled for the 3rd of August 2011 in this
regard.
–
The above workshop will largely focus on the fund allocation to
various market sectors, conditions of participation and the
disbursement process.
Presentation outline
-Confidential-
7
FISCUS FUNDED PROGRAM STATUS AS OF 8
MAY 2011
Municipality
Project
Start date
Planned
completion
date
Approved
project
Value
Planned
Installations
MW
Target
GWh
Target
Actual
Installed
Naledi (i.e. Stella and
Vryburg)
01/11/2010
30 March
2011
R54,450
m
7837
2.2
5.9
600
Sol Plaatjie
01/11/2010
30 Sept
2011
R54, 450
m
7837
2.2
5.9
2305
Tshwane
01/11/2010
30 June
2011
R74
15094
4.2
11.9
15094
R182,90
0m
30868
8.6
22.7
12935
Total
Jobs created per municipality: Sol Plaatjie – 156 persons
appointed; Naledi: 9 persons; Tshwane: 130 persons with a Total
8
of 295
Implementation status breakdown for Tswhane
– completed June 2011
Township
Allocated
Appointed ESCo
Installations
Actual
Installations
Verified MW
Complete Audited Target
Installations
Garankuwa Ext 20,21
Citrine
2440
2303
2303
Garankuwa Ext 25
Citrine
1748
1369
1369
Mabopane Block U
Citrine
812
1328
1328
Total
5000
5000
5000
Total
Garankuwa View
SASSA
2027
2027
2027
0.174 (0.036
GWh)
Garankuwa Ext 23
SASSA
1361
1361
1361
Winterveldt
SASSA
1706
1706
1706
Total
5094
5094
5940
0.147 (0.036
GWh)
100%
9
Implementation status breakdown for Tswhane
– completed June 2011
Township
Appointed
ESCo
Actual
Complete
Allocated
Installation Audited
Installations
s
Installations
Mabopane CV & Botsha
Intisolar
2130
2130
2130
Nelmapius X3
Intisolar
1084
1084
1084
Nelmapius X4
Intisolar
1786
1786
1786
Total
5000
5000
5000
Verifie
d
MW
Target
Verified
GWh
Target
0.176
0.037
0
0
10
Implementation status breakdown for Naledi (on hold) and
Sol Plaatjie – Update till July: to be completed Sept 2011
Township
Appointed
ESCo
Actual
Complete
Allocated
Installatio Audited
Installations
ns
Installations
MW
Targe
t
GWh
Target
Outstanding
Installations
Naledi Municipality
Stella
JV Clean
Heat &
KEAP
399
399
389
0
0
Vryburg
JV Clean
Heat &
KEAP
7438
963
942
0
0
Total
7837
1362
1331
0
0
6475
Sol Plaatijie
Galeshewe Thermoplus 7837
6682
6682
1155
11
Project 1
Fiscal Energy Efficiency and Demand Side Management
(EEDSM) Programme
Start: 1/4/ 2011
Finish: 31/3/2012
Deliverable
Completion
date
1.
30 /6/ 2012
a.
EEDSM programme performance
report: Electricity savings from
retrofitting of public lights (street and
traffic) and installation of solar water
heaters
Project monitoring workshops with
municipalities and Eskom
Monthly
Comment/Status
2011/12 allocations with municipalities and Eskom
confirmed. Workshop with municipal and Eskom
officials was conducted to develop work plans and
reporting system.
Performance Reports for schedule 6&7 have been
forwarded to National Treasury by 15 June 2011. A
meeting to discuss the draft EEDSM grant phase-out
report with NT was held on the 8 July 2011. The
Department together with National Treasury is
organizing workshop, for the 11 August 2011, with
Municipalities, SALGA, Eskom, SANEDI and other
relevant departments to discuss the EEDSM grant
phase-out report,
M&V process for the 2010/11 financial year is being
finalised to confirm the actual energy savings.
2 Develop project performance Monitoring
tools
30 /6/ 2012
EEDSM monitoring and performance evaluation
indicators have been developed in consultation
with municipalities. The tools will be used for
monitoring and reporting for the current financial
12
year.
Project 1
Fiscal Energy Efficiency and Demand Side Management
(EEDSM) Programme Cont’
•
The EEDSM monitoring and performance evaluation tools include the
following:
– Project progress and expenditure reporting templates
– EEDSM performance indicators
 Efficient utilisation of funds i.e. analysis of monthly, quarterly and
annual expenditure;
 Energy efficient lighting technologies and Solar Water Heaters
installed ;
 Energy savings (based on the Measurement and Verification
process implemented after completion of the project);
 Enhanced energy security (i.e. MW saved);
 Carbon emissions saved;
 Jobs created; and
 Skills development and capacity building
Project 1 (cont...)
Fiscal Energy Efficiency and Demand Side Management
(EEDSM) Programme
Start: 1/4/ 2011
Finish: 31/3/2012
Deliverable
Completion date
3. Provision of project
management services (M&V;
M&E) of the Public Building
retrofit programme
31 /3/ 2012
Comment/Status
The scope to develop and implement develop building
retrofit guidelines and building energy performance
assessment and certificates has started in collaboration
with the other key departments such as DPW, CIDB and
IDT.
This process has been established under the development
energy efficiency monitoring and reporting project.
M&V will form part of this process once the scope of work
for building energy performance assessment has been
completed.
14
Project 2
Industrial Energy Efficiency Project
Start: 1/4/ 2011
Finish: 31/3/2014
Deliverable
Completion date
1. Reviewed
Energy
Efficiency
Strategy
document (i.e.
Industrial energy
efficiency project,
co-financed by
Government and
UNIDO)
March 2012
Comment/Status
The review of the National Energy Efficiency Strategy started in
September 2010. Several workshops were held with stakeholders in
Transport Sector, Residential Sector, Industry Sector and Building
Sector on 20 June, 22 June, 24 June 2011 to discuss the draft raft
document since the review started. The areas raised in these
workshops include energy savings potentials, revised and
disaggregated sectoral targets beyond the current 2015 period which
indicated that additional work still is needed to close the identified
gaps.
Based on additional work still to be covered in integrating the
stakeholder comments (including gazetting for stakeholder
consultation), it was agreed to complete the deliverable in Sept 2011
with the gazetting process for public consultation expected to be
finalised by Dec 2011.
2. Implementation
of the Industrial
Energy efficiency
project
31 March 2014
a. Facilitate for the
establishment
of a PSC.
b. Appointment of
project team
May 2010
(done)
Oct 2010 (done)
The project has so far implemented capacity building and training on
issues of energy management and system optimisation for Industry
Energy Managers. Four training energy centres in Pretoria, Durban,
and Cape Town are in the process being established with the energy
management system and standard development process underway.
Both the Ministers of Trade and Industry and Energy will launch the
programme as a build up event towards COP 17. Preparations are
15
underway.
Project 2
Industrial Energy Efficiency Project Cont’
Start: 1/4/ 2011
Finish: 31/3/2014
Deliverable
Completion date
Comment/Status
September –
October 2010 (done)
The Training Service Provider was appointed in July
2010.
2. Implementation of the
Industrial
Energy
efficiency project
c. Procurement of a Service
Provider ( for the
development of Capacity
Building / training manual)
d. Development
of
the
Capacity
Development
manual
for Industry
Energy Managers
June 2010 February 2011
(done)
8 sets of Training manuals (i.e. compressed air
introduction, compressed air system optimisation,
pumping systems optimisation, Steam systems
optimisation, Energy Management Systems
implementation intro) were developed from September August 2010.
Training on various Industrial Energy Efficiency modules
(was done from 1 August 2010 to 1st February 2011.
Report on training is being finalised.
e. Industrial Energy Efficiency
managers workshops
16
Energy Efficiency Target Monitoring
Project
• This is a collaboration between the Department of Energy and the Swiss Development
Corporation which strengthen the National Policies and implement pilot projects at
Municipalities to address operational matters on energy efficiency.
• The projects has two phases: Phase 1 is at the Department of Energy addressing policy
matters and phase two is led by SALGA:
• The pilot projects will implemented in the following municipalities:
– King Dali Ndyebo Municipality
– Rustenburg Municipality
– Polokwane Municipality
– Sol Plaatjie Municipality
– Mbombela Municipality
Project 3
Energy Efficiency Target Monitoring
Start: 1/04/ 2011
Finish: 31/3/2014
Deliverable
Completion date
1. Institutional capacity on
energy efficiency target
monitoring in place
a. Capacity Assessment
b. Assistance with
Recruitment
Procedures
c. Leadership and
Networking
31 March 2014
d. Knowledge sharing
e. Communication
Structures (IT Library,
Website)
f. Sourcing best practice
20 Sept 2011
31 Dec 2011
31 Oct 2011,
31March2012,
31 Dec 2011
Ongoing
Comment/Status
The first tendering phase for the procurement of the
Energy Efficiency Target Monitoring Team has been
completed. This process included the call for
Expression of Interest from suitable Consultants to
submit their profiles and indicate their capabilities to
execute the project. Four Service Providers have been
shortlisted, and requested to submit a full project
proposal by 27 July 2011. A process to select a suitable
Service Provider is underway. In addition, consultation
with Building, Industry and energy sector players is
underway. The stakeholder consultation is to confirm
energy efficiency indicators and measures to be
considered for the Monitoring Methodology Handbook.
Inter-departmental coordinating committee established
to provide guidance and ensure easy supply of energy
efficiency information and data within the public sector.
Once the above is completed, the next activities
include the building energy performance assessment
and development of certificates; assessment and
review of the legal and policy framework; establishment
18 data
of financial framework; development of EE
collection protocol and tools; and establishment of
Project 3 (cont...)
Energy Efficiency Target Monitoring
Start: 1/04/ 2011
Finish: 31/3/2014
Deliverable
2. Legal and financial
frameworks
a. Legal framework and
regulations (data
supply and handling)
b. Policy/regulations
developed at local
level (supply of data)
c. Assessment of
Financial Schemes to
sustain the system
d. Design Financial
Schemes
Completion date
30 Sept 2011
31 Dec 2011
30 Sept 2011
Comment/Status
A DoE internal Technical Working Group
(Clean Energy and Energy Planning) has
also been established to provide guidance on
the development of the monitoring system to
ensure alignment with the Integrated Energy
Planning process.
The committee developed
a process to
assess the regulatory and financial framework
requirements as well as data collection
protocols for the EE target monitoring.
31 March 2013
This process includes the development of the
energy efficiency activity data collection
guidelines, scope for the assessment of the
legal and regulatory framework including a
process to adopt Energy Performance
Certification for the Building Sector.
19
Project 3 (cont....)
Energy Efficiency Target Monitoring
Start: 1/04/ 2011
Finish: 31/3/2014
Deliverable
2. Legal framework , regulations,
Finance Options
e. Establishment of EE Strategy
for implementation at local
government
f. Design and establishment of
the target monitoring system
g. Bench marks and best
practice tools on energy
efficiency target monitoring
Completion date
31 March 2013
31 March 2013
31 March 2014
Comment/Status
The scope of work to localise the
implementation of the energy efficiency
strategy in local government has been
defined.
Terms of Reference are to be developed
to procure the services of an Expert to
complete the status quo report by August
2011.
The status quo analysis will
include analysis of building categories,
appropriate energy efficiency indicators,
energy performance assessment tools,
and institutional arrangements.
20
Energy Efficiency and Demand Side
Management
•
Appliance Standard and Labelling programme
•
Appliance Energy Efficient Standards:
A number of standards have been developed over the past few years. In 2010, the
following standards were finalised: SANS 50242: 2010, electric dishwashers
for – methods for measuring the performance; SANS 50304: 2010, Electric
cooking ranges, hobs, ovens, and grill for household use – methods for
measuring performance; SANS 54511-3: 2010, Air-conditioners, liquid chilling
packages and heat pumps with electrically driven compressors for space
heating and cooling Part 3: Test methods; SANS 60456:2010, Clothes washing
machines for households; SANS
appliances:
62552:2010; Household refrigerating
Project 4
Appliance Standard and Labelling programme
Start: 1/4/ 2011
Finish: 31/3/2012
Deliverable
Completion date
Comment/Status
3. Appliance Energy Efficient Standards
(approved and published)
Ongoing
A process through SABS is underway
to adopt the following standards soon:
SANS/IEC 60379 Methods for measuring
the performance of electric storage waterheaters for household purpose; and
SANS/IEC 60705, household microwave
ovens-methods
for
measuring
performance
The following standards are very close
to publication:
SANS 62087, methods of measurement
of the power consumption of audio, video
and related;
SANS 62301, household electrical
appliances – measurement of standby
power; SANS 50285, Energy efficiency of
electric lamps for household use –
measurement methods.
22
Project 4
Appliance Standard and Labelling programme
Start: 1/04/ 2011
Finish: 31/3/2012
Deliverable
Completion date
Comment/Status
1. GEF funding proposal
- Policy and regulatory
framework for appliance
labeling
- Labelling Specifications
and Minimum Energy
Performance Standards
- Strengthen institutional
capacity for
implementation of
appliance labelling
- Monitoring, verification
and evaluation system
- Public education and
awareness
April 2010 (done) -
The project development document was completed
and submitted to GEF secretariat for evaluation and
approval of full scale implementation budget in July
2011. The implementation of this project depends on
the approval of the requested funds by the Global
Environment Facility (GEF).
2. Stakeholder mobilization
Ongoing
Engagements with the dti, SABS,NRCS and
representatives from the industry to facilitate the
implementation of this programme once funding is
approved have started.
23
Project 5
EE Communications Strategy and Campaign
Start: 1/04/ 2011
Finish: 31/3/2012
Deliverable
Completion date
Energy efficiency campaign
Strategy using various
media platforms
31 March 2012
Comment/Status
Draft Strategy was completed in May 2011. This will be the
basis of a joint company between government, business,
industry and civil society. Consultation process on the Energy
Efficiency Communication Strategy has started since June
2011.. It has been presented to NEDLAC and awaiting
comments and circulated to all key Departments. Once all the
comments from the constituency and Government at large
have been consolidated it will be routed for approval by the
DG including Cabinet.
This Strategy is to give weight to the National Campaign
including defining roles and responsibilities for all stakeholders
as it is a fact that government can not do it alone.
24
Challenges faced with the roll out of
Energy Efficiency and Demand Side
Management
•
•
•
•
•
•
•
•
Inadequate capacity on Monitoring and Evaluation which result in poor or lack
of reporting by participating municipalities
Availability of activity data to develop energy efficiency indicators and quantify
the energy savings
Inadequate cooperation among energy efficiency stakeholders on data
supply and reporting
Many municipalities have no Energy/Environmental Management Unit to drive
energy efficiency
No connection to households earmarked for Solar Water Heater connections
– water reticulation
Poor water quality in some municipalities and poor structures
Escos not properly equipped to handle the installations which result in poor
workmanship
Limited funding allocated for the programme
Recommendations to the PPC
•
It is recommended that PPC notes:
– progress made on Energy Efficiency and Energy Savings to date
– the allocated funding is not adequate to roll out the programme
– The challenges during the implementation such as water reticulation,
roof structures, poor work which result in delays thereof
– Lack of capacity in in Municipalities to drive the EEDSM programme
which result in non-compliance to DoRA due to poor or lack of
reporting
– The need for alignment in all spheres of government to allow better
coordination
– Lack of adequate skills / expertise within Escos.
Thank you