BRIEFING ON ENERGY EFFICIENCY AND ENERGY SAVINGSTO THE PARLIMENTARY PORTFOLIO COMMITTEE ON ENERGY 10 AUGUST 2011 1

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.

Presentation outline

3-Confidential-04/20/23

Rebate Programme Installations

khanyiso.zihlangu

I would have loved to have this regional spread but Eskom's numbers do not tally at all. My reading of the weekly reports we have been receiving tells me that since the advent of the programme, 132 038 systems have been installed. Yet the latest regional installations indicate a total of 80 039 over the same period. So I suggest that this slide be omitted until I have received clarity from Eskom.


4-Confidential-

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:

– The aforementioned new rebate values were to be applicable to all claims received by Deloitte later than 17h00 on the 29th of April 2011.



SWH Rebate Level Revision cont’

– 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.




– 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




– 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.

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

Total R182,900 m

30868 8.6 22.7 12935

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Jobs created per municipality: Sol Plaatjie – 156 persons appointed; Naledi: 9 persons; Tshwane: 130 persons with a Total

of 295

Implementation status breakdown for Tswhane – completed June 2011

Township Appointed ESCoAllocated Installations

Actual Installations

Complete Audited Installations

Verified MW Target

Garankuwa Ext 20,21 Citrine 2440 2303 23030.147 (0.036 GWh)

Garankuwa Ext 25 Citrine 1748 1369 1369

Mabopane Block U Citrine 812 1328 1328

Total 5000 5000 5000 Total

Garankuwa View SASSA 2027 2027 20270.174 (0.036 GWh)

Garankuwa Ext 23 SASSA 1361 1361 1361

Winterveldt SASSA 1706 1706 1706

Total 5094 5094 5940 100% 9

Implementation status breakdown for Tswhane – completed June 2011

TownshipAppointed ESCo

Allocated Installations



VerifiedMW Target

VerifiedGWh Target

Mabopane CV & Botsha Intisolar 2130 2130 2130 0.176 0.037

Nelmapius X3 Intisolar 1084 1084 1084

Nelmapius X4 Intisolar 1786 1786 1786

Total 5000 5000 5000 0 0

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Implementation status breakdown for Naledi (on hold) and Sol Plaatjie – Update till July: to be completed Sept 2011

TownshipAppointed ESCo

Allocated Installations



MW Target

GWh Target

Outstanding Installations

Naledi Municipality

StellaJV Clean Heat & KEAP

399 399 389 0 0

VryburgJV Clean Heat & KEAP

7438 963 942 0 0

Total 7837 1362 1331 0 0 6475

Sol Plaatijie

Galeshewe Thermoplus 7837 6682 6682 1155

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Project 1Fiscal Energy Efficiency and Demand Side Management

(EEDSM) Programme Start: 1/4/ 2011 Finish: 31/3/2012

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Deliverable Completion date

Comment/Status

1. EEDSM programme performance report: Electricity savings from retrofitting of public lights (street and traffic) and installation of solar water heaters

a. Project monitoring workshops with municipalities and Eskom

30 /6/ 2012

Monthly

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 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

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Deliverable Completion date Comment/Status

3. Provision of project management services (M&V; M&E) of the Public Building retrofit programme

31 /3/ 2012 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.

Project 2Industrial Energy Efficiency Project

Start: 1/4/ 2011 Finish: 31/3/2014

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1. Reviewed Energy Efficiency Strategy document (i.e. Industrial energy efficiency project, co-financed by Government and UNIDO)

March 2012 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

a. Facilitate for the establishment of a PSC.

b. Appointment of project team

31 March 2014

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 underway.

Project 2 Industrial Energy Efficiency Project Cont’

Start: 1/4/ 2011 Finish: 31/3/2014

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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

e. Industrial Energy Efficiency

managers workshops

September – October 2010 (done)

June 2010 -February 2011 (done)

The Training Service Provider was appointed in July 2010.

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.

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

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1. Institutional capacity on energy efficiency target monitoring in place

a. Capacity Assessmentb. Assistance with

Recruitment Procedures

c. Leadership and Networking

d. Knowledge sharinge. Communication

Structures (IT Library, Website)

f. Sourcing best practice

31 March 2014

20 Sept 201131 Dec 2011

31 Oct 2011,

31March2012, 31 Dec 2011

Ongoing

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 of financial framework; development of EE data collection protocol and tools; and establishment of knowledge sharing platforms.

Project 3 (cont...) Energy Efficiency Target Monitoring

Start: 1/04/ 2011 Finish: 31/3/2014

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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

30 Sept 2011

31 Dec 2011

30 Sept 2011

31 March 2013

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.

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.

Project 3 (cont....) Energy Efficiency Target Monitoring

Start: 1/04/ 2011 Finish: 31/3/2014

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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

31 March 2013

31 March 2013

31 March 2014

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.

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 62552:2010; Household

refrigerating appliances:

Project 4Appliance Standard and Labelling programme

Start: 1/4/ 2011 Finish: 31/3/2012

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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 water-heaters 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.

Project 4Appliance Standard and Labelling programme

Start: 1/04/ 2011 Finish: 31/3/2012

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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.

Project 5EE Communications Strategy and CampaignStart: 1/04/ 2011 Finish: 31/3/2012

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Energy efficiency campaign Strategy using various media platforms

31 March 2012 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.

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

Documents

BRIEFING ON ENERGY EFFICIENCY AND ENERGY SAVINGSTO THE PARLIMENTARY PORTFOLIO COMMITTEE ON ENERGY 10 AUGUST 2011 1