LEGISLATIVE MANDATES

PRESENTATION TO THE

PARLIAMENTARY PORTFOLIO COMMITTEE ON ENERGY

ON THEWORKING FOR ENERGY PROGRAMME

PARLIAMENTCAPE TOWN

30 JULY 2013

LEGISLATIVE MANDATES

White Paper on Energy Policy, 1998 SANEDI’s mandate is derived from the authority and obligations set out in the following policies, legislation and constitutional requirements

The SA Constitution , (Act 108 of 1996)

National Energy Act , (Act 34 of 2008)

Strategic Plan of the Department of Energy .

Specific plans, directives and public announcements which reinforces SANEDI’s responsibilities

STRATEGIC OUTCOMES /PROGRAMMES

STRATEGIC OUTCOMES PROGRAMMES

All/Crosscutting 1. Corporate Governance and Administration

Enable well informed and high confidence energy planning, decision-making and support policy* development

2. Applied energy research and demonstration including sub-programmes for: Advanced fossil fuels including Carbon Capture and StorageClean Energy SolutionsSmart GridsGreen TransportWorking for EnergyData and Knowledge Management

Support accelerated transformation to a less energy and carbon intensive economy

Foster a culture of energy efficiency and more rational energy use

3. Energy efficiency programme

STRATEGIC OUTCOME ORIENTATED GOALS-(Cont’d)INNOVATION VALUE CHAIN- STAGES

TECHNOLOGY VALUE CHAINROLEPLAYERS

Source: TIA

WORKING FOR ENERGY PROJECTS

ORIGINS OF THE WORKING FOR ENERGY PROGRAMME

Mandate of the Department of Energy.

Set in a predominantly grid based environment of the National Electrification Programme.

Set to demonstrate the application of renewable energy to address energy poverty in far flung areas

Flows from the Working for Water Programme’s removal of invasive and alien species programme for energy production.

Essential element of job creation drive of Government under the incentivised Expanded Public Works Programme (EPWP).

Targeting the youth, women, people with disabilities.

Focusing in rural areas (and low income peri-urban areas).

MANDATE OF THE WORKING FOR ENERGY PROGRAMMERenewable Energy

The Working for Energy Programme is aimed :– Applied Research

– Research into the availability and sustainability of renewable energy resources in targeted areas (rural areas and low income urban areas);

– Demonstration of Renewable Energy Technology Applications– Biomass to energy initiatives from invasive alien plants and bush encroachment;

– Production of charcoal derived in an environmentally friendly manner from invasive alien plants and grasses;

– Biomass to bioenergy (biogas) derived from agricultural waste for rural and non-municipal commercial application

– Development of mini-grid hybrid and smart grid systems fed from various renewable based resources;

– Mini-hydro systems and run-of-river schemes for non-grid applications.

– Solar powered electricity generation systems for small scale and minigrid based systems.

– Waste to energy from municipal and non-municipal solid waste and sewage treatment facilities;

– Small wind generation for non-grid applications, and

– Other alternative fuel sources for low cost housing, space heating, cooking and water heating.

MANDATE OF THE WORKING FOR ENERGY PROGRAMMEEnergy Saving Initiatives

– Energy management planning and methodology framework for social facilities, homes and SMME businesses, including solar passive design;

– Thermal efficiency and energy management for the development and installation of biomass insulation and other materials for application in poor or rural households, subject to SABS approval;

– Energy management planning methodology and framework for the provision of energy (and water saving technologies, water loss management and leakage monitoring and control as part of energy saving initiatives).

– Research studies for energy poverty eradication, sustainable feedstock provisions and alternative fuel sources for low cost housing’s low carbon space heating, cooking and water heating.

– Working for Energy Outreach

BUDGET OF THE PROGRAMME

Year Budget

2009-2010 R5m

2010-2011 R15m

2011-2012 R25m

2012-2013 0

2013-2014 0

2014-2015 0

2015-2016 0

ORIGINAL WORKING FOR ENERGY PROJECTSIncentivised Projects Until 2012/13

Project Type Location Status

Bioenergy Cluster Eastern Cape (Alice, Fort Cox and Melani Village)

•Fort Cox-Reticulation Incomplete•Melani Village-leaking outlet tank

Bioenergy Cluster Western Cape (Phillipi) •Insufficient Biomas•Unworkable mobile gas transportation system.•Relook at sustainable biomass supply options

Feasibility study on the Greening of Robben Island

Western Cape •No Stakeholder (RIM Council, DAC, DPW, DoE) Agreement.•Ministerial Directive to re-direct funds to schools ands clinics

Bioenergy to Power Bela-Bela •No PPA with Eskom, No Wheeling Agreement•Insufficient revenue to sustain phase 1 and enable phase 2

Carbon Fuel Tablet Pretoria West Power Station Slow Service Provider Response

Concentrated Photo Voltaic (CPV) Plant

Verulam, KwaZulu-Natal •CPV Plant developed and connected to the Ethekwini Municipal Network •Training of UKZN students to install, maintain and service the CPV Plants

CURRENT WORKING FOR ENERGY PROJECTS2013/2014 onwards

Project Type Purpose Location Status

Bioenergy Cluster Repairs Generation and utilisation of biogas for thermal applications

Eastern Cape (Alice, Fort Cox and Melani Village)

•Work In Process•Contracts Signed with Fort Cox College for Repairs and College Students Capacity Building•1 bio-digested digester repair and •Reticulation from 2 bio-digested in the College campus

Bioenergy Cluster Generation and utilisation of biogas for thermal applications

Western Cape (Phillipi)

•Work in ProcessLooking at Options to supply biomass and evacuate biogas produced from 2-bio-digestes.

Greening of Robben Island Reduction in the dependency of diesel for offshore applications

Western Cape •Projects Canned•Fund re-directed to Greening of Schools and Clinics in low income communities

Bioenergy to Power (Bela Bela)

Electricity generation from biogasReticulation of biogas for domestic use

Bela-Bela •Project Challenged•Reticulation to neighbouring settlement is suspended till sustainability of phase 1 is resolved with stakeholders

Melani Village Biogas Expansion

Generation and utilisation of biogas for thermal applications

Melani Village, Eastern Cape

•Project Ongoing•Contracts Signed with University of Fort Hare implementation of project and Capacity Building to science students in the bioenergy field•110 Bio-Digesters contracted

Illembe District Biogas project

Generation and utilisation of biogas for thermal applications

Illembe District , KwaZulu-Natal

•Project Ongoing•26 Bio-Digesters contracted

Mpfuneko Biogas Project Generation and utilisation of biogas for thermal applications.

Mpfuneko, Giyani, Limpopo

•Project Ongoing•55 Bio-Digesters contracted

CURRENT WORKING FOR ENERGY PROJECTS

Project Type Purpose Location Status

Carbon Fuel Tablet Pretoria West Power Station

•Slow Response of the service Provider

Special Ministerial Projects

Greening of Tshireleco High School

Demonstrate renewable energy usage even in urban areas

Galeshewe, Kimberly Project Ongoing•SWH, •Efficient Lighting and• Bio-energy digester

Greening of Rural Schools and Clinics

Demonstrate renewable energy usage even in urban areas

All Provinces Project Ongoing•SWH, •Efficient Lighting and• Bio-energy digester

WORKING FOR ENERGY INITIATIVE(Partnerships)

SANEDI-SDC– Joint Funded Project

– Research into the availability, feasibility and sustainability of renewable energy resources and energy saving measures to address identified energy poverty and proposed interventions.


SANEDI-National Development Agency (NDA) Partnership Contract Signed– Development of a partnership to provide food-energy nexus in public and community based

projects

Project Type Purpose Location/ Province

Waste to Energy Hub Feasibility Study of Using municipal/ non municipal waste to Energy (co-generation)

KwaZulu-Natal Province

Waste to Energy Hub Feasibility Study of Using municipal/ non municipal waste to Energy (co-generation)

Western Cape Province

Greening of Tygerkoof Combined School Utilisation of Renewable and Energy Efficient intervention in Public Facilities

North West Province

Greening of Community Facility Application of Renewable and Energy Efficient intervention in a Community Facilities

Mbashe Village, Amathole DistrictEastern Cape

Renewable Energy and related appliance Production

To produce energy from agricultural waste and development of associated facilities

Ubuhlebezwe MunicipalitySisonke District Municipality KZN

Greening of Thusanang Day Care Centre Application of Renewable and Energy Efficient intervention in a Community Facilities

Gauteng Province

Greening of Agricultural Cooperative Greening of Community Facilities Bojanala District Municipality North West Province

WORKING FOR ENERGY INITIATIVE(Partnerships) Cont’d

Project Type Purpose Location/ Province

Greening of the of the Little Big Soup Cup Community Project

Greening of the Multi Purpose Community Development Facility

LieliesfonteinNorthern Cape

Greening of the of the Sabalele Community

Greening of the Early Childhood Development Facility Eastern Cape

Greening of Agricultural Cooperative Greening of Public Facilities Makhuya Village, Limpopo


SANEDI-Gauteng Department of Infrastructure Development Partnership– Greening of Schools four new schools in Gauteng Province– Greening of the Father Smangaliso Mkhatshwa Youth and Child Centre

Future Partnerships – Greening of refurbished schools– Greening of clinics– Green Transport– Waste to Energy– Solar Roof tops– Fuel Substitution

WORKING FOR ENERGY AWARENESS, CAPACITY BUILDING AND SKILLS DEVELOPMENT

The working for Energy Programme is part of the EPWP, and must fulfil the following objectives: – Promotion and advocacy of green technologies– Skills development– Job Creation– and empowerment of vulnerable groups (Youth, women and people with

disabilities).

In future, the Working for Energy Programme will also look at :– Collaboration with INEP to determine suitable new and renewable energy

options for hot and arid areas such as the Northern Cape; – Green Village Initiatives– Waste to Energy Options– Solar Refrigeration– Solar PV paints

CHALLENGES

Big gap in the budget allocation of the Programme creates a number of challenges– Limited Retentions of staff

– Expansion of staff

– Inability to leverage and form partnerships with organisations in the poverty alleviation space.

Lack of Regional Presence– Small and isolated projects in remote areas need constant and continuous engagement from

the introduction of the concept, through project implementation and project support and maintenance;

– Service providers in remote rural areas need time to be developed, institutional and technical support, training and skills development in order to support and implement the Working for Energy Projects and thus create jobs and sustain themselves.

– Lack of economical suitably qualified technology suppliers in rural areas.

Prohibitive unit cost of intervention in low economies of scale interventions– The unit cost for application of proven technologies in respect of once of unitary projects in

deep rural areas is prohibitive.

– Demonstration project need operational support/ budget due to low returns due to low or no economies of scale

Procurement of High Technology interventions for rural areas attracts tends to attract few and normally expensive service providers– Selection and training of locals to support projects, once established need time and must be

integrated in the procurement process

CONCLUSIONS

There is a need for the Department of Energy to create certainty in SANEDI as to the sustainability of the Working for Energy Programme in terms of funding. – SANEDI need to establish a robust internal team to drive the process– Donor funding and partnerships have their limited role.

Working for Energy will naturally have many small and diverse projects across the country. Its capacity to undertake contract management, procurement management, monitoring and evaluation and post implementation support needs to be underscored.

Working for energy projects have a mix of technology development, demonstration and application. These phases will manifest almost in all projects being implemented.– The work with universities and other research institutions such as:

– Agricultural Research Council– Water Research Council– International Research Institutions

CONCLUSIONS C (Cont’d)

There is benefit for SANEDI to form partnerships with organisations mandated to undertake rural development and poverty alleviation, such as:– National Development Agency

– Departments of Agriculture and Rural Development

– Department of Infrastructure and Development

– Departments of Human Settlements, etc

– To this end, stakeholder management and engagement will form a notable part of the Programme architecture

It needs to be noted that even of the Working for Energy Programme falls under the “Working for” Programmes, it is capital intensive and the yields of jobs and skills development cannot match those of other programmes in the Environment and Culture Cluster.

Documents

LEGISLATIVE MANDATES