Green Economy Journal Issue 42

R

E

E

journal

ENERGY: Comment on the release of the RMIPPPP RFP STORAGE: What lies in store with Eskom’s battery bid?

WASTE: Transitioning to a circular economy SANITATION: Smart ablutions for informal settlements

N

ISSUE 42 | 2020

Economy G

Large Capacity Energy Storage NGK’s Sodium Sulphur (NaS) Utility Battery is quite simply the best choice worldwide for large-capacity energy storage.

NAS batteries are large-capacity 6-hour energy batteries with multiple power grid applications.

Superior safety, function and performance made possible by decades of data monitoring from multiple operational installations across the world.

• • • • • •

Long life Ultra-deep cycle Hot location resilient Super-efficient Low maintenance 3rd party tested and certified by Rhineland, Germany • Manufacturer’s guarantee Manufactured by NGK Japan using cutting edge ceramic manufacturing techniques, in partnership with BASF Germany.

In excess of 17 years of proven commercial operation.

APPLICATIONS GRID SOLUTIONS Peak Demand Management / Capacity Investment deferral RENEWABLES Renewables / Power plants CONSUMERS Industrial / Commercial & residential MICROGRIDS Islands / Remote grids and microgrids

Learn more now contact South Africa agents at: info@altum.energy

www.altum.energy

ontent

ISSUE 42 | 2020

Economy G

R

journal

E

E

4

NEWS & SNIPPETS

6

STORAGE

7

ENERGY

8

RECYCLING

N

hat lies in store with Eskom’s W battery bid?

04

AWEA unpacks the implications S of the draft amendments to the Electricity Regulations Act on New Generation Capacity

ETCO announces positive recycling P rates

9

ENERGY

I ndustry feedback on the Risk Mitigation Independent Power Producer Procurement Programme

10

08

AIR NMISA tells us about atmospheric monitoring of greenhouse gases

13

DIVERSITY UNIDO report on gender equality in the energy sector

14

WASTE Transitioning to a circular economy

16

INDUSTRY Resource Efficient and Cleaner Production achieves more with less

by NCPC-SA

14 1

COLLECTORS DESERVE A ROUND OF APPLAUSE. It’s no secret that PET plastic beverage bottles are very useful in our modern society. And in South Africa, we owe thanks to informal collectors who spend hours reclaiming them from our streets. As our last line of defense, collectors pave the way for these used bottles to be made into polyester fibre, pallets for the fruit export market and back into bottles yet again. This all takes place once collectors sell their bottles on to mechanical recyclers. Together, they eliminate the chance that discarded bottles harm the environment, create gainful employment for many individuals involved in collection and processing, and contribute positively to our country’s GDP.

18 BILLION

Recycling PET plastic beverage bottles ensures that a circular economy is established where their value can continue indefinitely.

65 900

PET plastic beverage bottles collected for recycling

R7.8 BILLION

income opportunities created** ** 2019 specifically

1905356_FP_E

injected into South Africa’s economy to date

Economy

NOTE FROM PUBLISHER

G

Dear Reader

Yours,

E

E

N

journal

PUBLISHER: Gordon Brown

ASSOCIATE EDITOR: Songo Didiza

COPY EDITOR: Alexis Knipe

LAYOUT AND DESIGN: CDC Design GM: MEDIA SALES: Danielle Solomons

danielle@greeneconomy.media PROJECT MANAGER: Munya Jani

SALES: Vania Reyneke

Gerard Jeffcote

PRINTING: FA Print

WEB: www.greeneconomy.media

GENERAL ENQUIRIES: info@greeneconomy.media

ADVERTISING ENQUIRIES: munya@greeneconomy.media

EDITORIAL PROPOSALS: alexis@greeneconomy.media

PUBLISHER: Gordon Brown

gordon@greeneconomy.media

REG NUMBER: 2005/003854/07 VAT Number: 4750243448

ISSN NUMBER: 2410-6453

PUBLICATION DATE: September 2020

Economy G

R

E

E

journal

N

ISSUE 42 | 2020

In the last three weeks two long-awaited energy-related tenders have been published, with a mixed reaction from the industry. Eskom’s World Bank-funded energy storage Request for Bids was meant to be technology agnostic, but instead was written specifically for Lithium-Ion to the exclusion of most other technologies, which might have been able to offer more value and or better economics, but we may never know. Let’s hope subsequent procurement phases are more open.

On a positive note, if you are one of the few bidders offering a leading Li-Ion technology, and meet the stringent qualification criteria, this bid will inject more than R2bn into your value chain and much-needed investment into South Africa’s economy.

At the same time, a battery energy storage system (BESS) of this scale – 80MW and 320MWh – will offer significant grid stabilisation, which will lower the operating costs associated with receiving intermittent renewables. This is most encouraging for the energy mix.

The second tender is the Department of Minerals and Energy’s Risk Mitigation IPP Procurement Programme, set to procure 2000MW of dispatchable generation capacity. This bid window has been eagerly awaited by the renewables and storage sector, but on an initial examination of the bid documents, it seems this bid is aimed squarely at gas power, and it remains unclear whether renewables plus storage will be able to compete.

The big picture view, however, is that this too is okay for the green economy, as, in many models in which renewables (wind and solar) provide baseload, gas is required to meet peak demand. Adding modern gas generation capacity to the mix is, therefore, part of the bigger solution.

All in all, an exciting time for the energy sector, with a few curve balls thrown in to keep chins wagging.

Enjoy this edition of GEJ, where it’s not all about energy.

R

PUBLISHER GreenEconomy.Media

www.greeneconomy.media

ENERGY: Comment on the release of the RMIPPPP RFP STORAGE: What lies in store with Eskom’s battery bid?

WASTE: Transitioning to a circular economy SANITATION: Smart ablutions for informal settlements

Cover image: Climate Visuals

All Rights Reserved. No part of this publication may be reproduced or transmitted in any way or in any form without the prior written permission of the Publisher. The opinions expressed herein are not necessarily those of the Publisher or the Editor. All editorial and advertising contributions are accepted on the understanding that the contributor either owns or has obtained all necessary copyrights and permissions. The Publisher does not endorse any claims made in the publication by or on behalf of any organisations or products. Please address any concerns in this regard to the Publisher.

3

NEWS & SNIPPETS

NEDBANK PARTNER WITH SAPVIA PV GREENCARD

With the current heavy demand for electricity in South Africa, Nedbank Home Loans has joined forces with the South African Photovoltaic Industry Association (SAPVIA) PV Greencard Programme to help consumers save money by leveraging their home loan to install solar panels.

The programme is an industry-led quality label that was developed to promote a safe and highquality solar PV installation.

The SAPVIA PV GreenCard programme works to improve standards development and compliance in line with international best practice. The PV GreenCard accreditation and recommended database offers protection and confidence to affected stakeholders such as solar PV installation companies, solar PV system owners, investors and banks.

Nedbank clients can install solar panels by leveraging their home loans. The home loan instalment increase could still be less than an average monthly electricity bill, especially in a lowinterest environment. www.pvgreencard.co.za

ACHIEVING ZERO HUNGER BY 2030 IN DOUBT

The State of Food Security and Nutrition in the World estimates that 690-million people went hungry in 2019 – up by 10 million from 2018, and by nearly 60 million in five years. The report predicts that another 83 million people, and possibly as many as 132 million, may go hungry in 2020 as a result of the economic recession triggered by Covid-19. The setback throws into doubt the achievement of Sustainable Development Goal 2 (Zero Hunger).

Africa is the hardest-hit region with 19.1% of its people undernourished. This is more than double the rate in Asia (8.3%) and Latin America and the Caribbean (7.4%). On current trends, by 2030, Africa will be home to more than half of the world’s chronically hungry.

ESKOM SHUFFLES MANAGEMENT

Rhulani Mathebula has replaced Bheki Nxumalo as head of generation. Nxumalo has become the group executive overseeing new projects. Daniel Mashigo will head up Eskom’s Cluster 2 of power plants and will be replacing Mathebula.

Source: Engineering News

DEFF ADAPTS ADAPTATION STRATEGY

A call to action The report argues that once sustainability considerations are factored in, a global switch to healthy diets would help check the backslide into hunger while delivering savings. It calculates that such a shift would allow the health costs associated with unhealthy diets, estimated to reach US$1.3 trillion a year in 2030, to be almost entirely offset; while the diet-related social cost of greenhouse gas emissions, estimated at US$1.7 trillion, could be cut by up to three-quarters.

The study calls on governments to mainstream nutrition in their approaches to agriculture; work to cut food loss and waste; support local small-scale producers, and secure their access to markets; prioritise children’s nutrition; foster behaviour change; and embed nutrition in national social protection systems and investment strategies.

Please read the report here.

4

To express its commitment to the 2015 Paris Agreement the Department of Environment, Forestry and Fisheries Minister Creecy has initiated a National Climate Change Adaption Strategy (NCCAS).

Minister Creecy said that the NCCAS outlines the required climate action and demonstrates progress on climate change adaptation. It is a ten-year plan that will be reviewed within the first five years and then again in the tenth year.

The main objective of this strategy will be to reduce the vulnerability of society, the economy and the environment to the effects of climate change.

NEWS & SNIPPETS

Released in conjunction with Green Building Council South Africa (GBCSA) and sponsored

by Growthpoint Properties, the MSCI South Africa Green Annual Property Index measures investment returns for a total of 293 prime and A-grade offices (R54.5 billion capital value) and compares the returns of 105 green-certified buildings (R26.9 billion capital value) to the returns of 188 non-certified constituents.

For the year ended December 2019, the greencertified office sample delivered a total return of 7.6% versus 5.1% of the non-certified sample.

Capital growth was the main driver of this outperformance as the green-certified sample held its value in a challenging operating environment for the office market. While the green-certified sample delivered capital growth of -0.8% the non-certified sample saw capital growth slow to -3.3%.

The superior capital growth was the result of better net income growth and a lower discount rate – meaning that valuers view green-certified office properties as a lower risk investment. Also telling was a significantly lower vacancy rate of 8.0% versus the non-green sample vacancy rate of 11.5% highlighting the value occupiers attach to green-certified premises.

Photo by: GBCSA

GREEN OFFICES RESILIENT TO TOUGH RENTAL MARKET

Growthpoint Properties’ Lakeside office development in Centurion Released by MSCI in June 2020, the index results reinforce the association between quality and green-certified buildings, as reflected by a 34% higher capital value per square metre, more resilient capital growth, and a higher net operating income per square metre compared to the non-certified office buildings.

Findings from the analysis showed that capital expenditure stood at 0.7% of the capital value for Green Star certified buildings, versus 1.2% of the capital value for uncertified buildings. This means that green-certified buildings require comparatively less capital expenditure, which has enhanced the capital growth relative to the non-green sample.

WORLD BANK SUPPORTS SOUTH AFRICA’S GREEN ECONOMY FirstRand Bank has received a $225-million loan from the World Bank’s International Finance Corporation (IFC) for energy-efficient and water-smart projects in South Africa. Andries du Toit, FirstRand’s group treasurer said that the loan would provide valuable capacity in growing South Africa’s green economy.

The loan is aligned with the IFC’s aim to develop South Africa’s climate finance market and the nation’s transformation to a lower-carbon economy.

Source: Engineering News

STANLIB DISPLAYS CONFIDENCE IN POWER SECTOR Mulilo Energy Holdings has announced the acquisition by STANLIB’s Infrastructure Investments unit of a 10% equity stake, in the R1.8bn privatelyowned renewable energy developer. The provides Mulilo with a robust financial partner that has an appetite to invest in new developments and planned growth. Similarly, it offers STANLIB access to a leading South African renewable energy platform with a strong development pipeline, of close to 3 gigawatts (GWs) of large-scale wind and solar PV projects.

The parties have announced their intention to participate in the strategic infrastructure 2 000MW Risk Mitigation Power Procurement Programme, as well the future Renewable Energy Independent Power Producer Procurement Programme (REI4P) Round 5 and further bidding rounds.

The renewable energy market in South Africa is set to exponentially grow over the next decade in line with the gazetted 2019 Integrated Resource

Plan (IRP), which outlines increased allocations for both wind and solar PV power, up to 2030.

Furthermore, with the expected decommissioning of over 24GW of coal power plants, in the period beyond 2030 to 2050, the country’s IRP has further opened up opportunities for the renewable energy sector to support the country’s postCovid-19 economic recovery plan.

Mulilo is one of South Africa’s largest renewables groups with a combined operational capacity of close to 500MW of solar PV and wind projects. It has a development pipeline of renewable energy projects of 3GWs in South Africa. Part of the company’s growth strategy is to actively pursue the acquisition of equity stakes, in operating renewable energy projects.

STANLIB Infrastructure Investments manages a number of infrastructure funds and recently announced the successful close of its second fund, STANLIB Infrastructure Fund II, attracting over R4.5bn of new committed capital.

5

STORAGE

What lies in store with

Eskom’s Battery Bid? Green Economy Journal speaks to Norman Jackson, Co-Founding Chairman of the South African Energy Storage Association (SAESA), about the Eskom request for bids for the energy storage project planned at Sere Wind Farm Facility at Skaapvlei Substation, and its likely impact on the South African storage sector.

A

t the end of July, Eskom issued a procurement notice for interested companies to design, supply, construct and commission an 80MW/320MWh battery energy storage system. The successful bidder is to provide operations and maintenance (O&M) services over a period of five years on the project that is planned at Skaapvlei Substation, Vredendal, Western Cape.

The battery storage system will be financed by the World Bank ($245-million), New Development Bank and African Development Bank via a loan made by Eskom. The multi-battery installation programme is the storage component of Eskom’s strategic renewable energy scheme. The first phase of the scheme is the project in question, which has an estimated cost of R7.2-billion (± $415-million).

The energy storage project forms part of the Eskom Investment Support Project, funded by World Bank, to secure system reliability by improving the national power grid and its renewable energy amenities. World Bank borrowing funding legislation requires that Eskom uses international competitive procurement procedures such as the Request for Bids. Sealed bids will be accepted until the deadline on 11 September 2020.

GEJ: What are the implications of the Eskom procurement notice for the energy storage market?

Norman Jackson, SAESA

battery of this size (commensurate to what is being installed in the US, China or Australia) will be a massive boom for the industry in South Africa. It will also bring more customers and lenders into the sector through news flow, credibility and making storage mainstream.

What is your opinion of the opportunity for different technologies to qualify for this bid?

The “openness” to different technologies reminds me of the historical “Open to all” voting in some of the states in the USA, in the 60s: Everyone can vote, provided there is proof that voter’s family has voted previously voted previously.

High praise to Eskom for this long-awaited but critical first step in growing the storage market in South Africa.

NJ: High praise to Eskom for this long-awaited but critical first step in growing the storage market in South Africa. Demonstrating a large

Having the required experience will exclude many different technologies. The mandatory experience specified in the tender is taking the safe option technically, and especially with the first-of-its-kind tender. It is the prudent way to go, I believe.

Eskom has a wonderful energy storage test facility and I think they presently do their part to promote and test newer technologies. Given the technical requirements of the tender, they have given the lead-acid technologies a fighting chance with the lithium-ion technologies. It will be interesting reading to see what the hydrogen technologies offer. I am hoping they will surprise.

Please comment on the localisation content of 20%.

Above: The storage project will be situated at the Sere Wind Farm Facility, located at Skaapvlei Farm within the Matzikama municipality in the Western Cape.

Research shows that this site has among the highest wind speeds in South Africa.

6

It is a low and safe number, and should not present much of a challenge to battery suppliers and manufacturers. A lot of the tenderers were expecting 40% of the scope to be sourced from South African suppliers.

Once the various studies into the energy storage system supply chains have been completed, I expect this number will increase. Ideally, Eskom should give a roadmap as to its expected demand and future local content requirements to stimulate investment into the supply chain.

STORAGE ENERGY

Powerful procurement from

IPPs

BY SAWEA

Draft amendments to the Electricity Regulations Act on New Generation Capacity were published

by Mineral Resources and Energy Minister Mantashe for public comment, in May this year. In a nutshell, the amendments are meant to pave the way for municipalities, with good financial standing, to be able to either develop or obtain their power-generation capacity from Independent Power Producers (IPPs).

A

t this point, the country has only a handful of financially sound municipalities, so although the current uptake may be greatly restricted, this decentralised way of procuring power is most certainly a game-changer. Municipalities will furthermore be expected to align with the Integrated Resource Plan (IRP), comply with the Municipal Finance Management Act and the Municipal Systems Act, and align with the individual municipality’s Integrated Development Plan.

Although these amendments, which theoretically should be swift and painless to implement, seem like a great move, the regulations have attracted numerous comments from energy experts to the effect that the guidelines do not go far enough in unfettering the procurement of power from IPPs by municipalities.

The City of Cape Town (CoCT), which is one of the few municipalities in the black, is calling for a nationally coordinated renewable energy procurement programme through which municipalities can procure renewable power from IPPs. The CoCT has been fighting for the right to choose their electricity suppliers since 2017 when it filed its case with the High Court. The most recent ruling, 11 August 2020, is that the City needs to first exhaust negotiations with the government on the matter, putting the decision back in the hands of Minister Mantashe and his Department.

“We still have several emerging questions that need to be addressed as the regulatory environment becomes more conducive for municipalities to procure power directly from IPPs. For once, we’d like to see a more favourable regulatory environment for the municipal sector in order to be an effective off-taker of renewable power,” explains Ntombifuthi Ntuli, CEO of the South African Wind Energy Association (SAWEA).

Speaking specifically about the role of the wind energy sector, in the distributed generation space, experts show that distributed generation wind energy projects could be viable at a minimum size of 10MW with a Power Purchase Agreement (PPA) length of 15 to 20 years.

“This works even better if the smaller projects are built alongside other big projects and source turbines simultaneously, to minimise costs. The opportunity for IPPs to pair up smaller and bigger wind projects, will be easier once the Renewable Energy Independent Power Producer Procurement Programmes (REI4P) get underway again,” adds Ntuli.

There are various ways that IPPs can transact with municipalities by the idea of selling power that will need to be explored. The first option is for IPPs to sell directly to municipalities, in which case the consumer could connect directly to the municipality. The second option is that IPPs could be the municipalities’ virtual supplier from another point on the Eskom network. And thirdly, IPPs could transact inside the municipalities through wheeling to customers that are on the municipal system, where the municipality becomes the carrier and not the direct off-taker. Any of these off-take arrangements could work, particularly if NERSA allows municipalities to establish a wheeling tariff.

Several industry stakeholders would like to see the Public-Private Partnership procurement process expedited and supported by the IPP Office. “In this way the municipality then becomes the client of the Department of Energy, with support provided to the IPP and the municipality, to help them govern the contract, which will reduce risk of failure,” concludes Ntuli.

7

RECYCLING

Plastic industry announces positive

recycling rate PET recycling generated 65 900 income-earning opportunities among informal reclaimers and SMMEs.

A

ccording to new statistics released by the PET Recycling Company (PETCO), which is the producer responsibility organisation for the sector, 62% of all polyethylene terephthalate (PET) plastic beverage bottles placed on the market in 2019 have been recycled – a trend which is in line with global PET recycling rates. This amounts to 95 879 tonnes of post-consumer PET bottles collected, which would otherwise have occupied 594 448 cubic metres of landfill space and produced 144 000 tonnes of carbon emissions.

Aside from these environmental benefits, PET recycling generated 65 900 income-earning opportunities among informal reclaimers and SMMEs, with R1.1 billion injected into the downstream economy via the manufacturing, distribution and sale of products made from recycled PET (rPET).

PETCO chief executive officer Cheri Scholtz says that while the overall 2% year-on-year decrease in volume was disappointing, it was as good as could be expected, given the significant loss of installed capacity following the closure of one of the country’s six PET recyclers. “The closure of Mpact Polymers had a significant impact on our capacity to recycle, with the remaining recyclers unable to pick up the slack as they were already operating at maximum capacity in the fourth quarter.”

On a positive note, Scholtz says the tonnage of rPET sold in South Africa – more than 23 904 tonnes – was similar to 2018, reflecting both the improving output at the remaining recyclers, as well as the increasing demand for rPET. “This shows that consumers and brand owners are starting to take their product packaging’s ‘green credentials’ seriously,” she shares, adding that light-weighting of bottles had also contributed to the decrease in collected tonnages of PET. “Light-weighting, or not using more material than is necessary, is an important environmental step but our challenge is to encourage ‘rightweighting’, which is about finding the balance within the circular economy.”

If bottles were too light, the pressure would be on collectors to collect much more than they were able to, with the reduced yields creating a knock-on effect up the value chain and damaging the economic viability of the PET recycling model, explains Scholtz. She states that R372 million had been paid last year by recyclers for baled bottles delivered to their plants. Of these bottles, 57% were recycled into polyester staple fibre (PSF), with 36% used for food-grade rPET, with the remainder going into end-use applications such as geotextiles and industrial strapping.

8

Despite global market contractions, and now the rolling economic impact of Covid-19, South Africa’s PET plastic recycling value chain has kept its wheels turning, delivering another positive annual recycling rate.

Looking ahead, Scholtz says the impact of Covid-19 on the industry would be substantial, owing to collapsed oil prices, further market contractions and an anticipated decrease in PET consumption of approximately 18%. “While there has been an increased demand for PET in the packaging of hygiene products such as sanitisers, and personal protective equipment such as face shields, the demand for clothing and household textiles has plummeted, putting pressure on PSF production.”

She explains the country’s only bottle-to-bottle recycling plant, Extrupet, had been able to operate as an essential service under lockdown, which helped to keep the value chain moving. “Our recyclers continue to buy post-consumer PET plastic bottles albeit at reduced volumes, which is another positive for our industry, as many other material recovery processes haven’t been able to operate.”

Latest stats show 62% of all PET plastic beverage bottles produced in South Africa in 2019 were collected for recycling.

PETCO chairperson Tshidi Ramogase, who is also the public affairs, communications and sustainability director for Coca-Cola Beverages Africa, says credit for effective PET recycling in South Africa is due to PETCO’s member organisations who pay the voluntarily extended producer responsibility (EPR) fee on every tonne of raw material they purchase, as well as the brand owners and raw material producers who contribute additional grants.

“However, whilst we have 87% support in terms of volume of PET beverage bottles, 23% of the industry does not contribute to the work done by PETCO through EPR funding. We hope that PETCO’s track record in mobilising and sustaining the circular economy in PET will be an encouragement and we remain open to welcoming them as members.

“The 2019 results have been achieved through partnerships with business large and small, organisations and numerous individuals, making a tangible positive impact on the lives of South Africans, contributing significantly to the economy, and minimising the impact of post-consumer PET on the environment,” concludes Ramogase.

STORAGE ENERGY

The Risk Mitigation Independent Power Producer Procurement Programme The Department of Minerals and Energy (DMRE) released a Request for Clarification and Proposals (RFP) under the RMIPPPP on 23 August, in accordance with the IRP 2019 and related ministerial determinations to meet a stated supply shortfall of 2000MW of generation capacity. The Green Economy Journal found out what the industry has to say.

T

he release of the RFP follows the Request for Interest (RFI) process earlier this year, and which stimulated great excitement within the energy sector generally and the renewables sector specifically, with some IPPs submitting mega projects including a hybrid of solar, wind, and battery storage.

The much anticipated and slightly delayed RFP, however, does not appear to be renewables- and storage-friendly and is more suited to thermal technologies.

It is clear that DMRE is seeking to increase capacity to meet peak demand and to address the scourge of load shedding in the process, but while addressing this gap is overdue and obvious, so is the mechanism of adding more thermal capacity in the face of the high operating costs of

these applications and global trends towards a combination of renewables and storage.

So, as IPPs and EPCs scramble to model solutions that include these technologies, and which might meet the technology-specific wording of the RFP, the excitement created through the RFI process is waning.

Key elements of the RFP include that it is technology agnostic (?), that it should meet the needs of the system operator, that the electrical energy should be dispatchable from 5am to 9.30pm within specific parameters (between mingen of 25% and maximum capacity), and that projects will have approximately 15 months for construction, with completion due by June 2022.

WE REACHED OUT TO THE RENEWABLE ENERGY VOICES FOR COMMENT: SOUTH AFRICA WIND ENERGY ASSOCIATION Ntombifuthi Ntuli, CEO, SAWEA We welcome the RMIPPPP issued by the DMRE on Sunday, 23 August and are in the process of leading engagement with our members to unpack this RFP in preparation for the expected session with the Department to discuss the process in more detail.

The RFP deadline, scheduled for November this year and financial closure date set out for April next year, just four months after preferred bidders are to be announced will feature at the top of our agenda.

SOUTH AFRICAN PHOTOVOLTAIC INDUSTRY ASSOCIATION (SAPVIA) Nivesh Govender, COO, SAPVIA SAPVIA welcomes the release of the RMPPP documents for the procurement of 2000MW of power, given the current energy crisis facing South Africa. The RFQ is designed to be technology agnostic, and, at SAPVIA, we are reviewing the technical requirements with regards to dispatchability and ancillary services to better understand how our members can meaningfully participate in the tender.

SAPVIA supports a just transition to promote inclusion in the sector and encourage localisation. Given the high weighting applied to the price in the evaluation criteria, SAPVIA caution that a balance must be struck between the lowest cost and building up local industry and participation.

We hope that the tender will address the energy crisis by bringing the lowest cost and quickest to connect technologies online, solar PV being a strong contender in this regard.

SOUTH AFRICAN ENERGY STORAGE ASSOCIATION Norman Jackson, Co-Founding Chairman, SAESA This tender is all about energy being dispatchable on irregular time frames. Although the battery type of energy storage can do the job, I do not believe it is economically feasible, unless you can fully discharge at least 10 times a week. Traditionally thermal engines (HFO/diesel/gas) or hydro/pumped storage would perform well in this requirement.

I believe large gas generators will be deployed for this application and on a “green” perspective, natural gas would be the best available choice in my opinion.

The RFP •

It will be technology agnostic;

• Based on the plant-performance needs of the electricity system operator; • It will procure dispatchable flexible generation that should be able to provide energy, capacity and ancillary services; •

Should be able to operate between 5h00 to 21h30;

• It must have an AGC load following ability, flexible capacity factor and must be “scalable” with changing capacity requirements; and •

Must be able to connect power to the grid by June 2022.

9

AIR

Atmospheric monitoring

of greenhouse gases to challenge climate change Research on greenhouse gases (GHG) has increased significantly over the years, due to the global interest in reducing air pollution and its link towards climate change that has further led to the current global warming crisis.

M

onitoring the atmospheric trends of certain gases, and their contribution to climate change, is significant when assessing the impact of policies to improve air quality and reduce greenhouse gas emissions. These gases include carbon dioxide (CO2), methane (CH4), sulphur hexafluoride (SF6) and nitrous oxide (N2O).

Greenhouse emission sources include transportation, electricity generation, as well as the use of fossil fuel for heat production and industrial processes. The major source of South Africa’s energy is fossil fuel (coal burning), causally related to our nation’s dependence on coal, placing electricity production as the largest contributor of total GHG emissions in South Africa.

There is a need for accurate primary reference gas mixtures for greenhouse gases to provide reliable GHG emission data and to ensure that industries emitting above set thresholds are held accountable.

10

The increase of atmospheric CO2 emissions, linked to global warming, is rapidly becoming a problem. The atmosphere is monitored through techniques such as infrared spectroscopy and gas chromatography.

There is a need for accurate primary reference gas mixtures for greenhouse gases to provide reliable GHG emission data and to ensure that industries emitting above set thresholds are held accountable. NMISA has developed various national measurement standards for greenhouse gases and participated in various international comparison surveys that focus on greenhouse gases, and which are coordinated by the Consultative Committee for Amount of Substance-Gas Analysis Working Group (CCQM-GAWG).

In 2016, the laboratory participated in an international comparison for carbon dioxide in air in the range of 380 to 800 Îźmol.mol-1 CCQM K120 (a & b) to demonstrate international measurement equivalence.

Following the improved CO2 NMS, NMISA will continue to demonstrate preparative capabilities and provide accurate standards for reliable atmospheric CO2 emissions. The CO2 NMS supports the South African legislation on the reduction of CO2 through the Kyoto Protocol signed in 2002 (an international treaty aimed at reducing emissions of greenhouse gases such as CO2). To monitor the reduction of CO2 emissions traceable CO2 in air, standards are required to calibrate instruments used for CO2 the emissions monitoring. Another recent international comparison includes preparative comparison for nitrous oxide in air, CCQM K68.2019 at ambient between 325-350 nmol/mol which commenced in 2019 and is still on going.

AIR NMISA supports stakeholders that report data to the World Meteorological

Organisation-Global

Atmospheric

Watch

(WMO-GAW)

program monitoring greenhouse gases such as carbon dioxide, methane and nitrous oxide in the southern hemisphere which contributes to the global measurements and studies towards its influence on climate change. Long-term emission monitoring based on accurate and stable standards ensure that emission data meets the requirements of the WMO compatibility goals and environmental policy makers. NMISA

NMISA enables compliance to legislation and reliable reporting of emission measurements through the provision of reliable primary reference gas mixtures.

enables compliance to legislation reporting of emission measurements through the provision of reliable primary reference gas mixtures.

Facebook: NMISouthAfrica Twitter: @NMISouthAfrica Instagram: @nmisouthafrica LinkedIn: National Metrology Institute of South Africa (NMISA) YouTube: National Metrology Institute of South Africa (NMISA)

www.nmisa.org

11

THA 22-2020

South African Industrial Energy Efficiency Project

Proving the real value of energy management The South African Industrial Energy Efficiency Project has supported industrial and commercial companies to save a staggering R 4.6 billion since 2011.

CumulATIvE SAvIngS In PARTICIPATIng COmPAnIES OvER TEn yEARS:

Through the implementation of ISO 50001 aligned energy

5.82 TWh

management systems and energy systems optimisation, the

Energy saved

IEE Project partners have assisted large and small companies to save costs and carbon emissions through sustained energy savings.

Enjoy real, sustained savings in difficult economic times

5 755 299 tCO2e GHG mitigated

through continuous improvement in energy management.

ZAR 4.67 billion

And consider the benefits of an ISO 50001 certification to

Energy costs saved

the bottom line.

Visit www.ieeproject.co.za / www.ncpc.co.za or email ncpc@csir.co.za to find out how to get help to transform your company’s energy use.

The IEE Projects is a national partnership initiative with international implementing and funding partners:

the dtic Department: Trade, Industry and Competition REPUBLIC OF SOUTH AFRICA

DIVERSITY

Gender equality

in the energy sector

BY PETRO DE WET, UNIDO

The energy sector remains one of the least diverse sectors globally, yet diversity is vital to ensuring a secure, affordable and sustainable energy future for all.

Left: IEE Project Manager Faith Mkhacwa conducting a boiler assessment as part of the steam systems expert-level training.

Right: Female graduates from the 2016 expert-level training in EnMS and various ESO disciplines.

S

*Edited version of Engineering News sponsored article [28 August 2020].

outh Africa is the 14th largest emitter of GHG emissions in the world. In 2015 the country pledged to peak its emissions between 2020 and 2025. For both industry and power generation, sustainable energy options offer significant opportunities to address GHG mitigation – and gender diversity in these sectors will only serve to enhance the efforts towards this goal.

The business case for diversity has been confirmed by independent research and studies, including findings by McKinsey (2015) and Ernst & Young (2017), and reported in the Harvard Business Review (2018, 2019).

Companies with gender equality outperform those that lacked diversity by about 15%. Gender diversity has also been found to lead to better quality of decision-making, lower risk, improved global image, and greater innovation.

Despite all the evidence, the World Economic Forum’s 2020 Gender Gap report concludes that a 58% gender gap remains between men and women in terms of economic participation. Data also shows that women’s participation in the energy sector, particularly as high-level decision-makers, remains low. For example, women comprise only 16% of board positions among 200 top utility companies.

Positive developments Although a lot still needs to be done, there is growing evidence of the impact that women are already having in industry and the South African energy sector. The multi-party Industrial Energy Efficiency (IEE) Project is one of many initiatives contributing to the increase in the number of women participating in this sector.

With gender mainstreaming cutting across all its activities, the project strongly supports the UN and South Africa’s focus on gender equality. Since April 2011, 48% of the 4 000-plus candidates who successfully completed the end-user training courses in Energy Management Systems (EnMS) and Energy Systems Optimisation (ESO) were women.

Women also play a significant role in the overall impact and achievements of the project. To date, industrial companies have been assisted to save 5.83TWh of energy, translating to cumulative cost savings of R4.67 billion and GHG mitigation of 5.8-million tonnes of CO2e. Increasingly, women

are initiating and leading the implementation of energy EnMS and ESO interventions in their companies, supported by highly-trained female experts and female IEE project managers, resulting in improved efficiencies, significant and ongoing savings and the retention of jobs. (For more information, go to www.ncpc.co.za)

The Covid-19 opportunity Worldwide, Covid-19 has hit the energy sector hard, with overall investment expected to drop by 20%. Many leaders and economists are suggesting that a green recovery would the best way to revitalise economies. Energy efficiency in general is highlighted by the International Energy Agency as crucial to the success of the recovery plan.

UN Secretary General Antonio Guterres sumUN Secretarymarised the challenge and opportunity: “The General, post-pan-demic medium- to long-term economic António Guterres recovery measures represent a unique opportunity for policy -makers to institute bold measures for more resilient, inclusive and sustainable economies… In doing so, it is paramount to harness women’s full potential as leaders, innovators and agents of industrial and environmental change.”

This is echoed by Trade, Industry and Competition Minister Ebrahim Patel in a recent article on women and Covid-19: “Economic disparity between men and women presents a challenge to South Africa. It limits opportunities... and deprives societies of the ideas and innovations greater numbers of women in the workplace can bring.”

The unique set of circumstances created by Covid-19 provides an opportunity for both men and women to collectively tackle the issues at hand and ensure inclusive and sustainable growth. It is not possible to successfully transition to a low-carbon future globally with half the world’s population sitting on the sidelines.

Note: IEE Project partners are UNIDO, the DMRE (through SANEDI), and the dtic (through the NCPC-SA). The project is funded by the Global Environment Facility.

13

WASTE

Transitioning to a

circular economy provides hope in a post-pandemic world

BY CHRIS WHYTE, ACEN*

As we emerge, hopefully, from the lockdowns initiated by the pandemic that gripped the world, we are left with the tattered remains of our economy.

A sense of shock embraces us as we strategise how to get back to where we were and save the economy.

W

e need to take a critical look at what we were doing right and what we were doing wrong and heed the harsh lessons learnt to ensure that we shore up our defenses to protect our fragile economy from future cataclysmic events. If we can take one lesson from the events of the past few months, it would be that we cannot go back to business as usual. We need to do things differently.

One key lesson from the pandemic is the fragility of our globalised supply chain mentality as the transport sector ground to a halt. This did not only affect international trade with the shipping and aviation sectors but also local and national trade through road and rail being severely restricted during the lockdowns. The knock-on effects of the transport sector had an impact globally on the demand for fossil fuels which saw the rapid decline of the global oil prices.

The supply chain affects the value chains and we saw that in the lower cost of production of virgin polymers from cheaper crude prices and this, in turn, had a devastating effect on the economic viability of the recycling

14

One key lesson from the pandemic is the fragility of our globalised supply chain mentality as the transport sector ground to a halt.

WASTE sector. We could unpack the impacts of supply chain and value chain in every sector of the economy and we would see the same fragility. Our planning must incorporate our new understanding of this fragile state.

Using circular economy principles offers a better path forward to plan a more robust future economic development strategy.

CIRCULAR ECONOMY PRINCIPLES

Circular economy principles see waste as a resource and so we need to change our narrative of waste and rather consider this as an unutilised resource.

Circular economy principles can be applied to all sectors notwithstanding energy, water, infrastructure, trade and waste. I cannot claim to be an expert in the different economic, but I understand waste implicitly and can illustrate how the circular economy can help us transition to a resourceefficient economy using waste as a resource.

In South Africa, we landfill approximately 108-million tonnes of waste every year and about 54-million tonnes of this is comprised of general waste (municipal, commercial and industrial) and that contains many different fractions that offer opportunities for recycling and project development. If we look at the waste characteristics of general waste, the two main components comprise construction and demolition waste and organic waste; averaging some 60% of the waste stream.

Only about 30% of the waste would be what we consider packaging waste (paper, plastics, cans and glass), which are volumetrically the challenge we face at landfills. It is estimated that South Africa only recycles around 10% of our waste annually and we spend billions of rands every year, landfilling billions of rands of resources into landfills. We collect about 66% of waste nationally with the remainder finding its way into the environment in unserviced areas. Circular economy principles see waste as a resource and so we need to change our narrative of waste and rather consider this as an unutilised resource.

NEW CIRCULAR ECONOMY

*Chris Whyte is the South African Country Leader for the African Circular Economy Network

The change is relatively simple and requires a Life Cycle Analysis (LCA) approach to drive markets. Using the LCA approach allows us to assess the savings of not having to landfill (landfill airspace avoidance costs) or the expense of clean-ups and transporting “waste� that has no perceived value. We need to valorise the benefits of not having to extract virgin materials (material costs as well as water and energy wastage); unpack the job-creation opportunities; cost savings on recycled materials and the direct benefits of reducing imports, as well as the positive effect on our Balance of Trade.

We can align corporate social responsibility with extended producer responsibility to achieve the goals of a positive waste economy and use these to drive enterprise development and supplier development which drive the SMME economy. Creating a secondary resources economy could drive socio-economic upliftment, reduce operational costs and enhance our competitiveness.

The simplicity of driving this new circular economy is by addressing a few policies in the public and private sector on supply chain management, green procurement and materials specification. As a simple example, if we legislated that all new roads had to incorporate a minimum 30% of their sub-base or crusher run materials with recycled construction waste, we would quickly eliminate the estimated 7.2-million tonnes annually that currently goes to landfill. The saving to landfill alone would pay the capital required to process this material and would create thousands of jobs across the country.

It is possible to unpack similar resource alternatives for every element of the waste stream. We have the technologies, the expertise and capacity within South Africa and by embracing circular economy principles in the waste sector alone we could add up to 3% to the county’s GDP. The time to do it is now.

15

INDUSTRY

Resource efficiency as a tool for

#BuildingBackBetter

BY LEE-HENDOR RUITERS, NCPC-SA

Covid-19 offers an opportunity to rebuild our economy more sustainably. Resource Efficient and Cleaner Production embodies the principle of teamwork to achieve more with less, which is what we need as a country.

Due to the success of its projects, NCPC-SA advocates for concentrated and inclusive industrial development in a struggling and post-Covid-19 national economy.

Left: Lee-Hendor Ruiters is a regional manager at NCPC-SA.

R

esource Efficient and Cleaner Production (RECP) is defined as a systematic and integrated approach to managing energy, water, environmental and financial; (after resources) or minimising waste and emissions to the environment, in a sustainable and cost-effective basis.

The NCPC-SA supports industry to implement RECP through thematic projects, such as industrial energy and water efficiency projects. The potential to save resources and related costs through operational improvements is evident in the NCPC-SA’s results. In the past five years, NCPC assessed 739 company sites of all sizes, and during this time, identified RECP opportunities valued at an average of R1.9 million per company per year. The savings are predominantly in energy, water and materials.

For various reasons, companies do not always implement these opportunities, but when they do, the results are a testament to what can be achieved with a collective effort. Last year, a company in the Western Cape, supported by the NCPC-SA, measured water savings of 60.44-million litres over 16 months. That is the water consumption target for the entire

City of Cape Town for one week. The impact of hundreds of companies doing likewise speaks for itself.

Companies implementing broader RECP have enjoyed energy and water savings through an integrated approach. Atlantis Foundry realised water savings of 4.9-million litres and energy savings of 3 203MWh, which combined saved the plant R12.4 million in under two years.

Savings are just as possible in smaller companies and less resourceintensive sectors. Excellent Meat Packer, part of Excellent Meat Holdings Group achieved water savings of 23 million litres and 120MWh of energy that resulted in combined R1.5 million in monetary savings.

Due to the success of its projects, the NCPC-SA advocates for concentrated and inclusive industrial development in a struggling and post-Covid-19 national economy. NCPC-SA is available to aid, advise and offer technical support to companies of all sizes and across all South African industries, as operations return to the new normal.

For more information, interested parties can visit www.ncpc.co.za or email ncpc@csir.co.za

WHY ADOPT RECP? Watch Video:

First episode of the RECP toolkit series

https://www.youtube.com/watch?v=YEyTQu9p0b8#action=share

Visit www.ncpc.co.za to download the entire toolkit series

RECP TOOLKIT VIDEO SERIES

The NCPC-SA aims to support businesses through their RECP journey by providing South African industry with tools and technical advice. NCPC-SA offers RECP toolkit videos to all companies wishing to improve their resource efficiency.

16

Supporting industry to return to business unusual There is no better time to implement changes that can make your operations more efficient and sustainable.

As industry gears up, the National Cleaner Production Centre South Africa (NCPC-SA) is there to help and advise.

Through the implementation of resource efficient and cleaner production (RECP), companies can increase efficiencies and lower utility costs. Assessing your operations or production processes can lead to much-needed improvements: • RECP stimulates innovation i.e. new solutions that have substantive benefits • Resource savings translate directly into a reduction in production costs • Sustainability initiatives open up new markets • Quality and safety can be improved through systems such as an ISO 50001 energy management system • RECP implementation creates an opportunity to streamline processes If you are ready to embrace a new normal, contact us to take the first step.

THA 18-2020

Services are subsidised and advice costs nothing.

We are currently not all in the office so please email us on ncpc@csir.co.za For more information, visit www.ncpc.co.za

The NCPC-SA is a programme that promotes the uptake and implementation of resource efficient and cleaner production (RECP), funded by the dtic and hoisted by the CSIR.

SANITATION

Public private

reimagined

BY HAROLD ANNEGARN, NORTH-WEST UNIVERSITY, POTCHEFSTROOM

A performance-based campaign to enable and sustain one-trillion dignified, safe ablution and sanitary events in Africa.

18

SANITATION

REALITY REDEFINED Our iA engagements with the WRC and Witsand community laid bare the challenges for informal settlements facing Covid-19 and other issues related to compliance with the protocols to delay and avoid infection. Despite decades of top-down investment in human settlement development from many excellent national and international programmes, and the health costs of non-compliance, the current inequitable water and sanitation baseline in poor communities remains a significant and economically devastating reality.

Through an interactive engagement with the Witsand community, WRC and the private sector, iA evolved a concept for public ablution facilities reimagined that goes beyond the minimalist duplication of the public infrastructure, typically provided by city governments to low-income settlements (Figure 1). This concept has been named iEEECO™ Ablution Service Centre (iASC™).

Photo by: DLGuy

F

or the one-billion people inhabiting informal settlements in cities around the globe following the basic prescripts that limit the spread of the Covid-19 virus is severely constrained by limited access to clean water, soap, hygienic ablution facilities and space for social distancing. While these limitations were present previously, the Covid-19 global epidemic has exacerbated the situation. Although water-borne sewerage is attributed as the single most crucial factor in improving public health in dense human settlements, the capacity of municipal governments in the developing world to provide the necessary infrastructure has lagged behind the burgeoning informal settlements.

Already before the pandemic, the South African Water Resource Commission (WRC), Toilet Board Coalition, and Bill and Melinda Gates Foundation issued a “call to action” for innovations in the water and sanitary economy. Post the onset of Covid-19, the Witsand informal community, Atlantis, Cape Town, responded to this call with an appeal to local nonprofit organisations to assist in implementing measures to improve protection against the spread of the virus. This led to the formation of an alliance of loosely-coupled, like-minded and multi-disciplinary public and private organisations and individuals, the iEEECO™ Alliance (iA).

Figure 2. High-density areas of Witsand (informal housing grey areas) mapped against the approved City of Cape Town town plan.

DISRUPTIVE DESIGN The iASC™ concept is a fast-track delivery of the innovative facilities, and the operating and maintenance protocols, incorporating features considered critical to the intended users. In addition to essential ablution services (Table 1), our plans address issues important to the user communities particularly women, children and those with special needs. Attendants around the clock and lighting, with back-up power at the centre and satellite facilities, will enhance physical safety by design – in a sustainable manner.

Special provisions will improve access and the level of services offered for children and otherwise abled users. Dignity is addressed through programmatic features that highlight cleanliness and privacy. A more favourable ratio of female to male stalls will reduce queueing for women.

Waterless urinals, and later greywater recycling and urine capture, will contribute to sustainability goals. For residents unable to visit the facility after dark, a facility for night soil disposal will be provided. Covid-19 health features will include provisions for social distance management, adequate drainage, natural ventilation and passive solar energy.

Photo by: DL Guy, 22/08/2020

INTEGRAL INNOVATION

Figure 1. The current state of public ablution facilities in Witsand.

iA has developed detailed designs and cost schedules to build the first iEEECO™ Ablution Service Centre as a full-scale operational demonstration project, adjacent to the informal section of Witsand (Figure 2). Many of these state-of-the-art features will be integral design components rather than optional added cost aspects. A key element of sustainability will be in the operation and maintenance of the facility. Also, in this area, there are significant innovations planned. Community residents will be employed to operate the facility on a 24-hour basis, creating local job opportunities for attendants, cleaners, security and management. The iA Service Centre will provide a venue for the sales of associated soaps, sanitisers and hygiene products. External hand basins will allow convenient handwashing as a pandemic protective measure.

In summary, the iASC™ concept focuses on reimagining public ablution facilities to provide safe and dignified essential toilet services (Figure 3). It includes the full value-chain of services and infrastructure required to separate human waste from contact with people. The iASC™ model provides for demonstration of the practical aspects of the circular economy, thereby creating incentives for behavioural change. The targeted areas of innovation include the demonstration of self-help, community co-managed solutions that overcome the barriers that force people to perform, in the open, sanitary events that should happen in private.

19

SANITATION iWASH EVENTS The economics of the new ablution facility is being benchmarked against capital and operating costs that are comparable to expenses currently incurred by municipalities in providing minimal levels of service in public ablution facilities. As such, it is essential to have the tools that can enable measurement of before and after conditions. For this level of research, the iA has consulted with WRC to integrate a monitoring and verification programme into the Witsand demonstration iASC™ project. We require a fundamental unit of measurement, so we have established a performancebased unit of measure to assign a cost of service delivered, termed the IEECO™ Water, Ablution, Sanitation and Hygiene unit (iWASH event). An iWASH event is the collection of a designated number of WASH actions (as in Table 1) carried out per person per day.

The recorded number of iWASH events will allow investors, society and government a measure to track, cost or value the intervention. These costs and benefits can be compared and contrasted against other options in the market or the cost of continuing under the business-as-usual approach.

Importantly, by comparing the recorded iWASH events with the total informal population (shack and backyard dwellers who have no access to indoor ablution facilities), the unserved needs of the community can be reliably estimated.

The dynamics aligned with the provision of public sanitation the level of relevant information, awareness and understanding of the underlying social-cultural, economic, and scientifically backed health risks. Substantial barriers exist due to social taboos, such as open discussion of urination and defecations habits of various national, social and religious groups; the taboo on men talking about menstrual hygiene and other associated requirements. In both design and operational phases, iA has lowered these barriers through frank discussion, to arrive at innovative approaches, Table 1. Ablution: The act of washing oneself HYGIENE

HUMAN EXCTRETA

RITUAL

Washing Showering Douche

Toilet Urinals

Purification Cleansing

Figure 3. Initial concept designs of the iASC™ public ablution facility showing separate female and male blocks separated by a courtyard.

Source: Nadeson Consulting Services/Lima Rural Development Foundation

The iASC™ model provides for demonstration of the practical aspects of the circular economy, thereby creating incentives for behavioural change.

including features such as female urinals. We have incorporated community education and training at formal and informal levels in the iASC™ operational programme. We have sourced non-government finances to bridge the barriers of business-as-usual planning, and construction timing delays for government-initiated infrastructure projects.

The Covid-19 crisis has brought into public focus the manifest inequities in the global provision of essential services for low-income communities and the most vulnerable individuals. Continuing containment of the Covid-19 virus requires properly funded programs to enable immediate, measurable access to potable water, sanitation and hygiene services. The iEEECO™ Ablution Service Centre (iASC™) concept is a disruptive response to provide safe and dignified essential sanitation to the majority of underserviced citizens of South Africa and Africa. For the sake of ubuntu and the public health of all citizens, we have reimagined public ablution facilities for the poor.

Photo by: DLGuy

Source: Nadeson Consulting Services/Lima Rural Development Foundation

Schematic drawing of facility Source Nadeson Consulting Services/Lima Rural Development Foundation

20

Robinvale Atlantis backyard dwellers and woman’s program done in conjunction with Ward 32 Councillor Barbara Rass and Ava Health Care.

Economy G

journal

R

E

E

N

ENQUIRIES

For advertising enquiries: ads@greeneconomy.media For editorial enquiries: info@greeneconomy.media

www.greeneconomy.media