The Sustainable Energy Resource Handbook South Africa Volume 5 by GreenEconomyMedia

The

Sustainable Energy

Resource Handbook South Africa Volume 5 The Essential Guide

EN ERGY ISBN 0-620450-683

780620 450683

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PROFILE: LANGKLOOF BRICKS

EASTERN CAPE TOP GREEN ORGANISATION AWARD WINNER 2012 Langkloof Bricks, the pioneers of Vertical Shaft Brick Kiln technology in South Africa, have invested and created one of the most energy efficient clay brick firing systems in the world. The VSBK reduces Green House Gas Emissions and coal usage by up to 50%. The first South African six shaft VSBK was constructed, commissioned and inaugurated in late 2011 at Langkloof Bricks.

The proven VSBK system of firing clay bricks now gives the South African brick industry an environmentally viable alternative to the original method of firing bricks in clamps. At Coetzee, the Executive Director of the Claybrick.org says, “The VSBK Project is a brilliant example of how local expertise can partner with international knowledge leaders to benefit an entire industry and country.

Energy Comparison usage chart: Production Mechanism

Total Firing Energy Required Per Kg Of Clay

Tunnel kiln

1.65 – 2.1 Mj/Kg

Transverse Arch kiln

2.0 – 4.0 Mj/Kg

Clamp kiln

1.7 – 4.2 Mj/Kg

VSBK Worldwide

0.84 – 1.1 Mj/Kg

VSBK Langkloof Bricks

0.85 Mj/Kg and still improving!

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PROFILE: LANGKLOOF BRICKS

This will have lasting benefits for our members, their employees, the environment and our country for many decades to come, thereby enhancing the benefits of building with clay brick which is already proven to be the most sustainable building material for us in housing in the South African climate.â&#x20AC;?

VSBK technology offers the following solutions and advantages: ECONOMIC

ENVIRONMENTAL

OPERATIONAL

Reduced energy costs â&#x20AC;&#x201C; less than 1Mj per Kg fired brick

Reduced CO2 emissions 50-60%

Improved health and safety conditions

Reduction in fired brick waste

Reduced Particulate matter (PM-10) and black carbon (PM-2.5)

Better waste and stock control of product

Low maintenance technology

Large amount of GHG reduction: NOx, SOx and volatile organic compounds

24/7 Operation in all climate conditions

Improved production and labour efficiencies

Improved reporting for environmental impact and control

Higher skill level required and supervision

Product and production flexibility

Reduced coal consumption

Dry and warm working environment

These reductions in emissions will lead to improved quality of air and thereby improved quality of life. On the 13th of May 2013,Langkloof Bricks started the construction of a further 18 VSBK shafts. This improved VSBK design should further enhance the operational and environmental benefits that this technology bring to the building industry. Earlier in the year, Langkloof Bricks took part in a survey to determine the cost implications of the proposed new CO2 tax on fossil fuel use in the Clay Brick industry. We were delighted when the results showed that VSBK technology would attract the lowest tax % of all the existing Firing technologies in use in our industry, proving that we are on the right track with VSBK technology. Langkloof Bricks have also entered into an agreement with Swiss contact to act as a training facility to train operational and supervisory staff of other Clay brick manufacturers that intend changing to VSBK firing technology. We entered into an agreement with the National Cleaner Production Centre, to assist us to reduce reduce our electricity demand at our plant. With the assistance of SDC and SWISS CONTACT over the past 3 years, Langkloof Bricks is also nearing the final stages of establishing a CDM POA for carbon trading.

DEDEA & IWMSA Eastern Cape Top Green Organisation Awards 2012 1st Place Small Organisation With High Environmental Impact Head Of Department Innovation Award Tel: 042 293 5872 | sales@thebrickcentre.co.za www.langkloofbricks.co.za

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PROFILE: AMATHOLE

Vision

“Amathole District Municipality:

Commitment towards selfless, excellent and sustainable service to all our communities. Mission The Amathole District Municipality, in its developmental mandate, is dedicated in contributing to: • Ensuring equal access to socio-economic opportunities. • Building the capacity of local municipalities within ADM’s area of jurisdiction. • Ascribe to a culture of accountability and clean governance. • Sound financial management. • Political and administrative interface to enhance good service delivery. • Contributing to the betterment of our communities through a participatory development process. Core Values • Selflessness In all our business activities we commit that corruption and unscrupulous business practices will be dealt-with decisively and objectively. • Pro-poor The poorest of the poor will be the main focal point for ADM’s business and service delivery. • Responsiveness We will continue to strive for improved turnaround time in the delivery of services and in dealing with our valuable customers. • Transformative We will make considerable strides to ensure that adequate capacity (skills and human capital) equates the mandate and business of ADM. • Inclusivity We will include all our stakeholders in our planning, implementation, monitoring, evaluation and reporting in ensuring an integrated effort towards service delivery. • Dignity and respect We will ensure that our service delivery restores human dignity and respect. • Good work ethics We will be professional in our conduct and ascribe to the Batho Pele principles. • Transparency Throughout our business operation we will ensure access to information and fairness to our stakeholders. • Integrity We will constantly conduct ourselves with utmost integrity as councillors and officials of ADM • Accountability We are committed in being held to account by our stakeholders and primary customers

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PROFILE: AMATHOLE

AMATHOLE DISTRICT MUNICIPALITY • Recently ADM ran a Water Awareness Campaign, what was the background of this initiative? The Amathole District Municipality falls in a summer rainfall area and usually begins receiving its rain in early spring. This year, however, the rains have been late, which resulted in “drought like” conditions. The problem was further exacerbated by the fact that many of ADM’s dams are very small and have limited storage. ie. they only have sufficient storage capacity to see us through the winter months and if there is no rainfall during the winter or during early spring then they begin to run dry. Owing to the late spring rains, certain dams in the district reached critical low levels. These were the dams in Bedford, Adelaide, Dutywa and Willowvale. We also began to experience problems with boreholes running dry, mainly in the Mbashe area. It was for this reason that we felt it was important to engage with the affected communities and inform them of the water crises as well as appeal to them to use water sparingly. • In the process the institution issued out some restrictions on the usage of water? In order to reduce consumption and therefore trying to ensure that the remaining water resources lasted until the rains fell, the ADM implemented water restrictions in order to try and curb excessive water usage. The restrictions were aimed at reducing usage on non-essential activities such as filling of swimming pools, watering of gardens with a hose pipe / sprinkler and the washing of motor vehicles. • How is the eradication of the backlog in terms of providing water and sanitation? One of the main reasons that the ADM is currently unable to improve the water surety by building bigger dams in areas that are prone to drought is that there are still communities that still do not have access to a safe water supply or formal sanitation system. Approximately 10% of ADM still does have access to a safe water supply, and over 60% still do not have access to a formal sanitation facility. • What are contingency plans or interventions when the services are down? In most cases, the ADM still has to rely on tankering water into drought affected areas. This is a very costly exercise and is also not very consumer friendly, so alternative sources are always the first option if available. In Nxuba, we are able to make use of a supplementary supply line from the Fish River, in Dutywa there is an emergency connection from Ehlobo and in Willowvale we have an emergency connection from Nqadu in place. In all cases, however, these supplementary supplies are unable to meet the full demand of towns in the drought stricken areas and in the case of the supply line from Ehlobo, there is a fine line between balancing the supply to Dutywa without negatively affecting the villages supplied by the Ehlobo scheme. • What is the status of your dam levels that were reported to be low before ADM undertook this campaign? In Nxuba, the dam levels are still low, but they are slowly filling, so while we are still not completely over the crisis, things have improved significantly. In Willowvale the dam has recovered, but Duytwa remains a huge concern and we may run out of water entirely in the next few days. • Can you proudly say that ADM is out of danger after some rains that left a number of people dead and destitute throughout the country. We are not over the crises yet and the situation in Dutywa is still critical. If it does not rain the catchment of these dams soon, we are likely to run out of water completely. Contact Details: Tel: 043 701 4000 Fax: 043 742 1831 Website: www.amathole.gov.za

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Successful PV projects with SMA SMA Solar Technology AG is the world market leader for solar inverters, provides system solutions and worldwide servicing for every PV system, and as an energy management group, offers innovative key technologies for future power supply structures.

duction facilities, starting with the Sunny Central inverter production in Cape Town. SMA meets all requirements for the ﬁrst and second round of the South African REIPP program and for local added value. The necessary capacities for the South African market growth are thus provided.

More than 30 years of experience and PV power plant projects up to the multi megawatt range in more than 30 countries show the outstanding competence of SMA. The exceptional quality of SMA‘s products and system technology gives all partners, system operators, investors, as well as ﬁnancing banks the security they need. PV power plants with SMA technology are proﬁtable projects over the long term.

SMA supports the local economic development efforts of the South African government now and in the future. A subsidiary with 50 % Black Management and a BEE level of 4 has been installed. The share of local content and job generation is increasing steadily.

SMA fulﬁlls local content requirements In South Africa SMA is offering PV inverters and system technology for all plant sizes. SMA is present with a sales and service company in Centurion. Professional consulting for photovoltaic projects is as well provided as customer training and an extensive range of services. In addition to strengthening its sales and service structure in the local market, SMA is ramping-up its local pro-

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All local grid code requirements met As a pioneer in grid integration, SMA offers solutions fulﬁlling the complex requirements for PV power plants in the South African market. SMA inverters meet the conditions laid out by the „Grid Connection Code for Renewable Power Plants“. The Grid Connection Code deﬁnes the technical and design requirements to be met and implemented by all power plants in the renewable energy sector. Sunny Central CP XT inverters, along with their features, meet all terms prescribed by the NERSA for PV central inverters.

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www.SMA-South-Africa.com

German Engineering. At Home in South Africa.

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PROFILE: ENVIROPLUS

BIOSPHERE ď&#x161;ť THE PERFECT SUSTAINABLE ENERGY SOLUTION In a world which is straining for resources, two of the most critically important issues are the need for energy and food security. Obtaining both of these in a single solution may seem like a pipe dream, but it is not â&#x20AC;&#x201C; BioSphere is a biogas generation system that provides sustainable, green energy while at the same time producing nutrient rich fertiliser that is ideal for growing crops.

Shown here is a diagram illustrating the upper section of a typical 1MW el Biosphere biogas digester which uses macerated cactus as a biomass as the source for the production of biogas.

Biosphere is the type of project that delivers energy security, carbon sequestration and avoidance, increased jobs, better use of marginalised land and local community empowerment.

Contact us for more information Email: info@enviroplus.co.za | Tel: +27 (0) 11 440 4288 / 4301 | Fax: +27 (0) 11 440 4301

Main Office: Unit 6, Khiba Office Park | 16 High Road, Bramley 2090 | Johannesburg, South Africa P.O.Box 181 Bramley 2018 | Johannesburg, South Africa

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FOREWORD The country’s capacity to respond to the growing challenges in the area of security of energy supply has been tested on a number of occasions over the past few years, the most recent test being the hosting of the 2010 Soccer World Cup. From an energy supply perspective, we have done well. As we emerge from the most profound economic recession in almost a century, the challenges of the electricity shortage of 2007-2008 will begin to re-emerge unless we succeed in ensuring security of supply from both the supply and demand-side management perspectives. While the world economy is in a state of recovery following the 2008/9 economic meltdown, opportunities in numerous manufacturing sectors are created in order to kick- start those economic activities that support social development and energy demand will increase. The mandate of the Department of Energy is to ensure secure and sustainable provision of energy for socioeconomic development. Over the next Medium Term Expenditure Framework (MTEF) we will ensure: • The provision of an enabling platform for other sectors to speed up economic growth and transformation, create decent jobs and sustainable livelihoods, • Our contribution to the massive programme to build economic and social infrastructure, • The provision of an enabling platform to pursue regional development, African advancement and enhanced international co-operation, and • Sustainable energy resource management and use, taking advantage of this scenario and giving effect to the above priorities, the Department of Energy (DoE) will focus on, amongst others: • Unlocking of infrastructure investment through policy and regulatory framework, • Implementing of various interventions to encourage sustainable energy resource management and use, through flagship interventions such as solar water heater programme (wind, concentrate and photo voltaic projects), • Improving our efforts to meet the energy efficiency and renewable energy targets, • Ensuring security of supply of petroleum products and national refining capacity, • Ensuring efficient supply and availability of gas resources, • Ensuring security of supply of electricity through the revamping and maintaining of the electricity infrastructure – including generation, distribution and reticulation, • Working hand in hand with the private and public sector institutions in order to build prosperity through service delivery. We will also refine the Integrated National Electrification Programme to eradicate the electrification backlog as part of our endeavour in achieving our Millennium Development Goals by 2014, and • Expand pipelines for the supply of liquid fuels into inland provinces.

COMMITMENTS The statement that energy is the life thread of our economy holds true. It is therefore important that as the Department of Energy, we look beyond the narrow interpretation of our mandate and see how we can contribute towards all government outcomes.

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FOREWORD Eskom’s 49M campaign has made noteworthy progress since its inception in 2011. At the time of writing, 120 blue-chip firms had joined the initiative and over 250 000 pledges had been received from the public and private sectors, and SA’s citizens. Launched in response to our constrained power system, 49M’s objectives are to inspire as many South Africans as possible to reduce their electricity consumption by at least 10%; and to do so by means of (permanent) behavioural change. Two years later it is clear that 49M has been well received. Participating companies include Times Media Group, Pinnacle, Imperial Logistics, AngloGold Ashanti, Goldfields, nglo American, Standard Bank, Nedbank, Tsogo Sun, City Lodge, Santam, MTN and MassMart, Terrapinn, T-Systems and Samsung. Solidarity and NUM are members and the public sector is represented by, among others, the CSIR, Umjindi Municipality, the City of Umhlathuze and the eight, state-owned companies under the portfolio of Public Enterprises. The 49M campaign has used many platforms and events to raise awareness and to engage with key stakeholder groups. One method involved a series of roadshows (to shopping centres, popular public spaces and taxi ranks) that reached approximately 30 000 residents across the country. We are also seeing rising interest from SA’s online citizens with our Twitter stream gathering followers and our Facebook page receiving over 25 000 likes. Almost as diverse as the audience we serve is the set of solutions being introduced. Organisations tend to implement extensive, planned programs to dramatic effect. Tactically these could span switching office lights off after hours to running the central air-conditioning system at half speed from 8pm to 7am, turning escalators off from 6pm to 6am, adjusting geyser thermostats to supply lukewarm water, switching to eco-friendly air-conditioning units, retrofitting electrical systems with low wattage bulbs and LED fittings to qualify for Eskom rebates, and many, many more. Private citizens focus mainly on the energy saving hints and tips to which our PR drive is drawing attention. The Sustainable Energy Resource Handbook plays a valuable role in the South African corporate and industrial landscape and is therefore a valuable platform for the 49M message. We are therefore proud to be associated with the Handbook and we urge you the reader to read as many of the articles that make up Volume 5 as you can.

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The

Sustainable Energy Resource Handbook South Africa Volume 5 The Essential Guide

EDITOR Erik Kiderlen CONTRIBUTORS Yats Gopaul, Ntombifuthi Ntuli, Bo barta, Ryan Dearlove, Erik Kiderlen, Lloyd Macfarlane, Teresa Legg, Peter Kidger, Dewald Burzynski, Chris Elliot, Robyn Brown, Linda Olagunju, Prof Charles Kibbert, James Dalrymple, Mauritz Lindeque PEER REVIEW: Alan Middleton, Peter Geddes, Prof Dereck Croome, Erik Kiderlen, Robyn Brown LAYOUT & DESIGN CDC Design EDITORIAL & PRODUCTION Robyn Brown

ADVERTISING EXECUTIVES Tichaona Meki Tendai Jani CHIEF EXECUTIVE Gordon Brown DIRECTORS Gordon Brown, Andrew Fehrsen, Lloyd Macfarlane PRINCIPAL FOR AFRICA & MAURITIUS Gordon Brown PRINCIPAL FOR UNITED STATES James Smith

ADMIN MANAGER Suraya Manuel PUBLISHER

DIGITAL MARKETING MANAGER Cara-Dee Carlstein SALES ADMINISTRATION Wadoeda Brenner

www.alive2green.com

PROJECT LEADER Louna Rae CONTENT EDITOR Kirstin Rennie

The Sustainability Series Of Handbooks PHYSICAL ADDRESS: Alive2green Cape Media House 28 Main Road Rondebosch Cape Town South Africa 7700 TEL: 021 447 4733 FAX: 086 6947443 Company Registration Number: 2006/206388/23 Vat Number: 4130252432

All rights reserved. No part of this publication may be reproduced or transmitted in any way or in any form without the prior written consent of the publisher. The opinions expressed herein are not necessarily those of the Publisher or the Editor. All editorial contributions are accepted on the understanding that the contributor either owns or has obtained all necessary copyrights and permissions. COVER PICTURE Kalkbult Solar Power Plant â&#x20AC;&#x201C; the first project to go live and connect to the grid under the IPP programme. Images: Kalkbult Images Aerial photographer: Anthony Allen. Ground shots: Eric Miller. DISTRIBUTION AND COPY SALES ENQUIRIES edwardm@hmpg.co.za ADVERTISING ENQUIRIES louna.rae@alive2green.com ISBN No:978 0620 45240 3 Volume 5 First Published 2012

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PROFILE: ENVIROPLUS

Enviroplus Group profile Enviroplus Group focuses on developing energy solutions: we are among the few engineering companies in sub-Saharan Africa with the technological expertise to design and implement industrial scale Bioenergy projects.

Energy below, vegetables above Enviroplus and associates formed Biosphere, a company that supplies industry with Biogas generation systems as a means of reducing their carbon footprint, by turning biomass into renewable energy. At the same time, it offers the surrounding community a sustainable means of food production.

Main Office: Unit 6, Khiba Office Park 16 High Road, Bramley 2090 Johannesburg, South Africa P.O.Box 181 Bramley 2018 Johannesburg, South Africa

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THE SUSTAINABILITY SERIES HANDBOOKS More than fifty thousand people in South Africa will read at least one of the Handbooks in the ‘Sustainability Series’ this year! The Sustainability Series Handbooks tackle the key areas within the broader context of sustainability and include contributions from among South Africa’s best academics and researchers. Each Volume is commissioned in collaboration with sector thought leaders and practitioners. The Handbooks are designed for policy and business decision makers and practicing professionals, and make excellent reading for senior students about to enter the professions. The Green Building Handbook, now in its fifth year is the most established publication in the series, and will soon be augmented with the new Green Building Specifications Handbook. Look out for the Sustainability Reporting Handbook launching within the next six months. In addition to leading edge peer reviewed content, the Handbooks also profile some of the top companies and organisations in that sector, and as such represent an excellent opportunity for suppliers to educate specifiers and buyers about the environmental benefits of their offerings. The Handbooks in the series are published by alive2green in high quality A5 format and are available for purchase online at www.alive2green.com/purchase-handbooks/

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PROFILE: AFRICAN SKY

AFRICAN SKY ENERGY African Sky Energy is a Johannesburg-based solar photovoltaic and renewable energy project developer, creating solutions for customers in the commercial and industrial sectors. Our focus is on solar photovoltaic projects located in South Africa and that are typically smaller than 5MW. We offer roof or ground-mounted solutions, as well as solar carports.

Why a Solar PV solution from African Sky Energy? The prime reason is that you will save on your electricity costs for at least 20 years. Our financial models show excellent returns for sites in many South African municipalities, based on a complete simulation of the plant. The solar panels carry a 25-year guarantee of a minimum 80% of original output, with independent 3rd party insurance. Furthermore, the Income Tax Act now allows an attractive tax deduction, via an accelerated 3-year wear and tear allowance for renewable energy projects. We are so confident of our solution that we offer customers in the manufacturing sector a solar power purchase agreement (PPA) option, which enables you to purchase electricity at a discount to the municipal tariff. You pay only for the electricity you consume, at a discount to your current tariff. We are a locally-owned BEE supplier and have decades of experience and expertise working in the SA electricity sector. We develop a comprehensive specification and provide a choice of offers from installers whose quality we have vetted. We offer a turnkey hassle-free solution with excellent financial returns! If you have more than 1000m2 of area available for an installation then call us now for a FREE site assessment.

E: zkhan@africanskyenergy.co.za T: 0828022903 10th Floor, Sandton Eye, Corner Rivonia Road & West Street Johannesburg, South Africa www.africanskyenergy.co.za

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Peer Review Alive2green has introduced and is committed to a minimum of 10 chapters or half of the chapters whichever is greater to be peer reviewed in all the handbooks. The concept of Peer review is based in the objective of the publisher to provide professional, academic content. “Peer review is a generic term that is used to describe a process of self-regulation by a profession or a process of evaluation involving qualified individuals with the related field. Peer review methods are employed to maintain standards, improve performance, and provide credibility” Wikipedia July 2010 Alive2green Peer Review Process The Editor will allocate a reviewer to the article and send it to the specified reviewer who will be well acquainted with the topic. Reviewers will remain anonymous to the contributors. These reviewers will return an evaluation of the work to the Editor within 3 days, noting weaknesses or problems along with suggestions for improvement (in a word document with the changes tracked.) The outcome of the reviewer’s recommendation would be one, or a combination of the following: • to accept the article as is • to accept the article in the event that it’s contributors make certain changes • to reject the article but to encourage revision and invite resubmission, The Editor then evaluates the reviewer’s submission and is under no formal obligation to accept the recommendations. The editor may then also add his/her opinion of the article and the context/ level of the publication before passing the decision back to the contributors. The contributor will then be required to submit the amended /revised article within 3 days.

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EDITOR’S NOTE This volume of the Alive-2-Green “Energy Handbook” series is a landmark issue. After 4 volumes of this essential guide, this specific volume now contains information on both efficiency and renewable energy interventions, with cutting edge articles by various authors. The articles in this Volume can act as immediate starters for an active energy debate. They provide insight into the present realities of Erik Kiderlen (Pr.Eng) job creation, using intelligent building materials, and how to change Ashway Investments perceptions which affect human behavior. The guideline to South Africa’s way forward in the near term, the “National Development Plan 2030, Our Future – Make it Work” document does show pointers, such as …… “Produce sufficient energy ….. whilst reducing carbon emissions ….. Private Public Partnerships on energy and environmental sustainability …. etc.. This also requires new spatial norms and standards for inter alia densifying cities, upgrading informal settlements, and closing the housing needs gaps. Renewable energy is the new buzzword in South Africa and Africa. The most recognizable of these are wind and solar energy photovoltaic farms. Several projects will come on stream in South Africa over the next 5 to 10 years. Natural gas is also being targeted with Royal Shell already having secured an exploration licience for fracking – even before the water needs have been analysed or secured. Sasol has heavily invested in mining gas in Mozambique. It is only a matter of time before renewables (wind and solar) reach price parity with fossil fuel generation. African economies are growing at breakneck speed, in contrast to more mature economies worldwide. Growth provides investment opportunities and infra-structure upgrades. More recently, this growth is being fuelled by the Indo-Chinese economic penetration of the African continent. This all requires energy, which in turn creates the CO2 pollution from fossil thermal power plants, the impact of wind farms on birdlife, and the as yet undefined radiation risks from reflective solar energy harvesting. The availability of donor funds to improve energy supply and usage for all sectors of the population should not cause over-hasty and under-researched energy decisions. There is no doubt that national and provincial environmental boards and agencies are already overwhelmed just by the E.I.A. needs of the present energy projects. This can result in a ‘development at all costs’ mentality, with serious habitat and bio-diversity loss. The sad legacy of a largely untrained workforce, a lack of skills and managerial ability, as well as underfunded research and development programmes, means that any predictions regarding the energy future of South Africa can only be ‘guesstimates’. For much the same reasons, any hi-tech energy management system is not always applicable in this country. However, using both efficiency and renewable options to kick-start energy sustainability projects can be positive. One common problem occurs though, when the conventional ‘business-as-usual’ sequence of carrying out engineering projects is expected or required to achieve meaningful community involvement. This often leads to false expectations, as well as the intrusion of local politics and its various hidden agendas. The effectiveness of such community involvements has

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EDITOR’S NOTE

yet to be shown to be consistently successful. This learning curve still has to be refined – possible in a future Volume of the Handbook. This issue is dynamic, applies at all levels of energy interventions, and now needs robust research and analysis. The smoke screens of ‘disadvantaged’ and ‘human rights culture’ are a large cause of slow or sometimes even no decision making, (c.f. article on Round 3 of REIPPP). This impasse and political dilly-dallying can seriously impede the country’s economic growth and development. The challenges are numerous, but not insurmountable, as South Africa is now part of the global village. It is however imperative that all the built-environment professionals do away with their ‘building silo’ attitude and the business-as-usual approach. This is no longer sustainable and does not serve our country well (witness Eskom’s Medupi and Kusile - ‘old school’ coal power plants). The existence of one regulatory authority on the country’s electricity distribution network at least means uniform requirements, such as the bird proofing of power lines. This unified policy could become seriously fragmented and weakened if a number of “retail power distributors” (and IPPP) were to enter the market. This debate is now at the incipient stage. Another important aspect to debate is the apparently simple definition of a building site. Changes here could have serious implications on the manner of energy provision. Optimizing the available energy supply can be achieved by less regulation, more efficient usage, and by more use of renewables. In general, it is advisable that African governments partner with private companies to develop this continent’s infrastructure. A new phenomenon is the take-over by Chinese and Indian contractors on Africa’s infrastructure projects, the so-called ‘non-traditional’ enterprises. They can do the same quality of work, but at considerable cost-savings. The environmental assessments are based on very limited bio-data. These may not be robust enough to make scientifically valid conclusions about the impact. Buildings, and their systems to make them habitable, efficient and work-conducive, absorb some 30 to 35% of all energy produced. A new approach is the zero energy building. This is analysed in some detail in this Volume. It applies to energy, as well as water, waste, greenhouse gas emission, and carbon footprint and ecological ‘loss’. Our government has adopted these principles, in its National Green Building framework, to inter alia green its own estate, drive the private sector to become more green and to eco-label construction materials. It is hoped that you, the reader, will find many challenges, some industry issues, and some proposed solutions, when reading the articles in this Handbook. Practical measured results as well as numerous company and product profiles add to the scientific text to give you a complete picture. It also profiles some of the top companies and organizations that are represented in the sustainable and renewable energy sectors. My personal gratitude as editor goes to the many authors and researchers who helped to make this volume a representative document of the energy status in South Africa today. Finally, many thanks to my support team at Alive-2-Green, who have excelled themselves in their efforts to get Volume 5 of the Handbook to you, our readers. Yours sincerely, Erik M Kiderlen (B.Sc. Eng., M.I.A., Pr. Eng.)

“ If you plan for one year, plant rice. If you plan for 10 years, plant trees. If you plan for 100 years, educate mankind.” Anonymous Chinese Proverb

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POWERFRIENDLY HOME AND OFFICE Energy saving is a personal and national priority for all of us. The rise of the “green economy” has ensured that countries around the world are investing in solutions that reduce unsustainable energy consumption and increase energy efficiency. South African energy-saving and back-up power solution specialist, Mr. Power, has launched a range of products to assist home and office owners in saving on electricity. Products in the range: • Full LED Lighting Range • Water Saving Showerhead • Solar Power kit • Geyser Controller • Power Factor Correction

SAVE UP TO 40% on your electricity bill, be part of building a sustainable future, enjoy a two year warranty and feel assured that your home or business is energy efficient.

For more information and to find your closest distributor, please visit www.mrpower.co.za or call the Mr. Power team directly on 011 804 2988.

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PROFILE: MR POWER

PRODUCTS FROM MR POWER CAN REDUCE YOUR ELECTRICITY BILL BY 40% LED Lighting Mr Power has a full range of LED lighting, including adapters and fittings. 50 watt down-lights have a bad reputation for burning out quickly, chewing electricity and getting stuck in the fitting – all of this is because they draw a lot of energy, most of which is lost in heat. In some extreme cases, they can even become a fire hazard. Mr Power’s LED down-lights are the solution to all these problems. They are of such a high quality their lifespan is anywhere between 15 000 and 25 000 hours! Assuming they are on for an average of four hours a day, the LED down-lights will last well over 10 years. AND, Mr Power guarantees them for two years from purchase.

LED Floodlights LED lighting is rapidly growing in popularity and becoming standard in most commercial and residential buildings. The dramatic increase in LED usage is largely due to their low energy consumption, long life span and depth, width and versatility. Mr Power now offers a range of floodlights to suit your outdoor needs. Outdoor lighting must be bright for safety and security reasons plus have a long life span. Mr Power’s floodlights draw about 10% of the energy of conventional floodlights, produce a strong light and come with a two year warranty. Added benefits are that they don’t attract insects and won’t burn your plants.

The benefits include: • • • •

LED lights have a life cycle of 15 years plus LED lights give a fuller spectrum of light and don’t attract insects LED lights have zero mercury content LED lights now have a similar quality of light as that of a halogen in both the luminescence and diffusion of light • LED lights run on 10% electricity or less of halogen lights – they only draw 5 watts (as opposed to 50 watts) Mr Power has a great calculator on his website where you can instantly see what your investment is, what you’ll save monthly and how long it will take before you receive payback… its astonishing: http://www.mrpower.co.za/lightingcalculator.html

Satinjet® Showerhead Luxuriate in your shower while using 40% less water with Satinjet® Showerhead from Mr Power. Now you can turn an everyday ritual into a well-deserved rejuvenating experience with a shower that uses award-winning Satinjet® technology. Clever jet design creates a unique type of spray – giving you a full body shower experience like no other. Conventional shower sprays use single jets of water that can produce a narrow, needle-like spray. A Satinjet® shower uses twin jets of water that collide and turn into thousands of tiny droplets that feel soft enough for your face, yet bracingly cleansing your entire body. The average showerhead uses 12 – 14 litres of water per minute, whereas Methven’s unique patented Satinjet® technology uses only 7.5 litres. With

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PROFILE: MR POWER

Satinjet®, that amount per minute feels every bit as luxurious as a high flow shower – providing the same pampering experience without compromising your planet-saving intentions. It’s easy to upgrade your bathroom with a Satinjet® shower, even if you’re not planning a full rebuild or renovation. The fittings on most shower outlets are universal so in most cases you can simply replace the existing shower with a modern Satinjet® showerhead.

Solar Power Kit We have all experienced being in darkness at night – whether it’s unexpectedly due to a power failure – or by choice on a camping or bush trip. Mr Power’s solar power kit is practical, affordable and simple with easy-to-use features that provide great convenience: • Start by placing the solar panel in direct sunlight and connect it to the battery to charge • When fully charged the solar power kit boasts several clever and practical features: - Attach one to four of the bright LED lights included in the kit. There is enough power to light all four for five hours (or two for 10 hours or one for 20 hours) - The system also comes with cellular phone charging attachments The differentiating factor for home use is the ability to connect your cell phone for last minute or urgent matters. In the bush, the LED lights provide quality light, that draws very little current and gives peace of mind as they have longevity. Also, LEDs don’t attract lots of insects!

The Geyser Controller This little gadget is easily installed into your electrical distribution board and can save you between 40-60% of your geyser costs. Money far better spent on you, your home and family. The Geyser Controller is programmed to switch off your geyser when hot water is not required in large amounts. It differs from a timer as it detects current as opposed to time so is ONLY active for the period of time necessary to get the water to the pre-set temperature and will then cancel the rest of the time period. It features a handy boost button should you need it. Interestingly, a normal geyser is what uses the most electricity in the majority of households – sometimes up to 60% of the total bill. Mr Power’s Geyser Controller can therefore reduce your electricity bill by 20%-30%. The Geyser Controller pays for itself within a year.

Power Factor Correction (PFC) The Geyser Controller also works in conjunction with the Power Factor Correction (PFC) unit – one regulates the function of the geyser and the other stabilizes and optimizes the usage of electricity. They work independently, but when used together, you save more! In fact, if both products are installed, Mr. Power guarantees you will save a minimum of 20% of your total energy bill.

For more information and to find your closest distributor, please visit www.mrpower.co.za or call the Mr. Power team directly on 011 804 2988.

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Chapter 2 WILL SOLAR WATER HEATERS DELIVER ON THE PROMISE OF GREEN JOBS?

Chapter 3 SMALL URBAN AND RURAL HYDROPOWER UNDER THE REIPPPP

Chapter 4 ADVANCED SOLAR THERMAL SYSTEMS FOR RESIDENTIAL AND COMMERCIAL APPLICATIONS

Chapter 5 THE FUTURE - IS IT TO BE INTELLIGENT BUILDINGS?

Chapter 6 THE STRATEGIC AND TACTICAL APPROACH TO SUSTAINABILITY BEHAVIOUR CHANGE

102

Chapter 7 DOING THINGS DIFFERENTLY- WHY AND HOW?

CONTENTS

Chapter 1 RURAL SUSTAINABLE RENEWABLE ENERGY DEVELOPMENT PROJECTS

118

Chapter 8 GREENHOUSE GAS MANAGEMENT- MEASUREMENT AND REPORTING 130 Chapter 9 ENERGY EFFICIENCY - THE CASE FOR INCORPORATING THERMAL MASS IN SUSTAINABLE HOUSE CONSTRUCTION

142

Chapter 10 THERMAL RESISTANCE OF HOT WATER PIPES AND INSULATION AS IT APPLIES TO SANS 10400 XA 160

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energy Energy

Swiss Confederation Federal Department of Economic Affairs FDEA State Secretariat for Economic Affairs SECO

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168

Chapter 12 AN UPDATE ON THE RENEWABLE ENERGY INDEPENDENT POWER PRODUCER PROCUREMENT PROGRAMME

178

Chapter 13 SOUTH AFRICA’S REIPPPP ROUND THREE RESULTS AN OPPORTUNITY FOR THE CONTINENT

192

Chapter 14 RENEWABLE ENERGY AS A DRIVER FOR ECONOMIC GROWTH IN SOUTH AFRICA

198

Chapter 15 DESIGNING THE NET ZERO ENERGY BUILDING

214

Chapter 16 ENERGY TRANSFORMATION - WHAT WILL IT TAKE?

242

Chapter 17 EFFICIENT OPERATION OF MUNICIPAL WASTE WATER TREATMENT PLANT ANAEROBIC DIGESTERS FOR THE GENERATION OF ELECTRICAL ENERGY

256

INDEX OF ADVERTISERS

275 & 277

CONTENTS

Chapter 11 CASE STUDIES - SOLAR WATER HEATING

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PROFILE: ECONOMIC DEVELOPMENT SOLUTIONS

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CHAPTER 1: RURAL SUSTAINABLE RENEWABLE ENERGY DEVELOPMENT PROJECTS

By Yats Gopaul Director CAPEAFRICA-RES (Pty) Ltd

RURAL SUSTAINABLE RENEWABLE ENERGY DEVELOPMENT PROJECTS South Africans have seen a major political shift over the last 20 years and the people’s expectations of a better life have not fully materialised, especially for those from previously disadvantaged communities. There are some glaring contributions to this, these being unemployment and poverty. To make things more difficult, we have to deal with the following facts: • A major energy shortage in the country • Energy demand is on the increase • Large parts of rural South Africa have no access to energy, yet energy is a prerequisite for industrial development, and hence an avenue to create jobs • The government’s current programme on renewable energy is through the bidding process which is dedicated to supplying the Eskom grid - which does not currently not reach all the people • The carbon footprint must be reduced • Since 1994, there has been a stated political commitment to deliver “electricity to all” Given the current programme of reducing the energy deficit by government, it is going to take a very long time for the major part of the country to become beneficiaries of this programme, that major part being rural South Africa. As government and business, we can find a solution, and this solution can work in tandem with the current energy projects being undertaken by government. For this we must look for “out of the box” solutions to address the need for rural electrification. These “out of the box” solutions must answer the critics’ questions on: • Sustainability • Management • Funding The Proposal The following resources are readily available in the rural areas: • Sun • Wind • Land that is available for development SUSTAINABLE ENERGY RESOURCE HANDBOOK

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Almost all rural areas are formed from land that belongs to the Tribal Chiefs. Almost all residents do a bit of subsistence farming, whilst a lot of available land that remains underdeveloped. One main reason for underdevelopment is the lack of electricity.

Let us look at the following proposal: 1. Install in a particular area, the following: • Small wind turbine or turbines supplying about 500 kW to 1 MW • Solar PV system supplying about 500 kW • Biomass System supplying a few hundred kW 2. Configure these into a hybrid system with a “smart energy storage” system such as the hydrogen fuel cell technology available from Adkor in Germany. Hydrogen fuel cell technology is environmentally friendly, and can store up to 250 kW of energy, and with improvements it can store up to 500 kW. 3. Equip the rural community to set up an agricultural facility to farm cash crops, grains/maize or speciality produce. 4. Invite on site a suitable pack-house or food processing business to pack fresh vegetables, pickles or process maize. The pack-house or food processing facility can belong to the community or to the private sector or both. 5. This system can be either grid or non-grid. If it is grid tied, then there would be no need for an energy storage facility.

The following figure is a model of what this proposal could look like:

Figure 1 Model of Proposed Rural Electrification and Agricultural Development

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This proposal is dependant on the following acting as partners: • The Rural Community • Local, Provincial & National Government • Business

The Role of the Rural Community The rural community would need to be organised, with the assistance of local infrastructure and leadership such as the Tribal Chiefs and/or local councils, and form either a co-operative or a trust to manage and work the farm. They should also form an integral part of the management of the electricity generation body. This structure should formalise and embark upon the following: • Farm cash crops such as vegetables, high value crops such as herbs, together with other crops such as maize and fruit • Provide employees to the on-site pack-house and/or processing plant • Provide the staﬀ to be trained to manage, maintain and operate the electricity generation and storage system.

The Role of Government National government would need to lead such a process through carefully drafted legislation and policies. We don’t have to look far beyond our borders for examples. In 2005, Tanzania established a “Rural Energy Agency”, under the Rural Energy Act No 8 of 2005, whose main functions are that it: • “Promotes, coordinates and facilitates private sector initiatives and entrepreneurship in rural energy supply. • Ensures continued electriﬁcation of rural commercial centres and households • Promotes accessibility and aﬀordability to low income groups • Promotes increased availability of power (both grid & non-grid) • Quality Control: Standards, norms, guidelines • Continued research, development and application of appropriate rural energy solutions” Extract from the presentation by Eng. Bengiel Humphrey Msofe, Director for technical services, Rural Energy Agency of Tanzania, titled “RURAL ENERGY ACCESS THROUGH OFF-GRID RENEWABLES A PERSPECTIVE FROM TANZANIA” Government would need to establish a relevant policy framework, creating a “Rural Energy Act” which would then lead to the establishment of a “Rural Energy Agency”. The act would need to address the following: • Incentivise businesses to set up processing plants on the farms whereby energy, fresh crops and labour shall be available. The incentives can be in the form of tax relief or direct capital injection through government agencies • Establish a means of funding such a process through a tax levy or similar • Establish a Rural Energy Agency • Empower a trust agency such as the Development Bank of SA (DBSA) to mange the funds of such an agency SUSTAINABLE ENERGY RESOURCE HANDBOOK

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• Allow access to the grid (if within reach) to allow for excess power to be supplied into the grid, hence securing a potential additional income stream for the project • Establish a means of taxation of the non-grid electricity – not into government coﬀers

The Role of the Business The business sector would be represented by retailers, who had been incentivised to participate in such project. The incentives could be granted through suitable legislation and directed towards tax beneﬁts or maybe BBBEE points. Food processing companies to create value-added products such as pickles and sauces could be located on site. This would create the benefits of low transport costs of raw materials and therefore lower carbon costs, enhanced crop freshness, reduced waste, and low or no cost for waste disposal which shall be utilized by the biomass plant. Some of the business activities on site could be: • Packaging fruit, vegetables and fresh herbs for retailers, markets and export/s. • Pack-house for fruit packing and storage • Processing and manufacturing of value-added products and condiments such as pickles, jams, sauces and dried herbs. • Processing maize/grain crops into ﬂours, semolina, etcetera.

Energy Sources The following energy sources could feed into the system: Wind A small wind farm comprising of smaller size turbines that are locally manufactured which have a grid mast, and that is easily maintained could be established. The total wind supply could be up to 3 MW, comprising about 6 x 500 kW turbines. This would totally depend on the size of the community and the demand of the processing plant. It would also depend on the wind resources in the particular area. The need for wind resource assessment could be funded by the government agencies such as the Department of Trade & Industry, the Department of Agriculture and/or the DBSA. Solar PV A Solar PV plant could be built. It would not need to be as big as the wind farm, but of up to 1 MW capacity. The Solar PV would be connected to the same smart grid hybrid system as that of the wind farm. Biomass The agricultural waste generated by the local agricultural activity could be utilized by a small biomass plant. This plant would be connected into the same smart grid hybrid system.

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Energy Storage One of the challenges posed in any non-grid system is to maintain a continuous supply of electricity. The German company Future E has developed the “Hydrogen Fuel Cell Technology” system which is made available in South Africa and Africa through Adkor and CAPEAFRICA-Res. This technology is environmentally friendly and oﬀers storage of up to 300 kW. With improvements, the basic system can be further developed to have a storage capacity of up to 500 kW. This system can ensure that there is continuous supply unless there is a prolonged period of no light, no wind and no waste, which is highly improbable.

Figure 2 Smart Technology Energy Storage System Courtesy of Adkor & Gmbh & Future E of Germany

Major Potential Benefits of Proposed Model 1. 2. 3.

Rural community benefits from access to energy, hence improved quality of life Education - schools can be built on the land as energy access can ensure availability of technology for schooling Employment through: • Processing Plant/Pack-house • Power Generation Operations, Maintenance & Management • Farming Economic empowerment

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6. 7. 8.

Skills development in: • Agro-processing • Food Technology • Energy technology • Management • Administration Reduced rural ‘push’ factors leading to increased urbanization More small local infrastructural development at local centres - such as libraries, clinics etcetera Political commitments being met

Conclusion In conclusion we must emphasise that this approach could be very ‘doable’, and be very successful in overcoming some of the challenges facing the country and the continent. All it requires is the stakeholders with the belief and enthusiasm to drive such a developmental model.

References: 1. 2. 3.

4. 5.

“Creating a long term ﬁnancing framework for South Africa’s climate change response” – Presentation by Chantal Naidoo at COP 17 Workshop – Environmental Finance DBSA Eskom IDM – Small Scale Renewable Energy – Danie Pienaar Regional Regulatory Action Plan for the Western Cape – A study Commissioned by the Western Cape Government & GTZ – Authors: Jonathan Current, Liteboho Makhele, Andrew Jakubowski, Mike Goldblatt, Ole Langiss, Timo Basteck, Andreas Schiﬀner “Rural Energy Agency and Innovation in Delivery of Modern Energy Services to Rural Areas” – Presentation by Justina P. Uisso - Rural Energy Agency Tanzania RURAL ENERGY ACCESS THROUGH OFF-GRID RENEWABLES - PERSPECTIVE FROM TANZANIA by Eng. Bengiel Humphrey Msofe - Director for Technical Services - Rural Energy Agency (REA) – Tanzania

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PROFILE: GREY GREEN SUSTAINABLE ENERGY ENGINEERING

Overview Grey Green is a sustainable energy engineering consultancy. Our reason for existing is to harness our skills and experience to develop projects with strong value propositions for our clients that utilize sustainable energy- energy that is accessible, cleaner and more efficient- in order to conserve our natural resources and preserve the environment while promoting socio-economic development in an innovative, sustainable, collaborative and holistic manner. Established in 2010, Grey Green is currently a Level 2 BBBEE accredited company based in Cape Town and operates throughout Southern Africa servicing primarily large industrial clients. Our team of energy experts comprises industrial, mechanical, electrical and computer engineers. In addition, our energy auditors have internationally recognised certifications. Grey Green is also an ESKOM accredited Energy Services Company (ESCO). Services Offered • Energy efficiency audits, monitoring & load profiling • Develop projects & business cases for various energy saving interventions customized for each client • Turnkey embedded generation solutions, primarily Solar PV (on- & off-grid, roof- & ground-mounted) • Facilitate access to ESKOM rebates & other incentives • Consulting, project management, site supervision & advisory services Our Values

Benefits to Clients • Guaranteed cost savings • Project ﬁnancing • Positive cash ﬂows from day one • Vendor independence • New upgraded equipment • Long term partnerships • Reduced carbon footprint

Integrity

Enjoyment

Flexibility Sustainability

Director Profiles Gary Fahy Industrial Engineer (UP) Masters in Sustainable Energy Engineering (UCT) Certified Energy Auditor (AEE) Vincent Lane Mechanical Engineer (UCT) Masters in Sustainable Energy Engineering (UCT) SAIMechE and ISES member Nishen Brijraj Computer Engineer (UP) MBA (UCT GSB)

Quality

Innovation

Contact Us +27 (0) 21 447 7801 info@greygreen.co.za www.greygreen.co.za Unit 403 Salt Circle, 19 Kent Rd Woodstock, Cape Town, 7925 Reg. No: 2010/008872/07

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CASE STUDY: GREY GREEN SUSTAINABLE ENERGY ENGINEERING

INDUSTRIAL ENERGY EFFICIENCY INTERVENTIONS CASE STUDY Author: Nishen Brijraj, Director, Grey Green Sustainable Energy Engineering (Pty) Ltd

The case study presented here is based on an automotive parts manufacturing plant in the Western Cape. The high level energy auditing process is shown below in various possible stages. The figure also highlights the potential for increasing savings that can be achieved at each stage. Subsequent stages can usually be partially funded by the savings achieved in the predecessor stage so the capital outlay is kept to minimum and within our client’s budget while creating a positive savings spiral. The offering can also be tailored to include only the selected stages that meet the client’s requirements. After the ESCO (Grey Green) conducted an on-risk diagnostic energy audit at the client’s plant during 2012, multiple energy saving initiatives were identified and recommended in detailed business cases. The client preferred a shared-savings business model in which the interventions were financed by the ESCO and then paid for as a percentage of the verified savings over a fixed and agreed period. These payments occur only after the project installations have been completed and as savings are realized. The client therefore takes very little upfront risk, does not need to wait for and/or go through any major CAPEX approvals or budgeting cycles and has a positive cash flow from day one. The first three interventions that were implemented were at absolutely no upfront cost to the client. The client is currently saving an estimate of 1.5 million kWh hours per year. The average annual demand savings thus far are 170 kW. The actual cost to the client thus far has been approximately R2600/kW saved, all paid for from their monthly savings. The high bay lighting retrofit utilized the ESKOM Standard Offer Programme rebates while the fluorescent lighting retrofit utilized the ESKOM Standard Product Programme rebates. The compressed air system optimization is currently in progress. The total savings are shown by intervention type in the diagram below. The interventions are provided with performance guarantees, pre- and post-installation monitoring as well as a maintenance plan which ensures that all savings are sustained.

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Future interventions planned at this plant include the introduction of Variable Speed Drives (VSDs) on cooling towers, intelligent control of extraction fans, motion sensors for lights, eﬃcient heating and cooling systems for process baths and waste heat recovery. Once these interventions have been completed, there is also the potential for embedded generation using a grid-tied rooftop solar PV system to further reduce consumption. The client shall also beneﬁt from various manufacturing sector incentives such as the Manufacturing Competitiveness Enhancement Programme (MCEP) for assistance with funding these interventions in addition to already having accessed the ESKOM rebates to subsidize their projects. Grey Green has now also been requested to facilitate similar intervention projects at the other divisions within the entire group of companies. Whilst all the interventions result in substantial savings and reduced demand charges for the client, they also improve the competitiveness of the client’s core business, reduce their carbon footprint and reduce any potential carbon tax burden.

Grey Green Email: info@greygreen.co.za Tel: +27 (0) 21 447 7801 Fax: 086 588 11 99 Website: www.greygreen.co.za Physical & Postal Address: Office Suite 403, Salt Circle, 19 Kent Rd, Woodstock, Cape Town, 7925

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PROFILE: IPC INDUSTRIES

IOI LODERS CROKLAAN EUROPE EMBRACES SAVINGS POTENTIAL OF EFFECTIVE INSULATION AT NEW ROTTERDAM FACILITY IOI Loders Croklaan, a leading global producer and supplier of vegetable oils and fats, recently opened its new facilities in the Port of Rotterdam. The new factory which produces enzymatically rearranged food ingredients, represents a significant breakthrough in the oils and fats industry in terms of innovation. The plant also meets with IOI Loders Croklaan’s long-term strategic goals in the area of sustainability. It features the latest technologies to recover heat, minimize CO2 emissions, and reduce energy wastage. When designing the plant, IOI Loders Croklaan worked closely with environmental surveyors to minimize impact to the local environment and ecosystems. One uninsulated valve, for example, equals at least 5 metres of uninsulated pipe. According to calculations by the NCTI, the “Nederlands Centrum voor Technische Isolatie (Netherlands Centre for Technical Insulation)“ show that effective insulation of one single valve in an outside 220°C diameter DN 150 steam pipe can save up to 9,650m3 of gas per annum. This represents a yearly saving of almost € 3,000 against a modest investment of around € 200, i.e. a Return On Investment of less than 2 months. Working with ROCKWOOL Technical Insulation, the new IOI Loders Croklaan plant is now fully insulated

About ROCKWOOL Technical Insulation ROCKWOOL© Technical Insulation, a subsidiary of the international ROCKWOOL Group, is the worldwide market leader in technical insulation with more than 75 years of experience. With our two product lines, ProRox and SeaRox, we cover the whole industrial and marine & offshore market, providing a full range of products and systems for thermal and firesafe insulation of technical applications. Key applications include insulation for pipe work, vessels, boilers, storage tanks, columns etc. of industrial plants, and insulation of fire rated constructions, bulkhead and deck constructions, engine rooms, doors, panels and floating floors for the marine and offshore sector.With a strong focus on sustainability, ROCKWOOL Technical Insulation sets the standard in innovative solutions, high quality service and a wide range of products with an unrivalled performance. Throughout the whole chain from specifier, through dealer to contractor and installer we aim to add value. We don’t just sell products, we supply solutions. It’s this total approach that makes us the ideal choice for professionalism, innovation and trust. For more information, please visit www.rockwool-rti.com.

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PROFILE: IPC INDUSTRIES

IPC INDUSTRIES East Rand-based IPC Industries is a manufacturer of polyisocyanurate and polyurethane insulation foam ranging in density from 35 kg/m3 to 80 kg/m3. The 30-employee company, whose premises are situated at the corner of Ellis and Struben roads, in Alrode South, near Alberton, also manufactures insulating plasters and cements – from limpet plaster for boilers to thermal insulating cement that can withstand temperatures of between 300 ˚C and 1 000˚C. IPC Industries – which primarily supplies the industrial and petrochemicals sectors – is also the sole South African importer of Rockwool from the Netherlands and Foamglas from Belgium. A company spokesperson says IPC Industries is the only local company than can cut pipe bends and heat exchanger dome heads to specification. It also specialises in related products for the insulation industry, including joint sealers, foils and tools. IPC Industries, which is a Makita, Gedore and Hitachi agent, also has a large recycling division, where both rigid foam and Rockwool waste material is recycled for various industries, including hydroponics and building. The company’s major recent contracts include supplying Rockwool 168 wire-back mattresses for the ducting at Eskom’s Kusile power station; PIC rigid foam and Foamglas for the EPU5 project at Sasol 1, in Sasolburg; Rockwool and foil for the Sasol Sastech tank; steel and Rockwool for the new Sasol wax plant; and Rockwool for the Sasol Omnia plant.

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CHAPTER 2: WILL SOLAR WATER HEATERS DELIVER ON THE PROMISE OF GREEN JOBS?

Ntombifuthi Ntuli Director: Renewable Energy Industries Department of Trade and Industry

WILL SOLAR WATER HEATERS DELIVER ON THE PROMISE OF GREEN JOBS? Introduction In 2008, South Africa experienced a severe power crisis that had a severe negative impact on the economy (Calldo, 2008). This was the first signal that the future of electricity supply was in question unless drastic measures were taken to address the situation. Before then, electricity had always been abundantly available at low prices in the world of 0.25c/KWh on average (Edkins et al, 2010) due to cheap coal and the fact that power stations had long been paid off. However, due to economic growth, population growth and electrification of new households, the demand for electricity started to exceed the supply, leading to a crisis. The 2008 power crisis, as well as the steep increases in electricity prices – around 170% between 2008 and 2013 – resulted in awareness amongst average South Africans about the need to use electricity more efficiently. Government also focused on strengthening energy efficiency and energy generation policies and initiatives. Government initiatives involved implementation of the Energy Efficiency Strategy of South Africa which was approved in 2005, which set a national target for energy efficiency improvement of 12% by 2015 (Department of Minerals and Energy, 2005). Eskom’s New Build Programme was approved with a plan to finance it through the multiyear price determination which would see electricity prices increasing from 0.25c/kWh in 2008 to about 66c/kWh by 2013. The second revision of the Integrated Resource Plan was approved in 2010, which mapped out South Africa’s electricity supply plan from 2010 up to 2030 (Department of Energy, 2011). One of the initiatives that were seen as a low hanging fruits in terms of achieving a reduction in the energy demand was that of solar water heaters (SWHs), since water heating accounts for almost one third of a household’s energy needs (Gouws and Le Roux, 2012). According to Gouws and Le Roux (2012) electricity utilization of the residential sector in South Africa is estimated to account for almost 35% of the peak demand, with water heating consumption at approximately 40% of this peak demand. It has been proven that implementing energy efficiency measures in buildings demonstrates significant reductions in energy usage. Buildings are responsible for more than one third of total energy use and associated greenhouse gas emissions in society, both in developed and developing countries (Cheng et al, 2008). The International Energy Agency (IEA) statistics estimate that globally, the building sector is responsible for more electricity consumption than any other sector, which amounts to 42.5%. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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CHAPTER 2: WILL SOLAR WATER HEATERS DELIVER ON THE PROMISE OF GREEN JOBS?

The installation of one million SWHs by 2016 is one of the programmes that aims at reducing the demand for electricity by 630 MW (Maia et al, 2012). The Green Economy Accord (Department of Economic Development, 2011) also recognises the importance of solar water heating systems in addressing climate-change targets, reducing demand for grid electricity and increasing the number of South Africans who have access to hot water, while creating jobs in terms of manufacturing the units and in their installation. The objective of this paper is to analyse the job creation potential of the SWH industry. The history of the SWH industry will be discussed in order to set the scene. In order to determine the estimated size of the South African market, the future of the industry is discussed. The paper then delves into the designation of SWH, which discusses government interventions on creation of local industry. Finally, job creation in the SWH industry is discussed before drawing conclusions of the discussion.

The History of SWH in South Africa The South African SWH industry experienced significant growth during the periods 1979 to 1983 averaging 42% per year (supported by marketing efforts by the CSIR during the late 1970s and early 1980s). Growth in the period of 2005 to 2008 reached an average of 72% per year prompted by Eskom and CEF marketing efforts during that period (Edkins, et al; 2010). Three peaks can be seen in Figure 1 which depicts the distribution of glazed units between the domestic and commercial sectors over the period 1973 to 2005. The graph indicates that there was a shift between 2001 and 2005 from domestic to commercial applications (Holm, 2005).

Figure 1 Glazed domestic and residential units Source: Holm (2005)

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Cawood and Morris (2002) (in Banks and Schäffler, 2006) estimated that approximately 484 000 m2 of SWH collectors had been installed in South Africa by 2002, while Holm (2005) indicated approximately 756 000 m2, delivering approximately 993 GWh/annum. In 2008, for the first time in South African history, total (glazed and unglazed) collector sales reached 100,000 m2. According to Edkins, et al (2010), sales expanded by up to 400% during the first four months of 2008 during the load shedding period. The number of active companies in the SWH industry was also thought to have grown from 21 companies in 2007 to over 100 in 2008. After the 2008 power crisis, the market for SWHs in South Africa continued to pick up. This growth was supported by a number of programmes that were all aimed at relieving pressure off the Eskom grid while reducing the climate change impact of the electricity sector in South Africa. A draft of the South African National Solar Water Heating Framework and Implementation Plan was presented in November 2009, which highlighted a target of one million SWHs within the following four and a half years within all categories of formal households (Edkins, et al; 2010). The Eskom rebate programme was set up as part of the Demand Side Management (DSM) programme. This created significant demand for SWHs particularly in the low pressure segment. The programme increased the uptake of SWHs to 220 000 during the 4 year period 2008 – 2012. Over and above the Eskom programme, the Department of Energy (DOE) set up a programme funded through the national fiscus called the Division of Revenue Act (DORA) funding (through Eskom). This fund was aimed at supporting municipalities in order to escalate installation of SWHs. Under this programme, 25000 units were installed. There was significant funding directed towards SWH installation from the Donor agencies such as DANIDA, whereby 5000 units were installed. Up until around 2008, South Africa had a moderate sized SWH industry, with 19 manufacturers identified by Cawood and Morris (2002) (in Banks and Schäffler, 2006), and only 11 identified by Holm (2005). According to Banks and Schäffler (2006) there were two main types of panels sold at the time, namely: low temperature unglazed panels, mostly used for swimming pools and glazed medium temperature panels, used for domestic or commercial water heating. Schäffler (2008) warned that even though a wide range of products was available on the market at the time, the industry was faced with severe limitations in terms of SWH standardisation, awareness, affordability and financing, which ultimately prevented widespread technology adaptation. Over the last five years the South African SWH market has been dominated by imported evacuated tube collectors. According to Holm (2013) the total reported installations amounted to 325 774 in 2013. Of these 60 282 units are flat plate systems and 265 492 (82%) are low-pressure evacuated tube systems. Thirteen local SWH companies were identified by LTE Energy (2012) that manufacture SWH flat-plate panels. There is only one company that manufactures evacuated tube collectors in South Africa, which was established in 2013.

The Future of the SWH Industry in South Africa The demand for SWHs is expected to increase between 2013 and 2016. This was first hinted at in the Green Economy Accord (Department of Economic Development, 2011) whereby government, business, labour and civil society committed to increasing the roll-out of SWHs to one million units by 2014. According to the Accord, government committed to ensure that the goal of installing one million SWHs at household level by 2014 is reached. Business committed to SUSTAINABLE ENERGY RESOURCE HANDBOOK

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working with government to develop, establish and then publicise a sustainable funding plan to support the installation of one million SWH systems. Business, labour and community constituents welcomed the legislative requirement that solar water heating or other forms of low carbon water heating methods will be required in new buildings which was expected to be promulgated before the end of 2011, and committed to working with government on an awareness campaign to promote compliance with the new legislation. The parties further committed to improve localisation of components, secure support from the insurance industry for replaced units, secure guarantees on installed units, promote the marketing of solar water heating systems and promote uniform technical and performance standards for SWHs. Several of the Green Economy Accord commitments have been, and continue to be, put into action. In 2012 government committed financially to the target of one million SWHs by announcing a budget of R4.7 billion for the roll-out between 2013 and 2016. This fund would cancel the rebate system which would be replaced by direct procurement by Eskom. This change of model would allow government to align the SWH programme with industrial development imperatives, thus increasing the potential for local job creation. However, between 2007 and 2010, the market experienced volatile growth, plagued by malfunctioning products, fly-by-night companies, and incorrect installation and application of the products. Nevertheless, market growth continued, albeit slower than expected, as many suppliers experienced a decline after this initial boom. This was caused by the negative reputation that SWHs were receiving, due to conflicting information and incorrect product application, as well as initial challenges in the development of the rebate program.

Evacuated tubes manufactured in South Africa, Source: Zakhele Mdlalose (DTI)

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DORA funding is expected to continue playing a part in the 2013/14 financial year. A total of R114.4 million was approved in the financial year 2011/12 for three municipalities (Sedibeng, Musina and Umsobomvu) for the installation of 30,000 SWH units. The Department of Trade and Industry (DTI) has facilitated the amendment of Building Regulations. The new regulations, SANS 10400 XA â&#x20AC;&#x201C; Energy Usage standard, which was promulgated in November 2011, stipulate that any new commercial and residential building will have to receive at least 50% of its hot water requirements from renewable energy sources such as solar water heating. This requirement is estimated to create a demand of about 500 000 SWH systems between 2013 and 2016. The LTE study estimated that the private buyersâ&#x20AC;&#x2122; market will increase to about 20 000 high pressure units per annum during this period. The last issue addressed in the Green Economy Accord with regards to SWHs that may have a significant positive impact on the future market of the SWH industry is the insurance replacement market. The signatories of the Accord committed to secure support from the insurance industry for replaced units. This requires serious negotiation between government and the insurance industry to ensure their buy-in as the geyser replacement market is a huge potential that remains untapped. All these initiatives by government are intended to increase the local demand for SWHs, thus increasing the size of the local market. The demand created supports the local content requirements and increases the economies of scale required to justify local manufacturing.

Designation of SWHs The revised Preferential Procurement Policy Framework Act (PPPFA) regulations, which came into effect on the 7 December 2011 empower the DTI to designate industries, sectors and sub-sectors for local production at a specified level of local content. The Industrial Policy Action Plan (IPAP) prioritises Green Industries, as one of the focus sectors with potential for contribution to economic growth. SWHs is one of the Green Industry Sectors that were given priority in the IPAP 2012-13. The objective was to designate this sector in order to increase the demand and develop local supply through regulation and development of local industry thus creating more employment and technical skills on installation, maintenance and services (Department of Trade and Industry, 2012). The research on the designation of SWHs was finalised in 2012 and concluded that most of the local manufacturers produce storage tanks and most of the emerging manufacturers produce flat plate collectors, at small scale. A local content level of 70% was to be prescribed for SWH systems procured through government programmes. This encourages creation of a domestic market and increased export opportunities to the rest of Africa and other markets for the domestic producers, which in turn increases opportunities for local employment creation. The designation of SWHs has been finalised and will be implemented with the next roll-out of SWHs through Eskom and municipalities. The key to successful creation of local industry is the security of the market with a long term view. The South African government has ensured that there is a significant market size and that there will be adequate demand for SWHs over the next five years, which should sustain local manufacturers. Government, through the DTI, provides several manufacturing incentives, including the Manufacturing Investment Programme (MIP), the Section 12i tax Incentive, the Manufacturing Competitiveness Enhancement Programme (MCEP), and the Foreign Investor Grant (FIG). SUSTAINABLE ENERGY RESOURCE HANDBOOK

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Financial support is offered for various economic activities, including manufacturing, business competitiveness, export development and market access, as well as foreign direct investment. All these incentives are aimed at enhancing local manufacturing activities that are promoted through localisation.

Job Creation in South African SWH Sector All the work that has been executed by government within the SWH industry has been aimed at reducing energy poverty by increasing access to water heating, while creating an industry that will result in job creation. According to Maia, et al (2011) installation of SWHs is the biggest driver of job creation in this sector, due to the high labour-intensity of retrofitting hot water systems in high income housing. One of the early investigations into the potential for green jobs conducted by Agama Energy Study in 2003 (Austin et al, 2003) indicated that the most optimistic projection of employment in the SWH industry was 118,421 direct jobs by 2020, while offsetting the consumption of 13,560 GWh. However more recent investigations have been conducted, and in their Green Jobs Report, Maia, et al (2011) argued that despite progressive market growth, the number of jobs in the manufacturing of solar panels is expected to remain relatively low due to the economies of large scale in production, needed to attain a high degree of competitiveness and sustain manufacturing viability through export market penetration. The study further argued against the expectation of job losses in the electric geyser industry since electrical geyser producers would shift to SWH tank production as the market expanded. The allocation of R4.7 billion by government to meet the target of one million solar water heaters by 2016 that is stipulated in the Green Economy Accord is positive sign that government is committed to the objectives of job creation through the green economy. Government expenditure will create a market that is expected to boost the local industry, especially considering the recent designation of SWH products. Designation has increased the prospects for job creation, since there will be an increase in sustainable manufacturing jobs. The IDC/DTI SWH Designation study (LTE Energy, 2012) suggested that in 2011 only around 200 people were employed in SWH manufacturing in South Africa compared to around 1,300 people employed in SWH installation. This therefore is due to change as imported products will be playing a minimum role in the local market. With the introduction of the high-growth phase, the job creation is expected to increase to 1000 jobs in manufacturing and around 8000 jobs in installation, according to LTE (2012). The IDC/TIPS/DBSA (Maia, et al; 2011) study conducted an analysis on the potential job creation by the SWH industry and concluded that in the short term only 158 manufacturing jobs will be produced, in the medium term this figure is expected to increase to 555, and then increase to 1225 in the long term. They were not very conservative with the installation jobs, considering that retrofitting geysers in middle to high income households may prove to be labour intensive. Therefore in terms of installations, the study suggested 1345 jobs in the short term, 8932 jobs in the medium term and 16278 in the long term. In total the study suggests that 17622 jobs may be created in a long term. Wlokas and Ellis (2013) add that the potential for job creation in manufacturing, retail sales, as well as system design and installation needs to result from increased adoption of SWH technology in addition to local job creation from business development in

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SWH-related technologies. They further emphasise the importance of training local residents as this creates capacity for maintenance. Wlokas and Ellis (2013) suggest that the challenge in enhancing the employment impact of the low pressure SWH industry lies in ensuring the creation of long-term employment and support of enterprise development, which will require progressive government policies, and providing funding and guidance for the installing companies to allow them to engage with local job creation in a meaningful way. One method that South Africa is implementing in order to make headway with regards to job creation in the SWH industry is designation. The SWH tanks and collectors have been designated at 70% local content each and that implies that as these products begin to be manufactured locally, the job creation projections in the previously mentioned studies will begin to be realised. While trying to increase the number of jobs in the SWH market due consideration has to be given to the fact that continuous training of installers is key to the long term success of the programme, as the programme will be up-scaled. According to Wlokas (2011) SWHs not only provide employment creation for the country, but they also contribute positively to the alleviation of energy poverty through providing a constant source of heated water.

Conclusion As demonstrated in this paper, the SWH industry in South Africa has a long history of existence; it is not new technology and is definitely not a new phenomenon. Even before the designation of SWH, there were more and more locally manufactured products being introduced in South Africa. These had a tough battle in the market due to the influx of cheap (sometimes poor quality) imports, which made local manufacturers uncompetitive. However, the SWH programme is funded from the South African fiscus and with the high level of unemployment in the country, it would be inappropriate for South Africa to support job creation in other countries by importing their products, hence the importance of localisation. Both the IDC/TIPS/DBSA Green Jobs Study and the IDC/DTI Solar Water Heater Designation Study give an indication that the potential of job creation from local manufacturing of SWHs may not be as significant as anticipated. However, with the size of the market, local content requirements, establishment of more local factories, sourcing of components such as glass and aluminium locally, and restricted entry of cheap imports, South Africa may be in a position to balance the economies of scale and increase the number of manufacturing jobs. It must be noted that not only new jobs are important in this regard, retaining existing jobs is as essential. The geyser manufacturing industry is well established and therefore not a lot of new jobs are expected in this sector, most new jobs will come from manufacturing and assembling of collectors. The current Eskom procurement system for SWHs makes local content a requirement thus stimulating local employment. The past four years has been a good learning phase for the SWH industry and it is believed that sufficient skills have been developed in order to ensure that quality standards are met in terms of installation. As SWHs are rolled out the importance of involving local communities cannot be overemphasized. It remains a responsibility of the installing companies (either voluntarily or through

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PROFILE: TECHNOPOL

TECHNOPOL ENERGY EFFICIENT BUILDING PRODUCTS Technopol established in 1993, manufactures and supplies Expanded Polystyrene Insulation Products to both domestic and export markets. In our Springs factories we mould and process Expanded Polystyrene Products into a multitude of Insulation Solutions. As a bulk Insulation producer, we work closely with consumers and contractors to develop systems for the building Industry. We manufacture Insulation Elements for Wall, Roof and Floor Applications. All our products are Fire Retarded and produced without using any CFC’s of HCFC’s. Technopol is a founder member of both the Expanded Polystyrene Association of South Africa and Thermal Insulation Association of SA and we are proud to be part of the initiative to protect our environment by implementing energy efficient living.

Let’s look at the price we pay for thermal comfort If you can afford electricity, remember the irresponsible consumption of this resource results in fossil fuel emissions polluting our environment, i.e. Sulphur, CO2 and NOx (GHG Emissions). For those who can afford air-conditioning equipment, be reminded they contribute to the HCFC build up in our atmosphere. We now know that HCFCs have a thousand times the heat trapping ability of CO2. If the reduction of GHG emissions is our objective then HCFC liberating processes should be reduced. If you can’t afford the above, you have to burn coal and wood to prevent element exposure. This could damage your lungs and cause respiratory diseases thus placing major cost pressures on the health care system in SA. All this while creating smoke pollution and liberating more GHG.

The solution is so simple Design energy efficient and introduce sufficient thermal insulation and see the benefits: • Energy costs for space heating and cooling will reduce by between 35 and 60 percent. • Energy resource will be conserved. • Pollution will be reduced. • GHG emissions will reduce. • Occupants will be healthy because of the thermal comfort of their dwellings. All these benefits for less than 10% of the average building cost. Technopol (SA) Pty Ltd 9 Wright Road, Extension Nuffield, P.O. Box 2445, Springs, 1560 Lammie de Beer, Managing Director Tel: 011 363 2780 | Fax: 011 363 2752 E-mail: info@technopol.co.za

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contractual obligations) to employ people within the benefiting communities and ensure that they receive appropriate training (whether formal or informal) to deliver quality installations. However basic skills levels are key to ensuring that these people are trainable, and that is the responsibility of government. This paper set out to answer the question of whether the SWH industry will deliver its part of the 300 000 jobs committed in the Green Economy Accord to be delivered by the green economy by 2020. Based on the analysis and the history of job creation in this sector since 2008, the recent designation of SWHs for local procurement, and the projected job creation figures, it seems this industry has a very high potential to deliver on the green jobs commitment. The pace at which the commitments made in the Accord are being implemented gives confidence that government is serious about creating an enabling environment for this industry to develop and reach its full potential.

References Austin, G., A.Williams, G. Morris, R.Spalding-Fecher and R. Worthington (2003), Employment Potential of Renewable Energy In South Africa, Report by AGAMA Energy (Pty) Ltd, The Sustainable Energy and Climate Change Partnership, Johannesburg, pp 42 Banks, D., and J. Schäffler (2006), The potential contribution of renewable energy in South Africa: Draft Update Report, Sustainable Energy and Climate Change Project, Johannesburg, pp 20 -21 Calldo, F. (2008), Eskom’s power crisis: Reasons, impact & possible solutions, Report compiled for Solidarity Institute, Pretoria, pp 13 -14 (www.solidarityinstitute.co.za) Chang, K., W. Lin, G. Ross and K Chung (2011), Dissemination of solar water heaters in South Africa, Journal of Energy in Southern Africa, Vol. 22 No 3 Cheng, C., Pouffary, S., Svenningsen, N., Callaway,M., The Kyoto Protocol, The Clean Development Mechanism and the Building and Construction Sector – A Report for the UNEP Sustainable Buildings and Construction Initiative, United Nations Environment Programme, Paris, France , 2008, pp. 1. Department of Economic Development (2011), New Growth Path Accord 4: Green Economy Accord, Republic of South Africa. Department of Minerals and Energy (2005); Energy Efficiency Strategy for South Africa, Republic of South Africa Department of Energy (2011), Integrated Resource Plan 2010 to 2030, Republic of South Africa Edkins, M., AMarquard and H. Winkler (2010), South African Renewable Energy Policy Roadmaps, Energy Research Centre, University of Cape Town. pp. 1-3, 8 Gouws, R., and E. Le Roux (2012), Efficiency and cost analysis of a designed in-line water heating system compared to a conventional water heating system in South Africa, School of Electrical, Electronic and Computer Engineering, North-West University, Potchefstroom, South Africa, Journal of Energy in Southern Africa, Vol 23 No 3, pp 9

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Holm, D. (2005), Market Survey of Solar Water Heating in South Africa for the Energy Development Corporation (EDC) of the Central Energy Fund (CEF), Sandton Holm, D. (2013), The status of solar water heaters in 2013, Energize - April 2013, pp 54 LTE Energy (2012), Designation of the Solar Water Heater Industry, A joint study by Department of Trade and Industry and Industrial Development Corporations, Pretoria, pp. 34 Maia, J., T.Giordano, N. Kelder, G. Bardien, M. Bodibe, P. Du Plooy, X. Jafta, D. Jarvis, E. Kruger-Cloete, G. Kuhn, R. Lepelle, L. Makaulule. K. Mosoma, S. Neoh, N. Netshitomboni, T. Ngozo, and J. Swanepoel, (2011), Green Jobs: An Estimate Of The Direct Employment Potential Of A Greening South African Economy. Industrial Development Corporation, Development Bank of Southern Africa, Trade And Industrial Policy Strategies. Johannesburg. pp. 22 -38; 89 Schäffler, J. (2008), UNDP/GEF Solar Water Heaters (SWHs) for Urban Housing in South Africa, Nano Energy, Johannesburg, 2008 South Africa’s renewable energy policy roadmaps; Wlokas, H. L. (2011) What contribution does the installation of solar water heaters make towards the alleviation of energy poverty in South Africa?, Energy Research Centre, University of Cape Town, Journal of Energy in Southern Africa, Vol 22 No 2 Wlokas, H. L. and Ellis, C, 2012, Poster - How does the low-pressure solar water heater roll-out create employment in local communities?, Energy Research Centre, University of Cape Town Wlokas, H. L., and C.Ellis (2013), Local employment through the low-pressure solar water heater roll-out in South Africa, Research Report Series, Energy Research Centre, University of Cape Town, pp 4 – 5

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PROFILE: LED LIGHTING SA

LED LIGHTING SA LED Lighting SA was established in 2004 and quickly became a pioneer in the field of LED lighting technology in South Africa. With a strong stance on supporting the local economy, LED Lighting SA utilizes local resources where possible, from generating local employment to sourcing South African made components were possible. Most of LED Lighting SAâ&#x20AC;&#x2122;s production employees were originally trained in the textile industry. These women have experience in working in an industrial environment and when employed by LED Lighting SA they all underwent extensive training, being taught the basics of LED technology and learning techniques such as soldering. Quality is an extremely important element to LED Lighting SA, as the lighting solutions provided need to be of an exceptional standard in order to perform to their potential. It is estimated that LED products last up to 25 years when used every day in the recommended environment. This life time is guaranteed through the vigorous testing that the products are put under. Testing is also a very important part of the process, as it ensures that the products meet the standards promised to clients. We own some of the best testing facilities in the industry, which includes a photo-goniometer, to measure photometric data from lights in IES files. This allows for product development and to stimulate lighting solutions for Dialux and Relux software. We also use Measurement and Verification equipment for assessing the energy usage of products. We then look at the life-time product cost analysis and financial models to better understand investment and payback periods.

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PROFILE: LED LIGHTING SA

It needs to be remembered that with LED lighting the rewards are met over time, with the low consumption of energy and reduction in maintenance, resulting in long-term cost efficiency. They donâ&#x20AC;&#x2122;t need to be replaced as often as a halogen bulb would and the amount of power they use is so low that electricity costs will immediately decrease. Although the upfront initial cost is much higher for LED products, over time this increased payment pays itself off. It is an investment and that is what LED Lighting SA promotes to their customers. The company has a level 3 BEE certificate and is a registered ESCO. LED Lighting SA belongs to a variety of organizations such as IESSA, ECA, NMISA and the Green Building Council of South Africa. We deem it important to establish ourselves through the necessary networking channels within the relevant fields. Being a member of these groups helps to get the brands name out there and is an aid in building strong relationships with people within the industry. The eco-friendly factor is also a big appeal when using LED products. LEDs do not contain any toxic materials, such as mercury, making them much easier to dispose of - unlike their CFL counterparts. A huge pull toward using LED products is that they use a much lower amount of energy to provide a high light output. This means that lights can be kept on for a long time without putting strain on electricity levels. Eskom initiated a rebate program as a method of funding for businesses that want to reduce their energy consumption levels. Most businesses end up running their lights for up to 12 hours a day, adding up to a large amount of electricity used and making costs for running the business hike up. These companies would immediately qualify for the Eskom rebate program, persuading companies to go the LED lighting route. During this funding program, companies need to sustain savings achieved three years after installation. There will be some funding from Eskom of course, to help with the costing for the replacement. This will then go through LED Lighting

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SA, who will supply the products needed. With up to 86% saving in electricity consumption, this program not only benefits the clientâ&#x20AC;&#x2122;s financial status, but it also lightens the load for Eskom and for our planet. The products LED Lighting SA provides ranges from off the shelf halogen replacements, to bespoke light fixtures, made specifically to meet certain client requirements. We offer a full service, from start to finish. By providing the correct power supply for the specific product, to ensure that the amount of power used is at its optimum. This can also be monitored and recorded, to indicate exactly how much the client is saving. We believe that once an installation is complete a lot of the work is still to follow. This includes making sure the product works within that specific application and ensuring that there are no technical problems; things that sometimes cannot be foreseen during the designing process. Our technical team made up of industrial engineers, project managers and an industrial designer all have extensive experience in handling LED technology. Our products are designed professionally and efficiently, with small chance of failure. Most of the projects we do at LED Lighting SA are business to business. We have worked with companies such as Woolworths, V&A Waterfront, MTN, Pick n Pay, Portside office building, Checkers, Cell C and many more. We are however venturing into the residential market; as more and more people become aware of the cost saving and lower energy consumption achieved through using LED solutions in the home. This is obviously a much smaller market, but we feel it is necessary for people to change their views on consumption, specifically via energy used in the home, in order to make a difference to our planet. LED Lighting SA is a local manufacturer and designer of LED lighting solutions, based in Cape Town and Johannesburg. Utilizing innovative designs we provide premium, eco-friendly luminaries that are durable and efficient. LED Lighting SA is a local manufacturer and designer of LED lighting solutions, based in Cape Town and Johannesburg. Utilizing innovative design we provide quality luminaries, both eco-friendly and durable. (30 characters) SUSTAINABLE ENERGY RESOURCE HANDBOOK

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PROFILE: PETROLEUM AGENCY

UPSTREAM ACTIVITY IN SOUTH AFRICA AT AN ALLTIME HIGH Petroleum Agency SA is responsible for promoting and regulating oil and gas exploration in South Africa, archiving all data related to oil and gas exploration, and developing the local upstream industry for the benefit of all South Africans. One of the Agency’s roles is to counsel government on issues related to oil and gas, and we have recently played a leadership role in the Task Team process investigating shale gas exploration and the controversial technique of hydraulic fracturing. South Africa is on the brink of major developments in the upstream industry and the next few years will be key in determining South Africa’s future energy profile. There is currently unprecedented interest and a record level of activity in petroleum exploration. In the Orange Basin, PetroSA have been joined by Cairn India, and are looking at both oil and gas potential. Forest Oil International and partners have a production license for the development of the Ibhubesi Gas Field and intend to pursue the option of Independent Power Production. Thombo Petroleum have just completed acquiring seismic over their acreage with partners Afren. Other operations in Western Cape waters include exploration of the deep water and ultradeep water by BHPBilliton and Shell South Africa Upstream, PetroSA together with Anadarko and potential exploration by applicants Sungu Sungu Petroleum. Petroleum Agency SA is very pleased to have attracted exploration companies of such high calibre, who have a record of successful exploration. We are of the opinion that there is great potential for both gas and oil reserves in this basin. The south coast has seen on-going exploration in Block 9 from PetroSA, where they have concentrated on finding further assets close to existing infrastructure on development plans for the F-O gas field.

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Other upcoming activity off the south coast includes exploration of the deep water by Canadian Natural Resources and exploration of the northern Pletmos, Algoa and Gamtoos basins by Bayfield Energy and NewAge. We are also currently processing an application from Total for an exploration right to the south. Off our east coast, Impact Oil and Gas will be taking on ExxonMobil as partners, pending approval. Onshore, the major interest remains in unconventional resources. These are of three types, namely: Coal bed methane, biogenic gas and shale gas. Coal bed methane exploration is concentrated around the coal bearing basins in the north eastern parts of the country. Operators have already carried out successful drilling in terms of their work programs. To the south the first onshore production right, applied for by the Australian based Molopo Energy, has been granted. Molopo has a gas sales agreement with Novo Energy for compressed natural gas for use in vehicles. This small project will mark the first economic production of gas onshore. Many will be aware of the EIA’s estimate of 485 Tcf of gas as a shale gas resource figure for the Karoo. Our own estimate of the resource is far smaller, yet still represents a very important resource. At the time of writing, the Minister has yet to lift the moratorium through a notice in the Government Gazette, and it is this announcement that will guide and inform the process in future. The above summary presents some of the very exciting developments underway, and also a little of what we expect in South Africa’s upstream industry over the next few years. Petroleum Agency SA welcomes our new operators to our country and wishes them all success in their endeavours. It is our hope that indigenous oil and gas may soon play a significant role in our country’s energy supply.

Contact us to find out about: Onshore or offshore exploration opportunities for oil and gas in South Africa Permits and rights for reconnaissance, exploration or production Availability of oil and gas related geotechnical data at: Phone: +27 21 938 3500 Fax: +27 21 938 3520 email: plu@petroleumagencysa.com or visit our website at www.petroleumagencysa.com

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CHAPTER 3: SMALL URBAN AND RURAL HYDROPOWER UNDER THE REIPPPP

By Bohuslav (Bo) Barta PrEng. Specialist Consultant. Energy & Water Resources Engineering.

SMALL URBAN AND RURAL HYDROPOWER UNDER THE RENEWABLE ENERGY INDEPENDENT POWER PRODUCER PROCUREMENT PROGRAMME REIPPPP International Definition of Small Hydropower (SHP) There is currently no international consensus on the definition of SHP. The detailed hydropower capacity classification for South Africa is discussed in Volume 2 of the Sustainable Energy Resource Handbook (Chapter 8). However, during the process of developing South Africa’s Integrated Resource Plan (2010 – 2030), a constraint with regard to an upper limit of 10 MW for SHP as adopted in South Africa has been questioned by potential Independent Power Producers (IPPs) as being rather low in comparison to other countries, which are using much higher upper limits. The SHP classification as adopted around the world does not necessarily apply the upper limit of 10 MW, as is adopted in South Africa. Several countries have chosen and are observing different upper limits for SHP. Such countries are typically mountainous and well endowed with rich surface water resources. There are also regulatory issues which dictate a decision on the upper SHP cap.

Table 1 Definition of SHP in some African countries Country

Micro

Mini

Small

Kenya

< 10 kW

100 kW – 1 MW

1 MW – 10 MW

Mali

< 100 kW

100 kW – 1 MW

1 MW – 10MW

500 kW

<1 MW

< 10 MW

Mozambique Nigeria

< 25 MW

Senegal

251 – 1 500 kW

1,5 MW – 2,5 MW

2,5 MW – 10 MW

South Africa

20 kW – 100 kW

100 kW – 1 MW

1 MW - 10 MW

Tunisia

20 kW – 100 kW

100 kW – 1 MW

1 MW – 10 MW

Uganda

< 100 kW

<1 MW

<10 MW

Zambia

< 300 kW

500 kW – 1 MW

1 MW – 10 MW

Notes: (i) Source: International Water Power & Dam Construction (August 2012). (ii) Among those countries outside of the African continent with higher SHP limit than 10 MW are: Argentina (< 30 MW), Canada (< 50 MW), China (< 50 MW), Honduras (< 50 MW), Mexico (< 30 MW), and Pakistan (< 50 MW). (iii) South Africa: All installations below 20 kW are classified as pico, as it will apply to all other African countries where is the lower micro limit given.

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The International Centre on Small Hydropower (IC-SHP) under the umbrella of the United Nations’ Industrial Development Organisation (UNIDO) located in China, conducted a survey to determine and evaluate the state of SHP in the world. For clarity on this issue, which in principle applies also to other small scale renewable energy projects (i.e. wind, solar PV, biomass, ocean energy, etc), Table 1 illustrates the SHP definitions for the African countries which participated in the IC-SHP survey. It may be observed from the above table that all the African countries listed, except Mozambique, have adopted and are observing the SHP upper limit of 10 MW in their SHP development.

Potential and Status of Hydropower in South Africa One decade into the 21st century the electricity generated worldwide from hydropower sources amounted to some 17% of the total annual electricity production of more than 20 000 TWh. South Africa, with its rather underdeveloped hydropower potential, has at present a very low share of SHP in the national generation mix. The dam regulated hydroelectric plants (e.g. Gariep, Vanderkloof, etc.), and the peak supply from pumped storage (e.g. Drakensberg, Palmiet and Steenbras) contribute proportionally to the total national capacity by 1.4% and 3.4% respectively. Coal-fired generation represents at present the largest share, comprising of 80% of the national energy mix, catering mainly for base load generation. Most of South Africa’s existing hydropower installations have operational capacities several several times larger than the SHP upper limit of 10 MW. See the Sustainable Energy Resource Handbook, Volume 4 (Chapter 10) for more details.

Figure 1 Hydropower capacity potential (MW) by type of installation in SA excluding imported hydropower (Barta, 2002) There are very few operating SHP installations in South Africa, totaling at present not more than 10 MW in capacity. Scattered around South Africa are several small out-of-operation hydropower plants of some 7 MW in total idle capacity. Since the late 1950’s, the development of SHP for electricity generation has not been considered seriously in South Africa as well as in its’ neighboring countries of Lesotho and Swaziland. There could be a whole host of valid reasons for this, but perhaps there are two key reasons qualifying the situation.

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• South Africa’s stakeholders in planning and operating water resources and associated infrastructure are holding onto a perception, mainly due to the relative scarcity of surface water around the country, that the potential for conventional hydropower is non-existent or very low; and • ESKOM’s past concentration and extensive investments into the development of coal-fired energy generation, mainly due to the abundant availability of coal, as well as several decades of suppressing the real demand for electricity by providing it without appropriate charges to selected sectors of the country’s economy due to political motives.

Renewable Energy Regulatory Framework with Emphasis on Hydropower • White Paper on Renewable Energy (2003) Although South Africa was one of early signatories to the Kyoto Protocol (the strategy adopted in 1997 and the Protocol fully ratified in 2005), for several years it paid scant attention to the various innovative strategies and mechanisms proposed by the Protocol. No particular mitigating measures addressing the realities of Climate Change were implemented between 1997 and 2003, until South Africa’s White Paper on Renewable Energy (WP on RE) was introduced. The white paper was approved by the South African Government in November 2003. The regulatory framework built-up process to guide the development of renewable energy resources in South Africa was spearheaded by the WP on RE. The WP on RE established a generation target of 10 000 GWh per annum by 2013. This generation output has been envisaged to be extracted from renewable energy resources namely by biomass, solar, wind and small scale SUSTAINABLE ENERGY RESOURCE HANDBOOK

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hydropower technologies. Ocean energy generation is not being considered at this time. Several specific goals were also established in the WP on RE with regard to (a) the creation of Independent Power Providers base, (b) the promotion of capacity building in the application of RE technologies, (c) wider involvement of women in the energy sector, (d) developing BEE opportunities.

Renewable Energy Feed-in-Tariff Programme (2009 – 2011) For several years after the introduction of the WP on RE in South Africa, both public and private energy generation sectors showed little progress in developing a suitable regulatory framework based on the recommendations from the white paper. The Electricity Regulation Act (Act 4 of 2006) was promulgated in 2006 and led to the dissemination of the Regulation on New Generation Capacity. During March 2009 the National Energy Regulator of South Africa (NERSA) introduced South Africa’s version of the RE Feed-in-Tariff (REFIT) procurement programme. A renewable energy capacity of a 1 025 MW was set out to be procured by 2013 under the REFIT programme as originally suggested by the NERSA. The tariffs for each considered RE technology were proposed and published. The REFIT programme ignited real interest in developing the RE resources available in South Africa. Most of the potential Independent Power Producers (IPPs) were occupied for almost two years in searching and developing variously sized RE projects involving land-fill gas, solar water heating, onshore wind and small scale hydropower technologies. The DoE’s Request for Information (RFI) framework and tariffs were applied in the economic analysis of the projects by the potential IPPs. The REFIT procurement programme introduced in South Africa by the NERSA in 2009 was completely abandoned in favor of a competitive bidding process with price caps, originally titled as REBID (Engineering News; August, 2012). By that time most developers participating in the REFIT programme under the RFI framework had spent significant amounts of time and money preparing their projects given anticipated returns on the basis of published tariffs.

Integrated Resource Plan (2010 – 2030) for South Africa In November 2010 the DoE, the NERSA and the National Treasury, with the blessing of the South African Government introduced a new Integrated Resource Plan (IRP 2010–2030) for comments from the public domain. Prior to the introduction of the IRP 2010 the Hydropower Interest Group (HIG) of Sustainable Energy Society of SA (SESSA) submitted to the DoE task team drafting the IRP 2010 an overview of the status and also projections for the envisaged development of hydropower in South Africa with an emphasis on SHP opportunities up to 2030. The salient points submitted referred to the following: • A realistic hydropower potential uptake curve including actual existing project development plans. The projections present that 272 MW of hydropower by 2016, another 400 MW by 2020 and a further 1 100 MW can be installed by 2030. • Additional consideration be given to small scale generation (and storage) assets in the supply mix generally.

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• In achieving this development that preferential consideration be given to small scale generators (<1 MW) in policy, relaxing currently restrictive water legislation and permitting support mechanisms such as the REFIT to be accessible by the smallest renewable energy providers. • Small scale hydropower presents a significant opportunity for accessing private and public clean energy potential and finance (including Carbon and rapidly emerging Renewable Energy markets) for rapidly increasing the regional generation capacity. Streamlining of the development cycle from pre-feasibility through to ultimate commissioning require dedicated collaboration between IPPs, DWA, ESKOM, DoE and National Treasury. The IRP 2010 -2030 was approved by South Africa’s Government in March and promulgated in May 2011. The final document proposed a widely diversified energy generation mix to be developed over the next 20 years. The future energy generation mix proposed by the Plan envisaged the following: 48% of the base load power to be derived from coal, 16% from renewable energy resources, 9% from peak open-cycle gas turning power, 6% from pumped storage (i.e. peak supply), 5% by mid-merit gas power, 12% by base load import hydropower and 4% from various other sources.

RE Independent Power Producers (IPPs) Procurement Programme The DoE used the powers mandated to it by the Electricity Regulation Act (Act 4 of 2006) and on August 3, 2011 issued the first order of a renewable energy capacity of 3 725 MW allocated entirely to the renewable energy IPPs under the new procurement programme. The Request for Qualification and Proposal framework documentation together with a list of allocated capacities for various RE technologies were then detailed as per the Electricity Regulations on New Generation Capacity (Act 4 of 2006) and published on May 4, 2011.

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Table 2 Allocated capacities and price caps for the REIPPP Programme (May 2011) Renewable energy technology

Allocated capacity Caps on prices (MW) (R/MWh)

Onshore wind

1 850

1 150

Concentrated Solar Power (CSP)

200

2 850

Solar photovoltaic solutions (PV)

1 450

2 850

Biomass

12,5

1 070

Biogas

12,5

800

Landfill gas

600

Small scale hydropower (1 to 10 MW)

1 030

Subtotal

3 625

Small scale projects with capacity between 1 and 5 MW

100

Total allocated RE capacity to be procured between 3 725 2014 and 2016

The cap on prices not provided in May 2011. This capacity to be allocated in several stages

Additional notes to the compliance criteria framework as per <www.ipp-renewables.co.za>: (i) Submitted bids to be valid for 300 days from relevant submission date (ii) The price proposed by a bidder not to exceed the price indicate above (iii) The bidders to provide both a full CPI indexation price (IP) and a partial CPI-IP (iv) SA’s ownership must be at least 40% (v) Successful bidders to pay a Development Fee equal to 1% of Total Project Cost (vi) The bids to be evaluated on 70% price and 30% economic development criteria

The REIPPP programme regulatory requirements were published in May 2011. Pico, micro and mini applications (i.e. projects below 1 MW in capacity) were excluded from the REIPPP programme. This step caused a setback in developing very small urban and particularly rural hydropower. Generally for South Africa, the development of small scale hydropower, most suitable and sustainable for the development of urban and rural communities are schemes within the potential capacity range of between 300 kW and 3 MW commonly found within the existing water supply and wastewater disposal infrastructure. REIPPPP First Bidding Round The first bidding window closed in November 2011, just before the UNFCCC’s Conference of the Parties or COP 17 held in Durban, South Africa between November 28 and December 9, 2011. The total number of bidders who submitted their proposals reached 53, and 28 of them received the NERSA’s Preferred Bidder status. Those were the bidders who provided full and satisfactory

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compliance with technical, financial, environmental, economic and social development requirements as prescribed by the DoE. The preferred bidders included 18 solar PV projects, eight onshore wind projects and two CSP projects, totaling in capacity up to 1 460 MW. No small scale hydropower projects were selected in the first window. It must be highlighted that the development of hydropower is very site specific and requires generally a multitude of disciplines in its development stages, requiring considerable time and financial resources for each development stage. This is most important in assuring the orderly development of a safe installation and its efficient and sustainable operation. REIPPPP Second Bidding Round The DoE received 79 project proposals during the second bidding window which closed in March 2012. From a rather large number of proposals, only 19 preferred bidders were selected to develop a potential capacity of 1044 MW. Among the preferred projects were one concentrated solar power (CSP), nine solar photovoltaic (PV) projects, seven onshore wind projects, and two small scale hydropower projects. The preferred small scale hydropower projects included Stortmelk Hydro Project with a proposed capacity of 4.3 MW situated on the Ash River in the Free State province and the Neusberg Hydro-electric Project to generate a hydropower capacity of 10 MW on the Orange River in the Northern Cape Province. The fact that two hydropower project proposals with an overall capacity amounting to 14.3 MW, (i.e. some 20% of whole REIPPPPâ&#x20AC;&#x2122;s allocation of 75 MW) were approved as preferred bidders, should encourage other potential IPPs in developing small scale hydropower. There is another bidding window planned by the DoE and it should be contested by the potential hydropower IPPs who might have more time to finalize their proposals. With regard to the type of preferred hydropower projects, both are to a large extent involved in augmentation (retrofitting) hydropower to existing water supply infrastructure. The Stortmelk Hydro (4.3 MW) is to be retrofitted to existing Botterkloof Barrage situated on the Ash River, receiving the artificial flows from the LHWP. The Neusberg Hydro-electric Project (10 MW) will be retrofitted to an old abandoned off-stream irrigation infrastructure situated on the Lower Orange River. REIPPPP Small Projects Between 1 MW and 5 MW To date the DoEâ&#x20AC;&#x2122;s process on Small Projects between 1 MW and 5 MW has not concluded and is so far considered open. However, the most recent press release from the DoE indicates that SHP technology has been included on the list of technologies qualifying for submission and consideration in the Small Projects between 1 MW and 5 MW round (consult www.ipp-smallprojects.co.za).

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REIPPP Third Bidding Round The third bidding round was finalised in November 2013. A group of 17 preferred bidders was selected from 93 submitted bids. The renewable energy capacity allocated amounts up to 1 456 MW, and is envisaged to cost about R33.8 billion (i.e. an average of 23.2 million rand per one MW). At the conclusion of the third REIPPPP Bidding Round the total of 3 916 MW was reached. This is 191 MW allocated over and above the original 3 725 MW. There were no small scale hydropower bids among preferred bidders of the third bidding round. The authorities are planning further windows of bidding date, with the fifth scheduled for 2016.

The South African Hydropower Development Regulatory Environment Since 2008 when South Africa first started to feel a serious deficit in electricity supply, through frequent black-outs and outages, renewable energy generation including SPH started gaining its rightful attention. However, as interest has increased and viable projects identified the legal, regulatory and institutional requirements started to manifest a â&#x20AC;&#x153;clutter of red-tapeâ&#x20AC;?. Table 3 summarizes the requirements (i.e. licenses, permits and all sorts of rules) to be attended while preparing a SHP project.

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Table 3 Regulatory requirements for the development of all types of hydropower in South Africa No.

Requirement definition

Legal documentation to consult

Water use permit from the DWA, needed by any user of the national water resources for the private enterprise purposes. The DWA requests: Fixed and variable charges for a plant within the DWA’s infrastructure Rand 10/ kW installed per annum and Rand 0,01/kWh respectively;

Act 36/1998 sections to comply: Section 21 (b), Section 21 (c), Section 21 (i) and Section 37 (1) (c) defining “a power generation activity which alters the flow regime of a water resource” as a controlled activity. National Water Amendment Act 01/1999 NB: All types of hydropower are fully renewable and non-consumptive use of water in contrary to other uses where the water is essential ingredient.

A permit of access allowing utilization of The environmental and property security public/parastatal/private water engineering requirements apply: assets (i.e. dams, canals, pipelines, etc.) by an independent private entity if situated in a Act 108/1997 and Act 32/2000 defined servitude

The development proposal to comply with the Integrated Development Plan Policy as per provincial/district or local authority present and forward planning goals

Water Services Plan(s) to consult for possibilities and limitations: Act 32/2000, and Municipal Infrastructure Investment Framework (2011).

Basic Assessment (BA) or fully fledged Environment Impact Assessment (EIA) is required. The EIA particularly applicable for the “green field” hydropower projects;

Act 108/1998 provides for three levels: GN 456 for geographical activity; GN 544 for Basic Assessment (BA) GN 545 for EIA full assessment

A suitable Public Private Partnership (PPP) model (e.g. BOT, BOTT, lease contract, etc.) if the administrator/owner of a water source is the national government department or a parastatal utility (e.g. Eskom, Rand Water, etc.)

All regulations guiding the: Water Services Associations (WSAs), Water Services Providers (WSPs), Water User Associations (WUAs) and Water Boards: To comply with: Act 108/1997; Act 32/2000 and Black Broad-based Economic Empowerment (2003)

A Power Purchase Agreement (PPA) if A legal document underwritten produced hydro energy is not for in-house between an IPP and consumer of RE. To consumption but it is required if a scheme is comply with Act 40/2004 LA or ESKOM connected

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The license from National Energy Regulator SA (NERSA) to generate energy/ electricity (obtaining of this license is subject to all other licenses/permits already granted). License is not required if energy produced is for own or islanded use (i.e. independent of any grid connection)

NERSA license is required if energy/ electricity is to be fed into the municipal or ESKOM’s national grid. To comply with: Act 40/2004 and Act 04/2006 also with Revised Strategic Plan of Department of Energy 2011 - 2016

A project Feasibility Report (i.e. a bankable Refer to REIPPP Programme requirements as per < www.ippproposal to the financers) guarantying the financial capital for the RE proposed project renewables.co.za > (May 2011) and Table 5 of this chapter.

Typical Development Framework for SHP Installations In South Africa due to almost forty years of absence in hydropower development no specific framework existed for the guided and sustainable development of hydropower, until now that the REIPPP programme has been made available. The SHP projects presently being developed in South Africa are managed similarly according to the sequences given below: • Project identiﬁcation/planning – by finding a suitable site and potential energy target market that lies within an acceptable distance from the project development site. • Project pre-feasibility stage – based on a relatively short investigation to establish the principal financial parameters verified by institutional, regulatory, technical and environmental requirements determined from the field investigation and consultations. The breakdown of essential costs and likely income streams of the proposed project were determined and financial options leading to a successful project development were identified. The costs of development are based on the conceptual design. Application for permits and licenses need to start during this stage. • Project feasibility stage (i.e. a bankable proposal) forming the core of the pre-investment activity. This stage will include a financial model based on a reasonable detailing of the technical, institutional, regulatory and environmental inputs and socio-economic issues. A potential developer of the proposed project should be able to present a bankable proposal to interested banking institution(s) leading to financial closure on the proposed project. After the pre-construction process is closed the procurement, O&M and decommissioning stages are to follow. Internationally the development of hydropower is guided and regulated by the Hydropower Sustainability Assessment Protocol (HSAP, 2011). This Protocol is a product of the International Hydropower Association (IHA) and is now recommended to be adopted for the sustainable development of all types and sizes of hydropower. The Protocol represents a globally applicable tool to enable the guided assessment and demonstration of feasibility and sustainability of hydropower projects. The Protocol can be used during all stages of hydropower project development right from preparation through implementation and operation. The key components of development for a typical hydroelectric scheme are shown in Table 4. The components listed form a typical “green field” SHP islanded scheme.

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Table 4 Development layout and components of a typical hydroelectric scheme Source of hydro-energy

Generator of hydro-energy Civil/mechanical items

Electrical/electronic

Transmission of hydro-energy

Access to source Diversion tunnel/ canal Dam/weir/barrage Impoundment Spillway Outlets

Access to generator Headrace structure Power station house Turbine Penstock Surge device Tailrace structure

Generator Controls Security/safety

Transformers Transmission Distribution

Notes: (i) If the development of hydro-energy is situated within existing infrastructure the procurement costs of the items as the headrace, turbine & generator, surge device, tailrace, controls & security, transformer, transmission & distribution are to be determined. The costs of source of hydro-energy are than excluded from the costing analysis. (ii) The costing analysis of a project is based on the Life Cycle Costing methodology.

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Table 5 Examples on SHP feasibility formwork and case study cost- benefit summary Basic requirements: • detailed revision of the pre-feasibility study findings and essential design parameter definition; • Environment Impact Assessment (EIA) study, including social aspects if “green field” development; • specific investigation outcomes such hydrological, geological, and socio-economic factors; • capital cost and other key financial parameters of the proposed project (e.g. MW installed, in-house demand, kWh sent-out, incremental sales, avoided costs, replaced un-served energy, etc.); • cash flow analysis determining income and cost streams for the term period; • internal rate of return and payback period; • project development programme and estimation of production costs; • risk analysis of major project parameters including both common (e.g. water availability, faulty design, performance risks, etc.) and interface risks (e.g. financial, commercial and legal, etc.); • status report on all permits and licenses required to develop and operate the proposed plant; • valuation of energy output if the proposed plant will be connected to the existing power network; • employment creation opportunities (temporary and permanent); • status of IPP’s negotiations with authorities/customers • including proof of PPA arrangements • compliance with regulations including the Broad-based Black Economic Empowerment Act (2003) Specific requirements: As per Table 3 and the requirements of REIPPP programme < www.ipp-renewables.co.za > Example of salient outcomes from the Feasibility Cost-Benefit Summary (2012 time basis) for the retrofit of hydropower (Phase 1: 5,7 MW) at the Hartbeespoort Dam in the North West Province (Ottermann and Barta, 2012): (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii)

EPC Cost = R98m for phase-1 (R17 220 per installed kW) Annual Operating Cost at NPV = R1,72m (R110/kWh) Life-time levelized Cost at NPV = R0,52/kWh (break-even tariff ) Annual Income at NPV = R16m per annum Payback period = 13 years Return on equity (ROE): Without draw-down of dam FSL: At 90c/kWh (the weighted average Rural Flex tariff ), the IRR = 16% At 103c/kWh (NERSA tariff cap for hydropower), the IRR = 20% With draw-down of dam FSL: At 90c/kWh (the weighted average Rural Flex tariff ), the IRR = 21% At 103c/kWh (NERSA tariff cap for hydropower), the IRR = 25%

NB: From the above Cost-Benefit Summary it is obvious that adding SHP to several suitable existing dams the water-energy nexus could be advanced in South Africa.

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South Africa’s Regulatory Environment is Least Helpful to SHP There is no doubt that the currently adopted REIPPP programme encourages the development of small renewable energy projects including hydropower (i.e. projects between 1 MW and 10 MW). However by excluding from this programme the development of pico, micro and mini renewable energy projects (i.e. all schemes below 1 MW in capacity), real and lucrative development opportunities available in some urban and most rural areas are once again restricted. The SHP opportunities available, particularly to the rural communities, have been overlooked and have not been extended a helping hand from the financial capital providers (i.e. mainly commercial banks) including the South African Government. This is in contrast to the renewable energy resources development approach in many other countries where the emphasis and concessions are given primarily to the small private developers, the best example of this being Germany. Since 2002 when the overall hydropower potential for South Africa was first assessed, Barta (2010) verified and updated the status of opportunities in the development of SHP for urban and rural communities. The updated evaluation endorsed that there is good “green-field” hydropower potential mainly within the Eastern Cape and KwaZulu Natal provinces (e.g. Mzimvubu River Basin Study identified 2000 MW of conventional hydropower). It is now inevitably clear that large conventional hydropower potential can be only developed in South Africa in conjunction with other water resource uses such as large urban or rural water supply, flood control and irrigation of fertile agricultural land. Such schemes have on average about 10 years of lead time in contrast to the two or three years needed to develop SHP. Although the REIPPP programme is at present not covering the development of small renewable energy projects below 1 MW, including hydropower, there are bright signals coming from the processes taking place in developing in-line conduit hydropower at the Tshwane and eThekwini metros as well as Rand Water and other water supply utilities. The research side of pico, micro, mini and small hydropower technologies funded by the Water Research Commission (WRC) through the University of Pretoria on the application of the low-head technologies within the existing hydraulic infrastructure is gaining momentum and will soon produce appropriate guidelines on the development of SHP. Our very own REIPPP programme has so far yielded a hydropower capacity of 14.4 MW to be available already in 2016. There are also several private developers installing micro and mini hydropower (<1 MW) at several locations in South Africa (e.g. a farming enterprise of 315 kW mini hydropower scheme near Cookhouse) without any help from external agencies. These mini/micro hydropower developers face high costs of imported turbines as there is not at present a suitable turbine manufacturing industry in South Africa. The Department of Trade and Industry recently allowed an overseas manufacturer to open a turbine manufacturing line in the Eastern Cape. All these cases indicate that SHP is going to be a significant contributor of the future generation mix within the urban water supply and particularly in rural South Africa.

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Positive Prognosis for Hydropower in Southern Africa On the continent of Africa there is a large and underdeveloped potential for conventional hydropower in comparison to other continents. The subregion of Southern Africa south of the Zambezi River does not have very significant potential for conventional hydropower, but it does have a fairly well developed primary water supply infrastructure. South Africa is recognised internationally as one of most widely dammed countries with some 4 450 dams of various sizes, and subsequently significant potential exists for the augmentation (retrofitting) of hydropower to the existing water supply infrastructure. Large quantities of water are moved daily either by gravity or pumping around South Africa, with numerous locations where hydro energy could potentially be extracted. The ongoing development of SHP will bring certainly direct employment opportunities within the rural communities with significant employment in the urban areas through associated industries.

Figure 2 Existing and potential hydropower superimposed over the DWA map of major dam impoundments

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References Barta, B. (2002). Baseline study â&#x20AC;&#x201C; hydropower in South Africa. for Department of Minerals and Energy/COWI. Pretoria, RSA. September 2002 Barta, B. (2010). Status of the small scale hydroelectric (SSHE) development in South Africa. Handout to the public domain. The analysis of pre-investment process for augmenting of a small scale hydroelectric installation. Johannesburg. RSA. March 2010. HSAP. (2011). Hydropower Sustainability Assessment Protocol. International Hydropower Association (IHA). Brasil. June 2011. Ottermann and Barta, (2012). Retrofitting hydropower to South African Dams. HYDROPOWER AFRICA 2012. Conference held in Cape Town. September 2012. Renewable Energy: HYDROPOWER. The Sustainable Energy Resource Handbook. SA Volume 2. The Essential Guide. Chapter 08. HYDROPOWER AND OCEAN ENERGY IN SOUTH AFRICA. The Sustainable Energy Resource Handbook (Renewable Energy). SA Volume 4. The Essential Guide. Chapter 10.

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PROFILE: ENVISOL

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PROFILE: ENVISOL

ENVISOL has a wide range of quality, branded products with the necessary SABS, NRCS, CE certiﬁcation and/or ESKOM approval to oﬀer our clients. We are able to source or have any light specification manufactured according to our clients needs, whether decorative, fluorescent, LED, CFL or Zone 1 & 2 for industrial and commercial applications. Due to the dramatic increase in electricity prices proportionately pertinent to one’s own energy environment, ENVISOL has formed partnerships with selective Energy Firms that specialize in different segments of energy optimization e.g. scheduling / voltage optimization, heat pumps, solar and refrigeration. Whether we optimize energy consumption in existing technologies or integrate the use of modern technologies to reduce the carbon footprint, together we can make a difference as specialists in our various industries. ENVISOL is as an energy partner to many satisfied clients and is also endorsed by a number of environmentally friendly and energy conscious consulting firms that promote effective, researched products and solutions to their clients. ENVISOL forms part of the 49M initiative and is a level - 4 BEE Contributor. We appreciate your interest in our company and would like to invite you to consider our services and range of energy saving and environmentally friendly options. The environment and all relevant parties will subsequently benefit from these technologically advanced products. In the process we will all contribute towards a positive impact on national energy consumption and be more cost effective, leading towards a brighter future for all concerned.

ENVISOL P.O. BOX 803, STRAND, 7140 IZAK BURGER  SALES DIRECTOR CELL: +27 (0)82 880 5613 | FAX: +27 (0)86 636 3808 E-MAIL: izak@envisol.co.za | WEBSITE: www.envisol.co.za

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PROFILE: SPECTRUM UTILITY MANAGEMENT

SPECTRUM UTILITY MANAGEMENT SUM offers a wide range of specialist products and services that are specifically designed and focused on the local government and utility markets. All our products are funded, designed, developed and manufactured in South Africa by a specialised team of professionals that intimately understands local government due to their combined experience of over 200 Years!

OUR PRODUCTS AND SERVICES INCLUDE: • SUM spatially based integrated utility management information system, managing all municipal utilities in one integrated system (water, electricity, streetlights and high masts) • Automated advanced metering solutions, post and intelligent pre-paid (water and electricity, meter independent) • Managed energy efficient streetlight and high mast solutions (type of streetlight and high mast independent) • Financing options for all our solutions (IDC, DOE, ESKOM DSM, commercial banks and other funding partners) • Advanced operating centre where all utilities can be managed through our central operations management centre • Telecoms utility for municipalities as an additional revenue stream • Mobile mapping

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PROFILE: SPECTRUM UTILITY MANAGEMENT

SUM’s approach to build economically viable and sustainable municipal entities has evolved over the years from a focus on revenue to a focus on the cost to produce the revenue. Although there is a fine balance between the two, SUM believes that managing costs more effectively and efficiently in an integrated manner will unlock substantial cost savings and improve revenue streams to a sustainable basis. Currently revenues in municipalities are under huge pressure because of costs. The simple logic is that the higher the tariffs, the more consumers cannot afford to pay for the services. Past practises, where the budget focus was to calculate the new financial year’s expenses and to fund the shortfall by increasing the tariffs, cannot be sustained anymore. Deteriorating municipal and utility infrastructure, electricity price hikes, distribution losses and the inability to collect revenue adds to the increasing costs and are crippling municipalities and utilities. SUM believes that the only way to establish an effective sustainable cost and revenue management base-line for a municipality and utility is to begin with the automation of all the consumption points and thus normalising and cleansing the information from these areas in order to stabilise costs. This will assist with the following: • Consumption information will be accurate from supply to distribution (water and electricity) • Integrated utility consumer accounts will be accurate • Cut-offs, restrictions and re-connections will be seamless (water and electricity) • Distribution losses can be identified efficiently and effectively (water and electricity) • Indigent customers can be managed more efficiently and effectively by supplying services according to policy only • Electricity and water theft can be managed more pro-actively • Post-paid and pre-paid can be applied without changing meters • Debt information will be correct and collectable • Information on infrastructure will be correct and will thus assist in prioritising specific interventions to assist in improving service delivery substantially • Cable theft monitoring SUM further believes that the approach on reducing the cost to produce revenue must be an integrated one in order to have the maximum impact on sustainability and revenue management over the shortest possible time.

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CHAPTER 4: ADVANCED SOLAR THERMAL SYSTEMS FOR RESIDENTIAL AND COMMERCIAL APPLICATIONS

Ryan Dearlove SEG Solar Energy (Pty)Ltd

ADVANCED SOLAR THERMAL SYSTEMS FOR RESIDENTIAL AND COMMERCIAL APPLICATIONS With the natural growth of the solar industry in South Africa, we are now able to access materials and equipment that were previously unavailable. As consumers are becoming more and more aware of solar water heating, the demand for larger, more advanced systems has grown. Integration of various heat sources and heat demands is now possible, using carefully designed and sometimes patented hydraulic components. Changes to the National Building Regulations have also created demand for integrated solar thermal systems that incorporate additional heating demands such as swimming pools and space heating. The integration of multiple heat sources and heating demands has in the past been a rather complex matter, since the design and control of these systems requires some careful planning. Access to more efficient pumps has enabled these complex systems to be finely managed to ensure the most effective delivery of renewable energy to the right place, at the right time, at the right temperature. Fortunately for us (or unfortunately, depending on your viewpoint), we are able to learn from others in the global industry and we now have access to solutions that make the task of implementing world class solar thermal solutions much easier that is had been before. A number of fundamental principles are paramount in the design and effective execution of these systems: • Fresh water heating technology • Stratiﬁcation • Flow modulation • Monitoring

Figure 1 Plant room incorporating efficient technologies SUSTAINABLE ENERGY RESOURCE HANDBOOK

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Let us look at these principles in more detail Fresh Water Technology The term is slightly misleading and derives its origin from the German “Frischwasser”, which is used to describe a component that provides instantaneous hot water, on demand, without storing the heated water. In these fresh hot water systems, the heating of the sanitary hot water takes place in a heat exchanger that draws its heat from the solar (or otherwise) heated buffer tanks. Hot water to be delivered to the demand points is never stored or kept in a heated state in a sealed vessel. The buffer tanks therefore become nothing more that static thermal batteries that store kilowatt hours in an inert medium, water. The water in these buffer tanks remains heated and insulated in a closed sealed loop to the various heat exchangers, allowing the system to draw from this stored heat as and when required. This has a number of advantages: • Reduced heat loss from distributed small volume storage • More eﬃcient heat delivery • Diverse temperature delivery from one integrated system • Significant reduction in turbulence in the stored water (buffer) • Dramatically reduced pathogen growth and reduced health risk

Figure 2 Legionella pneumophilla (National Health Service UK, 2012) The last point above is perhaps the most crucial of all, since we live in a society where the average consumer may very well be living with a compromised immune system and would be much more vulnerable to contracting respiratory disease. The main culprit in hot water is a bacterium of the genus Legionella, which is spread in fine water droplets (aerosols) and can lead to an acute respiratory condition known as Legionnaires’ disease (World Health Organisation, 2007). This bacteria thrives in stagnant water in temperatures of between 30°C and 50°C, and can survive in temperatures beyond these limits. The use of fresh water heating systems provides a means to deliver hot water without the risk of bacterial incubation, thereby ensuring safe, clean, uncontaminated hot water. This is especially important in health care and hospitality applications where infectious diseases can spell disaster.

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For detailed information about Legionella in the South African context, consult the recently published South African National Standard for Legionella Control, published 13th May 2013 (SANS893) (Ecosafe, 2013)

Stratification The concept of stratification in hot water systems refers to the fact that layers of water at various temperatures naturally separate due to density differences, with the hottest water at the top and the cooler water at the bottom. The use of plate heat exchangers to transfer the heat to the required heating demands allows low circulation rates, thereby reducing turbulence and encouraging the stratification effect. This technique is often referred to as the ‘low flow’ or ‘single pass’ and is characterised by mass flow rates of approximately 5-20kg/m2h (AEE - Institute for Sustainable Technologies, 2009). There are a number of distinct advantages to stratification: • Target temperatures at the top of the buffer are rapidly achieved • Solar collector efficiency is increased due to lower inlet temperatures • Reduced auxiliary heating demand • Lower mass flow rates mean smaller pipe dimensions and also smaller pumps can be used The overall effect of correctly applied stratification is a reduction in the total energy required to run the system, and a resultant reduction in total system cost (German Solar Energy Society, 2010)

Flow Modulation Flow in piping is a much misunderstood and highly dynamic issue within solar heating design in South Africa. The vast majority of designers/installers do not consider the flow rate when designing or implementing larger scale solar thermal systems. In fact, many of them interviewed indicated that they gave it no consideration at all, beyond ‘is the fluid moving or not’ (Students, 2013). The truth is that flow rates in solar thermal systems are absolutely crucial and can make the difference between warm water and hot water, no matter how cleverly contrived the rest of the design may be. For example: • High flow rates use high power pumps, increase electrical consumption and friction losses. • High flow rates may cause the disruption of stratification within the buffer tanks • High flow rates accelerate deterioration within heat exchangers Whereas: • Low flow rates reduce the electrical energy required to run pumps and also reduces the friction losses in the piping. • Low flow rates allow effective stratification within buffer tanks • Low flow rates increase the efficiency of solar thermal collectors, by lowering the collector inlet temperatures. • Low flow rates increase the temperature at the outlet of both heat exchangers and solar collectors, thereby allowing the target temperature required in the buffer tanks to be reached more rapidly. (German Solar Energy Society, 2010)

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Thanks to the demand for more efficient pumps in the EU and elsewhere, we are able to access pumps and controls that allow speed management of single phase hot water circulators. By implementing a control strategy that dynamically adjusts the flow rate according to temperatures and temperature differences, the total system efficiency is increased, not only as a result of reduced pumping power, but as a result of more efficient solar harvesting (German Solar Energy Society, 2010). In its simplest form, a solar differential controller measures the temperature at the hottest point in the system, compares it to the coldest point in the system and adjusts the pump speed up or down accordingly. In other words, the pump will dynamically increase or decrease its speed as the solar input varies throughout the day. This is particularly important in a climate where summer thunderstorms are prevalent, since the solar circuit will adjust for the reduced radiation during the storms, thereby ensuring efficient solar harvesting. Flow modulation is also critical in fresh water heating systems, which could easily be called the inverse of solar heating circuits – instead of changing the buffer with thermal energy, they discharge thermal energy in a controlled manner. Flow modulation is again very important, since the variable speeds of the pumps on either side of the fresh water heating system heat exchanger will ensure that the target temperature is immediately reached. In addition, variable speed pumps form an integral part of energy efficient hot water circulation in buildings. By reducing the rate at which the water is moved in the circuit, the heat losses are reduced and the pumping power is consequently reduced. Many advanced controllers, notably the range produced by Resol, Germany, are able to handle multiple circuits at once, and can be expanded to accommodate multiple stores (buffers) and multiple collector arrays, all with fine pump control included.

Monitoring In order to deliver the best results from an efficiently designed and correctly installed solar thermal system, one cannot expect to operate on the ‘fire and forget’ principle. On the contrary, by monitoring the performance of the system post-commissioning, the set points, flow rates, pressures and other important parameters can be adjusted to reflect the operational realities of the system within its installed context. Fortunately, many of the control systems allow data logging and display, using very basic components and a reliable data (internet) connection. In some cases, such as with Resol and their vBus. net service, the framework upon which one can build a monitoring portfolio is provided free of charge. Monitoring of almost all states and values in the solar thermal system is possible, with the following being the primary metrics: • Temperature • Temperature diﬀerence • Heat quantity delivered (kWh) • Flow rate • Volume delivered • Pressure • Radiation • Run time • Clock time

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This may seem to many to be an ‘over engineered’ solution, but the reality is that energy delivery is greatly increased if the setpoints are adjusted once the system is commissioned (German Solar Energy Society, 2010) An important fact about monitoring solar thermal systems is also often overlooked here in South Africa. By allowing insight into the performance of a particular solar thermal system, the installer is showing confidence that the system will deliver energy as predicted, according to the client’s expectations. Publicly displayed data can be a double-edged sword, and one has to be very sure that one’s design is correct before exposing oneself to criticism. In other words, those that are brave enough to share the recorded data with their clients, are confident enough that the system will do as it was designed to do – deliver heat consistently and efficiently. Recent experience (Author, personal experience, Midrand, 2013) showed that by adjusting various temperature set points within the solar differential controller of a large scale solar thermal system, delivery of energy improved by an estimated 10%. Additionally, the live display of data allowed the author to monitor the results of the adjustments to ensure that in fact the changes were positive. The graph below clearly shows the increased temperature after certain adjustments were made to the system:

Figure 3 vBus.net display of recorded data (SEG Solar Energy (Pty)Ltd, 2013)

The adjustments referred to above are only one of the many improvements that have been, and will continue to be made to improve the performance of the system. The most positive spin-off of this initial monitoring is that the installer of this system has been awarded a second contract on site, with an expected volume of 12 000ℓ.

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For the client, the benefit has been not only the improvement of performance of the system, but it has highlighted the excessive water consumption on site. The result is that water usage is expected to drop dramatically in 2014, once the installation of efficient shower heads is completed. Further developments in these systems will allow contractors to manipulate the set points of solar thermal systems remotely, with the use of a pc or tablet device. In other words, immediate adjustments can be made without a physical presence on site, and the work performed can be billed accordingly, without the service provider ever leaving the office.

Products and Solutions for Advanced Solar Thermal Systems Now that we have established that fine control and management of solar thermal systems delivers better results and higher energy gain, how can we implement these? In all cases, we would seek a solution that meets the following basic criteria: • Efficient • Affordable • Robust • Simple to install Fortunately we now have access to a number of solutions that combine all the essential elements that we have mentioned so far, both on the input and delivery side of the system. Stratified Charging Module SLM120XL Marketed by SEG Solar Energy (Pty)Ltd, this streamlined solution is suitable for both new and retrofit installations. The SLM120XL unit is able to handle up to 120m2 of solar thermal collector area and incorporates a Resol differential solar controller and energy efficient variable speed pumps. (SEG Solar Energy, 2012)

Figure 4 Stratified charging module SLM120XL (SEG Solar Energy, 2012)

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In addition to the main function of the unit, the following information can be recorded and displayed: • Flow rates and volumes • Temperatures at all sensor positions • Heat quantity produced • Error states Fresh Water Module FWM225XL When it comes to delivering uncontaminated, instantaneously heated water, the Fresh Water Module FWM225XL is the uncontested leader in the game. This patented product was the result of research and development performed by individuals who subsequently built and now operate the world’s largest manufacturer of flat plate solar collectors. The FWM225XL module is designed to provide instantly heated hot water, while drawing the heated fluid from the buffers and simultaneously providing hot water recirculation in the building. As previously described, this component uses a plate heat exchanger and variable speed pumps to ensure the most efficient use of stored heat and consistent delivery of clean hot water, without the risk of bacterial contamination. (SEG Solar Energy, 2012) With the help of the controller fitted to the unit, various data points can be read and displayed, such as: • Temperature • Flow rate • Run time • Pressure

Figure 5 Fresh Water Module FWS225XL SUSTAINABLE ENERGY RESOURCE HANDBOOK

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By combining the aforementioned devices with the appropriate storage vessels, the result would look something similar to the representation in the diagram below:

Figure 6 Large scale SWH system with stratified charging and fresh water technology (SEG Solar Energy, 2012)

Conclusion Solar thermal systems are fast achieving their correct place in the South African HVAC industry – that of primary energy source – and no longer the ‘alternative’ The question is no longer “does solar work?” but rather “how can you maximise the delivery of solar energy” in your project today, and into the future. Given the range of efficient solutions available, it is inconceivable that anyone would be hesitant to invest in the cleanest source of energy our species has ever seen. Solar simply works.

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Works Cited AEE - Institute for Sustainable Technologies. (2009). SOLTRAIN - Thermal use of Solar Energy. AEE - Institute for Sustainable Technologies. Ecosafe. (2013). South ASfrican Legislation. Retrieved from Ecosafe: http://www.ecosafe.co.za German Solar Energy Society. (2010). Planning & Installing Solar Thermal Systems. Earthscan. National Health Service UK. (2012). http://http://www.nhs.uk/. Retrieved from NHS Choices: http:// www.nhs.uk/conditions/legionnaires-disease/Pages/Introduction.aspx SEG Solar Energy (Pty)Ltd. (2013). Vbus.net data logging. Midrand: Resol GMBH. SEG Solar Energy. (2012). Fresh Water Staion FWS225: Operating Manual. SEG Solar Energy GMBH. SEG Solar Energy. (2012). StratiďŹ ed layer module SLM120: Operating manual. SEG Solar Energy GMBH. Students, S. (2013). (R. Dearlove, Interviewer) World Health Organisation. (2007). Legionella and the prevention of legionellosis. WHO.

References : SANS 10400 regulation XA , SANS 204 building hot water requirements.

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PROFILE: SMART SOLAR

A PROFILE OF OUR BUSINESS THE NATURE OF THE BUSINESS Smart Energy Solutions, are the Sole Distributors for the sub-Saharan region of Africa for the Coolerado range of air conditioners manufactured by the Coolerado Corporation of Denver, Colorado, USA.

A PEN PICTURE OF THE COOLERADO CORPORATION Was it Valeriy Maisotsenko’s stamina, grit and patience or simply his will to succeed, that ensured that he never gave up on his mission to develop a New Thermodynamic Cycle that would be capable of delivering cold dry air and saving 90% of the electricity cost in the process. Whatever it was, he succeeded with the help of the Gillan family, who are all engineers from Denver, they had jointly created and patented a Heat and Mass Exchanger (HMX).They then founded the Coolerado Corporation to manufacture, sell and distribute Coolerados world-wide. They had created the future of Air Conditioning! From humble beginnings they are taking on the world when it comes to energy savings and providing A TRULY GREEN AIR CONDITIONER, which is capable of running off single phase electricity or even as few as four solar panels, generating 800 Watts, the M50 Coolerado produces 60,000 Btu’s of cooling power. THIS IS WHY IT IS SO GREEN. • Low energy usage, savings of up to 90% on the cooling portion of energy bills is common place.

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PROFILE: SMART SOLAR

• • • • • • • • • • • • • • • •

Coolerado power usage 220v, Single phase, 5amps: 750 Watts to produce 60,000 Btu’s. Competitor power usage 220v, 3 Phase, 15 amps: 4,500 K/w (minimum) to produce 60,000 Btu’s. No chemical refrigerants are used in any part of the process! No compressors or condensers are used! Please view the Coolerado M50 brochure. Product air is fresh, ﬁltered and is allergen and dust free. Cooling is achieved by the constant displacement of stale air, no recycling. Cooling is achieved by drawing air into a Heat and Mass Exchanger using a variable speed fan. The air is separated equally into WET and DRY air channels in the Heat and Mass Exchanger. The WET, working air, is cooled by rapidly evaporating water and is exhausted into the atmosphere. The DRY product air is indirectly cooled by the adjacent (above and below) WET air channels. There is no added humidity in the DRY air channels. This product air is used to cool the target area. The product air achieves temperatures from 2° above Wet Bulb to below Wet Bulb Temperature. The Heat and Mass Exchanger is made from recyclable material! The M-Cycle, (1998) is the greatest advancement in air conditioning in a century. The Coolerado (HMX) is not an evaporative cooler like a Swampy evaporative cooler (which introduces humid air.) The Coolerado cools by an indirect evaporative process. Translating the energy usage saved into cash savings is huge, pay backs of between 9 months and two and a half years are common place, the greater the usage the greater the saving. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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CHAPTER 5: THE FUTURE  IS IT TO BE INTELLIGENT BUILDINGS?

Erik Kiderlen (Pr.Eng) Ashway Investments

THE FUTURE  IS IT TO BE INTELLIGENT BUILDINGS? Introduction Building services consume energy and require careful maintenance if they are to be continuously reliable. Compared to the building fabric their lifetime is comparatively short. However they make buildings habitable for people to work and live in them by providing air and water at suitable temperatures besides light, power and a host of other utilities for the occupants. Heating, ventilation and airconditioning are major considerations because they provide heating and cooling for human needs. For buildings to be sustainable and also healthy we need to consider alternatives to the traditional approaches to such systems.

Smart Materials Technology is advancing more and more rapidly but cannot provide all the answers. A highly significant area of development will be in smart materials, which will revolutionise the way that the building facade can be designed. Material scientists can already alter the properties of materials by working at a molecular level, such as a concrete which is lighter but many times stronger than traditional concrete. It can be expected that glass will eventually become as thermally efficient as other materials. Self-healing building skins akin to those found in Nature are feasible. However, commercial viability is some time away. Then there is Nature. The marvels of the plant and animal worlds give ceaseless wonder and can stimulate us to think more laterally. By reviewing the thinking behind vernacular styles and being prepared to learn from Nature we can design more naturally responsive buildings. Let us adopt an approach, together with appropriate technology, to buildings and systems as a whole, that will achieve sustainable intelligent architecture for people and society. In contrast to advanced materials there are simple materials such as industrial hemp which is a renewable crop. It offers low embodied energy, high thermal mass, is hygroscopic and is sufficiently airtight. Its use as construction material does allow a trickle of air through them, i.e. they are ‘self ventilating’ . However, the cultivation of hemp is still an agricultural taboo in South Africa. Its use as a building material would jeopardize many traditional established board manufacturers. Straw bale construction has also successfully been used by local and international architects, Rammed earth walling is another sustainable construction approach. A Japanese architect is noted for his innovative work with recycled cardboard paper. Waste composites also offer immense possibilities for construction. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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The biggest hurdle in RSA is the perception, in the lower socio-economic strata of the population, that anything less than classic brick and mortar is substandard – and that a everyone is ‘entitled’ to such a construction. This unawareness of economic, affordable alternatives is a generic problem in this population group.

Smart Animals and Plants Animals and plants can teach us a lot about how to be economic with the use of energy and materials. Biomimetics – say in structural forms used in construction like the vein patterns of pond lilies .These inspired Joseph Paxton to design the support ribbing of the Crystal Palace in London. These forms are a natural equivalent to structural engineer’s stress diagrams, but there is still much to learn. There is much research showing applications using the chemistry of bacteria. One example is the microbial fuel cell for generating electricity. This fuel cell uses bio-degradable waste and produces limited electrical voltage. Algae is another exciting area for architecture. A building in Germany generates heat from its dynamic façade which has bioreactors in the form of transparent glass algae containers on the (warmer) southern aspects. These reactors absorb solar energy, hence creating a controlled environment for photosynthesis to take place. Firms in the US are already marketing the Verde algae system for mounting on a building’s walls or roofs. These developments and others, like using sensors embedded in the facades of buildings, means they will become communication channels for interaction with the climate and the occupants. They will impact on the way we deal with heating, ventilating and air-conditioning because they give rise to a new generation of energy-producing buildings, rather than energyusing buildings and goes beyond the Zero Net Energy building concept, which is achievable even with our present materials and engineering expertise.

Metering and Estimating Smart metering and wireless sensor networks in buildings will help us to understand the influence of occupancy behaviour on the building’s energy and water consumption levels. The feedback these networks provide will guide the occupants to ways in which they can reduce consumption and thereby let the building become more sustainable. The benefit to the domestic consumer is that they can save money on their energy bills. In the case of commercial organisations, they can encourage their staff to be more aware of green interventions by offering ‘green bonus’ schemes. Presently, ‘dashboards’ to show energy consumption and building interior conditions are already available. Bonus schemes can use such dashboard read-outs, to allocate winners. Also, by comparing the performance of the building and its systems with the responses of the occupants, one can easily define areas of dissatisfaction and use more appropriate design criteria. Better operating schedules and set points could then be set up. Metering will then bring the results of occupant behavior to everyone’s attention. Cloud computing means virtual data storage will not only decrease computer energy cooling loads, office space and administration time but also offer the means for smart mobile devices to tap into the internet for required data .The networked world opens up a new avenue of understanding and a modeling complex of non-linear dynamic systems for design and for building management procedures.

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Virtual Realities The development of virtual reality scenarios will allow the client to have much greater participation in design and management processes. Professionals are often still in the ‘silo-mentality’ when talking to clients in project briefing meetings. Virtual reality will enable all systems to be simultaneously viewed, altered, and finalized . Computational flow dynamics can create virtual scenarios, for example, smoke propagation during a building fire. Such scenarios will enable the client to have much greater hands-on input, and overcome the difficulties that can arise when clients are presented with the traditional 2-dimensional plans and sections. The analysis of problems in the built environment often assumes for simplicity that actions occur in a linear system but in reality dynamic non-linear systems predominate. Network science is part of the field of complexity science and chaos theory. It allows for the study of how systems interact (Hidalgo, 2008; Lu and Clements-Croome, 2010). These developments and ideas will make system modeling more realistic in the future. Indirectly this makes the design much more realistic and reduces the number and intensity of the ‘what if’ options.

Education and Training South Africa is very well placed in the ‘futures’ field. It so happens that there is a large, mainly rural, population, well versed in vernacular architecture and efficient optimal use of materials at hand. A very successful local architectural firm is using this knowledge to assist the population with such details as foundations, footings, damp-courses, as well as structural stability, framing and roof trusses. It leaves the walls, floors, windows, doorways, and roof coverings, to the locals, as they ‘know best’. The more successful of these projects can be brought to bear on the urban prejudice for ‘bricks and mortar’. This fund of knowledge could be assimilated into the National Housing Board’s training programmes. South Africa’s existing tertiary education institutions will have to adopt a more inclusive ‘vernacular’ design approach. Attention will need to be given to the education and training of design and management professionals. It will be necessary to bring these disciplines together, not only by interrelating the professional bodies, but also by reflecting this in the education and training of individuals. In future we can expect to see foundation courses for architects, engineers, sociologists, economists, planners and developers, before they specialise in their appropriate disciplines. They should cultivate a common ‘construction language’ to bridge the ‘silo’ divides.

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Conclusions In what has been presented above a summary of possible future scenarios could be as follows: • • • • • • •

Smart materials for reactive facades, Innovation with respect for passive low technology, Application of nanotechnologies, Applications of biomimetics, Carbon negative buildings, Buildings linked into smart measuring systems, New education and training culture emphasising value and interdisciplinarity.

Resource consumption, information and communication systems, client-driven knowledgebased design and construction processes are some of the current key issues. These have to be viewed within the grand scene for the future described above. A singularity is an event we cannot see beyond, such as when people will be at one with intelligent machines, which begs the question: What then? Whatever the speculation, the future will be challenging, but will aﬀord us opportunities to improve the quality of life throughout the world. A glimpse at how science will shape human destiny by the year 2100 shows that for our grandchildren, intelligent buildings and cities will be a vital part of this evolution.

Acknowlegement: This article is based on personal communication with Prof D.J. Clements-Croome. He is Professor Emeritius in architectural engineering at Reading University. He was founder of the MSc Intelligent Buildings Course at this university . A full version of his presentation to SAIRAC, whilst on a visit to South Africa appeared in the August 2013 issue of RACA.

References: • SAIRAC lecture – Prof. D.J. Clements-Croome (June 2013) Cape Town. • Practice Manual of the SA Institute of Architects, SAIA 1.21, 1:3 (undated) Johannesburg. • Clements-Croome D J 2013 Intelligent Buildings: Design Management Operation (ICE Publishing) • Van Wyk, L- Net Zero Building; Green Building Handbook, Alive-2-Green (Feb. 2012) Cape Town. • Nurick,a. and Sheppard,C.J. – A self-powered hybrid photovoltaic and solar thermal cell. RACA Journal Vol.29 no. 28, (October 2013) Johannesburg.

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INTELLIGENT SOLAR HEATING SunScan is a Cape Town based importer and distributor of solar water heaters, sourced from some of the largest and highly respected global manufacturers. We have a network of over 37 accredited dealers and are rapidly growing into the most respected distributor of high quality solar geysers in South Africa. SunScan Southern Africa was founded in 2008 with the goal of providing high quality affordable solar water heaters for single or multiple residential, as well as small to medium industrial and commercial buildings. SunScan offers a wide range of systems on the Eskom rebate programme. We currently have 12 systems on the programme, with new systems being introduced regularly to meet the expanding market. SunScan offer both flat plate and evacuated tube technologies. By sourcing the best local and international products, we ensure that our customers get the highest performance systems available, something our competitors are finding hard to match. Installing a solar water heater has many benefits, ranging from monthly savings on your electricity bill, to improving the value of your home, while at the same time reducing your carbon footprint and contributing to Eskomâ&#x20AC;&#x2122;s 49M initiative. Our solar systems require very little maintenance and are likely to carry on producing energy efficient hot water for 15 years or more. If one does the calculations on this feel good investment you will realise that your returns are phenomenal. This investment will turn any financial advisor green with envy.

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SunScan has recently been involved with Bothasig Gardens development, supplying the 120 unit project with 150L evacuated tube solar water heating systems for each home. SunScan, in partnership with Future Comforts, one of our accredited dealers was awarded the contract to supply the solar water heaters to this innovative project In doing this, SunScan have come to the party by meeting the project’s goal of “improving and upgrading entire communities and creating opportunities that compliment long term socioeconomic integration” and made the affordable rental units energy efficient”. Despite the fact that new legislation has made it compulsory to install solar geysers in new homes, there are benefits that all parties can share in. Developers of rental units benefit from higher rentals due to the electrical savings that the tenants enjoy. New home owners benefit from cheaper water heating costs as well as the value added to the property, not to mention the fact that installing a SunScan solar geyser helps reduce your carbon footprint. One of the major plus points of installing solar, is you are doing your part to help keep the lights on, and thereby contributing towards industry growth during this difficult period. Eskom are doing their part to assist the purchaser of a solar geyser by making it more affordable by offering healthy rebates on our SABS approved systems.

For further information on how we can customise a system to best benefit you, contact SunScan at your earliest convenience. Tel: 021 551 5906 Fax: 086 689 4401 www.sunscan.co.za admin@sunscan.co.za

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CHAPTER 6: THE STRATEGIC AND TACTICAL APPROACH TO SUSTAINABILITY BEHAVIOUR CHANGE

Lloyd Macfarlane GSA Campbell Sustainability Consulting Director at Alive2green Editor of the Green BusinessJournal

THE STRATEGIC AND TACTICAL APPROACH TO SUSTAINABILITY BEHAVIOUR CHANGE Introduction In his best-selling book titled The Tipping Point, Malcolm Gladwell refers to the Band-Aid as an inexpensive, convenient and remarkably versatile solution to an astonishing array of problems. “The Band-Aid solution is actually the best kind of solution because it involves solving a problem with the minimum amount of effort and time and cost.” Organisational leaders around the world are in agreement with Gladwell as they apply Band-Aid solutions to problems on a daily basis, often with great success. There are however conditions for which a Band-aid will have little or no effect, just as there are issues and challenges in the organisation which require more than a patch-up, quick-fix solution. Organisational behaviour is often based in deep cognitive patterns and constructs and whilst behaviour can be immediately altered with intervention (the Band-Aid), any long term adjustments to behaviour are only possible with a more strategic approach which consists of tactical engagement and responsiveness. Sustained organisational behaviour change generally requires a systematic, holistic approach that is based in science and effective implementation. In order to contemplate a deep organisational change, there are certain principles which should be incorporated in any campaign: - Good campaigns still draw upon traditional theories that have evolved to incorporate more emphasis on the cognitive dynamics that affect individuals and groups. - Behaviour change campaigns can achieve good results by establishing a credible connection with the desired behaviour, incorporating a tactical approach and providing a framework that supports and eventually inculcates the change over time.

Background and Context of Sustainability Behaviour Change Within the context of global warming and climate change, issues of sustainability are increasingly important for organisations as they contemplate their existence in economies that are now demanding the internalisation of previously ‘external’ environmental and social costs of production and consumption. Resource costs and availability, legislation, and competitive advantage are the primary drivers of the green economy ‘movement’ and there are a growing number of stories and case studies that illustrate the measurable returns on investment from capital interventions, particularly in industry or large buildings. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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Savings and efficiencies from capital interventions have now become relatively easy (for organisations with access to capital) – ROI submission, spec, install, measure, report, amortise (and repeat). Compare this process to one that seeks to alter the collective mindset of the organisation towards a new behaviour and then ask yourself which one you would rather manage. Collective behaviour change requires an intensive management approach but results can be meaningful. Some of the best opportunities exist within the scope of non-capital related behaviour change interventions. This is particularly true where sustainability objectives are concerned where some of the lowest hanging fruit is waiting to be picked. The European Environment Agency (EEA) report (2012) presents information on past and projected climate change and related impacts in Europe. This comprehensive report suggests that as much as 20% of household energy consumption could be saved from behaviour change – a staggering figure when viewed in the context of European household energy consumption figures of approximately 457 million tonnes of oil equivalent p/a. South Africa is feeling the squeeze of an electricity grid that is struggling to deliver against demand and we are witnessing behaviour change in motion: Eskom’s 49M campaign is directed at creating awareness of energy efficiency and is appealing to the collective mindset of the population to save electricity. This campaign has provided a great case study for sustainability behaviour change and will be discussed in more detail later in this chapter. Organisational behaviour change is extremely important in a country such as South Africa – a country with official unemployment statistics of around 30% and unofficial statistics of closer to 45%. Within the context of the national dialogue around sustainability, South African business has a duty to promote employment in industry – a duty that is directed at rectifying social imbalances that are responsible for poverty, crime and disease, for example. And yet, technology is making it easier for industry to decouple from labour. Non-capital, human intervention should therefore be prioritised ahead of labour replacing automation where possible. There are huge opportunities for organisations to be more competitive whilst remaining committed to a labour centric approach. A successful shift in behaviour towards a desired organisational culture can result in sustained competitiveness that no capital investment process alone could hope to achieve. In his keynote presentation at the National Cleaner Production – South Africa, Ten Year Anniversary Conference, Dr. Bill Meffert (Manager: Energy and Sustainability Services Group, USA) reported on uptake and success stories from the Superior Energy Performance Programme – a market-based, ANSI-ANAB accredited certification programme that provides industrial and commercial facilities with a roadmap for achieving continual improvement in energy efficiency while boosting competitiveness. The programme was initially piloted by five facilities in Texas from 2008 to 2010 with the primary objective being the driving of continual improvements in energy performance. Significant savings were reported through the period by all participating companies, but what was most interesting was that 77% of the savings were from no/low cost operational interventions that didn’t involve capital outlay. Within the context of this solid Programme framework, organisations were able to record and bank sustained savings that were linked to resource efficiency, primarily energy use. There is a perception that resource efficiency in business is heavily linked to capital and, by extension, access to capital. This is often the excuse used by SMME organisations that are behind the adoption curve. Studies like Meffert’s show that behaviour related interventions that require

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very little or no capital investment can represent the low hanging fruit in the pursuit of resource efficiency. Great results can be achieved by embarking on a strategic process that identifies goals, builds awareness and internal capacity, and imbeds behaviour change tactics and processes into the existing structures of the organisation.

The Relevance of Traditional Behaviour Theories Any attempt to understand behaviour change should begin with a basic knowledge of the traditional theories that are still extremely relevant today. Behaviourism The most significant development around behaviour change thinking coincided with the advent of Behaviourism in the early 20th century. The primary tenet of early Behaviourism was that psychology should concern itself with observable behaviour and not with unobservable thoughts, feelings or beliefs. The work of Pavlov was influential at this time where he was most famous for his work with dogs and their association with food and the sounds (bells) that accompanied the food. The principles of classical conditioning were founded at this time and are still used and referred to widely today. Radical Behaviourism Behaviourism remained an important contributor to research right up to the 1950s at which point it became overshadowed by the Cognitive Revolution. The Cognitive movement recognised other influencers of behaviour such as language and neuroscience. A new movement called Radical Behaviourism was pioneered by Skinner who maintained that behaviour could not be studied in isolation of mental processes or the mind and behaviour should be understood as a function of environmental histories of reinforcing consequences. Skinner’s work was directed at predicting outcomes and has contributed hugely to current theories of behaviour change. Cognitive behaviour change theory is still developing as new layers of social interaction and complexity become more relevant (accelerated by technology) and as management acknowledges the human features of organisations. The Learning Theories The Learning Theories were a collection of frameworks and theories that describe how information is absorbed, processed and retained. The theories claim that complex behaviour is learned gradually through the modification of simpler behaviours. Learning takes place when individuals imitate others’ behaviour and when they are repeatedly rewarded for desirable behaviour. These theories are still widely used to drive behaviour change within organisations. An important theory of this time was linked to self-efficacy which is an individual’s impression of their own ability to perform a demanding or challenging task. This impression is based upon factors like the individual’s prior success in the task or in related tasks, the individual’s physiological state, and outside sources of persuasion. Self-efficacy can be heightened if these factors can be manipulated.

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Stages of Change Model The Stages of Change behavioural model describes five stages of a process that individuals move through when contemplating behaviour change. This theory has gained popularity in the workplace, particularly for employee training. Many of the modern strategies around corporate behaviour change are based on these and other traditional theories that are not complex and which can assist change agents within the organisation.

Barriers to Behaviour Change There are a number of factors that make it difficult for employees to establish a connection with sustainability and employers should be aware of these before embarking on a campaign. Here are few of these barriers:

Barriers for the Individual Disconnection with reality In the minds of some, electricity and water flow freely and constantly from plug points and taps respectively. There is no connection with the real world processes that sit behind these services or the massive infrastructure that is needed to maintain delivery. An interruption in supply can sometimes present an opportunity to establish that connection with reality. A stronger connection to a conflicting behaviour Modern society is filled with messages promoting a culture of excess. We are constantly being told to buy and being encouraged to consume more. Many of us develop a connection with behaviour that is linked with this state of excess. This connection can be in conflict with behaviour that is aligned with conservation or efficiency for example. A disconnection with or distrust of the organisation Where employees do not trust the company, for whatever reason, it can be extremely difficult to sustain a new behaviour. The company cannot establish a sustainability connection because changes that are associated with the company or its intentions can easily be consciously or subconsciously blocked.

Barriers for the Organisation (or Leadership) Wrong values â&#x20AC;&#x201C; no values The absence of a corporate value system or the presence of a value system that does not recognise the importance of sustainability are both incapable of providing a suitable framework from which to tackle sustainability behaviour change. The organisationâ&#x20AC;&#x2122;s internal statements of commitment should be aligned and perceived to be incorporated.

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Ignorance or Illegal Leadership structures that are unaware of the reasons for pursuing sustainability behaviour changes or of the basic requirements will not support initiatives for change. An environment in which there are real or perceived illegal activities is also not conducive to any process that seeks to connect the organisation with higher values. Incompetence or disinterested A leadership that doesn’t function well or that just doesn’t care is unlikely to be a leadership that is capable of achieving deep organisational change.

Drivers of Sustainability Behaviour Change There are three broad drivers of behaviour change within the context of corporate sustainability that are likely to be widely applicable: Values “I believe in doing the right thing and I identify personally with the behaviour. I will therefore naturally be inclined towards this new behaviour.” This is the strongest and most sustainable force of change. The change appeal: Make me care! Compliance I have been told to change my behaviour and so I am doing so, but I wouldn’t necessarily be doing this if I didn’t have to.” This is the weakest and most unsustainable force of change. The change appeal: Make it my problem! Advantage “It suits me to change my behaviour and I’ll be better off doing so, although I don’t necessarily align myself with this new behaviour.” This is a middle ground force of change and lends itself to education and training. The change appeal: What’s in it for me?

Tactical Behaviour Change Provided that an organisation’s leadership is knowledgeable, supportive and involved, and provided that the value system is aligned with the intended change, the opportunity exists for a strategic and tactical process that can be highly effective. There are a number of important things to remember when planning a behaviour change campaign:

Connecting with the Change As consumers we are becoming more and more separated from the reality of our decisions. This is particularly the case where food or services are concerned. We pop down to the supermarket and purchase perfectly presented products (e.g. chicken or fish) but have no idea of the various processes that have led to the finished product being displayed on the shelf. Or, we flick a switch

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in order to turn on the lights but have no connection with the many processes that led to the delivery of that electricity to our homes. If we knew more about the ways in which our food was treated/handled before it arrived at the supermarket, or if we had a clear picture of the various activities and impacts that bring us our energy, would this information make a difference to our decision making process? The answer in most cases is ‘yes’. In order for our behaviour to change we must have a personal connection with the new behaviour. This means that we must identify with the new behaviour or with the reasons for the behaviour. For example, companies that are targeting energy efficiency behaviour change should be seeking to ensure that employees have understood the reasons for the change and have developed a personal connection with the change by identifying personally with the risks and consequences of a wasteful approach to energy. Ideally each individual in the organisation should understand the relationship between energy and cost, the relationship between energy and the environment, and their own role in energy conservation.

Connecting with the Changer Establishing a connection with the desired change is generally not enough if the individual has not connected with the organisation that is leading that change. Regardless of any shift in personal constructs, if the individual does not feel a connection with the leadership it is unlikely that any changes are sustained in the long term (see barriers to change above). The organisation should first look seriously at its own value systems and at its leadership before embarking on what could potentially be a wasted exercise.

Making it Personal Making a connection with the desired behaviour is a necessary first step, but real sustained change comes from shifting the individual to a state where he or she wants to make the change. Behaviour change strategies are currently being used effectively to achieve results and to build capacity in organisations. Successful campaigns are empowering employees around new concepts that affect their lives outside the walls of the organisation. An important component in these campaigns is the requirement for a personal connection with the desired change, not just through a narrow focus on individual workplace persona but on the inclusion of social interaction, lifestyles, norms and values, which may collectively contribute to sustained behaviour change. The power of the ‘want to’ versus that of the ‘have to’ is huge and this is because the part of our brain that deals with seeking out pleasure or reward is entirely different from the part that deals with avoidance. Consider the personal research of Dr. Jesse Schell of Carnegie Mellon’s Entertainment Technology Centre in the USA. Schell reports on his own experiences with mobile phone ‘apps’ that are designed to alter behaviour relating to diet and exercise (and which are extremely popular). Schell subscribed to a top selling application (MyFitnessPal) which prompted him to enter information relating to calorie intake and details about exercise, throughout the day. Initially, he was intrigued with the system and for the first few weeks he did well. However, as time progressed he found it more and more difficult to maintain the information gathering and inputting process and eventually began to regard the process as a chore (a ‘have to’ behaviour). Another application that he tried (Fitocracy) used a similar approach to gathering diet and exercise information but included a ‘social’ component

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that allowed the user to connect anonymously with other users in order to swap stories about progress or to give and receive encouraging words from time to time. Schell found himself far more committed to the process over an extended period of time because he wanted to engage with the application and couldn’t wait to check in from his mobile phone – he was drawn to the process and his behaviour changed as a result.

Making a Strong Argument Strong arguments for behaviour change are more effective at ‘disrupting’ the individual and breaking existing patterns. Communication that is directed at behaviour change should focus on real strong messaging that elicits a reaction, albeit internally, from the reader. In this regard, consider the recent work of University of Pennsylvania researchers testing smokers. They tested two things – activation in areas of the smokes’ brains responsible for behaviour change and nicotine levels in their urine over time. They showed participants advertising messages with strong anti-smoking arguments and images, and ads with weaker arguments or images. The strong arguments and images were significantly more effective in changing behaviour.

Maintaining a Support Framework A framework of support is an essential component to any good behaviour change campaign. A framework will ensure that individuals aren’t left feeling isolated during their progress but are part of a larger contingent that is undergoing the change. University College London researchers reviewed data from 16 trials involving a total of 3 578 people with type 2 diabetes who used computers or mobile phones as part of diabetes selfmanagement interventions for between one and 12 months. Participants had access to some of the best information, tools and online support groups and they all understood the personal benefits of controlling blood sugar levels in their lives. Initial progress was good but results tapered off after six months. These participants had an amazing array of resources at their disposal but weren’t being supported by an overriding framework that provided them with consistent messaging, emotional support and a sense of structure. A good framework will incorporate a communication strategy that serves to remind the individual about their own connection to the change in a strong but credible manner.

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A local success story In 2010, the steady increase in electricity usage in South Africa and the inability to meet forecasted demand called for a radical national programme to change behaviour towards energy efficiency. Eskom could not meet these challenges alone and needed the active support of the entire population and a national commitment to develop practical energy saving and energy efficiency habits. The 49M campaign was born in an effort to get the entire South African population (49 million at the time) to embrace energy savings as a national culture – a significant attempt to change behaviour and one that required a strategic and tactical approach. 49M’s value proposition was a desire for a better future for all South Africans – economically, socially and environmentally – and this formed the backbone of the campaign, which aimed to create the connection between a diverse base of South Africans and a relatively complex subset of sustainability paradigms that related to the value proposition. 49M aimed to mobilise South Africans through activations, create awareness, educate and create a network that could be used to influence people over time.The campaign would communicate via advertising in print and broadcast media, social media sites, and street and shopping centre events and through an ambassador programme. In attempting to ‘make a personal connection’ and to create ‘a want’ for the new behaviour, the campaign set about establishing an identity which reflected a modern, cool persona. Branding was hip and delivery mechanisms were contextualised with other cool or inspiring personalities. This was also important if there was to be a ‘connection with the changer’ (in this instance 49M). A framework of support was important for the campaign and this consisted of a website that encouraged engagement, various regional events and activities and regular discussions and appearances on local and national media platforms. After approximately two years, the campaign was evaluated in order to establish its effectiveness and to provide feedback that would inform its direction:

49M CAMPAIGN EVALUATION (BY ASK AFRICA) Primary Objective of the Evaluation: - Explore the effectiveness of the 49M campaign. Secondary Objectives of the Evaluation: - Explore South Africans’ awareness level of the 49M campaign; - Explore the knowledge and relevance of the campaign; - Explore the motivation towards the campaign; - Explore the behaviour regarding electricity saving; - Explore needs from an electricity savings campaign. Over a period of 4 weeks, 1 788 interviews took place and the control group was carefully selected so as to properly represent regional and socio-economic diversity.

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Awareness of the 49M campaign was found to be high (73%). The South Africans that were aware of the 49M campaign were more knowledgeable about electricity saving ideas. They were also more aware of other power saving initiatives (such as Power Alert).

Knowledge was found to be the key factor that drives a change in electricity usage behaviour (correlation of 0.89) followed by Relevance (0.47).

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Those that were not aware of the 49M campaign also did not find the campaign to be relevant to them. They also lacked engagement as a result of this.

Most of the individuals (83%) that were aware of the campaign indicated that it inspired them to change their behaviour.

Conclusion - Behaviour change issues require a strategic approach and cannot be solved with a Band-Aid approach - The traditional theories of behaviour change are still relevant today - Cognitive association techniques are increasingly relevant in a free and informed society that is connected by social media - A tactical approach to campaign messaging is important - A support framework is necessary for sustained change and inculcation

References Behavior Change – A Summary of Four Major Theories.”Family Health International. University of Pennsylvania (Public Policy Center) Daniel Langlebenand An-Li Wang.http://www.upenn.edu/ Cochrane Library Study: http://onlinelibrary.wiley.com/doi/10.1002/14651858.CD008776.pub2/abstract http://www.eskom.co.za 49M Evaluation Report (Ask Afrika) European Commission Eurostat (Consumption of Energy) http://www.ncpc.co.za http://techcrunch.com/2013/07/13/why-behavior-change-apps-fail-to-change-behavior/

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Erik Kiderlen (Pr.Eng) Ashway Investments

DOING THINGS DIFFERENTLY  WHY AND HOW? Setting the Scene There is a great urgency to do things differently, if humanity is to survive beyond the next century at an acceptable quality of life level. Resource availability and pollution increase are on a negative and positive exponential path respectively. The critical ‘cross-over point’, i.e. where the percentage reduction in raw materials and the percentage increase in pollution cross over, is already on today’s planning scenario timeline – that is beyond 2050. The greater part of the world’s population live below acceptable living standards, the so-called ‘breadline’. This causes medical, social and developmental issues, all well known to those in the ‘First World’. Existing resource availability and distribution fall far short of providing adequately for existing human, animal and plant populations. Africa as a continent will experience a population doubling by 2050, from 1 to 2 billion. In South Africa, there is a significant gap between the rich and the poor. According to the GINI-coefficient, South Africa has the highest differential, followed by Brazil. Hence we may be classed as the ‘poorest’ on the Gini scale. There is thus no longer any margin for error, or in engineering terms, no more ‘safety factor’, at the present rate and manner of resource usage. In this country. This applies to all resources, such as ; a) Energy: electrical power generation b) Potable water: storage dams c) Transportable fuel: solid, liquid and gas quantities d) Arable land: food and plantation acreage e) Housing: affordable weather-resistant shelter and sanitation treatment f ) Waste: landfill and incineration sites. It is clear that politically set growth targets in this country’s National Growth Plan cannot be achieved at the present rate of resource provision. These targets are based on a working population with adequate skills. Such populations need to be housed, which housing has to be provided in economically viable numbers. The provision of such housing needs to be environmentally sustainable. This article sets out to investigate some of these methods of provision, so as to align the supply closer to the actual and future demand.

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The Demand Side In the case of housing, the present demand may be split into housing for the formal and for the informal communities. The informal community cannot at present be economically provided with electricity, water, sanitation, storm-water drainage and road access services. There is also the issue of an ageing or non-existent service infrastructure, irrelevant administrative procedures and perceived social rights. This country’s less advantaged communities have been very resourceful and innovative in providing their places of habitation for themselves, but at levels far below any of the presently prescribed standards. These communities are thus exposed to increased social safety and health stresses. This becomes a burden to the municipal and local government authorities delegated to administer such communities. This in turn has contributed to less advantaged communities receiving little or sometimes no service delivery, particularly in the informal housing ‘sprawl’ on the urban edge of South Africa’s major cities. There have been violent public reactions due to this lack. Indirectly, this has become a burden to South Africa’s tax-paying public, causing a “braking effect” on growth and development.

Standards In providing for municipal services, the formal authorities (Building Control Officers) are hampered by having to adhere to inadequate or antiquated standards and procedures. However, these are their legislated prescripts. More recently, the calibre and experience of their staff has become a further hurdle. This has led to the same errors regarding the authority’s requirements and approval time spectrum being repeated over and over again. Furthermore, the applicability of legislated standards needs to be critically reviewed, specifically by the built-environment professionals. Their input into the drafting of such standards, via the Bureau of Standards’ industry advisory committees, needs to be more inclusive. Attendance at workshops to address specific issues should be rewarded with a points system, similar to BBEEE ratings.This could be done by the SA Institute of Architects and the SA Institutes of Engineering, e.g. mechanical , electrical and structural. Professional institutes therefore need to “do things differently”.

Housing Definitions Besides adapting the existing mandatory housing standards, the definition of a building “site” needs to be expanded. All building legislation is specified with reference to a site. This implies that legislation is not applicable if a ‘site’ cannot be identified. There are very limited surveyor’s pegs in informal settlements, hence very limited definable sites. Differences between formal and informal housing are such that separate legislative processes should be followed. The legal and financial professions need to develop more inclusive ways of e.g. defining a ‘building site’, so that informal housing areas can be included . Such a definition will open up a way of “doing things differently”. Formal Accommodation This type of accommodation entails formal submission of building plans and prescribed energy plans – as per regulation, to the local building Control Officer. These plans refer to a site, and the

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CHAPTER 7: DOING THINGS DIFFERENTLY WHY AND HOW?

relevant surveyor’s co-ordinates. These plans would be formally approved by the municipality or local authority. This gives the building owner permission to erect a building on a site . This building will have minimum energy consumption and water usage, optimal sanitation and storm-water runoff etera, all as per existing regulation and minimum standards. This formal process could also be made to include upgrading of the thousands of RDP houses, as well as upgrading of ‘serviced sites’ housing, to at least a minimum standard. RDP and serviced sites are a legacy of the first mass-housing interventions , directly after the democratic government took control .This housing provision is to accommodate those who are moving up from the informal accommodation in the urban fringe. Informal Accommodation This accommodation provides directly for the needs of the inhabitants, and is thus an inherently ‘efficient’ provision. As this type of accommodation consists of sometimes very innovative structures, using various types of materials and construction methods, and in largely unplanned locations, it does not comply with any present standard or regulation. The provision of services to such accommodation is not always feasible. Hence, illegal connections and discharges are numerous. The safety and health of dwellers in such informal accomodation is always compromised. It is proposed that municipalities and local authorities arrange to have safety aspects of such informal structures inspected, in situ. This would need a large contingent of municipal (BCO’s), who would guide and record the work on structures, and on energy systems, as it is taking place. These inspections could be carried out by trainee BCO’s, thus creating work and career paths. This would help alleviate the skills shortage . Specifically in the South African situation, co-operation of ‘street committees’ in the informal settlements would be needed for such inspections to proceed . Some municipalities are already involving such committees, e.g. for better fire-fighting access ways and for security aspects. Sites are at least described, and safety is at least reviewed, whilst adding to community skills and safety. These municipalities are already “doing things differently”.

Housing Standards and Energy Policy It is a given that generation and transmission losses are further lessening the supply of electricity which eventually becomes available to the consumer. A high degree of legislative support and political will is required to make energy savings measure work. This is particularly relevant in the South African context, given the state of particularly the distribution and reticulation electricity supply networks. The following key phrases identify some South African national legislative and policy goals , to be “doing things differently”. • An up-to-date National Energy Efficiency Strategy with goals in % savings. • Placing energy efficiency policy within the broader national policy context. • Capturing synergies between policies and avoiding duplication. • Ensuring compliance monitoring and evaluation. • Identifying fair Time-of-Use tariffs, to be rolled out to all legally connected users. • Overcoming the sense of ‘entitlement’ which some consumers display towards municipal services. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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One of the major ways to ensure bankability and hence to obtain a return on investment is that housing should meet existing legislated standards.This is particularly relevant for energy consumption and efficiency improvements. More recently, the proclamation of SANS 10400 XA regulations make it mandatory to provide an energy plan for any built-up structure. Admittedly these regulations appear at present to address only the ‘classical’ way of doing things, but these go a long way towards instilling the principles of energy conservation. This ‘different’ approach could provide for better utilization of available energy resources (electricity, gas and paraffin). Renewable energy has already been introduced into these communities. United Nations, Central Government and local authorities have funded water heating roll-outs. Public organisations have provided solar pv panels and micro-grids reticulation, particularly in rural areas.

Conclusion What is needed now is for built-environment professionals to move away from their ‘Ivory Tower’ approach. In their assessments and approvals, they could use common sense, safe usage patterns, and practical efficiency measures. The total energy usage of formal buildings, and of an informal structures could thus be minimized. The issue of energy usage and energy efficiency in the provision of housing is indirectly related to the materials, methods of construction, and space usage. This activity represents around 35% of energy consumption in South Africa annually. There are numerous hurdles in making use of this energy in a sustainable and efficient manner. These hurdles need to be overcome, to enable us as a people to survive. “Doing things Differently” can contribute towards our survival. A few suggestions have been made here, which could contribute to making South Africa’s construction and housing programmes more sustainable and less environmentally demanding. This does mean a soul-searching review, some introspection and a willingness by South Africa’s professional communities to adapt ‘standards’. It would be a sad day if the opportunity to use ‘adapted’ standards was to be stifled, due to outmoded regulatory prescripts, lack of funding, or lack of political will (with apologies to Pieter-Dirk Uys – Adapt or Die). Start “Doing things Differently”.

References National Growth Plan: Green Economy Accord (2011) D.O.E., RSA Building Regs XA 104000: National Building regulations, SABS) SANS 204: Energy Efficiency in Buildings, standard (SABS (2011) Eskom IDM Programme and Funding Options. www.eskom.co.za/idm accessed June 2013 Green Building Handbook Vol. 5, ISBN 9780620452403 Vol 5. Alive-2-Green, Cape Town (2012) Prof Ernst Uken, Energy Institute, CPUT, Cape Town; Pers.comm. June 2013 Helmut Herzog, Sector Development Manager, Green-Cape, Cape Town, Pers. comm.July 2013.

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PROFILE: CLEARSKY

At Clear Sky LEDs and it gives us no greater pleasure than to help South Africans make the smart, cost saving transition to a more environmentally friendly, safe and long lasting lighting alternative only found in LED Lighting technology and products. This is not the future of lighting - it is now. With Eskom electricity hikes around every corner, our customers are able to immediately save as much as 90% off their lighting bills with reliable, fully warrantied and ultra-energy efficient LED Lighting products that enjoy over 50,000 hours of operational use. Through our professional and easy to use eCommerce storefront, every customer experiences a 100% safe and secure environment to buy their LED Lighting products immediately online. With fast, insured delivery, competitive pricing, solid stock availability, and great customer service and feedback, Clear Sky LEDs is South Africa’s leading online retailer supplying quality LED Lighting products into both homes and businesses alike. There are many different kinds of LED Lights on the domestic market, manufactured in many parts of the world. The quality of these products varies - some are very good; a lot not so good. This variability extends itself to a lack of real warranties too, if applicable at all, which can be exceedingly difficult or downright impossible to action. All Clear Sky LEDs’ LED Lighting products provide the very best quality with the most competitive price, and carry real and actionable 2-3 year warranties. That means that a malfunctioned product is not your problem – it’s ours, and if the light proves to be defective, then we’ll replace / fix the LED Light.

Office: 021 788 8238 Sales: 079 214 9353 Support: 076 325 2844 Email: accounts@clearskyleds.co.za Web: www.clearskyleds.co.za (Postal) PostNet Suite 60, Private Bag X7, Muizenberg 7950 (Physical) 5 Lakeland, 128 Main Road, Lakeside, 7950

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CHAPTER 8: GREENHOUSE GAS MANAGEMENT  MEASURING AND REPORTING

Teresa Legg GHG Consultant The Carbon Report

GREENHOUSE GAS MANAGEMENT  MEASURING AND REPORTING Introduction With an increased awareness and concern of environmental issues, specifically global warming and climate change, and growing evidence of the financial benefit of environmental sustainability, stakeholder’s expectations have matured. Shareholders, investors, customers and employees are demanding a better understanding of an organisation’s environmental impacts. Measurement and reporting of greenhouse gas (GHG) emissions provides organisations with the base from which to understand their GHG impacts, manage their GHG risks and embrace the opportunities of a low carbon economy. This also provides a means to effectively communicate these outcomes with relevant stakeholders. This chapter aims to discuss the benefits of measuring and managing greenhouse gas emissions in business, as well as outline the process and requirements of internationally accepted GHG measurement and reporting frameworks.

What are the Benefits of Reporting GHG Emissions? The value of embracing a sustainable strategy is demonstrated through reduced costs, profitability, increased efficiencies, increased market share and customer loyalty, as well as reduced business risk, both reputational and financial. More importantly, a sustainable strategy drives innovation in product and technology, standing a company in good stead for long term success. Embedding environmental sustainability into your strategy requires a thorough understanding of your impacts and the risks and opportunities that these impacts present. These risks and opportunities need to be brought into your strategy, managed and continually reviewed to feed back into strategy. You cannot however understand the extent of your impacts and manage them without having a solid measurement framework. In light of expected carbon taxation, measurement also allows a prudent organisation to understand the financial risk of its emissions, both internal and external. Due to the fundamental link between strategy and environmental impacts, executive leaders need to sponsor the measurement and management of GHG emissions. Understanding impacts is key to a sound strategy and therefore strategy should dictate such impact assessments and the results thereof should be fed back into the strategy. Executive commitment also secures funding and resources and places a priority on the carbon footprint project.

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CHAPTER 8: GREENHOUSE GAS MANAGEMENT ď&#x161;ş MEASURING AND REPORTING

Carbon Footprint Reporting Standards for Business Understanding your carbon footprint is a starting point to identify areas of the business where greenhouse gas emissions occur and where they need to be managed. So what is a carbon footprint and why can it be complicated? Simply, a carbon footprint is a calculation of the total GHG emissions caused directly and indirectly by an organisation or company. This is typically calculated and reported over a period of 12 months. What often makes a carbon footprint complicated is defining the boundaries of the audit and categorising and reporting emissions in line with international standards and protocols, much like one would report financial information. The GHG Protocol Corporate Accounting and Reporting Standard, developed by the GHG Protocol Initiative is widely regarded as the standard for corporate GHG accounting and company reporting. From a carbon perspective, the protocol is analogous to the generally accepted financial accounting principles (GAAP) for an organisationâ&#x20AC;&#x2122;s normal accounting and reporting practices. The GHG Protocol Initiative is a multi-stakeholder partnership of businesses, non-governmental organisations (NGOs), governments, and others convened by the World Resources Institute (WRI), and the World Business Council for Sustainable Development (WBCSD). The initiative has developed internationally accepted greenhouse gas accounting and reporting standards that have been broadly adopted by business worldwide.

Calculating a Carbon Footprint The process of calculating a carbon footprint entails translating business activity data into a carbon dioxide equivalent (CO2e) for 7 selected greenhouse gases, namely carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perflourocarbons (PFCs), sulphur hexafluoride (SF6) and nitrogen triflouride (NF3). To find where these GHG emissions occur in business involves building a GHG inventory from which to operate. This is where a carbon footprint can become complicated and may require the skill of a GHG professional in complex operations or business structures.

Planning a GHG Inventory Your GHG inventory requires a skeleton of business structures, facilities and emission sources from which your emissions data will be sourced. To define what will be measured, the GHG Protocol provides guidance to assist in determining both the organisational and operational boundaries of the carbon footprint. The organisational boundary refers to entities and facilities that will be included while the operational boundary defines which operations and sources of emissions will be included.

Organisational Boundary The GHG Protocol provides three options to define the organisational boundary. These options are as follows: Equity Share Under the equity share approach, a company accounts for GHG emissions from operations according to its share of equity in the operation.

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Financial Control The company has financial control over an operation if it has the ability to direct the financial and operating policies of an operation with a view to gaining economic benefits from its activities. Under this approach, the economic substance of the relationship between the company and the operation takes precedence over the legal ownership status. Operational Control Under the operational control approach, a company accounts for emissions from operations over which it has operational control. A company has operational control over an operation if it has authority to introduce and implement operating policies. The operational control approach is preferred as it provides the most complete GHG inventory. It also lends itself to performance tracking as managers can be held accountable for activities under their control and companies are also likely to have better access to operational data under their control. Most importantly, it has the advantage that a company takes ownership of the GHG emissions that it can directly influence. Once the boundary approach is decided upon, the entities and facilities included in the boundary are identified and form part of the GHG inventory.

Operational Boundary The operational boundary defines which operations and sources of emissions will be included in the carbon footprint. Examples of emission sources include motor vehicles, generators and air conditioning equipment. GHG emissions are categorised as direct and indirect and accordingly grouped into scopes for accounting and reporting purposes. Emissions are categorised as ‘direct’ when they are generated from activities or sources within the reporting company’s organisational boundary and which the company owns or controls. Under the GHG Protocol these are called Scope 1 emissions and are accounted for as such. These largely include fuel burned in company owned assets. ‘Indirect’ sources are those emissions related to the company’s activities, but that are emitted from sources owned or controlled by a third party company. These are categorised as either Scope 2 emissions for purchased electricity or as Scope 3 for other non-owned or controlled emissions e.g. rental cars, commercial airlines or paper use. Under the GHG protocol reporting of Scope 1 and Scope 2 emissions are mandatory. Reporting of Scope 3 emissions is voluntary but encouraged where the activities are material to the overall footprint of the organisation.

Calculating Emissions The next step involves sourcing business activity information for the relevant emission sources. Business activity data could be electricity consumption or fuel purchases. For each emission source one needs to determine what would be the most appropriate activity units required, e.g. litres of fuel , as well as the availability of such data. Estimations, assumptions and samples may need to be applied where data is incomplete or unavailable. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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PROFILE: REAL TIME ENERGY

REAL TIME ENERGY Real Time Energy (Pty) Ltd provides measurement, logging, calculating, verification and presentation of energy and weather data with focus on data patterns, GIS mapping, integrated solutions, coupling energy and weather data, using innovative data management and client orientated reporting systems. With our technical strength, we are able to provide independent energy management and consulting services for institutions and companies. Our vision is to create sustainable solutions essential to empower people to make informed decisions around their resource usage and management. We provide secure, reliable and cutting edge Monitoring, Measurement & Verification, Energy Audit tools and Project Development (or Audits) for: Technical and Financial Feasibility Studies Virtual Energy Trading Thermal Heating Systems PV Monitoring and PV system management â&#x20AC;&#x201C; In Partnership with Meteo Control CDM Measurement and Verification Carbon reporting and auditing SANS 50010 compliant project performance reporting. (The South African National Standards to the the measurement and verification (M&V) of energy savings and energy efficiency in South Africa). South African Revenue Service (SARS) 12i and 12l Tax rebate applications, Eskom IDM Measurement and Verification Application for funding for energy interventions, alternate or renewable energy projects We are able to provide these services for individual clients, Energy Services Organisations, Renewable and/or Energy Supply companies in the Industrial, Commercial and Household sector. Real Time Energy has staff, associates and contractors who collectively are registered measurement and verification specialists certified carbon reduction managers who are capable of writing detailed measurement and verification plans that are compliant with International and Local Standards such as the IPMVP (International Performance Measurement and Verification Protocol) and SANS 50010- 2010. RTE has case history in compiling UNFCCC approved methodologies and the long term M&V and performance reporting of CDM projects.

Postnet Suite 21, P/Bag X7005, Hillcrest, 3650 Tel: 031 767 7252 | Email: sales@rtenergy.co.za | Web: www.rtenergy.co.za

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The data collection process is often an overlooked step, however sourcing the most accurate, appropriate data is vital for the credibility of the report output. As they say, rubbish in, rubbish out. So rigorous quality checks on all data gathered will ensure good quality data is fed into the analysis. With business activity data for each emission source in hand, the data is converted into carbon dioxide equivalents using formulas and factors that are relevant to the data, organisation and geography concerned. Relevant, updated factors to apply to the emission calculations also need to be sourced. A review needs to be made on which factors are most relevant bearing in mind the activity data available to the analyst and the geography in which the emission sources occur. Factors are specific to emission source and are generally updated annually. The factor producing the most accurate emission value should be applied. In its simplest form, a calculation formula would look like this: Activity data × emissions factor = CO2e emissions Where activity data quantifies a business activity in units e.g. litres of fuel purchased, tonnes of paper used and the emissions factor converts activity data to emissions values e.g. Kg CO2e per litre fuel or Kg CO2e per tonne of paper used. However, in reality formulas become more complex where assumptions and estimations need to be applied to incomplete or unavailable data, or where certain emissions require additional factors to be applied. For example in air travel emissions additional factors to account for uplift and radiative forcing are applied. Due to the varying ability of GHG to trap heat in the atmosphere, each GHG has a ‘global warming potential’. Global warming potential (GWP) refers to a gas’s heat trapping potential relative to that of CO2. Using GWP factors, emissions from all 7 greenhouse gases are converted into a common metric of CO2e and reported as such for consistency and like for like comparisons.

Reporting information: GHG Protocol guiding principles (GHG Protocol Corporate Accounting and Reporting Standard Revised Edition) Accuracy Ensure that the quantification of GHG emissions is systematically neither over nor under actual emissions, as far as can be judged, and that uncertainties are reduced as far as practicable. Transparency Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the accounting and calculation methodologies and data sources used. Consistency Use consistent methodologies to allow for meaningful comparisons of emissions over time. Transparently document any changes to the data, inventory boundary, methods, or any other relevant factors in the time series. Completeness Account for and report on all GHG emission sources and activities within the chosen inventory boundary. Disclose and justify any specific exclusions. Relevance Ensure the GHG inventory appropriately reflects the GHG emissions of the company and serves the decision-making needs of users both internal and external to the company.

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It is important that all formulas, factors, estimations and assumptions are clearly documented in the GHG inventory for transparency and consistency in reporting.

Selecting Base Year and Setting Targets Managing emissions requires a commitment to reduce absolute emissions or intensity emissions (e.g. emissions per unit of activity). To set this target, one needs to measure against a yardstick – this being the base year emissions. Therefore, a base year needs to be selected from which future years’ performance will be measured against. It is important that the base year emissions are based on reliable emissions data. Once you have selected a base year, set short and long term targets. Targets can be absolute (e.g. reduce emissions by 5% year on year from base year) or rate based (e.g. reduce emissions per employee headcount or unit of production). Absolute targets are preferred as they result in a real emissions reduction, whereas emissions may increase in the face of a rate based decrease in emissions. A strategy and work plan should provide a framework from which to initiate and run reduction projects to meet these targets. This is an on-going process which requires constant measurement and review.

Reporting Businesses may want to communicate their performance to stakeholders such as investors, customers, employees or the business community. In reporting information, it is valuable to follow the guiding principles of The GHG Protocol (see insert). Emissions need to be reported for all seven greenhouse gases separately in metric tonnes of CO2e. Emissions must be categorised and reported by scope, clearly stating the scope totals. The boundaries of the inventory must be described together with a description of the company. All emissions information, including methodologies, calculations, assumptions, estimations and exclusions must be disclosed. The base year must be documented with a view of performance over time. For credibility of reported information it is wise (and in some cases required) to have your footprint assessed by a 3rd party GHG professional, especially when publically reporting.

In Conclusion Business operates within the context of an environment. Best practice principles, standards and guidelines provide methodologies, processes and guidelines which if followed rigorously will provide a deep understanding of an organisation’s internal and external impacts. For responsible and accountable governance it is imperative to understand and manage the risks and opportunities that emerge from these environmental impacts.

Bibliography Initiative, G. P. (n.d.). GHG Protocol Corporate Accounting and Reporting Standard Revised Edition.

References GHG Protocol Corporate Accounting and Reporting Standard Revised Edition. GHG Protocol Initiative. Working 9 to 5 on Climate Change: An Office Guide. Samantha Putt del Pino and Pankaj Bhatia, World Resources Institute. 2002.

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PROFILE: ESCOTEK

OPERATIONAL MARKET SECTORS ESCOTEK GROUP (PTY) LTD was established in 2003 to procure, implement, commission and maintain Residential/Commercial/Industrial Demand Side Management (DSM) Systems throughout South Africa.

1. Residential Load Management System (RLMS) & Smart Metering This market sector includes performing a feasibility study of the municipal area which will determine the number of Hot Water Cylinders (HWC), the average size (kW) of these HWCâ&#x20AC;&#x2122;s, the shiftable load and the average monetary saving for the Municipality. Escotek SmartRipple receiver We have developed a Ripple receiver that is compatible with any existing Ripple receiver available today. This Ripple receiver can be upgraded to communicate back to a control center via GPRS or GSM. The system can also be migrated to an Automatic Meter Reading System (AMR)

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PROFILE: ESCOTEK

2. Solar Water Heaters and Heat Pumps Due to the previous ESCOTEK experience with the implementation of large Residential installation programs are we equipped for these type of projects. ESCOTEK was the implementation agent for the low pressure solar water heater roll-out in Ekurhuleni Metro. Our expertise are with high and low pressure system installations and heat pump installations

3. Internal and Street Light supply and maintenance ESCOTEK, together with our technology partner, Electroweb Electronics, are now launching a new range of luminaries making use of high quality LED lamps (Internal and external). This also includes the replacement of existing street luminaries with either CFL or LED fittings. Funding mechanisms for these projects are available.

4. PV Panel supply for electrification purposes. ESCOTEK are working with IDT on projects consisting of the supply, installation and maintenance of PV Solar Panels with inverters and batteries installed in homes with no access to an Electrical grid.

Escotek (Pty) Ltd. Reg. No: 200301065907 Vat Reg. No: 4580206573 430 Muskejaat Street, Waterkloof Ridge Pretoria, 0181, Gauteng, South Africa, Post Net Suite 21 P/Bag X25723, Monument Park, Pretoria, 0105, Gauteng, South Africa 430 Muskejaat Street, Waterkloof Ridge, Pretoria, 0181, Gauteng, South Africa Telephone: +27 12-347 7034 | Facsimile: +27 12-347 5352 Web page: escotek.co.za | Email: marketing@escotek.co.za

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CHAPTER 9: ENERGY EFFICIENCY  THE CASE FOR INCORPORATING THERMAL MASS IN SUSTAINABLE HOUSE CONSTRUCTION

By Peter Kidger Corobrik

ENERGY EFFICIENCY  THE CASE FOR INCORPORATING THERMAL MASS IN SUSTAINABLE HOUSE CONSTRUCTION A review of research shows that the R-value that lightweight walling envelopes rely on for energy efficiency is not the all-important thermal performance property and that ‘optimal’ energy efficiency in South Africa’s six major climatic zones is advanced through the use of thermal mass in the external walling envelope and internal partition walls. Clay brick construction is able to provide this superior energy efficiency through the combination of thermal mass and the thermal capacity clay brick walls provide, and resistance as provided by the air in the cavity this supplemented as may be necessary with insulation materials with a somewhat lower R-value than required for lightweight walling. Confirming the case for the inclusion of thermal mass in walling envelopes for defining more energy efficient houses in South Africa is the correlation in the findings of a plethora of research both in Australia and South Africa. This research comprised empirical measurement of building modules under ‘real world’ conditions, parametric and thermal modelling using ASHRAE and Agrement SA compliant software plus Lifecycle Assessment (LCA) to determine how building materials and building systems compare in providing thermal comfort and lowering operational energy consumption of houses. The correlation in the research findings consistently reaffirms clay brick construction outperforming comparable lightweight. Fundamental to this outcome is the contribution of thermal mass, how heat diffuses through mass, how it is slowly absorbed, stored and released to moderate internal temperatures for longer.

50 W/m2 passes through external leaf. Remainder absorbed.

5-6 W/m2 passes through to inside of house.

Internal brick leaf

Cavity

Re he main at refl der o ec f ted

700 to 900 W/m2 impinges on the external wall.

External brick leaf

200 W/m2 passes into external leaf.

Thermal Mass Reduces the Quantum of Heat Reaching the Inside Figure 1 left, as referenced from research reported on by Think Brick Australia – www.thinkbrick. com.au 3, demonstrates the extent thermal mass reduces the heat passing through the walling envelope during long hot summers. Figure 1 Heat flux through west walls in Summer.

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As depicted in Figure 1 page 3 the amount of heat energy on the surface of the west wall in summer is 700-900 W/m² which falls to about 200 W/m² entering the external wall. The attenuation of heat reduces to just 50 W/m² passing across the cavity with finally only 5-6 W/m² of heat energy on average passing into the internal space. The amount of heat energy penetrating the west wall was thus minuscule.

Thermal Mass Extends the Time of Heat Transfer to the Inside While reducing the quantum of heat, the thermal mass also provides the requisite ‘thermal lag’ that is of considerable value in the summer months. Table 1 below represents information from research into the influence of the Wall R-value on Australian Housing depicting the comparison of Australian walling systems with different R-values and the time heat takes to pass through the different wall types. Wall Type

Thermal Transmittance (U)

Lag (Hours)

Thermal Resistance (R)

Clay Brick Cavity Wall (Un-insulated)

1.22

5.8

0.82

Weatherboard Wall (Un-insulated)

1.82

0.8

0.55

Clay Brick Cavity Wall (Insulated)

0.38

7.5

2.63

Weatherboard Wall (Insulated)

0.38

1.3

2.63

Table 1 - Time comparison of heat movement through walling envelopes Thermal mass is the essential differentiator between the performances of the two walling options both insulated and un-insulated. The thermal mass rendered both clay brick walling options approximately 5.8 to 7.2 times more effective in slowing the transfer of heat through the wall than the lightweight walling alternates. Insulating the lightweight wall increased the thermal lag a relatively insignificant 0.5 of one hour to 1.3 hours. Consequent to a lag of between 5.8 and 7.5 hours for the brick alternates heat only impacts on the inside after the hottest part of the day when external temperatures would have started to drop and heat flows begin to reverse. Consequent to the insulated lightweight modules having little thermal lag, the lightweight walled modules exhibited the greater variations in internal temperature with internal daily temperature swings of more than twice that of insulated cavity brick during hot conditions.

Thermal Mass Helps Maintain Comfort Conditions for Longer Depicting the comparable energy consumed to achieve thermal comfort conditions of actual buildings in real world conditions, Table 2 page 5 from “A Study of the Thermal Performance of Australian Housing” – Priority Research Centre for Energy, University of Newcastle, Australia2, shows that the Insulated Lightweight (Ins-LW) module (R1.69) with 14% higher R-value walls used 117%

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CHAPTER 9: ENERGY EFFICIENCY  THE CASE FOR INCORPORATING THERMAL MASS IN SUSTAINABLE HOUSE CONSTRUCTION

Wall Type

R-Value (m2K/W)

Heating Energy (MJ/ m2)

Cooling Energy (MJ/ m2)

Total Energy (MJ/m2)

Normalised to Ins. CB

Ins-CB

1.48

28.3

0.3

28.6

1.0

0.62

56.3

0.1

56.2

2.0

Ins-BV

1.72

32.5

10.4

42.9

1.5

Ins-LW

1.69

48.4

13.7

62.1

2.2

Table 2: Comparison of Energy Usage – Controlled Interior

more energy to maintain a comfortable living environment within 18 and 24°C range than the Insulated Brick (Ins-CB) (R1.48) module. Both studys1,2 demonstrated that the greater time in the comfort zone and resultantly less heating and cooling energy consumed by both the Clay Brick cavity (CB) and Insulated Clay Brick (Ins-CB) modules relative to both Insulated Lightweight (Ins-LW) and Insulated Brick Veneer (InsBV) modules (R1.72) was due to the internal thermal mass “smoothing” the internal temperature fluctuations.

This Research Highlights that in Climates Akin to South Africa: • • •

The R-value is not the sole predictor of thermal performance There is no correlation between the R-value of a wall and energy usage. The emphasis on R-value as the principal parameter influencing the thermal performance of walling systems is flawed.

The capacity of clay brick walls to absorb a large quantity of heat energy for a small rise in temperature combined with the thermal lag effectively increases the R-value performance over a complete day night cycle. This resulted in greater time spent in the comfort zone and lowest heating and cooling energy usage. The sum total of the findings of empirical research of the thermal performance of building modules comprising different wall construction types at the Priority Research Centre for Energy, University of Newcastle, Australia2 & 3 were unambiguous: • The lightweight [walled] building was the worst performing in all seasons. • Brick veneer performs better that lightweight. • The insulated cavity brick building performs the best. • Thermal mass in floors alone, while being essential, is not sufficient to reduce extremes in temperature.

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Thermal Mass Improves the Dynamic Thermal Response “The concept for a potential metric to characterise the dynamic thermal performance of walls”4, published in the Energy and Building Journal (August 2012), found that the data base of temperature measurements made on the test modules over the eight years showed a consistent pattern for the dynamic responses of walls [T-values] comprising different construction types. The heavy walling systems exhibit small T-values and a relatively small variation in internal surface temperature. In contrast the insulated lightweight walling systems exhibit much larger T-values where the larger temperature changes on the internal surface almost linearly follow the external temperature variations. This was found to be consistent with the behaviour of test modules under real weather conditions in moderate climatic zones, where the modules with walls having lower thermal resistance but higher thermal mass performed better than their lightweight counter parts. The trends of dynamic temperature response for the heavy and lightweight walling systems corresponded and were found to be consistent for both the summer and winter periods.

The Thermal Mass of Internal Partition Walls Add to Thermal Efficiency The paper4 shows that when applying the ‘T-value’ concept to comparisons of the thermal performance of houses with the same R-value external walls, the cavity brick houses with brick internal partition walls used the least energy of all and had the lowest T-value. Further endorsement of the added value thermal mass [thermal capacity] provides to walling envelopes and internal partition walls for moderating the indoor temperature within the required comfort range is found and explained in the document “Energy Efficiency and the Environment - The case for Clay Brick – Edition 4” 3 (www.thinkbrick.com.au) where the inclusion of clay brick internal partition walls led to energy consumption reductions in all four construction types. For the 6mx6m modules comprising slab-on-ground, significant north wall glazing, the following reductions in energy consumption were shown when internal bricks walls where added: • Insulated cavity brick minus 6% • Insulated ‘reverse’ brick veneer minus 8% • Insulated lightweight minus 20% The energy reduction resultant from the addition of internal brick partition walls was most significant in the case of the insulated lightweight module. The effect of this additional thermal mass was less prominent in the case of insulated cavity brick and ‘reverse’ brick veneer because they were already benefitting from the lower energy demand that the thermal mass provided.

A Higher CR Product with Greater Mass Equates with Lowest Amplitude Ratios Comparable to the T-value research findings are those of the CR Product study5. In this South African research a higher CR Product [combination of thermal capacity ‘C’ and resistance ‘R’ of a wall] consistently equated to smaller amplitude ratios [lower fluctuation of temperature indoors in response to external temperature movement]. The net benefit of reduced indoor temperature fluctuations was more time within the required comfort range.

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Figure 2 Daily PMV amplitude (max PMV - min PMV, during a days out-of-bed hours averaged over a year), Johannesburg The CR Product research found that placing insulation between brick skins rendered the ‘active’ thermal capacity of the internal leaf seven times more effective than the outside leaf, providing the wall with the necessary propensity to self-regulate and better maintain the internal environment within the required comfort range5. Dr Alec Johannsen of Alec Johannsen Consulting Engineering on reviewing the WSP Energy Africa, CR Product study commented: “There is an additional advantage of heavier walls (not discussed in the CR Product report as it is outside its scope), namely a reduction of the building peak cooling and heating loads. This is the combined result of (a) a reduction in the peak heat gain of the wall itself (compared to a light weight wall with the same R-value), and (b) a time lag of the peak heat flux on the inside of the wall in relation to the heat flux on the outside, which makes the heat load from the wall out of phase with the other heat loads, resulting in a lower combined peak total heat load. The result is a smaller and less expensive cooling and heating plant and a lower electrical demand. The above would indicate that greater ‘Cs’ (thermal capacity) should be favoured over ‘Rs’ (resistance) when selecting a required CR Product.” As depicted in Figure 2 above extracted from the WSP Green by Design 130 m² house study7, the houses with double skin clay brick walls supplemented with insulation i.e. walls with higher CR Product values, afforded comparatively lower PMV amplitudes and superior thermal comfort to those houses with highly insulated walls (in compliance with SANS 204) but no or little thermal mass and/or single skin masonry walls with lower thermal mass and resistance. This finding for the Johannesburg climatic zone was mirrored in all other major climatic zones of South Africa.

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In climates like South Africa, characterised by long hot summers and large diurnal swings – particularly in the interior of the country and at elevated locations, and which are pronounced in-between seasons i.e. in spring and autumn, the importance of the self regulating attribute of thermal mass becomes accentuated in the energy efficiency equation.

Figure 3 Total Energy Consumption - October 2007

Highlighting the implications of no thermal mass and the inability of lightweight walls to selfregulate [in spite of a high R-value] on hotter days are the comparative findings of the Australian Housing study3. As shown in Figure 3 above the insulated lightweight (R1.51) with over three times the R-value of cavity brick (R0.44) used over three times the energy to maintain the temperature in the comfort zone during October 2007. All studies consistently demonstrate the comparably poorer thermal performance of lightweight walling as associated with alternate lightweight building systems such as LSFB during our long summer months and their propensity to overheat, creating ‘hotbox’ conditions internally and necessitating a greater use of cooling energy.2, 3, 7, 8 , 9 As a way of explanation, the thermal mass and the thermal capacity it provides helps bricks perform like thermal batteries, slowly absorbing and storing heat during the day over a 6 to 8 hour period, and then releasing that heat when it is needed most.1, 2 This time lag for the sun’s heat to pass from the outside to the inside, referenced as ‘thermal lag’, is what helps moderate internal temperature conditions for longer during the hottest periods of summer days. In winter the thermal mass of the inner skin brickwork and brick partition walls that have slowly absorbed radiant and ambient heat during the day, release that stored heat to the cold evening air helping keep internal thermal conditions comfortable for longer.

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The correlation in the findings of all the studies1-10 is consistent in confirming that conventional clay brick construction - double skin with appropriate levels of insulation between the brick skins for the climatic zone - affords superior thermal comfort with lower heating and cooling energy usage than comparable lightweight walling envelopes with the same or higher steady state R-values [resistance]. In the South African modelling studies of 130 m² 7 and 40 m² 9 house types using DesignBuilder EnergyPlus and the 132 m² CSIR standard house8 using Visual DOE software, the SANS 204 compliant clay brick house generally afforded greater thermal comfort and lower heating and cooling energy consumption compared to SANS 517 and SANS 204 DTS lightweight walled alternates. In the 40 m² study of a low cost house 9 the SANS 204 LSF house - see Figure 4 below - incurred higher annual energy costs compared to the clay brick houses in all major climatic zones.

Figure 4 SUSTAINABLE ENERGY RESOURCE HANDBOOK

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This was mirrored in the findings of the thermal modelling done as part of the full LCA by Energetics. Per Table 3 below of Verdant and Sirocco houses, as compiled from data in the Energetics full LCA [modelled using ASHRAE accredited DesignBuilder software], the comparative thermal efficiency of conventional double skin clay brick cavity wall construction and the same with insulation is endorsed. On average the insulated timber frame used the most heating and cooling energy resulting in 7.01% more HVAC GHG emissions than un-insulated cavity brick and 14.28% more than insulated double brick (R1.3) over a 50 year life cycle. As reflected in Table 3 increasing the R-value of brick walls enhances the thermal efficiency in those climates that have colder winter periods. In the hotter and milder climates such as Brisbane (climate similar to the KZN Coastal areas), insulation applied in the cavity of a brick wall offered no energy savings over cavity brick and may be considered an unnecessary cost. This is consistent with the finding of WSP Green by Designs research in respect of 130 m² and 40 m² house types in South Africa’s six major climatic zones.7&9 Table 3 THERMAL MODELLING OF VERDANT AND SIROCCO HOUSE TYPES COMBINED HVAC GREEN HOUSE GAS (kg CO₂-e) EMISSIONS OVER 50 YEARS Tabulated from Energetics Full Life Cycle Assessment Location

Orientation

Uninsulated Double Brick

Insulated Double Brick (R1.3)

Insulated Timber Frame

Insulated Timber more/ (less) GHG than Double Brick

Insulated Timber more/ (less) GHG than Double Brick Insulated R1.3

Newcastle Climatic Zone

East

106348

100013

119603

12,46%

19,59%

North

110384

103912

123781

12,14%

19,12%

South

102145

98680

115498

13,07%

17,04% 16,30%

Melbourne Climatic Zone

Brisbane Climatic Zone

West

114213

107280

124771

9,24%

East

142113

130159

141019

-0,77%

8,34%

North

151120

130098

152682

1,03%

17,36%

South

138827

119113

137919

-0,65%

15,79%

West

152338

129755

148937

-2,23%

14,78%

East

131066

130346

146349

11,66%

12,28%

North

129939

130616

147400

13,44%

12,85%

South

124027

125515

138235

11,46%

10,13%

West

134357

133602

148449

10,49%

11,11%

Combined Total Average GHG

128073

119924

137054

7,01%

14,28%

Average GHG Emissions

64037

59962

68527

7,01%

14,28%

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Thermal Mass and Financial Payback for Insulation Applied Studies specific to South Africa7-9 go further in confirming that clay brick construction not only provides superior thermal comfort and lower energy usage but does this more cost effectively [with best payback for the insulation applied] than alternate building technologies such as Light Steel Frame Building, SANS 517 and SANS 204 compliant, over a 50 year lifecycle. This superior performance provided by clay brick in house construction is also reflected in the 10 Show House development10 in Perth for developers to demonstrate the environmental compliance of their houses. The double skin clay brick house of Jade Projects, the one and only show house in brick, was awarded an “8 Star” Energy Rating per the Building Energy Rating System [BERS] of Australia. The other nine Show Houses, of which seven comprised steel frame with different insulated lightweight walling composites, some also being designed on passive solar design principles, achieved energy ratings of 5 or 6 Stars, the difference in rating essentially defining the added value of well-placed thermal mass and insulation in the building envelope. The “8 Star” clay brick house has since been superseded by a “9 Star” house11 pictured below. Using a ‘Carbon Neutral Design’ this “9 Star” house shown above achieved a 119% reduction in energy making it beyond carbon neutral. The consistently superior energy ratings achieved by the clay brick houses highlight how combining Solar Passive Design principles [orientation, shading, insulation and ventilation for the climatology of the location] with the use of correctly placed thermal mass in the building envelope, the latter enhancing the propensity to take best advantage of the suns energy, opens the way for optimal thermal efficiencies to be achieved cost effectively. The application of SANS 204 Deemed to Satisfy Standards for masonry construction [currently voluntary] is a step in the right direction towards greater energy efficiency of brick constructed residential buildings throughout South Africa. Rational design incorporating thermal modelling however presents the opportunity to best place insulation of different R-values in the building envelope to assure greatest energy efficiency at the lowest cost.

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The Value of Thermal Mass in the “Total” Energy Equation Moving to total energy consumed [embodied plus operational energy] and the total greenhouse gasses [GHGes] emitted for different construction types over a hypothetical 50 year lifecycle, the full Life Cycle Assessment (LCA)6 by Energetics in Australia puts the benefits of the superior thermal efficiency of clay brick construction in perspective. The LCA found that the savings in operational GHG emissions provided by the insulated brick alternates offset the higher embodied energy of the brick houses to afford lower total [embodied plus operational] GHG emissions than the Timber Frame insulated weatherboard house over 50 years. The LCA notes the timber frame weatherboard house as having the lowest embodied energy and that carbon sequestration, that was still being studied and debated, was not taken into account (as per Kyoto accounting rules) in the LCA. This finding is mirrored in South African desktop research of a 40 m² house9 see Figure 5 below where the clay brick house afforded a lower total energy outcome over a 40 year lifecycle than the SANS 204 compliant LSF alternate. Figure 5

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CHAPTER 9: ENERGY EFFICIENCY ď&#x161;ť THE CASE FOR INCORPORATING THERMAL MASS IN SUSTAINABLE HOUSE CONSTRUCTION

Sustainability with Energy Efficiency While the full Life Cycle Assessment of Energetics established the heating and cooling energy benefits and the low lifecycle impacts clay brick construction provides, it also highlighted that a comprehensive approach to sustainability requires that we continue to build houses able to endure, with little maintenance and definitely no materials replacement, way beyond a 100 year lifecycle. Clay brick is the one man made walling material that has proven to be more than up to the task with the thermal efficiency benefits enduring way beyond the limited lifecycle of less durable alternate building lightweight walling. In South Africa masonry construction is the widest used construction method with research showing clay brick construction being price competitive and/or more cost effective than alternate lightweight building [LSFB] as built and with lower life cycle costs. The thermal efficiency case for including thermal mass in external walling envelopes and internal partition walls is clear as is supplementing clay brick cavity walls with insulation appropriate for the climatic zone for assuring optimal energy efficiency cost effectively. Add such performance to the basket of other sustainability attributes that clay brick in construction provides such the low maintenance qualities of face brick that mitigate future carbon debt associated with a lifetime of maintenance, the longevity and the robustness of brick that mitigates future carbon debt associated with refurbishment and replacement of less durable materials and that clay bricks are reusable as masonry or pavers and/or recyclable as aggregate for concrete manufacture and high thermal mass clay brick finds itself in a unique space for defining an energy efficient future with low lifetime environmental impacts. June 2013 Research Review by Peter Kidger For more information: intmktg@corobrik.co.za

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Reference sources: 1. “A Study of the Influence of the Wall R-value on the Thermal Characteristics of Australian Housing” – University of Newcastle, Australia (Prof. A. Page, Prof B. Moghtaderi, Dr H Hugo, S Hands 2009) 2. “A Study of the Thermal Performance of Australian Housing” – Priority Research Centre for Energy, University of Newcastle, Australia (Prof. A. Page, Prof. B. Moghtaderi, D. Alterman, S. Hands) 3. Energy Efficiency and the Environment - The case for Clay Brick – Edition 4, www.thinkbrick.com.au 4. “The concept for a potential metric [T-value] to characterise the dynamic thermal performance of walls” - Priority Research Centre for Energy, The University of Newcastle, Australia as published in the Energy and Building Journal August 2012. 5. C.R. Product Research – “A Novel Algorithm for the Specification of Thermal Capacity and Resistance in External Walling for the South African Energy Efficient Building Standards - WSP Energy Africa – (Prof. D Holm and H Harris April 2010) 6. Full Life Cycle Assessment by Energetics (Pty) Ltd, Australia (2010) for Think Brick Australia http//www.thinkbrick.com.au 7. 130 m² Standard House Energy Modelling Project – WSP Green by Design (2010) using DesignBuilder Energy Plus software 8. Thermal Modelling of a 132 m² CSIR house by Structatherm Projects (H. Harris 2009) using Visual DOE software 9. 40 m² Low Cost House Energy Modelling Project – WSP Green by Design (2009/2010) using DesignBuilder Energy Plus software 10. LandCorp Western Australia 10 Show House development at Verdant Circuit Seville Grove incorporating Jade Projects 8 Star Perth House (www.righthomes.com.au Jade 808) 11. www.righthomes.com.au – Jade 909 on display at “The Vale”, Wesley Way Avely, Perth Western Australia

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CHAPTER 10: THERMAL RESISTANCE OF HOT WATER PIPES AND INSULATION AS IT APPLIES TO SANS 10400 XA

By Dewald Burzynski Technical Sales and Marketing Manager Serbco WP

THERMAL RESISTANCE OF HOT WATER PIPES AND INSULATION AS IT APPLIES TO SANS 10400 XA Energy efficiency is on everyone’s lips but how much energy is lost through a domestic hot water system? How do we prevent this and how do we make it cost efficient too? The obvious answer is by insulating the distribution and storage system. But how do we do this effectively so that we do not waste resources and money that may not be recouped? There has been much focus on efficient generation of hot water but very little on the efficiency of materials and system design. Let us have a look at some of the design considerations when complying with the SANS 10400 XA standard. Thermal resistance (R) is what has been used as a simple measurement to relate the efficiency of a material to prevent heat loss. Thermal resistance (R) and thermal transmittance (U) are numerically reciprocal, which means that if the thermal resistance increases the Heat Loss decreases, otherwise expressed as R=1/U . Since the inception of the SANS 10400 XA standard there have been many diverging and confusing views on how to calculate the Thermal Resistance (R – value) for pipes. The SANS 10400 XA document is not clear on this specific method. In the search for correct values many engineers and architects alike have been using the R=l/k equation. The simple equation, R=l/k where R = thermal resistance, k = thermal conductivity and l = Thickness of the material, rings absolutely true in the calculations for flat surfaces, such as roof panels, windows or walls. Using this equation to calculate the R – value for cylindrical objects is erroneous and has only added to the confusion that has been caused with the implementation of the SANS 10400 standards. When using this equation very low R – values are calculated and subsequently oversize insulation has been used. On small residential projects this has not been a major problem and has only increased the efficiency of the hot water systems. On large scale projects where central hot water generation and storage is used, this “miscalculation” can increase the costs to above that which regulation or rational design can justify.

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For cylindrical objects, the heat loss is not the simple straight-through heat flow found with the flat surface material, but rather a radial heat loss. This is due to the surface areas of the inner and outer radiuses being substantively different. For cylindrical surfaces or insulation, the following equation should be used to calculate the “R” value:

( ) De Di

where De = External diameter, Di = Internal diameter, k =

2πkl Thermal conductivity, l = length. In the instance of the SANS 10400 XA one needs a unit value to get to the correct insulation thickness and can therefore express l as 1 and leave it out of the equation for simplicity sake. The correct radial thermal resistance

equation to use would subsequently be:

( ) De Di

2πkl The differences in results are worlds apart and cannot be compared. What one does need to remember is that, as the diameter of the pipe increases, the difference between the surface areas decrease. This would cause the R – value to decrease with the same thickness of insulation, as demonstrated when using the correct formula above. Using the 1/k formula would incorrectly show a constant value of R for increasing diameters. The table below gives you an indication of the differences in R - values when using the two differing equations.

Table 1

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A serious consideration that an engineer or architect needs to take into account is the material that the pipe is manufactured from. The thermal conductivity, or k, is hugely different between copper, polypropylene or steel. Typically, copper has a thermal conductivity of 401 W/ mK compared to carbon steel at 43 W/mK and polypropylene at 0.22 W/mK. When using copper as material for hot water transfer, the resistance of the copper pipe to heat loss is so low, that it is negligible when calculating R – values. When using polymer pipes, the R – value reaches a factor that would be useful in the conservation of heat through the system. The table below gives an indication to the variance in R – values for pipe alone.

Table 2

The thermal resistance offered by polymer pipes, as can be seen above, is no longer negligible. This R – value can now be added to the R – value of the insulation to meet and in most cases exceed the R – value of 1 required by the SANS 10400 XA. Using the values from Table 1 and Table 2, the combined R – value is calculated as follows.

R_Total=R_Pipe+R_Insulation=0.21+2.20=2.41 As indicated above, with a very thin insulation one can very easily exceed the regulatory requirement for an R – value of 1. This does not however guarantee low heat loss. This is where the inherent properties of polymer pipes are particularly useful. The heat loss is related to the surface temperature of the pipe compared to the ambient temperature or ∆T. I won’t elaborate on this subject too much except to say that the lower the temperature on the surface of the pipe, the less the heat loss will be. Consequently, when choosing a piping system, one has to take these points into consideration. The R – value is only a guide as to the thermal resistance. If one wants to have an efficient system, more than just the R – value needs to be taken into account. Polymer pipes such as polypropylene random co-polymer (PPr), C-PVC (chlorinated polyvinyl chloride), composite or multilayer and PEX (cross-linked polyethylene) offer the best source of heat retention and lose the least heat in the chased (brickwork) sections of the pipe. These systems need to be chosen with care as to fulfil the technical requirements of the installation. This can have a positive effect on the overall usage of hot water, as the hot water gets to the user a lot quicker and therefore use less energy generating hot water.

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The next very important choice is the actual insulation over the pipe. There are several considerations when choosing the correct type of insulation. There are many different materials that range from mineral wool to expanded polyurethane tubing. Of high importance is the fit over the pipe. In general the insulation that is available is Imperial/copper sizes. When installing insulation over polymer pipes (Generally ISO/PVC sizes), Imperial sizes cause gaps between the pipe and the insulation, which convect the heat and cause further heat losses. Insulation needs to be thoroughly sealed. Some insulation use zip-type locks to secure the insulation around the pipe. These have shown to be unreliable and allow air to circulate. An expanded polyurethane foam tube type insulation that matches the outside diameter of the pipe that has been selected, works the best in sealing out convective air and staying secure over the pipe for its lifecycle. In conclusion, using the correct R â&#x20AC;&#x201C; value equations will save costs. Using an advanced piping solution in combination with the correct insulation will increase the efficiency of the system and save maintenance and energy costs. As professionals we need to take heed of new technologies and the correct application thereof. Local research and transferring international knowledge and making it relevant to South African conditions are essential to lowering energy dependency and the impact on the environment. Dewald Burzynski Serbco WP â&#x20AC;&#x201C; PPr piping solutions www.serbco-wp.co.za

Bibliography: Anon., n.d. Engineeringtoolbox. [Online] Available at: http://www.engineeringtoolbox.com/thermal-conductivity-d_429.html [Accessed 22 July 2013]. Anon., n.d. Wikipedia. [Online] Available at: http://en.wikipedia.org/wiki/Pipe_insulation [Accessed 22 July 2013]. Anon., n.d. Wikipedia. [Online] Available at: ww.en.wikipedia.org/wiki/Nominal_Pipe_Size [Accessed 22 July 2013]. Anon., n.d. Wikipedia. [Online] Available at: www.em.wikipedia.org/wiki/Thermal_conduction [Accessed 22 July 2013]. Ghajar, C. a., n.d. Heat and Mass Transfer. s.l.:s.n. Yunis A. Cengel, A. J. G., 2010. Heat and Mass Transfer - Fundamentals and Application (Fourth Edition in SI units). Fourth edition ed. s.l.:McGraw-Hill Higher Education.

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CHAPTER 11: CASE STUDIES  SOLAR WATER HEATING

by Chris Elliott Commercial/Industrial Energy Solutions Selected Energy

CASE STUDIES  SOLAR WATER HEATING Solar water heating is making a powerful name for itself in the renewable energy field. Although this method of heating has been around for years, the approach to solar water heating evolved from traditional to integrated, highly innovative solutions. The driving force behind these innovations is a growing need for solutions that increase energy efficiency, reduce energy consumption and carbon emissions.

The Solar Water Heating Industry Over the past 10 years the solar water heating industry has changed dramatically. There have been numerous new suppliers, developments and products emerging into the field. The amended National Building Regulations and Building Standards Act and the increasing electricity tariffs have forced many companies to rethink their approach and look at more innovative solar water heating solutions. The amended regulations stipulate that all new commercial and residential buildings will have to receive at least 50% of their hot water requirements from renewable energy sources such as solar water heating. The regulations also stipulate that buildings should be designed with the region’s climate in mind to prevent the use of excess energy when heating or cooling the building. These new regulations come with a number of challenges for the consumer, the focus is no longer solely on the layout and functionality of a house or building, it has shifted towards green and energy efficient design. These regulations play only a small part in the move towards renewable energy. The main reason for the move towards renewable energy would have to be the increasing electricity tariffs. The increased electricity tariffs have and will continue to have a large impact on all sectors of industry in South Africa. The price increases will see an increase in industry sectors’ operating costs. Many sectors are turning to alternative energy to decrease operating costs. It is now up to seasoned solar water heating professionals to take this growing need and design innovative solutions. Selected Energy has over 30 years of experience in the solar water heating industry. The commercial divisions’ experience dates back to the 1980s where the team installed 550 Solahart units on hospitals in Lesotho, more than 6 000 Solahart units on the Orapa and Jwaneng diamond mines in Botswana. The sheer volume involved in these projects allowed us to gain invaluable experience. Since those early days Selected Energy has been developing ever more sophisticated solutions with particular focus on the hospitality, mining and large industrial industries. Commercially Selected Energy aims to design solutions based on client specific requirements, conditions and SUSTAINABLE ENERGY RESOURCE HANDBOOK

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wanted outcomes. A key innovative approach to hot water supply starts with understanding the customer’s need and using the available energy resources at your disposal to gain the maximum savings and environmental benefits.

Industries Turning to Solar Water Heating: The Mining Sector Selected Energy has had the opportunity to work on various solar water heating solutions for several mines. Although reducing energy costs is an objective, it is not the main focus. Many mines are attempting to decrease their carbon footprint and the effect they have on the environment and have turned to solar water heating solutions to do so. BHP WOLWEKRANS - Coal Mine Changing Houses The Need: Selected Energy was approached by BHP Wolwekrans for a solar water heating solution. The mine needed to reduce the amount energy being consumed in their five changing houses. The Solution: To meet this need Selected Energy installed a hybrid solar water heating solution. The solar solution was based on a number of calculations, including projected electricity consumption patterns at the mine’s five changing houses. The real challenge was integrating their solar thermal solution with an existing water heating infrastructure. The solution called for the use of a combination of 200 flat plate collectors, heat pumps and a heat store energy storage system. The Result: The solution provided 5 800 litres of hot water per shift, servicing 90 individuals at five changing houses. The solution also provided 1000 litres of hot water for the mine’s laundry requirements. In implementing this solution Selected Energy not only created considerable electricity savings but also managed to reduce the changing houses carbon footprint and impact on the environment. The Hospitality Industry The hospitality sector unlike the mining sector is more focused on saving costs and reducing their energy consumption. With an estimated 40% of hotels expenditure linked to heating and cooling, hotels now turn to solar water heating solutions to significantly reduce these costs Sun City- Vacation Club The Need: The Sun City Vacation Club needed to reduce the expense as a result of the damage and unit unavailability caused by burst in-roof geysers. Secondly there was a need to reduce the cost and carbon emissions associated with delivering 44000 litres of water at 55°C. And finally, the solution needed to be aesthetically pleasing. The maturity of the Vacation Club meant that the electric water geysers in the units were starting to fail. The major concern, apart from the replacement cost, was the water damage to the units and the lost revenue resulting from the unavailability of the units. The energy consumed by

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their current 148 x 4 kW elements had a significant energy cost implication and placed constraint on the available power supply. The Solution: Selected Energy designed a simple solution that is a perfect replica of the standard domestic retrofit solution. Each electric geyser was disconnected and replaced with a roof mounted solar water heater. 148 Solahart 302J units, with 296 collector panels for a total of 592m2 collector area were installed. To meet aesthetic demands each tank was also clad in Colorbond® that matches the colour of the building. The Result: The net result is that the Vacation Club can make use of the abundant solar radiation and heat 44 000 litres of water to 55°C. In addition in the event of a burst tank the water would not ruin the unit but instead run harmlessly down the gutter. This solution not only resulted in energy savings for the resort but also reduced it’s CO2 emissions by 425 tons per year. The resort is now more sustainable with a significantly smaller carbon footprint. The Protea Manor Hotel The Need: The Boulevard Group approached Selected Energy for a solar water heating solution. The group wanted to reduce the hotel’s carbon footprint through more renewable energy sources while still providing guests with hot water on demand. Hotels are subject to high hot water demand during peak hours. It was therefore important that a sufficient volume of hot water be available to the hotel guests while still being cost effective and environmentally sensitive. The Solution: To make optimal use of the The Protea Hotel Manor’s existing infrastructure and keep the project costs low the Selected Energy team split the project into three mini projects. The first step was to connect those rooms accessible via service shafts to 21 Solahart KF 302 thermosiphon solar water heaters. Each of the Solahart units installed can deliver 300 litres of hot water. The Selected Energy team disconnected and removed the energy inefficient electric geysers that previously serviced these rooms. The second part of the project was to pre-feed the existing central boiler system to service rooms not accessible via service shafts. Four Solahart KF302 solar water heaters are able to heat more than double the amount of hot water that the boiler can produce. This not only increases the heating capability but also adds almost 1200 litres of additional storage capacity. The third project, still to be completed, will take solar energy from a collector bank and circulate it through an exchange system into 100 litres of storage per room. The Result: In implementing this solution the team reduced the hot water demand by 50% and energy consumption by an estimated 80% per year. The hot water solution, in addition to the LED lighting, Bokashi organic waste management system and fair trade coffee, makes the Protea Hotel Manor one of the most environmentally conscious hotels in Tshwane. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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PROFILE: CENTRAL UNIVERSITY OF TECHNOLOGY

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Birchwood Hotel and Conference Centre The Need: During 2010, Selected Energy implemented a greening project at The Birchwood Hotel & OR Tambo Conference Centre in Boksburg. Birchwood needed to reduce the hotel’s energy consumption and carbon footprint while still providing guests with hot water on demand. The Solution: The solution called for 62 Solahart Kf302 systems to be installed onto accommodation units with colourbond skins to ensure an aesthetically pleasing appearance. A monitoring study had also been done on site, to show savings the between three different hot water setups: solar water heating, domestic electrical water heating and centralized boiler setups, feeding multiple units/ blocks. One centralised commercial Heat Store system was installed to meet the water heating requirements of the estate. The Result: The installation will supply each of the 212 suites with 100 litres of hot water. Two 300-litre Solahart solar water heaters will provide enough hot water for six rooms. In addition Selected Energy implemented several other energy saving methods such as energy efficient lighting. Over the next ten years, the hotel will save R15.5 million in water heating costs thanks to the deployment of a solar water heating solution. High Density Residential and Community Units High density residential and community units refer to hostels and housing units. Selected Energy has worked on a variety of these projects for university residences, mining and school hostels. The main aim of these units is to provide low cost housing. The implemented solutions therefore need to keep running and maintenance costs low. Commercial Solar Thermal Case Study: Wits University The Need: The University of the Witwatersrand situated in Johannesburg provides housing to 1107 postgraduate students. The students are housed in 13 different accommodation blocks on campus. Wits University felt it was necessary to address the amount of energy and water wastage that was occurring in these residences and turned to Selected Energy for assistance. The water heating solution needed to provide students with sufficient hot water throughout the day while still saving energy and bringing down electricity costs. The Solution: Selected Energy supplied the systems and design, based on the client’s specifications and requirements. The solution called for 148, 302J Solahart solar water heating systems to be installed with a hot water circulation setup throughout the building. The solution was to arrange the 148 units in parallel on the roofs of the residences, which provided built in redundancy, easy maintenance and energy savings.

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The Result: The 148 Solahart solar water heaters could displace enough CO2 gas to remove 750 cars from the road. The installation was also able to reduce the residences’ energy costs and create electricity savings. BHP Billiton – Hotazel The Need: BHP Billiton approached Selected Energy for a solar water heating solution that would reduce its impact on the national grid by offsetting the electricity required to heat the water on its housing units. This magnesium mine near the town of Hotazel gave rise to a 600 house village. With the demand for iron from China the mine has experienced a revival and is investing in its staff accommodation. The 217 housing units developed by the mine house between 1-2 people each. The Solution: Selected Energy’s solution called for the installation of 217 Solahart 181Kf solar water heaters. The Result: This installation results in a total demand reduction of more than 300kVA, a total collector surface of 403m² and 37758L of hot water storage at 55°C. Harmony Masimong The Need: Harmony Masimong Shaft 4, is a community residential unit (CRU) development in Welkom, Free State. The residential units are being converted to 416 flat type housing units by the Department of Human Settlements. This high-density residential development required a pre-paid metered solar water heating solution to provide consistent and sufficient hot water. The Solution: Selected Energy installed 163, 302J Solahart solar water heaters as well as pre-paid hot and coldwater metres as part of the solution. The Result: The installation resulted in a reduction on energy consumption as well as an improvement in the residences carbon emissions.

Conclusion: The secret to the successful solutions above was the integration of a client’s energy consumption needs with over 30 years worth of experience. The ability to integrate solar water heating with an existing infrastructure allows for an infinite amount of solution possibilities. Throughout Selected Energy’s case studies the energy consumption savings and reduction in carbon emissions highlight the adaptability, efficiency and unlimited potential of solar water heating.

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By Robyn Brown Legal Consultant Renewable Energy

AN UPDATE ON THE RENEWABLE ENERGY INDEPENDENT POWER PRODUCER PROCUREMENT PROGRAMME REIPPPP The Government’s Integrated Resource Plan (IRP), published in May 2011, sets out South Africa’s required new generation capacity for the next 20 years. As this plan followed a time of serious energy shortages, it is encouraging to see government’s clear intention to diversify the energy mix and move away from fossil fuels, break its monopoly by handing over some of the responsibility of providing energy and by moving towards renewable energy; synchronising with Environmental Agency targets to reduce greenhouse gas emissions by 34% by 2020. In accordance with the IRP, the Request for Proposal (RFP) was published in August 2011. This provides for the procurement of renewable energy up to 2016 in terms of the REIPPP programme, which is a bidding system for the private sector, with the preferred bidders entering into a 20 year Power Purchase agreement (PPA) with Eskom, as well as an Implementation Agreement with the Department of Energy (DOE). Private sector alternative energy is essential to energy stability, while also presenting an opportunity to take advantage of the possibilities relating to the Green Economy and boost employment. The REIPPP programme was set to procure 3 725 MW of renewable energy capacity and is expected to attract investments of around R100-billion between 2012 and 2016. In some of the technologies included in the bidding programme, the target for foreign investment is as high as 60% with a minimum 40% South African Equity Participation, which is intended to attract developers to South Africa in order to expand employment opportunities and broaden skills. An estimated amount of US$ 10 million was spent on fine tuning the tender design and bid evaluation process. A large legal, technical and financial advisory team was assembled (local & international). There is a general consensus that the quality of the documentation is excellent and that there is a secure and transparent evaluation process. The IPP programme is being conducted in five phases or tender rounds termed Windows, Bids or Rounds. Procurement caps and price caps were set for individual technologies as well as price caps for each technology. Financial Close was sent for 6 months after announcement of preferred bidder status. The preferred bidders enter into standard 20 year, locally denominated, Power Purchase Agreement (PPA) with Eskom and Implementation Agreements with the Department of Energy, where the IPP is obliged to deliver on economic development promises. This contract also makes the DOE liable to the IPP for any default on the part of the buyer (Eskom).

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REIPPPP TECHNOLOGY TARGETS TECHNOLOGY

ONSHORE WIND

1850 MW

CONCENTRATED SOLAR THERMAL (CSP)

200 MW

SOLAR PHOTOVOLTAIC

1450 MW

BIOMASS

12.5 MW

BIOGAS

12.5 MW

LANDFILL GAS

25 MW

SMALL HYDRO (UP TO 40 MW)

75 MW

SMALL PROJECTS

100 MW

Evaluation and Criteria Pricing is the main evaluation criteria with a 70% evaluation weighting. Prices were capped for each technology. Initially, wind projects would need to be priced at below 115c/kWh, solar PV and CSP at below 285c/kWh, while a cap of 107c/kWh had been set for biomass, 80c/kWh for biogas, 60c/kWh for landfill gas and 103c/kWh for mini hydro. The bids were evaluated by a team of professional financial, technical and legal advisers and approved by the DoE’s adjudication committee. The non-price criteria, which carried a 30% evaluation weighting, included issues such as localisation, black economic empowerment, preferential procurement, community development and job creation. The bids needed to be financially sound in structure, technically viable and have received all the necessary environmental approvals. Prospective bidders were also expected to pay a non-refundable fee of ZAR15,000.00 to be able to access the request for proposal documentation and a bid bond of ZAR100,000.00 for every megawatt of capacity bid. (100 MW project= 10 million ZAR bid bond) Window/ Bids: Round One Bid date 4 November 2011 Preferred Bidders Announced 7 December 2011 Financial Close 19 June 2012 Agreements entered into 5 November 2013 • • • • • • • • •

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Bid Tender capacity to be awarded 3625 MW 53 bids received with a capacity of 2128 MW 28 qualified and awarded preferred bidder status with a potential capacity of 1415.52 MW 25 noncompliant bids 18 Solar Photovoltaic (PV) Projects 8 Onshore Wind Projects 2 Concentrated Solar Power (CSP) Projects Prices marginally below tender caps Financial close and contract signing within 15 months of RFP SUSTAINABLE ENERGY RESOURCE HANDBOOK

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• • • •

Estimated total investment of US$ 6 billion Funding mostly by local banks Real returns close to 17% All have commenced construction

The 18 solar PV projects that made it through to the preferred-bidder stage had a combined capacity of 631.53 MW and were named as: SlimSun Swartland solar park (5 MW) RustMo1 solar farm (6.76 MW) Mulilo Renewable Energy Solar PV De Aar (9.65 MW) Konkoonsies Solar (9.65 MW) Aries Solar (9.65 MW) Greefspan PV power plant (10 MW) Herbert PV power plant (19.9 MW) Mulilo Renewable Energy solar PV Prieska (19.93 MW) Soutpan solar park (28 MW) Witkop solar park (30 MW) Touwsrivier project (36 MW) De Aar Solar PV (48.25 MW), South Africa Mainstream Renewable Power Droogfontein project (48.25 MW) Letsatsi Power Company (64 MW) Lesedi Power Company (64 MW) Kalkbult project (72.5 MW) Kathu solar energy facility (75 MW) Solar Capital De Aar (75 MW). The two solar CSP projects were named as: Khi Solar One (50 MW) Ka Xu Solar One (100 MW) The eight wind projects listed, which collectively represented 633.99 MW of capacity, included: Dassiesklip wind energy facility (26.19 MW) MetroWind Van Stadens wind farm (26.19 MW) Hopefield wind farm (65.40 MW) Noblesfontein (72.75 MW) Red Cap Kouga wind farm - Oyster Bay (77.6 MW) Dorper wind farm (97 MW) Jeffreys Bay project (133.86 MW) Cookhouse wind farm (135 MW) The projects recommended for selection were located across all nine provinces, excluding KwaZulu-Natal and Mpumalanga. All projects would need to be generating power by mid-2014, apart from the CSP plants, which had been given a deadline of 2016. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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Window/Round Two Bid date 5 March 2012 Preferred Bidders Announced 21 May 2012 Financial Close 13 December 2012 Agreements entered into on 9 May 2013 • • • • • • • • •

Bid Tender Capacity to be awarded 1275 MW 79 bids received with a capacity of 3255 MW 51 qualified 9 noncompliant bids 19 awarded preferred bidder status with a capacity of 1045 MW Prices drop Local content increases All have reached financial close Estimated total investment US$ 3.5 billion

The nine solar PV projects that were selected as preferred bidders with a combined allocation of 417.1 MW against an allocation of 450 MW and were named as: Solar Capital De Aar 3 (75 MW) Sishen Solar facility (74 MW) Aurora project (9 MW) Vredendal project (8.8 MW) Linde project (36.8 MW) Dreunberg venture (69.6 MW) Jasper Power Company development () Boshoff Solar Park (60 MW) Upington Solar PV plant (8.9 MW) The seven wind projects selected, representing 562.6 MW, were named as: Gouda wind facility (135.2 MW), the 137.9 MW Amakhala Emoyeni (Phase 1) (137.9 MW) Tsitsikamma Community wind farm (94.8 MW) West Coast 1 project (90.8 MW) Waainek venture (23.4 MW) Grassridge project (59.8 MW) Chaba project (20.6 MW) The two small hydropower preferred bidders were named as the 4.3 MW Stortemelk hydro scheme and the 10 MW Neusberg hydroelectric project. The 50 MW CSP project was named as the Bokpoort CSP project. The average prices offered by the solar PV developers fell from 275 c/kWh in window one to 165c/kWh, while wind fell from 114c/kWh to an impressive 89c/kWh. The CSP prices fell slightly from 268c/kWh to 251c/kWh. The second-window preferred bidders also offered superior local content terms, with solar PV rising to 47.5% from 28.5%, wind rising from 21.7% to 36.7% and the CSP projects rising from 21% to 36.5%.

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Window/Round Three Bid date 19 August 2013 Preferred Bidders Announced 29 October 2013 & 31 December 2013 Financial Close 30 July 2014 • • • • • • • • •

• • •

Bid Tender capacity to be awarded 1473.1 MW NEW additional allocation of 200 MW for Concentrated Solar Power 93 bids received with a capacity of 6023 MW 58 qualified 17 awarded preferred bidder status with a capacity of 1471.5 MW 2 stage preferred bidder allocation No small hydro despite a tender capacity of 121 MW Bidders need to make Economic Development commitments regarding the actual number of jobs created over the life of the project and account for every job that they commit to. Stringent BEE weighting – encouraging bidders to work with new BEE investors, particularly those who are broad based and most importantly have a significant amount of local community ownership. Pricing drops further = +/- 40% drop from Round One Foreign Investment 25% debt, 50% equity Estimated total investment US$ 4.5 billion

• Onshore Wind - 7 Preferred Bidders totalling 787 MW • Solar Photovoltaic - 6 Preferred Bidders totalling 435 MW • Biomass - 1 Preferred Bidder of 16 MW • Landfill Gas - 1 Preferred Bidder of 18 MW • Concentrated Solar - 2 Preferred Bidders totalling 200 MW Six Solar PV projects that were selected as preferred bidders with a combined allocation of 435 MW against an available allocation of 401 MW and were named as: Adams Solar PV 2 (75 MW) Tom Burke Solar Park (60 MW) Mulilo Sonnedix Prieska PV (75 MW) Electra Capital (75 MW) Pulida Solar Park (75 MW) Mulilo Prieska PV (75 MW) The seven wind projects selected, representing 787 MW against an available allocation of 654 MW, were named as: Red Cap – Gibson Bay (110 MW) Longyuan Mulilo De Aar 2 North Wind Energy Facility (139 MW) Nojoli Wind Farm (87 MW) Longyuan Mulilo De Aar Maanhaarberg Wind Energy Facility (96 MW) Khobab Wind Farm (138 MW) SUSTAINABLE ENERGY RESOURCE HANDBOOK

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PROFILE: LUMENTECH

LUMENTECH ENERGY SYSTEMS Lumentech Energy Systems is a solar technology company based in Centurion in Gauteng Province. Founded in 1997, Lumentech designs, manufactures, constructs, integrates, distributes and installs alternative energy systems including photovoltaic (PV) solar power systems, hybrid energy solutions, back-up systems, and solar heating solutions for residential, commercial and industrial applications. While some components are imported, Lumentech has the ability to design and manufacture its own components. Its target market includes the residential homes, municipalities and government departments and agencies, commercial and industrial companies including mining companies and fuel retail companies (filling stations operators), advertising agencies, farming concerns, schools and clinics. Lumentech is based in South Africa but distributes solar electrical systems into the African continent. Lumentech is 100% owned and managed by previously disadvantaged individuals. It employs a complement of 13 staff, 7 of these are females while the rest are males. All but one are in technical positions. Lumentech holds distributorships for the world’s best solar water pumping systems, water heating systems as well as wind turbines. In addition it is an accredited distributor of SolarWorld and has direct access to all solar modules and other products of SolarWorld as well as a few other international products. By focussing on renewable energy in Africa with its abundance of natural energy resources, Lumentech endeavors to make a contribution to the sustainable growth of individuals and communities through the use of alternative energy sources in a safe, environment friendly and affordable way. It has been involved in the establishment of solar power systems for over 200 farm schools in the Free State as far back as 2001 and is still involved in the procurement of funding for more such projects. Products and Services Lumentech has for a number of years been involved in the supply of solar streetlights and other solar energy systems to various places, including South Africa, the Sudan, Zambia, Zimbabwe, Mozambique, Ghana and Angola. Rural areas in these countries, in particular, are desperately in need of alternative energy sources for basic needs such as street lighting and other public lighting. Lumentech has the ability to design, manufacture and/or supply a wide range of Inverters, Chargers, Charge Controllers, Lights, Solar Modules and other items at various sizes and Voltages. However, when products and components that are of superior quality and cheaper are available in the market, such products and components are imported and used in conjunction with Lumentech’s own products for more effective results.

Lumentech’s product range include the following: 1.Solar Powered Lighting Systems (for both domestic and commercial uses) 2.Solar Water Heating Systems 3.Solar Street Lighting 4.Solar Traffic Lights 5.Others (Water Pumping, Back up Systems, Telecommunication, Security, Mobile Power, etc … - If it requires Power, we can provide it)” Contact Person: Maurice Magugumela | Tel: +2712 653 8353/ +27 82 882 5642 E-mail: mmagugumela@lumentech.co.za | Website: www.lumentech.co.za

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Noupoort Mainstream Wind (79 MW) Loeriesfontein 2 Wind Farm (138 MW) Concentrated Solar Power (CSP) - two preferred bidders totalling 200 MW were selected and named as: Xina CSP South Africa (100 MW) Karoshoek Consortium (100 MW) One Landfill Gas bidder was selected, named as Johannesburg Landfill Gas to Electricity with a total of 18 MW. Johannesburg Landfill Gas to Electricity (18 MW) One Biomass bidder, representing 16 MW, was selected, and named as Mkuze. Mkuze (16 MW) The average prices offered by the solar PV developers plummeted from 165c/kWh in Window two to 82c/kWh, while wind made a more modest decline in price from 89c/kWh to 73c/kWh. The CSP prices for Window three are not comparable with Windows one and two as the pricing formula changed. Round three price 163c/kWh (Round two was 251c/kWh). The third-window preferred bidders also offered superior local content terms, with solar PV rising from 47.5% to 53.8%, wind rising from 36.7% to 46.7% and the CSP projects rising from 36.5% to 44.3%. Round three promises to deliver 8000 jobs during the construction phase and 18 000 during the operations period (1 job = 12 person- months). Due to the large number of very competitive Bid Responses submitted for the Third Bid Submission Date in the Onshore Wind and Solar Photovoltaic Technologies, the Department is considering the appointment of additional Preferred Bidders for those Technologies from the remaining Compliant Bidders. The Department will make a further announcement regarding its decision in this regard in due course, and is intending to do so by not later than 31 December 2013. The future of renewable energy looks bright. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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ANALYSIS OF OVERALL MW ALLOCATION TECHNOLOGY

MW allocated Round 1

MW allocated Round 2

MW allocated Round 3

MW CAPACITY REMAINING

SOLAR PHOTOVOLTAIC

632

417

435

1041

WIND

634

563

787

1336

CONCENTRATED SOLAR THERMAL (CSP)

150

200

SMALL HYDRO (UP TO 40 MW)

121

LANDFILL GAS

BIOMASS

BIOGAS

TOTAL

1416

1044

1456

2808

KALKBULT  THE FIRST SOLAR POWER PLANT GOES LIVE Tuesday 12 November was a momentous day for South Africa. Kalkbult the first solar power plant under the IPP programme, connected to the grid. So now for the first time, even though it is only a very small portion, our energy usage is powered by the sun. This 75 MW PV power station is halfway between De Aar and Hopetown and will generate 155 million kilowatt hours a year – enough to power the annual consumption of 30 000 plus households. The project was three months ahead of schedule, built by Scatec -a Norwegian company, it consists of 312 000 solar panels and covers 105 hectares of land. It is built on land leased from a sheep farmer who will continue to farm on the land surrounding it, and 600 employees from the local community where involved in the construction and many of those will continue to manage the facility for its 20 year planned lifespan. This is the beginning of the government’s plan to move towards a target of 42% energy from renewable resources. The renewable energy sector has sparked a boost to the overall economy and created a vast number of jobs for a wide range of the population from the lawyers and engineers to the local communities.

References: The information in this Chapter is based on information requested from the Department of Energy, as well as the authors own experience. www.ipprenewables.co.za

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Unit 2 43 Golden Drive Morehill Benoni, 1501 P.O.Box 4 Ebotse Rynfield, 1514 South Africa

Tel: +27 (0)11-425-1198 Fax: +27 (0)11-252-6206 Bryan Cell:+27 (0)83 326-6080 Kevin Cell: +27 (0)83 235-1229

Domestic, Commercial, Industrial and Swimming Pool Heat Pumps Features of Heat-Pump Water Heating Systems: 1 2 3

4 5

6 7

The heat pump uses a small amount of electricity to extract a lot of energy from the surrounding air. Can operate efficiently in low ambiet temperature conditions. Supplies “instant”, constant hot water • on demand at temperatures up to 55°C • as supply water to existing geyser • for under-floor or radiator heating Some models also offer “free air conditioning cooling” whilst providing hot water. A COP value of 4 means that the heat pump produces four times as much thermal energy as what it uses electrically - in other words a 75% saving on the water heating bill. Integrated touch-pad controls and safeties built in to monitor operations and protect all components. This enables you to always have hot water at a fraction of the cost no matter when or how much water you use.

Home Automation Control4 offers the ultimate home automation solution by making the electronic components and systems you already use on a daily basis work together, seamlessly. By integrating everything from lighting, music, video, climate control, security—even smartphones and tablets—Control4 creates personalized experiences that enhance your life and work with added comfort, savings, convenience and peace of mind. 1. Set your house to “Away” when you leave—even if you’re just out for the day. If your automation system knows there’s nobody home, it can take steps to conserve energy for you. 2. Adjust the default setting for your lights from 100 to 90 percent. You probably won’t even notice the difference, but you’ll save enough energy to reduce up to 850 pounds of carbon dioxide each year—the equivalent of not driving a car for an entire month.

3. Use a “Green” setting to reduce HVAC usage instantly, turn off unnecessary lights and reduce appliance and standby power usage. 4. There are some rooms where lights just always seem to get left on—sometimes for hours or even days. Use motion sensors or programmable timers so those lights aren’t a drain on your wallet. Motion sensors can also turn exterior lights on and off, increasing efficiency even more. 5. What if, in your hurry to get to the airport, you forget to tell your house that you’re leaving? No worries—you can change modes from just about anywhere using your phone, tablet or laptop.

Energy Conscious Maybe you want to save the planet, or maybe you just want to save money on your energy bills. Either way, Control4 home automation helps you conserve energy and save money. With plenty of options to manage all of the power-consuming products in your home, you’ll have lots of choices that allow you to reduce your impact on the environment.

Smart Lighting Control Introducing the all-new smart lighting solutions from Control4. Control4 integrates lighting with music, shades, locks, climate control and video—so that with just one touch, the bright possibilities of a smart home are much bigger than just turning on or off a light.

Watch

Home automation and home theater go together like peanut butter and jelly. If you spend a lot of time watching television—whether it’s cable or satellite, movies or sports, comedy or drama—you’ll see a huge impact in the viewing experience once you throw Control4 automation in the mix.

Listen Whether you’re a casual radio listener or a hardcore audiophile, music is the soundtrack of your life. But even the most sophisticated stereo systems can get neglected in favor of other options that are more portable and easier to use. The goal of Control4 is to integrate your entire audio experience so you can listen to whatever you want, no matter where you are in your home.

Security Know when there's a water leak or when the kids get home. Enjoy more peace of mind when you add enhanced security solutions to your Control4 system.

Control and Monitor From Virtually Anywhere New, expanded 4Sight service gives you true "Anywhere Access" Monitor and control your home or business from your smartphone, tablet or web browser virtually anywhere you have 3G/4G connection or Internet access.* A 4Sight subscription also provides alerts on the go and security features designed to keep you safely in contact and in control any time, anywhere.

Building Automation

Intelligent installation systems i-bus® EIB is the intelligent building installation system that meets the highest standards, being both future-orientated and highly flexible. i-bus® EIB provides increased security, economic efficiency, convenience and flexibility, whether in office buildings, industrial plants or residential properties. Functions such as lighting, shutter control and heating can be individually adapted to the requirements of the user. Later changes can be easily implemented.

Energy monitoring Save, display and evaluate energy and power values: Energy monitoring for i-bus KNX incorporates a preprepared ETS project for up to twelve Energy Actuators as well as an appropriate fully functional visualization solution for representation and further processing of the detected measured values. Using the conversion function in the ETS software, the Energy Actuators can also be converted to Energy Modules and used for monitoring. The visualization solution supports the following functions – Display of the main and intermediate meters – Starting and stopping the intermediate meter – Power monitor – Energy value monitor – Saving of the energy values as a .csv file – Permanent monitoring operation

Industrial Automation Industrail automation devices deliver solutions with performance and flexibility to be effectively deployed within diverse industries and applications including water, building infrastructure, data centers, renewable energy, machinery automation, material handling and marine.

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CHAPTER 13: SOUTH AFRICA’S REIPPPP ROUND THREE RESULTS  AN OPPORTUNITY FOR THE CONTINENT

Linda Olagunju Founder of The Renewable Energy Forum South Africa Conference Managing Director of DLO Energy Resources(Pty) Ltd.

SOUTH AFRICA’S REIPPPP ROUND THREE RESULTS  AN OPPORTUNITY FOR THE CONTINENT The official Ministerial announcement of the 17 preferred bidders in South Africa’s third bidding window of its Renewable Energy IPP programme was made on the 4th of November 2013. An allocation of 435 MW was made to solar PV projects and the winners included: the 75 MW Adams solar PV 2; the 60 MW Tom Burke solar park; the 75 MW Mulilo Sonnedix Prieska PV project; the 75 MW Electra Capital facility; the 75 MW Pulida solar park; and the 75 MW Mulilo Prieska PV project. The allocation for onshore wind was 787 MW and the 7 winning projects included: the 110 MW Red Cap-Gibson Bay project; the 139 MW Longyuan Mulilo De Aar 2 North wind energy facility; the 87 MW Nojoli wind farm; the 96 MW Longyuan Mulilo De Aar Maanhaarberg project; the 138 MW Khobab wind farm; the 79 MW Noupoort Mainstream project; and the Loeriesfontein 2 wind farm. Of the 93 bids received 18 were declared invalid and the balance have been left in limbo as they await a Ministerial determination on whether a further allocation will be made on 31 December. The Department was careful about raising the expectations of the remaining bidders and cautioned that an evaluation would have to be made on the costs and benefits of extending the number of allocations made. REIPPPP’s third bidding round has been the most competitive since the conception of the programme. Tariffs have dropped dramatically, with the average solar PV price falling from R2.75/ kWh in bid-window one to 88c/kWh in the third round, onshore wind fell from R1.14/kWh in round one to only 66c/kWh in the third bidding round. The drop in prices has meant that investors have had to be creative in structuring their bid responses and the interesting dynamic that has occurred in this third bidding round is that there has been an increased appetite from international investors to finance these projects off balance sheet which shows a confidence in the country’s programme as well as a desire to remain competitive on pricing. The nature of the investors interested in the REIPPP programme has also changed since inception and we are beginning to see larger companies with strong balance sheets enter the South African market aggressively, most notably there has been an increased interest in REIPPPP from utilities, oil and gas companies and pension funds. Due to the long term nature of the investment we have seen a number of the private equity players exit the market. There has also been a lot of consolidation with smaller South African developers either being bought out or partnering with larger international investors and we are likely to see this trend continue as the rounds unfold. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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An interesting observation in the analysis of the results released by the Department was the correlation between price and economic development scoring. Some projects with lower prices had notably lower economic development scores, whilst the projects with higher tariffs had higher economic development scores. It will be interesting to observe how developers are able to remain price competitive in the next bidding round whilst adhering to the economic development criteria as enshrined in the RFP. The capacity/ability of bidders to balance these two often competing criteria will certainly determine success in future rounds. Another interesting observation made when reviewing the map released by the Department is that most of the projects are located in the Northern Cape and Eastern Cape. This raises concern around grid access as both areas continue to face pressure in relation to access. More pressure will build on the need for an upgrade to the grid in order to support the growing demand for renewables. Whilst some companies are gearing up for the financial close process which is expected in July 2014, others eagerly await the announcement – to be made on the 31 December on whether a further appointment of preferred bidders will be made. The overall consensus however is that the market has become competitive and developers are looking for ways in which to diversify their portfolio and not just rely on the REIPPP programme. To this end we have seen a large number of developers explore opportunities in South Africa’s off-grid market. Companies such as Aurora are currently developing one of South Africa’s largest rooftop solar installations, others are looking beyond the South African border for opportunities. One example is the recent release of a request for qualifications for the construction and operation of 3 solar PV plants from Nampower in Namibia which attracted a number of players already actively involved in the REIPPP programme. As the market continues to be saturated more developers will begin to look at the rest of the continent as the new frontier. At the moment, only South Africa and Morocco have fully fledged renewable energy programmes, however it is clear that there is increased activity on the market continent-wide. In 2012 Ghana announced the construction of a 155MW solar park making it the largest in sub Saharan Africa. In 2013 Eaglestone NV announced its intention to invest as much as 40% of a planned 100-million euro renewable energy fund in projects in Angola and Mozambique. At the same time, the Kenyan government has announced plans to scale up its wind power programme, and the Nigeria Electricity Regulatory Commission (NERC) has been developing feed-in tariffs for renewable energy which would support off-grid and mini-grid systems in rural and semi-urban areas. So whilst some investors may exit the South African market after the announcement on 31 December it is important to note that it is not all doom and gloom, and there is a lot of opportunity still available across the continent.

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PROFILE: AAAMSA

SOUTH AFRICAN FENESTRATION & INSULATION ENERGY RATING AUTHORITY SANS 10400-XA ENERGY USAGE IN BUILDINGS In 2006 the AAAMSA Group established the South African Fenestration and Insulation Energy Rating Authority (SAFIERA) to support its drive to promote energy efficiency in the building industry. SAFIERA’s primary goal is to determine and register, amongst other, the heat transmission values of fenestration, in particular, and other elements of the building envelope in general and to provide an independent, accurate, and reliable energy performance rating system based in NFRC methodology. SAFIERA is the Country representative of NFRC in South Africa. This has led to an investment by the AAAMSA Group for the construction and commissioning of a Rotatable Guarded Hot Box (RGHB) which determines the heat transmission values of virtually any building envelope system. The aim is to reduce heat transfer through the building envelope, improving energy efficiency and thus reducing the energy usage of the building.

Fenestration industry Window technology has evolved over the past four decades to the point where windows can now be selected not only for their aesthetic qualities, but also for their thermal performance abilities. The U-value (thermal transmittance) of fenestration systems (window frame and glass) is defined as the measure of the rate of non-solar heat loss or gain through the material or assembly. U-values gauge how well a material allows heat to pass through. The “typical old South African” windows are notorious for unwanted heat loss and heat gain. In accordance with SANS 10400-XA Energy usage in buildings, all fenestration systems are required to be tested for air infiltration in accordance with SANS 613. Major improvements have already been achieved by local Fenestration manufacturers by incorporating proper seals into their designs to minimize air leakage of windows. Similarly the U-value test results achieved in the RGHB can now be compared with those overseas as the testing parameters are exactly the same and whilst there are still room for improvement, it is evident that South African Manufacturers are changing window designs and achieving better results, which improves the energy efficiency performance of the building envelope.

Timber window prepared for testing in the Rotatable Guarded Hot Box with thermocouples placed strategically in accordance with ASTM C1199.

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PROFILE: AAAMSA

Thermal insulation industry For a house, commercial premises, a plant or an institutional building, good thermal insulation brings many benefits. In addition to making it comfortable and healthy, proper thermal insulation is an investment that extends the life of a building. Thermal insulation in roofs is now mandatory in South Africa. Thermal insulation acts as an inhibitor to heat transfer either by conduction, convection, radiation or a combination of these, reducing heat loss in winter to keep the building warm or reducing heat gain in summer to it cool. There are a numerous factors and attributes that should be considered when making insulation specifying decisions. Important factors for design professionals and builders to consider when choosing the right insulation for their projects include environmental impact throughout the life-cycle assessment as well as long-term performance and safety testing results. The appropriate level of insulation intervention will depend on climate, building construction type, and whether auxiliary heating and/or cooling is used. Whilst energy efficiency in the building envelope is of great importance, fire safety always comes first and all commercially available thermal insulation material must comply with the relevant South African National Standard pertaining to fire, i.e. SANS 10400-T Fire Protection and SANS 428 Fire performance classification of thermal insulated building envelope systems. Example of Thermal Resistance of Typical Wall Systems Tested in the RGHB

The current SANS 10400-XA and regulatory requirements in South Africa will change in the near future. Roof, wall and floor systems with various types of thermal insulation, have been tested to determine the thermal resistance of the systems. From research it is evident that cavity wall insulation will become a requirement in the future. Thermal insulation will play an integral part in the future design of a building. For further information on local products tested contact the AAAMSA Group on Tel: (011) 805 5002 or visit the following websites: www.aaamsa.co.za or www.sagga.co.za or www.safiera.co.za or www.tiasa.org.za RENEWABLE ENERGY RESOURCE HANDBOOK

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Ntombifuthi Ntuli Director: Renewable Energy Industries Department of Trade and Industry

RENEWABLE ENERGY AS A DRIVER FOR ECONOMIC GROWTH IN SOUTH AFRICA Introduction The South African government has embarked on a renewable energy roll-out programme that will see South Africa securing its energy future, while curbing the impact of greenhouse gas emissions and reducing unemployment. The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) was kicked off in 2011 when government announced that 3725 MW of renewable energy would be procured up to 2016. In the first bidding round 28 preferred bidders were selected to supply 1416 MW, and 19 preferred bidders were selected in 2012 to supply 1044 MW. The country caught a wake-up call in 2008 and 2009 when the power crisis took hold, followed by the global economic crisis. At this stage both government and business have now widely acknowledged that it is no longer realistic to promote economic growth at any cost, and have therefore rallied around the new flag termed ‘Sustainability’. The notion of sustainable development introduced what business terms the triple bottom line, which measures the financial, environmental and social performance of a business. Renewable energy is more than just a feelgood environmental programme. It is also widely viewed as one of the best prospects for business and job growth over the next decade, which has also been identified as a catalyst for long term economic growth. According to the Organisation for Economic Co-operation and Development (OECD) (2011), there is currently a window of opportunity to undertake transformational change in the energy supply sector to meet economic and environmental objectives, as there is a need to replace aging plants and add new capacity, especially in emerging economies, to meet growing electricity demand. Economic growth in countries often results as local technologies and resources increase their independence in supplying the energy needs of citizens. The OECD explains that sustainability within a country’s energy sector increases efficiency and security, encouraging prosperity and growth through energy access, industrial development, job creation and competitive technological innovation. One of positive spin offs of renewable energy development is that funds are being directed into the sector from governments, institutional investors and individual investors worldwide, and some of those funds are starting to flow into South Africa thus strengthening the country’s economy. Global investment in green energy in 2010 totalled USD 243 billion, an increase of 30% over 2009. In the first quarter of 2010, venture capital investment in clean technology, which includes green SUSTAINABLE ENERGY RESOURCE HANDBOOK

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energy, was up 68% from the previous year. In the first quarter of 2011, stock market funds tied to green energy rose almost 14 per cent. In South Africa over R74 Billion was committed during 2011 and 2012. The funds are not only invested in the development of renewable energy projects, but also in manufacturing key equipment required for construction of such projects, and this is where the long term economic growth prospect lies. For South Africa, the main interest lies in manufacturing wind turbine towers, wind turbine blades, assembling solar photovoltaic modules and manufacturing flat mirrors for Concentrated Solar Power (CSP) plants. Other opportunities are in manufacturing components for bioenergy, hydropower, landfill gas and hydrogen fuel cells. The rise in green energy investment has led to the promise of more green jobs and the first two rounds of the REIPPPP committed in access of 20 000 direct jobs for both the construction and operation of renewable energy projects.

How Renewable Energy will Contribute to Economic Growth In this paper we argue that the renewable energy sector offers enormous potential for the economic growth of South Africa. This argument will be based on six pillars namely: Energy Access and Secure Energy Future; Private Sector Participation in Energy Generation; Investment Inflows; Local Manufacturing, Job Creation and So-economic Development. As stated in Edkins, et al (2010) states, in the last few years renewable energy has been increasingly seen as an opportunity to foster a more secure, labour intensive and sustainable economy and society. Economic development is one of the most important requirements of the REIPPPP. The programme incorporates stringent requirements for investment in local economic development in various ways. Emphasizing its’ importance, the economic development criteria allocate a weighting of 30% in the bid evaluation scoring system, against the 70% for the price. The seven criteria of the economic development scorecard are job creation and local content, followed by local ownership and socioeconomic development, management control and enterprise development.

Energy Access and Secure Energy Future The International Energy Agency (IEA) defines energy supply to be “secure” if it is adequate, affordable and reliable (Olz, et al; 2007). Energy is a fundamental input to economic activity. Modern energy services light up our homes and schools, fuel economic activity to produce and consume, provide comfort and mobility, pump water and contribute to health and well-being. Harnessing energy sources to replace manual and animal labour was the platform of the Industrial Revolution: a period of unprecedented economic and social development (OECD & IEA, 2011). Energy access, does not just affect households but all aspects of society, including business and community services. Energy has always been crucial for the economic development of human societies, although its importance increased considerably since the industrial revolution, largely based on an intensive use of fossil fuels (Labandeira & Manzano, 2012). In 2010, government released a 20 year energy plan termed the Integrated Resource Plan (IRP 2010). This plan was a significant game changer for the renewable energy sector that had been brewing for the preceding five years. The IRP 2010 made specific allocations per technology for new generation of energy to meet the country’s future energy needs. An amount of 17.8 GW was

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allocated to renewable energy technologies including solar photovoltaic (8.4 GW), concentrated solar power (1GW) and wind energy (8.4 GW). This was a significant allocation as it amounted to 42% of the new generation capacity. Government, business, labour and civil society signed a Green Economy accord in 2011, which made specific iterations with regards to renewable energy. Government committed to secure commitments for the supply of 3 725 MW of renewable energy by 2016 as a first step to realising the goals for renewable energy under the IRP 2010 (Department of Economic Development, 2011). This goal is well on target as the final lap of the procurement round is under review for the announcement of preferred bidders by end of October 2013. By 2016 the construction of the entire 3725 MW should have been completed and connected to the grid. In December 2012 the Minister of Energy announced an additional determination of 3200 MW to be procured by 2020. This procurement plan is therefore walking in the footsteps of the IRP 2010. Secure energy access and energy security is important for any economy to grow sustainably. But apart from security of energy supply, economic growth relies on affordable electricity. The affordable access to energy in the form of electricity is important not only for individual citizens, but also for the industries that drive an economy. High energy prices increase costs of production, leading to reduction of a labour force, thus unemployment. Labandeira & Manzano (2012) explain that an increase in energy prices can also significantly slow economic growth through its effects on consumers’ expenditure. Changing prices may create uncertainty about the future and, therefore, consumers would respond by increasing their precautionary savings and postponing purchases of energy-intensive durable goods such as automobiles. So it is very important for economic growth to keep energy prices in check. As the development of renewable energy proceeds in increasing system capacity and efficiency, the costs of energy production will drop. The REIPPPP ensured this by creating a competitive bidding process, which, as has been witnessed in the first two rounds, has succeeded in bringing the price of renewable electricity down. These trends will increase the availability of clean electricity over time, eventually benefiting the country’s manufacturing sector through lowered costs, and lowered pollution or energy taxes such as the proposed carbon tax.

Private Sector Participation in Energy Generation As South Africa’s energy shortage was beginning to pose a threat to economic growth, a new opportunity for private companies to participate in the energy generation business emerged. The firms that foresaw the opportunity during the power crisis in 2008 and had taken the risk of assessing the renewable energy project development opportunities, notwithstanding the unclear policy environment at the time, were able to capture the first mover benefits. Renewable energy is one of the methods for the country to meet the short-term demand for electricity and shift the capital and risk basis from the public sector to the private sector. This sector has opened an opportunity for private sector participation in the energy generation business, which was previously reserved as a state function in South Africa. The growing demand for electricity, Eskom’s energy supply limitations (driven by funding limitations and time constraints), rising electricity prices, government’s clear energy policy direction and the implementation of an incentive scheme have been the biggest drivers encouraging private power producers to enter the renewable energy market and invest in the South African energy SUSTAINABLE ENERGY RESOURCE HANDBOOK

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industry. The renewable energy generation industry, if IRP 2010 targets are taken into account, is worth over R500 billion and presents lucrative opportunities for private sector participants. Private participation in this industry is likely to increase supply, ease borrowing requirements for Eskom and reduce the funding burden on the government. As new business opportunities emerge for the private sector, this undoubtedly will have a positive impact on economic growth. The pressing need for new generation capacity, as has been spelt out in the Integrated Resource Plan and the associated cost of financing this new build, is the biggest driver for market growth for private power producers in South Africa. Forty seven renewable energy projects are currently in the pipeline for construction within the next twelve months. Renewable energy generation is set to become the largest area of participation for independent power producers (IPPs) in South Africa.

Investment Inflows Investment, whether domestic or foreign, is essential for any country’s economic growth and prosperity. The greatest economic growth benefit comes from investment by multinational corporations because they tend to demand high volumes of a product. If more products are produced in labour intensive industries, more jobs are created. Political stability in South Africa, coupled with an established legal and financial system, makes it an attractive investment destination for international project developers. The country’s fastgrowing economy and fast-urbanizing population has created huge demand for energy, opening up solid opportunities for investors, particularly in the development of renewable energy. As we have witnessed in the REIPPPP, investment into the programme has come from different directions, private equity from local and foreign corporations, local and foreign banks, the government owned Industrial development Corporation (IDC) and the Development Bank of Southern Africa (DBSA), pensions funds, etc cetera. According to Engineering News Online (www.engineeringnews.co.za), the investment committed by private power producers under the REIPPPP has made South Africa the fastestgrowing clean-energy market in the G20. Investors have clearly realized the potential of the South African renewable energy sector. Renewables offer high upfront investment and solid long-term returns, making them the ideal investment for funds such as pension funds. Metal Industries Benefit Funds Administrators (MIBFA), which is a pension fund for the National Union of Metalworkers of South Africa (NUMSA) members have committed up to R1 billion of investment in the renewable energy sector. The search engine giant Google has invested R103-million in the Jasper power project, a 96 megawatt solar photovoltaic plant near Upington in South Africa’s Northern Cape province. The industrial Development Corporation (IDC), launched a R25 billion green energy fund in 2011. This fund is in line with the Green Economy Accord commitment which articulated that “The Industrial Development Corporation will set aside a capital allocation of R22 billion for green projects over the next five years and a further R3 billion will be made available for manufacturing of green products and components”. According to the IDC Annual Report (2012) (www.idc.co.za) the IDC committed R5.2 billion to REIPPPP’s first round of bidding. This represents two concentrated solar projects, four wind projects and six photovoltaic projects. In the second bidding round, seven projects with a total capacity of 380 MW and funded by the IDC were awarded preferred bidder status. This

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Installation of Inverters at Aries Solar Park (Northern Cape) Source: Davin Chown (Mainstream Renewable Power South Africa)

represents an additional R2.3 billion investment. In total, the IDC committed R7.5 billion worth of investments in green industries, of which R1.5 billion goes directly to local B-BBEE communities. Three of the big four South African Banks did not miss the opportunity of financing renewable energy projects. According to the Standard Bank website (www.standardbank.com) Standard Bank Group emerged as the leading investor in the first round of South Africaâ&#x20AC;&#x2122;s renewable energy independent power producer (REIPP) procurement process, backing a total of 11 wind and solar projects. Standard Bank gave an underwriting commitment of R9.4-billion worth of debt and took an equity stake in four projects. Absa Bank has signed an agreement with the French Development Agency (FDA) to offer loan finance to the value of 40-million euros to companies with commercially viable clean energy or energy-efficient projects. Absa provided R8.3-billion worth of credit commitments for renewable energy projects under the REIPPPP (www.25degrees.net). Nedbank Capital is said to have funded projects totaling 37% of the successful bidders in first round of the bidding programme. This is not an exhaustive list of the financial institutions that are participating that are participating in funding renewable energy is South Africa, but just demonstrates the magnitude of this programme and the direct financial contribution it is making to the growth of the South African Economy. The total investment committed to rounds one and two is R75 billion.

Local Manufacturing The manufacturing sector provides a locus for stimulating the growth of other activities, such as services, and achieving specific outcomes, such as employment creation and economic empowerment. This platform of manufacturing presents an opportunity to significantly accelerate the countryâ&#x20AC;&#x2122;s economic growth and development. Developing a manufacturing base worthy SUSTAINABLE ENERGY RESOURCE HANDBOOK

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of South Africaâ&#x20AC;&#x2122;s status as an emerging economy is important in the renewable energy sector. Value-added processing is crucial to transforming South Africaâ&#x20AC;&#x2122;s economy from that of a producer of raw materials, to one which converts these into high-value products. Introducing renewable energy to support new industries, as well as using investments of consortia to drive local industry will address issues such as rapid urbanisation, as the need to move to urban centres for economic opportunities will subside. An increase in investments in renewable energy power generation increases the demand in renewable energy related services and technology producing sectors, resulting in an increased demand which leads to an augmentation of the manufacturing in these sectors (European Commission, 2009). The manufacturing sector is a preferred point of focus in the REIPPP, as articulated in the local content requirements, due to its multiplier effect and the positive effect it has on other sectors of the economy. Examples of such impacts include supply of raw materials, construction of manufacturing premises, and the transportation and retail of finished goods. In order for South Africa to build a stable green economy, emphasis should continue to be on local manufacturing. This will not only create new jobs in downstream industries, but contribute to retention of existing jobs (Ntuli, 2012). The REIPPPP is a capital intensive programme that will result in an estimated R100 Billion investment in renewable energy. Government has always emphasised on the need to ensure that a certain percentage of this investment is spent in South Africa, whether through employment of South African citizens or through procurement of locally produced equipment. Local content requirements will drive this objective, and are set to rise with every bidding round until optimum levels are reached. Gets, et al (2011) however, argues that even though the local content requirements are set to increase in future bids to try and generate local jobs, this is unfortunately limited by the lack of a long term procurement plan. Minimal allocation of capacity per technology is another impediment as it constrains the pipeline to promote, for example, the manufacture of wind turbine blades. This is even more pronounced in Concentrating Solar Power (CSP), biogas, biomass, and hydro where the MW allocations are lower. Gets et al (2011) further comments that more ambitious long term policies are essential to bolster investment in renewable energy manufacturing and installation across the country. Moreover, adequate financial and economic incentives need to be in place to allow for stimulating local manufacturing of renewable energy technology equipment and to increase the number of investors in the industry. Shifting towards green growth in the energy sector will require new technologies, fuel sources, processes and services that can spur new markets and new industries. Firms that are proactive in the face of these changes will be well-positioned to both contribute to and benefit from them (OECD & IEA, 2011). Expanding renewable energy production can indirectly broaden the industry base in South Africa. For renewable energy production to increase there is first an increased demand for the associated machinery, parts and expertise that go into creating energy from renewable resources. Large-scale industries that can locally produce equipment for wind and solar power collection, storage and distribution, for example, can be expected to grow with the demand for renewable energy. Investments made early in these peripherally related industry sectors control how quickly renewable energy develops.

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Due to increased local content targets and revision of local content rules for the third bidding round, there has been increased interest from OEMs to support local manufacturers who produce components for the wind energy sector. The DCD Group, in partnership with the IDC and the Coega Development Corporation (CDC) will be investing in a R300 million 23000m2 wind tower manufacturing facility in the Coega Industrial Development Zone (IDZ). This facility is envisaged to create about 200 operational and 600 construction jobs.

Job Creation The growth of any industry demands an increased workforce. Renewable energy production is typically more labour intensive than current fossil fuel energy, so the number of needed workers is expected to increase proportionately with the amount of renewable energy created, reports the OECD. Peripheral jobs will also be created in related sectors that develop and maintain associated systems, technology and equipment. As these sectors increase employment rates, additional disposable income at the household level will further stimulate the economy by increasing demands in entertainment, services and other sectors. South Africa has a high rate of unemployment, reported to be 25.3% in May 2013, with an additional 2.4 million discouraged work-seekers. The Green Economy Accord committed to the creation of 300 000 jobs in the green economy sector by 2020, of which 50 000 will be created in the renewable energy sector (Department of Economic Development, 2011). Government therefore views job creation as one of the important imperatives of the REIPPPP. In terms of broader economic development the Request for Proposals (RFP) stipulates clear requirements in seven economic development components, namely job creation, local content, ownership,

Construction in progress at Konkoonsies Solar Farm (Northern Cape) Source: Davin Chown (Mainstream Renewable Power South Africa)

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Excavation for a wind tower foundation (Jefferey’s Bay Wind Farm) Source: Davin Chown (Mainstream Renewable Power South Africa)

Construction of a wind tower foundation in progress (Jefferey’s Bay Wind Farm) Source: Davin Chown (Mainstream Renewable Power South Africa)

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management control, preferential procurement, enterprise development and socio-economic development, of which job creation and local content carries more weight (50%). For job creation, the RFP specifies stringent requirements for employment of different categories of South African based employees. The first and second rounds of the REIPPPP committed to creating 20 479 direct jobs during the construction of 47 projects amounting to a total 2460 MW capacity, while operational jobs amount to 735 for both phases. These job figures exclude the jobs that will be created in the manufacturing sector, and other indirect jobs in the peripheral sectors supporting both manufacturing and construction. Job creation transfers some income from corporations to individuals, thus increasing their standard of living. The improved standard of living means that individuals have more disposable income to recirculate back into the economy as they purchase products, and this undoubtedly results in positive economic growth.

Socio-Economic Development The government led REIPPPP does not only make requirements for localisation and job creation, but there is also a strong emphasis on local community development, which puts the onus on the project developers to engage with socio-economic development (SED) activities at local level. In order to achieve this, project developers need to conduct an assessment of the socio-economic needs of local communities in their project area and vicinity. Socio-economic development is defined in the bid documents as the “initiatives carried out by a measured entity towards the promotion of access to the economy by black people” (Wlokas et al, 2012). In the SED plan, developers assess the needs of the communities surrounding the proposed project site and formulate strategies on how such needs could be met utilizing the SED contributions. In response to the ED element, if chosen to do so, “bidders are required to provide a list of the type of enterprises earmarked for development and also give an indication of the programmes that will be implemented with these enterprises” (Department of Energy, 2011 in Wlokas, et al; 2012). Community needs may differ from community to community and may include: local employment opportunities, affordable school transport, lack of access to information about tertiary education, opportunities for the youth, food security, youth development, cultural activities, business and work, faith, health services, education and training, leadership development, community facilities and infrastructure and social services. These needs would therefore need to be prioritised and actioned by project developers in partnership with community leadership structures. But what is commendable, as Wlokas, et.al. (2012) notes, is that the incorporation of socio-economic indicators in the REIPPPP scorecard sets a strong precedent for ensuring that project developers take community development issues into consideration at early planning stages. This therefore ensures that South Africans at all levels are provided a platform to benefit from the renewable energy procurement programme.

Conclusion As demonstrated throughout this paper, renewable energy has great potential to make a meaningful contribution to economic growth. Ensuring a secure and affordable energy access is imperative for growth of any economy. This programme has opened endless possibilities for economic participation by South African entities in different arenas. By opening the energy SUSTAINABLE ENERGY RESOURCE HANDBOOK

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A completed foundation for a single wind turbine at Jeffery’s Bay Wind Farm Source: Davin Chown (Mainstream Renewable Power South Africa)

generation business to the private sector and decentralizing the generation of energy, the REIPPPP has ensured the increased possibility for all South Africans to be a part of the energy supply solutions. The local content requirements specified in the bid documents will see South Africa giving birth to a new industry that was never there before, thus creating new business opportunities at different tiers of the value chain. As already mentioned, a total of R75 billion has been committed to the development of renewable energy financed by both local and foreign investors. This magnitude of investment is definitely bolstering the country’s growth prospects. As these investments trickle down to the bottom of the pyramid, though job creation and socio-economic development, the standard of living for the an average South African could see improvement. As the programme continues to roll-out, renewable energy becomes more affordable , and as witnessed in the REIPPPP, both solar PV and Wind energy have grid parity well within their sight and this levels the playing field between renewables and conventional energy. Affordable renewable energy is likely to lower the cost of energy in general and increase its use. According to Kaggwa et al, (2011) if applied in a modern way, renewable energy sources can positively contribute to a country’s environmental, social and economic development. At a macro level, the increase in overall energy supply will have a positive spin-off on the economy through job creation. Renewable energy sources, in particular solar energy, allow a decentralised energy supply, thus minimizing distribution costs of bringing energy to remote areas (such as rural areas) that are vulnerable to poverty. This means that the increased use of renewable energy in South Africa will increase energy supply in the country; stabilize national energy supply; and improve the welfare of the country’s population through the creation of new jobs from increased economic activities.

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References Edkins, M., AMarquard and H. Winkler (2010), South African Renewable Energy Policy Roadmaps, Energy Research Centre, University of Cape Town. OECD and IEA (2011), OECD Green Growth Studies, Energy, OECD Publishing, pp 2, 6 Gets A, and R. Mhlanga(2011), Powering the future – Renewable Energy Roll-out in South Africa, Greenpeace Africa, pp 26 Kaggwa, M., S. Mutanga and T Simelane (2011), Factors Determining affordability of Renewable Energy – A Note for South Africa, Africa Institute of South Africa, Brifieng Note No. 65, pp 8. Labandeira, X. and B. Manzano (2012), Some Economic Aspects of Energy Security, Working Paper, Eforenergy Olz, S., R. Sims, and N. Kirchner (2007), Contribution Of Renewables To Energy Security, International Energy Agency Industrial Development Corporation (2012) Annual Report (www.idc.co.za) Wlokas, L. W., A. Boy and M. Andolfi (2012), Challenges for local community development in private sector-led renewable energy projects in South Africa: an evolving approach, Journal of Energy in Southern Africa, Vol 23 No 4, Cape Town, pp 46 to 50 Department of Economic Development (2011), Green Economy Accord, Pretoria European Commission (2009), The impact of renewable energy policy on economic growth and employment in the European Union, Brussels, pp 24 Ntuli, P. N. (2012), Green Jobs in Renewable Energy, Sustainable Energy Resource Handbook: Renewable Energy, Alive2Green, Cape Town

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PROFILE: PEER AFRICA

PEER Africa Mission

Provides integrated environment, economic, empowerment, cost-optimized solutions for a sustainable, built environment. Our emphasis is on empowering poor communities in Africa and the developing world to take charge and control of their livelihoods in a responsible manner.

Guiding Principle

It is now as easy to build an energy-efficient, low-carbon footprint, resilient, affordable community, as it is to “build a slum”. It is now as affordable to capacitate those populations in those communities to take charge of their lives, prepare and enter the workforce trained to contribute to the growth of their communities and country, as it is to import trained workers.

About

PEER Africa Western Cape, CC was founded in 1995 by Lilia Abron, Ph.D., PE, BCEE, Douglas “Mothusi” Guy, MBA, and Thami Eiland, our South African community partner. PEER Africa is a design-build firm specializing in upgrading and transforming informal communities to resilient, sustainable formal communities. In addition, PEER Africa delivers basic municipal services appropriately and empowers previously disenfranchised individuals to take charge of and improve their lives in a manner that promotes democracy, enrichment, economic soundness and growth for all. Over the past two decades, PEER Africa has established innovative “best practice solutions” for environmentally sound and sustainable projects in the built environment that contribute to the eradication of poverty, and promote and enhance local economic development in the very poor to destitute communities in South Africa.

A complete iEEECO™ sustainable home with an off-grid solar home system.

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Awards & Recognition 2012: recipient of AAEE (American Academy of Environmental Engineers) Superior Achievement Award for the Witsand iEEECO™ Sustainable Community in Cape Town, Republic of South Africa Convened a full-day workshop on developing resilient communities hosted by the GEF, April 2009: Selected as a Flagship Project by South African Department of Energy and showcased at UNFCCC COP 17, Durban, Republic of South Africa 2009: Recipient of Eskom eta Award for Excellence in Energy Efficiency in Human Settlements, Residential Sector, Witsand Sustainable Human Settlement Honored by UNFCCC, COP4, for having a best practice paradigm in affordable, energy efficient housing in the world From 2003 - 2008: PEER Africa and PEER Consultants, managed a pilot Green Loan program of $1,000,000 USD funded by the Global Environmental Facility and the International Finance Cooperation in South Africa for the purposes of on-lending that pool of money to increase the participation of small, medium, and micro previously disenfranchised businesses in the “green” marketplace.

Mothusi Guy, Dr. Abron, and Ambassador Ebrahim Rasool accepting the AAEE Superior Achievement Award for the Wtisand Project.

Rev. Desmond Tutu holding energy-efficient light bulb to promote the energy savings campaign in Capetown.

PEER Africa and its extensive affiliate network of local professional service providers have several decades of collaborative experience successfully introducing new sustainable solutions that address Energy Efficiency and Renewable Energy (EERE). This collaboration is a part of our holistic approach to stakeholder empowerment-based development in South Africa and throughout the South African Development Community (SADC) member countries. Through our ongoing work in South Africa we have learned firsthand the market entry requirements, certifications, policies, standard contractual terms, and norms that must be addressed to successfully bring any foreign technology/product to market. We have developed strong relationships with commercial EERE service providers, regional Further Education and Training (FET) Colleges, the Skills Education Training Authority (SETA), Eskom, NGOs, and South African ministries, such as the Department of Human Settlements, Trade and Industry, Treasury, Science and Technology, the Department of Environmental Affairs and the Department of Energy. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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Representative Projects Performance of Monitoring, Independent Validation and Verification of GHG Emission Reductions New Construction, South Africa In 2000, PEER prepared a proposal to the Utility Efficiency Partnership (IUEP) to monitor a representative sampling of the iEEECO™ homes designed using software developed by the USDOE called Energy 10. The intent was to determine scientifically if the houses were performing as designed. PEER was awarded the grant and the modeling, evaluation measurement and verification (EM&V) study was done by a third party – the School of Architecture and the Built Environment at the University of Witsvatersrand. The outcome of the study proved that the homes were behaving as planned and thus the physical outcome matched or verified what the occupants were saying. Through this study, PEER also obtained a patent for the modeling equipment for the modeling equipment it designed and was used in the homes to collect the data for analysis (i.e. indoor and outdoor temperature, electrical use in the home, continuous carbon monoxide and carbon dioxide levels inside the house, wet bulb and dry bulb temperature inside the house and humidity).

Pilot Green Loan Program PEER conceived and managed a pilot Green Loan program funded by the Global Environmental Facility and the International Finance Cooperation. The loan provided bridge financing for small, medium and micro-businesses seeking to deliver energy efficient housing, weatherize existing houses and sell energy efficient products and services. That pilot program is similar to the PACE programs being implemented in the US today. The difference however is that the loans are made to the contractors and not the beneficiaries of the services.

Ms. Yvonne Welem, Witsand Leader, presenting Eskom eta Award for “Excellence in Residential Energy Efficiency” to the Witsand Councillor.

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Power Load and GHG Reduction in the Residential Sector, Cape Town, March 2006 – September 2006 In February 2006, Cape Town experienced its worst power failure ever. The city had lost 75% of its power due to a failure on the grid. The city had to immediately remove 400 MW of unnecessary power usage from the grid. PEER, working as an ESCO, was hired by Eskom to field a team of workers to reduce the residential load to the grid in the downtown area. Mobilizing a team of over 300, including historically excluded youth workers, PEER initiated a residential weatherization and retrofitting program that consisted of two elements – a swapping program and an installation program. The swapping program consisted of swapping incandescent light bulbs with CFLs, and regular showerheads for the low flow models. Swapping was done primarily through installations in homes. Additionally, booths were set up at local shopping malls to exchange bulbs and fixtures for residents whose homes were not on the direct install list. The installation program consisted of going into homes to replace the incandescent bulbs with CFLs, changing out the regular shower heads to the low flow models, turning down the thermostats on the hot water heaters and swimming pools and insulating the hot water piping. Within 5 months this weatherization program had removed 40 MW unnecessary power use from the electrical grid in the city. The largest load reduction was due to the replacement of the showerheads. All projects involved the training of workers to perform the retrofits, upgrades and swaps, to manage the warehousing and record keeping of products, equipment, tools used to perform the retrofits, to perform equipment and resource audits and project QA/QC activities, to prepare the reports, and perform other necessary project functions.

EM&V Measurement & Analysis Tools and Results

Witsand iEEECO™ Integrated Human Settlement Project in Cape Town Our iEEECO™ methodology is transformative, utilizing local resources to solve many problems associated with upgrading and transforming informal settlements to resilient, sustainable communities and the delivery of basic municipal services. In 1995, faced with 5 million homeless families living in deplorable, unsafe, unhealthy informal settlements with no jobs and nothing but despair, Nelson Mandela instituted the housing subsidy grant program, giving each incomequalified family the opportunity to have a home. Many saw an opportunity to make a dollar, but PEER Africa saw an opportunity to demonstrate that sustainable communities could be created out of rubble, poor people could learn to take care of their own informal settlement upgrade projects, and humans and the environment would benefit. The introduction of the South Africa national housing subsidy funding created a market for low cost housing and soon enabled the formulation of a bottom-up economic recovery approach and not just the provision of homes. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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CHAPTER 15: DESIGNING THE NET ZERO ENERGY BUILDING

By Charles J. Kibert, Ph.D., P.E. Powell Center for Construction & Environment Rinker School of Building Construction University of Florida

DESIGNING THE NET ZERO ENERGY BUILDING This chapter offers a definition of Net Zero Energy Buildings (nZEB) based largely on experience and conditions in the United States of America (USA) and current technologies available. The chapter takes a case study approach with a focus on large office buildings; however the principles can be applied to all types of buildings. We also highlight the significant comparisons of European and USA policies regarding the definitions, incentives and regulations that guide the move towards Net Zero Energy Buildings. The focus falls on grid connected PV systems, noting that South Africa is still working towards grid connections. The location of the PV system is subject to an analysis of the building and the building site. We overview the goals for the nZEB energy production system and assess the solar potential, once we have chosen the compatible solar technology and overcome the financial feasibility and Voila! A net zero energy building. Currently a building can be defined as a Net Zero Energy Building (nZEB) when the energy consumption of the building is equal to the energy production supplied to the grid connection from on-site renewable energy resources. A synonym is an â&#x20AC;&#x2DC;energy self-sufficient buildingâ&#x20AC;&#x2122;. If energy production exceeds the energy consumption you have a net positive energy building.

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Why Net Zero Energy Buildings (nZEB)? • Net Zero promotes a shift to renewable energy systems that have a negligible carbon footprint • Today 50% reductions in energy consumption below code are commonplace: hyper low energy buildings • A sustainable built environment needs justifiable, rational targets or budgets and the Net Zero Energy concept suggests that the energy target be the budget provided by nature. • Forces a fundamental rethinking of high-performance green buildings and sustainable construction • Bold and easy to understand concept: Zero is the new Green.

Range of Net Zero Energy Definitions Net Zero Energy Building Energy Consumption = energy production (grid connection) from renewable resources Net Zero Site Energy Building (metered energy) Produces at least as much energy as it uses in a year, when accounted for at the site. Net Zero Source Energy Building (primary energy) Produces at least as much energy as it uses in year, when accounted for at the source. Net Zero Costs Building The utility pays the building owner an amount equal to what the owner pays the utility Net Zero Emissions Building Produces as much emissions-free renewable energy as it uses from emissionsproducing energy sources Net-Zero Exergy Building Both quantity and quality of energy is taken into consideration Net-Zero Carbon Building Zero operational carbon gas generation Nearly Net-Zero Building (EU) Nearly enough renewable energy? And believe it or not even more! Net zero embodied energy, transportation…

Other definitions: • Renewable Energy USA: electrical energy derived from renewable resources (US EPAct 2005) EU: energy derived from renewable resources and net energy from heat pumping (EU Directive 2009/8/EC) • Building energy Performance USA: all energy consumption including plug loads EU: all energy consumption excluding plug loads

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There are also several sub categories of Net Zero Buildings based on the location of the renewable energy systems.

nZEB Location Designators Location of Renewable Energy System

Designator

Building footprint renewable energy

ZEB-A

Building site renewable energy

ZEB-B

Offsite resources used on site for renewable energy

ZEB-C

Offsite purchased renewable energy

ZEB-D

Lewis Center, Oberlin College, Ohio

ZEBA?

NO! ZEBB!

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These are all NZE Buildings? Production Kwh/m2/a

300

A poor performer, not NZE, ample site 200

A good performer, not NZE except with site Excellent performer, NZE, building roof only (<4 stories)

100

200

300

Consumption Kwh/m2/a

Note: Two story office buildings, all are NZE by definition?

NREL RSF – The Largest US nZEB (2011)

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ZEBB

ZEB DESIGNATOR ?

ZEBC NREL RSF Building

ZEB DESIGNATOR ?

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Aerial View of Lady Bird Johnson Middle SchoolWind Energy

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NASA Propellants North Facility (2013) Cape Canaveral, Florida

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The nZEB Pyramid Renewable energy High performance HVAC Reduce interior loads

High performance envelope

Passive solar design

Goal Setting for a nZEB 1. Very low energy building – How low is low? 300 Kwh/m2-a? 200? 100? 50? – Energy accounting? Site? Source? Exergy? Embodied? Transportation? 2. Renewable energy: source and location – On-site, off-site, both? – Property of building owner? Contracted? Grid purchased? 3. Net Zero targets – Net zero or net positive (to what degree)? Annually? Monthly? – Utility behavior and regulations • FiT programs • Net metering • Premium vs. Retail vs. Wholesale vs. Avoided cost 4. Financially feasibility a. Tax Incentives? b. Subsidies? c. Depreciation?

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State of PV Technology Best Research-Cell Efficiencies

:lNREL

Multijunction Cells (2·terniinal.monolithic) T Three·tunction (concentrator} v Three-junction (non-concentrat0<) •T11101unction (concentrator ) “Two1unction (non concentrat0<j oFour-jundion0< more (llOf1<XJncentrator) Slngle·Junction GaAs 6Single crystal .!IConcentrator V Thin·film crystal Crystalline SiCells • Single crystal (non·concentrat0<) a Single crystal (ooncentrator) o Multiaystalline + Thiel< SI film •Sihconhete<ootructures(HIT) V Thin-filmcrystal

Thin·Fllm Technologies •Cu(ln.Ga)Se; OCdTe oAmorphous SLH (stabilized) •Naoo-,micro-, poly.SI o Multijunction polycrystalline Emerging PV oDye-sensltized cells •Organic cells {va•M1ypes1 •Organic tandemceRs •Inorganic cells OQuantum dot cells

28 24 20 16 12 8 4 1985

Glitter size crystalline silicon PV cells (Sandia National Laboratory)

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The Mainstay: Thick Film PV

Energy efficiency for thick-film solar cells (max) monocrystalline silicon 25% polycrystalline silicon 20% Cost: below ($0.80 /watt)

Solar lnsolation in South Africa South Africa, Lesotho and Swaziland Annual sum of global horizontal irradiation,average 1994-2010

< 1600

1700

1800

100

200 km

224

1900

2000

2100

2200

2300 > kWh/m2

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Photovoltaic Solar Resource: United States- Spain – Germany Annual average solar resource data are for a solar collector oriented towards the south at a tilt = local latitude. The data for Hawaii and the 48 contiguous states are derived from a model developed at SUNY/Albany using geostationary weather satellite data for the period 1998-2005. The data for Alaska are arrived from a 40-km satellite and surface cloud cover database for the period 1985-1991 (NREL, 2003). The data for Germany and Spain were acquired from the Joint Research Centre of the European Commission and is the yearly sum of global irradiation on an optimally-inclined surface for the period 1981-1990.

Q’j Mai nl and USA

Fl H awaifUSA

{‘C]Spain

Hawaii United States

Mainland United States

Germany

Ui::::! Spain

States and Countries are shown to scale, except Alaska.

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Some Heuristics • • • • •

• •

Optimum tilt angle is latitude, optimum azimuth 0o For a roof, in general, 70%-80% of area can be PV panels, remainder is spacing to prevent self-shading, access for maintenance. Note: unless specifically designed around PV placement Building facades, parking garages, and ground parking provide other possibilities for installation Standard Test Conditions (STC): solar irradiance of 1,000 W/m² with zero angle of incidence, solar spectrum of 1.5 air mass and 25°C cell temperature. PV modules degrade due to temperature and age and due to electronics, connections, and wiring. – Temperature coefficient: -0.5%/°C (typical) above STC – Aging coefficient: -1% efficiency loss/year – Derate Factor = 0.77 is standard (wiring, connections, inverters, storage) Best large scale panel efficiency today: 25% monocrystalline Typical efficiency is about 20%

BOE: Energy Output, Sun Hours/Day • • •

An area experiencing 1800 kWh/m2/year has about 4.9 kWh/m2/day solar insolation This can also be expressed as 4.9 Sun Hours where a Sun Hour is 1 hour of solar insolation with 1 kW intensity. Note: PvWatts indicates Sun Hours explicitly Use of Sun Hours allows BOE calculations Annual energy output = Array peak power x sun hours x 365 x derate factor(s)

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Case Study • • • • • • • •

Design a net zero, 4 story building in Durban, Class A office building Site 100 x 100 m, 10,000 m2 Building footprint is 20 x 50 m (4000 m2), building centered on site E-W and 20 m from southern edge Tilt roof available for PV system, 10o, azimuth = 0o Low energy building: 100 kWh/m2/a ZEB A or B building, 4.9 sun hours Net zero or slightly net positive on an annual basis Power system: technical and financial – Select good polycrystalline panels with 20% eﬃciency – 250 watts, 1.0m x 1.5 m – FiT = 2 x retail electricity rate – 30% tax credit – $3.50/W installed, includes PV panels and BOP

Perspective

Roof pitched at 10°, 28 rows, 30 panels per row, 1.5 x 1.0 m panels

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North Elevation

East Elevation

BOE Scoping and Sizing • • • • • • •

Roof area available : 1,015 m2 Panels: 250 watt peak power, 1.5 m x 1.0 m panels Array: 28 rows of 30 panels = 840 panels Peak power output = 840 x 250 watts = 210 kW Annual energy = 210 Kw x 4.9 hour/day x 365 days/a = 376,000 kWh/a With derating = 376,000 x 0.77 x 0.90 = 261,000 kWh/a Check PV Watts! with same data = 260,000 kWh/a

AC Energy & Cost Savings 228

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Ok, Now What? • •

Energy generation: 260,000 kWh Building energy consumption: 50 m x 20 m x 4 stories = 4,000 m2 4,000 m2 x 100 kWh/m2/a = 400,000 kWh 400,000 kWh >> 260,000 kWh Preliminary conclusions: – Cannot be net zero under these conditions – Net zero for a two story building, double floor area – If we opt for a 50 kWh design 4,000 mw x 50 kWh/m2/a = 200,000 kWh (net +) – Opt for additional PV on the building and parking lot to increase array size to match annual energy consumption If BOE calcs look promising, run more detailed simulations

•

Insolation vs. Efficiency vs. Output 100 kWh/m2 building 2000 1800

PV Efficiency

1600

PV Output, kWh/m2/yr

1400 1200

Durban/Jax

1000 800 600 4

400

3 2 1

200 0

1500

2000

3000

2500

No. of Stories at 100 kWh/m2

3500

Solar Insolation Kwh/m2/yr

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Downtown Gainesville, Florida

Some BOE Economics • • • • • •

Assume 4 stories, 100 kWh design, use site and façade as needed PV panels cost: << $1.00/watt, say $0.80 BOP cost: use $2.50/watt Array cost: 210 kW x $3,300/kW = $693,000 30% tax credit, accelerated depreciation Electricity Rates: – Retail Rate Rate: $0.15/kWh – Rate for excess production: $0.05/kWh (avoided cost) – FiT: $0.30

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LCC Parameters Term of LCC (years)

Loan Rate (%)

5.0%

Array Size (kW)

210

Loan Period (yrs)

Panel Cost ($/kW)

$ 800.00

Discount Rate (%)

1.5%

B239OP Cost ($/kW)

$ 2,500.00

Tax Credit

30%

Array Cost ($)

$ 693,000.00

Depreciation (y1)

50%

Energy Cost ($/kW)

$0.30

Depreciation (y2)

12.5%

Energy Inflation (%/year)

5.0%

Depreciation (y3)

12.5%

Energy Consumed (kWh)

400,000

Depreciation (y4)

12.5%

Total Annual Energy Cost ($)

$ 120,000.00

Depreciation (y5)

12.5%

M& I (% annually)

1.0%

Tax Bracket (%)

35%

General Inflation (%/year)

1.50%

LCC Base Case Results Year

Loan

0 1

Tax Credit

Depreciate

Energy Value

I&M Costs

Net Cost $ 207,900.00

$ 207,900.00

$ 84,893.00

$ 126,000.00

$ 7,034.00

$ 114,112.00

$ 112,426.00

$ 320,326.00

$ 207,900.00 $89,747.00

PV Net

Cumulative

Breakeven

$89,747.00

$ 21,223.00

$ 132,300.00

$ 7,139.00

$ 56,637.00

$ 54,975.00

$ 375,301.00

$89,747.00

$ 21,223.00

$ 138,915.00

$ 7,247.00

$ 63,144.00

$ 60,386.00

$ 435,687.00

$89,747.00

$ 21,223.00

$ 145,861.00

$ 7,355.00

$ 69,982.00

$ 65,936.00

$ 501,623.00

$89,747.00

$ 21,223.00

$ 153,154.00

$ 7,466.00

$ 77,164.00

$ 71,628.00

$ 573,251.00

$89,747.00

$ 160,811.00

$ 7,578.00

$ 63,486.00

$ 58,061.00

$ 631,312.00

$89,747.00

$ 168,852.00

$ 7,691.00

$ 71,414.00

$ 64,346.00

$ 695,658.00

YES

$89,747.00

$ 177,295.00

$ 7,807.00

$ 79,741.00

$ 70,787.00

$ 766,445.00

YES

$89,747.00

$ 186,159.00

$ 7,924.00

$ 88,488.00

$ 77,391.00

$ 843,836.00

YES

$89,747.00

$ 195,467.00

$ 8,043.00

$ 97,677.00

$ 84,165.00

$ 928,001.00

YES

$ 205,241.00

$ 8,163.00

$ 197,078.00

$ 167,306.00

$ 1,095,307.00

YES

$ 215,503.00

$ 8,286.00

$ 207,217.00

$ 173,314.00

$ 1,268,621.00

YES

$ 226,278.00

$ 8,410.00

$ 217,868.00

$ 179,529.00

$ 1,448,150.00

YES

$ 237,592.00

$ 8,536.00

$ 229,056.00

$ 185,959.00

$ 1,634,109.00

YES

$ 249,471.00

$ 8,664.00

$ 240,807.00

$ 192,610.00

$ 1,826,719.00

YES

$ 261,945.00

$ 8,794.00

$ 253,151.00

$ 199,491.00

$ 2,026,210.00

YES

$ 275,042.00

$ 8,926.00

$ 266,116.00

$ 206,609.00

$ 2,232,819.00

YES

$ 288,794.00

$ 9,060.00

$ 279,734.00

$ 213,972.00

$ 2,446,791.00

YES

$ 303,234.00

$ 9,196.00

$ 294,038.00

$ 221,589.00

$ 2,668,380.00

YES

$ 318,396.00

$ 9,334.00

$ 309,062.00

$ 229,469.00

$ 2,897,849.00

YES

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Sensitivity Analysis Sensitivity Analysis

Breakeven

Base Case FiT)

7 years

Net Metering e=0.15/kWh

16 years

BOP increase to $3000/kWh

10 years

Energy Inflation 4%/year

8 years

U.S. Initiatives • – – –

Federal Government The NZE Commercial Buildings Initiative The NZE Commercial Building Consortium President Obama’s Executive Order 13514, 5 Oct 2009

• – – – –

State/Local California Energy Commission: Recommends NZE residential by 2020 and commercial by 2030 Austin, Texas: Requires zero energy single family homes by 2015 Gainesville, Florida: Feed-In Tariff (FIT) (2009) Renewable Portfolio Standards (RPS)

• – –

Professional Organizations American Institute of Architects (Architecture 2030 Challenge) ASHRAE (Vision 2020)

• –

Commercial General Electric: Net Zero Energy Home project to support NZE deployment

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California NZEB Policy • • • • •

Big Bold Energy Efficiency Strategy (BBEES) ZNE Policy (2010, revised in 2011) All new residential construction in California will be zero net energy or equivalent to zero net energy by 2020; All new commercial construction in California will be zero net energy or equivalent to zero net energy by 2030; Or equivalent allows off-site renewable energy generation so that all buildings can be NZ Achieved by deep levels of energy efficiency and clean distributed generation

2011 revision added “or equivalent”

US Market Diffusion for nZEBs

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net-zero ENERGY HOME COALITION

Near Net Zero Energy - EU • • • •

Near Net Zero Energy Buildings Energy Performance of Building Directive (EPBD) Revised April 2010 In 2020, all new buildings, including offices and residences, will be required to operate annually as near zero energy buildings. Consequently, it will be necessary to achieve energy reduction for the more than 80% of the energy that is consumed in buildings for heating, cooling, hot water supply, ventilation, and lighting systems.

Net Zero is an extremely attractive proposition. The fact that it is government policy in the USA and Europe is an indication that it is the future of building design. It demonstrates sustainability in its purest sense, living within natrure’s resources. It fosters a major shift away from fossil fuel power systems. As the prices continue to drop it becomes increasingly financially attractive. It is a disincentive for the carbon generation.

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PROFILE: OESLI

OESLI & SUSTAINABLE ENERGY Optimised Energy Solutions (OESLI cc.) is an engineering consulting company which specialises in supplying solutions to unique energy requirements. Since its inception in 1992 OESLI gained valuable experience in project management, design, engineering, execution, operation and maintenance by being involved in major and minor projects. Whether it is for large corporate companies wanting to reduce the carbon footprint on the environment, farming cost effectively, or the individual wanting to avoid the continuous cost increase in electricity & other energy sources, OESLI has a solution. With the gradual climate change and the immense negative impact it has on the economy as well as the well being of our future generations, it is now evident that apart from electricity, an alternative and sustainable way of transferring energy is becoming a major priority, as the cost of electricity and the constant availability thereof is becoming an increasingly challenging factor that concerns every individual & company, large & small. OESLI is a supplier of energy saving solutions through innovative engineering, using natural elements & established technologies to reduce cost & increase long term value. OESLI is not bound to a specific supplier or product, only to the limits of engineering imagination, which creates an environment with endless energy solutions. The OESLI approach is to provide our clients with a one-stop turnkey solution for the following: • Project Management Services. • Engineering Audits, Renewable energy R&D projects, Thermodynamics. • Heat transfer & Fluid ﬂow related designs. • Thermal & Mechanical designs of heat exchangers, process engineering of refrigeration cycles. • Oﬀ-grid power & energy related applications utilizing Solar power & Heat pumps. • Co-and-Tri-generation waste heat recovery projects. • Domestic hot water needs. • Summer & Winter comfort conditions. • Industrial , Commercial & Residential energy solutions for all heating & cooling requirements. All these technologies are orchestrated into a symphony of spectacular solutions, implemented through modern well proven, world class project management principles & procedures, all under one roof. OESLI Contact Details Anton Kotze Managing Director Cell: 082 604 5244 | E-mail: antonk@oesli.co.za SUSTAINABLE ENERGY RESOURCE HANDBOOK

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PROFILE: GREENCON SOLAR TECHNOLOGIES

COGENERATION USING SOLAR THERMAL TECHNOLOGY BMW (SA), under guidance from their Munich based head office, have begun the in-troduction of energy saving technologies and systems aimed at reducing reliance on car-bon based, nonrenewable energy sources. Various interventions have been implemented by BMW engineers and designers to reduce the consumption of their world leading vehi-cles; the same ideals are being extended to a number of their fabrication plants around the world. In South Africa, BMW has their manufacturing plant situated in Rosslyn, northwest of Pretoria. The Rosslyn plant identified their paint application facility as a major consumer of energy, particularly gas used to heat processes for paint application to the 3-series vehi-cles manufactured at the plant. Due to BMW’s factory location and design, the option of using the high solar radiation levels common to that part of the country, made the option for solar viable and feasible. Greencon Solar Technologies, based in Johannesburg, were asked to help design and implement a large scale solar thermal collector field covering 200m² on the roof of the paint plant at Rosslyn. Some of the challenges faced were structural integrity of the roof, which had not originally been designed to hold the extra weight a 200m²-bank of collectors would add to the structural load. Many of these difficulties were overcome by the introduction of cutting edge solar thermal collectors. Using the latest technology in pumped collector system’s that combine both vacuum tube technology and reflective backing materials, ensured that the collectors could be laid flat on the surface of the factory roof. Structural engineers tasked with ap-proving the extra load on the roof, sanctioned this additional weight because the flat appli-cation meant the sail load of the panels was negligible. Further technical complications also included the high sensitivity the plant has to for-eign materials such a silicone. As such, Greencon had to assemble all solar panels with materials to ensure compliance with BMW tests facilities. BMW requested comprehensive data logging and recording equipment for the whole system. This information was to be made available to their engineers at any time. Resol Thermal Controllers was selected as the technology of choice. Resol controllers would control all pump activation and speed control as well as record and transmit data to BMW’s cloud based server, which in turn would enable Greencon and BMW technicians to have 24/7 visibility of the system from anywhere in the world. The results to date have far exceeded expectations and the transition from test facility to full scale plant is now under discussion. Provisions have been made for easy expansion of the current facility, and seamless integration into the existing boiler line. BMW (SA) in partnership with Greencon Solar Technologies continue work towards ensuring fabrication facilities follow the same modern vehicle ethos of more “efficient dy-namic” use of energy. Greencon Solar Technologies www.greencon.co.za | info@greencon.co.za | 0861-47-33-62

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PROFILE: GREENCON SOLAR TECHNOLOGIES

COGENERATION USING SOLAR THERMAL TECHNOLOGY BMW(SA) have begun the introduction of energy saving technologies and systems aimed at reducing reliance on carbon based, non-renewable energy sources. Various interventions have been implemented by BMW Engineers and Designers to reduce the consumption of their world leading vehicles; the same ideals are being extended to a number of their fabrication plants around the world. In South Africa, BMW has their manufacturing plant situated in Rosslyn, northwest of Pretoria. The Rosslyn plant identified their paint application facility as a major consumer of energy, particularly gas used to heat processes for paint application to the 3-Series vehicles manufactured at the plant. Due to BMW’s factory location and design, the option of using the high solar radiation levels common to theat part of the country, made the option for solar viable and feasible. Greencon Solar Technologies, based in Johannesburg, were asked to help design and implement a large scale solar thermal collector field covering 200m2 on the roof of the paint plant at Rosslyn. Some of the challenges faced were structural integrity of the roof, which had not originally been designed to hold the extra weight a 200m2-bank of collectors would add to the structural load. Many of these difficulties were overcome by the introduction of cutting edge solar thermal collectors. Using the latest technology in pumped collector system’s that combine both vacuum tube technology and reflective backing materials, ensured that the collectors could be laid flat on the surface of the factory roof. Structural engineers tasked with approving the extra load on the roof, sanctioned this additional weight because the flat application meant the sail load of the panels was negligible. Further technical complications also included the high sensitivity the plant has to foreign material such as silicone. As such, Greencon had to assemble all solar panels with materials to ensure compliance with BMW test facilities. BMW requested comprehensive data logging and recording equipment for the whole system. The information was to be made available to their engineers at any time. Resol Thermal Controllers was selected as the technology of choice. Resol controllers would control all pump activation and speed control as well as record and tranmit data to BMW’s could based server, which in turn would enable Greencon and BMW technicians to have 24/7 visibility of the system from anywhere in the world. The results to date have far exceeded expectations and the transition from test facility to full scale plant is now under discussion. Provisions have been made for easy expansion of current facility, and seamless integration into the existing boiler line. BMW (SA) in partnership with Greencom Solar Technologies continue work towards ensuring fabrication facilities follow the same modern vehicle ethos of more “efficient dynamic” use of energy. Greencon Solar Technologies www.greencon.co.za | info@greencon.co.za | 0861-47-33-62 SUSTAINABLE ENERGY RESOURCE HANDBOOK

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PROFILE: IJS ELECTRICAL AND CONSTRUCTION PROJECTS

IJS ELECTRICAL AND CONSTRUCTION PROJECTS ď&#x161;ŽPVTď&#x161;Ż LTD IJS Electrical and Construction Projects (Pty) Ltd was established in 2010 and registered in 2012 as a result of the various ,yet specific demands in the industry. IJS Electrical and Construction Projects (Pty) Ltd discovered that many problems and compromising arose from insufficient and often incorrect exchange of information regarding the requirements or needs of the client in relation to the abilities or qualifications of the service provider. The Electrical and Construction industry has become very competitive over the past 5 years and very often ,companies are guided by the cost alone, while neglecting to consider the importance of the services required. IJS Electrical and Construction Projects (Pty) Ltd offer the best possible at the rates negotiated with our clients and based on their specific requirements and needs. Description of the Business We plan to market a complete line of electrical and construction products and services. Targeted Market and Customers Our customers will be discount department chain stores, residential and commercial clients. Growth Trends In This Business The market for household electrical and commercial services is growing as population grows and new household formationsplace. This is especially true in expanding economies as the standards of living make further gains. Also household purchases are increasingly being made through large chain discount retailers which I plan to focus on serving. Pricing Power We will not initially enjoy pricing power in marketing widget accessories. Discount chains and commercial clients will be primarily interested in price. Our ultimate goal is to build a line so unique and promote it so effectively that consumers will be willing to pay a premium. Our long-term objective is to build a market that is not entirely based on price.

EQUIPMENT All equipment necessary for the carrying out of the Electrical and Construction requirements

OUR MISSION, VISION, VALUES AND PHILOSOPHY OUR VISION To be the best, not necessarily the biggest provider of Electrical and Construction Services in South Africa .IJS Electrical and Construction Projects has the vision to extend its services nationally. We currently operate in Gauteng. IJS Electrical & Construction Projects wants to set precedents for other Electrical & Construction Companies with regards to expertise and professionalism . We aim to form strategic with strategic alliances with business partners that share our vision i.e

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PROFILE: IJS ELECTRICAL AND CONSTRUCTION PROJECTS

• Provide the highest quality services • Give top services delivery in a quick and efficient manner • Maintain and expand an outstanding reputation as being the best Electrical & Construction company OUR MISSION • We aim to always offer a welcoming environment • We remain cheerful, courteous ,well trained and focused on pleasing our clients • We strive to become the first destination of choice for electrical & construction services • To offer our staff a workplace where they can prosper and grow in a dignified, fun and rewarding manner.

OUR VALUES Integrity An IJS Electrical & Construction Projects employee is honest and therefore trusted to work unsupervised on the customer’s premises and with valuables. IJS Electrical & Construction Projects never compromises in its demand for integrity also includes openly expressing one’s opinion, reporting improprieties and not withholding information. Vigilance Professionalism entails seeing, hearing and evaluating. An IJS Electrical & Construction Projects employee is always attentive and often notices things others don’t. Their vigilance is necessary in order to be aware of potential risks or incidents that may take place on the customer’s premises. Helpfulness When needed, an IJS Electrical & Construction Projects employee will lend assistance ,even if it is not directly related to his or her job. As part of an ongoing effort to make life easier, an IJS Electrical & Construction Projects employee will always help if an incident occurs that requires intervention.

BUSINESS PHILOSOPHY Our business philosophy is to create value and improve quality for you .The three components of our philosophy are: Services - Provide Optimal Service Create a mutual beneficial partnership Business - Build Meaningful Partnerships Create a business relationship that is a win – win Client - Understand Clients Needs Build an Electrical & Construction program that is in line with your expectations and profile Tel:

011 039 6979 Homemarkers Village 011 025 7398 Office No. 08 Fax: 086 6111 080 Turf Club Street Mobile: 072 0777 836 Turfontein E-mail: ijsprojects12@gmail.com 2191 Address Homemarkers Village, Office Number 08, Turf Club Street , Turfontein, 2091 SUSTAINABLE ENERGY RESOURCE HANDBOOK

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Treetops / SuperEnergy team at work – Villiersdorp

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CHAPTER 16: ENERGY TRANSFORMATION  WHAT WILL IT TAKE?

James Dalrymple BA LLB LLM Director-SuperEnergy

ENERGY TRANSFORMATION  WHAT WILL IT TAKE? According to a report by Frost & Sullivan, Solar Photovoltaic (PV) generated electricity could be cheaper than Eskom generated electricity by 2020. The report states that the cost of renewable energy technology is declining, whereas the cost of coal-based Eskom electricity continues to rise sharply. It is expected that grid parity for solar PV will be reached by 2018.1 Grid parity is the point at which purchasing electricity generated by solar PV is equal to the price of purchasing electricity from the grid (Eskom). This is an important concept because it means that it makes financial sense to install solar PV both for domestic and commercial properties without government subsidisation. Earlier this year South Africa became one of the 10 founding members of the Renewables Club, which is a political initiative with a worldwide goal of transforming the energy system. (Founding members are China, Denmark, France, Germany, India, Morocco, South Africa, Tonga, the United Arab Emirates, the United Kingdom, and the Director-General of the International Renewable Energy Agency (IRENA)). The 10 Renewables Club members currently account for more than 40% of global investments in renewable energy.2 In South Africa the main government agency driving Renewable Energy projects is the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Their website states that South Africa has a high level of renewable energy potential and presently has in place a target of 10,000 giggawatts of renewable energy.3 So from having had almost no large scale renewable projects on the table in 2011 South Africa could become one of the fastest-growing renewable energy markets in the world. At present, less than 1% of the country’s energy comes from renewables; this is expected to increase to about 3% by 2014, rising to 12% by 2020 and 17% by 2030.4

Energy Revolution However the big question is - does the South African Government’s truly believe in renewable energy or are these initiatives window dressing? As some of the more weary energy experts surmise, the South African government knows that, if it wants money from the World Bank, it has to show it is looking at meaningful ways to reduce its carbon emissions and to improve its energy efficiency.5 Another concern is that it seems the governments, focus is on security of supply rather than broadening access to electricity. Currently buyers can only purchase electricity if they are part of the REIPPPP, but the process is complex and expensive so only large renewable projects with corporate and international funding can participate. If the government

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was serious about increasing access to small scale renewable energy generation they would, arguably, introduce a feed-in tariff or at least allow net metering (discussed below). Historically South Africa has relied almost exclusively on coal (and a small amount of nuclear power) to grow its economy and meet its energy demands. Two new mega coal stations (Medupi 4,764 MW; and Kusile 4,800 MW) are being built by Eskom while at the same time the government is promoting a nuclear build programme. Coal and nuclear based power is strongly lobbied for and political interests promote these industries. Local governments have not changed their revenue structures to allow the energy system to transform. Renewable energy is often maligned as being expensive and in need of government subsidisation, however coal and nuclear energy have been subsidised for many years without issue.6 South Africa has the opportunity to leapfrog fossil-fuel based energy development by embarking on an ambitious renewable energy and energy efficiency programme. As discussed above, the Renewables Club aims to transform the energy system. Is the Government ready to support an energy revolution or do they intend to continue their support of the coal and fossil-fuel industries with some flashy but insufficient renewable projects to look good?

Renewable Energy Baseload Capacity It is the general perception that renewable energy does not have the capacity to provide baseload energy that is ultimately the barrier to energy transformation, and not real practical or technical constraints. Committed political will is vital and fundamentally, it is up to the government to set processes and policies in place that would eliminate the obstacles and foster the right economic conditions to stimulate a competitive renewable energy industry.7

Vodacom Building â&#x20AC;&#x201C; Cape Town

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Cable sizes for 450kWp In order to achieve this, the government needs to shift its belief and make renewable energy the backbone of the national electricity grid with coal and nuclear as the backup. Without going into too much detail it is important to understand how the grid functions in order to radically change our electricity supply from exhaustible fossil fuel based energy to a limitless supply of renewable energy. Baseload can be described as the minimum level of power required over 24 hours by the collective users â&#x20AC;&#x201C; the minimum demand. The baseload is the level that remains unchanged for that day whereas the load varies as the day progresses with typically peakload occurring in the morning and afternoon but also varying from season to season. The electricity distribution centre has to ensure that the supply feeding the grid is balanced by the demand on the grid. The baseload tends to be similar day to day and the load is also reasonably constant. However it is difficult for coal and nuclear power stations to cope with peak demand because they are designed to run at full load (to keep costs down) and are generally only shut-down for scheduled maintenance or emergency repairs. Coal stations require 8 hours from cold start-up to full load so switching off and restarting in less than 8 hours cannot be done.8 The objective of energy transformation would be to increase renewable energy generation to cope with the peak demands whilst initially utilising coal and nuclear for baseload demand. If renewable energy plants take priority and baseload plants follow the remaining demand requirements there will be a resulting lowering of their average load factor. This will fundamentally change the economics of nuclear and coal supply dynamics, which are currently based on high load factor operation.9 SUSTAINABLE ENERGY RESOURCE HANDBOOK

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The current system with large centralised coal powered stations and a large centralised grid is old fashioned and unable to easily follow demand fluctuations. The traditional grid is also vulnerable because a failure at a big centralised station could have a severe effect on the grid, whereas a grid with distributed plants is more robust as single plant failures have a negligible effect on the grid as a whole.10 In contrast, a combination of renewable resources consisting of solar PV, wind, hydroelectric, biomass and wave/tidal energy is available most of the time. Smart technology can track and manage energy use patterns and provide flexible power that follows demand through the day. Decentralised smaller renewable energy plants and co-generation can be combined with energy management to balance supply with demand. Renewable energy 24/7 is technically and economically viable, it just requires the right policy and commercial investment, as well as an interconnected smart grid over a large area. Regardless of the energy source the grid requires upgrading and strengthening. This will give security of supply and economic efficiency.11 The concerns over whether South Africa can afford renewable energy stem from the idea that renewable energy is expensive whilst coal and nuclear technologies are cheap. However South Africa’s experience is demonstrating that the old centralised coal based system is neither cheap nor reliable. Even more importantly the continuation of fossil-fuel based power production creates negative economic effects because of the lack of a stable electricity supply and the creation of limited employment. The obvious external costs, pollution and climate change, of coal and nuclear power production also need to be considered. Therefore, the question is: How can South Africa afford not to transform towards a renewable energy-based system? The falling cost of renewable plants compared to the rising cost of new nuclear and coal plants means the cheaper investment is renewable energy.12

Treetops / SuperEnergy team – Piketberg

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Local Government and Net Metering In order to transform the energy system, local government support is just as important. The Renewable energy industry in South Africa already does not need feed-in tariffs, all it needs is the implementation of net metering. Net metering means that during the day when solar modules are generating electricity any excess power will go into the grid and the meter will run backwards. So you not only save by using power generated on your roof, you also reduce your bill by having your meter run backwards when you export your excess electricity. At night you will draw power from the grid and your meter will run forwards again as normal. This is the simplest way to effectively get paid for solar PV generation. With the exception of Nelson Mandela Bay Metro all other municipalities have not adopted net metering policies. The three main reasons given are: 1. 2. 3.

Municipalities will lose revenue; The Grid Tie inverter might reverse feed the grid when the grid is switched off, eg for maintenance, and an electrician working on the line might get electrocuted; The grid might become destabilised.

1. Municipalities will lose revenue The municipality’s loss of revenue is the main impediment to their support of renewable energy – they stand to lose money, it is as simple as that. The other two issues are technical and easily overcome. Municipalities buy the electricity from Eskom and then sell it on to households with a large mark-up. Farmers, factories and mines – all big consumers – buy their electricity directly from Eskom. They pay a lot less than households, who have to pay additional costs for their electricity from the municipality. The municipalities seem to be against renewable energy, however Eskom is supportive because it saves them a lot of power which they can direct elsewhere. The debate therefore is not what would be the best energy system for the country but how to protect municipal revenues. This is extremely short-sighted and doesn’t take into account the economic benefits of an affordable stable decentralised energy supply. According to recent research released by Sustainable Energy Africa (SEA), the City of Cape Town could experience total electricity revenue losses of up to 4.5% and net revenue losses of 22% in the next ten years if energy efficiency measures and distributed renewable energy interventions are implemented at expected rates. A portion of electricity revenue in most municipalities is used in the general coffers for the entire municipality to function and deliver services to poor areas.13 Even so it is unlikely that municipalities will be able to discourage the uptake of renewable energy since there is a general trend towards adopting these interventions. It is therefore high time they started coming up with a better plan than being obstructive. The uptake in renewable energy has a number of benefits for the broader community of a municipality. In particular it benefits the local economy by keeping energy spend within the local municipality boundary instead of exporting energy payments outside of the municipality to Eskom.14 SUSTAINABLE ENERGY RESOURCE HANDBOOK

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One of the ways that municipalities propose to defend against revenue loss is to decouple charges for energy used from charges to use the local electricity network. Most municipalities currently include electricity department and local network costs into the kWh fee charged to consumers. Instead municipalities want to impose a monthly fee to use the local network that covers municipal costs. However this totally defeats the objective - which is to encourage the uptake of renewable energy generation. A fixed charge for network use will significantly discourage the adoption of solar PV, as savings for the customer are much less than if they are charged the normal residential tariff with net metering. Such a scheme may not avert a revenue crunch anyway, as households may well choose to still install solar PV but limit its generation to ‘own use’ 15 i.e. not feed back into the grid at any time, the result being a lose-lose scenerio. 2. Islanding Solar PV electricity generation presents no danger to the grid or to maintenance staff because the system has an inverter grid guard which will switch off the system if there is no AC power source. In other words if there is a power failure, the system will shut down and no power will enter the grid, which will allow work to be carried out safely. Unfortunately this means that a grid tied solar PV system does not work during a power cut. You would need storage capacity (batteries) to keep the lights on during a blackout.16

Treetops / SuperEnergy team at work – Villiersdorp

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3. The grid might become destabilised Large users of renewable energy such as Germany and Belgium notice problems on their grids when the renewable energy component reaches 20% of electricity supply, but it has taken these countries 20 years to get to this point and this with the incentive of feed-in tariffs. These are technical issues and Germany is well on its way to solving them. South Africa doubtless, therefore, will have a blueprint by the time renewable energy reaches 20% of the electricity supply, which is at least 10 years away.17

Conclusion South Africa has no real option but to rethink its energy strategy. With electricity scarcity, rising coal prices and blackouts, economic growth cannot be encouraged unless the country explores renewable energy. The true costs of coal and nuclear are not reflected in the pricing of these modes of energy production. Coal and nuclear have long benefited from taxpayer funded subsidies. The renewable energy industry has not had the benefit of this leveraging. In addition, the vast external costs of coal and nuclear make them unaffordable. External costs include less job intensity, substantial future expenses due to climate change impacts, and health expenses related to pollution as well as huge water shortage implications. The safety risks and long waste storage requirements of nuclear, as well as the cost of new builds, are unaffordable. These factors have not been factored into the financial or social cost of these methods of energy production.18 There needs to be a definite policy and investment shift from coal and nuclear towards renewable energy. The Department of Energy needs to announce more ambitious targets that could see the electricity sector leading the stated drive of the Renewables Club to transform the energy system. The aim should be 49% of electricity produced from renewable sources by 2030, increasing to 94% by 2050.19 The renewable energy industry needs adequate financial and economic incentives to stimulate local manufacturing technology and to increase the number of investors in the industry. As start-up costs are high it is essential there is government backing. In addition, the grey area around grid connections needs to be cleared away, beginning with a clear net metering programme that allows for the inclusion of the small to medium renewable energy power producers. This would include a restructuring of the municipal revenue process removing the dependency on electricity tariffs. There is some good news on this in that Nelson Mandela Bay residents are able to grid connect their renewable energy systems to the national electricity grid. This initiative is called the Small Scale Embedded Generation (SSEG) Scheme and is the result of a partnership between the municipality and the National Energy Regulator of South Africa (NERSA) in approving systems of up to 100 kW to be grid connected.20 This is an important step as the SSEG scheme has the potential to significantly impact on the electricity cost to the consumer. The initiative allows consumers to install a green energy solution which would independently meet most of their energy needs while still offering the stability of the national grid.21 The 100 kW restriction is however unfortunate and arbitrary but it is a start and a net metering framework needs to be rolled out nationally.

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Recommendations •

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• •

• • • •

•

Government commitment to energy decisions must show a clear move away from fossil fuels and there must be synchronization of government policy throughout the various departments addressing energy issues. Adequate financial and economic incentives need to be in place to allow for stimulating local manufacturing of renewable energy technology equipment and to increase the number of investors in the industry. This must begin with greater renewable energy investment from the state utility Eskom. As start-up costs for renewable energy are high it is essential that there is government backing. The use of state funds must be directed towards investment in renewable energy and not coal or nuclear. Administrative deficiencies such as those experienced in the REIPPPP process need to be removed. Clarity is needed around the grid tie legislation, beginning with a clear national net metering programme that allows for the inclusion of the small to medium renewable energy power producers. Dedicated and maintained local content drivers must be in place to ensure that local investors, producers, manufacturers, and project developers gain experience. Improved access to the grid by independent power producers is required with grid priority given to renewable energy. Load management also needs to improve through the use of smart grid technology and decentralised energy systems. Government, namely Department of Energy (DoE) and Eskom, need to invest in Research and Developmemt (R&D) for renewable energy beyond current pilot projects and research, as well as storage and cheaper production methods. Eskom should produce a 20 year road map showing the utilities increased investment in renewable energy and away from coal and nuclear.22

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References 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.

http://www.pv-tech.org/news/ solar_energy_to_undercut_coal_in_south_africa_frost_sullivan http://cleantechnica.com/2013/06/01/renewables-club-founded-by-10-countries/ http://www.energy.gov.za/ http://mg.co.za/article/2013-10-25-00-mzansi-turns-over-a-renewable-leaf http://mg.co.za/article/2013-10-25-00-mzansi-turns-over-a-renewable-leaf Koplow, D & Kretzmann, S. 2010. G20 Fossil-fuel Subsidy Phase Out: A review of current Gaps and Needed Changes to Achieve Success. November 2010. p.9 http://www.greenpeace.org/africa/Global/africa/publications/climate/ RenewableEnergyReport_PoweringTheFuture.pdf Van De Putte, J; Short, R 2011. Battle of the Grids. How Europe can go 100% renewable and phase out dirty energy. Van De Putte, J; Short, R 2011. Battle of the Grids. How Europe can go 100% renewable and phase out dirty energy. Diesendorf, M. 2010. The Base Load Fallacy and other Fallacies disseminated by Renewable Energy Deniers. Energy Science Coalition, March 2010. p. 2, 3, 7 Ackerman, T; Tröster, E; Short, R; Teske, S. 2009, [r]enewables 24/7, Infrastructure needed to save the climate. http://www.nmbbusinesschamber.co.za/blog/posts/ bay-electricity-consumers-the-first-to-go-green http://urbanearth.co.za/articles/energy-efficiency-and-decentralised-energy-generationcould-negatively-impact-municipal http://mypowerstation-sa.blogspot.com/2012/02/david-lipschitz-on-net-metering-2012-02. html http://urbanearth.co.za/articles/energy-efficiency-and-decentralised-energy-generationcould-negatively-impact-municipal http://mypowerstation-sa.blogspot.com/2012/02/david-lipschitz-on-net-metering-2012-02. html http://mypowerstation-sa.blogspot.com/2012/02/david-lipschitz-on-net-metering-2012-02. html http://www.greenpeace.org/africa/Global/africa/publications/climate/ RenewableEnergyReport_PoweringTheFuture.pdf http://www.greenpeace.org/africa/Global/africa/publications/climate/ RenewableEnergyReport_PoweringTheFuture.pdf http://www.nmbbusinesschamber.co.za/blog/posts/ bay-electricity-consumers-the-first-to-go-green http://www.nmbbusinesschamber.co.za/blog/posts/ bay-electricity-consumers-the-first-to-go-green http://www.greenpeace.org/africa/Global/africa/publications/climate/ RenewableEnergyReport_PoweringTheFuture.pdf

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PROFILE: O.B. GREEN ENERGY

O.B. GREEN ENERGY O.B. Green Energy (Pty) Ltd is a 100% black owned renewable energy company that aims to apply innovative technologies towards achieving South Africa’s Renewable Energy target as set by the 2002 White paper from the Department of Minerals and Energy. As a proudly South African Company, O.B. Green Energy is a strong advocate for attaining the national goals of expanding the role of renewable energy, not just as an energy source but as an integral part of the economic, environmental and social aims of the country through the stimulation of the economy, job creation, rural empowerment and the reduction of greenhouse gas emissions. O.B. Green Energy is not only involved in large-scale renewable energy projects but also in renewable technologies that are suited to rural and remote areas, where energy is often crucial in human development.

SERVICES • Renewable Energy production • Green building • Distribution of Solar Panels • Sales and Distribution of Solar Energy products Renewable Energy Production:Renewable energy has enormous potential to deliver energy to meet the needs of South Africa’s growing economy, creating employment opportunities and new industries. We are in the process embarking on large scale projects that provide an alternative energy source by using Wind Energy, Solar Power and Biomass. Green Building:A green building is a building that is energy efficient, resource efficient and environmentally responsible-it incorporates design, construction and operational practices that significantly

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reduce or eliminate the negative impact of development on the environment and occupants. We construct buildings in accordance with the Green Building Council of South Africa (GBCSA) Green Star rating System. We also provide low cost green rebuilding ideas for buildings that are already and want to be “greened” (more energy efficient). We aim to ensure that all buildings are built and operated in an environmentally sustainable way. Distribution of Solar Panels:We source, distribute and supply solar panels and individual photovoltaic cells. Distribution of Solar Energy products:O.B. Green Energy sells and distributes solar power products such as Solar LED Street Lamps; Portable solar energy charges (for phones, laptops etc.);solar regulators; Inverters; Movable Emergency Power Systems, Solar cookers; solar water heating kits and Solar Lights amongst other products. Renewable Energy Projects:In its endeavour to be one of South Africa’s Independent Power Producer (IPP) O.B. Green Energy is in the process of embarking on large scale projects for private power generation in the country.

Solar Farm O.B. Green Energy plans to bid in the next bid window for the Government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPP). We plan on developing a Solar photovoltaic farm in order to help reach the REIPPP targets the procurement of 3 725 MW of power to be generated from renewable energy by 2015.

Waste to Energy Production Gauteng Province needs to formulate initiatives that address the issues of excessive consumption of energy in buildings, carbon emissions, disposal of waste, sustainable procurement and water consumption. The disposal of waste is a direct cause of degradation of landscapes and the properties of soils, as well as cause contamination of subterranean water. On the other hand, the impact associated with the disposal of waste (use of resources, consumption of energy, processes, pollution, etc.) is socially and environmentally no profitable; however, it is definitely perceived in a different way when a better use is made of those waste materials. In this context, OB Green Energy (Pty) Ltd is embracing an ambitious project aimed at the processing of waste for recycling as well as a source of environmentally friendly energy. SUSTAINABLE ENERGY RESOURCE HANDBOOK

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CHAPTER 17: EFFICIENT OPERATION OF MUNICIPAL WASTE WATER TREATMENT PLANT ANAEROBIC DIGESTERS FOR THE GENERATION OF ELECTRICAL ENERGY

Mauritz Lindeque Carbon Neutral Approach

EFFICIENT OPERATION OF MUNICIPAL WASTE WATER TREATMENT PLANT ANAEROBIC DIGESTERS FOR THE GENERATION OF ELECTRICAL ENERGY Anaerobic digestion (AD) and the generation of biogas from waste to generate electricity have become very popular as of late. This is also a process that has been used in South Africa for the treatment of Municipal waste since the 1930 (Ross et al, 1992). There are a growing number of companies and people offering their services and expertise to develop and improve anaerobic digesters. This includes digesters that range in size and scale from household to municipal scale. Often operators or owners of digesters complain that the process does not work in its normal state and that they are looking for additives to improve the performance of the digester. This is so that they can reduce the return on investment time of the infrastructure that they have installed. What sometimes happen is that the process is oversold and claims are made that the digester for two people can produce more gas than what the owner will know what to do with (Jantsch and Mattiatiason, 2003). If one looks at the basics of anaerobic digestion, the energy balance available from the feedstock and what energy can be harvested, then it should be possible to operate a digester optimally without additives and other interventions. The energy that can be produced from a digester is in a form of a gas that contains a percentage of a basic hydrocarbon such as methane (CH4). This percentage of CH4 will be dependent on the performance of the digester (Sasse, 1998). A digester that performs badly will still produce biogas but this gas will have a lower percentage of CH4 and a greater percentage of carbon dioxide (CO2)

The Basic Composition of Biogas is as Follows Methane (CH4) = 50 – 75% Carbon Dioxide (CO2) = 25 – 45% Carbon Monoxide (CO) = 0 – 0.3% Nitrogen (N2) = 2 – 5% Hydrogen (H2) = 0 – 3% Hydrogen Sulphide (H2S) = 00.1 - 0.5% Oxygen (O2) = Traces

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There are a number of factors that will dictate the performance of the digester. These factors include the environment where the digestion process occurs and the composition of the feedstock that is fed into the digester (Van Haandel et al, 2007). The environment where the digestion process occurs is an environment free of atmospheric oxygen. Other conditions that affect the performance of the digester will include the pH, temperature, Carbon to Nitrogen ration (C:N), loading rate and the method of mixing (Ripley et al, 1992; Ross et al, 1992; Fulford, 2006). When these conditions are monitored and controlled it means that the sludge retention time (SRT) can be as short as 16 days on a municipal scale digester. If these parameters are not controlled then it means that the SRT has to be extended to as long as 40 days for the sludge to be stabilized. The SRT then has a direct impact on the size of the digester. Controlling these parameters will also improve the quality of the gas that is produced. The quality of the gas is dictated by the calorific value in the gas and this is a direct product of the percentage of CH4 that is present in the gas. Municipal waste water treatment plants (MWWTP) have the potential of being the biggest producers of biogas in South Africa. There are over 350 MWWTP in the country that use AD as a process for treating waste. This then has an electrical energy potential of ± 1500 MW installed capacity. It may seem that this could alleviate some of the problems that we are having with the national grid supply. It may not be that simple though. Before we go and “mothball” some of our coal fired power stations we need to have a closer look at the energy that can be produced from one standard AD at a municipal waste water treatment plant. The average size of a digester can contain two million litres of sludge.

Figure 1 A typical example of a 2 mil lt AD at a MWWTP

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Biogas cannot be generated through the anaerobic process from inorganic material. The energy contained in organic material is measured by looking at the chemical oxygen demand (COD) of the organic material. There are four stages that the waste or sludge have to undergo to facilitate digestion and produce biogas as a by-product. These stages include: Hydrolysis – Complex polymers are broken down into monomers to make them soluble in water Acidogenesis – Proteins are broken down into amino acids, fatty acids and sugars Acetogenesis – Amino acids and long chain fatty acids are broken down into volatile fatty acids, the main source for the generation of biogas Methanogenesis - Fatty acids are broken down at this stage to form biogas For the waste to be completely stabilized it means that it has to undergo all four stages (Fulford, 2006). Each of the stages produces a by-product that forms the basis for the formation of the next stage. The hydrolysis stage is the rate limiting stage in the whole process. Incomplete hydrolysis will result in a low percentage of CH4. This means that the COD caught up in the internals of the cells have not been properly exposed to allow for complete breakdown and then the formation of a high quality biogas. Woody plant material cannot be properly digested in an AD due to the high levels of lignocellulose. This simply means that the bacteria responsible for the hydrolysis stage cannot break down the cell walls to allow for the exposure of the COD to the acidogenesis bacteria. This is a similar problem to the process that occurs in some animal stomachs. Bacteria are responsible for breaking down the food and producing the energy in a form that the animal can use. If the material is too fibrous it requires a further mechanical action in the form of rumination to break the material down.

Figure 2 The rumination process in a sheep

Source (Sheep and Goat Breeding)

If this was to happen in the practice of industrial AD it would require more energy for that mechanical action, thereby increasing the parasitic load on the energy that is produced. Some of the other parasitic loads that may place a burden on the AD include equipment such as pumps and mixing systems. The pumps are used to transport the waste around the MWWTP in pipes and the mixers are required to facilitate a homogeneous mixing within the digester.

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As discussed earlier there are some parameters that, when monitored and controlled can improve the operation of the AD. These parameters can also have an effect on the energy efficiency of the load (parasitic) placed on the system.

Mixing •

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•

Mixing the digester contents to a homogeneous state will reduce the formation of a scum layer. This is a “crust” that forms at the top of the sludge. This thickened layer may cause blockages in the pipework of the digester and may also trap some of the organic feedstock that will reduce the performance of the digester (Ross et al, 1992; Lee et al,1995) As the gas is formed in the sludge, a non-mixed digester will trap the gas in the sludge until such time as the weight of the sludge cannot contain the gas anymore. The gas will then be released periodically in a “burp” like action. This will result in an inconsistent flow of gas from the digester. If a generator is operated from the gas that is produced and no gas collector is used to act as a buffer storage of the gas then it will result in an intermittent supply of gas Homogeneous mixing of the digester ensures that the new feedstock that is introduced into the digester comes into contact with the required bacteria that will initiate the digestion process more efficiently If the digester is heated then the mixing will facilitate a more efficient distribution of the thermal energy required for the heating As grit and other inorganic material may end up in the digester, mixing may assist in ensuring a reduced sedimentation on the floor of the digester. The gradual build-up of grit will reduce the volumetric capacity of the digester and will require an adjustment of the loading rate Mixing of the digester is one of the highest contributors to the parasitic load on the electricity supply, however an efficient mixing system does not require 24 hour operation and can be activated periodically to shave the peak energy demand from the system. The mixing system can be activated when: a. The digester is being loaded b. Temperature control is activated c. Sedimentation occurs

Loading The loading of an anaerobic digester is a daily process. It is an import part of the process and failure to adhere to the design loading rate will cause failure of the digestion process. Overloading the digester will cause an over production of volatile fatty acids (VFA) that will result in “souring” of the digester or an imbalance in the C:N ratio (Ripley et al, 1989). Underloading will result in starving of the methanogens resulting in poor gas production. A simple way to explain the loading rate of the digester is to look at the SRT. If the SRT is 20 days then effectively every day a 20th of the total volume of the digester needs to be loaded to the digester. This loading can occur over a 24 hour period though and does not have to be at once. Spreading the load out over a 24 hour period will be beneficial for efficient operation in that; • Smaller or scattered loads do not shock the system with cold sludge that require high amounts of thermal energy to control

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•

• •

Smaller scattered volumes also allow for a more even gas production during the day. If no buffer storage of gas is available then the gas production from such a method will be more consistent during a 24 hour period Scattered loading may be beneficial in controlling the pH of the digester Loading pumps also require electrical energy and a scattered load will also assist in shaving off the peak energy demand by spreading the use of the pumps over a 24 hour period

Figure 3 Gas production comparing a batch type loading with scattered Loading

Temperature There are different temperatures that ADs can be operated at. These will also dictate the hydraulic retention time (HRT) of the digester. A digester that operates at an atmospheric temperature, for instance, is entirely dependent on natural environmental temperature fluctuations. The bacteria that operate in this temperature range are very robust and can withstand large temperature fluctuations. The metabolism of the bacteria is not as high as bacteria that operate in higher temperature ranges though and therefore require a longer retention time for the sludge (Ross et al, 1992; Zupancic and Ross, 2003). Digesters that operate at temperatures between 30°C and 37°C are in the mesophylic bacteria range. These are bacteria naturally occuring in nature and is also the same temperature of most mammal bodies. This means that the bacteria that occur in a cow’s stomachs would be a good seed medium for mesophylic digesters. Although the bacteria that occur in the mesophylic range are more sensitive to temperature fluctuations the bacteria still cope well with temperature fluctuations of 2°C above and below the set temperature of the digester. In this range the SRT of the digester with a homogeneous mixing regime will be reduced to half that of a digester at atmospheric temperature. The metabolism of the bacteria is faster than that of atmospheric bacteria and this temperature range will also assist with the breakdown of some fats and greases that can affect the gas production and cause blockages in digesters (Ross, et al; 1992).

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PROFILE: CAIA

THE CHEMICAL AND ALLIED INDUSTRIES’ ASSOCIATION The Chemical and Allied Industries’ Association (CAIA), which was established in 1994 and is affiliated to the International Council of Chemical Associations (ICCA), seeks to fulfil its primary mission of; • promoting the sound management of chemicals throughout their lifecycles, • promoting the sustainable development of the chemical industry through investment, and • promoting education and training to enhance the development of skills in the sector. CAIA’s mission cannot be achieved without the involvement of its member companies. Members sign a commitment to strive for the continual improvement of their safety, health and environmental performance with respect to products and processes – a commitment known around the world as the Responsible Care Pledge. Practiced in 57 countries, with 148 members in South Africa, the Responsible Care initiative is gaining momentum as a proactive approach to managing industry hazards. Responsible Care therefore provides CAIA with the means to ensure that member companies do their best in an industry which is often unforgiving when incidents occur. Commitment to the Responsible Care Pledge and associated activities therefore also contributes to the sustainable development of society and the economy, and encourages and facilitates the wide public dissemination of performance data as well as information about industry’s achievements and challenges. Energy efficiency is one of the core elements of the Responsible Care initiative and CAIA has been working with its members since 2003 on improving energy efficiency by exploring opportunities to participate in the activities of the South African National Cleaner Production Centre.

CAIA strives to represent the chemical and allied industries’ in South Africa by; • • • •

ensuring a balanced perception of its contribution to the South African economy, investigating and pursuing opportunities for growth and trade, fostering cooperation between companies, including small and developing businesses, publicising CAIA and member activities as widely as possible to create public awareness in terms of how the chemical industry is continually improving and committed to do so, • proactively consulting and advising government on the content and potential unintended consequences of proposed legislation through various channels (Business Unity South Africa, the National Economic Development and Labour Council and Parliamentary representation) where possible and appropriate, • promoting and representing the broad interests of the chemical and allied industries when engaging with government and stakeholders, and • engaging in relevant national and international forums and activities.

Membership is open to chemical manufacturers and traders as well as to organisations which provide a service to the chemical industry, such as hauliers and consultants. Please contact Glen Malherbe for more information. caiainfo@caia.co.za (011) 482 – 1671 262

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Bacteria that operate at temperatures ranging between 57°C to 65°C are called thermophylic bacteria and the ADs that operate at these temperatures are also called thermophylic digesters. Operating a digester at this range will have an even shorter SRT. The thermal energy required though to operate an AD at this temperature range can be as much as double that of a mesophylic digester. The bacteria in this temperature range are also very sensitive to temperature fluctuations and cannot withstand fluctuations of more than 0.6°C above and below the set temperature of the digester. Some of the additives that are used in the attempt to increase gas volume from ADs include dairy and abattoir waste. These are materials that contain high levels of fat and require that the digester operates at least in the mesophylic temperature range. The fatty material is well known to increase the volume of gas from a digester, however it does require that the digester is heated to at least 35°C. Therefore it is important that the total project is sized correctly from the start to allow for the operation of the digester and the electricity generation equipment without the additives to start off. If the fuel requirements from the generation equipment is too high to start off with then it will be difficult to operate the heat exchanger equipment sustainably to break down the fatty material. The thermal energy for the temperature management of the digester can be harvested from the gas or from technology that converts the gas to other forms of energy such as combined heat and power (CHP) plants. The energy that can be converted from this gas can take on any form. The energy potential in the gas will be 100% in its raw gaseous form. When the gas is used as a fuel to power equipment then that energy potential will decline depending on the efficiency of the technology used. Newton’s law on the conservation of energy states that energy cannot be created or destroyed. This means that the feedstock that is introduced to the digester can only produce as much energy as what is physically possible for the bacteria to break down and convert into the CH4 rich gas. The supply of the gas will also affect the performance of the technology that is responsible for converting the potential energy of the gas into a format that the operator may require. There are some parasitic loads that are required for the operation of the plant and also some energy that cannot be harvested due to technological shortcomings. A constant gas flow from a scattered loading regime will be more sustainable to operate a generator from an AD than a batch loaded digester. Converting the potential energy of the gas into electrical energy will require a generator with a reciprocating (internal combustion) engine or a turbine engine. The differences between these two technologies will not be discussed in this chapter and the conventional reciprocating engine will be used as an example. When the gas is used as a fuel to supply to an electrical engine then the components of gas that may cause harm to the generator will have to be removed. These components will include hydrogen sulphide (H2S) and siloxane. Siloxane is a combination of elements such as silicone, methane (CH4) and oxygen (O2). H2S will form a type of sulfuric acid that will be corrosive to the metal parts of the engine and cause damage to the lubricants that will shorten service intervals of the generator. Siloxane on the other hand will be deposited on the internal moving parts as an abrasive material that will result in premature wear and damage to moving parts. These components are mostly in a gaseous form and can be removed with scrubbers.

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PROFILE: GLASS PARTNERS

GLASS PARTNERS AT THE FOREFRONT OF GLASS INNOVATION

Glass Partners leads the way in innovation and facade solutions based on world glass standards. With the continuing drive toward green buildings, we at glass partners specialise in offering glass solutions to all of your glass in green building requirements. Our world class suppliers and manufacturing systems put us at the forefront of the local glass industry. With the introduction of high performance Low E coatings, we have been able to design a solution for any environment. Energy loss through glazing (windows) is the largest and most valuable loss in buildings and has major implications on energy consumption and peak heating and cooling loads. Windows are considered responsible for more than 50% of a building’s heat loss or gain.

Facts about heat loss in winter (In summer the heat loss shown in the diagram will be the opposite direction) The most accurate measure of heat loss is the U Value. This value measures the rate that the heat escapes through a window and is expressed in BTU’s per square foot per hour per degree Fahrenheit. It is affected by both the physical properties of the material and the difference in temperature on both sides of the glass. A lower U Value means fewer BTU’s are being lost through the window. Here’s how it works: 1/4” single pane glass has an average U Value of 1.06. This means that 1.06 BTU’s per square foot per hour escape through the glass. A window of 10 square feet is losing around 10,6 BTU’s per hour. If it is 70 degrees inside & 40 degrees outside, the heat loss is now 318 BTU’s (10.6 x 30 degrees) per hour.

Conclusion Reducing heat gain through the windows in the summer reduces energy consumption for cooling and reducing heat loss through the windows in the winter reduces energy consumption for heating. Energy inefficiency with windows should be a concern to everyone. The fact is utility costs are going to keep rising; it should be our top priority now to start reducing the consumption of utilities. The cleanest, greenest, cheapest, and most efficient energy is the energy you save! We at Glass Partners have analysed all available energy saving glass products and have come up the best thermo guard range to meet all of the industries energy saving requirements. Please contact us with any questions for energy saving glass. GLASS PARTNERS GAUTENG (PTY) LTD TEL: (011) 474 2550 | FAX: (011) 474 3252 | MOBILE: (082) 305 2804 | EMAIL: migaeld@glasspartners.co.za

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Once the gas is pre-treated through a scrubbing process then it can be introduced to the engine. The composition of the remaining gas will dictate the calorific value of the gas. The CO2 in the gas is an inert gas and does not contribute to the calorific value. The CH4 on the other hand is the basic hydrocarbon that does contribute to the calorific value of the gas/fuel. Burning the gas in the internal combustion engine will split the value of the gas into different types of energy. The mechanical energy will be the energy used for turning the generator shaft and thereby generating electrical energy. The remaining energy from the gas will be converted to thermal energy.

Figure 4 Breakdown CH4 rich biogas converted If only electrical energy is harvested then it makes for an inefficient operation. If the thermal energy is also harvested then it improves the overall efficiency of the operation. Areas where the thermal energy can be found include: • exhaust • water jacket • oil • intercooler From these parts of the engine it will be possible to harvest some of the thermal energy. However there is a percentage that is lost and difficult or impossible to harvest for alternative uses.

Figure 5 Different areas in the engine where thermal energy can be harvested SUSTAINABLE ENERGY RESOURCE HANDBOOK

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PROFILE: SET A SOLUTION

Reliable supplier of locally produced excellent and high performing clean energy and saving solutions; - Solar Home Systems (from entry-level to comprehensive systems, we can design and supply according to your energy needs) - Solar Lights (Street, Garden, Lantern to provide lighting for parks, streets and estates) - Solar Water Systems (Solar Geysers, Solar Pool Pumps, Solar Pressure pumps & Solar Borehole Pumps) - Solar training courses for beginners.

Visit our showroom at 197 Booysens Road, Selby, 2092 Contact us: Cell: 078 755 4554 Tel: 011 493 5280 Email: info@setasolution.co.za mandla@setasolution.co.za www.setasolution.co.za

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Calculating the potential energy that can be produced requires some knowledge of the feedstock. The feedstock that will be introduced into digesters at MWWTP will contain a large percentage of water. Centralised waste water treatment uses water as the medium to transport the organic material to the plant from the source. The solids in the sludge will rarely be more than 6% solids. Higher percentages make it difficult for pumps to move the sludge due to the density of the sludge. Of the 6% solids there will be parts that are inorganic and that will not be digested by the bacteria. This will include grit and material such as plastics that can be as high as 15% to 20% of the total suspended solids (TSS) composition. The solids in the sludge that can be digested are the volatile suspended solids or VSS. Once the composition of the waste is established some basic calculations can assist in the sizing of a waste to energy project. The basic COD that is available from water borne sanitation is 36gCOD/p/d. This will allow for the calculation of the energy potential from one person COD/p/d = 36

g/p/d

(George Ekema UCT)

64 gCod = MOL CH4 = 6.022 x 1023

(Avogadro’s number)

1MOL = 22.4 L CH4 (Avogadro’s Law) 1MOL CH4 = 890.8kJ Assume 64% of total gas = CH4 MOL/p/d = 0.56 = 12.54 L CH4 Total bio gas/p/d = 19.6 L/p/d @ 64%CH4 890.8 x 56.2% of MOL = 500.6 kJ/p/d = 130.2 watt-Hour/p/d of energy in raw gaseous form A basic 2 million litre digester can serve up to 67 000 people. With this in mind it is then possible to calculate that one 2 million litre digester can produce ± 1.3 million litres of gas at 65% CH4. When taking the calorific value of the gas into consideration it means that the potential chemical energy from the 2 million litre digester can amount to ± 9300 KwH. The conversion efficiency of most top of the range generation equipment that make use of reciprocating engines will be 35%. This means that 35% of the potential energy from the fuel that is introduced into the engine for operation will be converted to electrical energy and the rest of the energy will become thermal energy or be lost. Therefore, the generator that will be required for sustainable and efficient operation of a 2 million litre digester should not be greater than 130 kW. This should allow for a generator that can operate over 24 hours by using the available fuel that can be produced over that time. This should then be sufficient to allow for the mesophylic operation of a digester over the same period of time. Once this is possible then additives can be introduced to increase the volume of gas. An operation such as this should also not be reliant on just one generator as this will mean that the operation has a single point of failure that will result in unsustainable operation. It does become more cost effective if larger generators are installed but larger generators require greater volumes of fuel.

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PROFILE: SHUTTERS CAPE

SHUTTERS CAPE â&#x20AC;Ś..AT YOUR SERVICE!!!!! Shutters Cape offers an extensive range of Sun Shading Solutions such as Internal Blinds, Awnings, Aluminium & Wood Shutters, Paraflex Umbrellas as well as various types of Security Shutter Products. We are the exclusive South African Agents for high quality Roller Shutters and fully automated External Venetian Blinds manufactured by WAREMA in Germany. You are invited to visit our showroom to view the different products on display and browse through material & colour samples with expert advice is always close on hand.

We look forward to meeting you!!

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Some of this electrical energy will be required for the operation of the pumps and mixer that allows for the operation of the digester. The rest of the energy will then be available for use elsewhere. Municipal waste water treatment plants in general require vast amounts of energy for the treatment of waste water. One large metro in the Gauteng area can spend up to R1.5 million a month on electricity. The rate that they are charged at in general amounts to R0.77 cents/kWh. This can amount to 1,948,051 kWh per month. This rate is not fixed for the year as there are different rates for summer and winter peaks and off peaks. This value is then purely used as an exercise in general usage for a case study. When the potential electrical energy is calculated that can be generated from an AD at a MWWTP then it becomes clear that we should hold on to our coal fired power stations for a little while longer. The 130 kW installed capacity does not cover the 2.7 MW that is required by this one plant. Although there are ten digesters it still will not be sufficient to supply the plant with electricity and have spare to put into the national grid.

In Conclusion The energy potential from biogas generated at municipal waste water treatment plants can contribute greatly to the energy efficiency and autonomy of the plant. It will not replace the generation of electricity from small coal fired power stations though. There could potentially be capacity freed up from the electricity that will no longer be required. This will only be sustainable if the basics of the process are understood and the projects are sized correctly. The cost of the hardware in waste to energy projects requires return on those investments. Efficient and correct operation with conservative scoping will allow for sustainable operation and improved security of the investment. We as humans also have a responsibility to make sure that the waste products that we produce do not have a negative impact on our environment. Methane is a greenhouse gas that is 24 times more harmful to the environment than carbon dioxide NOAA (2008). There is a benefit to the gas in the fact that it is flammable. Burning the methane from our organic waste does not contribute to the net volume of carbon dioxide in the environment but mainly recycles the gas that was absorbed by the plants that we use as food crops.

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References Avogadro’s law. Amedeo Avogadro 1811 Fulford D (1998) Running a biogas programme: A handbook. London Intermediate technology publishing. George Ekema. Discussions with Professor George Ekema UCT 2010. Jantsch, TG. And Mattiason, B (2003). An automated spectrophotometric system for monitoring buffer capacity in anaerobic digestion. Water research, 38(17):3645-3650 Lee Sang Rak, Cho, Nam Kee and Maeng, Won Jai. (1995) Using the pressure of biogas created during anaerobic digestion as the source of mixing power. Journal of fermentation and bioengineering, 80(4):415-417 NOAA National Oceanic and Atmospheric Administration. United States Department of Commerce. Article published 2008. Available on the net. http://www.noaanews.noaa.gov/stories2008/20080423_methane.html (2011-11-25) Ripley, L.E., Boyle, W.C. and Converse, J.C. (1986). Improved alkalimetric monitoring for anaerobic digestion of high-strength wastes. Journal of water pollution control federation, 58(5):406-411 Ross, W.R., Novella, P.H., Pitt, A.J., Lund, P., Thomson, B.A., King, P.B., and Fawcett, K.S.(1992). Anaerobic digestion of waste water sludge: Operating guide. Water Research Commission of South Africa. Project no 390, Publication TT55/92. Pretoria. South Africa Sasse, L. (1988) Biogas plants. A publication of the Deutsches Zentrum FÜR Entwicklungstechnologien. Bremen, Germany Sheep and goat breeding. Available on the web. http://www.nzdl.org/gsdlmod?e=d-00000-00---off-0cdl--000----0-10-0---0---0direct-10---4-------0-1l--11-en-50---20-about---00-0-1-00-0-0-11-1-0utfZz-8-10&cl=CL1.35&d=HASHb0176fb1254ca42d75f41c.6.1&gc=1 Van Haandel, A. and Van Der Lubbe, J. (2007). Handbook Biological waste treatment, Chapter 8, Sludge treatment. Netherlands: Webshop waste water handbook. Pp. 378-379 Zupacnic, G.D. and Ros, M. (2003). Heat energy requirements in thermophylic anaerobic sludge digestion. Renewable energy, 28:2255-2267.

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PROFILE: SAIE

EMPOWERING SMALLSCALE FARMERS: HOW CAN THEY CONTRIBUTE TO THE GREEN ECONOMY? Minister of Agriculture Joemat-Pettersen has set a target of increasing the number of small-scale farmers from the current 200 000 to 500 000. This would seek to reverse a trend which sees rural dwellers abandoning agriculture as a means of livelihood and moving to the urban areas in search of employment. Impetus for the Minister’s target can be found in the pressure being applied to the major food retailers to include local small-scale farmers into their supply chain, prompting what one observer has called a “scramble for small farmers” driven by the retailers who need to sign them us as suppliers. Many challenges lie ahead in order for this important new trend to be sustainable. There are challenges of mindset, of skills development, achieving economies of scale, and crucially, land tenure among others. The South African Institute for Entrepreneurship has over the past 5 years trained subsistence farmers to make the transition towards viewing their land as an economic unit and learning to run it as an agri-enterprise. Of the 2000 farmers who have participated in our programs (the AgriPlanner Suite), about one third contribute to food security by feeding their family a healthy diet of fresh vegetables, one third sell to their local community, and the remaining third are supplying formal markets on a sustainable basis. Of the two groups who are trading (formally and informally) the average contribution from their enterprise to personal expenses is between R2 000 and R5 000 per month. The skills development challenge in our experience goes far deeper than learning how to grow vegetables. There needs to be a fundamental shift in mindset – away from low self-esteem, dependency and entitlement towards a positive and active engagement with

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the opportunities available to build an agricultural enterprise. Some of the fundamental elements in this shift include learning how to measure a plot of land, and therefore how to plan production so as to provide a steady supply to the client, and how to solve problems that inevitably arise along the road to success. Small scale farming is typically labour- intensive, uses animal traction, uses agrochemicals sparingly and supplies local markets. The result is reduced emissions due to the restricted use of fuel-driven machinery, and with the produce traveling shorter distances from farm to table, reduced carbon miles The latest B-BBEE Codes of practice have placed a higher premium on Skills Development and Enterprise and Supplier Development, which between them enable Corporates to earn 80% of their points towards the compliance target. They also impose penalties on companies which invest in Enterprises which are not sustainable. This opens up a route by which corporates are able to enhance their B-BBEE status by investing and upskilling sustainable agricultural enterprises and integrating them into supply chains. The South African Institute for Entrepreneurship plays a key role in providing tools and expertise to effect a change in skill levels and mindset which supports the establishment of a small scale agri-entrepreneurial sector. We believe the Ministerâ&#x20AC;&#x2122;s goal to be admirable, and would encourage a measured approach to ensure long-term sustainability of the small-scale agricultural sector. The enhanced economic development of the rural environment will in our view be accompanied by a positive shift towards a greener economy.

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ADVERTISERSâ&#x20AC;&#x2122; INDEX

AAAMSA Group ........................................................................... 195; 196; 197 African Sky Energy .......................................................................................... 14 Amathole District Municipality ................................................................ 2; 3 BASF Holdings South Africa (Pty) Ltd ..................................................... 274 Bevera Tech Engineering ................................................................... 276; 279 BKH Instruments CC ............................................................................. 190; 191 Bluescope Steel Southern Africa ................................... 114; 115; 116; 117 Central University of Technology - Free State .......................................172 Clear Sky Industries cc t/a Clear Sky Leds ...............................................123 Digital Energy Solutions CC ............................................................... 280; IBC Economic Development Solutions .............................................. 16; 26; 27 Emergent Energy ........................................................................ 187; 188; 189 Enviroplus Design ....................................................................................... 6; 12 Envisol .......................................................................................................... 74; 75 Escotek ..................................................................................................... 140;141 Genergy (Pty) Ltd ................................................................. 98; 175; 176; 177 Glass Partners Holdings (Pty) Ltd ..............................................................264 Greenconsulting ................................................................................... 238; 239 Grey Green Sustainable Energy Engineering ........................... 35; 36; 37 Hellerman Tyton (Pty) Ltd ......................................................................... 90;91 Holms & Friends ........................................................................................... 92;93 IJS Electrical CC ....................................................................................... 240; 241 IPC Industries CC ........................................................................................ 38; 39 Langkloof Bricks ........................................................................................... IFC; 1 LED Lighting SA .................................................................................. 51; 52; 53 Lumentech (Pty) Ltd ...................................................................................... 184 Mr Power ............................................................................................... 19; 20; 21 NCPC-SA ........................................................................................... 24; 254; 255 OB Green Energy .................................................................................. 252;253 Oesli CC ...............................................................................................................237 Peer Africa (Pty) Ltd .......................................................... 210; 211; 212; 213 Petroleum Agency .................................................................................... 54; 55 Real Time Energy ............................................................................................ 134 Sunscan ..................................................................................................... 100,101 Riso Africa ...............................................................................................165; OBC Saint-Gobain Construction Products (Pty) Ltd ........................................ 8 Set-a-Solution ..................................................................................................266 Shutterscape .......................................................................................... 268; 276 Sika South Africa (Pty) Ltd ........................................................................... 113

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PROFILE: SHUTTERS CAPE

EXTERNAL VENETIAN BLINDS HOW CAN WAREMA SUNSHADING CONTRIBUTE TO GREEN STAR RATINGS? A good amount of natural daylight and intelligent control of solar radiation are the hallmarks of the new generation of “green” buildings, and increasingly form part of building codes and objectives of organisations. A large portion of the sun’s rays penetrate through glass and is absorbed into the room. This direct radiation effect can cause discomfort for occupants, thus requiring airconditioning to cool down the building. Even on cold days, the sun’s effect (in the form of glare) can become quite uncomfortable. External Sunshading entirely overcomes these issues by means of deflecting a substantial portion of solar radiation and controlling flow of daylight. As a cost saving measure, clear glazing can be used, since it is no longer the glass, but the external Sunshading system, that is controlling the flow the solar radiation. It is common for external blinds to lower room temperatures by around 10 degrees. This means great savings on cooling costs and depending on location may remove the need for cooling altogether. An ideal combination for South Africa’s intense radiation is double glazing (highly effective in preventing winter heat loss) together with external shading to lower the heat gain. Buildings created with these measures enjoy a comfortable and stable temperature all year round. A product like WAREMA external venetian blinds provides complete control over solar gain. The blades are incrementally adjustable and coupled with a WAREMA control system track the path of the sun to optimize the interior condition. When the sun sensor measures that exterior conditions are dull, the blinds are retracted to maximise the penetration daylight!

Benefits: Increase room comfort! Enhance daylight! Save energy costs on cooling & artificial lighting! Reduce building costs! Get Green Star ratings! Unit 5, Nobel Park, Nobel Street, The Interchange, Somerset West Tel: 021 852 8785 | info@shutterscape.co.za www.shutterscape.co.za | Contact Person: Wolfgang Striebeck

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ADVERTISERSâ&#x20AC;&#x2122; INDEX

SMA Solar Technology ..................................................................................4; 5 Smart Solar .................................................................................................... 88;89 Solar Assist Pty Ltd ......................................................................................... 232 Solar Frontier GmbH ............................................................................ 128; 129 Solar Gateway ................................................................................................... 10 Solarport CC ............................................................................................ 158; 159 Solarworld Africa (Pty) Ltd ................................................................. 124; 125 South African Institute of Entrepreneurship ..................... 271; 272; 273 Soventix .............................................................................................................. 22 Spectrum Utility Management (Pty) Ltd ........................................... 76; 77 Star Newspapers ...................................................................................... 126; 127 Technopol .............................................................................................................48 The Chemical & Allied (CAIA) ..................................................................... 262 University of Johannesburg ................................................... 155; 156; 157 University of Pretoria ................................................................ 137; 138; 139 Xnovest Africa ......................................................................................... 166; 167

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PROFILE

BEVERATECH ENGINEERING Beveratech Engineering has grown from an Engineering company serving the wine,food and beverage, fishing- eďŹ&#x201E;uent industries to more recently Bio Gas, Bio Diesel, Solar and Wind Energy Sectors. We are currently involved in Bio Gas and Bio Diesel Projects and planning our own solar system, which will be marketed to business to cost effectively, changeover to Renewable Energy. Beveratech Engineering has extremely dedicated personnel to meet our clientele needs and deadlines. No challenge is too big for us to handle.

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PROFILE

WIND TOWERS We are proud to be part of South Africaâ&#x20AC;&#x2122;s movement to creating a greener country for us all. With more than 100 years of cumulative experience in various sectors of manufacturing,which include boiler and large tank manufacturing, rigging, fishmeal/stick water plant, canning equipment, pressure vessels, steam dryers, winemaking equipment and large range of other engineering products. The move towards building wind towers sections comes as a natural transgression for us and fits in with our core business.

BIO GAS

Teaming with an international Bio Gas company, Bereratech Engineering is now part of building bio gas plants in South Africa. Six plants are planned for manufacturing in 2014 and a further 10 plants in 2015. With our engineering background and manufacturing capabilities we are set to enter this market with our whole team involved.

BIO DIESEL

Beveratech Engineering is involved with the completion and commissioning of a prototype Bio Diesel plant for the Western Cape with commissioning and completion planned for early 2014. More plants are planned for 2014 and 2015. These plants are set to run on nearly any oil by-product, plastic, rubber and other Bio matter.

THE GREEN BUILDING HANDBOOK

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PROFILE: DIGITAL ENERGY SOLUTIONS CC

Introduction Digital Energy Solutions is the only Solar Lighting Solutions Company in the world, with a dedicated Research focus and patented developments based in Cape Town, South Africa, We provide energy efficiency solutions while harnessing leading solar, LED and wind technology. As dedicated Energy efficiency specialists with a focused research and testing facility, we have the specialist knowledge to evaluate energy efficiency options in an environment of changing technologies and a number of sub standard solutions which cannot easily be assessed. We have two key divisions: • DIGITAL ENERGY CONSULTING and • DIGITAL ENERGY MANUFACTURING AND INSTALATION

Digital Energy Consulting Digital energy consulting is the heart of our business and is where our strategy, research and development areas are housed. We have a skilled, experienced team with associations and partnerships all around the world to maintain our continuous development and understanding of Solar, LED, Lighting and other energy efficiency solutions.

Digital Energy Manufacturing and Installation With our team of energy efficiency specialists and technologically advanced manufacturing facility we are able to design and manufacture unique and specialized energy solution products for any speciﬁcation and application. Our products are designed and tested locally for the South African market and the African continent at large with Global patents on our technology. We have a range of products that cater for homes, informal settlements, commercial and public areas. Our systems are designed to run entirely from solar or wind generated power and thus not dependant on electrical power. As our dependence on electricity increases and the cost of electricity constantly increasing our products provide viable and cost effective alternative solutions to that of power companies in Africa.

Affiliations

Awards

2011 Finalist

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etaAwards 2010 Finalist

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Products EZYLight 3 Solar Product Specifications − Ezylight Solar 3 Controller − Cellphone charging Socket − 3 x 15LED Cluster Light with Maxi Prism Dome − Approx 6-8 hour’s battery life with a 2 day Backup − 12 Month Warranty * − NERSA Approved − Manufactured in South Africa EZYLight 5 Solar Product Specifications − Ezylight Solar Controller − Cellphone charging Socket − 5 x 15LED Cluster Light with Maxi Prism Dome − Approx 4 to 6 hour’s battery life with 2 days Backup − 12 Month Warranty * − NERSA Approved − Manufactured in South Africa EZYLight 10 Solar Product Specifications − Ezylight Solar Controller − Cellphone charging Socket − 10 x 15LED Cluster Light with Maxi Prism Dome − Approx 3 to 5 hour battery life with 1 day backup − Low Voltage battery disconnect feature − Optional Battery Expansion packs available − 12 Month Warranty * − NERSA Approved − Manufactured in South Africa EZYLight MiniPro and Pro Solar Units Product Specifications − Customized Solutions for any environment − Ezylight Weather Resistant Solar Controller − Day Night Sensor − Low Power Consumption − Expandable Multi Zone Switching and localised switching − Multitude arrays of 15LED Cluster Light with Maxi Prism Dome up to 100 Clusters − Up to 8 zones that can be individually controlled − 12 Month Warranty * − NERSA Approved − Manufactured in South Africa Digital Energy Solutions 697 Lansdowne Road, Lansdowne, Cape Town, South Africa, 7780 Tel: 27 21 7039315 | Fax: 0866036786

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