Sustainable energy resource handbook volume 2

Page 1

PROFILE

Africa could hold the solution to the world’s looming energy crisis. Find out how at the second annual premier Sustainable Energy Seminar 2011 at Emperors Palace (Johannesburg) on the 12th October 2011. “Over the next two decades, 90% of new resource development in oil and gas will be in the developing world, and much of that in Africa”. Global leading researchers, sector leaders, government representatives and stakeholders of the energy sector will engage and discuss pivotal energy related issues at the prestigious Sustainable Energy Seminar 2011. • International and national presentations from leading analysts, personalities and designers • Highly relevant plenary content for the local energy sectors The Seminar will draw from the incredible success of the inaugural Sustainable Energy Seminar 2010 that was held at the CSIR. Delegates and exhibitors who were looking to learn, network and to sell products and services received exceptional value at the information packed seminar.


PROFESSIONAL PROJECT PROFILE

The solution focused seminar brought together some of the country’s key energy stakeholders who play meaningful roles in either initiating energy efficiency and renewable energy projects and policy or specifying and manufacturing the products and technologies that change the way energy in South Africa is dealt with.

Be part of the solution! Join leading energy sector decision makers and relevant industry players at the premier Sustainable Energy Seminar 2011 where partnerships are forged and presentations continue to contribute practically to some of the most important energy and electricity discourses in South Africa. This year’s Seminar will again be the premier event for researchers, sector leaders, producers and developers to network and pave the way forward.

Limited opportunities!

Book now to avoid disappointment! Don’t miss out on early bird specials Sales@energy-resource.co.za www.energy-resource.co.za 021 447 4733 (217) Call for speakers info@energy-resource.co.za

Who should attend: • • • • • • • • • • • • • • • • • • • • • •

Large Energy consumers Major Energy stakeholders Independent Power Producers Property Owners and Developers Engineers Environmental Designers Urban and Town Planners Architects Building Certification Professionals Technologists Facilities Managers Plant Engineers Government Managers and Director Generals City Managers Municipal Managers Utilities managers and consultants Commercial Property Owners and Developers Heavy Industry Private Sector Heavy Industry Public / Parastatal /Mining Corporate Commercial Managers Academia and Research Institutes Councils and Voluntary Associations


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ENDORSEMENT MESSAGE

THE DEPARTMENT OF ENERGY The vision of the Department of Energy is to make adequate and affordable energy available to developing communities through a mix of providing alternative energy resources at a reasonable cost. The aim is to satisfy the basic needs of the developing sector and at the same time promote the effective utilisation of South Africa’s vast alternative energy sources. This target can be achieved mainly from production of renewable energy by grid, off-grid (a source of energy not connected to a grid) and bio-fuel facilities. The Department has the sole mandate to promote the use of renewable energy, initiate projects to advance the use of renewable energy and annually monitor the precise quantity of energy produced from renewable energy. Energy from renewable sources will be expected to make up a substantial 42% of all new electricity generation in South Africa over the next 20 years, following Cabinet approval of the country’s Integrated Resource Plan 2010 (IRP2010). South Africa needs to use all the energy resources available to it, but environmental issues need to be taken into account, the Department of Energy therefore support all role players that are playing a role in contributing towards more sustainable practices in the energy sector. The Department of Energy welcomes the launch of The Sustainable Energy Resource Handbook Volume 2 and endorses it.

THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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ENDORSEMENT MESSAGE

REEEP REEEP initiates and funds projects; targeted interventions in two specific areas that offer the greatest potential for developing the market for sustainable energy. That is, assisting governments in creating favourable regulatory and policy frameworks while also, promoting innovative finance and business models to activate the private sector. Both the public and private sector have great potential as clean energy generators. The installation of renewables can help in addressing fuel poverty, assist in securing a country’s energy supply for the future, and at the same time provide a steady source of revenue with good rates of return. As low carbon development continues to gain international prominence, there is a need for relevant stakeholders to develop strategies that not only focus on the provision of energy as a service but also climate change mitigation and adaption in the development of the localised green economy. This Sustainable Energy Handbook examines the kinds of initiatives that are particularly effective in promoting renewable energy and energy efficiency on the ground. They include the role of low-carbon energy business models, low-carbon energy in buildings, low carbon technologies and the role of specific regulation and broadbrush policy to this end. Understanding the scale of change required to faciliate the mass deployment of renewable energy and energy efficiency systems is vitally important and through the sustainable energy handbook; relevant stakeholders gain valuable insights and expertise on the “how to” in the transitioning to a low carbon development path.

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ENDORSEMENT MESSAGE

FORWARD

ENVIRONMENTAL GOODS AND THE ENVIRONMENTAL GOODS SERVICES FORUM OF SOUTH AND SERVICES AFRICA FORUM FORWARD

The latest Integrated Resource Planother forcountries, electricity (IRP2010), In South Africa - as in many oil is our number one import. However, purchase. More than 90% of approved in early-2011, makesit isaa grudge significant departure from

ENVIRONMENTAL GOODS AND

the world’s transport is dependent on it.

previous electricity plans by including almostOF 18GW of renewable SERVICES FORUM SOUTH energy in the plans for the country’s new energy supply over the Until 2000, oil prices only exceeded $24 per barrel in times of AFRICA next 20 years. war or conflict in the Middle East. Today the price is $80, after

aIn$140 spike in -2008, preceding global oil economic crisis. South Africa as in many otherthe countries, is our number The (people and countries) arepurchase. especiallyMore exposed theof onepoor import. However, it is a grudge than to 90% of oiltransport price the world’s is dependent on it. (NERSA) released At around the impact same time, theincreases. Energy Regulator

a draft set of revised tariffs for the yet-to-be-operationalized

When likeprices oil spills oil wars, $24 Peakper Oil,barrel climate Until factors 2000, oil onlyand exceeded inchange, times of

renewable energy tariff (REFIT) programme. While gas congestion and road deaths to the the mix, warflaring, orfeed-in conflict in the Middle East. Todayare theadded price is $80, after there is aspike clear imperative foramongst mobility moveeconomic beyond a 100a $140 in 2008, preceding thetorenewable global crisis. actual tariffs have been controversial energy year of oil-burning “horseless carriages”. exposed to the Thetradition poor (people and countries) are especially impact of oil price increases. of public consultation, they do reflect the fact thewas renewable At the time of the 1970s energy crisis, Sweden the world’s most oil-dependent industrialized nation. Since then the When factors like oil spills and oil wars, Peak Oil, climate change, energy is getting cheaper - fast. In fact, outside of solar-based country has reduced its oil dependence to to 32% its gas flaring, congestion and road deathsfrom are 77% added theofmix, technologies, all of the proposed new feed-in tariffs are lower energy plans to be anmobility oil-free society bybeyond 2020. there issupply. a clearItimperative for to move a 100-

developers and remain subject to change following a process

year tradition oftariff oil-burning “horseless than the average electricity projected by carriages”. the IRP for the end The energy consumption per person in New York is a quarter that of the as a1970s whole,energy largelycrisis, due Sweden to the fact that city At the timeUSA of the was thethe world’s will start to help saveoil-dependent electricity costs 10 years. ismost compact and serviced by awithin well-integrated public industrialized nation. Since transport then the network. country has reduced its oil dependence from 77% to 32% of its

Peet du Plooy, Chairperson EGSF South Africa

Peet du Plooy, Chairperson EGSF South Africa

of this decade. This means that these forms of renewable energy

energy supply. It plans to be an oil-free society by 2020.

As winter approaches, South Africans face the threat - once more Beyond challenging the nature, efficiency and equity of cities

- of forced load-shedding. Energy per saving initiatives and infrastructure, theperson sustainable mobility revolution Thetransport energy consumption in New Yorkincluding is a quarter offers exciting opportunity innovation, like smart, that of the water USA as aheaters whole, largely due to theripple fact that the city the installationalso of solar andfor geyser control renewable and smart public traffic systems. is compactenergy-powered and serviced byvehicles a well-integrated transport

in the residential sectors and more wide-ranging savings within network.

The Sustainable Mobility Handbook a view of the industry are picking up, but not quickly enoughoffers to meet national economic opportunity that can be found amidst the necessity ofand transforming transport in athe way that catersmobility for the revolution evolving transport infrastructure, sustainable imbalance amid recovering economic growth. needs of our People and Planet. also offers exciting opportunity for innovation, like smart, challenging the nature, efficiency and equity of cities targets or moveBeyond the country out of its precarious demand-supply

renewable energy-powered vehicles and smart traffic systems. The Environmental Goods and Services Forum of South Action on a cleaner energy future remains central toaddition addressing Africa welcomes and endorses this valuable The Sustainable Mobility Handbook offers a view to of the the the country’s far-above-average greenhouse gas emissions. Sustainability Handbook series. economic opportunity that can be found amidst the necessity of transforming transport in a way that caters for the evolving needs of our People and Planet. THE SUSTAINABLE TRANSPORT AND MOBILITY HANDBOOK

The contributions in this Handbook look at the technology

3

The imperatives EnvironmentaltoGoods and Services Forum South options and policy propel South Africa intoofa new, Africa welcomes and endorses this valuable addition to the secure and prosperous era of Sustainable Energy. Its publication Sustainability Handbook series.

is welcomed by the EGS Forum as a timely contribution to a critical debate.

THE SUSTAINABLE TRANSPORT AND MOBILITY HANDBOOK

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THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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ENDORSEMENT MESSAGE

THE SOUTHERN AFRICAN ASSOCIATION FOR ENERGY EFFICIENCY Providing energy efficiency excellence through networking, capacity building and empowerment is the vision of the Southern African Association for Energy Efficiency (SAEE). The SAEE is a non-profit energy efficiency co-ordinating body and a driver of networking, information dissemination, and awareness creation in all matters relating to energy efficiency and its associated industries. As a chapter of the US-based Association of Energy Engineers (AEE), the SAEE has access to a source of information within the dynamic field of energy efficiency, energy engineering and energy management, renewable and alternative energy, power generation, energy services, sustainability, and all other related areas of engineering. As a growing professional association, the AEE’s overall strength is augmented by its strong membership base of over 13,000 professionals in 81 countries and its widely recognised energy certification programs. Its network of 71 local chapters located throughout the US, and abroad, meets regularly to discuss issues of regional importance. The SAEE sees its purpose as providing networking opportunities to all energy stakeholders in South and Southern Africa. With a full array of information outreach programs from technical seminars, conferences, books to critical buyer-seller networking tradeshows, job listings, and certification programs, the SAEE and AEE offers a variety of information resource tools to live up to its purpose.

THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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PROFILE

Adroit Technologies Adroit Technologies is a privately held South African-based software development company and has been developing award-winning real-time software for the industrial automation utility markets for over 20 years. Adroit Energy Management Solutions Adroit understands that energy efficiency is becoming a basic requirement in today’s business and projects. Adroit is an open automation technology, making it available to the user to configure the software solution to his specification. The Adroit solutions range from any size building management to large production process with a wide range of customers around the world – including commercial and government buildings, airports and military installations.

How Adroit enables energy efficiency The most import aspect of energy efficiency is to understand the current energy cost and to analyse the data retrieved. Adroit software enables you to do just that by logging the data for analysis. With this information available now, you can react and manage your energy consumption more efficiently. With Adroit software you can even now work out what the cost of energy is for each production unit. With this data now available, energy supply and demand strategies can now be implemented more efficiently that helps reduce operation costs – by 20% or more. Adroit web services allow the user to view this information from anywhere through a internet browser and with the correct security credentials. For more information, please don’t hesitate to contact us: Adroit Technologies 20 Waterford Office Park 189 Wittkoppen Road 2055 Fourways Tel: +27 11 658 8100 Email: marketing@adroit.co.za


EDITORS NOTE

EDITOR’S NOTE The Sustainable Energy Resource Handbook serves to bring about a better understanding of the challenges the energy sector faces. Equipped with this understanding all involved energy sector stakeholders can begin to find solutions to the many challenges the sector finds. It is our hope that the Second volume of the Sustainable Energy Resource Handbook will follow in the tradition of the first Handbook and continue to contribute to the vital debate of how the energy cycle can be shaped into a more sustainable sector in the future. This volume addresses the necessity of providing a sustainable and renewable energy stream to drive the South African

Erik Kiderlen Managing Partner Ashway Investments

economic engine, as the fossil fuel base is now running out. It addresses the macro issues that are driving policy and strategy at national and provincial level. It also provides practical insights into topics such as time of use tariffs, tax incentives and into advancements and opportunities of alternative energy sources (wind, water and solar). Low-fruit options to release energy by using more efficient lighting, motors, etc, are also described. This issue would not have been put together without the passion and dedication of the knowledgeable energy sector professionals who put their time and energy grappling with the important topics that are dealt with so aptly in this Handbook. A peer review process was introduced to ensure that the content in the Handbook is of the highest quality possible. Selected chapters went through this peer review process. I am grateful to the contributors, peer reviewers and everyone else who was involved in this fruitful venture. I trust that you, the reader will find the contributions just as captivating and informative. THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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ESKD137087/E

water heating costs When the heat is on, heat pumps save the day When it comes to optimising your business processes, heat pump technology is one of the easiest ways to cut your energy consumption, slash costs and substantially reduce your carbon footprint. With heat pumps, you can reduce your water heating electricity consumption by 67%. What’s more, Eskom is offering access to funding incentives to companies who achieve significant reductions in energy usage. The heat pump programme is just one initiative driven by our new Integrated Demand Management (IDM)

division and technically supported by our national energy advisory service. This team of specialists leads the way in promoting energy efficient practices and technology towards a sustainable energy supply in South Africa. For more information on funding for heat pumps, visit the Eskom website at www.eskom.co.za/idm, call the heat pump help desk on 011 800 4744 or email heatpumps@eskom.co.za or contact the Eskom customer contact centre on 08600 37566 for your nearest energy advisor to get in touch with you.

www.eskom.co.za/idm


CREDITS PAGE

The The

Green Building Green Building Energy Resource Handbook Green Building South Africa The

The Sustainable Handbook

Sales Manager Louna Rae HEAD OF SALES South Africa Volume 2 South Africa The Essential Guide Volume 2 HEAD OF SALES AnnieSales Pieters Advertising Volume 2 The Essential Guide The Essential Guide Pieters HEAD Annie OF SALES Theo Jacobs Volume 2 Annie Pieters ADVERTISING SALES Editor Tichaona Meki EDITOR ADVERTISING SALESKulp, James Benns, Andre Evans, Glenda Erik EDITOR Kiderlen, Barry Bredenkamp, Lauren Smith Llewellyn van Wyk Andre Evans, Glenda Kulp,Rae, James Benns, ADVERTISING SALES Joseph de Villiers, Louna Llewellyn van Wyk EDITOR Chief Joseph de Villiers, Louna Rae, AndreExecutive Evans, Glenda Kulp, James Benns,Pheiffer Muqmeena Rodriques, Siobhan CONTRIBUTORS Llewellyn van Wyk Lloyd Macfarlane Muqmeena Rodriques, Joseph de Villiers, Louna Rae, Siobhan Pheiffer CONTRIBUTORS Al Stradford, Dr. Andre de Villiers, Chris Brooker, David Kaufmann, Contributors Muqmeena Siobhan Pheiffer Al Dr. Andre de Villiers, Brooker,Grieve, David Graham Kaufmann, Dr.Stradford, Dirk Conradie, Dorothy Brislin,Chris Dr. Graham Young, CHIEFRodriques, EXECUTIVE CONTRIBUTORS Andre Barryde Bredenkamp, Bohuslav (Bo) Barta, Erik Kiderlen, Directors Dr. Dirk Dorothy Brislin, Dr. Graham Grieve, Graham Young, CHIEF EXECUTIVE Dr.Ferreira, Gwen Theron, Hans Ittman, Hans Scheff erlie, Hans Wegelin, Al Stradford, Dr.Conradie, Andre Villiers, Chris Brooker, David Kaufmann, Lloyd Macfarlane Spencer, KenClercq, Ross, Lauren Smith, Mandla Tsikata, Manie Gwen Theron, Hans Ittman, Hans Scheff erlie, Hans Wegelin, Brown Dr. Hennie de Jason Buch, Johan Bothma, Macfarlane Dr. Frank DirkDr. Conradie, Dorothy Brislin, Dr. Graham Grieve, Graham Young,de Gordon CHIEF Lloyd EXECUTIVE Dr. Hennie de Clercq, Jason Buch, Johan Bothma, Luke Osburn, Miranda Kolev, Naalamkai Phil Hammond, Professor Tumai Murombo Dr. Waal, Gwen Theron, Hans Ittman, Hans Scheff erlie,Ampofo-Anti, Hans Wegelin, Andrew Fehrsen Lloyd Macfarlane DIRECTORS Luke Osburn, Miranda Kolev, Naalamkai Ampofo-Anti, Santie Dr. Sidney Dr. Tony Paterson Dr. Hennie de Gouws, Clercq, Jason Buch,Parsons, Johan Bothma, DIRECTORS Lloyd Macfarlane Gordon Brown Santie Gouws, Sidney Parsons,Ampofo-Anti, Dr. Tony Paterson Luke Osburn, MirandaDr. Kolev, Naalamkai Peer Reviewer Gordon DIRECTORS AndrewBrown Fehrsen LAYOUTDr.&Sidney DESIGN Santie Gouws, Parsons, Dr. Tony Paterson Andrew Fehrsen Professor Nico Beute, Professor Philip Lloyd, Professor Ernst Uken Gordon Brown Principal for Macfarlane Africa & Mauritius LAYOUT & DESIGN Lloyd Rashied Rahbeeni Lloyd Macfarlane Andrew Fehrsen Rashied Rahbeeni Gordon Brown LAYOUT & DESIGN Lloyd Macfarlane SUB-EDITOR Layout & Design Rashied Rahbeeni PRINCIPAL FOR AFRICA & MAURITIUS SUB-EDITOR Trisha Bam PRINCIPAL FOR AFRICA & MAURITIUS Celeste Yates Gordon Brown Principal for United States Trisha Bam SUB-EDITOR Gordon Brown PRINCIPAL FOR AFRICA & MAURITIUS James Smith MARKETING MANAGER Trisha Bam GordonPRINCIPAL Brown FOR UNITED STATES Sub-editor MARKETING MANAGER Cara-Dee Macfarlane PRINCIPAL James SmithFOR UNITED STATES Trisha Bam MANAGER Cara-Dee Macfarlane MARKETING James Smith PRINCIPAL FOR UNITED STATES MARKETING Cara-Dee MacfarlaneASSISTANT James Smith MARKETING ASSISTANT Anri Tredoux Editorial and Brand Manager PUBLISHER Anri Tredoux MARKETING ASSISTANT PUBLISHER Mabel Mnensa GENERAL MANAGER Anri Tredoux PUBLISHER GENERAL MANAGER Suraya Manuel Marketing Manager Suraya Manuel GENERAL MANAGER ACCOUNTS & ADMINISTRATION Cara-Dee Macfarlane Suraya Manuel ACCOUNTS & ADMINISTRATION Wadoeda Brenner www.alive2green.com Wadoeda Brenner Ursula&and Thomas ACCOUNTS ADMINISTRATION Accounts Administration www.alive2green.com Ursula Thomas Rashieda Cornelius www.greenbuilding.co.za Wadoeda Brenner Wadoeda Brenner www.alive2green.com www.alive2green.com Rashieda Cornelius www.greenbuilding.co.za Ursula Thomas Suraya Manuel Rashieda Cornelius www.greenbuilding.co.za South Africa Handbook Handbook The Essential Guide

www.energy-resource.co.za

The Sustainability Series The Sustainability Series Of Handbooks Of Handbooks The Sustainability Series Of Handbooks PHYSICAL ADDRESS: ISBN No: 978 0 620 45068 3. Volume 2 first Published 2011 INTERNATIONAL Suite 207, Building 20 ENQUIRIES ISBN No: 978 0 620 45240 3. Volume 2 first Published January 2010. FRANCHISE PHYSICAL ADDRESS: DISTRIBUTION AND Waverley Business Park AllISBN rights reserved. No45240 part of3.of this publication may bebe reproduced or international@alive2green.com COPY SALES ENQUIRIES No: 978 0 620 Volume 2 first Published January 2010. PHYSICAL ADDRESS: DISTRIBUTION AND All rights reserved. No part this publication may reproduced Suite 207, Building 20 distribution@alive2green.com COPY SALES All rights reserved. part of2form this may be reproduced Suite 207, Building 20 transmitted in 45240 anyin way or in any without theJanuary priorthe written consent 1 Kotzee Road or978 transmitted any way or in form without prior written Waverley Business Park ISBN No: 0 620 3.No Volume fiany rstpublication Published 2010. PHYSICAL ADDRESS: DISTRIBUTION AND ENQUIRIES distribution@alive2green.com transmitted in any way or inexpressed any form without the prior written Waverley Business Park All rights Mowbray of or the publisher. The opinions herein are not necessarily ENQUIRIES COPYADVERTISING SALES ENQUIRIES consent of No thepart publisher. opinions expressed herein are 1 Kotzee reserved. of this The publication may be reproduced Suite 207, BuildingRoad 20 INTERNATIONAL distribution@alive2green.com consent of the publisher. The opinions expressed herein are 1 Kotzee Road Cape Town those of the Publisher or Editor. All editorial contributions are sales@alive2green.com not necessarily those of the Publisher or the Editor. All editorial Mowbray or transmitted in any way or in any form without the prior written Waverley Business Park FRANCHISE ENQUIRIES INTERNATIONAL not necessarily those of the Publisher the Editor. All editorial Mowbray South Africa accepted on the are understanding theorcontributor either contributions accepted onthat the understanding theowns or Cape Town consent of the publisher. The opinions expressed herein arethat 1 Kotzee Road international@alive2green.com FRANCHISE ENQUIRIES INTERNATIONAL arethe accepted onor the understanding that copyrights the Cape contributor owns or has obtained all All necessary hascontributions obtained alleither necessary copyrights and permissions. CPD ENQUIRIES 7705 SouthTown Africa international@alive2green.com not necessarily those of Publisher the Editor. editorial Mowbray FRANCHISE ENQUIRIES ADVERTISING ENQUIRIES contributor either owns or has obtained allthat necessary South and permissions. 7705 Africa cpd@alive2green.com contributions are accepted on the understanding the copyrights Cape Town international@alive2green.com sales@alive2green.com ADVERTISING ENQUIRIES and permissions. 7705 IMAGES ANDowns DIAGRAMS: 021 447 4733 contributor either or has obtained all necessary copyrights SouthTEL: Africa sales@alive2green.com ADVERTISING ENQUIRIES IMAGES AND DIAGRAMS: TEL: 021 447 4733 and permissions. Space limitations and source format have affected the size of certain 086 6947443 7705 FAX: CPD ENQUIRIES PAPER sales@alive2green.com IMAGES AND DIAGRAMS: TEL: 447 4733 Space limitations and source format have affected the of PDF FAX:021 086 6947443 published images and/or diagrams in this publication. Forsize larger Website: www.alive2green.com cpd@alive2green.com CPD ENQUIRIES Space limitations and source format have affinected the size of For FAX: 6947443 certain published images and/or diagrams this publication. Website: www.alive2green.com IMAGES ANDof DIAGRAMS: TEL: 021 447 086 4733 versions these images please contact the Publisher. Company registration Number: cpd@alive2green.com CPD ENQUIRIES certain published images and/or diagrams in this publication. For Website: www.alive2green.com larger PDF versions of these images please contact the Publisher. Company registration Number: PAPER PRINTER Space limitations and source format have affected the size of FAX: 086 6947443 2006/206388/23 cpd@alive2green.com larger PDFimages versions of these images please contact theFor Publisher. PRINTER PAPER PRINTER 2006/206388/23 certain published diagrams in this publication. Website: www.alive2green.com DISTRIBUTION ANDand/or COPY SALES ENQUIRIES VatCompany Number:registration 4130252432Number: 2006/206388/23 Vatregistration Number: 4130252432 PDF versions of these images please contact the Publisher. Company Number: largerdistribution@alive2green.com PAPER PRINTER Vat Number: 4130252432 2006/206388/23 Vat Number: 4130252432 alive2green is a member of the following organisations: alive2green is a member of the following organisations: alive2green is a member of the following organisations:

10

10 THE GREEN BUILDING HANDBOOK 10 THE GREEN BUILDING HANDBOOK THE GREEN BUILDING HANDBOOK

THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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For further information, please contact: IDC Call Centre: 086 069 3888 Website: www.idc.co.za


Contents 22

Chapter One

Introduction Erik Kiderlen

32

Chapter Two

Profile of the Electrical Energy Landscape Frank Spencer

48

Chapter Three

Greening the Built Environment Ken Ross

70

Chapter Four

Corporate Energy Efficiency Best Practice Manie de Waal

86

Chapter Five

Performance Benchmarking: An Analysis of Retail and Office Properties’ Electricity Consumption Andre Ferreira

102

Chapter Six

Legislative Mandates for Sustainable and Renewable Energy Use Professor Tumai Murombo

118

Chapter Seven

Institutional and Policy Support Mechanisms – For Renewable Energy Uptake in Africa Mandla Tsikata

138

Chapter Eight

Hydropower in South Africa Bohuslav (Bo) Barta

156

Chapter Nine

Expanding Knowledge of LED Technology Phil Hammond

174

Chapter Ten

Concluding Remarks Barry Bredenkamp and Lauren Smith

176

Professional Projects Profiles THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

15


The Sustainability Series: The

Transport &for Mobility Handbooks Environmental Stakeholders Sustainable

Handbook

South Africa Volume 2

The Essential Guide

The

Sustainable

Water Resource Handbook

South Africa 2009/10

The Essential Guide The Sustainable The

Sustainable & Mobility Transport Handbook Energy Resource South Africa Volume 2

More than fifty thousand people in South Africa will read at least one of the Handbooks in the ‘Sustainability Series’ this year. The 5 Handbooks in the series are published by alive2green in a high quality A5 format and are available for purchase online at www.alive2green.com/handbooks.

Handbook

The Guide SouthEssential Africa Volume 1

The Essential Guide The

Waste Revolution The Handbook South Africa Volume 1 Sustainable

The GuideResource to Water Waste Revolution Handbook

Sustainable Management The Guide to Waste South Africa 2009/10 Sustainable WasteGuide Management The Essential South Africa Volume 1

The

Sustainable The

EnergyBuilding Resource Green The Handbook Handbook Sustainable SouthAfrica Africa Volume 1 South

Transport &Guide Mobility The TheEssential Essential Guide Handbook Volume 3

South Africa Volume 2

The Essential Guide

Waste Revolution

The The Guide to Sustainable Waste Management Sustainable South Africa Volume 1

Water Resource

The

Handbook Sustainable South Africa 2009/10

Transport & Guide Mobility The Essential Handbook The

South Africa Volume 2

Green Building The Essential Guide Handbook The Africa South

Sustainable The Essential Guide

Energy Resource

Volume 3

The

Handbook Sustainable South Africa Volume 1

Water Resource The Essential Guide

The Sustainability Series Handbooks tackle the key areas within the broader context of sustainability and include contributions from South Africa’s best academics and researchers. The Handbooks are designed for government and business decision makers and are produced in Volume format. Each new Volume builds on the previous Volume without replacing it. The Sustainable Transport and Mobility Handbook and the Green Building Handbook deal with two sectors that are the largest contributors to greenhouse gasses. The Water and Energy Handbooks tackle the issues and solutions that South African’s face with two of our most important resources and finally the Waste Handbook deals with the principles concerned with waste minimisation and ultimately waste eradication.

Handbook

South Africa 2009/10

The Essential Guide

Waste Revolution

The Guide to The Sustainable Waste Management Sustainable

Energy Resource

South Africa Volume 1

Handbook

South Africa Volume 1

The Essential Guide The

The Handbooks also profile some of the top companies and organisations that are represented in each important sector.

Green Building Handbook South Africa

The Essential Guide Waste Revolution Sustainability Series Handbooks are also used as text books Volume 3 The Guide to for the alive2green eLearning Modules. Please consult Sustainable Waste Management South Africa Volume 1 www.alive2green.com/education for further information. Handbooks and eLearning Modules in some instances validated for CPD The Category 3 and/or Credits via SACAP Green1 Building

Handbook South Africa

The Essential Guide Volume 3

Handbook enquiries: info@alive2green.com Advertising enquiries: sales@alive2green.com


Affiliate Organisations

PEER REVIEW Peer Review Alive2green has introduced and is committed to peer reviewing a minimum number of published

Alive2green has introduced peer review for all handbooks and is committed to reviewing a minimum

chapters in all Sustainability Series handbooks. The concept of Peer review is based on the objective number of published chapters in all Volumes of the Sustainability Series Handbooks. The concept of peer

of the publisher to provide professional, academic content. This process helps to maintain standards,

review is based on the objective of the publisher to provide professional, academic content. This process

improve performance, and provide credibility.

helps to maintain standards, improve performance and provide credibility.

ALIVE2GREEN PEER REVIEW PROCESS Alive2green Peer Review Process The Publisher and the Editor allocate a reviewer to an article and then send it to the reviewer who The publisher and the Editor allocate a reviewer to an article and then send it to the reviewer who is well

is well acquainted with the topic. Reviewers return an evaluation of the work to the Editor, noting acquainted with the topic. Reviewers return an evaluation of the work to the Editor, noting weaknesses or

weaknesses or problems along with suggestions for improvement. The Editor notes the reviewer’s

problems along with suggestions for improvement. The Editor notes the reviewer’s recommendations and

recommendations and will either publish the article without changes, request that the author amend

will either publish the article without changes, request that the author amend the article in accordance with

the article in accordance with recommendations or reject the article but encourage revision and invite recommendations or reject the article but encourage revision and invite resubmission.

resubmission.

The Editor evaluates reviewer submissions and is under no obligation to accept recommendations. The Editor

The Editor evaluates reviewer submissions and is under no obligation to accept recommendations. may also add his or her opinions and the recommendations to those of the reviewer before passing these

The Editor may also add his or her opinions and recommendations to those of the reviewer before

back to contributors. Peer reviewed articles may not necessarily have incorporated all recommendations

passing these back to contributors. Peer reviewed articles may not necessarily have incorporated made by the reviewer but are likely to have been amended from the original version.

all recommendations made by the reviewer but are likely to have been amended from the original Alive2green is proud to have embarked on the journey of peer review and strives to achieve certain objectives

version.

in this process which include, but are not limited to:

Alive2green is proud to have embarked on the journey of peer review and now strives to achieve Extremely high standards of published material

certain objectives in this process which include, but are not limited to:

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green HANDBOOK, building hAndbOOK THE SUSTAINABLE ENERGY the RESOURCE VOLUME 2

13 17


The City of Ekurhuleni is finding innovative ways of reducing Carbon Shadows, such as: 路

Installing solar water heaters;

Installing energy efficient lamps, and control gear to make lighting more efficient;

Installing energy efficient streetlights and traffic light signal heads; and

Generating electricity from landfill gas.

Have you started to assess your own carbon footprint? What are you doing to reduce this footprint to conform to industry standards?

Ekurhuleni Energy Reliable and economical, your electricity future in good hands. Ekurhuleni consists of the greater areas of Alberton, Boksburg, Germiston, Kempton Park, Tembisa, Edenvale, Benoni, Brakpan, Springs and Nigel.


RENEWABLE ENERGY, ENERGY EFFICIENCY, AND DEMAND SIDE MANAGEMENT AT EKURHULENI METROPOLITAN MUNICIAPLITY The Metro has an energy and climate change strategy which was approved by Council in April 2007. An office within the energy department was established to look at energy issues within the Metro. The division is headed by Tshilidzi Thenga: Director Energy Services and is assisted by his secretary Ina Slabbert. Below are some of the achievements by the Metro and future plans.

SOLAR WATER HEATING The Metro has installed about 3,200 solar geysers in Council owned buildings since October 2009 and the number is on the rise. From the 3200 units, 1350 are low pressure systems installed on hostels and the remainder on rental council owned flats. A Memorandum of Agreement has been signed between the Metro and the Solar Academy of Sub Saharan Africa (SASSA) for the mass rollout of these low pressure systems to low cost housing at no cost to the Metro. It is envisaged that at least 120 000 low pressure solar water heaters will be installed in over a three- year period.

ENERGY EFFICIENCY AND DEMAND SIDE MANAGEMENT There are interventions undertaken to ensure that municipal buildings are energy efficient. These interventions include retrofitting old lighting with new energy efficient T5 lighting technology, installation of occupancy sensors with or without daylight harvesting. Efforts were undertaken to ensure that streetlights are also energy efficient by replacing mercury vapour lights with high pressure sodium. The phasing out of mercury vapour lights is contained in the Council’s policy. Finally traffic lights are being retrofitted with low power LED to make them energy efficient. An important aspect of implementing these projects is the measurement and verification process which is required in order to verify the savings achieved by such intervention.

POWER GENERATION Ekurhuleni has four landfill sites that produce adequate methane to generate electricity with an estimated capacity of about 8 Mega-watts. Processes have been initiated to ensure that the ultimate goals of the strategy to generate power from landfill gas is achieved. Going forward the development of multiple solar Photovoltaic (PV) farms is in the pipeline and a lot of groundwork has been done to ensure successful implementation of such projects. For more details please contact

10 Years of Service Delivery Excellence

Tshilidzi Thenga, Director: Energy Services 011 999 5599, Tshilidzi.Thenga@ekurhuleni.gov.za Ina Slabbert, Secretary Ina.Slabbert@ekurhuleni.gov.za


PROFILE

PETROLEUM AGENCY SA South Africa’s oil and gas exploration industry regulator Petroleum Agency SA has three main roles: to promote oil and gas exploration and production in South Africa, to regulate the oil and gas exploration and production industry in our country and to archive all geo-technical data produced through oil and gas exploration. These roles apply to both conventional and unconventional gas resources. The Agency must also advise government on issues regarding oil and gas exploration and production, and carry out special projects at the request of the Minister. The Agency encourages investment in the oil and gas sector by assessing South Africa’s oil and gas resources, and presenting these opportunities for exploration to oil and gas exploration and production companies. Our team of geoscientists study existing data to identify prospective resources – these are then presented to investors at local and international conferences and exhibitions, through direct presentations to exploration companies and through advertisements. Part of our role is to ensure that explorers understand the regulatory regime of our country and to advise government in the formulation of regulations that are in line with international norms. Compliance with all applicable legislation in place to protect the environment is very important to us, and rights cannot be granted unless we are satisfied with the Environmental Management Plan. Explorers must also prove financial and technical ability to meet their commitments in safeguarding and rehabilitation of the environment. The plan requires public consultation and a clear demonstration that valid concerns will be addressed, and must satisfy both provincial and national authorities. The Agency is involved in CSR initiatives both indirectly through its operators, as well as directly through its own programmes. Production right holders must put a social and labour plan in place that involves previously marginalised sectors of the population in the benefits flowing from development. These plans are approved and monitored by the Agency. The Agency also administers the Upstream Training Trust for the development of specialist skills in the natural sciences, engineering and technology. The Agency has its own CSR programme that includes development of skills through internships, while staff are regularly involved in social outreach events such as house-building with Habitat for Humanity.


EXPLORE SOUTH AFRICA ! PETROLEUM AGENCY SA Designated in terms of the Mineral and Petroleum Resources Development Act, Petroleum Agency SA promotes exploration for onshore and offshore oil and gas resources and their optimal development on behalf of government. The Agency regulates exploration and production activities, and acts as the custodian of the national petroleum exploration and production database.

Exploration opportunities are available offshore over shelf areas and in unexplored deep water frontier regions. The onshore basins present opportunities for conventional oil and gas exploration as well as for coalbed methane and shale gas in the Karoo Basin. South Africa offers an investor-friendly and stable political environment, competitive fiscal and commercial terms and an excellent infrastructure.

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



CHAPTER 01: INTRODUCTION

INTRODUCTION Erik Kiderlen Managing Partner Ashway Investments

CONTENT AND PRESCRIPTS This Volume of the Sustainable Energy Handbook is building on certain themes from Volume 1 in the Handbook series. The Sustainability Handbook Series is broadly grouped into Energy, Green Buildings, Transport and Mobility, Wastes, and Water resources. These profile articles by some of South African’s top researchers, academics, policymakers, companies and organisations. They represent all sectors of the country’s national scenario.

SUSTAINABLE ENERGY STREAM Being written for South Africans, using the South African scenario as a basis, it is assumed that the readers of this Handbook will apply their own safety and security constraints to each of the concepts herein. After all, the dictum of ‘prevention being better than cure’ is very applicable in the energy sector.

SUMMARISED HANDBOOK CONTENT This Volume has been structured around practical and theoretical parameters as follows: • Actual present electric energy profile in SA, including the new ‘green energy’ initiatives • Greenness of Energy supplied to and used in buildings; including the grid emissions factor and the energy footprint • Best practices for corporate energy efficiency; including potential returns of efficiency interventions • Benchmarking of commercial properties energy consumption; including a comparison of United Kingdom data with local benchmark median consumption • Legislative mandates - including focusing on the sources of the legal mandate for national, provincial and municipal spheres of government to pursue sustainable and renewable energy targets • Institutional roleplayers in the Energy sector, including the purpose of NERSA, ESCOs and others • Actual in-situ RSA hydropower development, including site specifics and the multitude of disciplines needed in hydropower’s development • Expanding knowledge of LED technology; including an introduction to LEDs, basic performance and application parameters THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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CHAPTER 01: INTRODUCTION

SUSTAINABILITY AND SOCIAL UPLIFTMENT While each of these themes is unique, there are commonalities (eg Eskom’s 2010 Generation Capacity document) which are cutting across the themes. This Volume accentuates the importance of cross-cutting in the practice of sustainable energy generation, its use, benchmarking parameters, and potential socio-economic benefits. These aspects will promote and enable comparison of best practice by means of information, examples and the guidelines in this Handbook. Sustainability is generally considered under three headings; environmental, economic and social upliftment. Energy efficiency, benchmarking and renewable energy generation are all ‘sustainable’ concepts. However, for assessing their individual successes, all three of these headings should be measurable, meet legal prescripts, and be economically viable (be bankable and have an attractive payback period). Particularly, the non-fossil fuel energy generation processes (being wind, water, and solar) have enormous economic and social upliftment hurdles to overcome, when compared to fossil fuel generation.

GOVERNMENT IMPERATIVES With 40% of worldwide energy consumed in the property and construction sectors, these industries can have a major impact in mitigation of and adaptation to combating global warming. Government (both national and provincial) and Eskom have accepted this, and have introduced various policies, strategies, and directives, among which are: • Recently, National Treasury has issued documentation to audit and fit energy savings interventions for 1 000 government-owned buildings. Notable here is that the measured savings in kWh (and thus Rands and Cents) are credited towards the operating budget of the building’s government department, thus motivating savings and behavioural changes. • The Energy Efficiency Strategy (2005) which targets a 15% improvement in efficiency by 2015 – a mere four years away! • National Response to South Africa’s Energy Shortage (2008) by the Department of Energy (DOE), which recommended increased electricity tariffs. These are presently being implemented, with a 30% tariff increase in one year! • Power Conservation Programme (draft) - which is the basis for load shedding and power rationing. 24

THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2


CHAPTER 01: INTRODUCTION

Voluntary rationing may become mandatory through regulation! • Integrated Demand Management (IDM). Eskom is partnering with Energy Service Companies (ESCOs) to implement various IDM strategies, which releases funds for implementing demand management interventions. Very stringent and administratively complex auditing, monitoring, and verification is required before funds (up to 50% of intervention capital costs) are made available. • Renewable Energy Certificates (RECs). Independent Power Production (IPP) providers are eligible to register certifications for the electricity which they generate. By purchasing RECs, an investment is made into the renewable energy industry in South Africa. This is the major route by which South Africa’s heavy dependence on coal-fired power generation can be reduced. A ‘non-renewable source tax’ of 2 cents/kWh has been introduced recently, applicable to all consumers. Income from this tax will be used to help fund renewable energy generation schemes. • Provincial guidelines. Provincial departments receive their mandates from National departments. The Western Cape’s Department of Environmental Affairs and Development Planning is the lead department in that Province’s Climate Change interventions, to meet national standards. To this effect, it has recently published its “Sustainable Energy Strategy and Programme of Action for the Western Cape”. In more detail, it has available an “Energy Efficiency Guidance Note”, which enables local authorities and municipalities to comply with national prescripts, eg SANS 10400 and SANS 204.

CONCLUSION While this guide elaborates on the electrical generation picture, it is common knowledge that this energy is used mainly in industry and in buildings. The Handbook is supported by Government, various Energy Associations and academic Institutions, as well as numerous advertisers. It is with due respect to these sponsors that the reader is asked to reflect on the following truisms. “One important way for cities to reduce energy use and greenhouse gas emissions is to retrofit their existing buildings with more energy efficient products and technologies. These retrofits can reduce energy use by 20% to 50 % in existing buildings, and pay for themselves over several years through the resulting cost savings on energy bills.” Clinton Climate Initiative 2007 “Europe and North America have a history of refurbishing old building stock, unlike South Africa where demolition is the norm.” Mike Barrow, BI Associates

THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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CHAPTER 01: INTRODUCTION

“At the national level, the implementation of existing policies (eg on renewable energy and efficiency) is insufficient.”

Sm

Richard Worthington, Climate Change Programme, WWF South Africa “The large majority of existing buildings can be retrofitted to reduce energy consumption and improve health and comfort.” Neil Gopal, CEO, SAPOA. “… more than any other human artifact, buildings excel at improving with time, if they are given the chance.” Steward Brand - How buildings learn: What happens after they’re built (1994) REFERENCES The Sustainabale Energy Resource Handbook South Africa Vol.1, Dr Else du Toit, Alive2Green Publishers, Volume 1, Cape Town, South Africa 2009 ASHRAE Handbook – Fundamentals (S1 Edition), ASHRAE Publishing, Walter T Grondzik (chairman), W Stephen Comstock (Publisher) Energy Management Handbook Sixth Edition, Wayne C. Turner and Steve Doty, 2007 by the Fairmont Press, Inc. NCPC – CSIR SA Management Report 2009/2010

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W fin m isn

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26

THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2


Smart High-Speed High Volume Print Solutions

The entire natural world operates on the principle of balance: The ancient Egyptians called this notion of equilibrium Maat; The Chinese know it as Yin and Yang. We have our own concept of equilibrium, which we call RISO. RISO™ means “ideal” in Japanese, and we endeavor to actively make a positive difference on the environment. Since inception, RISO™ has fostered the belief that technological advance need not go against nature - a commitment to the environment that is evident in our development of products that are designed to reduce the burden on the natural world. With the Green movement finally gaining credence and momentum in South Africa, isn’t it time to reconsider the way you do business? As an identified supplier of eco-conscious office technology, our printers and copiers draw substantially less energy than similar products, and are even able to run completely off the grid. Make the right choice

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SolarTotal South Africa 12 Summer street, Rivonia, Johannesburg 2128, Gauteng T. 011 234 7343, F. 086 600 1095, E-mail: info@solartotal.co.za, www.solartotal.co.za


PROFILE

SolarTotal South Africa SolarTotal South Africa is a specialist in photovoltaic solutions. SolarTotal is one of the largest residential retailers and installers of photovoltaic systems in Europe and to date has installed over 100MW of residential and commercial photovoltaic solutions in the European market. The head office is strategically located in Johannesburg with satellite offices nationwide. SolarTotal offers a complete start to end solution for customers in both the domestic and commercial Solar PV markets. SolarTotal is currently active in Netherlands, Belgium, France, Germany, Italy, Spain, United Kingdom, India, the Philippines and South Africa. SolarTotal already has more than 17,000 customers in Europe.

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The SolarTotal “Carefree Solar Power Solution� is developed in such a way that our customers can benefit from a carefree and guaranteed return on their Solar PV investment. It contains all the ingredients for a successful PV Solar installation including: site audit, system design, supply, delivery and installation of your system. Furthermore we provide expert Solar PV advice, support to arrange the necessary permits and then on top of all this, we offer our unique Carefree Warranty 5+ including online monitoring of your PV installation and many other benefits. As a SolarTotal customer you not only become your own in-house green energy producer, but you also receive tax free income from all the electricity you produce, whether you use it or not! For more information go to our website www.solartotal.co.za.

SolarTotal (Pty) Ltd.

12 Summer Street, Rivonia 2128, Johannesburg, Gauteng Telephone number: +27 (0) 11 234 7343 Fax number: +27 (0)86 600 1095, Email address: info@solartotal.co.za Website: www.solartotal.co.za Commercial

Agriculture

City: Country: Year: Capacity:

Sint-Truiden

City : Country : Year : Capacity :

Comments:

Auction Sint-Truiden

Belgium 2010 3.6 mWp

La Tessoualle France 2009 25.7 kWp


Enviroplus Energy leading the way with bioenergy and landfill gas technologies

Cogeneration – the perfect sustainable energy solution The use of cogeneration - combining the use of heat and power (CHP) to produce heat and electricity - is infinitely more efficient than other methods. Unlike the classic power plant, where the heat produced is wasted, CHP units use the generated heat for heating. They thus save some 40% in fuel which otherwise would be burnt in boilers to produce that heat.

Given also that CHP allows for energy to be produced at or near the point of use, this saves on transportation/distribution costs. The efficiency of cogeneration units is thus around 80-90%: compare this to new coal-based power stations which run at between 40-50% efficiency.

Energy savings and environmental benefits

l For the same amount of fuel, the user gains nearly twice as much energy, part of which could be sold. l Because cogeneration units produce power with the greatest efficiency, they offer the most economical and ecologically sound energy solution. l Cogeneration units can be used as emergency sources of electrical energy. l Cooling generation - with absorption exchangers, it is possible to use the generated heat to produce coolants for air-conditioning. This is called Tri-generation, the combined production of electricity, heat and cold. Shown here is the biogas station at a pig farm which uses manure slurry from the piggery, agricultural residue and other biological waste from processing plants as the source for the biogas production.

Enviroplus™ Group

The energy centre is equipped with 3 TEDOM CHP units: total output is 1 000 kWel and 1 000 kW thermal energy. engineering services


E

Enviroplus Energy profile

nviroplus Energy focuses on developing energy solutions: we are among the few engineering companies in sub-Saharan Africa with the technological expertise to design and implement bio-energy projects. This specialist company within the Enviroplus Group was formed to serve the electrical and thermal power generation industries, from biological processes through to the supply, commissioning and ongoing operation of CHP (Combined Heat and Power) systems. More than a decade ago we recognised the need for South Africa to consider alternative energy methods and have undertaken relevant research. We also represent Tedom s.r.o. in Africa and have access to their biogas plant and landfill projects technology. Tedom’s products include cogeneration units.

“About 200 MW of electricity could potentially be generated from biogas-from-waste projects around the country, with a number of projects potentially being able to generate up to 10 MW of electricity on site.” Dr Andrew Taylor, CAE Energy

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www.enviroplus.co.za


CHAPTER 02: PROFILE OF THE ELECTRICAL ENERGY LANDSCAPE

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THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2


CHAPTER 02 : PROFILE OF THE ELECTRICAL ENERGY LANDSCAPE

PROFILE OF THE ELECTRICAL ENERGY LANDSCAPE FRANK SPENCER Director and shareholder Emergent Energy

INTRODUCTION South Africa is a large country at over 1,2 million km2 and her varied landscapes have abundant mineral resources. Mining requires significant low-cost energy, and thus the story of energy in South Africa is tightly integrated with the history of mining with the one feeding off the other. The socalled “Minerals and Energy Complex” (B. Fine et al,1997) drove our industrial development, and it is therefore not surprising that over 90% of the energy generated from our installed electrical capacity of 44 GW is from coal. Despite the historical abundance of low-cost coal, a number of issues have recently arisen that are driving South Africa’s energy space towards a build programme including new greener fuel sources. These include: • The recent “energy crisis” with insufficient supply for peak power demand • The increasing desire to move towards a low carbon economy and to address the carbon emissions from burning fossil fuels • The additional costs of the externalities associated with coal, such as health and environmental degradation, which are not reflected in the price of coal based energy generation • Uncertainties about future supply and price of fossil fuels, especially coal and oil Thus there is a growing awareness that the current price of our electricity hopelessly under-prices its real cost to the economy, and that the future political risks associated with carbon-emissions and future price uncertainties for fossil fuels need to be addressed through greener energy technologies. This article will discuss the emerging green electrical energy landscape, but before we do that, we need to understand a few key technical terms and technologies.

THE LANGUAGE & TECHNOLOGIES OF ENERGY The first two terms that are critical to our understanding are that of POWER and of ENERGY. These are sometimes used interchangeably, but mean two completely different things. Energy is a quantity of stuff, like a volume of water. It is the stuff that makes things happen, does work, moves things around. THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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CHAPTER 02: PROFILE OF THE ELECTRICAL ENERGY LANDSCAPE

Power is the rate at which energy is used, how fast it is used up. It is a bit like the flow rate of water (so many litres used every second would be a flow rate). Energy is measured in Joules (J), although for electrical energy the term Watt hour (Wh) is used . Power is measured in Joules per second (J/s); the electrical term used is the Watt (W) . The relationship between the two is time, thus Energy (Wh) = Power (W) x time (hours). An example: when we look at energy electrical device, we see that the appliance will have an electrical rating in W or kW. If an incandescent bulb has a rating of 100W, this means that it consumes electrical energy at a rate of 100 Watts. After 10 hours, it will have used 1 000 Wh (or 1 kWh) of energy (a quantity). Thus your electrical meter, which measures the amount of energy consumed (and hence uses the kWh unit) will meter over these 10 hours the use of 1 kWh. Similarly, a Compact Fluorescent Light-bulb (CFL) rated at 10W, over 10 hours, will use only 100Wh, or a tenth of the amount of energy as the incandescent bulb. Of these two, energy is the quantity we are most interested in. It is related to the quantity of coal and oil consumed, the carbon and other pollutant emissions, and perhaps most importantly, is the key component of our electricity bill. Eskom, on the other hand, is right now more interested in peak power, and controlling the demand, as it is unable to peak the maximum peak demands for power. Thus much of what Eskom is doing in its strategies is to increase power capacity and reduce peak demand. That brings us to the third term to understand - Capacity Factor. This term applies to power stations, whether they be wind or solar, coal or nuclear. It refers to the ratio between the maximum theoretical amount of energy a power station could produce over a year and the actual energy it does produce. For example, if a power station could produce 3.6 GWh of energy each year, but it actually only produced 2.4 GWh in the year, its capacity factor would be 2.4 / 3.6 = 66%. To convert the rated power in to the amount of energy they actually produce, we multiply the rated power by the number of hours in a year (8760) and then by the capacity factor of the power station. For example, a 100MW power station, with a capacity factor of 50%, would produce 438 GWh of electricity in a year (100 MW x 8 760 hours x 50% capacity factor = 438 000 MWh = 438 GWh), but the same power station with a capacity factor of 90% would produce 788.4 GWh of energy in the same year. This is important as different technologies have different capacity factors – some typical values are shown in table 2.1

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CHAPTER 02 : PROFILE OF THE ELECTRICAL ENERGY LANDSCAPE

Technology

Capacity Factor

Coal

90%

Nuclear

90%

Wind

20% - 40%

Solar

17% - 22%

Table 2.1: Generation Capacity Factors

This is important because what we are primarily concerned with is ENERGY, the quantity of stuff that we use to get things done. Most of our electricity costs are associated with ENERGY consumption. Thus we are not primarily interested in installed capacity, but being able to buy energy at the lowest costs. Applying this, we come to understand that 1 000 MW solar farm will only produce about a quarter of the energy of an equivalent sized nuclear power station, but costs of the energy will now be less (Blackburn & Cunningham, 2010). When we consider green energy technologies, perhaps the most important and least appreciated of those are in the category of energy efficiency, or those technologies that help SAVE energy consumption by doing more with less. For example, using heat pumps for generating hot water can reduced the energy required for the same amount of hot water by over 60%. Likewise, retrofitting energy efficient light-bulbs coupled with intelligent controls can ensure that lights are on only when required, and the right amount of light is delivered to the right location. In some cases, this can save over 90% of the energy that would have been required. On the generation side, perhaps the most important technologies for South Africa fall in to the wind and solar technologies. Most of the technologies in this space are proven, with short lead times, predictable generation profiles and reasonable costs. Wind power stations (farms) generally consist of many large horizontal axis turbines in the range of 1 MW to 3 MW per turbine, although turbines are now reaching powers of over 5MW, and wind farms can now be in excess of 1GW. Large wind farms are the leading renewable energy source do to a readily available resource (the wind) and lower cost compared to solar Solar power stations are likely to fall into two categories: solar photovoltaic, where the sun’s rays are directly converted to electricity, and solar thermal (often called Concentrates Solar Power or CSP), where the sun’s rays are focussed to produce a high temperature. This heat is then used to create steam, and then electricity. Solar is likely to be the future of energy for South Africa, as the costs continue to come down dramatically, and we have a massive solar resource in South Africa.

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CHAPTER 02: PROFILE OF THE ELECTRICAL ENERGY LANDSCAPE

SOUTH AFRICAN ENERGY POLICY The Long-term Mitigation Strategy Perhaps one of the most influential and ground breaking documents in the move towards cleaner energy, is the Long Term Mitigation Strategy (LTMS) (DEAT, 2007), a cabinet-approved strategy for a reducing carbon emissions. In a nutshell, the LTMS proposes that carbon emissions in South Africa continue to rise for a while (until 2020), plateau (until 2030), and then decrease to 1990 levels by 2050. In order to achieve this, a major shift in our energy patterns to much more efficiency and clean energy generation is required.

Figure 2.1: LTMS Peak Plateau Decline Graph (DEAT, 2008)

This policy document has been key in perhaps one of the most important energy documents to be finalised recently, the IRP2010.

The Integrated Resource Plan (IRP2010) The recently published Integrated Resource Plan 2010 (DoE, 2011), driven by a climate agenda, introduces a strong shift from coal towards nuclear, solar and wind. The table below shows the planned installed capacities of the new build programme for 2019 and 2030m, and the graph following shows the yearly build programme with coal peaking around 2021.

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CHAPTER 02 : PROFILE OF THE ELECTRICAL ENERGY LANDSCAPE

Year

Total Installed Capacity (MW)

New Installed Capacity (MW)

New Nuclear (MW)

New Wind (MW)

New Solar (MW)

2019

63589

19964

0

3200

3000

2030

89532

56539

9600

9200

9600

Table 2.2: IRP2010 build programme (My own table, source data is DoE, 2011)

Figure 2.2: Installed Capacity by year (My own graph, source data is DoE, 2011)

Although the IRP has been marketed as green on the fact that 42% of the new build capacities for 2030 are from renewables, as discussed above, it is important to look at the actual energy produced by applying the capacity factors of the technologies. When we do this, we discover that in reality, the energy supplied from renewables is a lot less: Technology

Energy 2010

Energy 2030

Fossil Fuels (Coal+Other)

90%

66%

Nuclear

5%

18%

Renewables

0%

9%

Large Hydro (imported)

5%

5%

Table 2.3: Energy supply by key generation technology (My own table, source data is DoE, 2011)

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PROFILE

M-Tech Industrial (Pty) Ltd. M-Tech Industrial (Pty) Ltd. is a multi-disciplinary engineering company that provides consulting services, develops expert software and manufactures specialised hardware products for the energy industry. M Tech’s vision is to develop leading energy solutions by creating exceptional value for its clients through technical expertise and service excellence. M-Tech has established itself in the energy sector over the past ten years by providing a range of services, products and solutions to clients which include power utilities both locally and abroad, mining houses, technology developers, industrial manufacturing and process facilities as well as regional and local authorities. M Tech’s major products and services are: • The Flownex® SE thermal-fluid systems simulation and design software code. • The PumpShed pump scheduling software code used to optimise the operation of large pumping stations for minimum electrical peak demand and energy cost. • Customised thermal fluid system simulation and design software and solutions. • The Enerflow range of heat pumps for energy efficient heating of sanitary hot water in industrial, commercial and residential applications, which have been awarded the prestigious Eskom eta award for energy efficiency in 2002. • Air cooling units (ACUs) for underground mine cooling, with special relevance to deep mines. • Compressed air, steam and water reticulation system simulation and optimization services for heating, ventilating and cooling applications as well as for process plants. • Design, integration and implementation of advanced water heating system and pump scheduling solutions for demand side management and energy efficiency. • Design, construction and commissioning of specialized heating and cooling equipment and firstof-a-kind thermal fluid test facilities and prototype plants. • Development of engineering plant simulators for power stations and other thermal fluid systems. • Computational fluid dynamics (CFD) consultation services. • Techno economic analysis and optimization, feasibility studies and technology road mapping. • Owner’s engineering services. ISO9001:2008 accredited Level 4 BBBEE contributor Contact information: M-Tech Industrial (Pty) Ltd. Tel: +27 18 297 0326 E-mail: info@mtechindustrial.com www.mtechindustrial.com

Photo Credit: www.mediaclubsouthafrica.com/SASOL


CHAPTER 02 : PROFILE OF THE ELECTRICAL ENERGY LANDSCAPE

Comparing the installed capacity (POWER) to ENERGY in 2030, we see this difference:

Figure 2.3: Installed Capacity (Power) 2030

Figure 2.4: Energy 2030 (My own graphs, source data is DoE, 2011)

Thus, although the policy is a significant shift from coal, the big winner is nuclear and then renewables. This is despite the fact that nuclear is very expensive and suffers from a host of political, social and environmental concerns. In addition, the limiting factor for renewables is not the availability of THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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PROFILE

New Southern Energy New Southern Energy offers bespoke utility solutions. We offer a complete service for the design, supply, installation, commissioning and operation of green energy technologies to the public and private sectors providing impartial renewable energy advice. Our team comprises of electrical engineers, carbon experts, actuaries and business and marketing strategists who are able to provide clients with a total energy solution. We specialise in full hybrid turnkey solutions with complete demand side management and power generation through renewable energy sources.

Benefits to clients who choose our solutions 1.Good financial investment with environmental benefits to the client

Our clients benefit from attractive return on investment (as high as 54% with a two year payback period). These investments have significant environmental benefits reducing carbon emissions, through clean, reliable and sustainable solutions.

2. Experienced team

We have experienced engineers and technical installation teams. Our project managers have completed a number of energy solutions varying from reducing energy demand to complete hybrid systems.

3.Bespoke solutions & corporate energy strategy

We specialise in designing solutions tailor-made for client’s needs through innovative and efficient methods. We also work with management to develop and implement an effective environmental and energy strategy creating awareness throughout the company.

4. Maintenance and service peace of mind

We have a technical team ready to answer your questions with the energy solutions we implement. We offer a service & maintenance plan which further lengthens the life and efficiency of the solutions.

5. Best products

Through extensive market research and industry knowledge, NSE has identified the best products to use in our solutions. We use the best quality products from reliable suppliers.

6. Flexible investment options

We offer our solutions through a once-off payment or a series of payments. We also offer solution rental (with option to purchase), depending on client’s financial strength and other factors.

Please feel free to contact us to discuss your energy strategy! Contact Details

no.7 West Quay Road, Suite 101, Block A, V&A Marina, Cape Town, 8001 Tel: 021 510 2248 Fax: +27(0)866001103 E-mail: info@newsouthernenergy.com www.newsouthernenergy.com

In Partnership with:


CHAPTER 02 : PROFILE OF THE ELECTRICAL ENERGY LANDSCAPE

resources nor the grid. A recent study by the South African Wind Energy Association has estimated that in excess of 30GW of wind could be built by 2025, and another recent study undertaken by Eskom indicated that grid capacity at this stage is not a big issue, with perhaps as much as 6.7 GW of renewables being easily accommodated on the grid in the short term. On the energy efficiency side, the IRP2010 estimates that almost one large coal power station does not need to be built through demand side management interventions. It is estimated that the peak demand can be reduced by around 3420 MW by 2017. This is the lowest cost way of creating additional capacity, by saving on the consumptive side.

THE REFIT AND IPPS In May 2008, the National Energy Regulator of South Africa (NERSA) first proposed a Renewable Energy Feed In Tariff (REFIT). This was the first indication that private developers of wind farms and solar farms would, as Independent Power Producers (IPPs), be able to sell their green electricity to Eskom. But it took until March 2009 for reasonable tariffs for the electricity to be announced (R1.25 / kWH for wind projects), and in July 2009 the extremely high tariff of R4.49 for solar PV was announced. But three years later, no projects are online yet and there are still regulatory hurdles to be crossed. The Department of Energy (DoE) together with Treasury were expected to issue a Request For Proposals (RFP) for the REFIT projects sometime during May 2011, essentially turning the REFIT into a fixed-price tender. In addition, the tariffs are under review which could impact the viability of a number of projects being planned. However, there is light at the end of the tunnel – government would very much like to have projects awarded by the climate negotiations (COP17) in Durban in November 2011. It is also important to note that at the moment the REFIT process only applies to large projects. Although net metering is allowed in many European countries, where small scale renewable energy generators (eg residential homes) can sell their excess generation to the grid at a premium price, it is still likely to be a good few years before this becomes an option in South Africa.

CONCLUSION This article has set out basic energy measurements, as well as capacity factor thus giving a measurable statement of how much electrical energy is available. The obvious saving strategy which can be applied immediately is energy efficiency. The technology is proven. All that is needed is the potential will to re-educate the users and penalise the offenders. THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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Large wind farms are a feasible top-up power generation possibility, but needs careful distributiongrid management. Solar power, both pv and c.sp, are likely to be the future for South Africa, albeit that energy storage can be provided economically. Some very ground breaking political decisions have been taken, and are now prescribed in various Acts and regulations. The motivation to make the necessary interventions is very much on the short-term agenda It is an exciting time for energy in South Africa, with much healthy debate over the way forward. There is significant pressure to move away from carbon intensive energy generation towards greener, sustainable generation and consumption, and this is, for the first time, is being strongly reflected in the policy decisions being made. The grip of the ‘Energy and Minerals Complex’ over the energy landscape is coming lose, and the first faltering steps are being taken towards low-carbon electricity. REFERENCES Blackburn, J. & Cunningham, S., 2010. Solar and Nuclear Costs —The Historic Crossover, Available at: http://www.ncwarn.org/wp-content/uploads/2010/07/ NCW-SolarReport_final1.pdf. DEAT, 2008. Climate Change – The South African Response Long-term Mitigation Scenarios (LTMS), LTMSfindings, policy directions and way forward. DEAT, 2007. Long Term Mitigation Scenarios Strategic Options for South Africa. DoE, 2011. Integrated Resource Plan For electricity 2010-2030, Available at: http://www.doe-irp.co.za/content/IRP2010_2030_Final_Report_20110325.pdf. Fine, B., Rustomjee, Z. & Fine, E.H., 1997. The Political Economy Of South Africa: From Minerals-energy Complex To Industrialisation, Westview Press. Hartnady, C., 2010. SA coal reserves dip well below estimates, Cape Town. Available at: http://us-cdn.creamermedia.co.za/assets/articles/attachments/30520_ umvoto.pdf.

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PROFILE

Graduate School of Technology Management University of Pretoria Technology road mapping to promote renewable energy – solar as a first step in South Africa The Department of Science and Technology aims at creating an enabling environment through a solar energy centre of competence to support an emerging solar industry. As part of a larger project to establish such a centre of competence, the Graduate School of Technology Management (GSTM) at the University of Pretoria, in collaboration with the Centre for Renewable and Sustainable Energy Studies (CRSES) at Stellenbosch University, has been tasked to coordinate and develop a national solar energy technology road map through a multi stakeholder process. A technology road map (TRM) is widely considered to be a flexible and powerful technique for supporting technology management and planning and can be adapted to many strategic situations. Effective road maps have been developed for various sectors, including the solar energy sector. A TRM offers a solid framework to integrate market, product and technology evolution. A TRM provides a framework for supporting integrated and aligned multifunctional strategic planning in terms of both “market pull” and “technology push”, achieving a balance between market requirements and technological capability. other things, key strategic focus areas, the required interventions by various role-players, and how South Africa could utilise its comparative advantage of solar irradiation in the best possible way.

Additional “pressure” and “support” drivers for the incorporation of sustainability aspects in strategy and planning processes must also be considered when applying the TRM technique. The national solar energy technology road map (SETRM) highlights, among other things, key strategic focus areas, the required interventions by various role-players, and how South Africa could utilise its comparative advantage of solar irradiation in the best possible way. Further information on the SETRM can be obtained from Prof Tinus Pretorius of the GSTM (tinus.pretorius@up.ac.za) and Prof Alan Brent of the GSTM and the CRSES (acb@sun.ac.za).

Further information on the SETRM can be obtained from Prof Tinus Pretorius of the GSTM (tinus. pretorius@up.ac.za) and Prof Alan Brent of the GSTM and the CRSES (acb@sun.ac.za).  Solar energy forms an important part of the country's renewable energy strategy. other things, key strategic focus areas, the required interventions by various role-players, and how South Africa could utilise its comparative advantage of solar irradiation in the best possible way. Further information on the SETRM can be obtained from Prof Tinus Pretorius of the GSTM (tinus.pretorius@up.ac.za) and Prof Alan Brent of the GSTM and the CRSES (acb@sun.ac.za).

 Solar energy forms an important part of the country's renewable energy strategy.

 Coal-generated power plants make use of the country's non-renewable resources and are a source of pollution that is to the detriment of both man and the environment. F E

A T

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E

S

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HYDROGEN AND ENERGY CHIEF DIRECTORATE BRANCH: RESEARCH, DEVELOPMENT AND INNOVATION

WEBSITE: www.dst.gov.za

The mission of the Hydrogen and Energy Chief Directorate (H&E) of Research, Development and Innovation (RDI) Branch at the Department of Science and Technology (DST) is to address and inform national imperatives and policies through stimulating sustainable energy technology capability, growing human capital, and applying scientific knowledge for addressing South African socio-economic needs. The recent collapse of the global financial system has negatively affected plans to expand the national power infrastructure, and currently also dictates the prioritisation of demand-side management and energy efficiency interventions. In response to these developments, the DST will boost investment in energy technology innovations that will contribute to local energy technology capabilities and enhance the global competitiveness of the South African energy sector. The development of cutting-edge capabilities in alternative and clean fossil fuel solutions remains important in the medium to long term. The Department will therefore continue to establish and direct platforms to ensure the delivery of South African-designed solutions for local and global markets. In response to the global energy challenge, the DST is developing the Energy RDI Strategy and its implementation plan, which covers a range of Energy RDI activities necessary to promote an innovative, equitable and sustainable energy system in South Africa supported by a globally competitive South African


PROFILE

energy sector. In addition to ensuring a supportive policy environment, H&E sets up and gives strategic direction to platforms that develop and commercialise innovative technology solutions to help achieve energy security in a way that contributes to economic growth, ensures access to modern energy services for all South Africans, and protects the environment. The framework for implementation is provided by the draft energy RDI strategy document, which was approved by the Executive Committee during 2009. In support of the Ten-Year Innovation Plan, the strategy is intended to transform South Africa’s energy industry into a globally competitive sector that delivers knowledge-intensive technology solutions to both local and global markets. The DST is making huge strides towards the realisation of the Hydrogen and Fuel Cell Technologies RDI Strategy (HySA) objectives which was approved by cabinet in May 2007. The focus in the recent years was mainly on the development of the HySA Catalysis and HySA Systems centres of competence (CoCs) to facilitate human capacity development, capital acquisitions, and the undertaking of projects.


PROFILE

Light Empowers Design L.E.D. Lighting South Africa Designers and manufacturers of led lighting solutions L.E.D Lighting SA was established at the end of 2004 with offices in Johannesburg and Cape Town with a manufacturing plant in Cape Town. A proudly South African company that utilizes local resources and suppliers as far as possible with a level 2 certified BEE status. A strong environmental policy reduces environmental impact in production of our products. L.E.D Lighting SA can assist you in complying with new energy standards.

The Team L.E.D Lighting SA is run by a very experienced product development team consisting of two senior Mechanical Engineers, a senior Electronic Engineer as well as two Industrial Engineers and an Industrial Designer. The team has a combined experience of more than 70 years in product development. • Highly trained production staff skilled up to IPC level 3 soldering ability. • Motivated and experienced technical sales team. • In addition, we utilise a contingent of local and foreign intern students to assist in measurement and product testing.

Capability L.E.D Lighting SA possesses excellent knowledge and experience in LED technology and lighting principles. The company is situated in a well laid out, neat and organised production facility. • L.E.D Lighting SA only uses LEDs from the world’s leading LED manufacturers, these presently include Nichia, Osram, Seoul Semi Conductor and Cree. • Has a very good relationship with Seoul Semi Conductor (SSC), one of the top 5 LED producers in the world. • Able to buy direct from the factory in Korea - no middleman costs makes pricing competitive. • Receive excellent technical support from SSC. • Do thorough life time testing of our products as well as LEDs from various manufacturers. • Have own photo-goniometer to determine

Long life span

Integrated aesthetics


PROFILE

Low maintenance

Power saving

Environmentally friendly

photometric data - huge aid for development but also assists clients with lighting designs. • Capability to do Relux modelling for lighting layouts. • Can save you money on electricity costs and time on maintenance issues.

L.E.D Lighting SA Projects: • Signage brand illumination for Pick ’n Pay, KFC, Clicks, Edgars, Shoprite, Engen Africa, Wimpy, Caltex, Capitec Bank and Sasol. • Numerous hotels including the 5 star Crystal Towers & Bridge, 15 on Orange, Radisson Blue Radisson Maputo, ENPH Hilton Windhoek and Sandton Sun. • Shop fitting roll outs like the recent Cell C rebranding, Budget Rent a car, Spur, Till points for Pick ’n Pay. • Freezer lighting products have been installed in more than 30 Woolworths supermarkets so far. • Completed replacements of 50W halogen downlights for Oracle, Coronation Invest. Bank, • Top TV, House of Parliament.

Membership • Application underway to become registered as an ESCO. • Registered with the ECO Standard. • Very Experienced Product Development team consisting of two senior Mechanical Engineers, a senior Electronic • Member of Illuminating Engineering Society of South Africa (IESSA) as well as Electrical Contractor’s Engineer as well as two Industrial Engineers and an Industrial Designer. Combined experience of more than 70 Association (ECA). years in product development. • Highly trained production staff skilled up to IPC level 3 soldering ability. • Member of the NMISA Working Group for implementation of National Standards for LEDs in South • Motivated and experienced technical sales team Africa. • In addition we utilise a contingent of local and foreign intern students to assist in measurement and product testing

Contact Details

40 Woodlands Road, Woodstock Tel: CT: 021 4488333 JHB: 011 452 7348. Fax: 0214488335 Email: salesteam@ledlighting.co.za Website: www.ledlighting.co.za

Saves money • No mercury • Energy efficient


11: GREENING THE BUILT BUILDING: PLANTS, PLANTING AND DETAILING CHAPTER 03: ENVIRONMENT

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CHAPTER 03: GREENING THE BUILT ENVIRONMENT

GREENING THE BUILT ENVIRONMENT Ken Ross, CEM BSc(Eng) (Elec) (Hons) UCT Head Energy Engineer Global Carbon Exchange

INTRODUCTION South Africa is known worldwide as one of the largest emitters of CO2 in the world, both in gross emissions and emissions per capita. The latest studies published by the United States Department of Energy rank South Africa as the 12th largest emitter of gross carbon dioxide as a result of energy consumed (US Department of Energy, 2009). A major contributor to South Africa’s carbon footprint, the total carbon dioxide equivalent emissions of the six green house gasses, is the electricity produced by the coal fired power stations. A significant portion of this electricity is used in commercial buildings throughout South Africa. Coupled with the large emissions associated with electricity, the primary source of energy used in buildings, South Africa has a legacy of providing cheap electricity (South African Department of Energy) and as such has not promoted efficient use of electricity. This Chapter looks at the current electricity supply in South Africa, quantifying the grid emissions factor and calculating an approximation of the energy footprint of commercial buildings in South Africa. The current status quo of energy consuming systems in commercial buildings is examined and efficient alternatives are discussed, as well as ways to implement these alternatives in South Africa in order to reduce the environmental impact of building energy use. The energy efficiency potential from demand side management in commercial buildings is discussed, along with renewable energy opportunities in South Africa for commercial buildings. Finally, conclusions are drawn in an effort to provide solutions to increase the greenness of energy supplied and used in buildings.

DEFINITIONS It is important to define the following terms that will be used throughout this Chapter.

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Built Environment

“buildings and structures: human-made buildings and structures, as opposed to natural features” (Encarta).

Buildings

Buildings are defined as commercial buildings in South Africa.

CCGT

Closed Cycle Gas Turbine - Peak power stations operated by Eskom and fuelled using either natural gas or diesel with waste heat recovery for additional energy generation.

CO2e

Carbon Dioxide Equivalent – The unit of measure for carbon emissions.

CSP

Concentrated Solar Power – A solar power station that uses the sun’s heat for energy generation.

Greenness of Energy

The greenness of energy is defined as the environmental impact of the energy and will be measured by the carbon footprint of the energy.

MWh

Mega Watt Hour – 1 000 kWh of electricity with an emissions factor of 1.03 tonnes CO2e/MWh.

OCGT

Open Cycle Gas Turbine – Peak power stations operated by Eskom and fuelled using either natural gas or diesel with no waste heat recovery.

Solar PV

Solar Photovoltaic – Technology to harness the sun’s energy and convert it into electricity.

GCX

Global Carbon Exchange.

IDM

Integrated Demand Management – Eskom’s Funding Programme for Energy Efficiency Initiatives in South Africa

SOUTH AFRICA’S ENERGY SUPPLY Supply Mix Eskom provides 95% of all of South Africa’s electricity (South African Department of Energy), with nearly 90% of this electricity being produced from coal-fired power stations. Figure 3.1 shows a breakdown of Eskom’s generating plant mix as of October, 2010. The large portion of electricity produced, 92.8% (Eskom, 2010), is by coal, which has significant carbon emissions associated with the combustion of the fuel. Only 0.5% (Eskom, 2010) of electricity generated by Eskom is from renewable sources, although there are initial plans in place to increase this percentage by 2030 (Department Of Energy, 2011). These percentages are of energy generated, not the plant demand mix as shown in the graph. While there are plans to diversify energy supply, most notably, the Integrated Resource Plan for

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Figure 3.1: Eskom Generating Plant Mix (Eskom, 2010)

Electricity, the current electricity supply is dominated by coal-fired power and as such is classified as a very non-green form of energy. The reason for this classification is that the carbon emissions associated with the burning of one tonne of coal are 2271 kgCO2e (Carbon Dioxide Equivalent) (DEFRA, UK, 2010).

New Build Programmes South Africa is in the final stages of promulgating the Integrated Resource Plan for Electricity 2010 2030. This plan outlines a further 42 600MW of capacity that will be added to the current generation mix by 2030. It is positive to see that 41% of the planned new build is renewable energy, which constitutes green energy, but unfortunately there is still a significant percentage of fossil fuel-based plants. These will only add to the dirtiness of South African electricity.

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Figure 3.2: Integrated Resource Plan - Proposed New Build MW (Department Of Energy, 2011)

SOUTH AFRICA’S ELECTRICAL CARBON FOOTPRINT Grid Emissions Factor and South Africa’s Electrical Carbon Footprint The grid emissions factor is defined as the total amount of carbon dioxide released into the atmosphere as a result of the electricity generated in a country. As Eskom does not sell all of the electricity it generates as a result of distribution losses and electricity required to run the power stations, there is a grid emissions factor for electricity sold and generated. As we are examining end users of electricity in this Chapter, we are concerned only with the emissions factor for electricity sold. The current reported grid emissions factor for electricity sold by Eskom is as follows: 1.03tonnes CO2e per MWh of electricity generated. (Eskom, 2010). Using the above emissions factor, one can calculate the carbon emissions associated with the electricity used by South Africa. During Eskom’s most recently published report for the financial year ending 31 March, 2010, a total of 242 871 GWh of electricity was produced for sale in South Africa. Using this figure the carbon footprint is calculated:

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Variable

Value

Unit

Total Electricity Production

242 871

GWh

Total Electricity Production

242 871 000

MWh

Grid Emissions Factor

1.03

Tonnes CO2/MWh

Total Emissions

250 157 130

Tonnes/CO2

Total Emissions

250.2

MTonnes/CO2

Table 3.1: Carbon Emissions in South Africa - Electricity

Percentage of Energy to Commercial Buildings The electricity consumption breakdown per sector in South Africa is shown in Figure 3.3. While the largest consumer of electricity by far is the industrial sector, the commercial sector makes up 15% of all electricity consumed in South Africa. This figure is comparable to the mining sector that only uses 16% of the South Africa’s electricity. (African Utility Week, 2011) Using the consumption breakdown and total energy sold by Eskom in a financial year, the following are the calculated electricity requirements per sector in South Africa as well as the associated carbon emissions and are shown in Table 3.2.

Figure 3.3: 2009 Energy Consumption by Sector (African Utility Week, 2011)

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Sector

% Consumption

GWh Consumption

Carbon Emissions MTonnes CO2

Residential

21%

51 003

53

Commercial

15%

36 431

38

Industrial

43%

104 435

108

Mining

16%

38 859

40

Agriculture

3%

7 286

8

Traction

2%

4 857

4 857

Total

100%

242 871

250

Table 3.2: Electricity Consumption and Associated Carbon Emissions by Sector

The total measured and reported carbon footprint of South Africa is 451.2 million tonnes of CO2 (MTonnes CO2).(US Department Of Energy, 2009) The electricity used in the commercial sector, which mainly comprises buildings, contributes 38 MTonnes CO2 to this figure, a total of 8.3% of South Africa’s carbon footprint.

BUSINESS AS USUAL ENERGY UTILISATION Typical Commercial Building Energy Consumption The typical commercial building in South Africa can be classified as per Figure 3.4 from the Green Building Council of South Africa. (GBCSA, 2008) These figures are based on Australian surveys, but are very comparable to South African conditions. This is also comparable to the data that has been found by Global Carbon Exchange (GCX) while conducting detailed energy efficiency audits for our commercial clients. While there have been numerous programmes to promote energy efficiency in both new and old buildings, GCX has found many buildings are still operating inefficiently and utilising old, inefficient technology. The following sections detail GCX’s insights into the status quo of South African buildings based on over 100 energy efficiency audits completed. Lighting Lighting makes up a significant portion of the energy used in buildings (21%) and is often found to be one of the most inefficient systems in the building. Lighting consists of artificial and natural light sources. However, in most cases the natural light source is not useable as the control system for the artificial lighting does not allow for it. In addition to this, the artificial lighting system is typically old and outdated technology that is often uncontrolled and left up to staff to turn off when the day’s work is complete. The typical inefficient fittings and wattages of such fittings found in South African commercial buildings is summarised in Table 3.3. 54

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Figure 3.4: Typical Office Energy Applications (GBCSA, 2008) and GCX Energy Audits

Fitting

Wattage

3 x 1.2m T8 Magnetic Ballasted Fluorescent Fittings

123

2 x 1.5m T8 Magnetic Ballasted Fluorescent Fittings

126

3 x 0.6m T8 Magnetic Ballasted Fluorescent Fittings

66

50W Halogen Down lights with Magnetic Transformers

57

Table 3.3: Inefficient Lighting Systems

All of the fittings shown in Table 3.3 are commonly found throughout South Africa and are regarded as the low hanging fruit in facility when looking for ways to save energy. However, the technology must be examined in conjunction with the control of the fittings. Ensuring that lighting systems are off when not required is vital in reducing the electricity consumption of a building. The following commonplace example is used to demonstrate this: A commercial office has two 3x1.2m Magnetically Ballasted Fittings inside. These fittings are controlled by a single group switch for the entire floor that is left on so that the security guards can make their regular night patrols. The office also has a large window, which allows in enough light in the summer months for the required lux levels to be met for four hours a day and two hours a day in winter months. The office is occupied, on average, eight hours per day, five days per week.

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Variable

Value

Units

Wattage of Lighting in Office (2 x 0.246 123W)

kW

Operating Hours (24 hours per Day, 365 days per year)

8760

Hours

kWh Consumption

2155

kWh

Cost per kWh

R0.50

Annual Electricity Cost for Office R1077.50 Lights

It is decided to retrofit the lights with 3x1.2m T5 Fluorescent fittings and an occupancy sensor with daylight control. Table 3.4: Office Lighting Example

Variable

Value

Units

New Wattage of Lighting in Office (2 x 91W)

0.182

kW

Operating Hours (24 hours per Day, 365 days per year)

8760

Hours

kWh Consumption

1594

kWh

Percentage Saving

26%

T8 to T5 only

OCCUPANCY SENSOR SAVINGS Wattage

0.182

New Operating Hours

2080

kWh Consumption

378

Percentage Saving

82%

kW kWh

INCLUDING DAYLIGHT CONTROL Wattage

0.182

kW

New Operating Hours (4 Hours per Day Summer, 6 Hours per day Winter)

1300

Hours

kWh Consumption

236.6

kWh

Percentage Saving

89%

Table 3.5: Retrofitted Office Lighting

By redesigning the entire lighting system to minimise the operating hours, while using the most efficient fittings, an extremely large saving can be achieved.

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HVAC A large variety of HVAC systems are found in South African buildings and consume on average, 63% of the electricity in buildings. This is the sum of the cooling (28%), heating (13%) and air handling (22%). While there is a significant number of buildings in South Africa that have large, efficient, well controlled central cooling plants, there are numerous buildings that have low efficiency plants. The common inefficiencies found in HVAC systems in South Africa are: • Incorrect matching of supply and demand An example of this is using a large central chilled water plant to run throughout the night to cool the server room when the central plant is large enough to cool the entire building. This causes the plant to run inefficiently at a very low load and is a waste of energy. A far better alternative is to install dedicated cooling equipment that is sized to match the 24-hour cooling demand. • Poor Control and Maintenance It is often found that while the technology is efficient, it has not been maintained correctly or it is not controlled correctly. An example of this is air handling units that have clogged filters and that are left on all night as there is no control system to turn them off. • Multiple Split Units to cool a building Many smaller commercial buildings utilise many small, individual units that have a far lower coefficient of performance than larger systems. While not all buildings are large enough for a chilled water plant, there exist many alternatives to the multiple split unit scenario, such as correctly sized and controlled variable refrigerant units where a few large compressors with higher efficiencies are used to produce the cooling required for the building. • Damaged Temperature and Air Flow Sensors When large central plant systems are installed, they rely heavily on temperature and air flow sensors to regulate the temperature of the supply air required. When these sensors are not correctly calibrated, or not functioning, the chiller plant does not operate at maximum efficiency. • IT Systems In a typical office environment the IT systems consume on average 11% of the total energy used. While many companies focus on ensuring that the server side of the IT system is operating efficiently, the client side of the system is often neglected - particularly the control of the IT system.

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In many environments, personal computers are simply left on throughout the day and night by users and consume large amounts of energy in the process. A typical PC has a power rating of around 100W and when it operates for 8 760 hours a year, this is a significant amount of energy consumed.

By ensuring that computers are turned off when not required, a significant energy saving can be achieved, simply by altering people’s behaviour or implementing automatic control systems.

Water Heating Although a very small percentage of electricity consumption in buildings is attributed to water heating, it is almost always disregarded. Geysers are normally uninsulated and not controlled, with high set points. This leads to energy wastage, as their heat losses to the ambient environment are large, especially in a geyser where the water stands for long periods of time, as found in many commercial buildings. These standing losses can be reduced by as much as 27% through the installation of geyser blankets and piping insulation to the hot water pipes. (Harris, A et al., 2008) National rebate schemes, offered by Eskom IDM on solar water heaters and heat pumps reduce the upfront CAPEX requirements for these efficient alternatives to the conventional electrical geyser and can often save up to 80% of the energy used for water heating.

REDUCING THE ENVIRONMENTAL IMPACT OF BUILDING ENERGY USE While South Africa’s commercial buildings contribute significantly to the carbon footprint of the country and are not considered very green, there are ways to reduce the environmental impact of the energy usage of buildings. These are described in the following section. Energy Efficiency Audits and Project Development A comprehensive energy efficiency audit is the first step in reducing the electricity consumption of a building. An energy efficiency audit identifies how much energy is being consumed by various systems within a building and how efficiently this energy is being consumed. An audit should look at historical energy consumption data trends and tariffs, as well as the following systems:

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PROFILE

PEER Africa We are change agents. PEER Africa an award winning and recognised South African registered design-build engineering, development and project management firm. As a woman owned South Africa turnkey integrator and solution service provider since 1995 PEER and its affiliates specialize in the development of integrated healthy, energy efficient and environmentally friendly benchmark human settlement and commercial development projects featuring alternative and renewable solutions. The aim is to work hand in hand with communities, private sector and government to contribute to the eradication of poverty and promote sustainable economic development on the continent of Africa via a bottom-up SME empowerment model known as iEEECO™. iEEECO™ is PEER’s sustainable development model which stands for integrated energy environment empowerment –cost optimisation. The value is based on the proven independent certified results that iEEECO™ projects generally provide. The value can be seen in the promotion of new bankable developmental projects and programs featuring African Small Medium Enterprises (SMEs), Private Public Partnerships, verifiable energy savings for our clients, job creation, health improvements, greenhouse gas emissions avoidance, mitigation and reductions in negative externalities associated with development under business as usual practices.

THE PRIMARY BUSINESS FOCUS AREAS

We are focused on scaling up existing proven turnkey iEEECO™ clean development show case/ benchmark projects in the residential, commercial, government and rural Agri-development sectors. • We are experienced in sustainable development planning, design, development, upgrading, operation and/or privatization of Municipal and Agricultural Infrastructure Systems • As an Eskom ESCO for more than 10 years we are experienced in integrated RE and Clean Energy Development domestic and emerging agri-cultural program design: we focus on verifiable energy, domestic environmental health and safety and agri-interventions to status quo development using a number of interventions including but not limited to the following: • Demand and Supply-side Energy Management and Power Generation: Clean energy development offers the challenge of reducing or avoiding inappropriate/unsafe energy systems in Brownfield settings and supports the development of safe efficient domestic appliances and appropriate clean energy systems for new Greenfield developments. • Integrated greening, water savings, recycling and management projects. • Solid waste recycling and management. • Clean Transport • Emerging agribusiness development in rural farming communities • Eco-tourism • Green Finance/Performance Based Contracting

Contact details

Douglas ‘Mothusi’ Guy Tel: +27 (0) 82 579 6032, Fax: +27 (0)86 654 4308, E-mail: dlguysr@mail.ngo.za Local WEB site under construction alternatively www.peercpc.com


CHAPTER 03: GREENING THE BUILT ENVIRONMENT

• Power Factor and Voltage Supply • Lighting Technology and Control • HVAC Technology and Control • IT Equipment Technology and Control • Water Heating Technology and Control, From the initial audit a detailed energy management action plan should be drawn up which is broken down into the following sections:

Figure 3.5: Energy Action Plan

This energy action plan forms part of the project development which allows for further investigation into various funding options, which include bank finance and Eskom funding. The Importance of a Systems Approach When looking at energy efficiency projects, it is vital to guard against the ad-hoc approach of installing a single technology that will save energy. A systems approach is required when looking at the building as a whole as each energy consuming system is linked and affects all the others. One example of this is how the voltage supply can affect the use of sophisticated electronic control gear. If one simply installs electronic controls without examining the voltage supply, then the electronic controls can often be damaged if the voltage supply is not stable.

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greenHouse Computers™ Africa

Computers for a Greener Planet - Sustainable Energy Systems monitoring, logging and management products Installers, operators and users alike seek new methods of improving energy production and conservation and require continuous validation and management for the systems they operate.

At greenHouse Computers™ we have various platform independent hard and software products designed to monitor and manage energy systems that cater for many sizes and types of system. Our flexible platform combines supported inverters, charge controllers, relay control, AC/DC metering and various environmental sensors. The greenMonitor™ software logs and processes the available system information and displays it in an accessible interface which includes various management, monitoring, statistical reporting and analysis tools for end users, installers and site managers. Hardware Solutions We test and add products to our extensive range of supported devices on a regular basis. Out latest innovation is the greenMonitor Lite™; a 5Watt DC embedded computer configured with greenMonitor™ software creating a robust base for a fully-functioning 24/7 monitoring solution incorporating data logging, a web server and remote management. Our DC powered Personal Workstation is the ideal platform for our greenMonitor™ business edition, suitable for small to medium sized wind and solar power system installers in need of client monitoring. By offering solutions based on equipment with a proven track record, we are able to provide reliable monitoring tools which meet the needs of basic and advanced users alike. Software Solutions greenMonitor™ software easily handles smaller systems, from 300 watt to 50 kilowatt commercial scale plants, all on a single platform, reducing the number of products you will need to learn and support.


CHAPTER 03: GREENING THE BUILT ENVIRONMENT

Another example is installing occupancy sensors onto old fluorescent fittings. While the sensors and lights will work initially, the lifespan of the ballasts and tubes in the fittings will be significantly reduced. As all the systems in a building are linked, it is therefore important to do a full investigation and to plot out an action plan for energy reductions as the whole is often greater than the sum of all its parts. This action plan should, however, identify individual projects that can be easily Measured and Verified so that Eskom IDM funding can be accessed. Energy Efficiency Training Sustainable energy savings are only ever fully achieved when staff and end users are educated and their behaviour is changed. Training in energy efficiency or education around keeping an office green is vital to sustainable energy savings and should be encouraged throughout all organisations. While energy consultants give valuable insights into a building’s energy performance and can assist in developing implementable action plans, it is imperative that all staff members in a building are educated in energy savings and that the staff members who maintain and operate the building are thoroughly trained in energy efficiency and efficient technologies.

SOUTH AFRICA’S ENERGY EFFICIENCY POTENTIAL IN BUILDINGS South Africa has significant energy efficiency potential in buildings as has been seen by the author through the energy efficiency audits undertaken. It is regularly found that commercial buildings can reduce energy consumption by 20% to 30%. This is further backed up by the Energy Conservation Scheme (ECS) which would require commercial buildings to reduce energy consumption by 20% should it become mandatory. (Yelland, Chris, 2009)This potential 20% equates to 7.6 MTonnes CO2, a significant decrease in the environmental impact of the energy used in buildings in South Africa.

CONCLUSION In conclusion, while South Africa is a high emitter of CO2, primarily as a result of our electricity generation and consumption and while buildings comprise a significant portion of electricity consumed, through education and energy efficiency project development, the greenness of South African buildings can be improved significantly. By conducting detailed energy efficiency audits across all energy users in a building and designing a detailed energy action plan, that includes behavioural changes, Immediate and future retrofits as well as long-term upgrades, significant energy savings can be achieved.

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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. Contact us Lammie de Beer,Managing Director Technopol (SA) Pty Ltd, 9 Wright Road Extension Nuffield P.O. Box 2445, Springs, 1560 Telephone 011 363 2780 Fax 011 363 2752 Email info@technopol.co.za Website www.technopol.co.za


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REFERENCES African Utility Week. 2011. Financial Instruments for Large Power Users. [online]. DEFRA, UK. 2010. 101006-guidelines-ghg-conversion-factors. [online]. Department Of Energy. 2011. Integrated Resource Plan for Electricity 2010-2030 Final Report. South Africa. ENCARTA. Built Environment Definition. [online]. [Accessed 13 April 2011]. Available from World Wide Web: < HYPERLINK “http://encarta.msn.com/ dictionary_561502078/built_environment.html” http://encarta.msn.com/dictionary_561502078/built_environment.html > Eskom. 2010. Eskom Annual Report. Eskom. 2010. Generation Business Plant Mix. GBCSA. 2008. Technical Manual Green Star SA - Office v1. Cape Town. Harris, A, M Kilfoil, and E-A Uken. 2008. Options for Residential Water Heating. In: DUE. Cape Town: Energy Technology Unit, CPUT. South African Department Of Energy. Basic Electricity. [online]. [Accessed 13 April 2011]. Available from World Wide Web: < HYPERLINK “http://www.energy.gov. za/files/electricity_frame.html” http://www.energy.gov.za/files/electricity_frame.html > US Department Of Energy. 2009. International Energy Statistics. [online]. [Accessed 13 APril 2011]. Available from World Wide Web: < HYPERLINK “http://tonto.eia. doe.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=90&pid=44&aid=8” http://tonto.eia.doe.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=90&pid=44&aid=8 > Yelland, Chris. 2009. Update and details of the Energy Conservation Scheme (ECS) and associated punitive tariffs. EngineerIT, February, p.7.

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Q2Q About Us

We co-ordinate the physical workplace with your company’s people and the work you do, integrating the principles of business administration, architecture, and the behavioural and engineering sciences. Effective management of a company’s building stock is no longer confined to operational efficiencies and effectiveness, but directly impacts the ability of any business to achieve its goals. Our services support and improve the effectiveness of your business’s primary activities. We take the strain out of running your support services, freeing you to concentrate on the performance and profitability of your core business. Facilities management plays a key role in advancing business strategy The increasing pace of globalisation, rapid advances in technology, aging building stock and broadening diversity in the workforce place facilities management in a unique position to add strategic value to the organisation. Here are some of the ways in which Quay 2 Quay Facilities Management enables the achievement of business strategy: • Emergency preparedness ensures business continuity in the case of fire, floods, industrial action, vandalism, Internet failure, hacker attacks on IT systems and other sources of disruption. Facilities managers play an important role in business continuity plan development and management, helping to make certain that business can continue as normal. • Change management, including operational, construction and regulatory changes, is fundamental in any organisation. Leadership and direction of the process of organisational transformation is critical, especially with regard to human aspects and overcoming resistance to change. • Because facilities managers know how buildings work in practice, the facilities management approach emphasizes sustainability, long-term thinking and life-cycle costing. • By leveraging emerging technology, facilities and asset management is helping to drive business towards ever-increasing levels of efficiency, availability and transparency. • Globalisation has lured many operations to offshore locations. Mergers and acquisitions have expanded businesses from local or regional sites to globe-spanning enterprises. Facilities management can reduce both the complexity and costs involved.

What We Do

Quay 2 Quay offers an integrated facilities management package which allows our clients to leverage our unique blend of expertise in this sector. Our service offering includes: • Hard services • planning and implementing the maintenance of properties, systems and services • provision of building maintenance and contracts • monitoring facilities for clients • disaster recovery and contingency planning • attending to the management of incidents and emergencies • determining the effectiveness of security measures


PROFILE • Soft services • provision of consumables, management of maintenance contracts, • landscaping services • Specify, commission and manage external contracts and agreements • Provide remote support for products or services • Environmental solutions • provision of ISO 14000 accreditation, a management tool which enables organisations to identify and control the environmental impact of their activities, products or services, to improve environmental performance continually, and to implement a systematic approach to setting environmental objectives and targets • provision of waste solutions to clients • ensuring compliance with local authority regulations where applicable • contributing to maintaining sustainable development and environmental good practice at work • space management • energy management • Health and safety solutions • audits, implementation of solutions, monitoring of health and safety and reporting • ensure health and safety requirements are met according to each area of responsibility Contact Quay 2 Quay to find out more about how we can help you to improve your business by managing people, processes, technology and assets more effectively. Contact:

P O Box 382, Isando, 1600 Telephone: +27 11 409 9746 Cellphone: +27 83 704 8119 Email: avanachter@q2qfacilities.com Website: www.q2qfacilitiesmanagement.com


PROFILE

SANTAM The challenge of energy efficiency is closely related to climate change. Short-term insurer, Santam is already well aware of risks related to extreme weather events and is preparing to reduce future impacts on its business, starting with improving energy efficiency internally. As Santam has incorporated environmental awareness into its corporate policies and has engaged in increasingly transparent and detailed reporting, energy has been pushed to the top of the facilities management agenda. The tighter management of energy at the Santam Head Office in Bellville has resulted in an 11% reduction in energy use from the 2007 baseline.

Ways of saving

Santam started with the basics – looking at its electricity account, discerning trends and finding quick sustainable solutions that could be implemented for example, giving the cleaning company access to the building at night to clean floor by floor, switching on the necessary lights (other than minimum emergency lighting). The centralised air-conditioning system, which is the biggest energy consumer at Santam head office, is now run a few hours less each day resulting in another large saving. Santam has also installed real-time energy-use monitoring software at its Illovo office. This not only allows the company to be more responsive and precise in managing consumption, but provides a framework within which to test the efficacy of new technologies


PROFILE

Reducing carbon footprint

Highlights of Santam’s 2009 Carbon Footprint Report include the continued reduction in purchased electricity consumption and reduction in business travel using rental cars and commercial flights. Purchased electricity consumption at Head Office has been reduced from 4 252 530 kWh in 2007 to 3 814 380 kWh in 2008 and 3 643 670 kWh in 2009. Purchased electricity is the highest contributor (58%) of tonnes of CO2e in 2009 indicating the importance of initiatives being undertaken to further reduce consumption. When going to print, Santam’s 2010 carbon measurement was not complete but will be available online at www.santam.co.za.

Spreading energy savings

Santam aims to instill a ‘savings culture’ with staff to think globally about their impact on the environment and resource consumption but to act locally. The aim is to drive the awareness not only at work but at home as well. Staff members receive continuous education on issues such as energy, water and waste management through internal communication channels and awareness sessions. Taking its commitment beyond its own people and offices, Santam has partnered with Eskom in its solar water heating rebate programme, making it the first South African insurer to offer its residential clients the opportunity to claim energy-efficient, environmentally-friendly solar water heaters to replace burst conventional geysers. Contact us:

Ian Erlank Sanlam Group Limited Tel +27 21 947 2600 e-mail ian.erlank@sanlam.co.za Web www.santam.co.za



CHAPTER 04: CORPORATE ENERGY EFFICIENCY – BEST PRACTICE

CORPORATE ENERGY EFFICIENCY – BEST PRACTICE Manie de Waal Business Manager Energy Partners

INTRODUCTION Corporate Energy Management (CEM) potentially offer very attractive returns tcompanies, and could well feature prominently on corporate agendas in the 21st century. Minimisation of energy consumption without compromise on performance poses diverse engineering challenges when implemented on an organisational level. Some of these challenges could include: • Large energy portfolios (hundreds of branches/stores/buildings – hereafter referred to as ‘sites’) – only holistic energy management strategies can deliver solutions which are scalable • Geographically dispersed portfolios • Not much technical knowledge, or interest, ‘on the ground’ Without a clear understanding, and application, of the motivation for energy efficiency, executives and managers will find it impossible to successfully drive organisations towards setting industry benchmarks and adopting best practices. It is also important to note the difference between energy efficiency and energy effectiveness. To make it more practical, switching off a light bulb when the light is not needed is deemed as energy effective. Replacing the light bulb with a bulb that produces the same lux levels (measure of light intensity) while consuming less electricity, is energy efficient. Three main drivers are moving South African companies towards CEM: • The business case • Legislative developments/ incentives • Public relations/marketing value

THE BUSINESS CASE The many problems Eskom faces have been well documented in recent times, with business and residential load-shifting a recent memory of all South Africans. (Load-shifting has since ceased to be the biggest problem Eskom has to deal with, since the present peak demands have now flattened THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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Figure 4.1: Electricity price increase

and the important strategy is to reduce the energy base load.) Apart from Eskom and government strategies that are currently being executed to bridge the shortfall in supply and ensure longer term sustainability of supply, large reliance is placed on price increases to curb demand and to fund capacity expansion. For example, in the retail sector, electricity prices have quadrupled from 2008 – 2011. In some instances, electricity has already overtaken rent as a monthly expense, second only to labour costs. South Africa’s history of cheap energy never necessitated the replacement of equipment in view of rising energy costs. South African businesses are also not used to managing energy as a prime cost driver. With the advent of technology, and our rapidly rising energy costs, very attractive ROIs (30%+) are available for energy efficiency projects. Various financing options, incentives and tax breaks are also available, enhancing the business case for investing in energy efficiency.

REGULATORY PRESCRIPTS Following international trends, the South African government is considering various legislative measures to ensure increased energy efficiency. These come in various forms, from tax incentives to punitive penalties, and are in different stages of finalisation, but a clear emerging trend is more focused on offering real and accessible incentives to unlock energy efficiency, eg SANS 204 on energy efficiency requirements. Eskom has various standard offer products it will subsidise. 72

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PUBLIC RELATIONS VALUE The international trend of more environmentally conscious consumers is also starting to be seen in South Africa. What started with a focus on general health is now augmented with concepts such as ‘clean energy’ and ‘carbon neutral’ in the consumer’s mind. With 90% of the South African power supply being coal driven (hence our power supply being seen as ‘dirty’), the majority of many organisations’ carbon footprint is made up of electricity consumption – in many cases in excess of 90%. In these cases the easiest way to become a ‘cleaner’ company is to use less energy. This ‘less energy’ is achieved inter alia by energy efficiency measures. It is clear that the organisation that consumes the least energy, with comparable output, will be seen as the industry leader when it comes to energy efficiency. Setting local Best Practice standards therefore assumes that a company will also be the industry leader in energy efficiency achieved.

SETTING BENCHMARKS With the above three drivers for energy efficiency in mind, it becomes easier to move companies towards energy efficiency, or to aim for setting industry benchmarks. As an overarching principle, the success of any CEM programme hinges upon a union of technology, finance and management. Global best practice dictates the following to be included: • Commitment by upper level management • Clearly stated energy efficiency goals • Communication of goals, tactics, and achievements throughout all levels of the firm • Delegation of responsibility and accountability to the appropriate personnel • Sustained tracking and assessment of energy use and technology application • Continuous investigation of potential energy reduction projects • Evaluation of energy projects with reference to business investment models • Establishment of an internal recognition and reward programme for achieving energy goals.

MECE FRAMEWORK Energy managers would dwell to constantly keep the following MECE (Mutually Exclusive Collectively Exhaustive) framework in mind:

Figure 4.2: MECE Framework THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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Are We Only Using Electricity When Needed? Focussing on behaviour (human) element, is the easiest opportunity to identify, and can be addressed with relatively low capital outlay. Initiatives that can be considered here:

• Accountability Geographically dispersed energy portfolios necessitate regional and site specific responsibilities for energy management. Energy management should be made part of senior management’s Key Performance Indicators.

• Identify and train people Site and regional managers should be trained in the principals of energy and energy management, as well as equipped with tools that will facilitate this. Care should be taken to present complex issues and concepts in simple and relevant language, while especially stating the compelling business case for energy efficiency

• Energy Management Tools • Daily Energy Dashboards that are site specific, clearly displayed in public area (foyer etc.) • Companywide awareness campaigns to increase awareness of all employees about their electricity usage • Specialist maintenance staff to adjust, re-set etc, all energy consuming plants on the site

Are We Being Supplied With What We Need? Due to losses in electrical transmissions lines and in transformers, a higher than required voltage (up to ±250Volts) could be supplied by the grid. This overvoltage situation can cause equipment to prematurely fail or to consume more energy without any performance benefits. Voltage Optimisation equipment ensures an optimum supply voltage for the electricity consumer.

Power Factor Correction Power Factor is the ratio of useful power (real power) used by the site divided by the total power (apparent power) that is drawn from the grid. Apparent power includes power that is unusable, so a power factor of 1 is desirable. As most electricity tariffs include a charge for demand (or apparent power), Power Factor Correction is a way to ensure that you are not paying for electrical supply that is not used.

Are We Using Electricity Most Efficiently? As a first consideration, an initiative that generally yields favourable returns is the correct wiring of keyswitches. Behavioural initiatives will quickly point out sites that do not conform to target behaviour, 74

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but it may well be that it is impossible for these sites to achieve target behaviour, because of incorrect wiring of key switches.

Paying For What Is Consumed? Comparing consumption data as per your metering solution with month- end utility accounts will give an indication of accuracy of statements. Periodic verification of the correct tariff structure for the consumption and demand profile also offer the opportunity to save. There are many factors to consider here, and companies exist that specialise solely in doing this for large energy portfolios. The principles of successful CEM mentioned above can be reframed more practically in the following steps, by which Best Practice standards can be judged. The execution of these will determine whether a company becomes an industry leader.

Figure 4.3: Holistic Energy Management

1. Make A Commitment As with every endeavour, be it the CEM programme, a new customercentric approach or reengineering

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somar™*eluma - Manufactured under license by RV Technologies

Intelligent Energy-Saving Lighting - High-Level What is Somar Eluma?

A range of energy-efficient lum inaires that use sophisticated photom etric design to deliver high lux levels w ith good quality, evenly distributed light from the latest lam p technology. Perform ance is further enhanced, in certain m odels, via an intelligent sensor system that not only m onitors and reacts to occupancy but also responds to am bient light. Savings in excess of 80% have been achieved in m any cases over traditional lighting .

What is the difference? L o w er co n n ected lo ad

Few er lu m in aires n eeded

An instant energy-saving of 54% w hen replacing a standard 400W m etal halide or SO N lum inaire w ith a Som ar Elum a.

O ne Som ar Elum a unit can typically replace 2 or 3 traditional fluorescent lum inaires, yet still provide higher lux levels.

What will you notice? B etter qu ality ligh t Som ar Elum a’s high output m eans that you w ill notice a better quality light than you m ight be used to from either a standard fluorescent, m etal halide or SO N. The light colour from Elum a is a closer m atch to sunlight.

Where can Somar Eluma be used?

A ddition al in telligen t co n tro l Som ar Elum a lum inaires boast a sensor system that can m onitor natural light and m ovem ent, turning on/off and dim m ing w hen required.

Co n sisten cy The light output from the lam ps used in Som ar Elum a lum inaires rem ains consistent com pared to m etal halide or SO N fittings w hich w ill dram atically degrade over a period of tim e, often by 40% . ·

· Som ar Elum a can provide high quality · light across a variety of com m ercial and industrial settings. Popular locations · include:

Co o ler Som ar Elum a runs very close to am bient tem perature, often reducing load on H VAC system s w hen replacing inefficient m etal halide or SO N system s.

D istribu tion an d sto rage w areh o u se (am bien t an d ch illed) M an u factu rin g areas R epair areas / sh ipy ards / aircraft h an gers / B u s an d train depo ts

· · · · ·

For further information and technical specifications contact adm in@ rvtechnologies.co.za vic@ rvtechnologies.co.za zenda@ rvtechnologies.co.za

Vic Engelbrecht Zenda Engelbrecht

In stan t strike Som ar Elum a lum inaires can be sw itched on and off as required, and do not need additional tim e to w arm -up and reach full brightness.

L ess glare An even, linear light source w ith less glare m akes for a better w orking environm ent, especially for those repeatedly looking up tow ards the ceiling; such as, for exam ple, a forklift driver.

W areh o u se-sty les retail L o adin g bay s L eisu re facilities (sports h alls, etc) M u lti-sto rey car parks T rain statio n s

RV Technologies at :

+ 27 (0)47 531 5165 +27 (0)82 852 5766 +27 (0)82 492 2551

somar™*


CHAPTER 04: CORPORATE ENERGY EFFICIENCY – BEST PRACTICE

of a supply chain, commitment will determine its success. Stating the organisations intent is realised through the following:

• Appoint an Energy Director An Energy Director champions the energy cause in the organisation. He or she does not have to be an expert on all facets of energy management, but an understanding and passion of how effective energy management helps the organisation achieve its financial and environmental goals is essential. Depending on the size of the organisation the Energy Director can be a full time or parttime position, but it is important for the Energy Director to report directly to senior (board level) management. An executive ally can do much to formalise and drive energy management as part of long term strategy.

• Appoint an Energy Team The Energy Director must appoint, and lead, the Energy Team. The Energy Team is responsible for planning, tracking, implementing and reporting of energy management initiatives. The Energy Team should be made of people representing different parts of the organisation – e.g. Purchasing, Building/Facilities Management, Environmental Health and Safety, etc. As such, appointment to the Energy Team is normally not a full time position, and care should be taken to select people with a passion for energy and environmental related matters – which invariably can be found in every department of an organisation.

• Institute an Energy Policy An Energy Policy, sanctioned by none other than the CEO, states the organisation’s short and long term CEM goals. Best Practice dictates that the Energy Policy is specific and binding regarding the following:

• Vision: This can commit the organisation to be the industry leader in energy efficiency, or be less ambitious, i.e. a more general commitment to energy efficiency. As a minimum, an organisation should aim to comply with all legal requirements that apply to its energy using activities. • Goals: The more specific, the better. Linked to the vision statement this can clearly state short and long term goals, e.g. 50% reduction from current measured baseline consumption – by a specified date in the future. • Commitments: Financial and human capital is committed, depending on the organisation’s goals. Specifics can include authorisation for all energy efficiency projects with a ROI higher than set percentage (internal hurdle rate or cost of debt).

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Emergent Energy Emergent Energy is a South African company that specialises in the delivery of Renewable Energy solutions and consulting. Products offered by Emergent Energy include the innovative solar heat pump solution from ENERGIE. Combining the best of both solar water heater and heat pump technologies, the ENERGIE product offers best in class efficiency, reliability and value for the supply of large volumes of hot water. Retrofits can be financed off the savings alone, and Emergent Energy offers innovative financing packages for such solutions. Consulting services offered by Emergent Energy include: • supporting wind and solar farm developers with policy consulting and wind/solar resource assessment services; • supporting renewable energy funders with due diligence services; • designing small to large renewable energy systems; • delivering large hot water solutions to property developers; • undertaking energy audits and energy efficiency studies; • consulting to government around Green Economic strategy. Emergent Energy is a BEE company and is 25% owned by the Sekunjalo Group. Contact Details Tel: +21 (0) 21 658 4100 Cell:+27 (0) 83 457 1918 Fax: +27 (0) 86 653 6234 www.emergy.co.za


CHAPTER 04: CORPORATE ENERGY EFFICIENCY – BEST PRACTICE

There could be further commitment to projects that may excluded from the above, but that the organisation is willing to undertake in order to set industry benchmarks. 2. Assess Performance “What cannot be measured cannot be managed” holds for energy management as much as any other function in the organisation – in many cases even more so. Energy, by its very nature, is measurable in physical units – be it in kilowatt-hours or steam flow rate. As such it lends itself to tracking and measurement, more so than some other functions like customer satisfaction or the success of marketing campaigns. Key steps in performance assessment include: • Gather and track data – used for establishing baselines and to track future performance. In order to achieve this, the organisation must invest in a metering solution that tracks daily consumption per specified time interval. Many of these are available, especially important is the following: • Own or rent the meter – both have their merits. Metering solutions are available that are compatible with most meters. (If the meter is owned, the ‘metering solution’ would be the service of collation, processing and publication of data by a third party.) • A reputable metering company with a track record • Daily publication of consumption data, in a format that can be modelled • Access to the raw energy consumption data, by responsible manager • Strict SLA agreements to govern the availability and completeness of data • Ensure and test that meters are wired correctly, only Air Conditioning (AC) equipment should be tracked by AC meter (and not, for instance, include some of the lights). This is known as split metering. • Establish baselines – establishing the starting point (current state) from which to assess future performance. This is part of the initial Energy Audit. • Benchmarking – comparing energy performance between facilities, and industry benchmarks, enables prioritisation. In many instances energy management adheres to the 80/20 principle – where large gains are available small interventions. • Analysis – establish energy use patterns and trends. Use this for identifying possible problem areas. A framework for analysis could be: • Establish energy intensity of all sites, this can be expressed as kWh/m2 or kWh/R (of turnover) • Normalise the energy intensity of all sites by referring to a ‘normal’ site – this facilitates comparisons of energy intensity • Rank all sites, after normalisation, from most to least energy intensive • Combining energy intensity rankings with others, such as ‘progress from baseline’, will give an indication of where immediate focus must go (the sites with the highest energy intensity, with the least progress compared to baseline, should be the first priority – as this would point to no THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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PROFILE

Energy Cybernetics

Energy Cybernetics plans and executes energy management strategies, projects and plans that transform organisations into effective and responsible energy consumers – we deliver energy excellence! TECHNOLOGY ALONE WON’T DELIVER THE ENERGY SAVINGS IT IS DESIGNED TO. ENERGY OPTIMISATION DOES. Energy optimisation goes beyond the installation of energy efficient technologies like energy efficient lights, or motion sensors, etc. Just like any other form of management, energy optimisation is an ongoing process that needs continuous human support and attention. Partnering with a reputable energy optimisation specialist like Energy Cybernetics will ensure that investments made towards energy efficiency will result in positive returns and continuous benefits for an organisation. These benefits could include lower energy bills, independently verified savings for tax incentives, compliance with environmental requirements and various national and international standards, improved production processes, and ensuring that all new equipment and projects deliver the expected performance and savings. ENERGY EXCELLENCE. DELIVERED. CLIENTS IN AFRICA. Energy Cybernetics has delivered energy excellence to clients which include Eskom, Sasol, Anglo American, Goldfields, Siemens, Exxaro, CSIR, Vodacom, Avis, BMW, MTN, Netcare, Samancor, Rand Water, De Beers, Bayside Aluminium, Old Mutual Properties, World Bank, East African Portland Cement Company, SAB, Barloworld and many more. More than 200 industrial and commercial energy optimisation audits and projects have been completed in South Africa, Botswana, Kenya, Angola, Zambia, Mozambique and Zimbabwe which has allowed the company to develop into the leading energy optimisation company serving Southern Africa. CONTACT INFORMATION: Gustav Radloff, MD Cell: 083 441 1094 Email: gustav@energycybernetics.com Frikkie Malan, Business Development Manager & Sales Cell: 082 789 7238 Email: frikkie@energycybernetics.com LJ Grobler, Director Cell: 082 452 9279 Email: lj@energycybernetics.com


CHAPTER 04: CORPORATE ENERGY EFFICIENCY – BEST PRACTICE

change in behaviour, and inefficient technologies) • Technical assessments and audits – detailed energy audits, carried out by professionals, evaluate actual performance against designed performance, or against best available technology. The difference between these is the potential for saving. These results should be compared to the modelled projections above.

3. Set Goals Goal setting is an entrenched function in organisations, and holds as much benefit for CEM. It starts with the formulation of the Energy Policy – the more specific the better. If an organisation is aiming for a stated percentage reduction in consumption, it becomes easier to translate this to individual business units or facilities. When setting goals, keep the following in mind: • Scope – set goals for the whole organisation, business units, facilities and/or specific process; consider long term versus short term goals • Potential for improvement – comparing baselines to best performing sites and/or industry standards will provide information on what is possible to achieve

4. Establish Action Plans Unlike the Energy Policy, Action Plans are updated and modified, based on performance and achievements. They are detailed by nature to ensure the systematic implementation of energy management measures. Consider the following when drafting Action Plans: • Technical steps – these are the steps needed that will move a business unit, facility or process towards energy efficiency (Energy audits normally point the way to what is needed to improve energy efficiency. Furthermore, performance targets, timelines and tracking systems should be considered) • Resources – what should be involved and what will their responsibility be. Identify internal and external roles, and establish performance standards for contractors

5. Implement Action Plans A successful CEM programme hinges critically on the desired contribution of people on all levels in the organisation – especially as energy management is in most cases an addition to their functional responsibility. It can be compared to a Health and Safety programme, where each person needs to take responsibility, and celebrate success. The following measures will go a long way in ensuring that the CEM programme becomes part of ‘the way we do things.’

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PROFILE

Single Destination Engineering Single Destination Engineering is a design and engineering company providing a range of services, specialised in the following fields: • Energy efficiency and optimisation • Energy centres and power solutions • High resilience electrical installations SDE is active in the development of clean energy projects, utilising alternative sources such as gas and solar power. Our designs focus on achieving the best practical energy efficiency, with the lowest possible impact to the environment. We empower our people by fostering a sense of individual purpose by promoting a challenging environment of continuous learning and focused training. All staff are supported by the latest IT infrastructure and operate on a common platform of the latest versions of Microsoft Office Professional, AutoCAD and Revit. In today’s world of ever-changing technologies and standards, SDE aims to be at the forefront of innovation. A significant portion of company resources is directed into the research and implementation of new technologies and methodologies. SDE is an ISO 9001 accredited company. This enables continuous improvement of our Quality Management System and ensures ongoing, top quality service to our clients SDE is a Level 3 BBBEE contributor and supports the principles of Broad Based Black Economic Empowerment. Sustainability Services SDE specialises in implementing energy efficient solutions in both new and existing installations including: • • • • •

Energy efficiency optimisation, certification and conservation in accordance with SANS 204. Energy usage monitoring, auditing and optimisation. Clean generation using natural gas. Waste heat utilisation for building heating and cooling. Solar power applications including power generation and building heating/cooling. • Efficient lighting and air conditioning solutions. Contact Us 29 Galaxy Avenue, Linbro Business Park, Sandton, South Africa PO Box 5821, Rivonia Tel: 011 997 2340 Fax: 011 997 2360 Email: contactsde@sde.co.za Website: www.sde.co.za


CHAPTER 04: CORPORATE ENERGY EFFICIENCY – BEST PRACTICE

• Communication plan – targeted information for key audiences about the CEM programme, stating the critical need and goals. • Awareness – build support at all levels of the organisation for the CEM programme, initiatives and goals. • Capacity – training and access to information will expand capacity of staff to contribute to the CEM programme. • Motivation – incentives that encourage individual staff or business units to achieve goals.

6. Evaluate And Communicate Results With energy lending itself to accurate measurement, it is relatively easy to track and monitor results and progress. In many instances the effect of energy initiatives has a very direct consequence and it is relatively easy to relay these to earlier goals and targets. Consider the following: • Accuracy of measurement – energy data analysis can quickly become complex, with missing data a regular occurrence. Extrapolation can quickly lead to manipulation – ensure that data is tracked and measured accurately at source • Consistency of comparison – ensure that current period performance, when compared to the baseline, is comparable in terms of seasonality, activity and any other factors that may skew results • Regularity of communication – establish a monthly date, or other regular interval, by which results will be communicated, very much like month end financial results (This will focus all parties involved and will create awareness across the organisation, with people looking forward to see if their changed behaviour or other initiatives had any effect) • Review action plans – based on accurate results, review and adjust action plans

7. Recognise Achievements As with all change initiatives, the recognition of achievements is critical in sustaining and building momentum of the CEM programme. Internal recognition can take many forms, from individual recognition to business unit or functional recognition. It can also be creative, for example creating an internal energy currency, which employees may redeem for energy efficient home appliances, in the case of a retail chain. External recognition should also be actively pursued. The South African National Energy Association (SANEA), for example, offers annual awards in different categories such as the SANEA Energy Award, Project Award, Energy Journalism Award, Energy Education Award, Recognition Award and the Service Award. Implementing the above seven steps will set the foundation for holistic energy management, and provide solutions that are scalable across diverse portfolios. Energy management, however, is THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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Bonitcom Energy (Pty) Ltd Boniticom Energy (Pty) Ltd was established in May 2010 as a Sales and Marketing Company which operates in the renewable energy market. Bonitcom Energy is an “alternative energy” company with a view to assist domestic and commercial sectors to cut costs on their ESKOM electricity bills as well as reducing their carbon footprint by offering alternatives to burning large amounts of polluting fossil fuels. Products Our product list includes the following: • Solar Geysers • Heat Pumps • Photovoltaic Systems • RDP Products • LED Lighting • Other Energy Efficient products

Bonitcom Energy has collaboration agreements with technically orientated companies that provide the best alternate energy solutions. Bonitcom Energy is a member of SESSA and also accredited for the DSM programme by Eskom. Bonitcom Energy sources and imports products for marketing purposes in South Africa. Contact information 22 Thora Crescent, Wynberg, Johannesburg, 2090 Telephone 0878207001 Fax 086 621 5827 Email info@ bonitcom.co.za Website www.bonitcomenergy.com


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above all a process of continuous improvement. Once current consumption is minimised, up and downstream business processes should be explored for further potential gains through business process re-engineering.

CONCLUSION The South African energy efficiency landscape is relatively unchartered, presenting companies with the opportunity to claim industry leadership and set benchmarks. With South Africa’s energy crisis well documented, effective CEM will feature prominently on executive agendas in the 21st century. King III reporting standards require telling stakeholders how the organisation impacts on the environment and community in which it operates, and how the environment and community impacts the organisation’s business. Energy consumption is an integral part of sustainability reporting and provides information to analysts that enable quick comparison between companies, to establish who the industry leaders are in energy efficiency, and who are setting Best Practice standards. APPENDIX Summary of legislative requirements and incentives – applicable to energy and energy efficiency: Code of and Report on Governance Principles for South Africa (King III) – replacing King II, and effective 1 March, 2010, this code is mandatory for JSE listed companies. Among many other requirements it stresses the importance of building a sustainable business having regard tthe economic, social and environmental impact of the company. A company should not only report on its financial performance but alsits sustainability by disclosing the positive and negative impact that its operations have on stakeholders. The consumption of energy has a direct consequence on the environment, and forms an integral part of sustainability reporting. Section 12(K) of the Income Tax Act Exempts the sale of Carbon Credits from Income Tax Section 12(I) of the Income Tax Act – Provides Income Tax deductions for Energy Efficiencies achieved, mainly in the manufacturing sector. These are available only in conjunction with job creation and training. Carbon Emissions Trading South Africa is a signatory tthe KyotProtocol that came intforce in 2005, thereby affording the country tqualify for the Clean Development Mechanism (CDM). This enabled South Africa companies tregister carbon projects in South Africa with the aim tobtain Certified Emission Reduction (CER’s) credits, which can be in turn traded on the global carbon market. With South Africa’s electricity supply is seen as ‘dirty’ (as over 90% of it is coal driven), energy efficiency projects have a reasonable chance tqualify for CER’s under the CDM. Eskom DSM programme Eskom will consider part funding of energy efficiency projects, of any size, under this initiative. Exhaustive administrative requirements tbe met, after which Measure and Verification (M&V) will be performed in order tensure that energy efficiency targets are achieved. Eskom Standard Offer – Projects that are between 50 kW and 1 MW in size may qualify for this incentive, under which ESKOM will pay a pre-determined rate for energy efficiency achieved. Only for specified technologies and M&V applies. Eskom Standard Product ESKOM will pay a fixed amount for specified energy efficiency lighting technologies implemented. Projects between 1 kW and 100 kW, minimum of 15% load factor. Only applies tlighting technologies. NM&V required. Eskom Performance Contracting Companies may ‘sell’ blocks of electricity (for instance 10MW) tEskom, whwill buy these at a contracted rate. It is then up tthe company tdeliver on the contract, showing reduction in consumption equal tthe block of electricity that was sold tEskom. All reductions subject tM&V. This is still in concept phase. REFERENCES: SA electrical challenge: The Retail impact, Investec (Nov, 2009); Nersa Interview Energy Mangement System Implementation – UNID/SA Department of Trade and Industry/SA Department of Energy (Jan, 2011) http://www.Eskomidm.c.za/commercial. Accessed 3 May, 2011 http://www.Eskomidm.c.za/industrial. Accessed 3 May, 2011 https://www.saica.c.za/TechnicalInformation/LegalandGovernance/King/tabid/626/language/en-ZA/Default.aspx. Accessed 3 May, 2011 http://www.saee.org.za/energyawards.aspx. Accessed 3 May, 2011 http://www.energystar.gov/index.cfm?c=continuous_improvement.continuous_improvement_index. Accessed 3 May, 2011 http://www.energystar.gov/index.cfm?c=business.bus_energy_strategy_future&news_id=http://www.energystar.gov/cms/default/. Accessed 3 May, 2011 http://www.dti.gov.za/12i/Section_12i_Income_Tax_Act.pdf. Accessed 3 May, 2011 http://www1.eere.energy.gov/industry/bestpractices/. Accessed 3 May, 2011 http://unfccc.int/kyot_protocol/items/2830.php. Accessed 3 May, 2011

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PERFORMANCE BENCHMARKING: ANALYSIS OF RETAIL & OFFICE PROPERTIES’ ELECTRICITY CONSUMPTION Andre Ferreira Head of Business Development for Environmental Benchmarking Services Investment Property Databank (IPD) South Africa

INTRODUCTION Rising Electricity Costs in South Africa have placed tremendous focus on the ability for landlords of commercial property to reduce operating costs, with the view to remain competitive on the basis of profitability and rental income security. The Investment Property Databank is a global organisation with operations in 20 countries and originating in 1985 in the United Kingdom. In South Africa IPD has provided financial performance benchmarking to the commercial property industry for the past 10 years with its client base consisting of 70% of the listed property investment market on the JSE. In 2008, emanating from the UK office, a global effort was launched towards establishing an environmental performance benchmarking service to complement the already successful financial performance benchmarking. This process of leveraging, to great advantage, off internationally accepted and accredited property type classifications, allowing for cross country and cross property type environmental performance measurement to be developed with ease. In South Africa, IPD’s definitions of per m2 area space definitions are based on the Method for Measuring Floor Area published by SAPOA (2010). The IPD Environment Code, now in its second edition (November, 2010) is the culmination of a global effort towards environmental data collection and benchmarking. The Environment Code represents a forward progression from the IPD Occupier Cost service whereby monetary cost figures for environmental resource usage (water, waste and electricity) have been accumulated over time. The IPD Environment Code represents the combination of resource quantity together with cost to enable a more comprehensive assessment. In South Africa, due to the recent launch of the Environment Code, there is no significant database of resource usage as is already evident in the UK. Due, however, to the operation of the IPD Occupier Cost service in South Africa there is a basis for analysis to be undertaken.

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METHODOLOGY The process involves the use of Electricity Costs figures in Rands per m2 per Annum for 2009 and the subsequent conversion of these into estimated consumption figures in Kwh per m2 per annum inferred by using publicly available Eskom 2009/10 tariff schedule as per the Eskom website. Subsequently, assuming equal variance between cost sample data and inferred tariff schedule data, a confidence interval was created assuming a normal distribution to test whether the inferred benchmark medium consumption figures could have originated from the existing cost sample given predetermined Eskom tariff. If the hypothesis is rejected at the 25% level of significance (to take account of quartile benchmarks) then it is noted that the observed median consumption level could not have been verified given existing cost and tariffs (Keller, 2003). In other words, assuming a correct tariff and consumption level (which is tested for reasonableness via percentage difference from the mean) it is inferred that there is an over- or under-charging of the client. This testing procedure was conducted under two assumptions for tariff structure. On the basis of a 10% - 80% - 10% time consumption split between off peak, normal and high peak consumption periods, as well as for a 20% - 60% - 20% composition. It is observed that overall, the latter composition produces the greatest number of statistically significant consumption benchmark medians per sub sector property type and thus is used in the analysis. This process could be repeated to the point where the largest number of benchmark medians is found to be statistically significant. However, this is left as the basis of future inquiry and removed from this analysis for the sake of simplification. A weakness in this paper, and a call for further research, is the lack of seasonal and climatic adjustments to the inferred electricity consumption. In other words, do the consumption figures for KwaZulu Natal, a fairly tropical climate, appear reasonable versus those for the Western Cape with a more Mediterranean climate? Likewise, the current benchmark analysis does not capture the effects of seasonal trade upon foot traffic and energy intensity measures (per person) - in retail properties located in the costal regions during the holiday period (Dec – Feb), for example.

OBJECTIVE The objective of this paper is to demonstrate the added analytical value that can be provided to benchmarking clients through the simple process of collecting basic electricity consumption data to complement existing (valuable) cost analysis framework.

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CHAPTER 05: PERFORMANCE BENCHMARKING: ANALYSIS OF RETAIL & OFFICE PROPERTIES’ ELECTRICITY CONSUMPTION

OBSERVATIONS Retail Sector The South African all retail Kwh/ m2 per annum figure of 418 is significantly lower versus the 819 kwh per m2 per annum observed on a Pan European basis (International Sustainability Alliance, 2010). Yet it is significantly higher than that observed for Brazil, a country of fairly similar socio – economic conditions, infrastructure and climatic conditions. Cross Geographic and Retail Property Type Analysis R / m2 / pa Benchmark Median for 2009

250

200

150 R / m2 /pa 100

50

Other Retail Kwazulu Natal

Other Retail Gauteng

Other Retail Western Cape

Neighbourhood Kwazulu Natal

Neighbourhood Western Cape

Neighbourhood Gauteng

Neighbourhood Limpopo

Community Kwazulu Natal

Community Limpopo

Community Western Cape

Community Mpumalanga

Community Gauteng

Community North West

Small Regional Eastern Cape

Small Regional Kwazulu Natal

Small Regional Gauteng

Small Regional Western Cape

Regional Gauteng

Regional Western Cape

Super Regional Gauteng

0

Super Regional Gauteng Regional Gauteng Regional Western Cape Small Regional Gauteng Small Regional Western Cape Small Regional Eastern Cape Small Regional Kwazulu Natal Community Gauteng Community North West Community Mpumalanga Community Limpopo Community Western Cape Community Kwazulu Natal Neighbourhood Gauteng Neighbourhood Limpopo Neighbourhood Western Cape Neighbourhood Kwazulu Natal Other Retail Gauteng Other Retail Western Cape Other Retail Kwazulu Natal

Figure 5.1: Cross geographic and retail property type analysis

Within the retail sector (refer to Figure 5.1 & 5.2) properties located in Kwazulu Natal report the lowest cost per m2 for electricity in the sample with a benchmark Kwh per m2 per annum that is 38% and 81% less than the all retail property benchmark for neighborhood and community shopping centres respectively. This is matched as well to the low figures for consumption per kwh per annum which are observed as lower than the South African Retail sector average, across all property types, for this Province. However, statistical tests reveal that KwaZulu Natal Community shopping centres have the hypothesis that the mean consumption is significant at the 50% confidence interval rejected. This brings forth the observation that there is either an under-charging from the respective municipalities in KwaZulu Natal or a significant challenge in recovery by landlords. As it relates to community shopping centres in this Province, it is worth investigating.

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Percentage Differance from All Retail Property R /m2 / pa Benchmark Median 2009

Other Retail Kwazulu Natal Other Retail Western Cape Other Retail Gauteng Neighbourhood Kwazulu Natal Neighbourhood Western Cape Neighbourhood Limpopo Neighbourhood Gauteng Community Kwazulu Natal Community Western Cape Community Limpopo Community Mpumalanga Community North West Community Gauteng Small Regional Kwazulu Natal Small Regional Eastern Cape Small Regional Western Cape Small Regional Gauteng Regional Western Cape Regional Gauteng Super Regional Gauteng

-100.00%

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

Figure 5.2: percentage differance from all retail property

Gauteng and Western Cape observe the highest electricity costs per m2. Regional shopping centres in both these regions have costs that are accurate, inferred on a statistical basis, to the estimated consumption levels. However, smaller community and neighbourhood centres in the Western Cape evidence a rejection of hypothesis, and hence investigation into cost figures required. Due to the small geographic footprint of Gauteng, it is assumed that equal property management capability can be deployed to all retail centres, large and small, with great effect on recovery and thus accurate cost per m2 figures. Conversely, in the Western Cape the geographic spread implies discrepancies in property management between predominately urban regional centres and rural community and neighborhood centres.

As a property segment within retail, regional shopping centres exhibited the most variance between upper and lower quartile performance for cost per m2 per annum with the noted exception of the Other Retail Category in Gauteng (refer to Figure 5.3). The latter is a manifestation of the lower latent negotiating power of smaller retail stores and outlets rather than to issues of accurate billing or property management capability in operating a property in an energy efficient manner.

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South Africa

0.00

60.00

40.00

20.00 South Africa

Community Kwazulu Natal

Community Western Cape

Community Limpopo

Community Mpumalanga

Community North West

Community Gauteng

Small Regional Kwazulu Natal

Small Regional Eastern Cape

Small Regional Western Cape

Small Regional Gauteng

Regional Western Cape

Regional Gauteng

Super Regional Gauteng

Other Retail Kwazulu Natal

Other Retail Western Cape

Other Retail Gauteng

Other Retail Kwazulu Natal

Other Retail Western Cape

Other Retail Gauteng

Neighbourhood Kwazulu Natal

80.00

Neighbourhood Kwazulu Natal

Kwh / m2 / pa Neighbourhood Western Cape

100.00 Neighbourhood Limpopo

120.00

Neighbourhood Western Cape

140.00

Neighbourhood Limpopo

Analysis of Standard Deviation in Retail Sector Kwh per m2 per Annum 2009 Neighbourhood Gauteng

Figure 5.3: Analysis of standard deviation for retail property sector

Neighbourhood Gauteng

Community Kwazulu Natal

Community Western Cape

Community Limpopo

Community Mpumalanga

Community North West

Community Gauteng

Small Regional Kwazulu Natal

Small Regional Eastern Cape

Small Regional Western Cape

Small Regional Gauteng

Regional Western Cape

Regional Gauteng

Super Regional Gauteng

CHAPTER 05: PERFORMANCE BENCHMARKING: ANALYSIS OF RETAIL & OFFICE PROPERTIES’ ELECTRICITY CONSUMPTION

Analysis of Standard Deviation for Retail Property Sector R per m2 per Annum for 2009

140.00

120.00

100.00

R / m2 /pa 80.00

60.00

40.00

20.00

0.00

Figure 5.4: Anaylsis of standard deviation in retail sector

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The retail sector witnesses the greatest variability in electricity cost with Gauteng, Western Cape and KwaZulu Natal respectively, exhibiting greatest variance. Whereas from an inferred consumption point of view the greatest standard deviation in retail is witnessed in the Western Cape, followed by Kwazulu Natal and then in Gauteng. Office Sector The South African All Office inferred consumption in Kwh per m2 per annum is observed to be 48% less (refer to Figure 4.6) than the Pan European figure produced by the International Sustainability Alliance (ISA). It is unfortunate that ISA does not likewise complement, on a Pan European basis, its benchmarks for consumption with those for cost, as it would allow a comparison with South Africa on these two metrics and as a further check for reasonableness of estimates produced. The office sector is likely to provide the most robust analysis due to the prevalence of dominant anchor tenants and lesser common area to distort the analysis. Provincial Kwazulu Natal offices report a 48% lesser cost per m2 per annum for electricity than the All Office property sector benchmark (refer Figure 5.7). This is the largest deviation from the All Office benchmark and is on the premise of a statistically significant sub sector median benchmark for inferred consumption per m2. Within Kwazulu Natal a 5% cost per m2 (for decentralised sub sector) below the All Office benchmark is observed followed by 7% lower for inner city. An efficient cost recovery and

Office Sector Cost in Rands per m2 pa for Electricity Consumption in 2009

140

120

100 R / m2 / pa 80

60

40

Figure 5.5: Office sector

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Provincial Kwazulu Natal

Provincial Eastern Cape

Provincial Free State

City Decentralised Kwazulu Natal

City Decentralised Western Cape

City Decentralised Gauteng

Inner City Western Cape

Inner City Gauteng

Office South Africa

0

Inner City Kwazulu Natal

20


CHAPTER 05: PERFORMANCE BENCHMARKING: ANALYSIS OF RETAIL & OFFICE PROPERTIES’ ELECTRICITY CONSUMPTION

Inferred Electricity Consumption in Kwh per m2 per Annum for Office Sector Benchmarks in 2009 400.00 350.00 300.00 Kwh / m2 / pa

250.00 200.00 150.00 100.00

Provincial Kwazulu Natal

Provincial Eastern Cape

Provincial Free State

City Decentralised Kwazulu Natal

City Decentralised Western Cape

City Decentralised Gauteng

Inner City Kwazulu Natal

Inner City Western Cape

Inner City Gauteng

Office South Africa

0.00

Office Europe

50.00

Figure 5.6: Inferred electricity consumption Percent Difference from All Office Property R/ m2 / pa Benchmark Median 2009 Provincial Kwazulu Natal Provincial Eastern Cape Provincial Free State City Decentralised Kwazulu Natal City Decentralised Western Cape City Decentralised Gauteng Inner City Kwazulu Natal Inner City Western Cape Inner City Gauteng Office South Africa Office Europe

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Figure 5.7: Percent difference from all office property

billing, increasing from urban to periphery is a general trend. This is due to the statistically insignificant nature of the inner city consumption figure. The Western Cape inner city and decentralised offices evidence a Kwh per m2 per annum figure that is higher than the sector benchmark and is the Province that witnesses the highest inferred THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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PROFILE

Plan My Power “SUPERIOR STATE OF MIND, SUPERIOR ATTITUDE” Plan My Power (PTY) Ltd specializes in the consultation, distribution, installation and support of Power-related products. Plan My Power markets these products on both a local and International basis, maximizing profitability from its own research & development programmes which ensure that the products maintain the cutting-edge technology for which they have become famous. A. Consultation in Green Power town planning and Expansion “Green” Town development • “Green” Estate developments • Consultation to various site developments B. Green Power Solar (Photovoltaic Panels) systems • Batteries • Battery Chargers • DC to DC converters • Power Backup Systems • Solar geysers • High efficiency LED lighting • Solar Regulators C. Vehicle-Mounted Unipower Mobile Welder/Generators/Chargers • PowerTek Vehicle mounted Welders/Generators/ Chargers • Electronic Dual Battery Management Systems An integral part of PMP’s strategic focus is that all worldwide marketing and distribution is strongly backed up by highly skilled technical and commercial product support teams, on a regional basis. This current vehicle-mounted product range is unique, and represents the cutting edge of this technology in the international marketplace. D. Experience Our products are supported by a highly skilled engineering team and has field experience covering an excess of 100 years. Our vehicle mount products such as Unipower Vehicle Mount Welder/ Generator and PowerTek Vehicle Mount Generator are world renowned, with presentation and agents in South America, New Zealand and Europe Contact Details

HEAD OFFICE - PHYSICAL ADDRESS 31 Dukes Avenue, Cnr Republic Road, Windsor East, Johannesburg, 2194 Call : +27 (0)87 802 8479 Fax number +27 (0)86 693 9853 or +27 (0)11 678 0678 Email: info@planmypower.co.za Website www.planmypower.co.za www.solarpanel.co.za www.4x4powersolutions.co.za www.unipower.co.za


CHAPTER 05: PERFORMANCE BENCHMARKING: ANALYSIS OF RETAIL & OFFICE PROPERTIES’ ELECTRICITY CONSUMPTION

consumption relative to other provinces. The inner city figure is found to be statistically significant and the decentralised figure not. This may, in fact, have much to do with public awareness and greater action on energy efficiency, driven by organisations such as SAPOA and the Cape Town Partnership in reducing energy in the CBD versus other decentralised nodes such as Century City and Belville. In the literature on energy consumption in the built environment there is a quoted figure of 298 Kwh per m2 per annum, for inner city Cape Town CBD offices, as obtained from a study conducted by Drew Carrey Consultants for the Cape Town energy efficiency campaign (UNEP SBCI:2009). The inferred figure that is produced in the sample of 217 Kwh per m2 is a fairly good approximation and confirmation of the accuracy of methods used. This latter figure is found to be statistically significant at the 50% confidence level. Gauteng inner city and decentralised offices are estimated to consume less energy that the office sector benchmark. Like the Western Cape experience, the statistical significance of the inner city figure and insignificance of the decentraliesd figure the outcome of focused attention by city officials on inner city property energy performance versus that by province and municipalities to reduce energy consumption in buildings.

Analysis of Standard Deviations for the Office Sector Inferred Kwh per m2 pa for 2009 60.00

50.00

40.00 Kwh / m2 / pa 30.00

20.00

Natal

Cape

Provincial Eastern

Provincial Free State

Kwazulu Natal

City Decentralised

Western Cape

City Decentralised

Gauteng

City Decentralised

Natal

Inner City Kwazulu

Cape

Inner City Western

Inner City Gauteng

Office South Africa

0.00

Provincial Kwazulu

10.00

Figure 5.8: Analysis of standard deviations for the office sector

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Ingersoll Rand Industrial Technologies provides products, services and solutions that enhances its customers’ energy efficiency, productivity and operations. It offers a diverse and innovative range of products ranging from complete compressed air systems, tools and pumps to environmentally friendly microturbines. It also enhances productivity through solutions created by Club Car®, the global leader in golf and utility vehicles for businesses and individuals. Ingersoll Rand provides solutions in virtually all industrial markets. No matter where you are located, Ingersoll Rand is committed to serving you and providing you with the information you need regarding your product. Its worldwide network of distributors, certified, factory trained technicians, and engineers are a phone call away — ready to support you with innovative and cost-effective service solutions that will keep you running at peak performance. Ingersoll Rand is committed to enhancing its customers’ efficiency, productivity and operations through its diverse and innovative Ingersoll Rand branded product offerings. It is part of Ingersoll Rand Corporation, a $13 billion company global diversified industrial company with a 100-year-old tradition of technological innovation. It has the depth of knowledge, expertise and experience to be the best solution to meet your requirements – from its complete compressed air systems, to tools, pumps, material and fluid handling systems, and its environmentally friendly microturbines. Ingersoll Rand shares the world community’s growing concern for the planet and are committed to driving environmental progress. With a century-long history of innovation in energy-efficient and environmentally friendly technologies, it strives to help its customers meet their sustainability goals by offering solutions to operate more efficiently, use less energy, and cut down on carbon dioxide emissions. Ingersoll Rand promises to care as much about the planet as it does about all other aspects of its business. Progress is Greener Tel.: +2711 565 8600 E-mail: IngersollrandSA@irco.com


CHAPTER 05: PERFORMANCE BENCHMARKING: ANALYSIS OF RETAIL & OFFICE PROPERTIES’ ELECTRICITY CONSUMPTION

Analysis of Standard Deviation in Rands per m2 per Annum for Office Sector in 2009 45.00 40.00 35.00 R / m2 / pa

30.00 25.00 20.00 15.00 10.00

Provincial Kwazulu Natal

Provincial Eastern Cape

Provincial Free State

City Decentralised Kwazulu Natal

City Decentralised Western Cape

City Decentralised Gauteng

Inner City Western Cape

Inner City Gauteng

Office South Africa

0.00

Inner City Kwazulu Natal

5.00

Figure 5.9: Analysis of standard deviation

A variance analysis of cost and consumptions in the office sector (refer to Figures 5.8 & 5.9) demonstrates that decentralised Western Cape and Gauteng offices - although with highest inferred variance in electricity consumption - are in fact the ones with the lowest cost variance. This is further confirmed by statistical analysis in which the inferred consumption estimates are found insignificant highlighting the concern of cost discrepancies and variances in billing in decentralised areas. This is confirmed by the high cost variance figures in these sub segments.

CONCLUSIONS Although an imperfect method to create estimates of electricity consumption in order to reflect upon cost discrepancies in electricity, in the absence of consumption data, this method has proven to be valuable. The analysis that could be produced with available consumption data would indeed be significantly enhanced. This is a call to commercial property owners to action in data collection. Property size and location, following an urban/rural dimension, in which larger retail properties are generally located in urban locations and vice versa, demonstrates higher costs in CDB urban location than the periphery. The opposite can be said for offices with outlying properties witnessing higher electricity costs. In retail this is speculated to be due to a poorer focus of city administrators on collection of accurate utilities readings from large assets operating within their jurisdiction. In THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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the office sector the opposite is observed due to efforts to reduce the consumption, independent of the efficiency of municipalities in the periphery (ceteris paribus for tariff structure and property management capability). This performance benchmarking analysis, although focused primarily on electricity cost tariff discrepancies across property types and geographies, could likewise be applied to water and waste costs for landlords with sizable property portfolios that are geographically spread as provided for in the IPD Eco Ledger tool. REFERENCES Eskom Tariff and Charges, 2009/10 “Introduction to Hypothesis Testing”, Ch11 in Statistics for Management and Economists by Keller & Warrack, International Student Edition, Thompson Learning Publishers 2003 UNEP SBCI, 2009. “Baseline: The Building Sectors Contribution to National Green House Gas Emissions”, Chp 4 in “Green House Gas Emission Baselines and Reduction Potential from Buildings in South Africa, pp 28 “Preliminary Benchmarking Results Report”, International Sustainability Alliance, October, 2010 IPD SA Data Requirements Framework, 2011 IPD Environment Code, 2010 “Methods for Measuring Floor Area” SAPOA, 2010

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Hybrid Solar Photovoltaic and Thermal Cell


PROFILE

GW Store

GW-Store Cape Town, Independent Store, and GW-Store National headquarters were established in May 2008 as a sales, distribution and Installation Company in the renewable energy sector. GW Store is a company with the aim of helping reduce the energy costs of residential and business customers and reducing the “carbon footprint” by offering alternatives to burning fossil fuels. GW-Store stands for “Global Warming” and the goal is reduce the effects of global warming as much as possible. We are committed to providing technology, goods and services that contribute to a more sustainable society and a positive future for our children. GW-Store has cooperation agreements with technically oriented company that seek the best alternative solutions. GW Store imports products for distribution in South Africa and the African continent.

Products

Our product list: Solar hot water systems Solar Panels Photovoltaic systems Solar Cooker LED lighting technology Wind turbines Dry or water-free toilets Our goal is to import Schueco products to sell and install. We have 15 GW of plants store in South Africa and representatives in Namibia, Angola and Congo.


PROFILE Carbon Credits

Buy yourself a tree and call it Bob! Have a tree planted in your name and offset your carbon footprint. Within a year a single tree can reduce around 30kg of carbon.

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Company Address: Viking Business Place nr. 29, Unit 27 Thor Circle Thornton Cape Town 7460 Tel: +27(021) 531 6000 E Mail: avie@gwstore.co.za morne@gwstore.co.za marlaine@gwstore.co.za Website: www.gwstore.co.za



CHAPTER 06: LEGISLATIVE MANDATES FOR SUSTAINABLE AND RENEWABLE ENERGY USE

LEGISLATIVE MANDATES FOR SUSTAINABLE AND RENEWABLE ENERGY USE Professor Tumai Murombo Associate Professor School of Law University of Witwatersrand South Africa

INTRODUCTION South Africa is one of the biggest emitters of green house gases (GHGs) that are the main cause of global warming which leads to climate change. Research indicates that the main source of the GHGs is the energy industry. In South Africa this includes emissions, rather pollution from fossil burning electric energy plants. One of the touted solutions to global warming is a reduction of anthropogenic emissions of these fossil induced GHGs by exploring clean energy technologies and renewable energy (IRP, 2010). In this context South Africa has taken steps towards this transition from fossil-based electric energy generation to renewable energy; however, the progress made to date leaves a lot to be desired. Honest legal and policy reforms begun in 2003 with the development of the White Paper on Renewable Energy Policy, which was supposed to inform a future renewable energy legal framework. This Chapter unravels the developments given impetus by the Renewable Energy Policy White Paper focusing on the sources of legal mandate for the pursuit of renewable energy. In particular, it explains the possible sources of legal mandate for national, provincial and municipal spheres of government to pursue sustainable and renewable energy in South Africa. Conceptually to put the Chapter in context, it is necessary to explain the two major concepts that are at play here, namely ‘sustainable energy’, and ‘renewable energy’. Sustainable energy is a term that comes from the concept of sustainable development, which now anchors and informs the development of energy and environmental regulation in South Africa (Russell, 2008). The legal and policy framework from the 2004 White Paper are all informed by the concept of sustainable development. This is defined as development that meets the needs of present generations without compromising the capacity of future generations to meet their own needs (Our Common Future, 1989; the National Environmental Management Act s 2 (4)). The concept of sustainable development has also been referred to as ‘sustainable use’ when used in the context of natural resource management. In this context the term implies that current THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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generations must use natural resources in such a way that future generations will be able to use the same resources. There is, therefore, an intricate nexus between energy and sustainable development (Bradbrooke, 2006). In the context of energy and renewable energy regulation the concept has metamorphosed into the idea of sustainable energy and sustainable energy use. It is often assumed that renewable energy is sustainable in the sense that it is renewable and has less adverse impacts on the environment (UNEP, 2007). However it must be emphasised that all sources and forms of energy have impacts on the environment and they simply vary in the gravity of their harm. For instance wind energy has been reported as affecting birds and causing visual pollution (Pasqualetti, 2004). Similarly the process of producing photovoltaic solar cells can be damaging to the environment. Undoubtedly, however, the impacts of renewable energy sources are far less harmful relative to the impacts caused by burning coal and other fossil-based primary energy carriers, after internalising the environmental cost of the latter. The concept of renewable energy in its simple terms means energy from primary sources that are selfrenewing and are not spent through use. According to the second law of thermodynamics, energy cannot be created or destroyed. It can only be converted from one form into another. In South Africa the term renewable energy is defined by statute as “energy generated from natural non-depleting resources including solar energy, wind energy, biomass energy, biological waste energy, hydro energy, geothermal energy and ocean and tidal energy” (National Energy Act, 2008). Energy is at the centre of economic growth and social development (Goldemberg, 2005; Johansson, 2005; Madzongwe, 2010). Omorogbe (2008) argues that it is in fact the “single most important component of any development”. While it is desirable to transition towards sustainable renewable energy use, there are challenges in the way of renewable energy - especially in developing countries. South Africa must, however, ultimately move to a low carbon economy (Madzongwe, 2010; Fakir, 2008). Thus it has been pointed out that these challenges include legal or regulatory, economic and political (UNEP, 2007) issues. In the South African context these challenges are compounded by the developmental agenda of the Government’s economic policy and the need to alleviate poverty through expedited socio-economic development (Spalding-Fecher, 2002). While it is clear that socioeconomic development can be improved by embracing energy efficiency and renewable energy technologies in the electricity sector, the coal trajectory will have to sustain growth for some time (New Growth Path, 2011).

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This is further compounded by the simply economics that South Africa has abundant coal reserves and so it is the cheapest form of primary energy source available which can quickly be exploited to support socio-economic development (Spalding-Fecher, 2002). However, the environmental and health cost of coal are exponential but invariably understated (Riti, 2010; Strydom and Surridge, 2009). This does not, however, suffice as reasons not to put in place legal policies to support or mandate sustainable renewable energy. An enabling legal environment is indispensable to the transition from coal to renewable electric energy (Bradbrooke, 2006). Laws create institutions, standards, legitimises mandates and economic incentives as well as direct technology where necessary. This role of law is often overlooked (Lyster and Bradbrooke, 2006). Without laws, entrenched technologies and industrial interests will prevail. The key question however is: what laws has South Africa enacted to promote sustainable renewable energy and what are the obligations of the three spheres of government under these laws?

THE CONSTITUTIONAL IMPERATIVE The supreme law of the land is the Constitution (Constitution of the South Africa, 1996). Section 24 of the Constitution provides for the environmental right which in 24 (b) provides that: Everyone has the right a. to an environment that is not harmful to their health or well-being; and b. to have the environment protected, for the benefit of present and future generations, through reasonable legislative and other measures that i. prevent pollution and ecological degradation; ii. promote conservation; and iii. secure ecologically sustainable development and use of natural resources while promoting justifiable economic and social development. (emphasis added). Section 24 (b) of the Constitution is the primary source of the obligation on all spheres of government to “prevent pollution” and “ecological degradation” by ensuring “ecologically sustainable development and use of natural resources”. This applies directly to the forms and sources of energy that South Africa uses as a country. Continued use of coal as the primary source of electricity may arguably be a contravention of this Constitutional obligation. However, it must be noted that it could equally be argued that using coal to support

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justifiable social and economic development is within the Constitutional mandate. This is a typical dilemma created by legal prescriptions, which are too broad for general usage. More directly the Constitution is the primary legal document that creates the sphere of government and defines their legal capacity and legislative competence. Schedule 4 and 5 to the Constitution delimits the powers of the three spheres of government. In terms of Schedule 4 Part A, “environment” and “pollution control” are functional areas in which the national and the provincial government have “concurrent” legislative competence. Secondly, in terms of section 156 (10) read with Part B of Schedule 4 to the Constitution, “electricity and gas reticulation” are executive local government matters in which the national and provincial sphere of government have a say, but not legislative or executive competence, in terms of section 155 (6) (a) and (7). Their mandate is merely to monitor the effective performance by municipalities of this function. An attempt to give national and provincial spheres of government more powers of intervention in these areas remains a proposal in the Seventeenth Constitutional Amendment Bill of 2009. The Bill seeks to amend section 156 of the Constitution by inserting section 156 (1A) which provides that: a. (1A)Notwithstanding the provisions of sections 151, 154, 155 and 156, national legislation may further regulate the exercise by municipalities of their executive authority in respect of local government matters listed in Part B of Schedule 4 and Part B of Schedule 5 when it is necessary to achieve regional efficiencies and economies of scale in respect of a specific municipal function b. National legislation referred to in paragraph (a) may further regulate the exercise by municipalities of their executive authority in order to — i. facilitate appropriate institutional arrangements and municipal participation in those arrangements, including, but not limited to, compulsory participation and transfer of assets; ii. facilitate appropriate planning and expenditure in respect of infrastructure and maintenance; iii. facilitate equitable tariffs, user charges, fees and service levels; iv. ensure equitable access and universal coverage; v. maintain, regulate and enforce essential minimum national standards; and vi. prevent unreasonable actions by a municipality which are prejudicial to the interests of another municipality or the country as a whole. If enacted into law, these proposed amendments essentially give the national government legislative competence over electricity and gas reticulation where a municipality is failing to meet its constitutional obligations.

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However, the current constitutional framework means that the national and provincial government have little legislative competence in terms of effective delivery of electric energy services by municipalities.

ENVIRONMENTAL AND ENERGY LAWS The obligations to promote sustainable and renewable energy are not only located in energy laws but also in environmental laws which effectively regulate the use of the renewable energy resources such as water, wind, solar, oceans and underground, all these being part of the environment (National Environmental Management Act, 1998). To this end, the intertwinement of energy and environmental laws must be acknowledged throughout. For instance, virtually most energy-related activities are listed as activities requiring an environmental authorisation in terms of the NEMA and the EIA regulations (Activity 1 – 2, 10 & 27 of GN R544 in GG 33306 of 18 June 2010; Activity 1, 2, 8 of GN R545 in GG 33306 of 18 June 2010). Section 34(2) (c) Electricity Regulation Act expressly gives the Minister of Energy the power to apply for NEMA authorisations on behalf of other spheres of government mandated with electricity services. The assessment of EIA report and their consideration is premised on the principles of environmental management in section 2 of the NEMA, among which are, sustainable development principles that underpin the drive towards sustainable renewable energy. Section 2(3) and (4) of the NEMA provide that: (3) Development must be socially, environmentally and economically sustainable. (4) (a) Sustainable development requires the consideration of all relevant factors including the following: i. That the disturbance of ecosystems and loss of biological diversity are avoided, or, where they cannot be altogether avoided, are minimised and remedied; ii. that pollution and degradation of the environment are avoided, or, where they cannot be altogether avoided, are minimised and remedied; iii. that the use and exploitation of non-renewable natural resources is responsible and equitable, and takes into account the consequences of the depletion of the resource; iv. that the development, use and exploitation of renewable resources and the ecosystems of which they are part do not exceed the level beyond which their integrity is jeopardised; In considering application for environmental authorisation with respect to energy related activities these principles must be brought to bear by the competent authority (section 24O (a) and (b) NEMA). THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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While not a direct mandate to spheres of government it imposes requirements to consider the sustainability of proposed energy related activities before environmental authorisations are given. It is clear that the main driver for sustainability in the energy sector and the push for renewable energy are embedded in environmental threats of fossil based electricity generation and how we manage natural resources. Below, I look at the energy specific legislation and how it mandates sustainable renewable energy.

SUSTAINABLE AND RENEWABLE ENERGY USE MANDATES National Level The main energy legislation is the National Energy Act, and more narrowly for electricity the Electricity Regulation Act. All energy is related to the National Energy Regulator Act, whose enactment saw the National Energy Regulator (NERSA) assume, among others, the powers of the regulator under section 3 of the Electricity Regulation Act. The National Energy Act of 2008 was foreshadowed by two White Papers, the White Paper on Energy Policy of 1998 and the White Paper on Renewable Energy Policy of 2003. One of the objectives of the Energy Policy White Paper was to “achieve environmental sustainability in both the short-term and the long-term usage of natural resources”. The Renewable Energy White Paper set a target for renewable energy by 2014 of 10 000 GWh (White Paper, 2004) and emphasises that: “if the use of renewable energy is to be successfully implemented, Government should create an enabling environment through the introduction of fiscal and financial support mechanisms within an appropriate legal and regulatory framework, to allow renewable energy technologies to compete with fossil-based technologies.” (emphasis added) (White Paper, 2004). It is in this context that the National Energy Act was promulgated in 2008. The National Energy Act sets out as its objects the “uninterrupted supply of energy to the Republic; … diversity of supply of energy and its sources; contribute to sustainable development of South Africa’s economy; and provide for certain safety, health and environment matters that pertain to energy” among other objects (section 2(a), (b) & (h)). It is clear that the objective of diversifying sources is directed at contemporary renewable energy sources. This Act is not yet in force and until it enters into force, the main imperative of sustainable renewable energy must be found with existing laws such as the Electricity Regulation Act.

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The Electricity Regulation Act 4 of 2006 (ERA) is the main Act regulating the generation, transmission and distribution of electricity. Among its objects we find the need to: “…achieve the efficient, effective, sustainable and orderly development and operation of electricity supply infrastructure in South Africa; ensure that the interests and needs of present and future electricity customers and end-users are safeguarded and met, having regard to the governance, efficiency, effectiveness and long-term sustainability of the electricity supply industry within the broader context of economic energy regulation in the Republic; and promote the use of diverse energy sources and energy efficiency” (section 2(a),(b) 7 (e)). In terms of section 7, no person may “operate any generation, transmission or distribution facility; or import or export electricity” without a permit (section 7 (1) (a) & (b)). Municipalities are the executive authorities with regards to reticulation and distribution of electricity (section 27). While this section articulates the duties of municipalities, which includes the need to provide “sustainable reticulation services”, the section does not mention sustainable use or renewable energy. In issuing any of the licences referred to in section 7, the NERSA may impose conditions including conditions relating to “the types of energy sources from which electricity must or may be generated, bought or sold; compliance with health, safety and environmental standards and requirements” (section 14 (1) (r) & (s)). Furthermore, in determining the need for new generation capacity, the Minister may “determine the types of energy sources from which electricity must be generated, and the percentages of electricity that must be generated from such sources” (section 34(1) (b)).The National Energy Regulator Act establishes the Regulator (hereafter called NERSA), which overtook the regulatory role of regulators under all three energy sectors (electricity, gas and liquid fuel) (section 3 of Gas Act 48 of 2001, the ERA and the Petroleum Products Act, 60 of 2003). In as far as facilitating the transition towards sustainable and renewable energy is concerned the NERSA plays a crucial role, as it is the main regulatory institution in all energy sectors in South Africa. It administers the legislation providing for the issuing of generation, transmission and distribution licences (section 3, the ERA). In granting such licences NERSA can mandate certain sources of generation capacity including renewable energy. It has already developed a Feed-in Tariff scheme to enable Independent Power Producers (IPPs) to play a role in the South Africa electricity sector (REFIT Guidelines Phase II, 2009). Recently, new regulations were passed in terms of the Electricity Regulation Act, which mandate the use of renewable energy sources (New Generation Capacity Regulations, 2010).

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However implementation of the new generation regulations, together with the feed-in tariffs to enable IPPs to join in, has been delayed pending further revisions of the set tariffs and a thrashing out of some teething problems with the REFIT programme (NERSA Consultation Paper: Review of Renewable Feed-in Tariffs, March 2011). This consultation paper has been issued to enable NERSA “to consult with stakeholders on the review of the tariff levels set in 2009 for Renewable Energy…technologies under the Renewable Energy FeedIn Tariffs (REFIT) programme.” In addition, also recent in public consultation were the co-generation rules and feed-in tariffs (dubbed COFIT) relating to co-generation projects (NERSA Consultation Paper: Cogeneration Regulatory Rules and Feed-In Tariffs, 19 January 2011). Therefore, even before test implementation of the REFIT programme, there are problems that must be addressed if this is going to see any improvement in the uptake of renewable energy projects by IPPs.

Provincial and Municipal Levels of Government The third sphere of government, the local government, is the key player in energy reticulation services. In terms of the Local Government: Municipal Systems Act 2000 “development” is defined as: “sustainable development, and includes integrated social, economic, environmental, spatial, infrastructural, institutional, organisational and human resources upliftment of a community aimed at a. improving the quality of life of its members with specific reference to the poor and other disadvantaged sections of the community; and b. ensuring that development serves present and future generations”. Further “environmentally sustainable” “in relation to the provision of a municipal service,” is defined as: “the provision of a municipal service in a manner aimed at ensuring that a. the risk of harm to the environment and to human health and safety is minimised to the extent reasonably possible under the circumstances; b. the potential benefits to the environment and to human health and safety are maximised to the extent reasonably possible under the circumstances; and c. legislation intended to protect the environment and human health and safety is complied with”. These definitions set the context for municipalities’ regulation of energy reticulation. As distributors, what steps have municipalities taken to promote preferential purchase of electricity produced from 110

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sustainable renewable sources? Is cleaner or greener always sustainable in the socio-economic context of South Africa? (Spalding-Fecher, 2002) It is clear that they have the legal mandate to prefer renewable energy if they so wish as long as they can provide quality service to their residents. Why have they not been at the forefront of purchasing renewable energy and thereby promoting its use? It could be argued that there are few generators of this type of energy but that has not stopped the City of Cape Town, for instance, taking small steps towards greening energy reticulation. In terms of Section 8 of the Local Government: Municipal Systems Act, municipalities have the power to exercise all functions allocated to them in the Constitution and subject to Chapter 5 of the Municipal Structures Act. Section 85 gives the Provincial Government the power through the MEC to adjust the powers of district and local municipalities taking into account the capacities of these spheres of government to deliver services (section 85 (1) Municipal Structures Act). In addition “[a] municipality has the right to do anything reasonably necessary for, or incidental to, the effective performance of its functions and the exercise of its powers.” (Section 8(2)). In addition, in executing their functions, Municipalities are bound to “strive to ensure that municipal services are provided to the local community in a financially and environmentally sustainable manner” (section 4(2) (d). This is fortified by section 73(2) (d) which provides that in giving effect to their Constitutional functions, municipalities must render services that are “environmentally sustainable”. This includes the rendering of electricity reticulation services as per Schedule 4 Part B of the Constitution. These mandates are augmented by the Free Basic Alternative Energy Programme which provides that one of the policy objectives is “to ensure that energy carriers chosen are sustainable, safe and easily accessible to the indigent households” (DME, GN 391 of 2 April 2007 Households Energy Support Programme, Chapter 1, 1:2). Does rendering of electricity generated from fossil fuels constitute an environmentally sustainable service? This is the big question. The functions of local government with respect to energy reticulation are further provided for in the Local Government: Municipal Structures Act 1998. Section 83(3) of this Act provides that a district municipality must “must seek to achieve the integrated, sustainable and equitable social and economic development of its area as a whole by” ensuring equitable distribution of resources to local municipalities to promote access to quality services. Further, section 84 (1) (c) and (n) mandates district municipalities with the “bulk supply of electricity, which includes for the purposes of such supply, the transmission, distribution and, where applicable, the generation of electricity” and the construction of “[m]unicipal public works relating to any of the above functions or any other functions assigned to the district municipality”, respectively.

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PROFILE

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By investing the rebate, and consistently adding the monthly electricity savings to the fund, a highly lucrative return is achieved. Solar Power A wide range of Photovoltaic panels designed for free standing as well as roof mounted applications are offered including a unique Thin Film window solution. We supply the latest generation of AURIA Thin Film Micromorph Solar Modules, which are protected by more than 180 patents. Wind Power 1Energy is the sole South African supplier of the highly robust and efficient MAGLEV Vertical Axis Wind Turbine. These frictionless turbines spin on a magnetic field and range from 400W (ideal for billboards or street lighting) to 3kw (suitable for domestic or light industrial and commercial applications). Contact Reinhard Marx or Alan Haffey Unit E21 Prime Park, Mocke Road, Diep River, Cape Town Tel: +27 21 705-9301 mobile: +27 83 265-8847 / +27 83 600 6622 Email: info@1energy.co.za www.1energy.co.za


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CONCLUSION It is clear that the South African renewable energy and energy legal framework is informed by the concept of sustainable energy and contains the essential ingredients to drive the transition to renewable energy. However, the critical question remains regarding what constitutes sustainable energy. Taken in its triple-pronged conception, it could be argued that merely using coal is not in itself unsustainable given the socio-economic context of South Africa. But given the global factors and imperatives towards environmental sustainability, one is persuaded that continued reliance on coal with little practical efforts towards renewable energy technologies is not sustainable. However, any technological breakthroughs with clean coal technologies could change this picture. The Fukushima (IAEA, 2011) disaster has caused a renewable interest in these technologies given the futility of pursing the nuclear option. With this recent accident, the resurgence of nuclear power as an alternative to coal is waning. The legal framework gives power to the Minister, the Regulator, and Municipal authorities, under supervision of Provincial Government, the power to mainstream renewable energy use. Despite having these mandates uptake is still very low. This could be due to lack of effective incentives beyond a REFIT (Riti, 2010) that has so far not been very attractive to IPPs as recently acknowledged by the NERSA. It is hoped that further fine-tuning of the COFIT and REFIT rules and tariffs may stimulate interest in the near future. REFERENCES Bradbrooke, A.J., 2006. Energy Resourcing 13 South African Journal of Environmental Law & Policy 247. Fakir, S., 2010. The Great Energy Transformation: Why We Can’t Avoid a Low-Carbon Economy. Heinrich Boll Stiftung, Southern Africa. [online] Available at: < http:// www.boell.org.za/downloads/Fakir_FINAL.pdf > (Accessed 11 April 2011) Goldemberg, J., 2005. Development and energy. In: Bradbrook, A.J. and Ottinger, R.L., The law of energy for sustainable development. Cambridge: Cambridge University Press. Ch. 1. International Atomic Energy Agency., Fukushima Nuclear Disaster Update Log. Available at : < http://www.iaea.org/newscenter/news/tsunamiupdate01.html > (Accessed 11 May 2011) Johansson, T., 2005. The imperatives of energy for sustainable development. In: Bradbrook, A.J. & Ottinger, R.L., The law of energy for sustainable development. Cambridge: Cambridge University Press. Ch. 2. Lyster, R. & Bradbrook, A.J., 2006. Energy law and the environment. Cambridge: Cambridge University Press. Madzongwe, J., 2010. Energy Sector Development in Southern Africa. Paper presented to the ASADI Conference, 9 November 2010, Development Bank of Southern Africa. [online] Available at: < http://www.assaf.org.za/wp-content/uploads/2010/11/Role-of-DFIs-in-Energy-Sector-Development-in-SADC-Nov-2010.pdf > (Accessed 14 April 2011) Omorogbe, Y., 2008. Promoting sustainable development through the use of renewable energy: The role of the law. In: Zillman, D.N., Beyond the carbon economy: energy law in transition. Oxford; New York: Oxford University Press. Ch. 3. Pasqualetti, M.J., 2004. Wind Power: Obstacles and Opportunities. Vol. 46 No 7. Environment 30-31. Riti, C., 2010. Three Sheets to the Wind: An Intersection of the Renewable Energy Production Tax Credit, Congressional Political Posturing, and an Unsustainable Energy Policy. 27 Pace Environmental Law Review 783. Russell, I., 2008. The sustainability principle in sustainable energy. 44 Tulsa L. Rev. 121. Spalding-Fecher, R., 2002. Energy Sustainability Indicators for South Africa. Prepared for Sustainable Energy & Climate Change Partnership. Spalding-Fecher, R. and Williams, A., 2000. Energy and environment in South Africa: Charting a course to sustainability. IV(41) Energy for Sustainable Development 8 Strydom, H.A. and Surridge, A.D., 2009. Energy. In: Strydom, HA. & King, ND., eds. Environmental Management in South Africa. 2nd ed. Cape Town: Juta & Co. UNEP., 2007. UNEP Handbook for Drafting Laws on Energy Efficiency and Renewable Energy Resources. [online] Available at: < http://www.unep.org/law/PDF/ THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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MIIDRAND SOLAR TECHNOLOGIES Africa’s Advantage Midrand Solar Technologies (MST), a company that was founded to address the requirement to provide solar solutions to consumers, found that, in order to remain competitive, they would have rethink their value chain. MST have thus realigned their services to that of brokers of solar solutions to the consumer. The company has started to strengthen ties with almost all solar product distributors, becoming knowledgeable on all their product lines, allowing MST to advise clients in an honest, fair and objective manner as to how best solve their renewable energy requirements, within their budgets, circumstances, and areas of concern. By doing so, a measure of morality is maintained in the industry, which, if not self-regulated, has the potential of attracting the same reputation as so-called used-car salesmen. MST is thus able to build a reputation with clients based on three pillars, namely: • Professional product advice • Sound sub-contracting for installation • Objective third party after-sales service intermediaries The solar products that MST will be working with include solar water heating systems, solar electricity generation, and solar powered devices. Our research teams constantly source new products, ideas and technologies, with the aim of understanding those products, for the benefit of the end-user or client. Working as intermediaries, the company is able to negotiate better prices for clients, as their industry knowledge allows them to compare prices and quality between suppliers. Installation of solar products, where called for, is an area that can be fraught with difficulties. Expert installations are called for in order for the savings made by using solar products to be visible and realistic. By using their own database of approved and known solar product installers, MST are certain that their clients are receiving the best solutions to their requirements. Suppliers and installers are also less likely to renege on after sales service on their installations when working via professional intermediaries. MST views 2011 as the watershed year for renewable energy sources and products. Consumers do not have the time, knowledge or inclination to spend many hours researching solutions to their own requirements. As professional brokers or intermediaries within the solar industry, MST is precisely placed to render this service to their clients and potential clients, helping them, to help themselves, in our quest for a greener, and leaner, planet. Contact details: Tel: 076 646 5415 Email: info@midrandsolar.co.za

Fax: 086 716 1839 Website: www.midrandsolar.co.za


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UNEP_Energy_Handbook.pdf > (Accessed 15 April 2011) Report of the World Commission on Environment and Development: Our Common Future: Our Common Future. (1987). [online] Available at: < http://www. un-documents.net/wced-ocf.htm > (Accessed 11 April 2011) LEGISLATION Department of Environmental Affairs and Development Planning: Western Cape, 2008. White Paper on Sustainable Energy for the Western Cape Province. Department of Minerals and Energy, 1998. White Paper on the Energy Policy of the Republic of South Africa. Department of Minerals and Energy, 2003. White Paper on the Renewable Energy Policy of the Republic of South Africa. Published as GN513 in GG No 26169 of 14 May 2004. Electricity Regulation Act 4 of 2006 Department of Energy, 2010. Integrated Resources Plan 2. South Africa. Department of Energy, 2007. Households Energy Support Programme. GN 391 of 2 April 2007. Local Government: Municipal Structures Act 117 of 1998 Local Government: Municipal Systems Act 32 of 2000 National Energy Act 34 of 2008 National Energy Regulator Act 40 of 2004 National Environmental Management Act 107 of 1998 National Energy Regulator of South Africa, 2009. South Africa Renewable Energy Feed – In Tariff (REFIT): Regulatory Guidelines 26 March 2009. General Notice 382 in Government Gazette 32122 of 17 April 2009. National Energy Regulator of South Africa., Consultation Paper: Cogeneration Regulatory Rules and Feed-In Tariffs, 19 January 2011. Available at: <http:// www.nersa.org.za/Admin/Document/Editor/file/Electricity/Consultation/Documents/NERSA%20Consultation%20Paper%20Cogeneration%20Regulatory%20 Rules%20and%20Feed-In-%20Tariff.pdf > (Accessed 11 May 2011). National Energy Regulator of South Africa., 2011. Consultation Paper: Review of Renewable Feed-in Tariff, March 2011. Available at: <http://www.nersa.org.za/ Admin/Document/Editor/file/Electricity/Consultation/Documents/Review%20of%20Renewable%20Energy%20Feed-In%20Tariffs%20Consultation%20Paper. pdf > (Accessed 11 May 2011) Seventeenth Constitutional Amendment Bill of 2009. Government Gazette No. 32311 of 17 June 2009.

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JUWI - ENERGY IS HERE 100% commitment to renewable energy Mainz in Germany, 15 years ago: Sparked by the idea of introducing wind turbines to their home town, two students share a vision of an energy solution for the region of Rhineland-Palatine. Convinced that nuclear and coal power stations are no longer a solution, being dangerous and ecologically harmful, the founders of juwi, Matthias Willenbacher and Fred Jung, set about realising their ambition. A short distance from one of their parent’s home, their first wind turbine with a power of 0,5 megawatt was built in 1996. The wind turbine has subsequently been replaced by one of the most powerful in the world. With a peak power output of six megawatt, the new E126 produces 18 million kilowatt hours per year and has the capacity to supply 5 000 households with green electricity. Juwi is now one of the leading specialists in the field of renewable energy, with head offices in Wörrstadt, near Frankfurt. The company employs over 1400 people worldwide, with plans to grow by an additional 500 people during 2011. The renewable energy sector as a whole is in fact a significant employer, having created around 350 000 new jobs in Germany. By 2020 there will be more than half a million jobs in the renewable energy sector, in Germany alone. juwi develops, finances, constructs and operates renewable energy projects throughout the The Enercon E126 at Schneeberg is currently the most powerful world. turbine in the world Its vision today: To bring the idea of decentralised energy supply via renewables to other regions of the world. Currently juwi has twelve subsidiaries worldwide. In 2010, juwi founded five new subsidiaries in countries as diverse as South Africa and India. juwi’s reach goes beyond the wind energy sector, pursuing the idea of a world that generates 100% of its energy supply from renewables. To this end, juwi incorporates biogas plants as well as solar power plants, and has already installed 1 500 photovoltaic plants with a total power of 700 megawatt. In the field of wind energy, 450 wind turbines have been installed with a total power of 700 megawatt. The company’s interests extend to the field of energy-efficient buildings, so much so that its head office, which was built in 2008, counts amongst the most energy-efficient buildings worldwide. The main principles being: Saving energy, managing energy and using energy in an extremely efficient way. The electricity required for the building is generated by the solar panels on the roof and on the side of the buildings as well as solar carports on the company grounds. After 15 years in the business, juwi-Group employees remain committed to renewables and are defined by their enthusiasm. “With renewables you can change the world for the better. That is our motivation”, says Marie-Luise Pörtner, managing director of juwi Wind GmbH.


PROFILE

Our juwi headquarters in Wörrstadt is amongst the most energy-efficient in the world

Wind energy for South Africa juwi has entered the South African market as leaders in the field of renewable energy, “This is a promising new market for renewable energies, as the country offers tremendous potential”, says Michael Böhm, Head of International Business Development Wind at juwi. juwi South Africa is based in Stellenbosch and at present focuses solely on wind energy. The company has great plans: By 2020 juwi South Africa aims to attain wind turbines with a total power output of between 200 to 300 megawatt, which corresponds perfectly with the South African government’s plans of installing 4500 megawatt of wind energy by 2019. With both good wind conditions and potentially suitable land, juwi’s goals are achievable. “The South African government wants to establish diverse renewable energy sources. This suits juwi since we are active in all renewable energy fields, and plan to develop solar energy projects in the long term”, says Michael Böhm. The team around Michael Böhm is convinced: Green energy is a big opportunity for South Africa. Teri Kruger from juwi South Africa says: “It makes sense to install decentralized renewable energy plants to ensure cleaner energy production and a stronger grid. This will bring about greater energy security and offer job-creation prospects.” Teri Kruger Director Stakeholder Relations juwi Renewable Energies (Pty) Ltd • B7 • Octo Place • Electron Road • Techno Park • Stellenbosch • 7600 Postal Address: Suite # 431 • Private Bag X5061 •Stellenbosch • 7599 • South Africa Tel. +27. (0)21. 880 7075 • Fax. +27. (0)21. 880 7071 Cell. +27. (0)78. 926 8856 kruger@juwi.co.za • www.juwi.co.za


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LEGISLATIVE MANDATES FOR SUSTAINABLE AND RENEWABLE ENERGY USE Mandla Tsikata Junior Partner LTE Energy (PTY) Limited

INTRODUCTION With the drivers in the macro policy environment and core energy arena firmly communicated and the Eskom challenge explicitly put into context, it is logical to review the direct policy and support mechanisms for Renewable Energy (RE) currently available in South Africa. The point of this exercise is to understand the regime in which these technologies will operate. The record of success for RE adoption is low and the environment for rapid Renewable Energy uptake is not entirely supportive. To select a technology purely on its resource viability, climatic mitigation reduction effects and job creation potential without any review of what instruments exist to lower the hurdle rate, is akin to walking in the dark wearing blindfolds. One needs to have a bird’s eye view in order to differentiate core from periphery issues. The DME 2003 Renewable Energy White Paper sets the target for Renewable Energy to produce 10 000 GWh of energy or correspond to approximately 4% of the installed electricity capacity base by 2013. No support mechanisms are specified to reach this target although a host of methods are mentioned and given a SWOT analysis. The Department of Energy (DoE) has mandated its Clean Energy Directorate the Renewable Energy Finance and Subsidy Office to give a once-off capital grant support to individual Renewable Energy projects according to predetermined evaluation criteria. The DoE, in partnership with the World Bank, has also established the Renewable Energy Market Transformation project, housed at the Development Bank of South Africa with an initial focus on the RE power sector and commercial solar water heating industry. Notwithstanding other efforts, the REMT initiates technical studies and capacity building through workshops. The DoE also has the South African Wind Energy Programme (SAWEP), one goal of which includes the creation of a reliable wind atlas for the country. As part of its legal mandate and powers, according to the Electricity Act 2006, NERSA has promulgated a set of tariffs specific to Renewable Energy and a regulatory under the Renewable Energy FeedIn-Tariff (REFIT) Guidelines. Phase I is limited to four technologies while Phase II includes more technologies along with their potential tariffs. These cover Renewable Energy electricity generation THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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technologies meant to feed power into the national grid. The implementation of REFIT Phase I is pending NERSA board approval. Within the electricity generation sector, Eskom has a Pilot National Cogeneration Programme to incentivise the cogeneration sector (industrial waste heat, bagasse, etc) to feed power into the national grid. It also has the Medium-Term Power Purchase Programme (MTPPP) which offers special tariffs for a host of electricity generation options with no specific limit placed on technology criteria. Here the incentive is guided by lead times to plant commissioning in order to meet the supply/ demand shortfall. Hence, the faster a plant can come online the higher its potential tariff. There are cut-offs for minimum capacity. In the non-electricity sector, the Eskom Demand Side Management (DSM) incentive programme for solar water heaters (SWH) offers a subsidy direct to end users for the installation of a SWH. The subsidy is calculated according to the total installed cost of the system. Some municipalities are also considering the introduction of by-laws to mandate SWH installations or fee for use financial support schemes for SWH. However, at the time of going to print this could not be verified. On the DSM side, Eskom also has the Electricity Conservation Programme (ECS) meant to penalise consumers for using electricity beyond a base determined by existing consumption rates with the overall goal being a 10% national reduction in consumption. This should be seen more as an indirect support for RE as it encourages self generation where feasible. Donor assistance for technical studies (GTZ Western Cape Grid Study) and project development feasibility work (by DANIDA for Bethlehem Hydro) also exists to serve as a mechanism of support for RE. Perusing available literature show these to be the known official policy regime and support mechanisms currently available to RE in the country. However, either the ability of the industry to access and exploit these, or the effectiveness of the said mechanisms hangs in the balance because the pace of progress indicates that the 2013 target is unlikely to be met. Even with the REFIT meant to give guaranteed markets; cancel out market imperfection; distortion; and give certainty to investors, barriers still present themselves for increased uptake of RE. Some exist due to larger planning considerations (Eskom transmission expansion plans to accommodate high wind regions) while others are said to be regulatory, financial and technical in nature. The table below identifies barriers per category and measures taken to address these.

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Category

Element

Source

Known measures being taken

Further recommended measures

Regulatory/Legal

REFIT – Electricity Act 2006 ambiguity

Stakeholder comments on REFIT

Energy Bill 2008, REFIT consolidation pending stakeholder comments & NERSA board decision

Make REFIT legislative Act like Electricity Act 2006

Economic/Finance

DoE REFSO subsidy too low

Project developers

Some support by international agencies

Eskom DSM incentive for SWH not stimulating uptake and market growth

Workshops

Increase annual budget support to Clean Energy Directorate

Technical

Reliable resource assessment databases not in public domain

Project developers, researchers

DoE SAWEP programme, technical assistance for feasibility/studies by international agencies

Tertiary institutions undertake resource assessment studies

Social

Society generally aloof to RE benefits

Literature review, personal observation

Public hearings (NERSA), post graduate studies

Shift driver of RE from climate change to socioeconomic benefits, more targeted awareness

Capacity/Skills

Institutional & industry wide capacity and readiness for accelerated uptake questionable

Personal observation

Workshops (REMT, GTZ, DoE, others), post graduate studies, international exchange programmes

Create permanent Renewable Energy agency, temporary stopgap through imported skills

REMT project

Table 7.1: Identified barriers by category & element

POLITICAL CLIMATE It is important for any RE target set by governments to have clear stated intentions and objectives. By doing this, the likelihood of inaction and unintended consequences can be spotted early and corrected. Who the obligation is placed on for RE contributions and how they are to be compensated can unwittingly create proponents of dominant market power within the sector. All the more reason why the intention, target and accompanying support mechanism should be clearly stated, communicated and understood by all stakeholders. THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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The market for RE in South Africa is small and fragmented. With a still small resource of regional human talent on RE and a near total international technology vendor market, any support mechanism introduced is likely to see a small subset benefit for what would be considerable contributions to meeting the national target. Proper channels must be put in place for human capacity to be adequately strengthened. Technology transfers need to be facilitated and public awareness and consensus built surrounding the RE technologies likely to be on any shortlist. Perhaps more emphasis should be placed on technologies that have the potential for local innovations and manufacturing. A review of most RE support programmes will show that a fairly established local/ regional RE manufacturing base were direct beneficiaries of increased installed capacities. Japan’s residential solar PV programme benefited its domestic PV companies largely over foreign ones. Denmark, where wind power contributes a sizeable amount to overall electricity demand, has a number of large wind turbine manufacturers as global leaders. This is also true in India, Spain and Germany, with RE support mechanisms lifting the tide for local companies involved. The point here for South Africa is that only the solar water heating industry, of all RE technologies considered, can be said to have any sizeable local manufacturing capacity. Any RE technology scenario is unlikely at present to result in the large number of citizen-owned systems as witnessed in other markets. Cooperatives and citizen-owned RE systems, highlighting the distributed power qualities of RE, were instrumental in political and public support for increasing the use of renewables in many developed countries. In describing barriers towards RE in Spain, Mendonca found that technologies with low market presence confronted more barriers, including disinterest and passivity of local authorities, insufficiently trained personnel, few specialised companies, contradictory regulations in other sectors, and a lack of crosssectoral policy integration. The Cuban example is noteworthy and heralded by international media outlets for meeting its energy requirements self sufficiently while developing local competencies because of a change in their circumstance following the fall of the Soviet Union. Local innovation is important. South Africa should not wait for dire consequences to then only revisit the mindset of meeting one’s own needs.

WHAT OTHER COUNTRIES HAVE DONE A fitting entry point to sit and take stock of measured developments across the globe and with regards to South Africa, is the often lively discussion among stakeholders as to the role RE should play in a particular region. The steady increase of targets being set over the past two years shows momentum. Whether for security of energy supply, to diversify the energy supply mix, energy savings on the demand side, efficiency gains during production or to reduce and lower emissions, the role 122

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played by Renewable Energy appears to be gaining converts. This debate, taken up by climate change proponents the world over, shows signs of increased participation. With the Department of Environmental Affairs and Tourism (DEAT) taking a leadership role on issues of climate change, as well as energy efficiency awareness building by the DoE, official campaigns (Indalo Yethu campaign, Energy Efficiency campaign) have been launched. Increased participation by the public and not just commercial entities will be crucial in consensus building. Not without critics, some question motivations behind the almost evangelical conversion to the green way by politicians, actors and public figures alike. In an article for the June 2007 edition of Modern Power Systems, Jeremy Wilcox writes that ‘the greening of politicians has been one of the most significant political developments of the past decade, yet skeptics are right to question whether this conversion to the Green Gospel is due to a sincere desire to tackle climate change or whether it is driven more by the desire to accumulate political power. In all, it is probably a bit of both. Is it all political rhetoric? A fitting analogy is with the United States response to the oil price shocks of the 1970s. The response by the US government saw a wave of awareness building around issues of alternative energy sources and corresponding earmarks in the national budget towards research and development. Jimmy Carter, US president at the time, went as far has having solar thermal systems installed in the White House. All this changed with the inauguration of Ronald Reagan. In an appropriate symbolic gesture, the solar panels were taken off the roof of the White House. Kofi Annan’s Nelson Mandela Lecture, where he pointedly stated that Africa will bear the most adverse effects as a result of climate change, should serve as enough of a reason for increased engagement on and debate of how to develop an African solution and framework to the problems stated. The influence of Government in making decisions to support RE is not without heavy vested interests for and against its use. These decisions come under the spotlight all the more, when support for RE is announced, only to result in underperformance and targets unlikely to be met. In California, where an ambitious target for RE was brought forward to 2010, three years earlier than 2013, the public utilities commission concluded that the State will miss its target for renewables. It requires a fifth of its electricity from RE sources. Meanwhile, the plan to install solar roofs on houses has been stymied by the high cost of photovoltaic panels, red tape and a requirement, temporarily suspended, that customers buy additional power at rates that vary according to demand. That would have increased some households’ energy bills.

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Taking a closer look at the California Solar Initiative (SBI), with an incentive package of $3 billion worth of subsidies to 2017, with California customers paying $150 per annum, the incentive looks encouraging. On these assumptions, according to a San Diego Union Tribune article entitled ‘The Customer Makes the Market’, solar PV production was set to triple by 2010. Due to more favorable tax credits, commercial premises are likely to install the most systems. With the state effectively paying a partial sum for the systems, the manufacturers receive the full cost. Module prices have not fallen though systems are available to tapering of demand in Germany, Italy and Spain. Although increased feedstock is expected to come on line, with price reductions, solar PV’s market share for electrical generation is estimated to see little change in 2030 than in 2005 according to the Energy Information Administration. According to the International Energy Agency, member countries have long spent more money on technologies like nuclear power than on converting sunlight to electricity New York Times, (2007). This is despite the generous subsidies awarded to RE technologies through such incentives as a Feedin-Tariff (FIT). For wind energy in particular, these have resulted in cost reductions. It can be seen that most wind energy flourishes where government subsidies are offered. The issue is in finding the policy and support mechanism that will give the best results with the least incurred costs.

PUTTING THINGS INTO CONTEXT This is a likely concern in South Africa’s scenario; the question of who should bear the costs for a RE programme. Support mechanisms, either based on user pays or polluter pays principles are likely to face resistance if costs are too high to bear for one electricity consumption group. Some go on to argue that any support mechanism will almost likely put the cost on the domestic home user as the largest consumer by numbers. Is their consent to be assumed as given without any due consultation and debate? Is the general public aware of RE and its attributes? Are they to assume any action taken on their behalf, with their support and not necessarily at their behest, as indeed beneficial? On whom does the obligation fall to objectively communicate all of the above? Presently, with regards to the higher tariffs for green power, NERSA’s position appears to be that any green electricity premium should be borne by willing customers only, in the absence of promulgation of official frameworks (REFIT Phase 1 & 2). This is in line with the least cost provision of power directive. The effect of this policy has seen very little uptake for voluntary green power and an inability of green power traders (Amatola Green Power, GreenX Energy) to increase volume purchases. In general, this has stymied progress towards meeting Government’s 2013 RE target. Concerning NERSA, developing an accepted framework to cater for RE should be a priority. As BONN declarations show, the City of Cape Town and the Western Cape government are busy developing legislation to deal with RE within the Province. If more cities and provincial governments follow suit, 124

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it will be more difficult to then introduce a national framework able to retrospectively accommodate for other stakeholders taking the initiative. This situation presents NERSA and other stakeholders an opportunity to engage and develop a framework with a national consensus, far reaching in scope and merit than any regional initiative. It is not a forgone conclusion that any RE administrative body should be housed in NERSA. But with a mandate to regulate energy, NERSA at present stands out as an ideal location. The US experience, with often conflicting state RPS laws, is an example of the difficulties inherent in state by state RE legislation. There are more calls for a national RE standard and target to be applied in the US. Size and demographics differ for the US and South Africa. However, South Africa already has an advantage in that a national RE target has already been set.

RE IN THE SUPPLY MIX Another challenge to RE would be to devise strategies to productively increase its contribution to the electricity supply. This involves attempting to integrate an intermittent resource into the energy mix. With South Africa’s tight demand/supply mix, any increase in irregular dispatching will increase balancing costs while rendering higher overall costs. This scenario does not properly consider the benefits of RE power, i.e. distributed generation without the need for large load loss-bearing transmission grids, environmental advantages that are externalised for conventional power systems and the ability of consumers to create and manage power for themselves. The Danes have had similar experiences and have conducted studies into the matter. The Danish Energy Agency sought in 2001 by Parliamentary request to investigate the problem of excess electricity production arising from the high percent of wind power and CHP (combined heat power) in the Danish energy system (Lund, 2007). Their findings were that more CHP, better efficiencies, less demand (savings) and more intermittent resources all lead to a higher excess production unless something is done to prevent such problems (Lund, 2007). Decreased use of fossil fuels corresponds with increased excess production for alternative sources. Solutions to fix this offered up by the Danish study focused on sustainable energy strategies making use of flexible energy technologies and designing better integrated energy system solutions, i.e. smart grids. A study on wind energy entitled Exploring the impact on cost and electricity production of high penetration levels of intermittent electricity in OECD Europe and the USA, Hoogwijk, M. et al. (2007) showed that a significant part of the technical potential can be produced at cost levels nearly competitive with present conventional electricity production. For grid-connected solar PV, electricity production costs could in the long term come down to competitive levels for sites with significant solar irradiance, depending on the costs of conventional power production. The study’s authors were of the opinion that static on site cost supply curves were not adequate when one sought to consider competitiveness with other electricity sources under long periods of observance. They found that wind and solar technologies, being hard to dispatch uniformly required operations by the system THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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operator that required additional costs. This was despite wind and solar use leading to reductions of electricity generation costs through learning by doing and mass production Hoogwijk, M. et al. (2007). The study’s authors noted the requirement of back-up capacity and transmission capacity under scenarios with high RE penetrations. The study distinguished what it termed were four factors that caused additional costs when wind and solar PV use increased in a regional system. These were a declining quality of the resource in terms of power density and location, i.e. depletion of the wind resources; the need for large investments in back up capacity due to low and decreasing ‘guaranteed capacity’ or capacity credit of wind and solar PV power; additional operational requirements such as an increase of spinning reserve due to the fluctuating nature of wind and solar PV power; and the necessity to discard part of the available wind and solar electricity at higher penetrations unless this energy can be stored Hoogwijk, M. et al. (2007). The study found that if wind electricity production exceeds about 30% of current electricity produced, discarded electricity is found to be the most significant factor for cost increase, accounting for 50% of the overall wind electricity cost Hoogwijk, M. et al. (2007). These percentages represent very high installed capacities for grid connected RE power. It is not envisioned that South Africa would encounter such RE penetration in the near future. The uneconomical status at certain penetration levels of the two technologies analysed by the Danish study, do not necessarily mean the same will be true in South Africa’s scenario. South Africa’s generation mix likely to contribute to the 10 000GWh target as estimated by the DME economic and financial analysis paper includes sugar bagasse cogeneration, landfill gas sites, biomass, hydro, solar water heating residential and commercial (playing the role of energy offsetting thus reducing demand), solar Photovoltaic (PV) and wind. Of all these, only solar water heating applications, which do not generate electricity are likely to be widely dispersed and meet onsite needs. The rest will likely meet some or all onsite needs while feeding the remainder onto the grid for general dispatching. It should go without saying that the more dispersed RE technologies one has, the more benefits can be added through job creation and local supply chains.

DENMARK’S MOVE TO CLEAN TECHNOLOGY Perhaps a more illustrative study for the South African context is another one undertaken to path the different phases of the technological change towards clean energy technologies in Denmark. It divided RE development in Denmark into two phases. The first, 1975 until 1996, saw wind power as a niche sector that contributed close to 3.5% of total power supply. In this stage the author contends that the challenge was to bring wind power costs to competitiveness with conventional power systems. The present second phase, which saw 18.6% of total power being supplied by wind power and combined heat and power plants supplying close to 50%, has seen new difficulties crop 126

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up. According to Hvelplund (2006), issues center on public acceptance and a need to integrate an increasing percentage of fluctuating energy sources into the energy system. In Denmark as in other European member state electricity markets, the problem of excess RE power is partially solved by dispatching the excess onto the spot pool markets, generally at low prices. These practices can be unprofitable for RE developers as the spot markets (Nordpool and Leipzig for Scandinavia and Germany respectively) are not explicitly designed to cater for dispatched intermittent RE power. In the first phase, the political battle was fought. Given its high cost, getting wind power production accepted by the public was a real task. This was achieved by means of a wind power policy based on the initial stages of technology development and a series of acceptable, general, and transparent rules for wind power fed into the public grid Hvelplund (2006). The author finds here that a main indication of success lay in the Danish tradition for co-operative neighbour ownership of energy technologies. With the development of wind power, a change was witnessed with a turning away from the co-operative ownership model for increased wind power capacity of the magnitude of 0.5-1MW turbines. The author describes the Danish system as having reached a ‘technological and institutional turning point’. This, he finds is characterised by an increasing political resistance to wind power and an increasing local opposition to wind power projects. As a result, phase 2 finds that the Danish green energy innovation process has been stopped. In all phases, the author singles out for further analysis the RE governance models. He describes the Feed-inTariff model as a ‘Political Price/Amount Market’ model (PPAM). The Renewable Portfolio Standard or Certificate Market Model is alternately given the title ‘Political Amount/Certificate Market model (PACM). In explaining his reasons for the name allocations, he says that the above renaming of the two models is important, as it underlines the fact that both models have a political as well as a market oriented element Hvelplund (2006). His analysis, besides looking at which model is more successful in stimulating RE capacity installation, also considers which of the two models shifts competition to the equipment market for RE technologies, thus allowing for increased cost reductions. Other markets worth considering are the market for electricity and pollution, the investor market, the public regulation market and the infrastructure/regulation market. Hvelpund’s findings are that a PACM model weakens competition in the equipment market. He explains that producers of RE technologies under this model are more likely to practice oligopolistic price behaviour to achieve high turnovers due to the politically given market size. Although motivation to reduce costs do occur, in the author’s view, producers would not be able to expand their profit by lowering prices and in that way expand the total market size. With the PPAM model, oligopolisitc market behaviour can occur, but as the market size to a large extent is determined by RE prices, there will be an incentive to lower both production costs and RE prices Hvelplund (2006). He uses a comparison of the German THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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PPAM model and the UK PCAM model. In the UK, prices for wind power after the introduction of the model were between 9.2 and 10.5 Eurocent per kWh in 2003, 2004 and 2005. He found these to be high considering the favorable wind conditions in the UK. These prices in comparison were nominally higher than those in Germany, especially telling when the UK is said to have better wind sites. This indicates that the argument used by advocates of the PACM model, namely that an increased market competition would result in lower costs and prices, does not work in practice Hvelplund (2006). He concludes here that the PPAM model is seen as the best option in attempting to bring about cost reductions on the equipment market. Opinion differs on the validity of these statements in other markets. Whether these cost reductions can be achieved in South Africa, regardless of the support mechanism, without any viable local manufacturing base remains to be seen. The question here is whether to induce demand to support supply or the other way round, regardless of the model adapted? With all these possible contestations, the political regulation and consultation process, local stakeholder involvement and the inclusion of the investor supply market are all important points of views to consider. People’s political acceptance of RE plants will depend on the extent to which some of the economic benefits are given to the people who carry the burden Hvelplund (2006). Price stability is important here too, as it will lock in local stakeholder involvement and possibly investment.

GERMAN AND SPANISH MODELS In a comparison with German and Spanish Feed-in-Tariff systems, Mendonca finds that both systems are characterised by both a relatively high static and dynamic efficiency Mendonca (2007). He contends that this high static efficiency is the result of investment risk lowered by the systems. The dynamic efficiency on the other hand, is brought about by promotion of what he calls ‘less mature technologies’, e.g. solar PV. He adds that both countries’ tariff support schemes rely on additional support measures. These can take the form of tax deductions, soft loans, financing support plus other incentives. In a similar analogy, many commentators on US policies effectively argue that without the Federal Production Tax Credit, a large number of state support schemes would be uneconomical. Each and every paper which assesses renewable support schemes finds the same conclusion - that it is vital to provide an intelligent policy mix to help overcome barriers to RE deployment Mendonca (2007). On the issue of reducing investment risks, Mendonca finds that Spain’s shorter period of guaranteed tariff levels would create in theory a higher risk for investors. This would lead to higher requested internal rates of return for investors and higher interest rates for Spain than in the German model. However, he finds that Spain has still witnessed significant growth rates at lower levels of tariffs than in Germany. He points to the ‘stable policy environment’ that has allowed for the effects on the

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ground. Spain’s Ministry of Industry is presently reviewing Royal decree 436/2004. Any reworking of it could have implications on the tariffs approved by the law that went into effect in 2004. One difference between the Spaniards and Germans in how they designed their systems is the ‘stepped’ tariff design in Germany as opposed to the ‘flat’ tariff structure in Spain. The stepped design of tariffs gives the opportunity to reimburse generation from RE in different bands of the (marginal) cost potential curve according to the actual generation costs Mendonca (2007). An advantage of this is said to be the ability to lower producer profits when compared to ‘flat’ tariff structures with regards to efficient generation options. Where the two country systems do differ again is through the degression of tariffs. Germany employs what is termed ‘temporal degression of tariffs’, that is, deciding and setting a percentage drop in the tariff awarded to a particular technology band over the years beforehand. Spain makes adjustments on a year by year basis based on market conditions, allowing for tariffs to increase or decrease. Degression is intended only for new investments in Germany where as in Spain new and installed technologies are subject to tariff adjustments. Therefore the Spanish system leads to ‘overpaying’ existing plants if the tariffs are increased and to financial underperformance for investors if the tariffs are lowered Mendonca (2007). On perceived cultural differences between the two countries, Mendonca makes an interesting statement. German citizens invest in renewables partly out of ‘Ökologismus’, meaning that they assume a level of personal sacrifice in support of environmental gains. On the other hand, Spaniards are said to be lagging behind in terms of awareness and commitment, and are motivated more by the investment returns made possible through the FIT system.

FEED IN TARIFFS & RENEWABLE PORTFOLIO STANDARDS It is perhaps appropriate to delve into the tenets of a Feed-in-Tariff and RPS (Renewable Portfolio Standard, or quota system) and review what others have said concerning their flaws, advantages, pros and cons. Support for a RPS/Quota system center on; its promotion of least cost projects, on it being compatible with traditional power markets, and its ability to integrate RE in the Electricity Supply Industry. Experience differs by region. Especially where countries/regions have only adopted either a RPS or Feed-in-Tariff as opposed to both leaves little ground for arguing that one is the better of the two because that is what your policy has adopted. Most of the criticism is theoretical, implementation mechanisms speak volumes to a particular model’s viability (political will counts too). The objectives of policy can render the appropriate model to endorse. It is fitting to begin with the US, where RPS enactment is widely used by state, varying of course in design and requirements.

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In his book, Feed-in-Tariffs: accelerating the deployment of Renewable Energy, Mendonça (2007) makes note of problems experienced in US RPS design, according to Wiser and Langiss. These problems centre on inadequate attention to the relationship between the Renewable Energy purchase requirement and eligible Renewable Energy resources. Here, he cites Maine, where a target of 30% has been set. To meet the target, eligible technologies include Renewable Energy and high efficiency natural gas cogeneration in the New England region. The supply is said to exceed the standard. This has an effect on REC prices. More so, Mendonça concludes that the RPS will do nothing to support new Renewable Energy development. He also cites selective application of the purchase requirement as a problem. Several US states only apply the RPS to a small segment of the state’s market, muting the potential impacts of the policy. Next is uncertain purchase obligations or end dates. In this example, Maine is cited again where the RPS is set for review every five years. Another problem is insufficient enforcement of the purchase obligation. Mendonça concludes that the best results around the world are shown to be a product of a combination of policies and market mechanisms that support RE Mendonça (2007) In other analyses, Rickerson and Zyaturk highlight RPS shortcomings in the US. They contend that the low price focus of certain RPS has resulted in geographic concentration of wind farms. This has led to a NIMBY effect (Not In My Back Yard) with people opposing wind developments. This NIMBY effect has also been cited in Cape Cod residents opposing off shore wind farms due to its blocking of sailing lanes. Other NIMBY based resistance to wind farms center on the blades killing bird species. In authors’ opinions, RPS systems target near-market technologies, due to the lowest-cost technologies being ‘pulled through’ first, and leave technology markets to be supplied by foreign markets. Deployment is often too slow and limited to encourage domestic production. China opted to avoid a feed-in tariff as it would speed up deployment too much, and they would not have time to set up enough manufacturing to meet demand (IBID). The first part of the statement is misleading. On review, most deployment of RE technologies in the developed world, has tended to support local manufactured technologies first and foremost, regardless of the support mechanism. Imports have occurred as in Japanese solar PV panels accruing a large share of installed capacities in Germany and the US. As to China’s opting out of a Feed-in-Tariff on the grounds provided, this cannot be effectively ascertained. It is plausible, however, that a Feed-in-Tariff can allow for rapid deployment due to the price certainty offered as mentioned earlier. The authors continue that deployment rates under the RPS systems will not do enough to mitigate the effects of climate change. In other places the targets have not been met. This has already been documented. On the question of system costs of US RPS vs. Feedin-Tariffs and the overall effects on electricity cost, views differ as to which has the least impact on overall electricity costs. Usually based on underlying assumptions and modeling characteristics, one could argue that the jury is still out. Also, other studies look at assumptions in isolation, thus limiting arguments to measurable variables that do much to support the positions taken but are prone to be 130

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disputed. Concerning the US, the inappropriateness of the RPS model adopted is base on the state by state approach rather than any implied inadequacy of the RPS vs a Feed-in-Tariff. Although there are calls for a Feed-in-Tariff for the US, many are also of the opinion that a national RPS will be just as effective in meeting targets set.

FEED-IN-TARIFF ADVANTAGES The perceived and measured advantages of Feed-in-Tariffs have already been well documented. Briefly, benefits include its success in Germany and Spain; a greater flexibility to deal with changes in technology etc; encouraging increased participation of small and medium producers; and risk premium for investors being lowered. Arguments against the use of a Feed-in-Tariff model, whether in a deregulated market or not are not surprisingly few and far between. Due to its success and replication, the Feed-in-Tariff remains the preferred model by developers and policymakers to increase the use of RE for whatever the stated objectives. In sum, so long as the Feed-in-Tariff as a support mechanism is able to meet stated goals and objectives, an almost proverbial self fulfilling prophecy is bound to continue to make converts of stakeholders and the public alike. However it is not without criticism and Mendonça mentions two (with ready rebuttals): • Tariff adjustment is important as an improperly designed tariff can result in overcompensation and windfall profits to RE power producers, as witnessed during Spain’s initial implementation of its Feed-in-Tariff. • It is also prone to restrain trade in RE if domestic production requirements are stipulated. This in itself is not entirely bad depending on one’s point of view on the matter. For the South African context, a relevant question to ask is where the market for RE finds itself? Is commercial competition an objective of the target set and support mechanism adopted? Or would delegating obligation to Eskom serve a wider reaching purpose. i.e. allow Eskom to use its dominant position to meet South Africa’s RE needs as it currently meets most electricity needs? So, for any support mechanism in South Africa, one needs to take cognisance of what the mechanism will do with regards to short term, medium term, long term and immediate term goals? Are the support mechanisms mentioned above readily applicable in the scenarios mentioned? One way to illustrate this point is to look at research and development budgets of IEA countries over years and then identify when various support mechanisms were introduced. Suffice to say most figures point to substantial R&D before any or in tandem with support policies and mechanisms. It ties in to the ultimate objective of the support mechanism, what it aims to achieve. China opted out of adopting a Feed-in-Tariff as they felt their local capabilities were not ready. Another question worth exploring is what support mechanism is the best enabler for South Africa, given the present circumstance? The country as a whole is not where

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PROFILE

Finishes of Nature Who are we Finishes of Nature provides zero waste and integrated biogas based energy and nutrient beneficiation systems, incorporating the necessary planning, engineering design and project management services through our partnerships with Element Consulting Engineers (Pty) Ltd. and Peoples Power Africa Biopower (Pty) Ltd. Our philosophy Is to champion the use of biocompatible people based systems that work together with nature to produce regenerative zero-waste outcomes, efficient resource use and the promotion of local economic linkages. Contact David Oldfield MOBILE: 082-791-3510 EMAIL: do@morganbay.co.za PHYSICAL ADDRESS: 156 Magenta Place, Morgan Bay, 5292 POSTAL ADDRESS: PO Box 156 Morgan Bay, 5292

Deep fermentation pit digester at Blueberries Farm, Stutterheim


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Germany was when its Feed-in-Tariff was introduced. With all these considerations are unknown effects of introducing any support mechanism that could result in unintended consequences.

RENEWABLE ENERGY AS PART OF AN ENERGY EFFICIENCY INITIATIVE Renewable Energy tied into energy efficiency initiatives is also considered a viable option. Along with RE targets, some authorities set energy efficiency targets which work in tandem. The use of energy efficiency, or, to put it alternatively DSM (demand side management) measures to reduce supply demand constraints is under way. These can be simple tasks bordering on creating awareness of what the general public can do, from switching incandescent light bulbs to CFLs (compact fluorescent lightbulbs), using gas cookers rather than electrical ones and inducing load shifting whereby homeowners and industry alike are encouraged to reduce overall demand at certain peak times. The DoE led media campaign can be credited for encouraging smart use of appliances at home. Utilities can also place more emphasis on energy efficiency where RE resources are relatively scarce. In the US, motivation for RE to be bundled with Energy Efficiency goals are expressed through the need for Sustainable Energy Portfolio Standards (SEPS). For the US, Brown, Kushler, and York conclude that energy savings from energy efficiency programmes are sufficiently reliable, predictable, and enforceable to allow energy efficiency to be incorporated as a utility system resource (Brown; York; Kushler, 2007). Unfortunately, a variety of barriers including the coupling of electric utility profits to electricity sales in many states hinder greater investment in cost effective energy efficiency (Brown; York; Kushler, 2007). Derived mostly out of concern on pollution and the need to reduce emissions, proponents argue energy efficiency programmes on the grounds that the price of fossil fuel energy does not adequately express external costs, resulting in ‘artificially’ low prices for conventional power generation systems with which RE technologies cannot economically compete. Prices are giving false signals and are confounding the communication between consumers and producers (Brown; York; Kushler, 2007). This is plausible, in South Africa where electricity prices are low by world standards and there has historically been little incentive to conserve power. A shift in thinking is happening as Eskom has indicated a desire to introduce time of use (TOU) charges for consumers. This paradigm centres on electricity prices accurately reflecting costs.

CONCLUSION In order for the Renewable Energy industry to make a tangible contribution to South Africa’s socio economic development objectives, the support given to it needs to be clearly aligned to the larger development agenda. An overview of other countries policy support mechanisms for RE shows there to be linkages between increased uptake and local manufacturing and other economic THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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activities, research and development with emphasis placed on value addition and human resource development. For South Africa to embark on this ambitious step to make its economy less carbon intensive through the development of the Renewable Energy industry, the goals and targets set need to be understood within a framework of what the immediate gains would be - climate change mitigation, enhanced security of supply - against what longer term possibilities exist – Renewable Energy cottage industry, technology value addition, marshalling of human resources to other regions. This article has reviewed what regulatory and policy support mechanisms can do to dramatically scale up Renewable Energy applications in a particular region. Yet an analysis of these mechanisms showed these to translate into direct support for Renewable Energy firms located in these countries. These frameworks also laid the foundation for many local firms to position themselves for export of services and technology into other regions. The lesson here is that lest South Africa create an enabling framework without the necessary linkages to develop the capacity of local firms, gains made outside of infrastructure development - in human resource development especially - will likely be lagging. REFERENCES Brown, M.A. York, D. Kushler, M. 2007. Reduced Emissions and Lower Costs: Combining Renewable Energy and Energy Efficiency into a Sustainable Energy Portfolio Standard. The Electricity Journal, Volume 20 Issue 4. Pages 62 - 72 Hoogwijk, M. van Vuuren, D. de Vries, B. Turkenburg, W. 2007. Exploring the impact on cost and electricity production of high penetration levels of intermittent electricity in OECD Europe and the USA, results for wind energy. Energy, Volume 32, Issue 8 Pages 1381-1402 Hvelplund, F. 2006. Renewable Energy and the need for local energy markets. Energy, Volume 31 Issue 13 pages 2293-2302 Lund, H. 2007. Renewable Energy strategies for sustainable development. Energy, Volume 32 Issue 6 Pages 912 – 919 Mendonça, M. 2007. Feed-in-Tariffs: accelerating the deployment of Renewable Energy. London

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PROFILE

THE CHEMICAL AND ALLIED INDUSTRIES’ ASSOCIATION The Chemical and Allied Industries’ Association (CAIA) was established in 1994 to promote a wide range of interests pertaining to the chemical industry. These include fostering South Africa’s science base; seeking ways to promote growth in the sector; promoting the industry’s commitment to a high standard of health, safety and environmental performance; and consulting with government and other role players on a wide variety of issues. 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. CAIA is the South African custodian of the international Responsible Care initiative, which has been adopted by 53 countries worldwide. This is a key component of the work of the Association. CAIA obtains guidance on the implementation of the initiative through, the International Council of Chemical Associations (ICCA). 142 members are now signatories to Responsible Care in South Africa.

Responsible Care is an initiative of the global chemical industry in which companies, through their national associations, commit to work together to continuously improve the health, safety and environmental performance of their products and processes, and so contribute to the sustainable development of local communities and of society as a whole. It encourages companies and associations to inform the public about what they make and do, about their performance including reporting performance data, and about their achievements and challenges. As a relatively intensive user of energy, the chemical industry contributes to the generation of greenhouse gases through its consumption of various energy sources. CAIA has been collecting energy consumption data from Responsible Care signatories since 2003. The energy intensity of production based on electricity use has reduced significantly since data collection began and energy efficiency has improved by 25%. CAIA also recently launched a guidance document for the development of site level carbon footprints which includes a comprehensive review of energy use on a site.

Contact details M D Booth, Director Information Resources Tel: 011 482 1671; E-mail: caiainfo@iafrica.com


PROFILE

Bosch Projects – Renewable Biogas Energy Bosch Projects is looking at international technology in order to further their capabilities in the waste to energy market sector. Scandinavian countries have been very focused on energy efficiency and waste heat recovery for some years now. As a result of this, they have developed well-established, proven anaerobic digestion technology which has originated from the agricultural sector and has subsequently been expanded to include other waste-based feedstock. Anaerobic digestion is the naturally occurring process whereby organic waste matter is decomposed to produce a methane-rich gas. Man has been using this methane gas for cooking and heating purposes for hundreds of years. Today’s modern anaerobic processes are designed to create exactly those conditions that optimise the biochemical reactions and the decomposition processes that result in the production of as much biogas as is practically possible under specific conditions. The


PROFILE process usually enables the recovery and re-use of the inorganic components, which can be returned to the land as agricultural fertilizer. Anaerobic digestion presents an environmentally sustainable solution which addresses both the problems of disposal as well as electrical energy production in one operation. The methane-rich gas, which is produced by this anaerobic process, is refined and used as the fuel that is required to drive either a gas-turbine or reciprocating gas engine. This turbine/engine is used to drive an alternator for generating electric power which can then be exported onto the local electrical grid. The biogas power produced from this process essentially displaces power produced by fossil-fuel powered units and ultimately results in a reduction of green house gases which are emitted by the fossil fuels. Durban-based Bosch Projects is a solutions-driven organization that has extensive inhouse multi-disciplinary expertise fully capable of engineering optimum solutions for our clients. Regions of activity range from South Africa to the rest of Africa, Asia, the East and the Americas. With offices in South Africa and Brazil, our response time to meet our Client’s needs is rapid and delivery is based on as ISO 9001 Quality Management System. Bosch Projects has joined forces with international technology partners and Universities and is able to offer the most up-to date, proven technology selection insofar as Biogas Power is concerned. Contact: Butch Carr/Graham Ahrens Bosch Projects Tel: +27 (31) 5656000 carrb@bproj.co.za ahrensg@bproj.co.za www.boschprojects.co.za


08: RENEWABLE HYDROPOWER CHAPTER 02: IMPORTANCEENERGY: OF DAMS AS MULTIFUNCTIONAL ECOSYSTEMS

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RENEWABLE ENERGY: HYDROPOWER Bohuslav (Bo) Barta Specialist Consultant Energy & Water Resources Engineering

BACKGROUND OF HYDROPOWER DEVELOPMENT Hydropower is recognised world-wide as a robust and well tested renewable energy technology in electricity generation sector, preferred due to the most efficient energy conversion process. Modern installations can convert up to 95% of the energy of moving water into electricity. However, the development of hydropower is very site specific and requires generally a multitude of disciplines in its development stages. The hydroelectric installations are recognised as most exemplary renewable energy converters producing minimal quantities of carbon and other emission gases during construction and operating life of a generation system. The hydroelectricity generation is entirely non-consumptive use of water in contrary to any other uses where water is an essential ingredient. The hydropower installations are typically classified as follows: Hydropower category

Capacity in power output

Potential hydropower use either as a single source or in a hybrid configuration with other sources of renewable energy

Pico

Up to 20kW

10kW network can supply a few domestic dwellings

Micro

20kW to 100kW

100kW network to supply small community with commercial/ manufacturing enterprises

Mini

100kW to 1MW

1MW to 10MW network–electrical distribution will be at medium voltage ranging from 11 to 33kV and transformers are normally needed. The generation must be synchronised with the grid frequencies (typically to 50 or 60 Hertz).

Small

1MW to 10MW

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NB: All installations above 10MW are classified as macro (or large) hydropower plants Table 8.1: Categories of small-scale hydroelectric capacity application

PAST AND PRESENT DEVELOPMENT OF HYDROPOWER IN SOUTH AFRICA By international standards the extensive development of hydropower for electricity generation has not been considered seriously in South Africa. The exemption has been made only to the development of several pump storage schemes for the peak generation. There are also two storage-controlled large hydropower plants situated on the Orange River. At present the overall hydroelectricity generation capacity represents only about 5% of present total 45 500 MW installed generation capacity in South Africa. Although no significant development of hydropower in southern Africa has been noted for 30 years, the small-scale hydroelectricity generation has been a significant component of the yester-year electricity production in several parts of South Africa, mainly for the urban settlements situated along the eastern side of the Drakensberg Mountain range. The first-known small-scale hydroelectric plant was installed in 1885 at the foothill of Table Mountain in Cape Town. There are a few surviving old plants situated around South Africa mainly out-of-operation plants. These installations need serious refurbishment and upgrading. After 30 years of neglecting the hydroelectricity potential in SA, the first success in development of hydroelectricity is the new small-scale hydroelectric installation commissioned at the Sol Plaatje Municipality in the Free State Province. This new installation of 7 MW in capacity comprises two plants located 15 km apart on the Ash River which is fed by the artificial flows through the Lesotho Highlands Water Project water supply infrastructure generated from the Katse Dam.

NEED FOR RENEWABLE ENERGY DEVELOPMENT IN SA Although it is acknowledged that South Africa is not particularly endowed with the best hydropower conditions as elsewhere in the world, supplying water over the long distances and elevations is common for domestic, industrial and irrigation water transport schemes. The infrastructure assets which allow for daily water transport (eg, tunnels, pipelines, canals, water distribution systems, etc) or environmental water releases (eg, from the large and medium dams) are current potential sources for the small-scale hydroelectricity generation in South Africa. The development of hydroelectricity generated from augmentation of the hydraulic structures (eg, dams, canals, etc.) will enable optimal use of available water resource and promote Public-Private Partnership (PPP) principles between private and public sectors. 140

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Table 8.2: Total installed capacity and estimated overall potential for all hydropower types in South Africa (as in 2010)

In the electricity generation sector hydropower is preferred due to the most efficient energy conversion process and as a most practical means in storing the energy (eg pumped storage scheme). The small-scale hydroelectric (SSHE) installations are recognised as most exemplary renewable energy converters producing minimal quantities of carbon emissions and other emission gases during construction and operating life of a generation system. The small-scale hydroelectricity generation is entirely non-consumptive use and does not pollute water resources in any significant way. If it is assumed that the utilisation lifespan of a plant is 20 years before major refurbishment will have to take place, then the gross energy output over a plant lifespan is about 166,4 GWh. The 1 MW plant can thus offset about 148 132 tons of CO2 if the World Bank baseline conversion rate of 890 tons CO2 per GWh is applied. The same size plant can also replace about 6 000 tons of fossil fuel in 20 years while supplying some 1000 sub-urban households with electricity.

WHERE TO LOOK FOR HYDROELECTRICITY IN SOUTH AFRICA Refurbishment of existing hydroelectric installations There are a few existing small-scale hydroelectric installations scattered around South Africa, Lesotho and Swaziland. Most prominent presently idle or defunct small-scale hydropower installations suitable for refurbishment and upgrade are the Belvedere Old Hydro (2 MW), Jozini Dam Hydro (2,7 MW), Kouga Dam Hydro (3,8 MW), Mkhondo (Piet Retief ) Hydro (1 MW), and Orange-Fish Tunnel Shaft 7 (up to 10 MW). The overall refurbishment capacity potential is in order of 15 MW and more. There are several very small either active or disused privately-owned installations also in need of refurbishment/ upgrade. The red dots in Figure 1 illustrate some numerous pico, micro and mini hydroelectric plants installed and operated mainly between 1920s and mid 1950s. THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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The district and local municipalities should identify obsolete infrastructure and determine hydroelectric potential of these installations. The finance funding can be provided by the DBSA or any other banking institution keen to develop renewable energy projects.

RUN-OF-RIVER HYDROELECTRIC INSTALLATIONS A run-of-river hydropower installation is suitable to be installed at a location where there is no large impoundment storage available (ie, natural or man-made impoundment) feeding a hydroelectric installation. In most instances a low height weir structure is build from local material and kept at a fairly constant head of water. A simple intake structure is installed in the weir or elsewhere within the weir impoundment, providing for water to be transferred by a conduit (or canal) to a suitable point to be dropped through a penstock (typically a steel ground-anchored pipe) to the turbine/generator set(s) locations. The amount of power that can be produced at a suitable site is a function of available head and flow (of sustainable quantity) according to the following formula: Power output (kW) = gravitational constant (m/s2) * water flow rate (m3/sec) * effective head (m) * plant overall efficiency (0.95 for modern electromechanical equipment)

Figure 8.1: Potential areas in SA where the run-of-river schemes can be located

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The pico, micro and mini hydroelectric sites (ie, capacity from 1kW to 1 MW) identified in South Africa, may be developed according to this principle. The rural communities in the Eastern Cape, Mpumalanga and KwaZulu-Natal provinces have access to water resources with good hydropower potential. The development of small-scale hydroelectricity particularly for the commercial and industrial consumption should be strongly promoted and supported. Communities with hydropower potential and interest in primarily developing the electricity for commercial purposes essentially need a wide professional support as any size of hydropower installation requires technical and operational inputs from civil, mechanical and electrical professionals.

Gravity low and high head water carrier systems Generally, a small-scale hydroelectric installation can be installed any place where the water flows under gravity and there is a sustained flow quantity regime. The hidden potential may be found in the following spheres of water supply and distribution systems: • irrigation canals - hydro energy can be extracted from most canals conveying water to the farms where the land and crops are irrigated. To utilise a low-head hydropower source a horizontal turbine/ generator set or the yester-year technology of waterwheel may be adopted. The waterwheel systems can be adopted for the canals with flow rates up to 1,0 m3/sec and more, requiring the heads between 2m and 7m, offering typically as much as 50 kW. A series of waterwheels may be assembled at any irrigation canal with sustainable flow. • water utility/municipal water supply/distribution systems – practically, all 284 municipalities and several of the water supply utilities (ie, former Water Boards) operating and administering the gravity water supply/distribution systems anywhere in South Africa (that also includes very dry areas of SA, as water is typically transported to the place of demand be it a town, mine, holiday resort, etc) can consider small-scale hydroelectric installation. Most of these water supply/distribution systems or their subsystems may be equipped with the pumps as turbines (ie, reversible flow pumps) in replacing the pressure throttling valves allowing for the hydroelectricity generation. The hydro energy may be used in the actual plant, supplied to the national electricity grid or feeding an isolated electricity demand cluster. • national inter-basin water transfer schemes – to overcome the imbalances between geographical water availability and demand for water a number of inter-basin water transfers schemes have been developed in South Africa. To date, the SA Government financed 26 six interbasin water transfer schemes which are administered by the Department of Water Affairs. Practically at all these schemes, the small-scale hydroelectricity plants (potential capacity between 0,3 and 10 MW) may be installed at the locations where a gravity water supply component (eg, gravity THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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pipeline) is present. It is estimated that initially some 202 GWh annual electricity output and reduction in carbon dioxide of some 118 000 tons per annum can be derived from the national water transfer schemes. • hydropower sourcing mining with mechanical/electrical energy – at all deep mines in SA large quantities of water are used for cooling as well as powering hydropower drills (ie, mechanical energy derived from hydropower). Typically, a vast quantity of water is poured down of a deep mine (say a 2 km drop can generate 20 MPa pressure) daily for cooling and for a dust suppression. This water is chilled on the surface in a refrigeration plant and conveyed through insulated pipes to the working areas where it is used in heat reduction and as a powering source for the water rockdrills and jetting guns. The Pelton turbines and centrifugal pumps with a variable speed drives are popular in hydropower generation on the SA deep mines. Several mines can discount their grid electricity demand by generating electricity in-house. • long diversion fed hydropower installations – a long feeding canal, pipeline or tunnel supply a hydropower installation, which will return the water flow back into the river of the same catchment or another river catchment. An example of such hydropower installation in Southern Africa is the Muela HPS (72 MW) in Lesotho situated on the Lesotho Highlands Water Transfer Scheme supplying daily large water quantities to South Africa. Within the borders of South Africa there is a firm potential for the diversion fed hydropower of about 5200 MW available primarily in the Thukela River valley (KwaZulu-Natal) and in the Mzimvubu River basin of the Eastern Cape Province.

Dam storage regulated head hydropower South Africa has a proud history in dam building with the first storage dam built as far back as in 1663 at the foothill of Table Mountain in Cape Town. In total there are about 3500 dams of all sizes and types in South Africa. About 450 dams are classified as medium or large dams. It is estimated that some 100 large and medium dams are suitable to be augmented for generation of hydroelectricity by means of a turbine/generator unit attached to existing dam infrastructure (hydroelectric capacity ranging between 0,3 and 3 MW). The dams with best hydroelectricity potential have been already identified and several development proposals are being compiled for submission to the Department of Water Affairs.

Pumped storage hydropower schemes The peaking requirements of the electricity supply grid are best satisfied by introducing the pumped storage hydro installations into the network. It typically takes 2 seconds of starting time and some 15 seconds to get a hydro-plant in a full load production. A pumped storage hydro plant consists of upper and lower dam storage reservoirs and water is pumped between lower and upper storages when the electricity is in low demand, mostly during the night. The upper storage reservoir serves as

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an ideal hydraulic energy storage (battery). Storing 1 kWh of hydro energy requires 10 m3 over a drop of 40 m. There are three pumped storage hydro schemes (one municipal and two owned by the state) in South Africa at present. The national electricity utility Eskom is presently building Ingula PS scheme (four 333 MW pump turbines) costing R 16,6 billion (2009). It must be noted that in South Africa, the hydroelectricity produced from the pumped storage installations cannot be considered as ‘green’ because the energy used in pumping of water is coalbased.

Figure 8.2: Distribution of existing conventional large hydroelectric plants and planned hydro-pumped storage installations (Sources: DME/ESCOM/CSIR)

Importing hydroelectricity from other countries in Africa There is a good potential for South Africa to import hydro energy from other countries in southern Africa; Angola, Mozambique, Zambia and most prominently the Democratic Republic of Congo (DRC). DRC has the Inga Dam Hydro site on the Congo River which offers almost unlimited potential for the development of imported hydropower. The existing Inga Dam Hydro Power Station has potential capacity output of 45 000 MW (ie, almost the present electricity supply capacity of SA). South Africa can have a share in this capacity, if the political and socio-economic circumstances in southern Africa will allow for the safe transmission of hydro energy over long distances. If implemented, the monetary contribution and commitments from South Africa will be without doubt huge. THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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Source of energy components Access to source: type length Dam: type height length wall volume Reservoir: catchment area annual average runoff normal water level (FSL) high flood level minimum operation level live storage capacity Spillway: type design discharge number of gates dimensions design capacity Diversion tunnel/canal: dimensions length design capacity Low level outlets: emergency release gate(s) irrigation/water supply gate(s)

Generator of energy: Civil/electromechanical components and characteristics Transmission of energy to end user: in-house, cluster, grid, etc.

Head race tunnel/canal: Dimensions Length Surge chamber: type diameter of riser diameter of chamber height Penstock: type diameter length Turbine: type rated head rated discharge speed rated output

Generator: Rated output Power factor Generated voltage In-house losses Controls: busbars/panels SCADA

Power transmission: transformers transmission line

Security/safety: Fencing Lighting

Power station housing: type number of units installed capacity average annual energy Tailrace: type length

Notes: i. Typically most conventional hydropower projects are developed along three stages: identification/planing, pre-feasibility/pre-investment and feasibility (bankable study)/tendering, before the procurement and operation stages. The funding of these stages must be mainly raised by a developer. ii. The evaluation of the financial, environmental, regulatory and legal aspects of hydropower development are very important and time-consuming particularly at the feasibility stage of the whole process. iii. Certain types of small-scale hydropower as listed under categories ‘Gravity low and high head water carrier systems’ and ‘Dam storage regulated head hydropower’ do not in principle require capital for the creation of the energy source as the source (typically its civil infrastructure) is already in existence (eg, a dam, pipeline, canal, tunnel, etc). Table 8.3: Typical hydroelectric installation project main components and chacteristics

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SCENARIO FOR IMMEDIATE DEVELOPMENT OF HYDROELECTRICITY IN SA The Integrated Resource Plan (IRP) 2010 process called for contribution from all Renewable Energy sectors on how Renewable Energy resources and technologies, including conventional hydropower, can be developed and implemented over the next 30 years in South Africa. For the purposes of the revised IRP 2010 the following scenario for the development of conventional (green) hydropower in South Africa has been concluded. At present the installed capacity of conventional (green) hydropower in SA stands at 700 MW. It is envisaged that this capacity can be increased by 300 MW by the year 2016. Another 400 MW of capacity is anticipated to be installed before 2020. It is further estimated that there is a firm potential of some 1 100 MW available for the development of conventional (green) hydropower before 2030. The realistic price per one MW of hydroelectricity installed fluctuates in South Africa between R15m and R25m, depending on the type, size and location of the hydroelectric installation if attached to existing civil infrastructure.

BENEFITS TO SOUTH AFRICAN ECONOMY Appropriate and accelerated development of hydroelectricity generated from augmented hydraulic structures (eg, dams, canals, gravity pipelines, etc) situated around South Africa (some 1200 dams can be investigated) will enable optimal use of available water and promote Public Private Partnership (PPP) arrangements between private and public sectors. The development of even a portion of estimated hydropower potential as illustrated in Table 3 will bring several ancillary benefits to the SA economy. • optimal use of existing and newly developed water and energy infrastructure and resources, energy generated is easily synchronised with the national grid • regionally generated hydroelectricity will alleviate demand on the national grid and meet fluctuations in energy demand • provide indispensable back-up for other energy sources, particularly the intermittent energy source of wind and solar • mitigation of the oil and coal consumption thus reducing the carbon emissions • increase employment and production in the auxiliary civil, mechanical and electrical industries • increase manifestation of development opportunities for agricultural sector particularly in the regional context • lower water consumption associated with electricity coal-based generation • improve revenues to remote local communities as most hydropower resources are primarily in reach of such communities

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PROFILE

Energy Partners Energy Partners support business owners to achieve maximum energy efficiency through: • Establishing the right strategic & operational objectives to enable a holistic energy efficiency solution design • Facilitating the design & implementation of the energy efficiency solution by working with global specialists • Sourcing the least expensive finance to mobilize implementation of the energy efficiency solution • Claiming all incentives to further improve project ROI • Providing ongoing efficiency monitoring and control to ensure savings are sustained and improved upon Contact information: T - +27 21 918 4980 F - +27 21 914 7213 E - info@energypartners.co.za www.energypartners.co.za


CHAPTER 08 : RENEWABLE ENERGY: HYDROPOWER

‘BEST TO DEVELOP’ SMALL-SCALE HYDROELECTRIC CAPACITY BEFORE 2016 Taking in consideration present circumstances in demand for energy from the renewable energy resources (ie, availability of potential incentives as a subsidy and carbon credits, favorable tariffs, low awareness about RE project benefits, stringent institutional/environmental requirements, etc) the ‘best to develop’ feasible hydroelectricity opportunities by various stakeholders are envisaged as follows: Assessed and proposed hydroelectricity package

Capacity potential to install (MW)

Estimated generation output (MWh/a)

Capital cost - 2009 estimates (R million -indicative only)

Key stakeholders hydroelectric capacity development

(i) Inter-basin water transfers

38

272 000

304

DWA (now DWEA), ESKOM, TCTA, etc.

(ii) Hydro sets to existing dams

105

452 000

840

IPPs, DWA, ESKOM, Water Boards, Metros

(iii) Upgrading/ refurbishment

16

70 100

96

IPPs, DWA, ESKOM, Local Gov. Authorities

(iv) Gravity water carrier systems

88

268 400

792

IPPs, DWA, mines, Local Gov. Authorities

(v) “Greenfield” sites (<10MW)

25

150 000

313

IPPs, DWA, ESKOM, Local Gov. Authorities

Total for all types of SSHE

272

1 212 500

2 345

All developers listed above

Table 8.4: Recommended small-scale hydroelectricity development scenario as per type of development

CONCLUSION The small-scale hydropower sector being a rather limited energy generation component in South Africa’s energy generation sector can claim the start of electricity delivery more than 100 years ago. Other types of energy generation technologies superseded hydropower in South Africa for almost five decades. On account of an intensive search for the renewable energy resources due to the thread of accelerated global warming, the technology of hydropower in energy generation is going through its THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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PROFILE

Amalembe Construction and Projects Amalembe Construction and Projects is a close corporation that is in the Civil construction and fuel industry in South Africa. Its core business is to supply fuel to retailers and offer construction services. The founders of the enterprise have a wealth of experience in the many facets of the industry. Our Vision To become the leading fuel supplier of choice offering innovative customer tailored solutions. Mission Statement To focus on continually developing a corporate image that is consistent with market demands, ethics, standards and trends. To provide committed and professional management, motivated and customer focused staff that serve the company’s aspirations and exceed customers’ needs. Services We offer a complete range of lubricants for a broad spectrum of clients We also offer construction and security services. Our wide service portfolio includes: • Lubricants • Petrol • Diesel • Paraffin • Jet fuel • Civil engineering • Plumbing Amalembe Construction and Projects commits itself to uncompromised service delivery that is within the industry standards. Our commitment to quality is emphasized by our relentless pursuit to amass knowledge and experience through training and staff development in matters relating to the fuel industry expectations. Contact Details 2062 Moloto Village, Block 10, KwaMhlanga, 1022 P.O. Box 232, Pieterskraal A, Madlayedwa, 0460 Telephone: 083 506 1364 Fax: 086 573 0143 www.amalembe.co.za


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reviewal worldwide. Numerous incentives are created by governments, particularly in the developed countries, including the South African Government, to include hydropower in the basket of renewable energy technologies to strengthen the process of mitigating green house gas emissions. In South Africa, Government funding to the R&D projects and establishment of the REFIT rates for promoting the renewable energy technologies implementation, including the hydropower technology, are indicating the way forward to those interested and dedicated to hydropower technology implementation and operation. REFERENCES Baseline study on hydropower in South Africa. Department of Minerals and Energy. Pretoria. RSA. September 2002. Guide on how to develop a small hydropower plant. Info from the European Small Hydro Association (ESHA – 2009) Electricity in households and micro-enterprises. By J. Clancy and L. Redeby. Energy and Environment Technology Source Books. Intermediate Technology Publications. The Netherlands. 2000. Status of the small-scale hydroelectric (SSHE) development in South Africa. By B. Barta, March 2010. Email: bartab@iafrica.com

Additional Notes from Reviewer: Hydroplants – Capacity In South Africa there are some 14 operational small hydroplants delivering some 42MW, with another 9 installed but presently not operational with some 8.6MW of capacity. Rand Water has plans for about 30MW around Johannesburg. The Teebus tunnel could probably yield 7MW and the design is ready. Readers of this article are advised to explore additional readings that deal with: a) The Bethlehem Hydroelectric Scheme b) Energy Recovery on South African Mines where some 88MW of recuperation is already taking place. c) Highly seasonal flows and design of installations, as well as problems experienced by Collywobbles. d) The Inga project and its various phases (some featured in IRP2010) e) The role of small-scale hydro in energising rural areas (e.g. Uganda) f ) Feed-in tariffs in the context of the latest REFITs.

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Working for Energy Programme Working for Energy is a new programme under the South African Department of Energy implemented by the South African National Energy Research Institute (SANERI). The basic principle of the programme is to develop and implement labour intensive energy related issues with the focus on interventions aimed at demand side management and the provision of electricity from bio-mass based resources. South Africa’s demand for energy, and more specifically electricity, is growing faster than supply capability. The generation reserve margins are often under threat, costing the country billions of Rands, threatening economic growth and compromising trade competitiveness while worsening the plight of the poor, damaging our environment and negatively affecting public confidence. While efforts to improve efficiency of use or energy affordance have not been overly successful, the Working for Energy Programme is pursuing and aggressively fostering as a high priority, a more rigorous approach to Demand Side Management, Energy Use Avoidance and Renewable Energy Technology. Alternate energy systems and co-generation projects are being sought to meet demand as well as empower local businesses, people and communities to bring about an energy-secure future through self-reliance. The Renewable Energy Sector and Demand Side Management hold huge potential for job creation, local economic growth and sustainable development across all sectors of society and can bridge the sustainable energy gap in the rural communities. This is firmly in line with the New Growth Plan, a Government Strategy Framework developed by the Department of Economic Development. Through the development and installation of hybrid technology solutions the WFE Programme seeks to build renewable energy and energy management capacity throughout South Africa and the region using embedded distributed generation and energy management practices to :• • • • •

Reduce energy poverty; Create sustainable jobs ; Increase knowledge transfer and skills development; Provide a catalyst for wealth creation and local economic development; and Enhance the opportunities for industrial development, manufacturing capabilities and direct foreign investment.

The scope of activities under the provision for renewable energy is keyed around labour intensive projects related to: • • • • •

Biomass to Energy from invasive alien plants and bush encroachment; Biomass to Energy from agricultural waste; Waste to Energy from municipal solid waste or sewage treatment, Charcoal derived from invasive alien plants and grasses; Biofuels development and implementation in rural applications;


PROFILE • • • •

Mini-Grid Hybrid and Smart Grid Systems; Solar power (Concentrated PV) Wind Generation; Mini hydro systems and Run of River schemes; and • Alternative fuel sources for low cost housing, space heating, cooking and water heating. The second focus group is on energy management planning and a methodology framework for social facilities, homes and SMME businesses. The programme will look into thermal efficiency through the installation of Biomass ceilings and other materials in poor or rural households as well as energy poverty eradication by means of sustainable feedstock provisions and alternative fuel sources for low cost housing, space heating, cooking and water heating. Aligned and embedded within the project scope of all activities within WFE are the intrinsic values of skills training and knowledge transfer, especially within the youth sector and rural areas to enable members of these communities to gain sustainable job skills and employment opportunities. To this end, a great deal of emphasis is placed on the up-skilling of community representation from the youth sector and youth organizations and NGO’s. For more information, visit www.wfe.org.za or follow us on Twitter @W4Energy

Derek Batte - National Programme Leader: Working for Energy Programme | Senior Manager: SANERI (South African National Energy Research Institute) Derek’s portfolio in the renewable and energy efficiency domain entails being actively involved with corporate bodies, committees, international working groups and knowledge clusters. He is supported by a dynamic team who further enrich the programme with their expertise and commitment.


PROFILE

Light Empowers Design LED Lighting South Africa’s energy efficient Down Lights cater for a variety of home, retail, corporate, hospitality and industrial applications. LED Lighting SA’s new range of performance down lights can be used for functional light in offices, hotel rooms, and passage ways, dining areas and entrance lobbies and come in a wide range of intensities, colours and optical angles. The DL6 is an 8.4 Watt down light that has been designed to replace the energy intensive 50 Watt halogen bulb. The DL6 exceeds the light output of the Halogen and is available in an array of colour temperatures such as Cool White (6000K), Natural White (4200K) and Warm White (3000K). The DL15 is a 24 Watt down light intended for more intense lighting solutions and general retail lighting with a luminous flux of 1280 for natural white. These down lights are also available in different colour temperatures. Both these products are available in different lens angles for different applications. These lights have been successfully installed in Fast food outlets, office blocks and hotels with excellent aesthetic results as well as large power savings.

Sustainable lighting systems for architectural applications

The latest trends in architectural lighting use light to emphasize architectural features. These lighting effects take different forms. The more architectural elements a building has to offer the greater scope there is for lighting features. The more lighting features a space has, the more energy it consumes with associated product or globe maintenance. LED technology is the ideal candidate for an application with a multitude of lighting effects, limited access and concern for overall energy consumption and associated running costs. One of the most versatile and popular LED products is the ‘LED Line’. This 12mm tube section can be made up in custom lengths and colours to suit bulkheads, recesses, stair cavity, balustrade, glass counter or shelf, lift, shower, corridor and bar display. Its slim profile, semiflexibility and simple installation make it an ideal choice for the built environment.

Sleek streamline design creates seamless lighting effects.

A key aspect of LED technology is their ability to adapt to diverse lighting applications. Being streamlined, one can skilfully light and apply them in ways which aren’t possible with other


PROFILE lighting technologies. The Vodacom Satellite dish is an excellent example of this.

Sustainable lighting systems for retail applications.

Retailers today have serious challenges with the large rise in energy costs and the need to become “green”. By using power saving LED products, retailers can reduce a huge part of their electrical bills. LED lighting SA has focused a lot of their development within the retail arena.

Functional lighting

LED Lighting SA retail products include various down lights, vertical freezer lights, horizontal fridge shelf lights, under shelf lights and Signage. LEDs have the following advantages over the old light sources. • • • • • •

Power saving Optics design reduces light spill Lower lifetime costing Long lifetime with less maintenance Colour CRI

LED’s have a large initial cost but their lifetime costs (cumulative operational costs) are a lot lower with some break even points being one year. LED Lighting SA will help their customers with these calculations and get the necessary funding from Eskom.

Long life span, less maintenance and replacement costs.


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EXPANDING KNOWLEDGE OF LED TECHNOLOGY Phil Hammond Technical Director Soler Energy

INTRODUCTION We are all familiar with the conventional incandescent, fluorescent and high intensity discharge (HID) light sources and luminaires. There is a well-established and abundant database of these products in the marketplace and among architects, consulting engineers and lighting professionals. Considerable practical experience in the application of these products has been built up by aforementioned professionals, and the interior decorating fraternity. This has led to professional mindsets, which are now being challenged by LED technology. The development of LED technology has been accelerated by the need to provide good lighting, but using less current. (World Energy crisis). There is an enormous range of LED products from a vast number of manufacturers worldwide. It is nothing more than a minefield for architects, consulting engineers and lighting professionals to navigate through in order to find suitable products. Spare a moment for the consumer. How does the unsuspecting consumer determine which is poor, indifferent and high quality product? This article will endeavour to provide some guidance to this exciting technology.

A BRIEF INTRODUCTION TO LED LIGHTING Light emitting diodes (LEDs) are not by any means new, in fact, they have been available in the form of numeric displays and indicator lights since the 1970s. The technology has advanced considerably particularly in the past decade. LEDs made their appearance in many forms of lighting products designed for many applications including traffic lights, exit signs, accent lighting, signage, cove lighting, outdoor lighting and indoor lighting including down lighting. Many readers will probably remember the early LED products. The lighting quality was questionable and was often very blue in colour and having low luminosity. This has in many cases left architects, engineers and lighting professionals with a prejudiced memory. This has also meant that they have not kept pace with the developments in LED technology.

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What is a LED? LEDs are solid state semiconductor devices. Illumination is achieved when the semiconductor crystal is excited to produce visible light in a desired colour or wavelength range. They are typically small, about 5mm in size. When the LED crystal is excited, the power supply converts the AC voltage into sufficient DC voltage which is applied across the semiconductor crystal. The electrons (negative charge carriers [N]) in the diode’s electron transport layer and holes (positive charge carriers[P]) in the diode’s hole transport layer combine at the P-N junction where the excess energy is converted into light. The LED is sealed into a clear or diffused lens so that a range of angular distribution patterns of light can be produced.

Figure 9.1: Simplified P-N Junction Diagram

The colour of the light produced by the LED is dependent on the chemical composition of the material used to coat the LED which is excited. LEDs can be manufactured to produce a wide range of colours including cool white, white, deep blue, blue, green, yellow, amber, orange, red, bright red and deep red. In fact, it is now even possible to produce LEDs which will provide “near” ultra-violet light. This ability to produce specific colours within precise wavelengths, has made it possible to provide grow lights which can be manufactured in the correct colours (blue and red) in the correct wave lengths for use as grow lights. These grow lights promote photosynthesis in the plants which can result in faster growth and higher plant yield. LEDs are low-voltage, low current devices and efficient light sources. In the past, efficacy (lumens per watt) was always a problem. The development of new materials which are far superior to the 158

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materials which were previously used, have led - and in fact continue to lead - to high efficacy levels. Today it is not uncommon for LED products to have efficacy levels from 50lm/w up to 120lm/w. Steve Johnson, the group leader of lighting research for the Lawrence Berkeley National Laboratory stated: “It is not unrealistic to expect the efficacy of solid state sources to achieve 150 – 200lm/w in the coming decades.” The poor colour quality of the early LED down lights lingers long in the minds of many professional. LED lighting has made huge advances and the colour quality of the new generation products manufactured by the leading LED companies in the world is truly excellent. Professionals need to acquaint themselves with the products of these manufacturers to have their doubts allayed. The production of white light in LEDs was made possible with the use of gallium nitride (inGaN) as a semiconductor. The two main types of LED chip are aluminium gallium indium phosphide (AlGaInP or AlInGaP) alloys used for red, orange and yellow LEDs and indium gallium nitride (InGaN) alloys used for green, blue and white LEDs. Changes in the mix of these alloys will change the colour of the emitted light. The use of these materials made it possible to manufacture LEDs with peak wavelengths at any part of the visible light spectrum. White light LEDs are blue LEDs with phosphor added to convert some of the emission to yellow, the resulting light appearing to have a slight bluish-white colour. Therefore white LEDs are a cool light source with a spectrum of correlated colour temperatures of 4 000K to 7 000K. The development of white LEDs occurred in the mid-1990s, therefore readers should appreciate that there has been considerable advancement since then and that modern day LEDs produce very acceptable white light which is necessary to meet the stringent lighting design criteria demanded by lighting professionals worldwide. The crystals forming early LED junctions were grown on light absorbing substrate material. As LED technology has evolved, transparent substrate materials have been used and by optimising the

Figure 9.2: Improved design of LEDs to improve efficiency The shaded areas indicate the substrates. Early LEDs used light-absorbing substrates (left); later, transparent substrates were developed to permit light to be emitted in additional directions (centre); more recent shaping of the semiconducting elements (right) resulted in improved efficiency. THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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shape of the semiconductor element have enabled the amount of light which leaves the device to be increased. The shaded areas indicate the substrates. Early LEDs used light-absorbing substrates (left); later, transparent substrates were developed to permit light to be emitted in additional directions (centre); more recent shaping of the semiconducting elements (right) resulted in improved efficiency.

The electrical characteristics of LEDs Individual LEDs are low voltage devices and require only 2 to 4 volts of direct current with a range of 1~50 milliamperes. An illumination grade of LED requires the same low voltage but higher operating currents usually several hundred milliamperes. LEDs also require a specific polarity. If voltage is applied in reverse, the LED can be destroyed. The usual acceptable reverse polarity is 5 volts. It therefore follows that it is vital to control the voltage-current relationship in an illumination LED. Slight changes in voltage can result in very large changes in current. It is vital to remember that light output is directly proportional to its current. If voltages vary, light output will be inconsistent and this will be totally unacceptable in any lighting design environment. If the voltage and consequent current continues to vary, the life of the LED will be considerably shortened.

LED Driver The term “driver� is often the cause of misunderstanding. It performs a function similar to a ballast for discharge lamps. It is a solid state electronic device to control the current flowing through the LED. LED manufacturers make statements about the life of the LED used. There is no way to actually measure what the life of the LED will be, Figure 9.3 : Forward voltage and current relationship for illumination LEDs The solid line represents normal operating parameters while the dotted line is extrapolated

although it is reasonable to state that the LED itself will last for a very long time BUT it is actually the quality of the driver or driver

design which will finally determine the life. Simply stated, a high quality LED may end up failing because a poor quality driver was manufactured using poor quality electronic components. However, the leading manufacturers of top quality LED products go to extreme lengths to ensure that the driver design and all componentry are of the very best quality in the world.

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It therefore follows that lighting professionals need to keep abreast with LED technology developments and that they maintain a database of the leading LED manufacturers.

Dimming of LEDs Lighting professionals will always be able to provide their clients with the best and most applicable lighting designs according to the application. One of the needs lighting professionals frequently have is for a dimming capability. It then follows – are LEDs dimmable? Generally, commercially available LEDs are not dimmable; however, due to the fact that the forward current is proportional to the light output, dimming can be achieved by reducing the forward current. By virtue of the fact that LEDs can be rapidly switched on and off without any harmful effects, dimming can be achieved using the method known as pulse width modulation. An adjustment to the duration of the pulse and the time between pulses results in the apparent intensity of the LED to be dimmed. This is achieved with a high frequency of modulations (hundreds of thousands of modulations per second). In this way, the eye only sees the light continuously lit as it dims. If the modulations per second are too low, the eye will see flickering as the LED is dimmed. This dimming effect can be achieved using direct digital control. There is often concern that the changes in the current when dimming LED lamps which affects the junction temperature (Tj) can result in spectral power distribution shift or colour shift. Modern day quality LED products are not susceptible to colour change. Cheaper quality LED products are susceptible to a variety of changes to dimming and many other environmental changes. There is also concern that dimming will decrease lamp life. This is sometimes the case for conventional lighting products. However it is not the case for LED products.

The effect of temperature on LEDs LED life and light output degradation are determined by junction temperature with higher temperatures resulting in reduced light output and life. It is important to remember that all data for lighting products is provided using the ambient temperature (Ta) of 25⁰C. Therefore if the ambient temperature increases significantly the light output and life of the LED could be adversely affected. It is fact that when LED lamps are fitted to closed or enclosed luminaires with ineffective ventilation or cooling, the light output will degrade and life of the LED lamp will be shortened. If junction temperature is so important, what is the ideal junction temperature? The result of studies has shown that the best Tj is between 45⁰C~65⁰C. Leading manufacturers achieve these junction temperatures in their designs but the majority of manufacturers achieve junction temperatures from 65⁰C to 110⁰C which is pushing the limits and is the reason in many cases why manufacturers state

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Figure 9.4: Relative light output of LEDs as a function of junction temperature (Tj) Data is normalised to 100% at a junction temperature of 25⁰C (Ta)

that the life expectancy of their products are from 20 000hrs to 30 000hrs which is well below the life expectancy of top quality LED products.

Thermal Management The other vital requirement for any LED is thermal management. The life expectancy of a LED is determined by the quality of the LED chip, junction temperature and thermal management. So far we have addressed the quality of the LED chip and the junction temperature. Thermal management is often simply referred to as heat sinking. This is perhaps an over-simplification. Heat sinking is contained in most driver designs. However, thermal management goes beyond the internal heat sinking of the driver. The overall design of the LED product should be aimed at promoting the best thermal management in order to dissipate any heat generated via the junction temperature away from the LED chip in order to achieve long life expectancy. Thermal management is the main contributor which has led to LEDs being referred to as “cool” technology. The other reason for LEDs being referred to as “cool” lights is because there is no ultra-violet or infra-red light in LED light output. Efficient thermal management reduces radiated heat and it is this feature which is known to have a positive effect in reducing ambient temperatures in indoor environments which reduces demands on air conditioning systems which in turn results in reduced energy consumption.

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Figure 9.5: Examples of excellent thermal management

Other features of LEDs Lighting professionals are able to select the perfect lamp and beam angle for any application. LED lamps are now available in a range of beam angles from 10â ° to 120â ° with a full range of intermediate beam angles. Similarly, a range of colours is available to suit any particular application or architectural requirement. The range of lamps and luminaires which are now available from manufacturers will meet the stringent requirements of lighting professionals and their clients. Perception that LEDs are inherently directional Manufacturers of earlier LEDs made use of epoxy optical lenses in order to focus the available light forward. High quality LED lamps now make use of hardened optical glass lenses to provide accurate beam angles. Other top quality LED products make full use of the fact that a LED can emit light in any direction which enables the manufacture to use sophisticated reflector technology in order to achieve specific light distribution appropriate for the particular product type such as for flood lights and street lights.

LED Life Expectancy There is no standard industry life expectancy for a LED. The lamp life definition for traditional light sources is the time at which 50% of the test sample has burned out. Quality LEDs generally do not fail by burning out but will slowly reduce in light output over time. As solid state devices they will continue to operate even after 100 000hrs continuing to use electrical power even if they produce little useful light. In a comparison of lumen maintenance near the end of the rated life for traditional light sources shows that with the exception of metal halide lamps, they still have 90% of their initial light output by the time that they have operated after 10 000hrs. In recent time, quality LEDs maintain their light output at 90% of their initial light output at 20 000hrs. This is an indication of the constant improvement and advancement in LED technology. In a number of instances this improvement is directly attributable to the advancements made in thermal management.

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Leading manufacturers of quality LED products openly state that their products will maintain 70% of the initial light output at the life expectancy point eg 50 000hrs. Nevertheless, note that there is no definitive lifetime rating system and only time will tell! Lighting professionals should be alert to exaggerated claims of high efficacy. Some manufacturers claim high efficacy such as 140lm/w. Investigation has revealed that these manufacturers whose normal product range are below average performers, are now chasing power driver development in order to compete with leading manufacturers of quality LED products which have high performance qualities as well. This results in these lower quality products being “over-driven” resulting in higher junction temperatures without any additional thermal management engineering. An unsuspecting lighting professional or end user will be faced with disappointment when rapid lumen depreciation and life expectance are the result.

CERTIFICATION It is important for lighting professionals to insist that any company who offers LED products to them is able to produce authentic international certification. While any certification will not necessarily be a measure of a LED product’s quality or performance, you will at least have the peace of mind that the product meets international standards and safety requirements. This is essential due to the fact that there are no international standards for LED products. In America the Department of Energy has endeavoured to establish a standard. However, the continuous advancements in LED technology and products have already now rendered the “old standards” out of date. In South Africa, Eskom has taken the lead to create a set of minimum standards which products must meet in order to be approved for use in its subsidy programmes. The South African National Standards authority has yet to develop standards for LED technology. Lighting professionals should be advised that there are some unethical foreign manufacturers who fake certification. This makes it an onerous task for lighting professionals to check the credentials of manufacturers.

WARRANTIES Warranties vary from one year to five years and longer. Be on your guard! Check the wording and validity of the warranty to ensure that it is internationally applicable. Ensure that each individual LED product offered to you bears a serial number. The serial number is then traceable to the full manufacturing process. Product warranties vary from two years to five years on LEDs and drivers and 10 years on fittings. Some manufacturers offer a USD2 million product liability insurance cover which speaks volumes for the quality of and confidence in the product.

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PROFILE

ESCOTEK GROUP ESCOTEK GROUP OPERATES IN THE ENERGY MARKET SECTOR AND HAS COMPLETED NUMEROUS PROJECTS TO THE VALUE OF R250 MILLION These market sectors include:

1. Residential Load Management System (RLMS) • This market sector includes performing a feasibility study of the municipal areas which will determine the number of Hot Water Cylinders (HWC), the average size (kW) of these HWC’s, the shiftable load and the average monetary saving for the Municipality. • Once the Project has been approved by Eskom DSM or any other Financial Institution, will ESCOTEK procure and install the approved equipment. The option then exists for the Municipality to enter into an agreement with ESCOTEK to operate and maintain the system on a shared savings basis for a pre-determined time period. • ESCOTEK GROUP has developed a Ripple receiver that is compatible with any existing Ripple receiver Protocol 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)

2. Solar Water Heaters ESCOTEK ENTERPRISES is in the process to execute a roll out program of 200 000 solar water heaters covering all the RDP type houses in Ekurhuleni Metro. This project is one of many that we are involved in. All products used are SABS approved.

3. Street Light supply and maintenance ESCOTEK together with Electroweb Electronics are launching a new range of luminaries making use of high quality LED lamps. The street light uses 80% less energy than that of a normal 125Watt street light with more lumens on the ground. This company will also provide the maintenance functions for the Municipalities on a 3 year contract period.

Contact Information: 430 Muskejaat Street, Waterkloof Ridge Ext 2, Pretoria 0181, Gauteng, South Africa Telephone: +27 12 347 7034 Facsimile: +27 12 347 5352 Web page: www.escotek.co.za Email: alwyn@escotek.co.za, marketing@escotek.co.za


CHAPTER 09: EXPANDING KNOWLEDGE OF LED TECHNOLOGY

EXPANDING KNOWLEDGE OF LED TECHNOLOGY Architects, consulting engineers and lighting professionals owe it to themselves - and more importantly to their clients - to ensure that they keep up to date with developments in LED technology and the product ranges which are available in South Africa. This can be achieved by attending workshops offered by leading distributors of LED products in South Africa. Subscribe to authoritative publications as well as newsletters from distributors. Regular workshops for architects, consulting engineers and lighting professionals with CPD accreditation are always on offer. New LED product launches, new distributor showrooms with LED products offered are held continuously. It has been predicted that LED lighting will become the mainstay of all lighting in use by 2020.

CONCLUSION Eskom has recognised that LED lighting is extremely energy efficient and it can make a meaningful difference to Eskom’s ability to “keep the lights on” and contribute to overall reductions in demand. If LED lighting continues to replace traditional lighting, substantial energy savings will result for Eskom but more importantly the end user will achieve substantial reductions in energy consumption and the cost thereof. As tariff increases bite with each passing year, it will become more important for users to reduce the costs of energy. Using LED products offers the only solution. Innovative first cost payback financial models are available, showing both Rand-and-Cent electricity consumption savings, as well as Tonnes per Annum carbon footprint reductions. These payback models generally should include a lifecycle cost analysis to offset the increased capital outlay due to LEDs. As most commercial offices pay up to 30% of their electricity bills towards lighting, LEDs offer a “lowfruit” opportunity to reduce this cost to 3 to 5% of the present billed amount. LED lighting is the lighting of the future. It is for this reason that any professional who is involved in lighting no matter to what extent, has no alternative but to rise up to the challenge and make it one of their priority tasks to do all within their ability to learn as much as possible about this most exciting technology.

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PROFILE

Fort Hare Institute of Technology Fort Hare Institute of Technology is a hub within which state-of-art expertise and infrastructure are housed to support the rest of the University of Fort Hare, industry, neighbouring institutions and local communities. It was established in 1999 to promote innovation and research excellence in strategically identified focus areas and produce applied scientists with the necessary skills required to participate and compete in the global economic market. FHIT aspires to establish education, training, research and development around areas indicated below. Renewable Energy FHIT currently conducts research on photovoltaic systems and solar cells, photochemical solar cells, biomass gasification and passive solar heating in buildings. Advanced Engineered Materials The programmes under this focus area are advanced engineered materials employing microwave technology, low-cost energy efficient housing and passive and active solar designs. Information and Communication Technology (ICT) and power engineering The programmes under this focus area include weather radar, electronic learning, data acquisition, software development, numerical modeling, wireless power transmission and computational simulation and analysis. FHIT offers research at postgraduate level and the students involved at FHIT activities are registered in other relevant departments such as Physics and chemistry within the University of Fort Hare. Collaborative projects have resulted in a number of students registered in other Universities with South Africa involved in FHIT research activities. Career opportunities A wide range of career opportunities are available to FHIT students, these include careers in physics and chemistry. Examples of these careers are: • • • • • • •

Engineering Energy management Energy efficiency Information and communication systems Research and development Teaching and training Energy conversion and transmission

For more information on these programs, visit www.fhit/ufh.ac.za. For more information regarding the application process and bursaries available, write to Professor Meyer at emeyer@ufh.ac.za or call +27406022086 or fax your request to +27406530665.


CHAPTER 09: EXPANDING KNOWLEDGE OF LED TECHNOLOGY

DEFINITIONS LED: Light Emitting Diode Efficacy: Lumens illumination per Watt electricity consumption Driver: Electronic componentry to provide regulated current to LED terminals Lumen depreciation: Light intensity reduction over time when LED is in use REFERENCES: Lighting Answers: LED Lighting Systems LED Luminaire Reliability : US Department of Energy Method of Measuring and Specifying Colour Rendering Properties of Light: Publication 13.3 Vienna : Commission Internationale de l’Eclairage Optical Metrology for LEDs and Solid State Lighting : Ohno, Yoshi (2006)

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PROFILE

ENERIX Enerix is a young, dynamic black owned and managed Energy Solutions Company established to offer cutting edge energy solutions to industry. Our strength lies in the management team as well as the extensive networks of strategic partners we collaborate with. Energy has become a global problem requiring creative global solutions – We need to re-think and re-design the way we utilize energy. Enerix identify areas for development and improvement and provide customers with continued sustainable resource planning. Enerix looks at environmental management, energy management and asset management as our core solution. Within this process we address corporate social responsibility and environmental compliance.

Our Key Objectives:

•Reduce clients’ carbon footprint •Provide energy compliance based on our regulator• Cost reduction• Social responsibility• Sustainability

Services:

Electrical Solutions Enerix provides a range of electrical solutions to the government and corporate market. Our core focus and expertise include; • • • •

Power Audits, Electrical reticulation and Equipment installation. Post installation maintenance. Power supply products like UPS’s and Generators.

Green Management Enerix utilises a range of Software as a Service products to provide real-time energy data analysis across our client base and customized to our clients needs. Our core focus and expertise include; • • • • •

Green Architecture Energy efficiency Water efficiency Operations and maintenance optimization Waste reduction

Green management also seeks to reduce waste of energy, water and materials used during construction.

Contact Details

Tel: +27 011 024 5111, Fax: +27 86 653 8839 Email: niven.soman@enerix.co.za www.enerix.co.za


PROFILE

UNIVERSITY OF PRETORIA NATIONAL HUB FOR THE POSTGRADUATE PROGRAMME IN ENERGY EFFICIENCY (EE) & DEMAND SIDE MANAGEMENT (DSM) - EE & DSM Hub The University of Pretoria has been awarded the privilege and responsibility to host the South African National Hub for the Postgraduate Programme in Energy Efficiency and Demand Side Management by the South African National Energy Research Institute (SANERI). The postgraduate research programmes are aimed at attracting a large number of qualifying undergraduates from across the country, as well as an increasingly strong contingent of international students. The training programme of the Hub consists of coursework based and research based Master’s and Ph.D. degrees in EEDSM related research topics. Seven short courses in EEDSM have also been developed for industrial engineers and managers since 2008. The Energy optimisation research group is the core research group of the Hub, and its staff members are from the Department of Electrical, Electronic and Computer Engineering. All the 27 labs from the Department of Electrical, Electronic and Computer Engineering are able to be used. This includes computer labs, network labs, control labs, control and simulation platforms, electromagnetic labs, bio-engineering labs, signal processing labs, machine/energy labs, photonic and lighting labs, project labs, etc. Analytic techniques from control engineering and mathematical optimisation are the main tools of this energy optimisation group in the quantitative study of energy efficiency related topics such as power system scheduling, power system efficiency with alternative energy resources and cogeneration, industrial efficiency, commercial building efficiency, residential house efficiency, solar thermal efficiency, etc. The study extends also to demand side management schemes, smart load control and computer networks, and energy policy and electricity market. • Energy efficiency component classification and applications in energy audit; • Industrial energy system optimisation (conveyor belt system power calculation and optimal scheduling, coal mine energy management, gold mine energy management, pumping system power optimisation, pumping system optimal scheduling, etc) • Residential energy system optimisation (geyser water stratification study, electric geyser load optimal control, solar geyser optimal control, non-intrusive measurement of residential load, swimming pool energy optimisation, etc); • Commercial energy optimisation (energy audit of commercial buildings); • Building energy optimisation (air conditioning system energy calculation, temperature and humidity control, heat pump water heater application, etc); • Electricity market (uniform pricing and pay as bid, feed-in tariff, social welfare modeling and maximization, competitive electricity market under distributed generation, etc); • Transport efficiency (heavy-haul train energy optimisation and speed regulation); • Water efficiency (water dam system modeling and control); and • Control theoretical research with energy efficiency applications (Model Predictive Control approach to energy resource allocation, observer design for motor efficiency improvement, etc). • Wind energy system optimisation; • Solar thermal system energy optimisation;


PROFILE

• Measurement and verification of energy efficiency projects; and • Carbon emission reduction and trading in electricity market. The energy optimisation group have proposed a unified classification of energy efficiency in terms of performance, operation, equipment, and technology (POET). The classification has been successfully applied in the energy audit of conveyor belt systems, heavy haul trains, and commercial buildings, and is currently being considered as an overarching platform in revamping all governmental office blocks by the Department of Public Works. POET has also emerged as a valuable cornerstone in the more and more recognisable disciplinary investigation of a broad field of energy efficiency. It has envisaged that modelling and model-based optimisation constitute the core engineering basis, and cyber-physical systems facilitate the implementation infrastructure. These studies are moving into new frontiers: broadening to energy efficiency improvement arising from industrial, residential, and commercial sectors, and deepening into formation of concepts, methodologies and benchmarks. This line of research is moving firstly towards a concerted effort in consolidating the POET in its theoretical and curricular structure. More specific studies will be devoted to developing novel EE technology and equipment (eg, water heating, lighting, motion), and EE operation and performance of systems (eg, conveyor belts, pumping, winders). The M&V team of the University of Pretoria is rendering a service to ESKOM for its DSM projects. These M&V projects bring forward many interesting energy efficiency research problems which will be one of the Hub’s future key research topics. Carbon emission reduction through efficient energy management and the carbon trading in electricity market under the background of Kyoto Protocol and the Copenhagen 15 Climate Conference are another research focus that this group will work on. Existing research results on power generation economic dispatch and building energy audit will be combined with carbon reduction objectives to generate new results. Electricity market auction and competition models will also be applied to the carbon trading problems.

Partners:

•CNES (Centre of New Energy Systems, Department of Electrical, Electronic and Computer Engineering)•SANERI (South African National Energy Research Institute)•CEF (Central Energy Fund)•NEEA (National Energy Efficiency Agency)•Eskom•DOE/DST/DTI/DPW General enquiries can be made to: Professor X. Xia E-mail: xxia@up.ac.za Website: http://eehub.up.ac.za


PROFILE

SASDA The South African Supplier Development Agency (SASDA (Pty) Ltd) is a state-funded supplier development agency, reporting to the Department of Minerals and Energy. It has been established as a subsidiary of CEF (Pty) Ltd in accordance with the Ministerial Directive dated 20/05/2007. It is a company established under Section 21 of the Companies Act SASDA’s focus is on development of black suppliers and assisting national government in meeting the national goals of economic development and the improvement of quality of life of all citizens. SASDA is primarily concerned with increasing access to industry procurement opportunities by black suppliers. The original focus was procurement opportunities in the oil industry. When SASDA was incorporated into CEF, the Minister pronounced on an expanded role which includes State Owned Enterprises. Additional attention will be on the development of rural communities, people with disabilities, women and the youth. SASDA’s mandate is “to accelerate progress in the empowerment of black suppliers in the petroleum and State Owned Enterprises through increased access to industry procurement opportunities” In principle, this means SASDA’s mandated focus will be on promoting broad-based black economic empowerment. In executing SASDA’s mandate, the enterprise development unit focuses on the development of suppliers to ensure that they meet the petroleum industry requirements and standards. The development consist of, amongst others, • Technical development; • Commercial development; • Financial support, by accelerating access to financial assistance from financial institutions. SASDA has a target which is in line with the Liquid Fuels Charter; to accelerate the growth of HDSA suppliers to reach a minimum figure of 25% share of the total industry procurement spend.


PROFILE To reach this target a number of interventions must take place. These are, inter alia: • The most comprehensive industry supplier database has been established • The level of competence of all suppliers needs to be determined • Capacity building and support needs to be made available to those suppliers in need • Comprehensive vetting of suppliers needs to be put in place in order to determine skills levels and prevent fronting • SASDA must work closely with the industry and with suppliers as a conduit for opportunities. SASDA is placed in a unique position as the principal agent of transforming the procurement culture and practices of the oil industry. It is our mandate to diversify the pool of suppliers to the industry by introducing and developing suppliers from the designated groups, namely the HDSA groups. The development of new suppliers must be driven by individual company strategy. It is also the industry that will make these entities sustainable into the future. To that end, SASDA is currently working with individual oil companies on the following projects: • • • • • • •

Scaffolding. Tank De-sludging, Painting and Insulation. Information Technology Maintenance Engineering Air-conditioning Building Maintenance and Construction

To discuss business opportunities with SASDA, contact us on: Tel: +27 (0) 10 201 4700 Fax: +27 (0) 10 201 4820 CEF House, Block C, 152 Ann Crescent, Strathavon, Sandton, Johannesburg PO Box 786141, Sandown 2146


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CONCLUDING REMARKS Lauren Smith Acting Project Manager National Energy Efficiency Agency (NEEA)

Barry Bredenkamp General Operations Manager National Energy Efficiency Agency (NEEA)

This edition of The Sustainable Energy Handbook has attempted to address the key energy issues South Africa faces now and for the next five years. Chapters written by specially identified specialists within the industry give an overall idea on the state we find ourselves in from an energy point of view and offer solutions to address some of the challenges facing us in the short-to-medium term. Time and time again, within the residential sector, we have observed that ‘Green’ is seen as an option only viable for middle to upper income households, as this is where the greatest savings can be achieved, (and where households can sustain it). This raises the question of social responsibility. Surely, people within a lower income situation need the benefits associated with ‘energy and water savings’ more? However, and because of the small amount of savings accrued in this market sector, we tend to focus all our attention and resources in the middle and higher income consumer groups - seen as low-hanging fruit in balancing the supply and demand of critical resources in the country. This guide, however, accentuates the importance of social upliftment within all the themes covered, as major socio-economic benefits can be gained by keeping this balance. From a commercial and industrial point of view, energy efficiency is a term that is well known (and perhaps feared) by many a company due to the generally high initial capital investment required, to achieve the required savings specified within the pending Power Conservation Programme (PCP), and other possible legislation in this area. Luckily, Government has put in place many policies and procedures to incentivise the implementation of Energy Efficiency within the sectors that use the most energy. As noted by the Editor of the previous Handbook, change is always a scary thing. As a country, we must realise that in order for Energy Efficiency to truly make its mark in society, significant changes must be made. Although these changes may sometimes require a short-term ‘sacrifice’ (high initial capital investment, step-change in consumer behaviour, etc), the ultimate rewards for the environment, economy, consumers and others, far outweigh the negatives. We have limited time within in which to take action and that time is NOW! THE SUSTAINABLE ENERGY RESOURCE HANDBOOK, VOLUME 2

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PROFESSIONAL PROJECT PROFILE

Electrawinds Electrawinds was present at the birth of renewable energy in South Africa. In May 2010, the Belgian green energy producer completed the first commercial wind turbine in the new port of Coega, just outside Port Elizabeth. The project was completed in a record time of 104 days and since then has provided green energy for the electricity grid in the city of Port Elizabeth. The turbine is a VESTAS V90 with a 95-meter tower and a 90-meter rotor diameter. The turbine has a capacity of 1.8 MW which translates into an annual yield of 5,700,000 kWh and equals the annual electricity consumption for 1,700 families (based on an average annual consumption of 3,500 kWh). Emil Unger (Country Manager, South Africa) commented on the project, saying, “I am particularly proud that after almost four years of extensive work on this project we are finally seeing it come to life. Electrawinds also wants to give something back to the South African community. Right now, South Africa doesn’t have enough qualified staff in the sector of renewable energy and the scholarships being provided by Electrawinds will make an immense difference to the recipients. We will also be helping South Africa to reduce its carbon footprint.” Electrawinds will be managing the educational programme and has cooperated with CDC for the selection of the first three candidates. The students started an engineering programme in January 2010 at the Nelson Mandela Metropolitan University. For further specialisation, there is a postgraduate programme offered in Europe. Electrawinds has plans to extend the existing project in Port Elizabeth by a further 24 turbines. This would make it the first large-scale wind project in South Africa and the first fully fledged Electrawinds wind farm outside Europe. The company has submitted a planning permission application, but permission is unlikely to be granted before the end of 2011 at the earliest.


PROFESSIONAL PROJECT PROFILE

Exxaro and Energy Exxaro Resources is exploring opportunities in energy markets in addition to its carbon-related project pipeline. The group recognises that it is imperative to deal with energy in its broadest context to remain competitive and sustainable for the benefit of all stakeholders and is addressing energy and climate change issues under three broad banners: • Energy security (secure supply, reliability) • Economic productivity (growth in demand, price volatility) • Environmental impact (climate change, land and water use, carbon emissions) These issues are increasingly being incorporated as part of a long-term business strategy to ensure Exxaro remains optimally positioned to meet stakeholder expectations. A dual approach is being implemented in the group’s drive to become carbon neutral and at the same time thrive in a lowcarbon economy. 1. The energy and carbon management programme has been implemented at an operational level to deal with mitigation and adaptation issues. Exxaro’s carbon footprint represents almost 1% of South Africa’s total emissions and the group has committed to a 10% energy efficiency saving and carbon emissions reduction by 2012 by: • improving energy management systems and clarifying organisational roles and responsibilities in order to produce consistently auditable and verifiable statistics; • updating metering equipment to manage consumption and track and verify efficiency initiatives; • implementing projects to improve energy efficiency at current operations; • developing guidelines to establish and maintain an energy focus during all phases of a project life cycle, from concept to implementation. • developing a roadmap to become carbon neutral by: i. reducing the company’s carbon footprint by becoming more energy efficient, buying renewable electricity and bio-diesel, reducing consumption and using the carbon market; ii. offsetting remaining emissions through carbon market transactions and social responsibility investment and iii. developing renewable energy projects such as coal bed methane gas, solar, wind and cogeneration. Opportunities to supply independent power producers are also being examined. 2. The renewables sector offers a strong business case with a return on investment that meets the group’s investment criteria. A funding strategy that includes potential partners is being developed to service the energy growth pipeline.

Energy Projects

Exxaro Energy plans on becoming the leading cleaner energy Independent Power Producer (IPP) in Southern Africa and has developed a broad project portfolio to achieve this vision. With a combined installed capacity of between 1,152 MW and 2,352 MW by 2018, the portfolio includes cogeneration, coal–fired, coal bed methane (“CBM”) and renewable energies (wind and solar) with projects in South Africa and Botswana.

Wind Projects

Exxaro currently has two wind projects under development, namely the West Coast wind project and the Tsitsikamma Community Wind Farm project. The former will be going into bankability phase during


PROFESSIONAL PROJECT PROFILE the first quarter of 2011 and the latter will be entering pre-feasibility stage. Measurement studies are underway at both sites, with environmental studies at an advanced stage. The Tsitsikamma project is a community based project with the local community enjoying an equity stake during the full project life of approximately 20 years. The project is being co-developed with Eastern Cape company Watt Energy on a 75:25 basis. The West coast wind project is Exxaro owned and is being built on the the group’s Namakwa Sands property. All wind turbines installed globally by the end of the year 2009, contribute 340 TWh (Terawatthours) to the worldwide electricity supply, which represents 2% of the global electricity demand. This energy amount equals the electricity needs of Italy, an industrialised country with 60 million inhabitants and the seventh largest economy of the world. In some countries and regions wind has become one of the largest electricity sources, the highest shares being in: ◊ ◊ ◊ ◊

Denmark: 20%; Portugal: 15%; Spain: 14%; and Germany: 9%.


PROFESSIONAL PROJECT PROFILE All wind turbines installed in Africa in 2009 had a capacity of 770 Megawatt (0,5 % of the total worldwide capacity), of which 169 MW (Megawatt) were added in two countries, Egypt and Morocco. Although Africa was already on a comparatively low level, the growth rate of 28 % was again below the global average of 31,6 %. However, an increasing number of African governments are becoming aware of the potential of wind energy and have showed interest in setting up the necessary national frameworks. Industrial activity in the manufacture of wind turbines has started on the continent as well, mainly in Egypt. It can be expected that the creation of stable markets on the continent will have the potential to lead to the establishment of domestic wind industries in several African countries.

Solar studies

The earth’s atmosphere receives 174 000 000 GW of incoming solar radiation (also called insolation). There is enough energy in one hour to power the planet for a year. The challenge is storing that energy. The most successful methods identified to date for the conversion of sunlight into electricity are either direct using the photoelectric effect, referred to as photovoltaics (PV), or indirect, using concentrated solar power (CSP). CSP systems use mirrors and tracking systems to focus a large area of sunlight onto a small receiver. Technologies used for this include the parabolic trough (shown schematically above), power tower and concentrating linear fresnell technologies. In 2009 Exxaro embarked on a study of solar power potential in South Africa. This entailed the selection of potential sites (of which one was at Lephalale) with moderate to high insolation levels, water access and access to the national grid. Measurement stations were erected to measure surface insolation levels, which were later compared to satellite measurements. Once the insolation levels were known, potential vendors were engaged to calculate plant requirements, cost and power output to be achieved. Results of the study showed that a conventionally configured solar plant was not feasible in Lephalale (due to moderate insulation levels), but that changes to the configuration could result in an attractive business case. Alternative sites also yielded attractive business cases. A study to establish a 30MW PV plant at Lephalale was initiated but has been placed on hold for now. . However the installation of a PV plant at Exxaro headquarters in Pretoria is still being investigated. Contact information Roger Dyason Road, Pretoria West, 0183, South Africa PO Box 9229, Pretoria, 0001, South Africa Telephone 012 307 5000 Fax 012 323 3400 www.exxaro.com


PROFESSIONAL PROJECT PROFILE

Energy Cybernetics ACHIEVING ENERGY EFFICIENCY AND REDUCING ELECTRICITY COSTS. AT AVIS. It’s not easy to establish what areas of your business are using the most energy without implementing an effective measurement and verification system. That’s why Avis appointed energy management company, Energy Cybernetics, to accurately measure its energy use. Energy Cybernetics initially installed three meters and its energy management tool PowerWatch at the car rental company’s head office precinct in Isando, Johannesburg. Through this system a baseline audit was conducted, which provided a reference point from which to quantify energy management impacts. Armed with this information, Avis was then in a better position to implement various energy management and optimisation initiatives like motion sensors, timers, optimising lighting control and using the dryer systems in the car wash more efficiently. Avis conducted a night audit and by switching lights off, that had been left on, a saving of 14 kWh was recorded, which amounts to a saving of about R2,500-00 per month. PowerWatch also highlighted that Avis’ wash bay area, which is manned by a few staff, was using more energy than its office building which housed 300 employees due to the inefficient use of dryers in the wash bay area. By optimising the dryer usage, a saving of just over 1 000kWh per day is realised, depending on various external factors like seasonal changes. PowerWatch makes energy consumption visible through its performance measurement dashboard. At Avis this enabled positive staff behaviour change, as energy use can be viewed by all stakeholders that are part of the journey to energy excellence. In addition to making energy use visible, the system also provided Avis with data which was used to check the accuracy of its energy bills. Automatic notification is provided when certain userdefined thresholds are exceeded which places Avis in control of maintaining energy efficient practices. Energy Cybernetics, the leading energy optimisation company in


PROFESSIONAL PROJECT PROFILE Africa, delivers turnkey energy excellence projects based on a thorough understanding of the unique energy requirements of an organisation. Energy Cybernetics can help your company determine its optimal route to energy efficiency and reduced electricity costs by utilising various tools developed by them over the past 13 years, of which PowerWatch is just one. PowerWatch offers a good value vs cost ratio for performance tracking of energy optimisation opportunities and is the ideal tool to use when starting your company’s journey to energy excellence. ENERGY EXCELLENCE. DELIVERED. Contact information: Gustav Radloff, MD Cell: 083 441 1094 Email: gustav@energycybernetics.com Frikkie Malan, Business Development Manager & Sales Cell: 082 789 7238 Email: frikkie@energycybernetics.com LJ Grobler, Director Cell: 082 452 9279 Email: lj@energycybernetics.com


PROFESSIONAL PROJECT PROFILE

Integrated Biogas System at Three Crowns School Three Crowns Rural School in the Lady Frere district of the Eastern Cape has been the recent beneficiary of an integrated biogas system as its primary sanitation system where it provides a robust, low-maintenance sanitation solution for 170 staff and pupils. The project was implemented by Finishes Of Nature in partnership with People’s Power Africa and the Wildlife and Environment Society of South Africa (WESSA) and forms part of the ‘sustainability commons’, an initiative established by the Chris Hani District Municipality whereby sustainable, appropriate and demonstrable technologies are deployed at a learning hub for the benefit of learners and the surrounding community. The system is based on the patented AIWPS system which the Department of Water Affairs and Forestry (DWAF) brought into the public domain in South Africa after 12 years of extensive testing at the Institute of Environmental Biotechnology at Rhodes University. Rhodes University is also conducting the initial monitoring of the Three Crowns project with very positive initial results. The treatment of waste-water and other organic wastes through anaerobic digestion at Three Crowns has the additional benefit of producing methane which can be used for cooking, water heating and other thermal applications. In the case of the school, the gas is piped to the kitchen facilities to be used for the cooking of school meals.

Locally manufactured pre-fabricated digesters being installed


PROFESSIONAL PROJECT PROFILE Waste water is plumbed from the school ablution facilities directly into the biogas digesters which also have an opening for the introduction of food and other organic wastes. After a stay in the digester of about 5 days, all pathogens requiring oxygen to metabolise are killed off and biogas is produced. The gas is stored safely and under low pressure in the digester itself. After anaerobic digestion, the aerobic treatment process comes into play. This is achieved through a number of settling ponds working in conjunction with two types of algal ponds. The growth of algae in the ponds oxygenates the effluent with additional mechanical aeration achieved by means of wind-powered paddle wheels. The resulting highly oxygenated algal slurry is a hostile environment for anaerobic pathogens whose numbers are greatly reduced. The slurry also constitutes a valuable biofertilizer in the schools gardens. ‘Bright water’ finally flows from the algal ponds into a maturation pond. The high nutrient content in the pond supports additional algal growth and the growth of various types of zooplankton which in turn serve as a food source for fish. The fish in turn produce ammonia, one of the inputs of another bacteriological process which ultimately results in nitrate-rich liquid fertilizer, to be used in the school gardens. From the maturation pond, treated water is gravity fed back to the school’s ablution facilities for flushing and thus the loop is closed.

Settling ponds and unique savonius wind powered paddle wheels - a world first

Says David Oldfield of Finishes of Nature, “the implementation at Three Crowns provides a unique opportunity for learners to consciously engage with sustainable technologies in a very real and tangible way. We have no doubt that this will have a profound impact on livelihoods within the surrounding community and, ultimately, a brighter and more sustainable future. It is hoped that we will be able to roll out more of these systems with the Development Bank of Southern Africa as a key partner.” Finishes of Nature has been involved in numerous other biogas implementations around South Africa including another four biogas systems at schools in the Chris Hani District Municipality, a large 220 cubic metre digester at Blue Berries Farm in the Eastern Cape and they are currently involved in the scoping of a centralised biodigester system for an up market residential Green Park Lifestyle Centre in Sandton which will involve the supply of biogas to each residential unit. They have also been appointed as specialist consultant for the design and implementation of the first large scale 2 200 cubic metre ‘cigar’ digester for processing bio-waste at Cala abattoir in the Sakhisizwe municipality in the Eastern Cape. This project includes 40 metre long algae ponds for the recapture of nutrients for use in the surrounding community. Finishes of Nature can be reached at 082-791-3510 or do@morganbay.co.za. Visit http://finishesofnature.co.za for more information on their other projects.


PROFESSIONAL PROJECT PROFILE

Fort Hare Institute of Technology Project 1: Energy Efficient Building Integrated Photovoltaics and Passive Solar Design Energy Efficiency measures in the residential sector can lead to significant reduction in demand and reduced CO2 emissions. The Fort Hare Institute of Technology embarked on an Energy Efficient Building Integrated Photovoltaics and Passive Solar Design project aimed at demonstrating the implementation of passive solar and photovoltaic technology in the domestic sector; this is accomplished through the design, construction and performance monitoring of the EEBIPV house. The house operates independent of the electricity grid. Project 2: Outdoor photovoltaic (PV) modules and systems monitoring The associated projects include outdoor characterization of photovoltaic modules and evaluation and monitoring of solar home systems, the niche being the deployment of novel PV module technologies comprising single-, multi- and poly-crystalline and amorphous materials. Examples of these technologies include single-crystalline Si, multi- and poly-crystalline Si, CuInSe2, Cu(In,Ga)(Se2,S2), a-Si:H, a-Si:H/a-SiGe:H, and HIT. A custom built data acquisition system capable of continuously monitoring the performance of PV modules while deployed outdoors is used. The effects of irradiance, temperature, humidity, spectral distribution, and wind speed and direction on module performance are also continuously monitored. In addition, a second system capable of monitoring the reliability and performance of individual components in small stand-alone PV systems is also continuously operational. This system is also capable of feeding generated electricity into the national utility grid.

Project 3: Biomass Gasification for electricity generation Being situated in the rural Eastern Cape, research on renewable energy proved invaluable to the surrounding community at large. For this reason, FHIT embarked on a community outreach programme where renewable energy technologies are used to improve the standard of living of the otherwise impoverished rural communities. One such project is the one employing biomass conversion technologies utilizing


PROFESSIONAL PROJECT PROFILE waste from the sawmill to generate electricity. The impact of this renewable energy initiative has vast possibilities for agri-business as a form of economic growth and wealth creation. This gasifier plant constructed at Melani village close to the Institute is the first commercial biomass gasification plant in South Africa and is used to power a container bakery. Ongoing research include the improvement of the particle collection efficiency of the cyclone, thermal and chemical analysis of the gasification process, combined heat and power generation (CHP), biomass to biofuels conversion, and co-gasification of biomass and coal in fixed bed downdraft biomass gasification systems for electricity production. Project 4: Characterization of PV and PC solar cells and modules To improve the conversion efficiency of solar cells it is imperative to fully comprehend the operation at elemental and molecular level. Core to this is the analysis of degradation modes due to structural imperfection and damage. During the fabrication phase, it is especially crucial to be able to characterize various parameters which may ultimately influence the performance and efficiency of these devices. FHIT has state of the art facilities for this purpose and in addition makes use of various institutional and national facilities. These include, amongst others, structural and elemental analysis, measurement of relative and absolute spectral response, quantum efficiency in the range 300 nm—3000 nm, spectral response measurement for tandem cells or concentrator cells at up to 1000 suns concentration ratio. Facilities are also available to determine solar cell parameters, such as diffusion length, recombination velocity, thin film spectral transmission, cell reflectivity, spectral mismatch factors and others. In addition, infrared (IR) thermography is used to map the thermal distribution on solar cells and modules. Contact details: Tel: +27406022086 Fax: +27406530665 Email: emeyer@ufh.ac.za www.fhit.ufh.ac.za


PROFESSIONAL PROJECT PROFILE

Morbach – an extraordinary municipality Morbach used to be the biggest ammunition dump of the US-American air force in Europe until in 2001; this 145 hectare area was turned into something much better: An energy landscape embracing diverse renewable energies. Following the US-Army’s departure in 1995, there was much deliberation on how to best use the land. Rejecting the idea of an amusement park and theme hotel, the local council decided on a novel concept of a renewable energy landscape, which was widely supported by the public. Today the so called “Morbach Energy Landscape” provides more than 46 million kilowatt hours of environmentally friendly energy and is also a tourist attraction, with over 23 000 visitors to-date. The renewable energy power plants were installed by the juwi-Group. The majority of the electricity produced comes from 14 wind turbines with a power-rating of two megawatt each, with around 45 million kilowatt hours being produced annually. One of the turbines was financed completely by the citizens of Morbach who also benefit from the profit that the wind turbine make. Furthermore, there are solar panels distributed throughout the landscape, which produce more than one million kilowatt hours of energy. A biogas plant, which runs on renewable raw materials from the region, produces electricity and heat. And Morbach still wants more: Another projected wind park is proposed to supply the business community in addition to residents. The advantages for the municipality are obvious: The renewable energy power plants generate income. With the addition of the new wind park, Morbach will be able to provide 100 % renewable energy to its citizens and industry – powered by the sun, wind and renewable raw materials.

The Morbach Energy Landscape provides more than 46 milion kW hours each year and attracts over 23 000 visitors


PROFESSIONAL PROJECT PROFILE

The biggest wind farm in Costa Rica with 55 turbines, installed by juwi

Costa Rica – not so far away from South Africa Although they are more than 7 000 kilometres apart, they have a lot in common: Costa Rica and South Africa. Both countries have significant wind energy potential and large areas that are perfect for wind farms. Furthermore, both governments support renewable energies, so much so that the South African government has established favourable framework conditions with guaranteed feed-in tariffs for electricity generation from renewables. Despite no feed-in tariffs, the Costa Rican government’s long term goal is to be able to supply the country completely with energy from renewable resources including wind, solar, water, geothermics and renewable raw materials. Since Costa Rica has already installed its first large-scale wind farm, South Africa could learn from its Central American counterpart. With a total power of 49,5 megawatt, the juwi Group, a leading specialist on renewable energies, developed “Planta Eólica Guanacaste”, the biggest wind farm in Costa Rica. The wind farm, which was connected to the grid at the end of 2009, consists of 55 wind turbines with a power of 900 kilowatt each and produces a total of 240 million kilowatt hours of clean energy annually. At the moment juwi Costa Rica is building its second project in co-operation with local companies. The second juwi wind power plant will be located close to the capital San José and will incorporate 17 wind turbines. Michael Böhm, Head of International Business Development Wind at juwi, says: “”We have high expectations for renewable energy in this region considering the superb wind conditions in Costa Rica, and the advancement in technology, which has resulted in increased efficiency.”


PROFESSIONAL PROJECT PROFILE

Living off the grid! - Energy, waste and water For remote sites, where the grid is unavailable or unreliable, local hybrid power solutions are the only choice. Up until now, off-grid sites have typically received power from diesel and gas. With energy costs rising and the cost of operation now extremely expensive, optimizing systems, running efficiently and saving costs is an essential part of the bottom line offering companies attractive investment opportunities. Environmentally, it is also the expected next step and the right thing to do.

Project example

Remote off-grid site: High-end luxury game lodge Project mandate: Reduce energy costs for site through environmentally friendly solutions with minimal maintenance using long-lasting reliable products. The lodge comprises of a number of luxury guest rooms with a main dining and reception area and has a large staff component living on-site. The lodge is situated in an extremely eco-sensitive area where responsible operation is key.All energy is supplied by diesel generators. Water is pumped from a borehole. Both waste water and wet waste is treated on site. We found innovative solutions to solve these problems.

Solution

We conducted a thorough site inspection fully understanding the demand and supply of energy, waste and water throughout the site. We designed a solution taking the unique circumstances of the site into account. We designed a complete energy efficient solution, focusing on the appliances with the greatest potential of saving energy first. Once we comfortably reduced the demand of the site, we supplemented remaining energy use through a Hybrid PV solar system.

The benefits to the client

Benefits Return on investment

Client earned a good return on investment through savings on energy costs.

Payback period

The project will pay itself off within four years at current savings.

Reduced diesel usage

Diesel usage is reduced by 75%.This also has benefits of reduced maintenance and service costs of generators.

Lower carbon emissions

The lower run-time of diesel generators will significantly reduce carbon emissions.

Wet waste management

An effective and affordable way to manage the wet waste from the site.

Waste water treatment

A reliable, tested system used to treat water to environmental standards for reuse, making sure water is not wasted.

Guest satisfaction

The solutions are aligned with guest expectations of the client, which is to run an environmentally-friendly lodge.

Marketing campaign

The client effectively rolled out a marketing campaign through a number of leading magazines and environmental publications.


PROFESSIONAL PROJECT PROFILE

PEER Africa Case study projects

The Witsand iEEECO™ Human Settlement and Commercial Development site in Atlantis, is an award winning Eskom Certified iEEECO™ show case reference project . The project is a turnkey integrated development, which features an affordable integrated residential and commercial development designed by the PEER iEEECO™ team and the City of Cape Town. It also features a redesigned town plan that enables +- 2454 energy cost optimised services stands which allow for unobstructed sun angles. There is an embedded performance based monitoring, evaluation, reporting, verification and certification system which tracks the performance aspects of the project. The domestic use of energy profile is safer and reductions in energy demand/costs are anticipated to be +- 30% less than similar projects. The team is working with a number of service providers to effectively show a net zero energy consumption profile for the project by incorporating a renewable energy power generation mini-grid component in 2011. See town plan below. LAND USE TABLE LAND USE

ERF NOs

1 - 373 376 - 393 408 577 - 582 586 - 587

TOTAL NO.

EXISTING RESIDENTIAL: SINGLE / FREE STANDING SINGLE STOREY.

374 - 375 394 - 407 409 - 576 583 - 584 588 - 2287

AREA (ha)

%

400

5,4196

8.02

PROPOSED RESIDENTIAL: 1. SINGLE / FREE STANDING SINGLE STOREY. 2. SEMI-DETACHED SINGLE STOREY. 3. SEMI-DETACHED DUPLEXES.

1887

24,1371

35.73

PROPOSED RESIDENTIAL: 1. SINGLE / FREE STANDING SINGLE STOREY.

353

Scale:

SOFT POS 2309 2 (16 537 m )

Drawn:

NO. OF NORTH-FACING ERVEN 1761 (93%)

SOFT POS 2310 2 (1468 m )

PROPOSED RESIDENTIAL:

1196

0.62

5

1,2072

1.79

BUSINESS

6

1,7470

2.59

1

0,2213

0.33

0,1412 8,9728

1

0,2389

RECYCLING DEPOT

1

0,1325

0.21

PUMP STATION STORMWATER STORAGE FACILITY

1

0,1992

0.29

1

1,6740

2.48

REMAINDER OF PORTION 6

1

3.6152

5.35

GREEN BUFFER

1

REMAINDER EXTERNAL ROAD

1

1,0583

1.57

2,7238

4.03

14,8030

21.91

10.00

15.00

15.00

15.00

15.00

10.00

14.00

15.00

10.00

15.00

15.00

3.00

15.00

6.00

15.00

15.00

10.00

10.00

11.00

13.00

8.00

15.00

15.00

15.00

10.00

PRIMARY SCHOOL 2299 2 (4829 m )

10.00

SECONDARY SCHOOL 2298 2 (7621 m )

15.00

15.00

15.50

14.00

11.90

9.20

13.40

13.00

9.30

16.40

19.00

9.00

10.00

10.00

10.00

15.00

15.00

10.00

10.00

7.00 10.00

10.00

15.00

13.00 8.50 7.00

9.50

18.00

18.20

15.20 8.50

11.90 8.50

7.20

16.50

10.30

10.00

10.00

10.00

15.00

15.00

BUSINESS 2302 2 (4207 m )

7.00

18.00

18.00

10.00

7.00

7.00

7.00

18.00

7.00

15.00

18.00

18.00

18.00

15.00

10.00

7.00

17.00

15.00

18.00

18.00

18.00

20.00

18.00

20.00

15.00

7.00

13.40

2289 2 ) (4355m

-UPS EY WALK 3 STOR 15.00

10.00

7.00

7.00

7.00

14.70

10.00

15.00

15.00

8.00

7.00

7.00

7.00

15.20

8.00

10.00

20.00

7.00

10.00

18.00

10.00

10.00

15.00

15.00

15.00

15.00

20.00

10.00 7.00

15.00

10.00

15.00

10.20 10.00

10.00

10.00

2303 2 (1468 m )

POLICE STATION 2323 2 (2389 m )

SPORTS FIELD 2314 2 (16314 m )

9.00

10.00

8.00 7.00

15.70

15.00

16.00

9.00

15.00 9.00

8.00 8.00

9.50

15.00

9.00

14.70

8.00

11.50

5.50 5.60

15.50

15.50

15.50

9.90

21.80

11.00

6.30

15.50

23.40

21.90 13.70 8.70

10.00

9.20

18.60

10.00

11.00

17.00

15.00

15.00

7.00

10.00

10.00 19.80

7.60

15.00

SOFT PUBLIC OPEN SPACE 2313 2 (7619 m )

15.00

15.00

7.00

10.00 7.00

10.00

2304 (8292 m2 )

2288 2 (4012 m )

7.00

9.00

9.00

14.00

13.50

16.20

15.00

7.00

15.00

15.00

15.00

15.00

14.20

12.70

11.00

10.00

2305 2 (1924 m )

17.00

10.00

9.00

6.50

10.00

10.00

13.00

27.00

10.00

10.00

12.00

11.00

20.00

20.00

10.00

10.00

10.00

10.00

15.00

10.00

15.00

12.90

15.00

3.70

15.00

10.00

15.00

15.00

16.50

13.50

9.00

7.00

10.00

11.00

15.00

10.00

7.00

10.00

20.00

10.00

ESS BUSIN

11.00

10.00

10.00

10.70

7.00

7.00

10.00 10.00

10.00 10.00 20.00

10.00

12.40 9.00

CHURCH CHURCH 2294 (590 m2 )

10.00

17.00

10.00

9.00

ESS BUSIN

9.00

7.00

7.20

RECYCLING DEPOT 2324 2 (1325 m )

CLINIC 2308 2 (1412 m )

LIBRARY 2297 2 (1311 m )

10.00

-UPS EY WALK 3 STOR

11.00

10.00

22.00

9.00

15.00

10.00

10.00

15.00

10.00

D2008

10.00 10.00

10.00

15.00

15.00

10.00

Project No:

6

2306 (1089m2)

COMMUNITY FACILITY 2307 2 (2213 m )

100

67,5481HA

TOTAL

Plan No:

0.35

ESS BUSIN

INTERNAL ROAD

CITY OF CAPE TOWN

Brackenfell

13.28

10.70

2328 2329

Client:

ESS BUSIN

2327

10.00

PUBLIC OPEN SPACE

2311 2 (1744 m )

15.00

CLINIC

2308

2323

TM"

0.21

1

14

POLICE STATION

2324

2325 2326

FARM WELGEMOED NO. 1065, ATLANTIS.

15.00

COMMUNITY FACILITY

2309 - 2322

Witsand "iEEECO Sustainable Human Settlement.

(314 m )

1.24

0,4203

EDUCATION

2307

Project:

PORTION 5 & 6 OF PHASE 2.

CRECHE 22962

0,8367

6

2296 - 2300

2301 - 2306

HARD OPEN SPACE

CHURCH 2295 2 (468 m )

2

CHURCH

10.00

PROPOSED RESIDENTIAL: 3. SEMI-DETACHED DUPLEXES.

MAY 2009

ERF DIMENSIONS PLAN

338

2. SEMI-DETACHED SINGLE STOREY.

PROPOSED LAND PARCELS FOR 3 STOREY WALK-UPS

2288-2289

2290 - 2295

1:1250

Date:

TM

Drawing:

10.00

17.50 17.50

18.00

7.00 16.00

18.00

7.00

14.00 15.00

13.00

18.00

15.00

15.00

15.00

15.00

15.00

15.00

7.00

7.00

15.00

12.70

15.00

15.00

15.00

HARD OPEN SPACE

7.00

7.00 15.00

15.00

15.00

17.00

15.00

7.00

15.00

16.00

16.00

5.50

17.00

15.00

16.00

15.00

7.00

15.00

15.00

18.00

7.00

8.00

16.00

18.00

7.00

7.00

16.00

7.00

7.00

7.00

7.00 15.00

5.50

18.00

14.00

8.50

8.50 18.00

7.00

18.00

15.00

18.00

15.00

15.00

15.00

15.00

15.00

15.00

18.00

18.00

7.00

7.00

6.00

7.00

7.00

7.00

7.00

6.00

7.00

7.00 18.00

18.00

15.00

15.00

15.00

15.00

15.00

15.00

7.00

2317 2 (2376 m )

7.00

2322 2 (2436 m )

7.00

7.00

7.00

7.00

HARD OPEN SPACE

7.00

7.00

7.00

18.00

6.00

5.00

15.00

18.00 18.00

7.00

7.00

7.00

7.00

7.00

7.00

7.00

7.00

7.00

14.80

6.70

7.00

7.00

7.00

15.00

15.00

18.00 18.00 18.00

18.00

18.00

18.00

26.70

15.00

10.00

15.00

10.00

10.00

10.00

10.00

10.00

10.00

15.00

15.00

15.00

15.00

15.00

15.00

15.00

18.00

7.00

7.00

7.00

7.00

7.00

CHURCH 2290 (429 m2 )

7.00

7.00

7.00

7.00

7.00

7.00

7.00

7.00

7.00

8.70

15.00

14.70

15.00

7.00

7.00

7.00

7.00

7.00 18.00

18.00

18.00

7.00

CHURCH 2292 2 (1559 m )

18.00

18.00

7.00

17.00

7.00

5.50

7.00

7.00

7.00

7.00

18.00 22.80

15.80

7.00

7.00 7.00

16.50

7.25

7.00

17.00

15.00

15.00 15.00

15.00

15.00

20.00

20.00

17.00

15.50

21.00 18.00

7.00

7.00

16.50

7.00

15.00

7.20

7.00

18.00

15.00

15.00

20.00

20.00

7.00

7.00

7.00

16.50

15.50

5.80

7.00

7.00

7.00

7.00

7.00

16.50

15.00

7.00

7.00

7.00

2316 2 POS (17921 m )

16.50

7.00

19.70

19.00

20.00

20.00

16.50

7.00

7.00

SPORTS FIELD

10.00

10.00

7.00

2

(528 m )

7.00

7.00

10.00

10.00

7.90

18.00

18.00

18.00

18.00

20.00

19.70

CHURCH 2293 (553 m2 )

7.00

10.00

7.50

CRECHE

7.00

19.00

20.00

7.00

9.00

7.00

8.30

2

(490 m )

10.00

10.00

7.00

7.00

7.00

7.00

POS

7.00

7.00

2315 2 (4435 m )

7.00

7.00

7.00

18.00

18.00

18.00

18.00

7.00

HARD OPEN SPACE

7.00

POS

10.00

7.00

7.00

7.00

7.00

18.00

20.00

18.00

20.00

7.00

20.00

7.00

7.00

7.00

10.00

7.00

18.00

18.00

7.00

18.00

20.00

7.00

10.00

7.00

7.00

18.00

20.00

7.00

10.00

7.00

18.00

18.00

18.00

PRIVATE PROPERTY REMAINDER PORTION 6 3,1405 ha

18.00

18.00

18.00

2

18.00

18.00

15.00

7.00

7.00

7.00

7.00

18.00

18.00

18.00

18.00

18.00

7.00

15.00

7.00

18.00

7.70

7.00

7.00

7.00

18.00

13.80

17.00

7.00

7.00

7.00

7.00

18.00

15.00

15.00

2

7.00

18.00

18.00

7.00

7.00

18.00

14.00

7.00

7.00

18.00

7.00

18.00

15.00

7.00

18.00

18.00

18.00

7.00 7.00 17.50

18.00

iEEECO™ Large scale demand side management peak period demand reduction model. The PEER team designed and developed an approach to capacitate local SMEs to work as a network to complete the retrofitting of over +- 30,000 dwellings along the West Coast in Cape Town within a 4 month period. In this case, the team served as the turnkey service provider that delivered against a performance based contract model as part of the race to restore energy to Cape Town at the time. The model is now refined to include additional renewable energy solutions to clients which were not available at the time. 15.00

15.00

7.00

7.00

7.00

7.00

15.00

18.00

7.00

18.00

18.00

7.00

7.00

7.00

18.00

14.00

7.00

7.00

18.00

7.00

18.00

18.00

2

18.00

7.00 7.00

7.00

7.00

18.00

7.00

18.00

18.00

7.00

CHURCH 2291 2 (604 m )

STORMWATER STORAGE FACILITY 2326 2 (16 740m )

2320 2 (14 492 m )

NOTES

SUBSTATION 2325 (1 914 m2 )

All dimensions and areas are approximate, and must finally and accurately be determined by a Land Surveyor.

iEEECO™ Safe domestic use of energy solutions for the poor. This is a very urgent focus for the PEER team, its government, private sector, University of Johannesburg Stove technology centre and NGO affiliates. They are working on a large scale iEEECO™ program which will bring safe and healthy solutions to the poorest of the poor. Other current initiatives include rural Agri-village projects, water and waste water programs and the design and development of the next generation of zero energy iEEECO™ human settlement and commercial development projects.

Contact details

Douglas ‘Mothusi’ Guy Tel: +27 (0) 82 579 6032, Fax: +27 (0)86 654 4308, E-mail: dlguysr@mail.ngo.za; Local WEB site under construction alternatively www.peercpc.com


PROFESSIONAL PROJECT PROFILE

Plan My Power VERKYKERKOP VILLAGE – GREEN ENERGY SOLUTION Green Power sources can include solar (photo-voltaic and thermal), wind, hydro-power from dams and rivers, biomass, waves at sea, landfill gas and many others. Of all of these, it is mostly solar and wind energy sources that are viable and applicable for household needs, and of the two, more especially photovoltaic solar. While both energy sources are available in abundance in our country and specifically in the Verkykerskop area, photovoltaic solar presents to be the most viable because it has the benefit that the energy source can be tapped on the site of use, the home Green energy utilization at Verkykerskop focuses on solar energy initially; cable distribution network will become very viable once the village has reached a certain size and density. Verkykerskop has set a target of developing the majority of sites as 100% self-sufficient and the remainder to generate up to 60% of own energy from renewable sources. Plan My Power in collaboration with the architects, have shown that this is achievable at an acceptable initial capital cost, while significantly reducing running costs In South Africa the NERSA (National Energy Regulator) and Government have adopted a power conservation program. Verkykerskop is breaking ground by voluntary committing to build such a lifestyle. SANS 204 : 2008 is a DME energy efficient strategy that targets a reduction of 15% in total energy demand in buildings throughout South Africa. The DME sees the SANS 204 standard as being made mandatory for incorporation into the national building regulations of SA


PROFESSIONAL PROJECT PROFILE

Verkykerskop development has set a target of 30% energy reduction, and in collaboration with the architects, is devising a holistic approach that will ensure this is achieved in an affordable and sustainable manner. South Africa is subdivided into six temperature energy zones, each with its own considerations in terms of external wall insulation, roof and ceiling insulation and insulation of the foundation and flooring. Verkykerskop lies in the “cold interior” region for which the following measures are pertinent: • Orientation of the house: while shielding against the sun in summer is not that pertinent as for hotter climate sones, orientation and shading need to be such that the sun’s heat is absorbed in winter. • Slab ground insulation from the side is most important for total effect on mass energy storage. • Ceiling insulation material. • Minimum external wall thickness of 300mm with cavity insulation. • Exterior water pipes must be insulated. • The combination of solar water heating and the use of back-up heat from a wood stove chimney or a gas geyser to heat water can enable a hot water system to work all year round. • High pressure sodium technology will replace conventional Mercury vapour exterior lighting. • Light Emitted Diode (LED) technology will replace incandescent lights, saving more than 90% on the cost of energy • The use of automatic switching, occupancy sensing and light-dimming controls further saves significant energy. • Smaller vertical windows with double window glazing improve interior energy • External shading fits in with the building themes lets sun in in winter and shields sun in summer. Dr Gawie van der Merwe (Plan My Power PTY)Dr Louis Grobler - Verkykerkop Bouwer Serfonrtein GWA Studio- Architects


PROFESSIONAL PROJECT PROFILE

Single Destination Engineering South Africa has a history of cheap energy from coal fired power stations with high greenhouse gas emissions. The game has changed with the awareness that current emission levels are unsustainable, power supply constraints and spiralling electricity costs.

The Absa Campus Energy Project.

The Absa Campus in central Johannesburg comprises eight buildings with a total usable area of 130 000m². A complete review of the energy supply for the Campus was initiated by Absa in 2006. All own generations options were reviewed including centralised diesel back up, rotary UPS systems and gas powered generation. Gas powered generation was selected as it provides cost effective power with 40% less emissions than the utility power it replaces. The emissions are further reduced when generator waste heat is used for heating and cooling of the Campus. At present waste heat is utilised to heat the new Absa Towers West buildings with greater use in future as further opportunities arise. The Absa Campus is the first clean generation campus in South Africa. Operation commenced in May 2010 with 11MW of generation using gas engines. One third of the total energy consumption of the Campus is generated using gas supplied by Egoli Gas. This results in an emissions reduction equivalent to replanting 1 900 hectares of rain forest. Potentially this can increase to 3 100 hectares of rain forest with optimal use of waste heat for heating and cooling of the Campus. The South African electricity grid is under pressure and will remain so for the foreseeable future. During business hours the Campus is substantially self supporting reducing stress on the grid and helping to lower the risk of power outages. In addition the own generation can contribute to a reduction in the electrical load of Johannesburg when requested by Eskom. Absa is doing its part to help create a greener, more sustainable Johannesburg.

Contact details:

Tel: 011 997 2340 E Mail: contactsde@sde.co.za


PROFESSIONAL PROJECT PROFILE

Energy Production Performance Monitoring More attention than ever is being paid to increased energy production and energy conservation. Installers, operators and users alike are seeking new methods to yield better results and require validation, monitoring and management tools for the energy systems they operate. Remote monitoring and management - Wind Solar Motion, Johannesburg, Gauteng The latest collaboration effort between greenHouse and WSMP saw the intelligence project come to life, the purpose of which is to provide a system which allows the monitoring and management of energy systems, particularly for clients with remote self sustainable systems. Since these systems are often dedicated to gathering scientific data or running security applications it is vital that they produce, store and consume energy as designed. The application has performed beyond expectations in terms of its ability to log relevant data and reproduce it in an accessible manner along with various management, monitoring, statistical reporting and analysis tools providing system operators with a way to assess and monitor local and remote system values automatically. Because of this, incidents of system failure due to battery over-utilization have been eradicated as technicians are deployed at the earliest sign of performance deterioration, proactively preventing systems from going offline and possibly damaging battery banks due to continuous deep cycling. Environmental sensors are used which further analyze data to verify and predict charge patterns. Sustainability management - CB Property Developers Vaal, Gauteng Development has begun on a retail centre at the Vaal which aims to utilize technology to minimize environmental impact, not only during its green construction phase, but also once it is occupied. The operators task of energy management has been simplified by the deployment of sensors and a monitoring system which will measure energy production, consumption and environmental factors providing pro active analysis of the hybrid systems which will provide the building’s DC requirements for lighting, pumping, security and the control room. Any surplus DC will be inverted to AC which may be subsidized by the grid depending on the tenants consumption requirements. Production values are compared against environmental data from solar radiation, wind and temperature sensors making complex analysis, forecasting and management tasks straightforward and easy to execute. Tenants benefit from: • Grid interactive 220VAC, community solar water heater, and an independent 12/24VDC supply. • Circuits are metered for billing and load shedding configuration is possible. • Events and alerts are automated to pre-configured parameters - EcoEasy. • Sustainability is measured with acquired data giving validation to this energy neutral solution. greenMonitor™ has given value to these projects by use of a flexible platform which combines supported inverters, charge controllers, relay control, AC/DC metering and various sensors with a dynamic yet uncomplicated Interface. Alexander Richter, +2782 6633 515, info@greenhousepc.co.za, www.greenhousepc.co.za


PROFESSIONAL PROJECT PROFILE

GREENING YOUR HOUSE Otters Pond- Vaal Dam The advent of the energy crises in South Africa and the surge in energy prices has resulted in many homeowners looking at alternative sources of energy. In some cases this is not viable from a financial point of view primarily because the homeowner is not willing to make changes or compromises to his lifestyle. The owner of this house at Otters Pond was willing to look at things realistically As the house was in need of a fair amount of renovation – we were able to contribute significantly to laying the foundation for future power consumption in the house. LED lighting was used in most of the rooms while fluorescents were used where LEDs were not practical. High efficiency, low wattage refrigeration was also used - which is critical in the conservation of energy as the fridge is generally one of the largest consumers in the household. Heating (including water heating) and cooking requirements are supplied by gas. Water is supplied by a solar pump which delivers some 3000L per day. The system supplies some 9kWh per day and is sufficient to supply power for general household use including refrigeration, lighting, Television cleaning etc. In addition a 2 KW wind turbine provides additional capacity for days of over usage. The result – total independence from the grid. The KEY: - Whether it’s your business or your home: - with compromise and management you can become less dependent on the grid Meeting peoples needs 1500 homes- Bushbuckridge The energy crisis has not just caused prices to increase but has placed limits on the ability to supply basic services. These Solar Homes Kits supply basic lighting to low and no income houses in Bushbuckridge Mpumalanga. Local skilled and unskilled labour was trained and used to install up to 200 systems per week. These trained locals now also perform a maintenance function. The end result is people previously in the dark (literally) now have access to light for studying and power for radios and cell phones – access to information. The Key: - Properly designed and implemented alternative energy solutions can be just that.... solutions.


PROFESSIONAL PROJECT PROFILE Instant Solutions What started out as an energy crisis issue has been turned into a cost saving issue for Mita Tools in Ekurhuleni. The company was losing revenue due to power outages at the height of the load shedding and asked us for a backup solution. The system consists of a 12kW inverter with mains back up. The inverter draws power from a 1600ah 48v battery which provides a minimum of 8 hours of power to selected areas of the business. These areas; computers, printers, switchboards, lights etc are not only critical to the operation, but allow the business to operate normally from the customers point of view. A 3kW solar array provides extended run time along with a 14.5 kW generator for even more independence. Since the power outages have declined in frequency, the system is run on a regular basis as a load levelling device. This brings the companies kilowatt hour consumption rate to a lower bracket – resulting in considerable savings. Contact Details SBS SOLAR, 23 Golden Drive, PO Box 11454, Rynfield,1514 TEL: +27 11 425 3447 FAX +27 11 425 4433 EMAIL: info@sbssolar.co.za Website: www.sbssolar.co.za


Index of Advertisers Company : Page:

1 Energy 112 Adroit Technologies 10 Amalembe Construction and Projects 150 Applied Energy Solution 6 Bonitcom Energy 84 Bosch Projects 136, 137 Chemical and Allied Industries’ Association 135 Department of Science and Technology 44,45 Ekurhuleni Metropolitan Municipality 18, 19 Electrawinds 176 and Inside Back Cover Emergent Energy 78 Energy Cybernetics 80 and 180, 181 Energy Partners 148 Enerix 169 Escotek Group 165 Enviroplus Group 30, 31 Eskom 12 Exxaro 8 and 177, 178, 179 Finishes of Nature 132 and 182, 183 Fort Hare Institute of Technology 167 and 184, 185 GW Store 100, 101 Industrial Development Corporation 14 Ingersoll Rand Industrial Technologies 96 Juwi Renewable Energies 116 and 186, 187 LED Lighting South Africa 46, 47 and 154, 155 Midrand Solar Technologies 114 M-Tech Industrial (Pty) Ltd 38 New Southern Energy 40 and 188 PEER Africa 60 and 189 Petroleum Agency SA 20, 21 Plan My Power 94 and 190, 191 Quay2Quay Facility Management 66, 67 Riso Africa 27 RSV Enco Consulting (PTY) Ltd Outside Back Cover RV Technologies 76 Santam 68, 69 Sasol 2 Single Destination Engineering 82 and 192 Solairedirect Southern Africa 58 Solar Total South Africa 28, 29 South African Supplier Development Association 172, 173 Specialised Battery 194, 195 Technopol 64 The Sustainable Energy Seminar Inside Front Cover The Sustainability Series Handbooks 16 University of Johannesburg: Applied Solar Energy Research Programme 99 University of Pretoria: National Hub For The Postgraduate Programme In Energy Efficiency (EE) & Demand Side Management (DSM) 170, 171 University of Pretoria: The Graduate School of Technology Management 4 and 43 Wind Solar Motion 62 and 193 Working for Energy 152, 153


South African pioneer in renewable energy Electrawinds was present at the birth of renewable energy in South Africa. In May 2010, the Belgian green energy producer completed the first commercial wind turbine in the new port of Coega, outside Port Elizabeth. The project was completed in a record time of 104 days and since then has provided green energy for the electricity grid in the city of Port Elizabeth. Electrawinds has plans to extend this projects by a further 24 turbines. This would make it the first large-scale wind project in South Africa and the first fully fledged Electrawinds wind farm outside Europe. More info | www.electrawinds.eu

Contact: Emil Unger | Project Development Manager | Africa Mob. +2782 4659825 I Fax +2786 6008622 I www.electrawinds.eu


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