ISSN 1684-2375 Volume 19 Number 1 January 2015
BRAVE NEW WORLD What mega cities will deliver
LORDS VIEW Blueprint for industrial sites LET THE RIVER RUN Water flows safeguarded Annual Subscription: 6 print editions + 25 email bulletins | South Africa: R865 Africa: US$160 International: US$170 Subscription-based electronic and print-media information package serving the planning professions in South Africa
JANUARY 2015 Journal for planning professions
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It’s a brave new world
Latest news and developments
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LORDS VIEW
FUTURE VIEW
Brave new world
RENEWABLE ENERGY
Let the river run!
Venture par excellence
A BRAVE NEW WORLD: What mega cities will deliver. Photograph: Google
UGF Jan 2015 - 1
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It’s a brave new world!
U
rban Green file has a new home! The magazine has nestled into the stable of T.E. Trade Events, well known for hosting expos and seminars in South Africa. The company also publishes the Journal of Facilities Management (JFM), which has also moved over with UGF. I remain editor of both magazines. The move fits in beautifully with the activities of T.E. Trading, who handles the FM expos, as well as breakfast seminars on facilities management. As everyone knows, there is a distinct overlap with JFM and UGF, so the company’s engagement with both magazines makes perfect sense. In a sense, the move is well overdue as the magazines did not fit in comfortably at Brooke Pattrick, whose focus is more on mining, contracting and other industrial markets. So, as sad as it was to leave the fold there, and the many friends I had made, it was definitely time to move on. You will notice in the months to come, many changes with both magazines, in both design and editorial content. The magazines will become much more focused on our clients’ activities that are making great inroads into the facilities management and smart city fields. The built environment remains my passion and whether it is facilities management or the greater ‘green’ picture, this is and will always be where I want to focus. The ethos of “smart city, smart management” becomes even more critical in the context of the expanding urbanism that is a worldwide phenomenon. Hence, the magazines become more and more relevant and “must reads”. One article in particular in this issue, Brave New World, will have you sitting straight up, riveted. Our world as we know it is set to change quite radically with the burgeoning urban expansion and leaders will have to have to have their wits about them to ensure survival.
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As the article puts it: “In a world riddled with economic uncertainty, increasing geopolitical asymmetry and new business models that threaten to disrupt or even collapse individual companies or even entire industries, leaders find it increasingly challenging to plot a forward course. “Challenges and monumental questions abound across virtually every industry. In healthcare, how will we provide quality care in a world of ageing populations for every patient globally in a sustainably affordable way? In energy, will we satisfy the growing energy requirement of a highly connected and power-hungry global population that is increasingly concentrated in urban environments entirely dependent on vulnerable power grids?” This is just the beginning, and the article goes on to examine the top five trends shaping society and the need for social innovation, including focusing on transport challenges and managing security and privacy in information and communication technology. Want to read more? I’m sure you do! Another article on Lord’s View, also examines the changing landscape of industrial parks and how this one differs radically from those already in existence. It is still in its embryo phase, but take a look at the artists’ impressions, and you’ll be amazed. With many green innovations, it is set to become the blueprint for such sites in South Africa, and probably the continent. The issue focuses on change, which is what this editorial column is all about. It is not only a brave new world for industry and cities, it’s also one for Urban Green File and JFM. I am certain they will go from strength to strength under the new management, and I am thrilled to be undertaking this journey. Wishing all readers an amazing 2015! Terry Owen, Editor
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Update
‘Green’ city gets bigger and bigger
4 - UGF Jan 2015
Henk Boogertman
A
An artist’s impression of new building developments planned for the multi-billion rand Menlyn Maine “green” city development in Pretoria.
Henk Boogertman
lready home to leading companies like BMW, Nedbank and SAGE VIP, the multibillion rand Menlyn Maine “green” city development in Pretoria is set to get 26 500m2 of new office space in three new buildings from the end of 2015 to the end of 2016. Menlyn Maine Investments is pioneering the Menlyn Maine development – Africa’s only green city. In the latest developments to be announced, it will invest R750million to develop three top-class, green A-grade office buildings. Henk Boogertman, main architect of Menlyn Maine confirms the trio of quality office buildings will all achieve at least a 4-Star Green Star SA rating from the Green Building Council of South Africa (GBCSA), in line with Menlyn Maine’s exceptional sustainability benchmarks. Menlyn Maine is South Africa’s first green, mixed-use city. It’s more than a collection of award-winning green buildings in one place; everything between the buildings is designed to be environmentally sustainable too, from sidewalks and streets, to parks and squares. The benefits go beyond a lighter carbon footprint and lower electricity bills, to the enjoyment of a quality experience in a distinguished address of choice for working and, in future phases, shopping, entertainment and living, all designed to promote responsible, healthy lifestyles. As a partner of the Clinton Climate Initiative, Menlyn Maine is one of 16 green cities being built in various countries, and the only one in Africa. “Its superb location has been a key factor in attracting top business names to Menlyn Maine,” says Linda Riley, Leasing and Investment Advisor at Menlyn Maine. Menlyn Maine is minutes away from the N1 motorway’s Atterbury and Garsfontein interchanges, right off the main arterial of January Masilela Road, and a mere 500 metres from the
An artist’s impression of the 9 500m2 Indus Building set to be developed in the multi-billion rand Menlyn Maine green city development in Pretoria.
main entrance of the super-regional Menlyn Park Shopping Centre. Its bustling location also means it benefits from exceptional transport connections. This includes access to excellent transport links, including three Gautrain bus stops, the new
SA government gets GHG advice
Henk Boogertman
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An aerial view of the model showing what the Menlyn Maine multi-billion rand green city development in Pretoria will look like when it is fully complete. Menlyn Maine Investments has announced it will invest R750 million to develop three top-class, green A-grade office buildings as part of its latest tranche of investments in the groundbreaking development.
BRT bus system and a taxi terminus. Menlyn Maine is designed to welcome pedestrians. Fewer cars on the roads also mean lower carbon emissions. It is also surrounded by medical facilities, schools, and all the amenities that come with being in the heart of the upmarket, growing Eastern Suburbs of Pretoria. Already under construction, the landmark 13 500m2 West Tower office block is at the heart of Menlyn Maine’s vibrant future retail and entertainment epicentre. This A-grade nine-storey office tower has been designed to create flexible space for corporate headquarters or a bustling multifaceted business environment. Located on the corner of Aramist Avenue and Dallas Road, it will be ready for tenant occupation in September 2016 and offer ample parking. Opposite this tower, the Indus building will provide 9 500m2 of A-grade office space across five floors, allowing for the flexible subdivision of offices. It is set for completion in late 2016. “Like the other two new buildings
it comes with naming rights for a major tenant taking up more than half of each building,” says Riley. The Orion building will be developed opposite the 3 200m2 Regus building, which was completed in June this year. Standing in a prime position at the new gateway to Menlyn Maine from January, Masilela Road, the Orion building mirrors its neighbouring offices. The four-storey building will provide 4 500m2 of environmentally innovative and flexible lettable A-grade offices, suited to either a single or multi-tenant environment. Its development will be demand driven, with completion delivery possible as soon as late 2015. “The benefits of offices in a green city go beyond simple environmental responsibility,” says Riley. “It also means smart building design for energy efficiency, recycling, environmentally friendly waste management and roof gardens. All this adds up to less operational costs and more savings over a company’s lease period.”
icardo-AEA has revealed its contribution to a landmark report published by the government of South Africa in November, outlining the country’s greenhouse gas (GHG) mitigation potential. Ricardo is a global engineering, strategic and environmental consultancy. It was founded by Sir Harry Ricardo in 1915 and still shares his vision for maximising efficiency and eliminating waste. Ricardo now employs over 2 000 engineers, scientists and consultants around the world. The report was launched by Minister Edna Molewa at South Africa’s National Climate Change Response Dialogue. This event brought together stakeholders across the whole country to reflect upon South Africa’s journey towards a lower carbon and climate-resilient economy over the last decade, and to discuss tangible actions to enhance the delivery of these objectives in the future. The report’s findings will play a key role in helping the South African government to identify actions, and to set sectoral GHG reduction limits. It identifies mitigation options in key economic sectors, and includes an updated projection of national GHG emissions along with marginal abatement cost curves for key sectors. A socio-economic and environmental assessment of the identified mitigation options is also included. The report shows that South African GHG emissions would reach 663 million tonnes carbon dioxide equivalent (MtCO2e) by 2020 and 1 593 MtCO2e by 2050 based on policies currently in place (the reference case). However, emissions could be reduced by as much as 15% in 2020 and 54% in 2050 if all available mitigation options were taken up. Ricardo-AEA’s contribution to the report was made as part of a project for the South African Department of Environmental Affairs led by Camco Clean Energy. Ricardo-AEA’s work on the project involved leading the development of emissions projections up to 2050 and analysing emissions reduction opportunities for the transport, waste and energy sectors. Experts from the consultancy travelled to South Africa on a number of occasions to meet with key stakeholders and consult on technical issues. UGF Jan 2015 - 5
Update
I
n the last five years, the cost of energy has become a growing concern for SA business and is especially troublesome for companies that are heavily dependent on Eskom’s electricity supply. However, while business leaders know that energy efficiency is already critical for business survival, many avoid following through on the implementation due to the misperception that it is too complicated or a costly process. This is according to Manie de Waal, Head of Sales at Energy Partners, a leading energy solutions provider in South Africa, who says that the hike in energy costs by the state owned utility should not be taken lightly. “SA has seen a more than 200% increase in electricity tariffs since 2008 and could be looking at more than a 1 000% increase between 2002 and 2020. Businesses should focus on both the demand (efficiency projects) and supply (generation) side of energy to minimise their exposure to hiking prices,” he says. De Waal explains that prior to the energy crises in 2008, SA enjoyed abnormally low electricity tariffs and as such both behavioural patterns and optimisation of energy intensive operations did not develop gradually (as they did globally) towards cost-effective sustainability. “While behavioural change, literally getting people to switch off, forms the building block for overall energy optimisation, this will usually only result in 10% reduction at most. To reach a 20% – 50% reduction in consumption, businesses must invest in their operational asset base, preferably partnering with a reputable energy solutions provider.” There are multiple funding options available to assist businesses with the transition, the least risky of which is a Gain Share agreement whereby an energy solutions provider invests in an organisation and is rewarded only based on results achieved. He says that in Gain Share, or Performance Rental, funding models the energy solutions provider invests towards a client’s energy efficiency by funding the solution – be it solar Photovoltaic (PV), heating, 6 - UGF Jan 2015
cooling systems or outsourced steam generation – and is also responsible for the operation of the equipment. “Only when savings are realised, the solutions provider is rewarded for its results. All these types of agreements should be structured that the client is cash flow positive from day one, without carrying performance risk or investing any of its own capital.” De Waal warns, however, that businesses must be sure to partner with a reliable and experienced energy solutions provider, because even though the financial risk is mitigated, operational risk is involved in outsourcing critical business processes. He explains that currently, Energy Partners is working on number of Gain Share funding initiatives including, for example, a recent steam outsourcing project in Wadeville, Johannesburg. “Energy Partners invested in and installed a boiler on the premises and appointed a dedicated team to manage the operations. The client is not invoiced for the service or the hardware, but only for the steam generated. Savings were achieved from day one and the client is set to save more than R10million annually. This is from a single contract and looking across the client’s portfolio many more opportunities have already been identified.” Alternative funding options include self-funding, external financing and “green” funding. “If the operation is self-funded, the buyer enjoys the full benefit of the installation and the savings are not offset against finance charges.” De Waal says that this option is often chosen by corporates that do not have a tightly constrained cash flow and are comfortable carrying the performance risk of the asset. This type of investment should, however, always be weighed up against other available investment opportunities which clients ‘understand’ better. External financing is a bank loan, typically issued at the corporation’s overdraft rate. Green funding works on a similar principle, but a preferential interest rate is offered as these funds come from sources that are earmarked for energy saving initiatives. “With
Energy Partners
Energy efficiency is not unaffordable!
Manie de Waal
green funding, measurement and verification (M&V) requirements are sometimes demanded of the organisation to ensure that the asset is performing at the desired level.” De Waal says that business owners should ensure that they understand the full cost implication of financing options, especially when the company invests its own capital. “The savings from solar power should, for instance, be very carefully considered against both the opportunity costs of other investments and also against the true cost of Eskom power during the time of day when solar is generated.” Business owners must understand that bills may go up even while the company is saving, because energy costs are dependent on usage patterns, tariffs and climate. “It is thus imperative to measure energy consumption prior to the optimisation initiative to establish an agreed upon baseline against which savings can be determined. “At Energy Partners, we very seldom see a site where saving potential is less than 20% on the current bill and it is not uncommon to find sites that exceed 50%. The biggest mistake a company can make is to do nothing when there are low-risk solutions available that require no capital investment,” says De Waal.
Fast-tracking energy in Africa
A
new platform to help fast-track African sustainable energy development projects has been officially introduced in Nairobi, Kenya. The introduction of the NEPAD Agency’s Africa sustainable energy incubator platform took place alongside the Africa Private Sector Forum at the Planari Hotel in Nairobi in December. The platform, which is a NEPAD Agency initiative, in collaboration with the ACP Business Climate Facility (BizClim), a programme of the ACP Group of States funded by the European Union, aims to fasttrack African sustainable energy development projects. The initiative is described as ‘the meeting point for energy project developers and investors’. It connects energy project developers and investors, supports project development through access to expert mentors and serves as a knowledge hub for this fast-growing sector. The business support tools help to streamline projects, assist developers to structure their business proposals, shorten the time cycle for access to cash and equities, provide better pre-diligence for investors and establish finance products in association with blended funding partners. Dr Ibrahim Mayaki, NEPAD Agency Chief Executive Officer, says NEPAD’s vision for a sustainable and inclusive approach to empowering Africa is complemented by frontline energy project developers who are delivering
appropriate energy and fuel solutions. He says that Africa also needs equally dynamic investors who can help to accelerate the expansion of affordable and sustainable energy. “We would like to make the NEPAD Agency incubator test platform a future catalyst to strengthen our own coordination with African Governments and Agencies and promote this platform as an exchange to build common equity for developers and investors. We can and will bridge the investment gaps that have for too long restricted growth,” he says. A leading panel of investors from Europe and Africa, key agencies and industry mentors from the energy sector participated in a dedicated session titled “5th Plenary Session on Sustainable Energy Impact Investment” and debated alternative solutions to securitising risk capital to accelerate private sector energy projects. On the back of the pilot phase of the incubator test platform GEN-HUB Africa, in which support was facilitated for 20 projects, seven of which are now being promoted with a combined seed capital requirement of USD12-million, the Africa Private Sector Forum in Nairobi will provide a platform for Energy Project Developers to demonstrate the benefits of being members of a focused investment hub which helps to validate their technical and capital needs. It will further review the progress and challenges encountered in developing knowledge and investment for energy projects.
UGF Jan 2015 - 7
Update
Coega
Valpré shows Gold ‘green’ award goes to Coega ‘green’ commitment
SHEQ unit members with the certificate and trophy the organisation recently received at the Eastern Cape Top Green Organisation Awards 2014. (left to right) Viwe Biyana-CDC SHEQ unit head, Michelle Bakker-CDC Integrated Management System (IMS) coordinator, Sinawo MtonganaCDC SHEQ project manager and Andrea Shirley-CDC environmental project manager.
T
The awards, launched in 2009, recognise the achievements of organisations that comply with legislation, environmental management principles, and green economy initiatives such as waste management, biodiversity and quality. Entrants were shortlisted, and results were audited by the professional members of DEDEAT and IWMSA to determine winners. Viwe Biyana, CDC’s unit head of safety, health, environment and quality says: “Following the CDC’s entrants and motivation for the award, the audit team from IWMSA and DEDEAT visited CDC premises to verify relevant CDC systems, processes and projects.” Coega
he Coega Development Corporation (CDC) and Port of Ngqura jointly received a gold award for Medium Organisation with a High Environmental Impact in the acclaimed Top Green Organisation Awards ceremony held recently at Hemmingways Hotel in East London. The competition was coordinated and sponsored by the Eastern Cape Development Corporation (ECDC), Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) in partnership with the Institute of Waste Management of Southern Africa (IWMSA).
Pivotal in the success of the awards was (seated) Viwe Biyana-CDC SHEQ unit head, (left to right) Andrea Shirley -CDC environmental project manager, Sinawo Mtongana-CDC SHEQ project manager, Qaqamba Mtebele-CDC SHEQ intern, Nkosikhona Nteleko-CDC SHEQ intern, Michelle Bakker-CDC Integrated Management System (IMS) coordinator and Yanga Mhlwana-CDC SHEQ intern.
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alprè Spring Water, in partnership with the Wildlands Conservation Trust, has planted 600 trees across six local Gauteng schools as part of Valprè’s commitment to uplifting the local environment and communities. 252 of the trees planted over the course of two weeks, originated from a recycling initiative Valprè recently held at the FNB Whisky Live Festival in Sandton. During this initiative, Valprè committed to planting three trees for every 10 of its PET bottles returned to the Valprè stand at the festival, tying in with the PlantBottle Packaging technology that Valprè’s PET bottles are made from. The breakthrough innovation in packaging is the first-ever fully recyclable PET plastic beverage bottle made up to 30% from plants. Through Valprè’s partnership with Wildlands Conservation Trust, the remaining 348 trees were donated to ensure each of the six schools would receive 100 trees. Speaking about the initiative Sharon Keith, marketing director for Coca-Cola South Africa says “Valprè Spring Water is a brand that cares for the environment and aims to educate consumers to make decisions that are in the best interest of our environment and its sustainability. We hope our latest project will inspire the youth to think about tomorrow”. Dr Andrew Venter, CEO of the Wildlands Conservation Trust echoes Keith’s sentiments stating, “Coca-Cola is a longstanding partner of the trust and have always been passionate about supporting our vision of ‘a sustainable future for all’. Wildlands are so grateful to have partners that are focused on sustainability as we cannot make a significant impact on our own.” Consistent with Valprè’s ethos of caring for the environment, the company planted trees at schools in the Refilwe Township in Cullinan and the Zithobeni Township in Bronkhorstpruit . The six schools that benefitted are Sedibeng Primary School, Chokoe Primary School, Laerskool Witpoort, Kgoro Primary School, Vezulwazi Primary School and Dan Kutumela Secondary School.
Marine disaster averted
Plastics|SA
S
wift collective action by members of the South African plastics industry and local environmental officials prevented what could easily have been an environmental disaster recently, after gale-force winds blew 23 containers off a cargo vessel, the Seroya Lima, as it was anchored off Port Elizabeth’s Bluewater Bay. The containers were dislodged and fell into the sea. Fortunately none of the containers contained any toxic or dangerous materials, but the polystyrene packaging that surrounded and protected several thousand bottles of ink cartridges for printers, were washed up along at beaches from Cannon Rocks to the mouth of the Sundays River. The Polystyrene Council heard about the strewn polystyrene and enlisted the help of the Sustainability Section of Plastics|SA, the mouthpiece of the local plastics industry, to coordinate the various role-players and local authorities involved in the clean-up operation. “As a signatory of the Global Declaration against Marine Litter signed by plastics bodies around the world, Plastics|SA also coordinates the International Coastal Clean-Up Day and therefore has the necessary networks and infrastructure in place to enlist the help of local authorities. As a member of Plastics|SA and its
Ink bottles washed ashore.
Sustainability Council, the Polystyrene Council takes the threat of marine litter very seriously, and realised the importance of swift action to prevent marine animals from ingesting any of the material,” says Adri Spangenberg, a director of the Polystyrene Council. All stakeholders in the area were informed and local authorities and SANPARKS quickly deployed salvage teams to assist the Working for The Coast members who were retrieving the material. Communities in the area also helped to collect the spilled material, which has considerable recycling value. Local
recyclers in the area were contacted and agreed to collect and buy the polystyrene. “The demand for clean polystyrene currently outweighs the supply, and recyclers are eager to get hold of the waste material which they recycle into a variety of different products, ranging from picture frames, clothes hangers and stationery, through to use in building and construction. Apart from providing a financial injection to the Algoa Bay community, the recycling of polystyrene in the area also creates much needed formal and informal employment opportunities,” says Spangenberg.
Eastern Cape glows with ‘green’ awards
E
very two years, organisations in the Eastern Cape are encouraged to participate in the Top Green Organisation awards. The prestigious banquet was a resounding success with truly green companies receiving platinum, gold, silver and bronze awards. Member of the Executive Council at the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), Sakhumzi Somyo, says: “The aim of these awards is to promote and recognise the achievements of organisations that comply with legislation and govern responsible environmental management practices in the Eastern Cape. It also provides a hub for fostering better relationships between government, industry, business and other organisations.” The president of the Institute of
Waste Management of Southern Africa (IWMSA, Dr Suzan Oelofse adds: “By competing, industries are enabled to tackle environmental management issues. This year’s entrants showcased excellent and innovative practices, resulting in maximising environmental resources while improving air quality, energy efficiency, water usage, and reducing, reusing or transforming waste into a resource.” VWSA, winner of the large organisation with high environmental impact category, was applauded for its approach to cleaner production and the degree to which its environmental targets are directed to all areas in the business. Coega Development Corporation (CDC) and Transnet National Port Authority (TNPA) Port of Ngqura shared first place in the medium size organisation with high environmental
impact category. CDC was recognised for its processes to ensure tenants comply with permit requirements. Port of Ngqura was commended for its commitment to fauna and flora management as well as being a poison-free port. The Waste Trade Company, winner of the medium-size organisation in the medium environmental category, was acknowledged for its extensive school and community programmes and dedication to environmental education. The Uitenhage Despatch Devlopment Initiative (UDDI) walked away with the first prize in the small organisation with low environmental impact category as a result of its impressive eco hub model. The model includes nursery incubation, vegetable and medicinal plant production, recycling of waste, compost making and arts and crafts. UGF Jan 2015 - 9
Update
Growthpoint’s ‘green’ ethos pays dividends
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rowthpoint Properties took home the award in the Infrastructure and Renewable Energy category for its Tshedimosetso House project at the 2014 Nedbank Capital Sustainable Business Awards for Infrastructure and Renewable Energy held in Johannesburg recently. A six storey building, Tshedimosetso House is located on the corner of Festival and Francis Baard streets in Hatfield, Pretoria. The building – designed for the Department of Communications (DOC) – is an innovative 4-Star Green Star SA Office v1 Design rated building. Norbert Sasse, CEO of Growthpoint Properties, says: “We’re committed to green building and working hard to establish ourselves as a pronounced ‘green’ property owner, manager and developer. Winning this award for a second year in a row only proves that we are definitely on the right track.” Growthpoint is at the forefront of the green building movement in South Africa. Beyond being part of the Green Building Council of South Africa (GBCSA) since it was established, Growthpoint is one of the select members of the council’s Green Building Leader Network – an elite network of members committed to supporting green building. Growthpoint leads the way in green rated buildings in the SA REIT sector with seven GBCSA Green Star SA rated buildings and 10 registered projects for the Existing Building Performance GBCSA Green Star SA rating. Werner van Antwerpen, who heads up Growthpoint’s Sustainability and Utilities division, says: “The results of an eco-friendly building like this don’t just benefit the planet, but also the pockets of our clients and investors too. Based on the Green Star energy modelling guide and energy calculator, there is a reduction of 59% in annual building CO2 emissions. Based on a rate of R0.4145/kWh, the estimated saving is R830,000 annually.” One of the building’s most innovative green features is the installation of the first solar façade in Africa. The façade comprises of integrated photo-voltaic cells in the fenestration which generate power from the 10 - UGF Jan 2015
sun. Apart from generating power from the sun, the panels also provide shading and insulation to the interior of the building. Tshedimosetso House also uses external thermal insulating composite system (ETICS) technology which insulates the building from the outside. This means that the walls have higher heat storage ability. As the temperature changes, the walls are able to both release and absorb energy to regulate inside temperatures. This technology also protects the walls against constant climate change, which not only reduces degradation, but extends building life too. This building has also been fitted with an innovative patented nano-technology solution. “Tropiglass has the ability to generate electricity from a flat sheet of glass, while still maintaining its transparency. This glass has the potential to be a renewable energy source that can also reduce heat, infra-red and ultraviolet radiation from entering the building,” Van Antwerpen says. Overall, great care has been taken to ensure every aspect of the daily running of Tshedimosetso House is environmentally friendly. Occupancy sensors automatically switch off lights in areas that are not in use and sub metering is used to monitor energy consumption throughout the building. Water collection tanks with a capacity of 36 600 litres were also installed for rainwater harvesting, as well as water efficient fittings and fixtures, including dual flush toilets and waterless urinals. Water meters linked to the building’s management system provide the building manager with insight on water usage levels. The paints and adhesives used in the interior are specialised low volatile organic compound (VOC) paints that emit lower vapours into the indoor air and the air quality is regulated by a complex mechanical system that is designed to ensure that carbon dioxide is monitored and controlled. “It is especially important to pay attention to what may seem like the small details as it sometimes the little things that could have the most impact on a truly sustainable development,” says Van Antwerpen.
Growthpoint Properties took home the award in the Infrastructure and Renewable Energy category for its Tshedimosetso House project
Picture (from left) Estienne de Klerk -Growthpoint properties executive director, Terence Sibiya, head of coverage and origination for Nedbank and Werner van Antwerpen, Growthpoint Properties, head of sustainability and utilities.
Delivering ROI on energy optimisation
Growthpoint
Growthpoint
E
nergy costs continue to increase year on year, placing additional pressure on organisations that are already struggling in a challenging economy. As a result of this and a growing trend towards greater efficiency and reduced carbon footprint, enterprises are increasingly looking towards energy optimisation initiatives to not only lower the cost burden of utilities, but to decrease the planetary impact as well. Reducing costs and energy consumption also needs to be balanced against business impact – operations should not be negatively affected by any energy savings projects. Significant time and money is often invested into such ventures, typically around replacing older equipment with more modern and energy efficient versions to provide savings without negatively impacting the business. When it comes to reducing energy consumption, there are several initiatives that are often employed as quick wins, such as the replacement of inefficient light fittings with technology such as CF or LED bulbs, which use less electricity. Other areas that can be addressed include the heating, ventilation and cooling (HVAC) systems, which often use legacy equipment and do not function optimally for the requirements of the building. Turning off lights automatically, installing motion sensors to detect when there are people in the building for lighting and HVAC purposes, and other automation tools, can also be deployed. In addition, organisations are increasingly looking at alternative energy solutions such as solar panels to help take away some of the cost pressure. However, implementing alternative energy without first optimising consumption is an unnecessarily costly task, and simply changing equipment without proper thought given to management and monitoring, can lead to organisations failing to realise full ROI from their energy optimisation initiatives. Leveraging the benefits of professional services as part of an energy optimisation project can help to ensure that this challenge is minimised. In order to ensure maximum returns from any energy optimisation or efficiency drive, it is vital to follow a comprehensive process that includes three important phases. Firstly an audit needs to be performed to establish the current usage. Obtaining sufficient information to establish this is not always possible from electricity bills alone, so it may be necessary to install Advanced Metering Infrastructure (AMI), which enables the real-time monitoring of consumption. Measurement is critical to management and to ensuring that energy savings objectives are met and continue to be realised in the long term. Information from this audit can then be used to establish a usage trend line, which will make it possible to determine where the areas of opportunity exist for leveraging savings. These opportunities should always be driven by a number of factors, including potential cost savings, ease of implementation and any rebates that may be available at the time. ROI is then determined by the savings that can be achieved from the energy efficiency intervention. Once these two phases have been implemented, professional services come into effect to ensure maximum ROI is realised in the long term. An energy partner offering professional services will continually monitor energy consumption and savings, creating greater visibility. Kevin Norris is Executive Director of Jasco Power and Energy UGF Jan 2015 - 11
Got a feeling 2015 is going to be a good year!
WELCOME TO THE
FM EXPO 2015 03 – 04 June 2015 Gallagher Convention Centre
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Lords View
LORDS VIEW – VENTURE PAR EXCELLENCE
Phase 4 development for a manufacturing client overlooking the green belt.
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I was privileged to witness the beginnings of Lords View Industrial Park. It is a thrilling exercise seeing “green” sustainability being brought full-tilt to an industrial site. This blueprint for Africa is going to be a marvel that must be replicated throughout the continent in order for everyone to reap considerable rewards and prove that ‘green’ is truly big business. By Terry Owen.
All impressions, pictures: Lords View
QUICK TAKE • ‘Green belt’ at centre of development • 130 hectares means thinking and doing big! • Long due diligence on the project • Centralised storm water attenuation • Turning old sand quarry into environmental marvel • State-of-the-art security, IT solutions
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am so used to heading off to the west at the Allandale Road exit (to Waterfall City, Steyn City et al) that I kind of forgotten that you can also head east! It’s a long time since I’ve been to the Chloorkop area, but that’s where I was off to and it was a pleasant surprise noting the development on “the other side”. Nothing, though, could have prepared me for Lords View Industrial Park. It is, quite simply, a stunning industrial development and although it is in its infancy, the embryo that is growing, is glowing! It is the first “green” industrial park that I have visited, and if this is the blueprint, bring it on! I was going to say “unfortunately” I visited on a rainy, windy and cold day, but on second thoughts, I think I was actually lucky to do so. It added to the mystique of the unusual. The wind cut into me on the site visit, thrilling my bones alive and heightening my senses to full alert. You have to have vision to envisage what the final product will actually look like, and, thankfully, I have. It’s a talent granted to me and I am thankful for it. Otherwise you may see the odd (amazing) building which has already gone up, vast pieces of empty land, some dams, incredible bird life and construction taking place on a large scale. The vision is imparted to me by Warwick Lord. It’s his park, his vision and gratefully, I can tap into it. “Can you believe this used to be an old sand quarry?” he asks, not really expecting an answer. He knows I find it unbelievable. I’m also too busy lost in the vista and the vision. His words reverberate with the wind as he waves his arm across the expanse and asks me to picture the future. I do, and get ready to find out how he has actually got to this point.
Artist impression of Phase 1.
approval. We found getting electricity very difficult to achieve. We had a long due diligence on the project before we actually purchased, and knew there would be many challenges to overcome. Nevertheless, it was definitely worth all the angst, and as we see the park taking shape around us, we knew that we had most definitely made the right choice. We got all our ducks in a row and just went for it!” That they are busy transforming what used to be a sand quarry into this stateof-the art industrial park is a miracle in itself. What is busy transpiring is most definitely “desolation becomes dynamic”. Transforming a sand quarry into an environmental marvel
was somewhat heavy-going. “Basically what happened is that the mariginal quarrying process scratched the surface of the land until some rock was found, and the process moved to another area to do the same. Part of the process of mining sand is that you wash the sand and that removes the tailings of very fine materials. This material is terrible for building on because it’s clay. We had to get involved in a lot of bulk earthworks to remove the tailings. It was really a massive job. We originally had a budget of, let’s say for comparison, R10 and it ended up being R25. Quite a jump in anyone’s language. “We naturally don’t have an x-ray machine to see what’s under the
Purely industrial
“The park is 130 hectares or a total of 1,3-million m², so it’s pretty big. It obviously doesn’t compete with Waterfall City or Steyn City, and it’s not meant to. We are very niche in that we are purely industrial. This is what this area needs, and exactly what we are providing. The park will encompass warehousing, storage and industrial activities.” Lord says that the project has been in development since 2009, and involved lengthy approval processes, many regarding environmental issues. “Energy was our most difficult 16 - UGF Jan 2015
Phase 2 artist impression of two 20 000m2 warehouses.
GreenView Lords building
Central storm water attenuation via the green belt is a Lords View feature.
ground, so a lot of the challenges were unearthed as we went along.” He says they were fortunate to be able to work closely with the first tenant, Unilever, whose buildings will be complete during the first half of 2015. They will be producing Magnum ice cream at their plant. “We actually launched our project on the back of Unilever. They partnered with us and enabled us to mainstream progress many of our plans for the park. “That they decided to go ahead, proves that their vision was similar to ours. You have to picture the original scene – it was bare land, trees and dongas and all the left-overs of the mining process. It
was pretty bleak. The mine was closed in 2000 before all the environmental legislation was really enforced. All that happened in those days is that you just applied for a mining closure permit and you just got it, with no conditions.
Well on track
“It really looked like the back of the moon, especially after we had cleared the site. All invasive trees and vegetation were cleared. What you are seeing now is Phase 1 to 3 with building happening on phases 1 and 3. Phase 1 comprises 25 hectares. Phase 2 is 13 hectares and another 12 hectares is allocated to Phase 3. We have a total of eight phases, and are well on track.”
Lord says that industrial parks are needed throughout the country and are necessary for the economy to develop. “With the dearth of manufacturing in South Africa, and the government’s firm intention to focus on this area, our project ticks a lot of critical boxes, and also explains why Ekurhuleni Council is such an eager participant. We see this development very much as a partnership with the amount of approvals and municipal interaction needed on a project of this size. “We’re selling a premier industrial park which is clearly illustrated by the extra wide roads, turning circles for super-links throughout the whole park. We’ve got central storm water attenuation as well as a myriad green energy projects. You can tell that this is something completely different the minute that you drive in through the magnificent entrance.” Lord says they were aiming for a very smart industrial park, and that is exactly what is being born. “Because of the scale of the project, we have had to do things on a macro scale. Normally, one would just try and micromanage one building. When you work on a park of this size, you’ve got the scale in which to examine the holistic picture and take into account how all your tenants are operating – for instance, their storm water must be ensured to flow into our storm water dams and there’s quite a few processes that must be undertaken to ensure that the water is clean storm water.” Understanding this process is especially important in an area like Gauteng, which is renowned for its spectacular, heavy rainfalls in the summer months. “We have to manage increased flowoff after heavy storms, and release it in a systematic way and we are doing this for our clients. We want it to be a very functional ‘green belt’, and the only way to do that is to organise and manage systems properly. It’s a macro solution. Let’s make it as user-friendly and pretty as possible, so we can get the aesthetic aspects out of it as well! Sustainable urban drainage systems are the order of the day in this park.
Centralised storm water attenuation
The original condition of Lords View once mining had been terminated.
“Regarding the stormwater attenuation, we have done that in a pretty unique way. Councils have rightly allowed that centralised attenuation takes place on site. The law currently does not allow for the building of an industrial site without attenuating storm water. That’s in place
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Close-up of Phase 4 manufacturing development for an international client.
not only to protect all the downstream sites, but also restrict flow-offs into rivers which could result in flooding. “We acquired this piece of land at a competitive price as there was a lot of rehabilitation that we had to do. We’ve also terraced the land so everyone has great views. We’ve paid special attention to building orientation and what we call ‘the low-hanging fruit of green energy’, trying to conserve the amounts of energy consumed, including PV panels on the tops of buildings. Unilever also has a great grey water plant on site. They plan to harvest rain water falling on their sitefor use in the production of ice cream.” He says that all the clients have bought into the ethos of Lords View – which is, let’s create the most sustainable industrial park that this country, and maybe this continent, has ever seen. “We are a trailblazer here, and we are very proud of that fact. It’s important for us and our clients in that it protects the future value. We obviously want the
Street-level view from Allendale Road.
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appreciation of these buildings to rise. How do we future-proof our assets? What we do is make them the most efficient and sustainable that they can possibly be using the latest technology and trends on a macro scale.” Lord shows me a building just outside the perimeter of the park – and it looks completely out of place, definitely a relic from another age. “That’s an eyesore of a building at the moment,” says Lord. “However, they wanted to be included in the park, so they are going to be undergoing a massive refurbishment in order to comply with our architectural and operational guidelines. We are succeeding most definitely in becoming aspirational for future development.” I point out that I amazed at the amount of birdlife there is already around the dams. Lord remarks that once the dams have been completed and the greening around them is in place, it will attract the right kind of birdlife, which apparently
is not the case at the moment. “We have got an integral approach here to follow the sustainable ethos that must encompass the entire park. We are going for a poison-free environment. We are putting in an owl hatchery and the Owl Rescue Centre will use that to house damaged owls. Rats and mice which have been trapped and not baited will be collected from the buildings daily and fed to the owls. Once the owls have been rehabilitated they will be released. We will put up owl houses and we’re hoping that the clients will also put them up. I know everyone is keen on having a hatchery in the park where wild owls can be seen up close.”
State-of-the-art
Lord tells me that they will be having fibre optic lines installed throughout the park, and have also gone very hightech and state-of-the-art on security. “We’ve really tried to step firmly into the 21st Century with this park. In fact, we have tried to have everything available digitally so a purchaser can virtually make a decision merely by studying the online information at www.lordsview.co.za. “With a park this size, you can think big and do big, and that’s proving a dream come true for me and my team.” Indeed, and if anything else, I have been uplifted and warmed by this incredible site, this dreamer who makes his wishes a reality and the fact that he has taken an old sand quarry site and turned into an industrial paradise. Is there really such a thing, you ask? Oh yes. Watch Lords Industrial Park grow and you will be amazed.
GreenView Lords building
Lords View Industrial Park at a glance Green electricity
The park is has a unique offering – green electricity. The conversion of methane gas released by a landfill site to electricity is a new concept in South Africa and brings the following advantages: • Taking advantage of a previously unutilised resource – waste material • Participation in a global effort to address climate change. • Global and local environmental benefits from reduced harmful emissions. • The end user in Lords View is able to not only have its building certified as green, but the development in which it is situated is now also a green development. • The benefits of having a dual electricity supply is that individual back-up generators are not required for those companies participating. • Back-up electricity, meaning that the tenants of Lords View will not be affected by rolling black-outs, for those companies participating. • Energy is created from a renewable source, leading to less dependency on fossil fuel.
Location
The site is situated on Allandale Road (K58) which gives excellent access to both Pretoria and Johannesburg and ORT international airport. The proposed K232 which will link Allandale and Marlboro will provide increased transport infrastructure and will allow for direct linking with N3/N12 ‘ring roads”. Chloorkop was selected for the site due to its centrality, its excellent road infrastructure and proximity to a large labour force. • The park security and access control. • Building plan approval and monitoring Property Owners Association during site construction. The Lords View Property Owners • Administration related functions. Association (LVPOA) is a section 21 company and is made up of the park Key sustainability elements owners. The Lords View Industrial Estate The following key sustainable elements will offer the advantages of freehold have dictated the development approach: title with the benefits of a managed • Storm water attenuation estate controlled by the LVPOA. onsite in quarry dams. The functions of the VPOA • Removal of alien vegetation for are the following: chipping and soil stabilisation. • The maintenance and irrigation • Introduction of wetland systems of the landscaping, central water and swales for filtration of feature and main boulevard to ensure storm water run-off. effective landscape management of • Greenbelt system established with all public and visible private spaces. indigenous flora and fauna.
• Removal of tailings for landfill stopping. • Development design criteria for sustainable construction and operations.
Layout principles
A double carriageway boulevard provides the primary entrance from Allandale Road. This terminates in a traffic circle which routes the flow of vehicles onto a ring road system that will circle the entire site on completion of all phases of development. Secondary roads are arranged in short cul-de-sacs or midblock connectors within the perimeter of the ring road. The road system incorporates a pedestrian network on one side of the road reserve. These routes connect to paths around the perimeter of the green belt system. UGF Jan 2015 - 19
Future View
BRAVE NEW WORLD
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In a feature from Frost & Sullivan, entitled Social Innovation, tomorrow’s world is examined. The figures are startling, the prospect somewhat daunting, although exciting. Urban Green File is presenting this paper in full in two parts in the knowledge that it makes for engaging and enthralling reading.
QUICK TAKE • Mega Cities on the march • Huge opportunities for innovation • By 2020, Mega Cities will account for USD21-trillion of global GDP • Significant economic divides in Mega Cities • Internet of Things will enable optimisation • Increasing desire for energy security • Shift in healthcare spending, policy reform • Market for smart cities will reach value of USD1,57-trillion by 2020
All pictures courtesy of Google
I
n a world riddled with economic uncertainty, increasing geopolitical asymmetry, and new business models that threaten to disrupt or even collapse individual companies or even entire industries, leaders find it increasingly challenging to plot a forward course. Challenges and monumental questions abound across virtually every industry. In healthcare, how will we provide quality care in a world of ageing populations for every patient globally in a sustainably affordable way? In energy, will we satisfy the growing energy requirements of a highly connected and power-hungry global population that is increasingly concentrated in urban environments entirely dependent on vulnerable power grids? In transport, will we empower our increasingly urbanised global population with door-to-door, multi-modal transport solutions that will be affordable for all our citizens? In information and communication technology (ICT), how will we manage the security and privacy of personal data with global digital content doubling every 18 months, to harvest the potential of big data? To meet these challenges, innovation is no longer a simple strategic option, it is a global imperative. But how will we innovate to meet these growing human and society challenges, with new business models, products and services that make sense for corporations and benefit each global citizen? UGF Jan 2015 - 21
Top 12 global mega trends
The best way to plot the course for this future innovation need is to start at the top: the global mega trends that are defining the future challenges and opportunities for society as a whole. Frost & Sullivan’s Visionary Innovation Group is constantly tracking mega trends: The top 12 transformative, global forces that define the future world with their farreaching impacts on businesses, societies, economies, cultures, and personal lives.
Top 5 trends shaping society and the need for social innovation
Starting from these 12 mega trends and asking simple questions about society’s biggest challenges in terms of demographics, technology, lifestyle expectations and basic needs, we can quickly see huge opportunities for innovation to meet these societal challenges. In fact, you could say many of these trends have been driving innovation for many years. However, while the past decade has been categorised by perhaps the highest levels of technology innovation in history, the years ahead will be categorised by the need for business model innovation and, in particular, the need to harmonise multiple types of innovation to address complex and interlinked global societal challenges. To build a better future for society, we will need to see the convergence of business innovation with the enhancement and
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improvement of social infrastructure to address these global mega trends. This is what Frost & Sullivan defines as social innovation and in this white paper we will explore the definition and quantification in more detail, as well as identifying the key success factors for the future. We will do this by taking a deeper look at the five mega trends that rise to the surface in terms of social issues being faced by the world. These five prioritised mega trends form the basis of this White Paper on social innovation:
Urbanisation; Smart is the New Green; Future of Energy; Future of Mobility; and Health, Wellness & Wellbeing.
Urbanisation: city as a customer
For the first time in history, 50% of the world’s population lives in urban areas. This will increase to about 56% by 2020, accounting for 4,3 billion people. This mass migration to urban areas is transforming cities into enormous economic hubs creating the phenomenon of “Mega Cities”. This extraordinary growth will lead to
Future View
core city centres or downtowns merging and combining with suburbs and daughter cities, thereby resulting in the further expansion of city limits to form Mega Regions, Mega Corridors and, sadly, even Mega Slums. Beyond 2020, more than 35 cities globally will grow to become Mega Cities by 2025 with Asia contributing nearly
18 Mega Cities. China alone will account for 72% of the Mega Cities in Asia. China will have one of the largest urban populaces with over 200 cities with populations of more than one million. An estimated 921 million people or 65,4% of China’s population is expected to live in cities, which is about 2,6 times
the United States’ total population. This is expected to result in the emergence of 13 Mega Cities (Mega Cities are defined as cities with a minimum population of 8-million and a GDP of USD250-billion in 2025), four Mega Regions, and seven Mega Corridors in 2030 in China. These Mega Cities are expected to contribute nearly USD6,24 trillion to China’s GDP in 2025. Cities of the future will also have multiple downtowns and witness transitoriented development. While less than 70% of New York’s population lives within a half-mile of mass transit, 80% of the housing unit capacity created since 2000 is transit-accessible. Mega Cities will also witness a redistribution of wealth which will create significant economic divides within cities. By 2020, the top 10 US cities will have about 90,2 million people, mostly concentrated on the east coast and representing 26,4% of the country’s population. By 2020, the country will have three Mega Regions with about 70 million people and generating more than USD3,89-trillion in GDP. Mega Cities will account for USD21trillion of global GDP (nominal) by 2020. Meanwhile, developing economies will contribute around 65% to 70% of global growth in the next 10 years and the 40 largest urban Mega Regions will account for 66% of global economic activity and about 85% of global technological and scientific innovation. Eventually cities, rather than countries, will be targeted as hubs of investment with each city becoming a unique customer with untapped opportunities in key industries such as mobility. Partnerships between city governments, business solution providers and academia will become the working model for most future city projects. Convergence between industries, players, technology and products is inevitable as the world itself converges into urban clusters.
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Smart is the new green
Green products and services will be increasingly enhanced or even replaced by smart products and services, with intelligent sensing technology and internet connectivity driving better optimisation. Enabled by the internet of things (IoT), machine-to-machine (M2M) communication and over 80 billion connected devices globally, digital intelligence will be the key driver of efficiency and sustainability across a vast array of applications. We will also see smart concepts leading to the growth in development of smart and sustainable cities with some cities even built from scratch, using the latest intelligent and green initiatives to reduce energy consumption and improve efficiencies in all facets of human life. These smart cities will be built on the eight parameters of smart energy, smart mobility, smart healthcare, smart technology, smart infrastructure, smart governance, smart buildings and smart citizens. We will see 26 such smart cities globally by 2025. Smart cities in the future will be measured on the level of intelligence and integration of infrastructure that connects the healthcare, energy, building, transportation, and governance sectors. The market for smart cities will reach a phenomenal value of USD1,57-trillion by 2020, with sectors such as smart governance, transportation and smart energy driving investment growth in this space. The pace of smart city market development will depend on how quickly companies converge and tap into each other’s industry value chains. Smart city market participants will assume one or more of the four main roles in the ecosystem: integrators (the end-to-end service provider); network operators (the machine to machine [M2M] and connectivity providers); product vendors (hardware and asset providers); and managed service providers (overseeing management/operation). Smart technology is also at the heart of the emerging concept of Industry 4.0, the so-called fourth industrial revolution based on integration of virtual and physical production systems. Huge opportunities will exist for sustainable and efficient manufacturing by 2020 and beyond. 24 - UGF Jan 2015
Future of energy
Powering the global economic growth, urbanisation and expanding populations in a sustainable manner is one of the biggest challenges and opportunities of the 21st century. Urbanisation will lead to cities consuming more than 75% of energy globally. Combined with an increasing desire for energy security at a country level, this has triggered a global dash to find the energy sources and business models for the future, including resurgence in nuclear power, newly exploited fuels such as shale gas and ongoing growth in renewable energy. Gas has become a game changer for the world’s energy demands and has increased the outlook for production across a wide variety of industries from railroads, shipping, local economies, and farming. In the US for example, shale gas will increase from 22,8% in 2010 to 46% in 2035 in the total gas production supply. Meanwhile Australia is achieving one of the fastest departures from fossil-fuel dependence and will have passed 22% generation from renewable energy by 2020. Meanwhile, nuclear power has faced
a number of challenges recently but will remain as a critical element of global power production and will account for 12% of the global fuel mix in 2020. Driven by its ability to provide low carbon energy at high efficiency, nuclear power will continue to present significant opportunities for players that can successfully address the dominant issues of safety and security. However, the global energy future will not be entirely dominated by fuel choices. Rising energy costs and an increasing focus on environmental performance has triggered innovations to manage energy efficiently through technologies such as smart grids. This has increased the world’s capacity in handling energy challenges as energy through smart grids offers more control and visibility to integrate distributed generation (solar panels, wind turbines, waste-to-energy, and so on) and manage demand more effectively, which results in cleaner, reliable and smarter energy. With these possibilities in mind, the European Union (EU) is currently considering a 40% energy efficiency target for Europe by 2030.
Recycling
With smarter energy services, smart buildings and homes will become a mainstream reality in two to three years, driven by the convergence of green and smart technology and the deployment of service-based business models based on energy savings. The creation of such smart buildings with energy management systems has also paved the way to innovative approaches to saving energy such as the vehicle to home (V2H) system that can supply electricity from a car battery to a residence for backup or peak power. The power is controlled through data communication processes between the vehicle, an EV charging stand and the home energy management system. With the technology now fully available, this type of digitally enabled solution to home energy management is poised to make a massive impact on the way we manage our homes in the next few years.
The future of mobility
Trends like connectivity and urbanisation will have a profound impact on personal and freight mobility and on the car/ truck and transportation models of the
future which will lead to new mobility business models and some exciting new products and solutions. In mobility, new and upcoming services such as multimodal mobility are already available in an effort to tackle the urbanisation challenges of congestion and pollution. Therefore, companies that look at cities as customers and position themselves as partners and solution providers to cities will benefit from new business and investment opportunities. Concepts like bike and car sharing, integrated door-todoor transport solutions, inter-modality, smart phone-based urban mobility solutions and automotive app store based connectivity applications will become a common site on our roads of the future, and even parking spaces. By 2020, it is expected that nearly a million parking spaces will deliver real-time parking information with the help of sensors. The role of technology will increase in delivering smart mobility services, as we see more intelligent transport networks, integrated fare structures moving towards personal credit cards and even mobile phones, to make the future of
connected living as seamless as possible. Future intelligent platforms will connect the car to numerous functions and devices at home and the office: For example, built-in mobile hotspots will enable services such as internet radio, video streaming, web browsing and access to content to be downloaded in all connected devices under the same network. Car infotainment systems embedded with 4G LTE and wireless hotspots will be more seamlessly integrated with home monitoring cameras and will give clearer visuals on the house while driving. In the longer term, autonomous vehicles or pods will serve our cities, such as the Personal Rapid Transit (PRT) systems seen in Masdar City in the United Arabic Emirates (UAE) and Heathrow Airport in London. The Amritsar PRT system in India will become the first commercially developed PRT scheme in the world, charging passengers to travel to the Golden Temple, which has been chosen so as to avoid polluting modes of transport, and due to its lightweight, cost-effective construction in an area with little space for alternative modes of transport; this could prove to be a viable sustainable future mobility solution in several cities globally. These sustainable mobility solutions would also include electric vehicles. Globally, total electrified vehicles will reach over 12 million units by 2020. In the near future, high-speed rail will connect not only cities and countries but also continents. In about 15 to 20 years from now, one will be able travel seamlessly from London to Beijing using the global high-speed rail network. In the period 2010 to 2020, more than USD600-billion will be globally spent on high-speed rail projects with over 70 000km of high speed rail track in use. High-speed rail, in addition to serving as a key connecting node, will also be a driver of economic growth. In fact, investments in high-speed rail have been estimated to have potential to add 2 to 3% to countries’ GDP growth from wealth and job creation. It will also augment growth in multi-modal freight logistics offering what is essentially a more sustainable alternative to road transportation and a faster delivery time than the typical air-road mix. This would be additionally driven by global urban logistics spending which is expected to set itself to reach USD5980trillion by 2020, accounting for 46% of the total logistics spend. Road freight transport UGF Jan 2015 - 25
will also dominate – logistics will account for over 35% of urban traffic in 2020. Overall, with the evolution of connectivity and convergence, mobility in 2020 will be more intelligent, interoperable, and more integrated compared to what we see today. The framework of transportation solutions within the city and innovations within and outside the car in the next decade will be primarily driven by a huge spectrum of factors right from customer’s changing needs to even the geographical spatial pattern of the city. For an average commuter in 2020, mobility will be completely driven by connectivity, making his or her connected living within the home, work, city and even in the car completely seamless.
Health, wellness and wellbeing
The world is ageing rapidly and most countries are not prepared to support their growing numbers of elderly people. In 2010, people above the age of 65 accounted for 8% of the total population which is expected to reach 10% (840-million people) by 2025. Although the surge seems negligible, the two-percentage-point increase implies a key shift in demographic composition for a few countries. Close to about 580 million or 70% of this above-65 age group will be concentrated in about 15 countries, mostly in North America, Europe, Japan and South Korea. This demographic data implies a shift in healthcare spending and policy reform – the two main areas that will he hugely impacted by this trend. According to OECD, the above-65 age group represents 40-50% of total healthcare spending and incurs three to five times the per capita healthcare costs than those under 65. Access to healthcare, insurance coverage, pension reforms, retirement policies and adequate income for people above the ages of 65 will form the premise of future policies. Within healthcare, the focus will shift from treatment to prevention with emphasis on predictive diagnostics and constant wellness. Total global healthcare spend on treatment will reduce from 70% in 2007 to 56% by 2020, through growth in spend on prevention, early diagnosis and monitoring. With smarter drugs, virtual hospitals, and cyber documents, the healthcare industry is poised for a radical change, with information technology taking the forefront in research and 26 - UGF Jan 2015
development, diagnostics, and monitoring. Various innovations in the healthcare industry are expected to revolutionise the medicine arena, with spending on healthcare segments – medical imaging, pharmaceuticals, medical devices, and life sciences – to grow at 6,4%, reaching USD2,10-trillion in 2020. Nanobots, combination devices, electroceuticals, and genome sequencing are poised to transform the global patient care arena by enabling complex tasks on a microscopic scale and providing tailored treatments to patients’ needs. The key to this healthcare paradigm shift will be innovation targeted toward individual power patients. While patients in the developed world grow increasingly impatient with slow moving regulatory and healthcare provision environments, the developing regions will drive new business models tailored to meeting specific patient needs in novel and cost-effective ways. For example, an eye care clinic in the impoverished Aravind province in India is driving a new, high-throughput surgical model for cataract surgery where the one third of patients who can afford to pay for procedures cover the costs for all procedures, thereby making a significant dent in blindness from cataracts in the region.
“The world is ageing rapidly and most countries are not prepared to support their growing numbers of elderly people.”
What this means for society
These five mega trends will define our global societies in the future. That means defining both the opportunities for future advancement, and also the social challenges they will present. For example, urbanisation is creating a need for sustainable cities where water stress and sanitation need solving; smart technology will create an opportunity for our growing cities to operate far more efficiently than they do today using inter-connected sensors and data analytics; health, wellness and wellbeing is bringing mind, body and soul to the centre of connected healthcare; the future of mobility will see e-mobility redefine personal transportation; and the future of energy is bringing innovations such as smart grids and demand response to tackle our need to use energy more efficiently. Put simply, the social innovators will be those that can directly address the challenges posed by these mega trends and deliver value to all of the stakeholders in our global future.
NEXT ISSUE
In the second half of this white paper, we will go on to define social innovation in more detail. We will also tackle the crucial questions surrounding the size of the social innovation opportunity, what it takes to deliver it successfully, the business models of the future, the stakeholders, and the areas and sectors that are poised for the highest growth. Social Innovation to answer Society’s Challenges © 2014 Frost & Sullivan www.frost.com
UGF Jan 2015 - 27
Renewable Energy
LET THE RIVER RUN! The Neusberg project on the Orange River head reached financial closure when it was found that the risk to water flow was too great. To ensure flow to irrigation canals and to a fish ladder would not be compromised by offtake for the hydroelectric facility, a failsafe system was added, reports Blake Wilkins.
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T
he Neusberg small hydroelectric project, South Africa’s third small hydroelectric project, is being developed near Kakamas in the Northern Cape under the national Department of Energy’s (DoE) Renewable Energy Independent Power Producers Procurement Programme (REIPPP). It forms part of the South African government’s strategy to supply 17 800MW of “green” electricity through renewable energy by 2030. At an additional investment of R15-million, the Kakamas project will feature an advanced radial gate that will introduce triple redundancy to safeguard water flow to irrigation canals and to the Orange River. Despite no objections on environmental grounds, this extraorindary step was taken when the then Department of Water
Affairs (DWA, now Department of Water Affairs and Sanitation – DWAS) informed Hydro SA, the developer of the scheme, that the project could not proceed because of concerns about how the off-take of water to the hydroelectric project would impact on water flow to irrigation canals serving the extensive grape-growing sector as well as impacting negatively on fish movement in the Orange River. Niel Theron, managing director of Hydro 1 SA, says the DWA plays a key role in various elements of hydro electric project design because water is such a scarce resource. “If water flow is negatively impacted by a project such as the Neusberg small hydropower project, farmers in the region could lose billions of rands. When the DWA informed us of the decision, we had already invested R60-million in the
“If water flow is negatively impacted by a project such as the Neusberg small hydropower project, farmers in the region could lose billions of rands. When the DWA informed us of the decision, we had already invested R60-million in the project, the bid had received “preferred bidder” status on the project and we were on the verge of financial closure.”
QUICK TAKE • Water flows to irrigation canals safeguarded • Orange River not running dry • Enticing fish to the fish ladder • Neusberg necessary, will allow “green” energy
CVS
One of several canals feeding water from the Orange River to farmers in the Kakamas area can be seen as it diverts around the Neusberg powerhouse currently under construction. The large head race canal that will carry water to the hydroelectric station is under construction to the right of the irrigation canal.
project, the bid had received “preferred bidder” status on the project and we were on the verge of financial closure.” Theron says Hydro SA had full appreciation of the risks that farmers could face if there was little or no water in irrigation canals in the Kakamas area, and Hydro SA invested an additional R15-million to safeguard water flow to irrigation canals. “The extra investment in the radial gate and telemetry systems at the inlet canal is justified because the risk of failing to supply water to farmers is a risk not worth taking. “In terms of environmental impact, the main issues weren’t so much landrelated as they were to do with what the environmental flow of the Orange River ought to be to ensure the continued passage of fish up and down the river.”
He points out that river flow had been heavily modified in 1994 by the commissioning of the Neusberg weir and by the extent of agriculture along the banks of the river. Embankments had been constructed along the river banks to keep out flood waters. In addition, flow is controlled through releases from two upstream dams, a system that also modifies the river. “It is interesting when one undertakes an environmental impact assessment to note that historically, prior to the construction of the weir and upstream dams that the Orange River used to run dry on occasion in the low flow season. Now, flow measurements need to be made with the river in its altered state as against its natural state.” Theron mentions that an initial assessment of the location of the power
house envisaged construction higher up on the river’s northern bank but this idea was abandoned because of the location of a fish ladder on the opposite side of the Neusberg island below the Neusberg weir. A year later, the consulting engineers reverted to the original idea to safeguard the flow of water to allow the passage of fish up and down the fish ladder on the southern side of the river.
Aquatic study
“Our aquatic study indicated that it was preferable to have a low flow over the Neusberg weir which has three levels – low, medium and high. The fish ladder is at the low notch and the objective is to entice fish to the fish ladder on the southern side by ensuring that there is a sufficient flow of water even in times of low river flow. UGF Jan 2015 - 29
CVS
Hydro 1 SA extended the head race canal transporting water to the Neusberg hydroelectric powerhouse by 500m to ensure that the flow water returning to the Orange River downstream of the powerhouse would not distract fish from swimming upstream to a fish ladder further up the river.
“Our major objective was, therefore, to ensure that the fish ladder has an attraction flow at all times, apart from the need to have water flowing into the Neusberg irrigation canal. “The radial gate which we will install at the inlet canal will facilitate via telemetering the ability to read remotely the flow of water over the Neusberg weir at all times. If the low weir is wet, and the irrigation canals have full supply, then the plant will be able to commence drawing water to a full supply of 90m3/sec. The radial gate will close automatically if there is no flow over the low weir and this will result in the turbines closing down. “In addition to the radial gate we will install CCTV although we had already planned to have in place a series of alarms warning of low flow. The local Kakamas Water Users Association will receive the low water warning alarm and will also be able to see live (in its office at Kakamas) what is happening at the weir via the
30 - UGF Jan 2015
CCTV. Association members will have the option of getting into their vehicles and going on site to check the weir and activate a stop button to close the radial gate.” Theron says the radial gate design has a failure risk of 1:1 000. With triple redundancy in place, statisticians briefed by Hydro 1 SA have calculated the risk of failure as 1:126 000.
Fish ladder
Turning to water flow requirements for the fish ladder, he says it was necessary to extend the hydroelectric project’s head race – the canal that carries water from the river to the power house – by 500m to ensure that there will be a sufficient flow of water to the opposite side of the river where the fish ladder is located. “The amount of additional power generated by the uprated head gained by the extension of the head race canal is just sufficient to cover the cost of constructing a further 500m of head race canal.
“Most hydroelectric plants lose between 2 and 6% of the power generated because of inefficiencies before the power arrives at the transmission line. Those power losses are attainable when one is able to generation 100% of a plant’s capability but this is rarely the case as generating capacity fluctuates according to high and low seasonal river flows. In the case of the Neusberg project the loss will be an estimated 3%. “We will run the generating plant at its full load capacity of 12,2 megawatts (MW) instead of the 10MW cap set by the Department of Energy (DoE). This will be done to negate transmission losses and to enable us to supply the 10MW cap more consistently at the metering point some 20kms away. We have calculated that we will have maximum river flow of 90 cumeg for about 60% of the year but by increasing our maximum load capacity from 12,2MW, we have an improved yield in power of 10%. The higher yield was an important factor in making this project feasible taking in account the extra expense of constructing an additional 500m of head race canal.”
Impact studies
An assessment of environmental impacts of the proposed Neusberg small hydropower project was undertaken by various specialist studies. These included aquatic ecology impact assessment (Rivers for Africa eFlows Consulting), heritage impact assessment (Kimberley Museum), botanical impact assessment (Bergwind Botanical Surveys) and palaeontology desktop study (Natura Viva). Under the heading botanical, the study found that construction of the aqueduct and new access roads, the turbine hall and the power distribution lines would have low impacts. The impacts on fauna, including avifauna and aquatic, were also low while the visual impact of the development
Piet Wessels
Blake Wilkins
Renewable Energy
Niel Theron, director of Hydro 1 SA, developer of the Neusberg small hydro project at Kakamas in the Northern Cape.
An environmentally-driven need to ensure that a sufficient flow of water is maintained to the fish ladder on the Orange River and to canals feeding farms in the Kakamas area led to Hydro 1 SA investing a further R15-million in the Neusberg hydroelectric project.
was classified as “very low”. All these classifications indicate that such impacts would be achieved “with mitigation”. The study indicates that “the proposed hydropower station does not consume water, ie all water which enters the proposed hydropower stations would be returned to the river”.
Non-consumptive
Reinforcing this message, Theron says: “It is very important for the man in the street to realise that hydropower generation is non-consumptive – our hydropower projects neither consume or alter the quality of water in any way. This has been proven time and again, and is accepted by the DWAS as the competent authority. “Observers tend to perceive mechanical things in a certain light. However, the Neusberg plant is designed in such a way that water is never in contact with any equipment that allows contamination of any sort. Water evaporative losses in the 1,7km head race canal will be far lower in the canal than in the river because of the confined surface area of the canal.” Establishing the site for building the Neusberg small hydroelectric power project took place in June last year and commercial operation of the hydroelectric plant is set for January next year. Construction of the 1,7km head race canal, tail race canal and power house is being undertaken by CSV Construction of Cape Town. The power house was handed over on due date at the end of June to provide access for the installation of the generators, turbines and associated equipment. Andries Erasmus, CSV Construction’s
environmental officer on the Neusberg site, says all civils work is being undertaken in terms of the National Management Environmental Act and a specific life-cycle environmental management plan developed for the project by Aurecon. Regular inspections are undertaken by an Aurecon-appointed environmental control officer who undertakes monthly audits to check that CSV is complying with documented requirements. In terms of botanical rehablitation requirements, CSV had to replant 33 trees by April this year and is required to plant a specified number of trees when project comes to an end. A permit was granted for the removal of up to eight camelthorn trees but in the event only four such trees were moved. Erasmus says CSV has on-site staff to deal with contamination with soil from small spills being removed and stored in a bonded area while spill kits are used to contain larger spills which are transported to Cape Town for disposal by Wasteman. Drip trays are used under all equipment. Daily dust suppression is undertaken while waste is managed with domestic and hazardous waste being seperated. Hazardous materials are stored in bunded areas. The local municipality removes sewage from site every two weeks. Water is supplied to the project in terms of a permit issued to the farmer on whose land the project is being undertaken. Various no-go areas on the work site have been demarcated, including a heritage area and the locations of various protected trees. The workforce has been briefed to avoid.
“The proposed hydropower station does not consume water...all water which enters the proposed hydropower stations would be returned to the river”.
UGF Jan 2015 - 31
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