25 Degrees in Africa

Vol 6 Nr 4 2011 – R49

Country profile:

South africa

LUKOIL

sets its sight on West Africa

Update on

fukushima

Contents cover story Russian oil and gas company, Lukoil is looking for growth outside its home and has set its sights on West Africa. On 20 July the company announced that it had acquired a 45% stake in deepwater Block SL-5-11 offshore Sierra Leone from the private Nigerian explorer Oranto Petroleum adding to its acreage in Ghana and Côte d’Ivoire. Read more about this on page 18.

Enervations

CDM

4 Programmatic CDM project

32 Paulownia

5 More than a breaker

34 A financial perspective on environmental issues

Country profile 8 An overview on South Africa

perspectives 36 Spare some energy

Climate change

37 ISO energy-management standard published

12 COP 17 in Durban 14 KYOTO Protocol

Electricity Oil and gas

39 Dark future for Tanzania

16 Shale gas

40 Financial report

18 Lukoil sets its sights on West Africa

Energy efficiency 44 Plans set in motion to

Renewables

increase electricity capacity

20 New photovoltaic

47 ata Awards online

21 CO2 storage challenges

48 Technology and market changes

24 CSP: bigger isn’t

necessarily better

Instant update Nuclear energy

50 SESSA appoints

26 Update on Fukushima

29 SA’s perceptions on

51 Bursary opportunity

51 Joint African support office

Nuclear must change

permanent ombudsman

52 Introducing our new

Biofuels

team members

30 First-ever transatlantic

biofuels flight

31 The future of bio-oil

Energy events 53 Energy events

www.25degrees.net

Publisher:

Media in Africa (Pty) Ltd www.mediainafrica.co.za • www.25degrees.net International Contact Information: Tel: +27 12 347 7530 • Fax: +27 12 347 7523 E-mail: marlene@25degrees.net Postal Address: PO Box 25260, Monument Park, 0105 Republic of South Africa

Launch of new energy management standard It’s with great excitement that we recently saw the launch of a new energy management standard ISO 500001. The standard is not to be confused with a technical tool such as a datalogger, but rather is a standard which stipulates a set of interlinked processes, practices and procedures driven by a clear policy, with the aim to reduce energy costs. According to people in the know in the industry, companies embarking on an ISO 50001 drive will be financially better off, will curb electricity demand and will be recognised locally and internationally for their efforts.

Energy management is becoming important in business operations and the need for it will increase as electricity costs and costs of operations continue to rise.

Measurement and verification is the start of reigning in your energy use and the pretext to the planning and implementation of a successful energy management plan.

A standard will bring into line the various processes and clarify the necessary steps.

Read more about the newly launched ISO 50001 on page 37

Marlene E van Rooyen

Physical Address: First Floor, Unit G, Castle Walk Corporate Park Cnr Nossob & Swakop Streets, Erasmuskloof Ext. 3, Pretoria, Republic of South Africa

The 25º In Africa team: Editor Marlene van Rooyen Tel: +27 83 327 3746 E-mail: marlene@25degrees.net Founder Schalk Burger (1943 – 2006) assistant business unit manager Alida Edwards Tel: +27 82 325 6617 E-mail: alida@25degrees.net Advertising sales professional Shannon Pringle Tel: +27 84 619 8023 E-mail: shannon@25degrees.net Journalist Theresa van Tonder – Senior Journalist Tel: +27 82 325 0332 E-mail: theresa@25degrees.net Nichelle Lemmer Tel: +27 72 209 2040 E-mail: nichelle@25degrees.net Freelance Journalists Dave Soons Adrienne Brookbanks business unit coordinator Zuerita Gouws Tel: +27 12 347 7530 E-mail: zuerita@25degrees.net Imbewu Sustainability Andrew Gilder – Climate change and CDM legal specialist

25º in Africa: Africa’s Independent Energy Publication covers the whole gamut of energy sources, production needs, environmental impacts and the current issues surrounding them.

25º in Africa’s mission is to disseminate information on any and all energy-related issues, with an emphasis on developments in Africa and the impact on the environment.

The focus of the publication is on energy, but it carries related information to provide a broad, unbiased and independent view of all the pertinent issues.

Copyright: The copyright for all content of this publication is strictly reserved. No part of this may be copied in part or fully without the express written permission of the editor.

Disclaimer: Views expressed in this publication are not necessarily those of the publisher, the editorial team or its agents. Although the utmost care is taken to ensure accuracy of the published content, the publisher, editor and journalists cannot be held liable for inaccurate information contributed, supplied or published.

Contributions: The editor welcomes contributions and encourages items of interest to our readers in the energy sector. All advertisements and editorials are placed solely at the discretion of the editor and subject to prior approval. 25º in Africa reserves the right to edit, withhold or alter any editorial material to complement the style of the publication.

Subscriptions: 25º in Africa is published bi-monthly as a print publication. 25º in Africa is also available as a free web download. For more information, please contact the editor or editor’s assistant on Tel: +27 347 7530 or visit us on www.25degrees.net.

Publishing Manager Liezel van der Merwe Financial Manager Fanie Venter Design and Layout Ilze Janse van Rensburg Accountant Gerda Bezuidenhout E-mail: gerda@mediainafrica.co.za Proofreader Elizabeth Kruger Reproduction & Printing Business Print Centre

EN ERVATI O N S

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ENERVAT IO N S

First household programmatic CDM project

launched in SA An energy-saving scheme, designed to notably reduce the usage of electricity, gas, paraffin and wood fires for cooking in households across all South African communities, was announced by Wonderbag in partnership with Frog and Microsoft South Africa in June 2011.

positive social impact of mobile technologies, the mobile, as well as webbased administration and reporting applications, were donated by Frog and Microsoft to help collecting the data we need to generate carbon calculation reports,” says Flanagan.

Valerie Flanagan of Wonderbag comments: “This world-first programmatic Clean Development Mechanism (CDM) project, registered with the United Nations Framework Convention on Climate Change (UNFCCC), puts South Africa at the forefront of audited household-level carbon reduction.”

Mobile technology was cleverly combined with cloud-computing to automate the carbon accounting, thereby adhering to the stringent offset targets set by the UN. Emile Rossouw, senior business development manager at Frog, said: “Data is collected remotely via a mobile USSD application on an agent’s GSM phone. All the data is then aggregated, centralised and securely hosted on Microsoft’s Azure Cloud platform in their Western European data centre in Amsterdam. From there the data is available via a Web interface to authorised Wonderbag representatives, sponsors and partners. The data is represented in various formats, from simple grouped lists to complex usage and carbon-savings reports. Finally, the findings are sent to the UN to receive carbon rebates.”

The programme, which involves local government, environmental programme managers, mobile technology and a “Cloud-based innovation” from Microsoft, introduces a new way of measuring and reducing the carbon footprint of households. Investment generated from the trading of carbon credits ensures the programme’s sustainability.

The Mayor of Newcastle, Afzul Rehman, was also at the launch, which was held at the Microsoft’s head office in Johannesburg. Rehman explains that he incentivised members of the community to use their Wonderbags by distributing them free of charge to citizens who have paid their municipal accounts for three months consecutively.

“Once the Wonderbags are in full use, our financially stressed citizens will use less power, putting much-needed money in their pockets and giving our municipality the status of becoming an environmental leader in local government,” says Rehman.

Wonderbag heat-retention cooking bags can reduce the electricity that they use for cooking with as much as 50%.

Mobile technology tracks consumer data

Flanagan said that once the carbon-funding cycle kicks in, the Wonderbag programme will mushroom. “Microsoft and Frog’s involvement is valuable as we now have a scientific tool to keep in touch with the Wonderbag users and track their usage. For every Wonderbag in use, you can claim one

The Wonderbag team joined forces with the Newcastle and Umzunduzi (Pietermaritzburg) municipalities in KwaZulu-Natal, and Riebeeck-Wes and Riebeeck-Kasteel in the Western Cape’s Swartland district, to offer residents fully subsidised Wonderbag heat-retention cooking bags that can reduce the electricity they use for cooking by as much as 50%.

The recording of traditional cooking methods and time spent cooking, offset against the time and energy saved using the Wonderbag, enable sample surveys that easily quantify the carbon emissions reductions. At the same time, field agents receive a valuable additional income, while they continue to champion the cause. The beneficiary households, in turn, save money to spend on critical needs, such as food, clothing and school supplies, and municipalities experience much-needed relief on their energy networks.

“During our road shows, we recruit community field workers, who use a simple mobile application to record the details of all new Wonderbag users directly onto our database via low-end mobile handsets. Amplifying the

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tonne of carbon every two years, provided you can prove who the users are, what energy source they use for cooking and for how many people.

Thanks to these tools, we can now validate our Wonderbag carbon claims,” concludes Flanagan.

For more information, visit www.naturalbalancesa.com, to which full acknowledgement and thanks are given.

EN ERVATI O N S

More than a breaker – it’s a breakthrough!

With the accent on energy saving being of paramount importance in almost every country in the world, and in South Africa in particular, it is fitting that Schneider Electric South Africa, a global specialist in energy management, has announced its MCCB Compact NSX 100-630 A, an optimum measurement and communication solution that meets energy-efficiency challenges through optimised energy consumption, increased energy availability and improved installation management.

Written by Dave Soons

“For the first time, customers can monitor both energy and power, offering new performance in a remarkably compact device. The Compact NSX is innovative and incorporates monitoring and communication functions, from 40 amps upward, combined with perfect protection,” says Nelen Govender, product manager for low voltage power at Schneider Electric South Africa.

The device’s roto-active contact-breaking principle provides better limitation and endurance performance, offering very high breaking capacity in a very small device and exceptional fault current limitation for extended system life. It also offers a reduction in installation costs and users can expect to achieve a 30 percent saving.

“To keep costs under control and ensure service continuity, relevant information must be available in real time and the device’s kilowatt-hour meter helps to optimise costs and their allocation. The harmonic distortion rate shows the quality of electrical supply. In addition, alarm notification secures operational control and maintenance planning, while event logs and

Users can customise alarms for all parameters, assign them to indicator lights, choose display priorities and configure time-delay thresholds and modes.

New performance levels improve application targeting as follows: • 25kA – standard low short-circuit level applications, for example in service businesses.

• 36-50kA – standard applications, for example in industrial plants, buildings and hospitals.

• 70-100kA – high performance at controlled cost.

• 150kA – demanding applications, for example in marine.

tables – activated continuously – ensure that the installed equipment base operates correctly, so energy-efficiency is maximised,” he explains.

Installers can mount and wire Compact NSX in the same way as the Compact NS, which makes engineering for a retrofit or extension simple.

Additionally, the integration of help software – for parameter settings and switchboard installation – eases design. The device’s Limited Torque Screw (LTS) system also ensures proper installation of the tripping device, whilst its transparent sealed flap protects access to tripping device switches and prevents settings from being changed.

“The Compact NSX meets the requirements of IEC 60947-4-1 standards for the protection of motors. It is well-adapted to motor-starting solutions up to 315kW at 400V, providing protection against short circuits, overloads, phase unbalance and loss. Additional protection systems can be set up for starting and braking with the motor running, reverse-braking, jogging or reversing in complete safety. Also, used in conjunction with a Schneider Electric contactor, the Compact NSX complies with the requirements of so-called type 2 coordination,” says Govender.

“It is really simple to use,” says Govender. “Users can customise alarms for all parameters, assign them to indicator lights, choose display priorities and configure time-delay thresholds and modes. The continuously activated event logs and tables also enable users to ensure that the installed equipment base operates correctly. Plus, pre-wired connectivity and plugand-play interface modules allow for easy integration with communication networking.”

The device’s integrated monitoring is owed to a micrologic electronic tripping device with next-generation sensors, and its originality lies in how the Compact NSX measures, processes and displays data, either directly on screen, on the switchboard front panel or via a monitoring system.

Schneider Electric Isabel Mwale Tel: +27 11 254 6400 E-mail: isabel.mwale@schneider-electric.com Website: www.schneider-electric.co.za Vol 6 NR 4 2011

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ENERVAT IO N S

Written by Dave Soons

Securing your

home when you are away Given the crime statistics in this country, anyone going on holiday and leaving their most precious assets and valuables behind in an unoccupied home is often left wondering about how safe these belongings actually are.

The truth is that most burglars tend to operate on an opportunist basis – they are more likely to pick a home where their movements will be less easily detected, and an unoccupied home provides the ideal opportunity.

Here they will be able to break in at their leisure, take what they want, load it up and leave without being detected. Traditional security measures such as burglar bars, high walls and fences, security gates and alarm systems are all great deterrents, but lighting is another security measure that often doesn’t get its dues. Installing a home security lighting system could mean the difference between you becoming a victim of a home burglary or not.

Melissa Davidson from The Lighting Warehouse says: “Lighting can be a very effective means of scaring off potential burglars. A tried and tested method is making it seem like the homeowners are at home, even when they are not. Those who perpetrate breaking in and committing crimes will be less likely to target a house that has lights on and will usually rather opt for houses that are dark and obviously unoccupied.”

She says that in this regard, most South Africans are well versed on the benefits of installing outdoor security lights, but that a full security lighting system has to comprise both indoor and outdoor security lighting. “The majority of South African homes have some kind of outdoor floodlight, usually with a motion sensor, which is a great security aid. However, what about the interior of our homes – after all, it is here where we are most vulnerable,” she notes.

Davidson says that, contrary to popular belief, indoor lighting systems are not the sole domain of expensive, hi-tech home automation systems, and in fact, simple yet effective indoor lighting systems can be installed in homes quickly, easily and inexpensively.

As an example, take the Twilight Switch system, which is available from The Lighting Warehouse for ZAR599,95 – this innovative wireless system can automatically turn several lamps on at sunset, and off after a preset time, everyday, 365 days a year.

Operated wirelessly and radio-controlled, with an automatic and a manual mode selectable, the intuitive Twilight system comprises a Twilight light sensor triangle, three Twilight plug-in receiver switches and a Twilight remote control for manual operation.

“The beauty of the system is that it automatically that it adapts to the seasons and it is suitable for all “plug-in light fittings” up to 1 000 watts per receiver switch. As there are three separate receiver switches in the pack, each switch can be used in three different rooms or areas at the same time.

For example, one switch in your lounge and dining room, one in the

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entrance/hallway and one in the main bedroom. It provides a perfect simulation of an inhabited house by turning regular floor and table lamps on when daylight fades, and at the end of the evening, by turning these lamps off at a preset time. And then later, briefly turning these lamps on again for short periods of time at random intervals,” explains Davidson.

So how does it work? You simply insert the receiver switches into the wall mains outlet sockets and connect the plugs of the selected floor or table lamps to the receiver switches. You then place the light sensor on a window ledge facing towards the outdoors, but not in direct sunlight and not near bright lights.

At sunset, the light sensor will recognise that it is getting dark and transmit wireless “on” signals in a sequential way to the three receiver switches, turning the lamps on. Then, at a preset time at the end of the evening, the light sensor wirelessly transmits “off” signals, turning the lamps off.

It can also be set to turn each lamp on randomly for 10 minutes throughout the night.

The independent handheld remote can also be used to turn the lights on and off from a distance, saving you the trouble of having to get up and turn them on manually. The light sensor and the remote control can operate with three Twilight receiver switches within a 25m range in open air, although structural walls between rooms could lessen this range.

Davidson says: “Aside from added security, the Twilight Switch also makes your life easier when you’re at home. You won’t have to go around to each lamp in your home and manually turn them on and off. Also, you will never have to arrive home in darkness again – instead all the necessary lights will be switched on to welcome you when you get back.”

Furthermore, Davidson says that it is a green solution, as with the Twilight Switch homeowners needn’t leave their main ceiling lights (chandeliers and pendants) on while they are away for the evening or away on holiday.

Whilst turning CFLs (compact fluorescent lamps) on and off repeatedly is not recommended as it cuts short the life of the CFL globe, with a Twilight Switch the interval duration of the on-and-off function is generally a lot longer, thus your CFL globe should not be harmed. By using energy-saving globes in your floor and table lamps together with the Twilight Switch system, you can contribute to a greener world by reducing energy costs and CO2 emissions,” she concludes.

The Lighting Warehouse Tel: +27 861 54 44 84 64 Website: www.lightingwarehouse.co.za

EN ERVATI O N S

The transport industry’s future will be electric. An alternative to petroleum vehicles is no longer just a drawing on a sketchboard or a far-fetched concept. Today various car manufacturers venture into the development of electric cars and some models like the Nissan Leaf can already be seen filling European streets.

Electric future to light up transport industry Written by Nichelle Lemmer The NV200, a light commercial vehicle that will be revamped into an electric car.

Infrastructure for electric car drivers is also on the fast track of development as a network of charging points and stations for electric cars will be launched across greater Manchester in England soon.

Manchester Electric Car Company jumped at the opportunity to develop and launch the first of 300 charge points and six stations, known as pod centers to recharge electric cars, with the help of business partners.

The pod centers will be located at Manchester Airport, the Manchester city centre, the former Roxy Cinema site in Oldham, Media City UK in Salford Quays, Stockport and the Trafford Centre, with more to follow. Manchester Electric Car Company’s medium-term plan includes 25 pod centers across the greater Manchester. The network of charging points will be delivered over a two-year period until March 2013.

Nissan is one of the leading manufacturers of electric cars. They took their aim to lead in this market to the next level after they just recently started doing road tests on their first electric van, based on the NV200 commercial compact car.

The NV200 electric van will be used by the Japanese postal services for testing purposes in July. One test vehicle will be provided to carry out postal collection and delivery tasks for approximately two months in the city of Yokohama. This enables Nissan to evaluate the vehicle’s capabilities under a customers normal usage conditions.

Later, similar proving tests will be carried out both in Japan and Europe, where similar evaluations will be carried out with other companies.

Nissan wants the van to go into mass production in 2014.

Europeans will be able to buy electric vehicles including cars, vans, scooters and bikes at the pod centers and there will also be stations where drivers can lease, hire and charge electric vehicles.

Enthusiasts will even be able to join an electric car club. Domestic appliances, also known as smart charging systems that will enable drivers to charge their vehicles at home, will also be available at the stations.

“Electric vehicles are going to transform the way in which we live and work,” Ron Stratton, chief executive officer of Manchester Electric Car Company, said. According to him, it is now the right time to go electric with new vehicles being released by major manufacturers and the cost of motoring continuing to rise.

“These charging points and pod centers are just the start. I expect to see a tenfold increase in the number of charging points over the next few years.”

Nissan wants the van to go into mass production in 2014. The van will allow ambulance drivers to drive directly into the hospital or van and taxi drivers to enter urban areas where CO2 emissions are restricted. It is one of four electric vehicles that Nissan has announced for the future.

“The role that can be played by zero-emissions vehicles in promoting a balance between economic growth and environmental protection in the realm of logistics is large,” said Nissan corporate vice-president hideto murakami, whi isresponsible for the Global Light Commercial Vehicles Business Unit.

This also follows the announcement that the Nissan Leaf will be released shortly in the Norway market, making Norway the ninth market into Europe to launch the vehicle.

For more information, visit www.nissan.co.za, to which full acknowledgement and thanks are given.

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country pro fil e: so uth africa

South

Written by Theresa van Tonder

africa

In 1652 Dutch traders landed at the southern tip of modern-day South Africa. These traders established a stopover point on the spice route between the Netherlands and the Far East, and so the city of Cape Town was founded.

After the British seized the Cape of Good Hope area in 1806, many of the Dutch settlers (the Boers) moved north to establish their own republics.

When they discovered diamonds (1867) and gold (1886), it encouraged wealth and immigration and so intensified the suppression of the native population. The Boers refused the British intrusion, but were defeated in the Anglo-Boer War (1899 – 1902). Nevertheless the British and Afrikaners, as the Boers became known, ruled together under the Union of South Africa, which was established in 1910. South Africa was declared a republic in 1961 after a whites-only referendum was held.

The National Party was voted into power in 1948. After this the party instituted a policy of apartheid, which favoured the white minority at the expense of the black majority. The biggest opposition to apartheid was

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the African National Congress (ANC), and because of this many of their leaders, such as Nelson Mandela, spent decades in South Africa’s prisons.

Internal protests and mutiny, as well as boycotts by some Western nations and institutions, led to the regime’s eventual willingness to negotiate a peaceful transition to majority rule under an ANC-led government.

Since then South Africa has struggled to address the apartheid-era imbalances regarding decent housing, education and health care.

The ANC’s internal strife came to head in September 2008, when President Thabo Mbeki resigned and Kgalema Motlanhe, the party’s general secretary, succeeded him as interim president.

Jacob Zuma was elected as president after the ANC won the general elections in April 2009.

In January 2011, South Africa assumed a non-permanent seat on the UN Security Council for the 2011-12 term.

Location: Southern Africa, at the southern tip of the African continent.

Climate: Mostly semiarid, but subtropical along the east coast with sunny days and cool nights.

Terrain: Vast interior plateau rimmed by rugged hills and narrow coastal plains.

Elevation extremes: Lowest point: Atlantic Ocean 0m.

c o u ntry p ro fi le : so u t h a fri c a

Highest point: Njesuthi 3 408m.

Natural resources: Gold, chromium, antimony, coal, iron ore, manganese, nickel, phosphates, tin-rare earth elements, uranium, gem diamonds, platinum, copper vanadium, salt and natural gas.

Agriculture: 3% Industry: 31.2% Services: 65.8% (2010 est.)

Population below poverty line: 50% (2000 est.).

Land use: Arable land: 12.1% Permanent crops: 0.79% Other: 87.11% (2005) Natural hazards: Prolonged droughts and volcanism. The volcano-forming Marion Island in the Prince Edward Islands, which most recently erupted in 2004, is South Africa’s only active volcano.

Current environmental issues: The lack of important arterial rivers or lakes requires extensive water conservation and control measures, as well as the growth in water usage outpacing supply, pollution of rivers from agricultural run-off and urban discharge, air pollution resulting in acid rain, soil erosion and desertification.

GDP (purchasing power parity): US$524-billion (2010 est.).

GDP (official exchange rate): US$357.3-billion (2010 est.).

GDP – real growth rate: 2.8% (2010 est.).

GDP – per capita (PPP): US$10 700 (2010 est.).

GDP – composition by sector:

Industrial production growth rate: 3% (2010 est.).

Electricity production: 240.3-billion kWh (2007 est.).

Electricity consumption: 215.1-billion kWh (2007 est.).

Electricity exports: 14.16-billion kWh (2008 est.).

Electricity imports: 10.57-billion kWh (2008 est.).

Oil production: 191 000 bbl/day (2009 est.).

Oil consumption: 579 000/day (2009 est.).

Oil exports: 128 500 bbl/day (2007 est.).

Oil imports: 490 500 bbl/day (2007 est.).

Oil – proved reserves: 15-million bbl (1 January 2010 est.).

Natural gas production: 3.25-billion cu m (2008 est.).

Natural gas consumption: 6.45-billion cu m (2008 est.).

Natural gas exports: 0 cu m (2008 est.).

Natural gas imports: 3.2-billion cu m (2008 est.).

Natural gas – proved reserves: 27.16-million billion cu m (1 January 2010 est.).

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country pro fil e: so uth africa

South Africa’s energy sector is critical to the economy.

This is because the country is very dependent on its large-scale, energy-intensive mining industry.

Current account balance: -US$16.51-billion (2010 est.).

Exports: US$76.86-billion (2010 est.).

Export commodities: Gold, diamonds, platinum, other metals and minerals, machinery and equipment.

Import commodities: Machinery and equipment, chemicals, petroleum products, scientific instruments, foodstuffs.

Imports: US$77.04-billion (2010 est.).

Debt external: US$80.52-billion (30 June 2010 est.).

South Africa’s economy Since the end of apartheid in 1994, South Africa’s economy has grown rapidly. It is now one of the most developed economies in Sub-Saharan Africa. Although this is a fact, approximately 34% of the population continues to live on less than US$2 per day. Economic problems coming from the apartheid era are still a problem. This is especially the case with poverty and a lack of economic empowerment among the disadvantaged groups.

Energy in South Africa South Africa’s energy sector is critical to the economy. This is because the country is very dependent on its large-scale, energy-intensive mining industry. Seeing that South Africa only has small deposits of oil and natural gas, it uses large amounts of coal deposits for most of its energy needs.

As a result of this, carbon emissions and intensity levels are relatively high.

South Africa has a highly developed synthetic fuels industry that produces gasoline and diesel fuels from coal and natural gas. In 2007, according to the International Energy Agency (IEA), South Africa consumed an equivalent of 5.3-quadrillion Btu. From this, coal/peat accounted for 72.1% of the total primary energy supply, oil accounted for 12.6% and combusted renewables and waste accounted for 10.2%.

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The South African government has devoted itself to ensure that blackowned companies have access to the energy sector under its black economic empowerment (BEE) programme. The target is 25% black ownership of energy companies by 2014. The large, predominantly whiteowned companies have been selling assets to achieve this objective.

Oil in South Africa South Africa has the second-largest oil refinery system in Africa.

It imports the majority of its crude oil from members of the Organisation of Petroleum Exporting Countries (OPEC), namely Saudi Arabia, Iran, Nigeria and Angola.

c o u ntry p ro fi le : so u t h a fri c a

According to Oil and Gas Journal (O&GJ), South Africa had proven oil reserves of 15-million barrels in January 2010. All these proven reserves are located offshore southern South Africa in the Bredasdorp basin and off the west coast of the country near the border of Namibia.

South Africa produced 195 000 barrels of oil per day (bbl/d), and of this about 160 000 bbl/d was synthetic liquids processed from coal and natural gas.

The oil consumption in South Africa is estimated at 575 000 bbl/d. Of this approximately 380 000 bbl/d is imported, which accumulates to 67% of consumption.

Coal in South Africa The economy of South Africa relies heavily on coal. According to the World Energy Council (WEC), South African coal resources were estimated to be approximately 34-billion tons short by the end of 2007. This accounts for 95% of African coal reserves and 4% of world reserves. South Africa’s coal provided an estimated 72% share of the country’s total primary energy supply in 2007 and also accounts for

approximately 85% of the electricity generation capacity. It is also a key feedstock for the country’s synthetic-fuel industry.

Electricity in South Africa The rapidly increasing electricity demand in South Africa, has led to the government setting ambitious plans to expand the sector.

Although a 75% electrification rate has been reached, which is the highest in Sub-Saharan Africa, only a mere 55% of the rural population has access to electricity. According to 2008 IEA data, these figures indicate that approximately 12 million people have no access to electricity and are likely to rely on wood fuel to meet their heating and cooking needs.

The government aims to reach universal access to electricity by 2012. In the meantime, the Department of Minerals and Energy is promoting the use of liquefied petroleum gas (LPG) in rural areas to meet the basic needs of rural populations while mitigating the health and environmental impacts associated with burning wood fuels and coal.

The government is also investing in new power stations. These power stations will generate an additional 22 000 MW by 2017. Three coal-fire power stations have been re-commissioned as a short-term plan. There are also plans to build another 4 700 MW coal-fired plant (Medupi), as well as a 3 500 MW nuclear power station. In order for the government to meet the generation targets, electricity rates have gradually increased for all sectors.

This has caused concern among the more energy-intense industries as well as households.

Information courtesy of www.cia.gov and www.eia.doe.gov, to which full acknowledgement and thanks are given.

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climate change

The Green Climate Fund:

Where are we and what can we expect from

COP 17 in Durban

Marie Parramon and Andrew Gilder, IMBEWU Sustainability Legal Specialists (Pty) Ltd.

Expectations for COP17 Watchers of the climate change negotiations may be forgiven for their increasing scepticism over the likely outcomes of the Seventeenth Conference of the Parties (COP17) to the United Nations Framework Convention on Climate Change (UNFCCC), scheduled to be held in Durban in late November and early December 2011. After two rounds of talks so far this year (Bangkok in April and Bonn in June, over a total of three weeks), climate negotiators have progressed little further than agreeing on the agenda items that will delineate their 2011 efforts – as opposed to addressing the substantive content of these agenda items. What is already clear, is that a legally binding agreement as the “silver bullet” for dealing with the world’s climate woes will not be concluded in Durban and, if concluding such a covenant is even a possibility, the timeframe for its conclusion will be measured in years.

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the Fund in a similar position to that of the Global Environmental Facility (the GEF, see www.thegef.org). The functions of the Fund will be to provide support for projects, programmes, policies and other activities located in developing country parties using thematic funding windows across the dualimperatives of adaptation and mitigation.

Climate finance

In the context of developing countries’ efforts towards greenhouse gas emissions mitigation, the importance of the Fund cannot be underestimated.

For example, South Africa’s consistent message at the international climate change negotiations is that this country is prepared to demonstrate its commitment to dealing with climate change inter alia by undertaking socalled Nationally Appropriate Mitigation Actions (NAMAs), but that NAMA implementation depends upon the receipt of appropriate financial support for such actions from the developed world. This message is not dissimilar to that of a number of developing country parties and is among the suite of issues that currently define United Nations efforts to find an international and comprehensive response to climate change.

Ironically, one area that may actually see a concrete outcome in Durban is that of climate finance. In terms of the Cancun Agreements, adopted at UNFCCC COP16 in Cancun, Mexico, in December 2010,1 UNFCCC country parties agreed to establish a Green Climate Fund (the Fund) as an operating entity of the financial mechanism of the UNFCCC. This would put

The above-mentioned irony arises from the length of time that the issue of climate finance (in one or other form) has been on the negotiation agenda without anything like a recognisable result having been achieved.

For context: efforts under the UN aegis to deal with climate change (or even to agree no how to deal with climate change) have not been particularly

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successful, in the practical sense of achieving an actual reduction in the threat posed by the phenomenon, in the whole period of time since 1992 – the year the UNFCCC was opened for ratification by country parties at the Earth Summit in Rio de Janeiro. Against this background the Fund represents the most concrete effort, in all of the last two decades of talking, to describe a mechanism for the transmission, from developed to developing countries, of financial support for developing countries’ efforts in responding to climate change. One might note that such finance was committed, but never materialised, under the UNFCCC when it was first opened for ratification in 1992.

United Nation Climate Change Conference

Green Climate Fund The Fund is intended to be accountable to and function under the guidance of the COP, and the World Bank has been invited to serve as the Fund’s interim trustee, subject to a review three years after the Fund’s operationalisation. Such operationalisation will be supported by an independent secretariat and a transitional committee consisting of forty members (fifteen from developed country parties and twenty-five from developing country parties). South Africa’s Minister in the Presidency for the National Planning Commission has been appointed to the transitional committee.

The Fund’s responsibility will be to manage and distribute the US$100billion in climate finance that developed country parties committed in Cancun, which will be set aside annually by 2020 and which will be mobilised jointly by developed and developing countries to address the needs of developing countries in responding to climate change. The transitional committee is tasked with developing and recommending for approval, to COP17, a number of functional documents required for the establishment of the Fund. The transitional committee’s work programme is categorised according to the following work streams: • Work stream I: Scope, guiding principles and cross-cutting issues.

• Work stream II: Governance and institutional arrangements.

• Work stream III: Operational modalities.

• Work stream IV: Monitoring and evaluation.

It seems, therefore, that the operationalisation of the Fund is progressing, and that certain essential constituents of the Fund have been identified and are being addressed. Consequently, there is some hope that a concrete outcome of COP17, and a positive for South Africa’s presidency of the COP (which will begin in Durban and extend until COP18, scheduled for late 2012 and likely to be hosted by Qatar), will be agreement on the modalities required for the operationalisation of the Fund.

Reality check(s) However, ex-UNFCCC executive secretary, Yvo de Boer (currently working for KPMG International) has criticised the process for establishing the Fund for a lack of engagement with the private sector, 2 noting that there remain significant concerns over whether the Fund can deliver adequate and predictable resources in a timely manner. The World Resources Institute (www.wri.org) indicates that the transitional committee can make sufficient progress in Durban if it focuses its work on:

• Developing a shared vision of the Fund’s objectives, scale and scope.

• Putting in place the institutions that will manage the Fund, e.g. the board and secretariat.

• defining the relationship between the Fund and the COP (the relationship between the COP and the GEF has been the subject of some vexed debate within climate finance circles – particularly the question of whether the GEF continues to be appropriate for dealing with climate change-related funding in an increasingly complex, fraught and fought-over arena).

All of the above does not address the fundamentals behind the Fund’s success, namely the levels and sources of finance that the Fund will be tasked with distributing. These are left for other parts of the negotiations.

Given the above dynamics, now would be a good time for concerned South Africans to start paying attention to the negotiations and to summon as much positive energy as possible to transmit to the negotiators – the Durban deliberations will need it.

The UNFCCC has established a finance portal for climate change at: http://unfccc.int/cooperation_support/financial_mechanism/finance_portal/ items/5824.php TheeThekwini Municipality has established a website for COP17: http://www.cop17durban.com/Pages/default.aspx IMBEWU Sustainability Legal Specialists (www.imbewu.co.za) is a specialist sustainability legal consultancy providing professional legal consultancy services in the area of environmental, health and safety and climate change law. IMBEWU runs a Climate Change and CDM Specialist Consultancy Unit with the greatest depth of expertise and experience in the South African carbon market. IMBEWU collaborates with Warburton Attorneys (www. warburtons.co.za) in providing CDM project development and contract advice to clients. This article should not be regarded as a comprehensive discussion of the topics addressed, and should not be taken as legal advice or relied upon. Those seeking to participate in climate change-related activities are advised to seek specific legal advice.

Contact: andrew@imbewu.co.za.

1. Decision 1/CP.16 The Cancun Agreements: Outcome of the work of the Ad Hoc Working Group on Long-term Cooperative Action under the Convention.

2. Green Climate Fund: A bad time to talk finance, http://www.eco-business. com/features/green-climate-fund-a-bad-time-to-talk-finance/.

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climate change

KYOTO PROTOCOL still up for discussion

Written by Nichelle Lemmer

The controversial Kyoto Protocol was again under the looking glass after various countries attended the United Nations Climate Change Conference in Bonn, Germany, that came to an end in June.

Some members of the global community like Canada, Japan and Russia, who committed to the protocol previously, now review their position on singing the treaty again for a second commitment period.

This air of negotiations and debating on climate change is all part of the build-up towards the 17th Conference of the Parties (COP17) to the United Nations Framework Convention on Climate Change (UNFCCC). South Africa is preparing to host and participate in the UNFCCC COP17, which will be held in Durban from 28 November to 9 December.

The Deputy-Minister of Water and Environmental Affairs, Rejoice Mabudafhasi, remains confident that there is encouraging signs of progress

after the conference in Germany. She addressed the media in Parliament on 22 June to give a brief on progress made towards the UNFCCC COP 17.

“Countries have given more clarity on the approaches to be taken to enable ambitious actions to address climate change,” she said. She further explained that the meeting in Germany was met with enthusiasm as 3 000 representatives from 183 countries attended the conference in Germany.

She said that future negotiations before the deciding UNFCCC COP17 conference is imminent. “Another session will be held in September.”

According to her, the success of the Durban negotiations will depend on various factors as pending issues on which countries differ will have to be agreed upon.

Mabudafhasi said that a balance between the outcome of the convention in Germany and the Kyoto Protocol will also be a deciding factor in the success of the future 17th Climate Change Convention.

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World is “off-track” to slow climate change “The world is not on the right track in fighting climate change and governments need to boost green energies to build new momentum,” said Rajendra Pachauri, head of the UN panel of climate scientists, at the Reuters Energy and Climate Summit in June.

Pachauri said governments would face ever higher costs to slow global warming after new data showed greenhouse gas emissions rose to new highs in 2010.

Global emissions of carbon dioxide hit its highest level ever in 2010 – rising by 5.9% to 30.6-billion tonnes in 2010. The International Energy Agency says that the growth is driven mainly by booming coal-reliant emerging economies.

According to the IEA’s analysis of the world’s power plants, 80% of the electricity generated related emissions for 2020 are already locked in. “The room for manoeuvre is only 20%,” said Birol, who blamed the lack of a climate change agreement and policymakers’ indecision on which cleaner burning technologies to support for the increase in CO2 emissions.

“If governments designed policies to promote cleaner energies such as wind, solar, geothermal and hydropower, the outlook won’t be all gloom,” said Pachauri.

“Stronger policies to promote a shift from fossil fuels could bring about fairly rapid movement in the right direction. One expects that there could be some kind of snowballing effect,” said Pachauri.

“It’s essentially a question of policies by which the world starts moving in the right direction,” said Pachauri.

A report by Pachauri’s Intergovernmental Panel on Climate Change (IPCC), which was released in May, said renewable energy could provide up to almost 80% of all the energy by 2050 – with the right policies Pachauri said that renewables often lacked risk-taking investments, noting that oil companies often spent millions of dollars in exploration wells that turned up no oil or gas.

“Why is it that we are not doing the same with renewable energies, where the benefits are so overwhelming?” he asked.

Sources: af.reuters.com, www.forexyard.com

A 20-year track record in providing world-class climate change, energy and sustainable development solutions across Africa and internationally. o Carbon footprinting: over 1,200 organisational and product carbon footprints; accredited CDP alliance partner

o Carbon management: strategic support to the private sector in all aspects of climate change and carbon risk

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regulatory frameworks on energy, climate change and carbon markets UNFCCC establishes portal for parties’ submissions o Energy management: energy auditing / ‘Carbon Desktop’ - monitoring and targeting software for energy, carbon and water

o Emission reduction project development: industry leader in CDM origination, qualification and commercialisation with over 100 million tonnes of CO2 under contract

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For further information: t +27 (0)11 253 3400 • f +27 (0)11 804 1038 • camcoafrica@camcoglobal.com Building 18, Woodlands Office Park, Western Service Road, Woodmead, Johannesburg, South Africa, 2080 Vol 6 NR 4 2011 i n A fr i c a 2 5 owww.camcoglobal.com 15

O IL AND GAS

Shale gas:

Huge potential and hype, but expect limited success This is the first article in a three-part series on shale gas in 25º in Africa, based on a report by PFC Energy. The articles in Journal 5 and Journal 6 will be covering the need for a new baseline for global shale gas resources and challenges, as well as the increasing level of shale gas activity in different countries.

Industry-players have known about the potential of hydrocarbon-bearing shale gas for a number of years, but activity outside of the US has been slow. The success of shale gas development in North America has greatly increased attention to this resource and potential around the world.

While leasing activity and test-drilling are picking up around the world, a new report by PFC Energy says that while global shale gas production has huge potential and is creating a significant hype, we should only expect limited success.

The report that lead to all the hype In April 2011, the EIA released a major study of global shale gas resources, which led to a high level of excitement in the energy industry. The study included initial assessments of 48 shale gas basins in 32 countries and suggested that shale gas resources, which have recently provided a major boost to US natural gas production, are also available in other world regions. The study reported an initial assessment of 5 760-trillion cubic feet (Tcf) of technically recoverable shale gas resources in 32 foreign countries, copaired with 862 Tcf in the US (www.eia.gov). The EIA’s Annual Energy Outlook 2011 Reference case also reflects the growing importance of US shale gas, projecting that this resource will account for approximately 46% of US natural gas production in 2035. But do other countries have similar opportunities to develop shale gas?

While there will certainly be companies that see material additions to their portfolios from international shale gas plays, PFC Energy does not expect any other country to achieve production levels at the scale of the US.

Global activity Activity is starting to pick up in a few countries – such as Argentina, China and Poland – where companies are beginning to lay the groundwork for the future of shale gas developments.

These countries have all seen preliminary activity, directed to substantial geologic potential, and could each reach 100 to 300 mmcf/d of new production by 2020. The addition of even 10%-20% of the resources identified to countries’ proven gas reserves would transform regional and global energy outlooks over the long term.

Shale gas resources by country. Source: EIA

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Which countries will find shale gas development most attractive?

Of the countries covered in the EIA-sponsored study, two groups may find shale gas development most attractive. The first is these countries that currently depend heavily on natural gas imports, but that also have significant shale gas resources. These include France, Poland, Turkey, Ukraine, South Africa, Morocco and Chile. The second group is those countries that already produce substantial amounts of natural gas and also have large shale resources. In addition to the United States, this group includes Canada, Mexico, China, Australia, Libya, Algeria, Argentina and Brazil.

“Adding identified gas resources to current estimates of other gas resources increases the total world technically-recoverable resources by over 40%, to more than 22 000 trillion cubic feet,” said EIA administrator Richard Newell.

Other countries won’t achieve US production levels, says PFC Energy While there will certainly be companies that see material additions to their portfolios from international shale gas plays, PFC Energy does not expect any other country to achieve production levels at the scale of the US.

PFC Energy closely tracks shale gas activity around the world, and while even the most advanced plays outside North America face a range of development constraints, companies are nonetheless laying the groundwork for eventual large-scale developments in several key basins.

“We expect that Argentina, China and Poland each have the potential to achieve 100 to 300 mmcf/d of production before 2020, with Argentina likely to progress the fastest, followed by China and later Poland. This represents between 2% and 7% of the current production in Argentina, 1% and 4% in China, and 25% and 76% of Poland’s relatively small domestic production. In the United States, these volumes would barely even register at the national level, and shale gas already accounts for 20% of US gas production,” says PFC Energy.

“The combination of factors that enabled shale gas production in North America are largely absent elsewhere, and represent a significant challenge to replicate in the medium term,” reads the report.

“While the potential volumes available over the coming decade will make for attractive additions to some companies’ portfolios, shale gas volumes outside North America are not expected to materially impact regional or global trade patterns for natural gas until much further into the future,” says PFC Energy.

“The combination of factors that enabled shale gas production in North America are largely absent elsewhere, and represent a significant challenge to replicate in the medium term,” reads the report.

PFC Energy closely tracks shale gas activity around the world, and while even the most advanced plays outside North America face a range of development constraints, companies are nonetheless laying the groundwork for eventual large-scale developments in several key basins.

Some of the above-ground factors mentioned by PFC Energy include acreage leasing and fiscal terms, operational and service sector capacity, water resources and environmental risks, geographic challenges, and infrastructure and market constraints.

“The prospects for achieving US-scale production volumes by 2020 are unrealistic, but well-positioned companies will be able to capture significant portfolio growth in several key basins,” says PFC Energy.

For more information, visit www.pfcenergy.com, to which full acknowledgement and thanks are given.

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Lukoil sets its

sights on West Africa Written by Theresa van Tonder A Russian oil and gas company, Lukoil, is looking for growth outside its borders and has set its sights on West Africa. On 20 July the company announced that it had acquired a 45% stake in deepwater Block SL-5-11 offshore Sierra Leone from the private Nigerian explorer Oranto Petroleum, adding to its acreage in Ghana and Côte d’Ivoire.

According to Business Monitor International (BMI), they see Lukoil’s push to expand offshore West Africa around the Gulf of Guinea as a positive move that provides strong reserves and production-growth potential.

Lukoil is cutting capital expenditure (capex) in Russia, where its investments have been hit by an increasingly punitive tax environment, and is looking abroad for growth opportunities. Plans to spend US$900-million in the region over 2011–2012 are already in place. This figure is likely to rise as Lukoil expands its hunt into Sierra Leone. According to the arrangement, Lukoil and Oranto have to drill their first exploration well before 2013.

Black Gold Coast Lukoil has not broken down its spending plans and is spending a lot on its Ghana acreage. The company is confident that it will discover the 150- to 250-million barrels (bbl) needed to justify commercial development.

Lukoil’s partner in Ghana and Côte d’Ivoire, Vanco, set out an ambitious five-well Gulf of Guinea drilling programme in 2010. The partners plan to drill four wells at the deepwater Cape Three Points Block, including two exploration wells and two appraisal wells at the Dzata prospect, where two

discoveries were made in February 2010. The plans for Côte d’Ivoire are less ambitious. Just one well is lined up for Block CI-401 in Q112.

The reason why Lukoil is considering its West Africa exploration programme is to facilitate its declining reserves trend. The company’s proven reserves have fallen by about 15% from 20.3-billion barrels of oil equivalent (boe) in 2005 to 17.25-billion boe in 2010.

With reserves of just 115-million boe, Lukoil’s international portfolio accounts for a fraction of its overall reserves, but the company clearly sees growth outside Russia as crucial to reverse the downward trend.

For more information, visit www.oilandgasinsight.com, to which full acknowledgement and thanks are given.

Engen gets environmental accreditation The crude-oil refinery of Engen and its depot in Wentworth, Durban, have received accreditation for its environmental management systems with certification under the ISO 14001 standard.

The refinery was recertified as standard-compliant by the South African Bureau of Standards (SABS) for another three years, while Engen’s Wentworth Depot (a major distribution centre with its own solvent-blend facility) achieved official accreditation for the first time.

ISO 14001 exists to help organisations minimise the negative effects of their operations on the environment, enabling them to comply with applicable laws, regulations and other environmentally oriented requirements, and to continually improve on these.

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Besides ISO 14001 recognition, the Engen refinery continues to comply with all the requirements for its trade permit, which is issued annually by the local eThekwini Municipality.

It has also received numerous accolades for its environmental investments and practices, which include an integrated waste management plan, investment of ZAR15-million annually in emission reduction, and zero exceedances of permissible levels of sulphurdioxide emissions in the year ending 2010.

“Our accreditation reaffirms our commitment to a cleaner, safer, healthier environment and the well-being of our community,” says Kamal Bahrin B Ahmad, general manager of Engen Refinery.

For further media information, contact Tania Landsberg, the Engen Petroleum Group communications manager, on tel: +27 21 403 5258 or e-mail: tania.landsberg@engenoil.com.

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photovoltaic double-glazing module Written by Dave Soons At the Intersolar trade fair held in Munich, Germany, recently, Schott Solar and BASF presented a new roof-integrated photovoltaic concept based on the Schott Advance Series.

The concept employs only two parts: a specially developed, multi-functional pan made from the BASF resin Ultramid B High Speed, and a frameless double-glazed module from Schott. The product has been designed for large roof areas on industrial or agricultural buildings and is very light and easy to install.

plastic part of the 1,7 m² photovoltaic module weighs only 8 kg and has adequate back ventilation.

The roof-integrated lightweight plastic pan is a one-piece plastic pan that can be installed directly onto the roof substructure of a building in place of conventional roofing, and it combines several functions and employs a new fastening method.

Plastic and part design

The PV module from the Schott Protect Series employs proven double-glazing technology for reliable protection against rain, hail and other adverse weather conditions.

Tool-free installation of the PV module After the plastic pan has been fastened to the roof substructure at four points, the only remaining step is to insert the rugged double-glazed module into the pan’s precision mounting system and secure it in position by means of an integrated latch. The PV module from the Schott Protect Series employs proven double-glazing technology for reliable protection against rain, hail and other adverse weather conditions.

To ensure safe handling of the double-glazed module, handles that are also made from Ultramid are provided on the back. This makes the PV module easy to carry, place emphasis on the integrated support edges of the plastic pan and simultaneously secure it at all four attachment points quickly and without the need for tools, by sliding the module into the latching mechanism on the pan (click and go).

The new bayonet connection and screw-free attachment to the pan also provide automatic tolerance compensation. The pan itself is stackable, thus minimising shipping volume.

Rain channels, back ventilation and cable channels included Channels integrated into the pan ensure that rainwater drains away easily.

Additional channels in the pan’s structure facilitate the installation of electrical cables. Thanks to the large opening in the centre of the pan, the

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As with a classical roof tile, specially-designed edges permit overlapping with adjacent modules, providing further protection against rain.

The approximately 1,2 m x 2,0 m plastic pan presented a challenge for the engineering resin (polyamide) and the part design: the long flow paths and sometimes thin walls require an easy-flowing resin in order to produce the part by means of conventional injection-moulding.

For this reason, the application development engineers at BASF recommended Ultramid B High Speed, one of the new especially easyflowing grades in the polyamide 6 range. The good flow characteristics of the resin, in conjunction with the opening in the pan, also help to reduce manufacturing costs: it can be processed on injection-moulding machines with a lower clamping force.

An additional benefit of the special Ultramid grade for this part is its toughness. To withstand the strong solar radiation, the resin must furthermore exhibit high strength, even at elevated temperatures, as well as exceptional UV resistance and resistance to weathering. In terms of fire behaviour, Ultramid B High Speed satisfies the criteria required for such construction applications (material class B2).

Doubly beneficial PV module The dimensions of the double-glazed PV module, which has been designed for large roof areas, combine exceptionally good product characteristics with a high efficiency per unit area. The integrative solution ensures a considerable reduction in the number of steps necessary for installation.

Working direction during roofing is left to the roofer.

The ease of handling provided by the built-in handles permits the use of frameless double-glazed modules, thereby preventing the accumulation of dirt on the surface.

Anyone seeking more information should visit the websites at www.schottsolar.de and www.ultramid.de.

BASF Holdings South Africa (Pty) Ltd. Tel: +27 11 203 2422 Fax +27 11 203 2430 E-mail: petra.bezuidenhout@basf.com Website: www.basf.co.za • www.autospec.com

renewa b les

New well-integrity guideline discusses solutions to

CO2 storage challenges DNV has just released a new guideline for carbon capture and storage (CCS) projects.

The CO2WELLS guideline is the result of a major joint industry project which brought upstream operators and power utility companies together.

This guideline which is aimed at project developers and authorities, describes a generic framework process for managing the risks associated with existing wells at carbon dioxide (CO2) storage locations, both on- and offshore.

This guideline represents the latest addition in this series and supplements DNV’s CO@QUALSTORE guideline, which was published in 2010, following a similar joint industry initiative.

Together, these two guidelines provide a generic capital-value process for CCS projects. It is designed to qualify geological storage sites through iterative cycles of risk and uncertainty reducing measures.

The integrity of existing wells at CO2 storage sites have been highlighted as a potential concern. The new CO2WELLS guideline addresses this issue head-on.

The guideline includes guidance on risk assessment of active abandoned wells during the initial screening of candidate storage sites, as well as the qualification of these wells for continued or modified use in a CCS project.

This particular guideline is consistent with the ISO31000 international standard for risk management as well as current and emerging regulations for CO2 geological storage in the US, Canada, Europe and Australia.

The members who participated in the joint CO2WELLS industry project include: • DNV • E.On Engineering • GASSCO • GASSNOVA • Global CCS Institute • Health & Safety Executive UK • National Grid • Petrobras • RWE • Shell Canada • Vattenfall Unified guidelines to speed up CCS implementation According to DNV, CCS is a strategically important technology for maintaining sustainable growth while reducing CO2 emissions.

DNV further adds that one of the key technologies that can facilitate a

transition to a more carbon-neutral world is permanently storing CO2 produced by industrial processes in a deep geological formation.

For CCS to play a significant role in combating climate change, a significant number of commercial scale projects must yet be initiated around the world within the coming years. DNV feels that in order to boost the deployment of CCS in a safe and sustainable way, guidelines that provide the standards should be unified, recognised and publicly available. This will also speed up the innovation.

Mike Carpenter, the project manager at DNV, said: “DNV’s core philosophy is that technology development and knowledge sharing foster innovation and improvements in safety. So when industry is facing challenges like CCS, the best way of solving them is for the key players to join forces through joint industry projects. In this way we, as an industry, can develop global best practices and standards.”

If you would like to download these guidelines free of charge, visit www.dnv.com/ccs.

For more information regarding DNV, please visit www.dnv.com.

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global

market outlook for PV’s until 2015 Over the past decade, the photovoltaic (PV) market has experienced unprecedented growth. In the last year alone, the PV market reached a cumulative installed capacity of about 40 GW worldwide, with an annual added capacity of 15.5 GW. A new report by the European Photovoltaic Industry Association (EPIA), entitled “Global Market Outlook for Photovoltaic’s until 2015”, shows that much of this progress, however, has been very heterogeneous, varying from country to country due to several factors – the most important being different national regulations and incentive schemes, as well as varying availability of financing facilities.

Market doubled in 2010 The PV industry experienced significant growth in 2010. Capacity additions grew from 7.2 GW installed in 2009 to 16.6 GW in 2010. This major increase was linked to the rapid growth of the German and Italian markets. Other countries that also saw significant growth include the Czech Republic, which

The market evolution of photovoltaic’s.

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experienced a burst to 1.5 GW in 2010, as well as Japan and the USA, which almost reached the gigawatt mark with 990 and 900 MW. MENA region has untapped potential In terms of market, the European Union (EU) has developed from an annual market of less than 1 GW in 2003 to a market of over 13 GW in 2010. With a 130% Compound Annual Growth Rate (CAGR), almost matching the 145% growth seen from 2007 to 2008, the PV market has again exceeded all expectations.

The regional balance shows three main zones developing markets for PV in contrasting ways. The EU is leading the way, followed by the Asia-Pacific (APEC) region, following the pace of economic development and wealth.

North America appears as the third region, with Canada developing steadily alongside the USA. Outside these three regions, the Middle East and North Africa (MENA)

renewa b les

region represents untapped potential for the medium term. PV also shows great potential in South America and Africa, where the electricity demand will grow significantly in the coming years.

Barriers in MENA countries Barriers to PV deployment persist, such as the lack of awareness among policy-makers, the subsidised prices of electricity produced by fossil-fuel plants and the lack of appropriate regulatory frameworks. Despite this, North African countries are setting up some ambitious targets for renewable energy by 2020. Morocco has launched a 2 GW solar plan with a dedicated implementing agency, under which PV and Concentrated Solar Power (CSP) technologies will compete openly.

The Masdar city programme will be implemented in the United Arab Emirates soon. In addition, in line with the MENA governments’ will to deploy renewables only in exchange of substantial local value creation, some polysilicon plants should be established in the Gulf region according to recent announcements. Finally, Jordan is looking into using desert areas for PV technology.

The current turmoil in many countries of the region could put at stake the Mediterranean Solar Plan, which was launched in 2010, while the prospects for Desertec beyond 2020 remain valid. According to the report, the need for an enhanced electricity grid for both local consumption and imports/exports of electricity could represent a major constraint for large power plants in the region. This may push in the short term towards well-integrated residential and commercial systems, while medium-sized plants (up to 20 MW) would be more easily connected to the existing grid than very large groundmounted installations.

Three main factors have driven the spectacular growth in the PV market: • Renewable energy is no longer considered a curiosity. PV has proven itself to be a reliable and safe energy source in all regions of the world.

• The price decreases that have brought PV close to grid parity in several countries have encouraged new investors.

• Smart policy-makers in key countries have set adequate FiTs and other incentives that have helped to develop markets, reduce prices and raise investors’ awareness of the technology.

What is the future of PV market development?

With between 131 and 196 GW of PV systems likely to be installed in 2015, the forecasts for the PV market are promising, says EPIA. But the financial crisis and competition with other energy sources have put pressure on policy-makers to streamline the incentives for PV. “PV is now a mature technology that is rapidly approaching grid parity. The time has come for reasonable support schemes in line with price evolution.

In the coming months and years, EPIA will support the adaptation of support schemes to prices. But until grid parity is reached, the PV industry is committed to ensuring the best possible use of support schemes,” concludes the report.

The findings of the report were discussed by industry members, national associations, government agencies and electric utilities during the 6th EPIA Market Workshop, which was held in Paris.

To download the full report, visit www.epia.org, to which full acknowledgement and thanks are given.

AfDB lends Eskom US$365-million for renewable energy The African Development Bank (AfDB) has granted a US$365million loan to South Africa’s state-owned power utility, Eskom, to boost its share in renewable energy. The loan will assist Eskom in implementing a US$1.3-billion project comprising sub-Saharan Africa’s first concentrated solar power plant and South Africa’s first large-scale wind-power plant.

emitted approximately 224.7-million tons of CO2, making the South African economy one of the most carbon-intensive in the world.

Hela Cheikhrouhou, director of the AfDB’s Energy, environment and climate change department, commented: “The initiatives are the first of their kind in a region where they are seen as a test case and catalyst for larger-scale delivery of power, using renewable technologies to displace considerable future CO2 emissions.”

“Emission savings are estimated at about 5-million tons of CO2 equivalent (over a 20-year lifespan) for the Sere wind-power project and 9-million tons for the Upington solar power plant,” said Cheikhrouhou.

South Africa currently generates barely 22 MW in wind power and has no grid-connected solar power generation capacity. Last year, Eskom

For more information, visit af.reuters.com, to which full acknowledgement and thanks are given.

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CSP: Bigger isn’t

necessarily better

A recent report from CSP Today, entitled “CSP Parabolic Trough Report: Costs and Performance”, challenges the conventional wisdom on scale and cost in order to identify the tipping point for concentrated solar power.

It is widely cited that scaling up plant size is the CSP sector’s silver bullet for lowering costs. According to theory, an inverse relationship exists between the levelised cost of energy (LCOE) and power plant size.

This theory seems to be supported by the current trend towards mega projects in the USA, the clustering of 50 MW plants in Spain and Spain’s recent decision to accept bids for 80MW plants.

CSP Today, however, argues that the reasons for scaling up could yet be flawed. Their new report provides a concise breakdown of the current LCOE across a range of CSP parabolic trough plant sizes to deliver startling insight into why bigger isn’t necessarily better.

Other findings of the report • Parabolic trough accounts for more than 98% of the total operating CSP plants and 70% of plants under construction.

• The levilised cost of energy (LCOE) of a plant with thermal storage could be up to 20% lower than that of a plant without storage.

• Torque-box collector design has been the most widely deployed in recent years with over 350 MW of installed capacity.

• Operating and maintenance (O&M) costs have a significant impact on costs. A 20% reduction in the cost of O&M could lead to a 5% reduction in the LCOE. However, the same reduction in the cost of the power block or thermal storage would only lead to a 2% LCOE reduction.

• The LCOE could decrease by as much as 37% once CSP installations reach 15 GW.

Pressure losses and false economy Higher volume sales for CSP plants yield more competitive prices from suppliers, so the accepted argument is that increasing plant capacity means the relatively lower cost of components will contribute to a lower LCOE. Although an increase in plant size may lead to a general decrease in the LCOE due to power block savings (ZAR/MW), the interaction between variables could erode this advantage.

Carlos Salazar Marquez, the report’s author, explains: “Increasing capacity by a factor of two does not simply entail enlarging the solar field by an equal amount.” Salazar also demonstrated how knock-on effects of enlarging the solar field could ultimately yield a negative effect on the LCOE. “To combat pressure losses, for example, more pumping is required, leading to higher electricity consumption, reducing the netto power output and reducing larger-scale LCOE benefits,” says Salazar.

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Pinpointing the optimal plant size Five different plant sizes with and without 7.5 hours of thermal energy storage were simulated, taking into account marginal cost inputs and secondary effects, in an attempt to pinpoint the optimal plant size.

During the research, a key question that was raised was the impact of variables such as O&M on plant-running costs as plant sizes increase.

“Little is still known about the cost impact of O&M schedules and how these will play a roll in the overall cost of electricity production”, reads a statement

by CSP Today.

“As the plant size is increased, it is not entirely known whether new issues would arise and how they would affect O&M costs,” says Salazar.

To download the full report, visit www.csptoday.com, to which full acknowledgement and thanks are given.

renewa b les

Sun shines on clinic in the Eastern Cape Written by Nichelle Lemmer

The Sunwater for Life, initiative from the Sustainable Energy Society of Southern Africa (SESSA), shed some light onto the lack of sufficient supply of warm water at the Qunu Clinic in the Eastern Cape.

The project provided two solar-water heating systems to the clinic to help free up funds the clinic needs to better serve 800 to a 1 000 people who require treatment every month.

The project was launched to give organisations and industry donors a way to improve the quality of life for those without access to hot running water by installing solar-water heating systems for those in need.

Absa Insurance Company was behind the good dead done at the Qunu Clinic. The scarcity of energy in rural areas such as Qunu forced the health institution to meet their energy needs with electricity vouchers. This included the supply of hot water, which plays an important role to create a hygienic environment. Their struggle to keep the clinic running on an unreliable source of energy supply opened the door for Absa to help via the Sunwater for Life project.

“The opportunity to uplift and contribute positively to the well-being of communities reflected in our company’s values,” said Edwyn O’Neill,

managing executive at Absa Insurance Company. According to him, the installation of solar heating systems has two basic benefits. “It will greatly improve the quality of care for the people in Qunu and it will ensure that the environment is preserved,” he said.

SESSA ambassador Irvan Damon said the Sunwater for Life project aims to promote growth in the green sector and help to create green-collar jobs, showcase the reliability and independence of the green technology, contribute to economic stability through an improved energy mix, assist with the upliftment of previously disadvantaged communities and help to avoid local environmental degradation.

“We appreciate Absa’s involvement with Sunwater for Life and look forward to seeing the fruits of their investment in Qunu,” Damon said.

For sponsorship opportunities please contact the SESSA office on tel: +27 11 513 4071 or e-mail Irvan Damon on irv@sessa.org.za to find out how you can get involved in SUNWATER FOR LIFE. For more information visit www.sessa.org.za, to which full acknowledgement and thanks are given.

First full-size module solar parks under construction

“Our 5.7 m² large modules require fewer inverters and less cable for installation, leading to lower set-up and maintenance costs. This creates unmistakable advantages for our customers,” says Dr Matthias Peschke, chief operating officer at Masdar PV.

Written by Nichelle Lemmer Masdar PV and Raabvill Kft. are cooperating to build the first solar parks with full-size modules in Slovakia. A total of six projects with capacities of 1 MW each are already being constructed to supply renewable solar energy in Slovakia. Installation of the first three solar parks was completed in June. The remaining modules will be installed later in the Slovakian summer.

“We expect the demand for our modules to continue increasing because of this,” he says. He is pleased to work with Raabvill Kft. “In Raabvill Kft. we have a highly experienced and successful partner with good contacts, particularly with Eastern European investors and government agencies.”

A full-size module from Masdar PV is almost as big as a garage door and is nearly 6 m² big. This is the first time that Masdar PV, a leading manufacturer of innovative products and solutions in thin-film photovoltaics, is supplying the full-size thin-film PV modules for solar parks. The Hungarian company, Raadvill Kft. is the installation developer and system integrator of the project. They got the contract with Masdar PV to supply a total of 6 MW of the silicon-based thin-film PV modules.

Advantages of full-size modules Full-size modules hold various advantages. The large surface area of the modules means that overall system costs are reduced, allowing customers to obtain an attractive cost-benefit ratio.

Raabvill Kft’s decision to order from an Ichtershausen-based company is primarily based on the excellent quality of its solar modules, as well as the high energy-efficiency of 8% that the modules deliver.

With the financial strength of its parent company, Masdar of Abu Dhabi, behind it, Masdar PV also represents a reliable partner in Germany for Raabvill Kft. Peter Krupanszky from Raabvill Kft. puts it this way: “We see this initial large order as the prelude to a successful and long-lasting partnership between Masdar PV and our company.”

For more information, visit www.masdarpv.com, to which full acknowledgement and thanks are given.

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Nuclear

UPDATE ON

Written by Dave Soons

FUKUSHIMA

The world’s greatest disaster, which was caused by the tsunami in Japan in March, has brought the economy to a standstill, with power plants, oil refineries and many industrial concerns generally either seriously damaged or ruined forever.

Add to this the ongoing disaster at the Fukushima nuclear power station, which is far from over, and one is left marvelling at the resolute attitudes of the nation in their loss and their dogged determination to do whatever is needed to put the country and the people back onto their feet.

Overall, the situation at the Fukushima Dai-ichi nuclear power plant remains very serious, but there are signs of recovery in some functions, such as electrical power and instrumentation.

At a press conference held on 21 April, the chief Japanese cabinet secretary, Yukio Edano, announced the establishment of a no-entry zone around the Fukushima Dai-ichi nuclear power plant, as well as basic policies concerning temporary re-entry. At midnight (Japan local time) on 22 April 2011, the area within 20 kilometers of the nuclear power plant was announced as a no-entry zone.

Edano also announced a re-designation of the evacuation zone around the Fukushima Daini nuclear power plant. He said that the size of the evacuation zone around the station would be reduced from ten kilometers to eight kilometers, and that the order to evacuate based on the incident at the Fukushima Daini nuclear power station would be lifted from areas farther than eight kilometers around the station.

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Regarding the changes to the status of the Fukushima Dai-ichi nuclear power plant, the IAEA receives information from a variety of official Japanese sources through the national competent authority, the Nuclear & Industrial Safety Agency. Additional detail is provided in the IAEA Incident & Emergency Centre (IEC) status summary with information received by 07:00 UTC on 21 April 2011.

N u c lear

to radioactive waste treatment facilities commenced on 19 April. The stagnant water (about 100 m3) in the basement of the turbine building of Unit 6 was transferred to the condenser on 19 April.

Plant status Work to strengthen the electrical power system between Units 1-2 and Units 3-4 by establishing multiple power lines was completed on 19 April.

White “smoke” continues to be emitted from Units 2, 3 and 4.

In Unit 1 fresh water is being continuously injected into the reactor pressure vessel through the feedwater line at an indicated flow rate of 6 m3/h, using a temporary electric pump with off-site power.

In Unit 2 and Unit 3 fresh water is being continuously injected into the reactor pressure vessel through the fire extinguisher line at an indicated rate of 7 m3/h, using temporary electric pumps with off-site power. In Unit 4 tonnes of fresh water were sprayed over the spent-fuel pool on 19 April, using a concrete pump truck.

Nitrogen gas is being injected into the containment vessel in Unit 1 to reduce the possibility of hydrogen combustion in the containment vessel.

The pressure in the containment vessel has stabilised. The pressure in the reactor pressure vessel is increasing.The reactor pressure vessel temperatures in Unit 1 remain above cold shutdown conditions.

The indicated temperature at the feedwater nozzle of the reactor pressure vessel is 154°C and at the bottom of the reactor pressure vessel it is 113°C. The reactor pressure vessel temperatures in Unit 2 remain above cold shutdown conditions. The indicated temperature at the feed water nozzle of the reactor pressure vessel is 135°C. The reactor pressure vessel and the dry well remain at atmospheric pressure. Fresh water injection (approximately 47 tonnes) to the spent-fuel pool via the spent-fuel pool cooling line was carried out on 19 April.

The temperature at the bottom of the reactor pressure vessel in Unit 3 remains above cold shutdown conditions. The indicated temperature at the feed water nozzle of the reactor pressure vessel is 100°C and at the bottom of the reactor pressure vessel it is 108°C. The reactor pressure vessel and the dry well remain at atmospheric pressure. There has been no change in the status in Unit 6 or in the common spent-fuel storage facility.

Management of on-site contaminated water An injection of approximately 17 000 litres of coagulant (liquid glass) to the power cable trench of Unit 2 was carried out on 18 April and an injection of approximately 7 000 litres of liquid glass was done on 19 April. The transfer of stagnant water from the Unit 2 turbine building

The Tokyo Electric Power Co. (TEPCO) has released a roadmap to bring the Fukushima Dai-ichi nuclear plant to a stable condition. Priorities continue to be on cooling the reactors and spent-fuel pools, draining water from the turbine buildings and concrete structures that house piping to reduce radiation levels, and containing the spread of radioactive materials.

Overall, the utility says, site radiation dose rates are stabilising. The most recent radiation readings reported at the plant site gates ranged from 5.7 millirem per hour to 2.6 millirem per hour.

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nuclear ener gy

Radiation monitoring On 20 April, deposition of I-131 was detected in eight prefectures, ranging from 2.4 to 80 Bq/m². Deposition of Cs-137 was detected in seven prefectures, the values reported ranging from 2.6 to 87 Bq/m².

Gamma dose rates are measured daily in all 47 prefectures. For Fukushima a gamma dose rate of 1.9µSv/h was reported on 20 April, and for the Ibaraki prefecture a gamma dose rate of 0.12µSv/h was reported. In all other prefectures, reported gamma dose rates were below 0.1µSv/h.

programme. For 20 April, measurements of gamma dose rates were reported for 54 cities in 40 prefectures. In Fukushima City a value of 0.42µSv/h was reported.

For nine cities, gamma dose rates between 0.13 and 0.17µSv/h were reported. For all the other cities the reported gamma dose rates were below 0.1µSv/h.

Japan’s government has expanded evacuation to selected areas outside the original 12.5-mile zone. Authorities are also barring entry into nine municipalities near the plant.

Dose rates are also reported specifically for the eastern part of the Fukushima prefecture for distances beyond 30 kilometers from Fukushima Dai-ichi. On 19 April the values in this area ranged from 0.1 to 22µSv/h.

It must be remembered that this situation is changing almost daily, but the information contained in this issue was correct at the time of going to press.

In cooperation with local universities, the Japanese Ministry of Education, Culture, Sports, Science & Technology has set up an additional monitoring

For more information, visit www.iaea.org/newscenter and nei.cachefly.net, to which full acknowledgement and thanks are given.

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n u c lear energ y

SA’s perceptions on nuclear

must change – Dr Philip Lloyd There is an ongoing debate about the safety of nuclear power, particularly in the light of the recent Japanese experience. 25º in Africa recently interviewed a South African nuclear physicist and chemical engineer, Dr Philip Lloyd, who had some interesting and controversial statements about unfounded negative perceptions of nuclear energy.

Background The first commercial nuclear power reactor in South Africa began operating in 1984, and now there are two nuclear reactors generating 5% of the country’s electricity. While the government’s commitment to the future of nuclear energy is strong, over and above financial constraints there is a major concern over the safety around the usage of nuclear power.

Dr Philip Lloyd believes that the history of nuclear power worldwide shows that it is indeed safe. “There have been only three accidents affecting the general public in thousands of reactor-years of commercial operation, and in only one of these accidents (Chernobyl) were some workers killed and the nearby population harmed. The benefits which flow from having large amounts of cheap, reliable power available are untold. You only have to look at the damage caused to the Southern African economies when enough power was not available to see the truth of this,” says Lloyd.

Japan’s nuclear strategy confirms its safety “Japan is a country that has been devastated by the effect of a nuclear bomb, which is why I find it extraordinary that the country has been so forceful in pursuing their nuclear energy needs. This just confirms how safe the technology is,” says Lloyd.

Lloyd explains that Fukushima wasn’t a “disaster” – it was a horrible accident. “There were multiple natural disasters far in excess of anything that the country could have anticipated. It’s like the two planes that flew into the World Trade Centre on 11 September 2001 – nobody could have anticipated or prevented it. The Japanese have spent over US$40-million building a wall that would protect their nuclear reactors on the coast in the event of a tsunami, but the 2011 tsunami was much worse that anyone could have predicted. There are 55 nuclear reactors in Japan and only four of these were destroyed,” said Lloyd.

Fears of radiation are misunderstood Lloyd explains that while it’s common to be scared of the invisible, our fears of radiation are often misunderstood. “I was recently on a panel at a nuclear conference and a representative from Greenpeace was saying that radioactivity is always a dangerous, bad thing. So I pointed out that bananas contain high levels of potassium, of which a certain percent is radioactive. Your body can handle certain amounts of radioactivity,” says Lloyd, before adding that large truckloads of bananas crossing the US border from South America often set off the border radiation detectors due to the radiation from banana potassium.

“Granite is also radioactive – everything from granite tombstones to the boulders on which the affluent Clifton suburb in Cape Town is built, has certain levels of radioactivity. The level of radioactivity in the granite in Clifton is actually higher than the edges of the current exclusion zone at Chernobyl,” says Lloyd.

Other countries want to host nuclear waste To demonstrate how other countries’ perceptions towards nuclear waste differ from these of South Africans, Lloyd referred to a competition between two municipalities in Sweden (Östhammar and Oskarsh) who spent seven years competing for the right to host the world’s first high-level nuclear waste storage facility.

“There was no risk associated with the nuclear waste storage facility, and when the one town won, the other town protested. Not because they wanted to be seen as some kind of civic heroes, but because they don’t have the same negative perceptions that we have about nuclear energy and they knew that this nuclear waste storage facility would create a number of jobs for the community,” says Lloyd.

“The government has announced that we’re going ahead with building a nuclear fleet. While some concerns have been raised, we’ve got very little alternative if we want to move away from coal. There are particular sites that have been earmarked for nuclear reactors, but there are action groups that have a not-in-my-backyard mentality. There is definitely something wrong with our perception of nuclear energy and the benefits, safety and reliability surrounding this technology,” concludes Lloyd.

25º in Africa would like to give full acknowledgement and thanks to Dr Philip Lloyd, who generously contributed information for this article.

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b iof uels

green jet fuel powers

first-ever transatlantic

b i o fue l s f l ig h t In June, Honeywell announced that its green jet fuel has successfully powered the first transatlantic biofuel flight, which landed at Paris Le Bourget Airport.

The Honeywell-operated Gulfstream G450 became the first aircraft to fly from North America to Europe with a 50/50 blend of Honeywell green jet fuel and petroleum-based jet fuel, powering one of the aircraft’s Rolls-Royce engines. It was also the first business jet to be powered by a biofuel.

The flight departed from Morristown, N.J., at 9 pm Friday and arrived in Paris about seven hours after take-off. The jet closely followed the route taken by Charles Lindbergh’s famous first flight across the Atlantic.

“This first biofuel trip across the Atlantic, along with more than a dozen other commercial and military test flights conducted to date, demonstrates that Honeywell green jet fuel more than meets the demanding requirements for air travel,” said Jim Rekoske, vice-president and general manager of renewable energy and chemicals for Honeywell’s UOP. “Now that the initial ASTM International approval is in place, we are one step closer to commercial use that will help the aviation community to reduce its carbon footprint and dependence on crude,” said Rekoske.

ASTM International standards On 8 June 2011, the international certifying body ASTM International announced its approval of its BIO SPK Fuel Standard, to be made official later this year, of the use of hydrotreated renewable jet (HRJ) Jet A-1 fuel in commercial aviation.

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The new standard D7566 Specification was developed by Subcommittee DO2.JO.06 on Emerging Turbine Fuels, part of ASTM International Committee DO2 on Petroleum Products and Lubricants.

“The issuance of D7566 is the culmination of a focused, collaborative effort by the commercial aviation industry to move towards more environmentallyfriendly fuels and to diversify the suppliers of aviation fuel,” says Mark Rumizen, an aviation fuels specialist at Federal Aviation Administration and chair of the task group that developed D7566.

According to Oilprice.com, the potential financial implications are massive, as together the airline industry and the US military use more than 1.6-million barrels of jet fuel a day. “Fuel and oil comprise 25% of civilian airlines’ operating costs. When the price of jet fuel rises one cent, it increases the global cost of aviation by US$195-million,” says Oilprice.com.

Reducing operating costs and carbon footprint “Reducing both the cost of operations and carbon emissions has never been more imperative. From advanced avionics to sustainable biofuel and energy-efficient jet engines, innovations from Honeywell are addressing these needs today,” said Carl Esposito, vice-president of strategy and product management for Honeywell Aerospace. “Honeywell’s PRIMUS EPIC navigation and safety technologies embedded in Gulfstream’s PlaneView cockpit helped the aircraft to fly the most fuel-efficient and direct route from Morristown.”

For more information, visit www.honeywell.com, to which full acknowledgement and thanks are given or contact Debbie Rae by e-mail at Debbie.rae@honeywell.com.

b io fu e l s

Research could change the future of bio-oil production Written by Nichelle Lemmer “Rural landscapes of the future might have pyrolysis plants instead of grain elevators as processing centres on every horizon,” says Lance Nixon, a science writer and research editor at the South Dakota State University in Brookings. He envisions a future where farmers would bring bulky crops such as switch grass to be made into crude oil to pyrolysis plants.

He sketches a future where pyrolysis plants would pass crude bio-oil on to refineries elsewhere to be made into drop-in fuels and industrial chemicals. “The plants would capture and use a byproduct called syngas made up of hydrogen, carbon monoxide and perhaps carbon dioxide for their own energy needs,” he says. “The plants would send farmers away with an important by product called biochar that could go back on the land to help rebuild damaged soils, sequester carbon and alter greenhouse gas emissions.”

According to Nixon, this is not as futuristic as it sounds. He says pyrolysis plants are the main focus of a study conducted by the South Dakota State University at the moment. “The South Dakota State University (SDSU) researchers are busy exploring such a production system.” Nixon says the The US Department of Agriculture is funding

the project with a grant of $200 000 to $1-million annually for the next five years. “The project aims to help scientists design a feedstock production system for optimum energy production of bio-oil, and to explore the possible ecological benefits from the use of biochar.”

“We’re looking at this from a whole-system approach,” says Professor Tom Schumacher, the project director of SDSU. He explains that pyrolysis is a process that uses elevated temperatures in the absence of oxygen to break down organic materials. “The study will use a technique called microwave pyrolysis, which heats the feedstock by exciting the individual molecules, making it very accurate and easy to control.

Process engineers and soil scientists are collaborating in the research project to learn what happens to bio-oil and biochar production when they vary the pyrolysis processing parameters.” Researchers hypothesize that biochar has different physical and chemical properties, depending on the feedstock and the way it is processed,” Schumacher says. “This could affect its usefulness as a soil amendment. The research team will examine the characteristics of biochar from three feedstocks: corn stover, switch grass and woody biomass.”

He says a lot that is unknown about specific types of biochar. “There is no single characteristic that can be used to evaluate the effectiveness of biochars,” Schumacher says.

25º in Africa would like to give thanks and acknowledgement to Lance Nixon, a science writer and research editor at the South Dakota State University, for the information contributed to this article.

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CDM

Paulownia: exploring opportunities in South Africa Timber is one of the few truly renewable resources; yet the demand for timber is affecting the health of our planet. Currently, 10 times more forests are lost than are being replanted. How can this be rectified? Is there a solution? Do we just want to satisfy the demand for timber? With the newly developed afforestation methods like Agroforestry, can future timber demands be met that do not deplete greenery or the general health of the soil/planet and the populations its supports?

Paulownia Forestry Development (Pty) Limited was formed in 2007 by the founder who recognised a, yet unknown, opportunity in South Africa; The Paulownia tree. Despite the limited awareness of the potential of the Paulownia tree in RSA, other parts of the world have already acknowledged this tree as a significant and profitable prospect. It is just a tree, but can easily be considered the princess of trees, appropriately named after the Russian princess, Paulownia (pronounced: Pow-lof-ni-ya).

Amongst others, the more noteworthy countries where the specific use of Paulownia timber is already entrenched and recognised as a viable and profitable investment are Australia, China, The USA and others. Our interest with Paulownia is the production of timber and other raw renewable resources (including Paulownia) for bio-ethanol, biodiesel and wood pellets for power generation.

Paulownia, as a wood, is not just timber. It has become renowned for the ability to reclaim ecologically stressed and polluted sites due to various mining activities. Contact has been established by Paulownia Forestry Development (Pty) Limited with mining and chemical companies to set up test plantations that require reclamation.

Furthermore, and most likely as far as investment is concerned, is the fact that Paulownia has been hailed, worldwide, as one of the best ways to fight global warming.

Paulownia is the world’s fastest growing hardwood, non-invasive tree that is currently being used in South Africa as an opporutniy to create jobs, access biofuel and provide farmers with an extra source of income. While the Paulownia species is unknown in the South African market, it is well-known and highly successful in other forestry markets around the globe.

A local company, Paulownia Foresty Development, has the sole importing license for Paulownia. “We kicked off our company two years focussing ago with a focus on reforesting large blocks of land, community development, poverty alleviation, reversing land degradation (mines for example) whilst creating a stream of income, off-setting carbon emissions and furthering substantial timber plantations in the country” comments Louis du Plessis, chief operating officer, Paulownia Forestry Development.

Paulownia Forestry Development, The Paulownia Forest Nursery. This will be our advanced nursery in which we will be producing our own seedlings for Africa. We are the exclusive licence holders for Africa for the World Paulownia Institute LLC clonal technology and plant material.

“Paulownia is one of the fastest growing types of wood and I believe it has the potential to replace Meranti wood which is being almost totally unsustainably harvested the Indoniesian rainforests are being desimated for furniture and paper as well as detroying the habitat of millions of animals

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CDM

including the Urang-Utan. Greenpease has exposed majour multinationals in this respect but what about you and I says Du Plessis, while referring to the most commonly used wood source for furniture.

The wood is a pale honey colour. It is light and has the highest strength to weight ratio of all known hardwoods. It has the highest floatability factor; it is naturally UV resistant, insect repellent and decay- proof it also does not crack twist or warp during drying which makes it a very stable timber.

The tree was tested by the late Professor Donald of the University of Stellenbosch during the eighties. He pronounced “Paulownia as Africa’s tree of the future”, which is also the worldwide sentiment about the Paulownia tree expressed in international publications as being the Tree of the Future.

Paulownia Africa also offers a first-refusal contract for buying the timber back says Du Plessis.

“Paulownia’s organic matter can be converted into bio-diesel, ethanol and wood pellets to provide a cleaner source of energy. While Paulownia trees take between 6–10 years before they can be used for furniture, the rotation time for using the organic mass for biofuel is only three years and as little as 18 months climate depending,” comments du Plessis. Several large plants of biofuel and power generation are already up and running around the globe.

Some of the companies that are involved in the project include GeoTab, Oregon Scientific, Worldnet Logistics, Jonway Motorcycles, Hahn&Hahn Inc, Donkerhoek Quarry, SA Plastikor and AquaDam, as well as a few local mining companies. Rural communities (that have the extra land) can also benefit from the income if they are able to open their own factory.

For landowners One of the aims of the project is to provide famers (regardless of the size of their land) with a tree that can give them a great return on investment.

“Landowners can achieve a high return on investment by planting a relatively small plantation of 3–10 hectares and then obviously thousands of hectares ,” continues Du Plessis.

“With a return on investment of 28%+ Paulownia plantations are a great add-on for famers as the trees can be planted amongst other crops.

What is Paulownia?

It is the world’s fastest growing hardwood tree.

• It is a C4 plant growing at a very high metabolic rate making it one of the worlds foremost CO2 sequestrators.

• It’s an excellent timber used to produce a wide range of products.

• The species is non-invasive and commercially viable.

• It is grown from the tissue culture of the best genetic stock.

• Paulownia grows successfully in soil that is not suitable for current farming crops.

• Paulownia is drought tolerant and uses little water copared to other biomass species • 550-650mm of rainfall is required. It is also desidius therefore it does not use water in the winter months! For SA this is crucial.

• Paulownia is also known as the Princess Tree, named in honour of Queen Anna Pavlovna of The Netherlands.

For companies

Paulownia Africa has joined the global initiative to help reduce our carbon footprint. By planting the Paulownia trees we are dramatically reducing the negative impact of carbon emissions.

We are offering companies and individuals the opportunity to sponsor Paulownia trees thereby effectively reducing your own footprint.

How does this work?

Paulownia trees are planted and you, as a company or individual, ‘own’ that tree for the duration of its growing period or rotation. The CO2 sequestrated (absorbed) by this tree then becomes ‘yours’! You will receive a yearly update on the uptake and expiration of O2, which clearly indicates the positive impact that you are making globally.

Your name or company logo will be clearly advertised on our website and you will receive a certificate stating which tree you own and where it is situated. You will also be able to link all your marketing/advertising initiatives to our ‘Go Green’ website to further leverage your input.

We would love for you to join our sink and sequestrate carbon, create work and save the environment by sponsoring trees to be planted. By sponsoring our trees you are also helping to establish a industry that currently relies on imported timber form around the world most of which are endangered, not to mention the damage to those countries environments and the emission of green house gasses by transporting it half way around the world.

These jobs you will help create are new jobs not existing jobs or moved jobs. Training has already been arranged by Tirhani Skills For Africa and The Saasveld campus of the Nelson Mandela University in the eastern Cape.

Paulownia Forestry Development Tel: +27 12 993 0967 E-mail: louis@paulowniaafrica.co.za Website: www.paulowniaafrica.co.za Vol 6 NR 4 2011

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Nedbank’s chief economist, Dennis Dykes, is often invited to speak at conferences on the interaction between climate change, water management and environmental issues. 25º in Africa spoke to Dykes to find out more about his perspective on water management issues, acidmine drainage, the planned carbon tax and the upcoming United Nations Conference of the Parties on climate change to find out how the financial sector is being affected by environmental issues in the country.

The price of water At the South African Water and Energy Forum, which was held in Sandton in the beginning of the year, Dykes said that the price of water needs to reflect the cost of delivering this resource. He also said that the water debate needs to advance to a more sophisticated level to ensure an integrated approach by all sectors of the economy.

“As with many areas of government policy, commitments and targets are set, but an integrated approach is not always taken to ensure that the goals are met. For example, ministers often refer to new economic initiatives, but these initiatives involve more water or cleaner water resources, with no details about how we are going to ensure that the projects can be implemented in a sustainable way.

The same applies to our energy sector – many of these discussions

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happen in a vacuum, without taking all of the country’s realities into consideration,” says Dykes.

Why can water management be seen as a banking problem?

“The private sector and banks in general need to become involved in debates about policies and regulations about water management systems and initiatives. Taking part in water management initiatives and contributing to the debate not only contributes to the general health of the economy and the stability of our economic growth, but a lack of participation in this sector can also be extremely detrimental to economic potential. If South Africa’s water supply and systems aren’t managed in a sustainable way, they can have a direct impact on bank lending because water supplies and prices can affect house and other asset prices, and therefore they could hurt bank collateral and bank loans. So there’s definitely a self-interest aspect in ensuring that our country’s water supply is managed correctly – it’s not necessarily a only banking problem, but banks can make a positive contribution to the discussion and be part of the solution”, says Dykes.

Is too much responsibility placed on the private sector to solve acid-mine drainage?

“Acid-mine drainage was caused by mining activity in the first place and one can argue that the future costs to society resulting from this problem should originally have been taken into account during production and if they were not that they should now be borne by current mining activity. However, distributing liability and responsibility evenly is not easy – because many of the mining companies that caused or contributed to the problem are no longer in business. Taxing mines that are currently in operation could hurt the industry disproportionately and lead to output collapsing and jobs being

P ER S P EC TI VE S

The carbon tax According to the Treasury, the carbon tax’s form and introduction schedule will be released in next year’s budget. In March, the Treasury hosted a carbon-tax conference and invited members from the economic development sector, trade and industry as well as various members of other market sectors.

“It was interesting to see how people with interests in the various sectors of our economy have different opinions on the carbon tax. The Treasury is convinced that a carbon tax is a good way to change consumer behaviour, but many of the people at the conference – including other policmakers from other departments – were uncertain about the tax’s value and also felt that – if implemented – the money derived should be at least be ring-fenced and applied to environmentally-friendly technology. The Treasury, on the other hand, argues that this carbon tax should go into general funds and that the public should trust the different mechanisms to determine allocations. I can see the Treasury’s point of view on this, but it would be easier to sell a carbon tax to the public if everyone knows exactly how the money is spent,” continues Dykes.

lost. The issue of acid-mine drainage is a tricky one – I would like to see more urgency, support and leadership from government, but there will need to be a consultative process. Acid mine drainage is another classic example of how the government and private sector need to work together to create a joint solution,” says Dykes.

The SA budget speech In his 2011 budget speech, the South African Finance Minister, Pravin Gordhan, noted that the country will be hosting the 17th United Nations Conference of the Parties on climate change (COP17) and that “our own efforts to green our economy will come under special scrutiny”. The amount set aside for COP17 is ZAR223-million.

Gordhan made several references to the green economy in his budget speech. According to the government’s New Growth Path, which aims to create 5-million jobs over 10 years, the green-job sector aims to create 660 000 jobs by 2020. The figures, however, are slightly different to those in the New Growth Path presented to Cabinet in October 2010 (which states that 300 000 new jobs will be created by 2020).

“The job targets in the New Growth Path are precise but how they will be achieved is extremely vague. The specific sectors mentioned include manufacturing, renewable energy construction, natural resource management and so forth, but few specifics have been given. Some of the initiatives that are being considered are our solar water heating projects, which will create manufacturing jobs – if manufactured locally – and other plumbing jobs for mass installation projects. However, these may not provide the amounts of jobs envisaged. A total of 660 000 ‘green’ jobs by 2020 is a high target and it would be impressive if we manage that. Even so, it is encouraging that it is on the agenda,” says Dykes.

“If the point of such a tax is only to change consumer behaviour, it may be superfluous as increasing electricity prices are already forcing companies to look at more sustainable and energy-efficient business practices. For example, a company that already spends 20% of its turnover on electricity, may already be under severe pressure and could be forced to close down if they are also subjected to an additional cost in the form of a carbon tax,” says Dykes. “Again, balance, an appropriate time to adjust and help with energy efficient methods are all needed as part of the package to reduce overall carbon emissions over time.”

COP17 In practical terms one of the main outcomes of last year’s COP meeting was the agreement around the creation of a Green Climate Fund, which will consist of US$100-billion a year by 2020, and a fast-tracked fund of US$30billion. Initially, this fund will be administered by the World Bank. Developing countries will be able to apply for funding from the Green Climate Fund. All eyes now turn to Durban, where COP 17 will take place at the end of 2011.

This will be the final conference before the first commitment period of the Kyoto Protocol expires in 2012 and there is great hope that there will be more clarity on the post-Kyoto architecture after Durban. While few people expect a big-bang agreement in Durban, there is keen interest in how South Africa will provide leadership in the negotiations.

“There is a big international focus on COP17 and South Africa is very much on the centre stage. From a national perspective, we can provide leadership to create an agreement that will be relatively binding and take us forward on combating climate change. What I would like to see, is that any such agreement is fair from a developing- as well as a developed-world perspective. There will be multiple objectives for a binding agreement, but certain economies can adapt at a quicker pace, so I would like to see an agreement that reflects these realities – which is easier said than done.

If the efforts we make in Durban are too vague or non-binding, we might regret our leadership on these issues in 10 years’ time. It would be fantastic if something meaningful could emerge from the conference – to have South Africa associated with this would be very positive,” concludes Dykes.

25º in Africa would like to give thanks and acknowledgement to Dennis Dykes and Nedbank for the information contributed for this article.

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PER S PECT IV E S

Spare some energy for an Written by Nichelle Lemmer

Berhard Oettli, an international consultant at INFRAS, is of the opinion that the government should guard against wasting time in finetuning the National Energy Efficiency Strategy. During the National Energy Efficiency strategy workshop, he gave an overview of the European Union’s strategies on energy-efficiency.

“The strategy will never be 100% perfect, and won’t be liked by all the stakeholders. Spare some energy for the next important step,” Oettli advised. He believes that actions speak louder than words. Acoording to Oettli, the key factor in successfully implementing the strategy is to develop an action plan. “The plan should clearly assign responsibilities to relevant parties to yearly reduce gas emissions and to reach specific targets.”

European countries that are committed to increasing energyefficiency aim to reduce carbon emissions by 50% before the year 2030 He said it is important to create an environmental impact framework that incorporates the strategy and an action plan. “European countries that are committed to increasing energy-efficiency aim to reduce carbon emissions by 50% before the year 2030. If carbon emissions are reduced sufficiently, a rise of 2º in the earth’s temperature can be avoided.”

According to Oettli, an efficient way to implement a successful framework is to clearly define targets. “Energy-efficiency is just one of the building blocks to become greener and it is a useful tool to reduce greenhouse gas emissions.” Other components of the framework that also need attention, are the energy market and issues like safety and security of energy.

Oettli believes that a successful action plan includes using a combination of instruments to motivate stakeholders across all sectors to participate. This is done by going into voluntary agreements, developing and enforcing new legislature and offering incentives such as tax reductions.

He said the 27 European countries committed to become greener improved energy-efficiency in their industry, residential, transport and other sectors with success. “Progress has been made, but it is not the end of the line,” Oettli said. “To reach the year 2030 target, greenhouse gas emissions still have to be reduced to a fifth of what is produced now and countries have to take even more active steps to get results.”

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According to him, one of the sectors with the most potential to increase energy-efficiency is the building industry. “Austria is one of the European frontrunners in increasing energy-efficiency. They use incentives such as offering tax reductions for buildings that use superior window glazing for better insulation.

Oettli said France incorporates policies to build buildings that generate more energy than it consumes. This is part of their programme to establish low energy building standards. “Germany invests in a retrofitting programme that entails the use of new technology to better energy-efficiency, like improving old buildings with energy-efficiency equipment.”

“Builders in European countries adopt greener standards when developing new buildings,” he said. “These countries use specific tools such as tax reductions to promote the development of low energy buildings.” According to Oettli, Portugal uses energy labels for buildings using the same labelling system that is applied to household appliances.

Oettli said the transport sector is also a good place to start when investing in energy-efficiency. “European countries started to invest heavily in programmes to organise public transport structures more efficiently. South Africa can even use town planning successfully to promote the use of the public transport system by bettering connections and making it easy for commuters to use.”

He said another tool implemented in Europe is an eco-driving awareness campaign to inspire motorists to be more fuel-efficient and conscious drivers. “This can be legislated by including a compulsory eco-driving course in a driver’s license test.” Oettli is of the opinion that the development of slow-traffic facilities for pedestrians and cyclists can also enhance energyefficiency. “Develop special lanes for slow traffic and make sure these users can travel safely in towns and rural areas.”

The Industry can be changed by using energy public schemes such as energy audits and energy management programmes. “Go into voluntary agreements with industrial giants by giving them specific measurement tools to regulate their carbon footprint.” He said if companies get the chance to compare energy audit results with their competitors, it will create a healthy competitive culture to promote energy-efficiency.

25º in Africa would like to give thanks and acknowledgement to Berhard Oettli from INFRAS for the information contributed for this article.

INFRAS E-mail: bernhard.oettli@infras.ch Website: http://www.infras.ch

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ISO

energy-management standard published The launch of the International Standard ISO50001 on 15 June 2011 is likely to add further drive to the energy-management momentum that is building in South Africa. Energy is one of the most critical challenges facing the international community today. The International Organisation for Standardisation (ISO) estimates that this standard could have a positive impact on some 60% of the world’s energy use.

reduce energy costs. In order to make optimal use of energy, the ISO50001 standard requires both internal and external organisational changes. This includes everyone from security personnel who identify equipment in use outside of operating hours, to cleaning staff during their after-hour cleaning schedules and the purchasing department that continues to purchase energy-inefficient equipment. The ISO5001 facilitates the successful management of these changes for optimal energy management.

“In many ways the publication of the ISO50001 is well-timed for the South African market since we are once again moving into a situation where we find ourselves facing a supply-capacity constraint. Companies embarking on an ISO50001 drive will save money, gain international as well as local recognition, and help to alleviate the strain on the Eskom supply network going forward,” says Gustav Radloff, managing director of the local energy optimisation company Energy Cybernetics.

Professor LJ Grobler, director of Energy Cybernetics and a professor at the Northwest University, welcomes the release of the ISO5001.

According to him, indications are that the ISO50001 will have a bigger impact on international trade than the ISO90001, the quality-management standard. “The standard’s release opens local job-creation opportunities as organisations now need assistance to make them ready for the ISO50001 certifications process,” says Grobler. Leading up to the release of the standard, the company already identified the skills requirements and Energy Cybernetics’ training division has developed a two-day course for organisations to understand and become equipped on the implementation of the ISO5001.

The development of the ISO50001 over the last three years will now provide organisations with a recognised framework for integrating energy performance into their management practices. ISO secretary-general Rob Steele says “Individual organisations cannot control energy prices, government policies or the global economy, but they can improve the way they manage energy here and now.”

Often an energy-management tool can be confused with a technical tool such as a datalogger or SCADA system. The ISO50001 standard is an energy-management standard which stipulates a set of interlinked processes, practices and procedures driven by a clear policy, with the aim to

For more information regarding the ISO50001, visit www.iso.org, or contact Gustav Radloff on +27 12 369 9880 or e-mail: gustav@energycybernetics.com.

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nigeria

shortlists bids for power privatisation Nigeria’s National Council on Privatisation (NCP) has approved the shortlisting of 525 bids of firms seeking to take over the generation and distribution companies that will emerge from the privatisation of the country’s power monopoly, Power Holding Company of Nigeria (PHCN).

The Bureau of Public Enterprises (BPE), which is handling the privatisation process, sought prospective investors’ interest in the 11 distribution companies unbundled from the PHCN last year. It also invited interest in the four thermal power stations and concessionaires for the two hydropower stations.

Background on Nigeria’s power privatization According to the Financial Times, the state-owned power company – National Electric Power Authority (NEPA) – has given Nigeria one of the lowest per capita supplies of electricity in the world. To address the poor operational and financial performance of Nigeria’s National Electric Power Authority (NEPA), the government has decided to remove it as a monopoly and invite foreign investors to join what could be one of Africa’s biggest privatizations.The privatization aims at spurring the US$10-billion of investment needed to revive the country’s power system.

“The private sector will be responsible for generation and distribution companies, while the government will continue to own the transmission system, but under private sector management,” said Nigerian President Goodluck Jonathan at a press briefing in August last year.

companies, making the necessary investments to improve the distribution network and customer service in line with the objectives of Nigeria’s government as set out in the National Electricity Power Policy (NEPP).

According to the Nigerian edition of Business Day, a breakdown of the bids shows that 253 of the bids were pre-qualified for distribution companies while 272 were for generating companies. The pre-qualified bidders will be required to pay a US$20 000 fee for each company of interest and sign a confidentiality agreement before receiving bid documents. The BPE will require technical and financial details for the bidding information to be submitted at the next stage.

Nigeria, which is sub-Saharan Africa’s second-biggest economy, is in dire need of ending electricity blackouts, which has been hampering the country’s economic growth and curbing its ability to harness potential returns for investors in the nation. While Nigeria is sub-Saharan Africa’s biggest oil and gas exporter, most of its 150-million citizens enjoy only a few hours of electricity a day at best. Private generators have become the main source of power – costing Nigerians an estimated US$13-billion a year.

Successful bidders will be responsible for operating the distribution

Sources: www.africanmanager.com, af.reuters.com, www.ft.com.

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The Ruaha River enters the Mtera Hydroelectric Dam in Tanzania. Photo: deomfugale.wordpress.com

Power cuts predict dark future for Tanzania Written by Nichelle Lemmer

Dar es Salaam – Times look tough for Tanzania as the country’s economy and people are still left in the dark until the country’s power shortages are resolved. The power crisis reached new heights in June, when the Tanzania Electricity Supply Company (Tanesco) announced a 12-hour power rationing schedule following a drastic drop in the water level of the Mtera Hydroelectric Dam in the Iringa region.

Tanesco said the dam’s water level is critically low. According to them, the rationing would affect 15 regions, depending on power production and usage. This time Tanzanians should prepare themselves for the worse as the power utility firm did not state when the rationing would end.

This will further bring many businesses to a grinding halt in regions connected to the national power grid.

Areas affected are Dar es Salaam, Coast, Morogoro, Tanga, Singida, Tabora, Shinyanga and Mwanza.

Others are Mbeya, Mara, Manyara, Kilimanjaro, Iringa, Dodoma and Arusha.

David Jairo, secretary in the Ministry of Energy and Minerals, said to the Tanzanian media that the power situation in the country is critical following a drop of the Mtera Dam’s water level. “The situation threatens power generation to altogether stop at the main hydroelectric facility in the country,” he says.

According to him, the Mtera Dam is at the point of drying up and the government will be forced to close it at any time.

Study reveals more on climate change and power generation A study done by Stacey Noel at Stockholm Environment Institute’s Africa Centre about the economics of climate change in Tanzania in 2010 shows that the majority of Tanzania’s power generation comes from hydropower. According to the study, Tanzania’s reliance on hydropower was much higher in previous years. In 2002, 97% of the country’s grid-based electricity came from hydropower and recurrent droughts leading to power rationing have caused huge losses to the economy. This resulted in 1.1% slower growth in 2007, a 0.9% drop in 1997 and a decline of 3.8% in industrial growth in 1994.

According to a 2010 World Bank report, the economic cost of power shortages in terms of the cost to businesses of running back-up generators and the losses from foregone production has resulted in a loss of over 4% of GDP annually.

The power shortages also act as a long-term drag on economic growth. The situation is only expected to worsen: a 2009 study that considered possible impacts on hydropower by 2030 under “moderate climate change” and “high climate change” scenarios projected losses of 0.7% and 1.7% of the GDP due to decreased rainfall in the central region of Tanzania, where 95% of the country’s hydropower installations are expected to be located by 2030.

In February the country’s economy already took a huge hit after about 50 industries suspended their operations due to the power crisis. The Parliamentary Committee on Minerals and Energy was informed by the business community that almost a quarter of their 280 members had failed to go on with operations due to damages and costs caused by power cuts.

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Eskom executive committee

financial report After the annual results for the state-owned entity was released, it came to light that its executives had received an average of 109% increase on their salaries for the financial year that ended on 31 March 2011.

According to Eskom’s directors’ remuneration report, R18.5-million had been paid out to its executive committee members. This amounts to ZAR9.7-million more than in the 2010 financial year, which saw Eskom paying out ZAR8.8-million.

Eskom’s human resources manager received an increase of 507%, taking home ZAR3-million rand in comparison to ZAR501 000 in 2010. Finance director Paul O’Flaherty received an increase of 346%, taking home ZAR4.9-million, and CEO Brian Dames received a 0.9% increase and took ZAR5.7-million home.

Dames said that the management team all agreed not to receive any bonuses if they could not keep the lights on or achieve targeted savings.

Directors’ remuneration According to Eskom, their management remuneration is linked to the performance of the organisation and the individual’s contributions. They further add that market factors are also crucial as rewards and remuneration must be kept at levels that will assist them in retaining key leadership skills.

“Basic salaries are augmented by short- and long-term incentives.”

The Eskom Integrated Report for 2011 states that international and local benchmarks are considered to ensure executive packages are aligned with these offered by companies of similar stature to Eskom. “We aim to remunerate in line with the median of the market to recruit and retain the best management team to lead our business.” The parastatal further adds: “When compared to similar entities our salaries are towards the lower end of the norm.”

The Eskom Integrated Report for 2011 states that international and local benchmarks are considered to ensure executive packages are aligned with these offered by companies of similar stature to Eskom.

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Eskom’s Integrated report also states that the executive remuneration strategy is constantly reviewed to stay aligned with the Department of Public Enterprises remuneration guidelines and abreast with best practices.

People and governance committee This committee is in place to help the board to apply policy relating to the remuneration of directors and executives as set by the shareholders. The nomination of executives for senior positions and conditions of service is also covered by this policy.

The committee develops the business performance by: • Approving, guiding and influencing key human resources policies and strategies.

• Monitoring compliance with the Employment Equity Act. • Guiding strategies to achieve equity at Eskom.

• Approving the principles governing reward and incentive schemes.

The non-executive directors receive a fixed monthly fee and are reimbursed for out-of-pocket expenses incurred in fulfilling their duties.

Non-executive directors Eskom says the remuneration of non-executive directors is benchmarked against the norms for companies of similar size and is in line with guidelines issued by the shareholders. Remuneration proposals from the people and governance committee are forwarded to the board. The board then makes recommendations to the shareholders.

The non-executive directors receive a fixed monthly fee and are reimbursed for out-of-pocket expenses incurred in fulfilling their duties.

Executive management (exco) members The committee makes recommendations to the board concerning the remuneration of the chief executive, and approves the remuneration of the other exco members. The remuneration is considered in accordance with a framework approved by the shareholders.

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The factors that influence the remuneration of the exco members consist of experience, skill levels and contribution to organisational performance and success of the group. This comprises of a basic package as well as short- and long-term incentives.

The people and governance committee reviews the structure of these packages every year to ensure an appropriate balance between fixed and variable remuneration, as well as long- and short-term incentives and rewards.

Guaranteed amount A guaranteed pay package with remuneration based on cost-to-company is received. This is made up of a fixed cash portion and required benefits (medical aid, life cover and pension). This guaranteed remuneration amount is reviewed every year in order to keep the compensation in line with the market.

Remuneration structure Exco members’ remuneration includes the following components: • Short-term incentives According to Eskom, these reward the achievement of individual predetermined performance objectives and targets as set by the chief executive in performance contracts with each exco member. The targets that are set by the chief executive are approved by the people and the governance committee. This incentive scheme is calculated as a percentage of pensionable earnings.

• Long-term incentives These incentives are designed to attract, retain and reward the exco members for meeting the organisational objectives set by the shareholders. On 1 April 2005 a market-benchmarked long-term incentive- and deferred bonus scheme was approved effectively.

On 1 April 2007, 2008, 2009 and 2010 a number of performance shares were awarded to the exco members. The awards for 1 April 2009 and 1 April 2010 were awarded retrospectively on 31 May 2011.

The Eskom Integrated Report for 2011 states that the value of the performance shares are deemed to be ZAR1 each at the grant date, and is escalated at a money-market rate to determine the value at reporting date.

Performance conditions were set by the board in line with the Eskom business plan and shareholder compact over a three-year performance period. These performance conditions cover financial and non-financial targets. This entails the guarantee of the business sustainability of Eskom, ensuring reliability of supply to all South Africans, ensuring that the future power needs of South Africa are adequately provided for and supporting the developmental objectives of South Africa, with an agreed weighting in each category.

Deferred bonus scheme Bonus shares were offered to the exco members, non-exco members and senior general managers participating in the scheme. The members

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Shares vested on 31 March 2011: Name Award Award Award Deferred Deferred Performance performance performance bonus shares bonus shares

shares vested on shares vested on payable vested on at R1.58

31 March 2011 31 March 2011 at R1.29 per share 31 March 2011 per share

at a rate of 47.32%

Number Number R Number R BA Dames 2 122 050

1 004 154

1 295 359 – – EL Johnson 1 642 200

777 089 1 002 445 – – SJ Lennon 1 715 834 811 933 1 047 394 150 000 237 000 Other1 12 514 542

5 921 881 7 639 227 339 007 535 631 Share awards – vesting The current estimated vesting values of the award performance shares are R1.21 per share for the 1 April 2009 awards (vesting 31 March 2012) and R1.23 for the 1 April 2010 awards (vesting 31 March 2013). The value of the performance shares allocated does not take into account the impact of performance conditions over the applicable three-year performance periods. The respective values estimated for the 2009 and 2010 bonus shares are R1.21 and R1.23 per share respectively. The vesting percentage of 47.57% and 50.00% for the 2009 and 2010 bonus shares, respectively, are estimates.

Award performance shares and deferred bonus shares to be awarded as at 1 April 2009 and 1 April 2010 were deferred pending the outcome of an investigation into the remuneration policy of state-owned enterprises by the Department of Public Enterprises.

The board awarded the 1 April 2009 and 1 April 2010 awards retrospectively on 31 May 2011.

Eskom is well on track to be financially sustainable.

This is driven,” said Dames. who decided to participate in this scheme had the right to accept a certain number of bonus shares as a percentage of their annual bonus after tax. The value of the bonus shares were determined at ZAR1 each and escalated at a money-market rate over the three-year performance period.

The participants receive a matching amount equal to the value of the bonus shares at the end of the performance periods in addition to the value of the accepted bonus shares.

If employment comes to an end (other than for permitted reasons) during the performance period, only the value (without any matching award) of the bonus shares which were originally accepted by the participant will be paid.

The payment is done on termination of employment.

Share awards – vested According to Eskom, the performance shares awarded on 1 April 2008 vested on 31 March 2011 with an expected vesting rate. This was due to the achievement of non-financial performance conditions of 47.32% over the three-year period. The value of the vested shares is payable on 1 June 2011 at ZAR1.29 per share based on the money-market rate.

The overdue bonus shares taken up on 1 April 2008 have now become fully vested and have qualified for the one-for-one share match on 31 March 2011 in terms of the scheme. These shares are valued at ZAR1.29 per share. Therefore the remuneration value of the bonus shares add up to ZAR0.29 per share plus ZAR1.29 per share related to the matching share.

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Conclusion Eskom showed a netto profit of ZAR8.4-billion for the year. According to Eskom, the latest profit was made on proceeds of ZAR97.4-billion. This is an increase of 29% from the 2010 financial year.

According to Dames, the growth in revenue was driven by the tariff increases. He also stated that the profit had been reinvested in Eskom.

“We cannot continue successfully with our massive build programme if we are not as profitable as this. The total interest repayment on the debt that we have incurred for our build programme is still exceeding our netto profit.”

This state-owned entity has a capital disbursement of ZAR450-billion.

The interest and debt repayments in the 2011 financial year were about ZAR18-billion.

“Eskom is well on track to be financially sustainable. This is driven extensively by the fact that we now have tariffs moving towards cost-reflective rates. This is allowing us to invest back into the business,” said Dames.

Dames also added that Eskom had secured more than 70% of its funding requirements. The parastatal hopes to obtain the remainder of the outstanding amount during this financial year. According to Dames, the utility is well on track to add 12 000 MW on the grid by 2019.

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develop local talent. While in South Africa, the Cummins delegation was hosting meetings with business leaders, touring its facilities and celebrating the official opening of the new Cummins Africa headquarters in Woodmead, Johannesburg.

According to the resident and chief operating officer of Cummins, Tom Linebarger, Southern Africa is an important business region for Cummins with a potential market of over $1-billion. Cummins’ products and services have been distributed in South Africa since 1946. In 2000, the company established itself in South Africa as a wholly-owned Cummins subsidiary and it has 12 distribution centres throughout Southern Africa.

The chief operating officer and president of Cummins, Tom Linebarger, cuts the ribbon at the official opening of Cummins Africa in Woodmead, Johannesburg, on 3 June 2011.

US power company opens African headquarters in JHB

On 3 June, senior executives from the engine, power generation and related technologies company, Cummins Inc, visited their new African corporate headquarters as part of a pan-African tour to evaluate the progress of the company’s strategy to significantly grow its business across the continent.

Cummins’ strategy aims to push its resources closer to customers and

Cummins operates 25 facilities in Africa, has more than 1 100 employees and annual sales of approximately US$264-million. Key markets are expanding, with power generation expected to grow to US$6-billion, mining to US$1-billion and filtration to US$500-million by 2020. Cummins is committed to help drive and share in this growth across Africa, with a vision of achieving over US$2-billion in sales and leading market-share positions by 2020.

“With more than half of our revenue currently generated outside our home market in the US, Cummins understands the mutual value of a global company partnering with local talent and engaging in local communities,” commented Linebarger.

For more information, visit www.cummins.com, to which full acknowledgement and thanks are given.

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Plans set in motion to increase electricity capacity Written by Nichelle Lemmer

The Zimbabwe Electricity Supply Authority’s (ZESA) expressed interest to attract suitable financiers and contractors for the expansion of two of the country’s existing power stations is a step in the right direction. Vincent Maposa, an Energy and Power Industry Analyst at Frost and Sullivan, an international growth and partnering company, believes the planned upgrade of $1.3-billion will help the country to meet its electricity-generating capacity.

“An increase in 900 MW by 2013 will bring the total available electricity capacity of the country to 300 MW within their projected demand,” explains Maposa. “The country currently has an available capacity of 1 400 MW, including about 300 MW of electricity imports.”

Elton Mangoma, Zimbabwe’s Minister of Energy and Power Development, was in South Africa recently to negotiate a power-import deal to supplement the planned upgrade.

Elton Mangoma, Zimbabwe’s Minister of Energy and Power Development, was in South Africa recently to negotiate a power-import deal to supplement the planned upgrade. This could result in Eskom exporting electricity to Zimbabwe during off-peak periods. “ZESA’s plans to expand the Hwange and Kariba power stations could have an effect on private sector power deals,” Maposa states. He says it is possible that the Zimbabwean government will increase ZESA’s capacity without relying on the supply of electricity from power plants. “Large-scale privately-owned power plants are not a plausible short-term solution as the plants will not be constructed any time soon,” Maposa further explains.

Private sector deals According to Maposa, private sector penetration into electricity generation has remained unfeasible in Zimbabwe because of the pricing and regulatory factors. “Situations such as these are not just found in Zimbabwe,” he says. “The majority of ongoing capacity increases within the South African Development Community (SADC) are developed by governments and stateowned utilities.” He explains that intricacies of project financing vary across SADC countries. “Generally governments stand as guarantor for loans issued to state utilities.”

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Maposa says electricity tariffs across the SADC countries differ considerably. “In order to increase trade in power, countries need to achieve greater price parity. For example: Eskom is increasing its prices by 25.8% per annum until 2013, raising Eskom’s average tariff to 15.6 US cents/kWh.” He says ZESA expected to be a netto importer of electricity for the next five

He believes that pricing is not the hurdle Zimbabwe needs to overcome to increase the resource-rich country’s installed electricity capacity. “The establishment of an independent systems and markets operator (ISMO), and legislative and regulatory amendments, are some of the basic fundamentals that need to be addressed,” Maposa says. to seven years, and is currently selling electricity to domestic consumers at an average price of 7.5 US cents/kWh. “ZESA needs to effect price increases similar to these of Eskom in order to enhance its ability to import power.”

He believes that pricing is not the hurdle Zimbabwe needs to overcome to increase the resource-rich country’s installed electricity capacity.

“The establishment of an independent systems and markets operator (ISMO), and legislative and regulatory amendments, are some of the basic fundamentals that need to be addressed,” Maposa says. “This will allow privately-owned power generators to engage with the development of large power plants.”

25º in Africa would like to give thanks and acknowledgement to Vincent Maposa and Frost and Sullivan for the information contributed to this article.

Frost & Sullivan Tel: +27 21 680 3566 Fax: +27 21 680 3296 Website: www.frost.com

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pump and a 3 200 1 electrical element boiler. Peak power consumption after the upgrade shows a demand saving of 81% and an average saving of 60%.”

According to Howarth, the installation also included 2,8 kW heat pumps to the existing geyser in each timeshare unit at the resort, as well as the fitting of low-flow, energy-efficient shower heads. “Peak demand savings are 70% and the average savings are 91%.”

Magnet specialises in the supply, implementation and support of electrical equipment and industrial instrumentation throughout South Africa.

Magnet Tel: +27 31 274 1096 Email: brianh@magnetgroup.co.za Website: www.magnetgroup.co.za

New energy-efficient fittings for Champagne Sports Resort KwaZulu-Natal’s Champagne Sports Resort has invested in energy-efficient electrical and plumbing fittings, which are significantly reducing the resort’s electrical consumption.

As part of the resort’s energy-saving programme, Magnet installed heat pumps and low-flow shower heads in the hotel block and timeshare chalets.

Brian Howarth, the managing director of Magnet, said: “This project involved the retrofitting of a 20 kW heat pump to the existing tank in the main hotel block. This tank was previously serviced by one 48 kW heat

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e N ER GY EFF I C I EN CY

eta Awards goes online with popular voting Written by Dave Soons

Meinhard Fourie from Geyserwise won the Commercial category for the system that reduces energy use of geysers by nearly 50%.

South Africans with energy-saving ideas can now turn their ingenuity into R30 000 in hard cash by entering the eta Awards Facebook Popular Vote online. The eta Awards is an annual event sponsored by Eskom, which has been running for the past 22 years, awarding excellence in energy efficiency. Facebook fans of “The eta Awards South Africa” page can submit photographs with descriptions of their energy-saving projects online and, for the first time ever, all interested South Africans will be able to have a say in the outcome of an eta Awards category. The 2011 eta Awards marks the 22nd anniversary of this annual competition, which is sponsored by Eskom and endorsed by the Department of Energy.

“By moving with the times and encouraging people to enter the eta Awards online, we believe that more people will be encouraged to share their trendsetting ideas with the nation,” says Dr Steve Lennon, divisional executive at Eskom International and chairman of the eta Awards.

“The Facebook fan page Popular Vote category will be added to the ‘formal’ competition, which will still have its rigorous adjudication process. The increased accessibility offered by Facebook means that anyone can read about the awards and enter at any time they choose.

“The eta Awards South Africa” fan page went live at midnight on Friday, 1 July 2011, and will remain open for entries until midnight on 26 August 2011.“After the entries close, fans of the awards will be able to vote for what they consider to be the best energy-saving idea or photograph submitted to the Facebook fan page. The popular vote will close on 10 October and the five ideas receiving the most votes will be reviewed by the judges,” adds Dr Lennon.

The “formal” side of the awards will still involve competitors across the comprehensive categories submitting their entries by Friday 5 August for review by judges on Friday, 26 August.

“The winners of each category will receive cash prizes of R30 000. The two runners-up in each of the formal categories receive R5 000, subject to the judges’ discretion.

Further information on the eta Awards can be obtained from Annamarie Murray on murraya@eskom.co.za or e-mail amroux@mweb.co.za; or at www.eta-awards.co.za. Visit the fan page on Facebook at www.facebook.com/etaAwards.

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eNER GY EFFICIE NCY

Technology and market changes

as opportunities to reduce energy intensity – Part 2

By Dr Gunnar Hovstadius, PhD Dr Gunnar Hovstadius (centre) with fellow workshop facilitator Steve Bolles (left) and national IEE project manager Gerswynn McKuur (right).

In the previous issue, Dr Hovstadius addressed the need for cooperation between government and industry in energy conservation, citing the US as a precedent for success. He illustrated the impact of applying a total systems approach as one of the fundamental ways to reduce energy intensity in industrial processes, as opposed to focusing on individual components. In part 2 of this article, he shares another example and concludes with a proposed way forward.

Another potent example

A possible way forward

Some industrial facilities have begun to use the systems approach and lifecycle cost (LCC) analysis to identify opportunities and to realise substantial savings. In one case, a chemical manufacturing plant sought to minimise the lifetime cost of its pumping systems. An “intelligent” pumping system for a cooling tower application was applied to the plant, and stringent performance parameters were set to prove the manufacturer’s claims.

These included a 50 000 hour mean time between failure, 10 000 startstops and run-dry capability.

This example, which is typical, highlights the value of quantifying the lifetime savings available through systems-efficiency improvements. Unfortunately, most industrial end-users do not employ this life-cycle analysis methodology during new system design or existing system retrofit.

The installed system consists of a standard centrifugal pump, a variable speed drive, instrumentation, a microprocessor and special software. The software interacts with instrumentation signals to sense process conditions.

The system detects and prevents the pump from operating under damaging conditions, such as inadequate net positive suction head (NPSH), dry running, or operating against a closed suction or discharge valve. It is also capable of recognising and adjusting to changing operating conditions and allowing normal pumping operation to resume following system transients.

A low-flow monitor detects a dry-running condition, as well as operation below minimum flow or against a closed suction or discharge valve. The pumping system also includes safeguards to protect against high pressure, high temperature, excessive electrical current and excessive speed.

Self-diagnostic features compare the pump performance to the “as new” performance of the system, sounding an alarm when actual performance degrades past a certain value.

Although the software, microprocessor and instrumentation were added upfront costs, the total installation cost was actually slightly lower than the cost of a standard pumping system installation of this size. This is largely because typical system components such as a control valve, external flow meter, separate starter and recirculation line piping were not needed. Also, the design avoided the added expense of purchasing an oversized pump and motor.

Based on a 15-year equipment life, 24 hour per day operation and other calculations, the calculated total LCC savings are ZAR1.9-million for a single pumping system. To date, the actual savings measured closely match the savings calculated during the LCC analysis.

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With such clearly defined and documented benefits, why isn’t the approach to selling systems working as well as it should be, and what can be done about it? Why aren’t plant managers considering quickly adapting their pumping systems’ opportunity to reduce the cost of operation?

Pull ou quote: A report from the Finnish Technical Research Centre notes that there is plenty of room for improvement when it comes to pumping system efficiency. A review of 1 760 pumps at more than 20 industrial sites showed that the average pumping system efficiency was below 40%, with 10% of the pumps operating below 10% efficiency.

Simple, already available improvements in the design of pumps and systems could save 75-billion to 122-billion kilowatt-hours annually – enough to power 7-million to 12-million households for one year. The associated cost savings would be between ZAR20.4-billion and ZAR35.4billion, making this kind of effort not only good “corporate citizenship”, but good business as well. The potential benefits in addition to energy-cost reduction include improved control over production processes, reduction in waste materials and improved environmental compliance.

Rethinking the way industry uses energy is not only a matter of good business sense, though. Unless we change our mindset and practices, industries are bound to lose competitive advantage in a global marketplace where energy-efficiency ranks high.

Industrial Energy Efficiency Improvement Project in SA Tel: +27 12 841 2768/+27 21 658 2776 Website: www.iee-sa.co.za About the author Dr Hovstadius is one of the internationally recognised specialists contracted

by UNIDO to present training workshops in South Africa on behalf of Industrial Energy Efficiency (IEE) improvement project.

e N ER GY EFF I C I EN CY

Participate in the industrial energy efficiency improvement project

• Become more Energy Efficient • Cut Energy Costs • Reduce Carbon Emissions • Improve Operational Reliability and Control The IEE Project was started in 2010 in response to the growing need to improve energy efficiency in the country.

A collaborative project between the Department of Trade and Industry, the Department of Energy, UNIDO, the Swiss State Secretariat for Economic Affairs and the UK Department of International Development, it supports companies in implementing Energy Management Systems and Standards (EnMS) and an Energy System Optimisation (ESO) approach as tools to achieve greater energy efficiency and increase profitability.

- categories for participation by industry partners Companies are invited to participate in the Project as Hosting Plants, Candidate Plants, and/or Demonstration Plants. The aim is to capacitate individuals, including company staff, and assist industrial plants through these participation models. This is done under guidance of UNIDO-contracted international experts.

• A Hosting Plant will accommodate the training of national EnMS and ESO expert candidates at its facility • A Candidate Plant is a facility that seeks to have some level of energy assessment or audit conducted at its premises • A Demonstration Plant will implement and showcase energy savings opportunities resulting from recommendations made by the IEE Project.

- benefits for hosting and candidate plants • Expert consultancy and assistance pertaining to EnMS and ESO (subsidised) • In the case of EnMS, the plant will receive a tailor-made EnMS aligned with ISO 50001 (subsidised) • In the case of ESO, the plant will receive an energy systems assessment (subsidised) • Participating plants may nominate a limited number of suitable candidates to attend the 2-day users-level as well as the expert-level courses offered by the IEE Project (subsidised) • The tacit transfer of knowledge and skills from international trainers and expert candidates to plant personnel • The IEE Project will facilitate, monitor and report on interactions with the various plants.

- training workshops The IEE Project offers regular training workshops on EnMS and ESO in Gauteng, the Western Cape and KwazuluNatal. ESO workshops focus on compressed air systems, pumping systems, steam systems, and fan systems respectively. All courses are presented by international experts at three levels, viz introductory level, technical user level, and expert level.

ENQUIRIES (also refer to the latest 25 Degrees e-newsletter) For bookings, more information and regular updates on future training events, please contact us on: 012 841 2768 (Pretoria) • 021 658 3983 (Cape Town) • Email: info@ncpc.co.za • www.iee-sa.co.za

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INS INS TANT TANT UPDATE UPDATE

China to lend Zambia US$285-million for power line The Industrial and Commercial Bank of China (ICBC) has announced that it will loan Zambia US$285-million for an electricity line linking southern and eastern Africa. “The construction of the power line will start in November 2011 and will be done by China’s TBEA”, said Ernest Mupwaya, managing director of Zambia’s power company, Zesco.The US$285-million loan will be used for the 365 km stretch that falls within Zambia and will be repaid over 20 years, with a five-year grace period.

“This development will not only improve security and reliability of support, but will also enhance cross-border power trade,” said Mupwaya, before adding that the interconnector line, which will link Zambia, Tanzania and Kenya, should boost mineral exploration, agriculture and tourism in the region. The line will also help with the development of Greenfield hydropower stations in Northern Zambia, whose construction, analysts say, continue to be hampered by a lack of connectivity to the national grid.

Source: www.zambianwatchdog.com

SESSA appoints permanent ombudsman Written by Dave Soons The Sustainable Energy Society of Southern Africa (SESSA) has appointed Carel Ballack as their permanent ombudsman to deal with the arbitration and mediation issues of the Society and its members, given the rapid growth of southern Africa’s sustainable and energy-efficient sectors.

Carel, who has extensive experience with a wide range of sustainable and energy-efficient technologies, takes over from Colin Bain, who previously handled the portfolio on a contract basis.

SESSA is dedicated to the use of renewable energy and energy-efficiency technologies, including solar-based energies (such as photovoltaics, thermal heating and cooling), wind, biomass and hydro. Its inter-disciplinary nature attracts the membership of the industry, scientists, researchers, developers and the general public – the only qualification is a keen interest in renewable energy and its utilisation to ensure a sustainable energy future.

“With the appointment of a permanent ombudsman, SESSA has taken the high road in ensuring it delivers on consumer expectations while meeting stringent quality standards.”“SESSA’s formal and documented code of conduct is intended to regulate the interactions of the various industry players with their customers, particularly in terms of Clause 1 of 16, which states that members shall enhance the honour, integrity and dignity of the sustainable and energy-efficient industry by maintaining high personal and business standards at all times,” said SESSA ambassador, Irvan Damon.

I N S TA N T

“Carel will not only mediate and arbitrate for the successful resolution of customer complaints, but his mandate also includes – among others – assisting members in interpreting and understanding their responsibilities in terms of SESSA’s code of conduct, of which the details are on our website, www.sessa.org.za.”

Ballack added: “I believe SESSA has a larger responsibility to the industry than just problem mediation. As ombudsman, I look forward to being a link in the chain that adds value to both SESSA members and the industry as a whole by focussing on regulation and training. “Already a dynamic and forward-thinking sector, there is still plenty of room for growth in the sustainable energy environment, and SESSA’s mandate is to become the pivot that supports the industry and provides direction to all parties concerned.”

SESSA Tel: +27 11 513 4071; +27 21 526 0476.

E-mail: info@sessa.org.za Website: www.sessa.org.za

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I N S TAN T UPD AT E

Joint African support office for climate change A Joint Secretariat Support Office (JSSO) for the African Union Commission (AUC), the African Development Bank (AfDB) and the UN Commission for Africa (UNECA) was launched in Addis Ababa. Coordinated by Mauritania’s former ambassador to the US, Ibrahima Dia, the JSSO will support common African policy positions in relation to the donor community and global forums, such as the G20 with regard to infrastructure development and climate change.

The Secretariat will address the need for strengthening cooperation and synergies among AUC, AfDB and UNECA regarding adequate infrastructure development to support regional integration and trade among African countries.

For more information, visit www.uneca.org, to which full acknowledgement and thanks are given.

Ban Ki-moon appoints Kenyan national as deputy executive director A Kenyan national, Amina Mohamed, has been announced as the assistant secretary-general and deputy executive director of the United Nations Environment Programme (UNEP).

UN Secretary-General Ban Ki-moon announced Mohamed’s appointment on 13 May 2011. Mohamed will succeed Angela Cropper of Trinidad and Tobago. Some of her responsibilities as the assistant secretary-general and deputy executive director of UNEP include further advancing the UNEP medium-term strategy and related reform agenda, as well as strengthening UNEP’s political and substantive input to the UN Conference on Sustainable Development in 2012 and beyond.

Mohamed was the ambassador and permanent representative of Kenya to the UN in Geneva. Some of her achievements included being the first woman to chair the General Council of the World Trade Organisation, and the first African and being first woman to be elected chairperson of the Council for the International Organisation for Migration.

For more information, visit www.unep. org, to which full acknowledgement and thanks are given.

bursary opportunity available

to young green enthusiasts Written by Nichelle Lemmer A bright future winks for Simon Alger from Cape Town and Lisa Mniki from Durban, who each walked away with a ZAR15 000 bursary from the South African Association for Energy Efficiency (SAEE) in November last year.

This opportunity is again available for the 2012 academic year. SAEE invites students in their second and third year of study in engineering, built environment and environmental fields of study, who do not have any existing financial assistance, to apply before 30 September 2011.

Successful candidates will receive their bursaries at the SAEE annual banquet and awards evening and the opening ceremony of the Energy Efficiency @ Work Convention and Exhibition on 16 November 2011 at Emperors Palace in Gauteng.

The bursaries are awarded to students who are enthusiastic in their quest to a greener and energy-secure future for the country.

Mniki’s field of study is town and regional planning. She learned more of environmental compliance and law enforcement as a trainee at Pravin Amar Development Planners.

Her dream is to become actively involved with development initiatives and the building of green cities through town planning.

Alger is conscious of his personal carbon footprint and he uses a bicycle to university whilst encouraging his friends to do the same. “My dream is to start a business to develop and implement technologies to improve energy-efficiency in industrial operations in the manufacturing and metallurgical sectors,” he says.

The South African Association for Energy Efficiency Tel: +27 18 293 1499 Email: info@saee.org.za Website: www.saee.org.za

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INS TANT UPDATE

Virtualisation: Optimised power and cooling to maximise benefits

By Eben Owen, enterprise and solutions manager: Schneider Electric Virtualisation is an undisputed leap forward in data centre evolution – it saves energy, increases computing throughput, frees up floor space and facilitates load migration and disaster recovery. However, less well known is the extent to which virtualisation’s entitlement can be multiplied if power and cooling infrastructure is optimised to align with a new, leaner IT profile.

While the virtualisation challenges of dynamic and migrating high-density loads, underloading of power and cooling systems and the need to ensure that capacity meets demand at the row, rack and server level are not new or unique to virtualised data centres, the combined simultaneous effects of virtualisation are focusing attention on them with a new urgency, especially in light of the growing interest in energy efficiency.

There are three key points to understand about virtualisation: • Power and cooling technology is available today to safeguard availability and meet the challenges of density and dynamic power that often accompany virtualisation and consolidation.

• Power consumption will always be lower after virtualising as a result of computing consolidation and physical reduction of the amount of IT equipment. With optimised power and cooling to minimise unused capacity, power consumption will typically be less.

• Data centre infrastructure efficiency, measured as Power Usage Effectiveness (PUE), will worsen after virtualising, due to fixed losses in unused power and cooling capacity. With optimised power and cooling to minimise unused capacity, power and cooling efficiency PUE can be brought back to nearly pre-virtualisation levels – sometimes even better, depending on the nature of improvements to the cooling architecture.

The comparison of pre- and post-virtualisation power consumption involves two concepts relatively new to data centre cost analysis.

Schneider Electric’s head office is the first building in the world to earn the new ISO 50001 certification In a world first, Schneider Electric’s head office (known as the Hive1) has been certified as complying with the new ISO 50001 standard for energy management systems. Schneider Electric is pursuing its commitment to continuously improving the energy efficiency of its buildings, reducing their environmental footprint and enhancing user comfort.

“This latest certification recognises our commitment to energy efficiency and our expertise in this field,” says Jean-Pascal Tricoire, president and CEO of Schneider Electric. “More than ever, we are aiming for the highest standards in energy management for both our customers’ buildings and our own. The Hive provides valuable feedback that we can leverage to develop efficient, operational energy performance solutions.”

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As mentioned above, the first is “fixed loss” – the amount of power consumed by devices and systems regardless of load – which is responsible for the often surprising inefficiency of underloaded systems.

The second is the distinction between energy consumption and energy efficiency, which can confuse a comparison of energy savings. Even without a parallel upgrade to power and cooling, virtualisation will always lower the electrical bill, but not usually as much as might be expected, because the presence of fixed loss in power and cooling systems and in spite of a reduction in power consumption by the data centre, the data centre’s PUE is typically worse after virtualising due to the inefficiency of underloaded power and cooling systems.

This lowered efficiency indicates room for improvement in power and cooling systems – it is, in effect, a measure of the potential for extracting even more value per energy Rand. When virtualising, a parallel upgrade of power and cooling infrastructure will optimise both architecture and operation in a number of ways that safeguard availability, enhance manageability, lower power consumption and increase efficiency.

In fact, row-based cooling, scalable power and cooling and capacity management tools specifically are essential elements in realising virtualisation’s full potential in cost reduction, efficiency and reliability.

These solutions are based on design principles that simultaneously resolve functional challenges, reduce power consumption and increase efficiency. The shift towards virtualisation, with its new challenges for physical infrastructure, re-emphasises the need for integrated solutions using a holistic approach – that is, consider everything together and make it work as a system.

APC by Schneider Electric Tel: +27 11 557-6600 E-mail: pierre.lintzer@apcc.com • apc@pr.co.za www.schneider‑electric.com • www.apc.com

The new ISO 50001 standard defines the requirements for the development, implementation, maintenance and improvement of energy management systems. It is designed to help organisations to continuously improve the energy performance of commercial and industrial buildings, optimise their use and reduce their operating costs.

Schneider Electric began adapting its energy management system in late 2010, based on the various drafts. Its compliance with ISO 50001 has also been recognised by AFNOR Certification2.

1. The Hive, a French acronym for “The Hall of Innovation and Energy Showcase”, is a 35,000 square-metre building that accommodates more than 1,800 employees in Rueil-Malmaison, France.

2. AFNOR Certification is France’s leading certification body and one of the top-ranking certification organisations worldwide. It has received accreditation for its certification activities.

Schneider Electric Tel: +27 (0)11 254 6400 E-mail: schneider@pr.co.za Web: www.schneider-electric.co.za

ENERGY EVENTS August Industrial and commercial use of energy Date: 15 – 17 August 2011 Location: Cape Town, South Africa Tel: +27 21 460 3660 Fax: +27 21 460 3728 E-mail: due@cput.ac.za Website: active.cput.ac.za/energy Sustainable water resource conference Date: 16 – 17 August 2011 Location: Johannesburg, South Africa Website: http://www.waterresource.co.za/content/ water-resource/conferences.html GIL 2011: Africa Date: 25 August 2011 Location: Cape Town, South Africa Contact: Patrick Cairns Tel: +267 297 2229 E-mail: patrick.cairns@journalist.com Website: www.gil-global.com/africa Young Geotechnical Engineers Conference 2011 Date: 31 August – 2 September 2011 Location: Kruger National Park, South Africa Contact: Yolandè Oosthuizen Tel: +27 11 728 8173 E-mail: register@rca.co.za Website: www.saieg.co.za/uploads/events/ YGE%20Announcement%20(Nov).pdf september African Water Leakage Summit Date: 6 – 7 September 2011 Location: Midrand, South Africa Date: 8 – 9 September 2011 Location: Cape Town, South Africa E-mail: zamas@wrp.co.za IPUC Conference Date: 13 – 14 September 2011 Location: Johannesburg, South Africa Contact: Veriza Smith – IPUC Organising Committee Tel: +27 11 325 0686 Fax: +27 11 325 0488 E-mail: veriza@2kg.co.za Website: www.taspumpmonitor.co.za

AFRI Water Date: 13 – 15 September 2011 Location: Johannesburg, South Africa Contact: Veriza Smith – IPUC Organising Committee Tel: +27 11 325 0686 Fax: +27 11 325 0488 E-mail: veriza@2kg.co.za Website: www.taspumpmonitor.co.za

Website: www.hydropowerafrica.com

WISA Conference Date: 15 September 2011 Location: Johannesburg, South Africa Contact: Veriza Smith – IPUC Organising Committee Tel: +27 11 325 0686 Fax: +27 11 325 0488 E-mail: veriza@2kg.co.za Website: www.taspumpmonitor.co.za

WinDABA 2011 Date: 27 – 29 September 2011 Location: Cape Town, South Africa Contact: Cheryl Peters Tel: +27 21 689 7881 E-mail: cheryl@windaba.co.za Website: www.windaba.co.za

Solar Energy Africa Date: 19 – 21 Sept 2011 Location: Johannesburg, South Africa Contact: Malvin Kane Tel: +27 21 700 3525 E-mail: malvin.kane@spintelligent.com Website: www.solarenergy-africa.com

The Sustainable Energy Seminar Date: 12 October 2011 Location: Johannesburg, South Africa Tel: +27 21 447 4733 E-mail: info@energy-resource.co.za Website: www.energy-resource.co.za

Groundwater: Our source of security in an uncertain future: Biennial Conference 2011 Date: 19 – 21 Sept 2011 Location: Pretoria, South Africa Contact: The Secretariat (Cilla Taylor Conferences) Tel: +27 12 667 3681 Fax: +27 12 667 3680 E-mail: confplan@iafrica.com Website: www.gwd.org.za Coal Energy Africa 2011 Date: 19 – 21 September 2011 Location: Sandton Convention Centre Johannesburg, South Africa Contact: Mario Haddon Tel: + 27 21 700 3500 Fax: +27 21 700 3501 E-mail: nicolaas.loretz@spintelligent.com Website: www.coalenergyafrica.com Hydropower Africa Date: 19 – 23 September 2011 Location: Johannesburg, South Africa Contact: Nicolaas Loretz Tel: + 27 21 700 3500

Africa Energy Week Conference & Exhibition Date: 20 – 23 September 2011 Location: Accra, Ghana Contact: Joanna Kotyrba Tel: +44 207 928 0092 E-mail: jkotyrba@thecwcgroup.com Website: www.thecwcgroup.com/press

october

Viridis Africa 2011 Date: 17 – 18 October 2011 Location: Johannesburg, South Africa.

Contact: Suza Adam, Spindle Communications cc Tel: +27 11 880 0364 Fax: +27 11 788 3697 E-mail: suza.adam@spindlecommunications.com Website: www.viridisafrica.com Africa Green Energy & Environment Summit & Exhibition 2011 Date: 17 – 20 October 2011 Location: Lagos, Nigeria Contact: Secretariat Tel: +234 1 291 2860 E-mail: info@africagreenenergysummit.com Website: www.africagreenenergysummit.com Water Investment World Africa 2011 Date: 25 – 28 October 2011 Location: Johannesburg, South Africa Contact: Brian Shabangu Tel: +27 11 463 6001 E-mail: enquiry.za@terrapinn.com Website: www.terrapinn.com/2011/waterza /index.stm Vol 6 NR 4 2011

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