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BRIEFING ON ENERGY EFFICIENCY AND ENERGY SAVINGSTO THE PARLIMENTARY PORTFOLIO COMMITTEE ON ENERGY

BRIEFING ON ENERGY EFFICIENCY AND ENERGY SAVINGSTO THE PARLIMENTARY PORTFOLIO COMMITTEE ON ENERGY. 10 AUGUST 2011. Energy Efficiency and Demand Side Management. This programme is done in terms of Division of Revenue Act (DoRA), Schedule 6 & 7

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BRIEFING ON ENERGY EFFICIENCY AND ENERGY SAVINGSTO THE PARLIMENTARY PORTFOLIO COMMITTEE ON ENERGY

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  1. BRIEFING ON ENERGY EFFICIENCY AND ENERGY SAVINGSTO THE PARLIMENTARY PORTFOLIO COMMITTEE ON ENERGY 10 AUGUST 2011

  2. Energy Efficiency and Demand Side Management • This programme is done in terms of Division of Revenue Act (DoRA), Schedule 6 & 7 • Schedule 6: EEDSM transfer of grants directly to the participating municipalities and Schedule 7: Transfer of grants to Eskom as the implementing agent • Schedule 6 include the retrofitting of public lights (street and traffic) and installation of solar water heaters • Solar Water Heating Programme: 1 million Solar Geysers by 201 4 • This programme is funded through the fiscal allocation and tariff. • The fiscal phase of the programme is implemented in the following municipalities: Tshwane, Naledi, Sol Plaatjie, Umsobomvu, Musina whilst the rebate programme by Eskom and other organisations is spread across the country.

  3. Rebate Programme Installations Presentation outline -Confidential-

  4. SWH Rebate Level Revision Presentation outline • The future of rebate programme is persistently threatened by the diminishing Rebates Fund. • The above constraint prompted Eskom to review the Rebate Progamme as follows: • On 11 April 2011 Eskom announced the downward revision of the rebate levels as shown on the table below: • The aforementioned new rebate values were to be applicable to all claims received by Deloitte later than 17h00 on the 29th of April 2011. -Confidential-

  5. SWH Rebate Level Revision cont’ Presentation outline • There are no changes on current rebate values that are lower than the new maximum values • For ease of planning and placement of orders by industry participants, Eskom provides weekly updates concerning the availability of funding for the rebate programme. • Further Eskom has warned that the rebate programme will cease once the funds for the current financial year have been exhausted. • Despite the reduction in rebate levels as well as the constant communication on the remaining rebate fund, the rate of installations continued to increase to the extent that available funds for 2011/12 were depleted by the end of June 2011. • In order to avoid causing an upset in the programme, the Eskom Integrated Demand Management (IDM) unit applied (within Eskom) for additional funding but further saw it necessary to reduce the number of installed systems per supplier in order to bring down the rate of fund depletion. -Confidential-

  6. SWH Rebate Level Revision cont’ Presentation outline • The reduced installation rates per supplier are effective from 01 July 2011 to 30 September 2011 (or until further notice). • Based on each supplier’s average installations over the past three months, participants of low pressure systems are now limited to a maximum number of claims per months as shown on the table below: • Concerns raised on the proposed table are being attended to by DoE and Eskom -Confidential-

  7. SWH Rebate Level Revision cont’ Presentation outline • Participants of high pressure systems are now limited to a maximum of 200 claims per months. • No new applicants/participants are being registered during this period. • On 30 June 2011 Eskom proposed developing a more structured approach to the rebate fund allocation. • This will be done in consultation with industry participants, and a workshop has been scheduled for the 3rd of August 2011 in this regard. • The above workshop will largely focus on the fund allocation to various market sectors, conditions of participation and the disbursement process. -Confidential-

  8. FISCUS FUNDED PROGRAM STATUS AS OF 8 MAY 2011 Jobs created per municipality: Sol Plaatjie – 156 persons appointed; Naledi: 9 persons; Tshwane: 130 persons with a Total of 295

  9. Implementation status breakdown for Tswhane – completed June 2011

  10. Implementation status breakdown for Tswhane – completed June 2011

  11. Implementation status breakdown for Naledi (on hold) and Sol Plaatjie – Update till July: to be completed Sept 2011

  12. Project 1Fiscal Energy Efficiency and Demand Side Management (EEDSM) Programme Start: 1/4/ 2011 Finish: 31/3/2012

  13. Project 1Fiscal Energy Efficiency and Demand Side Management (EEDSM) Programme Cont’ • The EEDSM monitoring and performance evaluation tools include the following: • Project progress and expenditure reporting templates • EEDSM performance indicators • Efficient utilisation of funds i.e. analysis of monthly, quarterly and annual expenditure; • Energy efficient lighting technologies and Solar Water Heaters installed ; • Energy savings (based on the Measurement and Verification process implemented after completion of the project); • Enhanced energy security (i.e. MW saved); • Carbon emissions saved; • Jobs created; and • Skills development and capacity building

  14. Project 1 (cont...)Fiscal Energy Efficiency and Demand Side Management (EEDSM) Programme Start: 1/4/ 2011 Finish: 31/3/2012

  15. Project 2Industrial Energy Efficiency Project Start: 1/4/ 2011 Finish: 31/3/2014

  16. Project 2 Industrial Energy Efficiency Project Cont’Start: 1/4/ 2011 Finish: 31/3/2014

  17. Energy Efficiency Target Monitoring Project • This is a collaboration between the Department of Energy and the Swiss Development Corporation which strengthen the National Policies and implement pilot projects at Municipalities to address operational matters on energy efficiency. • The projects has two phases: Phase 1 is at the Department of Energy addressing policy matters and phase two is led by SALGA: • The pilot projects will implemented in the following municipalities: • King Dali Ndyebo Municipality • Rustenburg Municipality • Polokwane Municipality • Sol Plaatjie Municipality • Mbombela Municipality

  18. Project 3 Energy Efficiency Target MonitoringStart: 1/04/ 2011 Finish: 31/3/2014

  19. Project 3 (cont...) Energy Efficiency Target MonitoringStart: 1/04/ 2011 Finish: 31/3/2014

  20. Project 3 (cont....) Energy Efficiency Target MonitoringStart: 1/04/ 2011 Finish: 31/3/2014

  21. Energy Efficiency and Demand Side Management • Appliance Standard and Labelling programme • Appliance Energy Efficient Standards: A number of standards have been developed over the past few years. In 2010, the following standards were finalised: SANS 50242: 2010, electric dishwashers for – methods for measuring the performance; SANS 50304: 2010, Electric cooking ranges, hobs, ovens, and grill for household use – methods for measuring performance; SANS 54511-3: 2010, Air-conditioners, liquid chilling packages and heat pumps with electrically driven compressors for space heating and cooling Part 3: Test methods; SANS 60456:2010, Clothes washing machines for households; SANS 62552:2010; Household refrigerating appliances:

  22. Project 4Appliance Standard and Labelling programme Start: 1/4/ 2011 Finish: 31/3/2012

  23. Project 4Appliance Standard and Labelling programme Start: 1/04/ 2011 Finish: 31/3/2012

  24. Project 5EE Communications Strategy and CampaignStart: 1/04/ 2011 Finish: 31/3/2012

  25. Challenges faced with the roll out of Energy Efficiency and Demand Side Management Inadequate capacity on Monitoring and Evaluation which result in poor or lack of reporting by participating municipalities Availability of activity data to develop energy efficiency indicators and quantify the energy savings Inadequate cooperation among energy efficiency stakeholders on data supply and reporting Many municipalities have no Energy/Environmental Management Unit to drive energy efficiency No connection to households earmarked for Solar Water Heater connections – water reticulation Poor water quality in some municipalities and poor structures Escos not properly equipped to handle the installations which result in poor workmanship Limited funding allocated for the programme

  26. Recommendations to the PPC • It is recommended that PPC notes: • progress made on Energy Efficiency and Energy Savings to date • the allocated funding is not adequate to roll out the programme • The challenges during the implementation such as water reticulation, roof structures, poor work which result in delays thereof • Lack of capacity in in Municipalities to drive the EEDSM programme which result in non-compliance to DoRA due to poor or lack of reporting • The need for alignment in all spheres of government to allow better coordination • Lack of adequate skills / expertise within Escos.

  27. Thank you

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