Sixth Energy Efficiency Forum for Commercial Buildings

The sixth meeting was held on 29 March 2011 at the Sanlam head office in Bellville, with over 110 members attending. This informative and interactive Forum involved presentations from seven main speakers, which are summarised below. Two key offers for members to take note of are:

• Energy and water audits fully subsidised using cleaner production methodology are offered to a limited number of commercial buildings by the National Cleaner Production Centre.
• Up to 85% of the cost of energy saving interventions can be subsidised by Eskom, which has introduced a set of new financial instruments for commercial buildings and their tenants to take advantage of.

Looking into the Energy Future for Cape Town

Andrew Janisch from Sustainable Energy Africa (SEA) presented findings of recent energy scenario modelling which illustrates possible energy futures for the City of Cape Town for the next 20-40 years. The study compares two scenarios: ‘business as usual’ and an ‘optimum energy future’. For each it compares the costs, total energy consumed, energy mixes and associated carbon emissions. The optimum energy future considers increased electricity efficiency, transport efficiency and an upscale of renewable energy in the energy mix. Following an optimum energy future path is cheaper than the ‘business as usual’ path, with energy efficiency in the commercial sector being a key aspect.

Click here to view the presentation.

Understanding the City of Cape Town’s electricity tariff increases. What does it mean for you?

Gary Ross from the City’s Electricity Services Department presented the NERSA-approved tariff increases up until 2012/13, the City’s increase of just under 20% from 1st July 2011, and future forecasted tariff increases for City of Cape Town’s electricity up until 2015/2016. Over the 9 year period from financial year 2006-2007 to 2015-2016, the price of electricity is estimated to increase by 415%. Steep increases are being driven by Eskom’s need to build new supply capacity to meet increasing demand for power. Overall, the large increases provide incentives to save electricity.

The City will be phasing out the ‘Very Large Power User’ tariff from 1 July 2011, and customers on this tariff can choose either the ‘Large Power User’ tariff or the ‘Time of Use’ tariff.

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Update on financial instruments offered by Eskom

Lodine Redelinghuys presented Eskom’s new financial instruments which offer significant subsidies to incentivise power users to implement energy efficiency interventions. Eskom has allocated R5.45 billion over the next three years to fund these kinds of projects, and aims to save 1074 MW. Three main instruments are on offer for commercial buildings, their energy advisors and their tenants:

• The ‘ESCO Process’ has been in existence for a few years, and covers projects over 1 MW in size. It works through Energy Service Companies (ESCOs), takes a bit longer and the subsidy depends on the nature of the project which is individually approved. A system of progress payments applies in this ESCO Process.
• The revamped ‘Standard Offer’ is for building owners or managers wanting to save between 50 kW and 1 MW. Eskom will pay 42c per kWh saved/reduced for a set of qualifying technologies, and 70c per kWh saved by installing solar water heating. Payment is made over a three year period: 40% for the first payment, and then three 20% performance payments per year thereafter based on actual savings achieved.
• The brand new ‘Standard Product’ is perfect for tenants with projects to install a range of approved efficiency products to save up to 100 kW. The funding covers 85% of the market price of the technology, based on the NERSA benchmark. Payment is 100% on installation, based on saving results.

The benefits and methodologies for each of these were explained. For more information about which one best suits your situation, and the terms and conditions which apply, contact Lodine Redelinghuys or Wayne Fortuin at Eskom’s Edgemead office at (021) 524-2000 or contact an Energy Advisor on telephone 08600-ESKOM.

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New ISO standards and the national Industrial Energy Efficiency project

Gerswynn Mckuur from the national Industrial Energy Efficiency Programme presented the Energy Management System Standard ISO 50001 which is to be launched in mid 2011. The aim of this standard is to benchmark an approach for energy management systems, which are sustained programmes over time (not ad hoc interventions) of continuous improvement in energy use that should become entrenched in company culture. Gerswynn also introduced the National Cleaner Production Centre, which is now also offering fully subsidised energy assessments (audits) of commercial building facilities and operations by Energy Advisors which they approve and select.

For more information about fully subsidised energy and water audits, contact the Project Manager for Commercial projects: Henry Nuwarinda at (012) 841 2359 or e-mail HNuwarinda@csir.co.za. The National Cleaner Production Centre (NCPC) is hosted at the Council for Scientific and Industrial Research (CSIR) in Gauteng and Cape Town.

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Case study: Retrofit of City of Cape Town buildings

Wouter Roggen from the City of Cape Town presented how the City is leading by example with efficiency interventions being undertaken in its own buildings and other operations. Various administrative buildings have been energy efficiency retrofitted, and the iconic Civic Centre is currently being audited and is due to be retrofitted over the next two years. Traffic light signals have been retrofitted with LED lighting, street lighting is being replaced with efficient high pressure sodium lamps, and clinics and fire stations have had solar water heaters installed.

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Green Leasing for multi-tenanted buildings: recouping the costs of investment

Sarah Rushmere presented the concept of Green Leasing, which is a way to overcome the barrier to investing in energy efficiency measures which exists particularly for multi-tenanted buildings where the owner struggles to recoup the costs of the investment from tenants who benefit from lower operating costs. She demonstrated useful Green Leasing toolkits from the UK and USA, and described how it is starting to be applied in South Africa by leading property companies. A more detailed workshop on this topic is planned for the next Forum which will probably be in mid June 2011.

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Update on policy direction, resources, forthcoming training and events etc.

Sarah Rushmere presented a range of useful news, resources and events in the opening and closing slides.

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The Earth Hour 2011 video clip, which is part of the City's Electricity Savings Campaign, can be viewed here (mp4 format).