DPW ENERGY EFFICIENCY PROGRAMME BRIEFING THE PORTFOLIO COMMITTEE ON ENERGY – 31 JANUARY 2013

Presentation Outline  Purpose  NDPW Energy Efficiency Programme  Specifications Adjusted to Energy Savings Measures  General Progress  Projects Implemented Through IDT (background and scope)  Summary of Audited / Completed Projects  Annual Energy Savings per Province  Personnel employed by service providers per Province  Challenges on Projects Implemented through IDT  Conclusion 2

Purpose To appraise the Energy Portfolio Committee on the progress relevant to Energy Efficiency Improvements effected in Government Buildings under the Custodianship of the NDPW by effecting:  Shared Savings Model  Retrofitting Projects  Behavioral Changes 3

NDPW Energy Efficiency Programme Background  The Department formed Energy Efficiency task team (EETT) on 14 th February Purpose was to ensure a co-ordinated energy programme on State-owned buildings.  Formulated Energy Code of Conduct for all buildings under the custodianship of National Department of Public Works (NDPW) for implementation by National Government Departments using state owned and leased buildings for occupants to contribute to conservation of energy. 4

Specifications Adjusted to Energy Savings Measures  Building Fabric  Building Design for Orientation to gain Solar Energy heat in winter and shade solar heat in summer months  Installation of suitable glazing for solar interactions with building facades  Installation of appropriate shading devices essential  Installation of appropriate insulations in strategic locations  Insulate hot water pipes to save energy  Harvesting sun and wind energy by solar geyser, natural cross ventilation for rooms ventilation 5

 From 1997 NDPW implemented shared energy contracts in 4 Regions with shared ratio Pretoria 50:50 (Chapman Facility Management), Cape Town 60:40 (Shared Energy Management), Johannesburg 60:40(Shared Energy Management),Bloemfontein 60:40 Air Conditioning Design Development).  The energy audit and retrofit for Pretoria started in 2003 to 2010 on approximately 104 sites and derived savings of 1,147,608kw/h and R 311,973,659. over this period. The contract was extended to 2020 and the savings achieved to date is 101,770,824kw/h and R36,203,  Johannesburg Regional Office started energy audits from 2000 to 2010 on 24 sites comprising of 600 buildings with the subsequent energy savings of R 46,629, and 108,641,210.00kw/h. The Contract expired on 15 th December  Bloemfontein Regional Office initiated energy audits from 2003 to 2010 on 15 sites comprising of 375 buildings with the subsequent energy savings of R 26,372, and 55,973,806 kw/h. The Contract expired on 15th December  Cape Town Regional Office started energy audits from 1997 to 2009 on 39 sites with the subsequent total energy savings of R 45,582, and 269,502,386 KW/h. Contract expired February A new contract was awarded in 2011 and the savings to date achieved is 1,997,673kw/h and R7,116, Progress(Shared Energy Contracts) 6

Progress (Allocations from NT)  NT in 2008/9 allocated R20m Retrofitting measures implemented in Pretoria Regional Office - covered 22 sites comprising of 1,981 buildings.  Project was completed in March 2009 on budget with annual saving of R4.9m,.  The project was lighting retrofits of 53,026 luminaries (T5) in 1,981 buildings in Pretoria Area which saved 3,177.66KW and GW/h of electricity.  An allocation of R35m for 2009/10 retrofitted 17 sites comprising of 1206 buildings, including Union Building with total power saving of 3,473.30kw/h, annual saving of 36.41Gw/h and saving R8,202,  The project also constituted lighting retrofits of 48,856 luminaries at a cost of R33,6 million including the replacement of electricity with excess steam in Zonderwater Prison and optimisation of HVAC at Union Building.  The allocation of R75m in 2010/11 and R70m in 2011/12 was transferred to IDT, the energy efficiency projects were completed :Eastern Cape =50; Mpumalanga=27; Northern Cape =26 ; total 103 at the cost of R127m. Details are in slides 10 and 11. 7

Challenges  There is no technical capacity within DPW to manage the Energy Efficiency Programme which is a scientific process. DPW is proposing the Creation of a Chief Directorate specifically for the DPW Energy Efficiency Programme, which will enable DPW to manage the Energy Efficiency in a sustainable manner. National Treasury supports the initiative.  In 2012/13 Financial Year and the future financial years, there is no funding allocations from National Treasury for the DPW Energy Efficiency Programme.  Frequent staff changes at top management within DPW affected the strategic leadership needed for the management of DPW Energy Efficiency Programme.  Lack of local manufacturers of the Energy Efficiency products /equipment's affects the cost of mass implementation of Energy Efficiency programme on over 100,000 public buildings under the Custodianship of DPW.  Number DPW Properties covered under the EE program: Pretoria=114, Bloemfontein=14, Johannesburg=20, Durban I, Umthatha & PE=50, Nelspruit=27, Kimberley=26, Cape Town =48. 8

Projects Implemented Through IDT Programme Background: –The National Department of Public Works (NDPW) appointed the Independent Development Trust (IDT) to implement the Energy Efficiency Programme (EEP). The programme was aimed at reducing the electricity consumption at selected NDPW facilities through a targeted energy efficiency intervention. The National Department of Public works identified 120 facilities [Eastern Cape (60), Mpumalanga (30) and Northern Cape (30)] for this particular implementation. The programme was undertaken over two financial years i.e. FY 2010/2011 and FY 2011/2012. Scope of Works: –The energy efficiency intervention at the 120 facilities situated in the three (3) provinces, focused primarily on lighting and remote metering at various state- owned facilities. 9

Table 1: Summary of Audited / Completed projects Note: The total value of the projects are R127m for the FY 2010/2011 and FY 2011/2012 combined 10 Impact in EC, MP & NC under EEP (1)

Table 2: Annual Energy Savings per province Assumptions: 1. The hours of operation of each facility are different, for this programme the operational hours was kept at 12 hours per day, and 365 days was used to determine the Annual energy savings. 2. The rate/ tariff of 40c per kWh was used to calculate Annual Energy savings’ cost 11 Impact in EC, MP & NC under EEP (2)

Conclusion on Implemented Projects Some of the challenges encountered include the following: -Dedicated professional services unit with qualified electrical engineers aligned to size of portfolio -Intensifying Monitoring and Evaluation - Partnership with DOE need to be institutionalised – MOU. -Engagement with Eskom Demand Management rebate programme whereby ESKOM funds 70% of the retrofit for commercial (public) buildings and DPW to pay in 30% for the total retrofit which will derive more benefit for state properties. -The energy efficiency initiatives were implemented successfully due to the remarkable commitment of all stakeholders. This complemented the development and implementation of the most efficient and cost effective energy saving methodologies. The IDT has completed all programmes over the two financial years i.e. FY 2010/2011 and FY 2011/2012 and currently is not working on any further initiatives in this regard as National Treasury Funding ended in 2011/12 Financial Year. 12

Profile of Public Buildings that Energy Efficiency Projects were implemented Military Bases Police Stations Correctional Facilities Museums Offices Buildings 13

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