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Recommended Strategy for an Integrated National Approach to EE Presentation to the Parliamentary Portfolio Committee on Energy 6 September 2012
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Energy Efficiency How are we Doing? 2 Score Card SCORE Fact Base - Lacking Objectives - Arbitrary Strategy – None Implementation – Ad - Hoc
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Contents 1.Status: A.Fact Base B.Objectives C.Strategy D.Implementation 2.Solution 3
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Growth: Economic & Jobs Requires more energy Source: ExxonMobil Outlook to 2040
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Improved Standard of Living - Requires more energy Source: ExxonMobil Outlook to 2040
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Changing Energy Mix
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RSA - Usage per sector Energy & Demand Sources: Frost & Sullivan & Eskom
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Myth Busting - “Industry is inefficient due to low electricity prices”. Industry have for a long time been working hard to reduce their energy intensity & will continue to do so
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Cost viz Potential: Setting Priorities
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Need a Framework for Analysing Opportunity Specific Barriers
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An example of “Addressing the barriers” in High Income Housing
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Must Determine Potential: Probable, Doable & Most Likely Without serious economic Impact BACK UP
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Residential and commercial: Potential savings levers and initiatives Without serious economic Impact
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Bottom Up Fact Base Required Detail required for residential sector (Source: DSM Sector Analysis, 2007. Residential demand: 13,908MW, Residential consumption: 46,402 GWh) 30 28 kitchen appliances (cooking, laundry and cool storage) water heating 18 lighting 5 other losses 15 4 household consumption (% contribution per end use) 1783 3565 electricity consumption (% annual consumption) maximum demand (% maximum demand) residentialall other sectors residentialall other sectors 14
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LSM 1 – 3 (number of appliances) Market segment 1 (~21% of households) And then by sector Type technologies and end uses varies across market segments (Source: Frost and Sullivan Market Analysis for Residential market 2012 LSM 4 - 7 (number of appliances) LSM 8 – 10 (number of appliances) Market segment 2 (~58% of households) Market segment 3 (~21% of households) 54.1 m 4.1 m 6.5 m 22.1 m 10.7 m 0.09 m 1.2 m 2.4 m 44.4 m 3.2 m 5.0 m 11.2 m 5.5 m 0.8 m 2.4 2.4 m 2011/11/09 15 6.8 m 0.2 m 0.9 m 3.2 m 1.8 m - - 0.1 m lighting geysersHVAC (heating and cooling) Kitchen appliancestelevisions Pool pumps Motors Fans
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Contents 1.Status: A.Fact Base B.Objectives C.Strategy D.Implementation 2.Solution 16
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Objective Setting An Iterative Process to find the right target in time 17 Actual Consumer Energy Usage Best in Class Best Known Technology Theoretical Best Compressible over time Not Compressible
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Contents 1.Status: A.Fact Base B.Objectives C.Strategy D.Implementation 2.Solution 18
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19 Step 1: Develop a thorough knowledge base Step 2: Refine policy options and set targets Step 3: Implement priority initiatives Step 4: Establish a long-term Energy Efficiency Programme Fact Base to Implementation In Integrated Phased Approach
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Contents 1.Status: A.Fact Base B.Objectives C.Strategy D.Implementation 2.Solution 20
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EE Road Map (Example Carbon Budgeting 1.Plot Base line Emissions 1990 - 2010 and Inventory 2011 2.Plot the Three Emissions Outlook 2012 to 2050 3.Flagship Abatement Program 4.Develop and Agree GHG Data MRV Meta System 5.Develop National Reporting System (NEIS) "MRV" 6.Define Regulated Entities (Unique Generic Significant Activities) 7.Plot Macro Abatement Potential (Top Down) 8.Develop Sector Abatement Potential (Bottom Up) 9.Identify Assess Policy Suite Options 10.Assess and Select Policy Suite Options 11.Risk Assessments and Plans as Required 12.Develop South Africa Abatement Potential 13.Finalise Activity/Sector GHG Allocations 14.Finalise South Africa’s Draft 1 ST Country Budget Transitioning to a Low Carbon Economy 15.1 st Pass Country 2050 Scenarios - Transitioning to a Low Carbon Economy Jun Aug Sept Dec Jan Apr Jun Aug Sept Dec Jan Apr Jun Aug Sept Dec 201220132014 Urgent Next Steps Indicative only Still to be agreed Project
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Contents 1.Status: A.Fact Base B.Objectives C.Strategy D.Implementation 2.Solution 22
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Country Base Line Past Savings Opportunities Sector Base Line Past Savings Opportunities Services Base Line Past Savings Opportunities Facility Base Line Past Savings Opportunities Top Down Bottom up Simultaneous Top Down & Bottom up
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24 CAMCO: Interaction between EE objectives and wider national development plans Energy efficiency objectives National and local spatial planning Transport planning Economic and industrial development Research, innovation and skills development Carbon abatement policies Built environment and human settlements Environmental policies and air quality management Policy Integration
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25 Monitoring and Evaluation PlanningImplementation Monitoring and evaluation Review Development of Knowledge base, including baseline setting Formulation of Energy Efficiency Strategy & Action Plan Target setting Strategy and Action Plan review Target review Performance improvements and decision making Review of cost- effectiveness Project implementation Monitoring, reporting and verification systems Policy integration Data monitoring and analysisReporting of resultsTarget evaluation
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Thank You
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