Why is energy efficiency still on the to-do-list? SANEA Energy Rendezvous JHB, April 17th 2018

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1 NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA Why is energy efficiency still on the to-do-list? SANEA Energy Rendezvous JHB, April 17th 2018 Sashay Ramdharee Regional Project Manager

2 ABOUT The National Cleaner Production Centre of South Africa (NCPC-SA), a programme of the dti hosted by the CSIR, supports South African industry to improve competitiveness and reduce its environmental footprint through the implementation of resource efficiency and cleaner production (RECP) methodologies.

3 THEMATIC AREAS Resource Efficiency and Cleaner Production focuses on four main thematic areas: - Energy - Water - Waste (output material) - Materials (input)

4 INDUSTRIAL ENERGY EFFICIENCY PROJECT INDUSTRIAL WATER EFFICIENCY PROJECT - Partnership with UNIDO - Energy Management Systems - Energy Systems Optimisation - Launched early Partnership with WRC - Uses component approach of IEE Project MATERIALS (Input) INDUSTRIAL SYMBIOSIS PROGRAMME - Adresses input materials and output Waste reduction - Gauteng, KwaZulu Natal and Western Cape ISP - National ISP strategy WASTE (Output)

5 Project Stakeholders Phase I ( ) Phase II ( )

6 IEE A Global Programme Operational in 17 countries. Planned activities in 10 countries. Operational South Africa Moldova Russia Turkey Ecuador Malaysia Thailand Vietnam India Philippines Egypt Indonesia Iran Ukraine Colombia Macedonia Myanmar Planned activities Other donors Swiss State Secretariat for Economic Affairs UK Department for International Development Government of South Africa

7 Project Outcomes NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA

8 Assessments completed by sector Automotive By Sector Annual Energy Consumption Small: USD Medium: M USD Large: >3M USD Agro Processing Clothing and Textile Pulp and Paper Mining Large Medium Small By Company Size

9 Project Outcomes and Savings Projects Implemented Energy CO2e tonnes Rands 3.8 terawatt hours 3.7 Million tonnes 3.1 Billion Rands

10 Context NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA

11 Twelve Hottest Years on Record Source: NASA/GISS

12 Global Context and Drivers of Industrial EE Most emissions reductions are possible through the deployment of existing best available EE practices and technologies Energy Efficiency remains the most effective GHG emission mitigation strategy. Source: IEA / UNIDO 2010 Source: NASA and NOAA

13 Growth in Energy Demand Between now and 2035, more than Incremental energy 95% demand of the projected by sector growth and in region global in the New Policies Scenario, energy demand will happen in developing countries, especially in China, India and Southeast Asia. Source: IEA World Energy Outlook

14 Energy Efficiency - The First Fuel NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA Energy Efficiency Costs Utilities 2 to 3 Times Less Than Traditional Power Sources; Ranging from 1.9c to 5.0c/kWh Source: ACEEE S

15 Tariff Spike

16 Industrial Energy Efficiency Project focus on: Energy Management Systems based on ISO Energy Systems Optimisation

17 Ad hoc approach to energy management 0 Costs +5% Costs high = Audit Waste cutting, some investment Costs high again: Where s that last audit? Here we go again! -5% -10% Under control. -15% -20% -25% 0 Years 3

18 Is it easy to improve? 18

19 Senior management commit to programme Structured Approach Costs +5% 0-5% -10% -15% -20% -25% Investment Initial savings sustained Housekeeping first then investment Becomes company culture 0 Years 3

20 Why Energy Systems Optimisation?

21 Energy System Optimization Benefits IEEP training programmes introduced energy Systems optimisation absent in industry EnMS Energy Management Systems Implementation ESO Systems Optimisation Fan Systems Optimisation Motor Systems Optimisation Compressed Air Systems Optimisation Pump Systems Optimisation Steam Systems Optimisation

22 Energy Systems Optimisation (ESO) Component Approach Analyse performance of each in isolation Promoted by sales consultants selling a specific technology (e.g. VSD, steam trap) 2-5% efficiency gains on the total energy consumption Systems Approach Look at how the entire group functions together How will changing one impact the other? More knowledge of system and its interactions between components 10-50% average efficiency gains Shifting FOCUS from Component optimisation to Systems optimisation!!!

23 Industrial Energy Systems Typical Achievable Savings Motors: Motor-driven equipment accounts for 64 percent of electricity consumed by South African industries. 5-10% Steam systems 12-15% Compressed air 20-50% Pump systems 10-30% Fan systems 10-30%

24 Energy System Optimization Benefits It saves industrial firms money. It increases reliability of operations. It has a positive effect on productivity and competitiveness. It can offer attractive financial and economic returns. Improved security of supply.. Then Why it is not happening?

25 Barriers to Energy Efficiency Senior management not realising the scale of opportunity. Management focus is on production and not on energy efficiency. Lack of information and understanding of financial and qualitative benefits. Lack of adequate technical skills to assess performance, developing and implementing EE measures and projects. Processes change over time and inefficiencies can re-occur.

26 Regulatory Landscape

27 o Energy White Paper o National Energy Efficiency Strategy (NEES): ( ), ( ) o Renewable Energy White Paper 2003 o Electricity Basic Services Support Tariff Policy o Biofuels Industrial Strategy o National Climate Change Response Strategy (NCCRS) o National Energy Act No. 34 of 2008 o Integrated Resource Plan for Electricity (IRP2) o Integrated Energy Plan (IEP) (not yet promulgated) o Income Tax Act Amendments (12i/k/l ) Tax incentives for EE savings o SANS 941 Energy Efficiency of Electrical and Electronic Apparatus o 2nd National Communication to UNFCCC o Energy Efficient Leadership Network (EELN) Regulatory Landscape Absender Titel TT.MM.JJJJ Seite 27

28 National GHG Emission Reporting Regulations

29 Energy Reporting and Submission of Energy Management Plans - Draft Regulation

30 Sample of NCPC-SA Beneficiaries Durchführer Absender Titel TT.MM.JJJJ Seite 30

31 NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA THANK YOU Any Questions? PHONE: WEBSITE: