South African National Energy Development Institute (SANEDI) Thembakazi Mali

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1 South African National Energy Development Institute (SANEDI) Thembakazi Mali

2 SANEDI as an Agency of DoE with close ties to the Department of Science and Technology (DST), by virtue of SANEDI s science and technology research and development focus. And providing services to (among others): 2

3 Two key milestones in the establishment of SANEDI 1 National Energy Act, (Act No. 34 of 2008) SANEDI Business Case (approved by Ministers of Finance, Energy, Science and Technology and DPSA 1 ) + National Energy Efficiency Agency Combined to establish Note 1. Department of Public Service and Administration 3

4 The Act sets out in detail, SANEDI s Mandate The National Energy Act, 2008 (Act No. 34 of 2008), Section 7 (2) gave effect to SANEDI s existence and provides for its primary mandate and specific responsibilities. The Act provides for SANEDI to direct, monitor and conduct energy research and development, promote energy research and technology innovation as well as undertake measures to promote energy efficiency throughout the economy. 4

5 SANEDI is governed by a Board, appointed by the Minister of Energy in consultation with the Minister of Science and Technology (Section 8.(2), of the National Energy Act, Act 34 of 2008) Executive Authority SANEDI Board Board committees Board Audit and Risk (BARC) HR & Remuneration Secretariat Programmes 1. Administration SANEDI CEO 2. Applied energy research, development and innovation 57 staff members 3. Energy Efficiency Projects Sub-programmes Finance and Investment Cleaner Fossil Fuels Renewable Energy Smart Grids Social Justice and Ethics Working for Energy Data and Knowledge Management Cleaner Mobility 5

6 SANEDI s activities contribute across the entire energy landscape, to all of society Cleaner Fossil Fuels Carbon capture and storage Carbon utilisation Clean coal technologies Hybrid systems CO 2 Smart Grids Municipal / ESI sustainability Integration of distributed and variable generation sources Support for advanced appliances / electric vehicles Cleaner Mobility Electric vehicles Clean fuels (NLG, CNG, etc.) Public transport systems Pedestrian / cycling enabled Data and knowledge management National energy data repository Energy modelling skills and capacity Analysis and modelling Decision and planning support tools Renewable Energy Solar power Wind energy Waste to energy Wave and ocean current Localisation Skills development Working for Energy Clean energy solutions for rural and poor urban areas Employment creation Research Energy Efficiency Improved resource efficiency, technical assistance facility Industry development, Tax incentives & cool surface interventions for impoverished communities. 6 Picture credit:

7 HIGH IMPACT PROJECTS PROGRAMMES PROJECTS FUNDING DELIVERY TIMELINE CURRENT OUTCOME EXPECTED OUTCOME Working for Energy Cool Surfaces Waste to Energy Smart Grids Municipal Financial Sustainability* MTEF 2018 Fuel cost savings, raised awareness of alternative energy sources, skills development European Union (RDP) 2018 (subject to receipt of funds) Fuel cost savings, raised awareness of alternative energy sources, skills development and sustainable jobs Financial sustainability and skills development Clean Fossil Fuels Carbon Capture and Storage MTEF and World Bank 2025 Skills development and capacity building. Renewables Solar Turtle (prototype) Solar RDI WASA 1 & 2 MTEF MTEF (DST) Danish (RDP) Delivered Poverty alleviation and Economic Empowerment Job creation and Economic Empowerment Cleaner Mobility Electric Vehicle Charging Stations (3) Taxi Conversion Pilot UNIDO DFID (DEA), Delivered Delivered Access to infrastructure and electricity savings Reduced emissions Energy Efficiency 12L and 12I Tax Incentives Cool Roof Surfaces Big EE Database EE Hub & CESAR MTEF & GIZ WUPPERTAL MTEF (DST) Delivered 2020 Energy savings and job creation Economic development Improved indoor air quality Capacity building Energy savings and job creation Economic development, Improved indoor air quality 7 Capacity building

8 IDENTIFIED OPPORTUNITIES DoWC DSD Human Settlements Agriculture Rural development Public Works EPWP Education DoE Non Grid(INEP) Solar Water Heating Implementin agent/policy support Bio fuels SANEDI DST CESAR Solar RDI Smart Grids Capacity building/ EEDSM Hub DTI M &V Standards Smart grids UNIDI/IEE 2 12I Tax Incentives DoT Infrastructure development Policy support DEA Carbon Capture and storage Working for Energy M & E 8

9 Priority projects that could explored 1. Mass role-out of Cool Roofs in South Africa 2. Manufacture and roll out deployment of SolarTurtle 3. Expanding the Waste to Energy program of Working for Energy will address all three priorities:- Poverty alleviation Reduced energy bills for the poor; Community-based manufacturing opportunities. Job creation Local, community-based manufacturing possible; Opportunities for training of many local applicators. Small business opportunities. Economic transformation Improved dignity, with more disposable income & improved quality of life! 4. The expansion of the Municipal Support program to ensure that municipalities are viable and sustainable. 9

10 Presentation to Municipal Managers Forum on Technology as an Enable for Utility Change by Dr. Minnesh Bipath 22/07/2016 Key Point: The smartening of the Municipal system is an evolutionary process and not a one time event oracle 10

11 SA Smart Grid Journey DoE Fiscal funding to establish Smart Grids Programme, SASGI and the Draft SA Smart Grid Vision Document EU Dialogue Facility provided and international perspective on the role and benefits of smart grids, stakeholder workshops and revisions to the draft SA Smart Grid Vision Document R2.2 m EU Donor funding (GBS) allowed us to research, pilot and demonstrate how technology can be an enabler for change thus allowing us to creating and evidence base R180 m South African Smart Grid Vision International Smart Grid Action Network (ISGAN) an implementing agreement of the IEA Exposed us to international experiences of 25 participating countries

12 South African Smart Grid 2030 Vision SOUTH AFRICAN SMART GRID VISION An economically evolved, technology enabled, electricity system that is intelligent, interactive, flexible and efficient and will enable South Africa s energy use to be sustainable for future generations." Operates Resiliently Against Attack and Natural Disaster Anticipates and Responds to System Disturbances Optimises Asset Utilisation and Operates Efficiently Enables Active Consumer Participation and Empowerment Principle Characteristi cs Provides Power Quality for the Digital Economy Accommodates All Generation and Storage Options Enables New Products, Services, and Markets System Planning Optimisation Emergency Response Performance Routine operations Restoration Integrated communicatio ns Decision support and Improved interfaces Advanced control Methods Technology Areas Sensors and measurement Advanced components Safe Environmentall y friendly Reliability Key success factors Efficient Secure Economic Systems Thinking Enhanced Revenue Management Advanced asset management DoE Priorities Distributed Generation management (net metering, net billing, active network management) Correlating Technology Applications and Key Success Factors Guiding Implementation Roadmap EEDSM in public buildings AMI in Residential and commercial customer base (FBE, IBT, TOU and DR) DoE Short Term Priority Alignment 12

13 Why smart grids is important for Municipalities? 13

14 Enhanced Revenue management Case Studies: Naledi Local Municipality Vending (cloud) 3500 This municipality was running at a (electricity) loss of 26% during Reduced losses to 23% in 2014 with the back to basics programme. The DoE Enhanced Revenue Management pilot project installed 3500 meters in Naledi with MDMS hosted in the cloud Losses reduced to have reduced to 6% with a corresponding increase in revenue Eskom Current account is being paid An agreement reached with ESKOM to repay on the outstanding debt is honoured and paid every month. 14

15 Enhanced Revenue management Case Studies: ethekwini Local Municipality Vending 4000 ethekwini focused their enhanced revenue journey with the installation of the MDMS and moving the vending system within the municipality Project cost R66m Payback 6 months R11 m /month improvement in total revenue 15

16 What is important in implementing smart grid projects

17 IBM Maximo Success is driven through a holistic approach to delivering and managing services that adapts to changing business priorities Visibility See and understand your business in real time Control Transform and adapt while limiting risk Automation Standardise best practices and achieve greater efficiency Without visibility, control and automation, municipal management is running 17

18 Lower cost and improve efficiency and effectiveness Smart Utility in a Box Economics of ICT is changing Transformation and innovation Smart technology as an enabler for change Kema 18

19 Lessons learnt and General Conclusions from the 5 Smart metering Projects Smart Grids is a subset of smart cities The current Municipal organisational structure does not support smart utility management Municipal management competence is in question Smaller municipalities have a huge technical competency gap Utility management are currently running blind with no visibility and control of the utility business which needs to be in real time Revenue over the long term is set to decline Expenditure is fixed cost and set to rise unsustainably AMI, if properly engineered, is able to improve the revenue collection situation of smaller municipalities significantly. AMI, on its own, will not solve the revenue collection problems Any future smart grid role out especially for smaller municipalities should be centrally managed Smart Grid implementation is about governance, people, processes and technology working together Back office system becomes the smart grid battle ground 19

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