Eskom IDM Cultivating Energy & Water Services Industries in Townships

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1 Eskom IDM Cultivating Energy & Water Services Industries in Townships May 2012 UJ CSDB Annual Conference for Transforming Townships into Economic Power Houses Jerry Mafereka IDM Youth Dev. & Job Creation Facilitation Manager, MWP and Joe Sovendle Social & Economic Dev. Manager, GP OU

2 The Outline of Presentation 1. The Green Economy Market Opportunities 2. The Context of Green Economy and Youth Development 3. The Competitive Suppliers / Enterprises Dev. 4. Market Access and Growth Path 5. The BEAT Programme in GP & KZN 6. The Collaboration Frameworks and Roles 7. Market Research and Partnering Approaches 8. Key Energy & Water Industry Players 9. Energy & Water Use Efficiency Technologies 10. Green Power Supply Technologies 11. Y-AGE / SWGC FET Partnership 12. The Bottom Line and Wayforward 2

3 Green Economy Market Opportunities Decline of jobs in traditional industrial sector Rising cost of water and energy - a new market is opening up New skills are needed to serve this new market these skills are currently in scarce supply The opportunity to create green jobs in a sector where energy and water cost savings will support more employees and business opportunities Decline in jobs Increase in Energy and Water costs As the leading energy provider & large user of water in S/Africa, Eskom must play a leadership role in this space 2012/05/28 3

4 The Context of Green Economy & Youth Dev. South Africa has large numbers of unemployed young people. Expanding the industrial base and addressing new emerging industrial opportunities, specifically the Green Economy, will increase employment. Young unemployed people cannot easily access the Green Economy, -they do not have the base skills to gain access as employees and owners of small enterprises. Without access to useful skills, unemployed youth will be perpetually marginalised. By playing an active and strategic role in growing and deploying these new skills, Eskom will ensure its continued sustainability, and make a contribution to the national economy through the evolution of the Green Economy. 4

5 The Competitive Suppliers / Enterprises Dev. New Power Generation Build Programme -Base load stations -Merit stations -Peaking stations Eskom CSDP Partners: - DPE, - DsT - DTI Large Localised Manufacturing New Enterprises High Value Capex: -Boilers -Transformers -Turbines -Plant & Equipment Efficient Technology -Solar water heating -Lighting & HVAC -Compressed Air -Industrial Optimisation -Distributed/Embedded DX Industrial hub Energy and Water Resource Efficiency Incubator New ESCos IDM Programme Virtual Power Station SEDA Technology Programme - Incubator process New SMMEs Manufacturing Installers

6 Market Access & Growth Path Large Enterprises Medium sized Enterprises Small Enterprises Micro enterprises Employees Unemployed

7 The BEAT Programme in GP & KZN 12 month Trade Skills Programme at an FET College Core Curriculum Energy audits CFL Replacement Smart meter installation Solar water Heaters Heat pumps Small Appliance repair 6 12 months Incubator Programme Post-programme Business Support 7

8 The Collaboration Frameworks and Roles Communication Facilitation The Eskom Foundation, IDM and SD&L Depts. Collaboration Integration and Coordination Governance Reporting Varsities and FETs Targeted FETs & Varsities SEDA SEDA Incubators Industry Hubs Industry Associations Supplier Organisations Chambers of Commerce Organised labour Other SOEs /05/28 8

9 Market Research and Partnering Approaches Phase Phase 1 Public Consultative Workshops Phase 2 Stakeholder Engagement Workshop Phase 3 Strategy Development Workshops Key Objectives To understand local socio economic challenges facing the community, particularly young people To design relevant intervention for promoting youth development Formalise MoU/ MoA with Key Stakeholders Facilitate Establishment of Institutional Arrangements Facilitate Development of Partnering Strategy Workshop Development of Business Cases to drive job creation mission & ESCOs Development Initiatives

10 Key Energy & Water Industry Players The Key Specific Roles Training Providers Industry Associations and Technical Support Market Access Support Funding Support Key Industry & Market Players UJ-CSBD FET Colleges Universities Eskom (EAL) Eskom GP OU City Power Rand Water Joburg Water SEDA EnerKey SeTAR NERSA, Water Boards and 3 Spheres of Government GEDA/ Blue IQ GEP Eskom Foundation IDC/ DBSA/ JDA Key Activities & Schemes Design & Delivery of training programmes Scoping of training content of skills and investments support for technology uses Licences; Regulated Pricing and Tariffs Administration Provide Finance & Investments Schemes as well as expertise support in the funding arrangements

11 Energy & Water Use Efficiency Technologies Energy Efficient Lighting Systems Lighting & associated systems Efficient Lighting in Poultry & Greenhouse Buildings & Buildings MS Sensors & Controls HVAC systems Refurbishing for Energy Efficiency Green Design Electrical Hot Water Systems Heat Pumps Induction Heating Showerheads and Temperature Controls Process Optimisation Compressed Air systems Refrigeration and Cooling Waste Heat Recovery Electric Boilers and Steam systems Drying Technologies Pumps Energy Efficient Motor systems Thermal insulation Process Integration (heat exchangers networks) / Process Heating Waste Waste Recycling Waste-to- Energy

12 Green Power Supply Technologies Domestic Photo-voltaic (PV) Lighting Solar Water Heater Installation Heat Pump Installation Hydro-electric orientation Wind generation orientation Bio-mass orientation Carbon Capturing and Storage orientation Underground coal gasification (UCG) CFL Manufacturing and Marketing Energy Efficiency Auditing LED Manufacturing & Marketing Battery and constant energy supply orientation 12

13 9. Y-AGE / SWGC FET Partnership Following the 2011 Budget Speech by MEC of Economic Development, a Youth Entrepreneurship development programme (Y-AGE) was embarked upon to find entrepreneurs These entrepreneurs will be recruited, screened, trained, financed and supported to hire between 3 and 5 people in order to create 1 million jobs This project is being delivered in collaboration with various civil society entities as well as the private sector who will be asked to match DED s contribution in creating these jobs DED through GEP has set aside at least R30 million for this initiative and the programme was launched on 21 October SWGC FET and Eskom Foundation signed an agreement to support electrical workshops equipment only

14 The Bottom Line and Way Forward 1) Create mechanisms for entrepreneurs to gain market access to the growing Green Economy by providing them with industrial opportunities to gain technically useful skills. 2) Strategic Partnering and Linkages between BMOs, Industry Associations; Institutions of Higher Learning and 3 Spheres of Government 2012/05/28 14

15 The End Thank you 15