South Africa - Industrial Energy Efficiency Project Lessons and Impacts. AHK Energy Efficiency Conference Windhoek 24 October 2017
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1 NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA South Africa - Industrial Energy Efficiency Project Lessons and Impacts AHK Energy Efficiency Conference Windhoek 24 October 2017 Alfred Hartzenburg National Project Manager
2 Presentation Points o Why did we do it? o Project Framework o How did we do it? o Impacts and Outcomes o Lessons Learnt o Phase II Next Steps
3 NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA Why did we do it?
4 South African Energy Use by Sector
5 Electricity Tariff Escalation
6 NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA Project Framework
7 Project Objective and Framework Primary Objective to improve industrial energy efficiency in South Africa and contribute to energy security while ensuring that economic growth is not constrained by energy shortages and rising energy prices Component 1 Energy Efficiency Policy Development Component 3 Training Component 2 Energy Management Standards Component 4 Demonstration Plants and Marketing 7
8 Training Focus
9 How did we do it?
10 Elements, Participants and Modalities EnMS Awareness Seminar (½ day) Capacity Building Modality National Experts National Trainees EnMS USER Training (2 day) EnMS EXPERT Training (10 day) Equipment Vendor Workshops (1 day) Candidate Plant Host Plant Candidate Plant 10
11 Resources and Tools 11
12 Mainstreaming EE Technologies
13 Assessment Findings and Implementation Case Studies
14 Mining Assessment Findings
15 Mining Assessment Findings
16 Fisheries Assessment Findings
17 Fisheries Assessment Findings
18 Fisheries Assessment Findings Total Savings GWh / R1. 6M)
19 Brewery Assessment Findings
20 Brewery Assessment Findings
21 Case Study ~ Automotive OEM Johnson Matthey South Africa Automotive Sector Started implementation of EnMS in 2012 Target ISO certification COREX Steel shop Johnson Matthey Annual Electricity Savings Annual Monetary Savings - Cost savings from projects - Cost savings from behavior changes & operational efficiencies GWh R 8.7 M R 5.5 M R 3.2 M Total Investment R Payback Period (years) 0.8 ISO Certified Savings 16.3 GWh Completed RHF implementation in DR-Plant 9 months Mills 4 large projects implemented Compressors optimisation; optimising chillers; production related projects Success Factors Full support and resources from top management Strong Energy Manager leadership Weekly meetings of Energy Team Adjusting existing structures to energy specifics (policies, procedures & reporting)
22 Case Study ~ Integrated Steel Mill Arcelormittal Saldanha Works South Africa Electricity demand : 160 MW Manpower: 548 permanent employees Sales output: 1,2 million ton HRC/annum Mills RHF COREX Steel shop DR-Plant Energy Efficiency Achievements 2011 Energy Management System Implemented No. of Projects/Measures 11 Total Capital Investment R500, Gross Financial Savings R 60.0M Overall Payback Period (in years) Energy Savings 80 GWh 2011 GHG Reduction 77,000 tco2e Cumulative Savings R279.0M Energy systems optimization, fuel switching, adjustments/optimization of production schedules & process.... triggered and driven by the EnMS! Energy Savings in 2012 > 100 GWh Success Factors Plant Director & Energy Manager Leadership Training, communication and innovative strategies to secure employees commitment Collaboration between different departments
23 NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA Impacts and Outcomes
24 Iron and Steel Automotive Engineering Agro Processing Chemicals Clothing and Textile Cement Pulp and Paper Commercial Bldngs Mining By Sector Engagement Footprint Annual Energy Consumption Small: R R Medium: R R 24.0M Large: > R24.0M Large Medium Small By Company Size
25 Project Outcomes and Savings Projects Implemented Energy CO2e tonnes Rands 3.8 terawatt hours 3.7 Million tonnes 3.1 Billion Rands
26 Lessons Learns How can we sustain it?
27 Industrial Energy Efficiency takes. Product Costs Policies & Institutions Resource Savings - 57% - 43% Skills, Implementation & Services Better management & low cost initiatives Capital investment Investments Average efficiency Best performance 27
28 Role of Policy and Finance The basis for any project is legal certainty Absence of a regulatory framework kills a project even if capital is available Policy action is needed to ensure that economic, security and other benefits are realised When evaluating project finance applications, the impact on the community is a key determinant
29 Regulatory Landscape 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) Absender Titel TT.MM.JJJJ Seite 29
30 Conditions for Change o There must be a will to change ( Burning Platform ) o There must be a plan o There must be resources to implement the plan o The resources must be equipped with the applicable skills
31 Phase II Next Steps
32 Electricity Tariff Forecast
33 Data rich assessments Funding mechanism to promote implementation Enterprise guidelines for bankable projects Adapt and Domesticate EE technologies for regional programs Upscale M&V support to industry Elevate the role of women in energy Phase II Priorities
34 The new benefits language Energy Productivity The total value created by the energy deployed Customers do not buy energy efficiency. They buy what they value. Encourages a focus on supply chains Unlocks renaissance in energy management and delivers immense commercial and environmental benefits. Source: IEA
35 Expand Regional Footprint Namibia (2017) IEEP proposal to domesticate EE Technologies. Uganda (2017/18) Uganda Green Chemistry Project Initiative Cooperation with Uganda NCPC and over arching measures for establishing the national/regional initiative. Mauritius (2016/17) IEEP technical evaluation of thermal power plants and EnMS & SSO training Namibia (2015/17) Namibian NCPC request for IEEP mentoring, coaching and training Namibia Mozambique Mauritius Mozambique (2015/16) IEEP EnMS training and ESO assessments.
36 The Challenge An IEA analysis has shown that if energy efficiency investments were scaled up in South Africa, it would have the potential to reduce the country s need for additional electricity generation capacity by 18% in Source: IEA
37 @NCPC_SA THANK YOU WEBSITE
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