SEA Manual_RE and EE Options

8/8/2019 SEA Manual_RE and EE Options

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How to implement renewable energyand energy efficiency options

Support for South African local government

solar water heaters energy efficient lighting

energy efficient building public transport

Produced bySustainable Energy Africa in partnership

with an alliance of cities and North Energy Associates Ltd (United Kingdom)

Funded byREEEP (Renewable Energy & Energy Efficiency Partnership)


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Published by Sustainable Energy Africa, 2007

Copies available from Sustainable Energy Africa,

The Green Building

9B Bell Crescent Close

Westlake

7945

tel: 021 702 3622

fax: 021 702 3625

email: [email protected]

web address: www.sustainable.org.za

This handbook has been developed through the participation of an alliance ofcities, North Energy Associates Ltd (United Kingdom), and a wide range ofcity stakeholders, however Sustainable Energy Africa is responsible for the

views expressed and any errors made in this document.

Sustainable Energy Africa


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1How to Implement Renewable Energy and Energy Efficiency Options

Contents

Using this manualUsing this manualUsing this manualUsing this manual................................................................................................................................................................................................................................................................................................................................................................ 3333

1.1.1.1. Success through sustainabSuccess through sustainabSuccess through sustainabSuccess through sustainabilityilityilityility............................................................................................................................................................................................................................................................ 4444

1.1 Better local air quality and human health......................................................................... 5

1.2 Arrested global warming..................................................................................................5

1.3 Energy security ................................................................................................................5

1.4 Equity .............................................................................................................................. 5

1.5 Financial efficiency .......................................................................................................... 6

1.6 City development.............................................................................................................6

2.2.2.2. Cities as energy leadersCities as energy leadersCities as energy leadersCities as energy leaders .................................................................................................................................................................................................................................................................................................... 7777

3.3.3.3. City action towards a sustainable energy patCity action towards a sustainable energy patCity action towards a sustainable energy patCity action towards a sustainable energy pathhhh............................................................................................................................................................10101010

3.1 A sustainable energy strategy for your city ..................................................................... 10

3.2 The first steps ................................................................................................................ 11

4.4.4.4. Solar water heater implementationSolar water heater implementationSolar water heater implementationSolar water heater implementation............................................................................................................................................................................................................................12121212

4.1 The case......................................................................................................................... 12

4.2 What is a solar water heater?......................................................................................... 14

4.3 Potential for rollout........................................................................................................ 16

4.4 Barriers to implementation.............................................................................................20

4.5 How to go about implementation................................................................................... 20

4.6 Case studies ...................................................................................................................24

4.7 Support organisations ....................................................................................................27

5.5.5.5. Energy efficient lighting implementationEnergy efficient lighting implementationEnergy efficient lighting implementationEnergy efficient lighting implementation ........................................................................................................................................................................................30303030

5.1 Overview .......................................................................................................................30

5.2 The case......................................................................................................................... 30


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2 How to Implement Renewable Energy and Energy Efficiency Options




5.6 Case studies ...................................................................................................................35


6.6.6.6. EneEneEneEnergy efficient building implementationrgy efficient building implementationrgy efficient building implementationrgy efficient building implementation ....................................................................................................................................................................................39393939

6.1 Overview .......................................................................................................................39

6.2 The case......................................................................................................................... 40



6.5 How to go about implementation................................................................................... 446.6 Case study...................................................................................................................... 46


7.7.7.7. Public transportPublic transportPublic transportPublic transport ............................................................................................................................................................................................................................................................................................................................................50505050

7.1 Overview .......................................................................................................................50

7.2 The case......................................................................................................................... 51

7.3 Potential for rollout........................................................................................................ 527.4 Barriers to implementation.............................................................................................53


7.6 Case studies ...................................................................................................................56

8.8.8.8. Some useful resourcesSome useful resourcesSome useful resourcesSome useful resources........................................................................................................................................................................................................................................................................................................58585858


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Using this manual

This Manual has been designed for use by city officials and planners. It is a practical handbook,which identifies easy to achieve energy interventions that will save money (for cities, businesses andhouseholds), promote local economic development and enhance the sustainable profile of a city.

Four key interventions have been identified as important and sensible starting points for cities.These are tackled as separate sections in the manual:

Solar Water Heaters

Energy Efficient Lighting

Energy Efficient Building

Transport (Modal shift from private to public)

In each section, the manual will:

1. Make the case (broadly) for the intervention.

2. Explore the potential for mass rollout of the intervention, using specific city scenario modelsas case studies to determine

o The energy and carbon savings resulting from the intervention

o The financial impact of the intervention

o Poverty alleviation through the intervention

3. Identify key barriers to mass rollout of the intervention.4. Provide practical steps towards implementing mass rollout.

Developing the intervention scenarios

Scenarios for five cities in South Africa (Cape Town, Ekurhuleni,Tshwane, Potchefstroom and Sol Plaatje) have been modeled usingthe LEAP modeling software. The input data for the city models wasobtained from the cities respective State of Energy reports andenergy strategies. The outputs of this software allows one to see

what the energy, environmental and financial benefits will be whenconsidering a mass rollout of an intervention (for example installingsolar water heaters) against a business-as-usual (no solar waterheater) scenario.

For the demonstration purposes of this manual, just one citys resultswill be considered for each intervention. However the full results forall 5 cities are available on the Sustainable Energy for Cities website:www.sustainable.org.za/cities/

Unless otherwise referenced, all data and graphs in this manualare sourced from Sustainable Energy Africas publications and citymodels.

WHAT IS LEAP?WHAT IS LEAP?WHAT IS LEAP?WHAT IS LEAP?LEAP or Long-range Energy

Alternatives Planning Systemis software which allows one

to develop a business-as-

usual energy model of astudy area, for example a

city, by entering current en-ergy data, economic andpopulation growth rates,

household sizes etc. Variousalternative scenarios canthen be modeled, usuallyover a 20 to 30 year timeframe, and their impact

measured from an energy,environmental and economic

perspective.


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1. Success through sustainability

Our current energy use patterns predominantly our huge dependency on fossil fuels - cannot con-tinue. A move to a more sustainable path is important for the following reasons:

Te

mperature(C)

0

0.5

1

-0.5

1000 1200 1400 1600 1800 2000

Te

mperature(C)

0

0.5

1

-0.5

1000 1200 1400 1600 1800 2000

Year

Average planetary temperatures are rising, and global consensus is that this is due to the release of carbon diox-ide and other greenhouse gasses, largely linked to energy generation and use. Worldwide energy use predictionsstill point to a steady increase, indicating that the situation is likely to get worse before it gets better.

Average world temperatures over thepast 1000 years

Source:IPCC,20

01

Coal-burning electricity generationand fuel burning for transportationand industry results in poor local airquality in many South African cities.

Particularly high levels of local airpollution occur in industrialised areasand in poor households where coal,

wood and paraffin are used for cook-ing and heating.


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1.1 Better local air quality and human health

Local air pollutants from burning fossil fuels(power stations, petrol and diesel exhaustfumes) cause respiratory ailments and air-

borne particulate matter has been associated with cancer. Negative health effects of airpollution have been estimated to cost SouthAfrica R4 billion annually.

1.2 Arrested global

warming

Climate change is an accepted reality. It will

place enormous strain on our health sector,agricultural production, plant and animalbiodiversity and water resources. Disrup-tions in agriculture are likely to result in in-creased urbanisation and pressure on urbanresources. Fossil fuel-based energy use is thelargest contributor to carbon dioxide emis-sions the principle global warming gas.South Africa is almost entirely dependent onfossil fuels for electricity generation (i.e.coal) and for transport energy (oil prod-ucts).

1.3 Energy security

Fossil fuel reserves are finite. In particular,the relatively short horizon for oil reservedepletion means that there is an urgentneed to find alternative transport fuels,transport modes and approaches to mobility.

1.4 Equity

Currently, there is a huge divide between the energy use patterns and problems of the wealthierand poorer sections of the population. The poor often are burdened with inadequate, unsafe andinconvenient energy sources while wealthier, particularly urban people consume high levels of en-ergy and are inefficient in their use of energy.

Annual per capita CO2 emissions -South Africa compared to the rest of the world

The figure shows carbon emissions per person peryear around the world. Although developed countriesare the main global warming gas emitters, South Africais the 11th highest contributor to global carbon emis-sions, and we can expect to come under increasingpressure to reduce our carbon emissions, and thusfossil fuel use, over the coming years.


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1.5 Financial efficiency

Current inefficient energy use patterns mean that countries, cities and people have to spend moremoney than necessary for the energy service required (e.g. water heating, lighting etc). Many moreefficient and cost-effective appliances and practices are available, including efficient lighting, usingsolar water heaters and constructing buildings to use less energy for heating, cooling and lighting.

1.6 City development

The energy sector in SA creates em-ployment opportunities for about 250000 people and contributes about 15%to the total GDP. However, it is highlycentralized. Many sustainable energyinitiatives could be undertaken locally,thus stimulating local economic devel-opment. Examples of this could be themanufacture and installation of solar water heaters, putting ceilings inhouses, energy efficient building retro-fits and small local power generationplants (wind farms etc).

Fires caused by paraffin appliances, for example, are alarm-ingly common in South Africa, and destroy hundreds ofhomes at a time.

Some 16% of city households are not electri-fied, including those informal settlementsaround South African cities. Here they have torely on less convenient, dirtier and often unsafeenergy sources.

This graph shows the financial saving that is expected from im-plementing an efficient lighting programme in one South Africancity. This example uses CFLs compact fluorescent lights inplace of the traditional tungsten filament bulb.

Commerce

Local Authority

Residential

Cumulative Savings from a mass CFL rollout in a major South African c ity

2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

Cumula

tiveMillionSouthAfricanRands

3,200

3,000

2,800

2,600

2,400

2,200

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0


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2. Cities as energy leaders

Cities are energy intensive nodes in acountry. South Africas seventeen biggestcities use about 50% of the countrys en-ergy. Fifteen municipalities recentlystudied (shown on the map alongside)use about 40% of the countrys energy, yet occupy only 3% of the land area.Cities have an important role to play inthe shift to a more sustainable energypicture in South Africa. This is all themore pertinent given the high rates ofurbanization and population growth inmany of our cities.

Modeling projections show us that un-sustainable increases (a doubling of en-ergy consumption) in city energy use areexpected under the Business-as-usualscenario. The projection alongside is forone of the larger cities in the country.The expense and emissions associated with these increases comprise burdens

which will not be tolerable in the future.

City authorities have a much greater in-fluence over energy use patterns withintheir boundaries than is often realized.This is through:

Building regulations

Urban layout

Transport planning

Bylaws

Standards & codes

Air quality control measures

Electrification

If the country is to move towards moresustainable energy paths, cities will beessential partners in this process. Achieving the targets set by nationalgovernment, for example around energyefficiency, will be largely reliant on the

actions of cities.

Year

Demand: Energy demand final units

To download the State ofEnergy in SA Cities Report,

go towww.sustainable.org.za


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Challenges and opportunities

In total, just over 2 million people live in the counties of Nottinghamshire and Derby-shire which cover an area of almost 4,800 square kilometres. The counties, which are

located within the East Midlands region of the England, contain two large cities, anumber of smaller towns and many rural communities. The region has strong linkswith former energy industries such as coal mining, electricity generation and associatedheavy engineering companies. However, these sectors of the economy have been inlong-term decline and there is an urgent need for local economic regeneration, espe-cially in former coalfield areas. Fuel poverty is also a concern in certain communities.In addition to economic and social challenges, the region faces environmental threatsfrom global climate change, mainly in the form of potential flooding, droughts andstorm damage. Despite these problems, the region has considerable potential for en-ergy efficiency improvements, a skilled workforce for sustainable energy developmentand access to substantial renewable energy resources, especially in rural areas where

large amounts of wood are available.

Achievements and progress

Acting collectively through the LAEP, individual local authorities have been able to mul-tiply their activities by sharing knowledge and, crucially, leveraging funding throughjoint bidding. Considerable progress has been made in improving the energy efficiencyof the local housing stock and fuel poverty has also been targeted successfully. Memberlocal authorities have been recognized for achievements in different aspects of energyand sustainability, such as fuel poverty through the Beacon Council status awards. Oneconsequence of Beacon Council status is a requirement to disseminate good practice

and mentor other local authorities in its implementation. Collectively, the LAEP oper-ates and maintains a mobile energy advice centre to raise awareness of energy effi-ciency and renewable energy options amongst all sections of the population. Attentionis currently focussed on motivating the fuel rich to change behaviour and take actionto mitigate global climate change through the major Climate Heroes Campaign which issupported with substantial funding from national government.

All local authority members are encouraged to sign the Nottinghamshire Declaration onClimate Change which includes committing them to achieving significant reductions ingreenhouse gas emissions from their own operations. Leading local authorities in sus-tainable energy are currently leading a national Beacon Peer Support Programme whichis developing a sustainable energy toolkit and benchmark for local authorities to reduce

greenhouse gas emissions and contribute to tackling global climate change.

Resources from www.laep.org.uk

An Energy Strategy to 2020 Local Authorities Energy Partnership, May 1998.

Revised Energy Strategy to 2020 Local Authorities Energy Partnership, June 2001.

Current Challenges and Opportunities Local Authorities Energy Partnership, July2005.


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3. City action towards a sustainable

energy path

It is the responsibility of leaders in all tiers of government, commerce, industry and civil society to

promote action towards more efficient and renewable energy use. The focus here is on what citiescan do to promote action.

3.1 A sustainable energy strategy for your city

Energy is the lifeblood of a city and runs through every area of a citys functioning. Departmentali-zation within local government often means that cities do not have a complete understanding of

energy use, energy issues and energy initiatives within its boundaries. These need to be gatheredand understood in order to inform longer term energy planning.

Step 1: Develop a State of Energy Report. This summarises current energy use, energy sup-ply and key energy issues in a city.

Step 2: Develop a Sustainable Energy Strategy. This will coordinate energy planning with anoverarching city energy vision and set realistic renewable and energy efficiency tar-gets based on current data.

Step 3: Develop an Action Plan. This maps out how the targets are going to be achieved.

0%

20%

40%

60%

80%

100%

2003 2020 2050YEAR

Renewables

Wood

Nuclear

Natural gas

Fossil fuels

Introduce interim 'cleaner' fuels (e.g.

natural gas)

Reducing dependency on fossil fuels

Increasing use of renew able energy

The path to sustainability

2003

Inefficient use ofenergy

Dependence oncoal, petroleum

High

CO2emissions

Poor air quality

Fires, paraffin poi-soning, respiratoryillnesses among

households

2050

Efficient use ofenergy

Reduced depend-ence on fossil fuels

Low CO2 emis-

sions

Clean air

Safe and afford-able energy for all

Clean & Greeninternational profile

Key to moving towards sustainability will be a citys ability to shift its chief energy sources from non-renewablefossil fuels to more efficient fuels and clean renewables. Cities must be open to the notion of transition, as failureto change will have dire future consequences.


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3.2 The first steps

It makes sense to begin with those sustainable energy interventions which cities can implementrelatively easily and cost effectively. Within South African cities these key interventions have beenidentified as:

Installing solar water heaters

Energy efficient lighting implementation

Energy efficient building practices

Transport modal shift from private to public

Each of these interventions will result in (to a greater or lesser degree) reduced energy consump-tion, reduced CO2 emissions and economic and social benefits for all city dwellers, particularly thepoor.

Are you a City on the move?

YESYESYES YES NONONONO

Are we steadily moving from dirtier fossil fuelsmoving from dirtier fossil fuelsmoving from dirtier fossil fuelsmoving from dirtier fossil fuels?

Are we promoting interim cleaner optionsinterim cleaner optionsinterim cleaner optionsinterim cleaner options such as natural gas?

Are we promoting renewable energypromoting renewable energypromoting renewable energypromoting renewable energy low hanging fruit such assolar water heaters?

Are we pursuing energy efficiency aggressivelypursuing energy efficiency aggressivelypursuing energy efficiency aggressivelypursuing energy efficiency aggressively in all sectors?Are we promoting passive solar / efpassive solar / efpassive solar / efpassive solar / efficient designficient designficient designficient design of buildings?

Are we improving access to safer and healthier energyto safer and healthier energyto safer and healthier energyto safer and healthier energy sources forthe poor?

Are we keeping the cost of energy affordableenergy affordableenergy affordableenergy affordable for the poor?

Are we balancing these concerns with economic growtheconomic growtheconomic growtheconomic growth?


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As water is heated mostly by the sun, a solar water heater will reduce a citys CO2 emissionsby about 2.6 tons per household per year (Eskom).

For households, a solar water heater (SWH) also has several benefits:

Water heating costs for a mid-high income household can bereduced by some 60% with aSWH. This amounts to about a25 to 30% saving on an averagemonthly electricity bill. With theprice of electricity projected toincrease sharply in the next few years, this adds up to a lot ofmoney saved over time.

From an environmental perspec-tive, water will be heated mostlyby the sun reducing a house-holds CO2 emissions by about2.6 tons per year (Eskom). Auseful comparison is if an aver-age family car drives 7800km, itwill produce the same amount ofCO2.

Improved quality of life and a reduction in electricity costs can be expected in a low incomehousehold, where energy costs are often a large component of household expenditure andtheSWH may replace the use of dirtier fuels, such as paraffin, for water heating.

Commercial and industrial use of SWHs

Solar water heaters can be used effectively inseveral commercial applications (eg hotels), aswell as in hospitals, clinics and old age homes.Although the hot water demands here may behigher than residential, the increased roof areaof these buildings allows for more collectors tobe installed. Efficiency figures comparable tothose of the residential sector can be achieved.

Solar water heaters are not suited to replaceboilers and other high temperature water appa-ratus in industry. However they can be used forpreheating purposes, so that at least a percent-age of the heating operation draws on solar,rather than carbon-based, energy.

Photo:Suntank

Cumulative Savings from the Installation of a Solar Wa ter

Heater (unsubsidised)

R -20,000.00

R -15,000.00

R -10,000.00

R -5,000.00

R 0.00

R 5,000.00

R 10,000.00

R 15,000.00

R 20,000.00

R 25,000.00

R 30,000.00

1 2 3 4 5 6 7 8 9 10

Years

Loan Repayments Electric it y Saved Cumulat ive Savings

Savings in electricity costs can be used to offset the additionalcost of a SWH. Depending on the system used and the amountof hot water required by a household, studies show that a SWHwill pay for itself in electricity saved over a 4 8 year period.After that, all savings from the SWH will be cash in the pocketfor the homeowner.


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4.2 What is a solar water heater?*

A solar water heater uses energy from the sun to heat water. A solar water heater works on two ba-sic principles. Firstly when water gets hot it rises due to density differences between hot and coldwater (thermosiphon effect) and secondly that black objects absorb heat.

A solar water heater comprises three main parts: the collector, the storage tank and an energy trans-fer fluid.

Solar water heaters are classified as either active or passive and direct or indirect systems. They maymake use of either flat plate collectors or evacuated tubes. Below the differences are briefly dis-cussed.

Active vs passive

Active: Uses a pump to circulate the fluid/water between the collector and the storage tank.Passive: Uses natural convection (thermosiphon) to circulate the fluid/water between the collector

and the storage tank.

Direct vs indirect (open-circuit)

Direct: The collector heats the water directly and the water then circulates between the collectorand the storage tank. A direct system can only be used in areas which are frost and limefree, without treated or borehole water.

Indirect: The water is stored in the storage tank, and is heated by a heat transfer fluid. This isheated in the collector and flows around a jacket which surrounds the tank and therebyheats the water. An indirect system can be used in all conditions.

*Much of this information was drawn from the Solar Heat Specialist Handbook

Storage Tank

Heat Transfer fluid

Collector

Photo:SolarHeatExchangers

Photo:SolarHeatExchangers


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Split coupled systems: These refer to systems where the water storage tank is situated elsewhere usually within the roof. Where the tank can be installed above the collectors a passive systems canbe used (using thermosyphon to circulate water), where not, a pump (active system) would need tobe installed to circulate water through the collectors.

4.3 Potential for rollout

How much energy, carbon and peak demand power would be saved if 15 of SAs major cities had

solar water heaters installed today?

Collector

Split Coupled System (active)

Water is pumped from the storage tank, throughthe collector and back again. Pump rate is usuallycontrolled electronically.

Split Coupled System (passive)

Source:SustainableLivingProjects

Storage Tank(under roofbut abovepanels)

10%penetration of

SWHs

(thousands of

systems)

Peak demand

reduction (MW)

Energy saving

(GWh/yr)

Carbon

reduction

potential

(thousand tons

CO2/yr)

50%penetration of

SWHs

(thousands of

systems)

Peak demand

reduction (MW)

Energy saving

(GWh/yr)

Carbon

reduction

potential

(thousand tons

CO2/yr)

100%penetration of

SWHs

(thousands of

systems)

Peak demand

reduction (MW)

Energy saving

(GWh/yr)

Carbon

reduction

potential

(thousand tons

CO2/yr)

Buffalo City 19 12 42 50 96 60 210 248 191 119 420 497

Cape Town 76 48 167 198 380 238 836 988 760 475 1,672 1,976

Johannesburg 105 66 231 273 525 328 1,155 1,365 1,050 656 2,310 2,730

Tshwane 56 35 124 146 282 176 619 732 563 352 1,239 1,464

Ekurhuleni 75 47 164 194 373 233 820 969 745 466 1,639 1,937

eThekwini 79 49 173 205 394 246 866 1,023 787 492 1,731 2,046

King Sebata 9 6 20 23 45 28 98 116 89 56 196 231

Mangaung 19 12 41 48 93 58 204 241 185 116 407 481

Msunduzi 13 8 29 34 65 41 143 169 130 81 286 338Nelon Mandela 26 16 57 68 131 82 287 339 261 163 574 679

Potchefstroom 3 2 7 8 16 10 35 42 32 20 70 83

Saldanha Bay 2 1 4 5 9 6 20 23 18 11 40 47

Sedibeng 23 14 50 59 114 71 250 295 227 142 499 590

Sol Plaatje 5 3 10 12 24 15 52 61 47 29 103 122

uMhlatuze 7 4 15 17 34 21 74 87 67 42 147 174

ALL CITIES 515 322 1,133 1,340 2,576 1,610 5,667 6,698 5,152 3,220 11,334 13,395

Assumptions (from Eskom DSM estimates):

Peak demand reduction (after diversity) 0.625 kW/household

Energy savings: 2200 kWh / system / year

Tons CO2 saved per system: 2.6 ons/yr


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There is huge potential for a mass rollout of solar water heat-ers in cities around South Africa. This is demonstrated withinmodeling done for five South African cities using LEAP energymodeling software (See section: Using this manual). This ex-plored a business-as-usual (no SWHs) scenario and a SWH in-

stallation intervention scenario.

The impact of a large SWH programme in a city: the case of

Tshwane

In their Energy Strategy of 2006,the City of Tshwane set targetsfor household penetration of so-lar water heaters of:

10% by 2010

50% by 2020.

These targets are similar to thoseadopted by other cities in South Africa. Incorporating these fig-ures into LEAP, the following re-sults arose:

Energy savings Achieving SWH targets inTshwane will result in a cumula-tive saving of 5 million MWh ofelectricity by 2024. In power sta-tion capacity terms it will createa 350MW peak power reduction(10% of ESKOMs biggest powerstations capacity) in 2024.

Carbon savingsIf the city achieves its targets,nearly 5 billion kilograms of CO2

will have been saved by 2024.

Financial analysisConsidering rollout from a project perspective using the sametargets, two separate projectswere considered based on differ-ent housing income categories:

Residential

Cumulative Energy Savings from the Installation of Solar Water Heaters-Tshwane

Scenario: 10% installed by 2010, 50% installed by 2020

2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

CumulativeThousandMegawatt-Hours

5,000

4,800

4,600

4,400

4,200

4,000

3,800

3,600

3,400

3,200

3,000

2,800

2,600

2,400

2,200

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Residential

Cumulative CO2 Savings from the Installation of Solar Water Heaters-Tshwane

Scenario: 10% installed by 2010, 50% installed by 2020

2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

CumulativeMillionKilogrammes

5,000

4,800

4,600

4,400

4,200

4,000

3,800

3,600

3,400

3,200

3,000

2,800

2,600

2,400

2,200

2,0001,800

1,600

1,400

1,200

1,000

800

600

400

200

0

To see the complete set of outputsfrom LEAP for all the cities mod-eled, visit the Sustainable Energy

for Cities website atwww.sustainable.org.za/cities


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Project 1: Rolling out SWHs amongst medium to high income households

Due to the high use of electricity for water heating in this income group, a SWH rollout will workfinancially as the system will begin to pay for itself over a short period of time.

Project 2: Rolling out SWHs to low income houses

Here the project does not look viable due to the relatively low use of electricity and other fuels forwater heating purposes.

SWH cumulative cashflow to achieve 50% installation

in med-hi income houses by 2020 -Tshwane

(unsubsidised)

R -4,000,000,000

R -2,000,000,000

R 0

R 2,000,000,000

R 4,000,000,000

R 6,000,000,000

R 8,000,000,000

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Electricity savings

Loan Repayments

Total Savings

Net Present Value (10%discount rate):

5yrs: R27,237,51710yrs: R117,706,74420yrs: R716,574,919

This graph shows thetotal project financial vi-ability


in low income houses by 2020 -Tshwane

(unsubsidised)

R -4,000,000,000

R -3,000,000,000

R -2,000,000,000

R -1,000,000,000

R 0

R 1,000,000,000

R 2,000,000,000

R 3,000,000,000

2

004

2

005

2

006

2

007

2

008

2

009

2

010

2

011

2

012

2

013

2

014

2

015

2

016

2

017

2

018

2

019

2

020

2

021

2

022

2

023

2

024

Electricity savings

Loan Repayments

Total Savings

Net Present Value(10% discount rate):5yrs: R63,444,581

10yrs: R173,013,15920yrs: R222,425,170

Remember that this graphshows total project financialviability as opposed to thesingle residence graph shown

earlier.

Assumptions: Systems cost R10000 paid back over 10yrs @12% p.a., electricity price increase of5% p.a., SWH price increase of 5% p.a.

Assumptions: System cost R6000 paid back over 10yrs @12% p.a., electricity price increase of5% p.a., SWH price increase of 5% p.a.


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However, if this low-income SWH project received a 50% subsidy it would be financially viable:

It should be noted that good quality, small (55litre) solar water heaters are available for aroundR3000 fully installed. The graph above shows that if these systems were installed instead of the lar-ger and more expensive ones modeled, the rollout would be financially viable, even without beingsubsidized.

Solar water heaters: viable in low income households?Conventional assessments indicate that SWHs are

not financially viable in these households, largelybecause they do not spend enough money on energyfor water heating. The saving from using solar en-ergy for this purpose would not repay the cost of theSWH, even with very attractive financing terms.

However, some experience indicates that the poten-tial for SWH adoption in this income sector is eco-nomically much more beneficial and viable than cur-rently held. Consider the following factors and ex-ternal costs for such households, cities and state:

Negative safety and health impacts and costs of water heating using dangerous and dirty fuelssuch as paraffin.

Increased affordability of SWHs as incomes rise and economies of scale bring SWH costs down.

Opportunity cost of time for a person to heat water using more traditional fuels, such as wood.

Potential for peak load reduction, and avoiding network capacity constraint that accompaniesthe common use of kettles for water heating in low income houses.

Likely Eskom subsidy for SWHs is expected to improve their affordability significantly.

From a simple economic as well as welfare point of view, therefore, it seems that SWHs in the lowincome sector should remain a strong focus, and innovative solutions to rollout should be further

explored.


in low income houses by 2020 -Tshwane (50%

subsidy)

R -2,000,000,000

R -1,000,000,000

R 0

R 1,000,000,000

R 2,000,000,000

R 3,000,000,000

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Electricity savings

Loan Repayments

Total Savings

Net Present Value(10% discount rate):

5yrs: R736,894

10yrs: R7,348,64220yrs: R187, 283,785

Assumptions: System cost R3000 (subsidized) + R3000 paid back over 10yrs @12% p.a., elec-tricity price increase of 5% p.a., SWH price increase of 5% p.a.


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This is a potentially very effective mechanism to drive implementation and stimulate the solar waterheater industry. In order to allow for initial supply capacity deficits, a tiered introduction processcan be adopted to ensure the industry keeps up with the new growth in demand. For example forthe first year of the bylaw, only new houses or additions exceeding R1,000,000 in value need to in-stall SWH, then the following year all new houses and additions exceeding R750,000 need to install

SWH, and so on.

A bylaw does hold particular challenges for a city:i) Building inspectors will need additional training so that they can approve installations

and enforce the law correctly.ii) The tiered method of introduction should be carefully considered in order to make the

bylaw practicable.

Fee for service mechanism

The idea behind this mechanism is that people buy a service, in this case hot water, from an energyservices company (ESCO), rather than energy to perform the service (e.g. purchasing electricity so itcan be used to heat water). The ESCO buys and installs the solar water heater(s) at their own cost.They retain ownership. They can then sell the hot water to the owner / business in the followingways:

i) metering the hot water / volumeii) a lease or hire/purchase agreement over a fixed period for the SWH equipmentiii) a fixed monthly tariff - which is ideally comparable to the monthly electricity saving

from a solar water heater

This mechanism is attractive because the hot water user (house/ hospital etc) bears no capital costsand doesnt worry about the maintenance of the system. Although in the long run users will paymore than if they bought and installed a system themselves, this mechanism works well as it avoidsprohibitive capital costs and is relatively hassle free (no maintenance, repair, responsibility etc).

This provides a useful mechanism for cities to consider implementing within their own facilities(council housing schemes, public facilities, large buildings, etc). Within the residential or commer-cial sector cities could play a role in supporting fee for service mechanisms through administeringand collecting the monthly tariff (service fee) on the ESCOs behalf, through their established ratescollection process.

City of Cape Town the first SA city to embarkon Solar Water Heater Bylaw process

Cape Town is currently in the process of imple-menting a solar water heater bylaw. The draftingof the bylaw was initiated under the Citys Energyand Climate Change Strategy. The bylaw is cur-rently going through the stakeholder awarenessprocess, and should be ready for submission tocouncil by mid 2007.

To find out more about the Cape Town by-law goto www.sustainable.org.za and click on the SolarWater Heaters and Cape Town Bylaw tab.


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Fee-for-service mechanisms are being used within large institutions, such as flats and retirementhomes. Their application within low cost housing schemes is being explored and institutional andfinancial models that will have important applications for city housing delivery and under develop-ment.

The Nelson Mandela Bay Metropolitan Renewable Energy Project

NMBM, through their Electricity and Energy Business Unit, are pioneering a renewable, clean andenergy efficiency project in which the private sector will provide the relevant services, supportedby the municipality. A call for renewable, clean and energy efficiency projects was put out by theNMBM in February 2006 and three bids offering a range of wind, solar, DSM, cogeneration andlandfill gas technologies were accepted.

The Metro will support these projects on two levels. They will provide financial support through thenegotiation of pricing structures that will ensure the projects financial viability. They will also pro-

vide administrative support, such as the inclusion of relevant projects within the municipal billingsystem.

The basic premise underlying the model is that the Metro will not incur any costs other than thepurchase of green electricity (at a premium). It will make use of supplementary finance mecha-nisms available to green energy, to offset the cost of this electricity and in so doing reduce the pricedifferential between renewable energy and Eskom grid electricity.

Energy ServiceCompanies

Big financiers (eg DBSA)

City / local

governmentSWH suppliers

and installers

Houses

Supply and install

equipment

Revenue

Contract

Install SWHAgreement Revenue collection

eg via rates,electricity bills

Agreement

Repayments

Note: The

ESCO could bea private firmcontracted by

city, or a cityowned SWH

utilityLoans

Solar Water Heating Energy Service Company (ESCO) Model

CDM Finances andgrants/subsidies


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Tradeable Renewable Energy Certificates (TRECs)

TRECs (Tradable Renewable Energy Certificate System) have beentraded since 2002 in South Africa. It is currently working well inEurope, parts of America and Australia. When completely opera-

tional in South Africa, the TREC system may provide a usefulmechanism to subsidise the capital cost of installing a solar waterheater. The sale of TRECs generated over the lifetime of a solar wa-ter heater can cover roughly 15% of the SWHs capital cost.

Once the system is up and running, a TREC can be issued to anyone who displaces 1MWh of con-ventionally generated dirty grid electricity (e.g. through installing solar water heaters) or anyonewho generates 1MW-hr of clean electricity (e.g. a wind farm). This certificate can then be sold onthe open market to individuals or businesses who want to green their electricity consumption.

Incentivising SWH installation: the Australian REC system

The government of Australia supports renewable energy by offering rebates to households whoinstall solar water heaters. In addition to the rebate, households are also eligible for up to $900through renewable energy certificate (REC) sales. A REC is the equivalent of 1 MWh of energy.

The number of RECs a consumer receives is calculated as displaced energy over 10 years, basedon the daily sunlight hours and system efficiency.

Through adopting this simple demand pull system the return on investment for the end user hasdramatically increased, and demand has grown, assisting government towards reaching theirmandatory renewable energy target. For more information please visit:

http://www.bcse.org.au/default.asp?id=289http://www.orer.gov.au/publications/mret-overview.htmlhttp://www.orer.gov.au/recs/index.html

What about Solar Water Heaters in informal housing?

It is often feasible to provide electricity to informal settle-ments, but there are no widely available solar water heat-

ing solutions for these houses at present. Informalhouses have little or no plumbing, which means that con-ventional solar water heating systems are not applicable.However simple, cost effective ideas such as coiled rub-ber tubing on the roof or even black buckets could work.

Looking for more info onTRECs in SA?

Go to www.dme.gov.za


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Utility subsidies

Eskom has recently committed itself to promoting the use of solar water heaters as an element of itsdemand side management (DSM) programme. Eskom looks likely to implement a significant sub-sidy to support large scale SWH implementation in South Africa. Depending on the level of the sub-

sidy, it will make the purchase of solar water heaters even more attractive to medium to high in-come groups, and is likely to make them financially viable for use by low income groups as well.The subsidy will most likely occur on the manufacturer and supplier side, in order to allow financialand quality control.

Using the Cleaner Development Mechanism (CDM)

Up until November 2005, only individual projects could register as CDM projects. For small carbonsaving projects, the net carbon revenue (after taking off transaction costs) is very small, due to thecosts of designing the project, taking it through the CDM process and the sales transaction costs fora small carbon credit volume. In response to this problem a new type of CDM, Programmatic CDM,

has been established enabling the pooling and crediting of allemission reductions occurring under a programme of similarprojects. This significantly increases the volume of creditsgenerated, hence tapping into economies of scale. However,work in this area is still proceeding and the mechanism is notyet readily available to cities.

4.6 Case studies

Case study: SWH implementa-

tion in low-income households -

the Lwandle solar water heater

project

The Lwandle hostel, host to the largest SWHinstallation initiative to date in South Africa, liestucked away in Lwandle township in SomersetWest, within the Western Cape. The hostel,owned by the Helderberg Municipality origi-nally served as a single mens accommodationfor the Gants food and canning factory.Through an extensive community participationprocess motivated by the closure of the Gantsfactory in the late 1980s, the community an-nounced their primary needs as being jobs, pri-vacy, toilets and hot water.

The community development project which en-sued worked towards meeting the needs of thecommunity and came to be known as theLwandle Hostel to Homes Rental Project. The

hostel was converted into family units with

For more details on a programmaticapproach to CDM visit

www.southsouthnorth.org


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some provision for singles, giving rise to 967 units owned by the local authority and available forrental from R114-R172.

In terms of satisfying the community need for hot water, 305 SWHs were installed (without electric-ity back-up) to provide hot water. Provision of SWHs was made possible through the local authority

securing a low interest loan from the Development Bank of Southern Africa. Residents paid a fixedrate for hot water as a way of servicing the loan. The SWHs are mounted on stands on the existingrooftops in order to receive the best orientation (north) for the heating of the panels.

Initially the community expressed a high level of satisfaction with the hot water service. A surveyconducted in 2003 found residents continuing to use the SWHs, but complained of heaters not heat-ing water sufficiently over the cold rainy winter months of the Cape. Systematic maintenance didnot seem to be taking place either.

The SWH systems are now owned by the City of Cape Town, and residents/tenants continue to paya fixed monthly rental fee (the monthly rental fee increased from R17.50 to R23 by 2003) includedin their monthly rent to cover the repayments on the capital cost of the SWHs. As regards the cur-rent situation, little is known, except for anecdotal evidence of some systems being broken or inneed of maintenance. Momentum around this project has ceased and the City of Cape Town shouldbe encouraged to assess the current status and develop a plan to take project forward to a more sus-tainable situation.

Case study: Facilitating solar water heating in cities through

commercial installation in new, private developments and fee for

service models

An increasing number of companies are emerging in

the area of solar water heating with a range of innovative approaches and products. These productsprovide opportunities for cities to adopt solar waterheating within their own buildings (residential andpublic institutional facilities) without incurring up-front capital costs. Cities may also be able to pro-mote widespread use of such mechanism throughproviding administrative support in the form ofmonthly tariff collection through city rates tariff sys-tems. Cities might also prompt new, private housingdevelopment to include solar water heating through

encouraging this in development approval applica-tion processes.

Solar water heater installation in new

housing developmentA new housing estate development in Randburg, Jo-hannesburg included solar water heaters in the hous-ing development. It considered this to be an impor-tant basis for responsible development in addition toproviding energy savings for prospective homeown-ers. Additional bond repayment cost is negligible and

the energy saving exceeded the cost of the SWH. The

Photo:TrevorvanderVyver

Photo:TrevorvanderVyver


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housing development, consisting of 52 two bedroom units, targets new, small, mid-income families.Units were fitted with 190 litre evacuated tube systems (without electricity backup). The SWHs areused as pre-heaters for conventional 230volt 150 litre geysers.

Typical electricity savings per unit is 93 600 kWh per year.

Typical carbon dioxide emissions avoided are 103 tons per year. Typical water savings from avoided electricity generation is 117 936 litres.

Case study: Commercial scale SWH installation at a retirement

centre through a fee-for-service arrangement

Power cuts resulting in increased dissatisfaction among tenants led a private retirement centre inPretoria to convert its water heating system from a conventional electric system to a solar heatingsystem with an electric back-up, in 2005. The retirement centre is home to 100 residents. The solarwater heating system has been fitted by an energy services company. The retirement centre leases

the system and only pays for the energy consumed during the month. 90 solar panels with a collec-tor surface area of 120m2 were installed with a maximum demand control unit built into the circu-lation unit. The storage capacity of the system is 9000 litres. The system uses a forced pump circula-tion, and has a differential thermostat control together with antifreeze protection. The savings ac-crued are:

Energy savings (90 panels) = 197.1MWh per year Financial Savings: R56,000 - R60,000 per year Environmental Saving: 18tons of coal, 90 tons annual CO2 emissions avoided

Large scale solar water heating on mid-high income Durban apartment block

Photo:SolarBeam

Photo:Suntank

Solar water heating on retirement centre

Photo:Suntank


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curement, installation and commissioning,operation monitoring and performance guar-anteesPlease access www.eskomdsm.co.za for a listof Eskom accredited ESCOs. Note: this does

not constitute a complete list of ESCOs regis-tered in South Africa.

EskomEskomEskomEskom

Financial assistanceEskom Demand Side Management (DSM)provides financial support to energy efficiencyprojects and is firmly committed to SWH pro-ject development and investment.Andrew EtzingerGeneral Manager Investment StrategyTel: 011 800 5136Email: [email protected]: www.eskom.co.za

National Energy Efficiency Agency (NEEA),National Energy Efficiency Agency (NEEA),National Energy Efficiency Agency (NEEA),National Energy Efficiency Agency (NEEA), aaaadivision of CEF (division of CEF (division of CEF (division of CEF (Pty) LtdPty) LtdPty) LtdPty) Ltd

Technical and financial assistance, as well as

aggregated bulk procurement opportunities

from accredited suppliers.NEEA is a division of CEF (Pty) Ltd and willinitially oversee various components of thenational (Eskom) Demand Side Management

(DSM) and energy efficient projects in thecountry. These would typically include theretrofitting of public facilities (at a National,Provincial and Local government) level, gen-eral awareness creation and the formulationand recommendation of policy and regulatorytools required to meet the targets set in gov-ernments National Energy Efficiency Strategyfor South Africa. NEEA will also look at abroader energy mix than electricity alone, in-cluding the application of energy efficiency in

liquid fuels for the transport sector, renewableenergy and gas projects.Barry BredenkampTel: 011 280 0411Fax: 011 280 0516Cell: 083 655 6891Email: [email protected]: www.cef.org.za

Renewable Energy and Energy EfficiencyRenewable Energy and Energy EfficiencyRenewable Energy and Energy EfficiencyRenewable Energy and Energy EfficiencyPartnership (REEEP)Partnership (REEEP)Partnership (REEEP)Partnership (REEEP)

Financial assistanceREEEP is to finance a one year demonstrationproject for solar water heaters (SWHs) in East

Africa, with the aim of accelerating SWH up-take in the region. REEEP offers project fund-ing with periodic calls for proposals. There isgreat potential for cities to access REEEPfunding for renewable energy and energy effi-ciency projects.Carmen ArmstrongREEEP Southern Africa ManagerTel: 021 701 3364Fax: 021 701 3365Cell: 082 492 8654Email: [email protected]: www.reeep-sa.orgwww.reeep.org

Solar Energy Society of Southern AfricaSolar Energy Society of Southern AfricaSolar Energy Society of Southern AfricaSolar Energy Society of Southern Africa(SESSA)(SESSA)(SESSA)(SESSA)

Information provisionSESSA promotes the use of renewable energy with informal education, demonstration anddissemination to end-users and other decisionmakers of all levels. SESSA has also been in-volved in the accreditation of SWH installers,

by assisting in the creation of appropriatestandards for products, systems or methodsand training.SESSATel: 011 789 1384Fax: 011 789 1385Email: [email protected]: www.sessa.org.za

Solar Water Heater (SWH) ManufacturersSolar Water Heater (SWH) ManufacturersSolar Water Heater (SWH) ManufacturersSolar Water Heater (SWH) Manufacturersand Suppliersand Suppliersand Suppliersand Suppliers

Manufacturers, suppliers, and installers ofSWHs. Some companies also provide mainte-

nance of SWHs.

Able to assist cities with the supply, installa-tion and maintenance of SWH technology. A comprehensive list of South African SWHindustry role-players (manufacturers and sup-pliers) including the type and description ofsupport offered to cities by these companies,can be accessed at the following websitewww.sustainable.org.za/cities


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South African Bureau of Standards (SABS)South African Bureau of Standards (SABS)South African Bureau of Standards (SABS)South African Bureau of Standards (SABS)Technical assistance

South African National Standards (SANS)specify the characteristics of domestic solarwater heaters. The SABS has developed stan-

dards for domestic solar water heaters, which would guide/inform city procurement ofSWHs for SWH projects.SABS Head OfficeTel: 012 428 7911Fax: 012 344 1568Website: www.sabs.co.za

SouthSouthNorth (SSN)SouthSouthNorth (SSN)SouthSouthNorth (SSN)SouthSouthNorth (SSN)CDM facilitation

SSN is in the process of pioneering a pro-grammatic CDM approach (allowing for pro-ject activities several renewable energy andenergy efficiency projects - under a pro-gramme of activities to be registered as a sin-gle CDM project activity) to attract carboninvestment for projects such as SWH projects(expected to be operational end 2007). Thisapproach/methodology will enable projectdevelopers to register additional projects asCDM much faster and at minimal cost.Programmatic CDM is seen as an attempt tolower transaction costs, particularly for re-

newable energy and energy efficiency projectsLester MalgasSouthSouthNorthTel/fax: 021 4251464Cell: 072 299 0270Email: [email protected]: www.southsouthnorth.org/

The Parallax/PACE (Promoting Access to CaThe Parallax/PACE (Promoting Access to CaThe Parallax/PACE (Promoting Access to CaThe Parallax/PACE (Promoting Access to Car-r-r-r-bon Equity) Centrebon Equity) Centrebon Equity) Centrebon Equity) Centre

CDM facilitationThe Parallax/PACE centre provides free sup-port for cities in facilitating the development

of a portfolio of smaller CDM projects (re-newable energy and efficiency projects) toobtain carbon revenue to support financial viability of project implementation. It doesthis by matching CDM project implementerswith local CDM developers and internationalcarbon investors.Derek MorganTel: 031 305 3743Fax: 088 31 305 3743Cell: 083 419 0240E-mail: [email protected] Cooper: [email protected]:www.parallaxonline.net/pacehome.htmlwww.carbon.org.za


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5. Energy efficient lighting

implementation

5.1 Overview

It has been estimated that electricity for lighting consumes almost20% of the output of the worlds power stations. The use of energyefficient lighting is one of the best and most cost effective ways ofreducing our national energy consumption. Efficient lighting pro-grammes can be implemented in several areas within cities:

Replacing traditional incandescent bulbs with compact fluo-

rescent light bulbs (CFLs). Replacing old fluorescent tubes with efficient fluorescent

tubes in local government and commercial buildings.

Using light emitting diode (LED) technology wherever possi-ble. This is getting steadily cheaper and more accessible.LEDs have several energy and cost saving applications, suchas traffic lights and downlighters.

Making streetlights more efficient through the use of highpressure sodium lights instead of the old mercury vapourlight. Sodium lights operate on just over half the power ofthe mercury vapour light, and last up to 6000 hours longer.

5.2 The case

For the purpose of this manual we will consider only replacing incandescent bulbs with CFLs andinstalling energy efficient fluorescent tubes.

The residential and commercial sectors in South Africa together consume 21% of the countrys elec-tricity. Lighting makes up approximately 12% of the total electricity used in this area. By replacingexisting incandescent light bulbs and fluorescent tubes with compact fluorescent light bulbs (CFLs)and efficient fluorescent tubes, this figure can be reduced by up to 75%.

From a city and national perspective this will have the following benefits:

The reduction in energy consumption and in particular peak demand from the use of effi-cient lighting will improve the energy security of a city through reducing the dependencethat the city has on the national grid.

Reduction in demand from the residential, local government and commercial sector meansthat fewer power stations need to be planned for in the future. Eskom has recognized thatefficient lighting will play a major role in its demand side management (DSM) process.

A Compact FluorescentLight (CFL) uses five timesless energy than an equiva-

lent incandescent bulb


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From a home owners, business owners or local governments perspective, installing efficient light-ing also has several benefits:

A Compact Fluorescent Light (CFL) is expected to last 10 times longer than an incandescentbulb. Over the life cycle of a CFL, its capital cost (approximately R18) is nearly half that of

the capital cost of 10 incandescent bulbs (approximately R30). The longer lifecycle of a CFLalso means lower maintenance costs to a business or a local government building.

A CFL is 80% more efficient than an incandescent bulb. This means that the same amount oflight can be generated using 1/5 of the power. Over the lifetime of one 18W CFL (theequivalent of a 100W incandescent) which is approximately 10 000 hours, a saving of800kWhrs of electricity will beachieved amounting to R300 of elec-tricity saved per CFL (using todaysrates).

From an environmental perspective,approximately 800kg of CO2 will besaved over the lifetime of one CFLcompared to the equivalent incan-descent, assuming that the electricitysource is a coal based power station.

Improved quality of life through areduction in electricity costs for alow income household where theproportion of energy costs to incomeis very high.

A 36W efficient fluorescent tubeprovides the same amount of light asa standard 40W fluorescent tube. In-stalling electric ballasts will also im-prove efficiency. Using both will im-prove efficiency by as much as 25%

LEDs (light emitting diodes) lights ofthe future?

LED downlighters are much more efficientthan the conventional halogen downlight-ers. They typically use 2 Watts, comparedwith the 35 Watts of a halogen. They alsolast much longer over 50 000 hours. LEDprices are still relatively high, but decreas-ing fast as this technology becomes moremainstreamed. Besides downlighters, LEDscan be used in traffic lights and streetlightstoo.

Cash flow comparison of a CFL

against an Incandescent Bulb over a

CFL's lifespan

0

50

100

150

200

250

300

350

400

450500

1 2 3 4 5 6 7 8 9 10

1000 hrs

Cumulativecapitalandelectricity

costs(R)

Incandescent globe CFL

This graph compares the cost of purchasing and using aCFL with the cost of purchasing and using an incandescentbulb over the same time frame. In this case an 18W CFL(costing R18 with a lifespan of 10 000 hrs) is comparedwith a 100W incandescent bulb (costing R3 with a lifespanof 1000 hrs).


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5.3 Potential

for rollout

There is great potential for a massrollout of efficient lighting in cities

throughout South Africa. To demon-strate the impact of this, 5 South Afri-can cities have been modeled usingLEAP (See How to use this Manual),firstly using a business-as-usual (noefficient lighting) scenario, then usingan energy intervention (efficient light-ing installed) scenario. For the pur-poses of this manual, we will considerthe case of Cape Town

The impact of a largeefficient lighting

programme in a city:

the case of Cape Town

Cape Town has the following penetra-tion targets set for energy efficientlighting in its energy strategy:

Commercial and Local Author-

ity 100% by 2010, Residential 30% by 2010 and

90% by 2020

Energy savings Achieving city targets will mean8 million MWh of electricitysaved by 2024. In power stationcapacity terms, in 2024, it willnegate the need for a 123MWfacility (including transmission

line losses and a reserve capacityof 30%) about 3.5% of the ca-pacity of ESKOMs biggest powerstation.

Carbon savingsOn the carbon saving side, if thecity achieves its targets, over 7.5million tonnes of CO2 will havebeen saved by 2024.

CommerceLocal AuthorityResidential

Cumulative Energy Savings from Efficient Lighting Interventions - Cape Town

Scenario: Residential 30% by 2010,90% by 2020, Commercial 100% by 2010

2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

CumulativeThousandMegawatt-Hours

7,500

7,000

6,500

6,000

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

CommerceLocal AuthorityResidential

Cumulative CO2 savings from efficient lighting interventions-Cape Town

Scenario: Commerce 100% by 2010, Residential 30% by 2010,90% by 2020

2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

CumulativeMillionKilogrammes

7,500

7,000

6,500

6,000

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

CommerceLocal Authority

Residential

Cumulative Savings from Efficient Lighting Interventions - Cape Town

Scenario: Commercial 100% by 2010; Residential 30% by 2010, 90% by 2020

2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

CumulativeMillionSouthAfricanRands

3,200

3,000

2,800

2,600

2,400

2,200

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Net PresentValue (10%

discount rate):

After 5yrs:R93 million

After 10yrs:R 339 million

After 20yrs:R 882 million


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Financial analysisConsidering rollout from a project cost perspective using the same scenario, R3.2 billion will besaved from both reduced capital costs and energy saved, based on todays electricity and light bulbcosts.

Poverty alleviationEach CFL used in a low income house will save more than R300 over its lifetime. This is a substan-tial saving for an impoverished household.

5.4 Barriers to implementation

Lack of information and awareness: There is the perception that CFLs are expensive, and this is par-ticularly a problem for low income electrified households. Although the lifecycle savings of a CFLare well documented, the initial cost seems to be the deterrent.

City electricity departments want to sell not save: Many cities depend heavily on their incomefrom their electricity departments, and are more interested in selling electricity than saving it.

Inertia in procurement process (use existing suppliers and technologies): Governments and largecorporations are often tied to procurement policies which dictate that a particular supplier or tech-nology must be used. In the case of lighting, these suppliers often dont supply energy efficient op-tions. Staff involved with procurement are often not aware of the energy efficient options available.Some buildings are tied to maintenance contracts with similar problems.

Cheap technologies have given good quality CFLs a bad name.

CFLs cannot be used in dimmer applications.

CFLs contain mercury vapour, which makes safe disposal difficult: The safe disposal of CFLs is animportant environmental issue which cities, within an efficient lighting programme, need to giveserious consideration. Any efficient lighting programme MUST be accompanied by a safe disposalprogramme.

Responsible CFL disposal

In 2006, over 5 million CFLs were distributed within the Western Cape as part of Eskoms DSMprogramme. Many stakeholders, however, raised concern about the safe disposal of these lampsat the end of their life, because of the mercury found in the lamp. CFLs are hazardous waste andwill need to be disposed of safely.

A task team, made up of Eskom, government, lighting manufacturers, waste disposal experts andNGOs has been established to look at safe ways of disposing CFLs. A recycling plant for CFLs isbeing investigated and the safe disposal of CFLs will be implemented.


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5.5 How to go about implementation

City buildings and council housing retrofits and ongoing

procurement processes

Cities need to develop policy and strategies around energy efficiency in council buildings and prem-ises and in council-owned housing. This will provide overarching direction to the citys intent tomove towards energy efficiency in lighting. Implementation of the strategy then requires:

a) Locating responsibility for retrofit with a specific line department.

b) Identification of building stock and a programme of retrofit.

c) Identification of financing for building retrofit. This may come from internal sourcesthrough usual budgets for maintenance of building infrastructure costs (and making thecase to city finance departments that future savings more than justifies the upfront addi-tional capital costs). Additional capital costs can also be met through funding sources such

as Eskom DSM.d) Longer term implementation requires that City procurement policies be adjusted to ensure

that efficient lighting is routinely procured and installed. This may also require a capacitybuilding process amongst staff involved in lighting procurement. Such capacity buildingwould need to ensure that building maintenance staff is aware of the safe disposal re-quirements for CFLs.

Awareness programmes

Awareness needs to be built amongst staff involved in the procurement and maintenance of lightingin government and large corporations, highlighting the sustainable benefits of using efficient light-

ing. There also needs to be continued education of the population at large of the benefits of usingCFLs, as well as the need for careful disposal.

Cities can promote efficient lighting through environmental education campaigns, household envi-ronmental campaigns and building partnerships with business to address energy efficiency.

Utility

Eskom, as part of its demand side management (DSM) programme, has indicated that it will subsi-dise suitable CFL projects by 50%. The money will only be made available subject to a project feasi-bility study done by one of ESKOMs approved energy services companies (ESCOs) and its subse-

quent approval from Eskom DSM. These projects can also have CDM benefits if they are largeenough.

Eskom DSM provides a source of funding for cities striving to achieve efficient lighting targets.

Regulation

Given the advantages of efficient lighting over traditional tungsten filament bulbs, the Australiangovernment has proposed placing a ban on the sale of tungsten bulbs. However, such action ap-pears to be legally and procedurally complicated and at this stage other routes, such as voluntaryprogrammes, internal procurement and building management decision, seem to be more appropri-ate.


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CFL lighting disposal

Local authorities are responsible for waste disposal services and need to ensure that safe CFL light-ing disposal programmes are part of their waste disposal campaigns.

5.6 Case studies

Case study: LED Traffic lights

Some new traffic lights are being made out of arrays of lightemitting diodes (LEDs). These are tiny, purely electronic lightsthat are extremely energy efficient and have a very long life.Each LED is about the size of a pencil eraser, so hundreds ofthem are used together in an array. The LEDs are replacingthe old-style incandescent halogen bulbs rated at between 50and 150 watts. LED units have three big advantages:

LEDs are brighter. The LED arrays fill the entire "hole"and have equal brightness across the entire surface,making them brighter overall.

LED bulbs last for years, while halogen bulbs last formonths. Replacing bulbs costs money (trucks and la-bour costs) and it also ties up traffic. Increasing thereplacement interval can save a city a lot of money.

LED bulbs save a lot of energy.

The energy savings of LED lights can be huge.

Assume that a traffic light uses 100-watt bulbs today. The light is on 24 hours a day, so it uses 2.4kilowatt-hours per day. If you assume power costs 40 cents per kilowatt-hour, it means that onetraffic signal costs about R1 a day to operate, or about R365 per year. There are perhaps eight sig-nals per intersection, so that's almost R2920 per year in power per intersection. A big city has thou-sands of intersections, so it can cost millions of Rands to power all the traffic lights. LED bulbsmight consume 15 or 20 watts instead of 100, so the power consumption drops by a factor of five orsix. A city can easily save millions a year by replacing all of the bulbs with LED units. These low-energy bulbs also open the possibility of using solar panels instead of running an electrical line,which saves money in remote areas.

Case study: Ekurhuleni Metropolitan Municipality - efficient

lighting in municipal buildings

The Ekurhuleni Metropolitan Municipality (EMM) presiding over 2.5 million residents, has beeninstitutionalising a sustainable energy approach through conservation practices in its municipalbuildings since 2005. The Germiston Civic Centre and EGSC buildings, serving as EMMs politicalhead office and administration head office respectively, were identified for an energy efficiency ret-rofit in 2005.


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Among the energy efficiency measures implemented in both buildings, was the replacement of con-ventional incandescent lights with compact fluorescent light bulbs (CFLs), the replacement of cool-beam down lighters with light-emitting diodes (LED) lights and the replacement of ninety-six, 8-foot double fluorescentlight fittings with open

channel-5 foot double fluo-rescent lights with elec-tronic ballasts and installa-tion of lighting timers.

In total 2003 CFLs, 90 LEDlights and 2 lighting timers were used for the lightingcomponent of the project.The CFLs were found to behighly efficient with a highreturn on savings after theinitial capital outlay. TheCFLs, designed to screwinto standard sockets, madefor an easy replacement ofincandescent light bulbs.Substantial savings wereamassed from the efficientlighting installations:

Pre retrofit energy use: 387 718 kWh/yearPost retrofit energy use: 109 894 kWh/year

Energy savings: 277 823 kWh/yearPercentage of energy savings from the use of CFLs and LEDs: 75%Percentage of energy savings from the use of fluorescent lights with electronic ballasts: 13 %

The emissions reduction for greenhouse gases represented in CO2 equivalent and other pollutantssuch as NOx and SOx were:

CO2e reduction: 260 tonnes/yearSOx reduction: 2205 Kg/yearNOx reduction: 1 035 Kg/year

This small scale retrofit project with regard to the lighting component alone resulted in 387 718kWh of energy saved in one year, this represents an economic saving in the order of R369 126.00with a payback period of less than year. This significant saving is enhanced by the additional bene-fits in GHG emission reduction: 260 tons of CO2e, 2.2 tons of SOx and 1.1 tons of NOx. Since theinstallation of the new lights, staff reported no equipment problems and had no complaints aboutthe quality of lighting. Everybody seemed satisfied by the project.

Lessons learnedIt was found that in a retrofitting project involving the replacement of old equipment with new andmore efficient technology was a swift way to save both energy and money. The project did not re-quire a long time to implement. However projects involving municipally-owned buildings and mu-

nicipal operations, may take more time due to council procedures and policies that need to be fol-

EGSC Building Germiston Civic Centre

Lights timer set to switch on at05h30 and switch off at 19h00

8 foot double fluorescent lights


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lowed. Further challenges arise in interdepartmental collaboration within government, spanning theplanning stage to the actual project implementation. It was also found that it was important to se-lect appropriately skilled people and companies to perform the work. Since energy efficiency tech-nology and equipment is relatively new in the South African market, difficulty arises in finding ex-perienced tradesman to provide the necessary services. This is envisaged to improve as the demand

from more local governments and institutions for energy efficient equipment increases.

Key replication aspectsThe formulation of the policy on Energy Efficiency in Council Buildings and on Council Premises,the State of Energy Report, the draft Energy Efficiency and Climate Change Strategy of Ekurhuleniand the subsequent retrofit project are part of an easily-replicable strategy that can be applied toother South African cities interested in reducing energy costs and reducing the environmentallyharmful impacts of their municipal operations.

The equipment purchased and implemented in the municipal buildings of Ekurhuleni was proven tobe cost effective and are readily available in South Africa.

It is noted that the achievement of successful and efficient project implementation lies in the alloca-tion of enough time by cities for the project during the planning phase as well as the assemblage ofa motivated interdepartmental task team.

Case study: International experience

Energy efficient lighting, particularly CFLs, is a readily available technology which can be easily in-stalled by consumers throughout the world. At one time, the price difference between CFLs andtungsten filament bulbs was prohibitive but economies of scale from mass production have reduced

the differential. Additionally, some governments have provided subsidies to assist the market inenergy efficient lighting to develop. As a result, the widespread availability of energy efficient light-ing and expanding knowledge of its benefits has led policy-makers, such as those in Australia, topropose a ban on the sale of tungsten filament bulbs.

Whilst the growing switch to energy efficient lighting is a welcome development, the initial highcost of CFLs is clearly a problem for poorer consumers. However, practical solutions exist to over-come this barrier. Many electricity utilities have found it advantageous to provide energy efficientlighting at a reduced price or free to their consumers. The benefits of subsidised energy efficientlighting to electricity utilities were first appreciated in the 1980s in the United States of Americawhere such demand-side management (DSM) measures enabled these companies to avoid expen-sive investment in new power stations. This approach has been translated, for example, into a re-

cent DSM scheme in Karnataha State in India. Faced with an increasing peak capacity deficiencycaused mainly by evening lighting demand, the local utility is enabling domestic consumers to ob-tain 1 million energy efficient lights and allowing them to pay the costs by installments throughtheir electricity bills.


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5.7 Support organisations

Key role-players to support Implementation of Efficient Lighting projects

National Energy Efficiency Agency (NEEANational Energy Efficiency Agency (NEEANational Energy Efficiency Agency (NEEANational Energy Efficiency Agency (NEEA),),),), aaaadivision of CEF (Pty) Ltddivision of CEF (Pty) Ltddivision of CEF (Pty) Ltddivision of CEF (Pty) LtdTechnical and financial assistance, as well as

aggregated bulk procurement opportunities

from accredited suppliers.

NEEA is a division of CEF (Pty) Ltd and willinitially oversee various components of thenational (Eskom) Demand Side Management(DSM) and energy efficient projects in thecountry. These would typically include theretrofitting of public facilities (at a National,

Provincial and Local government) level, gen-eral awareness creation and the formulationand recommendation of policy and regulatorytools required to meet the targets set in gov-ernments National Energy Efficiency Strategyfor South Africa. NEEA will also look at abroader energy mix than electricity alone, in-cluding the application of energy efficiency inliquid fuels for the transport sector, renewableenergy and gas projects.Barry BredenkampTel: 011 280 0411Fax: 011 280 0516Cell: 083 655 6891Email: [email protected]: www.cef.org.za

EskomEskomEskomEskom

Financial assistanceEskom Demand Side Management (DSM)provides financial support to energy efficiencyprojects and is firmly committed to SWH pro-ject development and investment.

Andrew EtzingerGeneral Manager Investment StrategyTel: 011 800 5136Email: [email protected]: www.eskom.co.za

Lighting ComLighting ComLighting ComLighting CompaniespaniespaniespaniesSuppliers of energy efficient lighting technology.

Technical support and advice also offered.

Able to assist cities with the supply of energyefficient lighting technology such as compactfluorescent light bulbs, LEDs (light emittingdiodes) and fluorescent lights with electronicballasts. Able to also provide technical support andadvice to cities with respect to energy efficientlighting technology.

Some of the big lighting companies have do-nated substantial quantities of lights to mu-nicipalities and can be potentially approachedin this regard.A list of lighting companies from which en-ergy efficient light lighting technology can beprocured can be accessed at the followingwebsite: www.sustainable.org.za/cities


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6. Energy efficient building

implementation

6.1 Overview

Efficient building encompasses several areas, fromefficient design and orientation methods rightthrough to the technology used inside a buildingto make space heating or cooling more efficient.

Some efficient building concepts:

Passive solar design

SEA Manual_RE and EE Options

Documents