Lessons for starting an Energy Efficiency Accord 21 October 2009

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					Lessons for starting an Energy
Efficiency Accord

            21 October 2009




 Valerie Geen
 National Business Initiative
 Director Climate and Energy
Content
•   Introduction and background
•   The Accord
•   Implementation of the Accord
•   Achievements
•   Recommendations for Action
Introduction and Background
• The EE Accord was initiated in 2005 to support the
  Energy Efficiency Strategy
• Initial signatories included 30 companies, 8 of these
  being industry associations
• Initial signatories included most of the largest energy
  users including mining and industry
• Implementation of the Accord has been driven by a
  technical committee including Energy managers and
  other significant role players and chaired by business
  and industry with NBI as secretariat
Overall objectives of the EE Strategy
•   To improve the health of the nation
•   To facilitate job creation
•   To alleviate energy poverty
•   To reduce environmental pollution
•   To reduce CO2 emissions
•   To improve industrial competitiveness
•   To enhance energy security
•   To reduce the necessity for additional power generation
    capacity
•   To achieve these objectives an overall national target of a 12%
    reduction in final energy demand was set for 2015
The Voluntary Energy Efficiency Accord
                     • Agree on baseline
                     • Develop sector specific strategies and
                       targets
                     • Promotion of DSM projects
                     • Develop Reporting requirements
                     • Projections of future energy consumption
                     • Establish methodologies
                     • Develop generic auditing protocol
                       Contribute to training material for skills dev
                     • Government to develop strategies and fiscal
                       incentives
                     • Government to promote CDM
                     • Government to engage signatories in
                       strategy, regulations, standards and inputs to
                       DEAT LTMS processes
                     • Promote networking and sharing of best
                       practice
Voluntary Energy Efficiency
Accord Signatories
Energy Efficiency Accord signed with Minister Sonjica
Summary of progress against objectives
Objectives                               Progress
Agreement on Baseline                    Varied baselines due to data
                                         availability
Sector Specific Strategies and targets   Still to be achieved

Promotion of DSM                         DSM investments to the value
                                         of R565 million against
                                         numerous challenges
                                         Business investment in EE of
                                         R9 billion
Reporting Requirements                   Energy Management
                                         Performance Matrix (common
                                         reporting requirements still to
                                         be agreed )
Projections of future                    Varied projections and
Energy Consumption                       overtaken by PCP and current
                                         economic downturn
   Summary of Progress Continued…..
Objectives                           Progress
Establish Methodologies              Measurement and verification protocol
                                     Proposed in accordance with IVMVP
Auditing Protocol                    Underway through NCPC
Skills Development                   Energy Efficiency Hub
Fiscal Incentives                    Treasury has started processes in this
                                     regard
Government promotion of CDM          DNA has made serious efforts but
                                     uptake has been slow. SAPPI is a
                                     good case study from the Accord
Government to engage Business on     This has been done via the EE
strategy, standards, and inputs to   technical committee and meetings
LTMS                                 between the Minister, leading CEOs
                                     and BUSA and technical committee on
                                     standards
Promotion of networking and best     Valuable networks established and
practice                             good sharing of best practice
Achievements of the Accord after 3 years
•   Platform for collective engagement between business and
    government and other key stakeholders
•   Increased to 50 signatories including more commercial
    signatories
•   Sharing of best practice, peer support and stimulation of company
    level policy and action
•   Energy savings
•   Engagement with policy, e.g. revision of Energy Efficiency
    Strategy, recommendations on Power Conservation Programme ,
    input into LTMS, input into Energy Efficiency incentives from
    DTI,NERT Work Streams
•   Value Add to Carbon Disclosure
Encouraging Energy Mgt Performance:
Majority with More Than Half Total Score
Skills & Knowledge Remain Significant
Problem in Energy Management
Impressive Improvements in Elec Energy
Intensity based on Value-Added
Defining Energy Efficiency
POET
•   Performance
•   Operational
•   Equipment
•   Technical
Diesel Energy Intensity Poorly Reported
& Improvement Not Impressive
Petrol Energy Intensity Poorly Reported
But Gains Made by Those Reported
Coal Energy Intensity Shows Some
Improvements
Examples of Electricity Savings of 15 EE
Accord Signatories (MWh)
    Company      Electricity Saved (MWh)
    A                    5,344
    B                    64,774
    C                    68,700
    D                   11,608
    F                   28,000
    H                    6,581
    L                   20,150
    N                   140,000
    O                   290,000
    Q                    17,500
    R                   881,174
    S                   695,700
    V                   19,800
    W                    1,610
    Y                   154,700
    Total              2,405,641
     
Significance of Electricity Consumption
(GWh) of 18 EE Accord Signatories


Industry                           27,035
Mining                             14,795
Commercial                            473
Accord (18 Signatories)            47,240
National Consumption              224,000
Where to start
• Admit that you have a problem
   – Energy Security
   – Electricity Pricing
   – Climate Change
   – Assessment of Risk : Business, Reputational,
     Regulatory
• Determine the scope of the problem
• Form an Association e.g. Energy Forum, Provincial
  Accord, Technical or working group
What to do?
•   Solicit buy-in from Executive leadership
•   Energy Audit and baseline
•   Allocate responsibility( In house team including energy or facilities
    manager, sustainability manager, IT manager, procurement
    manager, financial manager, communications manager)
•    Formulate policy/strategy
•   Skills development
•   Raise awareness and communicate
•   Set Targets
•   Identify projects to attain targets
•   Investment
•   Measurement and verification
•   Reporting
The property sector
•   Owner vs tenant responsibility
•   Metering
•   Control over consumption
•   Retrofitting
•   What’s good for business ?
     – Infrastructure requirements for different businesses
     – More discerning customer
     – Opportunity for new design
     – Reducing cost to stay in business
     – Managing business in the dark
     – Leverage : hospitality industry, tenant, consumer
Recognising Top performers: 2009 ETA
Awards

                  Xstrata-Merafe:
                     Mining


                    Afrisam:
                   Industrial



                   Woolworths:
                   Commercial
      Thank You

     Valerie Geen
geen.valerie@nbi.org.za

				
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