Energy efficiency savings in Government departments: briefing by Departments of Energy, Public Works and Cooperative Governance and Traditional Affairs & SALGA

NCOP Economic and Business Development

06 August 2012
Chairperson: Mr F Adams (Western Cape, ANC)
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Meeting Summary

The Department of Energy (DoE) informed the Committee that the National Energy Efficiency Strategy (NEES) had been promulgated in 2005 and had projected a reduction of 12% in the national energy demand by 2015, together with a 10%.sectoral target for commercial and public buildings. Some of the energy efficiency implementation gaps identified in the 2008 NEES review were the lack of monitoring systems to track the achievements against the targets in the National Energy Efficiency Strategy. In addition, the National Building Codes and Regulations had yet to be developed, to ensure improvement of energy efficiency for new buildings. There was non-availability of standards for energy management plans and systems. Other gaps included the non-availability of measurement and verification (M&V) standards for the calculation of energy saving and insufficient energy efficiency awareness activities to change behaviour on how energy was being used, as well as how citizens could save energy within their daily activities.

The DoE was currently embarking on developing an Energy Efficiency Target Monitoring System through the Energy Efficiency Monitoring and Implementation Projects which were done jointly with the South African Local Government Association (SALGA).   The Departments of Public Works and Energy had also established an inter-departmental Task Team (IDTT) to accelerate the improvement of energy efficiency in public buildings. As part of energy efficiency interventions in public buildings there was a process to develop a system to introduce energy performance certification in public buildings. A pilot project on energy data collection and the establishment of a national public building energy consumption database was underway, starting with 1 000 buildings in the short term (1-3 years) and 10 000 in the medium term (3-10 years). In addition, Government Communications and Information Systems (GCIS) had been mandated by Cabinet to manage a communication campaign on energy efficiency for a period of three years as part of the Energy Efficiency Awareness in the Public Sector in 2008, and a handover had taken place in March 2011.
The Department of Public Works (DPW) informed the Committee that energy efficiency improvements had been effected in government buildings under the custodianship of the Department by implementing a shared savings model, retrofitting projects and behavioural changes. The Department had formed an Energy Efficiency Task Team (EETT) in February 2008 with the purpose of ensuring a coordinated programme in state-owned buildings. An energy code of conduct had been formulated for all buildings under the custodianship of National Department of Public Works (NDPW) for implementation by national government departments, using state-owned and leased buildings for occupants to contribute to the conservation of energy.
Some of the challenges faced by the Department included the need for a dedicated professional services unit, with qualified electrical engineers aligned to the size of portfolio.  Another challenge was intensifying monitoring and evaluation. A partnership with the Department of Energy needed to be institutionalised. There was also need for engagement with Eskom Demand Management to derive more benefit for ten state buildings identified for a pilot project.

The National Department of Public Works (NDPW) had appointed the Independent Development Trust (IDT) to implement the Energy Efficiency Programme (EEP). The programme was aimed at reducing the electricity consumption at selected NDPW facilities through a targeted energy-efficiency intervention. The NDPW had identified 120 facilities --Eastern Cape (60), Mpumalanga (30), and Northern Cape (30) -- for this particular intervention, which focused primarily on lighting and remote metering at various state owned facilities. The total value of projects in the three provinces was R127 million for the financial year 2010/2011 and financial year 2011/2012 combined.  The IDT had also been appointed by the NDPW as an implementing agent for the Green Building Programme on selected state-owned buildings in the Kwa-Zulu Natal province for the COP17 international conference.  .

Some of the challenges that had been encountered included no existing As-Built plans, and access to facilities, as user clients such as the South African National Defence Force and Department of Correctional Services had stringent security and limited the number of personnel working in their buildings. Procuring materials within short timelines had also proved to be a challenge.
SALGA said that the types of municipal energy efficiency programmes being implemented, included urban planning and building control, street lighting, energy efficiency in municipal buildings and in waste water treatment facilities, and transportation. Municipalities which had made good progress regarding establishing institutional arrangements included Sol Plaatje, Ethekwini, Ekhuruleni and City of Cape Town. The short- term impact on municipal revenue was little, but in the long term there would be significant impact. The National Treasury funding framework needed to cater for this by providing incentives for energy-efficient municipalities.
The Committee stated that the solar heater system should be made accessible to all people. The Committee also asked SALGA what had happened to the programme on solar street lighting and commented that the houses being built by government did not support energy efficiency. The Committee also asked what was being done to use waste management for the provision of energy.

Meeting report

Briefing by the Department of Energy
Mr Xolile Mabusela, Director: Energy Efficiency & Environment; Department of Energy (DoE) informed the Committee that the National Energy Efficiency Strategy (NEES) had been promulgated in 2005 and projected a reduction in the National energy demand of 12% by 2015, together with a 10% sectoral target for commercial and public buildings.  Parallel to the development of NEES in 2005, an energy efficiency (EE) monitoring methodology handbook had also been developed. This EE Monitoring Methodology Handbook provided a detailed input of data-streams required.  However, its review was necessary to ensure that the South African energy efficiency monitoring system took full advantage of current developments and international best practices.

Some of the energy efficiency implementation gaps identified in the 2008 NEES review had been the lack of energy efficiency monitoring systems to track the achievements of the targets in the National Energy Efficiency Strategy. In addition, the National Building Codes and Regulations had yet to be developed to ensure improvement of energy efficiency for new buildings. There was also non-availability of standards for energy management plans and /or systems.  Other gaps included the non-availability of a measurement and merification (M&V) standard for calculation of energy savings and insufficient energy efficiency awareness activities to change behaviour on how energy was being used, as well as how citizens could save energy through their daily activities.

The second review process (2011 NEES Review Process) had started in 2011 as part of the Industrial Energy Efficiency Improvement Project and had been implemented in collaboration with the Department of Trade and Industry, business, and other international partners. The next review and NEES implementation process took into consideration the power interruptions and load-shedding experiences in 2008 and the beginning of 2009; the world financial crisis/economic downturn and its impact on South Africa; climate change impacts; and response measures and energy policy development. The 2011 NEES review process had just been completed, and would be published for public comment, pending Cabinet approval.

The DoE was currently embarking on developing an EE Target Monitoring System through the Energy Efficiency Monitoring and Implementation Projects, which was done jointly with the South African Local Government Association (SALGA). The project was supported through collaboration between DoE and the Swiss Agency for Development and Cooperation (SDC). The purpose was to introduce and institutionalise an Energy Efficiency Target Monitoring System for measuring and reporting of the achievement of the sectoral targets set out in the National Energy Efficiency Strategy.  In addition, the Minister of Public Works had launched the National Green Building Framework in December 2011, which also had elements of energy efficiency in buildings. The national building regulations were also being amended to include mandatory energy efficiency standards for new buildings to support the improvement of energy-efficient buildings.

The Departments of Public Works and Energy had established an inter-departmental Task Team (IDTT) to accelerate the improvement of energy efficiency in public buildings. The IDTT had been tasked with developing an action plan for the implementation of energy efficiency measures in public buildings, and also revising the Memorandum of Understanding (MOU) signed between the two departments in 2010. As part of energy efficiency Interventions in public buildings there had been a process to develop a system to introduce energy performance certification in public buildings. A pilot project on energy data collection and the establishment of a national public building energy consumption database was under way, starting with 1 000 buildings in the short term (1-3 years) and 10 000 in the medium term (3-10 years).

In terms of the policy framework for the introduction of energy performance certification in public buildings, the DoE -- in partnership with the Danish Embassy -- was introducing smart metering in public buildings, targeting about 200 of the 1 000 buildings earmarked for data collection as a start.  Also, as part of the Energy Efficiency Awareness in the Public Sector in 2008, Government Communications and Information Systems (GCIS) had been mandated by the Cabinet to manage a communication campaign on energy efficiency for a period of three years. A handover had been done in March 2011.

The DoE, in partnership with the Swiss Agency for Development and Cooperation (SDC) -- as part of the Energy Efficiency Target Monitoring System development and with technical support from the international Energy Agency (IEA) -- was in the process of analysing the current energy efficiency policies for buildings. The project would also estimate the energy savings potential using current and future measures in the public building sector. A capacity building and training programme for energy audits, energy managers, and facility managers would also be executed.
Mr Mabusela recommended that the Portfolio Committee should note progress on energy efficiency in public buildings and that in implementing these activities, there were limited financial and human resources to deliver the required energy savings. The Committee also needed to note partnerships with international organisations on the implementation of the programme.

Discussion

Mr D Gamede (KwaZulu-Natal, ANC) pointed out that the Department had previously indicated that there was a problem of awareness and monitoring. What was the current position?
Mr Mabusela replied that the Department had conducted a review that had been forwarded to Cabinet. The most critical element for quantifying energy savings that had been missing since 2008, was the monitoring measurement and verification process.  An energy management system standard had been developed, as well as protocols for measurement and verification. The Department had also developed energy efficiency target monitoring, which would provide a standard for energy management and would help quantify savings.
Mr Gamede asked for the presenters’ views on energy efficiency being included as part of key performance appraisals.
Mr Mabusela replied that the Department had already set itself a target in the current financial year of five terawatt hours. The target for last year was one terawatt hour, which had been achieved.
Ms Thembi Mwendamutiswu, Chief Executive Officer; Independent Development Trust (IDT) also agreed with the Member.  The IDT was a development organisation whose performance was measured on the basis of impact. This was therefore already being applied.

Ms B Abrahams (Gauteng DA) stated that the solar heater system should be made accessible to all people.

Mr Mabusela replied that the Department would issue a media release to inform people on how they could assess the rebate. One of the critical elements for the Department, Eskom and the Department of Public Works was to come up with a solar heater monitoring system, so that a database was developed on where installations were being made and also provide information to the public on who would do the installing.

Ms M Dikgale (Limpopo, ANC) asked what criteria would be used when employing people for the build energy auditing programme.

Mr Mabusela replied that this programme was temporarily based at Eskom. The Department gave an assurance that people with disabilities, women and youth were considered.

Briefing by the Department of Public Works
Ms Sasa Subban, Deputy Director General: Asset Investment Management, Department of Public Works (DPW) informed the Committee that energy efficiency improvements were effected in government buildings under the custodianship of the Department by implementing a shared savings model, retrofitting projects and behavioural changes. The Department had formed an Energy Efficiency Task Team (EETT) on 14 February 2008 with the purpose of ensuring a coordinated programme in state-owned buildings. An energy code of conduct had been formulated for all buildings under the custodianship of the National Department of Public Works (NDPW) for implementation by national government departments, using state-owned and leased buildings for occupants to contribute to the conservation of energy.

Progress was that from 1997, the NDPW had implemented shared energy contracts in four regions with a shared ratio of 50:50 for Pretoria, and 60:40 for Cape Town, Johannesburg and Bloemfontein. The energy audit and retrofit for Pretoria had started in 2003 to 2010 on approximately 104 sites and had provided savings of 1 147 608 kilowatt hour (kw/h) and R311 973 659 over this period. Johannesburg Regional Office had started audits from 2000 to 2010 on 24 sites comprising of 600 buildings, with subsequent energy savings of R64 629 107 and 108 641 210 kw/h.  Bloemfontein Regional Office had initiated energy audits from 2003 to 2010 on 15 sites comprising of 375 buildings, with subsequent energy savings of R26 372 777 and 55 973 806 kw/h.  Cape Town Regional Office had initiated energy audits from 1997 to 2009 on 39 sites with subsequent total energy savings of R45 582418 and 269 502 386 kw/h. The contract had expired in February 2009. 

National Treasury had in 2008/9 allocated R20 million for retrofitting measures implemented by the Pretoria regional office, which covered 22 sites comprising of 1981 buildings. The project had been completed in March 2009, on budget, with an annual saving of R4,9 million. The project was lighting retrofits of 53 026 luminaries (T5) in 1 981 buildings in the Pretoria area which saved 3 177,66 kw/h and 13,88 Gigawatt hours of electricity. An allocation of R35 million for 2009/10 retrofitted 17 sites, comprising 1 260 buildings, including the Union Building, with total power saving of 3 473,30 Kw/h, an annual saving of 36,41 Gigawatt hours and saving of R8 202 161,.64.
Behavioural change programmes had been implemented, which included the SAVE IT Energy Efficiency Campaign by GCIS, in collaboration with the DPW, from 19 January 2011 to 17 March 2011. The campaign had targeted to save 10% in energy consumption on all public buildings.  All DPW regional offices and user Departments were educated accordingly through a series of workshops.

Some of the challenges faced by the Department included the need for a dedicated professional services unit with qualified electrical engineers aligned to the size of the portfolio. Another challenge was intensifying monitoring and evaluation. A partnership with the Department of Energy needed to be institutionalised. Lastly, there was a need for engagement with Eskom Demand Management to derive more benefit for ten state buildings identified for a pilot project.

Discussion
Mr K Sinclair (Northern Cape, COPE) asked what the Department was doing about energy efficiency in Parliament and the villages of parliamentarians.

Ms Subban replied that the Department had retrofitted the Union Buildings and the President’s residence in Cape Town. Parliament was on the programme and would be retrofitted soon.

Mr Sinclair stated that the houses being built by government did not support energy efficiency. The buildings were facing the wrong direction and the building materials did not support heat saving.

Ms Subban replied that the Department built houses in complexes for government officials. The old houses did not conform, but the new houses would.

Mr Sinclair asked what was being done to use waste management to provide energy.
Ms Subban replied that the social sector in the EPWP within the Department looked at recycling, and cooperatives were also used in this regard. More detail on this particular component could be provided.

Briefing by Independent Development Trust
Ms Vedanth Jugath, Programme Manager; Independent Development Trust (IDT), told the Committee that the NDPW had appointed the IDT to implement the Energy Efficiency Programme (EEP). The programme was aimed at reducing the electricity consumption at selected NDPW facilities through a targeted energy efficiency intervention. The NDPW had identified 120 facilities -- Eastern Cape (60), Mpumalanga (30), and Northern Cape (30) -- for this particular programme.  The IDT had also been appointed by the NDPW as an implementing agent for the Green Building Programme on selected state-owned buildings in the Kwa-Zulu Natal province for the COP17 international conference. The Luthuli Museum building had been selected to be showcased during the proceedings.

The scope of the work at the Luthuli Museum had included various interventions ranging from water conservation, electrical and mechanical energy savings, to other greening initiatives. The energy efficiency intervention at the 120 facilities situated in the three provinces focused primarily on lighting and remote metering at various state-owned facilities. The total value of projects in the three provinces was R127 million for the financial years 2010/2011 and 2011/2012 combined.

The annual energy saving per province was R 1 043 615 for the Eastern Cape, R 688 592 for Mpumalanga and R 1 612 523 for the Northern Cape. The total personnel employed as a result of the project in the three provinces was 658.  Some of the challenges that had been encountered included no existing As-Built plans, and access to facilities, as user clients such as the South African National Defence Force and Department of Correctional Services had stringent security and limited the number of personnel working in their buildings. Procuring materials within short timelines had also proved to be a challenge. The IDT, together with other relevant stakeholders, had found solutions to these challenges.

Ms Jugath concluded the presentation by stating that the energy efficiency initiatives had been implemented successfully due to the remarkable commitment of all stakeholders. This had complemented the development and implementation of the most efficient and cost effective energy savings methodologies.

Discussion
Ms E van Lingen (Eastern Cape, DA) asked when the IDT would implement projects in other provinces, as projects were focused only in three provinces.

Thembi Mwendamutiswu, Chief Executive Officer; IDT, replied that the IDT’s programmes were in all the provinces.

Mr A Nyambi (Mpumalanga, ANC) asked what some of the IDT’s challenges were.
 
Ms Mwendamutiswu replied that the challenges had been highlighted in the presentation. The success of the IDT’s work was due to the cooperation of the Department of Public Works and the Department of Energy.  Most of the Trust’s problems had been resolved, together with these departments.

Briefing by the South African Local Government Association (SALGA)
Ms Linda Manayuchi, Technical Specialist: Energy Efficiency; South African Local Government Association (SALGA) said that the types of municipal energy efficiency programmes being implemented included urban planning and building control, street lighting, energy efficiency in municipal buildings and in waste water treatment facilities, and transportation.
Municipalities which had made good progress in establishing institutional arrangements included Sol Plaatje, Ethekwini, Ekhuruleni and the City of Cape Town. The short-term impact on municipal revenue had been little, but in the long term there would be significant impact. The National Treasury funding framework needed to cater for this, such as providing incentives for energy efficient municipalities.

The support to municipalities in respect of energy efficiency was from municipal funds, conditional grants from National Treasury, Eskom IDM, the Loans-Development Bank of South Africa, donor funds (DANIDA, British High Commission Pretoria, REEP, SDC and GIZ) and Public Private Partnership (PPP). An agreement between SALGA and the Swiss Agency for Development and Cooperation (SDC), 2010-2013, for an Energy Efficiency Monitoring and Implementation Programme, had been undertaken.
SALGA concluded the presentation by stating that the ability to meet electricity demand was going to remain a challenge – if only the base case assumptions materialised, the shortfall in supply would continue until 2015.

Discussion
Mr Gamede asked what had happened to the programme on solar street lighting.

Ms Manayuchi replied that there was no regulation to use solar street lighting. Currently the municipalities procured what was cheapest. The municipalities were becoming more aware of energy efficiency and were therefore taking this into account when procuring.

Ms van Lingen asked if there was a programme to cut thefts of electric installations and help savings.
Ms Manayuchi replied that the programme to cut thefts of electric installations was a programme that SALGA was also involved in with Eskom.   It was called operation Khanyisa. This was different from the energy efficiency programme that SALGA was implementing.
Mr Gamede asked how municipalities were paying back the loans obtained from Development Bank of South Africa.
Ms Manayuchi replied that large municipalities took out loans to fund some of their projects, and where these specifically involved energy efficiency, the loans would be paid back from savings from electricity.

The meeting was adjourned.

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