Question NW4053 to the Minister of Public Enterprises
14 December 2023 - NW4053
Graham, Ms SJ to ask the Minister of Public Enterprises
With regard to the Distribution Demand Management Programme (DDMP), (a) how many proposals have been received for (i) Load Management Programme, (ii) Residential Load Management Programme, (iii) Energy Efficiency Programme and (b) what are the relevant details of each proposal in relation to the specified programme; (2) What is the (a) status of each proposal and (b) estimated demand reduction of each project; (3) What are the potential barriers to entry into these programmes that might have affected the intake for each programme; (4) What marketing measures Eskom intends undertaking to improve the intake of the programmes?
Reply:
1. Twenty-three project proposals have been received to date.
- Load Management (LM): 16 proposals received.
- Residential Load Management (RLM): zero proposals received.
- Energy Efficiency (EE): seven proposals received. (See tables in (2) for details).
Of the 23 projects received, 16 projects (11 LM and five EE) have met the programme criteria to proceed to the governance approval stages. (See the tables in (2) for details).
(2)
|
Eskom Distribution Demand Management Programme – Load Management Projects |
||||||
|
Project number |
Project name |
Project type |
Demand reduction (MW) |
Project costs |
Status |
Project description |
|
2023001 |
Cooke 4 Water Pumping System |
Load Management |
10.000 |
R30 000 000 |
Procurement phase |
Optimisation of underground mining water pumping network to enable electrical load shift in the evening peak hours |
|
2023003 |
Driefontein 4 and 5 Fridge Plant |
Load Management |
5.000 |
R15 000 000 |
Procurement phase |
Optimisation of underground mining refrigeration system to enable electrical load shift in the evening peak hours |
|
2023008 |
LM Karee 4 – Water Pumping System |
Load Management |
1.000 |
R3 000 000 |
Investment phase submission for 8 December 2023 |
Optimisation of underground mining water pumping network to enable electrical load shift in the evening peak hours |
|
2023009 |
LM Karee 4 – Compressed Air (CA) |
Load Management |
1.300 |
R3 900 000 |
Investment phase submission for 8 December 2023 |
Optimisation of underground mining compressed air network to enable peak clipping of electrical load in the evening peak hours |
|
2023010 |
LM Samancor WCM Mooinooi CA |
Load Management |
1.000 |
R3 000 000 |
Investment phase submission for 8 December 2023 |
Optimisation of underground mining compressed air network to enable peak clipping of electrical load in the evening peak hours |
|
2023011 |
LM Samancor MFC Mills Load Shifting |
Load Management |
1.440 |
R4 320 000 |
Investment phase submission for 8 December 2023 |
Optimisation of smelter-milling plant to enable electrical load shift in the evening peak hours |
|
2023012 |
LM Samancor TAS Mills |
Load Management |
1.058 |
R3 174 000 |
Investment phase submission for 8 December 2023 |
Optimisation of smelter-milling plant to enable electrical load shift in the evening peak hours |
|
2023014 |
LM Samancor ECM Doornbosch PC |
Load Management |
0.700 |
R2 100 000 |
Investment phase submission for 8 December 2023 |
Optimisation of air pressure control for the underground mine to enable peak clipping of electrical load in the evening peak hours |
|
2023015 |
LM Samancor ECM Tweefontein PC |
Load Management |
1.000 |
R3 000 000 |
Investment phase submission for 8 December 2023 |
Optimisation of air pressure control for the underground mine to enable peak clipping of electrical load in the evening peak hours |
|
2023016 |
LM Great Noligwa KOSH Pumping |
Load Management |
1.600 |
R4 800 000 |
Investment phase submission for 8 December 2023 |
Optimisation of underground mining water pumping network to enable electrical load shift in the evening peak hours |
|
2023017 |
LM Moab Khotsong Compressors |
Load Management |
0.800 |
R2 400 000 |
Investment phase submission for 8 December 2023 |
Optimisation of underground compressor network to enable peak clipping of electrical load in the evening peak hours |
|
|
|
|
24.90 |
R74 694 000 |
|
|
|
Eskom Distribution Demand Management Programme – Energy Efficiency Projects |
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|
Project number |
Project name |
Project type |
Demand reduction (MW) |
Project costs |
Status |
Project description |
|
2023004 |
Driefontein 5 Service Water Optimisation |
Energy Efficiency |
1.000 |
R3 000 000 |
Procurement phase |
Optimisation of underground mining water pumping network to enable electrical energy savings between 06:00 and 20:00 |
|
2023005 |
Driefontein 5 Energy Recovery |
Energy Efficiency |
1.800 |
R5 400 000 |
Procurement phase |
Commissioning of an underground turbine to break the water pressure feeding down the mine shaft to generate electricity, reducing the amount of electricity needed from Eskom |
|
2023007 |
EE Limpopo Schools Lighting Project |
Energy Efficiency |
0.443 |
R1 329 000 |
Investment phase submission for 8 December 2023 |
Replacing old fluorescent lights with energy-efficient light-emitting diode (LED) lighting at 34 Limpopo public schools |
|
2023018 |
EE Kusasalethu Turbines |
Energy Efficiency |
3.200 |
R9 600 000 |
Investment phase submission for 8 December 2023 |
Commissioning of an underground turbine to break the water pressure feeding down the mine shaft to generate electricity, reducing the amount of electricity needed from Eskom |
|
2023019 |
EE Shoprite T5 LED Retrofit |
Energy Efficiency |
0.640 |
R1 920 000 |
Investment phase submission for 8 December 2023 |
Replacing old fluorescent lighting with energy-efficient LED lighting at 31 Shoprite Checkers supermarkets |
|
|
|
|
7.083 |
R21 249 000 |
|
|
(3)
|
No. |
Possible barriers to uptake |
Mitigation |
|
1 |
The DDMP performance contracting programme participating criteria limit mid-segment consumers to participate, as the minimum criteria requirement targets larger projects. |
Review programme participation requirements to attract medium to small customers to participate. Revise the engagement plan to address the missing middle segment. |
|
2 |
Developers have challenges in securing upfront project funding from commercial funding institutions. The incentive is paid after project implementation and during the sustainability period. |
Project developers have been encouraged to engage the public (Development Bank of South Africa (DBSA), Industrial Development Corporation (IDC), etc.) and private financial institutions for support in financing Energy Efficiency and Demand-Side Management (EEDSM) projects. |
|
3 |
Project developers, customers, and funders require certainty in the markets when it comes to Demand-Side Management (DSM) incentives. How long will they be available so that they can plan on capital? |
This is important to developers and customers, as it will assist them in the decision to invest. Eskom Integrated Demand Management (IDM) intends to run the DDMP after the Multi-Year Price Determination (MYPD) 6 (the 2029 financial year) and to motivate the inclusion of DSM in the Integrated Resource Plan (IRP), which will assist in enhancing certainty. |
|
4 |
The skills shortage is a critical factor. Most customers do not have the necessary skills and resources to undertake DSM measures. This also has an impact on the assessment of benefits when it comes to DSM initiatives. |
Eskom IDM and the National Cleaner Production Centre (NCPC) have collaborated to assist customers who have the potential to participate. The NCPC has the resources to offer customer training on DSM and to conduct energy assessment audits. |
|
5 |
DDMP's current engagements are held at executive customer level, and the information is not adequately passed on to on-site engineers to develop projects. |
Engage engineers/energy managers at site level within the cluster. |
(4) The following interventions are ongoing to improve the visibility of the DDMPs:
- Ongoing presentations to industry associations, such as the South African Property Owners Association (SAPOA) and the Energy Services Company (ESCO) Association.
- Eskom has also presented the DDMP at the National Energy Crisis Committee (NECOM) DSM Indabas (national, Western Cape (WC), and KwaZulu-Natal (KZN). Furthermore, Eskom participates in NECOM Work Stream 5 - DSM as a task team member.
- In addition, Eskom has held EEDSM symposiums and continues to engage with customers and stakeholders to promote and provide clarification on the DDMP performance contracting programmes.
- Eskom IDM management recently held meetings with large municipalities/metros (KZN and the WC) and is planning to engage other distributors.
- Eskom IDM management has decided to conduct roadshows in all provinces that address the missing middle (small- to medium-sized customers) to improve participation.
Remarks: Approved / Not Approved
Ms Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
Date: Date: