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Sponsored by the Department
of Science & Technology
VOLUME 18 NUMBER 2 www.erc.uct.ac.za JUNE 2012
Renewable Energy IN THIS ISSUE
Centre of Research and Renewable Energy Centre of
Research and Development
Development (RECORD) . . . . . . . . . . . . . . . . . 1
(RECORD) German–South African Year
of Science launched in
Cape Town . . . . . . . . . . . . . . . . . 2
S
outh Africa is demonstrating its • a world-class wave energy
Reduce the glare and enjoy
commitment to a more sustain- resource, predominantly along the the view. . . . . . . . . . . . . . . . . . . . 4
able future growth path by sup- south and west coasts
porting renewable energy and energy • one of the best solar regimes in Mozambique Channel Completion
efficiency measures, together with the world - most abundant renew- of 2-D seismic data acquisition
skills development and job creation able resource in the country in Juan de Nova and Belo
through fostering a green economy. It • biomass is restricted due to limit- Profond assets . . . . . . . . . . . . . . 5
is among the highest emitters of car- ed water, but energy from waste is
bon dioxide in the world, currently more readily available and Reconsidering the economics
ranked 12th in terms of top emitters exploitable. of photovoltaic power . . . . . . . . . 5
per capita, since more than 75% of
primary our energy requirement is RECORD WITHIN SANEDI Energy performance and the
South African economy. . . . . . . . 6
derived from fossil fuels. The South African National Energy
There is an urgent need to reduce Development Institute (SANEDI) was Wind bidding: 2nd round – 79
fossil fuel dependency, diversify ener- established by the National Energy tenders presenting 3 233 MW . . 7
gy mix and supply, thereby reducing Act, 2008 (No 34) as a successor to
South Africa’s carbon footprint. the previous South African National Electricity in crisis . . . . . . . . . . . . 7
Prospects for renewable energy gen- Energy Research Institute (Pty) Ltd
eration in South Africa are increasing- (SANERI) and the National Energy Bharti Airtel makes progress
ly positive given a supportive policy Efficiency Agency (NEEA) (a division towards building a ‘Green
and legislative framework coupled of CEF (Pty) Ltd). SANEDI is a Network’ in Africa . . . . . . . . . . . . 8
with excellent resources, especially Schedule 3A Public Entity as of 31
Disregard the Stern warning . . . . 8
wind and solar. December 2010, operationalised on 1
The contribution of a green econ- April 2011. Eastern Cape Couga Industrial
omy to economic growth and job cre- Its mandate is to serve as a cata- Development Zone: A solid
ation is furthermore promising and lyst for sustainable energy innovation, business case and huge market
South Africa is preparing to play a transformation and technology diffu- for wind and solar components. 10
leading role in renewable energy sion in support of South Africa’s sus-
deployment. It has abundant natural tainable development. RECORD sup- PV growth in South Africa
resources that can be harnessed for ports the mandate of SANEDI within hinges on the success of
energy production: the Clean Energy Solutions portfolio, phase I projects . . . . . . . . . . . . 10
• a reasonable wind energy re- and is responsible for energy technol-
source, geographically dispersed ogy development at the levels shown Six countries bid to host the
allowing for security of supply in the diagram below. Green Climate Fund . . . . . . . . . 11
Energy events 2012 . . . . . . . . . 11
Continued on next page2 Energy Management News
Continued from previous page • Lifetime researcher;
• Up-and-coming, young researcher;
RECORD MISSION • Most promising research leading to
To be recognised as the foremost insti- commercial application;
tution for coordination and collabora- • Most promising ‘blue sky’ research
tion in South Africa. project.
Nominations have to be received by
RECORD VISION 30 September and winners will be
To facilitate renewable energy dissemi- announced in November at a prize giv-
nation of national and international ing function. The winner of each cate-
renewable energy knowledge con- gory will receive R10 000.
tributing towards a sustainable low car- Contact Dr Karen Surridge-Talbot
bon energy future. (details below) for more information
and to obtain nomination forms or
T
RECORD CORE ACTIVITIES download forms from the SANEDI web- he German–South African Year
1. Co-ordinate renewable energy site, www.sanedi.org.za (follow the of Science was officially opened
2. Facilitate renewable energy ‘Clean Energy Solutions’ link). on Monday 17 April 2012 by the
3. Contribute to renewable energy South African Science and Technology
4. Support renewable energy UPCOMING NOTEWORTHY EVENTS Minister, Naledi Pandor and her Ger-
5. Renewable energy awareness cre- Make sure you are in our contacts data- man equivalent, Research Minister,
ation base to be kept informed of all the Annette Schavan. The Year of Science
6. Participation: standards, develop- exciting is aimed at strengthening cooperation
ment and technology evaluation. RECORD events: between South African and German
1. End of July networking workshop to research institutes, universities, scien-
RECORD PARTNERSHIP integrate stakeholders and their tists and ministries, building on a long
Against the background of renewable focus areas across the renewable tradition of cooperation between the
energy development in South Africa, energy field countries, dating back to 1996, , when
the Governments of South Africa and 2. End of September training courses the signing of a cooperation agreement
the Federal Republic of Germany on wind and solar energy in Ger- led to the establishment of a joint
agreed in 2010 to implement an energy many research fund to support development
and climate programme via the 3. End October International RE work- projects in several sectors.
Deutsche Gesellschaft für Interna- shop in Berlin, Germany The Year of Science is a joint initia-
tionale Zusammenarbeit (GIZ). The 4. Mid November renewable energy tive by the German Federal Ministry of
South African-German Energy (SAGEN) researcher competition winners
programme aims to promote invest- announced
ment in renewable energy and energy 5. Mid November official RECORD
efficiency and thus supports the devel- launch.
opment of a sustainable energy sector
● Contact: Dr Karen Surridge-Talbot
in South Africa. RECORD Centre Manager
Under the auspices of SAGEN, GIZ Tel: +27 (0) 10 201 4717
is cooperating with SANEDI and E-mail: karenst@sanedi.org.za
RECORD to achieve mutually agreed Website: www.sanedi.org.za
goals.
Ms Marlett Balmer
RECORD RENEWABLE ENERGY Senior Advisor SAGEN
RESEARCH EXCELLENCE AWARD Tel: +27 (0) 12 423 5981
RECORD is pleased to announce the E-mail: marlett.balmer@giz.de
launch of the RECORD Renewable
Energy Research Excellence Award.
This exciting award recognises the
contribution of established as well as
upcoming researchers and novel
renewable energy research in South
Africa.
The award includes four categories
of merit:
German Research Minister, Annette
Schavan, and South African Minister
for Science and Technology, Naledi
Pandor, opening the Year of Science
in Cape Town
Photograph by Bettina Benzinger, GIZEnergy Management News 3
German—South African
Year of Science
launched in Cape Town
Education and Research (BMBF) and intended to support management of development for a green economy in
the South African Department of Sci- water resources, is one such example.’ South Africa.
ence and Technology (DST). The official launch programme was The official launch of the German –
The dedicated year will focus on the complemented by an exhibition of prod- South-African Year of Science rang in
areas of climate change, human capital ucts resulting from scientific coopera- an exciting phase for scientific cooper-
development, bio-economy, social sci- tion between the two countries. GIZ ation and will strengthen the bilateral
ences and humanities, urbanisation, presented five projects currently being cooperation between the two countries.
astronomy and health innovation. The implemented on behalf of the German
● Contact: Dr Karen Surridge-Talbot
launch event was also used to Government in the area of climate and RECORD Centre Manager
announce successful projects selected energy. Cooperation partners such as Tel: +27 (0) 10 201 4717
out of 200 project proposals received the University of Johannesburg, Cape E-mail: karenst@sanedi.org.za
after a call for proposals was released Peninsula University of Technology Website: www.sanedi.org.za
in 2011. Of the 200, 41 initiatives have (CPUT) and the Renewable Energy
been jointly agreed on and will receive Centre of Research and Development ● Ms Marlett Balmer
funding. These include collaboration (RECORD) in SANEDI participated in Senior Advisor SAGEN
between Bauhaus-Universität Weimar the exhibition. SANEDI’s mandate is to Tel: +27 (0) 12 423 5981
E-mail: marlett.balmer@giz.de
and North West University on sustain- serve as a catalyst for sustainable
able resource-based sanitation, and a energy innovation, transformation and
project between the University of Preto- technology diffusion in support of South
ria and the Fachhochschule Kiel to Africa’s sustainable development.
finance a woman’s science conference. The South African-German Energy
The year would focus on several strate- Programme (SAGEN), focussing on
gic areas, including climate change, renewable energy and energy efficien-
human capital development, bio-econ- cy in South Africa, highlighted key
omy, megacities, astronomy, and areas for cooperation, namely support
health innovation. ‘Social innovation or to the Renewable Energy IPP Procure-
innovation for development is a key ment Programme, support to the estab-
component of our collaboration,’ Minis- lishment of the South African Wind
ter Pandor said. ‘Projects such as the Energy Centre (SAWEC), support to
Communal Water House of the Ikwezi the implementation of energy efficiency
local community in the Eastern Cape, incentive schemes as well as skills4 Energy Management News
Reduce the glare and
enjoy the view
Case study: 4 Sandown Valley Crescent, Sandton
SITUATION PERFORMANCE DATA
Zenprop Property Holdings’ offices are Dual-reflective series: DR25SRCDF
situated at 4 Sandown Valley Crescent, Total Solar Transmittance: 25%
Sandton, Johannesburg, a six story Total Solar Reflectance: 26%
block in modern contemporary style, Total Solar Absorptance: 49%
with a minimum of unnecessary adorn- Visible Light Transmittance: 22%
ment. Zenprop’s offices on the 6th floor Visible Reflectance (Exterior): 27%
have wonderful views of the Sandton Visible Reflectance (Interior): 13%
skyline. However, staff in offices on the Winter-median U-value: 0.92
northern side of the building experi- Shading Coefficient: 0.41
enced a tremendous amount of glare UV Rejected: 99%
and heat in spite of the use of tinted Emissivity: 0.61%
high performance glass. Aluminium Solar Heat Gain Coefficient (SHGC): 0.35
blinds were added and kept closed. Total Solar Energy Rejected (TSER): 65%
This detracted from the aesthetics of Light-to-Solar Heat Gain Ratio (LSG): 0.63
the area, while heat still entered. Staff Summer Solar Heat Gain Reduction: 59%
could not enjoy the lovely view. Winter Heat Loss Reduction: 11%
Glare Reduction: 76%
SOLUTION
Zenprop approached Tanya Kuschke
from Brisk Enterprises. She introduced
● Contact: Piet Ebersöhn
them to the LLumar Architectural Win- Snelco Pro
dow Film range, specifically designed Tel: (012) 348 1937
to reduce heat and glare without E-mail: piet@snelco.co.za
detracting from the views, and which
could help reduce energy costs. Sam-
ples were installed to establish the film
most suited to the building style, whilst
reducing the maximum amount of glare
and heat.
LLumar DR25SRCDF, a dual reflec-
tive film with a warm gray colour was
selected. It reduces heat and glare, and
offers low interior reflectivity for better
night view, reduces fading of interior
furnishings and increases energy effi-
ciency.
RESULT
As a result of the film on the windows,
staff experience more comfort and are
able to leave the blinds open to enjoy
the view. With the blinds open, the
whole area appears larger, lighter and
in line with the modern contemporary
style of the building.
‘The application of the LLumar
Film has enhanced the 6th floor
office space and is the major con-
tributing factor for staff now open-
ing the blinds to enjoy the views of
Sandton.’
- Bianca Hitha-Neumann, Zenprop
Property HoldingsEnergy Management News 5
Mozambique Channel Completion of 2-D seismic data acquisition
in Juan de Nova and Belo Profond assets
months we expect to have a portfo-
S
outh Atlantic Petroleum (SAPET have been sampled for geochemical
RO) announce the successful analysis as part of SAPETRO’s aggres- lio of seismically and geochemically
conclusion of the seismic data sive exploration program. supported prospects for 3-D detail-
acquisition program in Mozambique The survey was completed using ing and drilling in one of the world’s
Channel PGS’s GeoStreamerTM fully ghost-free major emerging hydrocarbon prov-
South Atlantic Petroleum (SAPET- technology. This unique technology inces.
RO) is a Nigerian based upstream oil combines PGS’s GeoStreamerTM
and gas exploration and production dual-sensor streamer with its new ● Contact: Uzoma Echegiri
company with a portfolio of 5 assets in source technology, GeoSource™. General Manager – Commercial
4 countries spanning the full cycle E&P GeoStreamer GSTM data is of the South Atlantic Petroleum (SAPETRO)
value chain. With production and explo- highest quality being ultra-rich in both Tel: +234 8033 091652
E-mail: uzoma.echegiri@sapetro.com
ration in deep offshore Nigeria, high and low frequencies and free of
Website: www.sapetro.com
SAPETRO’s other interests are in both source and receiver ghosts and as
Benin, the French Territory in the such promises to significantly improve
Mozambique Channel (TAAF) and SAPETRO’s exploration success ratio,
Madagascar. well targeting and recovery efficiency
SAPETRO was pleased to an- by improving prospect evaluation,
Reconsidering
nounce the successful conclusion of
the 12 256 km 2-D seismic data acqui-
reservoir delineation and characteriza-
tion. This SAPETRO seismic survey is
the economics
sition program on 10 May in its two
Mozambique Channel assets - Juan de
the largest yet conducted in the world
employing PGS’s GeoStreamerTM
of photovoltaic
Nova and Belo Profond. Individual vol- technology. power
umes are 8 868 km and 3 388 km in SAPETRO also used the opportuni-
P
Juan de Nova and Belo Profond ty of the seismic mobilization to con- ower generated from solar
respectively. duct geochemical sampling using Gore photovoltaic (PV) panels is
The Juan de Nova permit in the Technology’s C5-C35 surface slick much closer to competitive-
TAAF (Terres Australes et Antarctiques sampling system to sample the actual ness with conventional electricity
Françaises) area is 52 990 km2 and seeps in the region. More than 40 sam- generation than many policy-makers
contains a substantial portion of a new ples were collected for analysis. and commentators have realised,
deep water exploration province adja- SAPETRO believes the combination of according to a new working paper on
cent to ENI and Anadarko’s recent dis- state-of-the-art broadband seismic data the subject, released by research
coveries in the Rovuma Basin explo- and geochemical analysis will establish company Bloomberg New Energy
ration province offshore East Africa. unequivocal evidence of active petrole- Finance.
The Belo Profond permit in Madagas- um systems in its Mozambique Chan- The paper, Reconsidering the
car, which covers an area of 13 770 nel acreage. Economics of Photovoltaic Power,
km2 is adjacent to the Juan de Nova In spite of some poor weather looks at the implications of the
permit and extends the plays to the including several cyclones passing sharpest falls in the prices of PV
south along the Davie Fracture Zone. through the area, the survey was con- technology in recent memory. Aver-
Both areas are in water depths of 1800 cluded in an efficient manner by capi- age PV module prices have fallen by
m to 3 200m. talising on the deep towing configura- nearly 75% in the past three years,
Modern seismic data indicate that tion of the GeoStreamerTM. to the point where solar power is
the blocks contain substantial thick- Commenting on the transaction, now competitive with daytime retail
nesses of favourably structured Tertiary SAPETRO’s Chief Executive Officer power prices in a number of coun-
and Mesozoic sedimentary packages Martin Trachsel stated: tries. It also examines the metrics
throughout the acreage resting on a This is a major achievement for generally used to measure the eco-
large submerged continental crustal SAPETRO but we are only at the nomics of solar power against alter-
block. The entire area is effectively a beginning of the journey. The next native power generating technolo-
‘paleo-transform margin’ active from stage will see PGS utilize their gies, and finds they are often
170 to 90 MYA. Satellite remote sens- unique wavefield separation which inadequate, and may introduce bias
ing studies have indicated areas of will enhance the final interpretation against the deployment of PV tech-
potential hydrocarbon seepage which of the data. Within the next 12 nology.
● Contact: Morgan Bazilian
E-mail: M.Bazilian@unido.org
Websites: http://bnef.com/PressRe-
leases/view/216
www.bnef.com/WhitePapers/down-
load/826 Energy Management News
S
upply restraints are well known
in electricity, railways, credit cul-
ture, public sector manpower
Energy underperforming oil refining and basic
iron and steel, non-bisor manufacturing
came in at an unchanging 83%.
performance
and regulatory interference. Recent Transportation fixed investment
times have seen quite a roll call of sur- continues robustly, reflecting strong
prises. gains in commercial vehicle demand,
The electricity supply maintenance partly underwritten by growing Africa
backlog has apparently become
‘unsustainable’, requiring a (large) cut and the demand, our own road transport and
mining, but also increased rolling stock
in electricity use soon. The start-up of by Transnet.
the first Medupi unit has apparently
been delayed to late 2013 though ster-
ling effort is being made. The electricity
South Also interesting is the general
improvement in machinery and equip-
ment fixed investment. Agriculture has
system looks being severely con-
strained for the next five years.
Medupi’s first unit will likely only start
African been a strong purchaser following large
farming income gains last year, with
Eskom power station construction
up in late 2013, so there is another two
years of capped output ahead of us,
after which it will remain touch and go
economy increasingly shifting to the equipment
phase.
The bad news has been the plat-
for another 3 - 5 years as new produc- inum mining disruptions, with the
tion units gradually come on stream labour unrest possibly spreading,
even as demand keeps growing. potentially giving us a poor 1Q2012
Electricity output remains heavily mining output.
constrained, having been at effective hardly be said to be performing beyond South African electricity output in
full capacity since late 2007, with capacity (ready for a fall). January 2012 was +0.5% y/y, matching
November 2011 some +0.4% y/y but Despite the very complex and lively the output level for January 2008,
output slightly below the level of events playing abroad, our balance of indicative this constraint on the local
November 2007. Actual reality may be payments constraint may not get acti- economy stays as severe as ever (and
worse, with Eskom calling for a cut in vated shortly or even this decade (short unlikely to start lifting before 2014, pos-
consumption, as its maintenance back- of a crisis interruption not now fore- sibly even later).
log has reportedly increased to an seen). Oil could prove a special case, This ongoing electricity constraint
unsustainable degree. as on occasion in the past, thinking wasn’t such a surprise, but it was news
Still, there appear to be more Middle East events. If we have lost that Eskom felt the need to ask for 10%
households experiencing erosion of some of our insulation against such oil electricity savings from consumers at
real income from high petrol price infla- crises (by having a lesser precious short notice, as it had fallen well behind
tion (over 20%), electricity (17%), food metal exposure), and oil (food and the on its maintenance schedule, having
(11%), school fees and municipal serv- Rand) were to conspire to give us an kept power stations actively running for
ices (10%) and similar imposts. inflation shock ending our supportive too long in order to generate as much
Also, there are private sector macro policy stance as interest rates output as possible.
capacity issues in the oil refining and were raised, our cyclical expansion Key heavy industry users keep
steel sectors regularly inviting shut- could come to a grinding halt. being targeted to save more on elec-
downs (but probably not limited thereto, Adding all this up, the economy tricity use, with a major ferrochrome
as, for instance, the increasingly chron- could expand at a pace of up to 3.5% producer reportedly idling some of its
ic safety-linked shutdowns in platinum (its long-term average) through to smelters in the Rustenburg area
mining attest, with important loss of 2016, with some of our infrastructure through midyear. But equally there
output), while some of that extra constraints easing somewhat in the lat- have been upside surprises and on bal-
deployable labour may not be as pro- ter part of this period (electricity, rail- ance these have been in the majority.
ductive as perhaps imagined due to low ways, municipal infrastructure, but also There was the 4Q2011 GDP esti-
educational levels and skills and limited credit). mate, with annualised real total growth
experience. Provided that oil is not shocked by of 3.2%. Retail, wholesale, motor and
These shortcomings are such that major warlike Middle East events (a accommodation trades led in the
much of our subpar growth perform- massive uncertainty), global demand growth stakes at +5.2%, government
ance may now be structural, baked- and supply could remain sufficiently in consumption did +4.4%, manufacturing
into-the-cake, meaning extra demand balance to offer us a $100-$120 oil +4.2%, transport/communication +3%,
would not generate much more price range. finance +2%, construction +2%, mining
resource uptake and output but would Manufacturing capacity utilisation at +1% and agriculture the only negative
simply trigger higher imports. Similarly, 80.8% in November 2011 was slightly at -5%. For 2011 overall, real GDP did
inventory levels don’t appear exces- down on the 81.5% of a year ago, but if +3.1%, despite heavy labour disruption
sive, while mining and agriculture can we exclude the distorting effects of in industry at mid-year.
There is reason for caution, as infla-
tion is yet to peak, with food, electricity
and petrol remaining major inflation
drivers, eroding household purchasing
power.Energy Management News 7
Along with strong tax take from per-
sonal income tax (+14% after absorb-
ing R9.5bn in ‘relief), +10% in VAT
income, R5.5bn from a 15% withhold-
ing tax on dividends, R4.5bn increase
in fuel levy, and R2bn apiece more from
Electricity
in crisis
the electricity levy and capital gains tax,
the Minister is certainly taking more
from households, further reducing real
consumer purchasing power.
● Contact: Cees Bruggemans
Chief Economist, FNB
E-mail: Cees@fnb.co.za
S
Twitter: sound bites@‘ceesbrugge- outh Africa faces an electricity INDEPENDENT POWER
mans’ crisis which if left unresolved will PRODUCERS
Website: www.fnb.co.za/economics cost the economy further unre- Entry of power producers should be
coverable billions. The proposed ener- entirely dependent on their meeting
gy-related legislation is more restrictive objective standards and not on a
than existing legislation. The new licensing process based on the subjec-
power stations, Medupi and Kusile, will tive judgements of officials. No restric-
not be completed on schedule or within tion would be necessary in an effort to
budget. prevent “excessive” investment in gen-
Already mines, manufacturers and eration capacity. If there is inadequate
Wind bidding other businesses, shopping malls, business to sustain additional entrants,
property developers and others have to the cost will be borne by such entrants
2nd round — 79 tenders rein in potential expansion. It is essen- and not by taxpayers.
presenting 3 233 MW tial that government change the energy
environment immediately to forestall DISTRIBUTION OF ELECTRICITY
M
inister Peters announced on stagnation of the economy and further The market for distribution of electricity
the 14th of May the selected job losses. to end users should be opened up in
bidders from the 2nd Bid. The world’s experience shows that the same way as the opening of the
The 1st bidders were finalizing private investment and management of transmission grid, except that con-
financial closing of projects and will electricity generation, transmission and sumers should have access to a choice
start to prepare for implementation. distribution are essential because of of competitive suppliers as they do in
Also some of the bidders from the the critical role played by competition in other countries.
1st Bid will not be able to reach ensuring the lowest prices, timely
financial close due to unexpected investment, availability of capital, and TRADING IN ELECTRICITY
facts as, for example, lack of grid continuity of supply. With an independent grid or grids, com-
capacity. A well-functioning electricity supply peting power producers, and compet-
The submission of the third Bid is system has certain essential features: ing distributors, trading in electricity will
due on 20th of August. become commonplace. A market for
Just to implement the first IRP 1 INDEPENDENTLY OWNED AND electricity will help to smooth supply
phase of 1 850 MW until 2015 OPERATED TRANSMISSION GRID and demand and reduce peaks and
wind components for approximately The grid need not have one owner and troughs in demand as price adjust-
1 000 wind power units need to be parts of it can be independently operat- ments change the behaviour of users
handled: ed. Independent supervision of the grid and consumers.
• ± 3 000 blades up to 55 m long and its operation, and objective rules,
● Contact: Eustace Davie
• ± 9 000 tower sections up to 35 are essential to protect the grid’s Director, Free Market Foundation
m long integrity. Generators of electricity who Tel; 011 884 0270
• ± 1 000 nacelles up to 80 tons abide by the rules should not be pre- E-mails: gailday.fmf@mweb.co.za and
each vented from utilising the grid to sell fmf@mweb.co.za
• 350 000 tons of concrete electricity to customers. Similarly, pur- Website:
• 6 500 abnormal loads (13 per chasers of electricity who follow the www.freemarketfoundation.com
day) rules should not be prevented from
• transport costs from overseas drawing electricity off the grid.
harbour to local sites between There is a strong case for Eskom to
R500 000 to R3 600 000. divest itself of ownership and control of
the transmission grid.
● Contact: Hermann Oelsner
President, African Wind Energy
Sale of the grid to private pur-
Association chasers would supply much-needed
P.O. Box 313, Darling 7345, SA capital to finance the building of new
Tel. + 27 22 492 3095 power stations or to pay off debt and
Fax + 27 22 492 3096 reduce the burden on the government,
E-mail: office@AfriWEA.org taxpayers, and electricity customers.8 Energy Management News
Bharti Airtel makes progress towards
building a ‘Green Network’ in Africa
INTRODUCTION by Airtel taken to ensure that
Disre g
Bharti Airtel Limited is a leading we reduce our fuel consump-
integrated telecommunications tion and that we play our part
company with operations in 19 in conserving the environ-
countries across Asia and ment. We will continue to do
I
Africa. Headquartered in New so as the year progress- n October 2006, Sir Nicholas Stern,
Delhi, India the Company ranks es. Our first priority is to then a UK Treasury deputy secretary
amongst the top 5 mobile serv- reduce the number of sites seconded to the office of the Prime
ice providers globally in terms of sub- that are completely reliant on diesel Minister, Tony Blair, produced a Review
scribers. In India, the company’s prod- generators. We are doing this by con- on the Economics of Climate Change,
uct offerings include 2G, 3G mobile necting these sites to grid electricity in a tome of some 575 pages. He was
services, fixed line and DSL broad- areas where this option is feasible. rewarded by being made Baron Stern
band, IPTV, DTH, enterprises services Where it is not, we are exploring alter- of Brentford. He has since left govern-
and NLD/ILD services. In the rest of the native forms of power supply, which ment and now holds a chair at the Lon-
geographies, it offers 2G, 3G mobile include Hybrid Battery Banks and solar/ don School of Economics. He spends a
voice services. Bharti Airtel had over wind power.’ lot of time travelling the world, spread-
243 million customers across its opera- Bharti Airtel said that it has already ing the message of his report that we
tions at the end of December 2011. made significant strides in using solar will minimize the costs of climate
panels to power sites in select markets. change if we act now and spend large
BUILDING A GREEN NETWORK Over the last two months, 105 solar sums to mitigate the impacts. Govern-
Bharti Airtel announced in March, sig- sites have already been set up in Niger ments have warmed to his message.
nificant milestones in its endeavour to reducing the use of diesel generators They see a justification for raising huge
build a ‘green’ environment friendly from 24 hours a day to a meagre 3 to 4 taxes on carbon. He is due back in
mobile network and reduce its carbon hours. South Africa shortly.
footprint in Africa. As part of its commit- In the short span of two years, the In the five-and-a-half years since he
ment to the environment the company implementation of all key initiatives – wrote the Review, the world has had
has undertaken a series of initiatives increased grid connectivity, battery the opportunity to consider his findings.
that are starting to deliver tangible hybrid and solar/wind power - will mean By and large they have been rejected.
results. The Company said that over that Bharti Airtel will be using 35% less He claimed ‘The scientific evidence is
last one year, it has reduced the num- diesel on average to power each site. now overwhelming: climate change
ber of telecom sites running solely on The Company is confident that as it presents very serious global risks, and
diesel by more than 50% by overcom- maintains its focus on using alternative it demands an urgent global response.’
ing the challenge of lack of grid con- sources of fuel to replace diesel, it will When the world’s leaders met in
nectivity through use of innovative continue to play a significant role in Copenhagen in 2009, they were not
models such as Hybrid Battery Bank. conserving the environment. moved by this call to urgent action.
By 2013, the Company aims to com- When they met again a year later in
pletely eradicate the constant use of COMMITMENT TO REDUCTION OF Cancun, urgent action was still not high
diesel to power its network. This means TELECOM SITES on their agenda. Another year later, in
no telecom site of the company will rely Bharti Airtel underlines commitment to Durban, they agreed that by 2015 they
solely on diesel power 24 hours a day. the environment by reducing the num- would develop a plan that would be ini-
Hybrid Battery Banks collect the ber of telecom sites running 24x7 on tiated by 2020 – hardly an urgent pro-
excess energy produced by the diesel diesel by over 50%. There are plans to gramme.
powered generator in a battery that completely eradicate constant use of He exaggerated the dangers, inflat-
powers the site once the generator is diesel across all its sites by 2013. ed the costs, and overstated the bene-
switched off. This has helped reduce • 60% of the company’s telecom sites fits of early action. What was the nature
the use of diesel by up to 14 hours a now use the innovative Hybrid Bat- of these amplifications?
day. Close to 60% of Bharti Airtel’s tele- tery Bank model that reduces daily First, he used models that predicted
com sites in Africa are now powered use of diesel by up to 14 hours that if the carbon dioxide concentration
using the Hybrid model resulting in • A Hybrid Battery Bank model to in the atmosphere doubled from the
major reduction in emissions and also cover 70% of all telecom sites of pre-industrial level of 280ppm to
operating costs for the company. The Bharti Airtel in Africa by 2013 560ppm, the average temperature
Company is targeting over 70% of all its • The Company is also exploring use would rise by 3°C. The world has
sites to be powered by the Hybrid of renewable energy such as solar warmed about 0.8°C since 1860. About
model by end of 2013. It added that is and wind power. 0.4°C of that has been natural because
also working on the use of solar and human emissions of carbon dioxide
● Contact: Michael Okwiri
wind power to power its telecom sites. VP, Corporate Communications
only became significant after about
Mr. Eben Albertyn, Chief Technical Airtel Africa 1950. So at worst the increase in car-
Officer, Bharti Airtel, said, ‘This mile- Mobile: +254 2 733 253 080 bon dioxide has only caused about
stone is the result of significant steps Website: www.airtel.com 0.4°C rise in temperature. The carbonEnergy Management News 9
ard the Ster n war ning
dioxide has already climbed to nearly occasional spraying with DDT, the inci- 56 percent of one year’s world con-
400ppm, more than 40% above pre- dence of malaria soared. When we re- sumption today to remove the wrinkle.
industrial levels. This implies that if the introduced DDT, the incidence went In other words, it is worth a one-time
carbon dioxide concentration were to back to low levels. consumption hit of approximately
double, the average temperature would ‘Ecosystems could be particularly $30,000 billion today to fix a tiny prob-
rise by at most 1°C. vulnerable to climate change, with lem that begins in 2200.
This has caused scientists to exam- around 15–40% of species potentially Interestingly, Stern has responded
ine closely the models which Stern facing extinction after only 2°C of too much of the criticism of his environ-
used in making his prediction. The warming.’ ‘Declining crop yields, espe- mental assumptions, but I have failed
models included an assumption called cially in Africa, could leave hundreds of to find him answering his economic crit-
‘feedback’, which has a value of around millions without the ability to produce or ics. For instance, in a World Economics
+2. Recent measurements have shown purchase sufficient food.’ The litany of paper of 2007, Stern said:
that a value between 0 and -1 is more disasters goes on and on, always with The implications of following a slow
likely, which would imply less than 1°C that nasty little hypothetical tucked ‘policy ramp’, with meagre emission
rise for a doubling of the carbon diox- away in the authoritative statement. A reductions over the next quarter of a
ide, just as has been observed in the moment’s thought about these two in century, would, on our reading of the
real world. particular will reveal their shallowness. evidence, be very risky indeed, yet this
So Stern overstated the probable We all agree the world has warmed is implicit in the arguments of, for
warming by a factor of at least three. over the past 150 years. Are ecosys- example, Nordhaus (2006) and Tol and
He was relying on the 2001 assess- tems disappearing because of climate Yohe (2006 and 2007).
ment report of the Intergovernmental change? Are crops yields demonstrably The IPCC floundering at Copen-
Panel on Climate Change [IPCC]. The down? No, and no again. The Interna- hagen, Cancun and Durban makes it
IPCC scaled down their projections in tional Union for the Conservation of very clear that what Stern classes as
2007, so we cannot put blame on Stern Nature estimates species loss at about ‘very risky indeed’ is not perceived as
for this error. However, it had a knock- 400 per century, unchanged for the risky at all.
on effect when he came to consider the past four centuries. And in a high-car- If Lord Stern was an insurance
impacts of his predicted 3oC tempera- bon world the crops are doing better salesman, we would instantly send him
ture rise. and better, as the Dutch florists, who fill packing. However, Governments ev-
The litany of disasters that Stern their greenhouses with extra carbon erywhere welcome him with open
provided makes the apocalypse seem dioxide, could have told the noble lord. arms. Our own Treasury quotes his
like a pleasant outing. ‘Rising sea lev- So with inflated damage, it was findings in their attempts to justify tax-
els will result in tens to hundreds of mil- easy to overstate the costs. But where ing carbon as if his review were some
lions more people flooded each year.’ Stern really went astray was in the religious tract. Why does he enjoy this
The world has warmed over the past impact of these overstated costs. You status? I can only conclude that politi-
150 years. If a warmer world were would not have expected a professor of cians everywhere see their dreams
causing disastrous floods, we would economics to make a mess of this, but realized. Finally there is a justification
have seen it long since. The latest the weight of criticism from academic for taxing hot air.
IPCC report estimates around 30 cm economists strongly suggests that he
● Contact: Philip Lloyd
sea level rise per century. Everywhere did. He employed a discount rate that Energy Institute
our existing defences against the sea was so low that almost any future Cape Peninsula University of Tech-
are about 5m above normal high tides, impact would have a significant eco- nology
so that a storm surge will not bring nomic impact today. As one of his E-mails: lloydp@cput.ac.za and
floods. At worst, a few waves overtop severest critics, William Nordhaus of plloyd@mweb.co.za
our defences every year. In a hundred Yale University, observed:
years time, we might need to add three Suppose that scientists discover a
bricks to our protection. wrinkle in the climate system that will
He claimed ‘Vector-borne diseases cause damages equal to 0.1 percent of
such as malaria and dengue fever net consumption starting in 2200 and
could become more widespread if continuing at that rate forever after.
effective control measures are not in How large a one-time investment would
place.’ Note the hypothetical ‘could’. be justified today to remove the wrinkle
The spread of malaria is not driven by that starts only after two centuries?
temperature, but by public health Using the methodology of the Review,
measures. When South Africa gave up the answer is that we should pay up to10 Energy Management News
Eastern Cape Couga Industrial Development Zone:
A solid business case and huge market for wind and
solar components
T
he implementation of a renew- nologies. He points out that there is a He says the Coega IDZ is the ‘ideal
able energy strategy by the ‘huge market’ particularly for solar PV manufacturing platform’ for renewable
Coega Development Corporation and Off-Grid Technologies adding that energy components that, in addition to
(CDC), one of the players in the area of the South African government is com- contributing to the battle against global
green energy, will undoubtedly con- mitted to reducing the country’s carbon warming, are revenue generating, cre-
tribute immensely to its objectives such footprint and ‘supports green technolo- ate jobs and advance socio-economic
as job creation, revenue generation gies through various incentives’. development and transformation.
and advancing socio-economic devel- Vilakazi says the 7 000 MV of solar
● Contact: AfriWEA
opment and transformation in the East- power that is planned has increased E-mail: office@AfriWEA.org
ern Cape. the demand for localisation of solar PV
Currently, wind projects with a com- panels.
bined capacity of more than 6 000 MW
are at various stages of the environ-
mental impact assessment process
(EIA) in the Eastern Cape, placing the
province at the forefront of wind renew- PV growth in South Africa
able energy projects. The total of 6032
MW of energy projects still in the EIA hinges on the success of
process outstrips the Medupi coal-fired
power station that is currently under phase I projects
construction and that will have an out-
A
put of 4 788 MW. recent PV Insider webinar that focused on the project development chal-
Nationally, wind projects totalling 9 lenges in South Africa, revealed the key hurdles that developers are fac-
345 MW are planned. ing to complete plants on time and on budget
There are major projects which Since the South African government launched the Integrated Resource Plan
have been proposed for the Eastern (IRP) in 2010 local and international developers have shown a keen interest in
Cape. In the Blue Crane Route Munici- this region. Since December 2011, 632MW of PV has been awarded in South
pality, Terra Wind has a plan for a wind Africa, as well as $1.5 billion of investment from local and international financiers.
farm with the capacity of 1 713 MW and In phase I of the IRP, the government received 53 bids across different renew-
Windlab Developments is planning to able technologies, and it was confirmed in March this year that this figure had
erect 350 turbines with a capacity of increased to 79 tenders, representing 3 233 MW of projects in Phase II. 18 proj-
700 MW between Cookhouse and Bed- ects are currently under development in South Africa, but with this number pre-
ford. dicted to double by August developers are already facing substantial roadblocks
Electrawinds has invested R 1.2 bil- when moving projects forward.
lion in the Coega Wind Farm project On 25th April PV Insider held a complimentary webinar to analyse the key
and each of the 25 turbines has a challenges faced when developing projects in South Africa, as well as the poten-
capacity of 1.8 MW which translates tial for future growth in this emerging solar market. During the session, Davin
into an annual yield of 5 700 kWh, Chown of SAPVIA, Linda Thompson, Head of Solar Developments at Main-
enough energy to power about 1 700 stream Renewable Power and Conrad Hefer from Cresco Project Finance exam-
households. In addition, 7 000 MW of ined these critical topics and shared their experiences in this region.
solar power developments have also Examining the two projects currently under development by Mainstream
been announced, with Langa Energy Renewable Power, Linda Thompson recognized that land acquisition, grid capac-
having confirmed their investment in a ity and water availability has presented developers with many hurdles. Linda
100 MW photovoltaic facility at Berlin went on to explain that the market has become over competitive in terms of play-
outside King Williams town. ers, that has led to “further competition for access to land and to the grid in phase
CDC Marketing & Communication II”, and that this “could also make projects fall over”.
Manager, Mr Ayanda Vilakazi says The PV Project Development Summit South Africa 2012 is taking place on 3
given the volume of both wind and - 4 September in Johannesburg.
solar projects both in the province and
● Contact: Jack Ahearne
nationally there is a ‘solid business E-mail: jack@pv-insider.com
case’ for component manufacturing in Website: www.pv-insider.com/southafrica/content3.php
South Africa for wind and solar tech-Energy Management News 11
Six countries bid to Energy events
2012
host the Green AUGUST 2012
Climate Fund 21 - 22
ECONOMIC REGULATORS
CONFERENCE
Emperors Palace, Gauteng, S Africa
ABOUT THE GREEN CLIMATE FUND
E-mail: ipelena@tips.org.za
T
he Green Climate Fund was established in December 2011 at Dur-
ban, South Africa, by the Conference of the Parties to the UNFCCC SEPTEMBER 2012
with the purpose of making a significant and ambitious contribution
to the global efforts towards attaining the goals set by the international 3–4
community to combat climate change. In the context of sustainable devel- PV PROJECT DEVELOPMENT
opment, the Fund will promote the paradigm shift towards low-emission SUMMIT SOUTH AFRICA 2012
and climate-resilient development pathways by providing support to devel- Johannesburg, South Africa
oping countries to limit or reduce their greenhouse gas emissions and to Contact: Jack Ahearne, Global Events
adapt to the impacts of climate change. The Fund will provide simplified Director, CSP Today
and improved access to climate change funding to developing countries, Tel: +44 (0) 207 375 7556
including direct access, basing its activities on a country-driven approach. Website: www.pv-insider.com/south
The Green Climate Fund will be governed and supervised by a 24- africa/content.php
member Board and was designated as an operating entity of the financial
mechanism of the UNFCCC. The Conference of the Parties requested the 3–7
UNFCCC secretariat jointly with the Secretariat of the Global Environment POVERTY AND INEQUALITY
Facility to set up the Interim Secretariat for the Fund. CONFERENCE
University of Cape Town, Cape Town,
EXPRESSIONS OF INTEREST AND HOSTING THE FUND South Africa
The Interim Secretariat of the Green Climate Fund received six expres- Website: www.carnegie3.org.za
sions of interest in April, to the Fund’s Board for hosting the Fund from the
OCTOBER 2012
following Parties to the United Nations Framework Convention on Climate
Change (UNFCCC): 2–4
1. Germany
GISSA UKUBAZANA 2012
2. Mexico
Emperors Palace, Gauteng, S Africa
3. Namibia
Contact; Dawn Newman, GISSA Confer-
4. Poland
ence Steering Committee Chair
5. Republic of Korea
Mobile: 083 515 6913
6. Switzerland
E-mail: newman.dawn@gmail.com
The criteria for the submission of expressions of interest were set by
the Conference of the Parties to the UNFCCC (decision 3/CP.17). They 22 – 24
included the ability to confer and/or recognize juridical personality and
WINDABA CAPETOWN 2012
legal capacity to the Fund, the ability to provide the necessary privileges
Cape Town, South Africa
and immunities to the Fund, and financial arrangements, administrative
Contact: Cheryl Peters, Conference and
and logistical support to the Fund. Project Manager, Windaba Conference
The expressions of interest were posted on the Green Climate Fund and Exhibition
website. Tel: +27 (0) 21 689 7881
At its first meeting, scheduled to take place from 31 May to 2 June in Fax: 086 656 3459
Geneva, Switzerland, the Green Climate Fund Board was going to con- E-mail: Cheryl@windaba.co.za
sider these expressions of interest and initiate an open and transparent Website: www.windaba.co.za
process for the selection of the host country. As a result of this process,
the Board would take a decision on the host country at one of its subse- NOVEMBER 2012
quent meetings and present it to the Conference of the Parties of the
14 – 15
UNFCCC for endorsement at its next session to take place in Doha, Qatar,
from 26 November to 7 December 2012. 2012 SOUTHERN AFRICAN ENERGY
EFFICIENCY CONVENTION
● Contact: Interim Secretariat
(2012SAEEC) AND EXHIBITION
Green Climate Fund
Emperors Palace, Gauteng, S Africa
Tel.: +49 228 815 1371
E-mail: isecretariat@gcfund.net
Website: www.saeec2012.org.za
Website: http://www.gcfund.net
Visit www.erc.uct.ac.za for
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