The Accelerated Demand Side Management programme Solar Water Heating Systems - Lodine Redelinghuys

The Accelerated Demand Side
  Management programme

Solar Water Heating Systems

   Lodine Redelinghuys

CONTENT
„ Introduction
„ Eskom’s Role
„ Why Solar Energy
„ Government on Solar
„ Solar System Funding
    „ Commercial & Industrial Sectors
    „ Residential Sector

„ Product Criteria
„ Consumer Benefits
„ Time frame/milestones
„ Market Preparedness & Phasing
„ Role Players

INTRODUCTION

„ South Africa has some of the highest levels of solar radiation in the
  world.
„ The average solar radiation in this country varies between 4.5 and 6.5
  kWh/m2 compared to about 2.5 kWh/m2 for parts of Europe.
„ Solar Water Heating is Increasing due to:
    „   An increased drive to cleaner energy production.
    „   A greater awareness of climate change and the issues around
        global warming.
    „   The increasing reliability and effectiveness of residential solar-
        water heaters.
„ Countries such as Germany, Israel, Canada, the USA and even
  Namibia are striding ahead.
„ South Africa lags far behind, and we have more sunshine than almost
  every other country.

Eskom's ROLE
„ Eskom is mandated by NERSA to implement energy efficiency
  measures that would ensure the optimal use of the available electricity
  in the country.
„ In addition to building new power stations, Eskom will also pursue
  energy and demand savings on a large scale to mitigate system
  challenges.
„ African Countries are doing something to reduce the levels of
  greenhouse gases emitted each day and Eskom, as the primary
  energy producer in South Africa, is in a prime position to do this.

EEDSM MEDIUM TERM TARGET

„ Winter Weekday Demand Profile 2004 - 2012

                                     Target

                                                  Peak
                                          3000 MW Demand
                                                  Reduction
                                                  Through
                                                  DSM by
                                                  2012
 Demand
Projected
                                                   New DSM
                                                   Load
    Daily                                          profile
    load
            1            Hours                24

APPROACH TO BE FOLLOWED
          Comprehensive National Demand Management Programme

                                                     OR STICK

                                                          NEEA
ESSENTIAL SUPPORT FUNCTIONS TO ALL OF THE ABOVE

WHY SOLAR ENERGY?
„ According to energy experts, water heating in the home accounts
  contribute for 30% – 50% of a household's electricity consumption.
„ South Africa is by far one of the sunniest countries in the world and
  our winter months have a high enough heat index.
„ The South African Government has set a target for renewable energy
  to contribute 10 000 Gigawatt hours (GWh) of final energy
  consumption by 2013.
„ Research completed by the DME estimates that solar water-heating
  could contribute up to 23% of this target.
„ Although solar water-heating technology is not new, the industry in
  South Africa is still characterised by high manufacturing costs and low
  volumes of sales.

GOVERNMENT ON SOLAR
„ The South African Government has issued a White Paper
  (Government document that details government's plans and priorities,
  this is published and is seen as the way forward before becoming
  enacted in legislation as an Act,) calling for 10 000 GWh of energy to
  be produced by renewable means by 2013.
„ The SABS, with the assistance of the Central Energy Fund (CEF),
  bought a test rig that can test systems for compliance with national
  standards.

SOLAR SYSTEM FUNDING

„ Commercial and Industrial:
    „   Funded through current EEDSM mechanism
    „   Using Registered Esco’s for implementation
    „   Institutions/Industry to contact Esco (www.eskom.co.za/dsm)
    „   Esco will do an audit and compiles a proposal for submission
    „   Technical and Financial evaluation as per the DSM process

    „   Currently investigating special mechanism
    „   Special focus on 2010

SOLAR WATER FUNDING (CONTINUES)
„ Residential:
    „   The programme is structured around an incentive scheme which
        reduces the selling price of a solar water-heating system.
    „   The reduction in price is based on four factors namely:
         z   The electricity-saving potential of the specific product,
         z   The life expectancy and warrantee offered.
         z   Local content
    „   Subsidies range between 10% and 30% of system costs
        (Systems cost between R8,500-R35,000 uninstalled)
    „   Consumers will receive the discount directly from the supplier,
        provided that the product and the supplier have been pre-
        approved, and that the installation is done by a registered
        installer.
    „   Retrofits and new installations
    „   Program details will be available on www.eskom.co.za/dsm

PRODUCT CRITERIA
„ It must be a high-pressure system.
„ The system must be installed in conjunction with a timer/load control
  technology or with no electrical back-up.
„ The system must be appropriate for the household and area in which
  it is installed, especially in terms of size, frost protection and water
  quality compatibility.
„ It must have a comprehensive guarantee for at least five years and
  should offer a life expectancy of 10 to 15 years.
„ The system must have passed the South African Bureau of Standards
  (SABS) tests, and comply with the South African National Standards
  (SANS) for thermal and mechanical performance and safety.
„ The system must be installed by a pre-approved installer and the
  dealer will only be able to claim the discount amount once an
  Electrical and Solar Water Heater Installer Certificate of Compliance
  has been issued.

CONSUMER BENEFITS
„ Economical Benefits:
    „   Economically speaking, homeowners can make considerable
        savings on their electricity usage in substituting a geyser which is
        the highest Residential Power Consumer.
„ Environmental Benefits:
   „ A 150 litre solar water heater will replace in the order of 4.5 kWh
     of electricity per day, resulting in the following environmental
     savings:

                Savings/KWH               Approximate Annual Saving
        Water: 1.26L/KWH                2.07 Kilolitres
        Coal: 0.5 KG/KWH                821Kg
        Ash: 0.28 g/KWH                 460g
        SO2: 8.79g/KWH                  14.4Kg
        NOX: 3.87g/KWH                  6.4Kg
        CO2: 0,96Kg/KWH                 1.6tonnes

TIME FRAME/MILESTONES

„ Commercial & Industrial available
    „   No SABS standard – possible issue
    „   No design criteria
    „   But working on an offering….

„ Residential
    „   Incentive live by December

MARKET PREPAREDNESS & PHASING

„ Eskom approved R2 billion to achieve 578 MW savings
„ Currently industry capable of 10,000 units per annum
    „   2006 7,000 units sold
    „   Eskom program require 18,000 units per month for the next five
        years
    „   Saving 65% of 30% of household consumption

    „   Working with Municipalities to offer leasing agreement
        (similar to Nelson Mandela (PE))

ROLE PLAYERS

„ The Central Energy Fund (CEF):
   „ the Energy Development Corporation (EDC)
   „ the National Energy Efficiency Agency (NEEA)
   „ the South African National Energy Research Institute (SANERI)
„ Eskom & NERSA
„ The Sustainable Energy Society of Southern Africa (SESSA)
„ An advisory body will oversee and guide the implementation of
  the programme:
       z   Department of Minerals & Energy (DME)
       z   Eskom
       z   CEF
       z   SESSA
       z   NERSA
       z   Metros and municipalities
       z   South African Bureau of Standards (SABS)
       z   Sustainable Energy Africa

Programme Contacts

               Suppliers:
Cedric Worthmann @ WorthmCA@eskom.co.za

         Residential customers:
     Gail Perry @ PerryG@eskom.co.za

              THANK YOU

For a supplier to participate in the
          programme he needs to…

1.   Have SWH systems tested by SABS (contact Karel Deist
     @ (012) 428 7029
2.   Register with Eskom SWH Auditors
     „   Complete registration form (draft to be circulated)
     „   Submit required supporting documentation
3.   Obtain clearance from auditors and confirm applicable
     incentive value
4.   Bring incentive under the attention of prospective customers

For a supplier to participate in the
     programme he needs to…(2)

5.   Make a sale:
     „   Ensure customer completes and submit required documents to
         you, the participating supplier
     „   Install the system and complete relevant documentation
     „   Issue invoice to customer indicating Eskom subsidy
     „   Collect payment for customer share
6.   Complete bi-weekly claim form and submit to audit firm for
     verification and payment of Eskom share
7.   Renew participation on an annual basis
8.   Convert to SABS Mark Approval within 18 month grace
     period from 1st test report

RADIATION IN SOUTH AFRICA

      Source: DME, Eskom & CSIR (2001)
     Note: 1300 MJ/m2/year = 1 kWh/m2/day