Overview of SANERI Performance 2006/7

1. Overview of SANERIPerformance 2006/7 KM Nassiep Chief Executive Officer

2. Background • SANERI Fully Operationalised in 2006/7 • CEO Appointed in August 2006 • Budget Allocation of R40 million received from DST • Corporate Plan for 2006/7 approved by Board of Directors • SANERI KPIs • Administration of the Institute • Human Capital Development Programme • RE&SE Hub Operational • Research Chairs Established • Bursary Support Programme Established • Energy R&D Agenda • Strategic Projects Funded • Cooperative Research • Governance • Stakeholder Buy-in and Brand Development

3. Administration of the Institute • Focus on total spend of the institute as well as percentage overheads • Important for government agencies to disburse all funding made available • Underspending affects future budget allocation – uncommitted funds are transferred back at end of financial year to DST and has tax implications • Overspending not permitted – period • DST has prescribed guidelines for limits on overheads that can be claimed by the institute • 2006/7 Performance • Percentage Overheads as percentage of Total Spend • Target is less than 20% • Achieved is 8% • Percentage Funds Disbursed as percentage of Total Spend • Target is greater than 90% spent • Achieved is 96% • Staffing of the Institute • Target is greater than 60% of approved posts filled • Achieved is 70% (permanent and contract)

4. Human Capital Development Programme • Renewable Energy and Sustainable Energy Hub and Spoke Model • Established at the University of Stellenbosch and Sustainability Institute (Lynedoch) • Intention is to undertake research at the centre, using postgraduate students from different universities and “spokes” of the wheel. • In 2006/7, the hub was established with a management board overseeing activities • The coursework for the Masters Degree programme was developed • The bursaries available were all allocated, to students from different parts of the countries, for studies consistent with the objectives of the centre and SANERI • RE&SE Hub • Target was an operational centre at the university • Achieved this target with commendable results obtained already

5. Chairs of Energy Research Programme • CoER Programme established at SANERI in support of Government’s SARCHI Programme, to develop 210 chairs by 2010 • SANERI has set target of 8 Full Research Chairs and 8 Associate Chairs by 2008/9 • Senior Chairs are awarded to Full Professors at Universities, where the individual has national and/or international competence in a given field • Associate Chairs are awarded to doctors and associate professors at essentially Historically Disadvantaged Institutions • An amount of R2 million is available for senior chairs • An amount of R1.5 million is available to associate chair • In 2006/7, two full chairs were awarded • Clean Coal, to Wits University (with University of the North West as partners) • Biofuels and Alternative Liquid Fuels, to Stellenbosch University • In 2006/7, one Associate Chair was awarded • Biofuels and Alternative Liquid Fuels, to University of the North West • CoER Programme KPIs • Target was 3 MoUs completed with universities • Achieved this target, with only funding available limiting the number

6. Bursary Support Programme • A call for applications for bursaries was issued in 2006/7 • An amount of R1.5 million made available for bursaries • Bursaries are intended for postgraduate studies in thematic areas defined by SANERI • Preference would be given to Black and women applicants, in line with gender and equity targets of Government • A total of 25 bursaries were awarded • 15 bursaries awarded to PhD students • 10 bursaries awarded to Masters Students • Bursary Support Programme KPIs • Target is 90% of funds available committed to bursaries • Achieved 100% spend on funds available

7. Energy R&D Agenda • The Energy R&D Agenda focuses on the human capital development programme as well as the development of strategic projects that support national goals • A national call for proposals was issued in 2006/7, inviting proposals from all credible researchers • Proposals totalling R4,5 billion were received • These were whittled down to an eventual 40 projects, totalling some R49 million • Funding limitations prevented the award of additional grants to project developers • Contract Research KPIs • Target is 5 strategic projects developed and contracted • Achieved 40 projects developed and contracted

8. Energy R&D Agenda • Cooperative Research Activities • Part of SANERI’s brief is to develop collaborative projects with national and international institutions • In this way, funds available can be maximised through the leveraging of additional funds • Lots of expressions of interest in collaboration were received in 2006/7 • Due to limited resources (human capital and funds), only 4 areas of partnership could be explored • The following institutions and stakeholders were engaged with collaboration in mind • Fraunhofer Institution’s Transport Division (Dresden, Germany) • Brandenburg Technical University (Cottbus, Germany) • Imperial College of London • City of Johannesburg’s Transport Planning Division • University of Edinburgh • MoUs were developed, but the main focus was on operationalising the agreement • Fraunhofer Institute – on matters pertaining to energy efficient mass transport • Brandenburg Technical University – on matters pertaining to studies on power plant systems • Cooperative Research KPIs • Target is 1 MoU developed with partner institution • Achieved 2 MoUs developed and operationalised

9. Energy R&D Agenda • Governance • An essential element of governance for SANERI is advisory support from nationally recognised experts in the energy field • The Draft Energy R&D Strategy calls for the establishment of the Energy R&D Innovation and Advisory Committee (ERDIAC) • SANERI tasked with establishment of ERDIAC • Ministerial Directive establishing SANERI called for Ministerial approval of ERDIAC members, following advertisement in the Government Gazette • Poor response to advert, followed by adverts in national media and letters to institutions in SA • As a result of poor response to date and the need to follow the prescripts of the Ministerial Directive, the ERDIAC committee could not be established in the financial year • Governance KPIs • Target is ERDIAC establishment and operational • Partially Achieved – committee members identified but not ratified

10. Stakeholder Buy-in and Brand Development • An important contributor to the sustainability of SANERI is the access to government funding • Both the Departments of Minerals and Energy and Science and Technology are important stakeholders from a financial and business strategy perspective • Presentations on the Corporate Plan for 2006/7 were made to Ministers of both Ministries • Support obtained for the Corporate Plan and strategy adopted by SANERI • An important element of developing the brand associated with SANERI is its corporate identity • A national competition was launched in 2006/7 to design a logo for the company • The winner was a Mr Tshepo Choma who designed the logo on this presentation • The company was launched in February 2007, to coincide with the IEA workshop held in Johannesburg at the same time • Stakeholder and Brand KPIs • Target is company launched • Achieved company launch in Feb 2007 • Target is support from DME and DST for overall allocation • Achieved Ministerial support for the Corporate Plan • Target is development of a logo for the company • Achieved the target, as well as development of Corporate Identity Manual elements

11. Conclusions • Overall performance against objectives of 95.8 • Board of Directors and Auditor General approved financials for the year, with clean audit report received • Areas where target was not fully achieved include: • ERDIAC establishment • Human Capital baseline study completed • All in all, an excellent first year of operation with commendable effort from senior management of SANERI, ably supported by CEF support services

12. Thank You