The Southern African Association for Energy Efficiency (SAEE)

1. The Southern African Association for Energy Efficiency (SAEE) SUBMISSION ON ENERGY EFFICIENCY By Prof LJ Grobler Dean, Faculty of Engineering, North West University President, Southern African Association for Energy Efficiency(SAEE)

2. Content • Defining energy efficiency • Energy efficiency within the energy mix • An overview of the SAEE • SAEE members • SAEE Board • South Africa leaders in the industry • The need for an integrated approach to energy efficiency • History of energy efficiency and the challenges • Proposed focus areas • Knowledge and skills • Changing human behavior • Research and development • Funding (incentive) Mechanisms • Conclusion

3. 1. Defining energy efficiency • Not only about saving energy but • using energy effectively • using more efficient energy sources • reducing waste • Energy efficiency is applicable to any energy source: electricity, water, gas, fuel, alternative energies, renewables, etc. • Energy efficiency balances energy input, with the desired output within a specific boundary

5. 2. Energy efficiency within the energy mix • Energy efficiency represents the biggest opportunity for saving energy and harmful emissions • However, other components can contribute to the energy mix but not to the extent that energy efficiency could. • The following graph indicates the opportunities as supplied by the International Energy Agency.

6. IEA – Meeting the 450 scenario (2°C)

7. Mission of the SAEE “The SAEE aims to take the credibility developed during the past 10 years through effective networking, awareness creation and skills development to the next level by enhancing its objectives with the aim to improve South Africa’s competitiveness in the global energy efficiency industry by maintaining its services of Networking, by implementing credible structures for Accreditation and Certification, by focusing on the development of Knowledge within the industry to ensure results-driven professionalism thereby positioning itself as the body of authority for the industry, the country, and the global environment as a whole.“ 

8. 3. An overview of the SAEE • 10th year of existence • One of 72 chapters of the US-based Association of Energy Engineers (AEE) • AEE is recognized in 89 countries • Over 1 800 professionals in South Africa have attended training in energy management, energy auditing, basics of energy management and the technical fundamentals, Measurement & Verification (M&V) of energy savings, carbon reduction management, etc. • Present an annual convention and awareness creation platforms throughout all regions and have reached thousands of stakeholders

9. 4. Our members • The SAEE represents stakeholders in the energy efficiency and energy management industry ranging from small one-man companies to energy intensive users: • Individuals: students and professionals • Educational institutions and private energy training providers • Energy end-users (industrial, commercial) • Energy service providers and professionals • Equipment suppliers • Researchers and developers in energy efficiency • We aim to attract all areas of stakeholders with a specific focus toward making its membership cost-vs-benefit ratio attractive to developing organizations and individuals due to the industry still being in its infancy

10. 5. Our Board of Directors Our Board of Directors constitutes volunteers from a variety of sectors that meet regularly to fulfill an executive role and function to develop the energy efficiency industry in the country: • President: Prof LJ Grobler, Dean of the Faculty of Engineering NWU • Dr Tsakani Mthombeni, General Manager, Technology Innovation Agency • Ms Lisa Reynolds, Technical and Specifications Director at Saint-Gobain Construction Products SA • Mr Karel Steyn, M&V Manager, Eskom Assurance and Forensic Department • Mr Hope Mashele, Engineering and Energy Manager, ABSA Corporate Real Estate Services • Mr Sydney Zeederberg, Chief Process Engineer, Sasol Synfuels

11. 6. South Africa ARE leaders in the energy efficiency industry • The SAEE membership and Board continuously play an active role in placing South Africa on the map through representation at various influential organizations nationally and internationally • SA is seen as leaders in the industry through the following achievements: • SANS 50 010: Measurement and Verification (M&V) of Energy Savings – first country to release such a standard • ISO 50 001: Energy Management Systems – our country is leading the ISO committee developing an ISO standard for M&V to be incorporated into ISO 50 001 • The SAEE has won the AEE’s Best Chapter of the Year Award in the last two consecutive years • We see Government requesting submissions on energy efficiency as a breakthrough for our country as it will culminate the relentless efforts invested into the industry thus far by the stakeholders

12. 7. The need for an integrated approach to energy efficiency Closer relationships between the various stakeholders and representatives that can enhance the energy efficiency industry: Department of Education, Department of Trade and Industry, Department of Energy, Environmental Affairs, Public Works, Eskom IDM, Tax Incentives, SARS, SABS, Climate Change, SANEDI, University Research and skills development, DBSA, IDC and Donor funding/expectations, etc.

13. 8. History of energy efficiency and the challenges • Dated Energy Efficiency Strategy with little to no focus areas being enforced • Eskom IDM funding - main driving force of energy efficiency in SA -problem: only focusses on removing electricity usage from the national grid, not on managing or replacing other energy sources • SAEE a major driver of energy efficiency but relies on sponsorships from the private sector mostly to get the message out • Other measures, mostly voluntary, driven by Eskom • dti 12i tax incentives - few very large projects • DoE 12L tax incentives - not much happening • Concept of energy efficiency is misunderstood • Quantifying energy efficiency savings is like measuring a ‘void’ and needs specific skills • Exploitation of misinformed end-users places the industry’s development and credibility at risk

14. 9.  Proposed focus areas • Focus on key areas identified from research • Defining facilities or companies using more than a specified energy to appoint an energy manager e.g. one manager for every 1000GJ of energy consumed • Regulations on organizations that consume high levels of energy to: • have an Energy Policy in place that is managed • develop in-house and supplier skills and knowledge on energy efficiency • implement information systems for mandatory energy monitoring and reporting, etc. • market and communicate the energy use, energy efficiency measures taken and the value thereof to in-house and external parties • formally consider investments towards energy efficiency projects • Disallowing inefficient technology use by enforcing regulation/legislation • Subsidising, through taxation, the import of energy efficient technologies • Develop and enforce energy efficiency standards and regulations

15. 10.1  Knowledge and skills Knowledge is the basis for changing behavior, making better choices, saving energy/emissions and sustainable job creation. • Basic level • Teach the basics of energy, the value and the use thereof to all school children • Include schools and teachers in energy efficiency projects being implemented in school buildings and other government buildings • go through the mathematics of the energy efficiency projects being implemented • include carbon savings and how they benefit the environment 

16. 10.2     Tertiary level • Develop a national curriculum to create a new career path ie. Energy Engineer, Energy Manager, Strategic Energy Management in Business, technicians/artisans to specifically support the energy industry, etc. • All study directions/faculties to include some aspects of energy and the efficient use thereof – for instance: • All CA's and accountants to be educated in at least basic energy economics, taxation thereof and the benefits of implementing energy efficiency measures • All engineers (mechanical, chemical, electrical, etc.) and those from the built environment (architects, facility managers, etc.) to be educated with at least the basics of energy efficiency • University research papers related to energy and the efficient use thereof • Energy research centers at universities

17. 10.3Post-education level and up-skilling • HR structures within organizations to acknowledge energy management as a division, just like accounting, purchasing, sales, etc. • Current energy efficiency HR resources drawn from the already dwindling engineering pool: mechanical, electrical, chemical, industrial, etc. • Post-tertiary energy efficiency education and up-skilling needs to span across all employment sectors: accounting, architecture, built environment, civil, mechanical, electrical, industrial, chemical, legal, human resources, banking, insurance, etc. • Skills development on the application, implementation and management of projects and technologies – up-skilling current workforce to apply energy efficiency to all aspects of work and life • Supplier development 

18. 10.4 Education funding Provide funding mechanisms through bursaries, interest fee loans, etc. for: • Developing current skills further at artisan and technical level • Tertiary education with a focus on energy efficiency • Post-tertiary education of current HR resources

19. 11.      Changing human behavior • A  long-term exercise that needs to start now – Germany has been busy for over 30 years • These desired changes could be brought about by: • Continuous awareness campaigns and education • Government support of organizations that create awareness such as the SAEE • Develop and fund education programmes (TV, pamphlets, etc.) to disseminate information • Energy efficiency education should become compulsory as employment introductory training, just like safety • Regulations and standards should be compulsory and policed

20. 12.1      Research and development • Understand what is currently being used • Identify areas and opportunities for energy efficiency and possible savings • The technologies to be focused on that ensures energy efficiency • The skills required to effectively implement measures, manage and report on energy

21. 12.2      Research and development Research should establish: • What energies and how much is being used in the various market sectors, facilities or processes • How do these sectors compare against each other through benchmarking • Comparative processes and the technologies currently in use • The efficiency levels of the technologies currently in use • What technologies exist that are more energy efficient • Obvious areas for improvement or energy savings • Identifying the barriers to changing to more energy efficient technologies

22. 12.3      Research and development Research results should be applied to develop: • A national energy efficiency strategy with clear objectives and action plans • Establish and provide incentives towards users becoming more energy efficient • Establishing and enforcing punitive measures to influence energy efficiency changes required • Technologies to be further researched, developed or manufactured for use in SA and to be exported to neighboring countries • A skills development programme at all levels

23. 13.      Funding (incentive) Mechanisms • Identify funding options • Weigh benefits and disadvantages of each and the influences they have on each other • Government to implement incentives to ensure the most efficient processes and technologies be implemented  • Making use of financial institutions to manage all funds - banks typically have systems, processes and risk management in place • Tax incentives can however be managed through appropriate taxation processes.

24. 14.      Conclusion • Energy efficiency should be positioned as a catalyst for economic growth • A target should be adhered to within the South African energy mix that 38% of generation be from energy efficiency • A new national career path through energy efficiency education will create a new employment sector within organizations funded by the savings made • For instance, sustainable jobs through the energy savings gained from energy efficiency