South African National Energy D evelopment Institute (SANEDI) S trategic 5-year plan

1. South African National Energy Development Institute (SANEDI) Strategic 5-year plan 2012/13 – 2016/17 Energy Efficiency A corporation established under Section 7 of the National Energy Act, 2008 (Act No. 34 of 2008)

2. SANEDI energy efficiency is an intrinsic part of SANEDI’s overall contribution towards energy development in South Africa 1

3. SANEDI’s Energy Efficiency programme is well positioned to accelerate a move towards a resource, and particularly an energy (including gas, liquid fuels, electricity and water), efficient society. Strategic outcome orientated goal 1 Strategic outcome orientated goal 2 Strategic outcome orientated goal 3 Enable well Informed and high confidence energy planning, decision-making and policy development Accelerated transformation to a less energy and carbon intensive economy Foster a culture of greater efficiency and more rational use of energy South African Energy Development Institute

4. For SANEDI to maintain an independent and authoritative role as envisaged by the Department of Energy (DoE) and to provide comprehensive supportto the Department’s energy efficiency (EE) policy initiatives, a strategic shift in the entire energy efficiency landscape is necessary. South African Energy Development Institute

5. SANEDI believes it can add value to this process, by addressing the following Strategic Objectives 2

6. Six objectives have been prioritised to receive immediate focus energy efficiency champion energy efficiency in public buildings energy efficiency awareness energy efficiency technologies EEDSM HUB energy efficiency tax incentive South African Energy Development Institute

7. SANEDI has a critical role to champion Energy Efficiency in South Africa Objective: Assert SANEDI’s Energy Efficiency ‘Champion’ role, in order to play a significant (positive) integration role in the current (fragmented), market and thereby ensuring a positive impact on those activities aimed at improving the security of energy supply in the country, (addressing all energy carriers and not only electricity efficiency, as is predominantly the current case). Portfolio Committee Support/ Input Required: Support for SANEDI to fulfil this mandate and engage relevant ‘external’ stakeholders, to accelerate this activity in the country. South African Energy Development Institute

8. SANEDI can play a crucial role in eventually moving Energy Efficiency in public facilities from ‘intent’ to ‘action’ Objective: Target an annual reduction in energy consumption of 250 GWh and 250 tCO2e GHG emissions in public facilities by 2017 Portfolio Committee Support/ Input Required: Support for SANEDI’s recommended approach to sustainably fund this initiative. South African Energy Development Institute

9. An Example: Utilising a dedicated programme management office, focused on implementation and supported by due governance structures Key stakeholders (Representation on Steering Committee) Government (DPW) Government (DoE) Eskom CEF/NEEA Others (as identified) Verified savings (Technical representation from Stakeholders and SMEs) Technical Review Committee Programme Management Office Appointed independent Auditors Technical oversight Ad hocSubjectMatter Experts Efficiency UpgradeProgramme (technical) Education and Awareness Campaign Report on certified savings Implementation Programme SANAS Accredited M&V body CMVP CertifiedSavings EE Upgrade EE Upgrade EE Upgrade EE Upgrade EE Upgrade Projects Projects Projects Projects Projects South African Energy Development Institute

10. SANEDI offers a significant contribution to the goal of radically increasing energy efficiency awareness levels in South Africa Objective: Improve general awareness levels** across all sectors by 5% by 2015 relative to a 2012-baseline, in support of the revised National Energy Efficiency Strategy. ** awareness scope i.e. recognition of the need to save energy, how to save energy, change in behaviour, etc. Portfolio Committee Support/ Input Required: Advice on the demarcation of clearly identified roles and responsibilities for this core activity, ie internal/ external communications, ‘political’ vs ‘non-political’ messaging, etc.. South African Energy Development Institute

11. Working towards a future where energy efficient technologies are readily available and the preferred choice for South Africans Objective: Achieve a 10% real increase (over and above existing trends), in sales of selected energy efficient and green technologies by 2017, in support of DoE Policy-initiatives, such as ‘Appliance Labelling’. Portfolio Committee Support/ Input Required: Comment on the proposed target and technologies/ sectors to initially focus on. South African Energy Development Institute

12. Effectively administering available tax incentives for optimal national benefit Objective: Support the Income Tax Amendment Act (Sections 12I and 12L), relating to the tax rebate for energy efficiency improvements, through the provision of an assurance and M & V function on behalf of key government stakeholders, (DoE, NT, dti and SARS). Optimise the use of data received in a national repository, developed and established for this purpose. South African Energy Development Institute

13. Achieve maximum national benefits from energy efficiency research, innovation and skills development (EEDSM Hub) • Objective: • Evolve the Energy Efficiency Hub into a fully-fledged ‘Centre’, to strengthen energy-related research, human capital development, market transformation and enterprise development initiatives. • These activities will be tracked against a comprehensive set of KPIs, with the following targets by 2014/15: • Number of journal publications: 16; Number of conference papers: 26; Number of registered students: 105; Number of Graduates: 27; Number of modules/short courses offered: 45; Number of externally funded projects: 40; External funding: R3.1m; Female student ratio: 21%; PDI ratio: 55%. Portfolio Committee Support/ Input Required: The utilisation of this national asset/ resource, to assist the DoE PC in its work. South African Energy Development Institute

14. Afforded the opportunity, SANEDI(Energy Efficiency), can play a meaningful role and have a significant impact on the drive to transform South Africa towards a more energy efficient society, with potentially large social, economic and environmental benefits that are commonly associated with energy efficiency activities, globally. conclusion South African Energy Development Institute

15. Short-term focus and APP 3

16. For 2012/13 five activities have been identified as the initial focus towards realising these strategic objectives 1. EE Champion 2. Public Facilities 3. EEAwareness 4. EETechnology 5. EE Tax Incentives 6. EEDSM Hub Activity 1: Public advocacy ✔ ✔ ✔ Activity 2: Measurement and Verification ✔ ✔ Activity 3: Demand-side energy diversification ✔ ✔ ✔ ✔ Activity 4: Ad hoc project development and technical support ✔ ✔ ✔ Activity 5: International collaboration ✔ ✔ ✔ ✔ ✔ South African Energy Development Institute

17. Specific targets have been set for each of these activities for the year Baseline 2012/13 Target Objective Activity 1: Public advocacy Activity 2: Measurement and Verification Activity 3: Demand-side energy diversification Activity 4: Ad hoc project development and technical support Activity 5: International collaboration South African Energy Development Institute

18. thank you 3