Eskom Energy Efficiency Programmes

1. Eskom Energy Efficiency Programmes Monkwe Mpye Eskom DSM Manager

2. Overview • Introduction • DSM strategy • Eskom energy efficiency programs • CFLs • SWH • Energy efficient electric motor

3. Demand Profiles Evening peak-to-date: 35 931 MW (14th July 2008) !!!

4. Over the Years?

5. Residential Sector DSM 3-Year Plan Notes • The most cost effective technologies are Energy Efficient Lighting (CFLs), Aerated Showerheads and Smart Metering (limited to 20 Amps) • Household Cooking conversion to gas is primarily constrained by the cost and availability of gas. • Solar Water Heating (SWH) is constrained by lack of supplier capacity and higher costs. Key: Bubble Size: GWh Savings Incentivised Programmes Priority Areas 1. 5 Source: Avoided Generation Cost Model; Team Analysis

6. Commercial Sector DSM 3-Year Plan Notes • All technologies within the Commercial Sector are cost efficient. Key: Bubble Size: GWh Savings Incentivised Programmes Priority Areas 1. 6 Note: Scale not standardised relative to other sectors Source: DSM Cost Model; Team Analysis

7. Industrial Sector DSM 3-Year Plan Notes • The Total Avoided Costs and the Project Costs per kWh for the Industrial Sector initiatives are nearly identical. • Motor system efficiency initiatives however provide most MW savings and should therefore be the primary focus area of the sector. Key: Bubble Size: GWh Savings Incentivised Programmes Priority Areas 1. 7 Note: Scale not standardised relative to other sectors Source: DSM Cost Model; Team Analysis

8. CFL Programs 2006: 5.3 mil (CT) 2.5 mil (national) 2008:20 684 CFLs Defence department 2008/2009:16.8 mil (national) 2007: 4.5 mil (national) 1999: Bonesa/Eskom/GEF Customer education, advertising, and marketing. 2008: 0.7 mil Retail program, national Game, PnP, Shoprite 2004/2005: 5 mil (national) 2008: 1.3 mil Corporate program Large customers + Eskom staff

9. CFL Rollouts: 2008/9 and Beyond An estimated 15,750 temporary jobs will be created to support the 2008/9 roll out

10. Solar Water Heater Business Objective To replace (or install in series) approximately 900 000 geysers over the 5 years that will result in a saving of approximately 578MW. • Rebate process • Residential customers or developers who buy an accredited system from an accredited supplier and use an accredited installer can claim a rebate from the facilitating auditors • Criteria apply, the most NB that the electrical geyser be disabled Industrial and commercial customers to be included in programme by end of the year • Progress to date • 20 accredited SABS tested suppliers and 14 registered distributors • R 1.8-million rebates paid to date – an average of R 4 327 per installation • Greatest uptake in Gauteng 266 , KwaZulu Natal 86

11. Motor Systems • Electric motors ubiquitous in industry • Globally, motor systems account for ~40 % of industrial electricity • SA: ~ 60 % • US: ~ 60 % • India ~ 50 % • Korea ~ 50 % • Application (SA) • Pumps (largest) • Fan systems • Compressed air systems • Conveyors

12. Motor Program General Conditions • Launched in Nov. 2007 • Aim: Replace 5100 motors with Eff 1 type • Estimated savings 2.48 MW • Slow start up • Gaining momentum, 200 motors replaced to date • Not enough to make the desired impact

13. ESKOM DSM Project Manager Facilitating M&V Auditors Metal Energy Efficient Motor End - users Recovery Suppliers Shops The Model Awareness ESKOM DSM ESKOM DSM Project Manager Project Manager Facilitating Facilitating Technical M&V M&V Commercial Auditors Auditors Metal Metal Energy Efficient Motor Energy Efficient Motor End End - - users users Recovery Recovery Suppliers Suppliers Shops Shops

14. Thank You! Comments and Questions www.eskomdsm.co.za