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Efficient Lighting Initiative (South Africa) - A Presentation to the Portfolio Committee on Minerals and Energy

This presentation outlines Bonesa Electric's implementation of the Efficient Lighting Initiative (ELI) program in South Africa. It discusses the company background, ELI goals, benefits, a practical example, and the way forward. The presentation emphasizes the positive impact of ELI on the energy sector, society, and the environment.

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Efficient Lighting Initiative (South Africa) - A Presentation to the Portfolio Committee on Minerals and Energy

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  1. Efficient Lighting Initiative (South Africa) A Presentation to the: Portfolio Committee on Minerals and Energy (30 August 2001) Given by: Barry Bredenkamp Bonesa Electricity (Pty) Ltd

  2. PRESENTATION OUTLINE • Bonesa – the company; • Background information; • ELI goals; • Benefits; • Practical example; • The way forward; • Conclusions.

  3. BONESA – THE COMPANY Bonesa is the local implementing agency established to implement the SA-component of an ELI-programme in 7 developing countries, worldwide. It is funded by Eskom (R48.8 million) and GEF through the IFC (US$2.5 million) and is made up of three local partners, (TSI (EE), Umongi-Karebo and Africon Engineering).

  4. Background • 1997 - Global Environment Facility (GEF) granted US$225 000 to Eskom to conduct a feasibility study on the ELI; • Eskom matched the funding; • The ELI recommendations were based primarily on the Eskom ISEP: • peak demand reduction targets • ‘window of opportunity’ ito emerging market - build in efficiency;

  5. Background (cont’d) • Eskom support based on ISEP objectives - peak demand reduction (820MW by 2019), & associated environmental benefits; • Estimated net present value saving in avoided utility costs of approximately R990 million over 20 years; • Medium term - funding for similar projects a strong possibility - allow for flexibility and permanence in expanding the role of the implementation structure (LIA).

  6. Feasibility Study Completed • Draft ELI Business Plan completed; • Identified barriers to market entry; • Examined consumer behaviour; • Determined strategies for programme implementation: • Organisational: structures required for implementation; • Financial: finance needed to implement; • Economic: viability of the programme.

  7. Agreements Reached • GEF committed grant funding of US$2.5 million to the LIA (Bonesa) to implement the ELI; • Eskom Management Board approved three-year funding for ELI,to meet ISEP targets; • Eskom Enterprises (Pty) Ltd agreed to the establishment of the LIA; • Implementation of programme through a BEE JVC - Bonesa.

  8. ELI Goals • Increased penetration of energy efficient lighting technologies to meet ISEP target of peak demand reduction; • Improve customer service through reduced electricity bills; • Capacity building and skills transfer; • Conserve the environment through reduced greenhouse gas emissions and reduced consumption of water at power stations; • Support the African Renaissance, through job creation and poverty alleviation.

  9. Benefits of ELI:Benefits to Eskom - Major • Meet the ISEP target of 820 MW peak demand reduction by 2019; • Net benefits through avoided capital and operating supply costs (G, T & D); • Affordable electricity for all sectors of society; • Education and capacity building; • Positive contribution to socio-economic factors affecting the country; • Increased access to energy.

  10. Benefits of ELI:820 MW

  11. Benefits of ELI:Benefits to Eskom -Secondary • Medium term opportunities - aggregate solutions and replicate elsewhere; • Expected reduction in non - payment; • “Take - back” effect; • Lower risk of under-utilised assets; • Improved customer focus.

  12. Benefits of ELI:Benefits to Customer • Affordable and increased access to energy; • Contribution to poverty alleviation.

  13. Benefits of ELI:Benefits to Environment These benefits are vitally important, in terms of South Africa hosting the World Earth Summit in 2002.

  14. Benefits of ELI:Benefits to Munics & Developers • Benefits to Municipalities: • Avoided network capital, operating and maintenance savings; • Avoided bulk purchase cost. • Benefits to Developers: • Avoided infrastructure costs.

  15. Benefits of ELI:Benefits to South Africa • South African society to benefit from the sum of the above benefits; • Less capital will be used in building additional networks as CFLs will penetrate the market; • Black economic empowerment and SMME-opportunities will increase; • Socio-economic benefits relating to poverty alleviation, and access to affordable energy.

  16. All Africa Games Village – A Practical Example

  17. Targets – The Way Forward • Target for 2001: 266 000 additional CFLs in SA market, (500 000 sold ‘Y-T-D’); • Introduction of “Efficient Lighting” into curricula of Schools and Tertiary Institutions; • Contribute towards EBSST – poverty alleviation; • Help identify and retrofit needy institutions, eg. supporting healthcare and the elderly; • Assist in establishing new retail outlets – job creation.

  18. Conclusions • The energy sector stands to benefit greatly from ELI - from a strategic ISEP as well as from a profitable business perspective; • South Africa will benefit in terms of the following criteria: • Innovation; • Effectiveness; • Poverty impact; • Sustainability; • Replicability. • Future opportunities could be opened up through this initiative - similar programmes in SA or by replicating the ELI in other developing countries.

  19. Conclusions (cont’d) • Positive benefits for ALL! • Win-win situation; • Utility does not loose; • Economy gains; • Innovation encouraged; • Customer benefits.

  20. Thank you Discussions and/or Questions?

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