Municipalities & National SWH Programme

Report
NATIONAL SOLAR WATER HEATING PROGRAMME
Presented by: Mr. Khanyiso Zihlangu
Municipal Infrastructure Summit 2012, Birchwood Hotel, Ekurhuleni, Gauteng.
Date: 26 October 2012
1
Overview of the RSAOUTLINE
electricity industry sources of power
1. INTRODUCTION
2. PROGRAMME OBJECTIVES
3. INSTALLATIONS UPDATE
4. LESSONS LEARNED
5. PROGRAMME IMPLEMENTATION STATUS
6. SOME FREQUENTLY ASKED QUESTIONS
7. MUNICIPALITIES INVOLVEMENT
8. CLOSING REMARKS
2
1. INTRODUCTION
3
Commitment, Funding, Expected Outputs

DoE’s SWH commitment:
•
The Department of Energy (DoE) remains resolute in its
commitment to ensure that 1 million SWHs are installed in SA by
the close of the 2014/15 financial year.

Available funding:
•
The funding allocation (R4.7bn) announced by the Finance
Minister during the 2012 Budget Speech is a clear indication of the
Government’s commitment to achieving the stated SWH target.

Some expected programme outputs:
•
Amount of energy saved (TWh) & demand reduced (MW); Tons of
carbon saved; Number of SWHs installed; Number & types of jobs
created; Amount of local content achieved; etc.
4
2. PROGRAMME OBJECTIVES
5
Both Macro-economic & Electricity Supply-Demand Balancing

Some Government’s SWH Objectives:
•
Contribute towards reducing electricity usage attributed to water
heating;
•
Contribute towards the reduction of unwanted greenhouse gas
emissions;
•
Cushion the poor from the rising electricity prices;
•
Widen residential access to hot water, through SWH, in South
Africa;
•
Facilitate
the
creation
of
large
scale
SWH
equipment
manufacturing in South Africa;
•
Create jobs particularly within benefitting communities; and
•
Contribute towards improving local skills.
SWH contribution towards achieving the Government’s broader developmental objectives
6
3. INSTALLATIONS UPDATE
7
Provincial Footprint of Installations
PAID & RECEIVED INSTALLATIONS: JAN'08 - 05 OCT'12
350,000
303,986
300,000
250,000
200,000
150,000
87,659
100,000
50,000
28,651
2,889
7,435
8,644
42,502
52,464
61,277
33,776
12,465
0
8
4. LESSONS LEARNED
9
A Case of DoE-Funded Projects (Part I)

Key lessons for the DoE:
•
In implementing the fiscus-funded projects, invaluable lessons
have been drawn and are regarded as central to a successful
SWH programme rollout going forward.
•

Planning is the key to a successful programme.
Experience that can be drawn from the previous projects:
•
Conducting a quick scan of a targeted area to assess the
appropriateness of installing SWHs in the area should be an
integral part of the programme rollout.
•
The quick scan should be followed by a detailed feasibility study
that confirms aspects such as water reticulation status (water
connections inside the dwellings), roof integrity, security of water
supplies, drainage, orientation of houses, skills set of the area, etc.
10
A DoE-Funded Projects Case (Part II)

Experience that can be drawn from the previous projects:
(cont’)
•
Whoever undertakes site assessment must have enough technical
strength to properly evaluate a site for application of SWH.
•
Adherence to product and installation standards should be
maintained at all times.
•
Measures must be put in place to monitor installations real time;
•
Training of all members of the team (installers, inspectors, sales) is
vital.
•
Only plumbers with relevant SWH installation skills must supervise
SWH installations and certify installed systems so as to hold the
certifying plumbers liable for any sub-standard work.
11
A DoE-Funded Projects Case (Part III)

Experience that can be drawn from the previous projects:
(cont’)
•
The relatively small size of the South African market cannot
support a proliferation of highly varied SWH technologies.
•
To create opportunities for small-scale companies whilst enabling
localisation of the SWH technology, contracts for Suppliers,
Installers, and Maintainers must be separated.
•
Demand can be created by providing information and education
(grass-roots publicity) about the benefits of the technology to
homeowners particularly the high-use electric water heating
customers.
12
5. PROGRAMME IMPLEMENTATION STATUS
13
Key Programme Implementation Milestones (Part I)

Programme funding legislation:
•
SWH funds have been exclusively and specifically appropriated to
Eskom via the DoE Vote – Appropriation Act, 2012 (Act No. 12
of 2012).

Inter-Governmental coordination:
•
Cabinet mandated SWH Project Steering Committee was set up.
•
Municipalities’ participation in the PSC is meant to be facilitated
through SALGA as one of the participants.

Transitional arrangements in place:
•
Currently rolling out the remnants of the DoE-funded projects
(under the previous MTEF allocation).
•
Rebate programme is set to continue until end Dec’12.
•
To introduce a differentiated rebate until the new approach gains
momentum.
14
Key Programme Implementation Milestones (Part II)

Contractual arrangements:
•

Signing of the DoE-Eskom funding contract is imminent.
SWH Request for Information:
•
The DoE urges municipalities to promptly respond to an RFI
issued & placed on the departmental website on 22 October 2012.
•
RFI objectives: Assess households’ SWH readiness to participate
in the programme, and to guide tentative allocations of SWH units
to municipalities which will later be confirmed after conducting
detailed feasibility studies.

Facilitating localisation of the SWH technology:
•
the dti has completed in investigation into the feasibility of SWH
Industry Designation – a legal instrument for setting minimum local
content thresholds.
15
Key Programme Implementation Milestones (Part III)

Education, awareness & information dissemination:
•
To be led by the DoE in collaboration with its Partners (beneficiary
municipalities, Eskom, SANEDI, GIZ, participating supply &
installation companies, communities, et al.).

SWH monitoring system:
•
Developing a web-based (real-time) SWH installations and
performance monitoring system through the German Agency for
Technical Cooperation (GIZ) support.

Conclusion of programme implementation planning:
•
The Department is at the terminal stages of fully executing the
programme and is determined to only allow bulk procurement (for
economies of scale benefit ) of systems that have been approved
by the South African Bureau of Standards.
16
6. SOME FREQUENTLY ASKED QUESTIONS
17
Persistent Questions (Part I)

How can municipalities access the DoE funds?
•
Municipalities need to submit the data requested through the RFI;
•
This FY, the DoE will make allocations on the basis of the received
household data as well as the need to redress the imbalanced
provincial & municipal spread of current installations.
•
As the municipalities’ capacity to deal with SWH develops, a
process of applying for funds will be clearly communicated.

What
criteria
are
likely
to
be
used
for
municipal
allocations?
•
Over and above the socio-economic status of a municipality, other
considerations could be those issues that indicate, at face value,
the applicability of the SWH technology in an area selected by the
municipality – refer to the RFI Questionnaire.
18
Persistent Questions (Part II)
•
Funds permitting, the 1st prize for the DoE is to switch every
household to SWH in a selected area. If not, indigents will be
prioritised.

Who will be responsible for the procurement of SWHs?
•
As mandated by the 2012 Appropriation Act, Eskom will be the
programme Procurer up until such time the funding legislation
proposes
otherwise
or
the
entire
EEDSM
Institutional
Arrangements, once finalised, change the participants’ roles.
•
Eskom will implement the programme under supervision of the
DoE and the PSC.

Who receives and addresses SWH enquiries at the DoE?
•
Departmental officials listed on the SWH RFI document are Mr.
Xolile Mabusela, Mr. Khanyiso Zihlangu, & Mr. Maphuti Legodi.
•
Further, emails can be sent to [email protected]
19
7. MUNICIPALITIES INVOLVEMENT
20
What can Municipalities do?

What can Municipalities do to aid the national SWH rollout?
•
Select SWH ready areas in line with their priorities;
•
Select targeted beneficiaries if not every household can be
connected to SWH;
•
Provide inputs into the feasibility study;
•
Ensure that all SWH components used by suppliers are indeed on
the municipalities’ list of permitted plumbing components;
•
Assist with selecting local labour through community structures;
•
Mobilise & support local SMMEs & Cooperatives to be able to
actively participate in the programme;
•
Build their internal capacities such that they become equal
participants in the country's EEDSM drive; and
•
Review and support the marketing and communication activities
21
8. CLOSING REMARKS
22
Brighter Future ahead for the South African SWH Sector
•
South African SWH landscape is changing and this presents a
significant opportunity for municipalities to play a key role which will be
firmed up together with municipalities.
•
Within a short period of time, municipalities will need to build internal
capacity to be able to seize the anticipated SWH opportunities.
•
So long, the DoE humbly urges municipalities not to appoint or
mandate service providers (conclude MoUs) to implement SWH in their
areas particularly if this is done only with the hope of later requesting
funds from the DoE or of accessing the rebate funds.
•
Participation of locals in the programme ought to be maximised as far
as reasonably possible.
•
The DoE remains unwavering on ensuring that SA does not only rely
on imports to meet its SWH targets but manufactures most of the
components domestically – a pre-condition for supplier participation in
the programme.
23
THANK YOU
24
CONTACT DETAILS
Mr. Khanyiso Zihlangu
South African Department of Energy
Email: [email protected]
Tel: +27 12 406 7651
Fax: +27 12 323 5819
Mob: +27 76 411 1219
25

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