Mandate

Design integrated solutions to mobilise a culture of energy efficiency to solve complex energy demand issues for a sustainable future for South Africa.

Overview

The Integrated Demand Management division, dedicated to ensuring short-term security of supply, was created in 2010. Eskom has long offered programmes for supporting and funding energy efficiency. Integrated Demand Management integrates previously fragmented activities across the business and positions energy efficiency as a key core business in Eskom for the first time. The division’s initiatives and programmes are all aimed at balancing supply and demand in the short to medium term, and are consolidated and co-ordinated for optimal effect. The division is mandated to drive Eskom’s demand management response to the projected shortage of electricity, and the building of a sustainable, energy-efficient society.

How Integrated Demand Management will achieve its objectives:

• Implement a step change in demand management delivery through an integrated and innovative portfolio of demand management initiatives
• Use Eskom and national resources to deliver the national demand management initiative
• Communicate transparently the extent and nature of the electricity crisis to create acute national awareness to drive the required response
• Partner with stakeholders through a pro-active and collaborative approach to contribute to national energy efficiency objectives.

The National Energy Regulator of South Africa has allocated R5.44 billion to fund these initiatives over three years. Certain initiatives are fully funded, while Eskom contributes to others.

	Highlights			Future priorities
	Achieved the demand and annualised energy savings targets for the year   Successfully concluded the roll-out of over 47 million compact fluorescent lamps in the residential sector nation-wide since the programme began. This has realised an equivalent annual demand savings of 1 958MW for all CFLs verified since inception in December 2003   Accelerated the solar water heating rebate whereby over 10 000 claims are being received and processed monthly   Power Alert continued to drive savings in critical time. During the year average demand savings of 174MW were attained which translated to 44.4GWh of energy savings. During the 2010 FIFA World Cup™ period an estimated demand reduction of 608MW was achieved   Rolled out a massive marketing and communications campaign regarding energy savings.			Implement the energy conservation scheme Step up demand management projects Investigate new opportunities such as efficient downlighters.

 

Benchmarking

Eskom’s compact fluorescent lamp programme is the largest free mass roll-out of compact fluorescent lamps in the world, with over 47 million bulbs distributed.

Mexico and India have large programmes. Mexico’s target is 30 million bulbs. The programme will be in stages, with the first stage targeting only 1 million bulbs. India will be targeting a 400 million bulb project, but it will not be free distribution. It is planned that 85% of the cost of a bulb will be subsidised. The roll-out of 15 million bulbs has started in the Kerala province and is due for completion in mid-2011.

England, Rwanda, Senegal and China have all had smaller compact fluorescent lamp roll-outs of less than 1.5 million bulbs each.

Source: Project Design Document (PDD), CUIDEMOS Mexico (Campana De Uso Intelegente De Energia Mexico) Smart Use of Energy Mexico.

Material issues

The demand market participation programme allows customers with flexible load to contract with Eskom to reduce their load on a year-ahead or day-ahead basis. On any contracted day, Eskom has the right to instruct the participant to reduce their load, if and when needed, as part of Eskom’s contracted reserves for the day. This occurs on Eskom’s instruction during periods of supply constraints. The programme has various categories in which a customer can participate, determined by their unique plant characteristics, response time ability, period they can reduce load, cost implication, etc.

On a daily basis, Eskom compares the cost of these flexible load resources with other resources it has available for the next day, and schedules the required reserves days ahead. The programme is approved by NERSA and has resulted in major benefits to customers and the economy – electricity charges are reduced and load shedding is avoided.

In January 2008, Eskom began developing the power conservation programme on behalf of national government. The programme is to help the Department of Energy create a sufficient reduction in demand to allow for both essential generation plant maintenance as well as economic growth. The gap between available supply and projected electricity consumption is still a major concern, especially for the period 2011 to 2015.

The medium-term risk mitigation team recommended the formation of the energy conservation scheme. The team is a joint technical initiative between government, industry and business, the municipalities and Eskom, established to advise the Department of Energy on the appropriate strategies to address security of supply risks.

Eskom implemented a voluntary energy conservation scheme in July 2008 with its top 250 customers. The scheme has been developed to align as closely as possible with the envisaged regulatory scheme and also has an allocation management system to help customers load their baselines and manage their monthly allocations. Since the start of the programme, 134 customers have accepted their baselines and an energy saving of about 5% has been achieved.

The mass implementation of compact fluorescent lamps was concluded in 2010/11. Since the inception of the DSM programme in December 2003 over 47 million bulbs have been installed country-wide in the residential sector, realising demand savings of 1 958MW. An exchange programme swapped about eight million compact fluorescent bulbs with incandescent bulbs at exchange points in high public traffic areas.

South Africa has one of the highest incoming solar radiation levels in the world, making it a prime candidate for solar water heating. It is an ideal solution for households and has industrial and commercial applications. Eskom’s solar water heating programme offers a rebate to customers to use solar power instead of electricity to heat water. Customers can either replace existing electrically heated geysers with solar heated systems or they can install low-pressure solar water heating systems to replace water heating via other electrical appliances.

A decrease in the rebate was announced in April 2011 in order to extend the available funds as far as possible while supporting the manufacture of systems locally.

The revised rebate gave momentum to the sales of solar water heating systems. Some 60 183 claims were received, of which 41 690 were paid. Of these, 28 612 claims (13 147 high-pressure systems and 15 465 low-pressure systems) were submitted to Energy Audits for measurement and verification. Units not verified this financial year will be verified in 2011/12.

Refer to www.eskom.co.za/annreport11/014.html for information about other energy saving tools and schemes being promoted by Eskom.

 

An extensive marketing and communications strategy has been implemented, strengthening relationships with customers, municipalities and the public. Various campaigns have been launched, using advertising (print and radio), public relations (including media) and community activation and education.

Refer to www.eskom.co.za/annreport11/015.html for information about marketing and communications campaigns.

Current performance

Since 2004, when demand-side management projects were initiated and measured, the demand savings in the evening peak (18:00 to 20:00) have risen in line with the growing requirement for demand reduction. Integrated Demand Management has used energy services company-related projects in the industrial, mining, and commercial sectors of the economy in addition to hot water load management within the municipal environments.

The accumulated verified demand savings, for the combined financial years 2005 to 2011, is 2 717MW. A single power station generator unit contributes approximately 600MW to the national grid and therefore DSM has “freed up” more than four generators (a typical power station has six) in the past four years.

Verified accumulated demand savings (MW) against the accumulated
Eskom target per year.

The total Eskom evening peak demand savings achieved over the period is 354.1MW against the Eskom target of 301MW (2010: 372MW). This includes 345.1MW^RA verified for NERSA and Department of Energy funded projects and 9MW for a project implemented through the DSM advisory service policy. The annualised energy savings for this financial year are 1 339GWh against the target of 994GWh. These results are made up as per the table below:

	Programme category		Savings achieved   (MW)
	Residential lighting		199.1
	Water heating load management		31.7
	Compressed air systems		41.9
	Industrial process optimisation		73.1
	Commercial and industrial lighting and air-conditioning		2.1
	Solar water heating		5.9
	Heat pumps		0.3
	Total		354.1

 

The following expenditure for the financial year was incurred on the above programmes:

	Programme category		R million
	Residential lighting		47
	Water heating load management		25
	Compressed air systems		98
	Industrial process optimisation		70
	Commercial and industrial lighting and air-conditioning		40
	Solar water heating		225
	Heat pumps		40
	Total		545