Renewable Energy Strategy. for the. North West Province. Department. Economic Development, Environment, Conservation and Tourism.

Transcription

1 Renewable Energy Strategy fr the Nrth West Prvince Department f Ecnmic Develpment, Envirnment, Cnservatin and Turism December 2012

2 Frewrd Frewrd t be requested and inserted, either frm the Premier f the NWP, Hn Thandi Mdise, r a suitable representative frm the NWPG: DEDECT. i

3 EXECUTIVE SUMMARY The renewable energy strategy fr the Nrth West Prvince was develped in respnse t the need f the Nrth West Prvinces t participate meaningfully within the renewable energy sectr f Suth Africa. The Premier f the Nrth West Prvinces, Hn Thandi Mdise, has cnsequently made a declaratin that Nrth West Prvinces will develp a Prvincial Renewable Energy Strategy that will prvide guidance t stakehlders and assign rles and respnsibilities fr the develpment and prductin f renewable energy in a sustainable manner acrss the Nrth West Prvince. The renewable energy strategy aims t imprve the Nrth West Prvince s envirnment, reduce the Nrth West Prvince s cntributin t climate change, and alleviate energy pverty, whilst prmting ecnmic develpment and jb creatin in the prvince whilst develping its green ecnmy. There are a number f internatinal, natinal and prvincial mandates and driving frces that play a pivtal rle in the develpment f this renewable energy strategy fr the Nrth West Prvinces. These include the fact that Suth Africa was ranked the 12th largest emitter f CO2 emissins in 2009 and has cmmitted t reduce its greenhuse gas emissins by 34% by The Nrth West is rated as the furth largest electricity cnsuming prvince in Suth Africa and cnsumes apprximately 12% f the available electricity. This is mainly due t the high demand f the electrical energy-intensive mining and related industrial sectr. Apprximately 63% f the electricity supplied t the Nrth West Prvince is cnsumed in its mining sectr. The intrductin and adptin f the New Grwth Path in Suth Africa has seen increased emphasis twards develping and grwing the green ecnmy within the cuntry, supprted amng thers, by the Industrial Plicy Actin Plan (IPAP2) f 2010 and revised Integrated Resurce Plan (IRP2). Natinally, there is als a White Paper n Renewable Energy which has been adpted by Parliament. Varius funding mechanisms and prgrammes related t renewable energy have als been cnsidered. One f these, the Independent Pwer Prducer Prcurement Prgramme cntributes substantially twards sci-ecnmic and envirnmentally sustainable grwth. It is als aimed at stimulating the renewable energy industry in Suth Africa. This prgramme has pened the market fr RE substantially in Suth Africa and hlds sustainable ptential fr the Nrth West Prvince. The Green Energy Efficiency Fund supprts the intrductin f self-use renewable energy technlgies. Als available are the Suth African Renewables Initiative and the Renewable Energy Market Transfrmatin Prject. There are als a number f mechanisms that supprt renewable energy prductin linked t dmestic manufacturing and the use f green technlgies such as the Manufacturing Cmpetitiveness Enhancement Prgramme. The Slar Water Heater Rebate prgramme is als ne f the well-knwn mechanisms currently active. Suth Africa has an abundance f renewable energy resurces available. The applicability f these RE resurces depend n a number f factrs and are cnsequently nt equally viable fr the NWP. The renewable energy surces that were identified t hld the mst ii

4 ptential and a cmpetitive strength fr the Nrth West Prvince are Slar Energy (phtvltaic as well as slar water heaters), Municipal Slid Waste, hydrgen and fuel cell technlgies, bi-mass, and energy efficiency. This strategy attempts t fcus the effrts f all stakehlders and prvides a fundatin t make the Nrth West Prvince a primary cntributr twards the renewable energy sectr within Suth Africa. iii

5 ABBREVIATIONS AND ACRONYMS BEE DEDECT Turism DOE EEDSM ESCO GHG GW GWh HPSWH IAP IDC IDM IPAP2 km 2 kwh INW IPAP IPP IRP IRP2 km LPSWH m 2 MB MJ MW NECSA NERSA NWP NWHTL NWPG Black Ecnmic Empwerment Department f Ecnmic Develpment, Envirnment, Cnservatin and Department f Energy Energy Efficiency and Demand Side Management Energy Service Cmpanies Greenhuse Gas GigaWatt GigaWatt-hur High pressure slar water heater Invasive alien plants Industrial Develpment Crpratin Eskm Integrated Demand Management Revised Industrial Plicy Actin Plan Square kilmeter (Area) Kilwatt-hur Invest Nrth West Industrial Plicy Actin Plan Independent Pwer Prducers Integrated Resurce Plan Revised Integrated Resurce Plan kilmeter Lw pressure slar water heater Square meter (Area) Megabyte(s) Mega jule Megawatt Suth African Nuclear Energy Crpratin Natinal Energy Regulatr f Suth Africa Nrth West Prvince Nrth West Huse f Traditinal Leaders Nrth West Prvincial Gvernment iv

6 NWRESC PGM PGMDF PV RE REPG SAPVIA SASTELA SMME SWH the dti TJ WFW Nrth West Renewable Energy Steering Cmmittee Platinum grup metals Platinum Grup Metals Develpment Fund Phtvltaic Renewable Energy Renewable Energy Pwer Generatin Suth African Phtvltaic Industry Assciatin Suthern Africa Slar Thermal and Electricity Assciatin Small, Medium and Micr Enterprises Slar Water Heater The Department f Trade and Industry TeraJule Wrking fr water v

7 DEFINITIONS AND TERMINOLOGY RENEWABLE ENERGY ENERGY EFFICIENCY Energy generated frm renewable surce rati f ther quantitative relatinship between an utput f perfrmance, service, gds r energy, and an input f energy vi

8 CONVERSION TABLE Weights and Measures (Metric and Internatinal Systems) Gcal : Gigacalrie (106 kcal); (1 MWh = 0,86 Gcal ) GJ : Gigajule (109 Jule); (1 MWh = 3,6 GJ; 1 GJ = 0,0341 tce; 1 GJ = 0,0239 te) h : hur(s) kw : kilwatt MW el : Megawatt electric (1.000 kilwatts) MW th : Megawatt thermal (0,86 cal/h) tce : tn f cal equivalent (7*106 kcal r MJ r 8,14 MWh) te : tn f il equivalent (107 kcal r MJ r 11,628 MWh) vii

9 Cntents EXECUTIVE SUMMARY... II ABBREVIATIONS AND ACRONYMS... IV DEFINITIONS AND TERMINOLOGY... VI CONVERSION TABLE... VII 1 OVERVIEW OF THE NORTH WEST PROVINCIAL RENEWABLE ENERGY STRATEGY THE CONTEXT OF THE RENEWABLE ENERGY STRATEGY STATEMENT OF THE PROBLEM PROJECT OBJECTIVES CHALLENGES BACKGROUND AND CONTEXT FOR RENEWABLE ENERGY IN SOUTH AFRICA INTERNATIONAL PERSPECTIVE NATIONAL MANDATE The Cnstitutin The White Paper n the Energy Plicy f the Republic f Suth Africa The Recnstructin and Develpment Prgramme Grwth, Emplyment and Redistributin Macrecnmic Strategy The Integrated Sustainable Rural Develpment Strategy The White Paper n Renewable Energy f the Republic f Suth Africa The Natinal Energy Efficiency Strategy Integrated Energy Plan Integrated Natinal Electrificatin Plan New Grwth Path Green Ecnmy and Green Ecnmy Accrd Natinal Develpment Plan Green Jbs Integrated Resurce Plan viii

10 Industrial Plicy Actin Plan Natinal Climate Change Respnse Strategy and White Paper The Department f Energy Natinal Energy Regulatr f Suth Africa Integrated Energy Centres PROVINCIAL CONTEXT Natinal targets and cmmitments Rural electrificatin Nrth West Prvince Huse f Traditinal Leaders Health Gender and energy Black ecnmic empwerment and jb creatin Jb creatin Public Awareness MOTIVATION FOR RENEWABLE ENERGY NORTH WEST PROVINCE RENEWABLE ENERGY STATUS QUO RENEWABLE ENERGY SOURCES, APPLICATIONS AND POTENTIAL Slar Energy Bimass and Waste-t-Energy Bifuels Fuel Cell Technlgies Wind Energy Hydrpwer Marine Pwer Gethermal Cgeneratin Energy efficiency ix

11 4 STRATEGY DEVELOPMENT PURPOSE AND STATEMENT OF INTENT Strategic Gals and Objectives Targets RENEWABLE ENERGY SUPPLY OPTIONS FOR NORTH WEST Start Nw Optins Slar Water Heaters Bi-Mass (Clean Ck Stves) Energy Efficiency and Energy Service Cmpanies Municipal Slid Waste Slar Phtvltaic Technlgies Cgeneratin and Waste Heat Recvery Hydrgen and Fuel Cell Technlgies ESSENTIAL ELEMENTS OF RENEWABLE ENERGY OPTIONS FOR THE NORTH WEST Sustainable Develpment Issues Renewable Energy Prgrammes and Funding Mechanisms Legal Cntext INSTITUTIONAL ARRANGEMENTS TECHNOLOGY AND INFRASTRUCTURE DEVELOPMENT OPTIONS RELEVANT TO THE NORTH WEST PROVINCE Presidential Infrastructure Crdinating Cmmittee AWARENESS AND CAPACITY BUILDING IMPLEMENTATION PLAN LEVELS OF RESPONSIBILITY OVERCOMING THE CHALLENGES INSTITUTIONAL SUPPORT BIBLIOGRAPHY x

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13 1 OVERVIEW OF THE NORTH WEST PROVINCIAL RENEWABLE ENERGY STRATEGY 1.1 The Cntext f the Renewable Energy Strategy The renewable energy (RE) strategy fr the Nrth West Prvince (NWP) was develped in respnse t the need f the NWP t participate meaningfully within the renewable energy sectr f Suth Africa. The Premier f the NWP, Hn Thandi Mdise, has cnsequently made a declaratin that NWP will develp a Prvincial Renewable Energy Strategy that will prvide guidance t stakehlders and assign rles and respnsibilities fr the develpment and prductin f renewable energy in a sustainable manner acrss the NWP. The Department f Ecnmic Develpment, Envirnment, Cnservatin and Turism (DEDECT) f the Nrth West Prvincial Gvernment (NWPG) have the mandate f ccrdinating issues that address the envirnment and cnservatin. This department has cnsequently been given the respnsibility t develp the Prvincial Renewable Energy strategy and plan with technical and prject management supprt frm the Industrial Develpment Crpratin (IDC). The Renewable energy strategy aims t imprve the NWP s envirnment, reduce the NWP s cntributin t adverse climate change, and alleviate energy pverty, whilst prmting ecnmic develpment and jb creatin in the prvince whilst develping its green ecnmy. There are a number f internatinal, natinal and prvincial mandates and driving frces that play a pivtal rle in the develpment f this renewable energy strategy fr the NWP. These include the fact that Suth Africa was ranked the 12th largest emitter f CO2 emissins in 2009 and has cmmitted t reduce its greenhuse gas (GHG) emissins by 34% by 2020, undertaking that was first made in leadership at the Cpenhagen (COP15) summit and renewed at the COP17 summit. The intrductin and adptin f the New Grwth Path in Suth Africa has seen increased emphasis being made twards develping and grwing the green ecnmy within the cuntry, supprted amng thers, by the Industrial Plicy Actin Plan (IPAP2) f 2010 and revised Integrated Resurce Plan (IRP2). Natinally, there is als a White Paper n Renewable Energy which has been adpted by Parliament. 1.2 Statement f the Prblem Suth Africa relies heavily n cal t meet its energy needs because it is well-endwed with cal resurces; in particular, Suth Africa has develped an efficient, large-scale, cal-based pwer generatin system that prvides lw-cst electricity, thrugh a grid system that is being extended t rural areas, t millins f residential, cmmercial and institutinal cnsumers. As a result, cal is and is likely t remain, frm a financial viewpint, an attractive but unsustainable surce f energy fr Suth Africa. Hwever, at the same time Suth Africa recgnises that the emissins f GHGs, such as carbn dixide, frm the use f fssil fuels such as cal and petrleum prducts has led t increasing cncerns wrldwide, abut glbal climate change. While Suth Africa is well endwed with renewable energy resurces that can be sustainable alternatives t fssil fuels, s far these have remained largely untapped. 1

14 Fr this purpse, the Gvernment has develped enabling envirnments within which the renewable energy industry can perate, grw, and cntribute psitively t the Suth African ecnmy and t the glbal envirnment. The NWP hwever needs t make a meaningful cntributin within the available enabling envirnments whilst faced with a number f challenges. Substantial pprtunities d hwever exist and can be explited thrugh meaningful participatin in the renewable energy market. 1.3 Prject Objectives The verall bjectives f the prject are: T develp a Renewable Energy Strategy fr the Nrth West Prvince; and T develp a renewable energy implementatin plan f the Nrth West Prvince. Based n the abve, a number f secndary bjectives need t be met: The develpment f a strategy t prmte and implement renewable energy technlgies and energy resurces in the Nrth West Prvince; The strategy and plan need t be aligned with Natinal plans set ut by Gvernment and varius stakehlders; The prject will entail a study int the viability and ptential f varius renewable energy resurces and technlgies in the Nrth West Prvince (taking int cnsideratin existing bdies f wrk already cnducted and available), as well as a review f renewable prjects (existing and planned) in the prvince; The strategy and plan need t take aspects int cnsideratin pertaining t, but nt limited t, supply ptins, sustainability f impacts and system delivery, enabling envirnments, rle-players and respnsibilities, financial mechanisms, partnerships, infrastructure, envirnment, etc.; and Prpse actual prjects t cnsider fr implementatin. 1.4 Challenges The Draft Renewable Energy Strategy presented at the varius stakehlder cnsultatin wrkshps were received well hwever sme challenges have t be vercme fr the implementatin prjects t be successful. One majr challenge facing the NWP is the limited mandate that prvinces have arund energy and the funding f renewable energy prjects and the fact that they are reliant n natinal develpments in terms f frmulating, funding and implementing strategies and framewrks. This means that the way frward needs t be cgnisant f these difficulties in assisting the prvince in implementatin. The NWP is faced with pverty, high unemplyment and inequality, as well as a grwing infrmal sectr, leaving the prvince with substantial service delivery backlgs in husing and electrificatin. This pse a substantial challenge in terms f the strategy being able t achieve sme f its gals related t energy pverty and jb creatin. Access t energy is als clsely related t quality f life. The pr typically spend a greater fractin f their incme n indispensable energy services. At the same time these lw-incme husehlds have t cmprmise severely n services such as lighting and space heating that require energy carriers and technlgies t 2

15 which they either dn t have access, r whse initial csts tend t be unaffrdable. The pr cnsequently expend mre time and effrt t btain energy services. The NWP is furthermre divided int an energy intensive industrial and mining sectr, as well as a substantial rural and nn-urban based ppulatin. Finding a balance t benefit bth extremities is recgnised within this renewable energy strategy. There is a lack f a centralised systems and structures within the NWPG that cllect energy data and this will impact n the strategy, bth directly and indirectly, in terms f determining and justifying targets and mnitring the effectiveness f the renewable energy strategy nce implemented. It is critical that this is addressed in making the strategy meaningful in terms f measuring the impact and sustainability f the interventins that result frm this strategy. There remains much variatin between individual municipalities in terms f the activities in place and their level f implementatin and this shuld be cnslidated. One f the actin pints fr the NWP is t establish a centralised systems and structures within the NWPG r a suitable entity assciated with the NWPG with a centralised visin and cntinuity in resurces and expertise that can drive the implementatin f the renewable energy strategy. These structures need t assume the respnsibility t drive activities n renewable energy such as implementatin and mnitring. The structure will als be required t firstly set the renewable energy scene in the prvince fllwing a map ut f the prcess f embarking n the implementatin f the renewable energy prgramme in the prvince. Centralised supprt n technical and nn-technical aspects pertaining t renewable energy and energy efficiency shuld als be cnslidated within the NWP. Structures and systems shuld cnsequently be put in place t develp and cntinuusly update targets whilst mnitring prgress n the implementatin f the renewable energy strategy. These structures and systems shuld als take respnsibility t prvide technical and nn-technical supprt twards the renewable energy market stakehlders, especially the lcal municipalities. A ptential burden is that cmpetencies and expertise are nt available. A need fr skills develpment and jb creatin within the prvince was raised. The lack f relevant skills culd be a majr barrier twards implementatin f the fcus areas mentined. A barrier f mst f the technlgies that is linked t municipalities (such as waste-tenergy prjects) is the limitatin that municipalities culd nly cater fr 3-year cntracts. This shuld be investigated and relaxed as mst f the waste-t-energy prjects require lnger (up t 20 year) cntracts. Awareness needs t be created within the prvince regarding: Renewable Energy technlgies Energy efficiency and Energy Services Cmpanies Applicatin prcesses linked t rll-ut prgrammes such as the Lw Pressure Slar Water Heaters 3

16 Clean ck stves Further wrk will be needed t develp plicy and strategy dcuments (n natinal and prvincial level) t supprt lnger term prjects such as the hydrgen and fuel cell technlgies. Alignment with ther gvernment departments (such as Department f Water Affairs) that has expansin prgrammes that des nt necessarily align with the Renewable Energy Strategy. This might hinder fr example rll-uts f Slar Water Heaters because tap-water might nt be available yet. Review f targets set ut in the Renewable Energy Strategy. Gvernment, DBSA, Green Fund; Jb Fund, IDC, Eskm, Municipalities t frm partnerships fr renewable energy. 4

17 2 BACKGROUND AND CONTEXT FOR RENEWABLE ENERGY IN SOUTH AFRICA Suth Africa has a heavy reliance n cal fr electricity generatin. This, cupled with histrically lw electricity prices, has resulted in substantial energy inefficiencies thrughut the varius sectrs in ur ecnmy. Suth Africa is currently the 12 th largest emitter f greenhuse gasses in the Wrld. Bth Suth Africa and the Nrth West Prvince culd benefit substantially frm the implementatin f renewable energy t address the challenges twards clean energy, energy efficiency and greenhuse gas (GHG) mitigatin. There are a number f natinal, internatinal and prvincial driving frces that play a pivtal rle in the develpment f this renewable energy strategy fr the Nrth West Prvince. They include the fllwing: Universal access t energy; Affrdability f energy t all citizens; Energy fr rural develpment, remte schls and clinics, as well as energy fr rural water supply; Imprvement in the standard f living and meeting basic human needs; Sustainable develpment; Energy security and diversity f energy supply surces and primary energy carriers; Reductin f energy demand f 12% by 2015; Imprve and expand the energy infrastructure; Envirnmental prtectin; Reductin in energy related emissins; Ecnmic grwth and develpment; Jb creatin; Envirnments that is nt harmful t human health r well-being; Pressing scial prblems such as pverty and the HIV/Aids epidemic; and Lcalisatin f RE technlgy assembly and manufacturing within the NWP. The sectins that fllw will describe the Internatinal perspective, as well as the Natinal and Prvincial mandates that will frm the fundatin n the develpment f the renewable energy strategy fr the NWP. 2.1 Internatinal Perspective Suth Africa is the largest cntributr t the African Cntinent s GHG emissins. Due t the fact that Suth Africa has an extremely energy intensive ecnmy and a very high dependence n cal fr the generatin f primary energy, Suth Africa is ne f the mst carbn emissin-intensive cuntries in the Wrld. 5

18 Figure 1 shws the relative ttal CO 2 emissins per natin. Interesting is the fact that Suth Africa was ranked the 12 th largest emitter f CO 2 emissins in 2009, fllwed clsely by Mexic and Brazil. Suth Africa s CO 2 emissins hwever reduced by 6.7% relative t 2008, cmpared t the wrld reductin f 0.1%. Frm the abve it is evident that the internatinal perspective fr renewable energy in Suth Africa is driven by a need t reduce ur GHG emissins. Suth Africa ratified the UNFCCC in 1997, which enables Suth Africa t apply fr financial assistance fr climate change related activities frm the Glbal Envirnmental Facility (GEF). The fundamental bjective f the UNFCCC is t achieve stabilisatin f the cncentratins f GHG in the atmsphere at a level that wuld prevent dangerus anthrpgenic interference with the climate system. Suth Africa als ratified the Kyt Prtcl in March The Kyt Prtcl des nt cmmit the nn-annex 1 (develping) cuntries, like Suth Africa, t any quantified emissin targets in the first cmmitment perid (2008 t 2012). The Clean Develpment Mechanism prvides fr the transfer f certified emissin reductins between nn-annex 1 cuntries and Annex 1 cuntries. The mechanism is specifically designed t supprt sustainable develpment with respect t greenhuse gas emissins in develping cuntries while helping Annex 1 cuntries t cmply with their cmmitments under the Kyt Prtcl. The Annex 1 cuntries may cnsequently use the certified emissin reductins accruing frm such prject activities t cntribute t cmpliance with part f their emissin reductin cmmitments. The drive fr the use f renewable energy in Suth Africa is further driven by the internatinal trend and pressure twards sustainability where energy frm renewable surces cntributes t a grwing extent t ur energy needs. A scenari analyses by Shell shw renewables meeting arund 40% f Wrld energy needs by the middle f the century. 6

19 Figure 1: Cmparisn f ttal carbn dixide emissins in millin tnnes CO 2 by natin (2009 data). There is an internatinal trend twards the generatin f clean energy in respnse t climate change and t meet the cmmitments f the Kyt Prtcl. Suth African industry depends n mdern energy carriers prduced frm cal, il and gas. Hwever, energy security cncerns are frcing Gvernment t achieve greater diversificatin and flexibility f supply and cmpetitin between energy carriers. This will in turn create an envirnment that attracts dmestic and internatinal investment. Thus, frm an internatinal perspective, Suth Africa, and cnsequently the Nrth West Prvince, needs t achieve a greater uptake in the implementatin and use f renewable energy due t ur natinal cmmitments and supprt t the UNFCCC, the Kyt Prtcl and its related prgrammes t reduce GHG emissins. Suth Africa has cmmitted t reduce its greenhuse gas emissins by 34% by The energy industry is the biggest emitter since mre than 90% f the cuntry s electricity is prduced by cal-fired statins. The Internatinal trend and need fr sustainable develpment is als driving the use f renewable energy within ur grwing ecnmy that is linked t an extremely high dependence f fssil-fuel based energy. Energy security frm an internatinal perspective is anther primary driver fr the use f renewable energy t create an envirnment where internatinal investrs wuld be attracted t Suth Africa and the NWP if the NWP culd prvide this energy security t internatinal investrs. 7

20 2.2 Natinal Mandate The Natinal mandate fr the use f renewable energy within Suth Africa is driven, amngst thers, by: The Cnstitutin; The White Paper n the Energy Plicy f the Republic f Suth Africa, 1998; The Recnstructin and Develpment Prgramme, 1994; Grwth, Emplyment and Redistributin Macrecnmic Strategy, 1996; The Integrated Sustainable Rural Develpment Strategy, 2000; The White Paper n Renewable Energy f the Republic f Suth Africa, 2003; The Natinal Energy Efficiency Strategy, 2009; Integrated Energy Plan, 2003; Integrated Natinal Electrificatin Plan, 2011; New Grwth Path; Natinal strategy fr sustainable develpment and actin plan ; Green Ecnmy and Green Ecnmy Accrd; Natinal Develpment Plan, 2011; Green Jbs; Integrated Resurce Plan, 2011; Industrial Plicy Actin Plan, 2010; Natinal Climate Change Respnse White Paper, 2011; The fllwing Gvernmental Departments and institutins are als key: The Department f Energy; Natinal Energy Regulatr f Suth Africa; and Integrated Energy Centres The Cnstitutin The Cnstitutin states that Gvernment must establish a natinal energy plicy t ensure that natinal energy resurces are adequately tapped and delivered t cater fr the needs f the natin. Energy shuld be made available and affrdable t all citizens, irrespective f gegraphic lcatin. The prductin and distributin f energy shuld be sustainable and lead t an imprvement in the standard f living f citizens. The Bill f Rights prvides that: Everyne has the right a) t an envirnment that is nt harmful t their health r well-being; and 8

21 b) t have the envirnment prtected, fr the benefit f present and future generatins thrugh reasnable legislative and ther measures that - i. prevent pllutin and eclgical degradatin; ii. iii. prmte cnservatin; and secure eclgically sustainable develpment and the use f natural resurces while prmting justifiable ecnmic and scial develpment." In rder t meet the Gvernment s bligatins in this regard, the White Paper n Energy Plicy f 1998 states that: Gvernment will wrk twards the establishment and acceptance f brad targets fr the reductin f energy related emissins that are harmful t the envirnment and t human health The White Paper n the Energy Plicy f the Republic f Suth Africa The White Paper n Energy Plicy f 1998 sets ut Gvernment s plicy with regard t the supply and cnsumptin f energy. The plicy strengthens existing energy systems in certain areas, calls fr the develpment f underdevelped systems and demnstrates a reslve t bring abut extensive change in a number f areas. Anther critical aspect included in the White Paper n Energy Plicy was the increased pprtunities fr energy trade within the Suthern African regin. Energy security thrugh the encuragement f energy supply surces and primary energy carrier diversity. The plicy recgnised that Suth Africa has neglected the develpment and implementatin f renewable energy applicatins. Hwever, the significant medium and lng-term ptential f renewable energy is recgnised. Gvernment plicy n renewable energy is cncerned with meeting the fllwing challenges: Ensuring that ecnmically feasible technlgies and applicatins are implemented thrugh the develpment and implementatin f an apprpriate prgramme f actin; Ensuring that an equitable level f natinal resurces is invested in renewable technlgies, given their ptential and cmpared t investments in ther energy supply ptins; and Addressing cnstraints n the develpment f the renewable energy industry The Recnstructin and Develpment Prgramme The White Paper n Recnstructin and Develpment f 1994, and the macr-ecnmic strategy - Grwth, Emplyment and Redistributin (GEAR) largely infrmed scial and ecnmic plicies since The main energy emphasis in the White Paper n Recnstructin and Develpment was the electrificatin f 2.5 millin husehlds by the year The prvisin f access t electricity still pses a challenge fr the Suth African Gvernment and Eskm. The gals set ut in the White Paper n the Energy Plicy ech the prgrammes f the RDP, namely: Meeting basic needs; Develping human resurces; Building the ecnmy; 9

22 Demcratising the state and sciety; and Implementing the RDP. Other plicy dcuments, such as the Rural Develpment Strategy f the Gvernment f Natinal Unity f 1995 detailed the challenges facing rural peple with regard t access t energy supply and the need fr c-rdinatin f rural develpment Grwth, Emplyment and Redistributin Macrecnmic Strategy The Grwth, Emplyment and Redistributin Strategy f 1996 placed its emphasis n tw cre strategies: Prmting grwth thrugh exprts and investment; and Prmting redistributin by creating jbs and reallcating resurces thrugh the budget. The energy sectr cntributes twards ecnmic grwth, trade, investment and emplyment creatin, as well as prviding infrastructure fr husehlds. In additin, there has been an increased emphasis in recent years twards a liberalisatin f the energy sectr. This includes a prgramme f restructuring and ratinalisatin f state-wned enterprises. This has implicatins in a number f energy markets, in particular fr the electricity sectr The Integrated Sustainable Rural Develpment Strategy The Integrated Sustainable Rural Develpment Strategy (ISRDS) f 2000 was "designed t realise a visin that will attain scially chesive and stable rural cmmunities with viable institutins, sustainable ecnmies and universal access t amenities, able t attract and retain skilled and knwledgeable peple, wh are equipped t cntribute t grwth and develpment". A strategic bjective f the ISRDS is "t ensure that by the year 2010 the rural areas wuld attain the internal capacity t integrated and sustainable develpment". The cntributin f the energy sectr twards this strategic bjective is t prvide basic energy services t rural areas, in particular extending access t electricity, thus prviding the pprtunity t create an ecnmic base via agricultural and hme-based industries and SMMEs in rder t grw the incme-generating ptential f cmmunities The White Paper n Renewable Energy f the Republic f Suth Africa This White Paper n Renewable Energy f 2003 supplements the White Paper n Energy Plicy f 1998, which recgnises that the medium and lng-term ptential f renewable energy is significant in the Suth African cntext. It cnsequently sets ut Gvernment s visin, plicy principles, strategic gals and bjectives fr prmting and implementing renewable energy in Suth Africa. The fllwing five plicy bjectives frm the fundatin f the White Paper n Energy Plicy: Increasing access t affrdable energy services; Imprving energy gvernance; Stimulating ecnmic develpment; 10

23 Managing energy-related envirnmental and health effects; and Securing supply thrugh diversity. The White Paper n Energy Plicy s psitin with respect t renewable energy is based n the integrated resurce planning criterin f: Ensuring that an equitable level f natinal resurces is invested in renewable technlgies, given their ptential and cmpared t investments in ther energy supply ptins. The White Paper n Renewable Energy was develped in the cntext f bth internatinal and natinal driving frces. Internatinal develpments arund the United Natins Framewrk Cnventin n Climate Change (UNFCCC), the wrld markets fr renewable energy, Suth Africa s reintegratin int the glbal ecnmy and hsting f the Wrld Summit n Sustainable Develpment (WSSD), necessitated the develpment f a definitive plicy n renewable energy. Gvernment s verarching energy plicy tuched n renewable energy, which needed t be fully develped and articulated within the White Paper n Renewable Energy. In rder t meet the lng-term gal f a sustainable renewable energy industry, Gvernment has set the fllwing 10-year target fr renewable energy: 10,000 GWh (0.8 Mte) renewable energy cntributin t final energy cnsumptin by 2013, t be prduced mainly frm bimass, wind, slar and small-scale hydr. The renewable energy is t be utilised fr pwer generatin and nn-electric technlgies such as slar water heating and bi-fuels. This is apprximately 4% (1,667 MW) f the estimated electricity demand (41,539 MW) by Hwever, this target is cumulative, starting in 2003, and s equivalent t an average f 1,000 GWh/year. The White Paper n Renewable Energy fcuses n larger and ecnmically viable prjects rather than small-scale electrificatin prgrammes, even thugh electrificatin is seen as an especially pressing issue in rural areas. The White Paper's target f 10,000GWh renewable energy cntributin t final energy cnsumptin by 2013 was cnfirmed t be ecnmically viable with subsidies and carbn financing. Achieving the target will: Add abut 1,667MW new renewable energy capacity, with a net impact n GDP as high as R1.071-billin a year; Create additinal gvernment revenue f R299-millin; Stimulate additinal incme that will flw t lw-incme husehlds by as much as R128-millin, creating just ver 20,000 new jbs; and Cntribute t water savings f 16.5-millin killitres, which translates int a R26.6- millin saving. The 2003 study als highlighted the technlgies t be implemented first, based n the level f cmmercialisatin f the technlgy and natural resurce availability. These technlgies include: Sugar-cane bagasse (the fibre that cmes frm crushing the sugar cane) fr cgeneratin; Landfill gas extractin; Mini-hydrelectric schemes; and 11

24 Cmmercial and dmestic slar water heaters The Natinal Energy Efficiency Strategy Suth Africa s Natinal Energy Efficiency Strategy f 2009 relies n the premise that energy efficiency is widely recgnised as the mst cst-effective way f meeting the demands f sustainable develpment. The strategy was first published in In 2005, when the strategy was first published, there was a target f 12% verall energy savings, t be achieved by The strategy has eight gals, and these are: 1. Imprve the health f the natin; 2. Create jbs; 3. Alleviate energy pverty; 4. Reduce envirnmental pllutin; 5. Reduce carbn-dixide emissins; 6. Imprve industrial cmpetitiveness; 7. Enhance energy security; and 8. Delay the need t build new pwer statins. One area that the Natinal Energy Efficiency Strategy fcus n that are directly aligned t this reprt and the use f renewable energy in the NWP is with slar water heaters. A widespread installatin f slar water heating systems in industrial and cmmercial buildings and huses has the ptential t defer the need fr building new pwer plants, as the cmbined heating requirements f these Suth African sectrs cnsume the energy prduced by three average pwer statins. Raising awareness regarding the ecnmic benefits f energy efficiency and renewable energy is an imprtant step in increasing the market demand fr these technlgies. The develpment f an infrmatin strategy fr bth energy efficiency and renewable energy is therefre an immediate shrt-term pririty Integrated Energy Plan The Integrated Energy Plan f 2003 (IEP) invlves estimating hw much energy all the different cnsumers (e.g. industry r husehlds) will need in the future t deliver certain services; and then identifying a mix f apprpriate surces and frms f energy t meet these energy service needs in the mst efficient and scially beneficial manner. The IEP is bth a methdlgy and a framewrk fr analyzing the energy system and linking plicy frmatin t brader natinal gals. IEP fcuses n the energy service needs f energy users. T meet users needs effectively, different fuels r a mix f fuels r pssibly alternative investment in cnservatin r efficiency measures need t be cnsidered. Energy systems analysis and subsequent plicy frmulatin has t manage effectively the balance required by the cmplex set f interactin between individual supply sectr and wider sciecnmic, plicy and envirnmental cnsideratins Integrated Natinal Electrificatin Plan Under the Integrated Natinal Electrificatin Plan (INEP) f 2011, the Department f Energy will cntinue t braden access t electricity and strengthen the electrificatin netwrks, t ensure the cntinuus rll-ut f the electrificatin prgramme twards the gal f Universal 12

25 Access. The DOE will als embrace renewable technlgies and energy efficiency as an integral part f their service delivery t the pr. During the 2011/12 financial year the DOE plan t cnnect husehlds t the grid and an additinal ff-grid New Grwth Path Successive Gvernment dcuments, including the New Grwth Path, have pinted t the cnsideratin that an ambitius prgramme f renewable energy generatin shuld serve t catalyze a significant wave f ecnmic benefits and industrial develpment. A critical mass f renewable energy generatin prjects, with accmpanying lcalisatin f cmpnent manufacture, can achieve a range f bjectives, including jb creatin, imprved exprt cmpetitiveness, cntribute t Suth Africa s carbn mitigatin cmmitments, safeguard exprts frm pssible punitive carbn tariffs and build energy security. The New Grwth Path is intended t address unemplyment, inequality and pverty in a strategy that is principally reliant n creating a significant increase in the number f new jbs in the ecnmy, mainly in the private sectr. The new grwth path sets a target f creating five millin jbs in the next ten years. This target is prjected t reduce unemplyment frm 25% t 15%. Critically, this emplyment target can nly be achieved if the scial partners and gvernment wrk tgether t address key structural challenges in the ecnmy. It is cnsequently in this area where the stimulatin and increased implementatin f renewable energy can play a significant rle in creating emplyment pprtunities and the develpment f SMME that implement and maintain the renewable energy technlgies Green Ecnmy and Green Ecnmy Accrd Accrding t the United Natins Envirnment Prgramme (UNEP), the Green ecnmy is a system f ecnmic activities resulting in imprved human well-being, while ensuring the prtectin f future generatins against significant envirnmental risks and eclgical scarcities. The green ecnmy is driven by sectrs such as water, fisheries, waste management and plicy, research and gvernance. The Suth African gvernment has identified the green ecnmy as ne f the key elements in the new grwth path, as well as in the industry plicy actin plan. The transitining t a green ecnmy brings with it many advantages which include reduced carbn emissins, energy and resurce efficiency and sustainable ecnmic grwth. A lwcarbn, resurce efficient and sustainable ecnmy has the ptential t create jbs acrss many sectrs f the ecnmy that can becme an engine f develpment. The Natinal Strategy fr Sustainable Develpment and Actin Plan (NSSD1) was apprved by Cabinet n 23 Nvember The visin fr Suth Africa s NSSD and actin plan (NSSD1) is, Suth Africa aspires t be a sustainable, ecnmically prsperus and self-reliant natin state that safeguards its demcracy by meeting the fundamental human needs f its peple, by managing its limited eclgical resurces respnsibly fr current and future generatins, and by advancing efficient and effective integrated planning and gvernance thrugh natinal, reginal and glbal cllabratin. The strategy is premised n five strategic pririties which are: enhancing systems fr integrated planning and implementatin; sustaining ur ecsystems and using natural resurces efficiently; twards a Green Ecnmy; building sustainable cmmunities and respnding effectively t 13

26 climate change. Key bjectives have been identified in line with each strategic pririty. Under the strategic pririty, Twards a Green Ecnmy, the bjective is a just transitin twards a resurce efficient, lw carbn and pr-emplyment grwth path. One f the gals fr this bjective is supprting regulatry framewrk and the interventins are a Natinal Green Ecnmy Strategy and sectr Green Ecnmy Implementatin Plans. The Cabinet apprved a number f key supprtive plicies and this was the first sign that the green ecnmy was being priritised by gvernment. The plicies in questin included the Medium-term Strategic Framewrk (MTSF) , the Ten-year Innvatin Plan, the revised Industrial Plicy Actin Plan fr 2010/ /13 (IPAP2), the revised Integrated Resurce Plan (IRP2) and New Grwth Path. Suth Africa had entered int the Green Ecnmy Accrd n 17 Nvember The Accrd, ne f the mst cmprehensive scial pacts n green jbs in the wrld, builds a partnership t create new jbs by 2020, in ecnmic activities as diverse as energy generatin, manufacturing f prducts that reduce carbn emissins, farming activities t prvide feedstck fr bifuels, sil and envirnmental management and ec-turism. One f the cmmitments in the Accrd is t install ne millin slar water-heating systems in Suth Africa by the 2014 financial year. One f the barriers t this prgramme is that the installatin int lw-incme husing still requires a fee t be paid, which is ften prhibitive t the inhabitants. Critical cmmitments relate t increased use f renewable energy thrugh generatin fr the natinal electricity grid, as well as mass installatin f slar water heaters; expanded prductin f clean stves fr Suth Africa and the cntinent; supprt fr bifuels thrugh regulatry measures and assistance t small farmers; establishment f varius finance facilities fr green prjects; a target f 80% f new jbs t g t yung wrkers, wh face high levels f unemplyment; and supprt fr schl prgrammes n the envirnment. Specific cmmitments include the fllwing: Gvernment will prcure megawatts f renewable energy fr the natinal grid by That is mre than the electricity demand f Cape Twn, Suth Africa s secnd largest city. Eskm and business will als cntinue t wrk n technlgies t further reduce emissins frm its cal-fired plants. The slar and wind energy industries aim t create at least 50,000 green jbs by They will develp a rf-tp prgramme t install 300,000 slar PV pwer generatin units fr residential, cmmercial and industrial buildings by They will wrk with gvernment t create lcal industrial capacity with an initial minimum target f 35% lcalisatin as a first part f an aspiratinal target f 75% lcal cntent. Gvernment will als supprt the installatin f ne millin slar water heating systems by 2014, which will prvide the basis fr expanding lcal prductin f cmpnents and heating systems. The insurance industry will prmte lcallymanufactured slar water heaters t replace the 200,000 standard geysers damaged every year. Organised labur will help establish and finance cperatives t undertake installatin and maintenance. All the parties will prmte the manufacture and distributin f clean cking stves and heaters fr the lcal and cntinental market. 14

27 The state-wned Industrial Develpment Crpratin will prvide up t R25-billin (ver US $3-billin) fr investments in green ecnmy activities ver the next five years. The private sectr will strengthen existing effrts by financial institutins t fund investments in the green ecnmy and pursue investment pprtunities in manufacturing linked t renewable energy initiatives. Business will wrk t expand investment in prjects that enhance the envirnmental perfrmance f existing prductin facilities. It will develp benchmarks fr energy efficiency by industry as well as cmpany energy-management plans. These plans will effectively implement the Natinal Energy Efficiency Strategy, which includes targets fr 2015 f reducing energy intensity by: Cmmercial and public buildings: 15%; Residential: 15%; Transprt: 10%; Industry: 15%; and Mining: 15%. Business will actively prmte retrfitting by cmpanies and husehlds t reduce energy use, especially in cmmercial buildings. Organised labur will establish jint wrkplace cmmittees t discuss and implement energy efficiency plans. It will undertake a lights-ff after hurs campaign in buildings and wrkplaces and educate members n the imprtance f energy efficiency. Gvernment will intrduce regulatins t phase ut incandescent light bulbs. Gvernment will prvide a supprtive regulatry envirnment fr the bifuels industry, including finalisatin f mandatry blending regulatins and incentives. Business will supprt smallhlder schemes and c-peratives t supply feedstck in rder t imprve livelihds thrugh the bifuels strategy. Gvernment will invest in mass-transprt systems that will reduce reliance n private car use. Initial steps have been taken n bus rapid transprt and cmmuter rail. By 2014, the state-wned cmmuter rail cmpany, PRASA, will invest R20 billin in new trains, mst f which will be manufactured lcally. Gvernment will als review its rail investment prgramme in rder t accelerate the shift f freight transprt t rail frm rad. The parastatal Transnet will invest abut R63 billin in the freight rail system ver the next five years. Fr its part, rganised business will cntinue t prmte greater use f rail freight by cmpanies. Gvernment and business will seek t emply yung peple as far as pssible in green ecnmy activities. At least 80% f new emplyees in the manufacturing and installatin f slar-water heating systems and in public and cmmunity wrks prgrammes directed at envirnmental challenges shuld be yung peple. All the parties will cllabrate t bring smaller and scial enterprises int the green ecnmy. They will supprt green-funding rad shws t increase public awareness f the pprtunities that exists, especially fr histrically disadvantaged and vulnerable grups. 15

28 The vast majrity f new slar water heating systems is installed in huses wned by lwincme Suth Africans. The Department f Water and Envirnmental Affairs is set t launch the first phase f cuntrywide green hubs, with varius satellite and reginal peratins. The Green Ecnmy Accrd sets the fundatin fr a number f pprtunities within the Nrth West Prvince in terms f the rll-ut f slar water heaters and lcalisatin Natinal Develpment Plan The Natinal Develpment Plan f 2011 prvides a visin fr Suth Africa fr It fcus n issues such as jb creatin, expanded infrastructure, the transitin t a lw-carbn ecnmy, the transfrmatin f urban and rural spaces, training and educatin, and numerus ther pertinent issues. The Natinal Develpment Plan is ne f the primary drivers fr creating jbs within the Green ecnmy and the Green Jbs prgramme. In cnjunctin t fcussing n the issue f green jbs, it als fcuses n the expansin f renewable energy use. It further set a target f 5 millin slar water heaters by Green Jbs Suth Africa has embarked n a majr plicy drive t invest in a greener ecnmy (as mentined abve) and green skills develpment specifically has been identified as a key fcus area. The key drivers f the Green Jbs prgramme are the New Grwth Path, the Industrial Plicy Actin Plan, Natinal Climate Change, the Respnse White Paper and the Natinal Develpment Plan. The verall direct ptential estimates fr Green Jbs are 13,565 jbs in the shrt term, 57,142 jbs in the medium term and 130,023 jbs n the lng term within energy generatin. Within the area f energy and resurce efficiency, these becme 31,569 jbs in the shrt term, 70,193 in the medium turn and 67,979 jbs n the lng term. The peratin and maintenance jbs linked t renewable energy generatin plants is als substantial. The ptential fr lcalisatin f manufacturing and assciated emplyment expands as prject related t greening the ecnmy are prgressively cmmissined. The green jbs estimatins related t energy generatin is prvided in Table 1 16

29 Table 1: Green jbs estimatins related t energy generatin. These figures, in cnjunctin with the jb creatin seen assciated with the Renewable Energy Independent Pwer Prducer prgramme (as described later in this reprt) is immense Integrated Resurce Plan In March 2011 gvernment adpted the revised Integrated Resurce Plan (IRP2), as a blueprint fr the energy mix that Suth Africa desired fr the pwer sectr in the perid up t It aims t diversify ur energy mix away frm the traditin f fssil-fired pwer generatin whilst taking advantage f the pssibilities relating t the Green Ecnmy in creating new industries and much needed jbs. Gvernment has priritized f the Green Ecnmy as a key cmpnent f the Industrial Plicy. The Actin Plan r IPAP2, takes practical meaning thrugh the intrductin f slar, wind, bimass, bigas, hydr and ther clean technlgies in the pwer sectr, side by side with ther technlgies. The Integrated Resurce Plan fr Electricity f 2011 determines the demand prfile fr electricity ver the next 20 years and details hw this demand can be mst effectively met frm different resurces, such as nuclear energy, cal, gas and renewable energies. The IRP2 is intended t: Imprve the lng term reliability f electricity supply thrugh meeting demand criteria ver and abve keeping pace with ecnmic grwth and develpment; 17

30 Ascertain Suth Africa s capacity investment needs fr the medium term business planning envirnment; Cnsider envirnmental and ther externality impacts and the effect f using renewable energy technlgies in reducing envirnmental impacts; and Prvide a framewrk fr Ministerial determinatin f new generatin capacity (inclusive f the required feasibility studies) as envisaged in the New Generatin Capacity regulatins. The Integrated Resurce Plan places specific emphasis n bradening the existing electricity supply technlgies t include gas, imprts, nuclear, bimass, renewables (wind, slar and hydr. Thrugh the IRP, we expect the fllwing new generatin capacity cntributin by 2030: 42% renewable energies (r 18,000 MW generatin capacity); 23% nuclear energy; 15% cal energy; 5% Gas; 6% Hydr; and 9% Open Cycle Gas Turbine (OCGT). This imply that in additin t all existing and cmmitted pwer plants, the Revised Balanced Scenari (RBS) f the IRP2 included a nuclear fleet f 9.6 GW; 6.3 GW f cal; 11.4 GW f renewables; and 11.0 GW f ther generatin surces. The implementatin f the IRP2 will frm part f Suth Africa s cntributin twards: Mitigating climate change by reducing greenhuse gas emissins; Creating new industries and jbs; Prviding mre cst-effective energy technlgies; and Helping t achieve the natin s gals. The DOE will als cntinue with the implementatin f renewable energy prgrammes twards the rllut f 1-millin slar water heaters by Industrial Plicy Actin Plan Suth Africa's first Industrial Plicy Actin Plan (IPAP2) f 2010 was launched in the 2007/08 financial year. Each year thereafter Gvernment develped and launched a revised three-year rlling IPAP2 with a ten year utlk in a cntext f rapid ecnmic change and significant glbal uncertainty. This allws Gvernment t cntinually scale up their interventins and t respnd t change. The IPAP recgnises that there are significant pprtunities t develp new green and energy efficient industries and related services. In 2007/2008, the glbal market value f the Lw Carbn Green Sectr was estimated at 3-billin (r US$5-trillin) and was expected t rise significantly in the light f climate change imperatives. Due t ur high slar intensity, slar pwer has significant ptential in Suthern Africa. Recent electricity tariff increases and electricity supply challenges have made Suth Africans 18

31 mre receptive t the cncept f alternative technlgies t cnventinal electricity, such as slar water heating in particular. T supprt the Renewable Energy White Paper gal f GWh, the Minister f Energy has made a cmmitment t install ne millin slar water heaters (SWHs) by 2014 under the Green Ecnmy Accrd. It is anticipated that this gal will be increased t 5.6 millin SWHs by This initial cmmitment will be funded thrugh a mechanism develped by the Department f Energy. The gvernment s slar water heating prgramme currently underway is managed by Eskm and is called the SWH Rebate Prgramme. Furthermre, a fiscus funded SWH prgramme thrugh a Divisin f Revenue Act (DRA) allcatin is currently rlled ut in varius municipalities (City f Tshwane, Sl Plaatje and Naledi). The private sectr is als nt turning a blind eye n the gvernment s reslve t create a rbust and self-supprting SWH industry. In this regard certain cmmercial banks, insurance cmpanies, and benevlent dnrs are driving varius SWH initiatives in different parts f the cuntry. The key immediate barrier thugh t increased uptake is high upfrnt-capital cst f systems cupled with limited funding currently available. Realising this hindrance the Minister during her budget vte speech this year prnunced n a Standard Offer incentive scheme that will fund all Energy Efficiency and Demand Side Management (EEDSM) interventins. This scheme is aimed at creating an expanded pprtunity fr attracting the much-needed sustainable financial stimulus int the prgramme, where SWH is amngst the allwable technlgies. Thrugh engagements with Eskm, the Natinal Energy Regulatr f Suth Africa (NERSA), and the Department f Energy is fine-tuning a funding mdel t ensure that this tariff funded scheme is actualized. This will enable leveraging ther funding surces frm lcal and internatinal financiers. T ensure a smth transitin int the new incentive scheme, a phase-in apprach fr the integratin f the standard ffer & rebate prgrammes will be adpted. This apprach as well as timelines fr its implementatin is being wrked n by Eskm, DE & NERSA. In terms f prgress, the Renewable Energy Independent Pwer Prduce Prgramme (REIPPP) was launched by the Department f Energy in august It aims t prcure 17.8 GW f renewable energy by The dti has secured minimum and n-ging increasing levels f lcal cntent in the REIPP. The REIPP, in cnjunctin with the cmpletin f the technical wrk fr the slar and wind energy manufacturing strategies, prvides a significant pprtunity fr Suth Africa t becme a majr manufacturer f cmpnentry f renewable energy prjects. Energy Efficiency building regulatins (SANS 10400) became effective frm Nvember 2011, which, amngst ther measures, makes the use f slar water heating bligatry fr mst new buildings. The Industrial Energy Efficiency Prgramme was als launched in Nvember Furthermre, new regulatins f the mandatry blending f bifuels were published in the Gvernment Gazette. Draft regulatins requiring il majrs perating in Suth Africa t uplift bifuels fr mandatry blending with mineral fuels have als been published. Once the final regulatins have been prmulgated, they will effectively create the market fr bifuels (when accmpanied by a financial supprt mechanism). This will prvide full regulatry certainty leading t significant new investment in cmmercial-scale bifuels manufacturing facilities. 19

32 In the Green industries sectr the manufacturing f cmpnent inputs int ur 17.8 GW renewable energy generatin prgramme is a majr pprtunity. Slar water heating manufacture and ther significant industrial pprtunities arise frm requirements fr higher energy efficiency in the ecnmy will als be vigrusly pursued Natinal Climate Change Respnse Strategy and White Paper Suth Africa is amng the tp 20 emitters f greenhuse gases in the Wrld and is the largest emitter in Africa, largely because f the ecnmy s dependence n fssil fuels. The Natinal Climate Change Respnse Strategy f 2004 and the subsequent Natinal Climate Change Respnse White Paper f 2011, develped by the Department f Envirnmental Affairs (DEA), requires that gvernment departments cllabrate in a crdinated manner t ensure that respnse measures t climate change are prperly directed and carried ut with a natinal fcus. The Department f Energy is expected t respnd t and mitigate climate change. Suth Africa is a develping cuntry r a Nn-Annex1 cuntry. This means that within the internatinal plitical and negtiatin cntext, Suth Africa is nt required t reduce its GHG emissins. Hwever, the Suth African ecnmy depends greatly n fssil fuels fr energy generatin and cnsumptin. It therefre is a significant emitter due t relatively high values being derived frm emissins intensity and emissins per capita. Suth Africa must therefre practively mve the ecnmy twards becming less carbn-intensive, with the Department f Energy playing a prminent rle. Suth Africa has cnsequently cmmitted t reduce its greenhuse gas emissins by 34% by The prmtin f renewable energy within Suth Africa, tgether with energy efficiency, will play a significant rle twards the mitigatin f climate change and the reductin f ur Natinal GHG emissins The Department f Energy The mandate f the Department f Energy is t frmulate and exercise versight in the implementatin f verall energy plicies, t ensure access t affrdable and reliable energy by all Suth Africans and t prmte envirnmental friendly energy use. The Department f Energy is respnsible fr ensuring develpment, prcessing, utilisatin and management f Suth Africa s energy resurces. As the cuntry's ecnmy cntinues t grw, energy is increasingly becming a key fcus. The Department s strategic plan seeks t deliver results with eight strategic bjectives: Ensure energy security creating and maintaining a balance between energy supply and energy demand, develp strategic partnerships, imprve crdinatin in the sectr and ensure reliable delivery and lgistics; Achieve universal access and transfrm the energy sectr diversify energy mix, imprve access and cnnectivity, prvisin f quality and affrdable energy, prmte safe use f energy and transfrm the energy sectr; Regulate the energy sectr develp effective legislatin, plicies and guidelines; encurage investment in the energy sectr and ensure cmpliance with legislatin; Effective and efficient service delivery understand stakehlder needs and imprve turnarund times; 20

33 Optimal utilisatin f energy resurces develp enabling plicies and encurage energy efficient technlgies; Ensure sustainable develpment prmte clean energy alternatives, encurage ecnmic develpment and prmte jb creatin; Enhance DE culture systems and peple attract, develp and retain apprpriate skills, prmte gd rganisatinal culture and make the Department an emplyer f chice; and Prmte crprate gvernance ptimal utilisatin f resurces, manage budget effectively, implement fraud and risk management, and ensure cmpliance with relevant prescripts. The 2014 visin fr the DOE is a transfrmed and sustainable energy sectr with universal access t mdern energy carriers fr all by The visin fr 2025 is the imprvement f Suth Africa s energy mix by having 30% f clean energy Natinal Energy Regulatr f Suth Africa The Natinal Energy Regulatr is a regulatry authrity established as a juristic persn in terms f Sectin 3 f the Natinal Energy Regulatr Act, 2004 (Act N. 40 f 2004). NERSA s mandate is t regulate the Electricity, Piped-Gas and Petrleum Pipeline industries in terms f the Electricity Regulatin Act, 2006 (Act N. 4 f 2006), Gas Act, 2001 (Act N. 48 f 2001) and Petrleum Pipelines Act, 2003 (Act N. 60 f 2003). The Natinal Energy Regulatr f Suth Africa is als respnsible fr the apprval f pwer generatin licences fr all f the prjects named as preferred bidders under Suth Africa s Renewable Energy Independent Pwer Prducer Prgramme Integrated Energy Centres The Suth African Gvernment intrduced the Integrated Sustainable Rural Develpment Strategy f 2000 and the subsequent Integrated Sustainable Rural Develpment Prgramme (ISRDP). Thrugh the DOE, Gvernment is setting up Integrated Energy Centres in cperatin with stakehlders. Like the energisatin cncept, the Gvernment will be seeking t bring energy services (fuels and appliances) t the disadvantaged cmmunities as well as t address health, envirnmental, ecnmic and ther needs. The integrated energy centres encurage the develpment f cperatives, and thereby enhance ecnmic develpment activities. The energy centres link energy needs with ther needs; health, jb creatin, envirnment and turism. As such they will require crdinatin with the Integrated Develpment Plans f prvincial and lcal authrities. 2.3 Prvincial Cntext Natinal targets and cmmitments The Nrth West Prvince is the 4 th largest cnsumer f electricity when cmpared t the ther prvinces. Als evident frm the previus sectins is the fact that 65% f the ppulatin in the NWP live in rural areas. This implies that the NWP is nt nly intensive in terms f electrical energy use, but als intensive in the use f ther cnventinal energy carriers and fuel wd. 21

34 The Nrth West cnsequently has an bligatin, like the ther prvinces, t cntribute twards and t assist Gvernment t achieve the targets and gals twards the varius fcus areas as discussed in Sectin Rural electrificatin As was mentined earlier in this reprt, 65% f the ppulatin in the Nrth West Prvince live in rural areas. The majrity f husehlds in rural areas use wd, charcal and paraffin fr cking, and paraffin and candles fr lighting, with nly 5% f all husehlds using LPG fr cking purpses. The Nrth West Prvince has the delicate challenge f balancing the numerus Natinal and Prvincial mandates twards diversificatin f supply, energy security, climate change mitigatin and jb creatin which wuld mst likely achieve the quickest impact in the urban and industrial sectr, tgether with the need fr rural electrificatin and develpment which wuld be fcused in the rural areas. It is cnsequently f critical imprtance t take this balance int accunt when the renewable energy strategy is develped fr the Nrth West Prvince t ensure that all the relevant needs are addressed Nrth West Prvince Huse f Traditinal Leaders The system f traditinal leaders is well entrenched within the histry and develpment f Suth Africa, Histrically, traditinal leaders served as gvernrs f their cmmunities with authrity ver all aspects f life ranging frm scial welfare t judicial functins. Gverning structures in Suth Africa have recgnized the rle played by traditinal leaders in the maintenance and develpment f cmmunities. The new demcratic gvernment in Suth Africa recgnized the rle f traditinal leaders within the Suth African cnstitutins and thereafter thrugh the passing f varius legislatures, as playing a vital rle in gvernance. In particular t supprt the develpment f prgrammes that are aimed at primarily rural peple by leading, advising, participating within, mnitring and evaluating their success. During engagements with the Nrth West Huse f Traditinal Leaders (NWHTL), Kgsi Mshe Ezekiel Mabe expressed their interest in the develpment f the renewable energy strategy fr the Nrth West Prvince and the ptential it hlds fr rural develpment and upliftment f the rural based citizens. Kgsi Mshe Ezekiel Mabe als expressed the NWHTL s willingness t assist where pssible and that the NWHTL wuld be able t assist with availing suitable land that culd ptentially be utilised fr RE IPP and ther RE prgrammes. The fcus shuld nt nly be n the rural peple f the Nrth West Prvince, but that the strategy shuld benefit all peple f the Nrth West Prvince Health The nn-urban cking needs in the Nrth West Prvince rely predminantly n wd and paraffin. Limited infrastructure and inadequate living cnditins in many areas f the Nrth West Prvince cnsequently has meant that peple are rutinely expsed t fuels which emit several nxius gases and particulates which can be detrimental t their health. Natinal statistics shw that Acute Respiratry Illness, assciated with expsure t particulates, is the secnd highest cause f mrtality in children under the age f five. The csts t sciety and health care fr such victims are estimated t be substantial. 22

35 2.3.5 Gender and energy Energy plays an imprtant rle in the lives f all peple wh use different kinds f energy fr varius purpses. Hwever the disparities in mdern energy service prvisin brught abut by lack f access t infrastructure impacts largely n pr urban and rural peple. In the rural areas f the Nrth West Prvince wmen are the main users f fuelwd fr meeting husehld energy needs fr cking, but als bear the burden f cllecting fuelwd. Wman is cnsequently rutinely expsed t fuels which emit several nxius gases and particulates which can be detrimental t their health. The cllectin f fuelwd als takes up a substantial amunt f time fr these wmen that rutinely need t travel and harvest the fuelwd. Wdlands have been depleted in many areas and in thers they are experiencing enrmus pressure. Here wmen have t walk even lnger distances. Cnventinal energy appraches virtually exclude wmen s cncerns. Cnsequently ecnmic grwth has been accmpanied by severe gender disparities. In Suth Africa 80% f rural husehlds are female-headed. These husehlds typically ck daily with fuelwd and crp residues. Since entrepreneurial hme-based industries depend n bimass supplies, wmen spend lng hurs wrking in survival activities cking, fuelwd cllectin, water carrying and fd prcessing. The time spent in these activities represents a high scial and ecnmic cst t the family and sciety, where access t affrdable, safe and sustainable fuels is limited. Prviding access t alternative fuels r t efficient stves wuld imprve this situatin as well as mitigate the indr air pllutin assciated with the use f fuelwd. It is imperative that wmen s cncerns are prperly reflected in the develpment f the renewable energy strategy fr the NWP Black ecnmic empwerment and jb creatin The empwerment f histrically disadvantaged Suth Africans in rder t redress histrical racial and gender imbalances in emplyment is anther aspect that will need cnsideratin during the develpment f the renewable energy strategy. The emergence f a Renewable Energy Industry prvides ptential fr empwerment and jb creatin. Renewable energy prjects that receive Gvernment assistance will be required t incrprate empwerment. The questins that need t be asked is t what level in the existing RE industry within the NWP is cmpliant and able t address the need fr BEE? The develpment f the strategy will als need t cnsider an enabling envirnment t address this cncern thrugh capacity building and skills develpment Jb creatin The jb creatin ptential f the renewable energy industry lays nt s much in the peratin and maintenance f such facilities, but rather in the manufacturing f such technlgies. This can be bserved in cuntries where renewable energy industries have been prmted. In such examples it can be seen that, prviding there is lcal manufacturers f renewable technlgies, the amunt f jbs as a functin f units f energy prduced is hwever much higher cmpared t cnventinal energy technlgies. The manufacturing f renewable technlgies is mre labur-intensive than cnventinal energy technlgies and requires an appreciable labur frce t manufacture. Research suggests that success in large-scale 23

36 develpment f renewables culd create upwards f 50,000 jbs and realise $55-billin in green investment ver the next 15 years. Lcalisatin f elements f the glbal value chain fr wind and slar pwer culd establish Suth Africa as a reginal renewables manufacturer and service hub. Fr this t be true fr the NWP, it needs t create an envirnment within the Prvince fr the manufacturing f RE technlgies. If this gal is nt viable, the jb creatin will be limited t the implementatin, maintenance and peratin f the RE technlgies. This is certainly eched when cnsidering the jb creatin assciated with the Renewable Energy Independent Pwer Prducer Prgramme that was launched during August It was seen that jb creatin is expected at 13,908 jbs during the cnstructin phase f the bid windw 1 prjects, whilst 874 jbs were expected t result frm peratin f the systems. During the secnd bid windw the jb creatin is expected at 22,590 jb during cnstructin, and 1,371 jbs fr peratin. Hwever, in rder t make lcal manufacturing viable, significant demand fr RE will be required. Since significant levels f demand will be partly a functin f Gvernment supprt, and since in the shrt-term at least, Suth Africa will face many pressing demands, emplyment expectatins shuld nt be unduly raised. In rder t equip the wrk frce, the Energy Sectr Educatin Training Authrity (ESETA) is mandated t ensure, in cnsultatin with the renewable energy industry, that apprpriate, natinally recgnised, renewable energy training and educatin unit standards and curricula are develped and registered with the Suth African Qualificatins Authrity (SAQA). This will equip artisans and technicians with the necessary skills t undertake the design, installatin, peratin and maintenance f renewable energy technlgies and appliances and thus prvide a new career path. The benefit t the industry is having access t qualified artisans and technicians. Furthermre, the NWP is bund by sectin 9 (1) f the Preferential Prcurement Plicy Framewrk Act f 2011 (PPPFA) t stipulate lcal cntent requirements during tendering prcesses, especially where public prcurement f designated and nn-designated sectrs will take place. This culd prvide a vehicle t achieve sustainable jb creatin and emplyment frm renewable energy prjects within the NWP. This is already a requirement in with the renewable energy independent pwer prducer prcurement prgramme. Lcalisatin and lcal manufacture f RE cmpnents shuld als be prmted thrugh designatin r the setting f minimum and maximum targets fr lcal cntent. If the NWP wish t participate and cntribute twards the Natinal and Prvincial targets in a sustainable manner, the develpment f skills and jb creatin will be crucial. The abve is a clear indicatin that the NWP can benefit substantially frm lcalisatin thrugh jb creatin and investment in the renewable energy sectr Public Awareness Raising awareness regarding the ecnmic and ther benefits f energy efficiency and renewable energy is an imprtant step in increasing the market demand fr these technlgies. The NWP will need t create awareness n bth energy efficiency and renewable energy as an immediate shrt-term pririty. The successful penetratin and uptake f renewable energy technlgies int Suth Africa depends crucially n grwing a market demand in the varius energy sectrs. Hwever, at 24

37 present public awareness f the existence f renewable energy r its ecnmic, envirnmental and scial benefits, is grwing at a limited pace. The awareness shuld aim: T prmte knwledge f renewable energy and thereby increase its use; T prmte and stimulate the renewable energy market thrugh the disseminatin f infrmatin regarding the ecnmic, envirnmental, scial and trade benefits f renewable energy technlgies and their applicatins; T persuade the apprpriate Gvernment and Gvernment funded institutins t implement training and educatin prgrammes with regard t renewable energy; T actively invlve wmen in decisin-making and planning and prmte empwerment in renewable energy prgrammes r activities; and T imprve cmmunicatin and interactin between natinal, prvincial and lcal Gvernment institutins n renewable energy plicies. 2.4 Mtivatin fr Renewable Energy The implementatin and use f renewable energy technlgies will hld a number f advantages and benefits fr the NWP and cnsequently the cuntry as a whle: Prvisin f energy fr rural cmmunities, schls and clinics that are far frm the natinal electricity grid; Creatin f an envirnment where access t electricity prvides rural cmmunities with the pprtunity t create an ecnmic base via agricultural and hme-based industries and Small, Medium and Micr Enterprises (SMMEs) in rder t grw their incme-generating ptential; The supply f water within rural cmmunities; It wuld result in less time taken fr the cllectin f wd and water, thus imprving the quality f life within cmmunities and specifically fr wmen; Imprved health thrugh the reduced use f fuelwd as energy surce fr cking and heating that causes respiratry and ther hazards; Slar water heating fr husehlds in urban and rural settings, reducing the need fr either electricity (in urban settings) and fuelwd (in rural settings) t heat water, thus lwering ur Natinal peak demand and cnservatin f wdlands in a sustainable manner; Large-scale utilisatin f renewable energy will als reduce the emissins f carbn dixide, thus cntributing t an imprved envirnment; The fact that RE g hand-in-hand with energy efficiency, it will result in additinal financial benefit and the need fr smaller RE systems; The develpment f a strng lcalised RE industry within the NWP hlds substantial ptential fr BEE and jb creatin within the Prvince; The establishment f a strng RE base in the NWP, especially in the manufacturing f fuel cells culd stimulate the market fr Platinum Grup Metals (PGM), which wuld in turn help ur lcal mining sectr. 25

38 This is due t renewable surces f energy having cnsiderable ptential fr increasing security f supply by diversifying the energy supply prtfli and increasingly cntributes twards a lng-term sustainable energy future. In terms f envirnmental impact, renewable energy generatin results in the emissin f less GHGs than fssil fuels, as well as fewer airbrne particulates and ther pllutants. Furthermre, renewable energy generatin technlgies save n water cnsumptin in cmparisn with cal-fired pwer plants. 26

39 3 NORTH WEST PROVINCE RENEWABLE ENERGY STATUS QUO Renewable energy is defined by the Department f Energy as energy harnessed frm naturally ccurring surces f energy, such as slar, wind, bimass, hydr, tidal, wave, cean current and gethermal, t prduce electricity, gaseus and liquid fuels, heat r a cmbinatin f these energy types. Suth Africa is well endwed with renewable energy resurces with the ptential t prduce energy frm bimass, wind, slar, small-scale hydr and waste; these resurces remain largely untapped. The main use fr the renewable energy wuld be pwer generatin and nn-electric technlgies such as slar water heating and bi fuels. A basic breakdwn f the varius renewable energy surces is prvided in Figure 2 belw. Figure 2: Breakdwn f renewable energy surces. The sectins that fllw will cnsider each f these renewable energy surces in brief and then prvide the applicability and ptential f each as it pertains t the Nrth West Prvince in particular. Als shwn in Figure 2 are the tpics f energy efficiency and cgeneratin since they are als relevant t the issue f prmting renewable energy within the Nrth West Prvince. They will als be discussed in mre detail in the sectins that fllw. 27

40 3.1 Renewable Energy Surces, Applicatins and Ptential The mere availability f a renewable energy resurce des nt mean that the resurce can readily be used as an energy surce. T utilise a resurce several factrs need t be cnsidered that are unique t each renewable energy surce, the lcatin f use, the actual use, etc. In the sectins that fllw the availability f each f the mentined renewable energy surces is evaluated fr ptential and applicability t the Nrth West Prvince Slar Energy Slar energy cmprised f different categries, the well-knwn are namely: slar Phtvltaic (PV), Cncentrated Slar Pwer (CSP) and Slar Water Heating (SWH). Suth Africa experiences sme f the highest levels f slar radiatin in the Wrld. The average daily slar radiatin in Suth Africa is apprximately 7,500 MJ/m 2, which are high cmpared t the United States and Eurpe. This fact is eched in Figure 3 where the average slar irradiatin fr Suth Africa is shwn against that f Germany. The average slar irradiatin fr Germany is belw 1,100 kwh/m 2. Here residential grid parity will be reached in the very near future. Suth Africa hwever has an average slar irradiatin f well ver 2,250 kwh/m 2, which is mre than duble that f Germany. Figure 3: Cmparisn f annual slar irradiatin in Suth Africa vs. Germany (Surce: Jint Research Center f the Eurpean Cmmissin; PVGIS; BCG analysis) Mst areas in Suth Africa average mre than 2,500 hurs f sunshine per year. The use f slar energy is the mst readily accessible resurce in Suth Africa and specifically the Nrth West Prvince. Figure 4 belw shws the annual slar radiatin (direct and diffuse) fr Suth Africa, which reveals cnsiderable slar resurce ptential fr slar water heating applicatins, slar 28

41 phtvltaic and slar thermal pwer generatin. The NWP in particular has a very gd slar ptential with an average daily slar radiatin greater than 8,000 MJ/m 2. Figure 4: Annual direct and diffuse slar radiatin (DOE, Eskm, CSIR, 2001). If we cnsider the annual slar radiatin seen in Figure 4, the relative values fr the annual slar radiatin can be determined fr each f the fur district municipalities in the Nrth West Prvince cmpared t the maximum and minimum values fr Suth Africa. This is prvided in Table 2. 29

42 Table 2: Glbal annual slar radiatin f the Nrth West Prvince relative t Suth African maximum and minimum lcatin values. Descriptin Annual Slar radiatin range [MJ/m 2 ] Relative t SA maximum Relative t SA minimum Maximum in SA 9,001 9, Dr Ruth Segmtsi Mmpati District Municipality Ngaka Mdiri-Mlema District Municipality Bjanala Platinum District Municipality Dr Kenneth Kaunda District Municipality 8,501 9,000-5% 40% 8,501 9,000-5% 40% 8,001 8,500-11% 32% 8,001 8,500-11% 32% Minimum in SA 6,000 6, Cmpared t a lcatin such as Upingtn, which is cnsidered a prime lcatin fr slar energy prjects and als lcated within the area f maximum slar radiatin, the Dr Ruth Segmtsi Mmpati and the Ngaka Mdiri-Mlema District Municipalities receive n average nly 5% less slar radiatin than Upingtn. The Bjanala Platinum and the Dr Kenneth Kaunda District Municipalities nly receive apprximately 11% less slar radiatin than Upingtn. Alternatively, these fur district municipalities n average receive 40% t 32% mre slar radiatin than the lcatins with the least slar radiatin in Suth Africa (such as Durban). The Nrth West Prvince cnsequently shws cnsiderable ptential fr slar applicatins in renewable energy as a whle, with higher ptential in the Dr. Ruth Mmpati district municipality and the Ngaka Mdiri-Mlema district municipality. There are unfrtunately sme areas within these district municipalities where the pssibility f a grid cnnectin pse a challenge. Slar technlgies are either slar thermal cllectrs r phtvltaic. Slar energy can be used t generate electricity; heat water; and t heat, cl and light buildings. Fr example, phtvltaic systems capture the energy in sunlight and cnvert it directly int electricity. Alternatively as is the case with CSP, sunlight can be cllected and fcused with mirrrs t create a high intensity heat surce that can be used t generate electricity by means f a steam turbine r heat engine. The NWP has a favurable climate cnducive t the use f all slar energy technlgies, ranging frm thermal (heat) t PV (electricity) applicatins. The ptential uses and applicatins include: Fr electricity (phtvltaic and slar thermal) generatin, ranging frm small t medium scale stand-alne applicatins t large-scale grid-cnnected applicatins; 30

43 Slar passive building design practice fr residential, cmmercial and industrial buildings t minimise thermal energy cnsumed; Slar water heating fr dmestic, recreatinal, institutinal and industrial use; Slar space heating - clsely related t slar passive and active building design practice and can als include slar water heating technlgies; Slar ckers as an alternative t cking with fuel wd in the rural areas; and Agricultural use (e.g. crp drying, greenhuses), especially fr small-scale farming. The NWP has a very gd ptential in terms f SWH with an average daily slar radiatin greater than 8,000 MJ/m 2, particularly in the western parts f the prvince where the average daily slar radiatin is abut 8,500 MJ/m 2 and higher. This can prduce 275 MW/km 2 (assuming 10% slar t pwer cnversin and a 28% capacity factrs t accunt fr the average sunshine hurs per day). There is als cnsiderable ptential in the use f large scale PV r CSP. Optimal regins fr CSP are thse withut large amunts f atmspheric humidity, dust and fumes. They include steppes, bush, savannahs, semi-deserts and true deserts, ideally lcated within less than 40 degrees f latitude nrth r suth (Nrth and Suthern Africa are amng the mst prmising areas f the wrld) where 1 km 2 f land is enugh t generate as much as GWh f slar electricity a year using slar thermal technlgy. Like cnventinal pwer plants, CSP plants need cling at the s-called cld end f the steam turbine cycle. This can be achieved thrugh evaprative (wet) cling where water is available, r thrugh dry cling (with air) bth cnventinal technlgies. There are several advantages that CSP has ver PV systems: Slar energy can be stred using mlten salt befre cnverting the heat t electricity and s prvide cnstant energy supply; CSP prvide a mre stable lad t the grid and can be used t tp up electricity at peak perids, r t supply base lad pwer; The "energy payback" f CSP systems, taking int accunt the energy expended in their manufacture, is abut five mnths, and they have a useful life f apprximately 30 t 40 years, hwever the PPA current renewable energy prgramme is fr a perid f 20 years nly. There is a gd ptential fr CSP in NWP. A high level f direct nrmal irradiatin (DNI) is needed fr the peratin f CSP plants, typically 2,500 kwh/m 2 /yr is recmmended. There is ample slar radiatin and land available with <1% slpe that is nt cvered by threatened vegetatin. Hwever, the distance t the mainline transmissin grid is an bstacle since there are few pprtunities t feed in t sub-statins in NWP. Althugh the initial investment csts in slar technlgy is extremely high, CSP ffers advantages as an established and mdular technlgy with n mving parts (therefre little maintenance) that can be applied at different scales. In many cases the capital csts are nly recvered after 7-10 years f perating PV slar and this huge initial cst is unaffrdable by many Africans, particularly the rural pr. Anther barrier fr CSP plants in the NWP is the fact that it requires large quantities f water and that it need t be lcated clse t a suitable water surce. These 31

44 plants typically require in the rder f 3.27 m 3 /MWh in the case f wet cling. It is evident that a large-scale CSP facility will nly be feasible fr the NWP if dry r ther water-wise methds are implemented. Slar thermal cllectrs fr ht water are efficient and have little envirnmental detriment, making them very attractive n a life-cycle basis. There is cnsiderable scpe t increase the applicatin f slar water heating, which wuld cntribute favurably t electricity demand-side management and deferral f new generatin capacity. An increasing market fr slar water heating wuld result in grwth in the relevant manufacturing industry and increased emplyment pprtunities. In rural settings, the applicatin f slar cllectrs at husehld level can reduce the burdens n wd and fssil fuels that are ften used t heat water (fr cking, bathing and laundry). The Nrth West Prvince definitely has a cmpetitive advantage t many f the ther prvinces when it cmes t renewable energy prjects that fcus n slar. Only the Nrthern Cape has slightly mre ptential. The study f the resurces and available technlgies enable apprpriate energy ptins fr the different district municipalities t be priritised in terms f their suitability fr sustainable develpment. In this assessment, nly established cmmercial technlgies are cnsidered; emerging r develping technlgies that may be near cmmercial scale are nt cnsidered. The fur district municipalities: Ngaka Mdiri Mlema (Central), Dr Kenneth Kaunda District Municipality (Suth), Bjanala Platinum District Municipality (East), Dr. Ruth Mmpati District (West) are assessed and rated fr mst apprpriate RETs in terms f sustainability fr slar applicatins. 32

45 Table 3: Priritised Slar technlgies fr different district municipalities f the NWP. RE Technlgy ptin Ngaka Mdiri- Mlema (Central) Bjanala Platinum (East) Dr. Ruth Mmpati (West) Dr Kenneth Kaunda (Suth) SWH High High High High PV High High High High CSP Medium Lw High Medium CST Medium Medium High High Please nte that the priritisatin prvided in Table 3 and Table 4 is nt based n the physical slar ptential nly, but n an apprach t identify RETs and energy prducts that are apprpriate t the biphysical resurces and needs f NWP and t priritise the mst apprpriate RE ptins in terms f sustainability. The sustainability criteria used t align the technlgy assessment within a framewrk f sustainable develpment n a technlgy-, ecnmic-, envirnmental-, scial level, as well as lcal benefits include the fllwing: Efficiency f the technlgy prcess r prcesses in terms f energy prduced frm the energy surce; The maturity f the technlgy; The mdularity f the technlgy; Size capacity & distributin; Mbility f the plant r technlgy; The predicted lifespan f the energy befre the plant needs t be de-cmmissined; Prducts frm the energy plant that are destined fr a defined market; The unit cst f the Energy return n investment r EROI; Capital expenditure (CAPEX); Operatinal expenditure r OPEX; GHG ftprint; Water ftprint; Bidiversity ftprint as the effect f the energy plant n the bidiversity; Waste ftprint; Jb creatin; The level f lcal human capacity t prduce and install the pwer plant; The amunt f skilled jbs created as a functin f the ttal jbs created; The change in incme per capita as a result f the energy-plant; 33

46 Other welfare benefits such as imprved access t transprt, electricity/ fuels, scial structure as a result f the energy plant; Change in land use & practices; Cnfidence in the security f energy supply; Degree f wnership and cntrl f the energy plant; Cmmunity acceptance; Equity; Guarantees n the prices fr RE supply; Ability t generate certified emissin reductins under the clean develpment mechanism; Other plicies, subsidies, incentives that are drivers fr the energy-plant; This prcess, tgether with an analysis f the human and natural resurces, helps discver the mst apprpriate RE ptins fr the NWP. This prcess was als fllwed fr the sectins that fllw with regards t the ther RE technlgies. The results prvided in Table 3 and Table 4 cnsequently take all f these sustainability criteria int cnsideratin t prvide the apprpriate ptential fr each slar technlgy within the district municipalities f the NWP, as well as the ecnmic sectrs within the NWP. The abve prcess was hwever nt replicated in this study and the results were btained frm a reprt n the technical assessment f the renewable energy surces and ptential fr the Nrth West Prvince. 34

47 Table 4: Ecnmic sectrs t benefit mst frm Slar RETs. Descriptin SWH PV CSP CST Agriculture High High Lw Medium Mining High High High High Manufacturing High High High High SME High High Medium Medium Dmestic High High Lw Lw Gvernment / Municipality High Medium Lw Lw Slar technlgies hld the greatest ptential fr the prvince since there is a favurable slar inslatin and suitable area t install slar energy technlgies. The applicatin f dmestic slar water heaters has the greatest benefit with cnsideratin f the energy return per unit cst with little envirnmental detriment r changes in land use. SWH are applicable t all sectrs within the NWP. One cncern with regards t the rll-ut f SWHs t lw incme husehlds is the fact that these husehlds still need t pay a fee, even thugh it is cnsidered minimal, it is prhibitive t these husehlds. The ptential fr CSP and CST is als a pssibility fr the Nrth West Prvince, but the requirement fr extremely large quantities f water will mst likely push a large prtin f the develpment int the ther prvinces with larger water resurces. Their applicatin is apprpriate fr Industry, Mining and Municipalities t sme degree. As mentined abve, the greatest ptential fr slar is in the western parts f the prvince (mre land availability and higher slar inslatin), but the lack f mainline transmissin grid will be a limiting factr fr large-scale CSP prjects that aim t feed-in t the electricity transmissin grid. The applicatin f PV fr electricity, tgether with SWHs hlds the mst viable RE ptential fr the NWP. Unfrtunately the NWP is cmpeting fr PV prjects in the Nrthern Prvince which has a slightly higher slar resurce available. The NWP is als cmpeting with the Western Cape which has a fairly gd slar resurce and the added advantage f a gd grid cnnectin system. The Nrth West des hwever have a substantial cmpetitive advantage ver prvinces like Gauteng that has land availability cnstraints Bimass and Waste-t-Energy Bimass is bilgical material derived frm living, r recently living rganisms. In the cntext f bimass fr energy this is ften used t mean plant based material, but bimass can equally apply t bth animal and vegetable derived material. Bimass includes primary, secndary, and tertiary surces such as: Primary bimass - perennial shrt-rtatin wdy crps and herbaceus crps, the seeds f il crps, and residues resulting frm the harvesting f agricultural crps 35

48 and frest trees (e.g., wheat straw, switch grass, miscanthus, hemp, srghum, sugarcane, crn stver, and the tps, limbs, and bark frm trees). Secndary bimass - these result frm the prcessing f primary bimass resurces either physically (e.g. the prductin f sawdust in pulp and paper mills, bagasse frm sugar mills and ther rganic wastes frm industries), chemically (e.g., black liqur frm pulping prcesses), r bilgically (e.g., manure prductin by animals). Tertiary bimass - pst-cnsumer residue streams f rganic waste, including animal fats and greases, used vegetable ils, packaging wastes and cnstructin and demlitin debris. The use f bimass fr energy traditinally invlves the cllectin f firewd, ften frm indigenus frests. This nt nly results in an envirnmental burden (reduced CO 2 sequestratin due t nn-renewable utilisatin), but als presents a scial burden since wmen and children are largely respnsible fr menial chres such as the cllectin f firewd and water. The imprved methds f cmbustin (i.e. clean stves that are mre efficient and that emit fewer pllutants) when cmbined with sustainable utilisatin f wd bimass can als drastically benefit rural cmmunities. There are ther bimass resurces that have been explred, including humanure and municipal waste, animal manure and abattir waste, invasive plants, bi-algae frm wastewater treatment pnds and agricultural crps and waste. The technlgies that can be used t generate energy frm these bimass surces include cmbustin, pyrlysis, gasificatin, anaerbic digestin fr bigas, il extractin and transesterificatin fr bidiesel, as well as fermentatin t prduce biethanl. Many f these technlgy ptins have the ptential t prduce electricity and/r valuable liquid fuels and als have the additinal benefits f reducing envirnmental burdens f waste treatment. The bienergy technlgies that use waste prducts are particularly relevant in rural areas that ften d nt have municipal services fr refuse cllectin and dispsal, r municipal wastewater treatment plants fr treatment f husehld sewage. In this instance, waste ften represents a scial, ecnmic and envirnmental burden and nt a valuable resurce. Many f these bienergy ptins can be applied n small, medium and large scale, thereby fulfilling needs f husehlds, cmmunities and industry. The technlgies f bigas prductin (frm husehld sewage and agricultural waste) is particularly attractive in rural areas, since it can prvide the synergistic benefits f treating waste and prviding bigas energy fr cking and heating. This can als reduce the pressure n the unsustainable harvesting f bimass (indigenus frest wd). In Suth Africa (and Africa as a whle) the implementatin has been generally minimal, despite the high csts f alternatives in rural settings such as the cnstructin and servicing f ventilatin imprved tilets. The initial capital csts and the maintenance levels required have been higher than expected and husehld-level peratinal experience has been lacking. There are thermal cnversin technlgies fr bimass (pyrlysis, gasificatin, cmbustin) that can be used t generate heat and electricity. There is the pssibility t utilise wd bimass r charcal fr the c-cmbustin in kilns used in industry, especially mining. There is als the pssibility t generate liquid fuels thrugh gasificatin and Fischer-Trpsch synthesis based n established technlgies in Suth Africa. One system that shws 36

49 substantial ptential is the BeauTi-fueL prject by NECSA and the University f the Witwatersrand. This system cmbines plasma technlgy with the Fischer-Trpsch prcess t result in a mdular system able t generate electricity and/r bifuels frm varius bimass surces. The system is nt in cmmercial peratin at this stage and is currently under develpment. Its ecnmic viability needs t be determined nce a pilt system is peratinal. This system is als designed t be mdular in size, making it extremely applicable fr municipal landfill sites. Key bimass resurces that play a rle in terms f renewable energy are invasive alien plants (e.g. extic acacia species like black wattle and Prt Jacksn). The invasive alien species (IAPs) are prly mapped in the NWP, but represent a burden t sciety and the envirnment. There is the pprtunity t frm new partnerships with WFW, Landcare, farmers and SMEs fr the creatin f energy frm IAP with a cst reductin in the IAP eradicatin that is planned as part f the gvernmental Wrking fr Water prgramme. An estimated 515 MW f energy is available frm IAPs in the prvince and, as such, bimasst-energy culd be cupled with management plans fr bush encrachment by indigenus species One rute fr the enhanced delivery f services (energy, water, sewage) is t synergise these develpment plans s that cst-reductin and increased efficiency is btained. Fr example, agricultural manure and humanure (sewage) can be used t generate methanerich bigas thrugh anaerbic digestin bth represent an energy ptential f 199 MW. The municipal slid wastes (MSW) have an energy ptential f 304 MW and can be used t prduce energy either thrugh cmbustin t electricity, bigas (landfill gas) r using bimass-t-liquid Fischer-Trpsch technlgy. Energy frm bigas is apprpriate fr husehlds, agriculture, SME, municipalities industry and mining with the added benefit f reducing the csts f treating wastes that may translate int imprved efficiency f municipal services and additinal envirnmental benefits. Hwever, the use f bimass in the residential sectr is ften excluded frm renewables as it is nt viewed as a sustainable resurce and impacts negatively n health. Figure 5: Annual rainfall (mm/yr) f Suth Africa. 37

50 Figure 6: Annual rainfall (mm/yr) f the NWP. If we cnsider Figure 5 and Figure 6, it is clear that the average annual rainfall f the Nrth West Prvince is limited cmpared t ther areas in the cuntry. It typically ranges between 200 mm/yr t apprximately 500 mm/yr. Only in very limited areas des the rainfall reach between mm/yr. This, in cnjunctin with fd security, makes the NWP a less attractive ptin in terms f energy crps such as: Sugarcane; Sugarbeet; Sybeans; Canla; and Sunflwer. In Figure 7 the ttal ptential bimass energy in Suth Africa is represented as mdelled by the Renewable Resurce Database (RRDB). This ptential takes the fllwing surces f bimass int cnsideratin: Wd Agricultural Grass residues The Nrth West prvince cnsequently has a lw (1-50 GJ/ha/yr) ptential fr these surces f bimass accrding t Figure 7. 38

51 It can be seen that the cumulative bimass ptential fr wd, agriculture and grass residues range (primarily) frm 1-50 GJ/ha/yr t GJ/ha/yr in very limited areas. Figure 7: Ttal bimass energy ptential fr Suth Africa (DOE, Eskm, CSIR, 2001). The severity f field degradatin is the third highest f all the prvinces in Suth Africa, and bush encrachment remains a serius prblem. There are IAP species (apprximately 400,000 ha amunting t 3.5% f the ttal surface area). The IAP bimass estimate is 1,083,788 tnnes and, if utilised in a year, culd generate 515 MW f energy. This, hwever, represents a nn-renewable resurce but is the gvernment mandate t eradicate IAP. Althugh waste is generally cnsidered a burden that necessarily incurs energy csts in prcessing befre it can safely be released int the envirnment; it can als be cnsidered a valuable energy resurce. Waste cnsists f: General waste des nt pse an immediate threat t man r the envirnment, i.e. husehld waste, builders rubble, garden waste, and certain dry industrial and business waste. It may, hwever, with decmpsitin, infiltratin and perclatin, prduce leachate, which is unacceptable. Hazardus waste assciated with the chemical reactivity r txic, explsive, crrsive characteristics psing a danger t health r the envirnment. Health care risk waste (medical waste) generated at health care facilities (e.g. hspitals, clinics, labratries, medical research institutins, dental and medical practitiners). 39

52 Mining waste debris, discard, tailings, slimes, screening, slurry, waste rck, fundry sand, ash r any ther prduct derived frm mining peratin. Pwer generatin waste prduced by r resulting frm activities fr the generatin f electricity. Radiactive waste radiactive material t be dispsed f as waste material. Waste generatrs in the NWP cnsist f municipalities, infrmal settlements, industries, hspitals, agriculture and mines. The ttal dispsable waste is apprximately 1,625,000 m 3 /year (r abut 0.5 m 3 /year per persn). Sme f the main waste management features are: There are 63 landfill sites, all f which accept general waste. The ttal remaining airspace in landfill sites is apprximately 5 millin m 3, f which nly 17% meets minimum requirements. Nne f the regins have mre than 3.5 years f acceptable landfill sites. Mst f the twns have established sanitary landfill dispsal sites fr all waste within their jurisdictin, and regular industrial inspectins are made in an attempt t cntrl the dispsal f untreated industrial effluent and slid material, but with the reprtedly high levels f hazardus waste there is need fr additinal resurces in the area f waste dispsal and cntrl. As seen in Figure 8, the vlumes f general waste cincide with the mst develped and ppulated areas f NWP. 40

53 Figure 8: General waste vlumes per year and landfill sites (DOE, Eskm, CSIR, 2001). The largest ptential energy is cntained in municipal slid waste when cnsidering the NWP. This ptential energy is between 169 MWth and 304 MWth. This is als mst likely the easiest t harness due t the fact that this waste is primarily cncentrated n landfill sites perated by the varius municipalities. Agreements with municipalities seem t pse a barrier t implementatin since these agreements are usually made fr a 3-year term, but t btain the actual agreement takes a substantial amunt f time. These prjects als tend nt t be extremely cmpetitive when cmpared t ther RE prjects that are viable fr the NWP. This may hwever vary n a prject-by-prject basis. Frm Table 5 it is seen that the largest ptential fr bimass in the NWP currently resides within municipal slid waste. 41

54 Table 5: Energy ptentials (MWth) frm municipal slid waste, sewage and animal manure in the NWP. Activity Quantity Characteristics Energy Ptential Municipal slid waste Dmestic (sewage) 645,455 in ttal. 355,000 tn/year currently prcessed at municipal landfill sites. 327 tn per year but presently nly 1,577,079 flush tilets serviced by municipal WWTP f NWP. Cnstant supply. Mixed bidegradable and nnbidegradable waste. Energy cntent=15 MJ/kg dry mass. Each persn generates average 100 g/day dry faeces. Mstly bidegradable 3,271,948 persns (2007) in NWP. Energy cntent = 15 MJ/kg dry mass. 304 MWth but presently 169 MWth, (55% slid wastes are cllected). 57 MWth but presently 27 MWth (48% cnnected t municipal sewage) Animal husbandry (manure) Pultry Beef cattle Dairy cattle Pigs Number animals per year 5,838,240 1,475, , ,002 Mstly bidegradable g/day dry manure: Pultry - 10 g/day Cattle - 4,000 g/day Pigs 2,000 g/day Energy cntent=15 MJ/kg dry mass. Pultry: 108 MWth Beef cattle: 27 MWth Dairy cattle: 5 MWth Pigs: 2 MWth Ttal: 142 MWth Nte: assumes 100% captured, but< 50% can be captured with current practice i.e. 71 MWth Oil waste 60 kl per year used cking il. Density 0.92 g/ml, 55,200 kg il Energy cntent = 37MJ/kg MWth Different technlgies will be apprpriate fr the different types f waste and the mst apprpriate technlgy needs t be mapped t the apprpriate waste. The mst imprtant factrs are the percentage f bidegradable matter in the waste since this will determine whether it can be accessed by bienergy technlgies (anaerbic digestin and fermentatin) r thermal cnversin technlgies (cmbustin, gasificatin and pyrlysis). The percentage f water als plays a majr rle. Many waste dispsal mechanisms use water as a carrier (i.e. sewage) and a high percentage f water makes thermal cnversin technlgies less apprpriate cmpared t many bienergy technlgies.. The energy ptential frm manure is 142 MWth t 761 MWth. This is hwever widely dispersed ver the NWP, which will make these prjects less cmpetitive when cmpared t ther RE prjects that are viable fr the NWP. There is als sme ptential within dmestic sewage (27 MWth 57 MWth). Table 6 prvides the priritised bimass technlgies fr the different district municipalities within the NWP. The ptential fr bigas is high acrss the whle prvince, whilst the ptential fr bimass t liquids is medium t lw acrss the prvince. Please nte that the priritisatin prvided in Table 6 is nt nly based n the physical bimass ptential nly, but n an apprach t identify RETs and energy prducts that are apprpriate t the biphysical resurces and needs f NWP and t priritise the mst apprpriate RE ptins in terms f sustainability. 42

55 Table 6: Priritised Bimass technlgies fr different district municipalities f the NWP. RE Technlgy ptin Ngaka Mdiri- Mlema (Central) Bjanala Platinum (East) Dr. Ruth Mmpati (West) Dr Kenneth Kaunda (Suth) Bimass fr bigas Bimass t liquids (FT) High High High High Medium Medium Lw Medium The invasive alien species are prly mapped, and represent a nn-renewable surce. There is the pprtunity t frm new partnerships with WfW, LandCare, farmers and SMEs fr the creatin f energy frm IAP with a cst reductin in the IAP eradicatin that is planned as part f the gvernmental WfW prgramme. An estimated 515 MW f energy is available frm IAPs. This surce is hwever again highly dispersed acrss the NWP, which wuld make it less cmpetitive cmpared t ther RE prjects. This pprtunity culd hwever pssibly be cupled with management plans fr bush encrachment by indigenus species. This surce is hwever again highly dispersed acrss the NWP, which wuld make it less cmpetitive cmpared t ther RE prjects, unless the prject culd piggy-back n ther initiatives as mentined abve. The grwing f energy crps (agricultural) within the NWP is nt a cmpetitive r viable ptin since it is directly related t water usage and availability. The NWP prduces much lwer yields when cmpared t natural high yield and wetter areas such as Kwazulu-Natal r Mpumalanga. This fact that the yields/ha in the NWP is als lwer when cmpared with ther ptential sites wuld frce prject develpers t bring feedstck in frm a wider area t btain the same yield scale, which wuld in turn increase the transprt csts and verheads assciated with the prject. The prject wuld cnsequently nt be able t cmpete with prjects implemented in generally mre suitable areas such as Kwazulu-Natal r Mpumalanga. The arable land wuld als mst likely rather be utilised fr fd prductin. The use f nrmal fd crps as energy crps wuld als negatively impact n fd security. Energy crps cnsequently d nt pse a cmpetitive strength fr the NWP. It is expected that Kwazulu-Natal and Mpumalanga will dminate the bimass investment under the RE IPP prgramme because the sugar and paper industries are primarily lcated here. Municipal slid wastes shw the largest ptential fr RE in the NWP and have an energy ptential f 304 MW r less. It can be used t prduce energy either thrugh cmbustin t electricity, bigas (landfill gas) r using bimass-t-liquid Fischer-Trpsch technlgy. It is here where a pssible linkage with the BeauTi-fueL prject by NECSA and the University f the Witwatersrand culd be explred further. There is hwever a strng crrelatin between waste prductin and ppulatin density, GDP, feedlts, etc. The mining sectr in the NWP des als nt prduce waste that is exceptinally gd fr WtE prjects when cmpared t sugar mills and plantatin mills which are lcated in Kwazulu-Natal fr instance. The industrial waste fund in the NWP when cmpared t sme f the ther prvinces cnsequently des nt give the NWP a cmpetitive advantage ver the ther prvinces. 43

56 3.1.3 Bifuels Bifuel is a prduct f rganic material. Bi-fuels in liquid frm can be prduced frm the cnversin f bimass and used, fr example, fr transprtatin. The tw mst cmmn bifuels are ethanl and bi-diesel. Fermenting any bimass that is rich in carbhydrates, such as maize, makes ethanl. Bidiesel is made using vegetable ils, animal fats and algae. Varius crps can be fermented t prduce ethanl and sunflwer seeds and Jatrpha tree nuts crushed and prcessed t yield bi-diesel. Cnsiderable scpe exists t supplement imprted petrleum with bi-fuels with their jb-creatin spin-ffs. There is als cnsiderable ptential fr the prductin f bifuels frm energy crps such as maize, sunflwers and the Jatrpha tree. Care shuld hwever be taken nt t create an envirnment where fd prductin and security is negatively impacted. The agricultural prductin f bimass fr bifuels may cmpete directly r indirectly (thrugh land-use changes) with fd prductin, thereby affecting fd prices. Bifuels als present a ptential cmpetitin between bifuels prductin and the use f bimass resurces fr animal feeding, bedding, fertiliser and cnstructin materials. An alternative ptin is il rich crps such as Jatrpha. Hwever, Jatrpha has the ptential t becme an invasive weed and, fr this reasn, Jatrpha has nt been apprved fr bifuels prductin in Suth Africa. The general lack f rainfall and sil fertility in NWP als pses severe limitatins n the ability t prduce bifuels frm agricultural residues. Table 7: Priritised Bifuel technlgies fr different district municipalities f the NWP. RE Technlgy ptin Ngaka Mdiri- Mlema (Central) Bjanala Platinum (East) Dr. Ruth Mmpati (West) Dr Kenneth Kaunda (Suth) Biethanl Nne Nne Nne Nne Bidiesel Nne Nne Lw Lw There are cnsequently limited pprtunities fr liquid bifuels (bidiesel) prductin in the NWP frm agricultural feedstcks since there is a relatively pr agricultural ptential (lw rainfall and pr sil quality). The Nrth West Prvince has n cmpetitive advantage in the field area f bifuels Fuel Cell Technlgies A fuel cell is a device that cnverts the chemical energy frm a fuel int electricity by means f a chemical reactin with xygen r anther xidizing agent. Hydrgen is the mst cmmn fuel used, but hydrcarbns such as natural gas and alchls like methanl are smetimes als used. Fuel cells are different frm batteries in that they require a cnstant surce f fuel and xygen t run, but they can prduce electricity cntinually fr as lng as these inputs are supplied. Fuel cells cme in a variety f sizes. Individual fuel cells prduce very small amunts f electricity, abut 0.7 vlts, s cells are "stacked", r placed in series r parallel circuits, t increase the vltage and current utput t meet an applicatin s pwer generatin 44

57 requirements. In additin t electricity, fuel cells prduce water, heat and, depending n the fuel surce, very small amunts f nitrgen dixide and ther emissins. The energy efficiency f a fuel cell is generally between 40-60%, r up t 85% efficient if waste heat is captured fr use. Fuel cells are clean, envirnmentally friendly, with n harmful CO 2 emissins at the pint f use The hydrgen ecnmy is ne apprach underging serius cnsideratin in Suth Africa. This invlves the use f hydrgen as a carrier f energy t stre and distribute energy, cmbined with the use f fuel cell technlgies t prduce electricity. Cnverting hydrgen gas t electricity in fuel cells des nt destry the hydrgen, but transfrms it int water. Althugh hydrgen can be prduced frm energy frm any hydrcarbns, including fssil fuels, the emphasis in Suth Africa is upn develping hydrgen frm renewable energy surces at this stage. Suth Africa pssesses several cmpetitive advantages in the field f hydrgen and fuel cell technlgies: Platinum grup metals (PGM) are the key catalytic materials used in mst fuel cells. With 75% f the wrld s knwn PGM reserves fund in Suth Africa (f which the majrity is situated within the Nrth West Prvince), this is a significant driver twards the hydrgen ecnmy, due t the immense sci-ecnmic ptential benefit t be btained frm adding value t natural resurces, such as platinum, as well as increased demands fr PGMs with the glbal uptake f such an ecnmy. The extensive expertise in catalysis required fr research and develpment f this type has been develped in Suth Africa thrugh industry investment, f which ne f the Centers f Cmpetence is based in the Nrth West Prvince. The strategy f the hydrgen ecnmy has eight gals, and these are: t imprve the health f the natin; t create jbs; t alleviate energy pverty; t reduce envirnmental pllutin; t reduce carbn-dixide emissins; t imprve industrial cmpetitiveness; t enhance energy security; and t delay the need t build new pwer statins. All these gals are aligned t the RE strategy fr the Nrth West Prvince. Fuel cells cnsequently hld substantial ptential fr the Nrth West Prvince in terms f RE applicatins and lcalised manufacture, which wuld increase demands fr PGMs with the glbal uptake f such an ecnmy. The challenge and current barrier wuld be t develp a market fr fuel cells since they are generally mre expensive that cnventinal energy surces. 45

58 3.1.5 Wind Energy Wind energy uses the naturally ccurring energy f the wind either directly thrugh windmills r t generate electricity, and can be used, fr example, t charge batteries r pump water. Large mdern wind turbines perate tgether in wind farms t prduce electricity fr utilities. The castal regins f Suth Africa have the highest ptential fr pwer generatin frm wind. Unfrtunately the available wind pwer fr the Nrth West Prvince is lw, with wind speeds f less than 3 m/s fr the majrity f the Prvince as seen in Figure 9. Only a very small prtin f the Nrth West Prvince has mderate wind speeds f between 3 t 4 m/s which is nly marginal in terms f the wind speeds required t perate a viable wind farm (6+ m/s). Figure 9: Generalised map f wind pwer ptential in Suth Africa. The Department f Energy has established Suth African Wind Energy Prgramme (SAWEP). SAWEP is a Glbal Envirnment Facility (GEF) funded prgramme and aims t prvide dedicated supprt fr wind energy develpment in Suth Africa and t update the Wind Atlas fr Suth Africa which is be publicly available t prspective wind energy 46

59 develpers. The WASA numerical wind atlas cntains generalised wind atlas data sets fr tens f thusands f mdel grid pints in the WASA dmain. The WASA is an extremely valuable tl when designing and planning renewable energy prjects related t wind. The greatest ptential fr wind pwer is alng the castline f Suth Africa, where wind speeds average 6 m/s. The WASA has been develped fr the areas in Suth Africa that shw the largest ptential in general fr wind pwer generatin. Unfrtunately it excludes the Nrth West Prvince at this stage, which speaks fr itself in terms f the cmparative ptential that exists in the Nrth West Prvince. Figure 10: Simulated climatlgical (30-year) annual mean wind speed [m/s] 100 m abve grund level. This is nt t say that there is n ptential fr wind energy within the Nrth West Prvince, especially when cnsidering Figure 11. There is lw t mderate ptential in NWP with the western and central-nrth f prvince having an average f 4-5 m/s in certain lcatins. 47

60 Figure 11: Wind ptential in Suth Africa (A) and dcumented wind pumps in Suth Africa (B). Depending n the design f the wind turbine, wind speeds f at least 4 m/s is required, but the viability and ptential bviusly increase with higher sustained wind speeds, which is nt readily present within the NWP. Wind is als used widely t pump water with wind pumps fr irrigatin and dmestic purpses n remte farms. The use f wind pumps n farms is a cmmn ccurrence (cnsidering Figure 11) and the strategy will mst likely nt need t put measures in place t prmte the use f wind pumps in the agricultural sectr. The use f wind pumps will mst likely, in the rural cntext, nt ffset electricity use, but will prvide mre effective irrigatin capabilities. The wind-pumps prvide substantial benefits in rural cmmunities since the water is ften required t grw fd (agriculture) as well as fr daily husehld needs. Windpumps can reduce the time spent n cllecting water as well as enhancing agricultural prductivity. The wind speed is directly related t the pwer generatin f a wind farm. The levels f wind speeds fund in the Nrth West des hwever nt give the Nrth West Prvince a cmpetitive advantage ver the ther prvinces, such as the Eastern Cape and the Western Cape which are much mre suited fr electricity generatin frm wind farms. Renewable energy prject develpers, which want t ptimise their generatin utput, will mst likely nt select the Nrth West Prvince as a first chice since the cmpetitiveness f the RE IPP prgramme fr instance evaluate prjects n cst and utput perfrmance. A gd resurce will cnsequently drive the tariff dwn in a RE IPP bid, which wuld make the NWP less cmpetitive as a wind farm destinatin. Wind farms in the Nrth West can cnsequently nt viably cmpete with lcatins in ther prvinces that have wind speeds f 6 m/s (n average) r mre Hydrpwer Hydrpwer uses the mvement f water under gravitatinal frce t drive turbines t generate electricity. Hydrpwer is limited by its envirnmental impacts due t the flding f large areas and the displacement f peple fr the develpment f dams. Figure 12 shws the dams and rivers situated within the Nrth West Prvince. 48

61 Figure 12: Dams and rivers in the Nrth West Prvince. Althugh there is significant ptential fr the develpment f all categries f hydrpwer within Suth Africa, the ptential within the Nrth West is extremely limited. Only the Nrth and Nrth-eastern parts f the Nrth West prvince have sme ptential fr small hydrutilisatin belw 10 MW, but nt much. Less than 3% f the ttal arable land is under irrigatin. The three majr irrigatin schemes are lcated n the Crcdile, Vaal and Harts Rivers. The Vaal-Harts irrigatin scheme cvers a ttal area f abut 43,700 ha with wheat, maize and grundnut taking 36%, 23% and 22% respectively f the ttal irrigated fields. Small irrigatin schemes include Manyeding, Bdibe and Tlhaping-Tlhar. Irrigatin is limited t certain areas adjining river systems (Brits, Rustenburg, Taung and Mlp), as well as islated areas where irrigatin frm grund water surces is practiced (e.g. Ventersdrp area, Ottsdal area and Vryburg/Luwna area). Figure 13 shws all areas with hydr ptential in Suth Africa. Fr example, the Eastern Cape and KwaZulu-Natal prvinces are endwed with the best ptential fr the develpment f small, i.e. less than 10MW, hydrpwer plants. 49

62 Figure 13: Areas with micr hydr ptential in Suth Africa (DOE, Eskm, CSIR, 2001). When the NWP is cnsidered, the ptential fr hydrelectric pwer generatin is limited, with nly a limited ptential within the Eastern part f the NWP when pssibly cmbined with hybrid technlgies (slar and/r wind) fr the creatin f ff-grid r mini-grid pwer supplies. The ptential is hwever nt viable at all fr the remainder f the prvince. Based n the abve, hydrpwer is definitely nt cnsidered t present a cmpetitive strength fr the Nrth West Prvince when cmpared t the prvinces mre suited fr hydr. Hydr will cnsequently nt frm ne f the fcus areas during the develpment f the renewable energy strategy and implementatin plan Marine Pwer Wave pwer, tidal pwer and cean currents can be used t drive turbines t generate electricity. Technlgies t harness these frms f pwer are presently being develped t the stage f cmmercialisatin. This frm f renewable energy is unfrtunately nt available fr the land-lcked Nrth West Prvince Gethermal Gethermal activity in the earth s crust derives frm the ht cre f the earth. Examples are the natural geysers and ht water surces emplyed fr pwer generatin and space heating r using deep ht dry rck as heat exchangers by pumping water thrugh the natural rck fissures t prduce steam fr pwer generatin. This is hwever nt applicable in the case f the Nrth West Prvince and will nt be given further cnsideratin. 50

63 3.1.9 Cgeneratin Cgeneratin entails the generatin f electricity frm a waste heat surce. The cnstrained electricity envirnment in Suth Africa makes cgeneratin a viable ptin fr energy generatin at the cuntry s ferrchrme plants. Cgeneratin invlves the redirecting f waste ht and/r cmbustible gasses generated by an industrial plant fr the generatin f electricity that culd be used by the plant itself r sld t external custmers. The Suth African ferrchrme industry cnsumes apprximately 10% f the cuntry s verall installed electricity generatin capacity. By intrducing cgeneratin, it may be pssible fr the ferrchrme industry t generate between 10% and 17% f its wn electricity requirements. This figure may rise by a further 33% t 50% with the intrductin f new technlgies (e.g. heat recvery frm slag and ferrchrme metal which is currently lst t the envirnment). It is therefre pssible t generate mre than 2% f the ttal electricity demand f Suth Africa frm wasted energy recycled in the ferrchrme industry. Investment in cgeneratin facilities at the ferrchrme plants will reduce their verall electricity demand and imprve their cmpetitiveness. Suth Africa s electricity cnstraints have an impact n bth the dmestic and glbal ferrchrme industries. The cuntry has lng dminated the glbal ferrchrme industry, with ver 4.1-millin tns f installed capacity f integrated charge chrme smelters. The availability f electricity presents a mre serius threat t dmestic prducers. Accrding t Merafe, between 2.4 and 4.2 MWh f electricity are required t prduce ne tn f ferrchrme. The impact f electricity supply shrtages will be particularly negative n new investments and expansins t existing capacity. Retrfitting cgeneratin plants (i.e. electricity generatin frm waste heat and/r frm waste cmbustible gases) at ferrchrme smelters ffer substantial pprtunities fr dmestic ferrchrme prducers t imprve their energy efficiency and reduce their envirnmental impact. Capturing waste gasses frm plant prcesses is internatinally recgnised as an efficient methd f generating pwer at smelting plants. The Nrth West is a mining and prcessing prvince. There are ferrchrme smelting and prcessing plants, cement manufacturing factries and gld and uranium plants. There are 20 chrmite mines in the Nrth West. The mines are lcated alng a reef running frm Brits t Rustenburg and they are serviced by several ferrchrme smelters. Suth Africa prduces abut 70% f the wrld s chrme, with mst f that riginating in the Nrth West. Ferrchrme prductin cnsequently frms a big part f the Nrth West s heavy industrial capacity. If the heat that is t be recvered and used in the cgeneratin prcess was a by-prduct f peratins that were utilising fssil fuel-based energy, ne may dubt the ntin that such heat is renewable. The heat will f curse be renewable as lng as the waste heat surce remains available. The grwing uptake in the cgeneratin ptin by Suth Africa s large industrial players has the ptential t widen the cuntry s energy mix, whilst alleviating current pressure n the electricity grid and reducing greenhuse gas emissins. In additin, prperly designed and integrated cgeneratin facilities ffer industries a cst effective way t supplement r selfsupply their electricity requirements, particularly nce the capital investment is paid ff, as the fuel (waste) is basically free as lng as the plant is in peratin. 51

64 The largest barrier t the implementatin f cgeneratin prjects is the cst. Develpment and financial supprt is necessary t bring these technlgies t fruitin in Suth Africa and the Nrth West Prvince. The Minister f Energy has hwever annunced that a renewable cgeneratin rund will be launched under the RE IPP prgramme. This culd ptentially hld substantial pprtunity fr the NWP with its large number f smelters and furnaces cncentrated within the Prvince s industrial sectr Energy efficiency There are several areas f verlap between Renewable Energy and Energy Efficiency. Energy efficiency is a measure f the reductin f energy cnsumptin, which is used t prduce gds and services while maintaining the desired benefits. Energy efficiency is primarily active n the demand side; whist renewable energy is active n the supply side. The tw sectrs with the greatest ptential fr energy efficiency and renewable energy interventins are the industrial and residential sectrs, which is present in abundance in the NWP. Cal and electricity, cnstitute the bulk f energy cnsumptin in the industrial sectr. Electricity and fuel wd dminate the residential sectr with cal, paraffin and LPG, als playing a substantial rle. In bth sectrs these fuels are used primarily fr thermal purpses; heating and prcessing. The widespread installatin f slar water heating in industrial and cmmercial buildings and huses has the ptential t defer the need fr building new pwer plants which are a Natinal cncern. The main cnstraint n implementing a natinal slar water heating prgramme relates t cst, which is a functin f the current small market and lack f ecnmies f scale. This lack f demand in itself is due t lw public awareness f the technlgy r its ecnmic benefits. The levels f public awareness have hwever increased ver the past few years due t the substantial effrts by Gvernment and Eskm. Thermally efficient husing huses designed t be better insulated frm the utside and thereby reduce the energy requirements fr space heating. The Department f Husing in cllabratin with the Department f Minerals and Energy has develped apprpriate guidelines fr the cnstructin f thermally designed husing incrprating passive slar design. The husehld sectr requires the fllwing measures: Regulatin f n-cst energy efficiency measures in husing; Incrprating passive slar design; Heat insulatin and air tightness measures in hmes; Replacement f electric geysers by slar water heaters; Mre efficient hme electrical appliances as a result f appliance labelling and enfrcement f standards; and Energy efficient lighting (Cmpact Flurescent Lights). It will hwever be critical that the drive fr renewable energy in the NWP ges hand-in-hand with a drive twards energy efficiency. A system using the energy first need t be made energy efficient befre the energy supply is replaced with a renewable energy technlgy. This will ensure that smaller renewable energy systems need t be installed, thus requiring less investment int technlgies. 52

65 The drive by Eskm IDM s EEDSM prgramme, the rising cst f electricity and energy security has driven the develpment f Energy Service Cmpanies (ESC) in Suth Africa. Althugh a substantial number f ESCs are registered with Eskm IDM, nly a handful is viably active in the energy market. The largest prtin f the impacts achieved by ESC is in the mining and industrial sectr. The residential sectr has als benefitted thrugh the SWH prgramme. A number f funding mechanisms are available frm Eskm and ther institutins t leverage energy efficiency and demand management, but a lack f awareness and skills are limiting the grwth in the ESC industry. The develpment f the ESC industry needs t be increased in the Nrth West Prvince thrugh skills develpment, financial supprt and awareness creatin. This wuld increase the rllut f energy efficiency, demand management and ptentially the implementatin f renewable energy technlgies within the Nrth West Prvince. 53

66 4 STRATEGY DEVELOPMENT 4.1 Purpse and Statement f Intent The ptential fr the generatin and use f renewable energy within the NWP is immense. An extensive status qu assessment was cnducted during the develpment f this renewable energy strategy fr the NWP. The status qu assessment cnsidered the varius renewable energy resurces and technlgies that were available and viable t the NWP and identified thse that represented a cmpetitive strength fr the NWP. Extensive cnsultatin als tk place with numerus stakehlders during the status qu assessment. This was dne t establish the areas where the NWP culd attract, influence and facilitate the increased uptake f renewable energy generatin and use within the Prvince. The renewable energy fcus areas that were identified are the fllwing: 1. Slar water heating (paragraph 4.2.2); 2. Clean ck stves (paragraph 4.2.3); 3. Energy efficiency and Energy service cmpanies (ESCO) (paragraph 4.2.4); 4. Municipal slid waste (paragraph 4.2.5); 5. Slar phtvltaic (PV) technlgies (paragraph 4.2.6); 6. Cgeneratin and waste heat recvery (paragraph 4.2.7); 7. Hydrgen and Fuel cell technlgies (paragraph 4.2.8). The successful develpment f the abve-mentined renewable energy cmpetitive strengths and related fcus areas will ensure that the NWP make a valuable and meaningful cntributin twards grwing the green ecnmy within the prvince and Suth Africa. This will assist the NWP in creating green jbs and reducing GHG emissins, whilst making energy accessible and affrdable t bth the ppulatin f the prvince, as well as its significant industrial and mining sectr. The fcus areas will cntribute psitively t the health f the peple and the envirnment f the NWP Strategic Gals and Objectives Strategic gals and supprting bjectives will be instrumental in facilitating the develpment f an enabling framewrk in rder fr the NWP t meet its gal t prmte renewable energy. Fur key strategic areas have been cnsidered, i.e. financial instruments, legal instruments, technlgy develpment, and awareness raising, capacity building and educatin. Financial Instruments: The gal is t prmte the implementatin f sustainable renewable energy thrugh the leveraging and utilisatin f apprpriate existing and future financial instruments and partnerships within the prvince. Legal Instruments: The gal is t develp, implement, maintain and cntinuusly imprve an effective legislative system within the pwers f the NWPG t prmte the implementatin f renewable energy. 54

67 Technlgy Develpment: The gal is t prmte, enhance, supprt and develp technlgies fr the implementatin f sustainable renewable energy. Awareness Raising, Capacity Building and Educatin: The gal is t develp mechanisms t raise public awareness and build capacity within the industries and municipalities f the NWP n the benefits and pprtunities f renewable energy Targets The prpsed prvincial energy targets are adapted t lcal cnditins but based n the natinal targets listed belw. Table 8: Renewable Energy Targets Actin Renewable energy cnsumptin (electricity nly) 15% 30% 50% Carbn dixide emissins reductin (against 2000 levels) 15% 30% 45% Slar water heaters installatins 15% 50% 100% Clean Ck stve rll-ut units units units Frm Table 9 it is seen that the largest ptential fr bimass in the NWP currently resides within municipal slid waste. Table 9: Energy ptentials (MWth) frm municipal slid waste, sewage and animal manure in the NWP. Activity Quantity Characteristics Energy Ptential Municipal slid waste Dmestic (sewage) 645,455 in ttal. 355,000 tn/year currently prcessed at municipal landfill sites. 327 tn per year but presently nly 1,577,079 flush tilets serviced by municipal WWTP f NWP. Cnstant supply. Mixed bidegradable and nnbidegradable waste. Energy cntent=15 MJ/kg dry mass. Each persn generates average 100 g/day dry faeces. Mstly bidegradable 3,271,948 persns (2007) in NWP. Energy cntent = 15 MJ/kg dry mass. 304 MWth but presently 169 MWth, (55% slid wastes are cllected). 57 MWth but presently 27 MWth (48% cnnected t municipal sewage) Animal husbandry (manure) Pultry Beef cattle Dairy cattle Pigs Number animals per year 5,838,240 1,475, , ,002 Mstly bidegradable g/day dry manure: Pultry - 10 g/day Cattle - 4,000 g/day Pigs 2,000 g/day Energy cntent=15 MJ/kg dry mass. Pultry: 108 MWth Beef cattle: 27 MWth Dairy cattle: 5 MWth Pigs: 2 MWth Ttal: 142 MWth Nte: assumes 100% captured, but< 50% can be captured with 55

68 current practice i.e. 71 MWth Oil waste 60 kl per year used cking il. Density 0.92 g/ml, 55,200 kg il Energy cntent = 37MJ/kg MWth Table 10: Energy efficiency targets (DE) Actin Target Year Surce A natinal target fr energy efficiency imprvement 12% 2015 Energy Efficiency Strategy f the Republic Transprt Final Energy Demand Reductin 10% 2015 f Suth Africa, Residential Sectr Final Energy Demand 10% 2015 Department f Minerals and Energy, March 2005 Reductin Industry and Mining Final Energy Demand Reductin Cmmercial and Public Building Sectr Final Energy Demand Reductin Pwer Generatin an interim target f reductin in parasitic electrical usage Renewable energy target: GWh (0,8 Mte) renewable energy cntributin t final energy cnsumptin. This is equivalent t replacing tw (2x 660 MW) units f Eskm's cmbined cal-fired pwer statins r 1100 millin litres f diesel (14% f ne year) replaced with bidiesel 15% % % % 2013 White Paper n Renewable Energy Plicy, Nvember 2003 Electrificatin targets (universal access) 100% 2012 DME UAP and Thab Mbeki, 2004 Carbn dixide emissins reductin as per the Required by Science scenari Between 30% & 40% less than 2003 levels 2050 Lng-Term Mitigatin Scenaris, DEAT, Octber 2007 Ttal renewable capacity added MW IRP 2010 Nrth West has strng energy targets marked fr years 2015, 2025 and The natinal targets were set in a very different cntext f lw electricity prices, a new carbn market and pr regulatry framewrk fr renewable energy. Suth Africa has since then put in place a prcess t create a much mre cnducive envirnment fr energy efficiency and fr renewable energy. The bld targets are realisable if the will is there and the prpsed implementatin plan is fast tracked. All targets still need t be refined with final decisins being reached in cllabratin with stakehlders. The scenaris reprt illustrates the seriusness f the future sustainability f Nrth West prvince if there are n interventins t reduce the trajectry f energy cnsumptin int the future. Hwever, it is als clear that further wrk n the scenaris will need t be significantly mre ambitius than. 56

69 4.2 Renewable Energy Supply Optins fr Nrth West Each f these fcus areas are discussed in mre detail within the remainder f the renewable energy strategy. The barriers and challenges are prvided tgether with key actins that shuld be fcused n t increase the generatin and use f renewable energy within the NWP. The fcus areas and cmpetitive strengths have been selected t address nt nly the needs f the energy sectr, but t prvide a brader balanced benefit fr the industrial and mining sectr f the NWP, as well as the rural cmmunities that reside within the NWP Start Nw Optins The fllwing ptins are highlighted as start nw areas cnsidered as lw hanging fruit areas that shuld be embarked n by the prvince immediately. 1. Rll-ut f Slar Water Heaters acrss the prvince (see paragraph 4.2.2) 2. Rll-ut f Clean ck stves (see paragraph 4.2.3) Slar Water Heaters The high ptential f slar energy technlgies als directly applies t the use f slar water heaters (SWHs). The applicatin f dmestic SWHs has the greatest benefit with cnsideratin f the energy return per unit cst with little envirnmental detriment r changes in land use. Slar Water Heating is applicable t all sectrs within the NWP. The Eskm Slar Water Heating rebate prgramme was launched t stimulate the installatin f Suth African Bureau f Standards (SABS) tested high pressure slar water heater (HPSWH) and lw pressure slar water heater (LPSWH) systems int the Suth African market via the reductin f the installed cst f these systems t end cnsumers. This initiative prvide rebates t cnsumers with the purchase and installatin f apprved slar water heating systems frm registered participating suppliers and distributrs, upn cmpliance with the prgramme rules. The existing Eskm Energy Efficiency and Demand Side Management (EEDSM) rebate wuld cntinue t be applicable t the HPSWH ging frward. A further amunt f R 4.7-billin has hwever been allcated by Gvernment t implement 1 millin LPSWH units by March This fund was in respnse t cntinue the rllut f the LPSWH systems. The result was that with the new allcatin it is expected that 80% f these funds wuld be allcated twards the installatin f LPSWHs and 20% twards HPSWHs. Lw pressure systems where intrduced in mid-2010 and the rebate value in relatin t system cst was relatively high, which led t a massive interest in mass type rlluts. Municipal interest was particularly large with the number f new participants increasing. Quta limits fr installatins per lw pressure supplier have been put in place t manage expenditure and suppliers are allcated qutas based budget availability. It is imperative t nte that ver 190,000 slar water heaters was installed thrugh the Eskm rebate and fiscus prgramme. Only 6,650 units (3%) were installed in Nrth West whilst the installatin rate in ther prvinces was much higher. Eskm and Gvernment were nt dictating where suppliers shuld install slar geysers thrugh the rebate 57

70 prgramme. Suppliers cnsequently install where they see fit, but interestingly enugh, they preferred prvinces ther than the Nrth West in the majrity f cases. One cncern with regards t the rll-ut f SWHs t lw incme husehlds is the fact that these husehlds still need t pay a fee, even thugh it is cnsidered minimal, it is prhibitive t these husehlds. In terms f future implementatin strategies: The Department f Energy (DOE) has indicated that it will infrm Eskm n where systems will be installed natinally. This is nt a decisin that is being made by Eskm. Suppliers will receive cmmunicatin frm the DOE directly r Eskm via the tender prcess as t where installatins n the cntract rute are t be undertaken. Frmal requests fr allcatins can be made directly t the DOE by relevant municipalities (nt suppliers) interested in lw-pressure rll-uts in their areas Key actins Based n the abve, the fllwing key actins are prpsed fr the NWP: 1. Identify a suitable entity r subsidiary rganisatin directly linked t the NWPG that will take the respnsibility t drive the pprtunities linked t SWH with a centralised visin and cntinuity in resurces within the lcal municipalities. 2. Cnduct a market study t quantify the ptential fr SWH uptake within the 19 lcal municipalities f the NWP whilst identifying unique barriers per municipality (water quality, resurces, etc.). 3. Engage with the DOE and Eskm t btain achievable allcatins fr the installatins f SWHs thrughut the NWP. 4. Based n the utcmes f the prpsed market study, assign enfrceable targets twards each f the 19 lcal municipalities with realistic deadlines. 5. Assign rles and respnsibilities twards achieving these targets within each lcal municipality, cupled with mandatry prgress reprting requirements. 6. Facilitate the implementatin f pilt phases within the municipalities. 7. Develp practical mandatry training that shuld be delivered n an annual basis, specifically targeting the respnsible parties within each municipality. This training shuld fcus n the rles f the municipality t engage with suitable ECSOs, apply fr funding and SWH prject management and reprting. 8. Prvide centralised technical and nn-technical supprt thrugh the NWPG r the identified entity driving the prvincial prgramme. 9. Explre partnerships and existing funding mechanisms with lcal develpment agencies and private sectr investrs t establish viable and attractive means f making SWH technlgies accessible t lw-incme husing and pr cmmunities. 58

71 4.2.3 Bi-Mass (Clean Ck Stves) The stimulatin f the renewable energy market within the prvince will create a substantial pprtunity within the NWP fr jb creatin in line with the New Grwth Path, as well as the supply f energy t rural cmmunities, tgether with the creatin f an ecnmic base via agricultural and hme-based industries and small, medium and macr enterprises in rder t grw the incme-generating ptential f cmmunities. Apprximately 3,253,390 peple live in the NWP. Hwever, 65% f this ppulatin, r apprximately 2,115,000 peple, live in rural areas. The rural areas in the NWP, as is the case in general fr rural citizens in Suth Africa, struggle with rural pverty, illiteracy, inequality, limited access t energy and unemplyment. Expsure t smke frm traditinal ck stves and pen fires, which is the primary means f cking and heating fr the majrity f rural and nn-urban husehlds, is a majr cntributr t chrnic illness and acute health impacts. Furthermre, the reliance n bimass fr heating and cking increases the pressure n the lcal natural resurces f the NWP. Due t the lw precipitatin levels fund in the NWP, the prvince is cnsidered t be an arid regin. This cntributes t unsustainable harvesting f bimass resurces fr cking and heating in the rural cmmunities. Inefficient ck stves further cntribute t climate change thrugh emissins f GHGs such as carbn dixide and methane. One means f creating a sustainable benefit fr rural cmmunities in the NWP is thrugh clean ck stves. Clean ck stves ffer clean and efficient husehld cking slutins that save lives, imprve livelihds, empwer wmen and help t cmbat climate change. It ffers a technlgy that is ideally situated fr the rural and nn-urban ppulatin f the NWP. Althugh the use f clean stves is mre clsely linked t the efficient use f energy rather than renewable energy, it represents an pprtunity fr the NWP. The use f efficient clean ck stves can drastically reduce fuel cnsumptin and expsure the harmful ck stve smke. They culd ptentially reduce emissin resulting frm traditinal cking and heating frm between 40% t 95%, depending n the perfrmance f the clean ck stve. The fuel required is drastically reduced, as well as the time spent t cllect r harvest the fuel. The clean ck stves may last fr several years, allwing the accumulated fuel savings t be spent n a range f livelihd-enhancing activities. There exist tw pprtunities fr the NWP with regards t clean ck stves: The first pprtunity lies in the rll-ut f clean ck stves within rural, nn-urban and infrmal cmmunities. This will result in substantial benefits within these cmmunicates as discussed abve. This pprtunity will als make a valuable cntributin twards cmbating climate change and reducing GHG emissins within the prvince, which is aligned t the visin f this renewable energy strategy. The secnd pprtunity fr the NWP lies in the lcal manufacturing f clean cking stves, which shuld have a psitive impact n reducing the verall cst f prductin f clean cking stves and furthermre hld substantial ptential frm jb creatin within the NWP if the prvince culd becme a manufacturing hub fr clean ck stves that supply these t the Suth African and Sub-Saharan market. This is als directly aligned t the visin f the renewable energy strategy fr the NWP. 59

72 Key actins The fllwing key actins are cnsequently t be cnsidered with the renewable energy strategy fr the NWP: 1. Identify a suitable entity r subsidiary rganisatin directly linked t the NWPG that will take the respnsibility t drive the abve-mentined pprtunities with a centralised visin and cntinuity in resurces; 2. Identify and establish partnerships with internatinal rganisatins t launch a prvincial prgramme within existing funding mechanisms. Existing rganisatins that are currently active in this field is the United Natins (UN) Fundatin and the Glbal Alliance fr Clean Ck stves, which has an existing target f 100-millin hmes adpting clean and efficient fuels by The NWPG and the respnsible entity shuld explre micr, carbn and ther innvative financing mechanisms fr financing stve deplyment. Pssible funding pprtunities als exist within the existing Clean Develpment Mechanism (CDM) prgramme and cmpnent prject activities (CPA). 4. Clean Air Renewable Energy (CARE) will implement their CPA1 in the Eastern Cape as per their CDM prgramme f Activities Design Dcument (POA-DD). Sufficient funding is available fr the first tw CPA s f 12,500 clean ck stves each. The secnd CPA has nt been allcated t a specific prvince and presents an pprtunity fr the NWP. The NWP will need t identify 12,500 husehlds that are currently using bimass fr cking, as well as the names and identificatin numbers f the husehld head. The prcess will als invlve lcal stakehlder engagement t educate users n the use f the clean ck stve. A baseline study will als be required. When successful, the NWP can be included in the POA. 5. The NWPG and the respnsible entity shuld furthermre explre partnerships with ther lcal develpment agencies and private sectr investrs t establish a manufacturing and supprt base within the NWP fr the prductin and distributin f clean ck stves. 60

73 4.2.4 Energy Efficiency and Energy Service Cmpanies There is significant ptential fr energy efficiency in Suth Africa and specifically fr the NWP due t the fact that 63% f the electricity supplied t the NWP is cnsumed in its mining and related sectrs. Energy efficiency will always remain a primary fcus area, especially with the steady increase in the cst f energy. In rder t drive the NWP t becme an energy efficient prvince, large-scale awareness creatin and a vibrant ESCO industry is required. The market ptential fr the ESCO industry is between R 2.6-billin and R7-8-billin ver the next three years. The Eskm Integrated Demand Management (IDM) prgramme is currently the largest surce f funding fr ESCOs. There are in excess f 400 registered ESCOs in Suth Africa. The majrity f these ESCOs is hwever small, whilst there are nly a few large ESCOs that dminate and flurish within the ESCO industry. The ESCO and energy efficiency market is largely driven by: The supply cnstrains in electricity generatin cupled with the increasing peak demand; The subsequent increase in the cst f electricity and energy in general; The prpsed intrductin f a Carbn Tax in 2013/2014 which will be directly related t energy use; and The intrductin f Gvernmental strategies, plicies, legislatin, taxes and tax incentives. The challenges experienced in the NWP in terms f energy efficiency and its ECSO industry in nt unique, but cmmn t the Suth African market cnditins. The ptential grwth f the ESCO industry is cnstrained by a number f key barriers, which include: Market scepticism and lack f trust in the ESCO industry due t a lack f accreditatin f credible ESCOs; Lw levels f awareness, infrmatin and understanding f the ESCO cncept; The prvisin and availability f registered Measurement and Verificatin prfessinals; Lack f financial instruments specifically develped fr financing the ESCO industry; Prject apprval delays frm all parties, including financiers, clients and Eskm; and High upfrnt csts f energy audits. In respnse t the barriers identified frm the ECSO market study cnducted by the IDC, the fllwing key recmmendatins were identified: The intrductin f a system f accreditatin f ESCOs by an independent authrity that can enfrce requirements and prtect stakehlders; Ensuring greater access t affrdable and apprpriate training that prvide practical skills; Further simplificatin and streamlining f the Eskm IDM apprval prcess; Standardisatin f prject cntract dcumentatin; The intrductin f internatinally recgnised financial instruments; and 61

74 Mechanisms t fund the csts assciated with the initial energy audit and the prject apprval prcess. There cnsequently is nt any single interventin that can be adpted by the NWPG that will ensure the develpment f the ESCO market in the NWP. Althugh funding has been identified as ne f the primary cnstraints fr the ESCOs, a cmbinatin f interventins will be required t include the accreditatin f ESCOs t establish credibility and trust in the market. Skills develpment will als be required. Financial supprt, especially during the develpment and implementatin f energy efficiency prjects will be essential. Energy efficiency legislatin and plicies will als be required Key actins The fllwing key actins are prpsed fr the NWP whilst the abve-mentined recmmendatins are addressed in Suth Africa: 1. Identify a suitable entity r subsidiary rganisatin directly linked t the NWPG that will take the respnsibility t engage with ESCOs and related prjects based in the NWP with a centralised visin and cntinuity in resurces; 2. The abve-mentined rle culd ptentially be fulfilled by INW. 3. Engage with the ESCOs n develpments in the energy market relating the abvementined recmmendatins and prvide pssible linkages t ptential prjects and markets fr energy efficiency services within the NWP. 62

75 4.2.5 Municipal Slid Waste There are in the rder f 63 municipal landfill sites within the NWP. These landfills are hwever under increasing pressure due t cnstraints in terms f remaining airspace and life. The majrity f ecnmic activity is cncentrated in the suthern regin between Ptchefstrm and Klerksdrp, as well as Rustenburg and the eastern regin, where mre than 83.3% f the prvince's ecnmic activity takes place. The generatin f waste is hwever clsely linked t ecnmic activity with the largest vlumes f waste being generated in the suthern and suth-eastern parts f the NWP. The municipal slid wastes within these landfill sites can be used t prduce energy thrugh the use f bimass-t-liquid Fischer-Trpsch technlgy, thrugh the use f bigas recvery technlgies and systems, r thrugh cmbustin. Municipal slid wastes cnsequently hld substantial ptential fr the NWP in terms f renewable energy generatin. It is here where a pssible linkage with the BeauTi-fueL prject by Suth African Nuclear Energy Crpratin (NECSA) and the University f the Witwatersrand culd be explred further. This system is unfrtunately nt cmmercial at this stage. The BeauTi-fueL prject culd ptentially be linked t existing and future prgrammes related t the eradicatin f alien plants and prgrammes by frestry. The largest benefit here culd als be the ptential lcalised manufacture f the BeauTi-fueL system. In rder t explit this pprtunity within the NWP, a number f barriers need t be addressed: The ecnmic viability f waste-t-energy prjects is ften nt very attractive n its wn when cnsidering the relatively shrt cntractual perids that are currently pssible with lcal municipalities; Lng-term agreements fr the utilisatin f landfill sites with lcal municipalities are lacking and represent a barrier that needs t be addressed; Key actins In rder t explit the pprtunity within the NWP fr waste-t-energy prjects, the NWPG needs t cnsider the fllwing key actins: 1. Identify a suitable entity r subsidiary rganisatin directly linked t the NWPG that will take the respnsibility t drive the abve-mentined pprtunities with a centralised visin and cntinuity in resurces; 2. Facilitate the prcess whereby the 19 lcal municipalities can enter int lng-term agreements in excess f 4 years with ptential waste-t-energy prject develpers; 3. Explre partnerships and existing funding mechanisms with lcal develpment agencies and private sectr investrs t establish a cmmercially viable unit f the BeauTi-fueL system that can be pilted within the NWP; 4. Identify a suitable pilt landfill site within the suthern r suth-eastern regins f the NWP fr the cmmercial testing f the BeauTi-fueL system; 5. Explre partnerships and existing funding mechanisms with lcal develpment agencies and private sectr investrs t establish a manufacturing and supprt base within the NWP fr the prductin and distributin f BeauTi-fueL system; 63

76 6. Identify suitable landfill sites that culd prvide a viable and sustainable base fr renewable waste-t-energy prjects that wuld utilise bigas recvery technlgies r cmbustin technlgies and find ptential investrs and prject develpers fr these prjects; and 7. There is the pprtunity t frm new partnerships with Wrking fr Water (WFW), Landcare, farmers and SMEs fr the creatin f energy frm invasive alien plant (IAP) species with a cst reductin in the IAP eradicatin that is planned as part f the gvernmental WFW prgramme. These partnerships need t be set up and driven within the NWP t augment the abve-mentined pprtunities fr waste-tenergy. 64

77 4.2.6 Slar Phtvltaic Technlgies Suth Africa experiences sme f the highest levels f slar radiatin in the Wrld. The average daily slar radiatin in Suth Africa is in excess f 2,250 kwh/m 2. This is high cmpared t the United States and Eurpe. Hwever, if ne cnsiders Germany where residential grid parity will be reached in the very near future, their average slar irradiatin is belw 1,100 kwh/m 2. This implies that Suth Africa has a substantial renewable energy resurce which is, t a large extent, untapped. An increase in the uptake f renewable energy pwer generatin frm slar PV plants has been seen fr Suth Africa. This can primarily be attributed t the Renewable Energy Independent Pwer Prducers (RE IPP) prgramme that has an verall target f 3,725 MW that need t be generated frm renewable energy resurces. Under this prgramme an allcatin f 1,450 MW has been made twards slar PV systems. Althugh 256 MW f this allcatin still remain available under the current prgramme, it is expected that the RE IPP prgramme will cntinue t ultimately enable Suth Africa t reach its gal f generating 42% if its electricity frm renewable energy resurces as utlined in the IRP The use f slar energy is ultimately ne f the mst readily accessible renewable energy resurces in Suth Africa, specifically in the NWP. The NWP in particular has an average daily slar radiatin at levels greater than 2,200 kwh/m 2. Even thugh the majrity f slar PV prjects under the current RE IPP prgramme are targeting the Nrthern Cape due t its preferable levels f slar irradiatin. The NWP has levels f slar irradiatin that is between 5% and 11% lwer than the ptimal lcatins in the Nrthern Cape. Slar PV cnsequently frms ne f the key fcus areas that the NWP need t fcus n in terms f its renewable energy strategy and the subsequent implementatin plan. During the status qu assessment n barriers t the generatin and use f slar PV systems within the NWP culd be fund, except fr the nly slightly lwer levels f slar irradiatin levels fund in the NWP. These lwer levels f slar irradiatin culd hwever be ptentially ffset if ecnmies f scale culd be reached n the prjects. The NWP has sufficient land area available and the electricity grid infrastructure is gd in the areas f high ecnmic activity and in the prximity f the numerus mines and related large industries cncentrated in certain areas f the NWP. The infrastructure in the NWP is als generally gd in the same areas. This implies that, althugh the NWP is nt a preferred destinatin fr Slar PV prjects, it can be made ne if sme f the general barriers are remved fr prject develpers by the Prvince Key actins Based n the abve, fr fllwing key actins are prpsed fr the NWP: 1. Identify a suitable entity r subsidiary rganisatin linked t the NWPG that will take the respnsibility t drive the pprtunities assciated with slar PV prjects under the RE IPP with a centralised visin and cntinuity in resurces within the NWP. 2. The NWP has substantial land area available that culd ptentially be utilised fr slar PV plant applicatins. The NWP shuld cnsequently initiate a prject as part f the implementatin plan that will identify suitable prtins f land within the NWP which cmplies with the fllwing requirements: 65

78 Suitable and prven measured levels f slar irradiatin; Lng-term lease r ptin agreements pssible; Gd grid infrastructure in clse prximity; Suitable cnnectin pint int the electricity grid; Lw impact n agriculture and envirnment; Suitable access t and arund site fr effective executin; and In clse prximity t cmmunities that culd benefit frm lcal ecnmic develpment and jb creatin. 3. This prject shuld be driven by the NWPG and its subsidiaries such as Invest Nrth West (INW), pssibly in cnjunctin with technical expertise frm the Suth African Phtvltaic Industry Assciatin (Sapvia), Suthern Africa Slar Thermal and Electricity Assciatin (SASTELA) and the IDC. Cperatin with the Nrth West Huse f Traditinal Leaders (NWHTL) shuld als be explred. 4. The NWPG shuld als explre the pssibility f packaging the mst suitable and viable land areas fr slar PV prject develpers t attract them t the NWP. This prject shuld hwever als be linked t a marketing campaign under existing and ptential slar PV prject develpers. 5. Ecnmic develpment cmprise a substantial prtin f the evaluatin criteria under the RE IPP prgramme, fcusing n jb creatin, the use f lcal cntent, as well as cmmunity and skills develpment. The NWP shuld cnsequently fcus n develping the lcal cntent within the NWP that will assist prject develpers with their slar PV prjects. There exist ptential fr cperatin with Sapvia that is wrking clsely with gvernment t cllectively develp a rll-ut prgramme t increase the lcal cntent fr PV technlgies in Suth Africa which will further strengthen the value f slar PV. The risk and uncertainty n future slar PV prjects, nce the 1,450 MW f slar PV prject has been fully allcated under the existing RE IPP prgramme, des exist. A lng-term prcurement prgramme is cnsequently needed in rder t stimulate further investment in lcal manufacturing and ensure that there is a lng-term future fr the slar PV industry. Sapvia is cnsequently wrking with Eskm and Gvernment investigate a means f initiating a large scale slar rftp prgramme. This prgramme culd hld substantial benefit fr the NWP and its develpment shuld be clsely fllwed Cgeneratin and Waste Heat Recvery There are a number f benefits linked t cgeneratin and waste heat recvery systems which include decentralised generatin, cst effectiveness, fuel cnversin efficiency, lw lead times t cmpletin and the diversificatin f the electricity supply base. There are then als substantial envirnmental and emplyment benefits. The Nrth West is a mining and prcessing prvince and ferrchrme prductin cnsequently frms a substantial part f the Nrth West s heavy industrial capacity. There are ferrchrme smelting and prcessing plants, cement manufacturing factries and gld and uranium plants. Apprximately 63% f the electricity supplied t the NWP is cnsumed in its mining and related sectrs. Suth Africa prduces abut 70% f the wrld s chrme, 66

79 with mst f that riginating in the Nrth West. All these industries are assciated with substantial quantities f smelters, furnaces and ther systems that ffer pprtunities fr waste heat recvery and cgeneratin. The Nrth West cnsequently has a number f large smelters and industrial facilities that can use waste heat (ht gases) t generate energy this culd be by far the largest surce f lw cst and lw carbn pwer in the Prvince. The grwing uptake in the cgeneratin ptin by NWP s large industrial players has the ptential t widen the cuntry s energy mix, whilst alleviating the pressure n the electricity grid and reducing GHG emissins. In additin, prperly designed and integrated cgeneratin facilities ffer industries a cst effective way t supplement r self-supply their electricity requirements, particularly nce the capital investment is paid ff, as the fuel (waste) is basically free as lng as the plant is in peratin. Grid cnnectin is als nt cnsidered a barrier in the case f cgeneratin since it is generally lcated in clse prximity f the waste heat surce which is usually in an area f gd grid cnnectin, shuld the generated pwer nt be utilised fr self-use. The largest barrier t the implementatin f cgeneratin and waste heat recvery prjects is the cst. This is als linked t the relatively lw retail electricity price. Develpment and financial supprt is necessary t bring these technlgies t fruitin in Suth Africa and the NWP. Cgeneratin is als usually nt part f the cre business f the industrial hst, which ften leads t a lack f awareness and expertise. The Minister f Energy has hwever annunced that a renewable cgeneratin rund will be launched under the RE IPP prgramme. This culd ptentially hld a substantial pprtunity fr the NWP. Furthermre, the Natinal Energy Regulatr f Suth Africa (NERSA) is explring the pssibility f establishing a funding mdel based n the existing Eskm Standard Offer funding mdel specifically aimed at waste heat recvery. These alternatives are expected t ffer a medium-term pprtunity fr the NWP and shuld be clsely fllwed in their develpment Key actins In rder t explit the pprtunity within the NWP fr cgeneratin and waste heat recvery prjects, the NWPG needs t cnsider the fllwing until the abve-mentined funding pprtunities becme a reality: 1. Identify a suitable entity r subsidiary rganisatin directly linked t the NWPG that will take the respnsibility t drive the cgeneratin and waste heat recvery pprtunities with a centralised visin and cntinuity in resurces. 2. The lack f a financial enabling envirnment pses the largest barrier fr cgeneratin and waste heat recvery. Explre partnerships and existing funding mechanisms with lcal develpment agencies and private sectr investrs t establish viable and attractive means f making financial supprt available t the industrial hst fr cgeneratin and waste heat recvery pprtunities. 67

80 4.2.8 Hydrgen and Fuel Cell Technlgies Priritising the develpment f a lcal fuel cell industry hlds the ptential t create thusands f jbs whilst prviding clean and reliable pwer fr Suth Africa. It will als supprt the gvernment s drive fr mre effective in-cuntry beneficiatin. T make Suth Africa a truly glbal player, the fcus must be n prmting a strng, viable lcal manufacturing industry that supprts the everyday use f fuel cell technlgy. Fuel cells als hld substantial ptential fr the NWP in terms f renewable energy applicatins and lcalised assembly and pssible manufacture, which wuld increase demands fr PGM with the natinal uptake f such an ecnmy. Expertise and resurces n fuel cells resides within the NWP. There hwever are a limited number f technlgy applicatins where fuel cells are ideally psitined fr uptake under current market cnditins. The widespread use f fuel cells in the NWP and Suth Africa will hld substantial benefit fr the mining sectr fr the NWP in terms f lcal beneficiatin. The reasn being that the NWP is the largest prducer f platinum and related metals wrldwide, accunting fr 64.7% f the Suth Africa utput ttal. The challenge and current barrier fr fuel cells wuld be t develp a market fr fuel cells since they are generally mre expensive that cnventinal energy surces. The csts are hwever decreasing with time. The supprting infrastructure fr fuel cells is als nt available r develped in Suth Africa. The fllwing barriers and challenges have cnsequently been identified with regards t the generatin and use f renewable energy frm fuel cells: Fuels cells are expensive, partly due t the platinum used. It is nt expected that the NWPG wuld be able t influence this barrier. The mass prductin f fuels cells culd ptential drive the cst dwn ver the lng-term, but a market fr fuel cells will need t be well-established within Suth Africa befre lcal manufacturing culd be justified. The lcalised assembly f fuel cells in the NWP als present an pprtunity, but this will again be linked t the existence f an established market fr fuel cell technlgies. The lack f hydrgen and fuel cell supply chain and supprting infrastructures is a majr challenge and will need t be established as the market evlve. It wuld unfrtunately nt be a viable ptin fr the NWPG t invest, r find investrs, t develp this infrastructure prir t an established market. There is a wrldwide mve twards the reductin f PGM lading within fuel cells t reduce their cst. This wuld be cunterprductive in terms f the secndary bjective t increase demands fr PGM that primarily riginate frm the NWP. There is a lack f internatinally and natinally agreed standards fr the design and manufacture f fuel cells. The hydrgen needed t pwer fuel cells can be extracted frm clean water by means f electrlysis. If the electricity used t pwer this prcess is generated by renewable energy surces such as nuclear, slar, wind, wave r tidal pwer, then the entire hydrgen energy cycle is almst GHG emissins free. It wuld hwever make 68

81 mre sense frm a prvincial perspective t fcus n the direct renewable energy surces instead f using them t generate hydrgen in the shrt t medium term. PGMs are internatinally traded n the basis f glbal dllar prices. This implies that platinum csts are basically the same thrughut the wrld as in Suth Africa. This in turn means that lcal technlgy develpers gain n benefit frm being lcated clse t the mines extracting the metals which pse a challenge fr the pssible lcal manufacture r assembly fr fuel cells in the NWP. Suth Africa will need a natinal fuel cell strategy befre the NWP shuld fcus n the pprtunity that fuel cells pse. Based n the abve, it is expected that fuel cells pse a lng-term pprtunity fr the NWP, but better articulating the visin and cmmitment t lng-term investment will be required in cnjunctin with Gvernment-driven cmmercialisatin. The securing f internatinal financial assistance will als be required. 69

82 4.3 Essential Elements f Renewable Energy ptins fr the Nrth West Sustainable Develpment Issues The Cnstitutin f Suth Africa The Cnstitutin f Suth Africa states that everyne has the right t have the envirnment prtected, fr the benefit f present and future generatins thrugh reasnable legislative and ther measures that - secure eclgically sustainable develpment and the use f natural resurces while prmting justifiable ecnmic and scial develpment." Integrated Sustainable Rural Develpment Strategy The Integrated Sustainable Rural Develpment Strategy (ISRDS) f 2000 was "designed t realise a visin that will attain scially chesive and stable rural cmmunities with viable institutins, sustainable ecnmies and universal access t amenities, able t attract and retain skilled and knwledgeable peple, wh are equipped t cntribute t grwth and develpment". A strategic bjective f the ISRDS is "t ensure that by the year 2010 the rural areas wuld attain the internal capacity t integrated and sustainable develpment" Natinal Energy Efficiency Strategy Suth Africa s Natinal Energy Efficiency Strategy relies n the premise that energy efficiency is widely recgnised as the mst cst-effective way f meeting the demands f sustainable develpment Natinal Strategy fr Sustainable Develpment and Actin Plan The Natinal Strategy fr Sustainable Develpment and Actin Plan (NSSD1) was apprved by Cabinet n 23 Nvember 2011 [27]. The visin fr Suth Africa s NSSD and actin plan (NSSD1) is, Suth Africa aspires t be a sustainable, ecnmically prsperus and self-reliant natin state that safeguards its demcracy by meeting the fundamental human needs f its peple, by managing its limited eclgical resurces respnsibly fr current and future generatins, and by advancing efficient and effective integrated planning and gvernance thrugh natinal, reginal and glbal cllabratin Department f Energy Strategic Objectives Ensure sustainable develpment prmte clean energy alternatives, encurage ecnmic develpment and prmte jb creatin is ne f eight strategic bjectives f the Department f Energy Kyt Prtcl Suth Africa ratified the Kyt Prtcl in March The Kyt Prtcl des nt cmmit the nn-annex 1 (develping) cuntries, like Suth Africa, t any quantified emissin targets in the first cmmitment perid (2008 t 2012). The Clean Develpment Mechanism prvides fr the transfer f certified emissin reductins between nn-annex 1 cuntries and Annex 1 cuntries. The mechanism is specifically designed t supprt sustainable develpment with respect t greenhuse gas emissins in develping cuntries while helping Annex 1 cuntries t cmply with their cmmitments under the Kyt Prtcl. The Annex 1 cuntries 70

83 may cnsequently use the certified emissin reductins accruing frm such prject activities t cntribute t cmpliance with part f their emissin reductin cmmitments. The drive fr the use f renewable energy in Suth Africa is further driven by the internatinal trend and pressure twards sustainability where energy frm renewable surces cntributes t a grwing extent t ur energy needs There is an internatinal trend twards the generatin f clean energy in respnse t climate change and t meet the cmmitments f the Kyt Prtcl. Suth African industry depends n mdern energy carriers prduced frm cal, il and gas. Hwever, energy security cncerns are frcing Gvernment t achieve greater diversificatin and flexibility f supply and cmpetitin between energy carriers. This will in turn create an envirnment that attracts dmestic and internatinal investment. Thus, frm an internatinal perspective, Suth Africa, and cnsequently the Nrth West Prvince, needs t achieve a greater uptake in the implementatin and use f renewable energy due t ur natinal cmmitments and supprt t the UNFCCC, the Kyt Prtcl and its related prgrammes t reduce GHG emissins. Suth Africa has cmmitted t reduce its greenhuse gas emissins by 34% by The energy industry is the biggest emitter since mre than 90% f the cuntry s electricity is prduced by cal-fired statins. The Internatinal trend and need fr sustainable develpment is als driving the use f renewable energy within ur grwing ecnmy that is linked t an extremely high dependence f fssil-fuel based energy. Energy security frm an internatinal perspective is anther primary driver fr the use f renewable energy t create an envirnment where internatinal investrs wuld be attracted t Suth Africa and the NWP if the NWP culd prvide this energy security t internatinal investrs. 71

84 4.3.2 Renewable Energy Prgrammes and Funding Mechanisms The strategy will need t be supprted with the necessary funding frm Gvernment t prvide incentives t stimulate the accelerated uptake f renewable energy and energy efficiency in the Nrth West Prvince Renewable Energy Independent Pwer Prducers (RE IPP) prgramme Suth Africa has a high level f ptential fr renewable energy and presently has in place a target f 10,000 GWh frm renewable energy. The Integrated Resurce Plan (IRP2010) places specific emphasis n bradening the existing electricity supply technlgies t include gas, imprts, nuclear, bimass, renewables (wind, slar and hydr), in respnse t bth the cuntry's future electricity needs as well as t reduce Suth Africa s CO 2 emissins. Accrding t the IRP which is a 20-year prjectin n electricity supply and demand - abut 42% f electricity generated in Suth Africa is required t cme frm renewable resurces. The Minister f Energy has cnsequently determined that 3,725 MW shuld be generated frm renewable energy surces t ensure the cntinued uninterrupted supply f electricity. This 3,725 MW is bradly in accrdance with the capacity allcated t renewable energy generatin in IRP The IPP prcurement prgramme has been designed t cntribute twards this 3,725 MW target whilst making substantial cntributins twards sci-ecnmic and envirnmentally sustainable grwth. It is als aimed at stimulating the renewable energy industry in Suth Africa. The RE IPP prcurement prgramme s prcess is summarised in Errr! Reference surce t fund.. A grid applicatin is part f the standard prcess stages in the RE IPP Prgramme. Eskm prvides the grid cnnectin where Eskm is the wner f the netwrk. In rder t assist in service delivery, Eskm has set up a Grid Access Unit fr generatrs and prject develpers. The cst and availability f grid access is cnsequently dne n a prject-byprject basis. Prjects shuld hwever be develped in areas f relative clse prximity t a pwer line r substatin. The cst t cnnect t the grid will hwever increase as a prject mves further away frm grid infrastructure. In general the grid is gd in the central and suthern regins. There are hwever areas within the NWP that access t the grid is a barrier, especially in certain areas f the Dr. Ruth Mmpati district and the Ngaka Mdiri- Mlema District. 72

85 Figure 14: High level prcess fr the RE IPP prcurement prgramme (Surce: Eskm) Small-Scale Renewable Energy Independent Pwer Prducers prgramme The DOE has set aside 100 MW f the verall 3,725 MW fr smaller prjects between 1 and 5 MW. The DE has nw released a request fr infrmatin (RFI) t test market appetite fr smaller develpments. The RFI will seek t assess the readiness f individual prjects falling between 1 MW and 5 MW. The RFI is intended t generate infrmatin t assess the prjects f ptential develpers as well as the readiness f the market t enter int intensive prcurement and fast track negtiatin prcesses. It is aimed twards Suth African develpers f energy prjects adpting any nshre wind, slar phtvltaic, bimass, bigas, r landfill gas technlgies. It has been accmpanied by a draft request fr qualificatins and prpsals, r RFP, which has been prepared specifically fr smaller develpers, many f which have fund the stipulatins utlined fr larger prjects t be t demanding Green Energy Efficiency Fund The Industrial Develpment Crpratin in assciatin with German Develpment Bank KfW has established a R500-Millin Green Energy Efficiency Fund aimed specifically at businesses withut the access t ready capital t finance energy efficiency and renewable energy interventins. The Green Industries strategic business unit has been set up within the IDC t unlck develpment twards a green ecnmy, fcussing n renewable energy. The Green Energy Efficiency Fund supprts the intrductin f self-use renewable energy technlgies and will ultimately cntinue cntributing t glbal climate prtectin while supprting Suth Africa's ecnmic develpment and grwth. Eligibility criteria is applicable and the Green Energy Efficiency Fund prvides an ptin fr bridging finance in addressing the funding gap between the actual investment and the prcess required t btain Eskm incentives / rebates Suth African Renewables Initiative (SARi) Renewables are mre cstly than traditinal energy surces, and will remain s fr sme time t cme. The Suth African Renewables Initiative apprved by Cabinet under the 73