BRIEFING TO THE SELECT

COMMITTEE ON ECONOMIC

DEVELOPMENT

20 AUGUST 2013

MR KM NASSIEP (CEO)

Contents

History and Background of SANEDI

Legislative mandates

Strategic overview

Strategic outcomes orientated goals

Strategic Outcomes/programmes

Programmes

IEA Membership

Linkages with other organisations

Matters of strategic importance

Interim Actions

History and Background of SANEDI

SANEDI evolved from SANERI

Ministerial Directive to CEF, 2005

Schedule 2 entity

Operationalisation of SANERI – 2006

Reporting Framework

SANERI officially launched – 2007

Key Focus areas of SANERI

– Corporate Governance

– Energy Research and Development

– Human Capital Development

– Information and Communication

– Cooperative Research Activities

History and Background of SANEDI

Energy R&D

– Contract research – key projects

Human Capital Development

– EE and DSM Hub

– RE and SE Hub

– Spokes – wind, solar and PV

– Chairs Programme

– Bursary Support Programme

– Centre for Carbon Capture and Storage

History and Background of SANEDI

Information and Communication

– Knowledge Management System

Cooperative Research Activities

– Brandenburg Technical University

– UK ERC

– US Dept of Agriculture

– CSIRO

– University of Edinburgh

History and Background of SANEDI

SANERI Accolades

– Unqualified audit from 2006/7

– Performance always rated over 80%

– Bursary Support Programme – space of 3 years empowered 70 post

graduates – some gainfully employed in the energy sector

– EE Hub – space of 4 years empowered 191 undergraduates/postgraduates

– Incubation of Green Transport Programme – showcase energy

technologies during the Soccer World Cup

– REEEP Secretariat

– Wind Mapping

– WFE Programme

History and Background of SANEDI

Reasons for SANEDI establishment

– Decline in national energy R&D

– Recognition of link between R&D and global competiveness

– SA – diversification of its energy supply

– Identification of technologies that can contribute positively to Governments

broader social and economic objectives

Legislative Mandates

National Energy Act , (Act 34 of 2008)

White Paper on Energy Policy, 1998

SANEDI’s mandate is derived from the

authority and obligations set out in the

following policies, legislation and

constitutional requirements :

The SA Constitution , (Act 108 of 1996)

The following specific plans, directives and

public announcements which reinforces

SANEDI’s responsibilities

Strategic Plan of the Department of Energy

Legislative Mandates

National EE Strategy , 2008

Energy Security Master Plan for Liquid

Fuels, 2007

Energy Security Master Plan, 2007

Integrated Resource Plan for Energy ,

2010

DST 10 year innovation Plan

M&V guideline for EE certificates

(DRAFT)

Carbon capture and storage Road Map

Strategic Overview

Vision

To serve as a catalyst for sustainable energy innovation,

transformation and technology diffusion in support of SA’s

sustainable development that benefits our nation

Mission

Advance innovation of clean energy solutions and rational

energy use that effectively supports SA’s national energy

objectives and the transition towards a sustainable,low carbon

energy future

Values

Innovation Integrity

Accountability Professionalism

Transparency Batho Pele

National Interest

Strategic outcome orientated goals

Strategic outcomes /programmes

STRATEGIC OUTCOMES PROGRAMMES

All/Crosscutting 1. Corporate governance and administration

Enable well informed and high

confidence energy planning,

decision-making and support

policy* development

2. Applied energy research and

demonstration including sub-programmes

for:

Advanced fossil fuels including Carbon Capture

and Storage

Clean Energy Solutions

Smart Grids

Green Transport

Working for Energy

Data and Knowledge Management

Support accelerated

transformation to a less

energy and carbon intensive

economy

Foster a culture of energy

efficiency and more rational

energy use

3. Energy efficiency programme

Core Parties

Participants

coal

SA Centre for Carbon Capture And Storage (SACCCS)

SACCCS …cont…

South African Government – through the Department of

Energy:

– 2013/2014 R 69 million

– 2014/2015 R 103 million

– 2015/2016 R 35 million

Accessing the £25 million that the UK Government has placed in the World Bank Carbon Capture and Storage Trust Fund

Norwegian Government

South African industry

SACCCS – Achievements

Carbon Capture and Storage Feasibility

– First international review of potential storage sites completed

– Stakeholder engagement plan approved and initiated

– Stakeholder meetings held in EC, KZN, DWA, DEA KZN, SALGA

– COCATE project (European Union CO2 Transport) completed

– SAfECCS Project (European SA CO2 storage) completed

– Capacity building – 6 X Bursaries current (5 Masters completed)

– International profile maintained – further funding indicated

Clean Fossil Fuels Technologies

– 4 X projects completed

– High Pressure fuel injector test bed operational at Wits

SACCCS – Achievements

Oil and Gas R&D Frameworks

– Draft oil and gas frameworks completed – submitted to DoE for comment

Shale Gas

– New project

– Initial capacity build completed

– Draft work plan completed – to be submitted to the DoE

Working for Energy

Renewable energy production and

utilization for low income

communities.

Creation of Green Jobs and

contribution to the new growth

path

Skills Development

Various forms of Biomass and Waste to Energy initiatives

Biomass Production value added goods and production of fuel pellets

Working for Energy …..cont…..

Establish clean energy, electricity

generation and supply facilities within

rural communities –

economic/social/sustainability benefits

Develop and demonstrate the rural

application of energy efficiency

technologies –

economic/social/environmental

benefits

Biogas production from Biomass for domestic use.

Food Production and Waste Production Energy efficiency

Smart grids

Development of SA smart grid vision

Compile current state assessment

Technology, governance, service and gap analysis as well as defined

solutions

Smart Grid Business case

Smart grid implementation plan

Consolidated smart grid industry guideline

Smart metering/e-learning

Smart meter pilot project/e learning integration

Benefit communities

Integration with tablets

Aimed at improving learning

Access to web based classes

Able to download text books and other learning

material

Data/Knowledge Management

Development of an integrated data repository

Technology Management Information Centre

Review the strategic direction of CESAR

Enhanced access to relevant energy information

and knowledge

Green Transport Programme

Develop a national Green Transport strategic

vision and technology development plan

Develop a technology development incubation

centre to offer “soft start” facilities to companies

and technology partners

Develop and implement demonstration projects to

test proof technology

Participate in knowledge clusters

locally/internationally

Develop substantive public advocacy programme

to create market acceptability for alternative fuels

and propulsion systems

Renewable Energy Technologies

Renewable Energy Centre of Research &

Development (RECORD)

Projects , pilots and demos

Wind Atlas for South Africa (WASA),

Mobile waste to energy plant, Algal

Biofuels , solar road map, energy efficient

house

Support to Solar Park

International collaboration

Energy Efficiency

Support the Income Tax Amendment

relating to tax rebate for energy

efficiency improvements

Energy Efficiency & Demand Side

Management Centre of Research &

Development (EEDSM)

Industry Support

National Champion for EE

National M & V Centre

Energy Efficiency..cont .. (Solar Water Heater Monitoring System)

Geographical Information System

(GIS) using

ESRI’s ArcGIS Suite &

Trimble Juno 3D Device

Prototype of Web Interactive Map & Mobile Capturing

Solution

Developed

Data Acquisition & Integration in progress

Demonstrated to the former Minister of

Energy in December 2012

IEA Membership

Implementing Agreements

Energy Technology Data Exchange

Ocean Energy

Bioenergy

Solar Heating and Cooling Programme

IEA Greenhouse Gases

ISGAN

Linkages with other organisations

Linkages

SANEDI

TIA

CSIR

ESKOM

IDC

AFD

GIZ

SDC

EU

FP7

Universiti

es

Matters of strategic importance

Funding

HR

EE Mandate

clarification

Matters of strategic importance/Funding

Following programmes remain unfunded :

• Green Transport Programme - (DoT verbally

committed R10m for GTP – awaiting written

confirmation )

• Working for Energy Programme

• Energy Efficiency

• Smartgrids ???

Matters of strategic importance /HR

HR

Staff complement of 40

11 permanent

75% black representation

53% women representation

Internship Programme (8 interns to date) -

Attempts to source funding for additional

interns – EWSETA under administration

CFO post – advertised 18 Aug 2013

Company Sec post – shortlisting being done

Additional funding needed for key support staff

– done via MTEF – reduce dependency on

CEF/create independence

Matters of strategic importance / Energy Efficiency Mandate

Clarification

There are a number of conflicting views between:

– The requirements/ mandate of the Act.

– NERSA and the recent M-Y-P-D pronouncements.

– DoE’s concerns about potential ‘Conflicts of Interest’.

The Energy Efficiency landscape is itself becoming ‘inefficient’:

– Especially in the field of awareness, (49m, Eskom-IDM, Local

Authority campaigns, Power Alert, etc.)

– Even spreading to the research environment, (DST, Eskom,

etc.)

– Average member of the public is becoming confused,

(SWH or Heat Pumps, CFL’s or LEDs, etc.)

There is no central co-ordination and/ or measurement

of ‘real’ impacts!

Interim Actions

We have agreed with the Senior Management of the DoE, to compile a

‘Position Paper’ on SANEDI’s role in Energy Efficiency:-

– Provide a national ‘Clearing House’ facility to ensure proper integration,

co-ordination, performance measurement & consolidated reporting on

Energy Efficiency in the country.

– Including the independent performance tracking of the National

Energy Efficiency Strategy, Policy/ Regulation impacts (Tax

Incentives), Demand-Side Management savings and awareness

activities.

– Compile and manage a central repository of Energy Efficiency

data for the country

– Possibly extend this to cater for the alignment and integration

of donor funds flowing into the country for Energy Efficiency

activities, to avoid duplication?

Interim Actions

Facilitate local and international donor funding and partnerships

Variable costing models

Resources optimisation with sister organisations through

secondments, mutual skills development

Access skills development funding from SETAs- EWSETA under

administration – other SETAs being approached