Nelson Mandela Bay Metropolitan Municipality

Renewable Energy & Energy Efficiency Programme

History

• November 2005 - Mayoral Executive - explore renewable energy. Why?– Expected electricity demand increase (COEGA)

– Foresaw energy crisis – pro-active

– Environmental concerns

– Integrated Energy Plan

– Wind energy will be a cheaper alternative by 2015

– Solar water heating will be the economical choice by 2009

– Massive potential for Solar and Wind in NMBM

• A RFP was advertised February 2006

• Outcome - basket of renewable projects

NBMMM Demand Scenarios

How the Basket has developed

THEN NOW

DSMStreet lighting -dimmingBuildings...

DSMEntire network upgraded to energy efficientCity Hall added as showcase buildingsWater reticulation and waste water treatment

Solar Water HeatingInitial target 100 000

Solar Water HeatingRevised target 60 000

Wind Power20MW wind farm

Wind Power100MW wind farm

Hydro Power...

Hydro Power20 MW potential

LFG LFG

EnergyEfficiency

PowerGeneration

DSM – Water reticulation and waste water treatment• Progress

– Scoping report completed– Pre-feasibility completed

• Status– Detailed feasibility underway – completed

by end May– Contractual arrangements being finalised

• Opportunity– Load shifting - 7MW– Energy efficiency - 2.5MW to 5MW

• Implementation Cost (not for NMBM)– R20m to R30m

DSM – Public Lighting

• Progress– Pre-feasibility completed

• Status– RFP to be released soon

• Opportunity– Energy efficiency - 2MW

• Cost (not for NMBM)– For audit and upgrading of network - R30m

DSM – Public Buildings

• Progress– Pre-feasibility completed

• Status– Full-feasibility underway – completed by end May

• Opportunity– 4 large buildings - energy efficiency - 1 MW

– City Hall – Flagship building with latest energy efficiency technology

• Cost (not for NMBM)– For audit and retrofit – R4m

Solar Water Heating

• Progress– Pre-feasibility completed– Qualitative and Quantitative Market Research Completed

• Status– Feasibility study currently underway – to be completed end April.– Detailed Business plan completed end May– Finalising contracts

• Opportunity– Roll-out of up to 60 000 Solar Water Heaters in the Metro– Potential energy efficiency – 30MW

• Cost (not for NMBM)– For development and SWH (60 000) – R700m

Landfill Gas to Energy

• Progress– Pre-feasibility and modelling of gas yields for both sites

completed– EIA underway

• Status– Finalising contracts with CDM and technical service provider

• Opportunity– 2MW to 3MW potential

• Cost (not for NMBM)– For infrastructure and generator – R80m

Wind Power

• Progress– Several potential sites identified– Wind data collected – wind monitoring data set-up

• Status– Detailed analysis of sites and wind data underway– RFP to identify developer / investor to be released soon

• Opportunity– 100MW

• Cost (not for NMBM)– For infrastructure, development and turbines – R 1.5b

Small Hydro Power

• Progress– Scoping study completed - a number of sites identified on

Orange-Fish-Sundays transfer scheme and Metro water supply infrastructure

• Status– Pre-feasibility study underway – completed by end of April– PPA with Metro almost finalised

• Opportunity– 22MW potential

• Cost – For development, infrastructure and turbines (all sites) – R400m

Other IN-HOUSE initiatives

• Decentralised Grid Connected Generation– Micro wind (600 W to 1.2 kW) wind power and solar electricity

generation (500 W) to be grid connected.– Pilot project to test the concept underway– By-Laws to support this concept to be developed

• Geyser Control Ripple system installations– 20 000 units already installed – Another 60 000 to be installed in next 12 months

• LED aspect heads for traffic signals– Project in implementation phase

Other IN-HOUSE initiatives

• SOLAR WATER HEATERS FOR LOW COST AREAS– Tender to be advertised within next week for

1000 low pressure SWH ‘s for installation to low income areas ( Government subsidised housing schemes)

– Proper pre- project and post- project evaluation of the social, economic and environmental factors to be undertaken.

– Estimated cost R4.1m

– NMBM to fund the pilot project in full

• Initiatives to encourage CFL’s and ENERGY EFFICIENT SHOWER HEADS to be commenced with shortly

ENERGY EFFICIENCY INITIATIVE

• The NMBM set up an ENERGY EFFICIENCY INITIATIVE with ESKOM, CEF, PERCCI and CDC– Encourage and support INDUSTRY and all other users to

save 10% in electricity consumption– Coordinate the initiatives of the stakeholders– Advisory service– Monitoring Service– Create AWARENESS of EE and RE issues– NMBM provided R1m as seed capital

How we got there

• Progressive drive process

• Political Support

• Dedicated and competent technical and legal team

• Common goal at all levels in Metro

• Quick and effective decision making

• Prepared to tackle barriers to entry

Challenges

• A first in the country– Complex legal process - no blueprints– Not an established industry – select correct partners and

technology– Untested market for Renewable energy– Renewable Energy more expensive than coal generated

power based on historic capital costs– Except for the White Paper there are limited National policies

or incentives to support RE

• Technology– Long lead times e.g. Wind turbines– Vacuum tube solar heaters un-tested in SA conditions

• Financial– No feed-in tariffs yet– DSM Subsidy levels and processes not adequate

Put in perspective• White paper target of 10 000 GWh by 2013

• NMBM contribution by 2013:

• approx 1 300 GWh

• NMBM consumes 1,5 % of national total

• NMBM will contribute 13% to target!

THE NMBM believe that within 5 years Renewable Energy will become a very important component of the ENERGY Establishment in SOUTH AFRICA. In addition, the cost thereof will in the long term be cheaper than Fossil - and Nuclear based energy sources.

The protection of our wonderful environment is also of highest priority to ourselves.

We wish to establish ourselves as contributing towards this goal and in doing so , serve our residents and country to the best of our ability.