Page 1

Lighting solutions for Africa

Vol 5 Nr 4 2010 – R49


distribution network

in South Africa


What Africa wants


carbon credits for Medupi

Should CDM be part of cap and trade scheme?

Country profile: Lesotho

Contents Number 4 2010

cover story The global energy efficient lighting industry has become a market of innovation, controversy and new technologies. In this issue, 25 Degrees in Africa takes a look at the different products, new applications and what the industry can look forward to in the near future. Find out more on page 12









Turnkey lighting programmes

32 Commercial viability of producing biodiesel

55 Pricing scheme for BHP Billiton


Indoor air quality

34 Saving energy with wasted resources

56 Key decisions for 2010


New energy auditing


Energy efficiency

Country profile

37 Karoo town gets taste of sunpower

59 Energy barometer


38 National solar technology network

An overview on Lesotho

Climate change 8

40 First wind turbine at Coega IDZ


42 Converting CO2 into climate neutral fuels

60 How Medupi will earn carbon credits

G8 Summit: Muskoka Declaration

10 COP16 analysis

62 Perspectives on carbon pricing


64 Basic country lessons

44 SA’s REFIT scheme

Lighting 12 Energy-saving lighting solutions

Nuclear energy

28 Organic LEDs

46 SA’s anticipated nuclear power station

Instant update 66 Gambia - new resource centre 67 Sasol buys into Norway’s CCS Centre

48 Localisation opportunities for SA industry

Oil and gas 29 Nigerian oil company to float local fuel arm

green transport

30 Oil spill containments still not working

50 Green transport in South Africa

Energy events 68 Energy events

Lighting innovations In researching the topic of lighting for our lighting feature this issue, we certainly underestimated the technicality and complexity of the subject and the intricacy of the lighting industry. In this issue we look at the different lighting options available from CFLs to LEDs, and their commercial application possibilities in South Africa today. We examine the issue of using LED’s in our municipalities as street lighting, road lighting, highlighting national monuments and the question of energy efficiency and saving. We also feature new products and technologies. Note though, as comprehensive as we always try to be, we are restricted in space in the magazine. Therefore we always recommend that you seek advice from a professional, many of whom are listed in this issue, for a customised solution and relevant insight for your project. Explore the bright world of lighting from page 12. Banking on REFIT South Africa’s REFIT II scheme, published in October last year, has nine separate tariffs catering for the differing renewable energy options. According to Paul Eardley-Taylor, Head of Energy, Utilities and Infrastructure Coverage at Standard Bank, there are only two renewable energy options: wind and solar. Investors are largely ignoring concentrated solar power and investigating photovoltaic as an attractive and bankable option. Why? Largely due to a general lack of knowledge and documented evidence proving CSP to be a sound investment opportunity. Banks have real concerns and these need to be addressed before large scale buy-in from investors will open the investment coffers. Read more on pages 44 and 45. I enjoy interacting with our readers and welcome your views and opinions. I encourage you to share your 25° in Africa experience and send your copy to a colleague. Or ask them to subscribe for their own copy! Subscribe to our highly informative monthly e-newsletter by sending an email to us at:


Media in Africa (Pty) Ltd • International Contact Information: Tel: +27 12 347 7530 • Fax: +27 12 347 7523 E-mail: Postal Address: PO Box 25260, Monument Park, 0105 Republic of South Africa Physical Address: First Floor, Unit G, Castle Walk Corporate Park Cnr Nossob & Swakop Streets, Erasmuskloof Ext. 3, Pretoria, Republic of South Africa

The 25º In Africa team:

Editor Marlene van Rooyen Tel: +27 83 327 3746 E-mail: Founder Schalk Burger (1943 – 2006) senior Sales executive Andre de Wit Tel: +27 84 513 2580 E-mail: Sales executive Francois Jansen van Rensburg Tel +27 82 653 8580 E-mail: Journalist Adrienne Brookbanks Tel: +27 82 468 4566 E-mail: business unit coordinator Zuerita Gouws Tel: +27 12 347 7530 E-mail:

Marlene E van Rooyen

Imbewu Sustainability Andrew Gilder – Climate change and CDM legal specialist

25º in Africa: Africa’s Independent Energy Publication covers the whole gamut of energy sources, production needs, environmental impacts and the current issues surrounding them.

Publishing Manager Liezel van der Merwe

25º in Africa’s mission is to disseminate information on any and all energy-related issues, with an emphasis on developments in Africa and the impact on the environment.

Financial Manager Fanie Venter

The focus of the publication is on energy, but it carries related information to provide a broad, unbiased and independent view of all the pertinent issues. Copyright: The copyright for all content of this publication is strictly reserved. No part of this may be copied in part or fully without the express written permission of the editor. Disclaimer: Views expressed in this publication are not necessarily those of the publisher, the editorial team or its agents. Although the utmost care is taken to ensure accuracy of the published content, the publisher, editor and journalists cannot be held liable for inaccurate information contributed, supplied or published. Contributions: The editor welcomes contributions and encourages items of interest to our readers in the energy sector. All advertisements and editorials are placed solely at the discretion of the editor and subject to prior approval. 25º in Africa reserves the right to edit, withhold or alter any editorial material to complement the style of the publication. Subscriptions: 25º in Africa is published bi-monthly as a print publication. 25º in Africa is also available as a free web download. For more information, please contact the editor or editor’s assistant on Tel: +27 347 7530 or visit us on

Design and Layout Ilze Pohl Accountant Sietske Rossouw E-mail: Proofreader Elizabeth Kruger Reproduction & Printing Business Print Centre


Turnkey lighting programmes Over the past five years, Voltex Lighting has created a comprehensive, energy-saving lighting programme for South African companies. This turnkey operation includes site audits, payback statistics, design and installation, as well as a financing plan, where necessary for all upgrades.

Audit, surveys and customised solutions

is to provide a total turnkey service that the customer can depend on.

The audit and survey team at Voltex Lighting provides the information that the company uses to create customised lighting proposals. The energy-efficiency lighting survey is the first step towards helping to reduce energy costs and often generates noteworthy data about a company’s energy usage.

Finance plan

Engineering and lighting designs Voltex lighting creates customised lighting design in order to maximize energy-efficiency and aesthetics. Using the latest software in terms of CAD drawings and lighting layouts, the customer can easily review plans and compare the proposed solution with their current set-up. When using the latest technologies, lighting upgrades will also often result in increased light levels and aesthetic improvements. Project management Project coordinators at Voltex Lighting become the customer’s point of contact and are the main liaison between all the other internal departments. Their role

Voltex Lighting offers a financial plan when necessary. This plan is designed to ensure that the savings generated due to energy-efficiency outpace the monthly payments. The customer therefore does not have to budget for capital expenditure, but can simply convert to an operating expense. The savings can be generated from day one. ESCO no: 11000556 Voltex Lighting has been listed as an Energy Services Company (Esco) for the past six years and they have completed over 50 turnkey projects, resulting in an estimated 70 Megawatts in savings. Voltex Lighting Tel: +27 11 879 2500 Fax: +27 11 879 2301 Website: 25 o in A f rica



Specialist indoor air quality solutions Before cleaning

Indoor air has been to be found up to 70 times more polluted than outdoor air and, according to the American College of Allergies, 50 % of all illnesses are either caused or aggravated by polluted indoor air. In 1990, the Environmental Protection Agency (EPA) ranked indoor air pollution as the greatest risk to human health above all types of environmental problems.

Robot cleaning inside duct

During cleaning

After cleaning


VAC Systems are excellent breeding grounds for harmful airborne contaminants to gather and then spread throughout a building. When HVAC Systems are contaminated with dust, mould, construction debris, bacteria or insulation fibres the indoor air quality of the facility suffers, putting patients at a higher risk in healthcare facilities and damaging employee productivity for businesses. When the contaminants are combined with varying temperatures, humidity levels and airflow in the HVAC System, the indoor air environment can dramatically suffer. Not only are there additional health risks with a dirty HVAC System, but a system’s operating and efficiency standards are impaired, resulting in higher operating costs for the facility. “Most people do not realise that their air ducts are virtual breeding grounds for dust, dust mites, bacteria, fungi and thousands of other micro-organisms. These contaminants are blasted into the air you breathe every time the system goes on. This leads to sinus problems, respiratory difficulties and intense allergies,” says Victor Henning, marketing manager at Autumn Star Indoor Air Quality. Autumn Star Indoor Air Quality is a leader in heating, ventilation and cooling (HVAC) in South Africa. The company’s specialist indoor air quality and duct cleaning services, which has its headquarters in Gauteng, provides complete


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HVAC services to any location within the shortest amount of time possible. Autumn Star’s skilled artisans offer expert advice, installation and quality HVAC products. “Our HVAC services are integrated with our F10 product range, which is a decontamination process that completes our package offering,” explains Henning. “We ensure that buildings we service comply with the OHS Act 85 of 1993. If buildings do not comply with this act, we work with the company to improve the indoor air quality until we are able to issue compliant and occupancy certificates with all the necessary accreditations.” The F10 product range is used to clean and disinfect equipment, coils, air spaces and ducting surfaces in building systems. These products have already out-performed previous norms when combating sick-building syndromes in hospital theatres and offices ( “Our goal is to make all buildings safe and healthy. We provide expert advice, products and services so that HVAC systems in buildings we service can be regarded as efficient and green,” concludes Henning. Autumn Star Tel: +27 379 4857 Fax: +27 866 926 553 Website:

New energy auditing cuts down measurement time


nergy-efficiency and environmental sustainability has become a huge factor when making business decisions. Although there are products that claim to be efficient, one needs to assess whether the savings outweigh the capital cost of acquiring these items.

ENERVAT I O N S Advanced Metering Infrastructure AMI

for effective energy efficiency Advanced Metering Infrastructure AMI is a complete two-way data communication system for automatic meter reading (AMR) that uses low voltage power line grid as the medium (known as PLC technology).

Green solutions need to be economically viable and technologies available are often still in their infancy. The conflicting information involved in making “green” decisions can often lead to ineffective economic choices.

ROBUST, RELIABLE DATA Designed to meet International Standards, it provides robust and reliable data communication by using low speed, error detection and error correction techniques.

“Energy audits provide a detailed analysis of energy consumption, which gives users a proactive approach in saving energy,” says Green Tech Sales and Distribution Manager, Shalin Govender.


Analysing your consumption

Digital AMR electricity meter [MTC 1000/SP]: Replaces the old mechanical electricity meter. This hi-tech meter is a complete energy recorder, with built-in power line modem for data communication (PLM). Data concentrator [DTC-1000]: This data concentrator is installed in every distribution transformer, providing a communication bridge between the electricity company and every meter connected to the distribution transformer. The new energy auditing tool amalgamates the electricity measurement and analysis of usage into one device.

Green technology provides a unique “green” tool for carrying out energy audits. “A good example can be seen in efficient lighting technology. Green products such as CFL bulbs or LED lights have great energy saving benefits in comparison to ordinary light bulbs. However, the key to taking advantage of themis to weigh up the total cost of implementing them versus the total savings they eventually provide,” continues Govender. “Such a comparison can only be drawn up through an energy audit using sophisticated measuring tools. When analysing the measurements or data, a true cost and saving model can be projected and a fully informed investment decision can be made.”

Data server [STC-1000]: Installed in the electricity company’s office. Provides user-friendly access to all DTCs and MTCs equipments, with built-in SQL database server for easy integration of existing management and accounting software. Access instant and real-time valuable information WITH JUST A CLICK… With just a click, you have access to demand profile, maximum demand analysis, technical and non-technical losses analysis, QoS, remote control and monitoring (cut off the energy, read any electrical parameter), and remote reconfiguration of any parameter (multi-tariff, setup prepaid mode, load control, alarms) of any meter.

Green technology has identified the importance of energy auditing and the auditing time required for a complete report. The unique measurement tool the company uses amalgamates the measurement and analysis of energy usage into one device, thereby cutting down time through clever multitasking. “This not only provides an effective and efficient tool, but also creates more saving of time and money, giving users a better and greener solution than before,” concludes Govender. Green Technologies: Tel: +27 11 726 8092 Fax: +27 11 726 7736 Website:

For savings, control and efficiency, contact Green Technologies: Tel: +27 11 726 8092 Fax: +27 11 726 7736 E-mail: 25 o in A f rica


Photo © Scifilullabies

cou ntry prof ile: Lesotho

Lesotho Upon independence from the United Kingdom in 1966, Basutoland was renamed the Kingdom of Lesotho. For the first two decades, the Basuto National Party ruled. King Moshoeshoe, who was exiled in 1990, returned to Lesotho in 1992 and was reinstated in 1995.


fter seven years of military rule, a constitutional government was restored in 1993. A contentious election in 1998 saw an outbreak of violent protests and a military mutany, which prompted a brief but bloody intervention by South African and Botswana military forces. Peaceful parliamentary elections were held in 2002, but the National Assembly elections of February 2007 were hotly contested and aggrieved parties continue to dispute how the electoral law was applied to award proportional seats in the Assembly.

Natural hazards: Periodic droughts. Current environmental issues: Population pressure forcing settlement in marginal areas results in overgrazing, severe soil erosion and soil exhaustion, desertification, Highlands Water Project controls, stores and redirects water to South Africa.

Location: Southern Africa, an enclave of South Africa. Climate: Temperate; cool to cold, dry winters; hot, wet summers. Terrain: Mostly highland with plateaus, hills and mountains. Elevation extremes: Lowest point: Junction of the Orange and Makhaleng Rivers, 1 400 m. Highest point: Thabana Ntlenyana, 3 482 m.

The majority of government revenue relies on remittances from miners employed in South Africa and customs duties from the Southern Africa Customs Union. The government has, however, recently strengthened its tax system to reduce dependence on customs duties.

Natural resources: Water, agricultural and grazing land, diamonds, sand, clay, building stone. Land use: Arable land: 10.87% Permanent crops: 0.13% Other: 89% (2005)


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General economic overview:

Lesotho’s economy is primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. The country, which produces about 90% of its own electrical power needs, completed a major hydropower facility in January 1998 and continues to sell water to South Africa and generate royalties for Lesotho. Although Lesotho’s market-based economy is heavily tied to South Africa, the US is an important trade partner due to the export sector’s heavy dependence on apparel exports.

c o untry p ro f i l e : l esot h o

The trade benefits contained in the Africa Growth and Opportunity Act has lead exports to grow significantly. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF (International Monetary Fund). In July 2007, Lesotho signed a Millennium Challenge Account Compact with the US worth US$362.5-million. Economic growth plunged in 2009, due mainly to the effects of the global economic crisis. GDP (purchasing power parity): US$3.273-billion (2009 est.) GDP (official exchange rate): US$1.643-billion (2009 est.) GDP – real growth rate: -2% (2009 est.) GDP – per capita (PPP): US$1,700 (2009 est.) GDP – composition by sector: Agriculture: 15.9% Industry: 45.4% Services: 38.7% (2009 est.) Population below poverty line: 49% (1999) Industrial production growth rate: -4% (2009 est.)

Electricity production: 502-million kWh Electricity consumption: 516.9-million kWh (2007 est.) Electricity exports: 0 kWh (2008 est.) Electricity imports: 50-million kWh, note – electricity supplied by South Africa (2008 est.) Oil production: 0 bbl/day (2008 est.) Oil consumption: 2 000 bbl/day (2008 est.) Current account balance: US$1-million (2009 est.) Exports: US$872-million (2009 est.) Export commodities: manufactures 75% (clothing, footwear, road vehicles), wool and mohair, food and live animals. Export partners: US 58.9%, Belgium 37%, Madagascar 1.2% (2008) Imports: US$1.827-billion (2009 est.) Import partners: China 26.3%, Taiwan 20.1%, Hong Kong 16.4%, South Korea 14.1%, India 9.2% (2008). Debt external: US$581-million (31 December 2009 est.). Information courtesy of, to which full acknowledgement and thanks are given.

Energy issues in Lesotho According to the Renewable Energy & Energy Efficiency Partnership (REEEP), there is abundant hydro-electric power which generates most of the country’s electricity needs. However, electricity only accounts for 3% of the energy that is consumed (

needs of households, small businesses and of community users like health clinics and schools, initially in the three pilot districts, but eventually in the whole country.

Lesotho doesn’t have indigenous sources of oil, coal or natural gas and approximately three quarters of the country’s total energy demand is met by biomass fuels in the forms of wood, shrubs, animal dung and agricultural residues. The only other fuels consumed in significant quantities are mineral, coal and paraffin. Lesotho’s Muela 72 MW Hydropower Station came into effect in 2000 and this power station significantly reduced the country’s electricity imports.

Since inception, three pre-qualified local solar energy installers have worked with the body to provide three target districts with the opportunity to purchase 65W solar PV systems at a government subsidised rate of 84%. Three installers were encouraged to set up offices in rural districts and they have also been assisted in taking part in a credit guarantee scheme in order to help them obtain loans. The body also ensured that renewable energy technologies were featured in the National Rural Electrification Master Plan and that local PV installers are aware and trained on the use of the Lesotho PV Code of Practice.

Renewable energy The United Nations Development Programme’s (UNDP) environment and energy programme focuses on strengthening the capacity of Lesotho’s government to manage environmental change and adopt an integrated, sustainable approach to managing environmental resources towards achievement of the Millennium Development Goals ( The Global Environment Facility (GEF) is one of the major funding bodies for environmental programmes in Lesotho and it is assisting in the areas of conserving natural resources and use of alternative energy sources as a means of halting the degradation of land in Lesotho. UNDP Lesotho has committed to enhancing efforts to reduce the dependence on bio-mass fuels, which will contribute to soil conservation, especially through promoting the use of renewable energies at household and community levels ( The current Renewable Energy Project, which is being developed by the Rural Electrification Unit at the Department of Energy, will be implemented in 2012. The project aims to barriers to the wide-scale utilisation of renewable energy technologies (PV, wind and mini hydro) and to meet the basic electricity

Location: Lesotho Districts: Mokhotlong, Thaba Tseka and Qacha’s Nek. Status: ongoing UNDAF Outcome: Support to energy activities to reduce poverty and achieve sustainable development objectives at the local and national using renewable energy sources. Management Arrangement: National Implementation. Implementing Partner: Ministry of Natural Resources, Department of Energy. Other Partners: World Bank. Budget and major sources of funding: UNDP GEF: $2 500 000. Other (parallel funding): Government (Renewable) US$183 000 Rural Electrification Fund US$2 500 000 Access Pilot Project PV US$816 500 World Bank US$546 000 Private Sector US$10 000 Rural Water Supply US$73 000 Government in kind US$100 000 Sources: and

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climate ch ange

G8 Summit: Muskoka Declaration Andrew Gilder and Gillian Arenstein, IMBEWU Sustainability Legal Specialists (Pty) Ltd.


hile formal climate change negotiations occur under the United Nations Framework Convention on Climate Change, there are a number of multi-lateral processes, running parallel to the negotiations, which inform and seek (sometimes subtly, sometimes less-so) to guide the process. Trade negotiations under the World Trade Organisation are one example of this phenomenon. Another is the annual round of meetings under the Group of Eight (the G8 – France, Germany, Italy, Japan, United Kingdom, United States, Canada and Russia). The leaders of the G8 met in Muskoka, Toronto, Canada, on 25 and 26 June 2010 to discuss specific global challenges relating to development, international peace and security and environmental protection. Among environmental issues, climate change was emphasised as the grouping’s top priority. Leaders reiterated their agreement, voiced at the L’Aquila Summit in 2009, in recognising the scientific view that increases in average global temperature should not exceed 2 degrees Celsius compared to pre-industrial levels. The Muskoka Declaration declares: “Because this global challenge can only be met by a global response, we reiterate our willingness to share with all countries the goal of achieving at least a 50% reduction of global emissions by 2050, recognising that this implies that global emissions need to peak as soon as possible and decline thereafter. We will cooperate to that end. As part of this effort, we also support the goal of developed countries reducing emissions of greenhouse gasses in aggregate by 80% or more by 2050, compared to 1990 or more recent years.” At first this statement reads emiently reasonably, until one realises that this is virtually the same stance as voiced by the G8 at its annual meeting in 2009. The criticism, at that time, was that this long-term ambition needs to be driven by short- and medium-term actions. The Muskoka Declaration makes a concession to the critics by continuing: “Consistent with this ambitious long-term objective, we will undertake robust aggregate and individual midterm reductions, taking into account that baselines may vary and that efforts need to be comparable.” ( Leaders specifically indicated their support for the Copenhagen Accord, which emerged from the UN Climate Change Conference held in Copenhagen, Denmark, in December 2009, and the perceived impetus that it brings to the negotiations. The G8 encouraged countries that have not associated themselves with the Accord to do so, and to list their mitigation commitments and actions in accordance with the Accord’s provisions. Earlier this year South Africa pledged its national mitigation ambition as a 34% deviation below the “business as usual” emissions growth trajectory by 2020, and a 42% deviation by 2025. It should be specifically noted that South Africa has pledged this level of mitigation as part of a suite of nationally appropriate mitigation actions, rather than as a Kyoto Protocol-style binding emissions reduction target. In what might be interpreted as an important signal on one of the most important elements of the negotiations, namely that of finance, the G8 leaders committed themselves to activating the so-called “fast-start” climate change finance contributions, provided for in the Accord, which are intended to assist in addressing immediate needs of the most vulnerable developing countries, and to help developing countries commence preparations for long-term, low-emission development. The collective commitment made by


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South Africa President Jacob Gedleyihlekisa Zuma and his daughter Phumzile Zuma arrive at Toronto International Airport to attend the G-8 and G-20 Summits in Muskoka and Toronto, Ontario.

developed countries in the Accord is to provide new and additional resources approaching USD 30-billion for the period 2010 – 2012, rising to USD 100-billion a year by 2020, to address the needs of developing countries. In another climate finance-related reference, the G8 leaders voiced their support for the UN Secretary-General’s High-Level Advisory Group on identifying long-term public and private financing, indicating that their goal, in the negotiations, is to have a comprehensive, ambitious, fair, effective, binding, post-2012 agreement involving all countries, and including the respective responsibilities of all major economies to reduce greenhouse gas emissions. Given the relative lack of progress at the most recent round of negotiations, held in Bonn, Germany, from 31 May to 11 June 2010, these words sounds more like empty platitudes than urgent calls to action. For a report on the most recent round of climate change negotiations, see From the South African perspective, the next most important climate changerelated development is the much-anticipated Climate Change Policy Green Paper, promised for release in the immediate aftermath of the FIFA 2010 World Cup. The Green Paper is likely to throw some light on the question of how government intends to achieve the above-mentioned national mitigation ambition – and what will be the implications for local emitting industries (if any) of this domestic ambition expressed as an integral part of an international negotiation process. IMBEWU Sustainability Legal Specialists ( is a specialist sustainability legal consultancy providing professional legal consultancy services in the area of environmental, health & safety and climate change law. IMBEWU runs a Climate Change and CDM Specialist Consultancy Unit with the greatest depth of expertise and experience in the South African carbon market. IMBEWU collaborates with Warburton Attorneys (www.warburtons. in providing CDM project development and contract advice to clients. This article should not be regarded a comprehensive discussion of the topics addressed, and should not be taken as legal advice or relied upon. Those seeking to participate in climate change-related activities are advised to seek specific legal advice. Contact:

c l imate c h ange

Energy group broadens company’s footprint Leading climate change, carbon and energy group, Golder Associates, has announced two key appointments to its company in order to further expand its portfolio of industry-specific technical specialists.


older Associates welcomes Dr Hennie Stoffberg and Dr Paolo Gianadda to our team. Their added expertise to our company serves as a strategic move towards increasing the company’s footprint in climate change response planning and the energy sector,” says Rob Hounsome, Golder Associates’ climate change services leader. About the new climate change specialist Dr Hennie Stoffberg has been appointed as the new carbon and climate change specialist and he will assist Golder Associates with consultation expertise in the fields of vegetation carbon sequestration, carbon footprinting and accounting, integration of climate change into corporate strategies and business operations, climate change sustainability assessments and advisory services as well as clean development mechanism (CDM) project development. Stoffberg is one of the pioneers in vegetation carbon sequestration assessments and carbon accounting for the mining industry and urban environments in South Africa. His areas of expertise include sustainable design, green architecture, climate change commerce, CDM, corporate citizenship, environmental education, phyto carbon sequestration, phyto carbon footprints, urban ecology and landscape architecture. He also specialises in urban and forestry carbon sequestration and agriculture carbon pool enhancement projects. Corporate climate change response strategies One of Stoffberg’s noted specialities is that of institutional and corporate climate change and carbon response strategies. He has developed a tool for the assessment of corporate responsiveness to climate change and carbon, and provides expertise to corporates who wants to meet these environmental requirements. Stoffberg believes that local and international carbon taxation and regulations will become part of most companies’ daily operations. “However, meeting these taxation and regulatory requirements provides opportunities for operational optimisation and efficiency measures to be implemented. It also presents the opportunity to invest in mitigation and adaptation measures that provide monetary return on investment,” explains Stoffberg. “The corporation that integrates carbon and climate change mitigation and adaptation into their commerce opportunities strategies will be

proactively addressing the adversity of increased legislation and a physical change in climate.” New energy specialist Dr Paolo Gianadda will enable Golder Associates to offer clients the energy expertise necessary to make energy improvements to their operations. Reasons for the company to improve their energy-efficiency include cost, climate change mitigation and energy supply security considerations. Gianadda specialises in various energy-related fields, including energy and carbon management and optimisation, energy strategy and planning, process design and modelling, cost optimisation, co-generation system design, carbon foot printing, practical energy and water pinch analysis, process integration, mathematical programming and optimisation and technology foresight. He has been involved in a broad spectrum of energy projects that range from small-scale process efficiency improvements to large, site-wide energy optimisation projects. He has conducted several co-generation feasibility investigations and has been involved in energy strategy and planning exercises involving multiple sites and multiple energy sources. Gianadda believes that if managed proactively, energy holds significant opportunity in South Africa. “It is no longer just a cost issue, but an important issue around environmental sustainability, climate change and indeed operational security. There is money to be made and money to be saved, all of which can be done in such a way that it will enhance one’s business sustainability profile. No matter what your budget, there is always something that can be done cost-effectively to improve your energy bottom-line,” concludes Gianadda. Golder Associates Tel: +27 31 717 2790 E-mail: Website:

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climate ch ange

COP16 analysis – what we are expecting After the less than successful COP15, Mexico has been assigned the task to create an environment where a legally binding agreement would be more viable with COP16. Besides the immense logistic preparations, the Mexican government will be facilitating a fragmented group of that still needs to reach consensus.


ccording to, the failure of COP15 can be blamed on excess ambition due to world leaders finger-pointing and engaging in late-night wrangling over a document to save face instead of working on a post-2012 pact to tame global warming. Shift from legally binding to green technology developments During the UN climate talks in Bonn meetings, which were held in Germany from the end of May and until the beginning of June, leaders were preparing for the upcoming COP16 in Cancun. Previous UNFCCC chief Yvo de Boer admitted to the press that any treaty is unlikely to be completed before the end of 2011.

“It’s extremely unlikely that we will see a legally binding agreement in Cancun. I think that especially developing countries would want to see what an agreement would entail for them before they would be willing to turn it into a legally binding treaty,” De Boer told journalists at the Bonn meetings ( De Boer resigned last year after COP15 and in April Costa Rica’s Christiana Figueres was announced as his replacement. According to www.german-info. com, analysts expect her to shift the emphasis from legally binding emission cuts to developing green technologies. Turning debates into decisions According to Kathrin Gutmann, Head of Climate Policy at the WWF Global Climate Initiative, negotiators in Bonn can push some important debates close to conclusion, e.g. on forest protection driven by carbon finance – the so-called REDD+ agenda – and on creative financing for low-carbon action and climate resilience in developing countries. “We are at the verge of agreeing to stop deforestation and to gear up for dealing with changing climate through adaptation. Securing breakthroughs in these areas at the talks in Mexico this December would put the world in a good position to wrap such key elements into a global agreement at the next summit in South Africa in 2011, marking an important deadline as the Kyoto Protocol needs a new lease on life by 2012,” says Gutmann. Mobilising funds During COP16, heads of states are scheduled to identify new sources of finance, such as taxes on financial transactions or levies on emissions from unregulated sectors like shipping and aviation. The switching of subsidies from fossil fuels to energy-efficient technologies will also be debated. “Using the 2010 G8 and G20 summits in Canada to mobilise funds for clean development and the Bonn talks to sort out building blocks for a climate agreement will give the international community the important atmosphere of trust that got lost during the Danish disaster last December,” says Gutmann. In June, reported that France is pushing for Africa to have membership of the G20 economies. At the 25th Africa-France summit held in Nice, France, to renew France’s ties on the African continent, French President Nicolas Sarkozy warned that developed nations must keep their promises of


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c l imate c h ange

billions of dollars in aid to poorer countries at the upcoming Copenhagen Summit ( “These commitments must be scrupulously kept. Unless we want international conferences to lose all credibility,” said Sarkozy. According to a French political source, France used this meeting to pave the way for reform proposals at next year’s G8/G20 meetings, aimed at giving Africa more of a say on the international stage ( “It is time for the world to make a place for Africa on the global stage to discuss international crises and reform,” said Sarkozy. Ethiopian President Meles Zenawi was sceptic about whether the financing would really reach those in need and stated that future UN climate talks need firmer commitments. According to www.expatica. com, the Africa-France summit reflects France’s shift away from its traditional West-African allies towards engagement with the continent as a whole. South African President Jacob Zuma, Nigerian President Goodluck Jonathan, Oil giant Total, nuclear company Areva, 80 French business leaders and 150 heads of African companies attended the summit. “Private sector investment in Africa has shot up from some US$17-billion in 2005 to US$88-billion in 2008,” said Africa expert Karim Dahou of the Organisation for Economic Cooperation and Development (OECD). “Aid can be useful if it is used in conjunction with other resources, but aid alone will not develop Africa. The private sector has a major role to play,” said Karim. Finalising agreements According to Richard Worthington, Climate Change Programme Manager of WWF South Africa, President Zuma reaffirmed the country’s commitment to driving negotiations to finalise a fair and effective agreement before 2012 at the Green Economy Summit, held in May. “The President emphasised that advancing national and regional interests at an international level must be supported by actions at home,” said Worthington. “South Africa’s potential for establishing competitive advantage in low-carbon development was affirmed by a range of Ministers, so our climate change lead agent and national delegation have a very strong mandate.” During the Green Economy Summit, President Zuma emphasised the need for investment and skills development for Africa to make use of its abundant renewable energy resources. South African sustainability legal specialist, Andrew Gilder, says that a formal legal agreement at COP16 is unlikely, he also adds that the consequences of the COP15 Accord are continuously changing, making the outcomes a continuous debate. “The consequences of the COP15 Accord are a moving target. If you compare the kind of commentary that arose directly after the COP in Denmark with the kind of debates around the Accord two months later, you will see a whole different type of argument,” says Gilder.

“At first people were disappointed with the Accord and now people are looking at a different set of legalities, so the consequences are evolving very rapidly. One of the important things for COP16 is how emission pledges by Annex 1 countries are going to be quantified. Pledges don’t necessarily have a base year or a time period attached to them, so we need to bring some kind of objective standard to be able to compare these pledges,” says Gilder. Coal the future if we reach no climate deal In May, reported that global CO2 emissions from burning fossil fuels will soar 42% by 2035 if worldwide efforts to address climate change fail, “driven by ever-growing coal consumption in developing countries”. The Energy Information Administration (EIA) 2010 International Energy Outlook states that economic growth in carbon-intensive developing countries will significantly increase energy-related CO2 emissions. “World energy-related carbon dioxide emissions rise from 29.7-billion metric tons in 2007 to 33.8-billion metric tons in 2020 and 42.4-billion metric tons in 2035 – an increase of 43% over the projection period. With strong economic growth and continued heavy reliance on fossil fuels expected for most of the non-OECD economies under current policies, much of the projected increase in carbon dioxide emissions occurs among the developing non-OECD nations. In 2007, non-OECD emissions exceeded OECD emissions by 17 percent; in 2035, they are projected to be double the OECD emissions,” the EIA stated in a report. “Cancun can deliver if promises of help are kept and if promises to compromise are honoured in the negotiations. The Copenhagen meeting may have postponed an outcome for at least a year, but it did not postpone the impacts of climate change. There is a growing consensus on what the goal for Cancun can be – namely a full, operational architecture to implement effective, collective climate action,” concludes De Boer. Sources:,,, www.eia, 2 5 o in A f rica

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Energy-saving lighting solutions

in Africa

Light Emitting Diode (LED) and Compact Fluorescent Lights (CFL) have revolusionised the energy-efficient lighting industry. Lighting represents approximately 17.5% of global electricity consumption and the US alone accounts for approximately 20% of this amount at an annual cost of over US$40-billion (


hen it comes to alternative lighting solutions, South Africa is ahead of most Africa countries, but certainly lagging far behind many developed countries in the world,” says Rieyaad Martin, a director at Goldwyn LED South Africa. “With regards to energy saving lamps, whether it is LED’S or other, the industry needs to have extensive information at its disposal to realize the full energy saving potential of LED Lighting”. According to, CFLs are simply miniature versions of full-sized fluorescents that give off lights that look like the light from common incandescent bulbs. LEDs are extremely energy-efficient small, solid light bulbs that are grouped in clusters with diffuser lenses. Benefits of LEDs • Lifespan – LED bulbs last up to ten times longer than compact fluorescents. A typical LED bulb lasts between 20 000 and 50 000 hours, where incandescent bulbs are rated for 1 000 hours. Manufacturers usually supply ratings for LEDs that can be applied only if they are installed according to design specifications. • Durability – These lights do not have a filament, they are solid, are robust and can be used where a regular bulb would be broken. • Energy-efficiency – LED bulbs use up to 80% less power than standard incandescent bulbs. • Low heat – Very little heat is emitted from LED bulbs and they are cool if touched. • Cost-effective – Although LEDS are more expensive, the cost is recouped over time. and


“The only disadvantage that one would consider in LED lamps is the price,” says Mark Greenhill, Technical Manager of Osram South Africa. “The pay back periods are looking more promising ever so often as the technology erupts at an alarming pace. One must be precise about the performance you require and consider the application, There are some LED lamps that are being introduced into the market presently that will match the performance of older technologies for example, incandescent lamps and downlighter’s, but one must do your homework. In saying that, I still believe that some lighting applications have been over engineered and in a case where a standard 50W downlighter has been used, swopping over to a 5W LED lamp, providing 20W of light will suffice and provide huge cost saving benefits. LED’s are a fantastic light source for architectural applications too, as LED’s are a dynamic light source and thus one can create mood, continues Greenhill. “A quick and easy method of calculating the difference in cost is to work out the cost per lumen. The Lumens per Watt (lm/w) of light source represents the amount of light produced from a light source. An incandescent lamp, for example, can emit around 10 lm/w – 12 lm/w, therefore an Osram 60W incandescent lamp will provide 710 lumens at around 11.8 lm/w. A CFL (compact fluorescent lamp) can provide between 40 lm/w – 70 lm/W, hence an Osram 14W CFL, will emit around 770 lumens (lm) at 55 lm/w. An LED chip today in perfect laboratory conditions can produce upto 200 lm/w, but in order to manufacture an efficient lamp using that chip, one would be faced with immense challenges of thermally managing the LED chip. An LED chip produces an extensive amount of heat that needs to be minimized, thus ensuring constant life, constant colour hence an efficient light source. Continue on page 14

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Kruger adds that down-lighting (round lighting in ceilings) is still the most common application for LED lighting in South Africa, but consumers should consider the beam angle of these lights for different applications. “When you replace normal halogen lights with LEDs, you will see that the LEDs have a narrow beam angle which is almost like a small spotlight. It is a very directional light, which is why the manufacturers uses reflectors and diffusers to spread the light out more evenly or else you would get smaller patches of light in a hallway, for example.”

LED terminology • • • • •

Colouring Rendering Index (CRI): The quality of light and its ability to render colours correctly. Correlated Colour Temperature (CCT): The measure used to describe the relative colour appearance of a white light source. CCT is given in Kelvins (unit of absolute temperature) and it indicates whether a light source appears more yellow/gold/orange or blue. For example 2 700 K is regarded as warm white light and 6 000 K equates to coll white light. Luminous Flux: The flow of light measured in lumens. Luminous flux provides the apparent amount of light the bulb will produce. Efficacy: The ratio of luminous flux (in lumens) to power (measured in Watts). Luminous efficacy is a figure of merit for light sources. RGB: Red, green and blue (the primary colours of light). One way of producing white light is by mixing the ratio of the light from red, green and blue LEDs. (

Realistically we can quote around 70 - 80 lm/w once an LED chip has been integrated into a lamp. Osram has recently launched it’s PREVALED, which produces 3000 lm at 42W, thus providing 70lm/w with a colour rendering index of 90 +. This is a benchmark in terms of LED’s. Choosing LED light sources depends on a number of things, such as finding a balance between light output required by law, the lifetime required and maintenance factors. One should ask the question, is the light for general illumination, safety or accent lighting” says Greenhill. Eben Kruger, Marketing Manager at Eurolux, says that the lumens per watt are easy to calculate and it remains an important consideration when choosing an energy-efficient light source. “An energy-saving mini-spiral lamp gives 820 lumens and uses 15W, (820 Lm / 15W) which equals 54 Lm/W. You pay per watt of electricity used, which means that you can potentially pay less for a light source that creates more lumens,” says Kruger.

“At this stage with energy-saving CFL and LED lighting, each of the products has its place in separate installations. The industry is not yet there where one can say that an entire building or home can be retro-fitted with only LEDs or CFLs, using a combination of lighting solutions can help save energy while maximising comfort levels,” says Kruger. Common styles of LED bulbs • Diffused bulbs: Clusters of LEDs are covered by a dimpled lens in this style of LED bulbs. The light is spread out over a wider area and they have many uses such as for rooms, reading lamps, hallways and low-light applications where lights remain on for longer periods. • Track lighting: Available in pin base or standard base, LEDs are ideal for track lighting. • Recessed down-light and spotlight bulbs: LEDs are available for standard recessed lighting pots and housings. Although the light output and colour quantity are similar to incandescent down-lights, the LEDs draw only about one fifth of the power and last 10 times longer than CFLs. • Spotlight and floodlight LEDs: Spotlight LEDs don’t have a dispersing lens, which makes the light appear brighter as its light is directed forward. Due to advanced thermal management design, the spotlight will run reasonably cool and may last over 50 000 hours (if designed according to lighting specifications). LED floodlights give a spread-out dispersed light that is ideal for ceiling lights, retail display lighting, motion sensors and outdoor floodlights. How light, heat and energy in lighting are connected While incandescent or fluorescent bulbs emit light (and heat) in all directions, LEDs emit light in a specific direction. According to, an incandescent or CFL bulb inside of a recessed downlighter will waste approximately half of the light it produces unless it has a good reflector system, while LEDs only produce light where needed below the light but may be patchy.

LED lighting to illuminate secondary roads.


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Benefits of CFL lighting • Efficient: CFLs use 50% - 80% less energy than incandescent lamps and they last up to 10 times longer. • Savings: CFLs use a fifth of the electricity that incandescent lamps use. • Environmental benefits: According to, half a ton of CO2 will be kept out of the atmosphere over the life of the bulb by replacing a single incandescent bulb with a CFL. “If everyone in the US used energy-efficient lighting, we could retire 90 average size power plants. Saving electricity reduces CO2 emissions, sulfur oxide and high-level nuclear waste,” reads an article on the website. • Versatile: Nearly all types of incandescent lamps can be replaced with CFLs and these lights can be used in recessed fixtures, table lamps, track-lighting and ceiling fixtures. The truth about mercury content in CFLs In 2005 and 2006, Eskom had a large CFL campaign that saw millions of homes fitted with these bulbs. Over 5-million bulbs were issued in the Western Cape and concerns grew about the mercury content in these lamps. “To get some perspective on the mercury content in CFLs – there is less than 5 mg of mercury in a CFL. Today Osram lamps contain around 3mg, and due to the technology, mercury is still currently required in order for the lamp to operate. An interesting fact: A standard tooth filling has 200 mg of mercury (sourced from the internet)” says Greenhill. “Mercury is not emitted while the lamps are working – you are only exposed to mercury when the glass breaks. There is procedure to follow if a CFL bulb breaks, some points are: Evacuate the room for half an hour, then when cleaning up the glass, use a broom and dustpan, not a vacuum as the mercury could be filtered back into the surrounding air, you are also advised not to touch the glass. These procedures can be sourced from the internet for your perusal. But there’s no harm in having CFLs in your house. The real problem comes in huge amounts of these lamps being dumped and not recycled correctly. We, the consumers, need to care for our environment and not dispose of these lamps in our general waste. Rather contact your local waste collection company and ask what facilities / procedures they have in place” says Greenhill. Russ Gittleson, the Managing Director of Light Kinetics, agrees that a policy is needed for the disposal of CFL lamps. “Eskom is funding large quantities of CFLs and every fluorescent tube has mercury in it. Some manufacturers might say it’s a form of amalgam, but it doesn’t matter. Overseas, you would never be permitted to just dump these types of things in landfills because it can lead to a very dangerous situation,” says Gittleson.

Choosing an LED Choose differently for task and accent lighting: LED lamps are available in “warm” light, which is normally used for small areas or accent lighting and “cool” white light, which is commonly used for task lighting. Desired wattage: Estimate the desired wattage and illumination level, for example, a 3W LED has a similar output as a 20W incandescent lamp. Pin base or standard base: LEDs come in a variety of “pin” sockets or standard “screw” bases for track or recessed lighting operating at 12 V or 230 V.

Choosing a CFL Choose a shape: CFL bulbs come in a variety of shapes to fit in different lamps and lighting fixtures. Match lumens to incandescent lamp being replaced: Compare lumens (amount of light being generated) to the watt range (measure of energy use). Light quality: CFL bulbs have a Kelvin number (also known as a K number) on the packaging. CFLs with K numbers between 3 500 – 6 000 are giving off a cool light and CFLs with K numbers between 2 700 – 3 000 are giving off a warm light like incandescent lamps.


According to the US Environmental Protection Agency (EPA), mercury presents significant environmental challenges at site clean-ups of active facilities or abandoned hazardous waste sites. The EPA states that mercury is difficult to treat, exists in many different forms, is volatile and can be difficult to analyse.” Since the 2005 project, Eskom has continued to issue CFL bulbs and it is estimated that Eskom has retro-fitted some 22-million CFLs across the country. According to Eskom’s Cape CFL recovery study, “concerns regarding responsible disposal of CFLs are valid and lie in concentrations of mercury accumulating in our landfills over time”. Eskom has taken on the responsibility to safely dispose spent lamps in their projects and advise their customers how to handle breakages of CFLs. The Illumination Society of South Africa (IESSA) and the Departments of the Environment and Trade and Industry are drafting a plan to manage the spent mercury containing lamps. There is a misperception about the mercury content only being in CFL lamps. The CFL has less than 5 mg while a tubular fluorescent lamp has about 15 mg of mercury. The work group is looking at all lamps and their environmental impacts (IESSA Congress 2010). Eskom is continuing to distribute CFL bulbs because the CFLs use less than 80% of the electricity and last up to six times longer compared to the incandescent lamps and are affordable. The cost of a CFL is less than a tenth of the cost of a LED for equivalent light output and this will narrow in the next three to five years (IESSA Congress 2010). The reduction in the coal not burnt at the power stations using CFLs reduces the net emissions of mercury to the atmosphere and waste as illustrated in the following graph. So why aren’t LEDs being used? There is more talk about increased energy-efficiency in LED products, longer lifespans for these products, more promises about cutting electricity prices with widespread conversion of street lighting with LED lamps and these products are increasingly being used in many applications.


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Incandescent bulbs Light is created by passing electricity through a metal filament until it becomes so hot that it glows. These bulbs emit 90% of their energy as heat.

CFL bulbs The reaction of an electric current driven through a tube containing gasses produces ultraviolet light that is transformed into visible light by the fluorescent coating. These bulbs release approximately 80% of its energy as heat.

LED lighting Light emitting diodes are used to produce light efficiently. Electrons move through a semiconductor material which emits light. LED like CFLs requires control gear and emit heat. Source: Gittleson argues that high quality LED systems are not too expensive, but there is a skills shortage hindering the widespread use of LEDs in local municipalities. “If government were to get more practically involved in assisting municipalities in funding and understanding what LED investments would mean for municipalities, it would help a lot. Municipalities would save on a number of expenses, such as electricity consumption and maintenance,” says Gittleson. Martin maintains that “quality LED products are not expensive in India relative to most countries.” He explains that Goldwyn South Africa has a symbiotic relationship with Goldwyn India. The latter manufactures heatsinks and optics in – house for LED products. This has an effect of off – setting cost against high cost expectations. The tongue-and-groove design of Goldwyn’s Led modules allows retrofitting to most existing aluminium extruded High Masts, Street and Flood Light fittings. This affordable solution is unique to our product. After all, why not use the existing fixtures that have already been paid for. Although some of the best LED products are from Germany, Denmark and the US, Goldwyn’s SABS test reports is proof of another sure cost effective qualifier. According to a Pike Research report released in May, nearly half (46%) of the US$4.4-billion commercial lighting industry will switch to LED lighting by 2020. The report says that although LEDs have always had the potential to save commercial properties a significant amount of money, the initial expense of the systems has prohibited widespread installation, but this is a sector of the industry that is changing due to the fact that the costs are coming down and will continue to drop. “There is such an enormous potential for South Africa’s energy crisis if municipalities had more foresight to convert to LED systems. Not only would it eliminate maintenance, but the country will save a lot of money on street lighting electricity – especially with the rate that power prices are increasing,” says Gittleson. LEDs in our cities The City of Cape Town, as the contracting authority for the Green Point Stadium in partnership with the Provincial Government of the Western Cape


and National Government, has produced a world-class stadium that forms part of the new Urban Park. BEKA provided energy-efficient street lights for large parts of the stadium, its exterior lighting and the road lighting upgrades. The products that were used generate a secure feeling whilst emphasising the distinction between the designated walkways and cycle paths and the existing pavements. A luminaire lighting solution was used to highlight two former national monuments and several protected buildings on Granger Bay Boulevard, a four lane dual carriageway road that was built near the new Green Point Traffic Circle. “LED lighting is of particular interest in the context of solar lighting, since the systems used in these applications are DC (direct current) based,” explains Johann Schleritzko, Managing Director of BEKA. “Many cities to the north of South Africa don’t have the infrastructure to provide reliable electrical power supply and these cities are investigating the possibility of installing solar lighting. Our 43W LED luminaires are designed to meet the requirements for important secondary roads.” “LED lights provide white light, therefore enhancing the visibility at night. Since LED lighting can be better controlled, higher utilisation factors can be achieved, making LED streetlights the most efficient luminaires of its kind,” says Schleritzko. According to Schleritzko, the fact that LED lights can be controlled is proving to be a significant advantage when installing these products in streets. “Lighting on demand has become a reality since LED lights can be controlled and dimmed easily. When installed in streets, the amount of lighting can be dimmed up in periods of high traffic and pedestrian usage. In periods of low traffic, the lighting levels can be dimmed, providing energy-saving without affecting the comfort and needs of the people,” says Schleritzko. Continue on page 22

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In 2009, Light Kinetics won the prestigious Eskom ETA Award in the residential category for installing the first road of LED street lighting in South Africa, in the streets of Winterveld, an underdeveloped suburb of Tshwane. “The system used is the Ruud Lighting/BetaLED LED Street Lighting system. The BetaLED street lights have a projected lifespan of 20 years – far beyond that of traditional lighting systems and is also self-cleaning – using rainfall to flush dirt off fittings,” says Gittleson before adding that the system has reduced its energy consumption on street light by 90% and an average saving would show between 50 – 80% savings on street lighting. “Theoretically, converting to energy-efficient street lighting should be easy because you don’t have to convince thousands of individuals to buy the products and start using them in their homes,” continues Gittleson.

Schleritzko notes the high interest LED street lighting is receiving from local authorities in South Africa. “Although the use of LEDs is still in its infancy phase in South Africa various metropolitan councils and municipalities have embarked on test installations in order to gain experiences in their use. LED luminaires, particularly for Class B road lighting applications, are at a threshold of wide-spread deployment,” says Schleritzko. Rieyaad Martin, a Director at Goldwyn South Africa, add that many municipalities contact LED suppliers to test the electricity saving benefits of the product. “We have supplied various Municipal Districts at risk with different Goldwyn LED lighting products for pilot testing at their discretion, in order to assess Light Levels as well as calculate the Energy Saving Potential. The feedback reports are resoundingly encouraging” says Martin.

Energy-efficiency in commercial applications

“LEDs aren’t always suitable for industrial applications, but there’s an increasing amount of commercial applications that are using other means of energy-efficiency lighting solutions,” says Gittleson. Pick n Pay is currently fitting out their new flagship store in Sandton, Gauteng, to save energy with energy-efficient lighting. “Pick n Pay is bringing in daylight with a special prismatic diffused skylight that controls the amount of light that the building needs,” says Gittleson. Gittleson says that Light Kinetics is also installing the first LED lighting system for above and underground parking in South Africa at the same Pick n Pay. “The use of natural lighting instead of artificial lighting will make a huge difference in the energy consumed by shops and offices. Osram use a system called daylight harvesting,” says Greenhill. “The daylight / movements sensor measures the amount of light continuously and if the room or building is too dark, for example a cloud comes over, the artificial lighting will brighten and vice versa.” “Daylight harvesting is suitable for a variety of spaces. In an office, for example, you need around 450 lux at your desk for optimal lighting comfort. If you have natural light in your office as well, you might have 600 lux on your desk, which is unnecessary and the electricity consumption for the lighting can be seen as a waste. Daylight harvesting has the ability to now control balance between natural and artificial lighting” says Greenhill. Gittleson says that the new Pick n Pay in Sandton will become a reference for energy-efficient lighting solutions in commercial applications when it is completed. “A key issue is that the store is going to be lit by daylight for 70 – 80% of the day, with minimal use of artificial lighting. Makro is also installing a natural daylighting system in their new Vereeniging store and will also be using daylight harvesting to save energy, so the industry


is definitely starting to shift to more efficient ways of managing their lighting,” says Gittleson. According to Chrysalix, a company that supports and invests in clean technology companies who are developing environmentally friendly products and business models, the LED lighting revolution has already begun, but forecasted reduction in energy consumption based on the promise of solid state lighting will not be realised if we don’t significantly increase the number of installations. “The answer is that most LED-based lighting systems today simply cost too much. This is not a surprise, nor controversial. The industry recognises that to expand and accelerate market penetration, we must reduce LED lighting system prices significantly. Currently, the initial installation costs of solid-state lighting systems can be four to five times these of conventional lighting systems, and even higher for retrofit replacement lamps,” says Keith Scott, Vice-President of Business Development at Bridgelux. Contrary to common belief, LED LIGHTS compete favourably with the pricing of High Voltage Lights. Notwithstanding the value that accrues from cabling costs, free maintenance, and the potential yield of Carbon Credit Trading Income. Goldwyn’s LED retrofit solution is inherently a cost saving mechanism with recorded comparisons in this regard. The energy-saving supply chain needs to ramp up manufacturing and drive innovation in order to create economies of scale, reduce product development risk and drive costs down for the LED light sources, electronic drivers and all system components. “Ultimately, driving down overall product costs to make LED-based lighting systems more affordable, more ubiquitous and finally delivering on the promise of greater energy efficiency for the global economy,” concludes Scott. Continue on page 24

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Schleritzko says that switching to LED based street lighting would an important step in the right direction for South Africa.

makes the product much more resistant to vibration and impact, opposed to glass type’s products in use. Try dropping any of those from some height”, Martin added.

What about LEDs on highways The use of LED lighting on highways is still extremely new, with a variety of pilot projects and research taking place to prove LED’S into the High-Voltage lighting application market as a replacement solution.

“The one area in which LED technology offers a significant advantage over induction lamps is ruggedness. Since the LEDs are solid-state devices, they are more resistant to vibration and impact compared to the induction lamps which are made of glass. LED lamps are therefore more suitable for applications where there is high vibration such as in transportation and industrial machinery applications”. Ruud Lighting, owner of the BetaLED brand which is the largest privately owned lighting company in the world, has invested approximately US$50million in research and development of high-power white light LED solutions for road, highway and outdoor area LED luminaires. Some of the key contracts that have been secured include 64 000 lights to retrofit all the high-powered street lights in Anchorage, Alaska, and 140 000 high-powered street lights to retrofit street and highway lighting in Los Angeles, California.

“There are approximately 1.2-million streetlights on national roads in South Africa. The Carbon Credit earning potential of LED lighting on country wide High Way installations are enormous. Savings on energy, maintenance, cabling and switchgear requirements is a sure reality. Reduction of cable theft in future installations is just an added benefit. LED flood lights also eliminate the need for expensive “Instant Re-Strike” requirements”. “The ever increasing electricity cost will reduce your return on investment to well below a two year period in certain applications, when switching to LED”, says Martin. “Goldwyn Led technology offers yet another significant advantage over the CFL, HPS, M-Halide as well as Induction Lamps due to its ruggedness. This

According to, the installation of the LED fixtures in Los Angeles is estimated to save millions annually, reducing the city’s energy usage by 40% (according to some sources, this could be even higher) and lower CO2 emissions by 40 500 tons per year (the equivalent of taking 6 700 cars off the road). Light Kinetics represents BetaLED in South Africa. “Some of the LED lighting installations in Gauteng include Jones Rd towards and along Emperors Palace and just off the R21 in Ekurhuleni,” says Gittleson. Sources:,,,,,,,,,,

Retrofit lighting in demand locally


coLight Distributors, leaders in lighting retrofits for commercial and industrial companies, have been specialising in this market for the past six years. The EcoLight retrofit option has reduced electricity consumption and demand in numerous projects, with large companies such as PPS, Anglo Coal, local municipalities and banks realising the benefits of making energyefficient lighting decisions. “In recent retrofit projects, EcoLight has documented that four foot retrofits save between 14 and 15 watts per tube while the five foot option offers between 30 and 33 watts per tube,” says Kevin Wilkins, Managing Director of EcoLight Distributors. “Conventional retrofits can only offer between six and nine watts respectively. In today’s high-priced electricity environment, it is wise to reduce consumption as much as possible,” continues Wilkins. Many high profile companies in South Africa are using EcoLight products and


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reaping the benefits of reduced electricity consumption. The product qualities are at the highest level, ensuring a long lifespan that offers years of troublefree lighting solutions. Local partnerships EcoLight has partnered with local manufacturers to develop and market cutting edge lighting for low-cost housing as well as specialised lighting for businesses. “We pride ourselves on sourcing as much product as possible from within South Africa and to this end we now have LED replacement lamps that are manufactured locally,” concludes Wilkins. EcoLight & EcoDrive SA Tel: + 27 11 021 3105 Fax: +27 86 672 3839 E-mail: Website:

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Intelligent lighting control and energy saving-solutions


ntelligent lighting management and energy-efficiency lighting solutions have reached a new level. Innomatic’s innovative range of motion and occupancy sensors, as well as an advanced solution in wireless building control and automation, allows you to control your environment and save you energy at the same time.

Zone control Zone control means dividing the lighting into several zones in order to exploit the extra daylight that comes in through the windows. The proper term for this type of technique is called daylight harvesting, where the zones are controlled separately by the natural light.

Movement sensors A movement sensor switches on the lights when it detects movement and a temperature change of ±5°C. Movement sensors are called PIR sensors (passive infrared). Occupancy sensors

These solutions can be used almost anywhere, for example: Small and large area offices, classrooms, conference room, exhibition rooms, corridors, staircases, kitchens, canteens, bathrooms, storerooms and warehouses. These systems are typically designed for Light and HVAC control but it can also be implemented as security devices.

An occupancy sensor is a movement sensor equipped with the latest technology, which means that it can detect movements down to a level of 4-5 cm. It can thus “see” people in a room, even if they are just there and are hardly moving at all. Occupancy sensors can achieve a very good detection range, as they use ultrasound combined with PIR technology. Light sensor Light control sensors measure the room for movement as well as the natural light in the room and control the artificial light accordingly. A light sensor has an integrated light-sensitive element, which changes characteristics depending on the strength of the light. The light sensor sends a signal to the control unit, which switches the light on/off or dims it.

Innomatic Tel: +27 11 840 0840 Fax: +27 11 466 0223 E-mail: Website:

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Measuring the cost of energy efficient-lighting


t is generally assumed that energy-efficient lighting and savings come at a cost, not only in initial capital expenditures of the luminaire but also in the reduction in the quality of light produced. Envirolight, through its innovative design and via Lumotechs technologically advanced manufacturing facility, is disproving this perception with its IP66-rated luminaire that offers better lighting and exceptional photometrics. The company’s ability to produce the products at a low cost also makes this energy-efficient product a fixture of choice. “The Envirolight range of energy-efficient products includes both conventional street-lighting for category A and B roads, solar powered street-lighting for residential roads, warehouse lighting and security lighting. The company recently displayed its products at Lightfair International in Las Vegas, possibly the largest lightfair in the world. “The other street-lighting fixture exhibits were dominated by LED and Induction luminaires. A few other lighting technologies were displayed, showing that the days of the low CRI luminaires are over,” comments managing director of Envirolight, John Rice. The high tech manufacturing company Lumotech (formerly Hella South Africa) has brought 50 years’ experience in reflector and automotive headlight manufacturing to the table to assist and partner Envirolight in the development of the products

• • • •

hence this principle is fraught with risk in an environment of unproven technologies where a number of areas of potential failure may arise,” explains Rice. “The problem of measuring the ROI of technology over a long period is exacerbated by the fact that these technologies change extremely fast and hence, when one considers that solar-powered technology is already available at an affordable price, it is likely that within the next five to ten years there will be a saving by retrofitting existing luminaires with solar power and so the ROI should not be calculated over a long period.” CFLs have a high CRI (82) but low glare factor. Thermal issues arising from heat generation (which are considered to be a stumbling block in many lighting technologies) are not prevalent in CFL products. Due to the lack of heat, the ballast can be housed within the IP66 rated housing together with the lamp and not be exposed to any form of weather damage. The products have highly efficient reflectors that provide total luminaire optical efficiency of around 85. CFLs are low maintenance products which can be maintained in situ. “The only maintenance required will be as a result of an old lamp or ballast failure. Envirolight’s life expectancy on both lamps (33 000 hours) and ballasts (50 000 hours) is high and failures are likely to be negligible,” says Rice.

Why CFLs are used Energy-efficient products According to Rice, compact fluorescent lights (CFLs) have the following advantages over the other energy efficient technologies: • The capital cost of the luminaires is between 1/3 and 1/10th of the price of other technologies. • Energy-savings of CFLs can be compared to LEDs in certain instances. • The low capital cost of the CFL luminaires allow for a large rollout where financial resources are limited. • CFL technologies have a good return on investment (ROI) compared to other technologies, which rely on long lamp life times to justify the ROI. “This ROI is only valid if the luminaire will last in all respects for a long period without any maintenance and


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Envirolight’s products have been installed in Egypt and India. Envirolight also partnered with the United Nations for a solar streetlight project where 13 solar streetlights were installed in each of the five World Cup host cities for the FIFA World Cup, event which took place in South Africa this year. “Our products are undergoing tests throughout the world and are now being marketed in Africa, India, the Middle East, Australasia, Canada, the USA, Caribbean and the Latin Americas and approvals have started to come through,” comments Rice.

Lig h ting

Table of savings

Existing lamp


100W HPS

125 W MV

150W HPS

250W HPS

400W MV

Envirolight replacement

ES 42

ES 57

ES 57











Percentage saving







Annual saving







Envirolight’s energy-saving performance data on existing streetlights.

Huge savings with streetlight retrofitting projects Envirolight’s innovative automotive headlight reflector and electronic ballast technologies, coupled with longlife CFLs that have a high CRI (Colour Rendition Index 82), allowed the company to achieve energy-savings of between 48% to 70% on existing streetlights. Seeing the light when determining the lifecycle costs of lighting products Decision-makers in the public lighting sector are faced with the challenge of measuring the life cycle costing of energy-efficient lighting technologies. Rice explains that these calculations are particularly difficult due to the fast changing technologies as well as the wide range of traditional measuring methods which can’t always be applied across a broad range of products. “The fundamental rule for all calculations should be the time period over which an evaluation will take place. This criterion is often the cornerstone on which the latest technologies determine the cost-effectiveness of one technology versus another,” says Rice before explaining that this calculation also has its pitfalls. “The primary mistake that is made relates to accounting for the speed of technology change. A good example of this challenge is the computer industry as this market also experiences continuous change and developments. In the computer industry, the question also arises as to whether it is worth putting in a mainframe computer if there is a PC at a fraction of the cost that can do the job. The assessment of the lifecycle cost on the mainframe computer would have been done over a lengthy time to justify the investment. However within a short time the PC’s had developed to be more powerful and more efficient than the mainframe,” continues Rice. Rice explains that this type of life cycle costing is also applicable to luminaires technologies. “Currently, a lot of product evaluation gets done on an historic basis of long-term lifecycle costing, whereas the actual lifecycles will be significantly shorter. Solar-powered streetlights are already in use and are likely to be very cost-effective within the next five to ten years. I predict that the cost of other energy efficient lighting products will continue to fall,” says Rice. “The second common error that is made when determining life cycle costs is the use of lamp-life criteria with new technologies. The pitfall here is that reliance is being placed on manufacturers’ claims that lamp-life will be very long, but this lifespan can be severely affected by thermal conditions, which in turn can result in the product not performing as

the manufacturer said it would. This fundamentally changes the model and provides incorrect answers relating to maintenance,” says Rice. According to Rice, the following criterion needs to be considered when determining the best financial solution for choosing energy-efficient lighting products: A luminaire that has a high ingress protection rating to ensure that maintenance issues other than lamp replacements don’t arise. Proven lamp life claims (this evaluation should be carefully assessed via research into the technological design to support climatic conditions and the manner in which the luminaire adjusts light output to the conditions). The best overall financial solution will be the one that provides the most certain overall ROI within a five to ten year period. “One must not lose sight of the need for proper street lighting. All assessments need to carefully weigh up the financial considerations against the quality of light output as this will determine the performance of your energy-efficient lighting solution,” concludes Rice. Envirolight Tel: +27 11 803 0684 Fax: +27 86 504 2666 E-mail: Website: 2 5 o in A f rica


Ligh ting

Organic LEDs the next level in Solid State Lighting LEDs (Light Emitting Diodes) have revolutionised the energy-efficient lighting industry and OLEDs (Organic Light Emitting Diodes) are taking this technology to the next level. Although LEDs and OLEDs both generate light through semi-conductors and OLEDs are made from organic semiconductors where LEDs are made from inorganic materials such as crystals.


undreds of millions of dollars have been invested in OLED lighting, especially in Europe, the US and Japan. Although OLED displays have been in mass production for about a decade, OLED lighting just started sampling and small volume production. This is due to the fact that OLED displays and OLED lighting face different challenges,” says DisplaySearch Director, Dr Jennifer Colegrove. Why OLEDs are causing so much excitement According to, gadget experts and lighting specialists are excited about OLEDs due to the following reasons: Materials in OLEDs are deposited by industrial coating processes that are cheaper than techniques required to manufacture traditional LEDs. OLEDs can be made on flexible plastic substrates that are anticipated to lead to full colour flexible displays less than 1 mm thick. Multi-colours are possible. However, there are certain drawbacks. Although says that OLEDs are more efficient at making light than ordinary incandescent bulbs, they are not yet as efficient as conventional LEDs. “Certain materials in

OLEDs are incredibly sensitive to moisture, which leads to a short life,” says the electronics magazine. New technologies in OLEDs Chemical Company BASF have partnered with Osram to develop a white OLED which is better suited to lighting. For the first time, an OLED is not only able to achieve a light yield of over 60 lm/W, but also at the same time meet the international Energy Star SSL Standard with regards to colour requirements,” said BASF. Lighting efficiency describes the ratio of luminous flux given off by a lamp to the amount of power consumed – the greater the yield, the less energy is lost. According to BASF, the colour values of OLEDs have not been within the acceptable band for colour coordinates around the Planck curve, as defined by the Energy Star SSL Standard, up until now. “The colour values of the new OLED are within this band – its light retains the white colour at different levels of intensity,” said BASF. The new challenges BASF and Osram believe that OLEDs will be suitable for general lighting as flat sources of light, for offices as well as decorative lighting in stores. These lights offer the opportunity of having more economical lighting than conventional low-energy bulbs in terms of electricity consumption and they are also capable of being used in different ways as transparent, flat and, in the future, flexible sources of light. “The challenge now lies with the process engineers to apply these high efficiencies economically to large active areas,” concludes Dr Karsten Heuser, OPAL Coordinator and Director of OLED Lighting Technology at OSRAM Opto Semiconductors. Sources:,,,


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igerian energy company Oando Plc is planning on raising US$250-million by floating a minority stake (49%) in its local retail arm by September ( Oando Plc is Nigeria’s largest fuel retailer and the 49% stake is valued at US$500-million. “This is part of Oando’s plans to transform itself into a major upstream energy company in Africa’s biggest oil producer,” Wale Tinubu told Reuters reporters on 14 June. Nigeria is the world’s eighth largest oil producer. According to Nigeria’s Daily Independent, Nigeria sells approximately 50% of its daily output to the US market (which amounts to over one million barrels a day). Tinubu said Chevron, Agip and Shell are currently in discussion with Oando to buy onshore blocks and areas of swampland that are estimated to contain between one and four billion barrels of oil equivalent (which has a ball-park estimate of US$2-billion).

Nigeria swamp: Large oil companies are negotiating with Oando to buy onshore blocks and areas of swampland that are estimated to contain between one and four billion barrels of oil equivalent.

According to Reuters, the bill is partly designed to boost Nigeria’s oil production from 2.5-million barrels per day to 4-million by furthering output in the country’s little-developed swampy coastal areas ( “The international oil majors are looking to offload the assets because of a “use it or lose it” clause in a new petroleum industry bill that forces the sale of proven reserves that have not been developed for 30 years. This is the first time in our country’s history that acreage that’s been locked up for 30 years is being returned to the market,” said Tinubu. Oando is listed as Lagos on the Johannesburg Stock Exchange (JSE) and in May, the diversified energy company reported a 105% increase in pre-tax profits for the first three months of 2010. Sources:,,

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Oil spill

containments still not working BP has been trying to control the oil spewing into the Gulf of Mexico since the large scale oil spill began on 20 April just off the coast of Louisiana. Ruptures in drilling infrastructure below the surface of the waters were caused by an explosion and fire on the deep sea oil rig, which killed 11 people and is causing a major ecological disaster.


’s chief executive officer, Tony Hayward, has described the oil spill as an “environmental catastrophe” on the wider energy industry and Brian Youngberg, an analyst with Edward Jones, has commented that the spill is “like the 1 000-year flood: it’s the worst-case scenario and it is hard to prepare for these extreme situations” (

“All of the techniques being attempted or evaluated to contain the flow of oil on the seabed involve significant uncertainties because they have not been tested in these conditions before,” said BP.

On 8 June, US Coast Guard Chief, Admiral Thad Allen, said that BP “needed to do better at getting money to people and businesses affected by the spill”. BP had asked the US military to help because the spill surpassed BP’s”‘worst case scenario”, meaning it could become a major ecological disaster and even begin to rival the damage of the Exxon Valdez Oil Spill in Alaska in 1989.

In the beginning of June, a Lower Marine Riser Package (LMRP) containment cap was installed to the oil well and it continues to collect oil and gas, which is then transported to the Discoverer Enterprise drillship on the surface. Within the first 12 hours of installment, approximately 7 920 barrels of oil were collected and 15.7-million cubic feet of natural gas were flared. Within five days, over 15 000 barrels of oil were collected and 29.4-million cubic feet of natural gas were flared.

The leaking wellhead is currently spewing between 12 000 and 24 000 barrels per day ( On 10 June, BP said that the cost of its response to the oil spill has reached approximately US$1.43-billion dollars. Failed attempts Shortly after the oil spill, clean-up crews began conducting what is called an in-situ burn, which is a process that consists of corralling concentrated parts of the spill in a long fireproof boom, moving it to another location and burning it. Although Coast Guard officials admitted that a controlled burn of some pockets of the crude on the water’s surface isn’t an ideal solution, they agreed it is better than allowing the oil to hit the beaches. In May, BP’s subsea efforts included reducing the flow of oil spilled by physical containment and trying to stop the flow by using a “top kill” approach, which involved delicate operations of remote-control submarines to deploy a containment dome over the well. This attempt to stop the oil racing into waters failed, as did the operation of pumping 30 000 barrels of heavy mud into the damaged well.


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Containment efforts starting to work

The volume of oil captured and gas flared is updated twice daily on BP’s website ( BP acknowledges that the LMRP containment cap has never been deployed at these depths and conditions and its efficiency and ability to contain the oil and gas cannot be assured.


On 9 June, BP’s “lightering” (transferring crude oil from one) process began. BP is transferring oil from storage on the Discoverer Enterprise to the barge Massachussetts, after which the oil will be discharged at an onshore terminal. Hurricane season is on its way The arrival of hurricane season – officially 1 June to 30 November – is threatening to make matters worse. According to the National Oceanic and Atmospheric Administration, a busy hurricane season is expected but this has nothing to do with the oil slicks developing in the region. Simon Atkins, Chief Executive Officer and Senior Industrial Disaster Threat Forecaster at Advanced Forecasting Corporation (AFC), said a hurricane storm wouldn’t likely be changed in structure or degree of parameterisation (lower or higher wind speeds) if a storm enters oil-laden water, but “winds from a hurricane can hurl ocean spray many miles inland – since chemical dispersants reduced the size of oil droplets, it technically is feasible for microscopic toxic oil droplets to blow far inland, causing a large health crisis and evacuation winds from a hurricane can hurl ocean spray many miles inland. Since chemical dispersants reduced the size of oil droplets, it technically is feasible for microscopic toxic oil droplets to blow far inland, causing large health crisis and evacuations”. ( Cleaning up the mess Over 173 000 calls have been made to BP’s helplines and 42 000 claims have been submitted to the company. Hayward has promised that the company will pay all “legitimate” claims resulting from the spill. On 13 June, the largest anti-BP group on Facebook (Boycott BP Facebook Group) had over 588 000 members and there were over 350 groups on the social networking cite calling for a boycott of BP. By the end of May, BP shares had already lost a quarter of their value since the oil rig explosion. Boycotts of BP filling stations are popping up all over the world, but oil industry analyst, Phill Flynn, has been quoted saying that BP boycotts will not hurt the company, but rather shareholders of the company. “Retail gasoline sales account for such a tiny part of BP revenues that the impact of even a massive boycott would be negligible. Such boycotts would end up hurting the wrong people,” said Flynn ( US President Barack Obama has promised that every single person affected by the oil spill will be properly compensated. In an interview with NBC network, Obama said that he has frequently consulted with experts in order to learn “whose ass to kick”. “I don’t sit around just talking to experts because this is a college seminar. We talk to those folks because they potentially have the best answers so I know whose ass to kick,” said Obama. Obama has been criticised that he has not shown enough leadership or outrage over the disaster. The president recently told reporters he was committed to seeing the Gulf region restored. Almost 3 600 vessels are involved in the clean-up response efforts to protect the shoreline of the Gulf of Mexico. Operations involving skimmers, tugs, barges and recovery vessels are skimming oil from the surface of the water and, according to BP, 383 000 barrels (16.1-million gallons) of oily liquid. “The total length of containment boom deployed as part of efforts to prevent oil from reaching the coast is now over 2.3-million feet and almost 2.7-million feet of sorbent boom also has been deployed,” said BP.

BP’s Lower Marine Riser Package Cap The latest containment option for collecting oil that BP is using is the Lower Marine Riser Package (LMRP) Cap. The LMRP is the top half of the blowout preventer (BOP) and the containment device is connected to a riser from the Discoverer Enterprise drillship. The LMRP Cap is designed to seal on top of the riser stub. The seal will decrease the potential of inflow of seawater as well as improve the efficiency of oil recovery. Lines carrying methanol are also connected to the device to help stop hydrate formation. On 7 June, Senior Vice-president of Exploration and Production at VP, Kent Wells, gave a technical briefing on the status and progress of the LMRT Cap. “We believe the LMRP Cap is a superior oil collection device, but we will only call this option a success once we have collected all the oil that has spilled, cleaned up the Gulf of Mexico and when everybody’s lives have been restored back to normal,” said Wells. A system that looks like a cap sits on top of the LMRP and is extended to the Discoverer Enterprise Ship via a drill pipe. “There is oil and gas curdling up and around the LMRT Cap and there is also oil and gas coming out of the chimney vents at the top. At the beginning of this operation, we thought that one of the keys to optimising the ability to collect oil would be to close down the chimneys, but we have realised that leaving the vents open helps us to optimise this process,” continues Wells. “I understand people’s fascination and inquisitiveness regarding the LMRT Cap,” said Wells. “We are continuing to optimise the collection efforts of the LMRP and I am confident that we will continue to collect more oil with this option.” Preparations for additional planned enhancements to the LMRP containment system continue to progress. The first planned addition will use the hoses and manifold that were deployed for the “top kill” operation to take oil and gas from the failed Deepwater Horizon blow-out preventer (BOP) through a separate riser to a vessel on the surface, in addition to the LMRP Cap system. “This system is intended to increase the overall efficiency of the containment operation by potentially increasing the amount of oil and gas that can be captured from the well and is currently expected to be available for operation in mid-June.,” said BP in a statement released in June. The second planned addition, which will be implemented in July, is intended to provide a more permanent LMRP containment cap system by directing the oil and gas to a new free-floating riser ending approximately 300 feet below sea level. It is then proposed that a flexible hose will be attached to a containment vessel. This long-term containment option is designed to permit more effective disconnection and reconnection of the riser to provide the greatest flexibility for operations during a hurricane. “There is a dedicated group of engineers that will continue to work on the LRMP Cap until every last barrel that can possibly be collected would be cleaned up,” concluded Wells.

2 5 o in A f rica


biofu els

According to, the European Union will require all transportation fuels to contain a 10% biofuel component beginning next year and China will add 15% of biofuels into its diesel and petrol in the near future. The South African White Paper, which was released four years ago, set a goal of achieving a 2% penetration level of biofuels in the national liquid fuel supply by 2012. This target has been revised down from the 4.5% target that was initially proposed in the draft strategy document.

viability of producing



errit Smith, Managing Director of Bioneer, says that South Africa is far from reaching the 2% penetration levels in the national liquid fuel supply and he doubts that the country will be able to meet this target. “2% of the national liquid fuel supply equals about 180-million litres per annum. The country will need at least one large scale biodiesel plant to achieve this target, but a lot has to change in the South African biofuels strategy to make this possible,” says Smith. “Biodiesel plants aren’t commercially viable in this country and technically the biofuel industry does not exist, because there are no commercial scale biofuel plants. The large scale biodiesel plants overseas use only virgin feedstock (mostly Canola or rapeseed, soybean and palm oils). The price of virgin vegetable oil in South Africa is currently exceeding the wholesale diesel price, which makes the production of biodiesel from virgin oil only feasible if government introduce mandatory blending with ordinary diesel or subsidiaries for biofuel. Also, virgin oils are used in the production of food which continues the food versus fuel debate. There is alternative feedstock for biodiesel production like animal fat and waste cooking oil which is available at a much lower cost than virgin oils but also in significantly lower quantities. The cost of used cooking oil and animal fat ranges between ZAR2.00 and ZAR4.50 per litre which can make biodiesel production viable if government did not tax biodiesel production. According to SARS you are considered to be a commercial producer if you produce more than 300 000 litres per annum in which case you are required to pay a tax of ZAR1.47 per litre. This makes biodiesel production not viable at a commercial scale and actually has a negative effect on the biodiesel industry. Because of the 300 000 litre per annum or 25 000 litre per month threshold, only small or illegal biodiesel producers exists which cannot afford all the equipment to produce biodiesel to SABS specifications.


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They also cannot afford the quality verification tests which cost more than ZAR10 000 per batch and therefore have to sell their substandard product at reduced prices or blend it illegally with mineral diesel. This has caused a nightmare for fuel companies and engine manufacturers because some of this bad quality biodiesel has found its way into commercial fuel stations. Previously Motor Companies in South Africa allowed up to 20% biodiesel blend in their vehicles but because of this controversy most of them have retract that and do not allow any biodiesel in their vehicles. Government policy has a negative effect on the biodiesel industry which forces only small backyard biodiesel productions operations. There could have been one or two small commercial biodiesel plants with a capacity of about 500 000 litres per month in every major city producing SABS certified biodiesel which could have further spawn other biofuel projects. Sell biodiesel for more instead of looking for low-cost feedstock “The goal shouldn’t be to supply something that is cheaper than fuel – it’s about supplying a sustainable, more environmentally-friendly alternative to fuel. A person who buys organic food or free range eggs does so because it is a better, more sustainable solution to a growing problem, not because the products are cheaper,” says Smith. Automotive biofuel usage Earlier this year, Lufthansa sent a delegation to Sun Biofuels’ Mozambique project to look for a viable solution to reach the airline’s goal of the first airline to operate a daily flight between Hamburg and Frankfurt on a 50% biojet fuel blend ( ADEPT Airmotive, a Durban-based general aviation (GA) company, has developed the world’s first modern GA engine that runs on a range of fuels. The ADEPT 320T engine, which can operate on normal unleaded petrol

biof ue l s

The aviation sector accounts for 13% of fossil fuels in the transportation sector. New engines have been developed that can successfully run on biofuels.

Egypt to build first (MOGAS) and standard aviation fuel (AVGAS), can also operate on more environmentally friendly alternatives, such as biofuel. The advanced, liquid-cooled electronic engine was launched in May and the South African designed SA Ravin 500 light aircraft showcased what the 320 horsepower engine can do. The engine boasts the lowest CO2 emissions, lead and nitrous oxide (NOx) levels which sets it apart from existing technology in the field. According to ADEPT, the manufacturing process of the 320T also makes the engine extremely environmentfriendly. “The emission free foundry process used in the production of engine castings is the first in South Africa, and has only recently been introduced by a major European automobile manufacturer. The process is the result of a technology collaboration between ADEPT and the German company Ashland Sud-Chemie,” ADEPT said in a statement. “Our technology benchmarks South Africa against the finest aviation engineering in the world,” says Andre Schoeman, Chairman of ADEPT. According to a report by the Intergovernmental Panel on Climate Change, aviation fuel currently corresponds to 2 – 3% of the total fossil fuels used worldwide and of this total more than 80% is used by civil aviation (www.ipcc. ch). The entire transportation sector accounts for 20 – 25% of global fossilfuel consumption, making the aviation sector accountable for 13% of fossil fuels in transportation. In October 2009, head of International Air Transport Association, Giovanni Bisignani, presented the aviation industry’s climate change strategy and targets to UN Secretary-General Ban Ki-moon. According to, the international air transport industry has committed itself to cut the sector’s CO2 emissions by 50% by 2050, compared to 2005 levels, and airlines have pledged to improve fuel efficiency by an average of 1.5% annually until 2020. For more information visit, and, to which full acknowledgement and thanks are given.

seawater-based biofuels plant


exas-based Energy Allied International, the Seawater Foundation and Global Seawater Inc have joined forces to develop the world’s first commercial scale seawater-based project in Egypt. The “New Nile Co” marks the largest biofuels investment to date in Africa or the Middle East ( According to, New Nile Co will produce “tens of millions of litres of second generation biofuels”. The 50 000 hectare project site will use Egypt’s untreated seawater and its vast arid desert resources. Although first generation biofuels threaten to displace traditional food sources, New Nile Co will produce advanced biofuels by applying the ISAS model. The ISAS model is an advanced biofuels production model that uses effluent from seawater aquaculture as a natural fertiliser to grow large plantations of halophyte (naturally salt resistant plant) salicornia, which can yield large volumes of high-grade vegetable oil for use as biofuel feedstock ( “‘Energy Allied International’s expertise in developing large-scale energy projects in the Middle East and Africa, tied with The Seawater Foundation and Global Seawater’s extensive knowledge of developing and operating ISAS models, is a winning combination to ensure the success of the world’s first commercial scale seawaterbased biofuels project,” said Carl Hodges, chairman of The Seawater Foundation and co-chairman of Global Seawater. Besides the automotive markets, New Nile Co will also target the European civil aviation market, which is subject to strict EU regulations, with aviation entering the EU Emissions Trading Scheme in 2012 ( Egyptian government is currently negotiating with New Nile Co’s developers to determine exact site location and construction of the project, which is expected to start in 2011.

2 5 o in A f rica


biofu els

Saving energy with wasted resources in municipalities part 2 This is the second article in a three-part series of using wasted resources in local municipalities. The first article focused on the beneficiation of municipal solid waste. In this article, energy savings in municipal wastewater plants will be discussed.


he recent release of the Green Drop Report by the Water & Environmental Affairs Ministry in South Africa has highlighted the challenges lying ahead for municipal wastewater plants. One can be alarmed at the poor status of South Africa’s wastewater infrastructure – however, credit should also be given to the Ministry for openly admitting its shortcomings and making a commitment to aggressively tackle the problems. The major problems experienced by municipal wastewater plants in Africa are capacity constraints and high running costs. These problems are experienced over most of the continent and can be summarised as follows: Capacity constraints Typically, most African cities have to deal with the effects of rapid urbanisation and population growth, resulting in higher density cities. Waste levels are increasing 2-4% above population growth placing huge pressure on limited municipal resources that also cater for other infrastructural demands.

The new technologies Rosslee explains that in the past, the preferred method to increase sedimentation was to add chemical flocculants. “These flocculants may have negative impacts on the sludge beneficiation and at the same time, increase running costs. We work with two technology developers who have developed sustainable sedimentation technologies,” says Rosslee.

Capacity increases have not kept up with the additional service demands and the problem has been exacerbated in certain areas, by plants having slipped into disrepair due to inadequate funding. Experienced and competent engineers and managers are also in short supply and few people are pursuing a career in waste management.

The first technology is a gravity fed separation system that can remove up to 90% of the solids entering the wastewater plant. “We employ a second technology to increase the capacity of the plant. This patented technology uses sacrificial electrodes to form a flocculent, whilst also reforming the water particles into hydrogen peroxide, which is an extremely good hygienisation agent. Both technologies have low running costs as they are extremely energy efficient.”

High running costs

What about aerobic digestion?

Traditional wastewater plants consume great quantities of electrical power, which, particularly in the light of the recent hikes in grid power prices and these scheduled for the future, means already high running costs are going to escalate even further.

“The biological portion of conventional wastewater treatment or, as it is sometimes called, the secondary treatment, is designed to separate and break down organic contaminants with the aid of micro-organisms. Good bacteria, i.e. non-pathogenic bacteria that occur naturally in nature, break down the contaminants in wastewater. We refer to this process as aerobic digestion as this type of bacteria consumes oxygen in doing its work,” says Rosslee.

“Wastewater plants usually rely on aerobic digestion to remove harmful materials out of wastewater. The aerobic bacteria consume oxygen in breaking down the sewerage,” says Dwight Rosslee, commercial director of BiogasPower, a company that has been in the forefront of developing a more sustainable architecture for wastewater plants in Africa. “Typically, air is force fed into the biological reactor by large electric motors driving aerating mixers. These motors make up 60-70% of the wastewater plant’s total electricity consumption.” Therefore, reducing the amount of solids entering the biological reactor could inherently reduce the oxygen demand and hence the power consumption. Although Rosslee agrees that this is technically possible, he explains that the task at hand is not easy. “New technologies have evolved and they now allow us to increase the sludge precipitation in the primary reactor. Traditionally, 30% of the solids are removed through primary sedimentation – we propose increasing the sedimentation to


75% thus reducing the load in the aerobic digester,” says Rosslee. When asked if the extra sludge is not just a different form of waste, Rosslee explains that this form of waste is a resource. “One can see the extra sludge as a resource for further beneficiation,” says Rosslee (find out more about this topic in 25° in Africa, Volume 5, Number 3 in the article entitled Waste to energy: a better alternative, p.24).

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“In this step, we would add a bacterial culture media called EKO-Accel in order to enhance and stabilise the aerobic digestion process,” says Rosslee. By doing this, the capacity of the plant is further increased while simultaneously reducing the amount of electricity used per m³ of wastewater treated. “By reducing the biological loading on the aerobic digesters we require less oxygen infusion to feed the bacteria. Less oxygen means less electricity is consumed or conversely we can now process greater quantities of wastewater without further spending on infrastructure,” concludes Rosslee. The third and final article in this series will discuss revenue-generating possibilities derived from wastewater by-products. For more information, contact Dwight Rosslee on or visit, to which full acknowledgement and thanks are given.

renewabl es

Thermal modelling conducted at the CSIR validated WSP Energy Africa’s research that if homes of the future are to achieve energy reduction targets, external walls must contain reasonable levels of thermal capacity supplemented by varying levels of thermal resistance depending on the climatic zone.

Optimal energy efficiency solutions

achieved with clay brick walling The validity of thermal mass, as a critical thermal performance factor for South Africa’s solar gain climate, where well defined average diurnal temperature swings characterise the six major climatic zones, is a well researched scientifically proven fact.


hile being a useful measure of thermal resistance of the wall itself, the studies demonstrated that a walling material’s R-value is not representative of the thermal value for energy efficient house design properties of a material. The finding of recent research carried out by WSP Energy Africa is that thermal mass and thermal resistance combined are critical properties for optimising the thermal performance of buildings in South Africa. The WSP Energy Africa research that builds on the equations described in the CR Method, defines how using deemed to satisfy principles, homes built with a good combination of thermal capacity and resistance can best optimise thermal comfort for the occupants yielding the lowest energy consumption for heating and cooling of internal spaces. Thermal modelling studies of both of 132 m² CSIR house and 40 m² low cost house types reinforce the validity of the WSP Energy Africa CR Product research leaving absolutely no doubt that if homes of the future are to achieve energy reduction targets, external walls must contain reasonable levels of thermal capacity supplemented by varying levels of thermal resistance depending on the climatic zone. Clay brick brings both properties to the table most cost effectively. For instance, in the Bloemfontein climatic zone one would insert 20-40mm of EPS in the cavity of a conventional double skin clay brick cavity wall, whereas in the Durban climatic zone the air in the cavity between the brick skins would suffice. So how does thermal mass help to make the thermal performance of a clay brick house so much more superior to highly insulated light weight walled alternates throughout the year? In summer the thermal mass responds slowly to temperature change compared to light weight materials; such that the

hottest part of the day is often past before the heat reaches the inside, this keeping internal spaces cooler for longer. In winter, radiant heat is slowly absorbed and stored in the internal clay brick walls during the day, this heat slowly released in the evening when it is needed most, keeping internal spaces warmer for longer. The net result is a flatter average thermal response curve, this facilitating better thermal comfort compared to insulated light weight alternates. As Dr Alec Johannsen of Alec Johannsen Consulting Engineering, in his review of the WSP Energy Africa CR Product study noted: “There is an additional advantage of heavier walls (not discussed in the CR Product report as it is outside its scope), namely a reduction of the building peak cooling and heating loads.” “This is the combined result of a reduction in the peak heat gain of the wall itself, and a time lag of the peak heat flux on the inside of the wall in relation to the heat flux on the outside, which makes the heat load from the wall out of phase with the other heat loads, resulting in a lower combined peak total heat load.” “The result is a smaller and less expensive cooling and heating plant and a lower electrical demand. The above would indicate that greater ‘Cs’ (thermal capacity) should be favoured over ‘Rs’ (resistance) when selecting a required CR Product.” Corobrik Tel: +27 31 560 3111 Fax: +27 31 565 1532 Website:

2 5 o in A f rica


rene wab les

South African

market ripe

for second generation

renewable energy Solar power is a viable alternative to fossil fuels and some alternative energy sources, as it gives off no carbon dioxide waste and uses the natural energy from our sun to generate electricity. After the lifetime of the panel, the materials that were used to make it could be recycled as no material is used in the energy generating process. There is also a lot of room for solar power to be used in the development of 3rd world economies, as it is extremely cost-effective in the long run.


arlman Moyo, regional director of DuPont Sub-Saharan Africa, believes that the recent hike in electricity prices of 24.8% will be the catalyst for the mainstream adoption of alternative energy solutions in South Africa.

production facility for thin-film photovoltaic modules and plant will provide photovoltaic systems to schools and clinics in rural communities where PV is more cost-effective than power grid development, as well as micro-sized installations for individual homes.

New photovoltaic technology Improving solar’s efficiency A second generation of photovoltaic technology has been introduced which is made up of solar cells that are connected in series. The most common commercial cells are made from purified silicon. The silicon cell is essentially a p-n junction that utilises energy from sunlight to generate electron flow from the p-type silicon to the n-type silicon. A typical solar module comprises of 36 cells connected in series to produce an operating voltage of 12V. It is thinner, more efficient and flexible and this technology is set to change the way solar energy is utilised in the future. Although crystalline silicon technology is currently used by 90% of the industry, thin film solar cells are attracting a lot of R&D (write out what this stands for the first time its used in an article) attention globally as the next generation of photovoltaic technology. Photovoltaic cells, which are assembled into modules which can be mounted on a roof or in a solar park, have traditionally been unattractive from an aesthetics point of view and sometimes difficult to install. “The new thin film

According to Moyo, the efficiency of solar technologies is improving rapidly. Twenty years ago, the maximum efficiency you could get from the sun was 15-20%, compared with over 50% for fossil fuels ( “Today, concentrated solar power is closer to 40%,” says Moyo. A typical silicon cell module will produce 200-250 watts peak output. DuPont expects the photovoltaic industry to increase by 50% in the next year as the solar industry experiences strong growth from market demand for new installations. “Policies which promote renewables and help consumers perceiving economical and environmental advantages will mark the speed and strength of growth of this strategic energy sector,” says Moyo. Moyo says it is crucial that private electricity providers also give their buy-in to solutions for renewable energy to be financially viable. “Public-private partnerships can help the nation achieve its energy and environmental goals right now as well as in the long term,” he says. “Fortunately, private industry is already stepping up to provide these services and public buy-in is growing rapidly.”

photovoltaic panels will be thinner, lighter and more flexible,” says Moyo. “The technology will give architects the opportunity to include solar energy as attractive and less inconspicuous features in building designs.” Local thin film production In December 2008 the European Investment Bank (EIB) granted a €40-million loan to Thin Film Solar Technologies, a company who specialises in thin film photovoltaic technologies in Paarl. The company will be constructing a


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For more information, visit and, to which full acknowledgement and thanks are given. Dupont Henrietta van Biljon Tel: +27 12 683 5600 Fax: +27 86 590 8180


town gets taste

of sunpower


multi-billion rand South African solar and wind energy initiative in a tiny Karoo town called Copperton will have major impacts for the local community. From May, solar energy was delivered free to their community hall and church courtesy of Mulilo Renewable Energy (MRE), who has also begun construction of a solar energy farm in the area. Technology is supplied by one of China’s top three vertically integrated photovoltaic manufacturers, Yingli Solar. MRE’s team comprises of experts in engineering, construction, project management and finance. Johnny Cullum, a director of MRE, says this tiny place was originally built as a mining town, but since the operations closed down, it has been a tough struggle for the residents. “This beginning, although it benefits only a small number of people right now, represents our broad-ranging solar and wind energy initiative for the whole of South Africa,” said Cullum. MRE has indentified land in the Saldanha industrial area for the manufacturing of turbine blades and wind tower structures by local industries. The local supply of these components will provide import cost savings and more importantly the much needed employment and skills transfer for the locals. MRE manages the wind and solar power operations separately, as the technology involved is substantially different. Together with technology

renewabl es Children of the tiny rural town of Copperton, 60 km north of Prieska, celebrate the new sun-generated electricity for their church hall against a backdrop of the state-of-the-art solar panels installed by national renewable energy provider Mulilo.

partners, MRE has a direct funding partner, the China Africa Development Fund (CADF), which is able to underwrite any project sanctioned by MRE. The company has also appointed environmental specialists to assist MRE with Environmental Impact Assessments on 11 potential wind and solar farm sites, which are in the process of being built throughout South Africa. MRE is planning to install a capacity of 1 500 MW of wind farms in various locations around South Africa over the next five years. MRE has programmed to start installation of the first 100 MW by January 2011. The CADF was established in June 2007 and now has access to several billion dollars provided by the China Development Bank. This equity investment fund aims to help Chinese companies develop co-operative ventures with Africa and to enter the African market. For more information, visit, to which full acknowledgement and thanks are given. Mulilo Renewable Energy Tel: +27 21 934 5268 Fax: +27 21 935 0505 E-mail:;

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National solar technology network A new supply chain of solar water heating (SWH) products has been established in South Africa. Solar Distributors Africa (SDA) has initiated and developed a large national network which will provide cutting-edge solar technology to the local industry. “This solar supply chain is creating a whole new range of opportunities to people interested in getting into the solar industry,” says Anton Pretorius, a director at SDA. “Our vision is that every household in South Africa should benefit from the abundance of sun energy by having access to a suitable solar water heater. To this end, we are focused on delivering, fit for purpose technology, taking into account the requirements of our diverse society.” Theuns van Aardt, a director at SDA, agrees that there is great value in a local supply chain. “A high-quality supply chain for the SWH industry can change the way people in the industry do business. We want to enable SWH business across South Africa to be able to get the stock, be it panels, geysers or entire systems, in their respective areas. This is a local initiative, driven by local companies to address the need for solar water heating in South Africa,” says Van Aardt. Van Aardt explains that SDA is trying to help fill a part of the void on the African continent, which is left by underperforming or undercapitalised utility companies. “We have a truly holistic approach, which is evidenced by the strategic alliances that we have formed with reputable, well established organisations in the industry, covering the entire supply chain,” says Van Aardt. Getting access to the best products “Dealers wanting to sell certified solar water heaters now have access to a national distribution network with a comprehensive product range. We have


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at least 15 solar systems that have been approved by Eskom’s Demand Side Management program, with more currently being tested. Our straightforward solar distribution network makes quality products available at affordable prices – dealers no longer need to spend time or money on sourcing, warehousing or transport,” adds Pretorius. Pretorius explains that SDA is able to supply quality solar water heating products at lower costs due to their volume of purchases and relationships in the industry. “SDA has the experience in the industry. We have identified

SDA has been associated with the following projects, direct or through their dealer network: • Virgin Active, Brightwater Commons, Randburg. • Darling Housing Project – 300 units supplied and installed. • Protea Hotels – OR Tambo International, Bloemfontein, Kimberley, Nelspruit, Willowlake, Fire & Ice, Black Mountain. • Medi-Clinic. • Pearl Valley, Val d Vie and other exclusive developments. • Various retirement homes, including a custom designed system in. • Caledon. • Universities of Stellenbosch, Western Cape and Swaziland. • Mines and mine housing. • And of course, many national residential installations.

renewabl es

for SA’s energy industry the key players and know who and what to look out for. We enable our suppliers to stay on the cutting edge of technological developments in solar water heating. Quality products are not negotiable. Local manufactures are preferred. “By purchasing our products in bulk we in turn supply our dealers at lower prices, a saving which should find its way down to the consumer. The service we offer is a comprehensive one and it extends from imported to locally manufactured products, backed by in-house technical support, system design and formal product and installation training,” says Pretorius.

“We pride ourselves in our ability to provide expert advice and ongoing support to our valued customers and we are committed to ensuring a mutually beneficial outcome with our service offering,” Why get involved in the distribution network?

• No franchise fees required whilst joining a national supply chain. • None of the problems associated with importing from suppliers 10 000 miles away. • Immediate benefits of national branding and marketing. • Access to accredited training courses supported by our suppliers. • Technical back-up available. “This network will improve the general awareness regarding solar water heating products, cost and installations. By increasing the efficiency in the supply chain the overall cost is driven down, making SWH’s affordable for the man on the street. Our vision is that every household in South Africa should benefit from the abundance of sun energy by having access to a suitable solar water heater,” says Pretorius. “The SDA team is a group of experienced professionals who are unashamedly passionate about our endeavours. We pride ourselves in our ability to provide expert advice and ongoing support to our valued customers and we are committed to ensuring a mutually beneficial outcome with our service offering,” concludes Pretorius. For more information about SDA, e-mail or

“There are a number of benefits of being part of our distribution network. It allows each of the parties involved to focus on their area of expertise. In doing so, we can all be the best at what we do. It eliminates the need to duplicate – we streamline the entire sales and distribution network, which saves money,” says Pretorius. • A comprehensive range of Eskom accredited solar water heating products available on you doorstep. • Top quality products supplied at discounted prices.

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Electrawinds launches first wind turbine at Coega IDZ Electrawinds Belgium has started construction of its first wind turbine in the Coega Industrial Development Zone in Port Elizabeth. The ZAR1.2-billion development marks the first commercial wind project in that area. The farm will consist of state-of-the-art equipment and will house 25 wind turbines.


ach wind turbine has a capacity of 1.8 MW which translates into an annual yield of 5 700 000 kWh, enough energy to power about 1 700 households. The electricity generated by the wind farm will be fed into the national grid and will be distributed by Nelson Mandela Bay Metropolitan to households within the Metro. It will also be completed in time to provide energy for the Nelson Mandela Bay Stadium during the 2010 FIFA World Cup. According to Luc Desender, managing director of Electrawinds, the company is one of the pioneers of renewable energy and it has accumulated a lot of knowledge and practical know-how on the subject. “There is great support for renewable energy and this offers good prospects. Furthermore, it is my personal dream to reserve the first green electricity of Electrawinds in South Africa for the 2010 football world championship,” says Desender. The first wind turbine units arrived in South Africa from Denmark in May. The wind turbine is a VESTAS V90 with a 95-meter tower and a 90-meter rotor. It is designed to maximize energy capture for medium wind regimes (IEC IIA) to further improve upon the V80 reputation as a reliable performer.

Features of the Vestas include a primary bed frame structure made from casting to optimise load transfer to tower and increase overall frame stiffness. The new turbine also has an improved main bearing housing design for increased structural stiffness, standard LVRT (Low Voltage Ride Thru) capability to provide continuous operation through grid faults, as well as complete variable speed capability with VCUS™ (Vestas Converter Unity System) technology. When completed the wind farm in Coega will be able to supply the Nelson Mandela Bay Metro with an average of 45 MW of green energy. The electricity produced by Electrawinds wind turbines will not be in competition with Eskom, as wind energy is not a replacement for Eskom but is alternative energy. According to National Energy Regulatory Rules there is a difference in price between wind energy and energy produced from coal, but it will not directly affect consumers. Pepi Silinga, CEO of the Coega Development Corporation, said the Electrawinds project will provide the Eastern Cape Province, and specifically the Nelson Mandela Bay Metro, with electricity security as well as access to the latest technology in renewable energy. “The project will allow the Nelson Mandela Bay Municipality to meet the growing demands for electricity. It will also contribute to the socio-economic development of the region through job creation and scholarships,” concludes Silinga. Other wind projects in South Africa There are currently two key pilot wind power projects in South Africa, one at Klipheuwel and another at Darling, both in the Western Cape. Klipheuwel is funded by electricity parastatal Eskom at a cost of ZAR42-million, and it is the biggest wind farm in sub-Saharan Africa ( It is a three-year experimental project that will initially deliver enough power for 2 500 households. The second wind power project in Darling marks the country’s first commercial wind farm. The ZAR75-million project powered up in May 2008 consists of four turbines, each of which generate 1.3 MW each of clean energy. For more information, visit and, to which full acknowledgement and thanks are given. Electrawinds Tel: + 27 82 465 9825 Coega Development Corporation Tel: + 27 83 661 1975


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Desertec, a €400-billion project, plans to generate electricity from the Sahara desert in North Africa and import it to Europe. On 20 June, European Energy Commissioner Guenther Oettinger said that Europe will import its first solar-generated electricity from the Sahara within the next five years (

Sun energy fromtoAfrica Europe “I

think some models starting in the next 5 years will bring some hundreds of megawatts to the European market,” says Oettinger. “These volumes will come from initial pilot projects, but the amount of electricity would go up into the thousands of megawatts as projects such as the €400-billion (333.8billion pound) Desertec solar scheme come on stream.” The Desertec project, which consists of a consortium of major firms such as Deutche Bank, Siemens, RWE and Munich Re, aims to help the EU (European Union) meet its target of deriving 20% of its energy from renewable sources in 2020. The plan is to build Concentrated Solar Power (CSP) plants in the Saharan deserts of Morocco, Algeria and other locations such as Jordan and Egypt. According to the Atlantic International Studies Organisation, just 20 GW of CSP energy developments would save some 80 – 100 metric tonnes of CO2 if coal power is replaced, which would be a significant step for European climate target compliance (

To integrate a bigger percentage of renewables, solar and wind needs time,” said Oettinger. Although most of the media coverage and reporting on the Desertec project has been positive, some environmental groups have warned that these cables could be used to import coal- and gas-fired electricity instead of renewable energy. Oettinger said that although this is a good question, it is not a question to destroy the project. “This question must be given by a good answer and we need ways to ensure that our import of electricity is from renewable sources,” said Oettinger before adding that it was technology possible to monitor electricity imports to the EU and determine whether they come from renewable sources or not. EU exploiting Africa?

The construction of new electricity cables, known as inter-connectors, which will be used to carry the energy from North Africa to Europe under the Mediterranean Sea, is being backed by the EU. Desertec also strives to include inputs from other types of renewable energy sources in the region, such as wind and geothermal, and transport this energy via the power lines. “Desertec as a whole is a vision for the next 20 to 40 years with investments of hundreds of billions of euros.

The possibility of EU subsidising firms involved in the project will only be announced once Desertec has presented a detailed business plan. Oettinger countered concerns expressed in the past by some officials in Algeria that the project could involve Europeans exploiting North Africa’s natural resources. “Renewables are a two-way partnership because electricity produced here is for the home market of North-African countries. Maybe a bigger percentage of the electricity will be exported to Europe, but at the same time we have to export the technology, tools, machines, experts, and so it’s a real partnership, not only a partnership by selling and by buying,” concluded Oettinger. Sources:, and 2 5 o in A f rica


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Technical engineering and process technology


esearchers from BASF, Energie Baden-Württemberg AG (EnBW), Heidelberg University and Karlsruhe Institute of Technology (KIT) are seeking to convert CO2 into fuel. The Verbund Solar2fuel programme plans to convert carbon dioxide into climate neutral fuels with the aid of sunlight.

The aim is to combine approaches based on nanotechnology and material research with catalytic processes.

“A photocatalytic process of this nature could open up new ways of generating easy-to-handle energy sources,” says Prof Dr Michael Grunze of the Physical-Chemical Institute of Heidelberg University. 

For more information, visit, to which full acknowledgement and thanks are given.

The project belongs to the Forum Organic Electronics excellence cluster and is being sponsored by the Federal Ministry of Education and Research with more than €1-million over two years. The experts at EnBW are investigating the energy, emission and cost balances of the overall process as well as the cost of supplying carbon dioxide from power stations.

BASF Holdings South Africa (Pty) Ltd Tel: +27 11 203 2422 Fax: +27 11 203 2430 E-mail: Website:

new, exceptionally cost-effective technology to capture carbon dioxide (CO2) is being jointly developed by the chemical company BASF and US research institute RTI International. This technology will capture CO2 from waste gasses emitted by coal-fired power plants and other industrial sources.


“Working with BASF, a global leader for gas treatment technologies, will also provide a path for rapid commercialisation of the technology so that we can have cost-competitive clean energy production from coal-fired power plants.”

Coal-fired power plants produce 50% of the electricity generated in the US and contribute about 36% of all the carbon dioxide emissions in that region (which amounts to 1.4-billion tons of carbon dioxide annually). BASF, which is one of the world’s most successful suppliers of gas treatment technology, explains that efficient solvents are essential for the CO2-capture, which is why the two partners will work on novel non-aqueous solvent systems that can be recycled. The capture process could use 40% less energy than conventional amine-based processes.

“Coupling RTI’s engineering and research capabilities with BASF’s gas treatment technical and commercial know-how will provide the right synergies to develop a highly effective new technology for the industrial carbon capture,” said Todd Spengemann, Business Manager at Americas Gas Treatment Solutions within BASF’s intermediates division.

“This new process for capturing carbon dioxide will keep the United States at the forefront of advanced energy and greenhouse gas control technologies,” said Dave Myers, vice-president of the Engineering and Technology Unit at RTI.


The technical engineering aspects of Solar2fuel are being implemented by KIT scientists under the supervision of Prof Dr Henning Bockhorn. These experts are investigating the physico-chemical and process technology aspects within the overall process. Based on an analysis of the overall system, the design of a photochemical reactor will be developed and simulated using computer assisted methods.

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The development project is sponsored by a US$2-million cooperative agreement from the US Department of Energy (DOE). The award is part of the DOE’s stimulus-funded initiative focusing on energy-related research projects. For more information, visit, to which full acknowledgement and thanks are given.

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South Africa’s REFIT scheme:

a bank’s perspective “By nature, renewable energy fuels are not reliable. They often require a Plan B to ensure grid stability and to enable operators to meet their generation commitments,” says Paul Eardley-Taylor, Head of Energy, Utilities and Infrastructure Coverage at Standard Bank. “People are quick to argue that renewable energy only offers intermittent electricity supply, but South Africa has a favourable setup for this type of alternative energy because the South African load is somewhat peaky – there are large variances between daytime and night-time. I believe there is definitely place for intermittent generation in this country.”

But you don’t have water Eardley-Taylor believes that, although there are several renewable solutions to energy shortages, many of these (such as solar technologies and biofuels) require massive supplies of water each year. “Concentrated Solar Power (CSP) in particular presents a problem as deserts or desert-type environments often provide ideal solar environments, but have a natural shortage of water which is needed for the associated turbine operation,” says Eardley-Taylor. “Access and proximity to the grid also remains a concern for renewable energy projects because preferred sites are often far from existing transmission infrastructure. The problem is that the grid must be extended for a generation source, which firstly will generate a maximum of 35% of annual hours of wind and 20% of solar and secondly still requires back-up power at alternative locations. Given the renewable in the Northern, Eastern and Western Cape, Eskom will save a significant amount due to line losses due to transporting electricity so far. It is expected that the only issue will be Eskom’s resourcing,” says Eardley-Taylor.


disclosed to Parliament that the current assumed tariff from 2015 onwards is ZAR1.09 c/kWh. “The wind tariff is ZAR1.25 c/kWh so even without carbon taxes there are not really a significant gap. Given the scale of Eskom’s tariff increases, the gap between wholesale tariffs and on-shore wind keeps narrowing. Solar is also cheaper than diesel,” says Eardley-Taylor. The REFIT scheme The National Energy Regulator of South Africa (NERSA) announced the regulatory guidelines, together with the commercial terms of Phase I for the REFIT (Renewable Energy Feed In Tariff) on 26 March 2009. The decision followed an accelerated public consultation process and just under four months later, terms of Phase II technologies were published for consultation together with a draft Power Purchase Agreement (PPA) for comment. On 29 October 2009, Nersa published the REFIT Phase II. “One of the criticisms that the renewable energy sector receives is that it’s a very slow sector. The creation of South Africa’s REFIT scheme, by relative standards, has been quick though,” says Eardley-Taylor.

Promoting renewable technology currently requires financial incentives, due to the cheaper and more reliable fossil fuel sources, such as Eskom subsidies and funding by government, but Eardley-Taylor believes that renewable energy is no longer a more expensive option.

Onshore wind, small hydro, CSP and Landfill Gas (LFG) are the four technologies that were included in the first phase of the REFIT. The five technologies included in the REFIT Phase II are biomass (solid), biogas, photovoltaic systems (large ground or roof-mounted), concentrating photovoltaic (CPV) without storage and CSP central tower.

“The difference between the cost of new thermal generation and wind is less than you would expect,” says Eardley-Taylor. In the beginning of May, Eskom

“You hear a lot about the benefits of CSP in newspapers and the media and people believe that this is an attractive option because it offers the possibility

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for wind, there are no sub-limits for technologies, hence wind may be far more competitive than other technologies. Also, has Eskom agreed to connect the targeted MW on a priority or timely basis? Assuming that projects are completed within a shorter timeframe than the set completion date, will connection take priority over its own projects?” asks Eardley-Taylor. Form of REPPA: “REPPA needs to be formed because it is the key contract through which developers and lenders will recoup their investment and generate returns. REPPA payments need to be recovered through the Cost Recovery Mechanism, but this intra-stakeholder arrangement cannot contaminate the REPPA. There is still no precedent for a signed, successful PPA in South Africa and given that renewable will largely seek project finance from South African banks, a critical objective will be to ensure the REPPA is bankable. A key issue is to ensure the REPPA draws on international precedent and it is not a wish list,” says Eardley-Taylor. of storage, but Standard Bank’s investors are in general ignoring CSP and going for photovoltaic. There’s not enough knowledge and evidence of CSP to make it a good investment opportunity for every investor,” continues Eardley-Taylor. “The REFIT has 9 separate tariffs. From Standard Bank’s point of view, there are only two renewable technologies: wind and solar. There are immense solar resources in the Northern Cape and areas such as Upington are experiencing a gold rush due to renewable energy investors. A good site for solar energy is one that gets approximately six hours of sun per day and South Africa has lots of these. Similarly, there are many areas that are ideal for generating wind energy. From an investor’s perspective, more than seven metres per second indicates the area has globally competitive wind resources.” According to Eardley-Taylor, Standard Bank expects the second draft of the Integrated Resource Plan (IRP2, scheduled for September 2010) to increase the MW cap for onshore wind but to reduce the applicable tariff. Outstanding issues and concerns Standard Bank believes the issue by NERSA on 22 February regarding the rules and selection criteria for renewable energy projects under the REFIT Programme is a major step forward (assuming it is approved), but the following concerns remain: Procurement process: Selection criteria outline various weightings through which projects will be accepted. Scores add up to 100 and are divided into ten individual criteria, for example a projects’ ability to raise finance is assigned ten points, construction period ten points etc. “But how do you measure Black Economic Empowerment (BEE) or even the construction period?” asks Eardley-Taylor. “We also still need some clarity on the interaction between the new Independent System Operator (ISO) and the REPPA (PPA counterparty), who remains undefined and referred to as ‘the Buyer’.” Number of MWs: “The selection criteria indicate that Eskom has 100 MW wind, 50 MW of CSP which may be owned by Eskom; wind has 400 MW and non-wind 325 MW. These figures are taken from the IRP. A total of 875 MW can be seen as Phase I of a process that will grow, but there is no indication in the selection criteria that there can be an overshoot of the 875 MW and such an ‘over-subscription’ will lead to projects not getting approved. Except

Grid connection: “It is a global issue that renewable development is being inhibited by the need to expand the grid in remote areas. Developers have rights to transmission and distribution network criteria. Selection criteria of the REFIT indicates that developers are responsible for funding their own grid connections, but performance obligation is less clear given the fact that the system operator determines connection costs. We would query whether Eskom has the spare resources to review and approve multiple applications and build multiple, parallel grid connections and strengthen the wider regional grids in parallel to its own network expansion activities. What are the implications for the procurement process if Eskom cannot build the requested connections?” asks Eardley-Taylor. Eardley-Taylor concludes by quoting former US Secretary of Defence, Donald Rumsfeld. “Rumsfeld came up with a fabulous phrase about the known knowns, the known unknowns and the unknown unknowns following the US invasion of Iraq. The known knowns of the REFIT are the tariffs, selection criteria (nearly) and the location of optimal wind and solar resources. The known unknowns are the IRP2 increase in MW, the PPA and credit support provisions as well as the tendering process. The unknown unknowns remains the impact of Eskom developments, for example these impacts on grid connections. The REFIT is 80% complete and once this is in full operation and South Africa has an IRP for the next 20 years, we will be able to unlock the full potential of the country’s renewable energy solutions.” Standard Bank Paul Eardley-Taylor Tel: +27 11 636 3229 Fax: +27 11 636 0631 E-mail:

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Nuclear-1: South Africa’s


anticipated nuclear power station According to Eskom, South Africa’s increasing electricity demand is in excess of 4% annually and the utility has estimated that over 40 000 Megawatts (MW) of new electricity generating capacity will be needed over the next 20 years. Eskom is investigating the feasibility of generating half of this needed electricity demand (20 000 MW) with nuclear power.


he Draft Environmental Impact Report for Nuclear-1, Eskom’s proposed nuclear power station, was made available for public review on 8 March 2010. Three sitesa are considered for the Nuclear-1 project, namely Thyspunt (Eastern Cape), Bantamsklip (Western Cape) and Duynefontein (next to the existing Koeberg nuclear plant in Cape Town) are being investigated to assess their environmental suitability for new nuclear plants. About Nuclear-1 Eskom appointed Arcus GIBB (Pty) Ltd as independent environmental assessment practitioners (EAPs) to undertake the environmental Impact assessment (EIA). Pressurised water reactor (PWR) technology, which has been used at the Koeberg Nuclear Power Station for the past 25 years, was chosen for Nuclear-1. This technology uses water as a coolant and moderator, but detailed descriptions of the plant are not available “as a preferred supplier has not been selected”. According to the report, Eskom chose PWR technology due to the operational simplicity and rugged design, availability, reduced possibility of core melt accidents, minimal effect on the environment, optimal fuel use and minimal waste output. “Nuclear energy is inherently dangerous and PWR plants have had accidents before, though not necessarily on the scale of Chernobyl. They are costly, require massive state support and often produce less than was promised,” says Tristen Taylor, Energy Policy Officer at Earthlife.


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The Koeberg plant in Cape Town was built by Framatome (now Areva) and commissioned in 1984-85, it is owned and operated by Eskom and has twin 900 MWe pressurised water reactors (PWR) the same as those providing most of France’s electricity ( The EIA estimates that the total area required for Nuclear-1 (4 000 MW) is 31 hectares and the proposed power station will include nuclear reactors and its auxiliaries such as turbine halls, spent fuel and nuclear fuel storage facilities, waste handling facilities, a desalinisation plant, transmission and distribution lines, roads, intake and outfall structures required to obtain/release water used to cool the process, the high voltage yard, and any other auxiliary service infrastructure. According to Mike Kantey, National Chairperson of the Coalition Against Nuclear Energy (CANE), any technology is subject to human error and therefore the threat of accidents. “Unlike airplanes and motor cars, however, a nuclear power plant accident will be catastrophic in scale. As far as routine emissions are concerned, Environmental Survey Laboratory reports sent to the National Nuclear Regulator by Eskom from Koeberg Nuclear Power Station show constant emissions of carcinogenic Cesium-137, with the highest amount of over 40-billion Bequerels per annum in 2001. For some strange reason (possibly to allay public fears) this has allegedly been reduced to below 40 000 Bq/a in Appendix B of the Air Quality Report,” says Kantey. Kantey says the fact that the report fails to identify a specific technology is one of the principle errors. “It’s like offering somebody a brand new car that has

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never been built anywhere and has never been test-driven. You do not know what it is until after it has been built. In the meantime, we are expected to sign off on a vague report that is based on old technology and a power station that is yet to be built. We also have to hand over ZAR1.3-trillion plus interest on borrowings over 50 years and our electricity bills will go up immediately in order to start paying for this power station,” says Kantey. Taylor agrees that the EIA is flawed. “The EIA seems flawed on the fact that no supplier for the reactor design is included and that the alternatives are not fully explored. We are in the process of making a formal submission on the matter.”

Impact Reports and found holes big enough to drive a fleet of buses through,” says Kantey. “One of the so-called environmental problems from any nuclear power station is the longevity of the spent fuel, with another by-product Plutonium-239 having a half-life of 24 400 years. Taking seven cycles as a convenient measure for radioactive decay, you have to build a waste management facility to last over one million years.”

If the project is authorised, construction is anticipated to start in 2011 with the commissioning of the first unit in 2018. According to the National Nuclear Regulatory Act, Eskom has to submit a formal application to the National Nuclear Regulator (NNR) for a nuclear installation license for the siting, construction, operation, decontamination and decommissioning of the proposed nuclear power station. This act makes provision for the NNR board to arrange for public hearings pertaining to health, safety and environmental issues. Risks and assessments According to the report, there is a low geological risk and no disqualifiers for either of the three site alternative sites and surrounding environment, but Thyspunt remains the preferred site for Nuclear-1. The technical specialists found that the overall positive macro-economic impacts would be greatest at Bantamskip and Duynefontein and less at Thyspunt, because the first two sites are situated in a province with a more diversified and larger economy. The cost-effectiveness analysis, however, shows that Thyspunt was a slightly better option.

According to the report, the most significant impact on marine biology would be caused by offshore disposal of sediment and the release of warmed cooling water and the report says that the potential impact “will have a highly significant long-term negative effect on the marine environment” for all three sites.

Apart from CANE, an umbrella body for organisations and individuals throughout the country, there are three regional organisations opposing Nuclear-1 at each site: the Koeberg Alert Alliance (a group on social networking site Facebook); the Save Bantamsklip Campaign (www.; and the newly formed Thyspunt Alliance.

Perceived risks associated with nuclear incidents are seen as the most controversial potential impact because they “could lead to a change in attitude which, in turn, could change behaviour. It is therefore important to ensure a reliable flow of relevant and correct information in order for communities to differentiate between perceived and real risks”.

Kantey believes that none of the three sites are environmentally suitable for nuclear power stations and that the Draft Environmental Impact Report shows conflicting data.

“The differences between the alternative sites are slight, and all the sites would have large positive economic impacts both on the local area and the province in which they are situated,” reads the report.

“All of the organisations opposing the project have done extensive, independent, and scientifically based interrogations of the Draft Environmental

Kantey says that CANE would like nuclear power to be replaced with renewable energy solutions in South Africa’s second integrated resource plan (IRP2). “We’d like to see nuclear power taken right out and replaced with an investment in energy efficiency, phase-out of coal-fired plants over 10 years, and a massive investment in Concentrated Solar Power (Northern Cape), wind power (est. 10 000 MW), wave energy (Cape Columbine to Cape Agulhas), and micro-hydro. We’d also like to see a boost to thin-film solar and solar water heaters,” says Kantey.

The three proposed locations for nuclear power stations include: Duynefontein: adjacent and to the north of the existing Koeberg Nuclear Power Station on the Cape West Coast, approximately 35 km north of Cape Town. The site falls within the existing Eskom-owned property. Bantamsklip: situated mid-way between Danger and Quoin Points along the Southern Cape coast. The site is part of the total Bantamsklip property and it’s utilised for flower harvesting, fishing and illegal harvesting of abalone. Thyspunt: situated between Oyster Bay and St.Francis Bay on the Eastern Cape coast. The site for proposed for Nuclear-1 is currently vacant, but there are a number of houses on the adjacent properties, outside the proposed nuclear power station’s location.

The current application is only for one nuclear power station, but the assessment confirms that all three sites are suitable locations for nuclear power stations. “Although there are obvious differences between the significance of the impacts of the three alternative sites, all specialists agreed that there are no fatal flaws at any of the sites (provided appropriate mitigation is implemented) and that all three alternative sites are suitable for development of a nuclear power station in time, given sufficient mitigation of impacts.” Sources: and

25 o in A f rica


nu clear energ y

Localisation opportunities for South Africa’s

nuclear industry Eskom, South Africa’s principal electricity generation company, plans a new building programme over the next 20 years to meet the increasing demand of power. The country is expecting the second version of the Integrated Resource Plan (IRP2), which will determine the country’s energy mix and plan for the next 20 years, by the end of September.


t a nuclear forum in Pretoria in May, South African Department of Energy Director General Nelisiwe Magubane said that nuclear and renewable energy will play a part in South Africa’s future energy mix, but it will be challenging to rebuild the nuclear industry which was dormant for 30 years. “Nuclear energy is continuously being linked to big price-tags and environmental and historical disasters. We need the nuclear industry to provide more information and assist government in forming a greater understanding of nuclear power to the general public,” said Magubane. Players in the nuclear field During a presentation at the World Nuclear Association in London two years ago, Rob Adam, CEO of NECSA, said that the suppliers for the major portion of the nuclear new building programme have been narrowed down to Areva


25 o i n Africa

(EPR) and Westinghouse (AP1000). At the nuclear forum in May 2010, both companies presented their technologies and demonstrated what each new nuclear build would mean for South Africa. According to Dr Yves Guenon, Business Director at Areva, nuclear energy in general and Areva’s EPR in particular provides a very favorable business case for the country. “Energy, the world over, is getting increasingly expensive as aggregate global demand for energy rise, we are also witnessing a deepening commitment to finding cleaner energy with lower carbon emissions. Against this background, nuclear energy is increasingly attractive; nuclear power stations have a longer life span (60 years) compared to coal-fired stations (40 years), they have a lower carbon emissions in comparison to other base-load energy sources.

n uc l ear energ y

Compared to the more intermittent classic renewables, nuclear is a cheaper and more reliable source of electricity. Solar and wind are not only expensive, but the irregular nature of their provision means that the capacity factor ranges from providing electricity between 20 – 30% of the time, while nuclear can provide base-load 90% of the time,” says Guenon. “A nuclear industry will boost South Africa’s growth at times of economic downturn, create thousands of jobs and develop a vibrant, home-grown hightech industrial and research capacity,” says Guenon. Localisation a key issue “There are over 20 Evolutionary Pressure Reactors (EPR) projects under development worldwide. The South African government is considering a fleet approach in the IRP2. The country wants approximately 11 500 MWe by 2019 and 21 000 MWe by 2035. A key opportunity for South Africa will be localisation, which would result in the development of a domestic nuclear industry, create opportunities for South African industry in the nuclear supply chain locally, and ensure the country’s access to the global nuclear export markets,” says Guenon. Bultie Nel, CEO of Westinghouse South Africa, agrees that becoming selfreliant should be one of the foremost goals when building a thriving nuclear industry. “Westinghouse, for example, has given 15,000 people in 15 countries the skills and technical know-how they need. South Korea is one of the countries that we have helped become 95% self-reliant in terms of nuclear power generation,” says Nel. Nuclear not more expensive in South Africa Guenon says that the cost of nuclear energy in South Africa is not more expensive than what similar nuclear projects in European countries would cost. “Areva is committed to developing the local nuclear industry to globally competitive levels. Currently, the price of nuclear energy in South Africa is comparable to the cost of nuclear in Europe. The key to lowering nuclear costs further will be to develop a home-grown nuclear industry in South Africa,” said Guenon before explaining that South Africa would not fully benefit from their own nuclear industry if the country does not invest in its own industry and people. Guenon explained that Areva would be fully committed to contributing to the development of South Africa’s nuclear industry by facilitating partnerships between the country’s preferred suppliers and local manufacturers in South Africa. “Areva will support the local industry in the qualification process – from manufacturing to nuclear specifications,” said Guenon. Skills development and transfer According to Guenon, over 77 000 South Africans will be trained for a South African nuclear fleet of 20 000 MWe. “Developing nuclear energy in South Africa would result in the creation of thousands of direct jobs (70 000) and indirect jobs (more than 300 000), both during the stages of building and subsequently operating nuclear power plants. Engineers (6 000), technicians (18 000), artisans (53 000) and a whole range of workers would be needed for such a project. This is a big opportunity for skills development for South Africa,” says Guenon.

Adam said that skills development is probably the most important aspect underpinning the success of South Africa’s cluster. Equipment opportunities “A nuclear reactor can provide clean electricity during the next 60 years. When South Africa has a nuclear industry, a lot of things can be done, but if you don’t have a decision you have to wait.” Nell adds that once a decision is made, the process can be put into place. “Nuclear plants take time. Westinghouse currently has four units under construction in China. The contracts were signed in 2007, the groundbreaking happened in 2008 and the fourth plant will be in operation by 2015,” says Nel when explaining the benefits of Westinghouse’s modularised AP1000 reactor. “More than 80% of the AP1000 design is classified as ‘passive safety’, which means that local suppliers can be used. With these nuclear reactors, it is typical for 50% of the equipment as well as most of the construction to be localised. Equipment alone represents more than half of the cost of the plant, which would mean a lot for equipment opportunities in South Africa,” says Nel. “A good decision is one that makes a compromise between the cost of a facility and jobs. It is very easy to not create jobs in the country, but it is more difficult and challenging to create jobs in the country. There is more of a risk when it comes to creating jobs because a nuclear company receives fines and penalties if they are late with a nuclear plant, but this is the sustainable way of building a nuclear industry. AREVA has a proven, efficient process in Korea and China. We transfer the know-how and ensure that countries build their own nuclear industry,” concludes Guenon. For more information, visit, and to which full acknowledgement and thanks are given. 25 o in A f rica


green transport

Green transport in South Africa

South Africa spends ZAR18,5-billion a year on the imports of petroleum products. Although a new refinery, proposed by PetroSA, will help to counteract the negative impact of imported oil products, the situation is expected to worsen as the global shortage of liquid fuel products continues.


he transport fuel market represents 53% of world refinery product demand and this number is increasing,” says Nosisa Garane, corporate communications officer at Saneri’s (South African National Energy Research Institute) Green Transport Centre in Gauteng. “There are sufficient oil resources in place to ensure liquid fuel products up until 2030. After this year there is a lot of uncertainty,” says Garane. Environmental impact Motor vehicles in South Africa’s major cities such as Johannesburg, Durban and Cape Town are the single largest contributor to air pollution in the country’s urban areas. Toxics from this form of air pollution, such as particulates (PM10), frequently exceed the World Bank limit of 50 µg/m3. According to Jane Akumu from the Urban Environment Unit at UNEP (United Nations Environment Programme), air pollution kills 2 000 children annually in South Africa and PM10 is the main pollution problem (www.unep. org). “The EPA (Environmental Protection Agency) estimates that cars, trucks and buses account for approximately half of all cancers attributed to outdoor air sources of toxics,” says Garane. The Green Transport Centre, which is located right next to the highway between Pretoria and Johannesburg, has set up a one-stop facility for information sharing, technology development, technology demonstration related to the use and testing of alternative fuels and vehicles. The centre aims to promote green transport technologies, such as compressed natural gas powered cars, electric vehicles powered bysolar charging carport and off-peak grid chargers, biodiesel/bioethanol powered cars and Liquefied Petroleum Gas powered vehicles.

“We facilitate partnerships and access to local funding and international donors for green transport projects. We are an agent of change pioneering the introduction of alternative fuels in the country,” says Garane. The ground floor of the centre displays a range of vehicles powered by alternative fuels and the associated conversion components. Entrepreneurs, consultants and staff who have an interest in alternative fuels and vehicles work with universities and partners to continue developing green transport solutions. The second floor of the centre is dedicated to training and education in green technologies. What’s happening in the green transport industry? There is a variety of green transport projects currently underway in South Africa. One of these projects is the CNG station in Langlaagte, that can compress natural gas and transport to industrial customers and filling stations with no access to the natural gas pipeline and provides filling facilities for vehicles to utilise CNG as an alternative fuel; which was completed in May and has a 1,5-million gigajoule capacity. “The CNG Group of Companies plans to roll out the use of CNG in South Africa and the government will be involved through their support in Saneri,” says Stephen Rothman, Managing Director of the CNG group. Galileo, a company that has been involved in CNG projects globally, supplied the technology for the projects. Rothman explains that CNG is extremely safe and the equipment used is of the highest quality available in the CNG market. “The Galileo compression system, for example, has a sniffer that picks up gas leaks, vibration sensor and built in fire extinguishers. If any leak or vibration is detected, the system will automatically shut down,” says Rothman.

Challenges in the green transport market • • • • •


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Availability of reliable data which could be used for making alternative fuel choices. Insufficient government long-term alternative energy plans from a transport perspective. Too small, uncoordinated alternative fuel projects (these projects are mainly funded by the private sector and universities at present). Non-existence of programmes aimed at creating public awareness regarding alternative fuels. Lack of funding for large demonstration projects.

green transp ort

“The use of CNG could result in a 75% reduction of particulate matter if busses are run like the Volkswagen/MAN bus which has the ability to run on natural gas and diesel simultaneously, and will offer cost reductions of between 20% and 30%, depending on the fuel source substituted,” says Rothman. Some of the equipment used on site includes a Microbox Compressor (1 800 – 2 200 m3/hr output at 250 bar, depending on inlet pressure), dispensers (for fuelling vehicles), MAT Modules (for transporting natural gas to sites via road) and a Nanobox Compressor, including a dispenser. Dr Titus Mathe, green transport programme manager at Saneri, says that the organisation is supporting a number of CNG projects. “South Africa needs to start using alternative fuels now,” says Mathe. Mathe recently converted his personal vehicle, a Mercedes-Benz C200, to run on CNG gas. He currently fills his car at the Langlaagte station and he is compiling data for a report on CNG fuel usage. Mathe has the ability to switch between using petrol or natural gas with the push of a button. Mathe explained that his car’s conversion to CNG costs approximately ZAR12 000 and the maintenance life cycle doubles from that of a petrol vehicle. “If you have to service your petrol vehicle every 10 000 km, a conversion to CNG means that it will need to be serviced every 20 000 km,” said Mathe. Garane adds that the Green Transport Centre has already assisted five taxis, four government fleet vehicles and a number of private vehicles in switching to CNG gas. The centre also supports a CNG bus demonstration project. A second mother station will be established with an alternative source of methane supply to Gauteng, followed by further mother and filling station distribution networks in Gauteng, Mpumalanga and KwaZulu-Natal ( Liquified petroleum gas Liquified petroleum gas (LPG) is a low carbon emitting hydrocarbon fuel used as an alternative transportation fuel in vehicles. LPG is a mixture of hydrocarbon gasses, primarily a mixture of propane and butane and is produced as a by-product during the extraction and refining stages of crude oil and natural gas. At normal temperatures and pressures, LPG will evaporate ( Sasol has recently entered the alternative vehicle fuel market with an LPG gas offering called Sasol autogas which is currently available at a Sasol-branded LPG gas station in Isando (Johannesburg) South Africa. The company intends to open another LPG gas station in the Randburg area in the near future. As Sasol autogas is still in a pilot, there is a criteria that has been set relating to environmental impact compliance and once the criteria is fully met, Sasol will look into making sasol autogas available at many more sites within its retail network. Sasol is not involved in the convertion of petrol vehicles to gas powered engines but has identified credible suppliers which they will recommend to potential customers as the need arises. CMH Fleet Solutions, the fleet division of Combined Motor Holdings, converts petrol vehicles to LPG. “The cars that we have converted are duel

fuel vehicles. When the engine starts, it runs on petrol and after a certain temperature is achieved, it runs on 100% LPG,” says Robbie Henderson, sales manager at CMH Fleet Solutions. “You can achieve cost savings of between 15 – 20% when comparing LPG to petrol and vehicles that run on LPG are more environmentally friendly because CO2 emissions are cut by approximately 10%,” says Henderson. In South Africa, LPG gas is linked to the price of petrol due to the fact that LPG is a byproduct of the refining process. LPG consumers also vary across the spectrum from industrial and farmers to hotels, restaurants and houses that operate appliances such as heaters, geysers and refrigeration. Vusi Cwane, Sasol Oil’s General Manager Sales and Marketing, says that the use of LPG is already widespread overseas and he expects that consumers switching to LPG in South Africa will continue to increase. “I believe that within five to ten years, LPG vehicles will be common in South Africa,” says Cwane. “Sasol’s shortterm plan is to install 10 LPG stations within 24 months. There are currently more than 400 Sasol service stations in South Africa and our goal is to have LPG available at approximately 60% of these sites within the next ten years,” continued Cwane before explaining that installing LPG at existing petrol stations requires complying with many specifications and not all sites are able to incorporate this type of installation.

Advantages of using LPG over conventional fossil fuels • • • • • • •

LPG has higher efficiency, resulting in a high proportion of the fuel converted into energy. It has stable chemical composition that results in a longer shelf life. It is a non-toxic fuel that vaporises when released from pressurised conditions so it poses no risk to water or soil resources. LPG has one-third less reactive organic gasses than petrol. Likely better emissions durability than that of gasoline engines LPG emissions should not increase as dramatically with the engine wear and deposit build-up. Saving on theft of petrol, estimated between 10% - 15%. Lower calorific value and a very high flashpoint than most alternative fuels, which makes it less flammable.


2 5 o in A f rica


green transport

manufacturers need to adjust their car’s warrantee so that vehicle engines can be converted to LPG, without the consumer losing the warrantee on their car,” commented Cwane. Electric vehicle production Electric vehicles use one or more electric motors for propulsion. Unlike an internal combustion engine (ICE) that is tuned to specifically operate with a particular fuel such as petrol or diesel, an electric drive vehicle needs electricity, which is stored in a pack of batteries or is produced onboard using a generator (in hybrid configurations). This flexibility allows the drive range of the vehicle to remain the same, while the fuel source can be varied. According to Saneri, the current electrical supply infrastructure has more than sufficient capacity to power and recharge electric vehicles without inducing any additional environmental burdens resulting from constant refuelling of petrol or diesel vehicles.

Advantages of CNG over conventional petroleum fuels: • • • •

Clean burning fuel, engines stay and run cleaner with less carbon deposits. CNG is lighter than air and will dissipate upwards, whereas petrol and diesel will sink and puddle. Lower calorific value than most alternative fuels, which makes it less flammable. CNG can be used in any existing petrol vehicles with a simple conversion kit fitted to run either on petrol or CNG, and modified diesel engines.

Benefits of running vehicles on CNG • • • •

Reduction in maintenance cost for vehicles – in the case of a dedicated CNG engine driven bus – service intervals move from 15 000 km to ± 50 000 km. Reduction on monthly fuel bill of between 20% – 30%. Saving on theft of diesel, estimated between 10% – 15%. Reduction on breakdown costs.

“The Green Transport Centre has a number of vehicles converted from petrol vehicles to electric. These were transfered, from Eskom. Another vehicle, a Corsa Light was convereted by a team at the University of Stellenbosch,” says Carel Snyman, a director at BSE Warehouse, who is currently working on various forms of electric vehicles with SANERI at the Green Transport Centre. “Electric cars are the most efficient type of vehicles. Electric cars are between 70% – 80% efficient, whereas petrol cars are between 15% – 20% efficient and diesel cars can reach up to 25% efficiency,” says Snyman. He explains that the energy contained in oil gets lost during its conversion to and use of petrol, leaving a petrol car user with approximately 12% of energy converted into kilometres, compared to the energy of the oil, after the oil is taken out of the ground. “In South Africa, we also use coal to convert oil into petrol, which was strategically important for the country. However, this process leaves you with only 4% efficiency in conventional cars that use petrol. Electric vehicles aren’t new in this country and development of these vehicles started back in the 1970s, when the first oil crisis hit the world. Important technological developments, such as lithium iron technologies and sodium nickel chloride battery technologies, were developed at the CSIR (Council for Scientific and Industrial Research),” says Snyman.

Source: and

“Over 90% of all LPG installations are above the ground. There are very stringent regulations about how far the installation can be from the convenience store and petrol pumps, for example, so Sasol is investigating various site-specific circumstances to determine where LPG installations are viable,” said Cwane. According to Cwane, Sasol produces LPG at its Secunda plant. “At present, we don’t have extra LPG lying around – we are selling every drop,” says Cwane. Sasol is currently converting its own fleet of vehicles to LPG engines. Cwane further said that there are currently two challenges hindering the widespread use of LPG in South Africa. “People need to be convinced that LPG is safe to use and local car


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Snyman headed the electric vehicle programme at South Africa’s state-owned power utility, Eskom, before the programme was cut due to a lack of funding in 2002. Snyman and his business partner, Winstone Jordaan, are currently working on an electric concept car in a start-up company called GridCars. “Electric cars don’t need the same maintenance because no water, oil and tuning is needed. The batteries of a car I used for seven years had a range of 80 km in the nineties and the technology continues to improve,” says Snyman. In conclusion, Garane emphasised that the need to move to more environmentally friendly fuels has never been so urgent. “The Green Transport Initiative will continue to promote alternative fuels in the transport sector and share knowledge and technological developments. There are a lot of projects and a lot of research is done behind the scenes to further environmentally friendly transport initiatives in the country and the role of the centre is to coordinate these initiatives,” concluded Garane.

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green transport

car tax implications E

xhaust-related emissions of vehicles in South Africa have many people asking what the country is doing in terms of adopting environmentallyfriendly policies and strategies in the transport sector. Deon du Preez, Managing Director of DisPro Tech, says that an analysis of government’s published thinking on the issue proves that pollution from cars is being taken seriously and that a holistic approach by the relevant government bodies is being propagated. Polluter pays principle Section 28 of the NEMA (National Environmental Management Act) requires that every person causing significant pollution or degradation of the environment needs to take reasonable measures to prevent it from occurring, continuing or recurring. This provision articulates the so-called “polluter pays” principle which has been globally accepted in progressive jurisdictions and codified in the NEMA (

“A car tax for CO2 emissions is being implemented. The days where industries could keep on emitting and where people do not have to consider the consequences of pollution are over. If vehicle emissions aren’t monitored, there will be no control over this type of pollution. We need to work together to convert to cleaner energy and transport solutions,” says Du Preez. Finance Minister Pravin Gordhan announced that a CO2 emissions tax on

new cars will be implemented from 1 September this year. “This means that South Africa has to systematically reduce and limit the amount of greenhouse gasses it releases into the atmosphere,” says Scana Tholo, a partner at DisPro Tech. “The issue of setting and testing vehicle emission standards will be one of the major measures that South Africa will need to introduce in order for the country to meet its international commitments. An independent third party needs to be appointed to measure each vehicle’s CO2 emissions and license the vehicle accordingly,” explains Tholo before adding that he has discussed these thoughts and comments with the Department of Transport. Although there are a few technologies to reduce fuel usage and CO2 emissions (as well as measure the amount of CO2 emissions from vehicles), Du Preez believes that few of these measures will be implemented until policies are legally implemented and emissions can be independently quantified. DisPro Tech has developed a machine that will be used to test the emissions of car vehicles and heavy machinery. The company is currently working with industry leaders, government and other local partners to develop a management system that will ensure fair testing of CO2 emissions from vehicles. Du Preez believes that South Africa will be able to achieve a 2 – 3% reduction in CO2 levels by implementing the CO2 tax on cars. “This is cutting-edge technology and we are continuing to widen our resource base in terms of barter contracts and partners. We are also looking into providing long-term contracts to clients who are interested in measuring their CO2 emissions in order to ensure they adhere to regulations. Companies are welcome to contact us for further information regarding these matters,” says Du Preez before adding that all private client information is kept strictly confidential. “The new Air Quality Act was implemented in April this year and there are many local initiatives and programs that are going to force a range of sectors to measure their CO2 emissions and who will be liable for fines if they do not adhere to the rules. One of the first sectors who will be feeling the pinch is the transport industry,” says Du Preez. Du Preez explains that internationally there are a number of interesting initiatives and strategies to deal with vehicle-related emissions. “I’ve had the privilege of being involved with the Clean Air Initiative of Asian cities, which was a public-private partnership between NGOs and governments to encourage information sharing and support on how to best cope with vehicle emissions in Asian cities and countries,” says Du Preez before adding that a conference is held on an annual basis to exchange experience and build competence in this relatively new industry. DisPro Tech – Emissions Tel: +27 13 245 3319 Fax: +27 86 571 7214 E-mail:;


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e l e c tri c it y

Eskom’s pricing scheme for BHP Billiton changes


skom’s long term Negotiated Pricing Agreements (NPAs) for the supply of power to BHP Billiton’s Mozal smelter in Mozambique and their Hillside and Bayside smelters in South Africa is in the process of being amended. The new pricing path will not be linked to commodity pricing and foreign currency. “This is a historic step in the right direction for Eskom and the country. These agreements were concluded in a period of excess capacity and changes in the current environment have required that we adopt a different approach,” said Eskom’s Interim Executive Chairman, Mpho Makwana. The agreement will require approval by the National Energy Regulator of South Africa (NERSA). “Eskom commended the commitment of BHP Billiton to willingly engage in discussions to find a mutually beneficial solution for both parties and for South Africa. Eskom is confident that the final agreements will be signed by the third quarter of this year,” concluded Makwana. For more information, visit, to which full acknowledgement and thanks are given.

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25 o in A f rica


electri cit y

Key decisions Eskom has to make in 2010 “S

outh Africa needs to create 50 GW of new electricity capacity by 2028, requiring a faster building rate than ever before. 2010 is a very important year in terms of ensuring energy security in South Africa,” said Kannan Lakmeeharan, managing director of the System Operations and Planning Division of Eskom at an event hosted by the South African National Energy Association (SANEA). “If South Africa wants to ensure long-term electricity supply until 2028, key decisions have to be taken in this defining year.” The System Operations and Planning Division of Eskom is responsible for the real-time security of the national power system and the long-term electricity capacity and transmission grid planning for the country. According to Eskom, South Africa’s 50 GW of new electricity capacity by 2028 means that the country will need more than double the current requirements (this amount assumes decommissioning of 10 GW of existing capacity). Declining reserve margin “A reserve margin gives you a broad indication of the reliability of a power system. This reliability consists of an indication of the medium to long-term adequacy and short-term security of the power system,” says Lakmeeharan. Over the last 10 years the reserve margin in South Africa has been steadily declining due to increasing demand and limited generation capacity being added on. “There is a direct correlation between the declining reserve margin and the increase in load factor and plant unavailability. This also puts pressure

on coal stockpiles,” says Lakmeeharan. “A reserve margin allows space for growth and it should ideally be in a high range due to varying capabilities of different systems.” According to Rob Adam, CEO of the South African Nuclear Energy Corporation (Necsa), the reserve electricity supply margin in South Africa has declined from about 40% in 1988 to 25% in 2001 to a current 8 – 10%. “A minimum margin to prevent regular load-shedding as a result of maintenance and fuel supply fluctuations is considered to be 15%,” says Adam. According to KEMA, a global authority in energy consulting, testing and certification, an operating reserve level of 4% – 6% should be maintained for immediate system security, if necessary, by curtailing customer load in some manner. Eskom acknowledges that below a 12% reserve margin, the ability to operate the grid securely is compromised. “South Africa’s reserve margin aspiration has always been between 15 – 19%,” says Lakmeeharan. There was a hard economic realization when the country felt the result of under-investment (despite warnings of a looming electricity crisis). Ian McRae, former CEO of Eskom, said that decisions about future actions to ensure electricity security and a healthy reserve margin should have been made many years ago. “In the past two decades, South Africa had a surplus of energy needs, which may have contributed to the lack of making decisions,” says McRae. “We are now threatened by blackouts, threats to the mining industry and the country’s commerce. In the previous Eskom regime there was no misunderstanding about where the leadership and accountability to take actions would lay. In my opinion, Eskom would have been on board if it wasn’t for the White Paper Policy of 1998,” continues McRae.

Overview of the South African Power System (end of 2009) Supply Side Overview

Demand Side Overview

• • • •

• 29% of South Africa’s energy demand provided by electricity • Forecast of about 37.2GW peak demand in 2010 and over 227TWhrs of energy demand. • Largest 138 industrial customers consume nearly 40% of the energy. • Largest 40 000 customers consume nearly 75% of the energy. • Approximately 8-million residential customers consume about 20 to 25% of the energy.

27 Operational 27 power stations. 40.7GW of Eskom operational capacity. Just over 80% coal-fired. Mix of nuclear, open cycle gas turbines, hydro and pumped storage plant in remaining 20%. • Imports of about 1500MW. • Returning two mothballed coal-fired stations, building two coal-fired and a pump storage station. • Total operational country capacity of ~43.5GW.


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e l e c tri c it y


Where we are

Ideal status

Energy Policy and an Integrated Resource Plan

Energy White Paper of 1998. • Renewable Energy policy with targets to 2013. • Integrated Resource Plan up to 2013.

Coherent energy policy covering energy diversity, energy efficiency, nuclear, renewable energy and regional development. Eskom believes this should align to country objectives over a 50 year period. • 20 year IRP with clear options for IPPs identified. • Transparent process to govern policy making and planning.

Cost Recovery Mechanism

NERSA Board approved CRM rules in November 2008. • Provides support for the buyer of energy through PPAs but has conditions on re-opening tariff requirements.

CRM should be more flexible on reopeners. • A buffer should be built up in the regulatory account for IPPs to prevent sharp price increases and to support the buyer.

Risk Allocation

Several issues are unresolved – interest rate and inflation risk, financing risk, foreign currency risk, credit risk and regulatory risk. • Particularly relevant to the large IPP projects.

Risk should be allocated to where control of the risks is strongest. • Minimise socialised risk to the consumers.

Government Guarantees

Only support for Eskom = ZAR176-billion. • No specific guarantees for PPAs.

Appropriate level of guarantees for Eskom and the designated single buyer reflecting agreed upon risk allocation. • Benefits of private capital must be realised through reducing Government’s contingent liabilities.

Tariff path

NERSA MYPD2 tariff determination does make specific provision for PPA costs associated with MTPPP and REFIT Phase 1. • Current tariff does not support sustainable industry.

Tariff determination clearly separates revenues allowable for PPA costs and revenues allowable for Eskom’s costs. • Tariff path and methodology clearly caters for the costs of IPPs and enables a sustainable industry. This must align to the IRP.

Regulatory Environment

Currently structured on the basis of Eskom as the single buyer and system operator.

Effective procurement and dispatch rules: • Governance framework aligned to accountability and promoting transparency. • Dynamic licensing regime.

“The ESI could have been significantly restructured, Eskom generation would have been unbundled into a number of competing co-power generators and a state-owned independent system operator would have been aligned with a number of Independent power producers – in other words a power pool. A great policy was put on the table 12 years ago and if it was implemented, the country would have been much further ahead. The accountability for providing new capacity and cost-effective diversity has now shifted from Eskom to Government,” says McRae. “What Government might have failed to realise in the early part of this decade, is that IPPs may not be excited about investing in the South African energy industry if they do not restructure this system. IPPs are essential to prevent future shortages and blackouts. We need an independent system operator and an independent regulator,” says McRae. Regarding the current IPP programme status, Lakmeeharan says that in the next five years South Africa has the following options: • Medium-term power purchase programme and further co-generation opportunities. • Renewable energy feed-in tariff programme. • Department of Energy Open Cycle Gas Turbine IPP programme. • Regional import options – There are options that could be commissioned in the next 5 years. They could act as a back-up to the current build programme or play a role as the next base-load capacity option in IRP2. • Municipal generation - The current IRP assumes a certain level of municipal generation. The availability of these generators in the next 3 years is important for security of supply. • Multi-site base load IPP programme.

What South Africa needs to do this year In the scenario where the most likely risks realise, there will be two periods in the next 20 years when the risk of supply interruptions significantly increases in South Africa: from 2011-2013, and then again from 2018-2024. Lakmeeharan explains that in order to ensure electricity during the vulnerable time periods, as well as 50GW of new electricity capacity by 2028, these are the urgent actions now required to secure supply in four time periods: Impact in 2010 – 2013: South Africa and Eskom needs to ensure Demand Side Management (DSM) success, enable signing of critical Power Purchase Agreements (PPAs) and enable a Power Conservation Programme (PCP). Impact in 2014 – 2017: Pursue import options as back-up. Impact in 2018 – 2020: Decide which option to commit to (imports, gas, coal, further DSM, renewables) and what the back-up power options should be. Impact in 2021 onwards: Define the long-term base-load option, including the role of life extension of the country’s existing coal fleet. “There is a plan of action beyond 2010 for security of supply, but it requires the collaboration of all the stakeholders in the electricity supply industry to ensure its successful implementation,” concludes Lakmeeharan. For more information, visit or, to which full acknowledgement and thanks are given. (All presentations are published on: 25 o in A f rica



h it w te a v o n in d n a te a Cre Eskom’s Energy Efficient Lighting

Design Competition Energy Efficient Lighting Design Competition –

to be won

Eskom is calling all electrical engineers, electricians and technicians and any other inventive spirits with creative flair to take part in this year’s Energy Efficient Lighting Design Competition. The cause is a worthy one, the challenge is refreshingly different and the incentive (prize money of R200 000) makes it well worth the effort. Scientists estimate that the human brain produces about 20 watts of electricity. Although that’s not enough to power the traditional light bulb, it can do the trick for the average energy efficient luminaire which, at 20 watts, has the ability to equal the performance of its 100-watt incandescent counterpart. For the purpose of Eskom’s Energy Efficient Lighting Design Competition, participants are invited to harness their brain power for a different purpose altogether.

Students and professional designers are invited to think outside the box and design (and build) imaginative lamp prototypes that are functional and pleasing to the eye by using energy efficient light sources.

Two fold competition for students and professionals Eskom is inviting both students and professional designers to think outside the box and design (and build) imaginative lamp prototypes that not only work, but that are also aesthetically pleasing. All designers need to make use of energy efficient light sources for their projects. Professional designers are also invited to submit innovative energy efficient designs, systems or products that are suitable for residential applications. These may include, for example, a complete lighting system that caters for a low-cost housing development.

Eskom Energy Efficiency Lighting Design Competition Tel: +27 12 997 1334 E-mail: Website:


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Remember, the key word is energy-efficiency and the closing date for entries is 30 July 2010. For more information, visit


Government-endorsed Energy Barometer benchmarks commercial and industrial energy savings


he energy-saving efforts of commercial and industrial sector businesses were commended for their commitment towards energy efficiency at the Energy Cybernetics Energy Barometer public launch and awards dinner on 9 June in Fourways, Johannesburg. The Energy Barometer assists South African businesses to scientifically assess their energy consumption, compare it to national average energy efficiency benchmarks and then to improve on it by implementing energy optimisation projects. “Energy-efficiency solutions are paramount – South Africa’s economy is relatively small, but globally we rank among the top twenty countries in terms of greenhouse gas emissions,” says Energy Cybernetics managing director, Gustav Radloff. Some leading industry players have already demonstrated their commitment towards energy efficiency and their efforts were recognised at the Energy Cybernetics Energy Barometer awards dinner. South African-based mining group Exxaro, along with AngloGold Ashanti and Barloworld were awarded respectively the first, second and third places in the category for corporate head offices. “We run an energy and carbon management programme which includes a commitment to reducing energy consumption from a 2006 baseline by 10% by 2010, increasing energy-efficiency, promoting the use of sustainable and renewable energy, and promoting the use of clean technologies,” says Mike Hughes of Exxaro.

“The Energy Barometer does not merely recognise energy savings and category winners; rather, it encourages companies to become aware of their energy consumption levels,” says Radloff. Energy Cybernetics director, Prof LJ Grobler, explained that the Energy Barometer audit process is based upon state of the art normalisation and comparison techniques, on par with international standards. “We used an average of the normalised annual energy use of all the buildings that participated in the 2009 Energy Cybernetics survey to develop a benchmark or starting point for the Energy Barometer. Participants’ annual energy bills were normalised in relation to key parameters such as location, type of building, occupancy data and floor space. We then compared this participant benchmark to that of the industry average,” says Grobler. “A good rule-of-thumb is that an energy-saving of between 10% and 30% can be achieved by implementing measures that have a payback period of less than two years,” elaborates Radloff. The Energy Barometer receives national government’s, as well as the Central Energy Fund’s (CEF) full support. “We are proud to support this energy-saving tool and have a long working relationship with Energy Cybernetics through our division, the National Energy Efficiency Agency (NEEA),” comments CEF CEO, Barry Bredenkamp. For more information, visit

SANEA is a non-partisan and diverse energy association with international networks. “We are striving to make a significant contribution to promote a sustainable energy future for South Africa” – Brian A Statham, Chairman.

Please visit the SANEA website on:

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How Medupi will earn carbon credits for Eskom Eskom is undertaking a feasibility study to determine whether there is a potential for earning carbon credits for Medupi, the planned coal-fired power station in Limpopo, South Africa. Medupi will be emitting less greenhouse gasses compared to older coal-fired technology by using “supercritical coal technology” (clean coal).


ven with the US$3.75-billion World Bank loan, which Eskom will use to fund their long-term multi-year investment programme that is set to expand power generation capacity by about 50% (from 40 000 MW to 80 000 MW), the electricity provider is still struggling to pay for the cost of Medupi (which is estimated to cost ZAR120-billion). Under the United Nation’s (UN) Clean Development Mechanism (CDM) programme, registration for the CDM project does not provide for a cash injection, but Eskom will be able to earn carbon credits for the amount of CO2 emissions that are avoided due to new coal technologies being used and Eskom will then be able to sell these carbon credits for funds. Advanced coal-burning According to the World Coal Institute, advanced coal combustion technologies that improve the efficiency of coal-fired power generation reduce emissions of CO2 as well as pollutants such as NOx, SOx and particulates. “A one percentage point improvement in the efficiency of a conventional pulverised coal combustion plant results in a 2-3% reduction in CO2 emissions. Highly efficient modern coal plants emit almost 40% less CO2 than the average coal plant currently installed,” says the Institute. New pulverised coal combustion systems that use supercritical technology operate at increasingly higher temperatures and pressures, allowing them to achieve higher efficiencies than conventional units and significant CO2 reductions (World Coal Institute). Ciska Terblanche, MD of carbon market consultancy CDM Africa Climate Solutions and a member of the United Nation’s CDM methodology panel, was quoted saying Eskom registering the power plant to earn carbon credits may be met with controversy, but that there is a case for Eskom to investigate the feasibility of developing the project under CDM ( Mandy Rambharos, Climate Change and Sustainability Manager at Eskom, says that registering Medupi as a CDM project is receiving a lot of media attention, but the company assesses all their projects for CDM feasibility.


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“Eskom has a large project funnel that includes a variety of power generation options and all of them are assessed and researched to find out if they can qualify as CDM projects,” says Rambharos. “Earning carbon credits for a coal-fired power plant may sound controversial, but supercritical technology means that a lot of CO2 emissions will be avoided. The business-as-usual scenario is to employ subcritical technology.” China, along with the US, is one of the world’s largest energy consumers. China’s Guodian Beilun Ultra-Supercritical Power Station is the largest coalfired power station in the country and in 2007 the CDM Executive Board decided that supercritical coal-fired plants should be able to receive carbon credits. “China’s methodology for supercritical coal technology has been accepted, but there is no precedent for this type of CDM project yet,” explains Rambharos. “We are assessing the feasibility of registering Medupi for such a project. There is a string of criteria that has to be met before this can be done.”


Who’s funding the new building of coal plants? It appears that the controversial World Bank loan that was approved for South Africa’s coal-fired power plants will not become the norm in future. In May, the World Bank announced that they will not be financing coal-fired power plants in Pakistan, which face a severe energy crisis. “The limited financing available can more effectively be directed towards investment that will address the energy shortfalls in the near-term in an environmentally sustainable manner,” a World Bank spokesperson in Islamabad informed the media ( Pakistani industry officials are allegedly shocked by the World Bank’s decision not to finance a coal-fired power plant (called the Thar Coal Project) in the country due to the fact that Pakistan does not contribute a significant amount of carbon emissions. Khalid Monsoor, the CEO of Engro Energy, which leased a block at Thar, has pointed finger to the bank allocating a large sum of money to a similar project in South Africa, who contribute much more carbon emissions. “We are one of the least polluters. Our energy mix includes 33% of power generation from dams and another 33% from gas. There is a need for proper lobbying,” said Monsoor. According to, experts in Pakistan’s power industry are unanimous on the importance of using indigenous coal to generate electricity and they argue that this resource is the most cost-effective solution to the energy crisis. “There is still a role for coal, but we just can’t keep building coal-fired power plants like we used to, we continue to investigate better and more efficient ways of using coal” says Rambharos. “People ask why all developing countries can’t be like Brazil whose energy mix is about 80% hydro, but that country has water and South Africa doesn’t. South Africa has coal and we need to use this resource to overcome our energy crisis. Solving the country’s power crisis doesn’t mean looking at a single option – each type of energy resource has its place in our future power mix,” concludes Rambharos.

Proving additionality To be viable under CDM, project needs to prove “additionality”, which means that implementation of the supercritical technology would not be viable without CDM registration or that there exist other barriers to implementing the state-of-the-art technology compared to the conventional established technology. Establishing additionality avoids giving credits to projects that would have been built anyway and to ensure the project reduces emissions more than would have occurred in the absence of the project. “Another point of additionality requires that you must prove you are really doing the project for environmental reasons and it has been in the project’s building plan,” says Rambharos. “Kusile will also be using supercritical technology and if Medupi is successfully registered as a CDM project, Kusile will also be assessed for submission.”

According to Barbara Haya from the University of Berkeley, the fundamental flaw with the CDM is the need to prove the “additionality” of a project. “A project is ‘additional’ if it was only able to go forward because of the extra carbon credit income from the CDM. Any project registered under the CDM that would have been built anyway, without carbon credit income, allows an industrialised country to emit more than its targets, without causing any changes on the ground where the project is located. In reality, non-additional projects are going forward under the CDM on a large scale in an article entitled Trading in Fake Carbon Credits: Problems with the Clean Development Mechanism (CDM). “75% of all approved CDM projects were already up and running at the time they were approved. If carbon credit income were really essential for a project to go forward, then most CDM project developers would need to wait to make sure that their project had been successfully, approved by the CDM Board before beginning construction. However, as of 1 October 2008, 76% of all approved CDM projects had not only started construction, but were actually completed and up and running at the time they were registered as CDM projects,” says Haya. According to, Terblanche said that the application might be accepted on the basis that Medupi would be the first power station in South Africa to use this technology. Supercritical is becoming business-as-usual “How can they call Medupi ‘additional’ when it has already been contracted?” asks Richard Worthington, climate change manager at the World Wide Fund for Nature in South Africa. “The supercritical technology can’t be seen as additional if they were planning to use it from the beginning.” “Supercritical technology is not a prohibitively expensive or radically new technology that can only be built with help from the CDM. By 2004, half of all orders for coal-fired plants in China were for supercritical units. India’s first application for supercritical CERs will likely be for a massive 4 000 MW supercritical coal plant, slated to be one of the world’s top 50 greenhouse gas polluters,” says Haya. “The CDM would increase the cost-effectiveness of a BAU coal plant, instead of promoting long-term solutions like renewable energy.” In comments submitted to the CDM UNFCC website by Barbara Haya, China’s widespread use of supercritical technology was highlighted. “Ultrasupercritical is becoming business-as-usual in China because of China’s policies. Due to energy security and air quality concerns the Chinese government is promoting efficient coal and prohibiting inefficient coal. Concerning the common practice test, the fact that the two other ultrasupercritical plants on the East China Grid are applying for CDM the PDD proves very little other than the fact that developers are seeking additional revenue streams whenever possible,” says Haya. Rambharos says that there is a common misconception about revenue from carbon credits. “The revenue from CERs help, but it cannot fund the entire project and we will only be able to generate revenue after the project is built. Eskom can’t afford to build Medupi and that is why we needed the World Bank loan,” says Rambharos. Sources:,,,, www.pakitribune, 2 5 o in A f rica



Business perspectives on carbon pricing By Michael Goldblatt from PDG


his article is the third in a series looking at future carbon pricing in South Africa. An important aspect of the project is the dissemination of research and information and the stimulation of policy debate amongst key stakeholders, including the private sector. In this regard a workshop on carbon pricing aimed at the business community was held in late February 2010 in association with the National Business Initiative (NBI). The workshop was not a consultation process and was structured as a panel discussion to present divergent views on policy options and to stimulate thought and debate. This article draws out considerations and issues of concern for South African business within the carbon pricing debate based on the workshop discussion and on other views on carbon pricing expressed by the business sector. Carbon pricing is necessary but not sufficient There appears to be common cause within the private sector that some form of economic instrument which creates a carbon price in the economy is a necessary component of an effective climate change strategy for the country. There appears to be similar consensus, however, that such an instrument can only be one element of the climate response and that it needs to be supported by a range of complementary measures to “de-carbonise” energy generation and to support producers and consumers in making choices to pursue lower carbon options. Regulatory design – the devil is in the details From a business perspective, design details of the particular regulatory approach are possibly as important as the choice of policy instrument. While the choice between a carbon tax or a domestic cap and trade scheme are seen as incredibly important decisions, a range of design details such as the size and timing of the instrument, the point of application, extent of coverage across the economy and others were seen as equally important decisions with respect to the eventual impact of the instrument. Other issues that business raised as important for the effectiveness of any carbon pricing approach were credible GHG reporting systems, the recycling and use of any revenues generated to offset impacts and to encourage low carbon investment, and long-term and credible policy signals from government. Climate strategy collaboration to support economic development Business representatives stressed the need for government and business to work together strategically on climate and energy issues. A key theme was that climate change mitigation should not only be seen as a cost to the economy and that climate policy should identify and support economic development opportunities arising. Business stressed that action towards a lower carbon economy should be seen as part of the development and economic growth strategy of the country


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and not as antagonistic to it. This would require a better integration of energy and climate policy and processes to ensure that South Africa is in a position to maximise international flows of finance and technology in support of greenhouse gas mitigation and a “green economy”. Potential areas of conflict There appears to be a few principle concerns with the government’s emerging carbon pricing approach. One issue revolves around the use of carbon revenue raised. As with many other countries, there has been strong views expressed by the private sector that carbon revenues should not simply be included in the general fiscus, but should be set aside for supporting lower carbon growth and for recycling to affected sectors. This differs in some degree from the stated policy of the National Treasury. There is also some stress from the private sector on ensuring that effective GHG monitoring and reporting regulations are in place prior to the implementation of carbon pricing systems, which they argue are far from ready. Business preparation A review of published comments from the private sector also suggests that there has not yet been adequate preparation and analysis by business on carbon pricing. Participants in the workshop recognised this and suggestions such as greater involvement of the finance sector, the need for further research and preparation by business, and the need for better government/ business engagement were raised. It is also important that the key affected firms and industrial sectors such as Eskom, Sasol, the coal mining industry, the oil refining industry and energy intensive firms start actively engaging with this debate. The private sector does not have a consensus view on carbon pricing and differences within the private sector exist – stemming from different perspectives and from real differences between sectors and the relative impacts of different types of carbon pricing policies on these sectors. It is important that there is openness about these issues and room for debate and discussion to enable systems to be designed that achieve the environmental objective while minimising impacts on the economy. This paper is based on a larger research project, carried out by PDG (see and funded by the British High Commission, on carbon pricing options for South Africa. There will be seven papers published from this project, which will be made publicly available after the conclusion of the project in June 2010. These papers address issues of carbon pricing, carbon taxation and domestic emissions trading from a South African perspective. PDG Tel: +27 11 482 9568 Fax: +27 11 482 9542 E-mail:


CDM should be

part of future emission trading scheme “C

DM should play an important part in future emission trading schemes because it has demonstrated that it leads to both emission reductions and technology transfer,” said Senior Vice-President Bjørn K. Haugland of DNV at a Sino-Norwegian round-table in Shanghai. “Carbon trading is important in our global efforts to reduce our footprints of greenhouse gasses. It is a cost-effective way of reducing GHG emissions. It brings sustainable development to the host country by generating revenues locally, reducing local pollution and transferring technology. It also raises private capital for reducing emissions,” continued Haugland.

DNV is building up its resources in China to meet the growing demand for services in the world’s largest market for CDM projects. “The future of carbon trading and CDM is very much dependent on what happens to the European Emission Trading Scheme (EU ETS). It also depends on whether the USA will allow for off-set projects. If EU-ETS sets limits that increase the demand side and the USA finally gets an energy law in place that also allows for

international offset projects, then a mechanism such as CDM is probably the best tool that we have in place today for producing carbon credits as well as transferring technology.” Experts expect CDM market in China to grow “The price of Certified Emission Credits (CER) has been lower in 2009 than the year before,” Mr Haugland pointed out. “But we have not seen any dramatic price effects after the failure of Copenhagen to arrive at a binding agreement. This indicates that the global markets seem to be confident that emission trading will continue to play an important role in mitigating climate change. And for DNV we have not seen any reduced demand for validation and verification services.”

According to DNV, China counts for 50 % of all CDM projects in the world. DNV expects the CDM market in China to grow and the company will have some 50 technical experts working on CDM projects in China by tge end of the year. For more information, visit, to which full acknowledgement and thanks are given.

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report entitled Corporate Clean Energy Investment Trends in Brazil, China, India and South Africa by the Carbon Disclosure Project (CDP) was launched on 2 June. The focus of the study, which was commissioned by the Renewable Energy and Energy Efficiency Programme (REEEP), included the significant economic growth which is projected to take place in the BASIC countries, making them attractive for further clean energy projects. The report comes at a good time for South Africa to scrutinise what the drivers for the conversion to energy-efficient and renewable energy projects were in the four other BASIC countries. Some of the report’s findings showed that companies in BASIC countries are making sizeable investments in clean energy with China leading by far and that investment in clean energy projects are driven by a combination of regulation, cost reduction and energy security. The report also highlighted that high-level policy signals are necessary and useful in accelerating the uptake in energy-efficiency and renewable energy projects, with all four countries having framework legislation aspiring to greater energy-efficiency and use of renewable energy. In addition to high level policy signals, clear and specific regulation is also needed. The National Business Initiative (NBI), as partner to the CDP, facilitated the research among 11 JSE listed companies drawn from the CDP 2009 report. The NBI hosted roundtable discussions with government and business to reflect upon the findings of the report, especially in terms of how the role of policy influences a country’s conversion to energy-efficiency and renewable energy. Green investments lined up South Africa’s corporate sector requires clear policy signals and expediting the process of translating policy to implementation, according to the report. Examples of this indicate that some of the large corporate companies in South Africa have planned investments lined up which will be unlocked once specific regulations have been made legal by government. During the research stage, dialogue with government also highlighted the need for greater awareness raising and communication between government and business about existing policies that local businesses are not tapping into. What SA needs for a green pathway The report determined that the following is required for improved uptake of green investment in South Africa:


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• • • • • • •

The need for South Africa to formulate a vision for its green growth pathway that would rally the support of all stakeholders, particularly for businesses. The need for stronger and more inclusive engagement between government and business on existing and future technology development and options that support greater localisation of technology. More communication between government on existing tax concessions and potential for partnerships in research and development. Need for greater integration between departments in various and respective roles in support of research and development. More engagement on what policy signals business requires from government and a plan that will enable business to pursue green investments in the absence of policy. Transport sector and provincial and local government must be factored into the equation of addressing clean investment. Good quality data is urgently required from business in order for them to do proper energy planning and reduce greenhouse gas emissions.

Comparing apples with pears Following discussions with government and business representatives in South Africa, government made an important observation after analyzing the report. The South African government said that it was important to note that the four countries were not comparable in terms of their political and socio-economic models, which had played a role in influencing their uptake of clean technology investment. The size of the countries and samples also meant that the ratios between them were incomparable. Government officials also asserted that the four countries varied in their level of maturity in terms of policy, investment and perceived willingness to convert to renewable energy and energy-efficient solutions. Cost of energy the real key driver Finally, CDM has made a contribution-incentive corporate investment especially for renewable energy and especially in China, and consideration should be given to its future role. The report, commissioned by the Renewable Energy and Energy Efficiency Programme (REEEP), who are investors in the Carbon Disclosure Project and have an interest in accelerating the marketplace for renewable and energy-efficiency, have since April 2010 supported 129


projects targeting low-carbon energy interventions in renewable energy and energy-efficiency in 56 countries. Both government and business in South Africa acknowledged that the key drivers of investment into clean energy have been based on the cost of energy, energy security and corporate social responsibility. Given that policy signals for business still need to be clarified, it is anticipated that with the recent increase in electricity tariffs, and the potential for the implementation of carbon tax, energy cost will become an even stronger driver for energyefficiency and investment in and the development of renewable energy. “It has been widely acknowledged that the current energy prices do not adequately reflect the full cost of production or their impact on the environment. Energy prices should fully reflect costs, including environmental costs, to ensure that we send the correct price signals and when they do, this will allow alternative technologies, e.g. renewable energy to become more cost-effective,” says Cecil Morden, chief director at South Africa’s Department of Treasury. Morden explains that high level policy signals and specification regulations from government are needed to increase the uptake of clean energy solutions because they ensure some form of level playing field. “High level policies and regulations provide certainty and ensure that the appropriate price signals are conveyed,” adds Morden.

their reputation with investors, consumers and other stakeholder groups (particularly given that the sample for CDP was pitched at publicly listed companies on the JSE top 100). While there are existing pieces of legislation or policy that have guided some initiatives from companies, the trend at a corporate level has shown that companies have been accepting to voluntary initiatives such as the Voluntary Energy-Efficiency Accord, which was informed by the Energy-Efficiency Strategy of 2005 and the CDP, which has been investor driven. This scenario is expected to change in the future due to the fact that the policy landscape in South Africa is gaining momentum since the Energy Management Act of 2008, the Taxation Amendment Act of 2009, the Vision and Strategy for Climate Change Act of 2008 and various pieces of legislation on renewable energy with the REFIT being the most recent catalyst towards specific rules and regulations to drive clean investment. Finally, reflections from business representatives called for greater certainty from government in terms of issues such as energy security and real engagement and partnership to address these issues, stronger emphasis on drafting and implementation of policy and testing policy against an evidence base such as more joint research initiatives, cooperation in technology considerations and fast tracking of the implementation of fiscal incentives that will unlock a number of planned energy-efficiency initiatives.

Corporate image important to South Africans The second key driver in South Africa, corporate social responsibility, is indicative of the corporate sector in South Africa being concerned about

For more information, visit, to which full acknowledgement and thanks are given.

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Gambia New resource centre A Climate Change Information and Resource Centre, which will deal with issues on the mitigation and adaptation to climate change, has been launched in Gambia. The Phoenix Project is a non-profit organisation which has launched Gambia’s first centre and the project will support The Gambian Women’s Environmental Network and The Gambian Youth Environmental Network in Kerr Serign, Kombo, in the northwestern part of Gambia.

have various consequences such as an increase in air temperature, a rise in sea level from the thermal expansion of oceans and changes in rainfall patterns.” “Gambia is not spared from the impacts. We are already facing serious problems along our coastline, Banjul is projected to sink under by one metre below the sea level,” she added.

“The centre will serve as a reference point for the public with the aim of sensitizing and educating the youth and women on the causes and effects of global warming,” PANA (Pan African News Agency) reported.

The Phoenix Project is part of collaborative projects between the Gambian Government and community-based organisations, the private sector, NGOs and youth groups.

The project aims to encourage public participation in mitigation and adaptation programmes as well as increase the number of volunteers in the Gambian Youth Environmental Network and the Gambian Women’s Environmental Network.

Kadi Touray, the founder and coordinator of the Phoenix Project, stressed that in a just world, the industralised nations which caused the climate change problem would shoulder the burden of responsibility.

Aji Bintou Kinteh of the National Environment Agency said: “Climate change is expected to

For more information, visit, to which full acknowledgement and thanks are given.

New CEO for Eskom


With effect from 1 July 2010, Brian Dames will be the new Chief Executive Officer of Eskom, as announced by the board of Eskom Holdings Limited on 15 June. Commenting on this appointment, Eskom chairman Mpho Makwana said: “We welcome the appointment of Dames and look forward to the stability that his appointment brings to Eskom. This now completes the leadership team who will take Eskom further into a new era.” Dames is currently Eskom’s Chief Officer, Generation Business. He was appointed to Eskom’s executive management committee (EXCO) in September 2004 after serving Eskom in various management positions. He joined the utility in 1987 as a graduate-in-training, and has extensive experience in the electricity business. He is also holding a B.Sc (Hons), an MBA and a Graduate Diploma in Utility Management.


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Database launched to help

mitigate disasters A training workshop was launched on building a database to register disasters in Yemen. The workshop is held in cooperation and coordination between the United Nations Development Programme (UNDP), Ministry of Water and Environment represented by the Emergencies and Environmental Disasters Directorate, the International Strategy for Disaster Reduction (ISDR), the Civil Defence and the World Bank. The database aims to reduce disasters and register these disasters in a unified system. It will also help to develop defence mechanisms to mitigate risks and developing early warning systems before disasters by using the available resources. Mohammad Naciri, UNDP Yemen Deputy Country Director, expressed the importance of improving the communication and coordination between different related bodies. They should work together to improve the information basket and decision-making, in a way that help their communities to be better prepared to face dangers in the future.

Sasol buys into Norway’s CCS centre South Africa’s energy and chemical group, Sasol, has become a partner in the Technology Centre Mongstad (TCM), which is currently under construction in Norway. The centre aims to further develop carbon capture and storage (CCS) technologies and it will be in full operation by the end of 2011. The total budgeted capital cost for the TCM project is approximately US1-billion, of which Sasol acquired a 2,44% stake. The centre will test CO2 capture on two types of fuel gases using two capture technologies. “I welcome Sasol as partner at the Technology Centre in Mongstad. I am certain that our new partner from South Africa will bring along essential knowledge and experience that will benefit TCM. The significance of the TCM project is global and this is now duly reflected in the partnership,” said the Minister of Petroleum and Energy, Terje Riis-Johansen. The partners in TCM are now the Norwegian State, Sasol, Statoil and Shell.

Majed Al Rifa’ee, the General Manager of the Emergencies and Environmental Disasters, in turn said: “Building a database has been proved useful through sorting disasters information, their losses and analysis, and reflecting them in graphs and maps.” For more information, visit to which full acknowledgement and thanks are given.

For more information, visit, to which acknowledgement and thanks are given.

Eskom recovers to ZAR3,6-billion profit In June, South African power utility Eskom reported that the state-owned entity recovered from a whopping ZAR 9,7-billion net loss in 2008/2009 to a record ZAR 3,6-billion net profit for the 2009/2010 period.

well advanced in finding solutions to close the overall funding gap and has been working closely with Government in this regard,” said Mpho Makwana, Eskom’s acting chairman.

According to Paul O’Flaherty, the company’s financial performance improved primarily due to real savings and internal efficiencies. “However, the two upcoming electricity tariff increases, are still necessary in order to rightsize the tariffs and put Eskom back on a sustainable financial footing,” said O’Flaherty. The National Electricity Regulator of South Africa (NERSA) approved Eskom’s average tariff increases of 24.8%, 25.8% and 25.9% for the next three years.

According to Makwana, Eskom’s three-year funding gap is currently ZAR115-billion, which will drop to ZAR50-billion over the next seven years once the tariff increases were phased in. The funding shortfall will be closed by a combination of private equity injections into the Kusile project, further tariff increases, international bond issuances, cost savings due to efficiencies in Eskom’s procurement budget and amendments to supply contracts.

Funding and shortfalls

“We recognise that there are still many tough challenges before us, but Eskom is on the path to recovery for the future,” concludes Makwana.

Eskom has secured significant funding (ZAR21-billion from the African Development Bank and ZAR28-billion from the World Bank) to fund the Medupi Power Station and new wind and solar projects. “Eskom is also

For more information, visit, to which acknowledgement and thanks are given.

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‘10 E NE R G Y E V E NTS

July 2010

August 2010

Investing in Renewable Energy Date: 20 – 21 July 2010 Location: Johannesburg, South Africa Contact: Micheal Judge Tel: +27 33 391 4229 Fax: + 27 86 591 7037 or +27 86 535 5487 E-mail: Website:

Soy Innovation Africa Date: 26 – 27 August 2010 Location: Cape Town, South Africa Contact: Soyatech LLC Website:

CTI PFAN Africa Forum for Clean Energy Financing Date: 21 July 2010 Location: Johannesburg, South Africa E-mail: Website: Africa Gas and LNG Summit 2010 Date: 26 – 30 July 2010 Location: Johannesburg, South Africa Contact: Neoedge Pte Ltd Tel: +65 6557 9186 E-mail: Website: The Sustainable Water Resource Conference & Exhibition Date: 27 – 28 July 2010 Location: Pretoria, South Africa Tel: +27 21 447 4733 E-mail: Website:

August 2010 Hydropower Africa 2010 Date: 16 – 18 August 2010 Location: Johannesburg, South Africa Contact: Spinintelligent Tel: + 27 21 700 3500 Fax: + 27 21 700 3501 Website: Coal Energy Africa Date: 17 August 2010 Location: Johannesburg, South Africa Contact: Spinintelligent Tel: + 27 21 700 3500 Fax: + 27 21 700 3501 E-mail:


25 o i n Africa 25 o i n Africa

EAPIC 2010 Date: 31 August – 3 September 2010 Location: South Africa Contact: Spinintelligent Tel: + 27 21 7003500 Fax:+ 27 21 700 3501 Website:

September 2010 3rd Natural Gas Conference 2010 Date: 7 – 8 September 2010 Location: Indaba Conference Centre, Johannesburg, South Africa Contact: Elrien Bootha Tel: +27 11 431 2016 E-maill: Co-Generation World Africa Date: 13 – 15 September 2010 Location: Johannesburg, South Africa Website: 3 Day MBA in Power & Electricity Date: 21st – 23rd September 2010 Location: Dubai, United Arab Emirates Contact: Ephraim Tel: +44 20 7608 7072 Fax: +44 20 7608 7050 E-mail: Website: Green Building Council Convention & Exhibition 2010 Date: 20 – 22 September 2010 Location: Cape Town, South Africa Contact: Focus Conferences: Tel: +27 11 280 6651 Fax: +27 86 677 3911 E-mail: Website:

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2010/06/30 2:56 PM

25Degrees in Africa - JNL 4'10  

Africa's independent energy publication

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