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Sponsored by the Department of Science & Technology

VOLUME 17 NUMBER 2

www.erc.uct.ac.za

JUNE 2011

Vale and Xstrata commission energy management solution that can save mines millions in energy costs
which represents significant savings given that ventilation costs make up almost 50 per cent of a mines energy costs. COLLABORATION When BESTECH was developing the technology, it formed a consortium of industry experts and organizations to establish best practices and standards of excellence. The consortium members include organizations such as the Centre for Mining Excellence (CEMI) as well as mining giants Vale and Xstrata Nickel. This year, the technology was installed at Vales Coleman Mine and Xstrata Nickels Fraser Mine, both in Sudbury, Ontario, Canada. We worked together with BESTECH on what was needed in the industry and theyve completed the development of a Ventilation-OnDemand management tool for us, says Cheryl Allen, Chief Engineer Ventilation, Vale Mines Mill Technical Services, Canadian Operation. BESTECH designed a system that can be tailored to suit the needs of each mine. NRG1-ECO was developed with an open architecture so that it will work with technology already in use at any mine. Integration is at the core of NRG1-ECO and its ability to incorporate with new or existing mine infrastructure offers mines, old or new, the opportunity to realize significant savings as well. In addition, the BESTECH team offers mines assistance with EnergyEfficiency Grants and Rebate applications for both the initial site assess-

Vale and Xstrata commission energy management solution that can save mines millions in energy costs . . . . . . . . . . . . . . . . . . . . . . 1 Independent operator will change electricity arena. . . . . . . . . . . . . . 3 Eskom EIA for nuclear facility extension of comment period . . . 4 Biogas systems for primary treatment of household wastes with energy storage and recovery . . . 4

IN THIS ISSUE

he mining industry world-wide has more than its fair share of challenges today from stringent environmental and regulatory pressures to an urgent need to improve operational costs, productivity and safety, all while having to mine deeper than ever before. Aware of these challenges, BESTECH, one of Canadas leading providers of engineering, automation, software development and energy management services, has been developing a novel solution to address these challenges in mines for years. Their team of experts have perfected a multi-faceted solution called NRG1-ECO (Energy Consumption Optimization) that helps mining companies gain better control of their processes, energy usage, equipment, safety and energy costs. NRG1-ECO combines hardware and software to manage virtually every piece of automated equipment in a mine. Its a complete energy management system that can be applied to processes such as compressors, pumps and any other systems in a mine that could benefit from a reduction in energy consumption, says Trang Tran, BESTECHs Manager, Research & Development. This is especially true with respect to a mines ventilation system that usually operates at peak capacity 100 per cent of the time. NRG1-ECOs VOD (Ventilation-On-Demand) module enables the mine to instantly control the ventilation systems air flow to when and where it is needed. This allows a mine to reduce its ventilation costs by as much as 30 per cent

The world of energy . . . . . . . . . . 5

Novel energy systems for distributed and mobile power generation . . . . . . . . . . . . . . . . . . 6 Powering change in low-income energy markets . . . . . . . . . . . . . . 6 An ethical check-up on the IRP2 . . . . . . . . . . . . . . . . . . . . . . 7 Eskom Open Innovation pilot project . . . . . . . . . . . . . . . . . . . . 10 Proposals for research grants: Africa initiative. . . . . . . . . . . . . . 10 Southern Voices Capacity Building Programme . . . . . . . . . 13 Why the media matters in a warming world: A guide for policymakers in the global south . . . . 13 City calls on its residents to save electricity . . . . . . . . . . . . . . . . . . 11

Mthombo: A white elephant in the making . . . . . . . . . . . . . . 14

Fracking in the Karoo for and against . . . . . . . . . . . . . . . . 15 Netmetering . . . . . . . . . . . . . . . 15 Event Greening Forum becomes official . . . . . . . . . . . . 16 Wind sector expert required . . . 16 Cape Town gets Green Expo . . 18 CPUT offers petroleum course . 18

3rd Annual Nuclear Forum in South Africa. . . . . . . . . . . . . . . . 17

Energy events 2011 . . . . . . . . . 19

Energy Management News


system can control or reissue air flow requirements for the current real-time environmental needs, says Tran. The fifth control strategy is Tagging. NRG1-ECO integrates with industry tagging systems and monitors and adjusts air flow in real-time and responds to incoming sensor data as well as the location of tagged mine personnel and equipment. It then adjusts ventilation to meet their needs, says Tran. The Intelligent Zone ControllerTM (IZC) is the brains of the underground network and one of the components of the NRG1-ECO system. It increases the system responsiveness as data can be analyzed and processed internally and does not have to be transmitted to surface for a decision making. In the case of an interruption in communication with the controls above ground, the IZC can execute commands to the devices to operate in fail-safe mode. BETTER INFORMATION, BETTER DECISIONS NRG1-ECO also stores all the data it processes for its real-time monitoring. The system provides mine intelligence regarding device performance, adherence to established systems and processes and offers effective analysis of a mines KPIs. If you are monitoring your processes then you can make informed decisions, says Allen of Vale. With the NRG1-ECO system, you have better monitoring and control and that allows you to make decisions; helps your management make better decisions and it helps the people working day-to-day with the systems understand their environment. If youre continually measuring, you should also be able to be continuously improving what youre doing. BESTECHs new technology is attracting world-wide attention from other mining giants, including North Americas fastest growing senior gold producer, Goldcorp Inc. We looked at two different systems. It seemed BESTECH was offering a complete package from ground up, says Imola Gtz, Chief Engineer, Hoyle Pond Mine, Goldcorp. Were hoping to go ahead with NRG1-ECO in a two-stage approach. First, have the system up and running on two levels in the Hoyle Pond Mine in Timmins and if that proves to be satisfactory, then we will expand it to the rest of the mine. NRG1-ECOs ability to be customized to meet the needs of each of their mines seems to be the difference for Goldcorp. They can adapt NRG1ECOs control strategies to leverage the highest return for each mine site. Mines of the future will no doubt be going deeper, resulting in higher costs for infrastructure, ventilation and energy. How mines address these future challenges will separate them from the rest of the mining industry. Founded in 1995, BESTECH was created to address the need for system integration and industrial automation. By developing a very specialized skill set, BESTECH quickly gained recognition as a leader in industrial automation, engineering, software development and energy management. With over a decade of sustainable growth, BESTECH developed its strong industry expertise, by responding and developing innovative technologies that helps companies in mining, pulp and paper, forestry, oil and gas, manufacturing, municipal and commercial industries internationally enhance their productivity, profitability and safety.
G Contact: Dawn Larsen

ments and commissioning of NRG1ECO. Energy grants and rebates help our customers get on the fast track to energy savings, increasing productivity and employee engagement, says Dan Dumais, BESTECH Energy Specialist. We work with our clients to provide all the necessary system training for NRG1-ECO stakeholders at a mine. A comprehensive education and employee awareness system is also available to ensure the sustained use of NRG1ECO in their mine. CONTROL STRATEGIES OPTIMIZE ENERGY SAVINGS, VENTILATION AND AIRFLOW NRG1-ECO includes five control strategies. The programming parameters for the control systems are based on the needs of each mine site and designed according to their specifications, says Tran. Each mine site has their own protocol and our team customizes their system to reflect that and maximize energy savings for the client. One of the first control strategies that mines utilize is the Time-Of-Day scheduling where windows of opportunities exist between shift changes, holidays and other regular set times to control devices. Ventilation technicians preset the execution of batches, based on the mines planned activities per day, week, or month. NRG1-ECO can control the devices by scheduling an automatic reduction that allows the system to reduce energy consumption. The second control strategy is the Real-Time control. This allows mine personnel to turn devices on and off in real time, either through a Web-Based User Interface or through Human Machine Interface screens which sit in the control room, says Tran. The third control strategy is the Event-Based control, allowing the site to configure the NRG1-ECO system to automatically react to events such as a fire or a high carbon monoxide level. When the system detects an event, it knows the actions that t need to take place. Those events are often safety ones and can also include something such as a vent door being left open by mistake. The fourth control strategy is Environmental Monitoring. NRG1-ECO includes instruments underground that measure different environmental parameters, such as high levels of carbon or nitrogen oxide and the temperature and airflow in a certain area. Based on real-time data collected, the

Marketing Project Manager BESTECH 1 705 675 7720 ext 280 E-mail: Dawn_larsen@bestech.com Website: www.bestech.com .

Energy Management News 3

Independent operator will change electricity arena


power utility Eskoms plans regarding private investment in the sector. As Mark Pickering, a partner at Meridian Economics, noted, the government has repeatedly made positive policy statements about its intent to open the power system to IPPs, starting with the Energy White Paper of 1998. In 2001, the Cabinet adopted a resolution that up to 30% of existing generating plants should be sold to the private sector, but little was done to implement the privatisation of Eskom power stations though, and in 2004 the resolution was re-interpreted to imply that 30% of new generation capacity should be built by the private sector. Once again, little was done to implement this resolution, although the Department of Minerals and Energy, did attempt to procure 1 000 MW of Open Cycle Gas Turbine (OCGT) peaking plant a process which eventually floundered prior to financial close in March 2007, said Pickering. Eskom, too, has initiated a number of IPP procurement processes since 2006, most of which have been abandoned Eskom has also entered into negotiations with a number of crossborder IPP developers. None of these unsolicited proposals have been finalised, and in the course of 2009 Eskom announced that all such initiatives had been put on hold, pending the resolution of its funding model and the implementation of governments policy on new generation capacity, Pickering said in a research report prepared for the University of Cape Towns Energy Research Centre. The governments policy on new generation capacity is contained in the Integrated Resources Plan, which sets out to diversify the source of the countrys energy away from coal, which is used to generate 77% of the countrys power. Pickering said the Integrated Resources Plan, together with the ISMO Bill and the National Energy Regulator of South Africas new paper on wheeling which looks at charges for the use of the grid was a major leap forward. He said it would lead to the most fundamental restructuring of the countrys electricity industry since 1924. There is, however, too little detail in the bill for the electricity market to be opened up by any significant extent just yet. Failure to introduce private sector investment, or IPPs, has resulted in South Africa retaining its vertically integrated electricity market structure, which has one dominant player that is owner and operator of the countrys generation, transmission and distribution assets. What the ISMO Bill aims to do is shift the market to the hybrid model, which will see IPPs generate power and invest in capacity side by side with Eskom. Under the bill, that power will be sold to a state-owned ISMO, which will then use Eskoms transmission and distribution assets to get the power to clients. The Free Market Foundation (FMF), which last week hosted a conference on 9 June titled Unlocking the Electricity Transmission Grid, suggested that South Africa needed to go further than this by opening up the entire market to competition. Inherent in having a single grid owner and operator is the lack of competition, said FMF director Eustace Davie. This lack creates the problem of potential excessive charges and difficulties with obtaining access to the grid. A problem governments generally attempt to solve by regulation and, especially, price control, which are not as effective as com-

he South African Government has confirmed that Independent Power Producers (IPPs) will in time generate 30% of South Africas electricity. IRP 2010 2030 has been promulgated. The key to the efficient utilisation of IPPs is an Independent System and Market Operator (ISMO) as proposed by the Department of Energy in a recent Draft Bill that was out for public comment before being submitted to parliament. The establishment of an independent system and market operator (ISMO) will revolutionise the local electricity market. But the legislation that makes the ISMO possible and the amount of legislation and regulation that needs to be changed to accommodate the new legislation means that it could take years before consumers see any real change. Ompi Aphane, Deputy DirectorGeneral in the Department of Energy, said the ISMO Draft Bill, which was open for written public comment until June 13, would take about four months to legislate. Crucial to facilitating the introduction of independent power producers (IPPs) to the system, the bill might, however, take another two years to be populated and even longer to become fully operational, admitted Aphane. This could create even more uncertainty for potential IPPs waiting to invest in South Africa. Other uncertainty has been caused by a delay in the finalisation of tariffs. Without knowing whether there will be a buyer for the power they produce or how much they would be paid for that power, it is obviously difficult for them to make an investment decision. In fact, IPPs have been waiting about five years for any kind of certainty related to the government and state owned

Energy Management News

petition and consumer choice. In a paper on the electricity transmission grid and its importance to South Africans, Davie said consumers, be they individuals or large organisations, have the obvious problem of lack of choice. It is important to at least have final distributors who purchase electricity from competing generating companies, transmit it across transmission lines, transform it, and compete with each other for the business of the final consumers, Davie said. World experience has shown that a vertically integrated electrical generation, transmission and distribution structure is not the best way to organise the supply of electricity. Even if most of the parts of the whole structure remain government-owned, which is not desirable, the entities will function better if they are separated and can concentrate on their core functions. ISMO and the electricity regulators will hopefully encourage private generating companies who believe there is business to be had, to enter the market. ISMO does not have to weigh the risks on behalf of potential investors; all they need do is to allow access to the grid for their generating plants, said Davie. An independent grid operator, as long as it is instituted quickly and efficiently, will go a long way towards solving South Africas electricity supply problems.

Eskom EIA for nuclear facility extension of comment period

n opportunity to review the Revised Draft Environmental Impact Report (EIR) Report commenced on 09 May 2011 with a closing date of 23 June 2011. Various Interested and Affected Parties have requested an extension of the review period. After due consideration of the requests, GIBB has been decided to extend the comment period by an additional 45 days. The closing date for comment is now 07 August 2011 (i.e. a 90 day comment period). You are, therefore, afforded the opportunity to use the extended period to review the report and submit comments. Thank you to all those who have attended public meetings and open houses held from 23 May to 02 June 2011 and already submitted comments on the Revised Draft EIR, as well as those who will take further time to review the reports and submit comments.
G Contact: GIBB Public Participation Office, Nuclear-1 EIA

Biogas systems for primary treatment of household wastes with energy storage and recovery

P.O. Box 3965, Cape Town, 8000 Tel: 021 469 9180 Fax: 021 424 5571 E-mails: nuclear1@gibb.co.za/ and nuclear-1@gibb.co.za

Progress through freedom G Contact: Leon Louw

Executive Director Free Market Foundation Eustace Davie Director Free Market Foundation Tel: (011) 884 0270 Fax: (011) 884 5672 E-Mail: fmf@mweb.co.za

ith increasing regulatory focus and consumer interest on sustainability issues, and in particular on water re-use, nutrient recycling, energy generation and climate change, practical mechanisms for realizing multiple co-benefits from human generated (waste) resources are increasingly being sought out. One such application is the use of on-site anaerobic digestion systems, which co-digest multiple domestic waste streams including, for example, sewage, food waste, and grass cuttings to produce a methane rich gas (biogas). Since these individual organic waste fractions exhibit varying biogas potential, their co-digestion could improve the biogas yields as established in a recent study on municipal solid waste. While the co-benefits that are achievable depends on the nature of the inputs, including whether or not sewage is present and what the total solids concentration of the influent material is, what is clear is that households and institutions are for the first time able to reduce their overall environmental impact while achieving increased on-site energy production and use, water re-use and fertilizer beneficiation. AGAMA has some years of experience in commercial use of fixed dome anaerobic digesters in South Africa, for households (rural and urban) and institutions, within the context of the countrys water, sanitation and energy constraints. Case studies from a number of applications that cover water quality, energy outputs and additional supernatant treatment or utilization have also been undertaken.
G Contact: Greg Austin

Director, AGAMA Energy (Pty) Ltd and AGAMA Biogas (Pty) Ltd Tel: +27 21 701 3364 Fax: +27 21 701 3365 E-mail: greg.austin@agama.co.za Website: www.agama.co.za

Energy Management News 5

The world of energy

ach year, at the beginning of June, BP publishes its Statistical Review of World Energy. It is a great public service. BP may be known for its liquid fuel interests, but its Review covers all primary energy, that is, all the sources of energy which nature provides. In recent years it has even included the renewables, wind and solar, which now make a measurable contribution. Because the use of energy is directly linked to the creation of wealth, analysing who is using what, and how their use is changing, gives a strong sense of economic changes. It therefore makes sense to evaluate the Reviews data, which is readily available on the internet in the form of spreadsheets. This years Review gives data going back to 1965. It is a simple matter to trace the trends. The first graphic shows how the world has consumed energy over the last 45 years. This has numerous remarkable features. It clearly shows the dip in energy consumption as a result of the economic crash of 2008, and how consumption picked up during 2010, a real signal of world economic revival. You can also see the oil price shocks of 1973 and 1978, which affected mainly the consumption of oil coal and gas demand were barely affected. The continued rise of nuclear power surprises many. Nuclear energy now gives us almost as much energy as hydropower. Growth slowed after Three Mile Island, and again after Chernobyl, but has never stopped completely. The miniscule contribution of renewables other than hydropower is noteworthy. All the talk around the strong growth in this form of energy, and the thousands of jobs that might be created by renewable industries, has to be seen as just so much hype. It is coming off a very low base, so of course it is growing strongly. But it is clear that the world will not come to rely

on renewable energy for many years to come. Equally, of course, the fossil fuel contribution (coal, oil and gas) is huge. Today, it provides us with 84% of our total energy. The growth in fossil fuel use last year was more than 25 times the growth in renewable energy other than hydropower. There is a lobby that calls for a low-carbon economy, and massive investment in renewables, to save us from the purported disasters of climate change. The nations of the world do not appear to be heeding these calls or, if they are, they are paying very heavy lip service. The reality is that that fossil fuel use is growing rapidly. In 1965, fossil fuel use made up 94% of the worlds energy supply. The drop to 88% is almost entirely due to the growth of the nuclear industry over this period. The real growth in the consumption of fossil fuels is particularly striking in the case of coal. Since 1998, coal consumption has grown by nearly 55%, but total energy use has increased by only 33%. Coal, of course, produces far more greenhouse gases per unit of energy than other fossil fuels. 1998 was the year in which the Kyoto Protocol, designed to limit greenhouse gas

emissions, came into force. Again, full lip service appears to be the best carbon restrictions one can hope for. How does South Africa fare in comparison with the average nation? The energy consumption of this hypothetical average nation is shown in the next graphic.

Slightly less than one-third of the total consumption is provided by each of the fossil fuels. Nuclear and hydropower contribute nearly equal quantities, and together provide a little over 10% of the total. Renewable other than hydro provide only 1%. The South African energy consumption is strikingly different:

Energy Management News

T
Nearly three quarters of our energy comes from coal and less than a quarter from oil and gas together. As a dry country, we have essentially no hydropower. Our nuclear power is about half that of the average nation. Renewables are almost invisible (although we probably have some wood and dung which are not captured in the Review). Because coal emits nearly three times as much carbon dioxide per unit of energy as gas does, we appear to emit excessive quantities of greenhouse gases. If we had as much natural gas as the average nation, our carbon footprint would be very like that of other countries. There is no reason to go around beating our chests and wearing hair shirts in guilt. We make use of the only source of energy presently available to us. Energy and economic development are closely linked. It is therefore not surprising that China (6.5 billion tons of CO2), the US (5.8 billion tons) and the European Union (4.2 billion tons) lead the list of emitters. Even with our highcoal economy, we emit only 0.4 billion tons. If the US and Europe would curtail their emissions by less than 5%, we could go on developing with no impact on the environment. Climate change is apparently caused by increasing carbon dioxide in the air. Yes, South Africa plays a small part in the increase, but the developed nations play a far larger part. Anything we might do to reduce our emissions will go unnoticed in global terms. That is a very good reason not to burden our economy with any more carbon taxes. Carbon taxes will harm our economy, slow our development, and do nothing for the environment.
G Contact: Philip Lloyd

Novel energy systems for distributed and mobile power generation

he Department of Chemical Engineering, UCT, hosted William Lear, Associate Professor in the Department of Mechanical and Aerospace Engineering at the University of Florida, and Director of the Energy and Gasdynamic Systems Laboratory. He is the author of numerous technical papers on energy cycles and turbomachinery, and is an Associate Fellow of the American Institute of Aeronautics and Astronautics. A/Prof Lear presented a talk entitled Novel Energy Systems for Distributed and Mobile Power Generation on 24 May. Abstract of his talk In a sustainable energy future, the efficient utilisation of unconventional fuels such as biomass and municipal solid wastes will be a critical component in meeting the worldwide energy demand. In addition, waste heat represents by far the largest easily-accessible energy source, and distributed generation is necessary in order to benefit from its potential. This presentation described a novel quad-generation distributed energy system which combines multiple system advantages, including wide fuel flexibility, low emissions, compactness, and attractive life cycle costs. The system produces electric power with an efficiency advantage, while simultaneously producing heat, cooling, and fresh water, important for coupling to steam gasification plants and for remote or emergency operation. The presentation also described the research and development activities for a novel direct methanol fuel cell system for portable electronics applications. The system architecture enables significant gains in compactness, so that a fullyhybridised integrated laptop power supply, including fuel, can occupy the battery compartment. Current research challenges were also described.
G Contact: Debbie de Jager

Administration Officer & Personal Assistant to Prof JCQ Fletcher Head of Department & Director, Centre for Catalysis Research University of Cape Town Tel: +27 21 650 2509 Fax: +27 21 650 5509 E-mail: Debbie.DeJager@uct.ac.za Website: www.ebe.uct.ac.za

he International Institute for Environment and Development (IIED) has published a new opinion paper on how to provide low-carbon energy to the worlds poorest people. In Summary, market-based interventions to improve access to energy rarely benefit the poorest. Failure to understand local needs and preferences results in inappropriate goods and services and low uptake. This Opinion discusses how business can deliver low-carbon technologies to the bottom billion and support sustainable development by working more closely with government agencies, development practitioners and local communities in designing and delivering products and services. The authors are Emma Wilson and Ben Garside.
E-mail: emma.wilson@iied.org Ben Garside, IIED E-mail: ben.garside@iied.org Website: http://pubs.iied.org/17093IIED.html?s=SDO

Powering change in low-income energy markets

G Contact: Emma Wilson, IIED

Energy Institute Cape Peninsula University of Technology E-mail: lloydp@cput.ac.za

t is evident that elements of climate change law and sustainable development legal ethics have begun to impact the scope of energy planning in the Republic of South Africa. In particular, the revision of the Integrated Resource Plan 2010 (IRP2) approved earlier this year by the Government of South Africa makes direct reference to the nations international carbon-mitigation commitments in planning for its electricity sector. While some parties might find the South African governments foray into, for instance, renewable energy and low-carbon emitting energy sources as being timid, the planning process does reveal a lot about the changing energy ethics of Africas largest electricity producer and the worlds thirteenth largest carbon emitter. Energy ethics the world over is changing. The 1987 Brundtland Commission Report heralded a global paradigm shift in socioeconomic policymaking. In terms of energy governance, an international focus on decentralization of energy planning, the liberalization of energy trading across borders and down to the micro level (for example, net-metering), and recognition of a shifting connotation of energy security are in strong evidence. Klaus Bosselman writes that energy is no longer a matter of maximizing supplies for more and more people, it is also a matter of social, environmental and future equity.1 In the sub-Saharan African context, Yinka Omorogbe has written:

An ethical check-up on the IRP2


from the failure of states to fulfil basic functions of governance such as the administration of justice, revenue collection, the provision of utilities, and other measures to enhance the quality of life, and provide for the security of citizens. In many states the governments at all levels have failed to look after their citizens and play little or no part in their lives and development. [emphasis added].2 Additionally, African jurists have begun to recognize a collective legal right to development in their interpretation of international law and human rights discourse.3 If accepted, this and Omorogbes theory leads to the legitimization of further efforts to decentralize (and not necessarily de-regulate) the South African energy sector. Also, section 24 of the 1996 Constitution of South Africa makes strong protections for the environment.4 While this overarching law has not yet been used to curb heavily polluting industries, it is something to watch out for. Since the first draft of the IRP2 was floated for public consultation last year, sadly, not much has changed in the South African energy landscape. Energy planning in general, and the rollout of wind energy in particular, has been plagued by delays, and more delays. Wind developers have not been able to count upon a stable regulatory land-

Energy Management News 7

Within the context of Africa, it should be understood that norms emanating from sources other than those of the states play a major role in regulating the personal lives and day-to-day transactions of the ordinary citizen, as distinct from the roles of formal laws or customary law. For day-to-day living and for processes that aid the smooth functioning of lifes activities, order and regulation emanate from other sources that have been created or evolved to fill the vacuum arising

scape. Firstly, a reduction in the renewable energy feed-in tariff (REFIT) schedule announced in March 2011 diminished but in all fairness did not eradicate the ability of developers to offer up bankable business plans to investors.5 However, an announcement then came that the REFIT formula for the procurement of the first 1025 MW of wind energy would be changed, and that elements of competitive bidding, as opposed to a system of secured, level pricing structures, would be utilized.6 Industry insiders have accused the government of deploying a baitand-switch formula, drumming up interest in the wind sector, luring in project developers and now changing the parameters for entry onto the grid. Regardless of ones viewpoint about the REFIT debacle, it must be said in the face of the seemingly insurmountable task of meeting its goals under the UNFCCC process, through the IRP2 process the government has brought together industry, the academe, civil society and industry including independent power producers (IPPs) as never before. This is perhaps the most democratic era in energy governance in South Africa. However, given the fact that there was a virtual cleptocracy ruling energy in South Africa from the days before the Anglo-Boer War until 1994 (and some say until now), this might say very little. Still, the IRP2 hints at the changing nature of energy security ethics and legal approaches in South Africa. While the IRP2 does not fully embrace this new brand of energy ethics, it will start South Africa on the road towards a reduced reliance upon coal-fired electricity production. There is still hope for critics of the plan, who see it as lacking enough muscle to change South Africas energy culture. Energy Minister Dipuo Peters promised in 2010 that the IRP2 was written with enough flexibility to embrace, for example, more renewable energy in the future should it be desired.7 Indeed, the amount of renewable energy envisioned to be

Energy Management News


tracts with Eskom, the government has had to ram through a medium term risk mitigation plan (MTRMP), fittingly entitled Keeping the Lights On, to provide a basic level of energy security for the general population over the coming decade.16 The plan for power generation over the medium-term is carbon intensive, although programs for demand-side management and energy conservation are being funded.17 The IRP2 is the crucial link in longterm electricity planning in South Africa. Elements of sustainable development theory are present in the strategy, as criteria such as water usage, climate change effects (environmental), localisation benefits, regional development goals (social), and financial costs and portfolio risks (economic) have been accounted for.18 The government has even extended the consultation period for the IRP2 process to harness more input and support from civil society members and sub-national levels of government.19 The plan would see licensed capacity on the grid expand from 44 535MW in 2010 to 89 532MW in 2030, with a reserve margin of roughly 15%. The bulk of new generation would come from renewables (17 800MW), nuclear power (9 600MW), coal-fired power (6 250MW), close-cycle gas turbine generation (2 370MW), open-cycle gas turbine generation (3 910 MW), and imported hydro-power (2 609 MW).20 While these numbers look promising, it must be mentioned that over the medium-term, all regular plans to commission major coal-fired facilities at Medupi, Kusile, and Ingula are going ahead despite protests from local South Africans to World Bank officials.21 To a large degree, the assumptions underlying the IRP2 reflect an outdated model of energy ethics. Predictions of supply and demand are underpinned by assumptions of gross domestic product (GDP) forecasting, even though this indicator is increasingly under fire and decreasingly touted by developed nations.22 Additionally, while public buy-in is being sought, the entire energy plan seems to hinge on industrial-scale, capital-intensive energy planning and grid build-out scenarios. Very little room is carved out for grassroots involvement. Indeed, recent efforts by the Energy Minister to promote initiatives such as community wind projects do not seem to fit into this policy in any real fashion. Also, the IRP2 lacks detail as to how demandside management will improve. Mandating Eskom, a producer of energy and a state-owned company, to actively reduce consumption patterns in South Africa defies the very ethos of the parastatal, which is concerned with producing and selling electricity, not stymieing their sales revenue! Plans to create an independent system operator need to be sped up to drive innovation and enhance the competitiveness of IPPs. This seems to be the largest driver of insecurity on behalf of private project developers, whom the government expects to assume the bulk of the risk involved in propelling South Africa into a green energy future.23 The South African government should step more forthrightly into creating a marketplace for renewable energy projects. More national demonstration sites for different technologies should be considered. For instance, a lot of private capital has been raised to launch the nations wind energy program. While there are major kinks for the government and the wind industry to work out together, more turbines can be erected while such discussions take place. The government should mull over public financing through pension dollars, community investment schemes or other majority public ownership methods for the creation of wind farms over the short-term, so that the nation can be slowly sensitized to the technology. Giving planning power directly to communities is how nations like Denmark rolled out very successful wind energy programs. As noted above, the IRP2 has a lot of problems. However, the principles of sustainable development and climate law have started to seep into the domestic energy policy process of South Africa. Policymakers should continuously check-in on these ethics to ensure that all of their work is guided by sustainable practice. Only time will tell if South Africa will truly embark upon a new path or stay chained to the energy paradox. Notes

online by 2030 was recently increased.8 South Africa suffers from an energy paradox. The country has a long tradition of electrification. Indeed, the city of Kimberley had streetlamps before London, England!,9 However, the benefits and burdens of grid development have not been evenly shared amongst the different sub-populations of the country. For most of South Africas history, those with access to the grid enjoyed a very stable stream of supply from Eskom. Bulk industrial purchasers have received sweetheart deals on energy purchasing.10 Residential ratepayers had some of the cheapest electricity bills on the planet. Of course, Eskom, as with all government services during the Apartheid era, had racially motivated aims and deliberately withheld services from black and coloured South Africans.11 There are still serious on-going disputes about equity in service provision.12 Nearly a quarter of South African homes lack access to the grid. Over 55% of rural dwellers lack stable access to electricity. As no small aside, coal is king in South Africa. Eskom reported that during fiscal year 2009/2010, 232.812 GW/h of electricity were sent out on the grid 92.8% of this was derived from coal-fire power plants, 5.5% from nuclear power, 1.5% from pumped storage, .5% from renewables and .02% from gas. This reliance on coal has a terrible effect on the South African and global environment. Coal plants and related infrastructure create drastic CO2 emissions, and also consume copious amounts of fresh water an increasingly rare commodity in South Africa. Since 1994, a build-out program has aimed to increase equity in service delivery to the general population, but power shortages plagued the country in 2006 and 2008 and are threatening to challenge the grid again during the coming decade. Despite Eskoms fierce statements to the contrary, this could even happen within the next year or two as South Africa climbs out of the global recession and demand threatens to rise sharply.13 Electricity rates are rising dramatically, in some places as much as 20% this year alone.14 Recently, international currency speculators have acted cautiously in trading the South African Rand because of fears related to grid paralysis.15 While it was acknowledged that powerful industry players cut back-room deals for cheaper and more secure supply con-

1. Klaus Bosselmann, Ethical Implications in Adrian Bradbrook et al. (eds) The Law of Energy of Sustainable Development (Cambridge: Cambridge University Press, 2005) at 74. 2. Yinka Omorogbe, Alternative regulation and governance reform in resource-rich developing countries of Africa in Barry Barton et al. (eds) Regulating Energy and Natural

Energy Management News 9


Resources (London: Oxford University Press, 2006) at 42. 3. Tiyanjana Maluwa, International Law in Post Colonial Africa (Boston: Kluwer Law International, 1999) at 312. 4. Constitution of the Republic of South Africa 1996, No. 108 of 1996, s 24. 5. Terence Creamer, Having risked R400m, wind developers fume at Refit overhaul (24 March 2011) Engineering News, online: Engineering News <http://www.engineeringnews.co.za/a rticle/having-risked-r400m-winddevelopers-fume-at-refit-overhaul2011-03-24>. 6. Terence Creamer, 90 renewables firms call for frank dialogue to end procurement uncertainties (18 July 2011) Engineering News, online: Engineering News <http://www.engineeringnews.co.za/article/90-renewables-firms-call-for-frank-dialogue-toend-procurement-uncertainties-201107-18>. 7. Terrence Creamer In the Cold? Power plan flexible enough to accommodate solar park Energy Minister (29 October 2010) Engineering News at 10. 8. Terence Creamer, Nersa moves to cut Refit tariffs just as SA promises to boost renewables (22 March 2011) Engineering News, online: Engineering News <http://www.engineeringnews.co.za/article/nersamoves-to-cut-refit-tariffs-just-as-sapromises-to-boost-renewables-201103-22>. 9. G.Z. Ben-Yaacov, Power Generation in South Africa to the Year 2000 (1979) 4 Energy 47 at 47. 10. Eskom No Power to the People (publication date unavailable) Amandla Publishers <http://www.amandlapublishers.co.za /home-menu-item/290-editorialeskom-no-power-to-thepeople4accessed>, accessed 31 August 2010; Eskom And Aluminium Ending Special Deal for Smelters Was Overdue AllAfrica.com (7 April 2010) <http://allafrica.com/stories/201004070781.html>, accessed 31 August 2010. 11. Leonard Gentle, Escom to Eskom: From racial Keynesian capitalism to neo-liberalism in David A. MacDonald (ed.) Electric Capitalism: Recolonising Africa on the Power Grid (Cape Town: HSRC Press, 2009) at 50ff. 12. Jackie Dugard, Power to the People? A Rights Based Analysis of South Africas Electricity Services in David A. MacDonald (ed.) Electric Capitalism: Recolonising Africa on the Power Grid (Cape Town: HSRC Press, 2009) at 264ff. 13. Eskom struggles to keep the lights on (30 May 2011) Independent Online Business Report, online: IOL <http://www.iol.co.za/business/business-news/eskom-struggles-to-keeplights-on-1.1075880>.. 14. Power tariffs up 20% in Cape Town (22 June 2011) ESI-Africa.com, online: ESI-Africa.com <http://www.esiafrica.com/node/12975>. 15. Ron Derby, Rand loses ground on electricity fears (26 May 2011) Business Day, online: Business Day <http://www.businessday.co.za/articles/Content.aspx?id=143826>. Terrence Creamer, SA should expect more distribution-linked blackouts as R27bn backlog grows (12 May 2011) Engineering News, online: Engineering News. http://www.engineeringnews.co. za/article/sa-shouldexpect-more-distribution-linked-black outs-as-r27bn-backlog-grows-201105-12>.. 16. Keeping the Lights On (17 September 2010) Eskom, online: Eskom <www.doeirp.co.za/.../Medium_Term_Risk_Mitigation_Project_Phase_1.pdf>.. 17. SA seeks to cut power demand by 5 000 MW (26 May 2011) Engineering News, online: Engineering News <http://www.engineeringnews.co.za/a rticle/sa-seeks-to-cut-power-demandby-5-000-mw-2011-05-26>. 18. Department of Energy, Integrated Resource Plan (2010 Rev. 2) at 13. 19. Terrence Creamer, Urgent Engagement: Provincial roadshows planned to broaden energy-plan consultation (29 October 2010) Engineering News at 11. 20. Electricity Regulations on the Integrated Resource Plan 2010-2030 (6 May 2011) Staatskoerant No. 34263, at page 17, online: Ministry of Energy <http://www.energy.gov.za/IRP/2010/I RP2010.pdf>.. 21. Some civil society groups have vociferously challenged the current World Bank-backed plan to build two new coal-fire power plants in South Africa. Earthlife Johannesburg in particular, has mounted a public relations campaign and is investigating legal options: Earthlife Africa <http://www.earthlife .org.za/?p1412384 accessed 31 August 2010>. 22. Lizzy Davies, Sarkozy attacks focus on economic growth (14 September 2009) The Guardian Online, online: The Guardian <www.guardian.co.uk/business/.../sar kozy-attacks-gdp-focus>.. 23. Time for government to act on electricity crisis (20 June 2011) Independent Online Business Report, online: IOL <http://www.iol.co.za/business/business-news/time-for-govt-to-act-onelectricity-crisis-1.1085722>. Brindaveni Naidoo, Cloud of uncertainty still hanging over SA renewables sector (21 June 2011) Engineering News, online: Engineering News < http://www.engineeringnews.co.za/art icle/renewable-energy-2011-06-21>.. Philip Martin Duguay was a visiting student at the University of Cape Town, Faculty of Law in 2011, and is the author of Wind power to the people: overcoming legal, policy and social barriers to wind energy development in South Africa published in the March 2011 edition of the Oxford University Press Journal for World Energy Law and Business. He is currently an energy policy analyst with the Government of the Northwest Territories in Canada. This article was adapted from an article originally published on the Legal Frontiers website: www.legalfrontiers.ca.
G Contact: Philip Martin Duguay

Faculty of Law, McGill University Montreal, QC, Canada Mobile: 438.878.5788 Website: www.legalfrontiers.ca/author/pduguay/

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Energy Management News

Eskom Open Innovation pilot project


Challenge 4: Seeking expertise and systems for integrated water and waste management Eskom seeks consultants and/ or technology to address improved water utilization and management for industrial processes. Responses from companies (small to large), academic researchers, other research institutes, venture capitalists, entrepreneurs, inventors and innovators are welcome.
G Contact: Kammy Dhaver-Young

skom has launched an Open Innovation Pilot Project and potential solvers will be able to register and access detailed information and the specific requirements for each challenge via the website www.openinnovation.eskom.co.za. Submissions can also take place via this website. The purpose of Open Innovation (OI) in the Eskom context is to engage external stakeholders in assisting with addressing some of Eskoms challenges. Eskom is collaborating with the Research Institute for Innovation and Sustainability (RIIS), a local innovation management company, and NineSigma, an American company that facilitates solving of challenges through an online global innovation community. NineSigma is represented locally by RIIS. The following four challenges have been launched on the local platform: Challenge 1: Towards a 10% reduction in residential energy consumption Eskom invites proposals for smart technologies that will reduce domestic energy consumption by 700 MW permanently. Challenge 2: Proactive selection of fallen electrical (power line) conductors Eskom invites proposals for technologies that will provide early detection of sagging, slipping, or fallen overhead conductors used for electricity distribution and delivery. Challenge 3: Seek experts for peer review of sustainability footprint technology to measure social, environmental and economic impacts of an electric utility on society Eskom seeks experts to participate in peer review of modelling and methodologies that consider the social, environmental and economic impact of power generation and delivery systems. This challenge will only become active after the Sustainability footprint report is released.

Eskom Innovation Tel: 011 800 4426 E-mail: innovation@eskom.co.za Website: www.openinnovation.eskom.co.za.

he Africa Initiative, a joint partnership between The Centre for International Governance Innovation (CIGI) and Makerere University (MAK), a research grants competition is now accepting new proposals for funding of up to $15 000 CAD. Future competitions may be announced in due course. Applicants are invited to submit proposals that are field-based and address substantive-policy relevant challenges facing African policy makers at national, regional, and global levels in one or more of the areas of conflict resolution, energy, food security, health, migration, and the cross-cutting theme of climate change. The Africa Initiative encourages proposals from relevant fields of physical sciences and social sciences. Priority will be given to African-based scholars, and early- to mid-career Canadian-based researchers. Applicants must have a postgraduate degree or be in the advanced stages of a doctoral program. While the Africa Initiative will give due consideration to any proposal consistent with the overall aim of this project, special consideration will be given to proposed research that: Aims to develop innovative approaches to addressing policy challenges in the Africa Initiatives thematic areas Seeks to collect data that can be used by policy-makers in Africa Attempts to inform both policy makers and academics Involves questions that are especially amenable to cross-national comparison. The grant application procedure including details regarding proposals submissions and the disbursement of grants is available on their website. The Africa Initiative looks forward to supporting this important research that builds knowledge and capacity on policy issues critical to the continent.
G Contact: The Africa Initiative

Proposals for research grants: Africa initiative

E-mail: airesearch@cigionline.org Website: www.africaportal.org/research

Energy Management News 11

City calls on its residents to save electricity


he City of Cape Town is calling on residential consumers to reduce their consumption of electricity. Highlighting that residential electricity consumption is responsible for some 43% of total electricity consumption in Cape Town, the City has launched a creative marketing campaign calling especially on those who fall in the mid-to high-income groups, and who use the most electricity, to reduce their consumption by between 25 to 40%. By means of a marketing campaign with the slogan Electricity is expensive. Saving is simple, the City has devised a practical checklist and developed an information-filled website to encourage residents to save. Alderman Clive Justus says, the Citys Mayoral Committee Member for Utility Services: Efficient use of electricity has become increasingly important in view of steeply rising electricity tariffs and the medium-term shortage of South Africas electricity supply. The need to reduce operating costs, the cost of inefficient energy use to the economy, the risk of future load shedding and ever increasing carbon emis-

sions all add up to the urgent need for a concerted effort to improve our electricity efficiency in Cape Town. The Citys Head of Energy and Climate Change, Sarah Ward, cited a number of reasons why the City is calling on residents to save electricity. Firstly, electricity tariffs are going up by about 20% in July this year. We have had cheap electricity in the past and people are not yet used to being energy efficient. A 25 to 40% reduction by mid-to-high-income households would make a considerable difference as residential electricity consumption is responsible for a massive 43% of the total electricity consumption in Cape Town (Commercial is 40% and Industrial 13%), said Ward. Ward also called on consumers to see the campaign as a real opportunity to save money. From 2010 to 2013 its likely that your electricity bill will more than double, or even triple maybe more with the biggest increases still to come. Saving electricity is about saving hard-earned Rands. The money that residents can save on electricity is money that can be spent on other things like a holiday, a solar hot water

Electricity consumption: mid-to-high income residential, Cape Town

heater or school fees. Saving electricity is also good for the Citys carbon footprint and good for the globe, she added. The City has spent considerable time researching what residents can do to save electricity. There are no cost actions, like turning the geyser thermostat down to 60C, which will enable residents to save at least 5% on their electricity bill. Investing less than R1 000 on an energy efficient showerhead and a geyser blanket will save more and investing in options like solar water heating and ceiling insulation will save the most. Doing all of these will save residents 50% or more on their electricity costs, while at the same time adding to the value of the property. Over the next three months, homeowners will receive electricity saving flyers together with their rates accounts. In addition, print and radio advertisements, presentations to community groups and exhibitions in shopping centres will encourage residents to save as will awareness posters at pre-paid electricity vendor outlets. The City also leads a range of other initiatives to encourage energy efficiency. An Energy Efficiency Forum has been set up for large commercial and industrial electricity consumers to provide managers of offices, shopping centres, hotels and other commercial and industrial buildings with practical knowledge on energy efficiency solutions. The City has developed Green Building Guidelines and is also working on a programme to support the mass implementation of solar water heaters. The Citys Youth Environmental School (YES) programme already reaches about 1 600 schools per year, and electricity saving worksheets for learners, a teachers guide and an electricity awareness play have been developed as part of the campaign. In addition, the Citys Smart Living programmes reach thousands of public and private sector companies and residents each year.

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Energy Management News


save both water and electricity without compromising your shower experience, and the saving pays back the investment within a few months. Insulate the geyser with a geyser blanket and insulate hot water pipes leading from the geyser to maximise heat retention. both on electricity consumption and on the carbon emissions of the metropole. Whilst the majority of our buildings were built in an era when electricity was cheap and plentiful, that era has now past. Current realities of scarcity of supply, and increased cost of electricity, demand from both the City and its citizens that they use this resource wisely, says Alderman Justus. These initiatives indicate the beginning of an era where the improvement in energy use of the Citys buildings will supplement the retrofit work to the Citys street and traffic lights, the installation of solar water heaters to the Citys clinics, nature reserve facilities and fire stations, and the residential electricity savings campaign, all aimed at ensuring that Cape Town is a low carbon city.
G Contact: Sarah Ward

The City of Cape Towns Ten Best Ways to save electricity at home are: NO-COST CHANGES Easy-to-do changes that are the foundation of Smart Living Turn your geyser temperature down to 60C Hot water accounts for almost 40% of your electricity bill. Turning down the thermostat by a degree or two will save you 5% on your electricity bill. In most cases, the thermostat is located in the little cover over the electrical element of the geyser. Switch off the electricity circuit at the mains, undo the cover, and turn down the thermostat. Or hire a plumber/electrician to help you. Use less hot water Take a short shower instead of a bath. Only fill the kettle with as much water as you need. Wash a full load of dishes, rather than one dish at a time. Wash clothing in cold water. Switch off equipment when not in use Turn appliances off at the wall rather than leaving them on standby as this can still draw about 6% or more electricity. Reduce pool pump operating hours Drop pool pump operating hours to 6 hours in summer and 4 hours in winter. Clean filters regularly, and consider a pool cover and turning off the pump entirely in winter. Reduce excessive heating or cooling Space heating in winter is a big power guzzler, and the same for summer cooling. Use oil heaters with thermostats and avoid under-floor heating. Wear warmer clothing. In summer use a fan rather than air-conditioning. LOW-COST OPTIONS Investing under R1 000 Simple, cost-effective improvements Install an efficient showerhead Cape Town water bylaws limit shower flow rates to no more than 10 litres per minute. To test this at home, hold a bucket under the showerhead for 12 seconds. If there is more than 2 litres in the bucket, then your showerhead is inefficient. A good, modern product will

Install efficient lighting Compact Fluorescent Lamps (CFLs) use six times less power than old incandescent bulbs, and last much longer. Note that CFLs contain small amounts of harmful chemicals, so its best to take them to safe drop off points at retailers like Woolworths or Pick n Pay. Of course, switching off lights in unoccupied rooms is an obvious way to save. INVEST-TO-SAVE OPTIONS Investments that create greater longterm savings Install a solar water heater. It uses the sun to heat up your water, saving 25% or more on your electricity bill. With rising electricity tariffs and subsidies from Eskom, the payback period is no more than 3.5 to 5 years. Insulate the ceiling Ceiling insulation can keep the home 5C warmer in winter, and 10C cooler in summer. More comfortable indoor temperatures mean less need for electrical heating and cooling, with savings of up to 65%. Insulating other parts of the house also helps (e.g. stopping heat loss through windows, walls or under doors), but the highest savings are from ceiling insulation. Public lighting, traffic lights and the Citys own large office buildings are being retrofitted to be more energy efficient. The City is currently undertaking energy efficiency retrofits of some of its largest buildings, namely Durbanville, Fezeka, Ottery and Plumstead Civic Centres. A reduction in energy use in these buildings ranging from 12% to 18% (depending on the building) is expected to be realised in coming years. An audit of the Citys flagship building, the Civic Centre, has been completed and a tender for the first phase of the energy efficiency intervention for that building is in preparation. The City has long recognised the importance of buildings as energy consuming infrastructure and their impact

Energy and Climate Change Unit City of Cape Town Tel: 021 487 2124 / 2200 Cell: 084 606 7177 Email: Sarah.Ward@capetown.gov.za Website: www.savingelectricity.org.za

Energy Management News 13

Southern Voices Capacity Building Programme


International Network for Sustainable Energy conditions for the increased use sustainable energy to increase access to energy. The programme is made by a consortium of five Danish NGOs, Climate Action Network and IIED. It is coordinated by CARE Denmark and funded by the Danish International Development Agency (DANIDA). INFORSE activities also include INFORSE-Africa, INFORSE-South Asia, INFORSEEurope, and the Danish INFORSE member Sustainable Energy. E-mail: inforse@inforse.org Website: www.climatecapacity.org

rom January 2011 to June 2013, INFORSE participates in the Southern Voices programme to increase the capacity of NGOs to work on climate policies. INFORSE East and Southern Africa is involved with the coordinator, Timothy Byakola, Climate development Initiative, Uganda, and in West Africa activities are coordinated by Djiminingue Nanaste, ENDA, Senegal and by Pierre Dmble, Mali Folkecenter. INFORSE will use the programme to: Increase the networking among NGOs that promote renewable energy and energy efficiency for access to energy. This is important for the necessary introduction of sustainable and affordable access to energy for all. The networking shall help increasing the knowledge as well as the advocacy capacity of the NGOs to promote the sustainable energy solutions. Collect and coordinate NGO positions on climate mitigation and how African people and countries can participate while reducing poverty and improve their development. Positions will be collected and further developed through 2011 before the UN-FCCC COP17 climate conference in Durban, South Africa (starting 28/11-11). Organise regional meetings of INFORSE members. Organise national activities in selected countries. Collect cases with good practices in promoting renewable energy and energy efficiency for increased energy access, both cases on policy initiatives and cases on actual better access to energy. The cases will be used for inspiration of NGOs as well as for advocating better

Why the media matters in a warming world: A guide for policymakers in the global south

G Contact: INFORSE

he Climate Change Media Partnership has published a briefing paper that recommends ways for policymakers to support a better class of climate change journalism that is relevant to local audiences, builds public awareness of the issues and contributes to improved policymaking. In summary, climate change journalism can protect people and promote sustainable development but only if it is accurate, timely and relevant. Strengthening the medias capacity to cover climate change can help countries to plan and implement domestic policies that work on the ground, while also meeting their international obligations. Policymakers have a huge role to play: by improving the medias access to locally relevant policy information; supporting journalists to report from rural areas and international meetings; engaging the media in policy and planning processes; and working to improve their own media literacy and ability to communicate clearly on climate change.
G Contact: Mike Shanahan

Press Officer International Institute for Environment and Development Tel: 44 (0) 207 388 2117 Fax: 44 (0) 207 388 2826 E-mail: mike.shanahan@iied.org Website: http://pubs.iied.org/G03120.html

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Energy Management News

Mthombo: A white elephant in the making


been put forward in public against Mthombo. Oil companies like BP have argued that there is already sufficient refining capacity in South Africa and a new refinery would be redundant. Others have raised the logistical problems associated with the Coega location. To transport the fuels to markets in Gauteng and other metros would require the construction of new pipelines or shipping the refined fuels to Durban to the new multi-product pipeline. More importantly, a new refinery would not help to wean South Africa off imported oil it would merely process additional crude imports to replace the small fraction of total liquid fuel consumption that is currently imported in refined form. This relates to the most serious problem with Mthombo: the future of global crude oil supplies. In its 2010 World Energy Outlook, the International Energy Agency confirmed that conventional oil production reached a peak in 2006 and is set to decline by around 4% per year from now on. Total liquid fuels production has increased, thanks to expanding deepwater and unconventional oil. But these sources have marginal production costs of $80 per barrel or more, and are thus helping to push up the price of oil on international markets. An emerging consensus is warning that global supplies of oil from all sources will begin to contract within the next few years. The amount of oil available on world export markets will decline even more rapidly as consumption in oil producing nations continues to grow. The result is that oil prices will rocket upwards, curbing demand to bring it in line with diminishing supply. The oil shock experiences of 1973, 1979 and 2008 all clearly showed how price spikes bring about global economic recessions. The power of demand destruction was demonstrated forcefully in South Africa in the recession of 2009, when the demand for all petroleum products fell by an average of 2.4%, while diesel consumption plummeted by 6.6%. The prognosis for the future is thus of a growing glut of global oil refining capacity as crude oil supplies dwindle. Multinational oil companies like BP and Shell have seen the writing on the wall, which explains why they have been selling downstream assets in subSaharan Africa. In the context of global oil decline, the only way a new refinery would make sense is if South Africa was guaranteed a sufficient source of crude oil imports at competitive prices. When Venezuelan President Hugo Chavez visited South Africa in 2008, indications were that PetroSA was intending to source crude oil from Venezuela, currently the worlds fourth largest oil exporter. But neither Chavez, nor any other oil producer, will be willing or able to give oil away at discount prices. So South African consumer demand for liquid fuels will be curbed by high prices whether a strategic alliance is formed or not. Moreover, when it comes to construction costs Mthombo would suffer the same fate as Eskoms two new coal-fired power stations. Cost escalation will be driven by both climbing energy prices and rising interest rates as central banks try to dampen inflation. The only way to avert a seriously damaging liquid fuels supply crisis is to invest in alternative transport systems that are more energy efficient and not reliant on liquid petroleum fuels. In their seminal book Transport Revolutions, Richard Gilbert and Anthony Perl argue convincingly that grid-connected vehicles (GCVs) are the best strategy for mitigating the impact of peak oil on transport and the economy. GCVs include electrified railways heavy and light as well as trams and more futuristic modular electric cars that can connect to the grid.

s the oil price has once again breached the psychological three-figure mark of $100 per barrel, security of oil supply is ascending on the national agenda. South Africas national oil company, PetroSA, has been pushing hard for Cabinet to approve its Project Mthombo, a new oil refinery to be built at Coega in the Eastern Cape. But it is now widely acknowledged that the world has effectively reached peak oil, the time when global oil supplies can no longer rise to match demand. In a future of declining oil supplies and rising prices, project Mthombo could become our countrys biggest white elephant one that we can ill afford. The idea for Mthombo arose from the Department of Energys 2007 Energy Security Master Plan, which recommended that a greater proportion of South Africas liquid fuels be produced domestically. Feasibility investigations for the proposed refinery were concluded in September 2009, and the Board of PetroSA last February approved the progression of the project to Front-End Engineering (FEED) studies, conditional on Ministerial approval. PetroSA hopes that Mthombo would come on stream by about 2015. With a capacity of 360 000 barrels per day, it would be the biggest refinery in Africa. According to the Department of Energys spokesperson, Bheki Khumalo, the projected cost of the mega-project was R110 million as of September 2010. PetroSAs main motivation for Mthombo is to boost security of supply in the face of an assumed continuation of growth in liquid fuel demand. It is also envisaged to supply other Southern African countries as their economies expand. Another reason is to produce better quality fuels, leading to cleaner air and improved health of citizens. However, several objections have

Energy Management News 15


GCVs will need extra electrical power, which should be generated from renewable energy sources like solar, wind and ocean power. Government needs to initiate a war-time style mobilisation to accelerate local production of renewable energy infrastructure, creating jobs in the process. Hopefully the Government will see the light and pick sensible mega-projects like the mooted solar park near Upington. Upgrading existing railways for freight and passengers should be a priority over an expensive new highspeed rail link between Durban and Gauteng. Energy efficiency both for liquid fuels and electricity must be promoted through awareness campaigns, regulatory standards and financial incentives. The promise of a sustainable future for our society depends on the choices made now. Citizens need to be aware of unfolding realities and hold their elected representatives to account. There is much we can do, but time is running out.
G Contact: Jeremy Wakeford

Fracking in the Karoo


for and against...

he subject of hydraulic fracturing, or fracking, for the exploration and production of shale gas in the Karoo has been well covered in the media as a potential game changer in the energy sector, with heated arguments both for and against. A debate was held in Midrand on 25 May, with diverse expert views from the following presenters: Presenters in favour of fracking: Prof. Philip Lloyd of the Cape Peninsula University of Technology (CPUT) Ivo Vegter, a well known opinion leader, journalist and writer in The Daily Maverick and other leading publications in South Africa Presenters against fracking: Dr. Anthony Turton, a well known water resource scientist, formerly at the CSIR, now professor in the Centre for Environmental Management at the University of the Free State (UFS) Dr. Chris Hartnady, formerly associate professor in the Department of Geological Sciences at UCT, now

technical director at Umvoto, with expertise in structural geology and tectonics in South and southern Africa The Chairman was Dr. Rod Crompton, a member of the board of the National Energy Regulator of South Africa (NERSA), responsible for regulating petroleum and gas pipelines. The debate covered: The geological aspects of the area Job creation, economic development and poverty alleviation Security of energy supply and opportunities for power generation, energy diversity and cleaner burning energy resources Investment and business opportunities, and technology risks Impacts on the Square Kilometre Array (SKA) project The old economy vs. the new economy; the stone-age vs. the spaceage; the resource-based economy vs. the knowledge-based economy Hydrocarbon-based energy vs. renewable energy Security of water supply and the impacts on the regions water resources Fracking chemicals and water pollution issues Waste-water storage, handling and processing Issues of CO2 emissions and climate change Environmental risks and dangers, and environmental protection issues Competition for land Alternative technologies and techniques.
G Contact: Chris Yelland

Chairman of the Association for the Study of Peak Oil South Africa and Research Director of the South African New Economics (SANE) Network E-mail: Jeremy@aspo.org.za Websites: ww.aspo.org.za and www.sane.org.za

Netmetering

reenCape initiative is a sector development agency set up by the Western Cape Province to look at the Green Economy.

Part of their work is looking at Netmetering. They were wondering if there was any research being done/already done on the impact of forgone municipal income for netmetering. If you push electricity back into the grid and run your meter backward this is tantamount to selling at the retail price, there will be a foregone income to the municipality from electricity that they would have sold to you. They are anticipating that this will be the major objection from National Treasury and were hoping someone had already looked at it.
G Contact: Michael Mulcahy

EE Publishers (Pty) Ltd E-mail: chris.yelland@ee.co.za

GreenCape initiative Tel: 021 811 0250 E-mail: mike@green-cape.co.za Website: www.green-cape.co.za

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Event Greening Forum becomes official


Certified Meeting Professional Network South Africa (CMP Network SA) International Festivals & Events Association (IFEA) Technical Production Services Association (TPSA) South African Roadies Association (SA Roadies) SA Tourism showed support for the EGF and its objectives by attending the launch and implementing green measures at the expo, including the use of renewable energy and conducting an eco-audit to measure the effectiveness of its event greening interventions.
G With acknowledgement to Bizcommi-

Energy Management News

he Event Greening Forum (EGF), which has been operating informally since 2009, has now become a Section 21 company and received support from eight MICE associations (meetings, incentives, conferences and exhibitions), enabling it to be effective in realising its mandate - to promote sustainable and ethical business practices in the South African events industry The EGF will encourage businesses to operate in a responsible manner by providing support, resources and training. Its focus will address the triple bottom line of sustainability: people, planet and prosperity. FOUNDING MEMBERS Exhibition & Event Association of Southern Africa (EXSA) Southern African Association for the Conference Industry (SAACI) Southern African Tourism Services Association (SATSA) Federated Hospitality Association of Southern Africa (Fedhasa)

Justin Hawes, MD of Scan Display, co-founded and co-chairs the forum with Grace Stead, one of the directors of icologie, a sustainability training and consultancy company. He says, The response from the associations has been good and everyone has demonstrated a strong appreciation for the importance of greening and a readiness to embrace it. Its official launch took place at SA Tourisms Meetings Africa 2011, which is a good fit for the EGF, as a large proportion of the MICE industry relates to business tourism and can benefit from taking steps to improve their sustainability.

unity.com Website: www.eventgreening.co.za

The founding members

E
to 1. 2. 3.

Wind sector expert required

RM are looking for a wind sector expert, who is based in South Africa, to support their verification /validation teams on Clean Development Mechanism (CDM) projects. Wind sector experts working on CDM validations or verifications are required have one of the following: One years direct work experience in the field Related experience in project management/consultancy and successful completion of a relevant technical course/training programme Experience working on four validation/verification activities (twice as an assessor-under-training accompanying a qualified validator/verifier then twice under observation by a qualified validator/verifier/technical expert) and successful completion of a relevant technical course/training programme.

Experts working on verifications must also provide evidence of knowledge or a prior professional qualification in one of the following areas: a) Instrumentation and metrological /calibration expertise b) Management system (e.g. ISO 9001, ISO 14001, ISO 17025).
G Contact: Rich Purser

ERM Cell: +27 82 823 4173 E-mail: richard.purser@erm.com

Energy Management News 17

3rd Annual Nuclear Forum in South Africa

he 3rd Annual Nuclear Forum in South Africa with the theme: Nuclear Power - Accelerated Progress was held on 19 May 2011 at the Emperors Palace, Johannesburg. This one-day conference was supported and endorsed by the Nuclear Industry Association of South Africa (NIASA), and was sponsored by Areva. BACKGROUND World electricity consumption has increased dramatically over the last number of years. The future outlook is that world electricity demand will continue to increase at a rapid rate. This trend is even more true in Africa, where the levels of electrification in some countries are as low as 5%. South Africa has a declared intention of doubling electricity production in the near future. With world sentiment aiming to curtail the use of fossil fuels, the only electrical energy source that has the potential to provide major reliable base-load electricity is nuclear. Traditionally the capital cost of nuclear power is considered to be higher than that for fossil fuels. However, the question needs to be asked whether the higher nuclear capital cost is a refection of genuine necessity, or whether it is significantly due to legislation resulting from public perceptions that then have the consequence of increasing construction costs. We need to examine these factors, to establish to what degree we can reduce the capital cost of nuclear power in South Africa. Public misperception concerning nuclear power also extends to issues such as the handling and storage of nuclear waste. Such misperceptions exert a powerful public opinion force on government approach to policy. The public needs to be accurately informed on such nuclear issues, so as to facilitate open and meaningful public participation in energy provision discussion. At the 3rd Annual Nuclear Forum

these issues of approach to construction, and approach to public perception were examined and discussed. The damage suffered at one nuclear power plant in Japan, as a result of their tragic earthquake and resulting tsunami, underlines the need for a powerful and reasoned approach to the important issue of nuclear power.

China: Experience and Prospects , by a nuclear representative from China


Project Manager, Siyenza Tel: 011 463-9184 Fax: 011 463-8432 Email candice@siyenza.za.com

G Contact: Candice Scorer

The programme included key speakers addressing: Domestic construction of nuclear power plants, by Dr. Xolani Mkhwanazi, chairman, BHP Billiton SA possesses nuclear technology and knowhow, by Prof. Philip Lloyd, Energy Institute Cape Peninsula University of Technology Do the numbers produce construction or confusion, by Pali Lehohla, statistician general Economic reality of energy price and cost, by Leon Louw, executive director, Free Market Foundation Nuclear and renewable power are not competitors, by Dr. Zeblon Vilakazi, Director, iThemba Labs What Happened at Fukushima, by Dr. Ramatsemela Masango, group executive - nuclear compliance, Necsa. The Japanese experience and public perception, by Andrew Kenny, Energy Policy Consultant Radio-isotope production, by Dr. Van Zyl de Villiers, group executive - Strategy, Necsa Shape of a national nuclear network, by Prof. Eben Mulder, director, Post Graduate School of Nuclear Science & Engineering, University of the North West 14h45: Safety, jobs, costs, by Dr. Yves Guenon, managing director, Areva

18

Energy Management News

Cape Town gets Green Expo

hree City Events has announced the inaugural launch of its fully comprehensive greening expo, The Green Expo, being held from 1214 August 2011 at the Cape Town International Convention Centre (CTICC). It will be an accessible exhibition, focusing on sustainability issues, for both homeowners and business people. The Friday has been designed as a trade expo while the Saturday and Sunday are open to the public. The organisers have been actively involved in the greening of the event industry and had an active involvement in the newly formed Event Greening Forum. Recent events have had the carbon footprint minimised with the balance being offset with renewable energy certificates, making the expos carbon neutral. In addition, it has supported local small businesses as suppliers and exhibitors, wherever possible, to support the principles of the triple bottom line. The company has a successful track record in exhibition management; it manages the award-winning SABC Education Baba Indaba, has won the EXSA award for Best Consumer Exhibition of the Year, four times in the last five years as well as a gold award for the Most Memorable Event in 2009. The company has also been awarded the Top Women award for gender empowerment. The expo is a unique opportunity for businesses and organisations to publicise their products to the more than 15 000 visitors anticipated. Consumers and businesses must work together to make a favourable impact on the planet through their personal and professional lives, says Natalie Naude, organiser and MD of Three City Events. Therefore, The Green Expo is aimed primarily at the consumer but with a significant business appeal. Visitors will be attracted to the expo to witness new practical methods to going green; to look for value in their existing businesses and scout for new business opportunities and to listen to

The website will provide an interactive resource containing information and education on sustainability issues as well as promoting exhibitors and suppliers of green technology.
G With acknowledgements to Bizcom-

munty.com Website: www.thegreenexpo.co.za

talks by professional speakers on the life choice issues facing us today. Businesses involved in reducing carbon emissions, energy saving technologies, sustainable business practices, organic products, recycling and eco-friendly products are strongly encouraged to participate.

CPUT offers petroleum course

he Energy Institute of the Cape Peninsula University of Technology is to offer an introductory course to the petroleum industry from 28 August to 2 September 2011. The need for such a course was identified after discussions with the Department of Energy. There are no university courses devoted to the whole industry. New entrants to the industry have difficulty in getting to grips with the extent of the industry and its ramifications. The petroleum companies are global players, and the oil majors have been among the leading companies in the Fortune 500 list for the past 100 years. Some of the majors have annual revenues larger than South Africas GDP. The petroleum industry is the largest single contributor to our national exchequer. To satisfy the need, the CPUT has structured a course with international and local lecturers knowledgeable about the industry. Prof Jean-Pierre Favennec of the French IFP, author of several books on the industry, will take the lead. Local experts include Prof Philip Lloyd of the Energy Institute and Prof Anton Eberhard of UCTs Graduate School of Business, with additional input from some members of the industry in South Africa. A tour of a refinery is included. The course will be held at the Townhouse Conference Centre in Cape Town. It will be five intensive days, so residence in the conference centre is encouraged. Thus participants need not waste time travelling, and they can start to forge those networks that are essential to the smooth running of the industry. To foster this, a very favourable daily rate has been negotiated at the hotel.
Cape Peninsula University of Technology Tel: 021 460 3658 E-mail deklerka@cput.ac.za

G Contact: Anneke de Klerk

Energy events 2011


AUGUST 2011 10 12 3 DAY MBA IN CLEAN TECHNOLOGY Johannesburg, South Africa Contact: Claire Bell, Terrapin Tel: +27 11 516 4948 E-mails: terrapin@za.terrapinnmedia.com and claire.bell@terrapinn.co.za 16 17 WATER RESOURCE CONFERENCE & EXHIBITION Emperors Palace, Gauteng, South Africa E-mail: info@waterresource.co.za Website: www.waterresource.co.za 22 24 SECOND AFRICA CLIMATE CHANGE COMMUNICATION CONFERENCE Kampala, Uganda Contact: Mr. Patrick Luganda, Conference Chair, NECJOGHA - The Network of Climate Journalists in the Greater Horn of Africa, Musisi Road Bugoba Zone, Off Jinja-Kampala Highway, Block 105, Plot 769 Seeta, Kampala Uganda Tel: +256 7528 14134 E-mails: farmingnews@yahoo.co.uk and patrick_luganda@yahoo.com 23 25 CAPE TOWN EXPO FOR YOUNG SCIENTISTS Good Hope Centre, Sir Lowry Road, Cape Town, South Africa Contact: Brian Cox and Nicole Masureik, Judging Sub-Committee, Eskom Cape Town Expo for Young Scientists Fax: 086 607 0225 E-mail: ctjudges@gmail.com Websites: www.exposcience.co.za and www.expo.wcape.school.za 24 - 25 ENERGY MANAGEMENT SYSTEM IMPLEMENTATION COURSE Emperors Palace, Gauteng, South Africa Contact: Christina den Heijer Cell: +27 (0) 82 334 0923 Fax: +27 (0) 18 294 7174 E-mail: christina@eventstraining.co.za Bianca van der Merwe Cell: +27 (0) 76 197 9293 Fax: +27 (0) 18 294 7174 E-mail: bianca@eventstraining.co.za 28 - 2 September INTRODUCTORY PETROLEUM COURSE Townhouse Conference Centre, Cape Town, South Africa Contact: Anneke de Klerk Cape Peninsula University of Technology Tel: 021 460 3658 E-mail: deklerka@cput.ac.za SEPTEMBER 2011 20 21 TRANSPORT & MOBILITY CONFERENCE & EXHIBITION Emperors Palace, Gauteng, South Africa Tel: 021 447 4733 E-mail: info@transportandmobility.co.za Website: www.transportandmobility.co.za 20 23 SOLARPACES 2011 Granada, Spain Website: www.solarpaces2011.org 3 DAY MBA IN POWER & ELECTRICITY, London, United Kingdom Contact: Karen Forster, Terrapin Tel: +44 207 608 7030 E-mail: karen.forster@terrapin.com 28 29 WORLD BIOFUELS MARKETS BRAZIL Sao Paulo, Brazil Contact: Miss Claire Poole, World Biofuels Markets Event Director, Green Power Conferences Tel: +44 (0) 203 355 4227 Fax: +44 (0) 207 900 1853 E-mail: Claire.poole@greenpowerconferences.com Websites: www.greenpowerconferences.com and www.worldbiofuelsmarkets.com/brazil 17 - 18

Energy Management News 19

OCTOBER 2011 VIRIDIS AFRICA 2011 Johannesburg, South Africa Contact: Suza Adam, Spindle Communications cc, PO Box 516, Auckland Park 2006 Tel: 011 880 0364 Fax: 011 768 3697 E-mail: suza.adam@spindlecommunications.com Websites: www.virisafrica.com and www.spindlecommunications.com 24 25 ENERGY MANAGEMENT SYSTEM IMPLEMENTATION COURSE Emperors Palace, Gauteng, South Africa Contact: Christina den Heijer Cell: +27 (0) 82 334 0923 Fax: +27 (0) 18 294 7174 E-mail: christina@eventstraining.co.za Bianca van der Merwe Cell: +27 (0) 76 197 9293 Fax: +27 (0) 18 294 7174 E-mail: bianca@eventstraining.co.za 26 - 28 CLIMATE CHANGE CLEAN DEVELOPMENT MECHANISM Emperors Palace, Gauteng, South Africa Contact: Christina den Heijer Cell: +27 (0) 82 334 0923 Fax: +27 (0) 18 294 7174 E-mail: christina@eventstraining.co.za Bianca van der Merwe Cell: +27 (0) 76 197 9293 Fax: +27 (0) 18 294 7174 E-mail: bianca@eventstraining.co.za

Visit www.erc.uct.ac.za for further events and details

The newsletter is published quarterly by the Energy Research Centre (ERC) of the University of Cape Town. (ERC is an amalgamation in 2004 of two organisations at the University: the former Energy Research Institute and the Energy and Development Research Centre.) Energy Management News is available free of charge. The articles do not necessarily reflect the views of the editor or of ERC. Enquiries, comments, articles, and information on energy events are welcome, and should be sent to: Richard Drummond Energy Research Centre University of Cape Town Private Bag Rondebosch 7701 South Africa. Tel: 021 650 3894 Fax: 021 650 2830 E-mail: richard.drummond@uct.ac.za

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The JESA is a successful vehicle for the dissemination of information on the latest results and activities in the Southern African energy field, publicising results achieved and stimulating future activities. The potential impact in terms of distribution is the whole of sub-Saharan Africa. It covers matters of local and regional interest as opposed to the internationally high technology content of other journals serving energy interests. It is the intention to keep the subscription rate relatively low to allow as many people as possible to have access to the JESA. ANNUAL SUBSCRIPTION RATES (FOUR ISSUES) Individuals (Africa): R160 (single copy R51) Individuals (beyond Africa): US$109 (single copy US$39) Corporate (Africa): R321 (single copy R103) Corporate (beyond Africa): US$218 (single copy US$77) Cost includes VAT and airmail postage. Cheques should be made payable to the University of Cape Town and sent to the address given below. Contact: Ann Steiner, Energy Research Centre, University of Cape Town, Private Bag, Rondebosch 7701, South Africa. Tel: 021 650 4646 Fax: 021 650 2830 E-mail: ann.steiner@uct.ac.za