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Standard Offer Brochure

www.eskom.co.za/idm

Table of Contents
Creating Energy-Saving Partnerships Calculating the Standard Offer Rebate Qualifying Projects Approved Technologies LED Downlights Energy-Efficient Lighting Systems Building Management Systems Electrical Hot Water Systems Heat Pumps Solar Water Heaters Process Optimisation Small Scale Renewable Energy Solutions Payment Structure Measurement and Verification Application Process Customer Model Information 4 5 5 6 7 8 9 9 10 10 11 12 13-14 15 17-18 19-20 21

Creating Energy Saving Partnerships

Effective, sustainable, electricity savings can considerably reduce the load on South Africas electricity grid. However, to succeed, Eskom requires the support and partnership of the commercial, agricultural and industrial sectors. Putting weight behind these partnerships has seen Eskom introducing its Standard Offer energy efficiency programme, which is designed to provide significant financial incentives to companies that reduce electricity demand through the introduction of appropriate and approved energy-efficient technologies. The Standard Offer Programmes objectives are to: Encourage large commercial, agricultural and industrial energy consumers to improve energy efficiency between the hours of 6am and 10pm Monday to Friday every week Provide opportunities for any energy consumer, Project Developer or Energy Services Company (ESCo) to investigate and propose projects to Eskom Provide support for parties undertaking projects through a rebate system for projects that produce verifiable energy savings of between 50kW and 5MW Ensure that the energy efficiency projects are sustainable by paying the total estimated rebate over a period of three years.

Calculating the Standard Offer Rebate

The basis used by Eskom to calculate the rebate is a pre-determined rate in cents per kilowatt hour (c/kWh) for the implementation of approved technologies (subject to independent verification by an approved independent Measurement and Verification M&V - organisation).

Qualifying Projects
In order to qualify for the Standard Offer Programme, projects need to achieve a minimum saving of 50kW and comply with the Eskom vendor registration requirements: Energy consumers, Project Developers or ESCos must have a current tax clearance certificate and complete documentation Energy-efficient technologies must be part of the published, approved, Standard Offer list Savings must be measurable and verifiable by an independent professional organisation Purchasing, installation and maintenance of the M&V equipment must be undertaken by the customer, Project Developer or ESCo Old technology must be safely disposed of.

Approved Technologies
In order to meet the objectives of Standard Offer programme participants, the approved technologies are diverse and include: LED technologies Energy-efficient lighting systems Building management systems Hot water systems Residential heat pumps Industrial and commercial Solar Water Heating (SWH) systems Process optimisation Small-scale demand side renewable energy solutions. More information on each technology, and Eskoms approach to qualifying projects, are listed as follows:

Energy-Efficient Lighting Systems

Incandescent lightbulbs must be replaced with Compact Fluorescent Lamps (CFLs), and old fluorescent (T12) tubes with T8 and T5 fluorescent tubes. Low wattage downlights, daylight sensors for external and high mast lights, light sensitive passive infrared sensors and dimmers can be used where appropriate.

LED Downlights
Light Emitting Diode (LED) downlights provide an efficient solution in terms of lumens versus watts. LEDs are most commonly used in the middle and upper residential income sectors and commercial sectors (such as hotels and offices) in South Africa. Eskoms approach: In the commercial and industrial markets, Standard Offer mechanisms will apply to mass replacement and sustainability of LED downlights. To qualify, they must comply to specification: 240-41679717, (Downlights Lamp Technical Specification for General Lighting Services), the technical data specification sheet; a Letter of Authority (LOA), where applicable, and valid test reports by an independent recognised test laboratory based on SANS/IEC testing, performance and safety standards.

Building Management Systems

The key areas for these systems are in the control of Heating, Ventilation and Air-Conditioning (HVAC) through appropriate systems. Some suggested changes are: - Optimising chillers to increase coefficient of performance (COP) - Using heat pumps for water and space heating - Installing Variable Speed Drives to control HVAC units - Replacing aluminium and steel pipes with copper pipes - Using sensors to monitor temperature and thermostats to switch systems on and off.

Heat Pumps
Use of residential heat pumps offer major benefits, including: - The ability to convert one unit of electrical energy into nearly three units of thermal energy - Potential maximum savings of 67% over a conventional hot water geyser These benefits and savings are significant, as a conventional (electric element) geyser will use three units of electrical energy to produce three units of thermal energy.

Electrical Hot Water Systems

Industrial heat pumps offer major benefits, including: - Little energy usage to produce heat - The only electricity used is to drive a compressor/pump which circulates the refrigerant fluid - Savings of up to 67% of the electricity used by a conventional hot water geyser - Energy-efficient shower heads, control systems and insulation also fall into this category.

Solar Water Heaters

Four types of solar water heating are considered under the Standard Offer Programme: Integral systems Close coupled systems Separate storage systems Pre-heating systems.

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Small-Scale Demand Side Renewable Energy Solutions

The programme offers funding for the introduction of small-scale demand side renewable energy solutions limited in size to a maximum 1MW installed peak capacity, produced from zero or low carbon source technologies, and derived from naturally regenerative or practically inexhaustible resources, including: Biomass waste/residue Heat (geothermal, solar, thermal gradient, ground source heat) Moving water (hydro, tidal and wave power) Wind energy

Process Optimisation
Industrial process optimisation involves using appropriate technologies to achieve greater efficiency per product unit produced. Most common technologies are: - Variable Frequency Drives (VFDs) on fans used mainly for ventilation - Compressed air in the mining and manufacturing fields - Fans with aerodynamically-efficient vanes and pitch controls - Energy-efficient motors, rated at less than 22kW for use on pumps, ventilation fans and hydraulics.

Municipal solid waste. Introduced in consultation with NERSA as a pilot project with total capacity achieved during this phase limited to 10MW, small-scale renewable energy solutions allow Eskom to further broaden the scope of optimal energy usage in South Africa through its range of energy efficiency rebate programmes.

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Payment Structure
The main feature of each Standard Offer Programme contract is payment of 70% of the measured and verified savings after commissioning and verification, with the outstanding balance paid at a rate of three payments of 10% each per year, for three years; adjustments are made to the final payments to compensate for any anticipated savings not delivered.

Initial payment year 0

Performance payment year 1

Performance payment year 2

Performance payment year 3

70% of the initial purchase price on commissioning based on verified savings

10% of annual adjusted purchase price considering actual savings

10% of annual adjusted purchase price considering actual savings

10% of annual adjusted purchase price considering actual savings

To work out the initial purchase price the following calculation can be used: Initial purchase price = Measure Acceptance Date (MAD) based energy savings (kWh/pa) x fixed rate (c/kWh) 100 x 3 years.

Energy Rate = =

Nersa Benchmark Energy Saved during 3 years Nersa Benchmark

1kW

16 hours

5 days week

52 weeks 3 years
[c/kWh]

Nersa Benchmark 12480

Figure 1: This formula will be used to calculate the energy rate associated with each technology class.

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Measurement and Verification

An independent Measurement and Verification (M&V) professional must evaluate and confirm any energy savings using Eskom guidelines, procedures and the SATS 50010:2010 standard before any payment is made. Once the initial project evaluation has been completed and the M&V scope and plan have been finalised between parties, the appointed M&V team will be able to provide the Project Developer, ESCo or customer with the detailed metering specifications to purchase and install the metering equipment for the development of the projects present consumption baseline. The purchasing, installation and maintenance of M&V equipment is managed by the Project Developer, ESCo or customer; this fast tracks the process and allows them full control over the project plan, and the ability to better manage and ensure timeous procurement and installation on site.

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Application Process
Customers may be supported by an Energy Services Company (ESCo) or Project Developer in the application process (in which case a few additional steps may be required):

Formulate project in response to published offer

Customer and ESCo sign letter of intent

Submit application for progress payment

Submit 3 annual payment requests with M&V reports

No

per ESCo/Project Develo

Submit vendor registration and Standard Offer Programme application

Formulate a preliminary Measurement and Verification (M&V) plan

Wait for acceptance

Dispose old product

Participate in M&V Scope and Plan definition. Supply and install M&V equipment

Agree and Sign off on M&V Baseline

Sign Standard Offer contract

Implement project

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Customer Model
Country wide support Eskoms advisory teams are located conveniently across the country, to provide industrial, commercial, agricultural and residential customers, large and small, with close and easy access to energy advisory services. To assist customers to locate their closest regional Energy Advisor, refer to the table below. Energy Advisors can assist with techniques and technologies that are available for the purpose of saving energy. To log a call, customers can also call the Eskom Customer Contact Centre on 08600-ESKOM (37566). Alternatively visit the Integrated Demand Management website on www.eskom.co.za/idm
Eastern region Southern region

Eastern Cape region (including Port Elizabeth and East London including Butterworth, East London, King Williamstown, Adelaide, Albany, Alexandria, Alice, Grahamstown, Humansdorp, Joubertina, Kirkwood, Port Elizabeth, Aliwal North, Cradock, Graaff-Reinet, Lady Frere, Queenstown, Elliot, Lusikisiki, Mthatha North, Mthatha South KwaZulu-Natal Free State Province, Ekurhuleni (including East Rand, Gauteng) Frances Baard District Municipal area (including Kimberley), Pixley ka Seme District Municipal area (including De Aar, Colesberg), Siyanda District Municipal area (including Postmasburg) in the Northern Cape. Johannesburg, Midrand, Sandton, Randburg, Roodepoort, Krugersdorp, Randfontein, Carletonville, Westonaria, Fochville,Vanderbijlpark, Vereeniging, Potchefstroom, Klersdorp, Mmabatho,Vryburg. Pretoria, Centurion, Rustenburg, Mpumalanga and Limpopo.

Rene de Kock

rene.dekock@eskom.co.za

Clive Nicosia

clive.nicosia@eskom.co.za

North West region

Barney Kakora

kakorab@eskom.co.za

Eskom region office

Areas covered

Contact person

E-mail address

Western Cape region

Entire Western and Northern Cape (excluded are Frances Baard District Municipal area including Kimberley), Pixley ka Seme District Municipal area (including De Aar, Colesberg), Siyanda District Municipal area (including Postmasburg) in the Northern Cape.

Central region Wayne Fortuin wayne.fortuin@eskom.co.za Northern region

Arend Louw

arend.louw@eskom.co.za

Victor Martins

victor.martins@eskom.co.za

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Information
To find out more about the Standard Offer energy efficiency rebate programme; apply; or obtain present tables of applicable payments and appropriate mechanisms for calculating potential savings that can be achieved on a project and their value, please contact:
Eskom Contact Centre on 08600-ESKOM (37566) or visit www.eskom.co.za/idm

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Issued by Eskom Integrated Demand Management August 2012