Cases On Energy Efficiency Financing Conference

Energy Efficiency Projects In Industry

Andrew Etzinger

Senior General Manager Integrated Demand Management

Eskom

Opportunities to improve efficiency is typically sought where electricity consumption is highest

Source: as reported in the Eskom 2011 Integrated report) 2012 USERS CONFERENCE | AFRICA 2

Mining 18%

Industry 49%

Commerce 10%

Transport 2%

Agriculture 4%

Residential 17%

Energy Consumption

Mining 14%

Industry 35%

Commerce 10%

Transport 2%

Agriculture 4%

Residential 35%

Demand

Industrial Commercial /

Agricultural

Residential

ESCO

Performance

Contracting

Standard Offer / SOP

FLEX

Standard Product /

Aggregated SPP

Residential Mass Roll-

out

SWH / HP Rebate

Other Mass Rollout

IDM solutions sector coverage

Industrial Process Optimisation, Fans

Compressed Air, Shower Heads, Lighting

Process Optimisation, Lighting

Heat Pumps, HVAC etc.

Lighting, Hot Water Systems,

Solar , Process Optimisation, Renewables

Lighting, Shower Heads,

Industrial Heat Pumps

HP & LP Solar Water

Heaters, Heat Pumps

CFL Sustainability and

Fill-ins

“Mixed bag” of

technologies

3

Customised incentive programmes have been developed and implemented for

each market, based on unique market characteristics

The Integrated Demand Management programme promotes efficient energy use across all sectors and activities

2013/06/12 4

Efficient lighting

Water heating

Kitchen appliances

Household appliances

Pool pumps

Power Alert

Efficient lighting

Water heating

Heating, ventilation,

Air conditioning

(HVAC)

Efficient motors

Building Management

Systems

Data centres

Pumping

Process optimsation

Compressed air

Efficiency motors and

variable speed drives

HVAC

Efficient lighting

Demand response

5

Supplier Development and Localisation (SD&L)

Increasing the skill base (number and skill level) of South African workers in areas relevant to the energy sector and where there is a national scarcity of skills

Utilisation of Eskom and suppliers’ spend to develop South African based suppliers relevant to the energy sector (focusing primarily on BBB-EE Black Owned and youth owned suppliers)

Utilisation of Eskom and suppliers’ spend to foster the establishment of new competitive industries in the energy sector

Creation of new jobs by suppliers as a direct result of Eskom business

Providing a platform to develop emerging suppliers, and further contribution to local developmental opportunities for national and international suppliers

Skills

Development

Local content

Industrialisation

Employment

and job creation

Supplier

Development

5

Since inception in 2004, the IDM programme has established capacity (negawatts) equivalent to that of an average power station

2013/06/12 6

0

500

1000

1500

2000

2500

3000

3500

4000

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

Cumulative Demand Savings (MW)

2012/13

1 Power Station (6 x 600MW units)

2009/10

4 Units

2007/08

~2 units

2004/05

10% unit

Breakdown of savings since inception By IDM Sector

Since inception of IDM – 2,714MW (76%) of the savings verified have

come from the Residential sector

Residential & Munics

2,714MW76%

Industrial & Mining

625MW17%

Commercial228MW

6%

Agriculture21MW

1%

Breakdown of savings for 2013 financial year By IDM Sector

Whilst the Residential sector still contributed the majority of demand

savings (376MW – 64%) for the 2013 financial year, the Commercial sector

is making a bigger contribution (103MW -17%)

Residential & Munics376MW

64%

Industrial & Mining

105MW18%

Commercial103MW

17%

Agriculture7MW1%

Savings from the Commercial sector have increased significantly in the 2013 financial

year due to the funding mechanism introduced in the past 2 years to stimulate this

market

Past 3 years - contribution to demand savings By IDM Sector

0

100

200

300

400

Residential & Munics Industrial & Mining Commercial Agriculture

Pe

ak

De

ma

nd

Sa

vin

gs

(M

W)

FY 2011 FY 2012 FY 2013

Breakdown of savings for 2013 financial year By IDM Funding Mechanism

Residential Mass Rollout was the largest contributor to IDM’s demand

savings (178MW) in the 2013 financial year

Residential Mass Rollout178MW

30%

Mass Roll Out171MW

29%

ESCo Model107MW

18%

Performance Contracting

85MW15%

Std Rebate26MW

4%

Standard Product15MW

3%

Standard Offer8MW1%

DoE SWH Programme

1MW0%

Standard Offer Uptake Project Registrations

413

2132

41

68

99

144

200

245

0

200

400

600

800

0

60

120

180

240

300Q

2

Q3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY 2011 FY 2012 FY 2013

Dem

an

d (

MW

) &

En

reg

y (

GW

h)

Sav

ing

s

No

. o

f p

roje

cts

No. Of Projects Demand Savings (MW) Energy Savings (GWh)

YTD FY 2013 177 projects registered - demand savings = 88.4MW & energy savings = 344GWhSince inception (Oct 2011) 245 projects registered - demand savings = 118.1MW & energy savings = 478.6GWh

Standard Product Uptake Project Registrations

2 36228

516

926

1701

2962

3953

4883

0

100

200

300

400

500

600

0

1000

2000

3000

4000

5000

6000

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 2011 FY 2012 FY 2013

Dem

an

d (

MW

) &

En

erg

y (

GW

h)

Sav

ing

s

No

. o

f p

roje

cts

No. Of Projects Contracted MW Calc Annualised Energy Savings (GWh)

YTD FY 2013 3957 projects registered - demand savings = 97.4MW & energy savings = 442.2GWhSince inception (Jan 2012) 4883 projects registered - demand savings = 122.7MW & energy savings = 555GWh

Regulatory Issues : MYPD3

13

• NERSA determined on the Eskom IDM submission for MYPD3

– NERSA approved R5,183m of the R13,090m Eskom requested

– IDM needs to deliver 89% of the submitted GWh energy savings target, with only

40% of the applied for funding allowed

– The benchmark rate reduced from R5.25m/MW to R3.52m/MW (R7.57m/MW

applied for)

– Technologies such as Solar Water Heating and Heat Pumps were not supported

– Focus on the large customer market reduced due to their ability to self-fund

• Eskom will continue to engage NERSA on:

– Proportionality of reduction in rebate rates and savings targets

– Strategic approach to ensuring a sustainable energy efficiency market

– Decision implications to the ability to support Security of Supply

– Reasoning and implications of categorising savings per technology and the

exclusion of certain markets and technologies

– Continuity of the Small Scale Renewables Programme

Future Focus Areas

• Secure the funding requirements for the base IDM plan as well as the RMR project

to ensure IDM supports security of supply.

• Find way to optimise funding of IDM to increase MW yield per investment –

collaborative effort with banks and financial institutions.

• Engage stakeholders to clarify role of Eskom in IDM, specifically during the system

constrained period, as a key lever to keep the lights on.

• Develop internal processes and capacity to effectively deliver on the Residential Mass

Roll-out programme.

• Sign up the top 500 customers for incentivised demand response.

• Implement the government funded Solar Water Heating programme– optimise the

interface with DoE, specifically relating to the identification and prioritisation of projects.

• Develop automated processes and systems for IDM solutions to enhance auditability

and controls.

• Expedite mobilisation of the Internal Energy Efficiency Programme to ensure timeous

delivery in 2013/14.

Industrial Projects: Case studies

15

Chilled water is needed to cool underground working

environment through Bulk Air Coolers (BAC) and

underground process water.

Cooling systems include auxiliaries equipment such as:

i) pre-cooling pumps, fans, motors,

ii) evaporator pumps, motors,

iii) condenser pumps, fans, motors and

iv) BAC pumps, fans, motors, etc.

A Real-time Energy Management System for Cooling

Auxiliaries, simulate, optimise and control the complex

network of cooling system auxiliaries to match cooling

demand.

Optimised control of cooling auxiliaries = reduction in

wasted cooling energy = electrical power saving.

1. Energy Efficiency on Cooling Auxiliaries(CA)

16

Case study 1: Kopanang-CA Project

17

• Project successfully completed

• 12 month implementation period

• Average Weekday Impact (average savings over 24

hour period)= 3.126 MW

2.Energy Efficiency Water Supply Optimisation(WSO)

Mines uses water for cooling, drilling, cleaning, etc.

Intricate underground water reticulation networks supply the working levels.

A Real-time Energy Management System for Water Supply Optimisation, control valves

to reduce water demand.

Optimised control of water demand = less water used = less pumping = electrical power

saving.

18

Case study 2: Kusasalethu-WSO project

• Project successfully completed

• 12 month implementation period

• Average Weekday Impact ( average

savings over 24 hour period)= 3.152 MW

19

3: Peak Clipping: Production Line Optimisation

Elements of a Cement Production Line include:

Real-time Energy Systems for Production Lines, simulate, optimise and control

this complex production line process.

Optimised control of a production line = minimum electricity costs = maximum load

reduction.

20

Case study 3: Ulco -Production Line Optimisation (Peak Clip)

• Project successfully completed

• 14 month implementation period

• Evening Peak demand reduction = 2.7MW

21

Load reduction will be achieved by simulating and

predicting demand, combined with automatic control

of compressors, compressor blow off valves,

compressor guide vanes and other compressor

components and equipment. This is done while

maintaining necessary air flows and pressures.

A Real-time Energy Management for Optimised Air

Networks will account for all constraints such as

maintenance schedules, equipment limits, equipment

availability, production needs, safety, health, etc.

The system monitors, simulates, optimises and

controls all equipment of the compressed air supply

and demand system.

4: Energy Efficiency :Optimisation of Air Networks

22

Case study 4: Rustenburg Platinum Mine: OAN

• Project successfully completed

• 12 month implementation period

• Average Weekday Impact ( average savings over

24 hour period)= 1.508 MW 23

5. Energy Efficiency: Composite Fibre Fans

• The fan is manufactured making use of various materials ranging from

white cast irons to glass fibre.

• Depending on the environment, the combinations of materials used may

be varied to suit the environment in which it will operate.

• Some of the characteristics of the fan beside energy efficiency include:

-Light weight and stronger than steel fans.

-Increased total “Jet Throw” while maintaining the same air flow rate

and pressure.(“Jet Throw” - distance from physical fan to end point).

5. Savings- Composite Fans

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00

Eff

icie

ncy %

SH

AF

T P

OW

ER

(kW

)

VOLUME FLOW m^3/s

Steel 45 kW Axial Fan Vs Composite Axial Fan

Composite Fan Power

Steel Fan Power

Composiite Fiber Fan Eff

Steel Axial Fan Eff

A

B

The Best Efficiency Point (BEP) of the existing fans was used as the baseline.

At the BEP point : Steel fans power (Point A) = 48.1 kW/fan

Composite fans power (Point B) = 31.1 kW/fan

Power savings = 17 kW/fan

25

Name Number of Fans Savings Status of Project

1. Goldfields – Kloof Mine 460 6.21 MW Implementation

2. Goldfields – Driefontein Mine 290 3.915 MW Implementation

3. Goldfields – Beatrix Mine 122 1.647 MW Implementation

4. Anglo Platinum – Union Section Mine 36 0.486 MW Implementation

5. Harmony Gold – Kusasalethu Mine 140 1.89 MW Implementation

6. Lonmin Platinum 290 3.915 MW Implementation

Case study 5: Energy Efficiency Composite Fibre Fans

• *Projects are in implementation

• Contracted total = 18.04 MW

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• Main Fan stations is one of the largest energy consumers on a mine.

• Power Consumption can be reduced by controlling the Inlet Guide Vane.

• Absorbed Power can be reduced by 30 % during peak Eskom Demand

Periods without affecting the underground working significantly.

6.Peak Clip: Inlet Guide Vane Control

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Case study 6: Beatrix # 4 Main Fan Control (Peak Clip)

• The selected main surface fan station at the Beatrix #4 Shaft located on surface and used to provide primary ventilation to the extensive workings.

• The unloading of the fans have been achieved by using inlet pre-rotation guide-

vane controls. • The selected main surface fan station at Beatrix No 4 Shaft has 5.4 MWE rated

operating capacity, with a total absorbed power of 4.1 MWE. • Project has been successfully completed.

• Evening Peak Reduction =1.1MW

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Thank you

Pradesh Mewalala

Industrial Sector Manager

011 800 5843