SANERI ANNUAL REPORT 2010 / 2011

Contents

2

Basic Facts

Production / Costs

Reducing the Carbon Footprint

Corporate Information

SANERI Staff

Highlights in the AR

Performance against Objectives

Financials

3

BASIC FACTS

Entities compile Annual Reports for :

Compliance in terms of PFMA

Opportunities for marketing and branding

• Familiarizes readers with the entity – mission , vision , objectives, programs people

• Stands as an introduction to potential donors

• Serves as a general marketing brochure

4

PRODUCTION / COSTS

Production

• 200 hard copies

• 300 copied to USB

Costs of Production

• Hard copy – R360.00 each

• USB – R106.00 each

5

REDUCING THE CARBON FOOTPRINT

Hard copies – Masuga paper - branded as Sappi’s sweet paper

90% of the paper made from sugar bagasse and 10% virgin wood fibres from sustainable forests

Contribution to local economic development – Local production of paper

Masuga is produced at Stanger Mill

Sugar cane is sourced from the previously disadvantaged farmers along the North Coast

6

CORPORATE INFO

Vision

To be the pre- eminent world class energy research, development and demonstration institute

Mission

To transform the energy research and development sector in SA by ensuring a culture of innovation is maintained in the development of technology based products and solutions and by strengthening the human capital component of the sector

Values

Innovation Public Interest

Transparency Efficiency

Equity

7

SANERI STAFF

9 permanent /12 contract

73% HDI representation 56% Women representation

Category WM IM CM BM WF IF CF BF

Executive Management 0 0 1 0 0 0 0 0

Senior Management 3 1 0 0 0 0 0 1

Manager :

Administration/Finance0 0 0 0 0 1 0 0

System Administrator 0 0 0 0 0 0 0 1

Centre Managers 1 0 0 0 0 0 0 0

Project Managers 0 0 0 2 0 0 0 1

Public Awareness Officer 0 0 0 0 0 0 0 1

Project Officers 0 0 0 1 0 0 1 0

Admin Officer 0 0 0 0 0 1 0 0

Research Assistants 0 0 0 0 1 0 0 1

Personal Assistant 0 0 0 0 0 0 1 2

TOTAL 4 1 1 3 1 2 2 7

8

HIGHLIGHTS IN THE AR

Carbon Atlas

Wind Atlas

African Energy Efficiency Centre

Smart Grids

Centre for Carbon Capture and Storage

Centre for Energy Systems Analysis and Research

Hub for Energy Efficiency and Demand Side Management

9

HIGHLIGHTS IN THE AR…Continued

Green Transport Program

• Offices at Midrand

• Funded by DST

• SANTACO / Blue IQ / Automative Industrial Development Corporation (AIDC)

• CNG filling station in Langlaagte – Collaboration with Gauteng’s Department of Transport

• Public awareness and education

10

HIGHLIGHTS IN THE AR…Continued

WFE programme

• Background

• Funding

• Projects

• Agriwaste to Energy

• Energy Islands

• Alternate cooking fuel

• Biomass study

• Job Creation Potential

11

HIGHLIGHTS IN THE AR…Continued

Corporate Social Responsibility

• Innovative ways to reduce carbon footprint

• Annual report produced taking sustainability aspects into consideration

• SOS children’s village in Ennerdale

• Golf day proceeds

• Sponsorship intended to enable the village to install energy efficient technology

12

PERFORMANCE AGAINST OBJECTIVES

Objective Indicator Target Weight Score

Energy Research and Development

Contribution of SANERI's flagship projects to knowledge in the energy sector

CESAR ‑ develop position paper for stakeholder discussion. 1= Conception at 50%; 2= partially completed 75%; 3= 100% complete and stakeholder feedback; 5= including preparation commitment

2.5 3

Carbon Storage Atlas to be published and distributed. (2). 1= Not operational, 3= Operational, 5= Atlas distributed

2.5 5

Centre for Carbon Capture and storage ‑ SACCCS Steering Committee approved Work plan and implementation thereof. 1= Aborted 3= Work plan 5= Work Pan approval for the following year

2.5 5

Coordinate and establishment of RECORD ‑ Hold Stakeholder workshop for inputs/buy in and revised business model to be circulated to stakeholders. 1= No Workshop 2= Workshop organized and feedback/buy in obtained, 3= Revised business model circulated. (refer to note 1)

2.5 2

Manage the Wind Atlas of South Africa Collaborative project ‑ disburse funds are per progress lead Project Implementation Unit (PIU) a develop/disseminate Plan and participate in steering committee. 1= No PIU, 2= Progress Reported to Steering committee, 3= Stakeholder seminar

2.5 3

Coordinate the expansion of Green Transport Centre ‑ attract partners and funding and refine work plans. 1= No partner attracted, 2= Partners identified, but no plans proposed, 3= Partners identified, work plan developed, 4= Partner identified work plan developed and implemented

2.5 4

13

PERFORMANCE AGAINST OBJECTIVES…continued

Objective Indicator Target Weight Score

SA Coal Roadmap ‑ interaction with Department of Energy/Fossil Fuel Foundation (FFF) to initiate project. 1= SANERI excluded, 3= SANERI included, 5= SANERI included and Finance Manager

2.5 5

Showcase Green Transport technologies during the 2010 soccer World Cup ‑ develop demo plan and secure for demonstration 1= Not completed, 2= Plan completed and vehicles available, 4= Plan being implemented and 4 vehicle demons

2.5 4

Increase in South Africa's research outputs

SANERI funded research projects' findings delivered at two local and two international conferences. 1= None of targets achieved, 2= Target conference and publications achieved, 5= Targeted number of conferences presentation and publications exceeded

5 5

Four Publications of SANERI funded projects in international peer ‑ reviewed academic journals. 1= None of targets achieved, 2= Targets conferences and publications achieved, 5= Targeted number of conferences, presentations and publications exceeded

5 5

Working for Energy programme

Management of the Working for Energy Programme

Develop M&V protocol, 1= Not completed, 2= Plan completed no document done, 3= Plan completed document done, 4= Plan completed circulated to SANERI EXCO, 5= Plan completed and approved by SANERI EXCO for inclusion of corporate plan. (refer to note 3)

2 1

Develop an annual work plan, 1= Nothing done, 2= Work plan complete but not submitted to PSC, 3= Work plan approved by SANERI Board, 5= work plan approved by all buy in stakeholders

2 5

14

PERFORMANCE AGAINST OBJECTIVES…continued

Objective Indicator Target Weight Score

>65% approved and budget post for PMO filed, 1= 20% staff in place, 2= 21‑39% in place, 3= 40‑65% in place,4= 65‑85% in place, 5= >80% in place

2 5

>90% of funds used according to approved budget, 1= <85%, 2= 87%, 3= 88‑90%, 4= 91‑93%, 5=>93%. (refer to note 4)

2 1

Investigate 3 projects within each sub category element of WFE programme. 1= Nothing done, 2= Minimum amount of projects not investigated, 3= Projects investigated but not aligned to work plan, 4= Projects aligned to work plan, 5= Projects aligned to work plan and initiated

2 5

Human Capital Development

Oversight and Governance of Centre of Energy Research

All Centres to have management committees in place, 1= No management committee in place or structure in place, 3= Management committee in place, 5= Management committee in place and centres have a high impact in energy research community

10 5

Bursaries awarded > 75% of budget for bursaries allocated. 1= 60% of budget spent, 2=61‑70% of budget spent, 3= 71‑80% of budget spent, 4= 81‑90% of budget spent, 5= >91% of budget spent

10 5

Cooperative Research Activities

Jointly funded research projects with industry projects with industry or international organisations

At least R2,4 million external funding for SANERI flagship projects from industry or international organisations. 1= None, 2= Up to R2 million, 3= R2,4 million, 4= R4,5 million, 5 => R5 million

10 5

15

PERFORMANCE AGAINST OBJECTIVES…continued

Objective Indicator Target Weight Score

Strengthening of alliances with other PIER&D centres

At least two new research and demonstration projects initiated with another PIER&D centre, 1= No new project, 3= Two new projects, 5= 3 or more new projects

10 5

Administration of SANERI

Percentage BEE procurement (capital equipment, consumables and non‑university research contractors)

Minimum of 25% of non‑research services, consumables budget spent on entities with >75% BBBEE status. 1 =< 15% procurement, 2= 16‑20% procurement, 3 = 21‑25% procurement, 4= 26‑27% procurement, 5= >28% procurement

5 4

Staffing of the Institute 75% approved and budgeted post for 2010/11 filled. 1= 40% of staff in place, 2= 41‑49% in place, 3= 50‑75% in place, 4= 76‑80% in place, 5= >81% in place

5 5

Funds are spent according to budget guidelines

90% funds used according to approved budget. 1= <85%, 2= 86‑87%, 3= 88‑90%, 4=91‑93%, 5= >94%

10 5

TOTAL 100 4.57

16

Financials

Statement of Financial PositionAt 31 March

2011 2010 2009R '000 R '000 R '000

Restated Restated

Assets

Non Current AssetsProperty, plant and equipment 341 323 296

Intangible assets 229 495 309Deferred tax - - 201

570 818 806

Current Assets

Current tax receivable 72 579 579

Trade and other receivables 11,915 2,625 2,203Cash and cash equivalents 29,556 21,302 29,952

41,543 24,506 32,734

Total Assets 42,113 25,324 33,540

Equity and Liabilities

EquityShare capital - - -

Accumulated loss -20,404 -9,768 -5,207

-20,404 -9,768 -5,207

Liabilities

Current LiabilitiesThird party funds 34,725 12,481 16,379

Trade and other payables 20,760 17,875 19,827Deferred income 3,049 3,636 1,143

Provisions 3,983 1,100 1,398

62,517 35,092 38,747

Total Equity and Liabilities 42,113 25,324 33,540

17

Financials…continued

Statement of Comprehensive IncomeFor the year ended 31 March

2011 2010 2009

R '000 R '000 R '000

Restated Restated

Grant income 25,654 32,719 31,077

Operating expenses -35,617 -36,069 -41,483

Operating loss 9,963 -3,350 -10,406

Investment income 1,313 1,853 2,847

Finance costs -3,471 -1,224 -285

Loss before taxation -12,121 -2,721 -7,844

Taxation - -373 -

Loss for the year -12,121 -3,094 -7,844

Other comprehensive income - - -

Total comprehensive loss -12,121 -3,094 -7,844

Thank You