SANEDI Comments on Proposed EEDSM Rules KM Nassiep Chief - PowerPoint PPT Presentation

SANEDI � Comments on Proposed EEDSM Rules KM Nassiep Chief Executive Officer - SANERI

Aim of Presentation CEF Group, SANERI, NEEA, SANEDI & DoE in context; Alay � fears � about SANEDI � s readiness to implement; Emphasise support for proposed � new � EEDSM Rules ; Highlight governance, to ensure � ring-fencing � of funds & create a � level � level playing playing field � field � for munics, etc. ; Re-enforce commitment to make EEDSM work in SA; Propose an � inclusive � approach to co-ordinate activities . 2

Key Reasons for SANEDI � s Establishment SANEDI SANEDI was conceived for the sole purpose of assisting the State to achieve its strategic objectives, as set out in the ), i.e. National National Energy Energy Act, Act, 2008 2008 (No (No. 34 34 of of 2008 2008), Promote diversification of energy supply; Ensure emerging energy technologies are incubated and commercialised; Ensure appropriate human human capital capital is developed, to support new energy-related industries; Establish a nationally focused energy research, development and innovation sector and undertake undertake energy energy efficiency efficiency measures, measures, with a strong relevance for South Africa, aligned aligned with with State State objectives objectives . 3

Readiness to Implement SANEDI SANEDI can undertake the functions of currently existing and operational entities, SANERI SANERI and NEEA NEEA , both of which have a local and international presence and branding. SANERI SANERI has also been given establishment grants that have been effectively utilised. Despite limited funding, SANERI SANERI in particular has already created a NEEA NEEA substantial footprint in the energy sector, with rapidly establishing a similar presence. The enabling legislation, the National National Energy Energy Act Act , which clearly outlines the functions that SANEDI SANEDI must undertake with respect to energy R&D R&D and and energy energy efficiency efficiency functions functions , has already been promulgated. Industrial Industrial Energy Energy Efficiency Efficiency Tax Tax Incentives Incentives regulations have been Gazetted, with NEEA tasked to fulfil the M & V Certification Certification process process . 4

SANEDI � s Broader Role in Context NERSA Universities Regulatory Research Chairs Contract R&D Bursaries Implementation Policy / Planning Strategies / R&D Activities Legislation Commercial All Spheres of Government Private SOEs Sector Human Capital Development 5 5

SANEDI Organogram 6

Governance Structure 7

SANEDI Establish- ment Progress National Treasury and DoE about to list new Schedule 3A Public Entity, SANEDI. SANEDI establishment budget proposal based on full operating model by October 2010 � Business case includes oversight role of EEDSM implementation on behalf of State. CEF, EEDSM Hub at University of Pretoria, system developers, contract staff in place already. Working for Energy in place � direct synergy with required resources, (financial, technical, etc.). 8

Concerns over current process Appears to be lack of consultation between drafters of policy and rules, and key stakeholders such as NEEA, SAAE members, BUSA, etc.. Industry and state perspectives perhaps not aligned on role of Eskom in continuing with its unilateral approach to EEDSM. Concerns expressed over level of complexity attached to SOP implementation. Interim arrangements seem superfluous. 9

Proposed Rules Eskom would be the first to admit limited success in its DSM implementation programme over the past 5 years & should focus on � core � (G,T,D) business. Global � best practice � clearly recommends/ supports proposed institutional model for implementing EEDSM . Recommend that the SWH component be removed from the SOP and the current subsidy scheme to continue. Suggest a high-level, multi-stakeholder Management Committee (PMU) be established, to provide inclusive and participative � oversight � of programmes deployed! 10

Proposal on next steps � Eskom and DoE need to resolve ultra vires issues regarding MYPD2 allocation. NEEA and Eskom, together with DoE need to resolve scope of SOP, based on recommendations from industry, ESCOs, state departments and relevant entities. Eskom needs to put in place transitional programme, targeting hand over of EEDSM programme prior to MYPD3 tariff deliberations. 11

Interim Recommended Solution Clearly segment market and allocate an interim � ring- fenced � activity and appropriate funding to NEEA/ SANEDI, for SOP-implementation, eg. Public Facilities. � Manage � this through appropriate SLA with DoE and/ or Eskom. Use this as a � benchmark � for 1 year, to determine appropriate institutional model for implementing EEDSM. Suggest a high-level, multi-stakeholder Management Committee (PMU) be established, to provide inclusive and participative � oversight � of programmes deployed! 12

Thank You! Thank You!