Transcript Slide 1
National Solar Water Heater Programme Update May 2014 Slide 1 Outline of Presentation 1. Objectives – Solar Water Heater Programme 2. Problems with current delivery model 3. Transition to localization effort 4. Contracting models 5. Project Implementation – Status Update 6. Participation in the Installation Programme 2 Objectives - Solar Water Heaters 1 2 3 4 Objective Reducing electricity demand by transferring the water heating load from the grid to a renewable energy source (solar) Mitigation of adverse climate change through an environmentally benign technology for water heating Cushioning the poor from rising electricity tariffs Activities/Interventions Target Outcome Facilitation of switching from 5 million high income Reduced electricity demand in electric geysers to swh in households converted to the residential segment defers high consumption domestic swh power station investment segment Creating job opportunities through increased local manufacturing and industrialization Setting up local factories for About 7 swh factories set supplying the swh systems up to take up the demand and taking installers through as soon as possible an accredited training programme Installation of swh in the low 4.6 million low income income domestic segment households who use electricity for water heating Increased uptake of clean energy for water heating purposes Universal domestic segment Reduction in the domestic electricity bill due to water heating being provided by swh access low in the 4.6 million low income income households who use electricity for water heating Maximum local content of the swh systems utilized under the NSWHP, and the displacement of imported systems 3 Problems with old delivery model Problem 1 – there is little impact on electricity demand Problem 2 – there is little local manufacturing Installations to Date (May 2012) SHW Type Number installed (Rebate) Fiscal Total LP 171 730 24 293 196023 HP 48 941 Total 220 671 48 961 24 293 244 964 Problem 3 – measuring the local content of products is difficult The prevalent technology type that has been installed is the evacuated tube type Problem 4 – there is no technology standardization there are too many different products 600+ accredited products on the Eskom database Problem 5 – the life cycle management of installed systems is inadequate not clear as to who is responsible for maintaining the swh over its 10-15 year life 4 Transition to localization effort 1 2 3 WRAPPING UP PHASE SUPPLY OF PRODUCT UP TO ~x SYSTEMS? QUALIFICATION PHASE – CONVERSION TO LOCAL PRODUCT AS SPECIFIED EXCLUSIVE PHASE – ONLY LOCAL STANDARD PRODUCT IS SUPPORTED Designation of swh in August 2013 Product not limited to local standard Selection of qualified product suppliers, using audit outcomes from SABS 1286 process Call by SABS for submission of local content declarations by all participants in the NSHWHP, in line with SABS 1286 Selection of target municipalities after “feasibility” assessment and acceptance of conditions Analysis of the “local content scoring” of the various existing products Training of installers Contracting by Eskom for manufacturing subsidies (only with qualified suppliers) 5 Contracting Model OPTION A ESKOM ALLOCATES SERVICE PROVIDERS AND MUNICIPALITIES HAVE TO ACCEPT AS CONDITION FOR PARTICIPATION DoE DoE MUNICIPALITIES MUNICIPALITIES ESKOM ESKOM SERVICE PROVIDERS DESIGNATED SUPPLIERS DESIGNATED SABS SUPPLIERS 6 Contracting Model… OPTION B MUNICIPALITY APPOINTS PANEL OF SERVICE PROVIDERS AND ESKOM ACCEPTS TO USE THEM DoE DoE MUNICIPALITIES MUNICIPALITIES ESKOM ESKOM DESIGNATED SUPPLIERS INSTALLERS, PROJECT MANAGEMENT SABS 7 PROJECT IMPLEMENTATION – STATUS UPDATE CONTRACT A DESCRIPTION READINESS Funding agreement between Eskom Done and DoE for the NSWHP List of municipalities to participate Draft completed under the 2014/15 NSWH Programme (confirmation subject to feasibility report ) RESPONSIBLE DoE/Eskom C Service Level Agreement between municipalities and Eskom Not yet. Draft under consideration Eskom/DoE/ Municipalities D Assessment of local content of manufacturerers by SABS Draft completed. Board ratification underway E Agreement between manufacturers and Eskom regarding supply rebates Not yet, awaiting SABS local content verification process DoE SABS Eskom 8 PROJECT IMPLEMENTATION – STATUS UPDATE… I J K Contract between Eskom and various installation and maintenance service providers Contract between municipalities and various installation and maintenance service providers If this option adopted, Eskom to procure the services If this option is adopted, the standard provisions to be prescribed for the municipalities to mirror the funding agreement between Eskom/government Installation service providers training For ensuring that there is a pool of trained and and accreditation framework accredited service providers to participate in the NSWHP Eskom Eskom SETAs 9 Participation in Installation Programme - discussion Municipalities participate subject to: • Service Level Agreement with Eskom – outlines conditions • Lets discuss [email protected] 10 THANK YOU 11