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
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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
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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
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Transition to localization effort
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2
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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)
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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
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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
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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
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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
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Participation in Installation Programme - discussion
Municipalities participate subject to:
•
Service Level Agreement with Eskom – outlines conditions
•
Lets discuss
[email protected]
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THANK YOU
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