IN THIS ISSUE Dutkiewicz Family Scholarship recipients · Conducting a power saving audit at a facility of this nature is therefore demanding and requires considerable time and resources

VOLUME 16 NUMBER 2 www.erc.uct.ac.za JUNE 2010

IN THIS ISSUEDutkiewicz Family Scholarshiprecipients. . . . . . . . . . . . . . . . . . . 1Netcare implements energy saving programmes . . . . . . . . . . 2Consumers advised to be awareof their electricity consumption . . 4UCT academic appointed toNational Planning Commission. . 5Climate change and sustainability– an investment perspective . . . . 7City moves to cut carbonemissions and address energyefficiency . . . . . . . . . . . . . . . . . . 12City continues to battle street light cable theft . . . . . . . . . . . . . 13Host City Cape Town Green Goal 2010 Expo sent message of ‘touch the earth lightly’ . . . . . 14Publication of writing teams of 5th Assessment Report. . . . . . . 15Energy efficiency in low-incomehousing: Can we do it? . . . . . . . 15Measuring the rebound effect of energy efficiency initiatives for the future . . . . . . . . . . . . . . . 16A new era for renewable energy . . . . . . . . . . . . . . . . . . . . 17How to ensure climate changefinance really is ‘new andadditional’ . . . . . . . . . . . . . . . . . 18Global sign-on campaign against schemes for reducingemissions from deforestation and forest degradation . . . . . . . 19Africa Energy Week . . . . . . . . . 21UCT-IET-IEEE energy seminar 22Seminars for mining and industry energy efficiency and energy saving . . . . . . . . . . 2213th Session of the AfricanMinisterial Conference on theEnvironment . . . . . . . . . . . . . . . 24Synergistic SuperGrid for Trans-mitting Energy Overseas 2011 . 25Energy events 2010 . . . . . . . . . 26

Sponsored by the Departmentof Science & Technology

Dutkiewicz FamilyScholarshiprecipients

Professor Dick Dutkiewicz start-ed his long and distinguishedcareer working for Eskom,

where he quickly made his mark andstarted Eskom’s Mechanical Engi-neering Research Laboratories. Hewas then promoted to a Head Officeposition in the Planning Department,before deciding to return to academiclife (he had previously completed hisPhD at Cambridge University investi-gating boiling heat transfer).

The Dutkiewicz Family Scholar-ship was created in memory of Prof.Dick Dutkiewicz by his family. Prof.Dutkiewicz had a long and impactfulcareer at the University of Cape Townafter joining as a Professor of Mech-

anical Engineering in 1973. He laterbecame Head of the Department ofMechanical Engineering, a positionhe held until 1985. He also startedthe Energy Research Institute (nowpart of the Energy Research Centre)as a separate entity within the Facul-ty of Engineering in 1975. Researchat the Institute included alternative liq-uid fuels for use in vehicle engines,fluidised bed combustion, energyconservation, energy economics,energy and the environment and sus-tainable energy in South Africa.

Professor Dutkiewicz travelled ex-tensively, addressing conferencesaround the world. He was a memberof numerous National and Interna-

Dutkiewicz Family Scholarship recipients, Derek Leisegang (2nd from left) andJesse Burton (extreme right) with Andrew Marquard, ERC (extreme left) and

Colin Dutkiewicz (2nd from right)

2 Energy Management News

tional bodies, and served on a numberof international committees dealingwith alcohol fuels, energy demand-sidemanagement, and environmental mat-ters. In 1997, in acknowledgement ofhis contribution to the South Africanenergy industry, he was one of the firstrecipients of the South African NationalEnergy Association’s Leadership andInnovation Awards. Professor Dutkie-wicz was also the initiator and drivingforce behind the Journal of Energy inSouthern Africa.

Dick Dutkiewicz had a keen senseof humour and wry wit. He took greatinterest in furthering and helping stu-dents and young engineers, challeng-ing them to embrace their tasks withthe same zeal and enthusiasm that hedisplayed about matters he really caredabout. Energy was his passion, and itis for his personal energy and drive thathe will be remembered the most.Hence the Scholarship has beendesigned to foster the next generationof forward thinking engineers, policymakers and academics in the field ofEnergy Research and development ofa Sustainable Energy Policy in SouthAfrica.

� Contact: Prof. Kevin BennettDirector – Energy Research CentreUniversity of Cape TownTel: 021 650 3893E-mail: [email protected] MarquardEnergy Research CentreUniversity of Cape TownTel: 021 650 2827E-mail: [email protected]

Hospitals within the active SouthAfrican healthcare sector con-sume energy 24 hours a day, all

year round, using energy for a numberof functions many of which are requiredfor sophisticated lifesaving machinery.

Conducting a power saving audit ata facility of this nature is thereforedemanding and requires considerabletime and resources as each facility hasdifferent requirements due to the spe-ciality thereof.

In collaboration with Netcare Tech-nical Services, Energy Resource Opti-mizers, an Eskom registered energyservices company (ESCO), undertookthe intensive four-month process inorder to prepare a feasibility report forenergy savings at 14 Netcare hospitalson behalf of Eskom’s EEDSM Depart-ment.

The energy conservation opportuni-ties were identified together with theirpotential impact. This was based on acomparison with the electricity billinghistory for the 12-month period prior tothe survey. A financial feasibility studywas then drawn up for submission toNetcare for consideration and finallyled to the successful implementation.

The results indicated that theprocess was beneficial with Netcarerecording significant savings across theboard. The actual savings, both mone-tary and power, were verified by EskomCorporate Services Division’s Assur-ance and Forensics Department, inassociation with the North-West Uni-versity.

The verification was conducted byway of a performance tracking auditwhich inspected the achievementsrecorded between January and June of2009.

PROJECTED DIRECT ANDINDIRECT BENEFITSThe direct benefits that the originalprocess set out to achieve were:• A sustainable reduction in energy

expenses by managing energy con-sumption through the installation ofenergy efficient equipment andactive control of selected loads.

Indirect benefits included:• Compliance with the Energy Effi-

ciency strategy of South Africa,which stipulates that companiesmust have energy audits undertak-en

• Meeting the targeted final energydemand reduction of 15% by 2015

• Reduced environmental impactrealised by considerable coal andwater savings, and reduced levelsof greenhouse gases produced dur-ing power generation activities.

KEY INTERVENTIONSEnergy Resource Optimisers furtheredNetcare’s investigation into potentialenergy efficient opportunities:• Opportunities were also available to

reduce demand through the retro-fitting of efficient lighting systems.

Netcare implementsenergy savingprogrammes

Energy Management News 3

The majority of fluorescentlight fittings in the hospitals hadmagnetic ballasts. Changing theseto electronic ballasts on the lightsmeant reduced energy consump-tion, extended lamp life and lowermaintenance costs. Where possi-ble, incandescent lamps werereplaced with Compact FluorescentLamps (CFLs) consuming 20% ofthe energy and lasting up to 15times longer

• Improving water heating systemsthrough the addition of insulationmaterials, replacement of waterheater elements with heat pumpsand other initiatives.

As hot water is constantlyrequired in a hospital environment,heat pumps are three times moreefficient than conventional waterheating solutions.

The use of geyser blankets ongeysers producing water at 55°Creduces losses (kWh) per day in a100 litre tank from 1.300 kW to0.606 kW.

ACHIEVEMENTSFinancial savings achievedWhen these two major interventionswere considered, it was found that thecompany could expect to reduce theirenergy costs by about R1. 2-million ayear through direct interventions result-ing in a payback period of just over twoyears.

In the final audit it was found thatthese expectations had been exceededwith actual savings of R1 012 953 beingrecorded in the six months that werereviewed as part of the authenticationprocess.

The findings differentiated betweenfinancial results achieved on weekdays(Monday to Friday) and those achievedon Saturdays and Sundays as perTable 1.Environmental savingsAs a result of the energy efficiency pro-gramme undertaken at the Netcarehospitals, significant benefits in thefuture will be derived for the environ-ment. Total emissions for the six month

evaluation period already revealed thatthere had been a significant reductionin emissions. These, taking intoaccount the baseline, are indicated inTable 2.Electricity savings after projectimplementation

The average weekday energy effi-ciency impact (average over all periodsof the day) was 0.578MW, and theintended average impact was 0.498MW. This relates to an actual impact of116.4%, (over performance of 16.4%)compared to the intended energy effi-ciency impact. (Source: Measurementand Verification Report, issue date 21August 2009, report numberPM/M&V/NWU – 9/10 – 2786)

Eskom understands better thananyone the impact of energy efficiencyon your business. The challenge ofboosting economic growth while min-imising electricity consumption hasbeen its focus for some time. As aresult, they have a wealth of informa-tion to share – ways in which you can

Table 1: Financial impact foRNetcare hospitalsWeekdays (Rand) Saturdays(Rand) Sundays (Rand) Total

Electricity Maximum Electricity Maximum Electricity Maximum RandConsumed Demand Consumed Demand Consumed Demand

Baseline R1 650 725.00 R968 699.00 R301 947.00 R956 279.00 R268 754.00 R0.00 R3 191 316.00Actual R1 164 154.00 R605 808.00 R217 010.00 R601 522.00 R189 686.00 R0.00 R2 178 363.00Impact R486 571.00 R362 890.00 R84 936.00 R354 756.00 R79 068.00 R0.00 R1 012 953.00Source: Measurement and Verification Report, issue date 21 August 2009, report numbeRPM/M&V/NWU – 9/10 – 2786

Table 2: Total emissions impact; Jan 2009 – Jun 2009Total Emissions

CO2 (tons) NOx (kg) SOx (kg) Particles Water (kl)Baseline 6 903 30 302 59 984 1 588 9 940Actual 4 133 18 143 35 914 951 5 951Impact 2 770 12 159 24 069 637 3 988Source: Measurement and Verification Report, issue date 21 August 2009, report number PM/M&V/NWU – 9/10 – 2786


reduce your energy consumption.Advice on the many energy savingtechniques and technologies are avail-able from Eskom energy advisors or anEnergy Services Company (ESCO).

A complete list of participatingESCOs is available on the Eskom DSMwebsite (www.eskom.co.za/dsm).

Interested parties can also call theEskom Contact Centre on 08600ESKOM (08600 37566) and log a queryfor an energy advisor in their area tocontact them.

� Anton PotgieterEnergy Resource Optimisers ccCell: 083 655 6888Fax: 086 616 4828E-mail:[email protected]: eroskype77David PetrieEnergy Resource Optimisers ccCell: 072 333 4388Fax: 086 576 5491Email:[email protected]: www.energyoptimizers.co.za

Helping you to help yourself

The City of Cape Town’s MayoralCommittee Member for UtilityServices, Alderman Clive Justus,

reminds residents that they need tomonitor their electricity account on amonthly basis.

Alderman Justus notes that con-sumers can substantially reduce theirelectricity bill by taking control of theirelectricity meters. ‘One of the bestways to save electricity is to monitoryour electricity meter, starting on a dailybasis at first, so that you can cut backon usage as required,’ he said. ‘Onceyou have an understanding of yourconsumption patterns, check yourmonthly account to ensure that theusage is accurately reflected andrecorded’.

Pre-paid meters and the older cred-it-type meters can both be read daily tomonitor consumption. In cases wheremeters are located in street kiosks andcannot be accessed, the consumer canstill monitor consumption through themonthly electricity account from theCity of Cape Town.

‘By examining your usage, you’ll beable to adjust your lifestyle to makesavings. Most pre-payment metershave a ‘high consumption’ red warninglight which flashes faster as your con-sumption increases,’ said AldermanJustus.

An average low-income house willuse about 370 kWh per month (or 12units per day), whilst an average mid-dle-income house will use about 775kWh per month (or about 26 units perday). These amounts will vary widely,depending on the number of persons ina household, and the usage of a hotwater geyser and electrical appliances.

‘Geysers are electricity guzzlers,but if you adjust the thermostat from65°C to about 55°C, the energy sav-ings are considerable. The kettle andthe stove are other heavy users. Whenboiling water, pour only the amount ofwater you need into the kettle,’ Alder-man Justus advises.

Municipal domestic electricity cus-tomers who purchase, on average, lessthan 400kWh per month over a 12month period can make use of the Life-line Electricity Tariff. This tariff entitlesusers to a free allocation of 50kWh of

electricity per month. However, thisallocation is forfeited if it is not con-sumed (on the credit meter system), orif it is not claimed from a vendor eachmonth on the prepaid system. Domes-tic customers who have calculated theirmonthly average to be below 450kWhand who are not receiving the 50kWhfree allocation need to have their tariffchanged to the Lifeline Tariff. This canbe done by reporting the matter to theCity’s Call Centre on 0860 103 089 forinvestigation.

The City has a total of 579 000 elec-tricity customers, approximately 160000 of whom have the older electricitycredit-type meters which are read bothby in-house staff and by a City contrac-tor. It is impossible to read each meterevery month, as many of these metersare situated inside houses where it maybe difficult to gain access. In suchcases a card is usually left, requestingthat the consumer take a meter readingthemselves and send it to the numberprovided on the card.

If this is not done, the City esti-mates an expected usage and the fig-ures are corrected and balanced thenext time an actual reading takesplace. After three consecutive missedreadings, a letter will be sent to theconsumer requesting assistance inobtaining a reading. If this fails toachieve a response, the consumptionis manually increased and a note iscaptured on the system for future refer-ence.

‘The only way to ensure accuratebilling of accounts is to ensure the Cityobtains regular meter readings,’ saidAlderman Justus, ‘It makes sense forthe City and it certainly makes sensefor the consumer’.� Contact: Ald. Clive Justus

Mayoral Committee Member: UtilityServicesCity of Cape Town Tel: 021 400 1206Cell: 083 628 4136 Guy Laurie Head: Revenue ManagementCity of Cape TownTel: 021 446 2011 Cell: 084 335 3510

Consumers advised to be awareof their electricity consumption


INTRODUCTIONThe National Planning Commis-sion (NPC), set up by the SouthAfrican government, has been

tasked to produce a national develop-ment plan and vision statement for thecountry. Professor Anton Eberhard,Graduate School of Business, UCT, isone of two UCT academics appointed(the other is Associate Prof. VivienneTaylor – Head: Department of SocialDevelopment).

Prof. Eberhard’s work focuses onrestructuring and regulation of infra-structure sectors such as electricity,water, transport and communications,related investment challenges and link-ages to sustainable development. Hehas worked in the energy sector forsome 30 years and was the foundingDirector of the then Energy and Devel-opment Research Centre (EDRC).

Chaired by the Minister in the Pres-idency, Trevor Manuel, and the DeputyChair, Cyril Ramaphosa, the Commis-sion will produce reports on issuesimpacting long-term development,including water, food and security, cli-mate change, infrastructure planning,human resource development, defenceand security matters, the structure ofthe economy and spatial and demo-graphic issues.

The setting up of the Commissionwill enable government policies andplans to be more coherent and focusedon achieving the society that is needed.

The establishment of the NPC is theembodiment of government’s efforts toimprove long term planning and rallythe nation around a common set ofobjectives and priorities to drive devel-opment over the longer term. Therevised green paper sets out the roleand purpose of the NPC, describinghow it would work and interact withgovernment and the broader society,and presents an institutional frameworkto support the work of the Commission.DEFINING THE OUTPUTSThe idea that South Africa needs a wellarticulated national vision and longterm strategic plan received wide-

spread support during the public hear-ings and subsequent political engage-ments. Furthermore, South Africaneeds well researched, evidence-based input into the policy process onbroad cross-cutting issues that havelong term implications for our develop-ment, such as water security or energymix.

The first output of the NationalPlanning Commission is to draft aVision 2025 and a long term strategicplan. The Vision 2025 will be an articu-lation of the type of society all SouthAfricans would want to see in about 15years time. It would set out the highlevel aspirations for the nation in termsof social, economic and political devel-opment. The long term strategic planwould be the plan to achieve thatvision. It will attempt to define the pathto achieve the particular objectives setout in the vision, defining the issues,weighing the trade-offs and puttingtogether a coherent plan to achieve ourlong term aspirations.

Given that the National PlanningCommission includes external Com-missioners, the NPC would producesuch a document in consultation withgovernment and broader society andpresent its report to government forconsideration. Cabinet would be ulti-mately responsible for adopting anational vision and strategic plan. Aclear understanding of how govern-ment works as well as independentinput that clearly articulates the aspira-tions of ordinary South Africans are twoessential ingredients of this national

vision and strategic plan.Secondly, on an ongoing basis, the

National Planning Commission wouldproduce research reports and discus-sion papers on key cross cutting issuesthat affect our development. These the-matic papers will cover issues such asfood security, climate change andhuman resource development trendsand will be tabled in Parliament for dis-cussion. The reports will be producedby the Commission working with sec-toral experts both within and outside ofgovernment.

The task of developing legislation,policies and programmes to implementany of the recommendations containedin these thematic papers lies with linedepartments, provinces and municipal-ities.WHAT TYPE OF PLANNING ISENVISAGED?The type of planning that the NationalPlanning Commission would concernitself with is mainly high level nationalstrategic planning. A national strategicplan provides a road map, a set of bea-cons along the way in achieving a par-ticular objective. For example, if gov-ernment has a plan to reduce ourcarbon emissions by 2025, a nationalstrategic plan would outline the path bywhich we get there, setting measurabletargets for specific timeframes, outlin-ing key policy trade-offs and setting outthe sequence of decisions required inachieving such an objective.

Each department, sphere of gov-ernment and state agency shouldtherefore have planning capacity. Theoutcomes of their planning would feedinto the development of the nationalstrategic plan. The national strategicplan would, in turn, define high leveloutcomes and impacts. Sector planswould take account of the national planand define what role sectors would playin achieving the outcomes defined inthe national plan. This however doesnot mean that the planning horizons ofall sectors should be the same. It isacknowledged that planning time-frames may differ from sector to sector

UCTacademicappointed toNationalPlanningCommission


with some sectors long-term plansgoing beyond the envisaged 15 yearhorizon of the national long-term strate-gic plan.

To illustrate, take an example ofplanning in respect of energy security.STRATEGIC PLANNING ANDENERGY SECURITYSouth Africa has to make a key choicein the next few years on energysources. Given the lead times, thenature of network industries, environ-mental externalities and the costs ofproducing energy on a large scale,long-term strategic planning will be crit-ical. Seminal choices will have to bemade early on.

A national strategic plan would helpguide these decisions by clearly priori-tising objectives. This would make iteasier to resolve trade-offs where thereare competing objectives. It would alsosignal clear choices about long termenergy options, including the sequenc-ing of decisions required. It would pro-vide a policy framework for pricing reg-ulated network services, while theactual pricing policy will be developedby respective regulatory bodies andoverseen by a department which has amandate for the functional area inquestion. It would set targets for greenhouse gas emissions and for the ener-gy intensity of our economy in general.

Developing such a plan calls fordetailed research including projectionson energy demand and supply. Thatwould take into account such factors asthe nature of economic growth, demo-graphics and income mobility, buildprogrammes across the sub continent,research and development on newenergy sources, spatial developmentdynamics and so on. The Departmentsof Energy and Public Enterprises andEskom would be critical to this; aswould National Treasury and the De-partments of Trade and Industry, Eco-nomic Development and Transport. Acritical role would also be played byother departments, such as those deal-ing with mining and other economicsectors, water, the environment, inter-national relations, science and technol-ogy. This is besides external research,academic and private sector bodies.

The national plan would provide theparameters for the Departments ofEnergy and Public Enterprises andEskom to make certain choices.Together with the state-owned enter-prises and regulators, they would takeoperational decisions. It would also sig-

nal key areas of research that furtherpublic research funding could be chan-nelled into.

The distinction between plans andpolicies varies in different contexts. Insome contexts, a plan is a detailedaccount of how to implement a policy –with the latter deriving from electoralmandates and ensuing choices of theExecutive and/or legislatures. In thiscontext, planning means translatingpolicies into long-, medium- and short-term objectives, prioritising the objec-tives and sequencing implementation.THE ROLE AND COMPOSITION OFTHE NATIONAL PLANNINGCOMMISSIONThe NPC will be an important institutiontasked with working with governmenton a long term vision for the countryand a long term strategic plan for gov-ernment. Furthermore, the NPC willalso provide input on cross-cuttingdevelopmental issues that will impacton our long term success or failure as acountry. Cabinet remains responsiblefor policy decisions including the adop-tion of a long term vision and strategicplan.

The National Planning Commis-sioners, serving on a part-time basis fora period of five years, will have the fol-lowing functions:• Lead the development (and period-

ic review) of a draft Vision 2025 andlong-term national strategic plan forapproval by Cabinet (first plan2010);

• Lead investigations into critical longterm trends under the supervisionof the Minister in the Presidency forthe National Planning Commission,with technical support from a Sec-retariat and in partnership with rele-vant other parties;

• Advise on key issues such as foodsecurity, water security, energychoices, economic development,poverty and inequality, structure ofthe economy, human resourcedevelopment, social cohesion,health, defence capabilities and sci-entific progress;

• Assist with mobilising society ar-ound a national vision and othertasks related to strategic planning;

• Contribute to reviews of implemen-tation or progress in achieving theobjectives of the National Plan;

• Contribute to development of inter-national partnerships and networksof expertise on planning.

After considering the advantagesand disadvantages of various optionsfor the nature of the Commission, it isproposed that the panel broadly be anexpert panel but that commissionersneed to be representative of the majorsocial forces in society. The nature ofthe Commission cannot be one wherethe plan is negotiated, but instead onewhere a plan is developed that is basedon the best evidence, in the long terminterests of the country as a whole. Theoperating principle should be that peo-ple sitting on the Commission shouldbe knowledgeable and representativeof the diverse views in the country, butwilling and able to work collaborativelyto develop a coherent and consistentnational plan.

The advisory and expert nature ofthe Commission has three broad impli-cations. Firstly, the Commission candevelop an independent perspective onour long term plan unencumbered bythe structures and systems of govern-ment and bureaucracy. The Commis-sion can get the best experts on anyissue to make recommendations thatare in the best interests of the country’slong term success. Secondly, the Com-mission can garner input and perspec-tives from a range of parties, organisa-tions, individuals and groups to broadlyreflect what all South Africans want. Inthis respect, it would work with Parlia-ment to lead a national dialogue on theSouth Africa we aspire for. Thirdly, theCommission must interact with govern-ment to understand the capabilities,resource constraints, potential and lim-itations of what is possible and achiev-able in a specific timeframe. The Com-mission’s interaction with the MinisterialCommittee on Planning is thereforecritical.� Contact: Prof. Anton EberhardGraduate School of BusinessUniversity of Cape TownTel: +27 21 406 1362Email: [email protected]


Despite many contradictoryclaims and counter claims onthe subject of climate change

and sustainability, there is far more fun-damental agreement amongst thoseactively engaged in this issue than isoften suggested. Yet at the same timethere is an apparent disconnectbetween much of what appears in themedia on these topics and what thepublic seems to feel. This, in turn, leadsto disagreement and a great deal ofconfusion.

At root most of the disagreementrelates to the relevance of the scienceinvolved. In particular, there is argu-ment about what percentage of climatechange is usual (that is, normal climat-ic change) and what percentage can betermed as man-made – with the focuson changes since the Industrial Revolu-tion began in the late 18th century butespecially since 1950.

Overlooked in this debate is the factthat climate change predictions are,like all predictions, proximate evenwhen based on the best available sci-ence. This reality is highlighted by Har-ald Winkler (of the ERC at UCT) in his2010 book ‘Taking Action on ClimateChange’ (Appendix A). He writes: ‘Cli-mate change is not just an environ-mental issue. It goes to the very heartof the world’s future economic viability,including achieving and sustaining theMillennium Development Goals. Thenegative impacts of climate changehave the potential to undermine SouthAfrica’s development goals as well. Yet,even though the costs of action are lessthan inaction,1 the challenge is huge.’

Does it matter if this academicargument continues given that we areall (or most of us) agreed that theimmediate objective should be to miti-gate the potential negative impacts ofclimate change? There is always con-siderable uncertainty in making predic-tions about the future. But one thing weought to be certain of now is that, for

whatever reason, climate change ishappening.

I come at the subject from aninvestment and retail banking back-ground and have based my analysis onthe financial approach taken wheneveruncertainty is involved in a bankingtransaction. As a result, in this article, Iam interested less in debating theextent of certainty about climatechange and sustainability and more infinding the best means to manage theuncertainty.AN APPROPRIATE ENERGY MODEL An appropriate energy model whichaddresses risk management – a keycomponent of ‘sustainability’ – is thatdeveloped by Shimon Awerbuch, a wellknown and respected financial econo-mist. Awerbuch’s model is based on afinancial concept first created by HarryMarkowitz in 1952 (Appendix A).Markowitz developed a model showinghow investing in a portfolio of financialassets, each with uncorrelated charac-teristics, lowers the overall investmentrisk and therefore the effective cost ofthese assets. Markowitz was subse-quently awarded the Nobel Prize forthis ground-breaking work.

At the core of this concept is thenotion that the parameters of diversity,risk and cost are assessed to producea ‘best fit’ portfolio for a particular indi-vidual or institution.

This approach has been used (asupdated in subsequent years) by gen-erations of financial analysts and, morerecently, by credit officers in bankswhen analyzing every existing and newloan in terms of their cost and value tothe bank.

‘Creative accounting’ in this type ofrisk management may well have con-tributed in part to the over-leveragingthat led to the recent credit crunch. Yetproperly applied the methodology con-tinues to give information without whichthe financial sector would not be able to

function efficiently. Knowing the valueof a risk-adjusted portfolio of assets isparamount to both parties involved inany financial transaction. Indeed, whenconsidering the 2008 credit crunch, thelack of transparency and risk manage-ment widely displayed in some of thetrades and decisions taken in earlieryears lay at the root of the crisis.

Pre-Markowitz investment choiceswere made on a much more hit-and-miss basis. Imagine, for example, aninvestment decision by a stockbroker.With no hindsight available, such a per-son would choose asset by asset, socreating a portfolio based on the princi-ple of ‘least cost and risk’. No attemptwould be made to forecast the cost ofthe stock in future years. Nor wouldthere be any risk-adjustment to theoverall mix of the portfolio. Instead indi-vidual risk would simply be estimatedfor each financial asset being pur-chased. Even worse, the broker mightchoose only one or two assets thatseemed like a good buy at the time.The risk inherent in this strategy – put-ting all your eggs in one basket – ispatently clear.

Post-Markowitz, a very differentapproach is taken – one which empha-sizes portfolio-based diversification.The reason is that almost all investorsprefer certainty to uncertainty, and cer-tainty (or its opposite, risk) can be cal-culated over a period of time. The rele-vance of this core investment principleto climate change and sustainabilitynow becomes clear. By applying it toinfrastructure investment in such sec-tors as energy, it is possible to minimiserisk and cost and maximise certaintyand returns.

Figure 1 begins (1) with a portfolioof 100% fossil resource. If renewableenergy (RE) is added (2) this movesthe profile of the generating portfolioboth upward (higher cost) and leftward(less risk). The lower risk derives fromthe fact that the use of multiple tech-

Climate change andsustainability – an

investment perspective


nologies means less exposure to costvolatility (for example, from the price offuel) than would be the case with anysingle technology on its own.

If the portfolio mix is reshuffled tomatch the original risk level – an unre-alistic assumption, given the increaseddiversification, but one that is usedhere for the purpose of demonstration –while the risk, and hence the volatility,remains constant, the actual cost islower.

As the diagram demonstrates, costis reduced (at the original risk) byincreasing the diversity of the energymix derived from the inclusion of

renewable energy (Awerbuch, Shimon:Appendix A). The risk factor of theassets has to be included in this analy-sis in order to show the true, risk-adjusted cost. The broker (or energyplanner) can then choose a portfoliofrom a risk and cost perspective suit-able for the investor.

If a graph is constructed as in Fig-ure 2, with a horizontal axis showingthe ‘mean variance’ (as measured bythe projected standard deviation incost), and a vertical axis showing the‘return’ or ‘cost’, several points can beplotted representing different portfolios(that is, different proportions of the

same assets). These can then bejoined to produce an ‘efficient frontier.’

This model represents the modern‘risk management’ approach. The port-folio chosen takes account, to the bestextent possible, future uncertainty byincluding the principle of risk-adjustedassets. In addition, there is sufficientdiversity in the portfolio to ensure thatindividual assets have a negative cor-relation with one another – that is, theirperformance is not tied to the sameinput costs (such as fuel or regulatorycosts).ENERGY PLANNING Optimal energy planning has beendefined (Bazilian and Roques – Appen-dix A) as focusing ‘less on finding thesingle lowest cost alternative and moreon developing efficient generating port-folios.’

The same principle that faces everystockbroker is also faced by the policy-maker and the generator of electricity.All must deal with assets which areindividually volatile and then combinethem into a portfolio with lower volatili-ty.

Shimon Awerbuch spent a long timerefining the financial model of Mark-owitz to make it relevant to the energyfield. He observed that policy makers invarious countries evaluated an appro-priate energy mix by choosing an ener-gy source using the ‘least cost’ method.Some models were adjusted for risk buton a project-by-project basis. As he putit: ‘Why all the fuss about the risk ofgenerating portfolios? Because esti-mating a portfolio’s generating costswithout saying something about risk isnot very useful. It is similar to watchinga movie with the sound switched off:you miss important parts of the story.’(Awerbuch, Shimon – Appendix A)

When risk is not calculated theinvestment approach results in the cre-ation of inefficient portfolios. The use ofenergy sources uncorrelated to primaryenergy or fuel prices (such as renew-ables) is excluded because, whenassessed in the absence of a consider-ation of risk, these forms of energy areconsidered to be very costly upfront(compared with non-RE technologies).EXTERNALIZED ENERGY COSTSNo externalized costs have been con-sidered so far in this analysis. Howev-er, such costs should be estimated(where quantifiable) for every differentenergy resource under considerationwhen calculating the impact of the

Figure 1: Absent a risk dimension generating cost means little

Figure 2: Efficient frontier for a portfolio of two risky assets(Bazilian and Roques – Appendix A)


investment on the economy as a whole. In my view it is not morally accept-

able for energy investors to ignore suchcosts simply because they are difficultto assess or because they do not havea ‘revenue stream.’ This does not implythat a developer is responsible for anyexternal cost. Others may be, such asthe responsible ministry. But the exer-cise needs to be done and the costsincluded. Otherwise we end up with acase of comparing apples and oranges.

The bottom line is that any modelignoring the concepts mentioned aboveis likely to be flawed, particularly as weenter a carbon-constrained era. At itsheart, risk management is an exercisein dealing with uncertainty. Any energyinvestment model today which does notmeet the ‘risk management’ criteria,including portfolio risk-adjusted sourcesand externalities, ought to be excludedfrom energy planning. DEFINING UNCERTAINTYWe live in an era of increasing doubtsabout energy supplies. But what doesenergy uncertainty actually encom-pass? It seems necessary to define thismore closely.

First of all there is ‘price uncertain-ty’ – the assumptions being madeabout fossil fuel prices over the 25 – 30year lifetime of a project. There isbound to be uncertainty in this areawhatever assumptions are made up-front. In addition, there is the likelihoodthat oil prices will peak during this peri-od as global oil resources decline. Thishas potentially profound implicationsfor all fossil fuel prices (including natu-ral gas and coal) and, in turn, for glob-al and national economies.

In contrast, the cost of renewableenergy in future is less uncertain. Thereare, for example, known initial installa-tion costs of energy sources such aswind and solar and free input coststhereafter (except for maintenance).Since the prices of renewables are‘fixed’ and known upfront, and the over-all portfolio is risk-adjusted, an appro-priately diverse mix can be chosen(which might have coal, nuclear, andrenewables included) resulting in alower overall risk and therefore cost.

Secondly, there is the possibility oflabour strikes. Has this risk beenincluded in those sources of energywhere labour is a significant variableand could adversely affect the genera-tor of electricity?

Thirdly, mention should be made ofenergy ‘supply’ issues – the volume

and quality of feeder stock.There are other risks involved

including politics (domestic and inter-national), regulation and currency risks.Some of these will be exclusive to aparticular generator of electricity butmany are ever-present, albeit to vary-ing degrees. All need to be taken intoaccount in constructing a viable andresilient energy portfolio.

One way or the other, energy-dependent societies like South Africaface an uncertain future, exacerbatedby rapidly changing environmental andpolicy considerations. Inevitably, in myview, this will lead to harsher treatmentbeing meted out to those countries andgenerators of excessive levels of car-bon emissions. South Africa is alreadyconsidered an excessive producer ofcarbon equivalent emissions with asmuch as 40% of emissions related toenergy-intensive exports.THE SOUTH AFRICAN DIMENSION This article is based on portfolio theory.Compared to existing fossil-dominatedmixes, the risk management portfolioreality is that efficient portfolios reducegenerating cost and include greaterrenewables’ share in the mix, therebyenhancing energy security.

Though counter-intuitive, the ideathat adding more costly renewablescan reduce portfolio-generating cost isalso consistent with basic finance theo-ry. An important implication is that indynamic and uncertain environments,the relative value of generating tech-nologies must be determined not byevaluating alternative resources, but by

evaluating alternative resource portfo-lios.

Figure 3 demonstrates an applica-tion of portfolio theory to the energysector (this is a typical US energy mixexample).

This is particularly relevant to SouthAfrica. Indeed, Awerbuch’s efficientenergy mix models represent a striking-ly appropriate way forward for thiscountry by offering South African ener-gy mix planners an opportunity to cre-ate a balanced mix of energy sourcesand enhancing energy security at lowerrisk and cost. Among key national con-siderations related to this option are:Employment As long as a certain minimum renew-able mix is allocated by government(Department of Energy) estimated at3000 MW (minimum), local manufac-ture becomes possible and investorswill be drawn to this sector.Investment and competitive advantageTax breaks are offered to encourageinvestors (e.g. accelerated deprecia-tion allowance for energy efficientplant, as announced in the 2009 Budg-et Address).

South Africa should consider anycompetitive advantage that can beachieved (e.g. solar).Exports South African exports will be better ableto comply with the ever increasing reg-ulations emanating from the US andEU – with cleaner (less carbon emis-sions) products available.

Figure 3: Risk-return for 3-Ttechnology US generating mix


Electricity costs Because of the lower risk, the costs willbe lower to the consumer over timeinstead of the current trend of continualincrease in costs if the current practicecontinues.Off-balance sheet funding Given a friendly investment climate(including investment tax breaks and aviable feed-in tariff plus an acceptableguarantee for agreed project revenuepayments under a Power PurchaseAgreement, and a guarantee that gridconnection will be available for the proj-ect life) Independent Power Producers(IPP’s) will be encouraged. Thisamounts to off-balance sheet financefor the government/Eskom albeit withfinancial and operational contingencyliabilities which are unavoidable.Lead timesWith renewables, lead times are farshorter (2-3 years compared to 5-7years for a coal plant and 7-10 yearsfor a nuclear plant) and therefore canfill the supply gap – greater flexibility inthe pace of rolling out new capacity willbe possible.Energy security Security is enhanced by the risk-adjust-ed portfolio approach with the uncertainrisks which might lie ahead. The cur-rent approach is still one of assessingthe risk for each energy resource ratherthan making use of a risk-adjusted port-folio approach as favoured by theAwerbuch model.Inflation/GDP growthGrowth will be affected positively andenergy-related inflation curbed oncethe appropriate energy mix reducescosts overall.Water usageIn a water-scarce country, any compo-nent of any national energy mix shouldalso consider water usage by the ener-gy technologies under consideration.

LOOKING AHEADSo where does the answer lie? In myopinion, it comes down to takingnumerous actions internally as soon aspossible to guard against the likelihoodof an uncertain future that may result insignificant negative results (financialand other losses) for the country. Thestakes are too high to be caught sittingon our hands.

It would be better to be wrong, inmy view, about climate change at thispoint – meaning that funds are madeavailable today to offset unseen risks inthe future – and see the world becomea healthier and cheaper place in themeantime than to discover that thedenialists/sceptics were wrong allalong and we end up paying five times(plus) more to activate any defence –assuming we still have the time to doso.

We also need to work far harder onthe issue of ‘language.’ Most aspects ofclimate change (or risk management)need to be ‘translated’ into languageunderstood by the audience concernedwhether it is political/bureaucratic, cor-porate or consumer. So far the science-based language deployed is not gettingthrough to the man-in-the-street andthe relevance of key messages is notbeing understood clearly.

In parallel, we need to make theargument more widely that nationalenergy security will be reduced whencountries operate inefficient energyportfolios that are needlessly exposedto fossil and other price risks.

Until recently, the notion of energysecurity focused on the threat of abruptsupply disruptions. This article sug-gests we face a more profound chal-lenge – fossil fuel supply and pricevolatility. An extensive body of researchnow suggests that fossil fuel volatilityhas the potential to disrupt theeconomies of consuming nations sig-nificantly, potentially extracting hun-dreds of billions of dollars from the USand EU economies alone. CONCLUSIONSI cannot do better, in summing up, thanto quote Awerbuch’s abstract to one ofhis papers (see Appendix A):

‘Renewable generating technolo-gies offer an effective means for cli-mate change mitigation. Policymakers however, are wary becauseof the widespread perception thatthese technologies cost more thanconventional alternatives so thatincreasing their deployment willraise overall electricity generatingcosts.‘Energy planning represents aninvestment-decision problem. In-vestors commonly evaluate suchproblems using portfolio theory tomanage risk and maximise portfolioperformance under a variety of

unpredictable economic outcomes.Energy planners need to similarlyabandon their reliance on tradition-al ‘least-cost’ stand-alone energy(kWh) or capital cost measures andinstead evaluate conventional andrenewable energy sources on thebasis of their portfolio cost- theircost contribution relative to their riskcontribution in a mix of generatingassets.’In conclusion, I would like to repeat

email excerpts from Jaap Jensen whenrequested, inter alia, to name countriesthat had applied Shimon’s principals–

As far as I know Shimon applied it(his principles) to the US, ...to theEU (with Martin Berger), to Scot-land, EU WETO-H2 baseline sce-nario, Morocco, Mexico, Karnatakaand a selected region of US East-ern States (to demonstrate the ben-efits of Geothermal (together withJaap Jensen and Luuk Beurskens)in 2003 – 2005. In 2006 until hispassing away he did more work….with the EWEA and the EIB.More research will be done on his

work and an appropriate computermodel developed for South Africa, andthe region if appropriate.

As Dr Fabian Roques, an expert onthe subject of energy planning, com-ments on the issue of motivating thisconcept-

There is also a real issue of com-munication with the portfolio ap-proach which is not intuitive to peo-ple without a quantative/financebackground. Shimon did a great jobin reaching out to various audi-ences, but there remains quite a bitof education to do!But there is a paradox, in his expe-

rience, in that if the concept is simpli-fied too much then assumptions (whichhave not, intentionally, been exploredin depth) are questioned.

This is a serious subject as it dealswith power assets valuation, the appro-priate energy mix and therefore energysecurity.

While the article is written for a wideaudience and deals with a relativelyunknown concept to most people, poli-cy planners and energy generators areparticularly encouraged to explore and,hopefully, adopt the risk adjusted port-folio principles presented in this article.


Note1. The Stern review estimates that the

costs of inaction could be 5-20times the cost of the mitigationactions and time will have beenwasted.

APPENDICESA. ReferencesAwerbuch, Shimon (2004). Portfolio-

Based Electricity Generation Plan-ning: Policy Implications for Renew-ables and Energy Security.

Bazilian, Morgan and Roques, Fabien(co-editors) (2008). AnalyticalMethod for Energy Diversity &Security.

Winkler, Harald (2010). Taking ActionOn Climate Change.

B. Acknowledgements• Hanks, Jonathon of Incite Sustain-

ability, for his very useful contribu-tions

• Du Plooy, Peet of WWF SA (Tradeand Investment-Living Planet Unit),for his insightful thoughts;

• Marquard, Andrew of the ERC, Uni-versity of Cape Town for havingintroduced Shimon Awerbuch’swork to the author;

• Roques, Fabian Director of theGlobal Power Group and IHSCERA Associate Director, Euro-pean Gas and Power for his interestand offer of future assistance to theregion in energy planning;

• Jansen, Jaap of the EnergyResearch Centre of the Nether-lands (ECN) for his valuable com-ments. Jaap Jansen combined withLuuk Beurskens to write Chapter 6–’Portfolio Analysis of the FutureDutch Generating Mix’-in the book‘Analytical Methods for EnergyDiversity and Security’;

• Knight, Robin – Writer (ex US Newsand World Report European Editorand BP Editorial Writer and presentMD of Knight Write (Ltd) for his edit-ing/comments of final paper;

• Robertson, Ian UK Stockbroker (exSimon & Coates, Chase ManhattanBank and Nedbank Group consult-ant, for his comments and support;

• Morris, Glynn of Agama and Chair-man of Committee drafting theWhite Paper on Renewables for hisCommittee’s interest in the princi-ples expressed in the paper; and

• Sedgwick, Anthony – for his editori-al support.

� Contact: Simon StewardThe Towers FarmPO Box 212Darling 7345, Western CapeTel: 022 492 2354Fax: 022 492 3195Cell: 083 254 2888E-mail: [email protected]

C. Financial

Electricity generating costs, risks, and correlation(from ‘Analytical Methods for Energy Diversity & Security’)


The City of Cape Town’s MayoralCommittee at its meeting on 18May recommended that the

City’s Energy and Climate ChangeAction Plan be tabled at the next Coun-cil Meeting for approval. The ActionPlan was supported by the entire City’sPortfolio Committees and the Execu-tive Management Team (EMT).

The Action Plan, comprising 43 pro-gramme areas made up of 115 proj-ects, forms the basis on which the Citycan prioritise and budget for, imple-ment, monitor and evaluate its energyand climate change programme. Itoperationalises the City’s commitmentsand demonstrates its leadership role inthe field.

The City made ‘Energy for a sus-tainable city’ a key Strategic FocusArea (SFA) in its Integrated Develop-ment Plan in May 2008 and a Section80 Energy Committee was establishedto drive the new focus area. This com-mitment to energy security, carbon mit-igation and adaptation to climatechange impacts is also supported by arange of other City policy documentsand activities.

‘The Action Plan compiles bothexisting and proposed City energy andclimate change projects across all

Directorates and Departments, organ-ised according to 11 key objectives.These objectives reflect the intention ofthe SFA and the other relevant City pol-icy documents,’ says Alderman MarianNieuwoudt, Mayoral Committee Mem-ber for Planning and Environment andChair of the City’s Energy Committee.

Some of the key objectives of theplan are: City-wide 10% electricity con-sumption reduction by 2012, all growthin demand to be in renewable andcleaner energy sources; 10% renew-able and cleaner energy supply by2020; compact resource efficient citydevelopment; and more resilient lowincome/vulnerable communities.

The prioritisation of projects will becompleted once the City’s Long TermMitigation Scenarios (LTMS) projecthas been completed in June 2010. TheLTMS will provide a solid foundation onwhich effective decision making withregard to priorities and financing of theCity’s energy programme can proceed.

Some of the current projectsalready underway include:• Retrofit of City-owned buildings• Greening of housing developments• Green Building guidelines• Smart Living Education campaign• Electricity savings campaign to be

launched in July • Sale of Green Energy Certificates

from the Darling Wind Farm to thepublic

• Schools education programmes• Retrofit of streetlights and traffic

lights for energy efficiency• Green Goal 2010 carbon offset

projects• City adaptation plan of action (to

build greater resilience to theimpacts of climate change)

• Mass roll out of solar water heatersproject

• Methane for energy from wasteprojects.

� Contact: Sarah Ward Head: Energy & Climate ChangeBranch Environmental Resource Manage-ment Department City of Cape Town Cell: 084 606 7177

City moves to cut carbon emissions and address energy efficiency


There are more than 320 000streetlights across the entireCape Metropole, many of which

have been or will be fitted with 70 wattenergy-efficient light bulbs during thenext 2-3 years.

‘This is part of the City’s concertedefforts to conserve power, whilst at thesame time dealing with the scourge ofcable theft and vandalism,’ says Alder-man Clive Justus, Mayoral CommitteeMember for Utility Services.

Plagued by the widespread plun-dering of its substations and powerlines, City Electricity Services has beenforced to keep certain areas of street-lights burning during the day to helpprevent and monitor the occurrence ofcable theft.

‘Under normal circumstances, therewould be no justification for wastingpower and we should all be diligentlyconserving this precious commodity.Unfortunately, the City is suffering froman unprecedented onslaught fromcable thieves, most of whom are ‘tik’addicts desperate for drug money,’ saidJustus.

‘An effective deterrent is to keep thestreetlights burning as thieves rarelyrisk their lives by hacking into livewires. Also, the cost of ‘energising’ a350m stretch of ten 70 watt streetlightsamounts to about R2.68 per day. Onthe other hand, the cost of replacingthe same length of stolen cable andvandalised equipment amounts toabout R38 500 per incident.

‘This does not even take into con-sideration the inconvenience caused toresidents, or the additional costs ofwelding down access covers andencasing underground cables in con-crete to secure our equipment,’ saidJustus.

In another alternative to deter van-dalism and theft of street lighting infra-structure, the City has installed highmast lighting at a cost of R150 000 perpole set, as for example in Matroos-fontein. These masts are more expen-sive to install than conventional light-ing, but are more vandal-proof.

In suburbs that are relatively unaf-fected by cable theft, the City isable to use day night switches acti-vated by photo sensors to automat-ically switch off in daylight. Thesephoto electric cells as they areknown are designed to fail in theenergised or ‘on’ position thus leav-ing the lights on day and night untilthey are repaired or replaced thusensuring as far as possible there islighting at night, even when the unithas failed. Power disruptions inthese areas are usually caused byoverloaded or defective circuitbreakers, lamp failures or contactbetween tree branches and trans-mission lines.

However, in ‘hot spots’ suchas Bonteheuwel, Hanover Park,Gugulethu, Manenberg, Kalksteen-fontein, Atlantis, the M5, MitchellsPlain, the Helderberg region andVanguard Drive, and many otherplaces – especially the Eskom sup-ply areas- disruptions are invariablycaused by cable theft.

Bonteheuwel was vandalisedso badly, there was almost nothingleft to repair. Electricity Servicesstaff and contractors have beenassaulted on site and the City’strucks have been stripped by gangsin broad daylight.’ Provincial roads such as the N2

and Settlers Way, from Rondebosch toSomerset West, have also sufferedmajor blackouts as a result of cabletheft.

‘Cable theft is draining theresources of City Electricity Servicesand hampering our efficiency in attend-ing to other public electricity com-plaints,’ says Justus.

The City’s dedicated Cable TheftTask Team, known as the Copper-heads, championed by Councillor She-val Arendse, is working around theclock to catch and prosecute these per-petrators.

To report any suspicious activityaround substations and power linestheft, the public can call the Cable TheftHot Line on 0800 225 669.

To report faulty street lights withinthe City of Cape Town’s jurisdiction, call0860 103 089 or send an e-mail [email protected] or report thematter by an SMS not exceeding 160characters to 31220.� Contact: Alderman Clive Justus Mayco Member for Utility Services City of Cape TownTel: 021 400 1206 Cell: 083 628 4136Brinley van der Schyff Acting Manager: Public Lighting City of Cape TownTel: 021 590 1639

Citycontinuesto battlestreet lightcable theft


‘Touch the earth lightly’ is themessage that was conveyed toFIFA Fan Fest™ visitors on the

Grand Parade throughout the 2010FIFA World Cup™.

Host City Cape Town’s environmen-tal programme for the 2010 FIFA WorldCup™, ‘Green Goal 2010’, was show-cased at the FIFA Fan Fest™ in astructure specifically designed todemonstrate the use of materials thatwere either recycled, reusable, re-claimed or newly purchased, but ear-marked for reuse afterwards.

The Green Goal 2010 Expo tookthis idea to a highly sustainable level bysourcing most of the construction mate-rials within a 2.5km radius of the sitethereby reducing the carbon footprint ofthe structure.

The form of the Green Goal 2010Expo structure was a cube. The exteri-or was clad in a matrix of 1 450 multi-coloured plastic milk crates containing17 400 empty milk bottles, all tied to ascaffolding frame. Low energy lightingilluminates the crates from behind,making it a glowing ‘jewel box’ by night.

Local references to indigenousplants, Fynbos smells, colours andquiet spaces, subtly enticed visitors toconnect with the natural world inside. A‘forest’ of bamboo flags waved in thewind, announcing the Green Goal 2010exhibition from afar.

Commenting on the Green Goal2010 Expo at the Fan Fest, LorraineGerrans, City of Cape Town Manager:Green Goal 2010 FIFA World Cup™,stated that South Africa adapted theevent-greening programme initiated byGermany, hosts of the 2006 FIFA WorldCup™, and developed the Green Goal2010 Programme to reduce the WorldCup’s adverse effects on the environ-ment.

Host City Cape Town developed aGreen Goal Action Plan with 41 proj-ects that contributes to environmentalawareness, waste minimisation, effi-cient energy use, sustainable waterconsumption, compensation for the

event’s carbon footprint, responsibletourism and green building, whichtakes future generations into accountwhen building structures such as theCape Town Stadium.

‘Some of these interventions couldbe seen at the Fan Fest. For example,there would be no disposable cups orplates and fans buying refreshmentswould be sold commemorative 2010cups. Waste would be avoided andminimised and if this was not possible,then fans were encouraged to separatewet and dry waste in the two-bin sys-tem at the Fan Fest, along the FanWalk and at the Cape Town Stadium.The Fan Fest was powered by renew-able energy from the Darling WindFarm,’ she said.

The drinking of tap water was alsopromoted as part of the Green Goal2010 programme, thus reducing waste.Drinking water fountains had beeninstalled at the Fan Fest and along theFan Walk, and videos promoting thefact that Cape Town’s tap water wassafe to drink, would be shown on thebig screens at the Fan Fest throughoutthe tournament.

Commenting on the Green GoalExpo, Mike Marsden, the City’s Execu-tive Director: Transport, Roads andMajor Projects and responsible for2010, said: ‘The event would placeglobal environmental issues, such asclimate change, under a spotlight, andwould be an opportunity to promotepro-active approaches to these issuesamong local and international audi-ences. We are extremely proud of theresponsible action taken by Host CityCape Town and in particular of theGreen Goal 2010 programme thatresulted in the many environmentallyfriendly interventions that could beseen at the Green Goal Expo at theFIFA Fan Fest™.’

Fans and locals had the chance tovisit the Green Goal 2010 Expo at theFan Fest on the Grand Parade duringthe entire course of the tournament.

� Contact: Lorraine Gerrans City of Cape Town Manager: GreenGoal 2010 FIFA World Cup™ Tel: 021 401 4011 Cell: 082 301 5002 E-mail:[email protected]: www.capetown.gov.za/fifa-worldcuphttp://www.responsiblecapetown.co.za/blog/2010/05/30/green-goal-at-fifa-fan-festtm-sneak-preview

Host City Cape Town Green Goal 2010 Exposent message of ‘touch the earth lightly’ to

FIFA Fan Fest™ visitors


The problemSouth Africa has built about 2.4-millionlow-income homes in the past 15years. The target for the next 15 yearsis a further 3-million housing units. Withthe focus on overcoming our acutehousing shortage, these RDP or BNGhomes are built to very basic specifica-tions with little or no considerationbeing given to thermal comfort or effi-ciency. The result is very poor livingconditions for the occupants and dis-proportionately high levels of energyconsumption.The impact The impact of this scenario is to exac-erbate the cycle of poverty, not only interms of basic monthly expenditure butalso on the “burden of life”. Typicallythe occupants of these homes suffer adisproportionate health burden, includ-ing the often over-looked area of men-tal health, with the resultant high levelsof apathy, inertia and vulnerability.Can we do it? (thermal and energyefficiency in RDP housing) The Kuyasa CDM project not only setsout to illustrate the dramatic socio-eco-nomic impact of the selected energyefficiency adaptations, but also todevelop a sustainable model for ongo-ing maintenance of these interventions.The modelling includes local job-cre-ation, skills development and promoteslocal industrial development by gener-ating an ongoing demand for locallyproduced product in a completely newmarket segment.Can we afford to do it? The key determinant in addressing thequality of low-income housing isfinance. The financial modelling forlarge scale roll out combines DSM sub-sidies, a ‘pay for service’ model, andCarbon Finance.

Can we afford not to? At a more macro level, the projectseeks to address the need forincreased electricity generation capaci-ty – it is estimated that by targetingenergy efficiency for the proposed BNGhousing, South Africa will benefit fromthe avoided costs of a new power sta-tion (upwards of R95 billion). TheKuyasa project is at the forefront ofaddressing two of the most pressingsocial and political imperatives facingus - creating sustainable human settle-ments and addressing climate change.� Contact: Carl Wesselink Kuyasa CDM ProjectTel: 0027 21 465 7522Fax: 0027/ 21 465 7631E-mail: [email protected] Secretariat Tel: (031) 368 8000Fax: 031 3686623E-mail: [email protected]: www.sanea.org.za

Energy efficiency inlow-income housing:Can we do it?Publication ofwriting teams

of 5thAssessment

Report

The Working Group III of theIntergovernmental Panel onClimate Change (IPCC) pub-

lished the names of their contributorsto the 5th Assessment Report (AR5)on 23 June.

The complete author list of Work-ing Group III – Mitigation of ClimateChange and the outline of the AR5,as it was accepted at the 31st Ses-sion of the IPCC in October 2009 inBali, is available through the follow-ing link: www.ipcc-wg3.de/news/ar5_authors.

Associate Prof. Harald Winkler,Energy Research Centre (ERC), isone of two South African LeadAuthors on this Working Group, him-self working on the chapter ‘Interna-tional Cooperation: Agreements andInstruments’. � Contact: Assoc. Prof. Harald Win-klerEnergy Research CentreUniversity of Cape TownTel: +27 21 650 2100E-mail: [email protected] Anna AdlerAdministrative Assistant, TechnicalSupport Unit (TSU)Intergovernmental Panel on Cli-mate Change (IPCC)Working Group III – Mitigation ofClimate Change (WG III)C/o Potsdam Institute for ClimateImpact Research (PIK)PO Box 601203 14412 Potsdam GermanyTel: +49 331 288 2472 Fax: +49 331 288 2640E-mail: [email protected]: http://IPCC-WG3.dePatrick EickemeierMedia Relations – TCUE-mail: [email protected]


Improving the technological efficien-cy of devices used to convert pri-mary and secondary energy to use-

ful energy is seen as one of theaffordable solutions to the energy crisisin South Africa. In reality, however,observed savings are often lower thanwhat would be theoretically predictedbased on technology characteristicsalone. The ‘rebound effect’ is a termthat refers to the extent to which theo-retical energy efficiency savings are notachieved due to subsequent behav-ioural changes.

This three-year study set out toquantify the rebound effect of energyefficiency initiatives in South Africa’sresidential sector, and to explore waysof mitigating that effect using aware-ness and education. The study wascompleted by the Energy ResearchCentre, University of Cape Town, withSANERI funding.

The research began with a thor-ough review of literature and variousattempts at developing a suitablemethodology for meeting the projectaims. Interestingly, there are limitedsuitable methods for quantifying theeffect. Many of the attempts have de-pended on techno-engineering meth-ods, and therefore failed to adequatelymeasure the behavioural determinantsof the effect. Economists have ap-proached the problem through macro-economic modelling of energy demand,calculating elasticities to capture theconsumption response of users to pricechanges under efficiency improve-ments. A few novel approaches thatmoved beyond the techno-engineeringand econometric approaches havetested behavioural and systems think-ing approaches utilising inter-discipli-nary methods to understand the likelybehavioural response to energy effi-ciency. The methodology finally devel-oped for this project makes inroads intothe realm of understanding behaviouralresponse by combining qualitative andquantitative methods using a systemsthinking approach.

After reviewing the literature, suit-able case study sites were located.These included low-income solar waterheating implementation in Zanemvula,Eastern Cape, and an efficient lightingintervention in the Karoo town of PrinceAlbert, Western Cape. The rolloutswere typical of the demand-side man-agement interventions and the natureof the interventions allowed for theimpact of awareness, price and otherfactors to be assessed.

Extensive qualitative and quantita-tive household information was collect-ed to analyse the behavioural responseto the technology rollouts, price in-creases and impacts of awarenesscampaigns. The data gathered and thefindings from the literature were used inthree different models: a systems dy-namics model to determine feedbackbetween variables, a regression modelto determine the most significant vari-ables influencing electricity consump-tion behaviour, and a predictive modelwhich aimed to quantify the potentialimpacts of rebound in South Africa to2030 under various scenarios of pricetechnology and awareness policies.

The study provided insights intobehavioural responses to energy effi-ciency, and approaches to studying it.The case study models revealed thekey factors that can be used to explainelectricity consumption behaviour, de-cision heuristics, weightings associatedwith a households’ energy consumptiongoals and impacts, as well as feedbackmechanisms. It also highlights how theresponse differs between householdswith different characteristics. The re-search also found that multi-discipli-nary approaches can be complementa-ry and invaluable in understandingenergy demand. These outcomes arepresented in detail in the project report.

The implications of the research arefar-reaching from a policy perspective.In particular, planners would be ad-vised to be conservative about the sav-ings expected from energy efficiencyand solar water heaters, particularly ifprice and awareness/education are notconsidered alongside the technologyrollout. Having achieved a greaterunderstanding of the problem, plat-forms for engagement with key stake-holders in both policy and implementa-tion can be opened, and additionaltargeted studies can be conducted tomore realistically predict potential sav-ings.

Additional research on the behav-ioural response to high-income solarwater heating interventions is currentlyunderway and the results will befinalised by December 2010.� Contact; Stephen Davis and Dr BrettCohenEnergy Research CentreUniversity of Cape TownE-mails: [email protected] [email protected]

Measuringthe reboundeffect ofenergyefficiencyinitiatives forthe future:A case studyin SouthAfrica


The Renewable Energy Africa(REA) Conference and Expo, anapplied constructive conference

and interactive exhibition will giverenewable energy in South Africa andAfrica a voice in 2010. Introduced toprovide a platform for interactionbetween role players in the industryfrom all fields related to renewableenergy, REA has been scheduled torun from 9th to 11th November at theSandton Convention Centre in Johan-nesburg.

‘Energy is at the root of all socialendeavours. Nothing can be achievedwithout it. Sadly, for so many years, wehave taken energy for granted. Wehave used it indiscriminately in theapparent belief that reserves are infi-nite and we have been ignorant of thedetrimental effects of inappropriateuse.’ This is the view of the Chairmanof the South African National EnergyAssociation (SANEA), Brian Statham.

There has been a global increase inthe demand for energy, and the tradi-tional sources the world has relied onare dwindling. The world has landed ina situation where it is forced to seekalternative sources of energy. Realisingthe necessity to diversify, in some partsof the world countries have movedaway from relying on coal and oil astheir only sources of energy. ‘A numberof countries around the world haveestablished the use of solar and windenergy, and biomass is also used insome rural applications,’ says Brian.

While the rest of the world isembracing renewable energy andpaving the way for new initiatives,Africa, and more specifically SouthAfrica, seems to be falling behind.South Africa’s electricity demands haveincreased over the years, to the pointwhere demand is far greater than sup-ply. South Africa has reached a point ofbattling a chronic power shortage.Establishing more coal powered sta-tions to generate electricity seems likethe next best option, but coal has itsown problems. Using coal to generateelectricity is not ideal because no mat-

ter how carefully it is burnt there aretoxic gaseous and solid emissions.

According to Statham, in the pastcoal was abundant and readily avail-able; however this is no longer the situ-ation – the conventional resources arediminishing. If the electricity demandsof the country are going to be met,there is no option but for South Africa tofully explore the opportunities of utilis-ing renewable energy sources, andincorporating these into the existingsystem.

Our country is not lacking inresources or technology, but there arefactors that have inhibited South Africafrom using renewable sources of ener-gy. These problems cannot, unfortu-nately, be solved overnight. Stathamhighlights that one of the main factorsholding South Africa back is the currentenergy legislation. ‘There are a numberof gaps in the legislation, and untilthese are filled the use of renewablesources will be hampered,’ saysStatham. There could be a positive out-come to this issue as the National

Energy Regulator of South Africa(NERSA), is currently making efforts toclean up the legislation, which will alsopave the way for private sector invest-ment.

The other challenge faced in SouthAfrica is the costs of renewable energyproduction, use and maintenance. Atthis stage renewable energy is moreexpensive so people will evidentlychoose cheaper alternatives. As aresult, the development of renewableresources has been inhibited. Therecent loan from the World Bank toEskom will prove to be a step towardshandling this part of the problem.Eskom plans to use a portion of theUS$ 3.75 billion received from theWorld Bank to finance the country’sfirst large wind and concentrated solarpower projects.

Statham feels that over the next fiveyears South Africa will see a changefrom predominantly coal generatedpower to more renewable energy. Thiswill be in the form of wind farms, solarpower and residential solar waterheaters.

The REA Conference and Expo2010 is aimed at reviewing the chal-lenges of rising energy demands inAfrica and the limited availability of tra-ditional energy resources. The confer-ence will attract a broad range of play-ers in the energy industry.

‘Through the REA Conference andExpo we hope to increase awarenessof the opportunities available for theuse of renewable energy across Africa.Concurrently, we also need to relay andcreate understanding of the obstaclesto the application of renewable energy,’says Statham.

The REA Conference and Expo willconsider the key challenges for renew-able energy sources across criticalareas including economic and businessmodels, environmental, regulatory andtax issues.

Presentations and exhibitions willshowcase the state of the art in thesolar, wind, hydro and biomass energysectors.

A new era for renewable energy

Brian Statham, Chairman of the SouthAfrican National Energy Association


Brian Statham has 37 years experi-ence in the power industry in SouthAfrica and sits on the Advisory Commit-tee of the REA Conference. His roleincludes ensuring the technical contentand balance of material presented atthe conference is functional.

Other members on the advisorycommittee are:• Professor Wikus van Niekerk,

Director of the Centre for Renew-able and Sustainable Energy Stud-ies, University of Stellenbosch. Hehas taken an interest in renewableand sustainable energy and hasbeen consulted by industry formany years as a registered profes-sional engineer.

• Tumai Murombo, Senior Lecturer,Oliver Schreiner Law School, Uni-versity of the Witwatersrand (Wits).He is a lecturer in law and a mem-ber of the IUCN Commission onEnvironmental Law. Tumai is pas-sionate about and has doneresearch and published in environ-mental and sustainable develop-ment law, biodiversity, commonproperty rights, and environmentaljustice. He is currently pursuing adoctorate in renewable energy reg-ulation in South Africa at Wits.

• Barry McColl, Technology, Strategyand Planning Manager – Eskom,also brings years of industry experi-ence as a Project Engineer andElectricity Delivery Manager. Hisroles have been with Eskom andhis current position involves ensur-ing research project delivery andimplementation; allocating andmanaging the research budgetspend in accordance with the strat-egy; and the project managementof Eksom’s Research Pilot andDemonstration Programmes.

� Contact: Nomsa Radebe Alphabeta Communications Tel: + 27 11 706 6085 Fax: + 27 11 463 1082 Mobile: + 27 (0) 79 474 3633 E-mail: [email protected] Website: www.reafrica.co.za

Academics warn that the industri-alized world’s promise of billionsof ‘new and additional’ dollars to

help developing nations tackle climatechange is meaningless without a base-line from which to count new funds.

In a briefing paper published by theInternational Institute for Environmentand Development (IIED), they outlinetwo workable options for defining abaseline that would balance thedemands of donor and recipientnations.

The paper was launched on 5 Juneat a side event during the ongoing UNclimate-change negotiations in Bonn.

The paper’s authors call for a UN-based system to define baselines andmonitor pledges and payments. Theysay this must happen if developednations are to regain the trust of devel-oping nations that is essential for aglobal climate deal.

Last December, the industrializednations committed to provide develop-ing nations with US$30 billion of ‘newand additional’ funding between 2010and 2012, as well as US$100 billion peryear by 2020.

But developing nations fear that tomeet this promise, the developed coun-tries will simply rename existing aidbudgets or count previous pledges ofclimate finance.

The paper was written by SaleemulHuq, Senior Fellow in the IIED’s Cli-mate Change Group; Martin Stadel-mann, Researcher at the Centre forInternational and Comparative Studiesin Switzerland; and J. TimmonsRoberts, Director of the Centre forEnvironmental Studies at Brown Uni-versity, United States.

‘Funding from developed countriesto help developing countries tackle cli-mate change has the potential to re-build the lost trust between the two setsof countries — but only if it is doneproperly,’ says Saleemul Huq. ‘Agree-

ing on baselines for assessing ‘newand additional’ climate funds is key.’

Co-author J. Timmons Robertssays: ‘When is a promise not a prom-ise? When there’s no specified base-line that would allow anyone to know ifthe promise has been fulfilled. That’sthe case with the CopenhagenAccord’s climate finance promise, andthat’s why this issue needs immediateattention to get the negotiations backon track.’

Martin Stadelmann says: ‘Can youimagine the EU pledging to reduce itsemissions by say 30% by 2020 withoutsaying if this is 30% below the 1990 or2005 levels? Yet this is what richnations did with their funding pledges inCopenhagen when they made a pledgewithout a reference point and, there-fore, without a clear meaning. Formutual accountability, we need aninternational rule that any pledge has tobe accompanied by a baseline.’� Contact: Saleemul Huq Mobile: +44 77 3186 0103E-mail: [email protected] J. Timmons Roberts Tel: +1 401 441 2103E-mail: [email protected])Martin Stadelmann Tel: +41 77 437 97 81E-mail:[email protected] Website: http://www.iied.org/pubs/dis-play.php?o=17080IIED

How to ensure climatechange finance really is

‘new and additional’RICH NATIONS’ PLEDGES MEAN NOTHING WITHOUT

BASELINES, SAY ACADEMICS


The Durban Group for ClimateJustice is an international net-work of independent organisa-

tions, individuals and people’s move-ments who reject the approach toclimate change promoted by pollutingcorporations, financiers, northern gov-ernments and economists. Since 2004they have provided a platform for dis-cussion and analysis of climate justice,and its members engage in regularadvocacy in favour of real, not false,solutions to the crisis. They viewdurable change as emanating primarilyfrom grassroots and shop floor move-ments for climate justice. They aim tohelp mobilise communities around theworld and pledge solidarity with peopleresisting carbon trading across theworld.

As part of a mounting global civilsociety criticism of the ineffective andunjust solutions to climate change –including carbon trading and geo-engi-neering – representatives of peoples’movements and independent organiza-tions oppose the schemes for Reduc-ing Emissions from Deforestation andForest Degradation (REDD) currentlybeing formulated under the UnitedNations Framework Convention on Cli-mate Change – and already piloted inschemes such as the World Bank’sForest Carbon Partnership Facility andthe United Nations REDD Programme.

The proposed UN climate negotia-tor’s ‘forest deal’ jeopardizes thehuman future by serving to furtherentrench fossil fuel use – the majorcause of the climate crisis – while at thesame time failing to safeguard thefuture of forests and the rights ofIndigenous Peoples and forest-depen-dent communities over their territoriesand knowledge. Further, there is a cleardisregard from Northern countries toaddress the high levels of consumptionin those countries as a driver of defor-estation.

The projected growth of carbonmarkets in the US, Australia and else-where is set to trigger a huge newdemand for imported pollution rights toallow industrialized countries andindustries to continue business asusual and avoid emissions cuts athome. Norway has already calculated,for example, that Amazon forest con-servation could ‘offset’ or compensatefor ten times its yearly emissions. How-ever, a drought in 2005 turned theAmazon forest into a carbon source,not a carbon sink, and such eventscould occur in the future.

The REDD or ‘REDD-readiness’programmes in Southern countries thatcurrently receive public funding do notconstitute evidence that REDD will bepursued independently of carbon mar-kets. On the contrary, such pro-grammes are taxpayer-funded meansfor setting up the technical, legal andpolitical infrastructure for the expandedmarket in forest carbon that will ulti-mately be demanded by big polluters inthe US and elsewhere.

The new pollution licenses to begenerated by REDD are designed in away that obstructs the only workablesolution to climate change: keeping oil,

coal and gas in the ground. Like thecarbon credits produced under theKyoto Protocol’s Clean DevelopmentMechanism (CDM), they are not intend-ed to result in any net climate gain, butmerely to ‘compensate’ for excessivefossil fuel use elsewhere. In reality,they fail to achieve even this null result.Like CDM credits, they exacerbate cli-mate change by giving industrializedcountries and companies’ incentives todelay undertaking the sweeping struc-tural change away from fossil fuel-dependent systems of production, con-sumption, and transportation that theclimate problem demands. They wasteyears of time that the world doesn’thave to solve this problem.

Worse, biotic carbon—the carbonstored in forests— can never be climat-ically equivalent to fossilized carbonkept underground. This is because car-bon dioxide emitted from the burning offossil fuels adds to the overall burdenof carbon perpetually circulatingbetween the atmosphere, vegetation,soils and oceans. However, carbondioxide stored in forests is not a per-manent sink for carbon in the sameway as fossilized carbon. This inequiv-alence, among many other complexi-ties, makes REDD carbon accountingimpossible, allowing carbon traders toinflate the value of REDD carbon cred-its with impunity and further justify theincreased use of fossil fuels. In 2009,even Interpol has warned against thevulnerability of REDD to internationalfraud and corruption.

REDD’s focus on the mass produc-tion of pollution licenses for industriesin rich countries would inevitably neg-lect the needs and violate the rights ofordinary people throughout the world.In the South, REDD would transformthe carbon in living trees into privateproperty so that it can be awarded ortransferred to private corporations inthe North.

Global sign-oncampaignagainstschemes forreducingemissions fromdeforestationand forestdegradation


Despite efforts to create safeguardsto prevent the violation of the humanrights of Indigenous Peoples and for-est-dwelling communities, there is noguarantee to their effectiveness. In theworst case, REDD could inaugurate amassive land grab that would leaveIndigenous Peoples and forest-dependent communities with nothing.In the North, meanwhile, REDD creditswould enable fossil fuel-related corpo-rations to maintain business as usual,to the detriment of communities affect-ed by fossil fuel extraction and pollu-tion.

In this context, the idea that REDDcould help secure the territories or con-solidate the rights and livelihoods offorest-dependent peoples is ludicrous.In the voluntary carbon markets, car-bon forestry and REDD-type projectshave already resulted in land seizures,violent evictions, forced displacement,violations of Indigenous Peoples’rights, militarization, loss of access toland and livelihood, loss of biologicaldiversity, fraud, coercion and the cor-ruption of the sacred. Inclusion offorests and tree plantations in the giantcompliance carbon market could onlymultiply such abuses.

In addition, climate policy negotia-tions at the international and nationallevels are considering the inclusion ofsoils and agricultural practices intoREDD and other carbon marketingschemes. Just as Indigenous Peoplesand forest dependent communities arethreatened by forest-based REDD,agriculturalists, pastoralists and peo-ples’ food sovereignty will be seriouslythreatened should this come to pass. Ineffect, this will extend the commodifica-tion of lands as offsets for wealthy pol-luters over much of the earth’s surface.As well, we reject any incentive to usethe oceans for REDD projects as well.

Further, because every REDD proj-ect would affect not only forest commu-nities, but also people suffering fromthe operations of companies buyingREDD offset credits and indeed thoseimpacted by the climatic damageincurred by the project, the consent ofvast numbers of people would need tobe obtained for each project – some-thing REDD practitioners have nointention of attempting.

REDD would also endanger forestconservation itself, by giving short shriftto many of the characteristics of forestsessential to survival – the complex anddiverse ways in which Indigenous Peo-ples and forest-dependent communi-

ties constitute homes, livelihoodsources, storehouses of biodiversityand medicines, regulators of water-sheds, and centres of culture and spiri-tuality – while failing to address theunderlying causes of deforestation.REDD initiatives are set to includeindustrial plantations and even theplanting of genetically modified trees.REDD could indeed become, in thewords of The New York Times, a ‘cashcow for forest destroyers.’

Forests have been and can only beprotected through locally-led forestrygovernance, strong rights and institu-tions for forest-dependent people,especially Indigenous Peoples, locally-initiated investments, strictly enforcedbans on trade in timber products,addressing excessive consumption inthe North and so forth. Fixing a climatecrisis caused in the main by the largehistorical fossil fuel users in the Northmust not be a burden borne by disen-franchised Indigenous and forest-dependent peoples in the South. Thereis indeed a climate debt the North owesthe South and to imagine that it couldbe paid off by investments in REDDprojects that generate carbon creditsfor industrialized countries would bethe height of irony.

� Website:www.durbanclimatejustice.org


Africa Energy Week 2010 (AEW)will once again prove to be theessential forum for the interna-

tional oil and gas industry to gaininsights into the current developmentsand future opportunities in the Africanoil and gas industry. This pan AfricanConference and Exhibition is the bestopportunity in the region to meet Minis-ters and senior government delega-tions from all over Africa. AEW is theleading event for African governments,national and international oil compa-nies to announce their future plans,launch new projects and cement inter-national collaborations.

Exclusive declarations will be madeby Ministers and senior representativesfrom across Africa. H.E. Al ZubairAhmed Al Hassan, the Minister of Ener-gy & Mining, Sudan will deliver anupdate on the licensing round and newexploration blocks in Sudan. H.E. DrEugene H Shannon, Ministry of Lands,Mines & Energy, Republic of Liberia willspeak about renewable and nonrenewable energy developments. H.ECelestin Mbuyu Kabango, Minister ofHydrocarbons, DR Congo will addressthe progress the DRC has made andthe opportunities that exist in the future.Ambassador Saidu Pindar, Chairmanof Nigeria Sao Tome & Principe, JointDevelopment Authority will update del-egates on the latest drilling campaignand Salah Hassan Wahbi, President &CEO of Sudapet will deliver a keynoteon Sudapet’s journey of transformation.

African Ministers together with sen-ior representatives from national oilcompanies and major industry players,will discuss the role of African countriesas a factor in global energy securityand the recent and future licensingrounds. H.E. Gabriel M Obiang Lima,Minister Delegate, Mines, Industry &Energy, Equatorial Guinea, will discussinternational interests in Africa and

future pan African collaborations andthe Honourable Erkki Nghimtina, Minis-ter of Mines & Energy, Namibia willspeak about promoting the effectivetransfer of technologies from the oper-ators and alliance partners to Africanindividuals and companies.

Other distinguished speakers andguests include:• H.E. Dipuo Peters, Minister of Ener-

gy, South Africa• Honourable Vincent Karega, Min-

istry of Infrastructure, Rwanda• Prof Ogunlade R Davidson, Minis-

ter of Energy & Water Resources,Sierra Leone

• Louis Seck, Director of RenewableEnergies, Ministry of Energy, Sene-gal

• Kassoum Fadika, Director General,Petroci

• Yona Killagane, Managing Director,Tanzania Development PetroleumCorporation

• Fituri El-Haj, Manager of Explo-rations, Libya National Oil Corpora-tion

• Franco Conticini, General Manager,Eni East Africa SpA – MozambiqueBranch

• Tim O’Hanlon, Vice-President, Afri-can Business, Tullow Oil Plc

• Leon Lizamore, Senior Advisor toCountry Chairman, Shell SouthAfrica

• Bjørn Inge Tønnessen, ExecutiveVice President, Svenska PetroleumExploration AB

AEW EXHIBITION The annual sell-out exhibition, a per-manent feature of the Africa EnergyWeek, will once again unite internation-al blue chip oil, gas and alternativeenergy companies and will be themeeting place where buyers and sup-pliers can meet to do deals and discussthe energy solutions of the future.

� Contact: Joanna Kotyrba (Confer-ence, speakers and guests)Tel: +44 20 7978 0092 E-mail [email protected] Rosie Topp (Exhibition)Tel: +44 20 7978 0081 E-mail [email protected] Website: www.cwcaew.com

Africa Energy Week27-30 SEPTEMBER 2010, CAPE TOWN, SOUTH AFRICA

Huge energy savings opportuni-ties are to be found in miningand industry. Never has the

business case for saving electricitybeen stronger, or the need so pressing.A piecemeal approach will bring sav-ings, but a systems approach will yieldfar greater and more sustainable sav-ings for the same investment. A sys-tems approach brings together all ofthe major plant items and processesand considers these as components ofone interlinked system, which needs tofunction optimally. The combined resultis synergistic and resultant savings farexceed the sum of the parts.

In this seminar, facilitated and guid-ed by Eskom DSM, the Mining andIndustrial Energy Optimisation (MIEO)Chapter of the Southern African Associ-ation for Energy Efficiency (SAEE)brings together leading manufacturersand suppliers of all major energy con-suming plants with one key objective:to show where, how and on what scaleenergy savings are to be found. Lastyear, considerable work went into thepreparation to ensure that delegateswould get balanced and practicalguidelines for finding and evaluatingsignificant energy efficiency and ener-gy saving opportunities in their ownplant. This year the MIEO aims to leaddelegates in the steps toward takingaction to realise real energy saving.

Topics and material are generic andnot vendor specific to ensure that theyare universally applicable. The seminarwill be interactive and delegates will beprovided with the necessary informa-tion in response to specific queries.Funding options for energy saving proj-ects will also be presented and dis-cussed.

Compressors, conveyors, drives,fans, motors, pumps, funding and farmore are considered.

The seminar is aimed at the rele-vant decision makers who wish to:• Acquire sufficient knowledge to

assess energy saving potential intheir own plant

• Ensure maximum returns for invest-ment in energy efficiency and sav-ings initiatives

• Know what questions to ask whenpresented with energy efficiencyprojects

� Contact: Sandra du PreezSAEEE-mail: [email protected]

22 Energy Management News Energy Management News 22

Seminars for mining and industry energy efficiency

and energy savingA SUSTAINABLE SYSTEMS APPROACH TO INDUSTRIAL

ELECTRICITY MANAGEMENT

UCT–IET–IEEEenergyseminar

RENEWABLE ENERGY IN SOUTHAFRICA: INITIATIVES,

OPPORTUNITIES, CHALLENGESAND INNOVATION

The recent energy crisis high-lighted the need for a diversityof electricity generation tech-

nologies in South Africa. Further-more, the difficulty experienced byEskom in securing World Bank fund-ing for the completion of Medupi, andthe South African government’s deci-sion to withdraw funding from thePebble-bed Modular Reactor (PBMR)nuclear programme, reinforces theneed for alternatives to fossil-fuelbased electricity generation. Thesefactors, together with the currentprogress on the Renewable EnergyFeed-in Tariff (REFiT) has createdsignificant interest in RenewableEnergy generation for South Africa.Opportunities also exist for innova-tive solutions to South Africa’sunique challenges. A UCT seminarwas held on 24 June, and the objec-tive of this was to convey the strate-gic framework and direction forRenewables in South Africa today.This would be achieved by under-standing the following:• DoE’s policies, targets and initia-

tives for Renewables in SouthAfrica;

• DST’s initiatives for supportingresearch and innovation in thissector;

• SANERI’s new mandate in trans-forming to SANEDI; and

• Current research and internation-al collaboration relating to thissector.

� Contact: Prof. SP ChowdryDepartment of Electrical Engineer-ingUniversity of Cape TownTel: 021 650 4019E-mail: [email protected]

Energy Management News 2323 Energy Management News

SEMINAR INFORMATIONWestern Cape Cape 10 August 2010Gauteng Midrand 25 August 2010North West Rustenburg 9 September 2010North West Klerksdorp 15 September 2010KwaZulu Natal Richards Bay 6 October 2010The seminar fee is R2 750. This low fee is only possible because Eskom is sup-porting the event by providing venues and catering.

TYPICAL SEMINAR PROGRAMMEGauteng – KwaZulu Natal – Mpumalanga – North West – Western Cape


The African Ministerial Conferenceon the Environment (AMCEN)was established in 1985 as a

forum to strengthen co-operation onenvironmental issues between Africangovernments. The continent was facingsevere environmental degradation.

It was established when Africanministers met in Egypt and adopted theCairo Programme for African co-opera-tion. The Conference is convenedevery second year. AMCEN is a per-manent forum where African ministersof the environment discuss mainly mat-ters of relevance to the environment ofthe continent.

Through economic, technical andscientific activities, AMCEN’s aim is tohalt and reverse environmental degra-dation and support efforts aimed at sat-isfying the food and energy needs ofthe people of the continent. Since itsinception twenty years ago, the Africancountries are still co-operating on envi-ronmental matters through AMCEN’sinter-governmental sessions. So far tensessions of the Conference have beenheld

The 13th Session of AMCEN tookplace in Bamako, Mali, beginning Sun-day, June 20 – 25.

The theme for the conference was‘Enhancing the interrelationship bet-ween climate change, biodiversity anddesertification for sustainable develop-ment’. Its main objective is to provide aplatform for environment ministers todeliberate on substantive issues ofimportance to Africa, which must beaddressed in the context of desertifica-tion, as well as the ongoing negotia-tions on climate change and biodiversi-ty.

It is important to note that while theAfrican region offers significant poten-tial for human, social and economicdevelopment it is, however, facing hugechallenges which include rising levelsof poverty, and inappropriate develop-

ment practices are among the mainfactors influencing the state of the envi-ronment in Africa.

Other factors that have led to con-tinued environmental degradation in-clude climate change, land degradationand desertification, biodiversity loss,drought and other natural disasters,disease, ineffective development poli-cies, unfavourable terms of trade anddebt.

The preparation of the work pro-gramme of the African Ministerial Con-ference on the Environment (AMCEN)has in recent years taken into accountthe commitments made by heads ofState and others in the United NationsMillennium Declaration, adopted inNew York in September 2000; in theaction plan of the environment initiativeof the New Partnership for Africa’sDevelopment (NEPAD); in Chapter VIIIof the Plan of Implementation of theWorld Summit on Sustainable Develop-ment, held in Johannesburg, SouthAfrica, from 26 August to 4 September2002; in the Millennium DevelopmentGoals; and in the aims of and decisionsby AMCEN at its sessions.

The ministerial dialogue during this13th Session, therefore, deliberated onand review, among others, progressmade towards: 1. Africa’s development of a common

negotiating position on a compre-hensive international climate changeregime beyond 2012;

2. The development of a comprehen-sive framework of African climatechange programmes;

3. Africa’s preparations for developinga common negotiating position onthe international regime on Accessand Benefit-sharing of genetic re-sources (ABS);

4. Africa’s approach to continent-widemeasures to combat desertification. It is envisaged that the dialogue will

lead to adoption of Africa’s current

negotiating position on climate change;the continent’s negotiating position onthe ABS; and adoption of a compre-hensive framework of African climatechange programmes. Preparations willtake place for developing a commonnegotiating position on the internationalregime on Access and Benefit-shar-ing of genetic resources (ABS). � Contact: Mr. Peter Acquah AMCEN Secretary Tel +254 20 762 4289 E-mail: [email protected]

13th Session of the African MinisterialConference on the Environment BAMAKO , MALI, 20 – 25 JUNE 2010


Over past years, a number of dis-cussions have taken place inorder to evaluate opportunities

for the development of a Supergrid.The following concept would bringtogether the latest technology in solar &wind power in order to ensure a securesupply of electricity in between theEuropean Union & North Africa.

Europe has the world’s most pros-perous wind resources and the mostsophisticated technologies to guaran-tee progress in transforming wind andsolar power into electricity. With aSuperGrid in place, the EuropeanUnion would be able to overcome themajor barriers on the way to create asingle electricity market and offer aneffective electricity supply to its Mem-ber States.

As a result, SuperGrid will meet thenation’s growing energy demands andreduce our consumption of fossil fuels.Furthermore, SuperGrid will be an envi-ronmentally friendly energy infrastruc-ture allowing the reduction of green-house gases and limiting globalwarming to a 2°C average temperatureincrease. Additionally, Supergrid willoffer a truly unique opportunity for jointactions by the Member States in pursuitof the common goals.

This event will bring together lead-ing experts to discuss the latest Super-Grid developments and technologicalinnovations in order to share experi-ence and knowledge. We will offer anexceptional platform for learning andnetworking in the face of a strategiclunch and panel discussions. Join us inLondon on the 19th of January 2011 tocatalyze business development andsuccessful renewable practices.EVENT FORMATThe event will begin with Pre-confer-ence Workshop on the 19tth January2011 followed with 2 days conferenceon the 20th – 21st.

There will also be a welcome recep-tion in the evening of Thursday the 20thJanuary 2011, which will provide to ourattendees invaluable networking op-portunities.

Day 1 will consist of intensive andinteractive workshop sessions, whiledays 2 and 3 of the conference will con-sist of keynote and case study presen-tations. Panel discussions and Q&Asessions will be hosted – a formatwhich allows more dynamic informationexchange and a thorough explorationof issues.

The conference will also include anexhibition by the sponsors in the ses-sion break catering area immediatelyadjacent to the conference rooms. Thisgives sponsors great exposure andgives delegates valuable informationand resources.

WHO SHOULD ATTEND• System integrators• Regulators & Policy Makers• Quality Managers• Investors• R&D institutes• Banks• Equipment technology vendors• Operation & Network Managers• Municipalities• Power utilities• Managers of System Development

& Planning• Consultants• Marketing Managers• Business Development Managers• University Representatives• Power & utility integrators• Vendors• Communication Service Providers• Technology suppliers• International grid operators

WHO IS THE ORGANISER?InnoQube is a leading Strategic Busi-ness Intelligence Company that con-centrates exclusively on providing thelatest competitive intelligence and valu-able business networking platformssought after by our clients to sustaintheir global positioning. They providecutting-edge information and globalexpertise to ensure their clients gain acompetitive and invaluable experienceto accelerate their business perform-ance.

Our HQ is strategically located inBratislava, Slovakia, while their collab-oration partners are situated in Europeand Asia Pacific to cater for your globalbusiness needs. InnoQube is managedby a highly dedicated and resourcefulteam of professionals with years ofexperience in various fields.

The structure of our conferencesprovide for more interactive sessions(e.g. panel discussions, Q&A sessions)and a greater variety of relevant issues.We use professional support and wellinstructed speakers to achieve highquality presentations.� Contact: Sarah AdamsProject ManagerInnoQubeTel: +421 944 263926Fax: +421 233 010337Skype: InnoQubeE-mail: [email protected]:www.worldconferences.co.uk

Synergistic SuperGrid forTransmitting Energy Overseas 2011COLLECTING THE SUPERGRID PUZZLE AND MOVING CLOSER TO REALITY

JANUARY 19-21, 2011 – LONDON, UKCALL FOR PAPERS

‘We believe that SuperGrid is asynergistic ridge which will createEurope’s future’ – InnoQube


SEPTEMBER 20108 – 9ACCELERATING THE REGIONSPARTICIPATION IN GLOBALCARBON MARKETSMexico City, MexicoWebsite: www.greenpowerconfer-ences.com

OCTOBER 201011 – 14CERTIFIED ENERGY AUDITORCOURSE (CEA)Birchwood Executive Hotel andConference Centre, Johannesburg,South AfricaContact: Christina den HeijerTel/ Fax: +27 (0) 18 294 7174Cell: +27 (0) 82 334 0923E-mail: [email protected] KrugerTel/ Fax: +27 (0) 18 294 7174Cell: +27 (0) 82 552 6865E-mail: [email protected]

CERTIFIED CARBON REDUCTIONMANAGER COURSEBirchwood Executive Hotel andConference Centre, Johannesburg,South AfricaContact: Christina den HeijerTel/ Fax: +27 (0) 18 294 7174Cell: +27 (0) 82 334 0923E-mail: [email protected] KrugerTel/ Fax: +27 (0) 18 294 7174Cell: +27 (0) 82 552 6865E-mail: [email protected]

11 – 15CERTIFIED ENERGYMANAGEMENT COURSEBirchwood Executive Hotel andConference Centre, Johannesburg,South AfricaContact: Christina den HeijerTel/ Fax: +27 (0) 18 294 7174Cell: +27 (0) 82 334 0923E-mail: [email protected] KrugerTel/ Fax: +27 (0) 18 294 7174Cell: +27 (0) 82 552 6865E-mail: [email protected]

13 – 15CERTIFIED MEASUREMENT ANDVERIFICATION PROFESSIONAL Birchwood Executive Hotel andConference Centre, Johannesburg,South AfricaContact: Christina den HeijerTel/ Fax: +27 (0) 18 294 7174Cell: +27 (0) 82 334 0923E-mail: [email protected] KrugerTel/ Fax: +27 (0) 18 294 7174Cell: +27 (0) 82 552 6865E-mail: [email protected]

NOVEMBER 20109 – 11RENEWABLE ENERGY AFRICACONFERENCE & EXPOSandton Convention Centre, Johan-nesburg, South AfricaContact: Cerise Kruger, ScatterlingsTel: +27 (0) 11 463 5085Fax: +27 (0) 11 463 3265E-mails: [email protected] [email protected]: www.soafrica.com

10 – 11SAECC2010, CONVENTIONEmperors Palace, Johannesburg,South AfricaContact: Erika KrugerTel: 018 290 5130Fax: 086 512 7122Cell: 082 428 7386E-mail; [email protected] StrydomTel: 018 294 7174Fax: 086 512 7135E-mail: [email protected]

27 – 30AFRICA ENERGY WEEKCape Town, South AfricaWebsite: www.cwcaew.com

JANUARY 201119 – 21SYNERGISTIC SUPERGRID FORTRANSMITTING ENERGYOVERSEAS 2011London, United KingdomContact: Sarah Adams, Project Man-agerTel: +421 944 263926Fax: +421 233 010337Skype: InnoQubeE-mail: [email protected]:www.worldconferences.co.ukhttp://worldconferences.co.uk/confer-ences/super-grid-fosg-eu-utilities-renewable-energy-wind-solar-tso-hvdc-hvac-smart-grid-regulation-2011/

Visit www.erc.uct.ac.za forfurther events and details

Energy events 2010–11


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The newsletter is published quarterly by the Energy Research Centre (ERC) of theUniversity of Cape Town. (ERC is an amalgamation in 2004 of two organisations atthe University: the former Energy Research Institute and the Energy and Development

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Documents

IN THIS ISSUE Dutkiewicz Family Scholarship recipients · Conducting a power saving audit at a facility of this nature is therefore demanding and requires considerable time and resources