Jose Luis Bobes, Team Leader KfW Facility (GEEF), GFA Consulting GmbH & IDC
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Transcript of Jose Luis Bobes, Team Leader KfW Facility (GEEF), GFA Consulting GmbH & IDC
Green Energy Efficiency Overview of Financed Cases
Jose-Luis Bobes, June 2013
Energy Saving vs Energy Efficiency Conference
South Africa: Energy Challenges
• Since the South African economy largely relies on coal reserves for electricity, many opportunities exist for Renewable energy (RE) and Energy Efficiency (EE) improvements.
• Currently, future energy supply is not expected to be sufficient to match the anticipated demand, and increased pressure on price and energy security, force industry players to focus on green initiatives (mainly RE and EE).
• Recurring power outages since early 2008 have highlighted the fact that electricity generation is unable to keep pace with demand.
COP17
Solutions to provide energy
COP17
Better: Be able to do more with the same
Late2010
2011
2012
2013
• Market Launch of the R500M Green Energy Efficiency Fund(GEEF)- Aggressive marketing with Industry Associations & Partnership with Eskom
IDC and KFW sign loan agreement for €48M and €2. 1M Technical Assistance and Capacity Building Grant
ESCO Market Study published-access to finance barrier to entry
17 companies financed at R174 million ( ca 35% of GEEF)69% of funds committed to SMEs
MARKET SITUATION
Constrained electricity supply and high prices
Constrained electricity supply and high prices
Access to finance barrier to EE/RE
investments
Access to finance barrier to EE/RE
investments
RESPONSE
Increased demand for ESCO services High cost of small
scale RE development
Increased demand for ESCO services High cost of small
scale RE development
HIGHLIGHTS/IMPACT
8MW cogen SACC plant-45GWh/yr and 46ktCO2
8MW cogen SACC plant-45GWh/yr and 46ktCO2
mass rollout of 310GWh
/34MW showerheads
mass rollout of 310GWh
/34MW showerheads
60% of committed funding to ESCOS
60% of committed funding to ESCOS
27 FREE Walk through audits and 4 investment
grade audits
27 FREE Walk through audits and 4 investment
grade audits
Industrial Energy Efficiency
Industrial Energy Efficiency
WHY GEEF: FINANCIAL ENABLERS:
IDC
impact
Green Energy Efficiency Fund
GEEF: Developmental and Environmental Impacts
CO2 TonsEquivalent
Avoided
383,445/year
Energy saved
386,930/year
Future Focus
17Number of Deals approved
Programme supported by the German Cooperation and Development Ministry
Future R174mAmount committed
circa: 35% of R500m
SWH Energy Performance ContractsCogeneration Waste to Energy Variable Speed DrivesRoof Top PV
INDUSTRIAL ENERGY EFFICIECYAND SELF USE RE
Frequently Asked Questions about GEEF
• Is GEEF compatible with Eskom IDM programs?
– Yes
• Can GEEF finance the end user?– Yes
• Do we have to pay for the GEEF Energy Audits/Technical Assessments?
– Depends
• Are the loans in Euro or Rand?– Rand
• Local Requirements?– Standard IDC strategy
• Pricing is always prime -2%
Frequently Asked Questions about GEEF (II)
• Can GEEF finance ESCOs?– Yes
• Why should I get a loan if my company has enough capital to finance from balance sheet?
– Cost of capital
• Will I get a loan even if I am (fill whatever the mental barrier)?
Marketing Tools
Conference Users Forum
Share experiences
Learn from each other
Provide feedback
Target Audience:
ESCOs
ESCO clients
Industry Workshops:
Foundries, Plastics, Automotive..
Remind the resources for your business:
GEEF Brochure
6 Funded Cases
6 Industry Sector brochures
Industry Workshop
Energy Audits
GEEF Website:
www.idc.co.za/development-funds/geef
Some Funded Cases
Case Study 1: 25% Reduction in Grid Electricity Consumption by Installing a Solar Photovoltaic (PV) System
• A Cape Town-based company that produces sport wear and leisurewear under license to an international brand.
• The company has embarked on a project to install a grid connected (grid-tied) rooftop PV system to generate 25% of the company’s annual electricity requirement
“Electricity accounts for more than 90% of our carbon emissions and is a scarce resource that is vital to the successful operation of our business. We are confident that the solar installation will generate between 30 – 40% of our energy requirement, thereby reducing our carbon footprint, save money and improve our sustainability into the future.”
William Hughes, MD, Impahla Clothing
Sector Textile Industry
Region Western Cape
Goals Reduced reliance on coal based electricity from grid
Investments Solar Photovoltaic (PV) system – 30kW peak
Financial Savings
Investment cost covered by energy and cost savings
Other Benefits
Positive image as a progressive environmentally friendly company
CO2 Reduction
50 CO2 tons per annum
Case Study 2: 18% Energy Savings from Utilisation of Waste Gas to feed a Combined Heat and Power (CHP) Plant
• The chemical production company wants to use the waste gas as fuel for a 7.8 MW CHP plant to replace part of the power supply from the grid.
• This results in 18% savings from using the waste gas to feed the CHP plant.
“The company spends close to R7-million on electricity a month, and this new co-generation plant will cut this bill by about 20%. The additional 8 MW capacity will enable the company to operate at full production compared with the 70% capacity because of electricity constraints. „
Claudio Siracusano, GM, SACC
Sector Chemical Industry
Region KwaZulu-Natal/South Africa
Goals Reduced reliance on coal based electricity from grid
Investments • 4 co-generation units• Scrubber plant
Financial Savings
• Investment cost covered by energy and cost savings
Other Benefits
Increased reliability from own energy supply
CO2 Reduction
46,000 CO2 tons per annum
Case Study 3: More than 40% Savings in Energy Consumption with Solar Water Heaters
• A financial intermediary that provides Solar Water Heaters (SWH) on a lease-to-own agreement to private households and commercial buildings.
• Solar water heating systems are one of the most cost-effective uses of solar energy in South Africa as they replace more than 40% of electric heated water.
“The Green Energy Efficiency Fund will enable us to roll-out Solar Water Heaters to at least 400 households, by removing the challenge faced by many clients in financing the high upfront costs of SWH.”
Quinton Zunga, CEO, Solar Network
Sector Financial Services
Region Gauteng
Goals Reduced reliance on coal based electricity from grid
Investments Solar Water Heater (SWH) – lifetime of >20 years
Energy Savings
2,700 KWh per annum (avg)
Financial Savings
Investment cost covered by energy and cost savings
Other Benefits
Positive image due to carbon footprint reduction
CO2 Reduction
2.8 CO2 tons per annum per system
Thanks!
Visit: www.idc.co.za/development-funds/geef
for more information about
GEEF: Green Energy Efficiency Fund