Banker S.A. January 2015 - Edition 12 . | Page 21

SPECIAL FOCUS NEVER MIND THE CRIPPLING LOSS TO THE INDIVIDUALS AND COMPANIES INVOLVED, THIS INACTIVITY IS HOBBLING GOVERNMENT’S ABILITY TO MEET ITS OWN GOALS. appealing, because they provide the energy without needing to be connected back into the system. “If our goal is for renewable solutions to deliver power to low-income houses, solar water heating is the lowhanging fruit,” he says. General Manager of Group Customer Services at Eskom. He adds that other power-saving programmes need to be introduced, including LED lighting, the installation of ceilings and ceiling installation, and large propane gas (LPG) stove roll-outs. At the same time, the utility-scale renewable energy projects (including large scale wind and solar farms) that could have a hope of delivering energy into the grid and ultimately to low-cost housing, are also encountering stumbling blocks. After two extremely successful phases of the government’s utility-scale programme, projects in the third phase are struggling to get to financial close, largely due to Eskom not being able to guarantee connections to the grid. “Some developers are actually opting for building their own substations,” says Forder. He explains that this makes rooftop solar thermal power implementations even more IS HUMAN SETTLEMENTS THE SOLUTION? While the future of the industry that provides solar water heating to low-cost housing is looking rather bleak, Green says that a solution may present itself in the form of the Department of Human Settlements, a government department dedicated to the holistic delivery of housing to low-income South Africans. They have a target of delivering 1.5 million homes in the next five years. “Human Settlements are receptive to meeting the Green Economy Accord requirements and building regulations by going energy efficient,” Green says. “Hypothetically, they could access a different budget by stating that all low-income houses must have a solar geyser that meets certain criteria.” Williams agrees that this could make all the difference: “If Human Settlements could take over the new developments on the cards, they could see that each house is fitted with a solar water geyser.” While there are potential solutions and good intentions, for the time being, the whole low-cost solar water heater industry is in limbo. And since the desire to meet goals for power reduction and getting hot water to low-income citizens haven’t proven to be motivation enough for government, it’s unclear what will motivate them to act to resolve this mess. City of Johannesburg’s green bond The City of Johannesburg is the first municipality to list a green bond on the Johannesburg Securities Exchange. The R1.46-billion bond will raise money to finance green initiatives, such as the Bio Gas to Energy Project and the Solar Geyser Initiative, as well as other projects that reduce greenhouse emissions and contribute to a resilient and sustainable city. “This is the first green bond to be listed in the 2013/2014 financial year and marks a historic occasion, as Joburg is the first city in the C40 Cities Climate Leadership Group to issue the green bond,” said Mayor Parks Tau. “This clearly demonstrates investor confidence in the City of Johannesburg and commitment to environmental stewardship and climate change, while receiving a market-related financial return.” Of course, the proof of the funding is in the implementation. “The reality in the socio-economic uplift programmes is that there is a local industry which has the capacity to build 50 000 units per month, but all the factories are mothballed because of the technical drafting error,” says James Green. “That having been said, all holistic and incentive programmes will contribute towards a more energy efficient South Africa. It is a question of getting the message out there.” Edition 12 | BANKERSA Housing-Energy Efficiency.indd 19 19 2014/12/18 10:01 AM