Real Estate Investor Magazine South Africa May 2013 | Page 52

STRATEGIES

BY ANGELIQUE REDMOND

Savings For
Your Business
Eskom’s Andrew Etzinger talks rebates

that specialise in identifying opportunities for
achieving reductions in electricity
consumption, and scope and execute projects
as basis for establishing a four-way partnership
between Eskom, the farmer, an ESCo and a
measurement and verification expert.

4. Performance Contracting

T

he recent rise in electricity prices has
caused concern in all sectors of busin ess,
here to answer some questions and
concerns you might have is Andrew Etzinger,
Senior General Manager of Eskom, IDM, the
utility demand-side intervention division of
Eskom.
What effect, in your opinion, will the increase
in electricity tariffs have on business?
Andrew: Eskom tried to balance the needs of the
country in its application for an increase; a balance
between the country’s needs for a secure supply of
electricity and at the same time managing growth
and job creation.
What exactly is the Standard Offer program?
Andrew: Eskom has for four rebate programmes.

1. Standard Product
The programme offers funding for customers who
achieve energy savings greater than 1kW and
more than 2 MWh per annum.
• Funding is capped at R1.875 million
per project.
• Only technologies approved by Eskom will
be considered, including off-the-shelf products
such as energy efficient lighting, heat pumps
and electricity and water saving shower heads.
• The programme is ideal for farms, retail outlets,
shopping centres, guest houses, B&Bs, hotels,
lodges, factories, and residential estates.
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May 2013 SA Real Estate Investor

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A new, streamlined approval process takes less
than 2 weeks from project submission.
Projects may be undertaken by customers
themselves or an Energy Services Company
(ESCo) or Project Developer on their behalf.

2. Standard Offer
The programme offers funding for the
implementation of large retrofit projects.
• Electricity savings to be achieved should range
from 50kW to 5MW sustainable over a period
of three years.
• Focus is on electricity usage during the 16
weekday hours of 6am to 10pm.
• Technologies supported include lighting
systems, building management systems, hot
water systems, industrial and commercial
solar water heating systems, process
optimisation systems and renewable
technologies such as biomass waste;
geothermal, solar, thermal gradient and ground
source heat; wind energy; and hydro, tidal and
wave power.
Projects may be undertaken by customers
themselves or an Energy Services Company
(ESCo) or Project Developer on their behalf.

3. ESCo Model
The programme offers funding for the
implementation of large retrofit projects.
• Potential load savings should be 1 MW
or more.
• It is aimed at Energy Services Companies

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The programme supports verified bulk energy
savings across multiple sites and technologies
by contracting with a single project developer.
It was developed to simplify project approval,
reduce contractual complexity, improve
sustainability and shorten project lead times.
Minimum project size should exceed
30GWh of savings sustainable over a period
of three years.
The focus is on electricity usage during the 16
weekday hours between 6am and 10pm.

Who is this aimed at?
Andrew: The rebate programmes are aimed at
retail outlets, shopping centres, lodges, hotels,
guest houses, B&Bs, commercial and industrial
parks, residential estates, farms, factories,
manufacturing plants, paper mills, mines,
distribution centres – businesses of all types
ranging from very big to very small in all sectors of
the South African economy.
Many people are very worried about the price
increases, not just from a household point of
view but also the knock on effect for consumers
and business. How can this be alleviated, or
minimised?
Andrew: Through IDM, both businesses and the
residential sector can tap into the energy efficiency
technologies that Eskom provides which reduce
the electricity consumed and helps save rands.
For households, you are looking at about R3 000
savings on an electricity bill if you have 30 down
lighters instead of incandescent lights.
B e s id e s t he I DM e ne r g y e f f ic ie nc y
technologies, there’s a protection built into
www.reimag.co.za