Archive for the ‘Greencon Solar Water Heating Solutions’ Category
April 14th, 2010 | 
Author: The government has set the target of 10 000 GWh of renewable energy generation by 2013 and Eskom is expecting its Solar Water Heating Programme to contribute up to 23% of this target. According to Cedric Worthmann, the Solar Water Heating Programme manager at Eskom, the programme has delivered an average of 6.4 GWh per annum to date.
Worthmann says that the significant increase of the rebate was calculated in order to allow a five-year payback period. “This calculation is done taking into account the average cost of systems, average savings per system, average electricity tariff rate and cost of capital at prime interest rate per system size,” says Worthmann.
Solar by law?
James Shirley, General Manager at Kayema Energy Solutions, says that although the Eskom rebate increase has caused a significant increase in solar water heater sales, he doubts that the government’s target will be reached.
“The rebate is definitely helping the solar water heating industry, but I doubt that government will be able to achieve such significant market penetration,” says Shirley. “Eskom have raised the rebate in order to make solar water heating systems financially viable for the public, but unless government is going to make solar water heating systems compulsory for all new buildings, I don’t see how we will achieve 10 000 GWh of renewable energy generation by 2013.”
Barry Bredenkamp, operations manager at NEEA (National Energy Efficiency Agency), says that he doesn’t think it will be necessary or practical for government to make solar water heaters compulsory. “In some instances, solar water heaters are just not practical,” says Barry before explaining that if a building’s orientation doesn’t lend itself to the optimal use of the technology, or for example, where indigenous trees provide a natural barrier between the building and the sun and where an alternate technology, such as a heat pump, may provide a better solution for the application.
“However, with the rising price of electricity, the increase in subsidies and the reduction in the price of solar water heaters as more competitors enter the market, I believe we will see a natural evolution from conventional electrically-operated geysers to more efficient solar water heaters, without legislation being introduced,” says Bredenkamp.
Changing the rebate requirements
Shirley also says that the requirements that enabled consumers to qualify for a solar water heating rebate (i.e added cost of installed equipment) were too high, and offset the previous rebate amount, and the administrative work around claiming the rebate was laborious. “Eskom had a lot of prerequisites concerning not only the heating system, but also the installation, putting a lot of consumers off the process of installing these systems because, it was too difficult to claim the rebate,” says Shirley.
According to Shirley, there is a lot of paperwork involved in claiming your solar water heating rebate from Eskom, but it isn’t difficult. “You generally wait about eight weeks to get your money back. This is not an extremely long time, but I’m thinking that people are a bit strapped for cash when they are waiting for their claim to be processed, which is deterring them from getting a solar water heating system.”
“The new process for claiming is very simple: the reason people think it is difficult is that generally, people do not read instructions, and are being misled by suppliers that are not prepared to join the programme,” says Worthmann.
www.eskom.co.za/dsm states the rebate system is not in anyway exclusive. The current requirements of a supplier to sell systems that qualify for rebates are the following:
• Be able to offer a five year guarantee
• Submit documents, including public liability and company details
• Have system tested and passed at the SABS for the following:
o Safety
o Mechanical
o Thermal
The actual rebate claiming process
The ten step program on reclaiming a rebate (according to the Eskom-system), can be summed up as follows:
• Thoroughly research the solar water heating system.
• Call EEDSM Help or visit www.eskom.co.za/dsm to get an approved supplier.
• Get an Eskom approved installer to install the (Eskom approved) system.
• Make sure an (Eskom approved) timer is installed by an ECB registered electrician.
• Get your supplier, installer and electrician to fill out the relevant details on your claim form.
• Complete the rest of the details and attach the relevant documents (original invoice, copy of ID, copy of utility bill and/or electricity bills are listed as examples).
• Post the claim to the facilitating auditors (Deloitte) in a self addressed envelope or drop it off in a designated drop box within six months of installation.
• Wait for a SMS notification that a) the facilitating auditors have received your application and b) when your application is processed and queued for electronic funds transfer/your form is incomplete.
• Payment is made within eight weeks of receipt.
• Random technical audits will be carried out on some systems to ensure installation quality and operation.
Types of solar water heating systems
According to Shirley, there are two main types of solar water heating system; the closed loop and the open loop heating systems. “A closed loop system uses heat exchanger fluid and an open loop means that your actual drinking water goes through a tube through the solar panel.” Shirley says that South Africans have three general solar water heating categories to consider when choosing a system:
1. Thermo-siphon systems. This solar water heating system works like a heating suction where the tank sits above the solar panel of tubes. Water temperature and density are used to create the heat cycle of the system.
2. Pumped or split system. The tank of a pumped or split system is separate from the collector (the tank is usually in the roof in this case).
3. Retrofit. Although a bit of money will be saved when retrofitting an electric geyser to work as a solar water geyser, Shirley believes that this is not the correct way of installing a solar water heating system if the current geyser is more than three years old and an entirely new system should be installed instead of retrofitting an existing geyser.
Proven technology – the problem is money and public buy-in
The value of Eskom’s solar water heating rebate is based on the capability of the system to replace the use of electrical energy and all solar water heating systems included in the programme will have a SABS test conformity report rating their efficiency (www.eskom.co.za/dsm). Based on these test results, a system will qualify for a rebate ranging typically between ZAR1 500 and ZAR5 000.
www.eskom.co.za/dsm states that electrical geysers use between 30% and 50% of a household’s monthly electricity bill and replacing a conventional geyser with a solar powered system will reduce that percentage of electricity consumption by up to 70%.
“The technology is proven internationally and people now trust the technology in South Africa. The only problem is funding. Even though the solar water heating rebate has made the payback period more viable, the general public still has to be convinced to spend the initial capital on purchasing a system. The client then needs to recover the subsidy from a third party, which means that they are burdened with the administrative issues involved,” says Shirley.
The deadlines
“The important thing is that the rebate won’t last forever and it has been put in place to encourage people to switch now rather than later,” says Shirley.
Worthmann confirmed that there is in fact a deadline for Eskom’s programme. “The Solar Water Heating Programme will continue until 2014 as per an agreement with the Minister of Energy, or when the first million units are installed,” says Worthmann. “Eskom is engaging with various financial institutions and insurance companies, to increase the uptake of SWHs in the programme. People don’t want to spend money on replacing a system that is functioning, which is why we are engaging with the insurance companies to replace damaged geysers with solar. We are also focusing on working with the municipalities to assist them to help their consumers to convert. This rebate will be offered to all qualifying persons and installations as long as funds are available.”
Electrical geysers – who is losing?
“In the solar water heating industry, almost all geyser manufacturers have either completely switched to solar water heating systems or they are including solar ranges into their product offerings,” explains Shirley. “The industry knows that solar water heating is the future and everyone is adapting. I don’t think there are any suppliers who truly believe that selling only electrical geysers is a financially viable option – power is getting too expensive and that situation is not going to change. We need to change the way we heat water.”
Bredenkamp comments that although solar water heating systems are more widespread today, there are still people selling electrical geysers. “Like I’ve said before, there are certain applications where there is no choice but to install an electric geyser. Many solar water heaters are installed in parallel with an electric geyser, which serves as a back-up for when there are extended periods of inclement weather, so we can’t just do away with electrical geysers,” says Bredenkamp.
Solar water heating life cycle
Shirley says that, “the life cycle of electric geysers and solar water heating systems are more or less the same”. “Electric geysers generally have a five year guarantee, some have a ten year guarantee, and the design lifetime of a good solar water heating system is around 20 years.
Although www.eskom.co.za/dsm states that most systems are guaranteed for five years, the expected life of the equipment is between ten and 15 years and that each piece of equipment has a different profile, which depends on various elements such as geographical area, water usage profile, number of users and the size of the system.
Bredenkamp explains that even if you had to replace a relatively more expensive solar water heating system approximately every ten years, the energy savings that one receives is still worth the more expensive initial costs.
“The energy savings will definitely make up for the initial costs of the system, but there are some instances where it would not be worth it, such as a holiday home that is only used for one month of the year. It is not really a good idea having a ‘un-utilised’ solar water heater installed, as the pressure build-up can lead to problems with various components of the system, such as the rubber seals,” says Bredenkamp.
“Although in principle, we would like to see as many solar water heaters on roofs as possible, one has to do a realistic assesment of the situation and a simple calculation, to determine the sheer economics of the specific application.”
Imports not designed for our climate or resources
www.eskom.co.za/dsm states that although solar water heating technology is not new to the industry in South Africa, it is still characterised by high manufacturing costs and low sales volumes.
“Although the market for solar water heating systems in South Africa is certainly growing, the biggest concern for local suppliers is reputable companies being bombarded by people overseas bringing back cheap goods,” says Shirley. “The problem is not only that overseas solar water heating suppliers don’t have a proper working knowledge of our national codes of practice or that they can not offer a back up service, the problem is that these products are not always designed for South Africa’s climate or resources. Our ambient temperature and solar radiation levels are not the same as many overseas countries, meaning that there needs to be corrective design at the factory level to ensure correct water temperature limits are met for imported systems.
Bredenkamp says that although there will always be the problem of cheap imports, South Africa has standards and procedures in place to protect consumers from the majority of poor quality solar water heaters.
“There will always be cases where opportunistic individuals see a business opportunity and start importing ‘cheap’ products from various countries abroad. We in South Africa are lucky in this respect, since all products that want to qualify for a subsidy, need to be tested and passed by the South African Bureau of Standards (SABS). There is a national standard with which the products need to comply and the SABS and the Tshwane University of Technology have the equipment to test products according to this standard,” says Bredenkamp.
“However, we must caution the public against purchasing solar water heaters that may initially appear to be cheaper (even without any subsidy), than those who have been tested by the SABS. In most cases, these products will not withstand the test of time and the supplier or distributor may not be around in future to honor any given guarantees. It is therefore imperative that the public insist on seeing a SABS test report of the specific product, before making a purchase decision.”
Engineering precision of commercial solutions
Shirley says that commercial solar water heating systems are very different from the types of solar water heating systems that home owners use. “Commercial solar water heating systems are an entirely different story,” says Shirley. “A lot of engineering work is involved and the costs are obviously higher. Instead of installing one or two panels, you may need over 100 panels with large storeage tanks in the case of a hospital or hotel where a lot of hot water is consumed. But even though this is expensive, the electricity savings does make it financially viable.”
According to Worthmann, Eskom will have a programme in place for commercial applications this year. “We are busy formalising a commercial sector solar programme which we hope to launch mid-year. There are many competent companies that can design and install these large systems, and have being doing so for many years,” says Worthmann.
“The way I see it, solar water heating systems for commercial applications are about reducing a company’s carbon footprint and lowering your operating costs. A solar water heater should be seen as an investment, not a product. When you buy a solar water heating system, you are buying hot water for the next 15 – 20 years and you are using a lot less energy for this hot water,” concludes Shirley
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Greencon management has realised over the years, that people need constant on-going training. Humans forget the details and also need to be introduced to new systems and ideas. That is why we use hands on training facilities, this gives the franchisees, agents and installers a realistic training environment, so that they can engage with management about the various situations they have to install solar water heaters in. Here we can also learn, so that new equipment can be sourced that makes the installation, quicker, safer and more cost effective.
Ultimately we at Greencon realise you can have the best solar geyser system in the world, but it won’t do any good if it can be installed properly.
In Hawaii, a power developer will soon find out if earth and sky mix.
Pacific Light & Power will build a 10-megawatt solar thermal plant that will combine a trough solar collector from Spain’s Albiasa with a turbine traditionally used in geothermal systems.
Why? Ten megawatts is unusually small for a solar thermal field. BrightSource Energy, by contrast, wants to build one in California that will produce 396 megawatts of power. Most solar thermal systems, however, collect heat from the sun to turn water into steam and then feed the steam into gigantic turbines. The heat requirements and the size of the solar thermal fields mean that solar thermal parks can only be built economically in places like North Africa or Arizona where the sun shines almost every day of the year, lots of empty land exists, and humidity remains almost nonexistent. Even the presence of a few clouds can depress the power output.
Geothermal turbines swap water and steam for organic fluids like butane, which turn to vapor at lower temperatures. Thus, geothermal turbines require less heat, which in turn allows for smaller solar fields in a wider range of climates and geographies. Like traditional solar thermal systems, excess heat can be stored and run through the system in the evening or when cloud cover descends.
Jesse Tippett, the managing director of Albiasa, likens it to thin-film solar panels. The underlying technology may not be as efficient but it can generate energy in a wider variety of circumstances.
When completed in 2011, the plant — located on the island of Kauai — will provide close to seven percent of the power needed on the island.
Alibasa and PLP describe it as a hybrid plant, but it’s more of an unusual concatenation. Generally, hybrid plants are power plants that combine renewable energy generation — like solar thermal systems or biogas burners — with gas turbines to provide more baseline-like power. Florida Power and Light and Abengoa are currently building hybrid plants.
Power from the plant will be “close to Hawaiian (grid) parity,” he said, which means expensive. Electric power in Hawaii costs around 25.78 cents a kilowatt hour, the highest rate in the U.S., according to the Energy Information Administration. Hawaii generates most of its power from diesel generators. But Albiasa will study ways to bring the cost down to make these systems feasible elsewhere.
DUBAI, Apr 4th, 2010: In one of the region s landmark sustainability initiatives, Burj Khalifa, the world s tallest building developed by Emaar Properties in Dubai, is tapping solar power for meeting a bulk of the water heating requirements of residents.
A perfect complement to the sustainable development initiatives spearheaded by the UAE, Burj Khalifa uses solar panels to heat 140,000 litres of water every day, which will be distributed to homes and commercial entities within the tower. The solar powered water brings energy savings equivalent to 3,200 kilo watts per day and 690MWh of energy per annum. The thermal energy initiative at Burj Khalifa highlights Emaar s commitment to partner in the Government s sustainable development goals, according Ahmad Al Matrooshi, Managing Director UAE, Emaar Properties. “Energy efficient measures, especially through use of renewable sources, are not an option but an imperative for sustainable growth. By leveraging solar power, Burj Khalifa is setting an example as well as creating a referral mark on how urban developments can effectively integrate energy-friendly initiatives,” he added. The solar heating system is installed and operated by SOLE UAE Solar Systems, the oldest solar thermal company in Europe. “Burj Khalifa presented us a remarkable opportunity to use solar energy to meet the water heating needs of residents in the tower. The significant benefits include cost savings on energy uses not only for the tower but the Government utility provider too as well as reduced pollution levels leading to a healthier environment,” said John Owen of SOLE UAE.
The solar panels of Burj Khalifa serve as solar collectors, as against photovoltaic electricity generation technology. Located on roof of The Offices, the annexure of Burj Khalifa, 378 collector panels, each 7ر2 sq m in area, can heat the entire 140,000 litres of water in approximately 7 hours of day time solar radiation. Among other key sustainable energy and water use measures, the condensate from all the air-conditioning equipment in Burj Khalifa is reclaimed to cool the potable water from Dubai Electricity & Water Authority. The condensate is then collected in an on-site irrigation tank and used for tower s landscaping. When operational, this system will provide about 15 million gallons of supplemental water per year. Within the confines of Burj Khalifa s architectural design that ofa tall building with a fully glazed fa ade and little solar shading – a concerted effort has been made in the design and construction to make it environment-friendly. To ensure energy efficiency, Fresh Air Handling Units have been fitted with thermal wheels and, wherever possible, economizer modes. Additionally, there is extensive use of variable speed drives on the air-handling and water-circulating equipment to also add to energy efficiency.
The air-conditioning and water systems also incorporate extensive energy saving control systems to reduce part load energy consumption. Burj Khalifa s cladding system is constructed to high standards with a high shading co-efficient and a low U-value to reduce the transfer of external heat gains. Additional energy use efficiency measures in place include automated solar shading at entrance pavilions. Burj Khalifa also features several measures to reduce water consumption /WC/ including water flow restrictors and low water volume WC installed in all public areas. Burj Khalifa is a mixed-use tower featuring luxurious residences, commercial suites and the world s first Armani Hotel and Armani Residences. The tower also has a rich array of luxurious amenities including four swimming pools, an exclusive residents lounge, health and wellness facilities, and At.mosphere, the world s highest fine dining restaurant at Level 122. At the Top, the world s highest observatory with an outdoor terrace, is already one of Dubai s most popular attractions. Burj Khalifa anchors Downtown Dubai, the 500-acre self-contained mega-development by Emaar Properties. Home-owner orientation is currently ongoing.
Copyright 2010 Emirates News Agency (WAM) – Emirates News Agency (WAM) All Rights Reserved Provided by Al Bawaba
A slate roof can pose a serious problem for the installation of solar geysers. That’s why 90% of Greencon’s solar geysers installed on slate roves, have the geyser installed internally. We got some pictures to day from a team leader of an installation completed in Johannesburg.
Old flat plate solar geyser had served its 25yrs, it was time for a new solar geyser to be installed.
Notice, double story and quiet a mean pitch!
A new platform has to be built in the roof trusses for the new geyser, to be “housed”.
Using new Vacuum Tube technology. Great Job.
Here in South Africa we are about 10 – 20years behind the international trends taking place in first world regions with regards to renewable energy implementation. That stated, it seems that even in advanced countries, the legality around actual installation seems to be the bottle neck in the system. Just look what is happening in the area of massive skills shortages here and you will realise where the future problems lie for South Africa and its extremely ambitious million solar geyser target 2014. We need to re-kindle the apprenticeship system of training while on the job to massively increase our capacity to skill labour.
Massachusetts, United States [RenewableEnergyWorld.com]
“We want to make sure that the consumer has full trust in what we are doing.”
– Chris Kilfoyle, Berkshire Photovoltaic Services
Last year a new ruling came down from the State Board of Electrical Examiners that stated only Massachusetts licensed electricians and registered apprentices can perform any and all aspects of installing solar energy. Seasoned solar installation veterans, some of whom had been putting solar energy on homes and businesses for more than 20 years, were literally forced off the roof as a result of the ruling. Now, one year later, a battle is brewing in Boston over who should be allowed to perform solar installations in the Commonwealth of Massachusetts.
In the past solar integrators and electricians shared installation jobs, with electricians pulling the wire permits and completing all of the hard wiring on solar jobs. Wiring represents about 10-20% of a solar installation, according to estimates.
Under the new ruling, electricians must be on the job from start to finish and must perform (or help to perform) all aspects of the install, including pouring concrete for ground-mounted systems or putting up racking on the roof.
It’s an important issue in Massachusetts because of Governor Patrick’s interest in aggressively expanding solar energy in the state. His Commonwealth Solar Program has attracted numerous solar energy companies to set up shop in Massachusetts and analysts are predicting that with the state’s newly created SREC market, it will start to rival New Jersey, the second largest solar market in the U.S.
Companies like Borrego Solar, Alteris Renewables and Nexamp have seen solar sales increasing in the state, and electricians see the burgeoning solar industry as an opportunity to create new work.
With so many Americans unemployed right now, and the Massachusetts construction industry experiencing up to 25% unemployment since the recession started in 2008, it’s not surprising that Massachusetts’s electricians are looking to the solar industry.
“We’ve lost jobs just like all the other trades,” said Martin Aikens, a Business Agent of International Brotherhood of Electrical Workers (IBEW) Local 103, in a conference session during the Northeast Sustainable Energy Association’s (NESEA) Building Energy 10 conference in Boston. The conference session was entitled, “The Great Solar Certification Divide,” and included a panel of solar integrators and electricians.
In the conference session, Aikens explained that the issue is safety. He said that electricians go to school for four years and put in 8,000 hours of training before becoming licensed. “If you’re not qualified to install then you’re going to die. This is what it’s all about — licenses,” he said.
Chris Kilfoyle of Berkshire Photovoltaic Services (BPVS), a solar firm based in Adams, Massachusetts, doesn’t think it’s that cut and dry. He said that more than 11 MW of PV have been installed safely and properly under the Commonwealth Solar Program, which requires inspection and proper licensure in order for rebates to be doled out. Kilfoyle is not aware of any safety issues having occurred in the past.
“Certainly nothing that was brought to the attention of the state board of electrical examiners or to the Commonwealth Solar Program,” he said.
Before the new ruling, said Kilfoyle, safety was maintained by all the various trades involved in solar installations. “So, if you’re a general contractor, your workers will have been OSHEA certified, they are wearing proper safety gear when they are working on a roof.”
Building contractors — who are responsible for pulling building permits — would ensure that panels were mounted correctly and look at issues such as properly attached mounts, using the right screws and sealing them properly.
“Those all come under the purview of the building code,” he said.
Integrators like Kilfoyle and John Abrams, President and CEO of South Mountain Company, maintain that the new ruling now requires electricians to do some of the tasks that they are not trained to do. “They can’t stand going up on the roof,” said Abrams, who’s design/build firm is located on Martha’s Vineyard. But now electricians are helping with those tasks because that’s what the ruling dictates.
In addition, Kilfoyle pointed out that NABCEP certification, the industry standard for solar installers, is voluntary in Massachusetts. “But if you examine who the 30 NABCEP-certified installers are, they are not electricians,” he said. “NABCEP is the only course of study and the only credential that really covers both the mechanical/structural work involved in PV systems as well as the nuances of electrical work,” he said.
But if electricians haven’t been pulled onto job sites to make them safer, then what is the rationale behind the ruling? Neither the State Board of Electrical Examiners nor the IBEW was available for comment, but Kilfoyle believes the issue comes down to the economy. “It’s really an issue of a downturn in construction jobs and this particular electrical union saying ‘gosh, look at all this money coming into the state for renewable energy, we want it all,’” he said.
Enter HR4180
New legislation has been introduced in Massachusetts that solar integrators hope will resolve the problem. HR4180 asks the state to create a new solar license classification that falls under a specialty construction supervisor license.
Under HR4180, solar licensees would have NABCEP expertise “for roof loading, snow loading, wind loading particular to Massachusetts, structural attachment and waterproofing,” said Kilfoyle. Job site organization, safety matters and issues related to system design, orientation, shading and production would also be required knowledge.
Supporters believe that HR4180 would send a clear signal to the organizers of green workforce training efforts underway at Massachusetts’s community colleges and technical schools, providing trainees with a career path they could pursue. While it might take someone 8,000 hours to become an electrician, pursuing a Solar PV license would be much faster, according to Kilfoyle.
If the legislation passes, Kilfoyle hopes the status quo in Massachusetts will be restored, with electricians pulling the wire permits and doing the hard wiring and solar integrators performing the remainder of the tasks. He said that integrators are prepared to keep focused on the issue should the bill fail.
In the meantime, some solar companies are becoming electrical contracting companies in order to comply with the ruling. Others are fighting it on a case-by-case basis.
Kilfoyle encourages solar companies in other states to stay on top of their local electrician boards and urges them to work toward PV licensure. Installing PV “is a specialty technical skill,” and requiring a solar license is in everyone’s best interest in order to ensure it’s done correctly, he said.
“We want to make sure that the consumer has full trust in what we are doing,” he said.
Latest SA Gov movement in “Greener Technologies”, this info is gained from Engineering News, a Creamer Media Division:
The South African government has given strong signals that the country’s energy intensity is no longer sustain-able and has started to outline its low-carbon-economy vision.
To be sure, the move has as much to do with the prevailing electricity imbalances as it does with any international trends or pressures relating to climate change, or aspirations to exploit the so-called ‘green job’ possibilities. In other words, the programme is, arguably, a policy attempt at making virtue of necessity.
That said, the Department of Trade and Industry (DTI) has taken “a serious first step towards the systematic promotion of green and energy efficient goods and services”, with the release of the second version of the Industrial Policy Action Plan (Ipap2), which outlines the direction in which the department wishes to push South Africa’s industrial capabilities.
“Increasing energy costs pose a major threat to manufacturing and render our historical capital- and energy-intensive resource-processing-based industrial path unviable in the future,” notes the DTI.
However, this is not viewed as entirely bad news, as the department also recognises that there are “significant opportunities to develop new ‘green’ and energy efficient industries and related services”.
Trade and Industry Minister Rob Davies explains that, through the Ipap2, government intends to develop proposals to enhance access to concessional industrial financing for investment in Ipap priorities and other productive sectors on terms comparable to those of our major trading partners.
Science and Technology Minister Naledi Pandor has also noted that government’s economic sectors and employment cluster, which has been mandated to grow the economy and create jobs, will finalise a ‘green economy’ plan and present it to Cabinet by July 2010.
“Green jobs will grow both directly and indirectly in the transport, energy, building, manufacturing, agriculture and forestry sectors. There will be employment in the manufacture, installation and operation of clean energy for people like wind turbine engineers, insulation installers, recycling sorters and photovoltaic cell salespeople,” says Pandor.
“Indirectly, there will be jobs in the greener-goods supply chain – from solar cell manufacturers to green building-materials retailers to wind farm maintenance firms to recycling haulers to energy auditors. And, most importantly, there will be battery manufacturers with distribution centres at home and on the road,” she adds.
Government is reportedly already supporting clean energy research at universities, as well as investing in an electric car, and will soon launch the prototype of an ebike.
A recent report by international research organisation the Global Climate Network on the job potential of low-carbon tech- nologies indicates that, directly, some 36 400 jobs and, indirectly, 109 100 jobs could be created in the renewable-energy sector in South Africa by 2020.
Deloitte tax director Duane Newman says that the firm expects to see the emergence of government grants to incentivise business moves towards a low-carbon economy in South Africa.
The first cluster of key sectors identified in the 2010/11 to 2012/13 Ipap2 comprises “qualitatively new areas of focus”, and this is where the green and energy-saving industries are found, and, along with that sector, metal fabrication, capital and transport equipment and agroprocessing also feature.
Good Start, But . . .
“It’s a good start,” says Mainstream Renewable Power South Africa director Davin Chownof the green focus of Ipap2, “but we need something really bold and progressive, given the resource base we have”. “This is a first step in the right direction, but we need something that shows more confidence in the renewable-energy sector,” he tellsEngineering News.
Ipap2 highlights that, in 2007/8, the global market value of the low-carbon green sector was estimated at some $5-trillion, and this figure is expected to rise in light of climate change imperatives.
“Increasing concerns [about] carbon emissions and climate change will have a profound impact on our economic landscape, introducing both threats and opportunities,” cautions the department.
The DTI also touches on the emergence of what is being called ‘eco-protectionism’ – coming from advanced industrial countries in the form of tariff and nontariff measures such as carbon taxes and restrictive standards.
Solar Water Heating
The most attention, under the green and energy-saving industries section of Ipap2, was given to solar water heating, and the DTI notes the Department of Energy’s (DoE’s) commitment to installing one-million solar water heaters (SWHs) by 2014, increasing this goal to 5,6-million SWHs by 2020. This initial commitment will be funded through a mechanism that is currently being developed by the DoE, and is expected to draw on electricity tariffs and funds, such as the World Bank’s Clean Technology Fund (CTF).
The prospect of sustainable demand was expected to attract entrepreneurs to invest in domestic supply capacity.
“The international market, and particularly the African market, should be seen as a source of long-run demand that will outlast any short-term mass roll-out strategy,” emphasises the department.
The Key Action Programme for solar water heating was the roll-out of a national SWH programme and manufacturing and install-ation capacity, through a phased approach to SWH production to increase the local market size and allow long enough lead times for manufacturers to upscale.
The DTI’s SWH milestones are:
• By the second quarter of the 2010/11 financial year (ending March 31, 2011), the DoE will introduce a subsidy programme covering one-million units by 2014.
• By the end of December 2010, the DTI and the National Regulator for Compulsory Specifications will publish amended national building regulations to make it compulsory for new buildings and upgrades to homes to install SWHs and other energy efficiency building requirements, from March 2011.
• By the end of September 2010, the DTI will ensure that legislation is enacted to make it compulsory to install a SWH when an existing geyser is replaced.
• Between 2010/11 and 2012/13, DTI incentives and Industrial Development Corporation (IDC) industrial financing will be leveraged to support investment and increasing manufacturing and installation capacity in the SWH value chain.
Sustainable Energy Society of South Africa SWH division head Dylan Tudor-Joneswelcomes the initiatives and looks forward to cooperating with authorities with relevant inputs where needed.
With regard to increasing manufacturing capability, Tudor-Jones warns against premature investment until the demand has been created to justify significant investment, but adds that once the demand is visible, he is “fully behind” incentives to increase manufacturing capability.
The programme hopes to increase SWH installation from 35 000 to 250 000 units a year over the next three years, and to increase manufacturing from 20 000 to 200 000 units a year.
The DTI also recognises that poor-quality products could give the entire industry a bad name, thus the requirement for clear standards for the industry, and the need to unblock the South African Bureau of Standards (SABS) testing bottlenecks is vital.
Concentrating Solar Thermal
Concentrating solar thermal (CST) power is viewed as “the most promising renewable- energy generation option in South Africa” and, therefore, should receive priority support, even though wind and biomass should also be explored and developed, says the DTI.
The department notes that the IDC is currently investing in a CST demonstration plant, near Upington, in the Northern Cape, which aims to leverage the renewable-energy feed-in-tariff. This requires that Eskom expedite its Power Purchase Agreement.
The successful demonstration of the viability of the pilot plant will contribute to a broader roll-out of this technology and associated manufacturing opportunities. As CST is a new technology in South Africa, it requires demonstration of commercial viability and broader economic linkages.
In its most recent tariff increase application, State-owned utility Eskom said that it was in advanced discussion with the World Bank to secure a $3,7-billion loan for its capital programmes, including $500-million for a CST project, which would also draw on funds from the CTF extended to South Africa by the World Bank.
“Eskom and [the IDC] have been engaging to find mutually beneficial areas of cooperation, and the solar project is one of a number of possibilities. Our forecast is that there will still be a funding gap after the World Bank funding, and the IDC will be well positioned to close that funding gap,” IDC head of Public Private Partnerships Lindi Toyitells Engineering News.
The IDC says it is “very keen to fund electricity generation” and, since the world is moving towards clean energy generation, solar is one of the IDC’s many clean electricity generation technologies of focus to deliver green jobs throughout the value chain.
With regard to wind technologies, biomass and waste management, Ipap2 merely notes that further work will be done to unpack the potential of these sectors. The DTI expects wind energy generation, biomass and recycling strategies and action plans to have been developed by the fourth quarter of the current financial year.
“From a wind point of view, it is very disappointing, because we have substantive evidence that there is a very strong wind resource – sufficient for a large-scale industry,” adds Chown.
Industrial Energy Efficiency
The DTI states that an industrial energy efficiency programme will be developed by the fourth quarter of the current financial year, including consideration of more attractive financing models and the scaling up of the National Cleaner Production Centre.
This will counteract higher energy prices and lower emissions targets, and create new goods and services. The major outcomes will be more attractive financing options for the introduction of industrial energy efficiency improvements.
A particular area that has been high- lighted as having the potential for significant increases in energy efficiency is the adjustment or replacement of industrial motors. This already falls under Eskom’s demand-side management programme.
Although much attention has been given to energy efficiency after the power crisis caused electricity blackouts in 2008, South Africa is also a water-scarce country, an issue that has also been receiving more attention of late.
Thus, the strengthening of standards related to water efficiency in building and industrial applications has been included in Ipap. This could also lead to industrial and service opportunities, such as the manufacturing and installation of rainwater collection tanks, notes the DTI.
The DTI seeks to strengthen building and commercial water efficiency standards and, to this end, the SABS has been tasked with reviewing and strengthening building and commercial water efficiency standards by the end of March 2011.
At this stage, the DTI will also scope and identify economic opportunities associated with improved water efficiency.
Energy Efficient Vehicles
Initiatives to commercialise a domestically developed electric car, which forms part of the automotive sector intervention in the Ipap2 second cluster, will have broader spillover effects, such as the creation of a legislative and regulatory environment to enable the operation of electric vehicles, relevant testing infrastructure for electric vehicles, local manufacturing for domestic and global markets, initiation of charging infrastructure and electric vehicle educational campaigns.
The DTI notes that the automotive sector will be “profoundly affected” by the long-term shift from the internal combustion engine to cleaner technologies, such as electric vehicles.
By the end of December 2010, the DTI wants approval of investment support measures in place for the manufacture of the electric vehicle and components, as well as the development of a government position on the purchasing, demand stimulation and infrastructure for charging, testing facilities and public education regarding electric vehicles.
Roll-out of public education on electric vehicles is expected by the end of June 2011, while commissioning of the plant will take place in the second quarter. Development of testing facilities is expected by the third quarter, and start of plant construction in the fourth quarter.
By the end of the March 2014 financial year, production of the electric vehicle will start.
The DTI further states that an estimated 160 000 direct jobs will be created in the electric vehicle industry in the next ten years, while investment levels exceeding R20-billion are expected in the next four years, with a further R3-billion a year for the following six years. Greater localisation of componentry will also lead to an improvement in the trade balance.
Higher Targets Needed
“The general sentiment is positive,” says World Wide Fund for Nature living planet unit head Saliem Fakir of the green points of Ipap2. “However, the proof of the pudding is in the detail of how this will unfold. The industrial leg is very dependent on the demand, or push factors, that are driven through the energy complex,” he adds.
None of the green energy benefits, from an industrial point of view, will materialise without the energy complex, particularly the electricity sector driving demand and supply. The crucial issue is scale. Ipap2 needs to identify the scale that is necessary to catalyse investment, or justify investment of scale in the creation of industrial value chains, notes Fakir.
“With no clear long-term renewable- energy target, it is probably going to be hard for the Ministry and the DTI itself to develop an industry off the back of a 10 000-GWh target by 2013. You need a bold renewable- energy strategy and target and, off the back of that, your industrial plan will grow,” says Chown.
The DTI does note that industrial policy and Ipap2 form part of a larger set of interrelated policies and strategies to generate a new labour-intensive and value-adding growth path. Thus the need for a process – led by the Economic Development Department (which sits at provincial level) for stronger articulation and integration of a fuller range of policies to ensure coherence among them, notes the DTI.
Fakir states that many government programmes will have to be coordinated for the effects to translate into the creation of a new industrial base around the green sector.
A scale of demand in renewables and energy efficiency is critical in creating private-sector interest in the development of an industrial or manufacturing base. For instance, around wind, there probably needs to be a demand for between 2 GW and 3 GW of power to incentivise investment from original-equipment manufacturers.
And South Africa’s demand will enable an industrial base that can supply the region, notes Fakir.
This particular house was being renovated, and the client used the opportunity to reduce their consumption. Have a look, basically the servants quarters, main house and cottage are all being delivered super hot water from the solar thermal system.
Keep it Green
Thatch roves can prove to be difficult for solar thermal installations. When we use flat plate technology, the problem is with the grass on the roof rotting, so we have to build a stand that lifts the panel off the roof. With vacuum tubes the issue of fire hazard, is of concern. There is a possibility of refracted light bouncing off the tubes and igniting the grass that covers the house. In these circumstances we advise the client to look for a different area to install the system – like the garage roof or not thatched area. Look at this example of a solar system mounted on a stand next to the house: (click on image to enlarge),
Keep it Green
Honestly the best way to install a solar thermal unit. In this example one of our teams installed a vacuum tube system into the clients house. This was advised for various reasons, but mainly due to the fact that the customer receives partial sunlight due to tree interference and shadows that are cast at certain times in the day. The vacuum tubes with there increased efficiency can still produce the amount of heat required for the customers usage.
Essentially what the Greencon technicians had designed, was a pre-feed system. The client wanted to dramatically reduce the amount of electricity being used to heat there rather large domestic boiler. So we designed a system that fed the boiler with solar heated hot water.
The site was relatively treed, so we decided to go with vacuum tubes, for there increased efficiency.
Let the saving Begin.