ANALYSIS REPORT: BASELINE, ENERGY SAVINGS …

1 Preparatory work leading to a project proposal on V-NAMA in sub sector of ENERGY efficiency in public buildings: ANALYSIS report : baseline , ENERGY SAVINGS potential and Barriers. 1 ANALYSIS report : baseline , ENERGY SAVINGS potential AND ENERGY EFFICIENCY PROGRAMMES IN PUBLIC BUILDINGS IN SOUTH AFRICA DRAFT report developed by Sustainable ENERGY Africa for GIZ, February 2012 Preparatory work leading to a project proposal on V-NAMA in sub sector of ENERGY efficiency in public buildings: ANALYSIS report : baseline , ENERGY SAVINGS potential and Barriers. 2 Table of Contents Acronyms .. 3 Introduction .. 5 Section 1: Method towards developing a baseline and ENERGY SAVINGS potential .

2 8 Proposed methodology .. 8 Method results .. 9 Section 2: ENERGY Efficiency in Public buildings: experience and results to date .. 11 Programmes and funding streams .. 11 Retrofitted public buildings to date .. 20 Benchmark 24 1. Medium sized multi storey office block ANALYSIS .. 26 2. Single Storey Multi Building Compound ANALYSIS .. 29 3. Large multi storey integrated office block .. 32 Audit summary .. 32 Costs .. 33 Cross-check .. 33 Conclusions .. 36 Business models, contracting and legal issues .. 39 Section 3: Public Building ENERGY Consumption baseline Picture .. 47 National Buildings .. 47 Provincial Buildings .. 52 Municipal Buildings .. 55 Institutional baseline 59 Finance and funding.

3 64 Institutional capacity .. 66 Metering and billing practice .. 68 Section 4: Macro ANALYSIS of potential for ENERGY saving .. 72 1. Municipal sphere .. 72 2. Provincial sphere .. 73 3. National sphere .. 73 Summary .. 74 New build and major 74 Voluntary building standards .. 75 Section 5: Barriers / Issues for consideration: initial ANALYSIS .. 78 Awareness, political commitment and 78 Institutional capacity .. 79 Financing public sector ENERGY efficiency and ESCOs .. 81 Policies and measures .. 83 Learning and replication .. 84 baseline Conclusion .. 85 References .. Error! Bookmark not defined. Interviews .. Error! Bookmark not defined. Preparatory work leading to a project proposal on V-NAMA in sub sector of ENERGY efficiency in public buildings: ANALYSIS report : baseline , ENERGY SAVINGS potential and Barriers.

4 3 Acronyms CFL Compact Fluorescent Light CoCT City of Cape Town DANIDA Danish International Development Agency DBSA Development Bank of SA DEA Department of Environmental Affairs DOE Department of ENERGY DORA Division of Revenue Act DPW Department of Public Works DSM Demand-Side Management DTI Department of Trade and Industry EE ENERGY Efficiency EEDSM ENERGY Efficiency and Demand Side Management EETMS ENERGY Efficiency Target Monitoring System EMM Ekurhuleni Metropolitan Municipality EMS ENERGY Management System ERC ENERGY Research Centre ESCO ENERGY Service Company GBCSA Green Building Council of South Africa GHG Greenhouse Gas GIZ German Development Cooperation GWh GigaWatt-hour HVAC Heating, Ventilation and Cooling IDC Industrial Development Corporation IDM Integrated Demand Management IDM RMR Integrated Demand Management Residential Mass Rollout IDT Independent Development Trust ISO International Organisation for Standardization JESTT Joint ENERGY Statistics Task Team kW KiloWatt kWh KiloWatt-hour KZN KwaZulu-Natal Preparatory work leading to a project proposal on V-NAMA in sub sector of ENERGY efficiency in public buildings: ANALYSIS report : baseline , ENERGY SAVINGS potential and Barriers.

5 4 LED Light-Emitting Diode M&V Monitoring and Verification MFMA Municipal Financial Management Act MoU Memorandum of Understanding MRV Measurement, Reporting and Verification MTEF Medium-Term Expenditure Framework MW MegaWatt NAMA Nationally Appropriate Mitigation Action NCCRS National Climate Change Response Strategy NEEA National ENERGY Efficiency Agency NEES National ENERGY Efficiency Strategy NERSA National ENERGY Regulator of South Africa NGO Non-Government Organisation NMBMM Nelson Mandela Bay Metropolitan Municipality PEB Public & Education Building PPP Public Private Partnership PRASA Passenger Rail Agency of South Africa SAEDES South African ENERGY and Demand Efficiency Standard SALGA South African Local Governments Association SANEDI South African National ENERGY Development Institute SDBIP Service Delivery

6 Budget Implementation Plan SEA Sustainable ENERGY Africa SEED Sustainable ENERGY for Environment and Development SEM Shared ENERGY Management SPP Standard Product Programme SWH Solar Water Heater UCT University of Cape Town UEMP Urban Environmental Management Programme UNIDO United Nations Industrial Development Organisation V-NAMA Vertically integrated Nationally Appropriate Mitigation Action WEC World ENERGY Council WWTW Waste Water Treatment Works ZAR South African Rands Preparatory work leading to a project proposal on V-NAMA in sub sector of ENERGY efficiency in public buildings: ANALYSIS report : baseline , ENERGY SAVINGS potential and Barriers. 5 Introduction This report provides a compilation and ANALYSIS of information relating to public building ENERGY efficiency in South Africa.

7 It has been commissioned by the Department of Environmental Affairs (DEA) of the Republic of South Africa as part of its collaboration with GIZ in the areas of climate change, sustainable development and a just transition to a lower carbon economy and society. The report will inform the development a project proposal on vertically integrated NAMA in the sub-sector of ENERGY efficiency in public buildings (owned and leased), thereby supporting DEA to respond to its mandate and responsibilities for the implementation of the national Climate Change Response Policy. Public sector facilities and operations are recognised globally as having significant opportunities for ENERGY efficiency improvements (WEC, 2010).

8 Benefits include lower ENERGY costs for government and public sector stakeholders, reduced demand for new generation and investments in ENERGY supply and transmission and distribution systems. There are also benefits to be reaped from the leadership role of the public sector this provides opportunities to demonstrate and disseminate information about ENERGY efficiency measures, the public sector can pilot interventions, increase awareness and confidence in new technologies and business approaches, as well as stimulate the market through its substantial purchasing power. Background The South African Climate Change Response Policy (2011) identifies Near-term Priority Flagship Programmes.

9 These have been identified as an integral part of the implementation of the policy. The flagship on ENERGY efficiency and ENERGY demand management is one that has high potential for emission reduction. It has also been identified that Government will be able to lead by example through improving ENERGY efficiency in public buildings. The development of a programme to implement public building efficiency will also provide important pilot opportunities and real experience around multi-level implementation across different spheres of government. This preliminary report aims to provide key information on baseline , ENERGY saving potential and barriers for a vertically integrated NAMA in the public building sector.

10 A final report will be developed that will further include recommendations towards a NAMA programme. These will aim to address identified barriers and maximise opportunities for greatest ENERGY SAVINGS . Scope of work and approach Preparatory work leading to a project proposal on V-NAMA in sub sector of ENERGY efficiency in public buildings: ANALYSIS report : baseline , ENERGY SAVINGS potential and Barriers. 6 Public sector activities and operations cover a variety of end-use sectors, including buildings, transport, service provision and infrastructure development. A major part of the public sector ENERGY use results from ENERGY used by public buildings for lighting, heating, cooling and ventilation, as well as electrical appliances in these buildings.