G. D. Bolt

Strategies for energy efficiency funding in the absence of industrial Eskom-IDM support

In the absence of industrial Eskom-IDM (Industrial Demand Management) funding, industry is forced to look elsewhere for energy efficiency project funding. This paper outlines various taxes and government incentives for cleaner production and energy efficiency technologies in the South African mining and manufacturing context. The applicability, eligibility and financial benefit for each of the following incentives are investigated: National Cleaner Production Centre (NCPC); Clean Development Mechanism (CDM); Section 12I Industrial Policy Projects; Section 12L Tax Incentives; Manufacturing Competitive Enhancement Programme (MCEP); IDC Green Energy Efficiency Fund. The universal objective of these incentives is to stimulate the reduction of Greenhouse Gasses (GHG) by 34% by 2020 and 42% by 2025. This commitment was made by South Africa in the National Climate Change Response White Paper. However, in reality carbon tax, electricity cost inflation and a declining economy are the driving forces for industry to participate in these initiatives. These policies and programmes are promulgated by several different spheres of government and it is therefore important to understand the eligibility criteria when a combination of these programmes is utilised. This quick guide will create awareness and assist energy managers in the procurement of energy efficiency project funding.

Carbon dioxide pollution reduction through load shift projects

Significant advances have been made in automation technology allowing systems to shift electricity consumption from peak periods to off-peak periods. Load shift projects have been implemented throughout South Africa for their electricity cost saving potential. This study shows how these load shift projects also reduce the carbon dioxide production at power stations by 91 kg/MWh shifted. This reduction is however not limited to load shift projects on the demand side, but also includes supply side load management. Technologies such as pumped storage schemes and carbon dioxide conversion to methane are identified as effective means of achieving supply side load management. A load shift project is shown to not only have an electricity cost saving but also an environmental cost saving. This emphasizes the need to continue implementing these projects as a method of reducing the environmental impact. Measurement and Verification (M&V) teams should therefore also report on this carbon dioxide reduction.

Practical considerations in energy efficient compressor set-point control strategies

Compressed air supply and demand strategies have received significant attention since integrated demand management was initiated by Eskom. Due to the expensive nature of this vastly utilised energy carrier, every increase in the efficiency of a system is needed. Usually controlling the compressed air demand resulted in a reduced need for supply, ultimately leading to energy savings. The majority of compressed air optimisation projects on deep level mines in South Africa utilise demand side management initiatives to control or reduce compressed air usage. However, reduction in usage through control, leak repairs and reduced demand often results in system pressure build up. Compressed air supply must also then be reduced accordingly using capacity controllers. The existing capacity control is typically upgraded to reduce compressor output capacity automatically. The problem encountered is that not all compressor controls are created equal, and they produce different results in terms of efficient supply reduction. Inefficient compressor control is frequently encountered in industry today. On average, compressors operate at 16% below their maximum efficient point due to inefficient surge and capacity controllers. In contrast to this, intelligent compressor control resulted in compressors operating within 9% of their maximum efficiency point. In this case study, financial savings of R 3-million per annum could be realised.