Energy Efficiency and Demand Side Management (EEDSM) Programme

Country / jurisdiction: South Africa · Year: 2004 · Status: In force · Level: National · Type: Voluntary

The Energy Efficiency Demand Side Management (EEDSM) programme is managed by the Department of Energy (DOE). The EEDSM programme supports municipalities in their efforts to reduce electricity consumption by optimising their use of energy. Selected municipalities receive grants for the planning and implementation of energy efficient technologies ranging from traffic and street lighting to energy efficiency in buildings and water service infrastructure. The estimated electricity saving potential for traffic lights is up to 80%; for street lighting between 40-70%; for office building 20-30%; and 15-25% for pumps that are used for water provision and treatment.

This policy intends to stimulate energy efficiency to do the following five things: provide quick power system relief; be a cheaper alternative to new generation; support SME growth; reduce greenhouse gas emissions; and reduce users energy bills. It will do this through regulations, institutional governance structures, and targeted financial incentives for residential, commercial and industrial sectors, specifically to: reduce bureaucracy; accelerate the approval of projects and disbursal of subsidies; provide a transparent and long term pricing regime; clarify and differentiate energy efficiency and demand side management projects; and adjust incentives to equalise treatment of energy efficiency and demand side management (DSM) investments. Proposed standard offer payment in R/kwh, excluding monitoring & validation costs: 0.5404 in 2010, 0.5168 in 2011, 0.5798 in 2012. Energy Conservation Target: energy efficiency potential is between 20-30% across many segments.

Responding to the Government's National Energy Efficiency Strategy (NEES) to reduce energy demand and contribute to the short-term shortage of electricity supply, Eskom (the largest state owned utility company of South Africa) launched a financial incentive program.

Eskom had a number of programmes in place targeted at different customers and energy savings project sizes. Incentive schemes that offered opportunities for the all industrial companies include the following :

Standard Product Program: pre-approved rebates for deemed energy savings achieved through specified technologies. Eskom provided rebates on the investment costs for the implementation of specific technologies. Standard value per rebated item, capped at ZAR 750,000, and full payment is awarded once the project has been commissioned. Eskom compiled a database of technologies that are deemed to be energy efficient, and customers who implement the technologies are eligible for the rebate on the investment costs. The focus is on small to medium projects

Official source: http://iepd.iipnetwork.org/policy/eskom%E2%80%99s-energy-efficiency-and-demand-side-management-eedsm-incentive-program