A Presentation to the:

1
Efficient Lighting Initiative (South Africa)

• A Presentation to the
• Portfolio Committee
• on Minerals and Energy
• (30 August 2001)
• Given by
• Barry Bredenkamp
• Bonesa Electricity (Pty) Ltd

2
PRESENTATION OUTLINE

• Bonesa the company
• Background information
• ELI goals
• Benefits
• Practical example
• The way forward
• Conclusions.

3
BONESA THE COMPANY

• Bonesa is the local implementing agency
  established to implement the SA-component of an
  ELI-programme in 7 developing countries,
  worldwide. It is funded by Eskom (R48.8 million)
  and GEF through the IFC (US2.5 million) and is
  made up of three local partners, (TSI (EE),
  Umongi-Karebo and Africon Engineering).

4
Background

• 1997 - Global Environment Facility (GEF) granted
  US225 000 to Eskom to conduct a feasibility
  study on the ELI
• Eskom matched the funding
• The ELI recommendations were based primarily on
  the Eskom ISEP
• peak demand reduction targets
• window of opportunity ito emerging market -
  build in efficiency

5
Background (contd)

• Eskom support based on ISEP objectives - peak
  demand reduction (820MW by 2019), associated
  environmental benefits
• Estimated net present value saving in avoided
  utility costs of approximately R990 million over
  20 years
• Medium term - funding for similar projects a
  strong possibility - allow for flexibility and
  permanence in expanding the role of the
  implementation structure (LIA).

6
Feasibility Study Completed

• Draft ELI Business Plan completed
• Identified barriers to market entry
• Examined consumer behaviour
• Determined strategies for programme
  implementation
• Organisational structures required for
  implementation
• Financial finance needed to implement
• Economic viability of the programme.

7
Agreements Reached

• GEF committed grant funding of US2.5 million to
  the LIA (Bonesa) to implement the ELI
• Eskom Management Board approved three-year
  funding for ELI,to meet ISEP targets
• Eskom Enterprises (Pty) Ltd agreed to the
  establishment of the LIA
• Implementation of programme through a BEE JVC -
  Bonesa.

8
ELI Goals

• Increased penetration of energy efficient
  lighting technologies to meet ISEP target of peak
  demand reduction
• Improve customer service through reduced
  electricity bills
• Capacity building and skills transfer
• Conserve the environment through reduced
  greenhouse gas emissions and reduced consumption
  of water at power stations
• Support the African Renaissance, through job
  creation and poverty alleviation.

9
Benefits of ELIBenefits to Eskom - Major

• Meet the ISEP target of 820 MW peak demand
  reduction by 2019
• Net benefits through avoided capital and
  operating supply costs (G, T D)
• Affordable electricity for all sectors of
  society
• Education and capacity building
• Positive contribution to socio-economic factors
  affecting the country
• Increased access to energy.

10
Benefits of ELI 820 MW
11
Benefits of ELIBenefits to Eskom - Secondary

• Medium term opportunities - aggregate solutions
  and replicate elsewhere
• Expected reduction in non - payment
• Take - back effect
• Lower risk of under-utilised assets
• Improved customer focus.

12
Benefits of ELIBenefits to Customer

• Affordable and increased access to energy
• Contribution to poverty alleviation.

13
Benefits of ELI Benefits to Environment
These benefits are vitally important, in terms
of South Africa hosting the World Earth Summit in
2002.
14
Benefits of ELIBenefits to Munics Developers

• Benefits to Municipalities
• Avoided network capital, operating and
  maintenance savings
• Avoided bulk purchase cost.
• Benefits to Developers
• Avoided infrastructure costs.

15
Benefits of ELIBenefits to South Africa

• South African society to benefit from the sum of
  the above benefits
• Less capital will be used in building additional
  networks as CFLs will penetrate the market
• Black economic empowerment and SMME-opportunities
  will increase
• Socio-economic benefits relating to poverty
  alleviation, and access to affordable energy.

16
All Africa Games Village A Practical Example
17
Targets The Way Forward

• Target for 2001 266 000 additional CFLs in SA
  market, (500 000 sold Y-T-D)
• Introduction of Efficient Lighting into
  curricula of Schools and Tertiary Institutions
• Contribute towards EBSST poverty alleviation
• Help identify and retrofit needy institutions,
  eg. supporting healthcare and the elderly
• Assist in establishing new retail outlets job
  creation.

18
Conclusions

• The energy sector stands to benefit greatly from
  ELI - from a strategic ISEP as well as from a
  profitable business perspective
• South Africa will benefit in terms of the
  following criteria
• Innovation
• Effectiveness
• Poverty impact
• Sustainability
• Replicability.
• Future opportunities could be opened up through
  this initiative - similar programmes in SA or by
  replicating the ELI in other developing countries.

19
Conclusions (contd)

• Positive benefits for ALL!
• Win-win situation
• Utility does not loose
• Economy gains
• Innovation encouraged
• Customer benefits.

20
Thank you
Discussions and/or Questions?