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Proceedings of the SACN REEEC meeting held on 8 th April 2010 Page | 1 Proceedings of the Meeting of the SACN Reference Group Climate Change, Renewable Energy and Energy Efficiency, Local Government Leads the Way Held at Nelson Mandela Bay, Beach Hotel, 8 th April 2010 Facilitator: Councillor Aubrey Nxumalo, Ekurhuleni Metro Cllr Nxumalo opened the meeting and a round of introductions was made. It was noted that the agenda has been amended slightly with a presentation which was supposed to be made during the field visit in Tsitsikamma being the first one, and then will be followed by three presenters who have to leave early due to their travel arrangements. Opening and Welcome by Mayor Zanoxolo Wayile of Nelson Mandela Bay (NMB) Participants were welcomed by the Mayor Wayile and he asked for all to observe a moment of silence for the all the lives who have been lost nationally due to road accidents and internationally due to natural catastrophes and disasters. He mentioned that NMB is the economic hub of the Eastern Cape with the automotive industry and that many multinationals are investing in this region. He highlighted that this reference group meeting is being held after the global economic meltdown crisis in 2008, series of challenges that led to the Global climate change conference in Denmark, many years after South Africa held the WSSD and it is important to look at how long have we gone since then. He also indicated that the Eastern Cape region is struggling with water shortages. They have started the process of requesting national government to declare it a disaster area. The Mayor went on to indicate that a number of international catastrophic situations like the tsunami in Haiti that plunged those nations into a state of trauma have been taking place and we have to look at what are the lessons that can be learned from these. We also have been experiencing electricity crisis which came with the era of load-shedding and they lost an investment by ALCAN because of lack of guarantee of electricity supply for the investment in Coega. This calls for us to look at how we do things differently. There have been a number of meetings, summits with less action to a large extent. From these forums, our people require political leadership, a beacon of hope to them. We have to ensure that the ideas we generate will find expression with all sectors of our society so that issues of environment should not be linked to selected sectors of our society. Issues of energy are class issues, they are not easy issues. These are ideological matters. The critical thing is how to ensure social mobilisation.

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Page 1: Proceedings of the Meeting of the SACN Reference Group ...sacitiesnetwork.co.za/wp-content/uploads/2014/09/... · The Reference Group decided to focus on large scale roll out of key

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Proceedings of the Meeting of the SACN Reference Group Climate Change, Renewable Energy and Energy Efficiency,

Local Government Leads the Way Held at Nelson Mandela Bay, Beach Hotel, 8th April 2010

Facilitator: Councillor Aubrey Nxumalo, Ekurhuleni Metro

Cllr Nxumalo opened the meeting and a round of introductions was made. It was noted that the agenda has been amended slightly with a presentation which was supposed to be made during the field visit in Tsitsikamma being the first one, and then will be followed by three presenters who have to leave early due to their travel arrangements.

Opening and Welcome by Mayor Zanoxolo Wayile of Nelson Mandela Bay (NMB)

Participants were welcomed by the Mayor Wayile and he asked for all to observe a momentof silence for the all the lives who have been lost nationally due to road accidents and internationally due to natural catastrophes and disasters.

He mentioned that NMB is the economic hub of the Eastern Cape with the automotive industry and that many multinationals are investing in this region. He highlighted that this reference group meeting is being held after the global economic meltdown crisis in 2008, series of challenges that led to the Global climate change conference in Denmark, many years after South Africa held the WSSD and it is important to look at how long have we gone since then. He also indicated that the Eastern Cape region is struggling with water shortages. They have started the process of requesting national government to declare it adisaster area.

The Mayor went on to indicate that a number of international catastrophic situations like the tsunami in Haiti that plunged those nations into a state of trauma have been taking place and we have to look at what are the lessons that can be learned from these. We also have been experiencing electricity crisis which came with the era of load-shedding and they lost an investment by ALCAN because of lack of guarantee of electricity supply for the investment in Coega. This calls for us to look at how we do things differently. There have been a number of meetings, summits with less action to a large extent. From these forums, our people require political leadership, a beacon of hope to them.

We have to ensure that the ideas we generate will find expression with all sectors of our society so that issues of environment should not be linked to selected sectors of our society. Issues of energy are class issues, they are not easy issues. These are ideological matters. The critical thing is how to ensure social mobilisation.

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The Mayor wished everyone the best in the meeting, and indicated that we need to move in speed because the planet is perishing and the history shall never forgive, will judge us harshly. He offered his apologies for having to leave the meeting early since he has a lot to catch up because next week he will be leaving for Germany and also preparing for the Green economy summit.

Presentation: Towards a Green Economy Strategy - Dorah Nteo, Chief Director Planning, Coordination and Information Management, Department of Environmental Affairs (DEA)

The government has been working on a green economy issues since the recession in 2008. UNEP developed a document on working on green economy which was integrated in SA’s stimulus package.

State of the Nation Address raised the following key issues: - Creation of about 480 000 job opportunities by 2009 and about 115000 of these jobs will

were in the environmental sector mostly through the EPWP.- Industrial policy action plan with a new focus on green jobs, building stronger and more

labour absorbing industries.- Industrial Policy Action Plan (IPAP) has been reviewed with resource constraints in mind

and the green economy is a key element of the New Growth path- Government will ensure that environmental assets and natural resources are well

protected.- Ministers and MECs Ministers who are responsible for a particular outcome will sign a

detailed delivery agreement with the President for Outcome 10: Environmental Assets and natural resources that are well protected and continually enhanced and Outcome 4: Decent employment for people through facilitation of inclusive economic growth (Green Economy)

- Local government must work, i.e. Municipalities must improve the provision of housing, water, sanitation, electricity, waste management (basic waste services) and roads.

- Together with Brazil, India, China and the US, South Africa made a significant contribution to the Copenhagen Accord which does not go as far as required, but it is an important step forward. South Africa will work hard with international counterparts towards a legally binding treaty. Have listed SA’s nationally appropriate mitigation actions, and will continue working on the long term strategy for emissions reduction which will be driven through the green economy.

- Government is committed to 5 priorities, i.e. Education (environment sector education & outreach program); Health (waste, air quality, impact management); Rural development and Land reform ( settlement of land claims in protected areas, cleaning and greening); creating decent work (green jobs); and fighting crime (Environmental courts, integrated Enforcement system).

- How can local government contribute to the creating green jobs? In conserving the environment we can create income and jobs.

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Green Economy:Green economy s defined as a growth model/paradigm that enhances production and consumption patterns with positive employment outcomes & based on addressing the interdependence between economic growth, social protection and natural ecosystem.

It is a government priority for the mandate period 2009 to 2014 and one of the key elements in the new growth plan (Green economy and Knowledge economy). A National Strategy/plan needs to be submitted to cabinet lekgotla in July 2010

The Minister identified a need for a national summit to further define the elements of the strategy and advocate this approach and the date for the summit is: 18 to 20 May 2009.

Key Drivers of a Green Economy Paradigm

The Green Economy paradigm will be driven by the following:- Substantial growth in investment necessary to achieve climate change mitigation and

adaptation (with or without an international binding agreement)- Increasing recognition that clean technology development offers significant business

opportunities and gains- A growing need to develop and elaborate the economic case for environmental

management and sustainable development- Realization that Functioning ecosystems underpin all economic and social activity.

Ecosystem failure will seriously compromise our ability to address social and economic priorities even in a short term

- Natural resources are national economic assets. SA economy depends heavily on energy and mineral resources, biodiversity, agriculture, forestry, fishing and tourism. Tourism is number one contributor to the economy (beaches)

Green Economy Summit 18 -19 MayThe themes for the Summit will be as follows:- Alternative Energy Supply- Sustainable Waste Management Options- Green Buildings- Sustainable Transportation- Agriculture, Food Production and Water Management- Resource Conservation and management including eco-tourism- Green Cities and Towns- Financial Instruments for Environmental and resource management- Green Technologies and Innovative ideas exhibition

The theme on Green cities and towns will be driven by SALGA and SACN and they willensure participation of cities. SACN will also coordinate the Green technologies and Innovative ideas exhibition where cities and towns will be invited to exhibit their work. Other cities from other countries will be invited to exhibit as well.

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Review of draft programme for Green Economy Summit

The Summit is being organised by Department of Environmental Affairs in partnership with the Department of Science &Technology, Department of Economic Development, SALGA, and SACN. It will be held at Sandton Convention Centre

The Summit will start with a high level segment and still awaiting to hear if the President or Deputy President will be able to come for the opening. The Summit will also have the slots for the Ministers of Economic Development, Science & Technology and Trade & Industry as well as the Hosting Mayor of the City of Johannesburg to speak during the high level segment.

Recommendations for this meeting are as follows:

- This reference Group lead the Green Cities and Towns focus area at the Summit- Hosting Mayor (City of Joburg) give a welcome address during the opening of the

Summit- Local Government to display best practice at the exhibition- Local Government to develop and implement green economy plans. A number of

provincial governments have developed green economy plans and some are still working on them.

Presentation: Reference Group 2010 Action Plan + Seven Technologies, Carsten Laugesen, Development Counsellor Danish Embassy

Carsten mentioned that they have been working on a framework which has two parts to it, i.e. a political declaration and a technical report which focus on how implementation will happen. The underlying theme in the declaration is implementation. This needs to be linked to be action and target areas.

Climate change has a lot to do with renewable energy and energy efficiency and thus involves implementation on the ground through large scale technology projects.

The Reference Group decided to focus on large scale roll out of key technologies. The criteria for the selection of key these technologies are as follows:- Potential for substantial impact- Appropriate technology suited to national and local competitive advantages- Simple and easy to implement- Finance (commercial financial models) to allow replicability

Based on the last years of experience under the UEM programme, the following are proposed as the 7 technologies which this framework should focus on:

- Solar Water Heaters (By-laws for new buildings, large scale roll-out)- PhotoVoltaic Solar (National integrated plan: 4 business plans, tender, implementation)- Wind Power- Waste to Energy

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- Energy Efficiency in municipal buildings and infrastructure- Reforestation and Greening- Rain water harvesting (RWH)

Focus on progammatising the 7 technologies for municipalities to champion:

The focus on development responsibilities through 4 interlinked principles for the large scale roll out is on:- Employment creation and local economic development- Local ownership and local private sector involvement (through tender processes)- Sustainable financing of the RE, EE and climate change projects- Municipalities as facilitators

The focus on specific ownership and financing models for the different technologiesshould be as follows:

Focus technology Supported model

Solar water heaters (SWH) Municipal utility or ESCO

Solar power (PV) IPP

Wind power IPP

Energy efficiency in municipal buildings & infrastructure Development facility or ESCO

Urban forestry CBO

Rainwater harvesting tanks (RWH) CBO

Draft SWH PV Solar

Wind Waste to energy

EE municipal buildings & infrastructure

Urban forestry

RWH

Ekurhuleni

eThekwini

Johannesburg

Tshwane

Nelson M.B.

Cape Town

Sedibeng

Mangaung

Richards Bay

Sol Plaatjie

Polokwane

Buffalo City

Msunduzi

etc.

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Focus on Smart business cases and smart tendering for each municipality for each of the technology selected:

A good business case is possible, practical and realistic to implement. A smart business case is:- Being conducive to local employment creation, and local ownership and local economic

development- Being financial sustainable and replicable in other municipalities (transparency and

openness)- Possible to tender, attract external financing and technical knowledge

Guidelines PV Solar smart business case

1. Overall development objective and summary - Municipal facilitation of the development of IPPs

2. Facilitating sustainable financing- National or Municipal REFIT, CDM co-financing

3. Facilitating local ownership model- Local community or private sector co-ownership through equity shares - Share-holding through bonds /stocks in the solar farms

4. Facilitating job creation- Local private sector (BEE companies) participation in manufacturing- Community, cooperative, private sector participation in O&M

5. Facilitating supportive municipal framework- Provision of land, zoning permits, Power Purchase Agreements, Power Generation

License, by-laws, effective administration of revenue streams, etc6. Technical specifications and local planning

- Solutions for local planning requirements, regulatory issues, environmental impact and compliance with PFMA and SCM regulations

7. Smart tender document

Presentation: Reforestation community projects Jeunesse Park, Founder, Food and Trees for Africa (FTFA)

Food and Trees for Africa (FTFA) is a social enterprise which was started 20 years ago to address climate change and had to change the language to sustainable development and then back to climate change in 2005. It pioneered programmes like Trees for homes, National Tree Distribution programme, Edu-plant, urban greening and food gardening programmes. It is also involved in the Carbon off-sets and facilitating community owned projects.

FTFA distributed 3.6 million trees, trained 6 000 Community Based Educators and facilitated 2 500 natural permaculture food gardens for underserved communities across SA. It has also launched a Carbon Standard, Carbon Protocol, and SA’s first Carbon Calculators in 2006 and now certifying trees programmes as VERs.

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FTFA was instrumental in establishing the Urban greening Association and the Fund in partnership with Department of Forestry and SALGA to support community projects.

Reforestation and Greening

Greening is vital technology in combating climate change, developing sustainable settlements and can provide local green job opportunities and economic development, can attract private and public sector investment and promotes community ownership. Municipalities need to allocate budgets to these initiatives, stop competing in fundraisingefforts and support NGOs who are doing work in this field.

There is a huge potential in setting up community nurseries that should be accompanied by business and marketing training which are crucial in making nurseries a success. Nurseries could be facilitated through space, infrastructure, resources and a ready market (off take agreements). This could be linked with the employment of Community Based Educators (CBEs) to develop and maintain green spaces (providing them with sustainable jobs to look after the trees in the streets, cemeteries, etc)

Trees for Homes

The Trees for Homes programme provides fruit and indigenous trees, support local nurseries, gives training, some employment and awareness for residents (CBEs) in low cost housing developments. This programme should be accompanied by awareness-raising for local residents (through the CBEs) in low cost housing developments. It also has the potential for job creation and could also contribute to carbon storage. The programme includes meetings, presentations to residents and distribution of trees as well as sponsor branded materials, adding value as a marketing tool. An example of this is the EkurhuleniParks department who have partnered with FTFA in facilitating a community nursery in Kempton Park.

There is a huge demand for trees to contribute to more sustainable human settlements and offset carbon emissions across South Africa. The programme is recognized by government for contributions to climate change, sustainable settlements, greening, and food security. A total of 540 000 trees have been distributed and over 6 600 community based educators trained and given short term employment through Trees for Homes.

Ekurhuleni Metro 2010

Ekurhuleni Parks Department is facilitating a community nursery alongside the municipal nursery in Kempton Park to provide plants for the parks, streets, cemeteries and other public spaces. Ekurhuleni Economic Development department is hoping to stimulate and support economic development in the agricultural sector (around 50 individual small farms and some cooperatives, three former farms or commonages of around 600 hectares belonging to the municipality) and in 2010 approached FTFA for concepts. Those presented include greening schools and homes for carbon offset, bamboo production, organic farming conversions and support through training and marketing

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Bamboo Potential

Bamboo absorbs more carbon than trees and it is not invasive. It grows 5 meters underground. FTFA is working with Renewable Energy Solutions to scale up bamboo production for economic development, climate change response and energy efficiency. There is a ready market for energy that can be tapped into. Bamboo is being pelletized for energy. There are 1200 uses for bamboo. FTFA can facilitate the development and planting of hectares of bamboo on underutilized land and commonages with nursery development and buy back agreements. Opportunities exist around development of many small enterprises to produce and process bamboo for building materials and other products. DTI has expressed interest in funding to facilitate this initiative.

Conclusion

There is a lot of opportunity to respond to climate change, renewable energy and enterprise development through greening such as Trees for Homes, bamboo and nursery development. Local government can facilitate this with sufficient and sustainable funding and support (longer than four years in office). Nursery development requires a ready market, considered selection of recipients and beneficiaries, land and water, nursery equipment, sustained support through a number of years, defined species, training in horticulture, business and marketing are essential, as is nursery management training. All these can be provided with the necessary support and could lead to great greening, a lower carbon future, a greener economy and green job opportunities.

Presentation: Rainwater Harvesting, Frank Stevens, Deputy Head: Water & Sanitation, Technical Support, eThekwini

The Durban unicity boundary is nearly a semi-circle, 120km of boundary as a result there is a battle with geology which doesn’t allow soak away and sceptic tanks.

The municipality’s Water Service obtains its mandate from the SA Water Services Act which emphasizes the aspect of saving the environment. Its responsibilities include reaching the poor and un-reached in an affordable and sustainable manner, running the water and wastewater undertaking in a businesslike manner and conserving water and the environment.

Water Service Statistics:- Volume of water sold per day = 700 Ml- Number of reservoirs = 360- Length of water pipe network = 12 000 km - Number of people served = 3, 6 million.- Length of Wastewater Pipes = 8 000 km- Recycling Plants =1- Wastewater Treatment Plants = 29- Sea Outfalls = 2

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Water loss management- Non-revenue water = 37 %- Typical interventions being undertaken: Pressure Reduction Leak Detection AC Pipe Replacement (3 000 km) Finding Illegal Connections Finding un-metered Connections

Asset Management- Find Assets.- Value Assets (R 30 Billion).- Develop an Asset Plan. (Planned maintenance.)- Get all staff involved.

o (e.g. proper use of C-Track would optimize use of fleet)

Why Rainwater Harvesting

It is difficult to provide high pressure water for everyone in the municipality because of the waterborne edge. Also, there are many informal areas in the municipality with no infrastructure.

Strategy for Informal settlements

There are over 360 informal settlements in the municipality and they decided to install pairs of Urine diversion Ablution Blocks (Male/Female). This initiative also has a job creation potential.

The municipality also runs an Education Program with an emphasis on water conservationwithin these settlements. There is also an emphasis on safety and security with the installation of high rise lighting and translucent roof sheets. They are also exploring Solar Powered lighting.

There is also recycling of sewage water which is supplied to Mondi and also used to generate electricity.

Rain Water harvesting in rural areas

A lot of rainwater is often being wasted and left to just run off without being captured. The municipality decided to start a rainwater harvesting system to capture and utilize the water more efficiently and thus provide free water, as addition to free basic water in rural areas.

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Rainwater Harvesting System

Rainfall is the primary source of water. The water run-off from the roof of the house iscollected in a tank via gutters and down pipes. A Standpipe is installed at bottom of tank to access water.

Selection criteria for the installation of the rainwater harvesting system include the following:- Roof area > 50m2.- Type of roof - single pitched (preferable).- Double pitched.- Required space to build 5000lt tank – 4x4 area.- Roof material can be thatched.- Project targeted low cost housing or rural houses.- Preferred houses with gutters.- House owner earning less than R1500-00/month.- Gardening activity must be visible around the house.

Advantages of a rainwater harvesting system include the following- Supplement supply of water to household.- Reduces demand on portable water supply.- Smaller size of pipe required in potable infrastructure pipes.- Smaller storm water pipes required to serve township.- Irrigation for agriculture. Roof tanks reduce problems with water in the neighbourhood

Disadvantages of a rainwater harvesting system include the following:- Area required for tank – small properties a problem.- Stored water requires to be treated before drinking.- Capital investment required.

Ferro cement Rainwater Harvesting TanksOnce the mould is setup, chicken mesh is fixed with 2.5mm diameter galvanized wire around it. Spacing of the wire is 100mm from bottom of tank to 1/3 the height and thereafter 200mm because of the increased pressure at the bottom of the tank.

The following are the steps for construction of a ferro cement Rainwater harvesting tank:- Step1: Clear and level site, set out and excavate for foundation.- Step2: Place reinforcement and pipe work then cast concrete.- Step3: Assemble and place mould in position.- Step4: Fix internal reinforcing planks and oil outside of mould.- Step5: Reinforce sides of the tank.- Step6: Plaster the outside of the mould.- Step7: Remove the mould.- Step8: Plaster the inside of the tank.- Step9: Pre cast the roof slab.- Step10: Place the roof slab.- Step11: Install and connect gutters to the tank.

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Role playersCouncillors, eThekwini Services Team(EST) and community.

Training during implementation:The municipality trained 10 eThekwini Water Service (EWS) officials in construction of the tank, 15 local contractors trained over two 20 day periods and 3 local community facilitators trained on:- Gathering information.- Assist in labour employment.- Educate community in operation and maintenance of tanks.A total of 30 Plasters/builders were trained in construction and 60 assistants trained in excavating for foundations, mixing mortar and providing assistance to builders and plasters.

Project CompletionBy the end of the project, 500 Rainwater Tanks were built in the INK area with 498 Tanks built in the houses and 2 Tanks built at a school in the area. The cost to build a tank came up to R9500/unit and they also trained specific community members on how to use the tanks.

Achievements to dateAchievements of the programme includes 2 000 Tanks which have been completed in 5 Wards, mainly in rural areas.

Case study in MzinyatiThe municipality studied 100 households to evaluate the rainwater harvesting programme.They used questionnaires and evaluators who went around the household to gather data.They found that the main uses for the rainwater collected in the houses are for irrigation, food gardening, washing, drinking and mud/cement mixing. They also discovered that of the food gardens which were installed in 93% of households only 54% of those were still looking good. The responsibility of looking after these gardens was usually that of the mother and the members of the households whose age is less than 30 are usually not interested in food gardening.

Assistance provided by the municipality to households includes training 90%, tools 91%, compost 81%, and Seeds 82%. 62% of households undertook compost making. Most households had 4 vegetable types which included Cabbage, Carrot, Beetroot, Brinjal, Spinach, Chilli and Lettuce. Their vegetable harvest was broken down into 72% for cooking, 16% for sharing and 12% sold.

Presentation: Landfill Gas to Electricity, John Parkin, Deputy Head: Plant & Engineering eThekwini Metro (1st CDM project in Africa)

The project was African’s 1st Landfill gas CDM project and it was driven by the need to reduce the GHGs emissions from the landfill site. It is important to have a champion on this type of a project.

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Component 1Marionhill and LaMercy with 700 000 Carbon Emissions Reductions (CERs). Had a 1 MW Engine installed at Marionhill and 0.5 MW engine at LaMercy.

Component2Bisasar Road landfill with 3 100 000 Carbon Emissions Reductions (CERs). It had an initial generation of 4MW engine and commissioned 6.5 MW engine in July 2009.

CDM Project Process:It takes 2-3 years to get a project like this going and the following is the process that was followed:

Calculated Emission Reductions (in tons)

First contact with PCF/World Bank

MOU between eThekwini and PCF –

Commence EIA’s –

Adhoc Approval for funds –

ROD’s for Mariannhill and La Mercy (“Component One”) –

Appeal against “Component One”

Appeal response to Minister of DAEA for “Component One” –

ROD Bisasar (“Component Two”) –

Started construction “Component One” –

Final Revised ROD for “Component Two” (Bisasar) –

CDM Registration of Component 1 (Mariannhill & La Mercy) –Commissioning of Mariannhill & La Mercy Flares & Gens Initial Verification of Component 1 –“Component Two” (Bisasar) Start Construction –Verification of “Component 1” Year 1Commissioning of Bisasar Rd Flare & EnginesRegistration of Component 2 (Bisasar Rd)-Commissioning of 6 MW Component 2 ( Bisasar Rd

November 2001

February 2003

July 2003

October 2003

July 2004

August 2004

September 2004

October 2004

January 2006

August 2006

November 2006

Nov~Dec 2006January 2007March 2007January 2008March 2008March 2009July 2009

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La Mercy site is not operating anymore, Mariannhill site is not operating well and Bisasar Road site is pumping a lot of gas.

The Team involved in the programme

eThekwini decided to go for an In-house Project Management team, however, it is important to have a good CDM lawyer (they used Imbemu Environmental Legal Services) and a Gas specialist (they used SLR Ltd UK). Other members of the team included Civil Consultants Wilson & Pass Inc; PCF World Bank; DTI & DME; French Development Bank; EIA Felehetsa / WSP Environmental; External Verifiers (was SGS now DNV); and CER Purchaser (Trading Emissions Plc)

Administrative challenges faced included the following:- The MFMA and SCM don’t deal with out of ordinary processes.- Inconsistent decisions by Ex CDM Board (For example, flarring at Bisasar Rd site

cannot be claimed but could be claimed at Mariannhill - La Mercy landfill site – too much liquid- EIA Process problematic- Registration by UNFCCC Ex Board long, tedious and pedantic- No direct access to Ex Board- Monitoring onerous and expensive- Language is often a barrier- Drawn out process- Whole process is costly- DoE accreditation

The following technical challenges were faced:- Lack of Expertise and Resources- Extreme weather conditions- Excess leachate on poorly run sites- Manufacturers supplying incorrect equipment- Lack of sharing information- Lack of Experience / Technical Ability

Operating challenges included the following:

Site Methane Destruction

Electricity Generation

TOTALS

Bisasar Road 5,295,296 800,704 6,096,000

Mariannhill 1,112,568 112,344 1,224,912

La Mercy 488,972 24,511 513,483

TOTALS 6,896,836 937,559 7,834,395

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- Service Suppliers lack of Expertise- Cost of Spares & oil- Cost of Services- Availability of Spares- Need good Quality Assurance- Monitoring: correct procedures- Logging of raw data & interpretation

Lesson Learned- Be wary of so called “experts” - there are many companies and individuals who claim to

be experts while they expect to be paid for their learning. Why not use the funds to build internal capacity instead.

- Cash flow is a problem if you don’t have cash in advance it will be difficult to initiate a project like this.

- It is easier to deal with technical challenges than political & administrative issues- Running of Landfill is as important as the Extraction Process- Carry out a pre-verification Inspection, it saves a lot of stress during verification- Add six months to any time frame given because things tend to move very slow- Cash flow is a major problem

Job creationThe project generated 157 temporary unskilled jobs, 23 temporary skilled jobs and 11 permanent skilled (Artisan & Higher). 4 Bursaries BScEng (civil) have also been made available through this project.

How much money can be earned from the project?

The capital and operating expenditures of the project are supported by two revenue streams, i.e. sale of Carbon credits and sale of energy. Without the sale of carbon credits, the project would not be financially viable.

ELECTRICITY SALES

UNITS HIGH RATE

AMOUNT LOW RATE

AMOUNT REFITRATE AMOUNT

PEAK 441583 108,86 480707,25 30,45 134462,02 90,00 397424,70

STAND-ARD

1068681 28,36 303077,93 18,68 199629,61 90,00 961812,90

OFF PEAK

1469577 15,18 223081,79 13,07 192073,71 90,00 1322619,30

SUR-CHARGE

105306,73 56900,07 273978,21

MAX DEMAND

38880,06 38880,06 38880,06

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Cash Flow

It needs money upfront and will pay off within 2-3 years. It is a viable project

CASH FLOW

INCOME EXPENDITURE

• ELECTRICITY SALES R720 000 / month

• CARBON CREDITS R2 200 000 / month

• TOTAL R 35 040 000 / annum

• CAPITAL EXPENDITURE TO DATE R65 000 000

• ANNUAL OPERATING R8 000 000

Concluding Comments

Individuals can make the process very difficult, however, this project have exceeded expectations. Landfill gas offers a viable renewable energy source only when linked to Carbon Finance or CDM (R0.57/kWh). VER’s may be more viable than CER’s due to over the top requirements of UNFCCC Ex. Board

The EIA process took very long and resulted in the project loosing two years of operation. Lack of technical skills is restricting expansion of this project in Africa. As a result, implementation of proven technologies is a must. Often, the distance from Europe is detrimental to fast reaction (spares have to be brought in from Europe and this often result in delays) and also the exchange rate has a dramatic influence on cash flow.

Questions and Comments

A question was asked on why it was mentioned in the presentation that it is easier to deal with technical challenges than political & administrative issues. In response, it was mentioned that the technical people are better equipped to deal with technical challenges and the other political and administrative issues should be left to those who understand them better.

How did the project team by-pass the SCM? In response, it was mentioned that eThekwiniMunicipality still accepts Clause 36 Reports, i.e. the Sale of immaterial goods. However, one would still need to write a report to the national government to make a case.

1151053,76 621945,47 2994715,17

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A question was asked on the project’s current generation capacity and its 5 yrs projections factoring the whole move to diverting waste from landfill sites? In response, it was mentioned that the Bisasar Road site will close in 2014 and they will not have to dig the landfill. The current sites will not be affected. They are already thinking about buying another engine but not sure how long the gas will last. COP15 didn’t bring the answers they needed around CDM and they need to sign up for the next 7 years.

A question was raised on whether there are views on alternative model on how to implement landfill gas projects? In response, it was mentioned that some of the municipalities have gone for outsourcing the entire project where they give the rights to a developer who deals with CDM registration, etc. However, eThekwini has learned that the project needs someone in-house to drive it, a champion. This also depends on whether you have the staff, capacity and the willingness to do it in-house. The cost benefits could be very rewarding if it is done this way.

Presentation: Photo Voltaic panels - Solar farms in municipalities, George Fereira, Director, AES solutions

South Africa has 2x10¹⁶ kWh per annum (which are 2x10⁷ TWh per annum) of solar energy available in various areas and its current total usage of electricity is about 2x10² TWh per annum.

The White paper on the energy policy of the republic of South Africa of 1998 mentions that there are perceptions in South Africa that renewable energy is only suitable for small-scaleapplications, where it would be too expensive to supply conventional forms of energy. In fact, renewable energy can be suitable for both small/local and large/centralised applications. Closed mind-sets are therefore a barrier to the adoption of renewable energy technologies.

The White Paper on Renewable Energy Policy of the Republic of South Africa, of November 2003 has a Government’s medium-term (10-year) target as 10 000 GWh (0.8 Mtoe) renewable energy contribution to final energy consumption by 2013, to be produced mainly from biomass, wind, solar and small-scale hydro. The renewable energy is to be utilised for power generation and non-electric technologies such as solar water heating and bio-fuels. This is approximately 4% (1667 MW) of the projected electricity demand for 2013 (41539 MW).

It is important that in developing a smart business plan, consideration be given to stumbling blocks, barriers as well as perceived barriers mentioned above.

Overall development objective

The objective is for municipalities to facilitate development of Independent Power Producers (IPPs) through the development of PV solar farms. This will have local economic development benefits like job creation and SMME development. Through PV Solar farms,

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municipalities can reduce their carbon footprint and ensure energy security within theirmunicipal areas. Also, if municipal land is utilised, there could be an income to the municipality and short term tourism potential through the promotion of awareness of renewable energy sources.

Financial Sustainability:AssumptionsCost per panel ∈ 1.8 per WattCost of inverter ∈ 0.5 per Watt Land rental 1% of turnoverExchange rate R11/ ∈Cost of Capital 10.5 %Establishment cost R5m per MWTotal cost per MW R 30.3 per MWDebt /Equity Ratio 80/20

At a PPA price of R3.94 per unit with an annual 5% escalation over 20 years , the project realises an ungeared IRR of 16% and at a PPA price of R3.94 per unit with an annual 5% escalation over 20 years, the project realises an ungeared IRR of 27%.

Long Term Financial Model

The long term financial model could be built on one or a combination of the following 3 models:

1. National REFITT program – at least 20 years with an annual escalation clause2. A so called “Municipal REFITT” (not approved by NERSA) - At least a 20 year PPA with

an annual escalation clause. In the case of the NMBM a 1 MW solar PV farm would lead to an increase in overall tariffs of about 0.3% - NERSA approval will be required.

3. Municipality buying electricity for own usage. This is based on the fact that don’t need a licence to generate for own usage- electricity act). In the case of the NMBM the additional cost on the overall budget would be about R6.5m per annum.

Ownership

The following options can be considered in terms of the ownership model:

1. No municipal ownership2. Local community co-ownership through equity shares of the solar farms, e.g. 10-20 %

free-carry equity. Where municipalities are currently involved in community farming for food security, a Solar PV farm could be complementary to such venture Local community co-ownership through equity shares of solar farms. At tariff levels related to the published REFITT tariff of R3.94 per unit a solar farm is viable and can simply be viewed as an investment.

3. Share-holding through bonds /stocks in the solar farms, e.g. 1000 Rand shares to the general public and / or local community

4. Local private sector co-ownership through equity shares of the solar farm

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Job creationThe project can lead to job creation in the following ways:

Activity- Task Description Level of local employment

Quantity per MW

Manufacturing of panels

Mechanised in overseas countries -imported

none none

Manufacturing of grid tied invertors

Local products still expensive Potentially high level Potentially 2-5

Manufacturing of frames and structures

Should be locally manufactured Skilled/ semi skilled level 4-7

Installation of the solar farm

All activities except for specialised high tech

Unskilled to skilled 5-8

Maintenance of facility – low tech

Washing of panels, housekeeping ,ground keeping ,security

Unskilled to semi skilled 15- 25

Maintenance of facility –high tech

Technical supervision , monitoring and repairs

High level 2-3

There are no massive jobs to be created in this project and there are very few high skilled people around.

Approvals and permits

Municipality Provincial Government

NERSA Independent System operator( ISO)

Possible rezoning of land to industrial or special purpose

Approval of the Environmental

Impact Assessment

Granting of a Generation Licence

Possible signing of PPA for REFITT

Amendment of Electricity supply By law

Approval of building plans

Possibly signing of a PPA

Technical specification

There are different types of PV Technology available and they include the following:- Mono Crystalline - which has an efficiency of 18%, smaller per watt and it is more

expensive per watt. - Amorphous Silicon – which has an efficiency of 11%, larger per watt and cheaper per

watt. - Thin Film technology – which has an efficiency of 9%, larger per watt and cheaper per

watt

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These available technologies also differ in terms of tracking or non-tracking, two or one dimension, as well as possible manual inclination adjustments. Also, for the technology to be able to feed into the grid, there is a need for grid tie inverters that could be in the form of banks or large single invertors

Barriers to implementation

Cost competitiveness - This could be as a result of flawed perceived cost analysis based on the assumption that renewable energy is viewed as being much more expensive than Eskom coal generated electricity. The Eskom price is based on historic generation capacity some built 40 to 50 years ago. The external environmental cost is not included. New conventional generators need primary fuel for the whole 40-50 years of their lives. If these costs are considered, many renewable generation resources e.g. Small and micro scale hydro, landfill site methane generation and some wind generating facilities are actually cheaper than new conventional sources.

Implementation Capacity - Renewable energy sources are energy non –intensive and decentralised. By default, such projects will be numerous, on average small and decentralised. The implementation capacity needed per unit of generation will be much higher than that of conventional power stations

Legal Framework - Overregulation of the Industry in a centralised way, licensing of small generators, interpretation of certain MFMA Requirements, certain processes in the MFMA, municipal by-laws, environmental authorisation and non–consumptive water rights.

Other barriers include intermittency, scale, governance and structure of electricity industry as well lack of public awareness and entrepreneurship.

RecommendationsIn order to promote renewable energy from an environmental perspective, SALGA needs to accept the following:- The principle of comparing the cost of renewable generation with the long terms Eskom

marginal new generation cost inclusive of 20% additional external environmental cost.- That all Municipalities must purchase 5% of their total cost from renewable resources by

2014 - That all Government( National, Provincial and Local) purchase 10% of their energy

requirements from renewable resources by 2014- All Municipalities within the Eastern Cape Province must be compelled to include Section

39 (2) of the proposed draft By-Laws for electricity distribution in their respective electricity distribution By-Laws immediately. This will allow for embedded generation to be linked into the municipal grid.

- Department of Environmental Affairs should consider immediate steps to amend the requirements of the Regulations dealing with environmental impact assessments, where such areas are clearly outside of potential environmentally sensitive, areas to

- Allow the installation of temporary wind monitoring masts outside urban areas and areas affected by air flight operations without the need for an impact assessment.

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- Reduce the requirement from the need to conduct a full EIA for a PV solar- or wind farm covering areas between 1 and 10 hectare to that of a basic assessment only.

- Speed up the processing periods for Assessments of renewable energy projects.- Exempt the establishment of renewable energy generation facilities on landfill sites, as

well as on water reclamation works from a full EIA process and only subject to such activities to basic assessments.

SALGA should request the Minister of Energy to Regulate:- In terms of Section 9 of the Electricity Regulation Act that generation facilities with an

annual output capacity below 5 GWh not to be needing a generation licence in the case of private generators for private clients and to below 10 GWh for generation into municipal networks

- In terms of Section 9 of the Electricity Regulation Act that Municipalities be allowed to purchase up to 10 % of their energy requirements from renewable energy sources and that an average local tariff increase of up to 3%, to make up for the higher cost of renewables, in the short terms (5 to 7 Years) be allowed. For such facilities a generation licence not be needed. That it further become common practice for Municipalities to be allowed a 3 % tariff margin to purchase renewable energy.

Request clarifications, regulations or amendments to the MFMA from the Minister of Finance to:- Stipulate that Section 33 of the MFMA not be applicable in the buying of renewable

energy- Clearly rule that electricity generated from renewable energy not be compared with that

of conventional generation (coal fired / nuclear) in terms of section 11 of the MFMA, but that renewable energy be considered as a separate commodity.

- Allow Municipalities to purchase up to 10% of their usage from embedded generators without having to follow section 33 or all the requirements of section 11 of the MFMA

Presentation: Solar Water heaters (SWH) Roll out, Flora Mokgohloa, Executive Director: Environmental Management, Johannesburg Metro City of Joburg

Background and Introduction

Renewable Energy has been part of CoJ’s Climate Change since 2006 and the programme is part of the City’s Long Term Growth and Development Strategy (GDS). The implementation of the climate change programme is integrated with DANIDA’s Urban Environmental Management Programme (UEMP) in Cosmo City. This programme has a huge focus on residential sector, specifically Solar Water Heating implementation.

Implementation to date

The city has done the following to date:- 170 SWH in installed in Cosmo City and these have been integrated with urban

greening and tree planting.- 56 SWHs installed in Alexandra in rental residential units.- Conducted Baseline assessment studies.

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- Application for Programmatic CDM is currently underway with the help of SouthSouth North (SSN).

- Gold standard procedures to be followed to claim carbon credits.

Solar Water Heating System

First rollout of SWHs were high pressure flat systems with a cost of R15 000 per house (plus installations). The total cost for installing them in 176 households came to R22, 550.00. This system is a lot more expensive for low income households and it comes with high maintenance costs and thus will be difficult to replicate.

The CoJ is currently rolling out 700 Low Pressure Tubular SWH Systems as part of the DANIDA UEM project. The low pressure tubular system costs R5000 per house plus installation. The total cost for 700 households will come to R3, 5 million. This system is cheaper and suitable for low-income households. It is also easy to replicate and has potential for a large scale rollout. They come in 100 litres and can be roof mounted on inclined stand. It has a low maintenance cost and has potential for creating more job opportunities.

Mass Roll-out programme

The CoJ’s SWH heating programme will start on a voluntary basis for certain categories of the residential sector. Residents do not pay any installation costs and will be leasing the system from the CoJ on a nominal fee and will sign up as a rental of systems. The residents will start saving money from month of sign-up as rental of systems and reduced electricity consumption will be lower than previous electricity bill. They will also start paying only when the system is operational.

The city will also engage in a parallel process to finalise the SWH by-law for compulsory installation.

Technical Requirements

CoJ will retain the right to appoint suppliers, manufacturing and maintenance companies (City Power) for quality control. The large implementation will also provide economies of scale and CoJ can drive the cost per SWH down.

CoJ will require Suppliers to comply with SABS and Eskom regulations and standards as well as to support the metro economy by establishing manufacturing plants in Johannesburg, invest in skills development and use local content in manufacturing. Each supplier will be required to install a quota of units per year.

Lesson Learned to date- Implementation of SWH in South African local government is still an expensive

expedition but mass roll out could bring the cost down because municipalities have a captivated market of households through the rates bills.

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- Good financial models are necessary if a mass rollout of Solar Water Heaters is to be achieved. Could use the Sustainable Energy Africa (SEA)’s Integrated business model which is being used in Cape Town.

- A combination of CDM and other financial mechanisms can lead to replicable SWHs projects. This will also bring benefits of reducing GHG emissions.

- Other economists also see the potential of municipalities to take ownership of the SWHs implementation through implementing a ‘tariff system’ system approach.

- Development of regulations is still a challenge due to implications to other legislative requirements like the National Building regulations.

Conclusion

A mass rollout of SWHs is essential for acceleration of service delivery goals, socio-economic upliftment, Green economy and job creation, as well as to reduce residentialelectricity and water costs. Also, a sustainable business model is needed for a successful rollout of Solar Water Heaters. It is important to integrate the community in whatever the business model chosen. Generation of CDM revenue is necessary to make SWHs sustainable. Lastly, SWHs could provide an opportunity to localize the economy.

Questions and Comments

A question was asked on the practicality of the need for the house facing South for the SWH to work? In response, it was mentioned that a Solar Water heater doesn’t necessarily have to be on the roof. It can be installed inside and the panels on the roof. The high pressure flat plate systems require North-facing houses but the low pressure tubular system doesn’t require North-facing.

Presentation: Energy Efficiency (EE) in Municipal Buildings, Tshilidzi Thenga, Ekurhuleni Metro

Implementation of energy efficiency on municipal buildings should start with energy audits in the buildings. Measurement and verification guidelines are already available. Many of these interventions are options that will not cost anything and are mainly about change of lifestyles and human behaviour.

Policies and energy efficiency strategies, financing options with shorter pay back periods for all technologies are critical for the implementation of energy efficiency in municipal buildings. Implementation should follow normal process that should be led by technical departments to lead the drafting of tender specifications and documents. Socio-economic issues have to be taken into consideration as well as maintenance warranties.

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EE ON MUNICIPAL BUILDNGSSMART BUSINESS PLAN

EMM-E&E

TECHNICAL

SPECS

ECA

IDENTITY REQUIREMENTS EEDSM

FUJD (ESKOM)

TECHNICAL SPECS

TENDER DOC’S

SCMPROCESS

ESCOESKOM

DATABASE

ESCOEMM

CRITERIA

EMM INTERNAL SAVINGS FUND

EE LEVY 0.25%

DORA –DOE

EEDSM

UEMP

EMM CAPITAL BUDGET

OTHER

FINANCING

50%/100%

IDEA: MFMA?

The rollout of the EE on municipal building could be done through an Implementation Agency which will identify the requirements, draft the technical specifications, prepare tender documents, identify the Energy Service Companies which can roll out the interventions.

Funding could be generated through the energy efficiency levy tied up to the tariff; DORA, DoE funds for energy efficiency, UEMP and Capital budget.

SMART Business Plan

The model above could work with very few challenges. It can be fully administered by SACN. Local government department should develop plans and specification and make available some funding. Procurement could be done by SACN and should be supported by municipalities. Carbon Funding could contribute to this but it is not a prerequisite. This could be done without support for shared or guaranteed savings schemes.

Maintenance contracts will be required and criteria for approval of plans should be developed as well as achievements and obligations.

Questions and Comments

A question was asked on why it will not be necessary to consider shared services with Eskom? In response, it was mentioned that in the case of Ekurhuleni where there areenough funds internally to inject on the project, there is no need for shared services with Eskom. However, other municipalities who cannot use their internal resources for thesekinds of initiatives might opt for shared services with Eskom.

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eThekwini mentioned that it is looking for a soft loan for a project of this kind. This is mainly because the loan interest rate is very good and the finance is from a bank that supports renewable energy. They are accessing the funds through the ESCOs from ESKOM to fund 50% of the project.

There was a feeling from some participants that if a municipality has to spend for instance an amount of R20 million to retrofit its buildings, this might not be a good use of their funds because the money could be used somewhere else maybe for service delivery and rather approach private companies to come and fund the retrofit of the buildings.

It was also mentioned that CEF is offering loans to municipalities for these kinds of interventions and they could be repaid through earnings from Shared Service agreement with Eskom. This could be a viable option for smaller municipalities who don’t have the financial resources.

Presentation: Tsitsikamma Community Wind Farm, Councillor Mike Msizi,Infrastructure Committee, Nelson Mandela Bay Metro

Background

The development objective of the wind farm project was to capitalise on the available wind resources within the Eastern Cape through establishing a community wind farm project within the Eastern Cape.

Tsitsikamma Community Wind Farm (TCWF) was officially launched in November 2009. The development started in February 2009 and it is for a 40MW wind farm on community land of amaMfengu in Tsitsikamma at Graspan which was taken away from the community when they were forcibly removed from it and they got the land back in 1990. The community is currently using the land for dairy farming.

The project will have a R1bn investment which will be 16% free carry to local community and BEE company. The development partners include local and international companies, i.e. local - Watt Energy and Exxaro (Equity funds); international - European Energy(Danish Independent Power Producer), IFU and EKF. The stakeholders are the Royal Danish Embassy, DANIDA; and ECCWEDA. Development partner is Donk (Carbon Credit buyer). The community decided to use Danish wind technology (Vestas). The project will be fully operational in January 2013.

The community had to get people to help with development of the wind farm project and they had to spend between R15-20 million for development costs. They had to fire about 4 developers who claimed to be experts in wind energy and turned out to know little or nothing about it. Also, some of the challenges they faced was that the price of EIA ranged from R300 000 – R1 million.

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Current Status

A fatal flaws assessment has been completed and there are no fatal flaws. Also a Financial Modelling has been completed together with a Grid Connection Study and a Logistics Study. The Grid Connection study revealed that it will be very expensive to push electricity into the Eskom grid. An Environmental Impact Assessment has just been initiated and public participation is due to commence end April 2010.

Wind measurement masts have been secured, i.e. 15m mast – measuring since April 2009; 60m CSIR mast – due for installation in June 2010; and 80m mast – due for installation in May 2010. The Geotechnical Study has commenced and the Debt financiers and Equity Partners have been secured. A Project steering committee of local partner and 4 overseas members have been established.

Challenges- The community’s expectations and not understanding the long term development cycle

which take between 3-4 years; there was also no current access to electricity for the community.

- There was also a challenge of non-existing legal framework at the start of the project. - The community was not getting the initial buy-in from government due to lack of

understanding and lack of belief in community’s ability to deliver.- There are a lot of companies which claim to be experts in wind energy and at times it is

very difficult to see the authentic ones. This is often exacerbated by limited resourceslike finance and capacity.

- The project itself is time consuming and the community has to walk down many roads that often lead to dead ends. It is often a challenge to access real experts.

- There is also a growing unhealthy competition among wind developers and there havebeen attempts to destabilise the project and some developers seeing community project as a risk to their intended model.

Wind Energy Potential

Estimates indicate that South Africa has a wind energy potential of between 30 to 70 thousand megawatts of installed capacity. The Eastern Cape is said to have a wind energy potential of around 10,000MW, which equates to an installed investment potential of around R200bn. Important to note that this excludes the potential financial value of the industries that would service the local industry.

A Wind Atlas is being developed by CSIR and RISO in conjunction with the Danish Technology University’s (DTU), with DANIDA funding for 10 measurement masts in 3 provinces.

Initial Planning

The project secured development finance in a form of grant funding from DANIDA to do the initial pre-feasibility study. Wind energy projects are very expensive to develop and the community needed partners to carry the project forward after the pre-feasibility stage. They

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needed between development partners to bring in between R20 – R35 million to get the project to financial closure. Wind energy projects are very technical and they had to be aware of the so called “experts” and they discovered that there are not any real experts present in South Africa as wind energy is a new industry.

Facilitating Sustainable Financing

The project will be using two leading mechanisms, i.e. the Power Purchase Agreements (PPA’s) with the Single Buyers Office (SBO) using the Renewable Energy Feed-In-Tariff (REFIT) and the other it so secure direct PPA’s with certain municipalities. The National REFIT - in 2009, NERSA published renewable energy feed-in-tariff guidelines for wind power of R1, 25/kWh for wind.

It is important to note that not all the municipalities are financially stable enough to be able to afford paying for the electricity that is generated through renewable energy. The renewable energy is a lot more expensive than the traditional electricity currently being purchased from Eskom. This is an area that will need to be addressed with national government as these “poorer” municipalities will potentially be left further behind over time should a program not be put in place to address this.

Facilitating local ownership

Through this project, they had to develop a model through which to “sell” community valuesin projects. There are many different views on “equitable share”. As a result, they identified a need to communities in the Eastern Cape about wind energy and thus they setup the “Eastern Cape Community Wind Energy Development Agency” (ECCWESA).

ECCWESA is at the forefront of ensuring local ownership and community participation in wind energy projects. It was founded on 1 April 2009 and operates as an NGO based in PE and funded by the Danish International Development Agency (DANIDA). It has recently opened a new office in East London in order to service the eastern part of the Eastern Cape including the former Transkei and Ciskei areas.

The main objectives of ECCWESA are to protect vulnerable communities from potential exploitation by project developers through: educating communities and Stakeholders about the wind industry and the mandatory processes involved in the development of wind farms; negotiating on their behalf with project developers; lobbying on behalf of the communities with various stakeholders; maximising community benefit to add the maximum possible value to the communities land throughout the process.

It also ensures that any additional development contractual arrangements that may need to be created to complete this project will be entered into in such a way that they provide a net added value to the community.

ECCWEDA agree that community partners should be fully involved in the decision making process with regard to all aspects of the project that affect them, and that community partners should themselves determine how they will structure and represent themselves in

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order to engage with the project. It seeks to ensure that benefits that accrue to communities as a result of the projects should be distributed in an open, accountable and equitable manor for purposes primarily determined by the community themselves, for the benefit of the community as a whole. ECCWEDA will work only with community partners that demonstrate a commitment to equitable decision making processes, that have transparent and accessible membership requirements and that do not discriminate against any [(adult)] person for whatever reason.

ECCWEDA also facilitate local job creation through the involvement of local private sector (BEE companies)’s participation in manufacturing of components for wind farms, construction and maintenance of wind farms.1 x 40MW plant creates 14 permanent jobs.They also facilitate ssupportive municipal legal framework through negotiations with mmunicipalities to assist communities through giving them access to land through long term leases and also fast tracking rezoning applications. Municipalities can sign an agreement for part of the energy produced (Power Purchase Agreements national or municipal REFIT linked). Priority should also be given to community based renewable energy projects when wind power generation licenses are being given.

Summary and Way forward: Sithole Mbanga, CEO, South African Cities Network (SACN)

Sithole provided a summary of the presentations and deliberations throughout the day. He highlighted that there was a lot that was discussed and learned. The wind farm project visit to be done the following day will be interesting based on the presentation made on the Tsitsikamma Community Wind Farm project.

He mentioned that there are three components to the Reference Group meeting, i.e.:

1st Component – Meeting of Mayors and MMCs

During these discussions, the mayors and MMCs were presented with the responsibility that has been placed upon Mayor Mekgwe to lead nine champions who will be doing work on behalf of the local government in the 9 provinces. The main question was how to unpack thismandate? A technical committee developed a draft declaration on Climate Action and Renewable Energy (CARE). During the meeting, there was a lot of discussion around these issues and they requested the document to be refined into a one pager with annexes and circulate it to all the 250 municipal mayors to feed back their thoughts. SALGA committee will take this forward.

This should be taken very seriously. The 2nd week of May 2010 SALGA will hold the National Members’ Assembly and it will discuss the draft declaration and they way forward. This will then be presented at the National Green Economy Summit. If this declaration is not done by time of the Summit, there can be a special Local Government session that can be convened to look into this.

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2nd Component - the Reference Group meeting

This meeting is really about partnering and lobbying to effect change. The discussions were informed by the business case studies that were presented. It is important to identify who do we lobby and for what? Who do we talk to with the intention of partnering? There will be a plan of implementation by Mayor Mekgwe with the 9 champions of local government. It will be important to still look at issues like creating an enabling framework for this to happen, mechanisms for financing this plan (Local Government fund), and issues around licensing (EIAs, etc).

3rd Component - SMART business planning

Local government represented today must engage in some form of business planning so that a better picture of what local government is doing can be presented. There is a suggestion that all business planning must meet the following criteria, i.e. show partnership(PPPs); demonstrate ability to create jobs; demonstrate local ownership (land or technologies) and direct beneficiation of the project; financial sustainability(ability to raise funds and force municipalities to create funds to be able to invest. Can learn from the Ekurhuleni case)

The 7 technologies which have been spoken to are SWHs, PV, Wind Power, Waste to Energy, Energy Efficiency in municipal buildings and infrastructure, Reforestation and Greening, and Rain water harvesting. The question to be posed as a way-forward is who will be the champion on each of these technologies amongst the municipalities that are here? In responding to this question, municipalities who want to champion any of these technologies should do this by writing to the Secretariat (SACN); indicate commitment for making this to work till the end. These technologies have to be institutionalised and become a Mayoral decision within the municipalities. They also need to include financial and non-financial resource needs for rolling out the technologies.

Conclusion

In conclusion, it was mentioned that it would be great to have all municipalities present whenthe declaration is formalised and need to look at how we make sure that we have the other champions from the 9 provinces who are not present at this meeting.

It was mentioned that SALGA will be concluding their provincial Executive Committee meetings and they will be informing all provinces about this process and hopefully all of them will be able to nominate champions who will be engaged by Mayor Mekgwe to be fully involved.