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Jul 19, 2012

Eskom starts Phase 2 of residential energy efficiency programme

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State-owned Eskom has put out a request for proposals (RFP) for Phase 2 of its R1.5-billion residential mass rollout (RMR) programme, aimed at reducing electricity consumption in South Africa’s suburban sector.

The second phase was envisaged to run from August to December and was intended to reduce consumption by 190 MW by rolling out energy efficient technologies to homeowners free of charge, Eskom said a response to questions.

Between 190 000 and 380 000 households would be targeted at a cost of up to R1-billion, depending on the mix of technologies used.

The utility stated that the contract for Phase 2 would be awarded on a first-come, first-served basis and would be for the bulk replacement of inefficient lighting (with light-emitting diodes [LEDs] and compact fluorescent lamps [CFLs]), energy and water saving showerheads, flow restrictors, geyser timers, geyser blankets and load-control devices in households.

Interested suppliers would be required to support and install the full complement of technologies stipulated under the second phase, which specifies a maximum of 20 CFLs and 40 LEDs per home. Sixty per cent of homes visited must have geyser timers.

However, there were no limits set on the installation of showerheads, geyser blankets and pool pump timers.

Eskom further pointed out that preference would be given to the respondents which scored high in terms of broad based black economic empowerment (level 1 to 4 compliance), the Industrial Policy Action Plan and the New Growth Path.

The power provider would set aside a minimum of 50% of the total project value for black-owned companies. Black ownership included being more than 50% owned by black persons, black disabled persons or groups, and black youth, and having a minimum of 30% ownership by black women.

Participants were also required to propose targets for the localisation of contract spend, skills development and job creation and would have to keep to a 25% target set for local content and 25% target for skills development.

Further, interested parties would have to be registered Eskom vendors. However, those who were not, would be allowed to register after proposal submission.

The RFP would close on August 31 and the latest day of project delivery is December 31.

Eskom said it would continue to undertake the RMR programme in phases, depending on funds available and savings targets reached. The first pilot phase ran from January to June. The timing and targets for Phase 3 were not final yet.

CONTINUING PRESSURE

Meanwhile, South Africa’s electricity supply system remained under significant pressure.

Eskom said that although the recent economic downturn provided temporary relief, the local economy was recovering rapidly, with consumption levels currently exceeding that of 2008.

“There is a high likelihood that there will be an energy supply shortfall over the period until 2015,” the power provider warned.

It forecast a shortfall of 9 TWh of energy for 2012, which was comparable to the energy produced by about 1000 MW of baseload capacity in a year.
 

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
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