SAEEC Workshop launches M&V Tool

The Southern African Energy Efficiency Confederation (SAEEC), local chapter of the International Association of Energy Engineers (AEE), hosted a workshop to discuss the Measurement and Verification (M&V) Uncertainty Guideline and launched the M&V Tool – ground breaking word done by South Africans in the energy industry.

The event was sponsored by GIZ, SANAS, SANEDI and Faculty Training Institute, and was fully booked and well supported by the industry. Drs Herman Carstens and Dawie Diamond from Invoke Analytics demonstrated the tool with a lot of group interaction between members and non-members of the SAEEC. Karel Steyn, Chair of the Measurement and Verification Council of South Africa (MVCSA) discussed the future of M&V and the possibilities these hold for the industry, with Barry Bredenkamp discussing the current status of M&V in South Africa, and the country’s dependence on quantified information in the energy industry to implement regulations in support of standards.

 

AEE Travel Fund for LEDET alumni to attend WEC in the USA

Kemmone Mochai, learner of the Limpopo Economic Development Environment and Tourism Department’s (LEDET) Energy Skills Internship Programme,received Association of Energy Engineers (AEE)Travel Fund to attend the World Energy Engineering Convention in Washington DC, during September 2019.Kemmone joined the LEDET Energy Skills Internship Programmein 2017, managed by the Energy Training Foundation,and embarked on a journey that changed his lifewiththe energy industry gaininghis much needed scares skills. Kemmone graduated from Tshwane University of Technology with a Diploma in Mechanical Engineeringafter which he joined the LEDET programmewhere he was trained in the basics of energy management and energy auditing, went through practical training and a year’s work experience under leadership ofmentors Certified with the AEE. After the advanced training towards the internationally accredited Certified Energy Manager (CEM),as well as examination preparation, Kemmone managed to pass the tough examination within the required 4 hours completing 130 questions and attained the passmark of over 70%.Kemmone has been Certified as an Energy Manager In-Training (EMIT) by the AEE, whilst he is still working on gaining sufficient experience to become fully certified as a CEMas his current place of employment in the position of Junior Facilities Manager with Redefine Properties.Twenty Limpopo born youths were on-boarded onto the LEDET Energy Skills Internship Programmefor a year and were all placed at AEE Certified professionals in industry whom served as mentors. Kemmone was placed with BBEnergy where he was exposed to several mines, working underground to maintain and replace equipment to more effective equipment finding innovating ways to assist with efficiency. Thereafter Kemmone joined Bidvest Facilities Managementwhere he was part of a team that identified significant energy savings for buildings managed by Bidvest, completed 12 energy efficiency projects including working with ISO5001, ISO45001, ISO14001, ISO9001andISO8995-1

Carbon Tax : The next steps – practical implementation and mitigation actions

By Zadok, Olinga

SAEEC Board Member

Carbon tax came into effect on 1 June 2019 in South Africa as part of the desire of government to reduce carbon emissions and live up to its promises and commitments on climate change. Phase 1 of the tax sees carbon emissions taxed at a rate of R120/tonne of CO2e (carbon dioxide equivalent), and with the various allowances considered, the effective tax rate is between R6 – R48/tonne of CO2e. The initial rate will increase annually by CPI +2% until 31 December 2022 and by the CPI from 1 January 2023 onwards.

The price for greenhouse gas emissions seems set and companies have to adopt to the reality of additional operating cost, more reporting requirements and complying with carbon tax. However, the deputy director-general at National Treasury, Ismail Momoniat, speaking at seminar on 16 July 2019 indicated that the current carbon tax “…is pretty weak”, primary symbolic and designed to primarily change behavior.  Industry seems opposed to the implementation of carbon tax but all factors indicate that carbon tax is a new reality that is here to stay. Therefore, companies have to prepare for it and consider mitigating actions to ensure that carbon tax does not pose an undue burden to their operations.

The South African Energy Efficiency Confederation (SAEEC ) is committed to assisting companies and the wider public in South Africa with the transition to a greener future. Thus far, it has carried out workshops on carbon tax, Measurement and Verification (M&V), and further workshops are planned starting in August 2019 as a follow up to the previous two workshops. Of particular focus will be the practical aspects of carbon tax reporting and compliance, and possible mitigating actions to reduce the carbon tax burden for companies eligible to pay the tax.

Among the possible mitigating actions that will be addressed is energy efficiency. In their working paper on Energy Efficiency Networks, the Organisation for Economic Co-operation and Development (OECD) and International Partnership for Energy Efficiency Cooperation (IPEEC) state that “energy efficiency is a crucial pillar of the global energy transition…” and go on state that “Energy efficiency will need to contribute about 50% in energy-related carbon dioxide (CO2) emissions reductions for the world to be on track for the 2°C trajectory set out by the Paris Agreement adopted in December 2015.” The SAEEC shares the above sentiment and will present speakers at its next workshop who will outline how energy efficiency fits into carbon tax mitigation in South Africa. Furthermore, government through the Minister of Finance, Tito Mboweni, announced that the section 12L tax incentive for energy efficiency will be extended by three years to align with the end of phase 1 of carbon tax. This further indicates how central energy efficiency will be to carbon tax and emissions reduction.

Other possible mitigation schemes that will be addressed include carbon neutralization, carbon sequestration, the use of carbon offsets, and the generation of carbon offsets by entities that are not eligible to pay carbon tax. As the SAEEC we welcome participation from all sectors of industry and look forward to meeting you at our next workshop towards early September 2019.

Carbon Tax Workshop

 

 

 

Carbon tax can be said to be present and imminent in South Africa and it is slated to affect all industries. However, it is apparent that phase 1 of the carbon tax will penalise companies whose primary source of emission is energy generation. Therefore, the obvious conclusion is that using less energy will be essential to reducing the greenhouse gas emissions and the consequent steep tax for heavy emitters.

However, to the stick of carbon tax, there is the carrot of the section 12L tax incentive for energy efficiency. Section 12L benefits companies that implement energy efficiency interventions to decrease their energy intensity and employ Measurement and Verification (M&V) to quantify the energy savings for the purpose of a tax allowance. The section 12L tax incentive is currently at 95 c/kWh for energy savings.

Carbon tax and section 12L, with M&V as a core service that provides risk assurance offer opportunities for companies, engineers and consultants in the heavy industrial sectors. Therefore, the Southern African Energy Efficiency Confederation (SAEEC), an active chapter of the Association of Energy Engineers (AEE) took the initiative in hosting a workshop for its members exploring these opportunities.
The workshop was held on the 12th April 2019 at the Eskom Learning Academy in Midrand sponsored by Catalyst Solutions, Cova Advisory and SANEDI.