SASSA LOW PRESSURE SOLAR WATER

HEATER PROGRAMME HEATER PROGRAMME

May 19, 2011

Department of Energy, Pretoria

AGENDA

1. The Programme

2. Why SWH and this programme?

3. Approach

THE PROGRAMME

THE PROGRAMME

• Installs 110 litre low pressure SWHs in low income

households under PoA approach free of charge.

• The project will see an immediate positive impact on the

social, economic and environmental well-being.

SOLAR WATER HEATING (SWH)

• A water heating system using energy from the sun

• Dark evacuated tubes absorb heat and hot water rises naturally into the tank, while cool water in the tank flows down to the bottom of the vacuum tube.

• Main components:

1) collector,

2) liquid energy transfer medium (water or heat transfer fluid);

3) geyser/tank.

SALINENT PROJECT PARAMETERS

• Supplier Solar Academy of Sub Saharan Africa

(SASSA) distributing the Tasol brand

• 110 litre LP SWH has a daily thermal capacity of a

13.692 MJ, which equals to 1.38 MWh electricity 13.692 MJ, which equals to 1.38 MWh electricity

saving per year.

• Estimated annual emission reduction 1.3 tCO2/SWH

• First CPA includes 59,000 installations. Total

potential: 229 000 installations within 3 years

throughout South Africa.

• Total CER contribution sought 2.3 mil

WHY SWH AND THIS PROGRAMME?

BACKGROUND FOR THE PROGRAMME

Africa has the highest solar radiation levels in the world, which

makes the concept of SWH logical!

CONTRIBUTION TO SUSTAINABLE

DEVELOPMENT

• Over 50 % or 5 million households in South Africa have

electricity, but do not have a geyser in these households.

• The provision of SWHs free of charge for the targeted

households will result improved service delivery to residents households will result improved service delivery to residents

and to major social upliftment.

• The project will lead to employment opportunities in the solar

sector, with training provided for technicians .

• Current electricity supply is not enough to meet projected

future demand in South Africa. The proposed PoA will reduce

electric water heating loads and help the country to correct

the energy mix, with a greater focus on renewable energy.

• Reduction of greenhouse gas emissions.

APPROACH

PROJECT PARTICIPANT AND

IMPLEMENTING FRAMEWORKProject Participants:

• Solar Academy of Sub-Saharan Africa - Managing Entity

• International Carbon - CDM Cycle Management

• Standard Bank - CER Offtaker

SASSA(project owner)

HOUSEHOLDS

ESKOM

INTERNATIONAL CARBON INSTALLATION and

MANAGEMENT COMPANY(installation, maintenance, monitoring)

Subsidy

Carbon and

Subsidy Rights

CDM

Management

ERPASTANDARD BANK

Transport Entity

Data Capturing Entity

Community Development

Entity

SWH

SWH

MANAGEMENT STRUCTURE OF THE POA

ESKOMSubsidy

Data Capturing Entity

SASSA(project owner)

InternationalCarbon

SWH Data

HOUSEHOLDS

INSTALLATION and MANAGEMENT COMPANY(installation, maintenance, monitoring)

Carbon and

Subsidy RightsTransport Entity

Community Development

Entity

Registered Plumber(s)

Installer(s)

Assistant 2Assistant 1

Area Inspector(s)

Queries Coordination Officer & Administration

SWH

SWH Data

CLEAN DEVELOPMENT MECHANISM

1. Applies the Programme of Activities Approach (PoA)

� First registered PoA in South Africa

� First SWH specific PoA worldwide

2. Methodology:

� Simplified modalities and procedures for small scale CDM � Simplified modalities and procedures for small scale CDM

projects

� AMS.I.C – Thermal energy for user with or without electricity

Comprise renewable energy technologies that supply users

with thermal energy that displaces fossil fuel based gird

energy (par 1 and17)

� Displacement of electricity is calculated as per the procedures

detailed in AMS-I.D; option b weighted average emissions of

the current generation mix has been applied

CLEAN DEVELOPMENT MECHANISM3. Baseline:

� Suppressed demand argumentation - Para 46 of the CDM

Modalities and Procedures state that “The baseline may

include a scenario where future anthropogenic emissions by

sources are projected to rise above current levels, due to the

specific circumstances of the host Party.”

� Determined based the energy output as per SABS test � Determined based the energy output as per SABS test

(13.692 MJ/day/SWH)

4. Additionality:

� “Attachment A to Appendix B” of the simplified modalities and

procedures has been applied identifying the following barriers

for the CPA:

� Financial Resources - cash flow model

� Capacity to Absorb New Technologies - Comprehensive

argumentation

� Limited Information - Comprehensive argumentation

� Simplified Additionality for Micro scale Activities

CLEAN DEVELOPMENT MECHANISM5. Unique identification and record keeping system for each CPA:

� Site Details: street address and GPS coordinates and ERF

number

� Residence details: first name, surname, ID number and contact

details

� Installer Details: installation date, installer name, company

and contact detailsand contact details

� Installation Details: Serial Number, SWH type, size and

collector area

� Residence Agreement to cede subsidy and carbon rights to

SASSA

The ERF number, is used to locate each SWH in a Geographical

Information System (GIS) tool to enable spatial integration. The GIS

(spatial view) can be used to identify candidate installations, as

well as inform relevant parities when the status of the installation

changes (e.g. finalized installation or failure).

6. Monitoring:

Has three measurement and verification levels that are applied

to ensure the operation of the SWH’s and to calculate the ex-

post emission reductions:

1) Real-time measurement (done in 1/10 000 of the SWHs),

CLEAN DEVELOPMENT MECHANISM

2) Inspection of operationally (done in 1/100 of the SWHs), and

3) Simulation approach to determine energy provide for each SWH

passed on level 1 and 2 measurements.

Note: real time mesurment shall happen in max 50 km radius

from each installed SWH.

ONCE

PROJECT PHASE / DOCUMENT

Project Idea Note (PIN)

TIMELINES

August 2009

Eskom notification: rebate (bases on the thermal performance output ) applicable for LP SWH October 2009

March 2010

April 2010MoU SASSA and NMBM was signed

May 2010

Term Sheet on Carbon was signed between Standard Bank, IC and SASSA

PoA and CPA Design Documentation (“PDD”)

Start of Validation (GSC)

SABS testing (first approval)

June 2010

ONCE

Letter of No Objection (LoNO)

SABS test completed (3. test)

Onsite Audit

Letter of Approval (LoA)

REGISRATION by UNFCCC

July 2010

August 2010

Final Validation ReportNovember 2010

December 2010Requesting Registration by UNFCCC

January 2011

April2011

To date 45,000 SWHs have been installed!

Start of Installations

Thank You!

Laura Lahti

CDM Expert / Director

International Carbon

+ 27 7954 23553

laura.lahti@intlcarbon.com

INTERNATIONAL CARBON LTD

INTERNATIONAL CARBON

An African carbon development, trading and advisory

company, with expertise in the fields of carbon and energy.

Presence in UK and SA.

Our technical and commercial teams have many years of Our technical and commercial teams have many years of

experience in the Carbon and Renewable Energy sectors, and

have assisted various companies and governments to realise

the Carbon potential in their portfolios. We also have long

established links with other industry leaders, and we bring a

total solutions package for our clients.

Advisory

• Strategy and Master Planning: minimising risk and maximising value.

• Technology Consultancy for low Carbon options

Capacity Building

• Knowledge and expertise while contributing to sustainable development.

• Design and implement training programs

Financial

INTERNATIONAL CARBON

BUSINESS LINES

Financial

• Brokerage/Trading: with access to various trading options for Certified Emission Reduction

(CERs) and Voluntary Emission Reductions (VERs) credits.

• Work with financial institutions to provide unique and innovative financial solutions to the

customer.

Development

• CDM Cycle Management: PINs, PDDs, Monitoring Reports, assistance of validation,

registration, verification and issuance

• Technology partners: established partnerships with recognised technology and equipment

suppliers.

• CDM project development: origination and development of CDM projects in Africa.