Eskom IDM – Cultivating Energy & Water Services Industries in Townships

15 -16 May 2012

UJ CSDB Annual Conference for Transforming Townships into Economic Power Houses

Jerry Mafereka – IDM Youth Dev. & Job Creation Facilitation Manager, MWP and Joe Sovendle – Social & Economic Dev. Manager, GP OU

The Outline of Presentation

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1. The Green Economy Market Opportunities

2. The Context of Green Economy and Youth Development

3. The Competitive Suppliers / Enterprises Dev.

4. Market Access and Growth Path

5. The BEAT Programme in GP & KZN

6. The Collaboration Frameworks and Roles

7. Market Research and Partnering Approaches

8. Key Energy & Water Industry Players

9. Energy & Water Use Efficiency Technologies

10. Green Power Supply Technologies

11. Y-AGE / SWGC FET Partnership

12. The Bottom Line and Wayforward

Green Economy Market Opportunities

• Decline of jobs in traditional industrial sector

• Rising cost of water and energy - a new market is opening up

• New skills are needed to serve this new market – these skills are currently in scarce supply

• The opportunity to create green jobs in a sector where energy and water cost savings will support more employees and business opportunities

• As the leading energy provider & large user of water in S/Africa, Eskom must play a leadership role in this space

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Decline

in jobs

Increase in

Energy and

Water costs

The Context of Green Economy & Youth Dev.

South Africa has large numbers of unemployed young people.

Expanding the industrial base and addressing new emerging industrial opportunities, specifically the Green Economy, will increase employment.

Young unemployed people cannot easily access the Green Economy, -they do not have the base skills to gain access as employees and owners of small enterprises.

Without access to useful skills, unemployed youth will be perpetually marginalised.

By playing an active and strategic role in growing and deploying these new skills, Eskom will ensure its continued sustainability, and make a contribution to the national economy through the evolution of the Green Economy.

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New Power

Generation

Build Programme

High Value Capex:

-Boilers

-Transformers

-Turbines

-Plant & Equipment

Efficient Technology

-Solar water heating

-Lighting & HVAC

-Compressed Air

-Industrial Optimisation

-Distributed/Embedded DX

IDM Programme

Eskom CSDP Large Localised

Manufacturing

New Enterprises

New ESCos

New SMMEs

Manufacturing

Installers

SEDA Technology

Programme

Industrial hub

Energy and Water

Resource Efficiency

Incubator

Partners:

- DPE,

- DsT

- DTI

- Incubator process

-Base load stations

-Merit stations

-Peaking stations

Virtual Power

Station

The Competitive Suppliers / Enterprises Dev.

Large Enterprises

Medium sized Enterprises

Small Enterprises

Micro enterprises

Employees

Unemployed

Market Access & Growth Path

The BEAT Programme in GP & KZN

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12 month Trade Skills

Programme at an FET

College

6 – 12 months Incubator

Programme

Post-programme

Business Support

Core Curriculum

• Energy audits

• CFL Replacement

• Smart meter

installation

• Solar water

Heaters

• Heat pumps

• Small Appliance

repair

The Collaboration Frameworks and Roles

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Communication

Governance

Facilitation

Varsities and FETs

SEDA Industry Hubs

Targeted FETs & Varsities

SEDA Incubators

• Industry Associations

• Supplier Organisations

• Chambers of Commerce

• Organised labour • Other SOEs

The Eskom Foundation, IDM and SD&L Depts.

Collaboration Integration and Coordination

Reporting

Market Research and Partnering Approaches

Phase Key Objectives

Phase 1

Public

Consultative

Workshops

•To understand local socio economic challenges facing the

community, particularly young people

•To design relevant intervention for promoting youth

development

Phase 2

Stakeholder

Engagement

Workshop

•Formalise MoU/ MoA with Key Stakeholders

• Facilitate Establishment of Institutional Arrangements

Phase 3

Strategy

Development

Workshops

•Facilitate Development of Partnering Strategy

•Workshop Development of Business Cases to drive job

creation mission & ESCOs Development Initiatives

Key Energy & Water Industry Players

The Key Specific

Roles

Key Industry & Market

Players

Key Activities &

Schemes

Training Providers

UJ-CSBD

FET Colleges

Universities

Eskom (EAL)

Design & Delivery of training

programmes

Industry Associations

and Technical Support

Eskom GP OU

City Power

Rand Water

Joburg Water

SEDA

EnerKey

SeTAR

Scoping of training content

of skills and investments

support for technology uses

Market Access Support

NERSA, Water Boards and 3

Spheres of Government

Licences; Regulated Pricing

and Tariffs Administration

Funding Support

GEDA/ Blue IQ

GEP

Eskom Foundation

IDC/ DBSA/ JDA

Provide Finance &

Investments Schemes as

well as expertise support in

the funding arrangements

Energy & Water Use Efficiency Technologies

• Energy Efficient Lighting Systems

• Lighting & associated systems

• Efficient Lighting in Poultry & Greenhouse

• Buildings & Buildings MS

• Sensors & Controls

• HVAC systems

• Refurbishing for Energy Efficiency

• Green Design

• Electrical Hot Water Systems

• Heat Pumps

• Induction Heating

• Showerheads and Temperature Controls

• Process Optimisation

• Compressed Air systems

• Refrigeration and Cooling

• Waste Heat Recovery

• Electric Boilers and Steam systems

• Drying Technologies

• Pumps

• Energy Efficient Motor systems

• Thermal insulation

• Process Integration (heat exchangers

networks) / Process Heating

• Waste

• Waste Recycling

• Waste-to- Energy

Green Power Supply Technologies

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Domestic Photo-voltaic (PV) Lighting

Solar Water Heater Installation

Heat Pump Installation

Hydro-electric orientation

Wind generation orientation

Bio-mass orientation

Carbon Capturing and Storage orientation

Underground coal gasification (UCG)

CFL Manufacturing and Marketing

Energy Efficiency Auditing

LED Manufacturing & Marketing

Battery and constant energy supply orientation

9. Y-AGE / SWGC FET Partnership

• Following the 2011 Budget Speech by MEC of Economic Development, a Youth Entrepreneurship development programme (Y-AGE) was embarked upon to find 100 000 entrepreneurs

• These entrepreneurs will be recruited, screened, trained, financed and supported to hire between 3 and 5 people in order to create 1 million jobs

• This project is being delivered in collaboration with various civil society entities as well as the private sector who will be asked to match DED’s contribution in creating these jobs

• DED through GEP has set aside at least R30 million for this initiative and the programme was launched on 21 October 2011.

• SWGC FET and Eskom Foundation signed an agreement to support electrical workshops equipment only

The Bottom Line and Way Forward

1) Create mechanisms for entrepreneurs to gain market

access to the growing Green Economy by providing

them with industrial opportunities to gain technically

useful skills.

2) Strategic Partnering and Linkages between BMOs, Industry

Associations; Institutions of Higher Learning and 3 Spheres of

Government

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The End

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Thank you