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Integrated Renewable Energy & Resource Efficiency Programme

Introduction to the Integrated Renewable Energy and Resource Efficiency Programme (iREREP)

iREREP is the official national Programme for Resource Efficiencies and Renewable Energy for Government facilities in a bid to meet sustainability targets of Government and South Africa at Large. Delivery of the Programme is anchored across the 5 key themes: centralised governance, security of supply, budget rationalization, socio-economic development, and environmental sustainability.

Programme Description

In terms of the Government Immovable Asset Management Act 19 of 2007, the National Department of Public Works and Infrastructure (“DPWI”) is the mandated custodian and portfolio manager of Government’s immovable assets. In this regard, the Department is responsible for planning, acquiring, managing and disposing of immovable assets in the Department’s custody.

The DPWI is the largest property owner in South Africa covering 37 million square meters (sqm) over more than 92,000 facilities. The DPWI’s 10.1 million in office space accounts for 35% of the total office space in South Africa.

The DPWI property portfolio is the largest property portfolio in the country is responsible for the consumption of a significant amount of electricity and water and the generation of a significant amount of waste. Recent studies place annual electricity and water consumption at an estimated 4021 Gigawatt hours and 39 million kilolitres respectively, with over 822 kilotons of waste generated. This equates to an average annual expenditure on electricity and water of R2.4 billion and R1.8 billion respectively. This large property portfolio is at the core of the DPWI’s vision and mission of ensuring convenient access to dignified public services through effective management of the State’s immovable assets to contribute towards economic and social development and transformation of the built environment.

In addition to the massive financial impact that utilities have on the DPWI, its budget and the continued operations of Government, the consumption of electricity, water and production of waste have massive environmental impacts. In 2018 the Department reported that over a third (⅓) of all carbon dioxide (CO2) emissions arise from building construction and operations and over a third (⅓) of all energy and material resources are used to build and operate buildings. Additionally, over a third (⅓) of the total waste produced results from construction and demolition activities.

The DPWI’s responsibilities in promoting Section 24 of the Constitution include protecting the environment from the effects of climate change. The phenomenon of climate change refers to the greenhouse effect which is the ongoing trend of changes in the earth’s general weather conditions as a result of an average rise in the temperature of the earth’s surface primarily due to the increased concentration of greenhouse gases (GHGs) (carbon dioxide, methane, nitrous oxide, chlorofluorocarbons, hydrofluorocarbons, etc) in the atmosphere.

In line with section 24 of the Constitution of the Republic of South Africa, the Department is a key player in ensuring environmental sustainability within the built environment. The Department’s responsibilities in this regard include protecting the environment from the effects of climate change and achieving the targets the South African government has set in the National Development Plan 2030, the Energy and Climate Change Strategy in the Public Building Sector and National Energy Efficiency Strategy for South Africa post 2015 in respect of energy savings, renewable energy generation, water savings, reduction in CO2 and waste by 2030 and 2050.

In order to contribute to the above goals, the DPWI adopted the Green Building Framework, 2011 and a Green Building Policy, 2015, which provide an overview of the national vision, principles, trends and strategic priority areas for a sustainable building and construction sector, and also provide guidelines for the implementation of green building programmes, transitioning to a low carbon economy and the implementation of energy efficiency programmes. The DPWI has also translated the above goals into the strategic objective for ensuring resource efficiency in Government-owned buildings, by implementing water, energy and waste management plans. This will entail the reduction of energy and water consumption, and waste generation in identified state-owned buildings as well as the generation of several kilowatt hours of renewable energy.

The Programme has been designated as Strategic Integrated Project 28 – Photovoltaic (PV) and Water Savings on Government Buildings, by the Presidential Infrastructure Coordinating Commission, in terms of section 8(1)(a) read with section 7(1) of the Infrastructure Development Act 23 of 2014 and is aimed at procuring private sector energy service companies to roll out energy efficiency (including solar geysers), water efficiency, alternative waste management and embedded solar PV, and other renewable energy solutions throughout the Department’s property portfolio.

The Programme will be carried out in two (2) phases, with Phase I being aimed at 45% – 50% of the Department’s property portfolio and will include approximately twenty (20) Facilities. Phase II of the Programme will target the remainder of the property portfolio, with implementation of the Programme expected to be carried out over a thirty (30) year period.

The DPWI’s unwavering commitment to creating world class programmes that can serve as benchmarks for resource efficiency is anchored by a dedicated Project Office, namely, the Innovation Project Preparation and Development Office (IPPDO). The Office is led by a Steering Committee comprising of DPWI and National Treasury’s Government Technical Advisory Centre (GTAC), who in turn are supported by Transaction Advisors who have experience in delivering large scale projects of this nature.

iREREP

The Department of Public Works and Infrastructure (DPWI), supported by the Government Technical Advisory Centre (GTAC) has developed a programme that is aimed at rolling out:

A feasibility study has been completed and the Programme has officially designated as Strategic Integrated Project 28 (SIP28) – Photovoltaic (PV) and Water Savings on Government Buildings, by the Presidential Infrastructure Coordinating Commission

KEY iREREP PROGRAMATIC THEMES

PROGRAMME VALUE IMPACT

Programme Description

The Programme will be the largest programme for the procurement of renewable energy and resource efficiency for public facilities, with in excess of 3740 megawatt (MV) of renewable energy procured, attracting initial private sector capital investment of up to 387 billion.
The programme will create a high number of green jobs over the 30-year period, with in excess of 503 000 green jobs are expected, as well as:

Upskilling more than
475 000 people.

Creating up to
13 100 new small businesses.

Reducing
GHG emissions98 megaton (Mt) per annum.

The Commerce and Public sector is the second largest contributor to the consumption of electricity by sector after the Residential sector, consuming 18.6% of total electricity produced in South Africa, with government buildings estimated to consume in excess of 9 705 gigawatt hours (GWh).*

*Including national Department of Public Works and Infrastructure (DPWI), provincial hospitals and some municipal administrative, workshop and other community facilities (source - Analysis Report: Baseline, in Public Buildings in South Africa)

The DPWI is the largest property owner in South Africa covering 37 million square meters (sqm) over more than 92 000 facilities.

The DPWI’s 10.1 million in office space accounts for 35% of the total office space in South Africa.

Annually, the government property portfolio is estimated to consume/produce approximately:

** these figures are based on national DPWI, provincial hospitals and some municipal administrative, workshop and other community facilities. National DPWI is estimated to consume/produce 4 021 GWh of electricity, 39 million kL of water and produce 822 thousand tons of waste.

This equates annually to between R14,5 and R19,3 billion*** in water, electricity and waste expenditure. The recent Eskom tariff increase of 18,65% is expected to increase this spend to between R17.2 billion and R22.9 billion.

** these figures are based on national DPWI, provincial hospitals and some municipal administrative, workshop and other community facilities. National DPWI is estimated to consume/produce 4021 GWh of electricity, 39 million kL of water and produce 822 thousand tons of waste.

Any solution to the current electricity, water and waste management crisis the country is facing has to involve the Public Sector.

Reduction of energy use intensity of between 22% and 45%.

Co2 and other GHG emission reduced 54.5 Mt by 2050.

Water use intensity reduction of between 30% and 55%.

Reduce waste and divert 50% of current waste from landfill sites. Save 12m tons by 2050.

Reduce waste costs by 50%.

8 450 - 13100 new small businesses will be developed majority being black-owned.

A total of between 324 600 - 503 00 green jobs are expected.

Over R834 billion - R1.3 trillion contribution to the economy.

Improving electricity and water security of supply to public buildings and simultaneously optimising consumption of these deficient resources.

Stimulating economic recovery by procuring Private Parties to roll out resource efficiency.

Contribute towards South Africa meeting its national policies and international commitments on environmental sustainability and climate change.

Reducing the Government’s high consumption of energy and water as well as waste production.

Anticipated 23 175 jobs will be created in the first 5 years.

Upskilling between 260 000 - 404 000 people.