In order to catalyse an energy efficiency transformation within South African public sector buildings, a comprehensive framework for promotion, identification, financing and implementation of energy efficiency measures in buildings is established in a consistent and replicable manner.
The NAMA Facility supports a national energy efficiency programme which stimulates the energy efficiency market in different ways and draws in other national funding in the medium-term. The NAMA Support Project (NSP) uses the procurement potential of the public sector to strengthen the market for Energy Service Company (ESCo) in order to establish a critical mass of projects in the market. It improves access to financial services for ESCOs through the banking sector, and it incorporates already existing expertise in identifying energy efficiency potentials in public buildings into which ESCos are invited. In this way, this NSP will also have a stimulating effect on the overall energy efficiency market transformation in South Africa.
South Africa’s Energy Efficiency Strategy already sets a 15 per cent energy intensity reduction target for public buildings, and the Climate Change Response Strategy includes the ‘Energy Efficiency and Energy Demand Management flagship programme’, which comprises energy efficiency in the industry and in private, commercial and public buildings. However, provinces and municipalities have so far engaged in this national agenda only to a very limited extent.
The “Energy Efficiency in Public Buildings Programme” (EEPBP) NSP helps to scale up support for implementing the Energy Efficiency and Energy Demand Management flagship programme. Its overall goal is to ensure that all South African spheres of government (national, provincial and municipal) contribute to the national greenhouse gas (GHG) mitigation, energy efficiency and energy security targets.
- In EEPBP’s Financial Component, a Project Preparation Facility enables provinces and municipalities to develop bankable energy efficiency investment plans for their public buildings. A Guarantee Fund supports private ESCos in raising the necessary finance for entering contracts with the public owners of these buildings to finance and implement these plans.
- In EEPBP’s Technical Component, a Service Desk advises provinces and municipalities on energy efficiency opportunities in public buildings by helping to raise awareness, understand the potential for energy efficiency and associated profits and carbon savings, set baselines and targets and finally identify concrete energy saving opportunities. The desk supports the government in measuring the EEPBP’s results and it supports further development of mechanisms that promote energy efficiency.
- EEPBP uses NAMA Facility funding to mobilise public and private sector investments in public buildings in a 1 to 3.3 ratio (overall NAMA Facility contribution in relation to loans for energy efficiency measures issued by the end of the project and 1 to 7.7 after 10 years). It contributes to market development for energy services and new ways of government coordination (vertical/horizontal). It leads to a GHG mitigation of 610 kt CO2 annually by the end of the project and 1,817 kt CO2 annually after 10 years.