Major emmitters set carbon goals post Copenhagen

The Copenhagen Accord that was negotiated on the last few days of the Copenhagen Summit in December ’09, set a 31 January deadline for countries to commit to national targets for curbs in emissions until 2020.

The UN recently announced that fifty five countries, responsible for almost 80% of world greenhouse gas emissions have pledged various goals to combat climate change.

Most countries, including China and the US, mostly reiterated commitments unveiled prior to the COP 15 in Denmark. These include:

• President Obama’s plans for a 17% cut in US emissions from 2005 levels or 4% cut from 1990 levels.
• The European Union’s goal of a 20% cut from 1990 levels or 30% if other nations step up.
• China’s “endeavour” to cut carbon intensity (carbon produced per unit of economic output) by 40%-45% from 2005 levels
• South Africa’s commitment to a 34% reduction below business as usual

Jennifer Morgan of the World Resources Institute commented: “Following a month of uncertainty, it is now clear that the Copenhagen Accord will support the world in moving forward to meaningful global action on climate change.”

According to Yvo de Boer, head of the UNFCCC, “greater ambition is required to meet the scale of the challenge. But I see these pledges as clear signals of willingness to move negotiations towards a successful conclusion.”

South Africa announced its pledge of  34% emission reduction below business as usual by 2020 and 42% by 2025 in early December.  This would enable South Africa’s emissions to peak between 2020 and 2025, stabilize for 10 years and then decline in absolute terms. The business as usual ‘baseline’ is as per the government’s Long Term Mitigation Scenarios.

Original article: Mail & Guardian. 3 February 2009. Read here…

‘Green Tax’ on imported vehicles to be implemented

South Africa’s National Treasury has confirmed that they intend to go ahead with the implementation of a carbon emission tax on imported vehicles from the 1st of March 2010.

The tax will be levied at the following rates:

• 8% on vehicles emitting greenhouse gasses of 240 grams per kilometre
• 10,7% on 280 grams per kilometre
• 12% on 300 grams per kilometre
• 0% for emissions of less than 120 grams per kilometre.

These taxes will be partly offset by a reduction in the import duties of vehicles.

There is big unhappiness from the National Association of Automobile Manufacturers of SA (NAAMSA) about the tax, partly because the fuel sold in South Africa does not comply with the new technological requirements necessary to avoid the green tax.Importers are aware of this shortcoming in South Africa’s fuel and subsequently do not fit the vehicles with the latest technology.

About R40bn will have to be invested in local refineries to make production of cleaner fuel possible. Once a final decision has been taken on the issue it will take about another five years before the fuel will be available across the market.

Original article: Fin24.com on 17 January 2010. Read here…

More renewable energy sources added to REFIT

Biomass, biogas and three varieties of solar power technology were on Friday added to the list of renewable energy sources that qualify for feed-in tariffs to be paid by Eskom.

The tariffs, known in South Africa as Refit, are set to top up earnings of independent power producers (IPPs). They are determined by the National Energy Regulator of SA (Nersa).

The latest tariffs are

• R3.13 a kilowatt-hour for concentrating solar power without storage;
• R3.94 for grid-connected solar photovoltaic systems producing more than 1 megawatt;
• R1.18 for solid biomass;
• 96c for biogas; and
• R2.31 for concentrating solar power with six hours of storage.

It estimated that the cost of generating electricity from coal would more than triple from 51.9c a kilowatt-hour this year to R1.66 in 2030, while the cost of power from nuclear sources would increase from 72c a kilowatt-hour to R1.76.

Meanwhile, the cheapest renewable generation technology in two decades would be landfill gas at 75c a kilowatt-hour, down from 90c currently, Nersa forecast. The next cheapest source would be biogas at nearly 87c a kilowatt-hour, against 93c currently.

Wind and biomass were projected to be the next cheapest in 2030 at about 89c a kilowatt-hour, down from R1.25 and R1.18, respectively.

Original article: Ingi Salgado. Business Report. 2 November 2009. Read more…

Renewable feed-in tariffs announced

In a much anticipated move, NERSA has approved feed-in tariffs for renewable energy that will encourage investment by private power producers.

“The approved REFIT guidelines will create an enabling environment for achieving the government’s 10,000 GWh renewable energy target by 2013 and sustaining growth beyond the target,” Thembani Bukula, regulator member for electricity regulation, said in a statement.

The following tariffs have been agreed for South Africa:

• R1.25 for each killowatt hour produced from wind,
• R0.94 for the same from hydro,
• R0.90 rand for electricity from landfill gas and
• R2.10 for power from concentrated solar.

These rates are significantly higher than the R.60 – R0.74 range proposed in a December ’08 consultation paper.

According to NERSA the tariff will be reviewed every year for the first five years and every three years after that. Tariffs will only apply to new projects.

Eskom rebates on solar water heating systems

Eskom has announced that they will now pay up to a 25% rebate on the installation of approved solar water heating systems directly to the consumer. This is a change from Eskom’s initial Solar Water Heating Programme, introduced at the beginning of 2008, and brings it into line with international practice.

This initiative forms part of a drive by government for renewable energy to contribute 10 000 gigawatt hours (GWh) of final energy consumption by 2013. Solar water heating could contribute up to 23% of this target.

Installing solar water heating systems can reduce your heating bill by as much as 70%.

According to Eskom the rebate system is not in anyway exclusive. The requirements of a supplier to sell systems that qualify for rebates are the following:

• Be able to offer a 5 year guarantee
• Submit documents, including public liability and company details
• Have system tested AND passed at the SABS for the following;
  • Safety
  • Mechanical
  • Thermal

For more information read here…

SA may have renewable feed-in tariff by March

The National Energy Regulator of South Africa (Nersa) hopes to finally approve the long-awaited renewable energy feed-in tariff (Refit), aimed at stimulating investment in the sector, on 9 March 2009.

Owing to the currently more expensive cost of generating electricity from renewable energy sources such as wind, sun and natural gas, feed-in tariffs are seen as a structure to stimulate large-scale investment in the renewable energy sector.

The Refit would not lower the cost of electricity for the customer, but would subsidise renewable energy generators. The tariff was expected to cover the cost of generation, plus a fair return for investors.

“The model calculates the subsidy amount as the difference between the feed-in tariff provided, and the avoided cost of power generation. This gives an indication of the additional costs to the consumer of the tariff programme,” indicated Nersa.

The model also allowed for the inclusion of carbon revenue through the Clean Development Mechanism.

The tariff schedule for 2008 to 2013 as setout in the consultation paper would be as follows:

wind power 65,48c/kWh in 2008, steadily decreasing by 2,45% a year to 57,84c/kWh in 2013;

hydro-power 73,76c/kWh in 2008, decreasing 0,57% a year to 71,69c/kWh in 2013;

landfill gas, 43,21c/kWh in 2008, decreasing 1,16% a year to 40,75c/kWh in 2013;

concentrating solar, 60,64c/kWh in 2008, lowered by 1% a year to 57,67c/kWh in 2013.

Eskom Distribution would be appointed the renewable energy purchasing agency, with the responsibility of the regulator limited to overall monitoring and review.

The NERSA proposal is not without its critics: WWF climate change programme manager Richard Worthington stated: “We have called on Nersa to reconsider their proposal and call for the tabling of an improved proposal, as soon as possible. We hope to see a stronger proposal that provides for an independent renewable energy purchasing agency, and a more cost responsive way of setting tariffs.”

Original article: Christy van der Merwe. Engineering News. 5 January 2009. Read more…

Earthlife Africa has come out to say that while they support the principle behind REFIT, they have some concerns about the actual policy. They set forth 10 reccomendation on how to improve the draft policy.

You can read more here.