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Eskom Air Quality Offset Programme:

Programme Report March 2017

Sustainability Division:

Environmental Management

Title: Eskom Air Quality Offset Programme: Progress Report March 2017

Document number: ENV17-R070

Total Pages: 18

Disclosure Classification: CONTROLLED DISCLOSURE

Compiled by Reviewed by Approved by

………………………… ………………………… …………………………...

Motshewa Matimolane

Senior Engineer: Water Centre of Excellence

Kristy Langerman

Middle Manager: Air Quality Centre of Excellence

Deidre Herbst

Eskom Environmental Manager

Date: …………………………

Date: …………………………

Date: ………………………

Eskom Air Quality Offset Programme: Progress Report March 2017

CONTROLLED DISCLOSURE

When downloaded from the EDS database, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the database.

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CONTENTS

Page

1. INTRODUCTION ...................................................................................................................................................... 3

2. PHASED APPROACH ............................................................................................................................................. 4

3. IMPLEMENTATION OF AIR QUALITY OFFSETS PLAN: NKANGALA DISTRICT MUNICIPALITY ................... 5

3.1 PREFEASIBILITY STUDY............................................................................................................................... 10 3.2 AIR QUALITY OFFSET PILOT STUDY .......................................................................................................... 12

4. IMPLEMENTATION OF AIR QUALITY OFFSET PLAN: GERT SIBANDE DISTRICT MUNICIPALITY ............... 7

5. IMPLEMENTATION OF AIR QUALITY OFFSET PLAN: LETHABO POWER STATION ...................................... 8

6. CHALLENGES ENCOUNTERED .......................................................................................................................... 20

7. CONCLUSION ........................................................................................................................................................ 20

Eskom Air Quality Offset Plans: Progress Report March 2017


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1. INTRODUCTION

The Atmospheric Emissions Licenses (AELs) for Eskom power stations in the Nkangala District

Municipality (Hendrina, Arnot, Komati, Kriel, Matla, Kendal and Duvha), Gert Sibande District

Municipality (Majuba, Tutuka, Camden and Grootvlei) and Fezile Dabi (Lethabo) require that each of the

power stations implement an Emissions Offset Programme to reduce Particulate Matter (PM) in the

ambient environment. The AELs’ requirements are similar to a condition in the National Air Quality

Officer’s decision (February 2015) on Eskom’s power stations’ applications for postponement of the

compliance timeframes with the National Environmental Management: Air Quality Act (Act No 39 of

2004) section 21 Minimum Emission Standards, which states that each power station is ‘to implement an

offset programme to reduce PM in the ambient/receiving environment. A definite offset implementation

plan is expected from Eskom by 31 March 2016.’

Air quality offsets address emission sources within vulnerable communities in the vicinity of Eskom’s

coal-fired power stations, targeting greater improvement in community experienced air quality than is

achievable by reducing emissions from power stations. Eskom’s Air Quality Offset Implementation Plans

cover the period from April 2016 to March 2025 (and have been updated in March 2017).

Eskom’s Air Quality Offset Implementation Plans for Nkangala District Municipality, Gert Sibande District

Municipality and Lethabo Power Station were submitted to the National Air Quality Officer and the

relevant Atmospheric Emission Licensing Authorities on 28 April 2016 (ENV16_R016, ENV16_R017 and

ENV16_R018) Updated plans were submitted on 31 March 2017 (ENV17_R073, ENV17_R074 and

ENV17_R075). The plans detail the proposed offset interventions per selected settlement. They also

detail the approach followed in selecting settlements; selecting, designing and implementing

interventions; and assessing the effectiveness of the interventions. The plans were approved by the

National Air Quality Officer in concurrence with the relevant Atmospheric Emission Licencing Authorities

on 16 September 2016.

As a condition of the approval, Eskom is required to “implement the air quality offsets according to the

approved plans” and to submit an annual progress report to the “National Air Quality Officer and the

relevant Atmospheric Emission Licensing Authorities for the duration of the implementation”.

The purpose of this report is to provide feedback on progress made in the implementation of the Air

Quality Offset Plans for 01 April 2016 to 31 March 2017.



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2. PHASED APPROACH

Air quality offsets is an emerging field, and interventions of the type and scale contemplated in this

document have not been implemented before. Accordingly, a phased approach is adopted to increase

probability of success and to ensure that learnings from early phases are incorporated into the large

scale roll-out. The phased approach entails the following:

- Phase 0: Pilot project. An intervention is tested on a small scale to discover practically what works.

- Phase 1: Lead implementation. The intervention is tested on an entire community to see how best to

scale up an initiative. The lead implementation is designed to benefit the specific local community,

minimize implementation risk, increase practical and scientific knowledge, and develop and refine

monitoring, reporting and verification processes.

- Phase 2: Full implementation. Once the intervention has been refined and the learnings of the lead

implementations incorporated, the intervention will be rolled out at several communities.

A typical offset implementation (lead or full) in a community will have three phases: baseline

establishment; implementation; and monitoring and verification. Table 1 provides a summary of progress

made in implementing the lead implementations in Eskom Air Quality Offset Plans in Nkangala District

Municipality, Gert Sibande District Municipality and for Lethabo Power Station. Details are outlined in

sections 3 to 5.

Table 1: Summary of progress made in implementing the lead implementations Air Quality Offset Plans

Phase (lead) Activities Nkangala Gert Sibande Lethabo

Plans High level plan √ √ √

Authority and budget approvals √ √ √

0: Pilot Pre-feasibility study √ √ ×

Pilot project √ n/a ×

1: Lead

implementation

Baseline for lead √ In progress In progress

Project Design Document Draft × ×

Implement lead × × ×

2 Monitoring and verification × × ×

3 Large-scale roll-out × × ×

Between April 2016 and March 2017, Eskom has made significant progress is setting itself up to

implement the air quality offsets programme. Key achievements include:



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- Obtaining Eskom EXCO and Board approvals for the ‘lead implementation’ strategy

- Establishment of Eskom working group and steering committee to coordinate and oversee the

implementation of the offsets programme

- Updating the Air Quality Offset Implementation Plans for each of the district municipalities to reflect

the changes in programme design and schedule

- Presentation to the parliamentary portfolio committee on Environmental Affairs on the offsets

programme

- Hosting a Multi-Stakeholder Reference Group meeting

- Testing on effects of liquid petroleum gas (LPG) heater on indoor air quality

3. IMPLEMENTATION OF AIR QUALITY OFFSETS PLAN: NKANGALA DISTRICT MUNICIPALITY

Eskom has completed a pre-feasibility on reducing household emissions from solid fuel burning, and a

pilot study (phase 0), and have developed a high level plan, obtained both DEA and budget approvals

and established a baseline (Phase 1 activities) for KwaZamokuhle.

Key activities undertaken in the year April 2016 to March 2017 included:

- Fire testing of new insulation ceiling solution (polyurethane spray foam with gypsum ceiling board)

- Installation of the new ceiling solution

- Measuring indoor air quality in houses in control and intervention households in KwaZamokuhle

- Analysis of the source apportionment results for KwaZamokuhle

- Ambient monitoring of air quality in KwaZamokuhle

- Hosting of local stakeholder reference group meetings in KwaZamokuhle

- Drafting of the Project Design Document for KwaZamokuhle

The ambient monitoring shows that air quality in KwaZamokuhle is extremely poor. There is non-

compliance with ambient PM10, PM2.5, SO2 (daily but not hourly) and ozone standards in

KwaZamokuhle (Table 1). Particulate matter appears to be mainly derived from surface sources, while

SO2 is from surface and ambient sources (Figure 1 and Figure 2). There is no observed morning peak of

SO2 to match the morning peak in PM10. This may be due to reactions that occur in the morning that

effectively convert SO2.



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Table 2: Number of exceedances of the ambient air quality limits in KwaZamokuhle in 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Number of

Exceedances Allowed No. of

Exceedances

PM2.5 (Daily)

0 2 2 8 16 27 26 24 15 3 0 0 123 4

PM10 (Daily)

0 1 3 9 5 25 26 26 21 6 0 0 122 4

NO2 (hourly)

0 0 0 0 0 0 0 0 0 0 0 0 0 88

O3 (8hr moving)

0 0 0 0 0 3 81 0 13 7 9 13 126 11

SO2 (Hourly)

0 0 0 2 0 18 6 3 1 0 0 0 30 88

SO2 (Daily)

0 0 0 0 0 9 6 0 0 0 0 0 15 4

Figure 1: Average diurnal variation of SO2 concentration in KwaZamokuhle in 2016



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Figure 2: Average diurnal variation of PM2.5 concentrations in KwZamokuhle in 2016

The project team is in the process of finalising the Project Design Document and scopes of work for the

various contract packages required for the lead implementations. The roll-out of interventions in

KwaZamokuhle was initially planned to start in April 2017. Unfortunately, Eskom is unable to meet this

date mainly due to the procurement process taking longer than anticipated. We now expect that the roll-

out should start around October 2017.

Section 6 provides a summary of key findings or learnings from activities (mostly undertaken in

KwaZamokuhle) that have been completed to date.

4. IMPLEMENTATION OF AIR QUALITY OFFSET PLAN: GERT SIBANDE DISTRICT MUNICIPALITY

The prefeasibility and pilot studies (phase 0) conducted for KwaZamokuhle is applicable to the selected

communities in Gert Sibande District Municipality. Ezamokuhle is the lead implementation site for power

stations in Gert Sibande District Municipality. Eskom has developed a high level plan for Gert Sibande

and has obtained both DEA and budget approvals for the implementation of the plan.

In July 2016, Eskom established an ambient air quality monitoring station centrally in Ezamokuhle, at

Hlelimfundo High School, to establish the baseline air quality in the area. The monitoring station is

equipped to continuously monitor sulphur dioxide, oxides of nitrogen, ozone, PM10 and PM2.5 and

meteorology. There is non-compliance with ambient PM10 and PM2.5 standards in Ezamokuhle, but the

air quality is not as bad as in KwaZamokuhle.



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Table 3: Number of exceedances of the ambient air quality limits in Ezamokuhle in 2016

Eskom’s Research, Training and Development (RT&D) Department is currently establishing an upwind

air quality monitoring in Ezamokuhle to measure the air quality away from the influence of domestic

burning. The results from the baseline assessment will inform the design of the offset interventions. The

roll-out of intervention in Ezamokuhle is planned to start in January 2018.

5. IMPLEMENTATION OF AIR QUALITY OFFSET PLAN: LETHABO POWER STATION

The lead implementation for Lethabo Power Station will be conducted in Sharpeville. In order to scope

the feasibility as well as design a successful offset project, a preliminary baseline assessment of the air

pollution and its drivers has been commissioned in Sharpeville. The objectives of the baseline

assessment are to:

- Assess the extent to which household air pollution exceeds ambient standards

- Identify key air pollution drivers in Sharpeville

- Understand the current energy usage patterns in Sharpeville

- Quantify the scale of an offset intervention project

The following activities will be undertaken as part of this assessment

- Rapid in situ assessment. This activity has been already been completed. See Table 4 for a

summary of the main findings

- Household air pollution assessment

- General household survey



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- Detailed household energy survey

- Community source survey

The results of this baseline assessment will inform the design of offset intervention in selected

Sharpeville, Refengkotso, Tshepiso and Boipatong.

Table 4: Summary of findings from the Rapid In-Insitu Assessment for Sharpeville.

Potential sources of pollution Comments

Waste There is clearly a waste problem in the area. We logged more than 20 waste accumulation and burning sites in Sharpeville only. The veld on the edge of the township, the road servitude, the power line servitude between Sharpeville and Tshepiso, a traffic circle or an open stand can all serve as a dumping place. It appear that there is regular municipal waste removal services. However, households do not have waste bins.

Dust on paved roads The paved roads have a lot of dust on them. There are two apparent sources of this dust. The first one is bare soil sidewalks which are heavily eroded. The other source of dust on roads is secondary dirt roads that join the tarred road.

Unpaved roads Most secondary roads are unpaved. Since we are in the rainy season it was not particularly dusty although this might be different in the dry season.

Tyre burning We found one active case of tyre burning on a commercial stand and some evidence of historical tyre burning. Potential reasons typically include extraction of scrap metal, disposing of waste tyres and (in winter) burning tyres to heat oneself.

Informal and formal traders We observed a food outlet that was possibly using coal or wood to prepare food (meat) as a clear plume of smoke could be seen coming out of the chimney from the food outlet. One particularly interesting case was a lady frying chicken feet less than 10 metres from the inlet of the DEA air quality monitoring station.

Monitoring station We visited the DEA AQMS. It is located on a school ground fairly close to a busy road and a spot used by an informal food trader. On the other sides there are quite large open (but grassed) areas.

Traffic There are a few arterial roads with fairly heavy traffic, but the secondary roads appear quiet.

Lethabo Power Station The power station is clearly visible on the horizon. One of the stacks was clearly smoking.

Arcelor Mittal The Arcelor Mittal works are located north-west of Sharpeville. Some smoke could be seen in that direction.

Domestic wood use We found one house with a large firewood pile outside. The inhabitant appears to use wood regularly.

Coal use We did not directly observe coal use, although many houses have chimneys. On the route, no coal delivery vehicles were observed and no coal yards were observed. From experience it is known that there is a coal yard near the north western tip of the dam.



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Figure 10: Waste management challenges in Sharpeville captured during the rapid in-situ assessment

6. KEY LEARNINGS FROM THE AIR QUALITY OFFSETS PROGRAMME SO FAR

6.1 PRE-FEASIBILITY STUDY

Eskom’s exploration of air quality offsets started with a pre-feasibility study conducted by EScience

Associates and the Nova Institute in 2012 and 2013. The objective of this study was to determine the

most feasible interventions to offset tall stack emissions from Eskom’s power stations by reducing

household emissions. Household interventions were selected based on the numerous scientific studies

that show that in South Africa the main cause of harmful health effects due to poor air quality is the

domestic burning of solid fuels.

An exhaustive list of household interventions was brainstormed, and kick-out criteria were then applied

to reduce the list for detailed evaluation. The shortened list of interventions was then evaluated

according to the following weighted criteria:

- Reduced human exposure to ambient PM10

- Reduced human exposure to ambient SO2

- Implementation cost attractiveness of intervention

- Success probability of intervention

- Government and Eskom Board acceptance of intervention

- Sustainability of intervention

- Household acceptance of intervention

- Indirect impact of implementation (long and short term)



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PM

10

SO2

Co

st

Succ

ess

Stak

eho

lder

Ho

use

ho

ld

Ind

irec

t

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

1

PM10

SO2

Cost

Success

Stakeholder

Household

Indirect

Figure 3: Weighting of the criteria used to evaluate the proposed offset interventions

Households are considered to be the most important stakeholder, and their acceptance was identified as

the most important criterion that would determine the success of the offset projects, followed by

acceptance by licencing authorities and the Eskom Board.

The interventions recommended for further study, based on applying the weighted criteria were:

- Retrofit full suite of thermal shell insulation (ceilings and three walls), draft proofing and Trombe wall

on all existing subsidy houses [Full retrofit]

- Install ceilings in all formal houses [Ceilings]

- Optimise house size, shell insulation, ventilation, orientation and solar heat absorption for new

subsidy houses and social housing [EE RDP]

- Replace coal / wood stove with multi-purpose, high quality, low emission stove [New stove]

- Electricity subsidy

- Gas subsidy with equipment [LPG subsidy & heater]



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SWH

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coo

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elec

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1

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cook device

electricitysubsidyclean heat

BnM

stove repair

new stove

LPG heater &subsidywaste manage

electrify

Figure 4: Result of applying the evaluation criteria. (Relative weighing on y-axis)

6.2 AIR QUALITY OFFSET PILOT STUDY

Following on from the pre-feasibility study, the next step in Eskom’s air quality offsets journey was an air

quality offsets pilot project, which was conducted in KwaZamokuhle (3 km from Hendrina town,

Mpumalanga) from mid-2014 to end 2015. The project team was comprised of experts from the North-

West University, the Nova Institute, the Council for Scientific and Industrial Research, EScience

Associates and Prime Africa Consulting.

The most promising interventions identified in the pre-feasibility study were implemented at 120 formal

houses: ceilings were installed at 60 of the houses, and the remaining 60 houses were fitted with a

ceiling, insulation on three walls, and the north-facing wall was painted black and a Trombe wall was

constructed to trap and store additional energy from the sun. Each of these houses was then either given

an electricity subsidy for the winter months, or their coal stoves were swopped for a low emission stove,

or their coal stoves were swopped for an LPG heater, stove and gas cylinder.



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Figure 5: Photos of the installation process, completed thermal installations and stove replacements

The pilot consisted of discrete activities. Each activity yielded learnings. A selection of learnings per

activity is reflected here:



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6.2.1 Learnings relating to performance of the interventions

In short, LPG stove and heater with a retrofit effectively eliminate coal use. Full retrofits performed better

than basic retrofits in the pilot study, but there is still uncertainty because of the small sample and high

variability of measurements. Low emission stoves may be an option in areas where solid fuels are free,

especially if they are as effective in real life as in the laboratory test. Electricity subsidies did not work.

Figure 6: Winter indoor temperatures raised by insulation type



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Figure 7: Effect of energy carrier type on indoor temperature

As participation is voluntary, it is important that any intervention is well communicated in order for

households to make an informed decision whether to participate. Well over 80% of households agreed to

participate in the LPG intervention set with full retrofit, as well as in the low emission coal stove plus full

retrofit option. The basic retrofit plus LPG stove and heater combination had a 66% participation rate.

Table 4: Participation rate in the different interventions in the offsets pilot project

Generally, households did not want to switch back to their old coal stoves after one winter of use.

Households were given an option to swop back to their old polluting stoves, or keep their new LPG or

low emission stoves. More than 90% decided to rather keep using the new cleaner technology.



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Table 5: Permanent uptake of the different offset interventions in the offsets pilot study

6.3 LEARNINGS FROM HOUSEHOLD SURVEYS

Household surveys were conducted broadly in KwaZamokuhle, in order to understand socio-economic

conditions generally (and not just in intervention participating households).

Poverty is a critical driver for ambient and indoor air pollution in KwaZamokuhle. The surveys confirm

that KwaZamokuhle is home to many low income households, with most people living below the food

poverty line. In the face of energy poverty, low-income households use dirty energy carriers in order to

fulfil their need for space heating. Only 1 in 3 people has any kind of employment (and only 1 in 5 has

full-time employment).

6.4 LEARNINGS FROM PILOT ROLL-OUT PLANNING AND IMPLEMENTATION

A lot of interaction and consultation with the local community is essential. The interaction should take the

form of both a structured local forum and an ongoing local presence that can deal with individual

concerns and requests as they arise.

Recruitment and training of local labour was successful. Around 48 temporary jobs were created for the

roll -out of the pilot project.



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Figure 8: Member of the newly appointed team being trained on the installation of insulation at the storage facility near KwaZamokuhle.

Pre-existing roof leaks is a challenge and insulated ceilings decrease the amount of moisture than can

escape from the roof cavity (Figure 9). As a result, the insulated ceiling boards were deemed to be not

adequate, and a polyeurethane foam with gypsum ceiling was fire tested, and then replaced as the

preferred roof insulation method. It was also decided that the Trombe wall which was installed on the

north-facing wall is unsightly, and will not be installed in more houses.

Figure 9: Brown marks on the ceiling as a result of roof leaks

6.5 LEARNINGS FROM AIR QUALITY MONITORING

KwaZamokuhle often has little wind, implying that smoke from coal stoves remain trapped in community

air space below the inversion layer, especially during winter. This exacerbates the health risk from

household coal use to the local community.



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Figure 10: Eskom's ambient air quality monitoring station in KwaZamokuhle

Air quality in KwaZamokuhle is poor and the poor air quality is associated with household coal burning –

morning and evening concentration peaks are associated with domestic cooking and space heating with

solid fuels. Both ambient PM10 and PM2.5 concentrations are high, and PM2.5 (which has a more

negative health impact) make up a significant part of the concentration. From end May to middle of

August (the cold season), the air quality is worse. Ambient standards are exceeded on most winter days,

as well as to a lesser degree during warmer months. Ambient SO2 and O3 concentrations are also high.

Ambient NO2 concentrations did not exceed ambient standards.

Source apportionment results for the winter samples indicate that domestic coal combustion is an

important source in.in both the coarse and fine fraction (Figure 11). Dust sources are also important in

the coarse fraction (42.5 %). In the fine fraction emissions from automobiles and secondary sulphate

and nitrate contributed 13 % and 8.5 % of the aerosol loading respectively.



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52.3

0.8

6.2

2.53.2

6.6

10.9

17.5Domestic coal burning

Nitrates

Sulphates

Road dust

Road dust

Soil

Vehicle (with lead)

Unknown

Figure 11: Source apportionment of the fine particulate matter (PM2.5) in KwaZamokuhle in winter 2015

6.6 LEARNINGS FROM DISPERSION MODELLING

The dispersion modelling shows that there is considerable variation in pollution concentrations in

KwaZamokuhle, driven primarily by the variation in density of dwellings. The emissions inventory in its

current form is adequate for modelling potential changes in ambient concentration due to interventions if

rolled out at scale. The inclusion of observed meteorological data significantly improved model

performance for PM10 evening peaks by assimilating calm conditions.

6.7 LEARNINGS FROM MACROECONOMIC IMPACT ASSESSMENT AND SOCIAL COST BENEFIT ANALYSIS

Indicative results are that health impacts and costs relating to local air pollution will be greatly reduced by

the reduction in coal consumption through the interventions’ efficiency improvements and fuel

substitutions. The interventions will make a positive contribution to job creation and GDP. The

interventions will reduce greenhouse gas emissions.

The results show that the basic retrofit and LPG intervention has the highest benefits to cost ratio. The

benefits of some interventions were less than the costs over a 20 year timeframe, however the

assessment excludes the value of continued licensed operation by power stations. Furthermore, we can

expect all interventions to improve as more information of intervention performance becomes available.

It should be noted that from a pilot study of this size, no conclusive macro environment findings can be

expected – therefore results are indicative.



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6.8 LEARNINGS FROM OFFSET METHODOLOGY DEVELOPMENT

An overarching framework for accounting for the impact of air pollution has been developed. This Air

Pollution Impacts Protocol was successfully used to develop two methodologies and four supporting

calculation tools. The methodologies have been tested and are practically applicable.

7. CHALLENGES ENCOUNTERED

Eskom has experienced delays of around 6 months in implementation of the Air Quality Offset Plans for

power stations Nkangala, Gert Sibande and Fezile Dabi District Municipalities. The delays have been

mainly due to delays in obtaining budget approval from the Procurement Sub-committee of Eskom’s

Executive Committee (EXCOPS) and changes in the scope of the proposed interventions. The budget

approval for the Air Quality Offset Programme was finally granted on the 01 February 2017 paving the

way for the implementation team to move forward with the lead implementations in the three district

municipality.

The approval by EXCOPS was on condition that the scope of offset interventions be changed to reflect a

focus on the promotion of the electricity instead of LPG (as initially proposed). Electricity is the cleanest

source of domestic energy. Rather than providing an LPG stove, heater and cylinder in exchange for the

household’s coal stove, Eskom is now proposing to provide an electric stove and heater. The proposed

changes will have an impact on the planned schedule for the roll-out of the interventions especially in

Nkangala and Gert Sibande.

8. CONCLUSION

Despite the challenges encountered, Eskom has made good progress in the implementation of the air

quality plans in the Nkangala, Gert Sibande and Fezile Dabi District Municipalities. These include;

- Successful completion of the prefeasibility and pilot studies for KwaZamokuhle.

- Establishment of the baseline for KwaZamokhule, Ezamokuhle and Sharpeville.

Lessons from these studies will inform the design of intervention to be rolled out in all three district

municipalities. Updated Air Quality Offsets Implementation Plans will be submitted to DEA reflecting the

new proposed roll-out schedule and changes.

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