eswatini national energy efficiency strategy and …

DISCLAIMER This report is made possible by the support of the American People through the United States Agency for International

Development (USAID). The contents of this report are the sole responsibility of Deloitte Consulting LLP and its author, Jose Luis Bobes, and do not necessarily reflect the views of USAID or the United States Government. This report was prepared under Contract Number AID-674-C-17-00002.

ESWATINI NATIONAL ENERGY

EFFICIENCY STRATEGY AND ACTION

PLAN

FINAL DRAFT

March 21st, 2020

MORGANA WINGARD FOR USAID

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1 | USAID SAEP | ESWATINI NATIONAL ENERGY EFFICIENCY STRATEGY AND ACTION PLAN

ACRONYMS

Acronym Definition

AfD French Development Agency

ASHRAE American Association of Heating Refrigeration and Air Conditioning Engineers

CEM Certified Energy Manager

DSM Demand Side Management

EC Energy Conservation

EdM Electricidade de Moçambique

EE Energy Efficiency

EEC Eswatini Electricity Company (formerly Swaziland Electricity Company)

EECP Energy Efficiency and Conservation Policy

EIF Environmental Investment Fund of Namibia

EPC Energy Performance Contract

ESERA Eswatini Energy Regulatory Authority

EA Electricity Act of 2007

EC Energy Conservation

EMP Energy Master Plan

ESCO Energy Services Company

GHG Greenhouse Gas

HPS High-Pressure Sodium

NDC National Determined Contributions

KPI Key Performance Indicator

LEAP Long-range Energy Alternatives Planning System

LED Light-Emitting Diode

LPG Liquid Petroleum Gas

MoU Memorandum of Understanding

MEPS Minimum Energy Performance Standards

MWh Megawatt Hour

M&V Monitoring and Verification

MNRE Ministry of Natural Resources and Energy

USAID SAEP | ESWATINI NATIONAL ENERGY EFFICIENCY STRATEGY AND ACTION PLAN | 2

NDC Nationally Determined Contributions

NEESAP National Energy Efficiency Strategy and Action Plan

NEP National Energy Policy

NGO Non-governmental organization

PPA Power Purchase Agreement

RE Renewable Energy

REAESWA Renewable Energy Association of Eswatini

SACREEE SADC Centre for Renewable Energy and Energy Efficiency

SADC Southern African Development Community

SEA Sustainable Energy Agency

SME Small and Medium Enterprise

ToR Terms of Reference

ToU Time of Use Tariffs

UNESWE-CSER University of Eswatini Centre for Sustainable Energy Research

VSD Variable Speed Drive

WEC World Energy Council

WTO World Trade Organization


TABLE OF CONTENTS

ACRONYMS.................................................................................................................. 1

TABLE OF CONTENTS .............................................................................................. 3

EXECUTIVE SUMMARY ............................................................................................. 6

1. INTRODUCTION .................................................................................................. 9 1.1. Eswatini Energy Profile 9

1.2. Background of Energy efficiency in the electricity sector 10

2. ACTION PLAN .................................................................................................... 14 2.1 Approach 14

2.2 Methodology for Identifying Priority Actions 14

2.3 Baselines and Measurement Metrics 16

3. SHORT-TERM ACTIONS (2022) ...................................................................... 24 3.1 Sustainable Energy Agency 24

3.2 Recommended SEA option for eswatini 26

3.3 Minimum Energy Performance Standards Labeling 31

3.4 Financial and Fiscal Incentives 35

3.5 Time of Use Tariffs for Residential Customers 43

3.6 Training on EE technologies and Energy Auditing 44

4. MEDIUM-TERM ACTIONS (2028) .................................................................... 45 4.1 Public Sector Demonstration Projects 45

4.2 MEPS for Second Priority Appliances and Industrial Equipment 46

4.3 Agriculture Sector Time of Use Tariffs 46

4.4 ESCO Development for Municipal Public Lighting and Other Sectors 47

4.5 Adoption of Green Building Codes for Public Buildings, Private Offices, and the

Hospitality IndustrY 47

5. LONG-TERM ACTIONS (2034)......................................................................... 48

6. ONGOING ACTIVITIES .................................................................................... 48

7. POTENTIAL ENABLERS TO IMPLEMENTATION OF THE PROPOSED

ACTIONS .................................................................................................................... 50

8. MONITORING, EVALUATION, AND REPORTING ..................................... 51


9. APPENDIX A: SELECTION OF INSTITUTIONAL DESIGN FOR A SEA .. 53 1.1. options for Eswatini: 56

10. APPENDIX B: ACTIONS RESPONSIBILITY MATRIX .................................. 58

11. APPENDIX C: STAKEHOLDER MEETINGS KEY TAKEAWAYS ............... 61

12. APPENDIX D: LIST OF STAKEHOLDERS MEETINGS ................................ 63

13. APPENDIX E: ENERGY EFFICIENCY GLOSSARY........................................ 64

14. APPENDIX F: SUGGESTED CURRICULA FOR EE TRAINING .................. 66 Sustainable Energy Training for municipal administrators 66

Saving Energy Coloring book for kids 66

Certified Energy Auditor (ASHRAE) 66

Certified RETScreen® Expert 67

Certified Energy Manager (ASHRAE) 67

15. LIST OF PARTICIPANTS NEESAP VALIDATION WORKSHOP FEB 27,

2020 .............................................................................................................................. 68

16. REFERENCES ....................................................................................................... 70


LIST OF FIGURES Figure 1: Annual Electricity Consumption/Litre (kWh/Lt) Korean Refrigerators ........... 20

Figure 2: MEANING OF 400,000 MWH SAVED ................................................................ 20

Figure 3: Percentage of countries with an Energy Efficiency Agency Worldwide ........... 24

Figure 4: Percentage of countries with MEPS. Source: World Energy Council .............. 31

Figure 6: Financial vs Fiscal incentives, World Energy Council EE survey 2016 .............. 36

Figure 7: Most popular financial and fiscal incentives. Source WEC EE survey 2016...... 37

Figure 7: Lifetime cost per energy unit in R/kWh (2016) ................................................... 44

LIST OF TABLES Table 1: Eswatini at a glance .......................................................................................................................... 10

Table 4: Proposed Actions 2020-2034 ....................................................................................................... 22

Table 5: Types of SEA and their Advantages and Disadvantages ............................................... 26

Table 6: Analysis of best suited entity for a sea in Eswatini ........................................................... 29

Table 7: Potential impact of meps for refrigeration in eswatini (Fridge/Freezer) ............. 35

Table 8: Functions of a SEA and its institutional framework ........................................................ 53

Table 9: Functions of a SEA as administrator of ee programs ..................................................... 54

Table 10: Analysis of best suited entity for a sea in eswatini ......................................................... 57


EXECUTIVE SUMMARY

This National Energy Efficiency Strategy and Action Plan (NEESAP) is a direct follow-up to the

Energy Efficiency and Conservation Policy (EECP) released in January 2019. The development of the

NEESAP is highly prioritized by the EECP to guide the implementation of energy efficiency (EE) and

energy conservation (EC) measures in all energy demand sectors. In line with the National

Development Strategy, Eswatini aims to achieve universal electricity access by 2022. Further to, this

NEESAP proposes the goal of avoiding energy consumption by 400,000 MWh per year by 2034

through the outlined energy efficiency actions.

The importance of implementing energy-efficient policies and reducing the country's energy demand

is paramount to achieving its SDGs. Pursuing improvements in local energy supply, implementation

of EE policies and behaviours, as well as the other conservation measures proposed in this report

will play a critical role in contributing to industrial productivity, the global competitiveness of goods,

reduction of greenhouse gas emissions, and cross-cutting SDGs.

The actions are divided into four categories: 1) short-term to be implemented by 2022, 2) medium-

term to be implemented by 2028, 3) long-term to be implemented by 2034, and 4) on-going

activities to foster sustainability beginning in the second quarter of 2020. Each category requires

stakeholder buy-in through incentivized EE investments, energy auditing, product labelling, capacity

building, and integrated marketing communications campaigns. Indeed, the actions are designed to

create expertise and markets centred around EE for specific high-impact sectors such as

agribusiness, the government, commerce and industry, and residential electricity consumers. The

NEESAP, emphasizes actions which, when implemented, will produce results in the initial five-year

period and lay the foundation of a sustained EE program. The first-level measures taken in this

period will lead to second and third level interventions which require more time and may entail

significant financial investment but are expected to yield lasting positive impacts on the economy and

on cross-cutting issues, including gender. The identified tasks are measurable as they are not only

tied to existing baseline data but also to the Electricity Act (EA) of 2007, Swaziland Electricity

Company Act of 2007, and the Swaziland Energy Regulatory Authority Act (SERAA) of 2007.

This Action Plan focuses on electricity for three reasons: 1) Electricity generation and supply has

significant direct and pervasive impacts on Eswatini’s economy. 2) Access to electricity is essential

for raising people’s standards of living. 3) Electricity lends itself to measurement and control.

The short term recommendations for 2020 to 2022 focus on the implementation of the following

actions:

1. Explore a merger of two existing non-governmental institutions to establish an agency legally

and organizationally empowered to assume the role and functions of a Sustainable Energy

Agency. The two institutions are the Centre of Sustainable Energy Research (CSER) based at

the University of Eswatini, and the Renewable Energy Association of Swaziland (REASWA).

In their current form, neither of these bodies can quickly take on the role of a Sustainable

Energy Agency.

2. Establish MEPS for Lighting and Appliances, starting with refrigerators.

3. Design and implement financial and fiscal Incentives: e.g. Tie VAT levels to MEPS.

4. Attract Energy Efficiency financing facilities that work with existing commercial banks, like

SUNREF in South Africa, Namibia and Mauritius or similar facilities.

5. In consultation with ESERA and EEC, explore the feasibility of introducing Time of Use tariffs

for residential customers in order to reduce peak demand.

6. Conduct training of trainers on EE technologies and Energy Audits with the goal of creating a

body of certified energy auditors.

Assuming that MEPS for the main appliances: refrigerators, electric geysers and lighting were

already set up and enforced by 2022, the savings in the residential sector in year 2025 could be


already about 7% of the residential demand. This estimation is based on the experience in other

African countries that have implemented MEPS, mainly South Africa, but adjusted to the main

appliances used in Eswatini, which are fridges,

The savings in the industrial sector and agriculture sector (other than sugar factories) if MEPS

for electric motors would be fully implemented and enforced by 2022, could be around 6% by

year 2025. This estimation based on the assumption that around 60% of all industrial electricity

consumption is related to electric motors.

Therefore, savings from year 2025 if these short-term measures were adopted by year 2022

could be about 80,000 GWh / year

In the long term, the NEESAP estimates a reduction of 400,000 MWh by 2034 compared to the

low growth scenario estimated in the Energy Master Plan. The detailed calculations

demonstrating how we arrive at that target are explained in Section 2.3, Baselines and

Measurement Metrics.

1. Sustainable Energy Agency

An energy efficiency agency, here renamed Sustainable Energy Agency, is “a body with strong

technical skills, dedicated to implementing the national energy efficiency policies”. World-wide, such

agencies are increasingly recognised as essential to the success of energy efficiency policies.

Based on international experience, among the most important success factors for the Sustainable

Energy Agency (SEA) is its ability to attract grant funding for its programs. Therefore, essential

attributes of the agency are transparency and accountability of its structure and its governance

arrangements. It is also essential that the agency has good-calibre staff dedicated to the preparation

of proposals for grants and donor projects.

2. Minimum Energy Performance Standards (MEPS)

A labelling program, for minimum energy performance standards (MEPS) is a proven way to achieve

significant short- and long-term impact for relatively small investments.

MEPS are used by regulators or standards bodies to check that traded products meet specified

criteria of energy performance, quality, and durability. MEPS are an effective way of encouraging

manufacturers and distributors to develop and deliver quality energy-efficient products. Because of

growing regional trade in fridges, lighting products and appliances, it makes sense for countries in

Southern Africa to adopt regional standards, regulations, and policies for MEPS.

3. Design and Implement fiscal and financial Incentives

Financial incentives include subsidies for energy audits or investments and soft loans. Fiscal incentives

include tax reduction, tax credit or accelerated depreciation, as well as tax on inefficient equipment

(appliances and cars). Financial incentives can be defined as a fixed amount, or as a percentage of the

investment (with a ceiling), or as a sum proportional to the amount of energy saved. Even moderate

financial support (e.g. a subsidy or tax rebate) can trigger investment in energy efficiency, especially if

financial benefits can be shown. Often these investments are considered secondary to investments

in production - regardless of their cost-effectiveness. This NEESAP proposes to focus on simple

fiscal incentives like graded rates of VAT based on MEPS.


The detailed cost-benefit analysis of these measures is outside the scope of this report.

Nevertheless, the measures are often budget-neutral, collecting more from inefficient equipment and

reducing the cost of energy imports.

4. Time of Use Tariffs

Implementing a Time of Use residential tariff for high usage consumers who can move part of their

load to off-peak hours would result in energy and financial savings. High energy-intensive domestic

appliances include large refrigerators, air conditioning units, dishwashers, and pumps for swimming

pools, all of which have a degree of flexibility in time of use. Participation in the use of the ToU

should be optional but marketed as an opportunity to save money rather than a penalty. The initial

step would be to involve the utility and the regulator to investigate the technical feasibility of

implementing domestic Time of Use tariffs in the context of Eswatini.

5. Training on EE technologies and Audits

Building a local resource cadre that is knowledgeable on energy efficiency and equipped with skills to

carry out energy audits underpins the sustainability of the action plan results. The resource cadre

could be a combination of specialised private companies and staff in energy-intensive industries, like

sugar and cement factories. The first step will be to identify and train the trainers who will

disseminate the knowledge through short courses and workshops. It is expected that such a

program will drive a market for EE and create opportunities for the trained professionals to offer

energy audit services, and to support the adoption and certification of energy management norms

such as ISO 50001, including Measurement and Verification (M&V) protocols.


1. INTRODUCTION

1.1. ESWATINI ENERGY PROFILE

Eswatini is a middle-income country with a young and growing population of approximately 1.087

million people1 and a gross domestic product of $11.6 billion2. As of 2019, the population is

dominantly rural, with urban dwellers constituting only 24 percent of the total. The country imports

all its petroleum products and about 80 percent of its electrical energy requirements. This import

dependency risks energy security. It also limits the country’s ability to determine energy prices,

which have a significant bearing on economic growth and expansion.

In 2019 Eswatini used 1268 GWh of electricity. approximately 75 percent of which was imported

from ESKOM of South Africa’s and from the Southern Africa Power Pool. The remaining 25 percent

was produced locally from hydroelectric stations, from cogeneration in factories, and from solar PV

plants.

Rural households meet their energy needs mainly from fuelwood. At the same time, Eswatini’s

electricity access rate of greater than 70 percent is high by regional standards, and the country has

set the goal of universal electrification by 20223. This aspiration for universal access greatly

influenced the formulation of this NEESAP as the residential sector will represent the largest

electricity consumer by far, in the time horizon of the Electricity Master Plan 2034.

The NEESAP focuses on the electricity sector due to the potential high EE impact over a short time

frame and energy growth, especially among residential consumers. The projections are consistent

with the Government of Eswatini goal to reach universal electrification by the year 20224. When

Eswatini reaches universal electrification, the importance of focusing on EE in the electricity sector

will be increased. Higher EE in electricity could reduce electricity imports and also reduce the cost

of producing goods and services—a benefit to the economy and to the standard of living.

1 CIA World Factbook 2 ibid 3 Kingdom of Eswatini Energy Master Plan, 2034 (2018), 4 Kingdom of Eswatini Energy Master Plan, 2034 (2018),


1.2. BACKGROUND OF ENERGY EFFICIENCY IN THE ELECTRICITY SECTOR

In Eswatini, the system losses of the national utility, the EEC, are low, with transmission and

distribution losses at about 14 percent, and commercial losses at only two percent. In 2008 the EEC

began to install pre-paid meters for its customers5. This has resulted in a lowering of commercial

losses from 25 percent to two percent.

Nearly all of the internally-generated electricity is from hydropower and sugarcane-based co-

generation. In 2013-2014 hydropower stations supplied 302,500 MWh. The hydropower generation

is quite variable due to change in weather patterns, for instance in 2017 the hydropower station

supplied only 116,300 MWh. Cogeneration at the USL plant, contributed 44,900 MWh representing

5 EEC

TABLE 1: ESWATINI AT A GLANCE

Population 1.087 million (2018)

GDP $4.417 billion (2017 est.)

Major Industries Agriculture 6.5%

Major Industries Industry 45%

Major Industries Services 48.6%

Electrification - urban population 82.8% (2016)

Electrification - rural population 61.2% (2016)

Electricity – production 381 million kWh

Electricity – consumption 1.431 billion kWh

Electricity – imports 1.077 billion kWh

Electricity - from hydroelectric plants 20%

Electricity - from other renewable sources 41%

†= of total installed capacity Source: CIA World Factbook


24.9 percent of renewable and 3.7 percent of overall power generation. While the Government has

approved legislation to increase local generation of electricity, supportive regulatory frameworks are

still missing which are necessary in order to remove uncertainties and ambiguities. In particular, it is

necessary to devise light-touch regulatory framework for small generation plants.

According to the Eswatini Rapid Gap Analysis and Action Plan, national electricity access rose to 61

percent, with urban and rural households having 77 percent and 50 percent electricity access in

20136. Regionally, the distribution of electricity access varies with the Hhohho Region having the

highest electricity access at 66 percent, followed by the Manzini Region at 64 percent and Lubombo

at 63 percent, while the lowest was the Shiselweni Region at 40 percent. For lighting, 60 percent of

the citizens use electricity as a source of energy, while 30 percent use candles and 10 percent use

paraffin—the use of solar is negligible.

While agriculture contributes 10 percent of Eswatini's GDP, the sector accounts for 39 percent of

electricity production and is also one of the largest consumers categories. Agribusiness, including

sugar industry and family farms, accounted for 48 percent of energy consumption in 20147.

The Eswatini Energy Master Plan 2034 forecasts energy consumption to rise from 1,094,700 MWh in

20188 to 1,828,000 MWh in 2025. Likewise, energy demand is also expected to rise from 271 MW

to 323 MW over the same period9.

The Swaziland Energy Regulatory Authority Act sets out the regulatory framework for Demand-

Side Management by establishing time of use tariffs (ToU), mainly for industrial and irrigation

consumers. However, there are no specific incentives or penalties to support Energy Efficiency.

With neither incentives nor penalties, the potential of EE and energy conservation (EC) measures

remains untapped. For example, the current TOU tariff structure does not encourage residential

customers to reduce peak-hour usage as these end-users are locked into a fixed tariff. Household

electricity demand is among the highest of all customer categories and is projected to go even higher

with the projected rise of electricity access. In addition, some major, Agri-based industrial customers

find it difficult to benefit from the TOU tariff because of its inflexibility.

The potential for energy efficiency and energy conservation exists in all energy demand sectors and

can yield economic and societal benefits.

SADC Initiatives

When contemplating regional initiatives for potentially high impact EE, the Southern African

Development Community (SADC) is working towards establishment of minimum energy

performance standards (MEPS) labelling for lighting, appliances, and electrical motors—a practice

already adopted in South Africa. In 2018, the SADC Centre for Renewable Energy and Energy

Efficiency (SACREEE) coordinated an Action Plan (SADC REEESAP) setting regional energy efficiency

6 MNRE and CSO, Eswatini, 2013 7 EEC 8 Eswatini Electricity Company Annual Report 2017/2018 9 EEC, 2015 & SAPP, 2014


priorities. The SADC REEESAP aims to create an attainable EE policy framework and implemented

actions.

NEESAP Focus

While the EE issues Eswatini faces are similar to those found in other SADC countries, this NEESAP

identifies country-specific barriers to implementation, and the actions need to promote optimal

efficacy and sustainability. By applying EE best practices, the NEESAP will counteract:

• Lack of incentives and regulatory frameworks to maximize the opportunities for investment and

financing in energy efficiency;

• Weak EE regulatory framework including MEPS and mandatory energy auditing for large

consumers;

• Tariff Pricing issues, such as TOU for agricultural and industrial clients who have a limited ability

to shift loads;

• Limited EE capacity building programs;

• Absence of private-sector participation through Energy Service Companies (ESCOs) or

accredited EE engineers and

• Insufficient public awareness of importance and benefits of EE.

Improved EE is critical to responding to mitigating the impacts of climate change, to economic

development, and to achieving energy security in Eswatini. This NEESAP advances the national EE

and EC agenda by creating a platform for public and private stakeholder engagement. Through the

creation of the SEA, Eswatini will have the capacity to continuously improve the energy data and to

establish a monitoring and evaluation methodology by which to gauge the effect of policy

implementation and progress towards the goal of reducing usage by 400,000 MWh per year by 2034.

By setting realistic goals based on a conservative baseline of slow economic growth, working across

ministries, and actively raising public awareness, the new agency should see immediate success in EE

adaptation. To this end, each action is sector-specific, measurable against existing data, and designed

to generate sustainable change. For example, unlike other SADC countries, reaching agriculture

stakeholders in Eswatini is critical as 39 percent of final electricity production is consumed in the

agriculture sector10. Agribusiness is the primary private generator of electricity employing co-

generation from agricultural by-products.

Lack of public awareness of the cost-saving potential of EE poses a risk to the implementation of the

actions outlined in this report. The government launched several awareness campaigns with

billboards, posters, and using other traditional media outlets, but behavioural change remains

inconsequential. Thus, this NEESAP proposes an ongoing comprehensive sector-targeted integrated

marketing communications plan with educational components to foster capacity building and long-

term sustainability.

Table 2 summarises the focus of the NEESAP.

10 EEC


Table 2: Tasks, Issues, Strategies

Task Issue Strategy Goal

Policy & Regulatory

Lack of implantation

of existing policy

framework

particularly for EE

Creation of SEA

dedicated to driving

EE with a cross-

sectoral approach

Consistent and

accurate reporting

on EE targets

Green building

codes

Institutional

Frameworks

Suboptimal energy

consumption by

residential clients

Creation of SEA to

coordinate, in

consultation with

ESERA the

development and

implementation of

time-of-use tariffs

or the inclined tariff

block structure

Define energy use

baseline and track EE

improvements

Skills Development

Low participation of

industry

associations and

academia in EE

initiatives

Add EE education

into curricula at all

levels

Create an EE centre

of excellence with

certified technical

training

Societal change to EE

behaviour

Increased requests

for energy audits

from the private and

public sectors

Capacity Building

Limited number of

certified locally

based energy

auditors

No qualified ESCOs

in the country

Training centre for

energy auditors

who can produce

energy management

systems and

measurement and

verification reports

A publicly accessible

database of certified

locally based energy

auditors, ESCOs, and

EE engineers

Financing incentives

Financing

organizations have a

limited capacity to

assess EE projects

and capture existing

EE business

opportunities

Financial incentives

for investment in or

creation of locally

based ESCOs

EE financing facility

Increased number of

locally based ESCOs

Communications

Low public buy-in

and awareness of

existing EE policy

and cost savings

programs

A comprehensive

integrated

marketing

communication

campaign

Consumer education

via targeted multi-

media

communications

outreach


2. ACTION PLAN

2.1 APPROACH

Key stakeholders participated in the formulation of this Action Plan, as this is guarantee of successful

implementation. The MNRE, the lead ministry for all energy affairs, invited a wide cross-section of

stakeholders to consultative meetings on the NEESAP. The stakeholders included ESERA, the

Eswatini Tourism Authority (ETA), the EEC, the Government Departments, Eswatini Revenue

Authority, National Curriculum Centre, Eswatini Standards Authority, Renewable Energy

Association (REASWA), municipalities, educational institutions, agribusinesses, stakeholders from

various industries, and representatives from the building and construction industry players, tourism,

and banking sectors’ associations. Appendix D: LIST OF STAKEHOLDERS MEETINGS lists the

meetings held.

To achieve optimal results, the actions identified in this plan should be implemented through the

proposed Sustainable Energy Agency (SEA). The SEA’s ability to coordinate and manage inter-

ministerial programs should enhance synergies, avoid duplicated efforts, and ensure accurate

monitoring and evaluation. The plan implementation focuses on governmental framework, financial

incentives, stakeholder engagement, public awareness, and proven EE interventions.

The NEESAP is additionally informed by a review of EE programs especially in South Africa, which

leads the SADC region in advanced EE regulations, and in Morocco, a long-time front runner in RE

and EE programs11. A team composed of Africans, Europeans, and Americans, designed the proposed

actions pulling from best practices in the USA, Europe, and other middle-income countries in Africa,

Southeast Asia, and the Pacific that face or have faced similar challenges as Eswatini. Incorporating

themes and policies from the documentation provided by the Ministry of Natural Resources and

Energy (MNRE) and engagements with private and public stakeholders informed the drafting of this

NEESAP.

To address the issues identified by the government, the SADC REEESAP, and country-wide

stakeholders, we propose the high impact actions outlined in Table 3.

2.2 METHODOLOGY FOR IDENTIFYING PRIORITY ACTIONS

Through a collaborative and participatory method, the NEESAP identified high-impact EE actions.

The methodology includes reference baselines for each priority sector and the relevant monitoring

and evaluation guidelines. The primary source materials were stakeholder meetings and existing

government policy and planning documents, especially the statistical energy data from Eswatini's EMP

published in 2018. The methodology used to identify key actions such as building codes for the

public sector, tourism, agribusiness, and the associated policy suggestion are detailed herein.

Appendix C: Stakeholder Meetings key takeaways provides additional information gleaned from

meetings with stakeholders and turned into actions.

The selected high-impact actions support current policy measures, strategies, EE programs, and

action plans. Measurable targets and realistic timelines guide each of the proposed actions. This

11 Agence Marocaine pour l’Efficacité Energétique

http://www.amee.ma/index.php?lang=en


NEESAP assigns the highest priority to measures deemed likely to produce the most substantial EE

gains in each sector. Strategies and targets are further delineated into short-term action (achieved

within two years), medium-term actions (achieved within eight years), long-term actions (achieved

within fourteen years), and ongoing public awareness, financing mechanisms, and capacity building

activities. The analysis outlined herein is based on data provided by the Government of Eswatini,

field interviews, and international experience.

The short-term actions focus on low-cost high-impact measures. The medium-term actions are

centred on regulatory changes requiring more resources and time, but no significant new studies or

investments. Long-term actions include regulatory changes and planning that will require substantial

investments in resources and planning. Actions classified as long-term do not negate immediate

moves towards implementation. For example, the creation of energy efficient transport measures

may take ten years to achieve, but appropriate planning efforts

should begin as soon as possible. The proposed actions range from

targeting the population as a whole to sector-specific efforts.

Energy efficient programs must be systematically implemented in the

public sector to reduce operational costs, to lower greenhouse gas

emissions, and to set an example for the industrial and agricultural

sectors. Improving the management of general lighting, i.e., not

keeping streetlights on during the day, is a high-impact, easy to

implement, and measure short-term action. Further developing the

maintenance of public infrastructure and implementing incentives for

public sector entities to be energy efficient are additional short-term

initiatives that will promote sustainable and measured EE.

Private sector participation in public sector EE investments should

be assisted by ESCO regulation that permits realistic contract

durations for energy services and maintenance. For instance, the municipalities in Eswatini, like in

other countries in SAEP are not allowed to sign maintenance contracts longer than 3 years. This

limit in contract length discourages private sector ESCO investments in municipalities as most EE

investments, need a longer payback. The ESCO business model allows the private sector to recover

the initial cost of investment in EE measures by linking measurable savings to long term contract

payments. This mechanism is especially useful for municipalities that could save significant amount of

money and energy in public lighting, but lack the budget to make the upfront capital investment in

more efficient public lighting.

Each target in this NEESAP is calculated considering the baseline information provided in the Energy

Master Plan. It is vital for energy savings monitoring to directly correlate to solid data and therefore

able to be quantified monetarily. EE service delivery objectives should be based in solid baseline data

and solid measuring and verification methodologies.

While agriculture only accounts for 10 percent of Eswatini's GDP, the sector accounts for 39

percent of final electricity production and is one of the largest consumers of energy. Agribusiness,

including sugar industry and family farms, accounted for 48 percent of energy consumption in 201412.

The National Energy Policy of 2003 advocates for measures including the provision of information

for and use of EE equipment. Several short-term measures, such as the use of timers,

computerization, and high-efficiency energy pumps could reduce energy requirements for irrigation

12 EEC

The cross-sectional coordination needed to plan and implement the proposed actions would be a challenge without a coordinating entity.


and improve the competitiveness of agricultural products. Medium-term actions include ToU suited

to the needs of farmers and water tariff regulations based on resources consumed, not the current

plot size system. Long-term opportunities for EE and sustainable energy in the agriculture sector

include:

• Water pumping using solar and wind power technologies to pump potable and irrigation water

which could reduce demand from the electricity grid;

• Leveraging and optimizing the use of agricultural waste as a source of energy, i.e., biogas, co-

generation feedstock, and biofuels, as a way to reduce demand from EEC and energy imports;

• Accurate data recording, management, and power factor correction;

• Improving irrigation practices to eliminate water leaks and to promote the most efficient drip

irrigation methods such as drip irrigation and efficient centre pivots; and

• Upgrading to more energy-efficient equipment such as boilers, refrigerators, and compressors.

An ongoing multi-media campaign will make farmers aware of money-saving EE behaviours,

technology, and equipment, such as solar PV irrigation possibilities.

Building codes are national or local rules that govern the design and/or use of a building—building

codes may be voluntary or mandatory. A program promoting EE in buildings has yet to be instituted

in Eswatini. Moreover, traditional construction methods like mud bricks, which are highly energy-

efficient, are being abandoned for more modern materials with higher carbon footprints and less

insulative properties. Current regulations do not consider or promote the use of traditional

materials. In comparable African countries, like Morocco, buildings account for 25 percent of energy

usage and offer many potential opportunities for energy savings and self-generation13. Several

countries in the SADC region started addressing the building sector by adopting energy-efficient

building codes. In Namibia and South Africa, some of the green building councils are affiliated with

the World Green Building Council. Although compliance is voluntary, the councils are the driving

force in promoting EE buildings. Energy-efficient building codes are the most cost-effective tools for

reducing energy use in buildings on a long term-term basis. While in Eswatini, there is a body of

professional architects, municipalities regularly approve plans drawn by people not registered with

the governing body, which does not aid in the enforcement of existing building codes.

2.3 BASELINES AND MEASUREMENT METRICS

Using the low growth scenario of demand growth for Eswatini EMP 2034, and taking into account

the feedback from stakeholders, as well as international experience, the benchmarks against which

success will be measured are detailed in Table 3: Baselines and EE Targets 2014-2034

13 AMEE

http://www.amee.ma/index.php?option=com_content&view=article&id=111:batiment-fr&catid=61:batiment&Itemid=176&lang=en


Table 3: Baselines and EE Targets 2014-2034

The methodology to estimate energy demand in the EMP for the period of 2015–2034 employed the

Long-range Energy Alternatives Planning System (LEAP) software. LEAP is a tool to generate a

detailed accounting model to develop energy demand projections in a bottom-up fashion, by taking

into account energy consumers’ useful energy needs and their choice of technologies and appliances.

The model used for the assessment was initially developed in 2015 by the Ministry of Tourism and

Environmental Affairs with technical support from the Energy Research Centre of the University of

Cape Town, as part of an exercise to identify CO₂ emission mitigation options for Eswatini’s

Nationally Determined Contributions (NDC). The model was further reviewed and updated for the

purpose of assessing the overall energy needs used as a basis for the Energy Masterplan. Note the

updated version greatly simplified the original assessment done in 2015, specifically in regard to the

number of technology options assessed and the representation of end-use energy services. The tool

can be used to describe individual policy measures that can then be combined into alternative

scenarios. This approach allows policy makers to assess the impact on an individual policy as well as

the interactions that occur when multiple policies and measures are combined.

Building on this established method, an energy demand accounting model for Eswatini and three

demand projections were established. The increase in energy demand is driven mainly by economic

growth, population growth and the electrification rate. The model takes into account the energy

intensity of short- and long-term energy efficiency improvements. End-user prices were subjectively

overlooked, however they considered historical data on the consumption of coal, oil products,

electricity, and biomass. The intensity of energy consumption per unit of each sub-sector’s output

and the share of each energy source are projected on an econometric basis. Population dynamics are

also an important driver of energy trends and the assumptions. An increase in population increases

the number of households—a key driver of residential energy demand.

The scenarios are high growth and low growth. The reference scenario assumptions are:

• Annual GDP rate 1.8% to 3% from 2014 to 2020, and 3% from 2020 to 2034;

• 100% electrification rate by 2030; and

• Annual population growth: decrease from 1.2% to 0.8% 2034.

Sustainable Energy for All (SE4ALL) developed five principal EE goals for Eswatini:

Amount in

GWh

Subtotal:

2014

REFERENCE

FOR MASTER

PLAN

ACTUALS

2017

PROJECTIONS 2025

MASTER PLAN and

own estimations per

sector

PROJECTIONS

2034 MASTER

PLAN

NEESAP Target

2034

SUBTOTAL

NGWH:

TOTALS 1277.77 1289.99 1944.44 2639.67 398.76 (15%)

Sugar 361.11 (28%) 195.29 544.32 (26.1) 638.95 (24.2%) 95.84 (15%)

Other

Agriculture

250.00 (20%) 285.9 388.80 (17.7) 416.66 (15.7%) 41.66 (10%)

Industry 222.22 (17%) 301.3 330.48 (15.7%) 388.89 (14.7%) 38.89 (10%)

Commerce &

Government

111.11 (9%) 116.3 175.00 (7.5%) 166.67 (6.3%) 16.67 (10%)

Residential 333.33 (26%) 391.2 505.84 (33%) 1028.50 (39.1%) 205.7 (20%)


1. Attain 60,000 MWh energy saving per year by 2018;

2. Attain 180,000 MWh energy savings per year by 2025;

3. National energy efficiency policy and regulations developed by 2019;

4. 500,000 LEDs distributed to households by 2020; and

5. Design and adopt an energy efficiency appliance labelling and standards program14

However, some of the SE4ALL’s goals do not indicate a clear baseline or a relative target of MWh

related to changing scenarios of electricity demand. Therefore, it is difficult to assess the

effectiveness of the existing projects and to ascertain whether the goals are consistent with the

proposed interventions.

The goal established by SE4All for 2025 is 180,000 MWh. The SE4All target assumes that 60,000

MWh savings would have been achieved by year 2018, and by extrapolation, 100,000 MWh would be

achieved by year 2020. In the absence of an entity monitoring the results of all EE programs, it is

difficult to assess whether this number has been achieved, but this figure will be assumed

nonetheless. On the other hand, the estimations of SE4All point out that from 2020 to 2025, an

additional 80,000 MWh savings should be achieved.

Independent calculations estimate a similar target: Assuming that MEPS for the main appliances such

as refrigerators, electric geysers and lighting were already set up and enforced by 2022, the savings

in the residential sector in year 2025 could be roughly 7% of the residential demand. This estimation

is based on the experience in other African countries that have implemented MEPS, mainly South

Africa, but adjusted to the main appliances used in Eswatini, which are fridges/freezers.

The savings in the industrial sector and agriculture sector (other than sugar factories) if MEPS for

electric motors would be fully implemented and enforced by 2022 could be around 6% by year 2025.

This estimation is based on the premise that around 60% of all industrial electricity consumption is

related to electric motors.

Therefore, savings from year 2025, if these short-term measures were adopted, could be about

80,000 GWh/year.

This NEESAP estimates a reduction of 400,000 MWh by 2034 compared to the low growth scenario

estimated in the Energy Master Plan. Improvements in EE within the sugar industry alone over the

next fifteen years could easily provide a minimum of 15 percent savings compared against Business as

Usual. The estimate is based on the fact that most pumping stations do not have variable frequency

drive motors, which can save up to 60 percent of electricity15. Additionally, future improvements of

boiler and turbine efficiencies are anticipated

Another sector is agriculture. Currently, farmers do not have an incentive to optimize their water

usage as most pay a fixed quota based on plot size, not consumption. Technology, combined with

the right pricing signals and awareness initiatives, could increase the efficiency by a minimum of 30

14 Swaziland Action Agenda, SE4All, 2016 15 Experience of the consulting team with EE projects in pumping stations


percent. Under these assumptions, a 15 percent target is attainable. Concerning other

agribusinesses, there is a mixture of uses, but the overall awareness of EE technologies in all areas is

low, and therefore, a minimum of a10 percent savings compared to the estimated reference case

could be achieved through targeted communications outreach efforts and demonstration projects.

For other industries, commerce, and government, an estimated minimum of 10 percent is also

assumed as the awareness of existing technologies and the penetration of solar water heaters is

negligible. Interviews with industrial, commercial, and government stakeholders yielded an interest in

investing in EE technologies. However, once again, if the lack of awareness of EE technologies and

energy audits is corrected, a more significant savings than the proposed 10 percent in the reference

case estimate for 2034 may be achieved. In the region, South Africa and Namibia already

experienced drastic reductions in demand for industry and commerce due to the deployment of EE

technologies coupled with ground mounted and rooftop solar PV systems—the same actions could

be duplicated in Eswatini.

Improvements in the residential sector can provide the most substantial savings in absolute numbers

with an estimated minimum savings of 15 percent. Currently, residential clients are by most, not

aware of potential opportunities for energy efficiency, beyond lighting. As residential clients are

locked into a fixed tariff, they do not have any incentive to shift energy-intensive loads to off-peak

hours—creating additional optimization of the system. Residential customers have the most

flexibility to shift loads using appliances like washing machines at lower tariff times.

The penetration of solar water heaters and PV solar residential systems is very low, and EE product

labelling programs are not existent in Eswatini. A combination of labelling, together with the

introduction of inclining block tariffs or TOU tariffs for the residential sector could decrease

expected demand by more than the target of 15 percent.

In China, labelling programs introduced ten years ago produced more savings than generation

capacity of the Three Gorge Dam power station.16 In South Korea, introduction of a MEPS labelling

program for refrigerators increased the efficiency by 55 percent.17

16 Beyond Connections: Energy Access Redefined 17 Korean Energy Management Corporation

http://www.worldbank.org/energy/beyondconnections.


Figure 1: Annual Electricity Consumption/Litre (kWh/Lt) Korean Refrigerators

Accounting for all proposed actions, the 2034 target of an annual reduction of 400,000 MWh is

realistic and attainable. To further elucidate the meaning of these goals, it is essential to understand

the cost of an MWh avoided through EE is less than the cost of generating an MWh. While not

currently tracked, in Eswatini, the comparison between kWh avoided and kWh generated has been

calculated for other middle-income countries with similar profiles. For example, in Namibia, the

average cost of MWh avoided using energy efficiency measures, assuming the measures work for at

least five years, is about $0.27 MWh18, while generation costs range between $0.90-1.50. Beyond

value, energy efficiency has other advantages such as increasing energy security and reducing the

volatility of costs.

Figure 2: MEANING OF 400,000 MWH SAVED

18 Source: Experience of real case projects industrial EE in Namibia SUNREF AFD program


Investments in energy efficiency follow the law of diminishing returns; thus, the measurable high-impact

actions proposed within this NEESAP are divided into four priorities and time lines:

• Short-term actions (implemented by 2022) create high impact results with a low

investment threshold;

• Medium-term actions (implemented by 2028) are designed to increase local capacity in

understanding and managing energy efficiency and incentivize EE investments with

profitable returns;

• Long-term actions (implemented by 2034) will require higher investments and address

SDGs with activities across multiple sectors; and

• Ongoing activities (starting in Q1 2020) are focused on the coordination of the proposed

measures, financing mechanisms, and strategic integrated marketing communications

campaigns to educate the public and ensure a high return on the other EE actions

Table 4 summarises the proposed actions categorised as above.


TABLE 4: PROPOSED ACTIONS 2020-2034

ACTION TIMEFRAME

PROBLEM ACTION OUTCOME/GOAL

SHORT- TERM

No entity coordinating objectives across ministries and working with the private sector

Creating a Sustainable Energy Agency with a specific EE/RE mandate as a separate entity, or a department by merging two existing entities

Capture donor funds to commence medium- and long-term actions

Propose, enact and monitor MEPS

M&V of EE targets Successful interministerial cooperation and recognition of SEA as EE/RE leader

SHORT- TERM

No labelling on consumer electrical products and electric motors

MEPS in line with SADC guidelines for consumer products i.e. lighting, appliances and electric motors

80 per cent of all consumer electrical products carry MEPS label MEPS literacy campaign encourages consumers to purchase EE products

SHORT- TERM

Energy Efficient products are typically more expensive than lower quality products with higher inefficiencies

Create fiscal incentives by taxing less VAT or no VAT to EE products while taxing a higher percentage of VAT to inefficient products. This activity is linked to the availability of MEPS

Taxing more VAT to inefficient products and less to efficient products will benefit the economy by changing behaviour towards products that need less energy to operate and be revenue neutral or positive.

SHORT- TERM

No time-of-use tariff for residential clients

Creation of residential time-of-use tariffs or introduction of inclining block tariff

Better demand-side management of peak loads/behavioural change. Savings for the country by buying less electricity from Eskom at peak tariffs, which mostly is produced by expensive and more polluting generation technologies, like diesel peak plants.

MEDIUM-TERM No MEPS on high-end consumer and industrial products

Extension of MEPS labelling program

80 percent of extended products with MEPS and literacy campaign to include industry

MEDIUM-TERM

Current agricultural time-of-use tariff is highest when farms need to use more water and pricing is often based on hectares not on qm3 usage

Create specific time-of-use tariffs for agriculture clients in line with industry needs

Better demand-side management of agriculture customers

MEDIUM-TERM Lack of locally based ESCOs

Creation of ESCO regulations and financing

Regulation for third-party investment in ESCOs in public- and private-sector

MEDIUM-TERM Lack of locally based qualified and certified energy auditors

In-country qualification and certification program

Create EE employment and drive opportunities

MEDIUM-TERM Inadequate awareness of EE demonstration projects

Public sector demonstration projects exemplify applied best practices and cost savings

Public sector consumers reduce cost Energy auditors acquire hands on experience


MEDIUM-TERM Lack of efficient, mandatory, and enforceable building codes

Create mandatory green building codes

Improved energy management of buildings which will increase economic competitiveness through cost savings

LONG-TERM

Lack of EE initiatives in sectors requiring detailed and/or long-term planning as well as higher investments

MEPS for vehicles

Financial incentives for purchase of electric vehicles and RE battery charging that can be sold to the energy grid at peak points

Incentives for using public transport, walking, and riding bicycles

EE road network planning and repairs

EE transportation policy including long-term urban planning using smart grids and storage

LONG-TERM No MEPS for cook fuel (wood)

Implement MEPS for wood used as cooking fuel

Consumers will make better choices about what type of and where they buy wood

LONG-TERM Nascent LPG, NG market Convert users of wood to LPG for cooking

Decreases respiratory issues and the burden of finding wood for women and children

ONGOING

EE is not part of the curriculum of grade schools, technical colleges, or universities.

Creation of EE curriculum for all levels, pre-kindergarten through university or trade school

Early childhood EE edutainment will influence household behaviour and build life-long EE behaviour i.e. early childhood seat belt usage campaigns

ONGOING Lack of EE funding mechanism

Creation and adaptation of EE funding facility similar to SUNREF Namibia

Technical assistance and funding to help developers and Financial Institutions grow their EE business

ONGOING Public awareness of EE cost-savings and climatic impact is minimal

Cross-cutting integrated marketing communications campaign to affect EE literacy and behaviour

Public, government, and commercial industry acknowledgement of SEA’s ability to enforce EE regulations and to promote EE policies


3. SHORT-TERM ACTIONS (2022)

The NEESAP proposes concentrating efforts on the short-term high-impact actions as the results

could start to produce savings in a relatively short time frame, while having a lasting sustainable

impact for Eswatini.

3.1 SUSTAINABLE ENERGY AGENCY

According to the World Energy Council19 60 percent of countries (i.e. 58 countries) have a national

energy agency. Some measures, such as energy pricing or introduction of international standards may

be implemented without a specific energy efficiency institution. But most of the time the

implementation of energy efficiency programmes requires a dedicated technical body able to reach

scattered and multiple energy consumers.

Figure 3: Percentage of countries with an Energy Efficiency Agency Worldwide

An energy efficiency agency is defined here as “a body with strong technical skills, dedicated to

implementing the national energy efficiency policy” (ibid). Such agencies are usually separate from

ministries but may be part of a ministry. For instance, the South African National Energy

Development Institute (SANEDI) was established in 2011 under the National Energy Act, 2008 (Act

No. 34 of 2008). The Act provides for SANEDI to direct, monitor and conduct energy research and

development, promote energy research and technology innovation as well as undertake measures to

promote energy efficiency throughout the economy. The Executive Authority (EA) of SANEDI is the

DMRE (previously DoE).

These agencies are usually public institutions funded by the state budget, and in developing countries

they are often supported by overseas technical assistance funds. In an increasing number of

countries, part of the budget is based on a tax on energy (e.g. Thailand, Tunisia), whilst others are

expected to operate as a partially private body that has to earn income. In countries with a federal

19 World Energy Perspectives. Energy Efficiency Policies 2016, World Energy Council


or decentralised structure (e.g. Russia, China or India) energy efficiency agencies have been set up by

regional administrations. In addition, many other countries have set up local or regional agencies.

More than three quarters of the 58 surveyed countries have local or regional agencies. It is

estimated that there are now around 800 local or regional agencies at world level, 400 of which are

in Europe.

In Indonesia, the SEA is a business entity that engages in activities such as educating the local

community, facilitating EE/RE research and development, and energy training and education across

various sectors.20 Another example in the SADC region is the Namibian Centre for Renewable

Energy and Energy Efficiency (CREEE). CREEE explores ways to break the barriers associated with

wide adoption and use of RE and EE. Established as an NGO, CREEE is a partnership between

Namibia University of Science and Technology and the Namibia Energy Institute with a charter to:

• Build on work done by the Renewable Energy and Energy Efficiency Institute on RE

technologies and their use;

• Facilitate and conduct research into RE and EE;

• Develop materials and standards, reports and disseminate information and materials on RE

and EE; and

• Facilitate cooperation between ministries and key stakeholders responsible for RE and EE.

The primary objective of all these institutions is to provide technical expertise to

governments and consumers, which cannot always be found in existing institutions. As

the lack of quality of energy efficiency equipment and services is often seen as an obstacle to their

effective deployment, energy agencies can play an ongoing role in that field by certifying those which

have the required quality. Government ministries do not always have the required expertise to carry

out the activities of energy agencies.

Another important function for agencies is to act as a coordinator of all governmental initiatives in

the field of energy efficiency to avoid scattered and uncoordinated actions by different ministries. In

particular, such agencies have proved very useful in negotiating sectoral agreements with groups of

consumers, equipment producers or energy utilities to reach specific targets for efficiency

improvements. In countries that receive funding from international development assistance

programmes, such agencies can in addition act as the national representative with whom donors can

negotiate the implementation of financial packages for energy efficiency.

Sustainable Energy Agencies can be Non-Governmental Organizations (NGOs) structured as public-

private partnerships, public entities embedded within a ministry, or private entities that tender for

the services. APPENDIX A: selection of instItutional design for a SEA includes an analysis of the

functions of the ideal SEA and how they compare to the two existing entities that run some of the

functions of a SEA: UNESWE-CSER (University of Eswatini Centre of Sustainable Energy Research)

and REAESWA (Renewable Energy Association of Eswatini). During the stakeholder meetings and

the workshop on February 27th, 2020, the consensus was that given the small size of Eswatini,

20 Indonesian Clean Energy Development Project

https://pdf.usaid.gov/pdf_docs/PA00JNVG.pdf


empowering the SEA or merging the functions of the existing entities would be much more efficient

than creating a totally new SEA.

The advantages and disadvantages of different SEA structures have been analysed and summarized in

a publication in 2010 by the IEA21:

TABLE 5: TYPES OF SEA AND THEIR ADVANTAGES AND DISADVANTAGES

ORGANIZATION TYPE ADVANTAGES DISADVANTGES

Department / Unit within a government energy agency

Access to decision makers

Potential for international co-operation and donor funding

Influence on policy and legislation

Limitations on salary and staff

Difficulty in taking decisions

Must compete for attention of policy makers

Specialised governmental energy efficiency and clean energy agencies

Credibility with other public agencies

Ability to specialize and focus

Potential for international co-operation and donor funding

Limitations on salary and staff

Potential opposition from elsewhere within government

Independent clean energy corporation or NGO

Linkages to and credibility with private sector

Access to multiple public and private funding sources

Independence and autonomy

Difficult to enact and enforce policy

Lack of authority

Energy efficiency and clean energy public-private partnership

Independence and autonomy

Credibility with stakeholders and consumers

Cultural benefits of a purpose-driven organization

Only indirect access to public policy making

Must compete for resources, including staff and public funding

Lack of authority

3.2 RECOMMENDED SEA OPTION FOR ESWATINI

Although Eswatini does not have a SEA, there are two institutions that perform some of the

functions of a typical SEA: UNESWE-CSER (University of Eswatini Centre of Sustainable Energy

Research) and REAESWA (Renewable Energy Association of Eswatini).

The UNESWE-CSER is a semi-autonomous centre based in the University of Eswatini, focusing on

research, training and consultancy:

21 IEA Energy Efficiency Governance Handbook 2010


The Centre focuses on the following areas in terms of research and development, training and

consultancy services:

• Education, training, research and capacity development: provide energy education, train

energy artisans, conduct energy related research, organize workshops and specialized short

courses on energy for the policy makers, trade institutions and other energy stakeholders;

• Solar photovoltaic systems characterisation: conduct solar photovoltaic systems

characterisation;

• Training for accreditation: develop and provide training for certification programmes for the

installation of various energy consuming systems and installation of renewable energy

technologies such as solar PV, small wind turbine and biogas plants;

• Solar thermal: conduct research on solar water heaters, solar crop/food dryers, and solar

water purification systems;

• Bio-energy: conduct research on solid biomass, bio-liquid fuels and biogas;

• Wind energy: conduct improvements on wind data and identify suitable wind turbines for

Eswatini;

• Hydropower: carryout studies on appropriate hydroelectric generating systems;

• Sustainable energy strategies (Energy and the environment): conduct research on energy

and its effect on the local environment and contribution to climate change;

• Energy efficiency and conservation: gather information on and develop best practices on the

promotion of new energy efficient and conservation technologies, practices and energy

cost minimizations;

• Alternative energy sources: conduct research on possibilities of waste to energy and

geothermal power;

• Energy system analysis: carryout studies on energy supply/demand dynamics, data mining,

behavioural aspect of energy use, energy infrastructure analysis, geopolitical aspect of

energy use, and energy in transportation systems;

• Energy Audits: conduct measurement and verification for systems where energy audits are

carried out;

• Measurement and verification: provide services for measurement and verification of energy

systems;

• Computational modelling for energy: use computational modelling for various applications

including energy demand scenarios, climate change mitigation and adaptation scenarios,

diffusion of energy technologies, energy dynamics, etc.; and


• Testing protocols and methodologies: develop testing protocols and methodologies for

future fuels and energy systems.

The Renewable Energy Association of Eswatini (REASWA) was established in 1998 under an EU-

funded project in the Southern African Renewable Energy Information Network with the assistance

of the Eswatini MNRE. REASWA which holds NGO status, acts as a PPP entity and could become

the country’s SEA. It supports RE projects and EE initiatives such as the promotion of LED bulbs and

the use of solar water heaters. REASWA's funding is obtained through projects, with 30 percent

allocated for administration costs. Combining RE and EE efforts under the auspices of a single body is

an accepted practice. It facilitates the cross-sector adaptation of new technologies which encompass

RE and EE elements. For example, solar rooftop PV panels can be considered both, RE and EE as

they help to decrease demand. Many RE technologies may also be considered EE as they result in the

more efficient use of the fuel, i.e., co-generation. The increased use of energy storage over the next

fifteen years will make the RE/EE differentiation harder as systems as many electric vehicles (EVs) will

include batteries, thus controlling peak demand and increasing grid optimization.

REASWA objectives include:

• To implement government policy aimed at reducing energy dependence, through the

democratization of renewable energy (RE) and the promotion of energy efficiency (EE);

• To be a centre of excellence and innovation, unifying national actors in the field of RE and EE, and

playing a leadership role at international level; and

• To be an essential agency for EE and RE.22

It’s important to mention that given its current structure, the REAESWA has some gaps, particularly

the lack of:

• Sufficient full-time staff, that should be addressed with government and donor budget

support

• An institutional mandate to propose and enact MEPS, and recommend fiscal and financial

incentives associated with each MEPS

• Data gathering and analyses to set targets and M&V procedures to track progress versus

targets

• The mandate to represent Eswatini in regional and international EE organizations like

SACREEE and become the main implementing agent of regional EE initiatives.

Based on experience, the most important winning factor for a SEA is to be able to secure donor

grant funding. This means to have at least three people on a permanent basis to write proposals for

grants and donor projects and at least one seconded international expert in EE and grant proposal

writing.

22 AMEE


The next table compares the functions described for a SEA, and the current tasks performed by

each entity and its potential

TABLE 6: ANALYSIS OF BEST SUITED ENTITY FOR A SEA IN ESWATINI

SEA’s functions UNESWE-CSER REAESWA

General Administration

Manage overall budget for

portfolio of programs

Apparently UNESWE capacity

for budget management and

administration is better than

REAESWA as it would follow

similar procedures already in

place at the University

General administration capabilities

are self-reported and weak. “Lack of

attractive annual financial statements

subject to external audit to lure

potential funders or donors. Lack of

internal accounting guidelines and

human resource systems”

Program Development,

Planning and Budgeting

CSER reports the

development of several

programs including training in

EE and RE and MEPS, some of

the key actions proposed in

this NEESAP.

REASWA lists four projects, but

none in MEPS nor training.

It does not seem any program was

designed by REASWA

Program delivery and

implementation

CSER reports 11 programs

successfully implemented since

its creation two years ago

REASWA lists four programs

implemented, three of them for

residential sector

Program evaluation No experience listed No experience listed

In summary, the CSER has technical capacity, but relies on part-time contributions of university staff.

Its management capacity would be inadequate for the purposes of a SEA. In addition, being

embedded in university systems would compel the SEA to follow university procedures and

regulations, which would complicate the transformation of CSER to a semi-autonomous SEA.

REASWA has weak technical capacity, but is nominally self-standing, and receives non-financial

support from the Ministry. REASWA in its current form is demonstrably unsuited for the role of the

SEA.

With these considerations in mind, a realistic option is to explore ways of bringing together the two

institutions and combining their strengths and positive attributes. A possibility would be for the

REASWA to become a secretariat empowered with the functions of a SEA and to enter into a

formal working relationship with the CSER as the central technical resource. Details of this are best


worked out by the Ministry and the two bodies in order to produce a solution that is consistent

with public practice in Eswatini.


3.3 MINIMUM ENERGY PERFORMANCE STANDARDS LABELING

Minimum Energy Performance Standards (MEPS) are used by regulators to make sure products meet

specified criteria related to energy performance, quality of service, and longevity. They are

considered an effective way of encouraging manufacturers and distributors to develop and deliver

quality energy-efficient products. As lighting products and appliances are traded goods, and regional

energy markets become integrated, countries in Eastern and Southern Africa must synchronize and

adopt reciprocal standards, regulations, and policies such as collective or similar MEPS. When

business owners and households have reliable and easily accessible information about how much

energy a product may waste or save, they can then make rational decisions about buying EE

appliances or systems.

Almost all surveyed countries by the World Energy Council (53 countries) have implemented at

least one MEPS. Efficiency standards for new buildings are implemented in 85 percent of surveyed

countries (and planned in 13 percent): they are becoming the most common standards. After

buildings, MEPS on refrigerators lamps, electric motors and other appliances (washing machines and

AC) are still widely implemented (up to 80 percent of surveyed countries). MEPS on vehicles and

solar water heaters are less common, but MEPS on solar water heaters would be very relevant for

Eswatini.

Figure 4: Percentage of countries with MEPS. Source: World Energy Council

The enabling actions in Eswatini should extend beyond MEPS labelling and into the capacity and

certification of engineers capable of conducting regular energy audits. Residential consumers and

businesses do not have the required information to make logical purchases. Anecdotally, educated

consumers associate more expensive products with energy efficiency, but this is not always the case.

In addition to consumer education, South Africa developed fiscal incentives such as rebates to bridge

the price gap making energy efficient products more affordable. MEPS labelling is a practical approach

to promoting EE in Eswatini. There is the potential to save substantial amounts of energy per year

through this widely established high-impact action. For instance, according to the 2019 USAID

report Standards and Labelling Programs International Overview, the impact of 23 MEPS in China is

estimated to equate to a savings of at least 100 terawatt hours per year by year 2025, which is three

times the production of the Three Dam Gorge.


The recommended program will focus on traditional appliances and equipment, but it is important to

note off-grid home systems, and other off-grid solutions where the use of substandard equipment

often results in a higher total lifetime operational cost. As the current awareness level is

inconsequential, an educational campaign focused on MEPS label literacy and the long-term financial

savings will be simultaneously executed.

The introduction of a mandatory MEPS labelling program aims to bring about a market

transformation. The primary objectives are:

• To introduce higher efficiency electrical appliances and by so

doing reduce consumption at both a national and household

level;

• To eliminate inefficient electrical appliances;

• To increase public awareness of energy efficiency and allow

consumers to make informed choices when purchasing new

appliances; and

• To recognize electricity consumption of appliances are a major

component of the country’s total energy profile and savings

achieved from EE appliances can become meaningful with

benefits such as:

• Deferring or eliminating the need for new power plants;

• Reducing pollution and GHG emissions; and

• Increasing disposable income for households through

lower utility bills.

A detailed study to calculate the potential savings of implementing MEPS for lighting and the most

popular appliances would involve impact assessment of the current market, and this is beyond the

scope of this NEESAP. The impact assessment would seek to identify:

• The sectors which will be affected;

• The distributional effects, such as transfer of income or redistribution of opportunities;

• The sectors which will endure the costs and benefits for each option; and

• The unintended consequences and indirect costs that may arise with the implementation of a

mandatory MEPS labelling program.

To calculate the savings related to each appliance the study should:

• Agree on the exact types of appliance to be regulated by use and size e.g., defining what a large

refrigerator is;

• Gather detailed trade data of the units manufactured or imported into Eswatini and their energy

efficiency; and

The adoption of 23 MEPS from 2010 to 2014 in China is resulting in an estimated saving of 1517 TWh by year 2030. Savings by 2025 will be higher than the generation from the Three Gorges Dam (112 vs 100 TWh)


• Estimate level of penetration of each appliance in Eswatini—understanding that the types of

appliances used in households are dependent on income levels.

A cost benefit analysis should be performed including:

• Energy demand reduction;

• Peak load reduction;

• Environmental impact;

• Consumer impact;

• Manufacturer and employment impact; and

• Trade impact.

Of these, one of the most important criteria for setting an efficiency target for MEPS is the

consumer impact analysis. Generally, mandatory standards which impose a net financial penalty to

consumers are undesirable and will be politically untenable. Whereas, when MEPS can be

demonstrated to provide large cost savings, it provides a strong justification for the program.

Therefore, cost effectiveness analysis is ideally the primary element for MEPS targets. For example,

MEPS can be chosen to maximize net financial savings or to maximize energy savings while still

providing a net benefit. A variety of metrics are used to evaluate cost-effectiveness of appliance

efficiency standards. These include payback period, benefit-

cost ratio, life-cycle cost, and cost of conserved energy. Of

these measurements the life-cycle cost calculation is most

appropriate for capturing overall net financial impacts to

consumers. Life-cycle cost is calculated by:

In this equation, I is the initial investment (equipment price),

OC is the annual operating cost, l is the equipment lifetime

and d is the discount rate. The lifecycle cost includes the full

cost to the consumer of purchasing and operating an

appliance over its lifetime. Annual operating cost is the annual

energy use multiplied by the energy price. Typically, efficiency improvements reduce operating cost,

but increase the initial investment. The change in LCC is relative to the base case can therefore

either be positive or negative. If the operating cost decrease outweighs the initial investment and

increases the standard net savings to consumers it is determined to be cost-effective. If, the initial

investment increase outweighs the operating cost decrease and the increases the net cost to

consumers it is determined not to be cost-effective. The discount rate parameterizes the difference

in present value of initial investment, which is immediate and the operating cost, which is deferred.

MEPS are used by regulators to make sure that products meet specified criteria related to energy performance, quality of service, and durability.


HIGH LEVEL ESTIMATION OF THE IMPACT FOR A MEPS FOR REFRIGERATORS IN

ESWATINI

In the absence of a detailed study for Eswatini, which is beyond the scope of this document, parallel

conclusions can be drawn to similar programs23. The correct methodology is outlined above, but the

analysis below will rely on back-of-the envelop approximations to understand the benefits of setting

MEPS for refrigerators.

International experience in other African countries shows that refrigerators are marketed to all who

have access to electricity, and they are one of the first appliances that new homeowners or recently

employed individuals will purchase. This has been quite well documented in South Africa during the

implementation phase of MEPS for fridges and freezers.

Most consumers in the low-income levels prefer to buy a small chest freezer which has the ability to

operate as a refrigerator or freezer based on the users’ requirements – it has the functionality to be

switched between the two operating modes by the household. Chest freezers are also more

affordable and carry more volume than the upright fridge/freezer combinations. On the other end of

the scale, aspirational models have more functions, such as wine racks, water and ice dispensers and

the latest development is to feature a reflective (mirror) surface while some units even include a

screen. All of these models have higher efficiency levels compared to the entry level models;

however, it becomes evident that these extra features quickly add up to more than the cost of

higher quality rubber seals or a more efficient compressor.

23 Energy Performance and Labelling Requirements for Specific Electrical Appliances and Equipment, 2012


TABLE 7: POTENTIAL IMPACT OF MEPS FOR REFRIGERATION IN ESWATINI (FRIDGE/FREEZER)

INNEFICIENT

APPLIANCE

EFFICIENT APPLICANCE DIFFERENCE

RATING PRICE Rating Price Saving

kWh/year

Premium paid

F 3604 A+ 5305 400 KWH 1701

At a residential tariff of 1.75 E/kWh, this would be an extra cost for the household of 700 E

(400x1.75E) Assuming a life cycle of at least 10 years:

10 years saving = 7000 E at current tariff (assuming tariff do not increase), which clearly justifies the

extra cost of 1701 E. A saving of 5299 E.

Assuming the country may have 300,000 of these units. Replacement of the poor efficient units

would save the households about E 2,040 million.

As for the cost to the country, and assuming all those kWh were imported from South Africa:

400 kW x 300,000 x 10 years = 1,200,000 MWh at an average estimated cost of 2 E/kWh (MegaFlex

tariff average) = E 2,400 million, or about E 240 million per year.

This rough computation may have several flaws, which could be rectified with a more in-depth study,

but serves as a prime example to illustrate the magnitude of the savings. Considering that all

refrigerators are imported, there is no cost for Eswatini companies to move to a higher efficiency.

The cost would be limited to the adoption of MEPS, generating the labelling program and the cost of

the administration of the program, which in any case will be much lower than E 240 million per year.

A set of MEPSs focusing on high impact appliances could represent a reduction in residential

electricity demand of 10 percent for the end uses covered under MEPS labelling by the end of 2020

and 16 percent savings by 2034.

3.4 FINANCIAL AND FISCAL INCENTIVES

These are economic incentives aimed at encouraging investment in energy efficient equipment and

processes by reducing the investment cost, either directly (financial incentives) or indirectly (fiscal

incentives). Financial incentives include subsidies for energy audits or investments and soft loans.

Fiscal incentives include tax reduction, tax credit or accelerated depreciation, as well as tax on

inefficient equipment (appliances and cars). Economic incentives can be defined as a fixed amount

representing a percentage of the investment (with a ceiling), or as a sum proportional to the amount

of energy saved.

Even moderate financial support (e.g. a subsidy or tax rebate) can be the final trigger for an energy

efficiency investment being implemented as they tend to be of secondary importance in decision

making compared to investments in production - regardless of their cost-effectiveness. For instance,

in industry, the requirements for pay-back times of energy efficiency projects are usually between


one (1) and two (2) years and depend on the type of investment (shorter for pure energy efficiency

investments and longer for process investments). Despite typically very short pay-back times for

some industrial motors (e.g. Variable Speed Driver) and relatively short pay-back times of efficient

motors in comparison to their lifetimes, financial incentives still have an important role in the

implementation of improvements.

More than two thirds of surveyed countries by the World Energy Council have implemented some

kind of fiscal or financial measures. Financial incentives are dominant compared to fiscal measures in

all regions. African countries in particular have a strong preference for financial rather than fiscal

incentives. Fiscal incentives tend to be more complicated to administer, and experience in South

Africa shows that only the most sophisticated companies benefit from them, leaving out most small

and medium sized enterprises (SMEs).

Figure 5: Financial vs Fiscal incentives, World Energy Council EE survey 2016

Economic incentives have several well-known drawbacks:

• They often attract consumers who would have carried out the investments even without the

incentive, the so-called “free riders” (e.g. high-income households or energy intensive

industries).

• Consumers that are targets of the schemes (small to medium industries, and low-income

households) do not take advantage of them because they are unaware of their existence.

This demonstrates the challenges of informing a multitude of consumers adequately about

the existence of incentives. For instance, energy subsidies (electricity or fuel) provide more

benefit to higher social classes in emerging countries that have access to energy- in addition

energy subsidies can be counter intuitive (economically speaking) as they are implemented to

lower higher price while these kinds of incentives should be offered to encourage

consumers when prices are low.

• Subsidy schemes may have a negative impact on the market by leading to an increase in the

cost of equipment, if manufacturers or contractors raise their prices in anticipation of the

rebates that purchasers will be granted;

These drawbacks lead to regular adaptations of the schemes. Economic incentives are now better

targeted to limit the number of beneficiaries (e.g. low-income households, tenants). They are also

restricted to certain types of investments (from a selected list of equipment), with a long payback

time but high efficiency gains (e.g. renewables, co-generation), or to innovative technologies

(demonstrative or exemplary investments).


In areas where the cost effectiveness of energy efficient technologies is not too high, subsidies are

viewed as a temporary measure to mobilize consumers, to prepare for new regulations, or to

promote these technologies by creating a larger market than would otherwise exist, with the

objective of a cost reduction for the subsidized technologies. Once the critical mass has been

reached, economic incentives can be reduced and even stopped without slowing down the diffusion

dynamics.

However, the experience of several countries (e.g. Tunisia and Taiwan) with subsidies for solar

heaters shows that, if subsidies are discontinued prematurely, sales drop suddenly when the market

is not sufficiently mature. To limit these drawbacks, it is necessary to avoid changing the subsidy

schemes too often and in an inconsistent way. Subsidies should also be reduced progressively and

not stopped suddenly so that market actors can anticipate their phase-out.

In areas where the payback times are too high and not motivating investors (e.g. the retrofitting of

dwellings) financial incentives are necessary and cannot be removed before investments become cost

effective.

Financial and fiscal incentives are increasingly conditional upon quality label as a way of promoting

the use of high-quality equipment. In practical terms, this means that economic incentives are only

granted for equipment that has an approved quality label (e.g. in South Africa, rebates for high

performance electric motors). In the same way these incentives can be granted to encourage the use

of qualified installation contractors.

To be effective, financial and fiscal incentives need to be combined with public information and

awareness campaigns to stimulate public interest in energy efficient equipment. Where regulations

have been introduced, additional economic or fiscal incentives may be necessary to ensure that the

initial extra costs involved (at least during the early stages) do not give rise to increased costs for

consumers.

FINANCIAL INCENTIVES

Financial incentives fall into three broad categories: subsidies for audits, investment subsidies and soft

loans. According to the survey, among financial measures, subsidies are dominant, except in Africa

and Asia, and represent on average 50 percent of financial measures, followed by soft loans. Soft

loans are the preferred incentive in Africa.

Figure 6: Most popular financial and fiscal incentives. Source WEC EE survey 2016


Investment subsidies are popular in OECD countries where more than 80 percent of the surveyed

countries have subsidy schemes.

Investment subsidies exist to retrofit existing buildings, dwellings or industrial facilities, and thus

shorten the payback times. In some countries incentives to fulfil the energy building code are given

through encouragement systems, which support compliance with requirements. There are subsidies

that can only be obtained if certain energy efficiency requirements are fulfilled, and are based on

pure compliance with requirements in the codes or on measures stricter than the energy efficiency

requirements in these codes. In different regions of Austria there are subsidies combined with

energy efficiency requirements, which are stricter than the minimum requirements in the building

codes. This can be additional insulation, improved windows or installation of renewable energy

sources such as solar collectors, photo voltage or biomass ovens or boilers. In some Austrian

provinces this has led to nearly all buildings being constructed with an energy efficiency which is

better than the requirements in the codes, but as a minimum the requirements are fulfilled.

Subsidies are also used to lower the price of efficient equipment that is usually more expensive than

the market average price (e.g. CFL, efficient motors or boilers, solar water heaters), and are often

conditional on old inefficient equipment being replaced:

Electric motors in South Africa: Eskom launched an Energy Efficient Motors Programme in mid-2007 to

subsidize the replacement of old motors with highly efficient motors. Efficient motor suppliers registered with

Eskom are directly paid by the subsidy, resulting in an immediate discount for the consumer. The purchaser

must trade in their old motor, along with all components, for scrapping.

Subsidies may also be given to equipment producers to encourage the development and marketing of energy

efficient equipment, to improve the quality and the cost of production.

Subsidies for Energy Audits: Spreading energy audits is a way of providing well targeted

information to consumers to help them undertake investments. Thus, subsidies for energy audits aim

at making them more attractive to consumers, if they are not mandatory.

The subsidy is either a fixed amount or a percentage of the audit cost (e.g. 30 percent). Audit

subsidies are more frequently distributed in industry and public/commercial buildings than in

residential buildings.

SOFT LOANS AND EE FINANCE FACILITIES

Easy access to credit with appropriate conditions for financing the initial investment is a fundamental

measure to overcome the initial cost barrier. This is achieved by proposing to consumers who invest

in energy efficient technologies and equipment soft loans which are loans at subsidized interest rates,

i.e. lower than the market rate. Soft loans have the advantage of being easily implemented by banking

institutions. Specific credit lines with the help of donors and the establishment of credit guarantee

schemes by the State will encourage banks to be more active by providing soft loans to finance

energy efficiency investments. Typically, soft loan programmes target SMEs.

Financing has been identified during the field missions as a major barrier to the successful

implementation of Energy Efficiency measures. Given the importance of this subject, but also the

wide range of solutions adopted by different stakeholders in the Southern Africa region, the most

common sources of financing for Energy Efficiency will be reviewed below, followed by a conclusion

of recommended approaches for Eswatini.

The primary financing mechanisms utilized by multilateral and bilateral financing sources for EE are:


• Grants: Used for projects otherwise difficult to finance by commercial banks.

• Concessional loans: Subsidize interest rates to make EE more appealing.

• Credit lines: Market or subsidized loans that usually include technical assistance for project

identification and preparation.

• Credit or risk guarantees: Quite often ESCO companies do not have the balance sheet to be

able to offer financing. Risk guarantees help to finance projects and companies that

otherwise would not be able to obtain financing due to their weak balance sheet.

• Equity financing: Equity financing is often needed when the financing institutions do not have

the expertise or appetite to test new EE markets, yet the projects are profitable.

The largest amount for financing for EE is in the form of concessional loans. The financing sources

often provide the concessional loans in collaboration with a commercial financial institution and

leverage the available funds by requiring matching contributions.

Market-based loans are used when availability of funds (liquidity) is an issue but there is no need to

subsidize the project with concessional financing. In such cases the financing overcomes the liquidity

barrier. An example of this mechanism is the AfD SUNREF program in Namibia, Mauritius and South

Africa among other countries.

Risk guarantees are an effective mechanism when the commercial financing sources have a

perception of high risk with respect to the climate friendly technology. By providing a risk guarantee,

the financing source reduces the risk perception and facilitates commercial financing. One of the best

examples of this mechanism is the IFC’s CEEF Programme in Eastern Europe. After the success of

CEEF, IFC has implemented similar programs in China, Vietnam and the Philippines.

When the basic technology to be deployed is very expensive, grants may be used. However,

generally the amount of grant funding available from financing sources is small and may be limited to

small projects.

Equity financing is also not very common from multilateral or bilateral sources but there are a few

sources of such financing. The GEEREF fund provided equity financing as does the Bulgarian Energy

Efficiency Fund.

PPPS IN ENERGY EFFICIENCY FINANCING

The IEA study documented 3 types of PPPs for energy efficiency (EE) financing that are relevant for

other types of climate change mitigation projects:

• Dedicated credit lines: Credit lines established by a public entity (such as a government

agency and/or donor organization) to enable financing of EE projects by a private-sector

organization (bank or financial institution). Generally, the private-sector bank or financial

institution provides additional financing (co-financing) for the EE projects.

• Risk-sharing facilities: Partial risk or partial credit guarantee programs established by a

public entity (such as a government agency and/or donor organization) to reduce the

risk of EE project financing to the private sector (by sharing the risk through a guarantee

mechanism), thereby enabling increased private-sector lending to EE projects.


• Energy Saving Performance Contracts (ESPCs): Public-sector initiatives, in the form

of legislation or regulation, established by one or more government agencies to facilitate

the implementation by ESCOs of energy performance-based contracts for improving EE

in the public sector using private-sector financing.

EXAMPLES OF ENERGY EFFICIENCY CREDIT LINES IN SOUTHERN AFRICA:

SOUTH AFRICA GREEN ENERGY EFFICIENCY FUND (2011-2013)

The German Development Bank (KfW) partnered with South Africa’s Industrial Development

Corporation (IDC) to establish a ZAR 500 million (EUR 45 million at the exchange rate of 2011)

facility called the Green Energy Efficiency Fund (GEEF) for financing energy efficiency and self-use

renewable energy projects. The Fund was intended to provide loans at a preferential interest rate

and long repayment window to energy users in South Africa. The aim of GEEF was to improve

energy efficiency, support renewable energies and extend the range of financial products that IDC

offers to EE/RE products. The target groups were energy users, especially small and medium

enterprises, as well as private and public households in South Africa. The facility included a Technical

Assistance Facility for project identification, pipeline generation and project preparation using a KfW

grant.

KfW has become a leading environmental and climate finance institution which is continuously

expanding its activities on behalf of the German Government.

The financing mechanisms used by KfW include grants, development loans, promotional loans, and

credit lines. KfW is increasingly developing public-private partnerships, and engaging in project

financing, including both debt and equity. Both of these mechanisms are designed to leverage private

financing.

Illustrative programs and projects financed by KfW include;

• Energy efficiency programme for the SME sector in India

• Solar energy development bin Brazil

• Wind farm on the Red Sea in Egypt

• Efficient transport in China

• Forest conservation in Nicaragua

• Green Energy Efficiency Fund in South Africa (implemented by the South African IDC).

GEEF was a very successful green financing facility, in the sense that it triggered commercial

banks into the financing of EE, and provided capacity building to key IDC employees that moved

later to commercial banks and led new private sector EE finance facilities

AFD SUNREF (2014-DATE) NAMIBIA, MAURITIUS, SOUTH AFRICA

Sustainable development and climate change are one of the five sectorial priorities of the French

Development Agency (“AFD”), notably through the private sector strengthening the transition

towards a green economy. In articulation with local public policies, AFD, France’s bilateral

development finance institution, has put in place since 2007 a targeted support to develop innovative


green investments through environmental credit lines for local financial institutions. This support,

called SUNREF (Sustainable Use of Natural Resources and Energy Financing) includes both technical

assistance and credit lines (i.e. loans) to local financial institutions for them to finance small and

medium sized projects of public and private promoters. From 2007 to date, AFD has committed

nearly EUR 2 billion through 35 green credit line programmes with more than 40 financial

institutions to finance green projects in developing and emerging countries.

In 2015, AFD launched a feasibility study to assess the potential for such a scheme in Namibia. The

conclusions of this study highlighted the room and appetite for the SUNREF programme.

In June 2017, AFD formalized (i) a grant in favour of the EIF (Environmental Investment Fund of

Namibia) (the “Grant”) through the signing of a financing agreement (the “Grant Agreement”) and

(ii) several credit facilities (the “Credit Facilities”) with partner banks of the SUNREF Programme

(the “Partner Banks”), through the signing of credit facility agreements (the “Credit Facility

Agreements”). As a green credit line for businesses, SUNREF was designed to help local businesses

to seize opportunities in greening the Namibian economy. This innovative programme is part of a

broad initiative developed by AFD to mobilize public and private banks to finance investments with

customized financial terms in the private sector that provide greater use of green technologies and

sustainable energy. The aim of SUNREF Namibia is to facilitate access to affordable sustainable

energy, agriculture and tourism, to allow companies to acquire higher quality equipment, to make

cost savings, and to be more competitive through better energy management and improved

environmental performance.

SUNREF Namibia provides a specific and innovative financial offer and technical assistance:

1. A credit line provided to partner banks in Namibia, namely, FNB, Nedbank and Bank

Windhoek

2. Technical assistance for companies and banks: In large part due to the AFD’s financial

participation, the technical assistance is delivered free of charge. EIF is a key partner in the

implementation of the technical assistance programme as a major local actor in the

promotion of the sustainability sector in Namibia. Technical and financial assistance of the

bank is provided to identify lending opportunities in sustainable energy, sustainable

agriculture and sustainable tourism, and to analyse the bankability of the selected projects.

Technical assistance is also provided to project sponsors as they develop their projects, in

order to ensure the best technical solutions for the development of eligible, innovative, and

profitable green projects

3. Capacity building services to the Environmental Investment Fund (EIF) and partner banks to

enable the entities to further promote the development of a low carbon economy in

Namibia

The AfD works on behalf of the French government to finance development in accordance with

French overseas development assistance policies. The Primary Objectives of AfD Strategic

Orientation are:

• Provide a diversified range of services including advice, capacity building and financing

• Aim for AfD's financing commitments to contribute to at least 40 percent of each of its

three primary goals: promoting economic growth, fighting poverty and preserving “Global

Public Goods,” which includes means fighting climate change


• Dedicate at least 80 percent of all grant funding and 60 percent of France's development aid

contribution to AfD's budget to interventions in sub-Saharan Africa

• Implement a strategy for interventions in emerging countries based on managing Global

Public Goods of benefit to all humanity, i.e. fighting climate change and pandemics, and

preserving biodiversity.

AfD directs 50 percent of its financing commitments to non-sovereign entities, such as local

governments and authorities, businesses and non-governmental organizations.

AfD also operates the French Global Environment Facility, which has provided grants to a number of

climate change mitigation programs and projects and has partnered with the World Bank in the

Africa Assist programme to support CDM in sub-Saharan Africa.

FINANCIAL INCENTIVES RECOMMENDATIONS FOR ESWATINI:

Energy prices in Eswatini are high enough to make investment in EE quite profitable but not all

businesses, nor public sector may have access to financing. Therefore, the recommendations are the

set-up two kinds of actions:

• Support EE projects with a grant funded program for public sector EE investment that could

be used as demonstration projects. This would need a budget support mechanism that could

be funded directly or by establishment of an EE or environmental levy.

• Attract a DFI and commercial banks to set up in Eswatini a similar program as SUNREF

Namibia or the KfW GEFF facility, that includes technical assistance to identify and package

the EE projects as well as financing. This kind of solution does not involve any budget

support and is more sustainable in the long term.

Other possibilities would be to set up an EE rebate program as Eskom did in 2012-2013, but this

would involve strong budgetary support.

FISCAL INCENTIVES

The issue of purchasing EE equipment versus non-energy efficient equipment is often related to cost.

The consumer must understand the lifecycle of the product and cash on hand to buy the more

expensive in the moment, but cheaper in the long-term, product. As explained, the EE product will,

over time, generate a lower operational cost. Inefficient equipment is not only a burden for the

consumer, but also for the government, thereby requiring a greater budget for buying energy and

building energy infrastructure. These expenses could be curtailed if a majority of organizations and

residents purchased and used more energy efficient products. For this reason, some governments

impose either a higher tax on non-efficient equipment or offer lower taxes for more energy efficient

products. In Europe, it is commonplace for the VAT on vehicles to vary from zero to 33 percent

depending on their energy efficiency and environmental performance. Data show that even in

Mauritius and South Africa, countries with a relatively high awareness of EE, grant financing and fiscal

incentives are required to implement public demonstration projects and drive the creation of

consumer demand for EE and RE products and services.

In the case of incentives such as tax rebates as practiced in South Africa, small- to medium-sized

enterprises do not readily benefit as the costs related to investment in M&V of energy savings do not

justify the effort. The SEA will need to create a different rebate structure to incentivize EE behaviour

for this class of business—one designed to financially encourage their participation. The MNRE

identified target groups for fiscal incentives based on a gap analysis of the existing EE financing


mechanisms and requirements. Overseen by the SEA, the MNRE would require cooperation from

the Ministry of Finance to implement tax rebates and incentives, the Renewable Energy Association

of Swaziland, commercial and development banks, and industry-specific stakeholders.

Another form of fiscal incentive is to reduce the tax to be paid when purchasing energy efficient

equipment (VAT, import duties, or purchase for cars) or when investing to improve energy

efficiency in buildings (reduction in VAT rate on labour cost). In the US, tax incentives have been

given in recent years to increase the level of insulation and to encourage the constructer and

building owners to go further than the minimum requirements. These incentives have probably also

helped to increase compliance with the codes.

VAT reduction on labour costs to reduce the investment in building renovation is in use in several

European countries.

Accelerated depreciation is used mainly in industry and it is relevant for less than 7 percent of

surveyed countries. Fiscal measures also include tax reduction for the use of efficient cars (annual

registration tax). Reduction on the purchase tax and/or annual registration tax for cars has been

introduced in several European countries to promote the uptake of efficient cars: they are usually

linked to the CO2 emission of cars and therefore indirectly to their energy efficiency. The objective

is to offer consumers incentives to buy more efficient cars.

Tax on inefficient equipment (appliances and cars) can discourage and thus incentivize end-users to

purchase new efficient products. Road charges are also considered as a fiscal measure with an effect

on energy use although their primary goal is to reduce congestion and pollution. Several cities have

implemented such schemes.

A recommendation for Eswatini is that once MEPS are in place, to charge different levels of VAT,

charging more for inefficient equipment and much less for efficient products. Eventually the fiscal

incentive could be budget neutral, collecting more from inefficient equipment and saving the country

expensive energy imports. This initiative needs a detailed impact study beyond the scope of the

current NEESAP, but it is critical to the successful implementation of such a measure. Different

levels of VAT are very common across the globe to encourage the market for efficient appliances as

well as industrial products.

3.5 TIME OF USE TARIFFS FOR RESIDENTIAL CUSTOMERS

Time of Use tariffs (ToU) are an instrument integral to reducing the electrical peak demand,

optimizing the system, and overall demand-side management. Energy efficiency measures and

programs frequently reduce peak demand and, consequently, the need for investment in new

generation, transmission, and distribution systems. Or in the case of imported energy, the higher

tariffs associated to buying peak time energy. A measure that reduces energy mostly at night

(typically a low-cost, off-peak costing period) is not as valuable as one that reduces energy mostly

during the afternoon peak load periods. Load shifting to hours with lower demand translates into

using base load energy from more efficient sources (e.g. hydro), rather than expensive energy

produced by peak plants (typically diesel plants).


Figure 7: Lifetime cost per energy unit in R/kWh (2016)

The largest consumer segment of electricity in Eswatini is residential customers, and yet they are

currently subsidized heavily by the industrial customers. Implementing a Time of Use residential tariff

for high usage consumers—users of heavy load equipment such as large refrigerators, air

conditioning units, dishwashers, and pumps for swimming pools—who can move part of their load to

off-peak hours would result in monetary and MWh savings. Participation in the use of the tariff

should be optional yet marketed as an opportunity to save money rather than a penalty. Effectively

implemented in multiple EU countries, the consumer-friendly approach is most successful when

accompanied by targeted communications campaigns.

3.6 TRAINING ON EE TECHNOLOGIES AND ENERGY AUDITING

In countries without comprehensive EE programs, there is a limited availability of energy auditors, In

the SADC region, the majority of energy auditors are trained to conduct walk-thru energy audits,

and too often, they lack the requisite measurement instruments to conduct even a general energy

audit. Indeed, Eswatini needs a regulatory body to stipulate if general energy audits and reporting will

be mandatory or voluntary for large demand clients. Until Eswatini can maintain a national roster of

trained and certified energy auditors and the funding institutions to offset the energy audit cost, the


process will remain limited to commercial entities importing

knowledge—in compliance with corporate governance, not local

law.

The proposed approach is to reduce training costs by starting

with train-the-trainers workshops abroad . The trainees will, in

turn, conduct local workshops at a competitive rate. Beyond

building local capacity, the program will drive a market for EE

among industries—creating opportunities for the newly trained

professionals to offer services such as energy audits, and to

support adoption and certification of energy management norms

such as ISO 50001 and Measurement and Verification (M&V)

protocols. The actions involve the mobilization of local and

regional resources and the identification of potential service

providers for international training.

To create an economically viable model, further study into sources of possible training and funds for

increased energy audits is required. Zambia and Zimbabwe are using the Energy Training Foundation

of South Africa to build internal capacity of energy auditors, energy managers, and M&V

professionals. Universities can also form an anchor for sustainable capacity building for energy

auditing such as was done in Lesotho24.

4. MEDIUM-TERM ACTIONS (2028)

4.1 PUBLIC SECTOR DEMONSTRATION PROJECTS

Public sector demonstration EE projects in Eswatini should begin with energy audits for selected

high-volume consumers, such as the Eswatini Water Services Corporation, and the police, due to

the large number of buildings administrated. The audits should be followed by funding for the

recommended energy improvements. It will be easier to obtain donor funding if an independent SEA

leads the demonstration initiative.

Monitoring, verification, and publishing of results will be critical as their public availability ensures all

citizens understand the EE improvements, and they can guide future endeavours. The demonstration

projects will also create opportunities to employ locally trained energy auditors, increasing the

application of their practical skills.

Regional demonstration projects offer an opportunity for locally trained engineers to work alongside

specialists with the latest innovative technologies. This on-the-job training facilitates skills transfer to

the junior specialist. Results of the demonstration projects will be showcased to increase awareness

24 Future-oriented education and societally relevant skills for sustainable energy in Lesotho

Reduce the cost of training by starting with train-the-trainer workshops abroad then the trainers would offer domestic certification and training workshops.

https://sdfutures.fi/future-oriented-education-and-societally-relevant-skills-for-sustainable-energy-in-lesotho/


of EE technologies and to create a broader market for EE policy and behaviour throughout the

region.

4.2 MEPS FOR SECOND PRIORITY APPLIANCES AND INDUSTRIAL EQUIPMENT

Building on the short-term MEPS labelling program and the lessons learned in South Africa25

additional appliances will be added to the roster of EE labelled products. In South Africa an increase

in purchase of air conditioners is forecasted, while efficiency improvements are moderate. Given

their high per unit usage (for reversible units), they present the third greatest area for potential

savings. Appliances and industrial equipment such as dishwashers and washing machines, plastic

moulding equipment, air compressors, and other products have moderate to high household and

industrial penetration, low usage, and a high baseline efficiency level, therefore the impact of MEPS

are lesser, with the possible exception of tumble dryers for which the growth in ownership in South

Africa provides for potential savings.

The program will follow the same MEPS labelling and consumer education model as the short-term

program. MEPS is always implemented in phases, targeting first the largest volume/impact appliances

and equipment (e.g. lighting, fridges and electric motors) and addressing other equipment in second

or third phases.

4.3 AGRICULTURE SECTOR TIME OF USE TARIFFS

During the consultations the team noted ToU concerns from the agriculture stakeholders,

specifically those in the sugar cane industry. The TOU tariff does not consider optimal times. It was

gathered that during hot periods, sugarcane must be watered twenty-four hours a day. However,

from the water resources management point of view, it is best to irrigate crops at sunrise and

sunset. At sunrise the evaporation is not yet too high, thus the plants can build up a water reserve

to use in the sunniest hours. At sunset the soil and the plants are dry, and any water is efficiently

absorbed by the plant. Irrigation in the hours around the sun’s zenith should be avoided as it leads to

leaf damage and excessive evaporation26.

The City of Johannesburg fines residential clients watering outdoor plants outside of the established

sunrise or sunset periods. The current Eswatini ToU structure discourages irrigation at efficient

times as the optimal times coincide with the peak electricity tariff. Moreover, the system does not

foster a competitive agriculture sector nor the use of EE pumping systems. Thus, not only are new

ToUs needed but also targeted marketing and education campaign. Studies into synchronizing ToU

with irrigation systems and surveys to determine if small- and medium-sized agriculture firms

understand how to optimize ToU by scheduling their irrigation for off-peak periods need to be

conducted.

The water resource management body working with the SEA should address water payments as

plots are charged per hectare instead of by the water consumed. The billing practice discourages

efficient use of water and energy for pumping, as using extremely inefficient flood irrigation, medium

25 Energy Performance and Labelling Requirements for Specific Electrical Appliances and Equipment, 2012 26 Damage on leaves due to irrigation during the highest radiation hours of the day is well documented in

Agriculture Engineering text books


efficient pivot irrigation, or highly efficient drop irrigation cost the same amount. The field interviews

confirmed a lack of understanding in how water storage is also energy storage. In Eswatini, it should

be common practice as in regions with similar profiles such as land-locked semi-arid Malawi27, to

pump water and accumulate it during low-tariff hours in higher reservoirs to use that water later for

irrigation and even for electricity generation.

4.4 ESCO DEVELOPMENT FOR MUNICIPAL PUBLIC LIGHTING AND OTHER

SECTORS

There are opportunities to implement EE initiatives for public

lighting managed by municipalities. Currently, no ESCOs are

operating or investing in EE public lighting. Some municipalities,

like Matsapha, began investigating the possibility, but ESCO

procurement is a complicated matter, and technical assistance

must be provided if it is to be widely adopted. Private sector

participation should be encouraged by creating standard energy

performance contracts and allowing for the long-term

subcontracting of energy services by public entities. Owing to

past issues of corruption in contracting, many Southern African

countries prohibit municipal governments from engaging in

long-term service contracts. This is a major barrier for ESCO

development in South Africa and other SADC countries. Public

procurement regulations should be updated to permit

municipalities to sign five-year contracts, so the potential

ESCOs have time to recover the initial investments from

savings.

4.5 ADOPTION OF GREEN BUILDING CODES FOR PUBLIC BUILDINGS, PRIVATE

OFFICES, AND THE HOSPITALITY INDUSTRY

Compliance with standards in Eswatini is voluntary. The Eswatini Standards Authority (ESWASA)

acting with the Government, academia, or the public sector may issue suggested building standards,

in cooperation with bodies such as the South Africa Bureau of Standards. However, adherence to

ESWASA adopted standards is not compulsory unless the standard is mentioned in any law. For

instance, ESWASA adopted ISO 50001 and some standards for building energy efficiency, lighting,

refrigeration. Working with ESWASA the SEA should plan to gradually make the most relevant EE

standards mandatory and monitored.

The national building codes should be updated by request of the SEA to standards that include MEPS

for construction equipment and materials as well as general EE guidelines related to orientation,

optimal use of energy, natural light, and water conservation. Windows standards should include

mandatory installation of EE glass (e-glass) or double glazing. New construction should not be

allowed to heat water without using solar water heaters for at least 50 percent of the load.

Additionally, codes should include maximum and minimum air conditioning temperatures to avoid

wasted energy in offices, public buildings, and hospitality sites. Energy monitoring for buildings

27 Energy supply in Malawi: Options and issues

Private sector participation should be encouraged by creating standard energy performance contracts and allowing long-term subcontracting of energy services by public entities.

http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S1021-447X2015000200003


exceeding the 500 kWh or other agreed threshold demand should be made mandatory with a

penalty for non-compliance.

5. LONG-TERM ACTIONS (2034)

Several actions are crucial for sustainably achieving the 2034 goal of a 400,000 MWh reduction and

mass EE practices in domestic industries. The success of the outlined long-term activities is

dependent on timely implementation and adaptation of the short- and medium-term actions. The

long-term goals aim to reform transportation policy and to address the multitude of issues revolving

around how food is cooked.

Coordinated by the SEA, the creation of an EE transport sector, new

public transport strategies, optimization of bus lanes, promotion of

bicycles for short-distance commutes, automobile emissions

standards, and other cross-sectoral actions should be planned and

implemented by the SEA with participation from affected ministries as

well as transport and city planning authorities. Moreover, regulations

for electric vehicles (EVs) and energy storage should be drafted to

allow the possibility of better load management. The EV owners could

sell excess stored energy back to the grid, at a higher price than

initially paid—an incentive to sell back during peak hours.

As in Malawi, inefficient production and unsustainable use of biomass

energy contributes to environmental degradation i.e., deforestation,

desertification, and soil erosion. The use of wood, charcoal and dung

as cooking fuel results in indoor air pollution causing respiratory

illnesses. Additionally, gathering wood is a time consuming and

exhausting burden most often borne by women and children, who are

then diverted from other activities. Thus, developing a MEPS

education campaign for wood will begin to confront the myriad of gender, health, and EE issues

related to open fire cooking. The SEA will also create policies and incentives to promote solar,

biogas, and access to LPG or natural gas stoves as alternatives.

A massive deployment of RE will require a much more sophisticated management optimization of

the grid, the use of smart grids, and the possibility of real-time electricity pricing for commercial and

residential consumers. As these actions are set for a 15-year execution period, the available new

EE/RE technology and associated lower costs should have stabilized, with many more options

available for consumers at varied price points, including those subsidized for lower-income

consumers.

6. ONGOING ACTIVITIES

The realization of the goals and objectives set forth in this NEESAP will depend on effective

communication with stakeholders, government agencies, and, most importantly, the public. With

public awareness and demand for EE products and systems, the need for local funding mechanisms

will increase. Pilot projects and strategic integrated marketing communications will be designed to

meet each audience with behavioural changing messaging and incentives. Moreover, assuming large

companies will be able to finance their EE investments, financing for SMEs is also needed to support

investments in energy audits, EE equipment, and the adoption of energy management systems.

Building a sustainable adherence towards EE attitudes, practices, behaviours, action plans, pilot

The massive deployment of RE will require a much more sophisticated management optimization of the grid and the possibility or real-time electricity pricing for energy demand-side management.


project participation, and interest in policies can be encouraged through gradual well-designed

communication strategies and financing mechanisms.

After analysing current EE awareness among youth, adults, women, SMEs, government ministries,

and industry stakeholders, an integrated marketing communications strategy should be developed by

the SEA or other EE-responsible entity to support the proposed actions. Taking lessons learned

from previous environmental education campaigns such as Practical Action’s elementary school EE

curricula28 deployed in Zimbabwe and Malawi, the ineffective wetlands youth education campaign in

Seychelles, and the successful television, radio, and nationwide events in rural Cambodia, the SEA’s

community outreach program will be tailored and responsive to Eswatini’s diverse populations.

Moreover, it will take cues from the successful model deployed in the United States to change child,

teen, adult, and overall household attitudes about smoking. In Eswatini, a communication and

outreach strategy will be deployed at the community, municipal, and national levels—operating on

the reverse premise of the increased consumption of junk food driven by children’s demands to

parents. The SEA should execute a comprehensive EE mass media campaign, including YouTube

animations and mobile devices games, to educate Eswatini youth and adults. To bolster the

campaign's cross-cutting efficacy, EE will be added to the national school curriculum beginning with

years 1-4 using the free materials available from Practical Action until local language and region-

specific ones may be developed. During the field missions, research, and stakeholder suggestions

yielded the following possible activities as elements of the campaign:

• Industry-specific seminars;

• Traditional media campaign;

• New media initiatives i.e., social networks, SMS, messaging apps;

• Roadshow with public RE and EE events;

• Publication and dissemination of technical information;

• Demonstration kit showing LED savings;

• Sample solar PV kit distribution;

• Mass media campaigns focused on EE short- and long-term savings; and

• Edutainment about the benefits of new technologies, pay pack periods, and time of use tariffs.

Funding mechanisms combining technical assistance with emerging technologies must be

incorporated into planning from Q1 2020 to further the sustainability of the proposed actions. After

conducting a critical analysis of the existing financing mechanisms, the SEA will review credit lines,

incentives, access to funds, and what changes are needed to adapt existing financial regulations to EE

projects. Beginning with the establishment of a specialized credit line similar to SUNREF Namibia

28 Practical Action Schools

https://practicalaction.org/schools/


(AfD), which allows for the leveraging of donor funds with commercial banks debt. This NEESAP

proposes the Eswatini Sustainable Energy Finance (Eswatini SEF) to provide lending at commercial

rates but also to act as a donor-funded technical assistance facility. Eswatini SEF could alleviate the

following financial sector barriers:

• Access to financing for the purchase, installation, and maintenance of EE equipment;

• Awareness level of current and potential financiers who are appraising EE loans;

• Minimal confidence in the return of investment for end-users (and loan performance);

• Lack of capacity of local commercial banks regarding the techniques and benefits of EE

investments—domestic financial institutions do not understand EE investments and how

profitable they can be;

• Provide technical assistance to both the Financial Institutions, and to the potential borrowers as

was seen with the increased EE lending through SUNREF Namibia and GEEF South Africa;

• Help the private, public, and residential sectors to become more resilient to climate change by

technical assistance and training.

• Unlock the potential of current portfolio into profitable EE investments as a regular practice.

7. POTENTIAL ENABLERS TO IMPLEMENTATION OF THE

PROPOSED ACTIONS

The proposed actions are enablers for the successful implementation of the NEESAP. The NEESAP

focuses on the electricity sector due to the potential high EE impact over a short time frame and

energy growth, especially among residential consumers. The projections are consistent with the

Government of Eswatini’s goal to reach universal electrification by the year 202229. When Eswatini

reaches universal electrification, the importance of focusing on EE in the electricity sector will be

increased. Higher EE in electricity could reduce electricity imports and also reduce the cost of

producing goods and services—a benefit to the economy and to the standard of living.

According to the Kingdom of Eswatini Energy Master Plan, 2034 (2018), access to electricity for low-

income households is a priority, while the affordability of energy is a major concern. Low public

awareness of the benefits of EE, energy audits, EMS, and Measurement and Verification (M&V) exist

in many end users of electricity. Indeed, even large industrial power consumers are not availing

themselves of basic tools that would result in lower consumption and increased savings. The

missions to gather data included interviews with large complex multinationals in the food and textile

industries who exhibited a clear interest and even KPIs related to energy efficiency. However, they

lacked the monitoring and energy management systems to better understand how to become more

energy efficient.

29 Kingdom of Eswatini Energy Master Plan, 2034 (2018),


Unlike other African countries, such as South Africa or Egypt, Eswatini does not have regulations

making energy audits compulsory for large clients nor does it offer formal training for energy

auditors. In engineering degree programs and professional schools, a 4-week certificate of

competency in energy audits could drastically increase local EE capacity—creating jobs, providing the

skill for projects, and helping with the installation of more

sophisticated projects where the involvement of an engineer is

needed. Moreover, there are no local ESCOs, although some South

African companies operating in Eswatini have contracted

international ESCOs to serve their EE needs. Energy auditors and

ESCOs are critical to identifying EE opportunities and justifying

finance for EE projects. Capacity building and funding for energy

audits for SMEs and public demonstration projects could be

procured through donors or environmental fees. EE education is an

important issue that needs to be addressed at schools, technical

colleges, and universities to build capacity and augment public

awareness initiatives.

Efficient wood cooking stoves can have a positive impact on the

quantity of wood burned, decrease the risk of respiratory illnesses

due to traditional open wood cooking fires, as well as improve the

quality of life, especially for women. According to REN21published

in 2015, about 161,913 households are affected by household air

pollution causing 714 deaths per year. Access to modern, clean

energy solutions such as electricity, LPG, and improved cook-stoves

will go a long way to address the hardships and inconveniences

associated with the use of solid fuels for cooking. The promotion of alternative cooking fuels such as

LPG or natural gas involves long-term planning and significant funding for research, demonstrations,

roadshows, policy development, trade deals, and implementation. Currently, other donors are

funding EE stoves in small numbers in Eswatini. As EE awareness and education increases, so too

should the demand for alternatives to open cook fires.

Meetings with relevant stakeholders revealed an increasing interest in EE in transportation, triggered

mostly by the rising cost of conventional fuels and likelihood to increase productive usage of

electricity. Initiatives such as a comprehensive EE transportation policy require detailed planning,

including road layout, transport policy, and other important five (5) to15-year regulations. The

affordability and availability of EVs will affect EE and demand-side management. EVs are not only a

cleaner form of transportation, but the batteries could help reduce peak demand, if the owners of

EV recharge in off-peak hours or through completely RE methods. Planning the regulation and

infrastructure for smart grids along with the management and massive introduction of EVs are long-

term priorities for Eswatini. The effective rollout will change how peak demand is managed.

8. MONITORING, EVALUATION, AND REPORTING

The SEA will be responsible for tracking, coordinating, and overseeing the implementation of this

NEESAP in collaboration with the MNRE. The Agency will develop a robust monitoring and

evaluation framework with clear milestones, indicators, and measurement of MWh saved. The

monitoring plan will ensure the collection of information for use by coordinating institutions and key

stakeholders to evaluate the progress of implementation of the activities and facilitate timely decision

making. Energy balances are gathered annually in Eswatini. The SEA should collect energy balances,

but also information about industry output (e.g. Tons of sugar cane, or beds occupancy) to closely

monitor the evolution of energy intensity per sector.

The SEA will develop a robust monitoring and evaluation framework with clear milestones and indicators for the efficient implementation of the Action Plan and measuring of MWh saved.


A detailed methodology on how to quantify the improvements in EE is beyond the scope of this

document. However, it is recommended that a reference baseline for key sectors be established and

further agree on general monitoring and evaluation practices. For large individual projects in

industry, agriculture, commerce, and the government, a baseline would need to be calculated to

measure project efficacy. The baseline should be both realistic and viable, considering the utilization

of the equipment i.e., for a hotel’s number of guests per night or for a drink company, the number of

bottles produced per night. The comparison should be made in terms of kWh per unit produced or

service rendered i.e., occupied hotel nights or bottles sold.

The goals defined per sector use the slow growth projections. For example, using the provided

estimates, EE savings measurements could be based on the application of MEPS—comparing

appliances purchase trends, rebate redemption, and electrical usage over the next fifteen years.

Note, equipment that is operationally unviable (at the end of its functional life, no longer permitted

by national law, or otherwise expected to cease operating) does not constitute an acceptable

baseline.


9. APPENDIX A: SELECTION OF INSTITUTIONAL DESIGN

FOR A SEA

SEA implementation arrangements can be divided into three parts—governance, program

administration, and services delivery Certain functions in a publicly funded EE activity must be

performed by a government or quasi-government body, while other functions can be undertaken by

a variety of public or private entities. Program administration could be assigned to the parastatal

utility company or a new or existing agency of national or provincial government or newly formed

autonomous “trusts” within or outside government. Program implementation including delivery of

EE goods and services could be done by any number of private- or public-sector entities, including

retail energy services providers, NGOs, EE centres financed by government, commercial entities

such as ESCOs, or even equipment (appliance) manufacturers or retailers.

TABLE 8: FUNCTIONS OF A SEA AND ITS INSTITUTIONAL FRAMEWORK

FUNCTIONS INSTITUTIONS EXAMPLES

Governance Ministry of Energy

Regulator

Ministry of Finance

How to govern implementation of MEPS

Time of Use Tariffs

Different levels of VAT depending on MEPS

Administration Statutory SEA

Ministry of Energy

Parastatal utility company

Strategy, Action Plan, Goals, M&V

Program Administration

Work collaboratively with government and

other agencies

Leverage private-sector participation in EE

implementation

Effectively engage with EE stakeholders

Service Delivery Private ESCOs

Government funded EE centres

Current ESCOs working in hospitality

Demonstration projects in public buildings

Program administration may be the most demanding EE implementation arrangement. Administrative

duties range from overall program planning and budgeting to procurement of services delivery

providers and evaluations of individual project performance.

Program administration requires a significant repository of technical specialties and organization

capacity. Choosing an EE program administrator should take into account both practical and political

considerations, including the beneficiaries of the program, relationships with the target population,

and existing technical and administrative capacity.

The implementation administrator should be able to accomplish the following:

• Realize economies of scale and scope

• Work collaboratively with government and other agencies

• Leverage private-sector participation in EE implementation


• Effectively engage with EE stakeholders

• Engage with and influence energy goods and services providers

• Facilitate the role of energy regulators in scaling-up EE

Based on the considerable variability in institutional practices it seems clear that there is no single

administrative structure superior to all the rest. Rather, it is the starting point and nature of the

EE strategy itself that will drive selection of implementation administrator.

For example, in many developed and developing economies it is the vertically integrated utility and

electricity distribution company that have been most successful in designing and implementing cost-

effective and innovative EE programs. These utilities have developed expertise in administering and

sometimes delivering EE programs, not least because of a significant competitive advantage they

enjoy in terms of access to capital, an existing relationship with end users, including billing systems

and market data, a well-known brand name, and technical capacity.

However, utilities can suffer considerable disadvantages as well. In many cases, the regulatory regime

discourages utilities from undertaking direct market interventions to stimulate uptake of EE, because

under cost of service rate making their revenues and profitability are directly tied to end-use sales

volumes. Regulatory arrangements and new business models are often needed to encourage utility

participation in implementing EE.

TABLE 9: FUNCTIONS OF A SEA AS ADMINISTRATOR OF EE PROGRAMS

FUNCTIONS SPECIFIC RESPONSABILITIES COMMENTS

General Administration Manage overall budget for portfolio of programs

Manage portfolio of programs

Maintain centralized information system for reports to regulators, legislators, advisory groups, etc.

Hire and/or manage staff and subcontractors

Develop quality assurance standards

Manage contracts in case some functions are provided by external consultants

Time of Use Tariffs

Different levels of VAT depending on MEPS

Program Development, Planning and Budgeting

Prepare initial technical and/or market reports necessary for program strategies and initial program designs

Prepare program budgets for regulatory approval

The agency should prepare the programs more relevant for Eswatini, e.g., labelling for MEPS compliant products, education and training, etc.

Program delivery and implementation

Communications and Marketing

Implement program services

EE Events, conferences, seminars, flyers, etc.

Energy Audits, financial incentives, contractor training and certification

Program evaluation Develop M&V procedures

Assess program impacts

Evaluate effectiveness

Results Oriented Monitoring protocols

KPI, like kWh saved, CO2 emissions avoided

Cost of saving 1kWh in monetary terms


Utilities are also seen to be somewhat limited in the types of EE programs in which they have a

competitive advantage. Utilities are better suited to implement programs where EE improvements

represent a resource that substitutes for new generation or distribution capacity.

Other types of EE interventions may be better administered by agencies with broad energy-related

responsibilities or agencies focusing on EE only. Certain types of regulatory or control mechanisms,

such as minimum energy performance for equipment and buildings, should be administered by an

agency.

Criteria to decide the best institutional form include compatibility with policy goals, accountability

and oversight consideration, administrative effectiveness, and start-up and transition issues. For each

of these broad criteria, there are specific measures. Some framework comparisons can be made

generically, such as the pros and cons of energy utilities versus government agencies undertaking EE

implementation.

A statutory basis is desirable, as it conveys status and permanency to an energy efficiency agency.

Having a statutory basis confers a definite institutional advantage for an energy efficiency agency,

especially if the legal basis includes provisions for funding or other resources. Successful examples of

this in developing countries include India’s Bureau of Energy Efficiency (BEE),

Mexico’s National Commission for Energy Efficiency (CONUEE).

There is no single organisational answer. In general, there are five different energy efficiency

organisational types: (i) generalised government energy agencies, (ii) specialised government

EE/clean energy agencies, (iii) independent EE/clean energy authorities or parastatal corporations,

(iv) EE/clean energy NGOs, and (v) EE/clean energy public-private partnerships. Furthermore, there

are more organisational designs waiting to be discovered (see, for example, the recent debate on

statutory authorities and quasi-governmental organisations in the United Kingdom).

Each organisational type has advantages and drawbacks. The choice of organisational type should

reflect historical development, country context, alignment with sector and energy efficiency

objectives, existing institutions and many other factors.

Several critical factors and core competencies contribute to successful energy efficiency agencies.

IEA research shows that strong leadership and good external co-operation, including private sector

involvement is important to any EE organisation. Consensus documents such as strategies, plans

and targets help build consensus and establish expectations. Professionalism and high calibre of

staff, financial independence, and strong incentives for staff and management are all intertwined

under the category of sufficient resources.

Energy efficiency agency design should reflect policy implementation requirements and the

targeted sectors. An agency should be organised around the implementation tasks it is assigned.

The resulting structure will vary according to the type of policy and the targeted sector. Enforcing a

thermal building code, for example, will require quite a different organisation from one

administering a tax incentive. Policy makers should consider implementation responsibility and

capacity whenever promulgating new policies, and periodically review whether energy efficiency

agency organisations are meeting current and future needs.


1.1. OPTIONS FOR ESWATINI:

During the workshop on February 27th 2020, to validate this NEESAP, the participants reached a

consensus that rather than create a new entity, it would make more sense to analyse two existing

entities that are currently performing some of the functions of a SEA and to recommend the best

suited for the task:

The two entities are: UNESWE-CSER: University of Eswatini Centre for Sustainable Energy Research

and the REAESWA, The Renewable Energy Association of Eswatini.

The UNESWE-CSER is a semi-autonomous centre based in the University of Eswatini, focusing on

research, training and consultancy:

• Education, training, research and capacity development: provide energy education, train

energy artisans, conduct energy related research, organize workshops and specialized short

courses on energy for the policy makers, trade institutions and other energy stakeholders;

• Solar photovoltaic systems characterisation: conduct solar photovoltaic systems

characterisation;

• Training for accreditation: develop and provide training for certification programmes for the

installation of various energy consuming systems and installation of renewable energy

technologies such as solar PV, small wind turbine and biogas plants;

• Solar thermal: conduct research on solar water heaters, solar crop/food dryers, and solar

water purification systems;

• Bioenergy: conduct research on solid biomass, bio-liquid fuels and biogas;

• Wind energy: conduct improvements on wind data and identify suitable wind turbines for

Eswatini;

• Hydropower: carryout studies on appropriate hydroelectric generating systems;

• Energy efficiency and conservation: gather information on and develop best practices on the

promotion of new energy efficient and conservation technologies, practices and energy cost

minimizations;

• Alternative energy sources: conduct research on possibilities of waste to energy and

geothermal power;

• Energy system analysis: carryout studies on energy supply/demand dynamics, data mining,

behavioural aspect of energy use, energy infrastructure analysis, geopolitical aspect of

energy use, and energy in transportation systems;

• Energy Audits: conduct measurement and verification for systems where energy audits are

carried out;

• Measurement and verification: provide services for measurement and verification of energy

systems;

• Computational modelling for energy: uses computational modelling for various applications

including energy demand scenarios, climate change mitigation and adaptation scenarios,

diffusion of energy technologies, energy dynamics, etc.; and

• Testing protocols and methodologies: develop testing protocols and methodologies for

future fuels and energy systems.

The REAESWA (Renewable Energy Association of Eswatini) was established in 1998 under an EU-

funded project in the Southern African Renewable Energy Information Network with the assistance


of the Eswatini MNRE. REAESWA which holds NGO status, acts as a PPP entity. It supports RE

projects and EE initiatives such as the promotion of LED bulbs and the use of solar water heaters.

REASWA's funding is obtained through projects, with 30 percent allocated for administration costs.

Combining RE and EE efforts under the auspices of a single body is an accepted practice. It facilitates

the cross-sector adaptation of new technologies which encompass RE and EE elements. For example,

solar rooftop PV panels can be considered both, RE and EE as they help to decrease demand. Many

RE technologies may also be considered EE as they result in the more efficient use of the fuel, i.e.,

co-generation. The increased use of energy storage over the next fifteen years will make the RE/EE

differentiation harder as systems as many electric vehicles (EVs) will include batteries, thus

controlling peak demand and increasing grid optimization.

It’s important to mention that given its current structure, the REAESWA has some gaps:

• It lacks sufficient full-time staff, that should be addressed with government and donor budget

support

• Institutional mandate to propose and enact MEPS, and recommend fiscal and financial

incentives associated with each MEPS

• Data gathering and analyses to set target and M&V procedures to track progress versus

targets

• Mandate to represent Eswatini in regional and international EE organizations like SACREEE

and become the main implementing agent of regional EE initiatives.

The next table compares the functions described for a SEA, and the current tasks performed by

each entity and its potential

TABLE 10: ANALYSIS OF FUNCTIONS OF A SEA AND COMPARISON WITH EXISTING ENTITIES

FUNCTIONS UNESWE-CSER REAESWA

General Administration Manage overall budget for portfolio of programs

Apparently UNESWE capacity for budget management and administration is better than REAESWA as it would follow similar procedures already in place at the University

General administration capabilities are self-reported weak. “Lack of attractive annual financial statements subject to external audit to lure potential funders or donors. Lack of internal accounting guidelines and human resource systems”

Program Development, Planning and Budgeting

CSER reports the development of several programs including training in EE and RE and MEPS, some of the key actions proposed in this NEESAP.

REASWA lists four projects, but none in MEPS nor training.

It does not seem any program was designed by REASWA

Program delivery and implementation

CSER reports 11 programs successfully implemented since its creation two years ago

REASWA lists four programs implemented, three of them for residential sector

Program evaluation No experience listed No experience listed


10. APPENDIX B: ACTIONS RESPONSIBILITY MATRIX

SHORT TERM – HIGH IMPACT ACTIONS BY 2022

ACTION LEADING INSTITUTION

START DATE

END DATE ESTIMATED BUDGET ESTIMATED BENEFITS NEXT STEPS

Sustainable Energy Agency by merging two existing entities

Ministry of Energy and Natural Resources

Mar 2020

Aug 2021 Depending on the legal form. At least three employees full time and seconded international expert:

US$ 350,000

In combination with MEPS, estimated savings by 2028 of at least 120 GWh per year, or approximately, US$15,6 million

Identification of supporting donor

Business plan by donor and MNRE.

Selection of local staff and international seconded expert(s).

MEPS for Lighting and Appliances, starting by refrigerators

Sustainable Energy Agency

Mar 2020 Ongoing Adoption of MEPS

Design and monitoring costs

US$ 250,000

In combination with MEPS, estimated savings by 2028 of at least 120 GWh per year, or approximately, US$15,6 million

Leverage SACREE-UNIDO Energy Efficient Lighting and Appliances program.

MEPS for refrigeration and lighting first

Financial and Fiscal Incentives: Different VAT levels and attraction of EE facilities


Ministry of Finance

Mar 2020 Ongoing Consultants to perform detailed study of budget impact so its budget neutral

US$ 450,000

It should generate at least the $600,000 estimated for the SEA and MEPS (in case there was not donor support)

Technical Assistant could be provided by different donors, including USAID.

Gradual implementation including massive communication campaign

Introduce Time of Use tariffs for residential users, as this segment is more flexible than other to reduce peak demand


Energy Regulator

Ministry o Finance

Mar 2020 Ongoing Consultants to perform detailed study of budget impact so its budget neutral

US$ 550,000

Delay of construction of new peak plants

Savings on paying peak tariff

Support of a tariff expert.

Position the tariff as a way to save money rather than a penalty

It should include public opinion campaign

Training on EE technologies and Energy Audits


June 2020 Ongoing TBD Review programs proposed in Appendix E

Engage with potential TA donors

Program to educate energy auditors


MEDIUM TERM ACTIONS BY 2028

ACTION LEADING INSTITUTION START DATE

END DATE

ESTIMATED BUDGET

NEXT STEPS

MEPS for other equipment and Appliances, including probably off-grid appliances too.


Feb 2024 Ongoing TBD, Leverage first phase MEPS experience to add other appliances, like Air Conditioning, and industrial MEPS starting by electric motors.

MEPS for Solar Home Systems and Solar Water Heaters

Time of Use reform for agriculture users


Energy Regulator

Ministry of Finance

Feb 2024 Ongoing TBD Solve issue of water billing by plot size

Design prepared with the support of tariff and sugar cane production expert.

Position the tariff as a way to save money rather than a penalty

ESCO regulation and incentives


Ministry of Finance

Feb 2024 Ongoing TBD Regulation allowing for long term service contracts in public facilities.

ESCO contract models and ESCO financing mechanisms

Compulsory green building codes

Sustainable Energy Agency (SEA)

Feb 2024 Feb 2025 TBD After a few years of experience, the SEA should be leading the adoption of international green building codes customized for Eswatini

Pilot EE projects in the public sector

Ministry of Energy and Natural Resources

Ministry of Finance

Feb 2024 Ongoing Selected projects according to results of first energy audits

The first energy auditors trained with the program developed locally should work on their first projects in selected high consumption public buildings with international support


LONG-TERM AND ONGOING ACTIONS

ACTION LEADING INSTITUTION START DATE END DATE ESTIMATED

BUDGET COMMENTS

EE embedded in the curriculum of schools, high schools, technical colleges and universities

Ministry of Education


Ongoing Ongoing TBD, USAID could support sharing and or producing programs for other countries.

EE finance facility Sustainable Energy Agency Ongoing Ongoing TBD, most likely none

Facilitate the establishment of an EE Finance Facility like SUNREF Namibia or SUNREF South Africa (AFD)

MEPS for other vehicles, including EV. Regulations for storage trading

EE for the transport sector

Sustainable Energy Agency Feb 2030 Ongoing TBD, Long-term planning needs a high level of coordination of a cross-sectorial agency.

MEPS for cooking and heating wood.

Sustainable Energy Agency Feb 2030 Ongoing TBD, Consumers can make better choices about what time of wood to buy and from where. This system has been successfully implemented in Chile

LPG and NG development Sustainable Energy Agency (SEA) Feb 2030 Ongoing TBD Fuel switching for remaining wood users to LPG/NG. Less risk of respiratory diseases especially for women and children


11. APPENDIX C: STAKEHOLDER MEETINGS KEY

TAKEAWAYS

INDUSTRY

Awareness about the importance of EE in the industrial sector of Eswatini seems higher than in

other sectors, but there is a lack of energy auditors or ESCOs that can provide professional advice

on which EE investments have the shortest payback and the biggest returns. The consulting team

visited textile industries and beverage industries and found EE is of concern, but no energy

management systems or energy monitoring systems were in place to make proper decisions about

where to invest first. The SADC Industrial EE program (SIEEP) is considered by SADC stakeholders

to be important in the implementation of the SADC industrialization efforts through the Industrial

Strategy and Road Map (2015-2063). The SIEEP –Phase 1 Study focused on the manufacturing sector

and found that some industries have been underperforming due to, among other factors, shortage of

adequate energy supply and high costs resulting from inefficient use of energy.

TOURISM

The project team met with several hospitality companies as well with the Ministry of Tourism. The

situation was similar to industry, in that there was a concern about EE but a lack of expertise to

identify opportunities. One significant exception was Mountain Inn, which showed how hiring the

relatively inexpensive services of an energy auditor and buying some basic energy monitoring

equipment they were able to make the best EE investment decisions and reduce their energy load by

an impressive 30 percent. Mountain Inn is an outstanding example of what Eswatini needs: industry

education, certification of energy auditors, clear regulations on time of use tariffs, and staff and

management EE awareness.

In Eswatini, as unfortunately in most countries, it is common to enter a meeting room or hotel

room where the thermostat is pre-set to 16° Celsius, well below the comfort zone. Regulations

limiting the minimum temperature in summer and maximum temperature allowed in winter for

HVAC systems have been proven quite successfully in other countries and should create a win/win

scenario where the industry and the country, in general, become more efficient.

An energy management program for tourism was implemented in 2012. There are currently no

sustainability benchmarks for the tourism sector. There is, however, a sustainable tourism policy in

place—a resources grading framework could be easily developed and linked to sustainability

benchmarks.

CERTIFICATIONS AND MINIMUM EFFICIENCY PERFORMANCE STANDARDS

There is a need to coordinate MEPS for appliances and lighting products with South Africa and the

SADC region in general. In this regard, SACREEE is launching a regional initiative that will also

include Eswatini. Imports of substandard appliances, lack of EE testing laboratories, and other related

issues will be better solved by through the regional approach, but there could be some steps to take

if a regional approach is delayed.

The is no EE certification system in place for commercial buildings, nor residential homes. There are

a lack of trained and certified energy auditors and institutions that could help in the funding of

energy audits.

EFFICIENT WOOD STOVES AND OTHER COOKING FUELS

Efficient wood cooking stoves have a positive impact on reducing the quantity of wood burned,

decreasing the risk of respiratory illnesses due to traditional open wood cooking fires, and increasing

the quality of life specifically for women, who need less time to collect the wood.


Liquid Petroleum Gas (LPG) is also another fuel that is more efficient and less polluting than wood

or electricity for cooking (as most electricity is Eskom imported, generated with coal).

EE IN THE PUBLIC SECTOR

One of the biggest consumers of electricity in Eswatini is the Royal Police. Eswatini has a very well

managed collection policy, based on extensive use of pre-paid meters, and those entities that do not

pay may be disconnected. Even if there are no formal EE objectives for public sector buildings, there

is an interest in keeping energy consumption budgets under control. EE programs must be

systematically implemented in the public sector to reduce operational costs, greenhouse gas

emissions, and to set an example for the industrial and agricultural sectors. Specific targets related to

existing baselines should be set for various public sector infrastructure, i.e., public buildings (prisons,

schools, hospitals, police stations), water treatment facilities, water reticulation infrastructure, etc. It

is important that energy savings based on existing baselines in the public sector to be quantified in

terms of monetary value so that any funds saved can be earmarked for other service delivery

objectives.

There are opportunities to implement energy efficiency initiatives in public lighting. Public lighting is

managed by municipalities, and no ESCO is operating or investing in energy-efficient public lighting,

although Matsapha municipality has been investigating the possibility. Improving the management of

public lighting, i.e., not keeping streetlights on during the day, is another initiative that can be easily

implemented. Improving the maintenance of public infrastructure and implementing incentives for

public sector entities to be energy efficient are further quick wins that can promote energy

efficiency.

AGRICULTURE SECTOR – IRRIGATION Energy efficiency in pumping for irrigation needs to be investigated. Currently, the payment is per

hectare instead of m3 of water, which does not benefit farmers who have more efficient irrigation

and pumping systems.

DEMAND SIDE MANAGEMENT

Time of use tariffs are usually a very good instrument for demand-side management, but it seems

major consumers like sugar cane plantations and large industry have mostly fixed loads, and

production and use of electricity are planned according to the production plants. They are,

therefore, unable to use time of use tariffs. An investigation into the synchronizing of time of use

tariffs with irrigation systems needs to be undertaken. Studies on the use of solar for pumping for

irrigation are also required.

EMBEDDED GENERATION AND POWER WHEELING

Net metering rules and instruments for wheeling of power need to be developed.

EE EDUCATION

Education on EE is an important issue that needs to be addressed, both at schools, technical colleges,

and universities. The education of energy auditors is critical to identify EE opportunities and finance

for EE projects.


12. APPENDIX D: LIST OF STAKEHOLDERS MEETINGS

This list has been compiled by chronological order of the meetings.

1. Ministry of Natural Resources and Energy - July 23, 2019

2. Ministries and Departments – July 23, 2019

3. Eswatini Tourism Authority - July 23, 2019

4. Eswatini Electricity Company – July 23, 2019

5. Eswatini Energy Regulatory Authority - July 23, 2019

6. Eswatini Water and Agricultural enterprise – July 24, 2019

7. Ubombo Sugar Limited - JULY 24, 2019

8. Royal Swazi Sun Hotel – July 25, 2019

9. Matsapha Municipality – July 25, 2019

10. Eswatini Beverages (Inbev) – July 25, 2019

11. Tex Ray – July 25, 2019

12. Solar Care – July 25, 2019

13. Eswatini Water Services Corporation – July 26, 2019

14. Construction Industry Council – July 25, 2019

15. Ministry of energy - October 7, 2019

16. Eswatini Revenue Authority - October 7, 2019

17. National Curriculum Centre - October 8, 2019

18. Swaziland Standards Authority (SWASA) – October 8, 2019

19. Eswatini Electricity Company (EEC) – October 8, 2019

20. Renewable Energy Association (REASWA) – October 9, 2019

21. Expression Architects – October 9, 2019

22. Mountain Inn – October 10, 2019

23. Energy Auditors - Ecofriendly solutions – October 10, 2019

24. University of Eswatini - October 10, 2019

25. Eswatini Banking Association - October 11, 2019

26. Stakeholder workshop


13. APPENDIX E: ENERGY EFFICIENCY GLOSSARY

DEMAND SIDE MANAGEMENT measures aim to reduce customer energy demand at times of

peak electricity demand to help address system reliability issues, reduce the need to dispatch higher-

cost, less-efficient generating units to meet electricity demand and delay the need to construct costly

new generating or transmission and distribution capacity. Demand response programs can include

dynamic pricing/tariffs, price- responsive demand bidding, contractually obligated and voluntary

curtailment, and direct load control/cycling (FERC, 2017).

ENERGY AUDIT OR ENERGY ASSESSMENT are investigations of all facets of an organization’s

historical and current energy use to identify and quantify areas of energy waste within the

organization’s activities. It is best carried out by an accredited energy auditor.

An Energy Audit establishes the baseline for any improvements in an organization's energy use. It

provides a comprehensive and systematic method for targeting cost-effective efficiency gains. There

are many examples where clients have been able to obtain savings without requiring any significant

capital investment. An energy auditor should work with their clients to ensure those savings are

achieved and sustained in the long term. The objective is to have all identified improvement projects

pay out within two to four years, equivalent to a return on investment of between 25–50 percent.

ENERGY EFFICIENCY reduces the amount of energy needed to provide the same or improved

level of service to the consumer in an economically efficient way. Common policies include resource

and technology standards, codes, and incentives that can advance the deployment of energy-efficient

technologies and practices across all sectors of the economy.

ENERGY STORAGE AS EE MASSACHUSETTS CASE Until now, efficiency in electricity sector

has meant using fewer electrons. While a good and important goal, it is no longer sufficient. The

definition of efficiency must now be expanded to include the concept of peak demand reduction. For

the electric utility customer, it means that in addition to using fewer electrons, we must now learn

to use them at different times. The good news is that customers may be able to realize additional

economic benefits from reducing demand peaks, on top of the benefits of reduced net consumption.

The enormous cost of these peaks shows the economic opportunity offered by embracing peak

demand reduction. For example, in its recent State of Charge report, Massachusetts found that 40

percent of the state’s annual cost for electricity is spent on just the top 10 percent peak demand

hours in the year. Viewed this way, the inefficiency, and cost of overbuilding the electrical system to

accommodate occasional peaks became glaringly obvious.

The high cost of peak power is passed on to commercial customers in the form of demand charges

on their electric bills. For medium- to large-sized commercial customers, it is not uncommon for

demand charges to account for anywhere from 30–70 percent of their monthly electric bill. The

demand charges are based on the customer’s highest 15-minute peak load each month. Traditional

efficiency measures reduce overall consumption, and solar PV over roofs can reduce costs through

net metering. However, neither is effective at peak demand management.

Energy storage can give customers, unlike traditional, passive efficiency measures and renewable

generation, a tool to manage demand peaks. In turn, this reduces system-wide inefficiencies by

flattening peaks and filling valleys in the regional electric demand curve. When regional demand

curves start to look more like a highway and less like a roller coaster, they have realized the

efficiency gains that peak demand reduction can provide.

Massachusetts recognized the importance of peak demand reduction as early as 2008 when the

Green Communities Act specified that efficiency program administrators must seek “all available


energy efficiency and demand reduction resources that are cost-effective or less expensive than

supply.” Since then, additional legislation further specified that cost-effective energy storage could be

added to the efficiency program.

The genius of the Massachusetts model is that it demonstrates how states can harness the enormous

resources of existing energy efficiency budgets— some $9 billion nationwide— to compensate

customers for the use of new technologies, like battery storage to shift peak demand. Massachusetts

storage customers will receive a payment from utilities when they respond to a utility signal to

discharge their batteries behind the meter. In reducing their demand for grid power, they will also

contribute to flattening demand peaks across the region. The customer incentives in the program

will help households and businesses install battery storage by allowing them to monetize a service

for which no market yet exists.

ENERGY PERFORMANCE CONTRACTING (EPC) is a form of financing for capital

improvements which allows funding for energy upgrades from cost reductions. Under an EPC

arrangement, an external organization implements a project to deliver an EE or a RE project and

uses the stream of income from the cost savings, or the renewable energy produced, to repay the

costs of the project—including the costs of the investment. Essentially the ESCO will not receive its

payment unless the project delivers energy savings as expected.

ENERGY SERVICE COMPANIES (ESCOs) differ from the traditional energy efficiency engineers

or equipment suppliers as they can also finance or arrange the financing for the operation, and their

remuneration is directly tied to the energy savings achieved. Therefore, ESCOs accept some degree

of risk for the achievement of improved EE in a user’s facility and have their payment for the services

delivered based (either in whole or at least in part) on the achievement of those energy efficiency

improvements.

The three main characteristics of an ESCO are:

1. A guaranteed energy savings and/or provision of the same level of energy service at a

lower cost. A performance guarantee can take several forms. It can revolve around the

actual flow of energy savings from a project, can stipulate that the energy savings will be

sufficient to repay monthly debt service costs, or that the same level of energy service is

provided for less money;

2. The remuneration of an ESCOs is directly tied to the energy savings achieved; and

3. They can finance or assist in arranging the financing for the operation of an energy system

by providing a savings guarantee.

NEGAWATT is a negative megawatt—a megawatt of power saved by increasing efficiency or

reducing consumption. Physicist Amory Lovins coined the term and introduced it in a speech in

1989. Negawatt power is being implemented in many states in the U.S. and is emerging as an

international strategy to reduce energy consumption. Test negawatt auctions began in 1999 in, and

more than a dozen utility exchanges were in existence already by 2000.

US ANTISMOKING MODEL Since the 1980s in the United States, multiple mass media campaigns

designed to influence children's attitudes and thus, household behaviour related to smoking

prevention have been run on national and state levels. Massachusetts launched its tobacco control

program in 1994 at a time when youth smoking rates were on the rise. Youth smoking rates in

Massachusetts mirrored smoking rates nationwide from 1993 to 1995 and then declined faster in

Massachusetts than in the rest of the nation from 1997 to 1999. In a four year follow up survey of


Massachusetts youth, Siegel and Biener show that 12–13-year-olds exposed to the Massachusetts

campaign were less likely to become smokers than teens who were not exposed.

14. APPENDIX F: SUGGESTED CURRICULA FOR EE

TRAINING

SUSTAINABLE ENERGY TRAINING FOR MUNICIPAL

ADMINISTRATORS

http://www.cityenergy.org.za/uploads/resource_434.pdf

SAVING ENERGY COLORING BOOK FOR KIDS

https://extension.colostate.edu/docs/pubs/consumer/saving-energy-home.pdf

CERTIFIED ENERGY AUDITOR (ASHRAE)

• The Certified Energy Auditor (CEATM) certification program focuses on audits for

commercial and industrial buildings. The CEA certification is issued by the Association of

Energy Engineers based in Atlanta, US, and the program is based on ASHRAE standards.

This three-day training is designed to expand knowledge of energy auditing and serve as a

preparatory course for AEE's CEATM examination. It provides the fundamentals needed to

assess how energy is used by facilities and identify consumption reduction potential. The

course also covers useful calculation methods and presents practical examples. The

examination is administered on the morning of the fourth day.

The objectives of the course are to:

- Raise the professional standards of those engaged in energy auditing.

- Provide structure to the practice of energy auditing based on ASHRAE definitions for

audits ranging from preliminary to investment grade.

- Provide the recognized CEA™ credential to professionals who: have appropriate related

experience; demonstrate knowledge of the principles and practices of energy auditing; and

successfully pass the certification examination.

• Overview of Energy Auditing

o Typical audit shortcomings

o ASHRAE Levels I, II and III Audits

• Methodology for Level I, II and Investment Grade Audits

• Auditing tools and computer software

o Instrumentation

o Software applications

o Introduction to RETScreen

• Project Financing

o Project financial assessment

o Basic organizational finances

o Financing options

• Energy Fundamentals for Energy Auditors

http://www.cityenergy.org.za/uploads/resource_434.pdf

https://extension.colostate.edu/docs/pubs/consumer/saving-energy-home.pdf


• Facility Systems and Lighting

o Overview of facility energy systems

o Lighting energy management opportunities

o Lighting audit

• HVAC and Chillers

o HVAC and chiller system EMO’s

o HVAC audit

• Electrical Systems, Motors and Drives

o Motor types and efficiency ratings

o Efficiency in driven loads

o Advantages of speed control

o Motor and drive EMOs and audits

• Boilers, Compressed Air and Industrial Systems

o Boilers and steam distribution systems

o Compressed air systems

o Overview of other industrial processes

• Operations and Maintenance

o The importance of planned maintenance

o EMOs from operations and maintenance

• Writing Successful Audit Reports

o Structure of effective reports

• Writing for the readers

CERTIFIED RETSCREEN® EXPERT

RETScreen Expert Software is an intelligent decision support tool to enable stakeholders to

rapidly identify, assess, optimize and track the performance of clean energy investments over

the entire project life cycle. The software can be used to evaluate:

• Clean energy options

• The energy production, savings and costs

• Financial viability and risk for renewable energy and energy efficiency technologies

• GHG Emission reductions

• The performance of implemented projects

CERTIFIED ENERGY MANAGER (ASHRAE)

The Certified Energy Manager (CEM®) certification is the most recognised designation in

energy management and provides a wide range of benefits to help you thrive in your

occupation.

This in-depth five-day training is ideal for professionals who seek a thorough program that

covers the technical, economic and regulatory aspects of effective energy management. More

than 13,000 professionals in more than 35 countries are now CEM® certified. This training

provides a comprehensive forum with problem solving activities for those who want to gain

broader understanding of the latest energy cost reduction techniques and strategies. This

program is also ideal for professionals who require CEM® certification as recognition of

their expertise. On the afternoon of day five, the Certified Energy Manager examination is

administered.

http://www.nrcan.gc.ca/energy/software-tools/7465


15. LIST OF PARTICIPANTS NEESAP VALIDATION

WORKSHOP FEB 27, 2020

VENUE:

ROYAL VILLAS

DATE: 27/02/2020

NAME

NAME OF

ORGANISATION CONTACTS

EMAIL ADDRESS

Jose Luis Bobes SAEP +27 78 3992511

[email protected]

Babile Gama Defence 76933142

[email protected]

Almon Zwane E.C.O.T. 76353476

[email protected]

Sipho A. Dlamini ECOT 76124449

[email protected]

Sonke Dlamini ESERA 76025267

[email protected]

Lindokuhle

Simelane ESERA 76259451

[email protected]

Mzwandile Msibi ESERA 78022888

[email protected]

Machawe Made Ezulwini Municipality 76610068

[email protected]

Xolile Mphanga Ezulwini Municipality 78686062

[email protected]

Yamkelo Madi Ezulwini Municipality 76723493

[email protected]

Fisokuhle

Ndlangamandla Ezulwini Town Council 76791943

[email protected]

Dumisani Hlope H.M.L.S. 76122953

[email protected]

Lawy Modern M3 International SZ

+27 82 561

1031/79776418

[email protected]

Mzwandile Thwala MNRE 79526135

[email protected]

Zwela Ngozo MNRE 76541863

[email protected]

Mandla Vilakati MNRE 76063652

[email protected]

Takhona Khumalo MOA 79355595

[email protected]

Lungile P.

Shongwe MOH 76062925

[email protected]

Sifiso Mavuso MOH 76345062

[email protected]

Zandile

Ntshalintshali MOPS 76177393

[email protected]

Busisiwe Rejoice

Simelane MOPS - MSD

76048126/7909711

0

[email protected]

mailto:[email protected]





















Dlamini Johanne MoPWT

76143638/2409911

5

[email protected]/johnbhanyaza3

[email protected]

Amos Maziya MTAD 76219265

[email protected]

Msibi Mluleki REAESWA 76917613

[email protected]

Livingstone

Dlamini

Royal Swazi Spar

Holdings 78143040

livingstone.dlamini@suninternationa

l.com

Hilda dos-Ramos

Royal Swazi Spar

Holdings 76444642

[email protected]

Jorry

Mwenechanya SAEP +260977771980

jmwenechanya@southernafricaener

gy.org

Maria Mbengashe SAEP +27 82 781 2543

mmbengashe@southernafricaenergy

.org

Sifiso Dlamini Tifiso Energy 79922051

[email protected]

Dlamini Neliswa TQM Textile 76622937

[email protected]

Brian Lu TQM Textile 76027570

[email protected]

Mduduzi

Mathunjwa UNESWA-CSER 76155719

[email protected]

Dumisani Dlamini US Embassy 78029689

[email protected]

mailto:[email protected]/[email protected]

mailto:[email protected]/[email protected]
















16. REFERENCES

Best Practices for the financing of Energy Efficiency and self-use Renewable Energy in small

developing countries, Jose Luis Bobes, South Africa, 2016

Department of Energy EE regulations South Africa, 2015

Development of a tariff support mechanism and a connection charge policy for Swaziland, SERA

2016

EE Labelling. Southern African Renewable and Alternative Energy Association (SAAEA). Accessed 30

October 2019, at https://www.saaea.org/ee-labeling.html#

Energy Efficient Lighting and Appliances UNIDO, 2019

Energy Performance and Labelling Requirements for Specific Electrical Appliances and Equipment,

Department of Energy South Africa, 2012

Eswatini Electricity Company Annual Report 2018

Eswatini Energy Efficiency Policy 2018

Eswatini Energy Programme Concept Note, Green Climate Fund, November 2018

Eswatini National Development Plan 2019-2022

Eswatini Standards 2019

IEA (2010), "Energy Efficiency Governance: Handbook", IEA, Paris

https://www.iea.org/reports/energy-efficiency-governance-handbook

IIEC. Our Achievements. http://wwww.iiec.org. Accessed 30 October 2019, at

http://www.iiec.org/energy-efficiency-demand-side-management

Kingdom of Eswatini Energy Master Plan, 2034 (2018)

Kingdom of Swaziland Sustainable Energy for All Country Action Plan Final Report May 2014,

Kingdom of Swaziland Sustainable Energy for All Action Agenda, 2016

National Energy Efficiency Strategy Dept of Energy South Africa 2008

SADC Industrial Energy Efficiency Programme (SIEEP), 2018

SADC Renewable Energy Efficiency Strategic Action Plan SADC, 2016

SADC Renewable Energy and Energy Efficiency Status Report, SACREE, 2018

Standards and Labelling Programs International Overview, USAID, 2019

Sugarcane bioenergy in Southern Africa, Irina 2019

Swaziland Electricity Act 2007

Swaziland Energy Statistics 2017

The International Institute for Energy Conservation. (2019). Africa. Iiec.org. Accessed 30 October

2019, at http://www.iiec.org/experience/africa

The Multiple Benefits of Energy Efficiency and Renewable Energy, US EPA, 2016

The Renewable Energy and Energy Efficiency Partnership. (2019). The REEEP-commissioned report sets

the S&L baseline in Pacific Island Countries.


World Energy Perspectives. Energy Efficiency Policies 2016, World Energy Council

eswatini national energy efficiency strategy and …

Documents