Development of processes to improve sustainability of industrial IDM projects
Abstract
Eskom, the primary supplier of electricity in South Africa, is struggling to keep up with the country’s demand. This led to the creation of the Integrated Demand Management (IDM) Division which funds projects implemented by Energy Services Companies (ESCos). The IDM projects, also referred to as Demand Side Management (DSM) projects, are implemented by ESCos to reduce and manage the electricity usage on the demand side of the grid. In 2015, Eskom decided to change the DSM model to be more performance-orientated. This introduced a new funding model as well as an obligated maintenance phase. The new DSM model shifted all the risk involved with the DSM projects to the ESCos. A result of this shift in risk forces ESCos to manage these risks and adapt to the new problems arising under the updated DSM model. Unfortunately, ESCos have limited experience in sustaining projects for extended periods. This study will focus on developing processes which can be used as a guideline to assist the ESCo in solving issues as efficiently as possible. When the processes are implemented it can reduce the risk within the new DSM model. The first group of DSM projects under the new DSM model is nearly completed. This means that knowledge gained from these projects will be used within this study to assist in developing processes to sustain project performance. The developed processes are verified with a verification survey. The survey is given to multiple project engineers responsible for industrial DSM projects. Six project engineers with varied knowledge in the field of DSM research were requested to complete this survey. The results indicate that the processes score an average of 84%. The survey results verify that the processes meet the requirements of each objective in this study. The processes are validated by applying them to authentic industrial DSM projects. The DSM projects will be represented as case studies. Each process contains multiple steps which are applied by the ESCo to solve the sustainability issues encountered within each case study. Case study A consisted of a load shift project implemented on a pump station. The ESCo was able to increase the project performance from 0.2 MW to 3.28 MW with the applied processes, resulting in the project achieving 162% of the project target. Case study B consisted of a load shift project implemented on a mines’ refrigeration system. The ESCo was able to achieve 164% of the project target, increasing the project performance with 2.99 MW. The results obtained from the case studies show clear improvements. In some cases it was found that the DSM projects over-performed, thus increasing the profitability for ESCos to implement DSM projects. By applying the developed processes, the ESCo was able to increase the project performance of both case studies, resulting in an increased project sustainability. The results indicate that the processes can be used as a guideline to solve sustainability issues efficiently, thus proving that the processes meet the requirements of the study’s objectives.
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