ENERGY EFFICIENCY IN HOUSING

Prepared by:Pierre Venter

19 March 2014

2BASA MEMBERSHIP

MEMBERS: ALL COMMERCIAL BANKS REGISTERED IN TERMS OF THE BANKS ACT, INCLUDING INTERNATIONAL BANKS WITH A BRANCH IN SA (32 MEMBER BANKS, 48 COMMITTEES), SECRETARIAT FOR SADC BANKING ASSOCIATION

HUMAN SETTLEMENTS CLUSTER COMMITTEES :

PROPERTY CLUSTER

PHYSICAL INFRASTRUCTURE

SUSTAINABLE FINANCE FORUM

AGRICULTURE

SUSTAINABLE FINANCE FORUM:

CODE OF CONDUCT FOR SOCIAL & ENVIRONMENTAL RISK MANAGEMENT

EQUATOR PRINCIPLES

STOCK EXCHANGE SRI PARTICIPANTS

PRI SIGNATORIES

INTEGRATED REPORTING COMMITTEE

TRAINING FACILITATED:o VALUERS GUIDE FOR CONTAMINATED LANDo INTRODUCTORY COURSE FOR SOCIAL & ENVIRONMENTAL RISK MANAGEMENT FOR BANKERS

3POSITION OF BANKING SECTOR

BASA IS FULLY SUPPORTIVE OF THE NEED FOR INCREASED LEVELS OF ENERGY EFFICIENCY IN PROPERTY (COMMERCIAL & INDUSTRIAL, RESIDENTIAL HOUSING)

OUR MEMBERS ARE BOTH SPONSORS AND MEMBERS OF GREEN STAR SA AND RECENTLY SPONSORED THE RATING TOOLS FOR INTERIOR DESIGNS HOUSING

WE ARE MEMBERS OF A NUMBER OF ENVIRONMENTAL INTERNATIONAL BODIES INCLUDING UNEPFI WHERE ONE OF OUR MEMBER’S IS CO-CHAIR, CHAIR OF THE AFRICAN TASK TEAM AND A MEMBER OF THE UNEPFI PROPERTY WORKING GROUP (INITIAL FOCUS COMMERCIAL, BUT THIS WILL SHIFT TO INCLUDE RESIDENTIAL IN DUE COURSE)

4BARCLAYS AFRICA GROUP

ROOF ALLOWS NATURAL LIGHT THROUGH

NATURAL VEGETATIONENVIRONMENT PROVIDES

A PLEASANT ENVIRONMENT

LARGE CENTRALATRIUM – BUILDING

STRADDLES TWOBLOCKS, STREET

PASSES UNDERNEATHARROW

GAS POWERED ENERGY –NOTE SIZE OF PERSON

HEAD OFFICE: TOWERS WEST (5 STARGREEN STAR BUILDING

KEY ELEMENTS OF THE BUILDING INCLUDE:• 11,2 MW GAS-POWERED ENERGY CENTRE• LARGEST GREY WATER RECYCLING

SYSTEM INSTALLED IN A BUILDING INSOUTH AFRICA

BARCLAYS TOWERS WEST (INTERNAL VIEW)

5FIRSTRAND GROUP LTD

PORTSIDE BUILDING – CAPE TOWN SA

FIRST HIGH RISE BUILDING TO OBTAIN 5 STAR RATING

ALL NEW PROVINCIAL HEAD OFFICES AIMING FOR 4* RATINGS –

• NEW NAMIBIA OFFICES - FIRST GREEN STAR BUILDING IN THECOUNTRY

• SAVINGS ACHIEVED THROUGH ENERGY EFFICIENCY INITIATIVESIN THE FINANCIAL YEAR WAS ZAR 62, 6 MILLION AND AREDUCTION OF 58, 7 MILLION KWH’S AGAINST BASELINE(2007/2008)

• ECOENERGY LOANS FOR COMMERCIAL CLIENTS TO MAKEPROPERTIES MORE ENERGY EFFICIENT (OVER R 25M INVESTED)

FAIRLAND OFFICE PARKJOHANNESBURG SA

• ECO DESIGN AWARDS

• ENERGY EFFICIENCY AWARDS

6INVESTEC BANK LTD

FEATURES INCLUDE:

GLASS INNOVATION USAGE AND NATURAL LIGHT, MOTION SENSOR LIGHTING, WATER RECYCLING, ADVANCED BUILDING MANAGEMENT SYSTEM

KWA-ZULU NATAL REGIONAL OFFICE

7NEDBANK LTD

NEDBANK HEAD OFFICE FIRST COMMERCIAL BUILDINGTO RECEIVE A 4 STAR RATING IN SAHAS RECEIVED TWO ADDITIONAL 4 STAR RATINGS

FEATURES INCLUDE:

• INCREASED FRESH AIR RATES TO THE BUILDING AND INTERNALCO2 MONITORING AND CONTROL

• ENERGY-EFFICIENT CENTRAL AIR-CONDITIONING PLANTINTELLIGENT, ENERGY-EFFICIENT LIGHTING SYSTEM

• WATER EFFICIENT FIXTURES AND FITTINGS, RAINWATERCAPTURE AND RECYCLING, AND REDUCED POTABLE WATERREQUIREMENTS FOR LANDSCAPING

• WASTEWATER IS CAPTURED FOR RECYCLING AND ONCETREATED, IS REUSED IN COOLING TOWERS FOR TOILETS ANDIRRIGATION OF THE INDIGENOUS GARDEN. THIS SYSTEMDELIVERS A WATER SAVING OF +/-60%.

• AN 'INTELLIGENT' AIR CONDITIONING MONITORING ANDCONTROL SYSTEM

• THE DIGITAL ADDRESSABLE LIGHTING INTERFACE (DALI)SYSTEM MONITORS DAYLIGHT LEVELS AND DIMS LIGHTINGWHEN NATURAL LIGHT IS SUFFICIENT

• MOTION AND DAYLIGHT SENSORS DETECT IF PEOPLE ARE IN ASPACE, AND IF NOT, SWITCH OFF THE LIGHTS

• LOW-FLOW TAPS, DUAL FLUSH TOILETS AND VARIOUSINNOVATIVE WATER COLLECTION, STORAGE, ANDDISTRIBUTION SYSTEMS

8STANDARD BANK LTD

• STANDARD BANK’S NEW 5-STAR GREENBUILDING HAS A 1MW GAS-BASED TRI-GENERATION (CCHP) POWER PLANT

• IT HAS ALSO INSTALLED ROOFTOP SOLARWATER HEATING AND SOLAR PVS ON ITSHEAD OFFICE BUILDING

• IT RECEIVED A 6 STAR INTERIORS GREENSTAR RATING

• FINANCIAL TIMES/ IFC SUSTAINABLEBANK OF THE YEAR (AFRICA AND MIDDLEEAST)

• CORPORATE KNIGHTS: RATED 98 OF 100MOST SUSTAINABLE COMPANIES

• NEWSWEEK GREEN RANKINGS (TOP RATEDSOUTH AFRICAN COMPANY)

9ABSA

2 INTERNATIONAL HOUSING COMPETITIONS : 2005/2006: “NATIONAL ABSA NHBRC HOUSING INNOVATION COMPETITION” – SOSHANGUVE, GAUTENG (ERIC

MOLOBI INNOVATION HUB)

2008/2010: INTERNATIONAL INNOVATIVE HOUSING AND SUSTAINABLE ENERGY EFFICIENCY COMPETITION”, WESTERN CAPE, MBEKWENI (DRAKENSTEIN)

ABSA DEVCO : 19000 SITES, PRICED BETWEEN R430 000-R600 000, OVER A SIX-YEAR PEDIOD

10FNB

FNB IN CONJUNCTION WITH SASOL AND TOWER TECHNOLOGIES:

HOMES FROM MINING AND MANUFACTURING BY-PRODUCTS PRE-BUILT PANELS DERIVED FROM FLY ASH AND GYPSUM PANELS ARE FACTORY MANUFACTURED TO ENSURE CONSISTENT QUALITY AND RENDER AN 80% WEIGHT

SAVING RAW MATERIALS (WASTE) USED DURING PRODUCTION ENSURE A LOW CARBON FOOTPRINT AND THE

SYSTEM IS SABS TESTED AND CERTIFIED COST SAVING OF BETWEEN 10% AND 30%

COSMO CITY

11FNB (CONT.)

FNB/GIZ PILOT (2010) : SOLAR WATER GEYSERS (SWG) AND OTHER THERMAL INTERVENTIONS LIKE ISOBOARD CEILINGS AND INNOFILLA VERMICULITE FLOOR SLABS REDUCTION 1.4 TONNES CO₂ (93% DUE TO SWG INSTALLATION)

SAVING OF 17.3 KWH/M² pa AVERAGE PAYBACK PERIOD 3 YEARS

(INCLUDES SWG REBATE)

12ECO-ESTATE

CROSSWAYS FARM VILLAGE IN THE EASTERN CAPE

560 HA FARMLAND SURROUNDED BY NATURE RESERVES

INCLUDES HOMES, SHOPS AND OUTDOOR FACILITIES, LIGHT COMMERCIAL UNITS AND A WORKING FARM WHOSEPROFITS ARE SHARED AMONGST THE COMMUNITY

BUILDING RESTRICTED TO PORTION OF THE LAND AND ONE THIRD CONSERVATION

LOCAL CRAFTSMEN HARVEST WOOD FROM ALIEN VEGETATION FOR HEDGES, FENCES, STREET SIGNS, BENCHES,ETC.

STRICT ARCHITECTURAL GUIDELINES THAT BLEND THE ENTIRE DEVELOPMENT WITH THE SURROUNDINGLANDSCAPE

ROOF AND STREET RAIN WATER HARVESTING S AS WELL AS SOLAR HEATING VITAL TO VILLAGE’S SUSTAINABILITY

BOREHOLES, IRRIGATION DAMS & WATER PUMPED FROM NEARBY RIVER, WILL PROVIDE THE VILLAGE’S NON-POTABLE NEEDS. WATER FROM THE STATE-OF-THE-ART SEWERAGE TREATMENT PLANT WILL FEED INTO AMANMADE WETLAND AND BIRD RESERVE. FROM THERE, THE WATER WILL RUN INTO AN IRRIGATION DAM AND BEUSED TO IRRIGATE PARKS AND PUBLIC SPACES

LOCAL RECYCLING WILL TAKE PLACE ON THE FARM

RECYCLABLE GARBAGE WILL BE COLLECTED BY THE VILLAGE’S RECYCLING PLANT WHILE A PRIVATECONTRACTOR WILL REMOVE THE REMAINING NON-RECOVERABLE WASTE. THIS SYSTEM ALSO ALLOWS FORCOMPOSTING TO REDUCE THE VOLUME OF ORGANIC MATTER THAT GOES INTO LANDFILLS

FUNDED BY INVESTEC

13STANDARD BANK

REGULARLY HOLD EXHIBITIONS OF GREEN TECHNOLOGY TO PROMOTE AWARENESS OF HOW THESE TECHNOLOGIES WORK AND HOW CONSUMERS CAN SAVE MONEY

STANDARD BANK INSURANCE BROKERS HAS FOR THE PAST THREE YEARS ENABLED CUSTOMERS TO SWITCH TO SOLAR WATER HEATERS WHEN REPLACING GEYSERS

AN ACTIVE PARTICIPANT IN A GREEN GEYSER INITIATIVE BY THE SHORT TERM INSURANCE INDUSTRY TO INCREASE AVAILABILITY AND UPTAKE OF GREEN GEYSERS AND IMPROVE PRICING

USING THE FORWARD SALE OF CARBON CREDITS STANDARD BANK HAS ENABLED THE ROLL OUT OF MORE THAN 100,000 LOW PRESSURE SOLAR WATER HEATERS ON LOW INCOME HOUSEHOLD ROOFS.

14INNOVATIVE (ALTERNATIVE) BUILDING TECHNOLOGY (IBTS)

THE COMING OF AGE FOR ENERGY EFFICIENT HOUSING TO SUPPORT DELIVERY

FACILITATES SCALE ASSOCIATED INFRASTRUCTURE OPPORTUNITY IMPROVED AFFORDABILITY (UTILITIES)

PRE-REQUISITES:

QUALITY – IBTS MUST MEET/SURPASS BRICK & MORTAR QUALITY OR STANDARDS ABILITY TO EXTEND HOME AFFORDABILITY – LABOUR AND PRODUCT SAVINGS TO ALLEVIATE THIS MAJOR CONSTRAINT SPEED OF CONSTRUCTION PRODUCT ATTRIBUTES – ROBUSTNESS, THERMAL, ACOUSTICS, FIT FOR PURPOSE, WATER

PENETRATION, ENERGY EFFICIENCY, IMPACT ETC.

NHBRC RATIONAL DESIGN MANUAL WHERE AGREMENT SA CERTIFICATION NOT IN PLACE (2006) ACCEPTABLE IBT SYSTEMS ESTABLISHED FOR MORTGAGE PURPOSES ALSO CATEGORISED FOR SOCIAL PREFERENCES/ACCEPTANCE MORE THAN 200 PRODUCTS HAVE NHBRC ACCREDITATION

15CHALLENGES

SANS 10400-XA ONLY BEING APPLIED BY CAPE TOWN AND SELECTIVELY BY OTHER MUNIS.

POLICY UNCERTAINTY - ESKOM BLOWING HOT AND COLD – SWG REBATES

PRODUCT UNCERTAINTY (EDUCATIONAL NEED, QUALITY CONTROL)

STATE “PLAYER AND REFEREE” – ESKOM, ISMO, MUNIS, IPPs, CO-GENERATORS ETC.

BEHAVIOURAL ECONOMICS (PRICE POINT NOT YET REACHED) DEVELOPER DOWN COST CURVE CASH STRAPPED CONSUMERS FINANCIAL BENEFITS VS COST

ENERGY EFFICIENCY RETROFITS (ADDITIONAL COST OF AT LEAST R15-20K, WITH PAYBACK OF 5 YEARS PLUS)

ENERGY EFFICIENCY NEW-BUILDS (ADDITIONAL COST OF BETWEEN 2,5% AND10%) SOCIAL VS COMMERCIAL BENEFIT

16OPPORTUNITIES

COST PUSH: ADMINISTERED PRICES

1B/1B - SAVINGS R250 PM 2B/1B – SAVINGS R400-450PM 2B/2B - SAVINGS R600-800 PM

SANS 10400-XA

STATE LEADERSHIP ROLE REQUIRED POLICY CERTAINTY TO BE A “MARKET MAKER” – SUBSIDY HOUSING (OWNERSHIP & RENTAL), DEVELOPERS OTHER

SEGMENTS INCENTIVES (TAX REBATES, SURPLUSES SOLD INTO GRID AT ATTRACTIVE RATE,

REPLACEMENT GEYSERS ETC.) GLOBAL GREEN FUND ?

CONSUMER SURVEYS POSITIVE

GREEN STAR SA (HOUSING)

ARE WE SITTING ON EVE OF GREEN HOME LOANS, GREEN FINANCE (PRODUCTS)?

ADMINISTERED PRICES CONTINUE TO ADD TO CURRENT INFLATION

-3

0

3

6

9

12

15

2009 2010 2011 2012 2013

Administered Prices (Includes electricity,water and transport prices

Targeted headline consumer prices

17QUESTIONS