SAPVIA 12th Management Committee Meeting, 5 February 2013, 14h00-16h00 pm

MINUTES of MEETING

Locations:

Johannesburg:

Cape Town: Webber Wentzel, 15th

Floor

Convention Towers, Heerengracht St, Foreshore,

CT

Call Natalie on 083 445 2992

Conference bridge number: 0862 000 000

Code: 41817

Participants:

Company Participant Location

SAPVIA Natalie Bezuidenhout Cpt

APS Chris Haw Cpt

Soitec Vinni Bellini Cpt

Kabi Solar Mike Levington Jhb

Matajiri Projects Tumi Mphahlele Jhb

Webber Wentzel Rainer Nowak Cpt

Romano Alexi Romano Cpt

Emzansi Engineers Sipho Madonsela Cpt

Apologies: Davin Chown (Mainstream)

Ryan Hammond (Solairdirect)

ACTION TABLE

Person Action Status

Natalie & Davin Admin assistant:

� Find new candidate for Office Administrator position; Davin

and Natalie to interview candidate

� Completed: position has

been filled

All Adopt a member scheme:

� Group categories have been agreed on, Natalie to group

members accordingly;

� Relevant members to be notified & asked to sign letter of

agreement

� On hold temporarily

All Board member roles:

� Manco to provide feedback on Davin’s list of board member

roles;

� Once finalised, tasks to be assigned to board members

� Manco to provide

feedback by 15 Feb 2013

Natalie & Davin /

Mike

Newsletter:

� Note from Chairperson to be drafted

� Once drafted, newsletter to go out

� Awaiting approval from

Chairperson on revised

draft

Manco Marketing strategy:

� Manco to provide feedback on quote from proposed

facilitator

� Manco to provide

feedback by 15 Feb 2013

Rainer & Natalie Rooftop PV Sub-Committee:

� TOR’s for this sub-committee to be refined into a template

that can be used for all future sub-committee’s moving

forward;

� Natalie to start soliciting volunteers for new sub-committee

� In process

� In process

Natalie & Tasmiyah SAPVIA member function:

� VIP guests to be invited and formal invite to be sent to

members;

� Source potential venues;

� Source potential MC’s & entertainment;

� Look into potential awards ceremony at event

� In process

� Completed: venue has

been booked

� Manco to confirm

preference for MC

� To be discussed further

Ryan & Mike MTRMP:

� Position paper to be drafted as to why RE should be

considered over coal in the MTRMP (to be presented to DoE)

� On hold until end Feb

Natalie Finance:

� Membership renewals to be sent out

� D/L: 15 Feb 2013

Mike Small projects IPP programme: IDC initiative:

� Mike to send letter to IDC requesting / proposing that SAPVIA

formally participate in their initiative

� D/L: 15 Feb 2013

Rainer ECSA:

� Draft introductory letter

� D/L: 15 Feb 2013

Mike IDC initiative: Small IPP projects programme:

� Mike to draft letter to IDC proposing formal participation by

SAPVIA.

� D/L: 15 Feb 2013

1. General administration

1.1. SAPVIA Management Board:

1.1.1. Revision of board member roles (Rainer& Vinni & Davin)

Manco to provide feedback on proposed board member roles: D/L 15 Feb 2013

1.1.2. Adopt a member scheme (Rainer & Vinni)

Proposed categories:

- Project Developers

- Wholesale distribution and Equipment Suppliers

- Manufacturers

- Financial services

- Installation / Construction services

- Permitting

- Local

- International

- Other (research / academic / legal, recruitment, etc)

On hold - will tie in with SAPVIA marketing strategy

1.2. SAPVIA Memberships

1.2.1. Membership base:

100 registered members

10 applications in process

1.3. Finances (Ryan) (See Addendum A)

SAPVIA’s current balance is at R511 529.00. Expected variable costs for the next six months

are R120 171.00. Expected fixed costs for the 6 month period are R253 351.00. Total fixed

and variable costs for the same period are R373 522.00.

Membership renewals are due in April. Should all members renew, SAPVIA will have a

healthy balance of approximately R1,8 million. Should only half SAPVIA’s members renew,

our balance would still be at a healthy R1 million.

2. Communications

2.1. Marketing plan – potential points of inclusion:

2.1.1. SAPVIA conference

2.1.2. Launch of research studies

2.1.3. Value of SED aspect of REIPPP

To this regard it was agreed that SAPVIA should try, from its members, ascertain the

value of the R1& R2 projects over the next 20 years to the communities they serve.

Chris volunteered a contact of his who could draft the parameters for this type of

research.

2.1.4. Education / training / youth outreach programmes

It was debated whether Mark Beare was the most appropriate person to assist with

developing SAPVIA’s marketing strategy. Although he could provide valuable input

on whom within government SAPVIA should target with which messages, we would

need other specialists to advise on how best to reach our other target audiences. It

was proposed that it would be beneficial to have another (marketing or PR)

specialist present at the workshop to advise on the latter. It was agreed that the

Manco would review Mark Beare’s proposal for SAPVIA’s marketing strategy

workshop and Vinni offered to try and get Mark to bring his fee down for SAPVIA.

Natalie is to re-send the PR proposals that she has on hand.

3. Research Studies

3.1. Localisation study (Davin)

The study is in its final stages with the majority of work completed. Currently EScience is

busy remodelling some of the assumptions, and analysing and developing the

recommendations. Public and Government consultations need to take place before the end

of February and the last PSC meeting is scheduled to take place at the end of this month.

The study should be finalised and ready for release beginning to mid-March.

3.2. Stellenbosch University / Green Cape / SAPVIA rooftop PV market research study:

Hessequa Municipality

The purpose of this study is to review the current technical, regulatory and financial

frameworks governing (or constraining) the rooftop PV market in South Africa, and

benchmark it against international best practices. Investigate different technical, financial

and socio-economic scenarios to stimulate the rooftop PV market in South Africa and

provide recommendations on how to implement the most promising of these in a typical

midsize municipality (see addendum B for full TOR).

Current status of the study: The business as usual scenario has been completed, i.e.: if no

one installs PV and PV installations continue happening “illegally”. Three different scenarios

are being used to compare to the business as usual case, namely:

• Low PV uptake;

• Medium PV uptake; and

• High PV Uptake

These scenario investigations should be complete with a draft report ready by the week of

the 10th

of February. It is unsure whether this draft report will be available for external

reading, however, the final report will be finished by the end of February.

3.3. Market Analysis & The Value of Solar (Davin)

When SAPVIA met with F&S and Arup on the 7th

of February the studies were 75% complete.

The focus of the meeting was to finalise the main messages to put across and determine the

best way to link this broad range of data to provide a clear, focussed summary of the benefit

of PV to South Africa. The studies are due to be concluded mid-Fib and ready for release end

Feb.

Regarding Arup’s function and performance in assisting with these studies, Chris asked to

get a feel from the rest of the Manco whether they felt SAPVIA was getting enough return

on its investment, or whether SAPVIA should compare the costs and advantages of

employing someone full time to take on that role.

3.4. Grid Study (Mike)

It was proposed that SAPVIA should wait until Eskom’s GCCA report is released before

embarking on its own study. Should Eskom’s report fall short in any areas, SAPVIA’s study

should have the purpose of supplementing these areas.

4. Government Lobbying

4.1. Grid Access Sub-Committee (Sipho)

Sipho discussed the activities of the sub-committee to date (see addendum C). It was also

debated whether SAPVIA should enter into a formal relationship with ECSA, the outcome of

which was that everyone felt a formal relationship with ECSA at this stage was premature as

SAPVIA is not accredited, and that ECSA would approach SAPVIA when it required expert

advice. It was suggested that SAPVIA enter into a less formal agreement with ECSA and

include a disclaimer (in relation to SAPVIA’s lack of accreditation) in the agreement. Rainer

volunteered to draft an initial letter of introduction.

Sipho also provided feedback on the Eskom held at the end of 2012 with Mike (see

Addendum D).

4.2. Rooftop PV subcommittee (Alexi)

Alexi notified the Manco that the sub-committee is currently going through the process of

electing the new sub-committee and chairperson. Once this process is complete the

committee can proceed with allocating tasks among its members.

Alexi also discussed his company’s participation in the IDC’s initiative concerned with the

small IPP projects programme. It was agreed that SAPVIA should write to the IDC and

propose that SAPVIA formally participate in their initiative instead of them speaking to

individual members. Mike volunteered to draft the letter to the IDC in consultation with

Rainer.

4.3. SAREC update (Davin)

SAREC’s steering committee meetings will only resume once the GIZ funding has been

finalised. In the interim SAREC presented feedback on Eskom’s MYPD3 application hearing

held in January this year.

4.4. SEA

SAPVIA participated in a workshop hosted by the DEA and CSIR on the 24th

of January where

the rationale for this proposed strategy was explained and where the industry bodies had

an opportunity to provide feedback. Many issues were raised from industry side and

SAPVIA will be engaging closely and regularly with the DEA and CSIR on this project. The

next focus which will focus solely on solar is being scheduled for the week of the 21st

of Feb.

4.5. SETRM (Tumi

4.5.1. SAPVIA to appoint rep to attend PSC meetings for SETRM

Tumi gave feedback on the SETRM PSC meeting she attended in January, namely: The

purpose of the SETRM is to bring government departments and all stakeholders together to

develop a roadmap that will consolidate all disparate efforts to create a solar technology

(PV & CSP) roadmap, and that will result in a more coherent and realistic plan that takes into

account key national and international imperatives. The roadmap will be based on the IEA

(International Energy Agency) methodology.

SAPVIA together with selected national departments, academia and local/international

institutions of interest, were asked to be members of the extended Project Steering

Committee (PSC) in order to provide the crucial input into the development of the roadmap.

SAPVIA attend the second PSC meeting held on the 23rd

of January 2013. The main purpose

of the meeting was to agree on the terms of reference (TOR) of the PSC. As this was the

second meeting of the committee, the aim was also to bring up to speed the various non-

governmental organisations that were invited to join the extended steering committee.

Key discussion points/next steps:

• The ToR was approved with minor changes. It was agreed that the amendments that

SAPVIA and a few other organisations proposed related to the content and scope of

the project itself, which will still be agreed to at the project kick-off. The points

were, however, still noted.

• The PSC meetings will take place monthly in Pretoria for the duration of the project.

• The plan is to have the first draft around July of this year – for final sign-off in

November if all goes well. A project manager is being recruited and will provide

more concrete dates as soon the scope is finalised.

• GIZ has agreed to provide the project manager and are already advanced in terms of

appointment – an expression of interest process was followed and shortlisted

consultants were requested to provide proposals. The final candidate is being

interviewed in the next week.

• The plan is to finalise appointment of the project manager before the steering

committee meeting so that the focus moves to the scope and project plan.

It was agreed at this Manco meeting that Tumi would represent SAPVIA at the SETRM PSC

meetings, and that Mike would be the alternate representative.

5. Events

5.1. SAPVIA Members Function (Natalie)

6. Any other business?

6.1. Board member terms

It was agreed that the restriction on the length of terms for board members would be

dropped. Rainer offered to assist with implementing this change. All of SAPVIA’s members

would need to be consulted regarding this.

6.2. SAPVIA fee structure

It was agreed that this item would form part of SAPVIA’s marketing strategy.

6.3. Response to Round 3 postponement

It was agreed that SAPVIA would draft and send an official response to Wolsey Barnard,

with the essence of the letter conveying the uncertainty such delays cause within industry.

Mike offered to draft the letter and circulate amongst the rest of the Manco for approval.

7. Next Steps

7.1. Date for next meeting: Tuesday, 16 April 2013, 14h00 – 16h00.

Addendum A: Six Month Budget Forecast

SAPVIA projected budget: Feb - July 2013

1. Current Balance: R 511 529.00

2. Total Expected Incomes (Feb -July 2013): R 1 509 000.00

2.1. Sponsorships (Linkd Study, Networking Event): R 28 947.68

2.2. New Memberships: R 1 433 499.67

2.3. Outstanding Membership Fees: R 28 027.40

3. Total Expected Expenditure (Feb - July 2013): R 373 522.00

3.1. Total Fixed Costs (Salaries, website maintenance, tax admin fees): R 253 351.00

3.2. Total Variable Costs: R 120 171.00

3.2.1 Breakdown of Variable Costs:

3.2.1.1. Events [Networking Events]

3.2.1.2. Research Studies [Linkd Study; Arup management Fee; other Research Studies] R 99 464.00

3.2.1.3. Travel R 10 000.00

3.2.1.4 EPIA membership fee R 10 707.10

Expected available budget for Feb - July 2013 (Current Balance + Total Expected Incomes - Total Expected Expenditure) R 1 647 007.00

Addendum B: TOR for Rooftop PV Market Study

Addendum C: SAPVIA Grid Access Sub-committee activity report:

1 The creation of a SAPVIA Grid Access Technical Sub-committee

“Terms Of Reference” that will govern membership issues;

2 Drafting of an organogram of the relevant contact people at

Eskom which would be relevant to SAPVIA and its members;

3

Liaising with the Engineering Council of South Africa (ECSA)

regarding the Grid Code acceptance and the role they would in

the IPP sector as a whole. Currently the proposed policy is for

SAPVIA to build a relationship with ECSA as they (ECSA) would

most probably rely on industry for relevant information;

4

Working closely with the Eskom Grid Code working group to

ensure that comments from technical experts in the industry is

taken into account in the Grid Code document review. When this

document is finally promulgated it will be distributed to SAPVIA

members;

5

Working closely with Eskom in order to ensure information

sharing and the establishment of a working relationship with

industry and primarily SAPVIA members;

6

Ensure that SAPVIA is represented at Eskom’s Transmission

Development Plan (TDP) presentation meetings. The

presentation from the TDP meeting has been circulated amongst

the committee and the members. Discussions with Eskom has

ensued on how future versions could be adapted to include the

needs of PV developers;

7 Discussions on the progress of Eskom self-build policy plans for

transmission networks;

8

Discussions on project transmission line infrastructure ownership

issues and the need for a distribution licence when traversing

multiple properties;

9

Progress of Upington grid strengthening work planning is

discussed on a regular basis with Eskom. The creation of a map

depicting where the main hubs of solar PV activity are and would

be preferred are under discussion;

10

Future amendments to the current Eskom grid connection

process in order to improve the efficiency for developers and

Eskom are under discussion;

Addendum D: Feedback from Eskom meeting with SAPVIA (Dec 2012):

Representatives of SAPVIA’s management board and the chairperson of SAPVIA’s Grid

Access Sub-Committee were to hold a workshop with representatives of Eskom’s Grid Access

Unit (GAU) on December 13. The purpose of the session was to establish a strategic link

between SAPVIA and Eskom’s GAU regarding the grid connection solutions for renewables in

the future. The workshop did not convene but instead there was a very informal meeting

with Mr. Wolfgang Bohmer, ______________ and Mike Levington. This took place over a

snack in the restaurant. The Chairperson of the Grid Connection Subcommittee couldn’t

attend for personal reasons. What came out of the informal discussion was that for various

reasons, some of which are outside Eskom’s control, infrastructure planning for grid

connection has become a serious challenge. Firstly, each connection has to be assimilated in

the grid independent of any other possible connections. This takes a lot of time and

resources especially if there also frivolous applications for consideration. Eskom has since

come out with a letter where Eskom is currently developing a geospatial study to determine

the least-cost options to strategically integrate all IPP’s that have applied for grid

connection. The purpose of the study is to ensure that RE IPP integration is done in a

coordinated manner and that the required infrastructure is adequately planned for, and that

critical servitudes are secured in time in order to expedite IPP integration. Secondly, Eskom

is unable to predict what is happening within the perimeters of their customers beyond

Eskom’s supply meters. Any electricity generation in those areas impacts on the planning for

their transmission and distribution infrastructure.