SUNConferences, 29th Annual Conference of SAIIE

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PRACTICAL APPLICATION OF AN OBJECTIVE METHODOLOGY TO EVALUATE INDUSTRIAL ENERGY EFFICIENCY MODELS FOR THE RSA SECTION 12L TAX INCENTIVE
Lee-Ann Alexis Botes, Walter Booysen, Waldt Hamer, Marius Kleingeld

Last modified: 2018-10-09

Abstract


Section 12L of the Income Tax Act (1962) allows a significant tax rebate for quantified energy efficiency (EE) savings resulting from an energy saving measure (ESM). However, EE savings cannot be directly measured since it refers to the absence of energy use. Therefore, models are used to quantify EE savings. 
In order to have a high level of confidence in the reported EE savings, the development of multiple models is recommended. These various models should be objectively evaluated to ensure that the final selected model adheres to the multiple requirements associated with 12L. This paper provides a brief overview of an evaluation and model selection methodology. The paper primarily focusses on the practical application of the methodology on industrial ESMs.
The methodology is applied to three case studies: boilers, blast furnace and compressed air network ESMs. The evaluation results are used to rank the modelling options and recommend a final model. The results obtained are validated by comparing them to independent SANAS accredited measurement and verification results. The results show a 10% to 33% variance in the potential claim value.  This significant variance highlights the importance of presenting a transparent and objective model selection process.

 


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