Energy efficiency and Demand Side Management Program ... - Eskom

Strategic positioning and restructuring of national economy: Potential for global leadership
and export of key energy technology(ies); contribution to emerging Green Economy Strategy;
alignment with broader transition to a low carbon economy;
Economic aspects Technology Equipment Operation Performance
Economic issues of a
program (e.g. Cost, local
content, financial/price
risk, financing prospects,
strategic positioning and
restructuring of national
economy, etc.)
Items which might be
considered in scoring (e.g.
pre‐ and post‐
implementation data and
impact from the program
(savings, etc.))
Scores (out of 100)
Weighting factors (in
percentage)
Subtotal score
6.1.5 Financial Viability
Table 4 Program evaluation of economic aspects
Assessing the financial viability of a project or a program is primarily concerned with the direct
project costs and involves setting up a project plan and budget and determining the intended
investment in assets. Project income statements and balance sheets will aid the project manager to
assess the viability of the project in the usual way. Assessment of the financial viability of a project is
normally done by an expert well versed in all the contributing factors of an evaluation and we
recommend that experts be used in order to ensure that the assessment is enforceable.
6.2 Understanding Evaluation Results by Comparison Matrices
6.2.1 Comparison Matrices
Program evaluation panel can select important issues for evaluation, and prepare the above four
tables for evaluation, in conjunction with the financial viability study. After the scoring of the five
figures on engineering, environmental, social, economic, and financial aspects, a comparison matrix
can be further established to understand the output from the program. Table 5 serves as an example
of such a comparison matrix, where it can be read, for the impact from this program, that for every
MWh saved, there will be 20/500=0.04 job∙year created; and similarly, for every ton of CO2 reduced,
there will be 0.02 job∙year created. It shows also that the cost for each created job∙year is
R10000/20=R500. The figures in the table could be ones taken from the previous four tables and the
financial viability study. The figures in Table 5 are indicative.
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