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

5.1 Objective
The purpose of this guideline is to provide to both experienced and inexperienced program
managers, program evaluators, and M&V practitioners with tools to evaluate holistic evaluation
programs. Holistic evaluation programs not only include the engineering changes to make a project
more energy efficient, but also focus on the economic, social and environmental issues that would
support a sustainable project. These measurements will help to synthesise information in order to
effectively review approaches, standardise reviews and enable centralised tracking of evaluation
parameters.
For a program to be sustainable, it has to meet certain sustainability criteria:
1) Be supported by a good organisational structure, which includes, for instance, relevant
policies, regulations, incentives, competitions, awards, penalties, and human sensitisation;
2) Have a win‐win compliance among all the engineering, financial, social, and economic
performance indicators; and
3) Have necessary engineering support.
Four main aspects of an efficient system will be considered in a program evaluation: engineering,
economic, social and environmental aspects.
The difficulty is always to decide the balance between the various aspects in order to come up with a
feasible project, taking these four important aspects into consideration. The objective of this guide is
to indicate to program managers and evaluators alike, the basic and most prominent issues that need
to be addressed.
5.1.1 POET Efficiency
For the purpose of this guideline, measurement of energy efficiency is summarized to have the
following four components: performance efficiency (P), operation efficiency (O), equipment
efficiency (E), and technology efficiency (T). This POET classification maintains energy efficiency at its
broadest possible scope, taking all aspects of efficiency into consideration. The four components of
efficiency will be discussed below. Technology efficiency will firstly be discussed, since all other
efficiency components depend on the types of technology used.
It is important to note again that the sustainability of an energy program should include not only the
engineering aspects of energy efficiency, but will also include economic, social and environmental
feasibility.
5.1.1.1 Technology efficiency (T)
Technology efficiency is a measure of efficiency of energy conversion, processing, transmission, and
usage; and it is often limited by natural laws such as the energy conservation law. Technology
efficiency is often evaluated by the following indicators: feasibility; life‐cycle cost and return on
investment; and rates of energy conversing/processing/transmitting.
Technology efficiency is characterized by its novelty and optimality. On the one hand, ground
breaking and feasible novel technologies often defeat older peers and occupy the market quickly. On
the other hand, these novel technologies always challenge optimality through the pursuit of scientific
limits and the quest for new possible extremes.
5.1.1.2 Equipment efficiency (E)
Equipment efficiency is a measure of the energy output of isolated individual energy equipment with
respect to given technology design specifications. The equipment is usually considered being
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