Frequently Asked Questions: Municipal EEDSM

Frequently Asked Questions: Municipal EEDSM

Who is eligible for the EEDSM programme and can therefore be financially supported by the EEDSM programme?

The participation in the EEDSM programme is open to all South African municipalities. Please note that only municipal authorities can apply for funds. Applications by suppliers or independent third parties are not eligible and will not be considered.

What kind of measures can be supported?

The grants provided to municipalities are targeting measures that reduce the electricity consumption of existing public infrastructure. Typical projects include

  • Traffic lights
  • Street lighting
  • Lighting from high masts
  • Building infrastructure such as lighting and heating, ventilation and air conditioning (HVAC)
  • Water service treatment infrastructure equipment such as energy efficient pumps
  • Installation of energy management systems such as smart meters, building management systems and ripple controls.
How much is the financing from DoE and Treasury?

The Department of Energy and National Treasury finance up to 100% of the agreed technical energy efficiency measures via transfer of state funds to the municipalities taking part in EEDSM. The governmental grant covers costs related to:

  • The establishment of baselines, technical specification for proposed projects and business plans (inhouse and/or through external consultants);
  • Implementation of approved energy saving projects (investment in technology and installation, disposal of removed technology); and,
  • Project management and capacity building.
When is next deadline for sending proposals?

The next deadline for submission for the 2019/2020 programme is planned for September 2018. However, this deadline date depends on a final decision pertaining to the continuation of the EEDSM programme by the Department of Energy and National Treasury. We refer to the public tendering procedure. In general, the continuation of the EEDSM programme is secured until the end of the approved municipal financial year.Thereafter, the EEDSM programme’s continuation will then be subject to approval by parliament.

Which are the selection criteria for participation in EEDSM Programme?

The selection of municipalities for the respective annual budgets is based on following criteria:

  • Quality, viability and financial feasibility of proposed projects;
  • Past performance in the EEDSM programme (if applicable);
  • Former participation in governmental programmes in the field of energy and infrastructure; and
What are the duties and responsibilities of municipalities participating in the EEDSM programme?

The selected municipality commits itself to the following conditions and requirements:

  • The municipality appoints a staff member to be in charge of the entire project (i.e. a project manager);
  • The project manager meets the obligation to attend the mandatory workshops and to respond to Department of Energy’s requests in time;
  • The municipality provides sufficient  personnel for the successful implementation of the project on time;
  • The municipality takes full responsibility for the technical implementation and correct billing of the entire project; and,
  • The municipality increases public awareness about the project and its purpose through press releases, flyers, campaigns, etc.
Who could be contacted for questions on the application process?

For any further enquires on the request for proposal (RFP), please contact:

Are there any additional tips for execution EEDSM of experiences of other municipalities?

Based on past experience gained from participating in the EEDSM programme, the following tips on how to manage a municipal EEDSM project successfully are suggested below:

  • When applying for EEDSM programme funding, add your current basic energy audit to the application, even if it is not part of the official requirements. The quality assessment of the proposal forms part of the technical selection process. Additional information provided may be seen as an indicator of the readiness and commitment of the municipality to successfully participate in the EEDSM programme.
  • Once your municipality has been selected to participate in the EEDSM programme, adhere to the monthly submission of the expenditure and implementation report, even if there are no changes to be reported.
  • Communicate planned changes to your approved business plan before, and not after, implementation. Communicate progress and delays with respect to budget expenditures in a timely manner.
  • As the timeframes for project planning and implementation are rather tight, make use of the multi-annual framework contracts to speed up tender procedures.
  • Attend the four workshops per budget year and keep close contact with DoE officials in charge of the programme.
Is it necessary that the Municipal Manager signs all documents?

All official documents have to be signed by the respective municipal authority. The Municipal Manager may draft and sign a letter of delegation, which entitles the staff member in charge of the project to sign all respective documents on behalf of the Municipal Manager. A template for the delegation letter can be downloaded here.

For street lighting, are any other technologies eligible besides LED technologies?

With start of 2016/2017 EEDSM programme for street lighting, only LED applications are eligible.