Energy Mechanism Conservation. replacement of HPS/ MV street lights to LED street lights For Metro & Local Municipalities

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2 Energy Mechanism Conservation replacement of HPS/ MV street lights to LED street lights For Metro & Local Municipalities

3 SZZT SA CEO Dr Charlie Huang profile Deputy Mayor of Newcastle & Exco Councillor ( ) Member of Parliament of RSA ( )

4 SZZT GROUP ARE LOCATED SZZT South Africa (Pty)., Ltd Head Office& Factory: Newcastle, KwaZulu-Natal,South Africa Cape Town Office, South Africa SZZT Zimbabwe (Private) Ltd Harare, Zimbabwe

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6 SZZT AC LED Products IP 66 CCT: > 4000K Lm /W: 140 CRI: > 70 Power Factor: 0.95 Solid design for durability High Efficiency LED 180 W

7 GALAXY SERIES high strength ultra white glass 50 W W D i e - c a s t i n g M a g n e s i u m A l u m i n u m A l l o y A d v a n c e c o o l i n g d e s i g n IP 66 CCT: > 4000K Lm/W: 140 CRI: > 70 Power Factor: 0.95 Lifetime: 50, 000 hr H i g h E f f i c i e n c y L E D H i g h i m p a c t g l a s s

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11 Energy Mechanism Conservation EMC for Local Government Street lighting Project

12 1. EMC Concept EMC is a successful international Energy Efficient Financing Model SZZT South Africa (Pty) Ltd (Local company) is to invest in government streetlighting replacement of all HPS/MV to LED in 6 months Saving cost to be paid back to investment of 10yrs contract Without the need for budget shortfall

13 6. EMC Project Analysis of saving benefit (Case study: Newcastle KZN) HPS Total unit Power factor Actual power usage (W) 1yr Power usage (Kwh) Electricity cost per yr Energy use over 10yrs Cost over 10yrs 150W ,220, ,379, ,205, ,799, LED Total unit Power factor Actual power usage (W) 1yr Power usage (Kwh) Electricity cost per yr Energy use over 10yrs Cost over 10yrs 70W ,388, ,888, ,884, ,883, Total Savings R 24,916,798.00

14 2. SZZT EMC Project Model 1. SZZT investment in LED Streetlights for LM 2. LM: No need new budget to replace HPS to LED 3. LM: Save capital budget and 4. Long-term of 10yrs saving cost plan 5. SZZT After service in the contract period 6. After contract - All LED lights transfer to LM

15 3. EMC Process 1. Sign MOU between LM & SZZT 2. SZZT send tech team to research & study of saving record etc. 3. SZZT send proposal with saving & beneficial report to LM 4. Monitor & simulate project to eatables the basic saving cost before & after retrofit to LED

16 3. EMC Process 5. After send draft contract and sign formal contract 6. Start project design & Installation program (6-10 months) 7. Inspect of replacement after LM approve 8. SZZT need to M&R all LED lights in the contract period of 10 yrs

17 4. EMC - LM submit of documents 1. Past 1 year LM monthly electricity bill for streetlight 2. Agreement from financial department of LM - Accept for payment of EMC 3. Contract draft for LM quarterly payment plan 4. National government saving energy policy

18 5. LM receive EMC benefits from SZZT 1. LM service delivery to community 2. Zero Investment 3. Zero Risk 4. Property Transfer (After contract of EMC) 5. Enjoy smart technology street lighting 6. Enjoy Professional Saving Energy Service 7. Improve of LM cash flow

19 8. LM Benefit from LED retrofit Economic Benefit 1. Saving electricity cost for LM 2. Reduce M&R expenditure 3. Smart city innovation 4. Job creation 5. Reduction in crime

20 COLOUR RENDITION IN A PUBLIC ROAD BEFORE AND AFTER RETROFIT HPS LED NOTE: 1. COLOUR RENDITION 2. LIGHT SPILLAGE / GLARE 3. VISIBILITY ON OPPOSITE SIDE OF THE ROAD 4. LIGHT DISTRIBUTION IN THE ROAD

21 8. LM Benefit from LED retrofit Community Benefit 1. Use SZZT LED lighting transformation - save up to 70% cost 2. Meet international Climate Change standards 3. Meeting SANS standards for LM street light 4. Increase job creation

22 Win the people s votes by lighting up their community!!

23 8. LM Benefit from LED retrofit Environmental Benefit 1. Upgrading to LED - Improve lighting efficiency, promote city tourism 2. Does not contain mercury, no pollution

24 9. Government Policy Support

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26 SZZT China head office EMC projects Total: 64 LM in China of EMC Project Total Project Value: R322 million SZZT South Africa (Pty) Ltd. Has 4 EMC projects in process: Zimbabwe Harare & Bulawayo, Zambia -Lusaka, Kenya - Nairobi and Botswana - Gabarone.

27 Dr Huang meeting with Minister of Energy, Zimbabwe Dr Huang meeting with minister of Energy, Zambia

28 Dr Huang meeting with minister of Energy, DRC Dr Huang meeting with minister of Energy, Zambia

29 SZZT Group CHINA Head Office Group Turnover: USD 600 mil Employee total: 1800 people Capital: USD 46 mil Branch: 22 Office Park Site: 110,000m2

30 SZZT GROUP in China, S.A, Zimbabwe SZZT South Africa (Pty)., Ltd. Size: 23000m2 Head Office& Factory: Newcastle, KwaZulu-Natal,South Africa Cape Town Office, South Africa SZZT Zimbabwe (Private) Ltd Harare, Zimbabwe

31 Thank You!