ASCI 3: Enhancing Resilience to Climate Change Program:

Enhancing Energy Efficiency Concept Note

Background
Africa is particularly vulnerable to the impact of climate change due to its high dependence on rain-fed
agriculture, widespread poverty and limited resourcing to invest and adapt to technologies that mitigate extreme
weather events. Rising global temperatures have already contributed to food insecurity, malnutrition, rise of
diseases such as malaria, and result in reallocation of limited government resources towards natural disaster
response and recovery1.

One approach towards addressing climate change is to reduce energy consumption by improving the energy
efficiency of buildings and facilities in urban centers. The International Energy Agency sees energy efficiency
"as a critical tool to relieve pressure on energy supply 2.” The need to improve energy efficiency is especially
true in Africa, where rapid population growth and urbanization has resulted in an annual 7% increase in energy
demand, which exasperates a growing energy deficit between demand and production in Africa 3. Currently,
buildings use on average 56% of total national electricity consumption; and large cities consume more than 75%
of all electricity generated4. Considering the percentage of national electricity consumption by buildings, they
hold a considerable potential to help cities reduce energy consumption by improving energy efficiency.

In order to reduce a building’s energy consumption, energy audits are needed to better understand baseline
energy usage. Cities are then able to make informed decisions on how to reduce consumption and potential
energy waste. For example, within the United States of America (USA), energy audits have shown
approximately 30% of energy used by commercial buildings is wasted 5, and audit results have assisted in
creating and tracking goals for energy reduction. By implementing energy audits, city governments will have
insight on how to take actionable steps towards reducing energy consumption within the city buildings, thereby
addressing factors attributing towards climate change.

Proposed Partners
African Sister Cities Initiative (ASCI)

The City of Tshwane’s (CoT) Executive Mayor, Cllr. Solly Msimanga’s African Sister Cities Initiative (ASCI)
serves as a vehicle for collaboration among Africa’s Capital Cities. The objective of ASCI is to facilitate
actionable diplomacy between Africa’s urban centers to materially impact the lives of residents 6.

1
African Union. “African Strategy on Climate Change.” 2014. Sourced from website:
http://www.un.org/en/africa/osaa/pdf/au/cap_draft_auclimatestrategy_2015.pdf
2
Huffington Post. “How to Scale Energy Efficiency Initiatives.” 2017. Sourced from website:
https://www.huffingtonpost.com/otto-von-troschke/how-to-scale-energy-efficiency-initiatives_b_7417118.html
3
Ibid. African Union.
4
Kitio, Vincent. “Promoting Energy Efficiency in Buildings in East Africa.” Presentation at Global Action towards
Resource Efficiency and Climate Mitigation in the Building Sector. 25-26 November 2013. Paris, France.
5
“About Commercial Buildings Integration Program.” Sourced from website:
https://www.energy.gov/eere/buildings/about-commercial-buildings-integration-program
6
Six thematic areas have been identified through the initiative: ASCI-1: Facilitating Regional Trade & Investment
Program; ASCI-2: Building Bridges: Towards Cross-cultural Understanding Program; ASCI-3: Enhancing Resilience to
Climate Change Program; ASCI-4: Ensuring Safety & Security Program; ASCI-5: Strategizing for Health Program; and
ASCI-6: Building an Educated and Skilled Youth Program.
Under ASCI-3: Enhancing Resilience to Climate Change Program the challenge faced by African capital
cities, is to ensure greater coherence, coordination and alignment of city-level adaptation and mitigation
strategies to national and continental commitments to sustainable development. Through partnerships on climate
smart technology, Africa’s urban centers can reduce their carbon footprint, thereby achieving the AU Agenda
2063 Aspiration 1, “A prosperous Africa based on inclusive growth and sustainable development”; and the call
to action, to “act with a sense of urgency on climate change and the environment”.

HUDOP

Hudop is a custom software development company based in Izmit, Turkey. The company provides IoT (Internet
of Things) and Big Data analytics solutions with niche-expertise in energy efficiency. Its product, PowerHud,
is an Energy Analytics and Management software platform that collects, processes and analyzes real-time
energy data to identify waste, manage demand, and improve energy efficiency. It generates insightful energy
reports through historical data and monitors environmental impact. PowerHud helps to reduce energy and
operational costs, improve power quality, reliability and uptime, and optimize equipment use. The Hudop team
offers advice, expertise and consultancy, and training on energy check-ups, developing ways to eliminate waste,
and becoming more energy efficient.

Scope of Collaboration & Time-frame

This proposal provides an opportunity for ASCI Cities to utilize PowerHud as a powerful software tool to
support energy management decisions in city-operated facilities, which in turn addresses climate risks by
reducing energy waste and greenhouse gas emissions; thereby improving the well-being of urban citizens.

Table 1 is the proposed time-frame for PowerHud to be implemented for one facility. PowerHud partners with
local electrical companies, if available, for installation of devices and post-sales support.

Table 1: Proposed Time-frame

Time-span Tasks
1 – 7 Working Gather General 1. Electricity prices
Days Information 2. Number of facilities (hospitals, schools, universities, etc.)
3 Working Site Survey & 1. Assessment of facility, energy usage, and existing energy
Days for Each Assessments* analyzers.
Facility 2. Compiling Report
a. Statement of Energy Performance of Facility, including
Identified Inefficiencies and Waste
b. Recommendations Report: How to Improve Energy
Efficiency
c. Expected Energy Savings and resulting reductions on
operational costs
7 Working Proposal 1. Project Plan for one facility
Days Development 2. Procurement Plan for one facility (including costs)
3. PowerHud implementation and consultancy costs
7 Working Establish 1. Conduct meeting with IT management personnel to discuss
Days Partnerships & technical requirements.
Preparations 2. Identify and partner with local electricity companies for
hardware installations.
7 Working Installation and 1. Building installations: set date for installation and testing
Days for Each Launch of hardware
Facility Powerhud* 2. Integration with PowerHud platform
3. Testing data collection and simulating alarms/notifications
4. Training on Software and Interpreting Intelligence Reports.
5. Go Live
*Note: Given time-frame for tasks are per facility.

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 Table 2: Proposed Budget

Type of Facility Number of Device Points Cost Range (USD)

Office Building (150 – 250 50 - 70 $35,000
workers)
Factory 100 – 150 $55,000
Hospital (300 Beds) 100 – 150 $50,000

The approximate cost range includes hardware, software, installation, training and support. Travel,
accommodation, and related overheads are not included.

Expected Outcomes
• Improved understanding of energy usage at facilities and a targeted reduction in energy demand.
• Opportunity for skills development and job training in climate-smart technologies.
• City-level Energy Usage Monitoring and Evaluation Framework that facilitates city-to-city learning,
sharing of best-practices and benchmarking.
• Training and support towards employment for energy analyst and managerial positions.

Value for Money

• Improve Energy Reporting – PowerHud uses historical data to generate energy reports that accurately
monitor environment impact and sustainability objectives.
• Budget and Forecast Energy Use - Predicts and budgets future energy expenses through real time
monitoring and historical data analysis.
• Increase Energy Efficiency – Reduces energy costs by pinpointing the root causes of waste and
identifying opportunities to save.
• Drive Job Creation – Creates “green jobs” that require skills and expertise in energy management
software, consultancy and services support.
• Build Capacity Skills in Energy Efficiency – Develops local capacities and skills on how to identify,
develop, implement and monitor energy efficient software solutions.
• Support Establishment of Energy Monitoring Program – Provides technical assistance and training
of municipal personnel for an Energy Monitoring Program that includes energy consuming sectors
owned, operated or subsidized by the municipality (buildings, street lighting, etc.)
• Support Employment in Broader Economy – Energy savings results in a larger budget directed
towards other job creation opportunities involving various skillsets and expertise.
• Align with ISO 50001 – PowerHud supports organizations to follow ISO 50001 global standards.

Energy efficiency should also be viewed as a powerful strategy for job creation and sustaining existing jobs that
utilize a range of skills and expertise, specifically in the following opportunities for job creation:

Direct Job Creation:

Energy Managers (or Energy Analysts)

PowerHud’s training and ongoing support develops employment opportunities for Energy Managers with the
following expertise:

• Monitor energy data, interpret energy reports, and implement the required actions for cost savings.
• Benchmark an organization’s energy use, address waste, and pursue effective measures to become more
energy efficient.
• Ensure an organization meets on government compliance requirements, including annual
benchmarking, retro-commissioning, and the subsequent interpretation of benchmarking metrics and
applying the information to investment decisions.
•

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Indirect Job Creation:

Supply Chain Efficiency

PowerHud improves supply chains efficiency by measuring the energy consumption related each specific step
in the process. By pinpointing energy waste and improving the cost-effectiveness of their production process,
they improve their competitive advantage, which allows for hiring and retaining more workers.

Diverse Jobs for the Broader Economy

The potential energy savings by using PowerHud supports job creation and retention when the public and
commercial sectors redirect funds saved through lower utility bills. In other words, the resulted energy savings
can be used, in part, to support greater levels of employment in the broader economy.

Recommended Next Steps

African Sister Cities Initiative (ASCI)

• Identify department(s) who will be working with the PowerHud

• Identify city official who will be the main point of contact for PowerHud
• Identify building(s) and/or facilities that will utilize PowerHud
• Prepare information on city-facilities to be monitored, including:
o the number of buildings to be monitored,
o their total energy consumption,
o any existing saving methods,
o energy prices,
o government energy regulations.
• Set up a meeting with Hudop to share the above information.
• Allocate necessary funding towards PowerHud implementation.

HUDOP

• Organize a meeting with responsible parties to review country specific information; discuss terms and
working conditions.
• Draft a non-disclosure agreement (NDA).
• After NDA is signed, set up another meeting to create a project plan.
• Conduct market research about potential local partners, their hardware and installation costs.
• Prepare a proposal.
• If accepted, sign an agreement.