Strategies to revive DSM mine pumping projects under the new ESCo model

Abstract

In 2015, Eskom introduced fundamental changes to the Demand Side Management (DSM) energy services company (ESCo) model. This included a mandatory three-year sustainability period for all DSM projects. The funding available to ESCos was reduced and the funding structure altered to be performance based over the three years. Thus, the focus of this paper was to develop a sustainable project strategy to assist ESCos in reviving DSM mine pumping projects under the new model. The study was verified and validated by implementing the new project strategy on two mine pumping systems, termed Case Study A and Case Study B. The implementation proved to deliver positive results over a three-month period. Case Study A achieved a R785 000 electricity cost saving, and Case Study B achieved a R2.53-million electricity cost saving during this three-month period. If the performance of these two case studies is extrapolated to a year, it would result in an electricity cost saving of approximately R10-million for the mine.