Madam Deputy Speaker, I thank hon Sisa Njikelana for the question. The question is in relation to the matters related to the integrated Energy Environment Empowerment - Cost Optimisation, iEEECO. I just want to say that the department has never been requested to participate in the Witsand iEEECO project.
With regard to the Kuyasa project, the answer is: Yes, the Designated National Authority, DNA, within the Department of Energy issued a letter of approval to Kuyasa in 2005. A letter of approval is a prerequisite for any project that wishes to participate in the Clean Development Mechanism, CDM, under the United Nations Framework Convention on Climate Change, UNFCCC.
The rules and procedures governing the CDM require a letter of approval from the DNA of the host country, which confirms that the project's activity assists the country in achieving sustainable development. This was a once-off process from the department and the project could receive the Certified Emission Reductions, CERs, if its performance gets approval from the executive board. The accreditation period for this project is seven years.
To part two of the question, the answer would be, indirectly, yes. Please note that the DNA does not provide any financial support to projects. It does, however, provide technical support relating to the clarification on CDM rules and procedures. Kuyasa was the first South African CDM project to be registered and also the first gold standard project in the world. In 2008, the DNA nominated Kuyasa for the UNFCCC CDM International Photo Contest 2008 under the theme "Changing Lives", which it subsequently won. It received capital grants from the Department of Water and Environmental Affairs and the provincial government Department of Housing. The project has retrofitted 2 310 houses with solar water heaters, insulated the ceilings and provided electrical wiring and compact fluorescent light bulbs.
The greenhouse gas emission reductions are estimated to be approximately 2,8 tons per household per year over a period of seven years. The project will generate income from the sale of carbon emission reduction certificates. A ton of certified emission reduction can be traded at approximately 10 to 13 euros on the spot market.
With regard to part three, the department has noted some lessons from this project and the project can be replicated throughout the country. Kuyasa has created a focus of attention for dealing with renewable energy in households and throughout the country.
Another similar project called the Sassa Low Pressure Solar Water Heater Programme was registered by the CDM executive board on 12 April 2011. A number of projects are underway, including the Cosmo City solar water heating project of the City of Johannesburg, the Nelson Mandela Bay Municipality and the Ekurhuleni Municipality solar water heating projects. These projects are also benefiting from the energy efficiency and demand side management fiscal allocations. Thank you.