Energy. November State of Environment Outlook Report for the Western Cape Province

Transcription

1 State of Environment Outlook Report for the Western Cape Province Energy November 2017 i State of Environment Outlook Report for the Western Cape Province

2

3 DOCUMENT DESCRIPTION Document Title and Version: Draft Energy Chapter Client: Western Cape Department of Environmental Affairs & Development Planning Project Name: State of Environment Outlook Report for the Western Cape Province SRK Reference Number: Authors: Jessica du Toit & Sharon Jones Review: Christopher Dalgliesh DEA&DP Project Team: Karen Shippey, Ronald Mukanya and Francini van Staden Acknowledgements: Department of Energy: Ramaano Nembahe Department of Public Works: Michelle Britton Western Cape Government Environmental Affairs & Development Planning: Lize Jennings-Boom, Frances van der Merwe Western Cape Government Economic Development and Tourism: Ajay Trikam, Helen Davies City of Cape Town Other Hilary Price, Lizanda van Rensburg, Sarah Ward Bryce McCall (UCT), Fadiel Ahjum (UCT), Bruce Raw (GreenCape) Photo Credits: Page 3 The Maneater Page 5 - Green Business Guide Page 10 - PetroSA Page 14 - Eskom Page 30 SA Venues Page 31 Carbontax.org Page 32 - Certified Building Systems Page 36 Novaa Solar Page 37 - Homeselfe Page 38 Baker Street Blog Date: November 2017 State of Environment Outlook Report for the Western Cape Province i

4 TABLE OF CONTENTS 1 INTRODUCTION OVERVIEW OF DRIVERS AND PRESSURES Population growth and population dynamics Economic profile and growth Transportation networks and requirements Energy policy STATE Energy supply Coal Oil and liquid fuels Natural gas Nuclear energy Renewable energy Energy mix and energy demand Energy use Energy intensity Domestic energy use Electricity Alternative fuels Reliability of energy supply IMPACTS Generation of emissions and greenhouse gases Environmental contamination and degradation Impacts on water resources Loss of biodiversity Human health Visual impacts RESPONSES Southern African Power Pool National programmes Integrated Resource Plan for Electricity Integrated Energy Plan Renewable Energy Independent Power Producers Procurement Programme Energy Efficiency Strategy Draft Carbon Tax Bill Draft Policy of Sustainable Hydropower Generation vi State of Environment Outlook Report for the Western Cape Province ii

5 5.2.7 Draft National Liquified Petroleum Gas (LPG) Strategy National Transport Master Plan Western Cape Provincial responses Western Cape Climate Change Response Strategy Climate Change Mitigation Scenario Western Cape Energy Consumption and CO2 Database Department of Economic Development and Tourism s Green Economy Subprogramme Energy Security Game Changer Property efficiency reporting Atlantis Greentech Special Economic Zone Renewable energy training programme Municipal responses Small scale embedded generation CCT sustainable energy programmes Sustainable transportation in CCT Sustainable procurement initiatives Other municipalities Financing Energy related targets CONCLUSION REFERENCES State of Environment Outlook Report for the Western Cape Province iii

6 TABLE OF FIGURES Figure 3-1: Breakdown of South Africa s total primary energy supply Figure 3-2: Power generation facilities in the Western Cape... 6 Figure 3-3: South African oil and gas basins... 8 Figure 3-4: Petroleum exploration and production activities in and around the Western Cape... 9 Figure 3-5: Location of the shale gas exploration permit blocks in South Africa Figure 3-6: Renewable Energy Development Zones and powerline corridors for South Africa Figure 3-7: Global Horizontal Irradiation: South Africa Figure 3-8: Overview of hydropower resources in South Africa Figure 3-9: GJ of energy consumed in the Western Cape Figure 3-10: Energy consumption by district / metropolitan municipality as a proportion of total provincial consumption in GJ for 2012/13 and 2015/ Figure 3-11: Western Cape energy use by fuel type in 2012/13 (top) and 2015/16 (bottom) Figure 3-12: Western Cape energy use by sector Figure 3-13: Energy per GDP for each district of the Western Cape Figure 3-14: Percentage of households using electricity for lighting Figure 3-15: Household access to electricity in the Western Cape Figure 3-16: Electricity production in South Africa, Figure 3-17: Percentage of households experiencing an interruption to their electricity supply by metropolitan/district municipality Figure 3-18: Percentage of household electricity interruptions lasting longer than 12 hours by metropolitan/district municipality Figure 4-1: Interdependencies between water and energy LIST OF TABLES Table 3-1: Key energy use and CO₂e emissions Indicators for the Western Cape, 2015/ Table 5-1: SSEG in the Western Cape Table 5-2: Legislation governing South Africa s energy sector Table 5-3: Summary of policy, tools and frameworks Table 6-1: Overview of key energy aspects Table 6-2: Summary of the outlook for energy in the Western Cape ANNEXURES Annexure A Annexure B Annexure C Legislation governing South Africa s energy sector Summary of policy, tools and frameworks SSEG in the Western Cape vi State of Environment Outlook Report for the Western Cape Province iv

7 ACRONYMS AND ABBREVIATIONS BBBEE Broad-Based Black Economic Empowerment Bbl/d Barrels per day CCGT Closed cycle gas turbine CO2 Carbon Dioxide CO2e Carbon dioxide equivalent CCT City of Cape Town Metropolitan Municipality CPV Concentrated Photovoltaic CSP Concentrated Solar Power CSIR Council for Scientific and Industrial Research DEA Department of Environmental Affairs DEA&DP Department of Environmental Affairs and Development Planning DEDAT Department of Economic Development and Tourism DME Department of Minerals and Energy (now DMR) DMR Department of Mineral Resources DoE Department of Energy DPW Department of Public Works DTPW Department of Transport and Public Works DWS Department of Water and Sanitation EEDSM Energy Efficiency Demand Side Management EIA Environmental Impact Assessment EGI Electricity Grid Infrastructure GCIS Government Communications and Information System GDP Gross Domestic Product GDPR Gross Domestic Product per Region GHG Greenhouse gas GJ Gigajoule GN Government Notice GWEC Global Wind Energy Council GWh Gigawatt hours HFO Heavy Fuel Oil IEA International Energy Association IMF International Monetary Fund IPP Independent Power Producer IRP Integrated Resource Plan kw Kilowatts LPG Liquefied Petroleum Gas MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 MW Megawatt MWp Megawatt peak NDP National Development Plan NERSA National Energy Regulator of South Africa NTMP National Transport Master Plan OCGT Open Cycle Gas Turbine ODTP Organisational Development and Transformation Plan pa Per annum State of Environment Outlook Report for the Western Cape Province v

8 PASA PER PERO PV RDP REDZ REIPPPP SA SADC SALGA SAPP SBIDZ SEZ SSEG tcf TOD WCG ABLE O Petroleum Agency South Africa Property Efficiency Report Provincial Economic Review and Outlook Photovoltaic Reconstruction and Development Programme Renewable Energy Development Zones Renewable Energy Independent Power Producer Procurement Programme South Africa Southern African Development Community South African Local Government Association Southern African Power Pool Saldanha Bay Industrial Development Zone Special Economic Zone Small Scale Embedded Generation Trillion cubic feet Transit Oriented Development Western Cape Government vi State of Environment Outlook Report for the Western Cape Province vi

9 GLOSSARY Biofuel Carbon footprint Carbon tax Externality Fossil fuels Gross Domestic Product per Region Greenhouse gas Nuclear power Open cycle gas turbine Peaking power stations Renewable energy Renewable resource Small scale embedded generation A fuel, generally in liquid form, developed from organic matter or combustible oils produced by living or recently living plants. Examples of biofuel include alcohol (bioethanol) and soybean oil. Measure of the exclusive total amount of emissions of carbon dioxide (CO2) that is directly and indirectly caused by an activity or is accumulated over the life stages of a product. A levy on the carbon content of fossil fuels. Because virtually all of the carbon in fossil fuels is ultimately emitted as carbon dioxide (CO2), a carbon tax is in effect an emission tax on CO2 emissions. Economic activities that cause uncompensated environmental loss or damage to others. Mined energy sources, such as coal, gas, and petroleum that are derived from the remains of prehistoric animals and plants. A subnational gross domestic product for measuring the size of a region's economy. Gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and re-emit infrared radiation and includes carbon dioxide, methane and nitrous oxide. Energy created by the process of fission from atomic nuclei, as generated by nuclear power stations. A combustion turbine plant fired by liquid fuel to turn a generator rotor to produce electricity. Power plants that generally operate only when there is a high demand for power. Energy obtained from sources that are essentially inexhaustible (for example, wind energy, solar energy, and hydropower) (see Renewable resource). A resource produced as part of the functioning of natural systems at rates commensurate with its rate of consumption. Under normal conditions these resources are continuously renewing themselves. Power generation under 1 MW (1000kW), located on residential, commercial or industrial sites where electricity is also consumed. The majority of the electricity generated by an SSEG should be consumed directly on site. Times shall arise when generation exceeds consumption and typically a limited amount of power is allowed to flow from the customer to the municipal electrical grid. State of Environment Outlook Report for the Western Cape Province vii

10 1 INTRODUCTION Energy sustains human livelihoods and powers the economy of South Africa. Energy is derived from various sources including direct sunlight, fossil fuels as well as natural forces, and is conveyed over distance as electricity, liquid, gaseous and solid fuels, or different forms of enriched mediums. In South Africa, the energy sector is the main contributor to the country s greenhouse gas (GHG) emissions, with approximately 70% of the country s electricity requirements provided by carbon intensive coal generation (IEA, 2016). South Africa s drive to transition to a lower carbon economy, in accordance with the 2015 Paris Agreement on climate change, has led to increased interest and investment in renewable energy (which now provides roughly 0.3% of South Africa s power requirements, excluding residential biomass) and lower carbon options such as natural gas from both the public and the private sectors as well as increased energy efficiency. The energy sector is critical to South Africa s economy, since it indirectly and directly contributes to the country s Gross Domestic Product (GDP) and underpins the rest of the economy (GCIS, 2012). It is estimated that the energy sector contributes about 15% to South Africa s GDP (GCIS, 2012), although this figure excludes the value of freight transport dependent on liquid fuels, and could therefore be significantly higher. E nergy is increasingly becoming a key factor in the growth of the economy, and a transformation of the energy sector is regarded as one of the major requirements through which equitable economic growth and sustainable development can be achieved. South Africa currently has a well-developed energy supply and production system, but the challenge is to maintain and expand it to keep up with and support the growing economy, while upholding international commitments to decrease GHG emissions. The energy sector in South Africa is characterised by the duality of low production costs but high environmental impacts as a consequence of a heavy reliance on large coal reserves and other imported fossil fuels. Due to historically under-priced electricity, South Africa s economy is electricity intensive, and therefore the country contributes disproportionately to climate change (NPC, 2011). South Africa s energy intensity and reliance on fossil fuel derived energy translates into relatively high GHG emissions such as carbon dioxide (CO2) whether measured per capita or by GHG intensity (emissions per unit of Gross Domestic Product per Region [GDPR]). This heavy reliance on coal based energy is also increasingly becoming a liability as energy prices rise to compensate for the progressive internalisation of the environmental and social costs of generating (coal based) energy. As a fast emerging economy, South Africa needs to balance the competing need for continued economic growth with its social needs and the protection of the natural environment. South Africa needs to grow its energy supply to support economic expansion and in doing so, alleviate supply bottlenecks and supply-demand deficits. In addition, it is essential that all citizens are provided with clean and modern forms of energy at an affordable price. Integrated Energy Plan Report, DoE The National Energy Act 34 of 2008 assigns the mandate for primary energy supply and transformation to the national government. In the Western Cape energy facilities/resources include Koeberg nuclear power station, the Open Cycle Gas Turbine (OCGT) peaking power stations at Gourikwa (Mossel Bay) and Ankerlig (Atlantis), numerous wind farms (e.g. Darling, Dassiesklip, Sere), the Chevron oil refinery, PetroSA and natural gas off the west and south coasts of the province. While the Western Cape Government can play an important role in facilitating energy development in the province and establishing conditions that encourage renewable energy development, uptake into the national energy mix currently remains the responsibility of 1 State of Environment Outlook Report for the Western Cape Province

11 national government 1, guided by the Integrated Energy Plan and Integrated Resource Planning (IRP) policies. (DEA&DP, 2013) This chapter describes the energy sector in the Western Cape in terms of how energy production and consumption affects environmental change. Energy use, e nergy supply, energy intensity, domestic energy use and reliability of energy supply are used as indicators against which trends are tracked. The chapter also discusses the responses of the various tiers of government to energy related issues. Readers are encouraged to read this chapter along with those on Air Quality and Climate Change due to the interconnectedness of these three themes. 2 OVERVIEW OF DRIVERS AND PRESSURES Energy in South Africa is supplied from a range of energy sources or carriers, including coal, nuclear, liquid fuels (refined from crude oil and coal), gas and renewable energy sources. Energy generation, transmission, distribution and consumption, however, place considerable pressures on the environment by releasing GHG emissions and other air pollutants, altering land-use patterns and consuming water resources. This contributes to climate change, damages natural ecosystems, impacts on biodiversity and compromises the built environment; all of which combine to affect human health (Modi et al. 2005). It is however becoming easier and more cost efficient to shift towards cleaner sources of energy or means of energy production, in turn shifting the pressures on the environment. Demand side factors including consumption patterns and particularly the total amount of energy and the efficiency at which energy is used, ultimately determine the scale of environmental change and overall impact. Drivers of consumption can In addition to the key drivers and pressures affecting energy supply and consumption, the following emerging issues may affect energy: therefore be seen as the primary determinants of environmental change. 2.1 Population growth and population dynamics Transit Oriented Development will reduce the use of fossil fuels, as an attempt is made to locate housing in closer proximity to public transport, thus reducing the need for personal vehicles The drive towards renewable energy will affect the future energy mix Shale Gas Prospecting may identify new gas reserves, which could affect the future energy mix Human population growth is the primary agent driving the impact that energy generation and consumptions has on the environment. As a rule of thumb, total energy usage will increase with an increase in population. However, population dynamics can materially influence or determine the patterns of consumption, and therefore the rate of increase in consumption. Relative wealth correlates with high per capita energy usage (IEA, 2008), as does urbanisation, population age structure, household size and decreased dependency rates (Jiang & Hardee 2011; WCG, 2015). The Western Cape has a young, urbanised population (majority <35 years old), living in small households (3.2 people per household). In addition, over 95% of households in the Western Cape have access to electricity, and most have access to basic services as well as a radio, television, refrigerator, landline telephone and at least one cellular telephone (StatsSA CS 2016). 1 Although there are increasing efforts by local government to obtain rights to enter direct agreements with independent power providers. State of Environment Outlook Report for the Western Cape Province 6

12 The Western Cape population is growing largely due to in-migration of people from other provinces and international immigration. In addition, the number of households living in formal dwellings has increased, with a commensurate decrease in those living in informal dwellings (WCG, 2016b). These population characteristics are major drivers of energy usage and the associated environmental impacts. 2.2 Economic profile and growth For economic and household activities, the amount of energy consumed is a function of the efficiency of use, which is determined by inherent characteristics of the particular application. Domestic uses, for example, require energy for lighting, heating and cooking, as well as to power a range of electronic appliances, predominantly during morning and evening peak periods. This need can be satisfied through energy from biomass, coal, renewable sources or grid-supplied electricity. Commercial uses of energy consist mostly of lighting, heating and ventilation for office buildings, predominantly during office hours. In comparison, energy-intense industries like mining or smelting require a constant, large quantum of energy which, in the Western Cape, is mostly supplied through primary use of coal (e.g. on site boilers), coal- based grid supplied electricity or nuclear energy. The nature of energy consumption also determines whether there are opportunities to improve energy efficiency or shift to different forms of energy. Transportation, for example, could likely remain heavily dependent on liquid fuels unless significant shifts in modal choice can be achieved to allow for a higher reliance on public transport, or non-motorised transport and electricity driven transport become more accessible. Consequently, the composition and size of the local economic system will influence the pressure that energy consumption has on the environment. The economy of the Western Cape is growing slightly faster than the rest of South Africa, recording 2.1% GDPR growth in 2014 (WCG, 2015). The Provincial Economic Review and Outlook (PERO) Report (2015), indicates that manufacturing contributes approximately 15% towards GDPR in the Western Cape, and is expected to grow by approximately 2.2% per annum (pa) between 2015 and The built environment (services, business and commerce) contributes well over 80% to Western Cape GDPR (WCG, 2015). This implies an inherent dependence on bulk electricity supplies for the built environment, but also a mix of electricity, coal and liquid fuels for various forms of manufacturing. However, it is not necessarily the case that the bulk of the economic activity is locked into a particular type of primary energy, if a reliable, affordable supply of electricity is provided. It is critical that the supply of energy is constant and that integrity of the supply networks is secure, in order to facilitate continued economic growth in the province. 2.3 Transportation networks and requirements Transportation affects energy usage in two ways. On the one hand the movement of goods and passengers represents direct consumption of energy, and in 2015 the transportation sector ( including aviation, but excluding maritime uses) consumed 51% of the total energy in the province, (DEA&DP, 2017). On the other hand, the built-in efficiencies and coverage of transport networks determine user behaviour and consequently the energy intensity of human 3 State of Environment Outlook Report for the Western Cape Province

13 activities. The relative energy intensity of the different modes of transport differs, and therefore also the relative impact of shifts in modal choice. The distances over which goods and passengers are transported, along with the available modes of transport also play a key role in determining the type and efficiency with which energy sources can be used for transportation. Transport energy demand in urban spaces is shaped by urban spatial structure. In Cape Town, for example, this is characterized by low-density development and urban sprawl, with an historical emphasis on road transport. This has encouraged private transport, with long commute times, increasing petrol and diesel consumption with correspondingly elevated local and global emissions. In 2012, private vehicles were the major mode of transport (42%) to work in Cape Town, while transport (including aviation and international marine transport) accounted for 33% of total carbon emissions in Cape Town (CCT, 2015). The growth in fuel used for transport in the City of Cape Town (CCT) is attributed to urban sprawl, high average commuter trip length, very high and growing single-occupancy vehicle use and an inadequate public transport system which is also predominantly reliant on fossil fuels (CCT, 2010). 2.4 Energy policy One of the key drivers of change in both energy production and energy demand management is the suite of recently developed and implemented energy policies and strategies (as discussed in detail in section 5). The strategic goals underpinning these policies, include ensuring that the energy supply is secure and demand is well managed, that there is an efficient and diverse energy mix in a transformed energy sector and that policies to mitigate carbon emissions and adapt to the effects of climate change are implemented. Together with more industry-specific strategies and policies to facilitate and promote more sustainable sources of energy, there has seen a substantial shift in focus from a coal based energy supply, to a more diverse supply base, with increased investment in renewables and cleaner energy sources. 3 STATE Energy is tracked using the following key indicators: This section provides information on the current state of energy in the Western Cape, again using energy supply, energy consumption, energy intensity, domestic use and reliability of energy supply as indicators against which changes over time can be measured. An attempt is made to provide a comparison between the state of energy in 2013 and the current state (2015/2016), although comparable information remains limited. Where possible, information is presented at district level in order to present a higher resolution perspective on the energy sector in the province. Energy Supply Energy Consumption Energy Intensity Domestic Energy Use Reliability of Energy Supply 3.1 Energy supply The energy supply indicator depicts the production and supply of energy in the Western Cape, from both renewable and non-renewable sources. The rationale behind the use of the indicator is to identify trends in the responses to changes in energy demand, to highlight what a future, local energy supply mix will look like, and broadly indicate where the local environment will be directly impacted by energy generation. It is worth noting that not all the energy generated in the province is necessarily utilised within the Western Cape, and not all the energy consumed in State of Environment Outlook Report for the Western Cape Province 6

14 the province originates in the Western Cape. South African energy supply is dominated by coal, which provides approximately 70% of the primary energy supply. This is followed by crude oil at 13%, nuclear and gas at 3% each, and renewables at 0.3%. Residential biomass has been excluded from this reconciliation (~11%), which, therefore, does not add up to 100% (IEA, 2016). Figure 3-1: Breakdown of South Africa s total primary energy supply Source: IEA, 2016 in Climate Transparency, Eskom generates 95% of the electricity used in South Africa and 45% of the electricity used in Africa ( In the Western Cape energy facilities/resources include Koeberg nuclear power station, the OCGT peaking power stations at Gourikwa (Mossel Bay) and Ankerlig (Atlantis), numerous wind farms (e.g. Darling, Dassiesklip, Sere etc.), the Chevron oil refinery, PetroSA and natural gas off the west and south coasts of the province. Power generation facilities in the Western Cape (including some private facilities) are depicted in Figure 3-2. Oil and gas refineries produce petroleum products such as petrol, diesel, residual fuel, oil, paraffin, jet fuel, aviation gasoline, liquefied petroleum gas (LPG) and refinery gas (StatsSA, 2012b). Apart from the PetroSA refinery in Mossel Bay, a major barrels per day (bbl/d) refinery is operated by Chevron in Cape Town (Petroleum Agency of SA, 2010) Coal Note: numbers might not add up to 100% due to exclusion of residential biomass from the share of renewables. Source: IEA, 2016 The energy sector in South Africa is dominated by coal, and especially coal-based electricity. Approximately gigawatt hours (GWh) of electricity is produced from coal per annum in South Africa (CSIR, 2017a). Despite this, no coal is mined, and there are no coal-based power stations in, the Western Cape. Some coal used in manufacturing (e.g. in boilers) is brought in by truck and rail from coalfields in the northern provinces (especially Mpumalanga, Limpopo and KwaZulu-Natal). Coalbased electricity from the national grid provides the bulk of the electricity consumed in the Western Cape. South African coal reserves are estimated at 53 billion tonnes, which, at current exploitation rates, 5 State of Environment Outlook Report for the Western Cape Province

15 is sufficient for another 200 years (Eskom, 2017a). Most of the coal mined in South Africa is used for the generation of electricity, with a small yet significant portion transformed into liquid fuels or other petrochemicals by Sasol. As part of Eskom s electricity generation expansion programme, two new coal-fired power stations Medupi and Kusile are being commissioned in Limpopo and Mpumalanga respectively. On 30 August 2015, the first of six generating units at the Medupi Power Station were officially opened, which contributes about 800 MW to the national grid. Once completed, Medupi Power Station will add MW to Eskom s grid and will be the world s largest coal-fired power station. Medupi is the fourth dry-cooled, baseload station to be built in 20 years by Eskom, after Kendal, Majuba and Matimba power stations At Kusile Power Station in Mpumalanga, Unit 1 reached full operational load in March 2017; with operation of the remaining five units scheduled (in a phased manner) by (Eskom, 2017b and South African Government, 2017). Once completed, Kusile will be the fourth-largest coal-fired power station in the world (South African Government, 2017). The investment in coal-based electricity generation seems to imply that the current coal-dependent national electricity supply to the Western Cape will not change in the near future. However, energy costs from Eskom s new generation capacity will be considerably higher than previously, and increasing energy costs, in combination with market pressure for cleaner energy, continue to drive interest in alternative sources of energy (GreenCape, 2017). Eskom has earmarked five coal fired power stations in Mpumalanga (Camden, Grootvlei, Kriel, Hendrina and Komati) for decommissioning. Eskom cites stagnant demand and low economic growth in South Africa, as well as the intent to create space for renewable energy, as reasons for the decommissioning. Decommissioning of two power stations was scheduled for 2020 and the remaining three in 2024, 2025 and Eskom has indicated that the decommissioning of these power stations could possibly be bought forward, but has not provided a programme (van Rensburg, 2017) Oil and liquid fuels South Africa has very limited oil reserves and relies heavily on imported crude oil for its liquid fuel demands, with about 60% of the supply sourced from the Middle East and Africa (GCIS, 2017). Known local reserves of crude oil are all located offshore, in an exploration area known as Block 9 in the Bredasdorp Basin south of Mossel Bay (see Figure 3 3 and Figure 3 4). Block 9 contains two oil fields Oribi and Oryx, both currently leased by PetroSA. The Oribi/Oryx oil field, South Africa s first conventional oil production field, began production in 1997, though production is currently suspended (PASA, 2017). Although global exploration has stalled due to the lower oil price, the African oil industry is likely to remain stable, thereby providing a service-market for the Western Cape. According to Transnet, 80 to 100 oil rigs are in operation off the west coast of Africa and a further 120 oil rigs pass via the southern tip of Africa each year (WCG, 2015). The Saldanha Bay Industrial Development Zone (SBIDZ) was promulgated by the Minister of Trade and Industry in October 2013 (SBIDZ, 2017). It is situated on the outskirts of Saldanha Bay on a 330 hectare (ha) site. The SBIDZ is a joint project between national, provincial and local government, aiming at attracting key investors and companies operating in the upstream (offshore) oil and gas sector of the African east and west coasts (DEA&DP, 2015d). The zone aims to deliver engineering services, marine repair and supply services to these enterprises. Consequently, it is probable that the concentration of industries will elevate ambient air pollution levels in the area. State of Environment Outlook Report for the Western Cape Province 6

16 Figure 3-2: Power generation facilities in the Western Cape Figure 3-4: Power generation facilities in the Western Cape State of Environment Outlook Report for the Western Cape Province 7

17 Supplementation of the liquid fuel supply takes place through coal-to-liquid and gas-to- liquid conversion processes (Sasol) as well as natural gas-to-liquid fuels conversion (PetroSA)(StatsSA 2012b). At the PetroSA gas-to-liquid plant in Mossel Bay (Mossgas), a modified version of the Fischer-Tropsch process can produce barrels/day of liquid fuels (PASA, 2010). Figure 3-3: South African oil and gas basins Source: Petroleum Agency of South Africa, 2012 Open Cycle Gas Turbine (OCGT) power stations are located near Mossel Bay and Cape Town. These plants are key components of the Eskom Peaking Capacity strategy, as they can generate electricity within 30 minutes of start-up. The Gourikwa OCGT power plant at Mossel Bay (746 MW) comprises a fuel supply pipeline from the PetroSA facility to the power plant, a substation at the OCGT power plant and two transmission lines to the national grid. A similar arrangement is found at the Atlantis (Ankerlig) OCGT plant in Cape Town (1 338 MW), with fuel sourced from the Milnerton refinery and a connection to the Koeberg-Aurora transmission power line (Eskom, 2014a). Eskom is in the process of converting these diesel operated OCGT power plants to dual fuel facilities, able to operate more efficiently and on both diesel and natural gas (Visagie, 2013). The conversions, estimated to cost R1.8 billion, come amid criticism of Eskom s use of costly diesel and heavy use of the two OCGT plants, which are intended as peak load, not base load facilities. Acacia and Roggebaai gas turbine power stations are located in urban Cape Town. Acacia is primarily intended as auxiliary power supply for the Koeberg Nuclear Power Station but otherwise functions as a peaking power station in the national grid. It consists of only three 57 MW gas turbine generators, totaling 171 MW installed capacity (Eskom, 2014b). The Roggebaai OCGT has a capacity of 36 MW. State of Environment Outlook Report for the Western Cape Province 8

18 Figure 3-4: Petroleum exploration and production activities in and around the Western Cape Figure 3-4: Petroleum exploration and production activities in and around the Western Cape State of Environment Outlook Report for the Western Cape Province 9

19 3.1.3 Natural gas Despite being very small compared to other countries, the 2005 State of Environment Report (SoER) (DEA&DP, 2005) recognised the increasing importance of the rapidly expanding South African gas sector to the local energy economy. This remains true, and equally so for the Western Cape Province. Onshore and offshore natural gas reserves are located in the Western Cape, with offshore natural gas at the oil and gas fields off the coast of Mossel Bay and the West Coast, and large, inferred shale gas resources in the Karoo Basin (see Figure 3-4). A LPG terminal was constructed in Saldanha Bay to address historical LPG shortages and meet future requirements for gas-fired power plants and other industrial requirements. The geographical location is important as Saldanha Bay has convenient access to LPG markets in South America and West Africa. The terminal will boost existing import LPG storage capacity by at least 80 % (WCG, 2016a). The development of the gas sector in the Province will facilitate a transformation of the available energy mix in the Western Cape. A diversification of the energy mix to include more sustainable, affordable and environmentally friendly solutions will alleviate pressure on the electricity grid and power generation plants. LPG can be particularly useful in rural areas which may not have the infrastructure to exploit other energy sources. Natural gas extracted from the F-A and E-M gas fields in Block 9 off Mossel Bay are converted into liquid fuels at the Mossgas plant. Several other exploration blocks and production rights are located in the same vicinity, and these are constantly appraised to determine feasibility of extraction (PASA, 2010). Along the West Coast, gas is found at the Ibhubesi gas field, located 380 km north west of Cape Town just beyond the Western Cape border (PASA, 2012). Onshore gas has become a contentious issue in South Africa as the exploitation of shale gas from the Karoo Basin is being considered. Although a study by the International Energy Association (IEA) initially estimated a gas resource in the Southern Karoo of 485 trillion cubic feet (tcf), more recent estimates have placed the resource at tcf (ASSAF, 2016). A small portion of the exploration area is located in the Western Cape, between Beaufort West and Murraysburg (Figure 3-5). Should the shale gas resource prove viable, the energy picture of South Africa could change dramatically as new infrastructure is developed and a shift towards gas takes place. Shale gas is extracted through a process known as hydraulic fracturing (fracking). This process has gained notoriety due to a range of perceived or real environmental impacts and pollution incidents associated with the process. After initially imposing a moratorium in April 2011, the South African government lifted the moratorium in September 2012 following the release of the Report on Investigation of Hydraulic Fracturing in the Karoo Basin of South Africa, coordinated by the Department of Mineral Resources (DMR). This report highlights concerns with regards to potential environmental impacts and conflicts with radio-astronomy operations, but also acknowledges the potential social and economic benefits that responsible exploration can have for the region and the country. The report recommends further investigative exploration and research (without actual hydraulic fracturing), along with the augmentation of the regulatory framework, before any fracking is allowed. The Western Cape Government is cautious about the potential State of Environment Outlook Report for the Western Cape Province 10

20 environmental impacts, and has consequently taken a position to support the national stance that further studies and proper consultation need to be undertaken before any definitive judgments can be made. Figure 3-5: Location of the shale gas exploration permit blocks in South Africa Source: Advanced Resources International, 2013 In response to the recommendation in the initial investigative report, the Minister of Mineral Resources gazetted the Regulations for the Petroleum Exploration and Production in June 2015 to augment the Mineral and Petroleum Resources Development Act (MPRDA) regulations prescribing standards and practices that ensure the safe exploration and production of petroleum resources including shale gas. The Minister of Mineral Resources may award the first shale gas exploration licences by late 2017, after environmental concerns delayed the process. Five licence applications (including applications by Royal Dutch Shell, Falcon Oil and Gas and Bundu Gas and Oil) for exploration are under review in the Karoo Basin. Decisions in this regard will be informed by recommendations by PASA (Roelf, 2017) Nuclear energy Koeberg Nuclear Power Station (Koeberg) situated approximately 27 km north of Cape Town city centre, is South Africa s (and Africa s) only commercial nuclear power station, owned and managed by Eskom. Koeberg has two nuclear reactor units with a total installed capacity of MW. Koeberg has produced more than million kwh of electricity since 1984, and has a remaining planned active lifespan of 30 years (SRK, 2017). Low and intermediate level waste from Koeberg is transported by road in steel and concrete containers to a remote disposal site at Vaalputs in the Northern Cape. However, there is no national nuclear waste disposal site for high level waste, the development of which is the 11 State of Environment Outlook Report for the Western Cape Province

21 responsibility of the National Radioactive Waste Disposal Institute. As such, spent fuel from nuclear reactors is stored on site in specially equipped spent fuel pools (Eskom, 2013b) and approval has recently been granted for a facility for the interim storage of spent fuel in dry storage casks at Koeberg. Construction of this facility, which is scheduled to commence in 2018, aims to provide adequate on-site storage of spent fuel for the remaining planned active lifespan of the plant (SRK, 2017). In terms of its Nuclear Energy Policy and IRP, Government has committed to an energy mix including nuclear energy. The IRP envisages MW additional nuclear capacity by 2030, constituting 25% of the Nuclear New Build Programme (DME, 2010). This will undoubtedly have a major impact on the carbon intensity of the country s energy sector, as nuclear is considered much cleaner than fossil fuel based generation. Eskom is currently investigating the suitability of two additional nuclear power stations sites as part of the Nuclear New Build Program: at Duynefontyn (adjacent to the Koeberg Nuclear Power Station) and Thyspunt in the Eastern Cape. Three additional sites, two in the Northern Cape (Brazil and Schulpfontein) and Bantamsklip in the Overberg District are no longer under consideration at this stage. In December 2016, South Africa s Nuclear New Build procurement process formally started with the international release of a request for information. At the end of January 2017, 36 foreign companies had responded; however, the Western Cape High Court ruling against the nuclear procurement process in April 2017, has delayed progress in this regard (Vecciatto and Cohen, 2017) Renewable energy The Western Cape is blessed with significant renewable energy resources, specifically in terms of wind and solar potential, and there is likely to be far more energy available in the natural environment than is required for provincial energy needs. As with the rest of the country, historic dependencies on coal-fired electricity, practical, administrative and regulatory obstacles and concerns about cost-effectiveness have prevented harnessing of the full potential of renewable energy. However, there is increasing momentum to make use of opportunities presented by renewable energy to supplement the national energy supply and empower individual households through low cost energy generation solutions. Accurately measuring the total amount of renewable energy that is produced off-grid is technically challenging due to the multitude of data sources. It is therefore more common to report on large scale contributions of renewable sources to the electricity grid and liquid fuels or gas market. The 2005 SOER (DEA&DP, 2005) estimated renewable energy contributed 5.6% to the total electricity production in South Africa (2000 statistics). In contrast, the Council for Scientific and Industrial Research (CSIR) estimates the contribution at approximately 3% (excluding selfconsumption of embedded plants) (CSIR, 2017b). Implementation of renewable energy programmes in South Africa has been slow due to delays in concluding power purchasing agreements between Eskom and Independent Power Producers (IPPs). Regulations do not allow municipalities to purchase power from IPPs without DoE State of Environment Outlook Report for the Western Cape Province 12

22 permission. In spite of this, the Western Cape has secured approximately R17 billion in renewable energy projects, creating over 2000 jobs in the province. Numerous manufacturing plants servicing the renewables sector have established in the Western Cape, providing investment estimated at R500 million and over 700 jobs (GreenCape, 2016). At the end of 2014, 422 MW was generated annually by renewable energy in the Western Cape, of which 142 MW was fed into the grid. This represents a significant increase since 2012, when 133 MW was generated by renewables (DEA&DP, 2015). The 20-year Integrated Resource Plan (IRP 2010), commits South Africa to generating 42% of its electricity from renewable resources by The IRP advocates adding MW of renewable energy per year, for several years. To facilitate this, the DEA and CSIR undertook a Strategic Environmental Assessment (SEA) to identify areas best suited to the effective and efficient roll-out of large scale wind and solar PV energy facilities, in a manner that minimizes impacts, and maximizes socio-economic benefits to the country. The Renewable Energy Development Zones (REDZ) identified through this process also identified priority areas for investment in the national grid, for which a second SEA - the Electricity Grid Infrastructure (EGI) SEA was commissioned. The EGI SEA identified power corridors to accommodate the efficient and effective expansion of key strategic transmission infrastructure, designed to satisfy national transmission requirements up to The eight REDZ and five Power Corridors identified through these SEAs (see Figure 3-6) were gazetted in February 2016 ( The REDZ and Power Corridors comprise areas where wind and solar photovoltaic (PV) projects can be developed in concentrated zones, with the intention of reducing environmental impacts, streamlining authorisation and approval processes, providing incentives for development, and expanding the South African electricity grid. Figure 3-6: Renewable Energy Development Zones and powerline corridors for South Africa Source: page_resized.jpg 13 State of Environment Outlook Report for the Western Cape Province

23 Two of the eight REDZ are in the Western Cape (Overberg, km² in size, and Komsberg, km² in size). The remaining REDZ are located in the Eastern Cape (Cookhouse and Stormsberg), Northern Cape (Springbok, Upington and Kimberley [Northern Cape / Free State]) and North West (Vryburg). Applications for environmental authorisation of renewable energy projects (as tracked by DEA quarterly) are largely concentrated in these zones Wind energy The amount of energy that can be generated through the wind depends on its speed. Wind as an energy source is only practical in areas that have strong and steady winds. South Africa has fair wind potential, especially along the coastal areas of the Western and Eastern Cape (DoE, 2017). Several important strategic initiatives have been launched in support of the development of wind power. The first is a project by the Department of Energy (DoE) to generate a Wind Atlas of South Sere Wind Farm, Western Cape Africa. This atlas models a generalised wind climate 100 m above ground in 5 km x 5 km grids covering the Northern, Western and Eastern Cape. The information is available from the CSIR ( The 3.2 MW pilot facility at Klipheuwel in the Western Cape was developed in 2003 by Eskom as the first large wind turbine facility in sub-saharan Africa. The three-year experiment was designed to test the effectiveness of three types of turbines and the viability of wind power for large-scale grid applications, following which the Klipheuwel Wind Farm was decommissioned in Darling Wind Farm was launched by an IPP in 2007 with 5.2 MW capacity, comprising four 1.3 MW wind turbines. Every year, 13 million KWh of electricity is produced here, equating to 80% of the summertime electricity requirements for a small town the size of Darling (Darlingwindfarm.com). In addition to the Darling Wind Farm, the following wind farms are located in the Western Cape: Dassiesklip Wind Energy Facility, 5km west of Caledon; Excelsior Wind Energy Facitlity, between Uitkyk and Excelsior near Swellendam (not yet operational); Gouda Wind Farm, in Drakenstein, 100 kilometers north-west of Cape Town; Hopefield Wind Farm, near the town of Hopefield; Ishwati Emoyeni Wind Farm Project, near Murraysburg in the Western Cape (not yet operational); Perdekraal East wind farm (not yet operational); Sere Wind Farm, near Koekenaap; West Coast 1 Wind Farm near Vredenburg. According to the Global Wind Report: Annual Market Update 2016, South Africa added only 418 MW of wind capacity in 2016, raising its overall installed base to MW. Nevertheless, South Africa remained the only country in Africa, and among a group of only 29 countries globally, to have an installed wind base of more than 1000 MW. Following a hiatus in wind projects during 2016, due to delays in the signing of agreements between Eskom and IPPs, the Global Wind Energy Council now expects a recovery in deployment of wind projects in South Africa (GWEC, 2016) Solar power Solar energy generating methods are varied, the most familiar being Solar PV, Concentrated State of Environment Outlook Report for the Western Cape Province 14

24 Photovoltaic (CPV) and Solar Water Heating. Solar energy can be directly used to heat water, space, generate electricity and in some cases provide process heat for industrial activities. The solar power potential in the Western Cape is high, although not as high as in north western parts of the country. Averaged irradiance across the province ranges from 1500 kilowatts (kw)/m²/pa in the east to over 2000 kw/m²/pa in the west (Figure 3-7). This is comparable to areas surrounding the Mediterranean Sea. Figure 3-7: Global Horizontal Irradiation: South Africa Source: SolarGIS 2015 GeoModel Solar Numerous PV power plants are located in the Western Cape, including the Touwsrivier CPV solar power project (44 MW), the Slimsun Swartland Solar Park (5 MW) in the Swartland, a 10 MW solar project in Aurora on the West Coast, the Vredendal Solar Power Park (10 MW) and an 82 MW Solar Park in Paleisheuwel (between Piketberg and Clanwilliam) Hydropower Hydropower installations can be either primary power generation units or pumped storage units. Primary power is generated when water flows under gravity from higher level reservoirs or catchments through turbines to lower discharge points. A pumped storage scheme on the other hand pumps water from a lower to an upper reservoir using off-peak electricity and then releases the water to run through turbines to augment power supply at times of peak demand. South Africa has a mix of small hydroelectricity stations and pumped water storage schemes. Rainfall data and topography suggest reasonable potential for small scale hydropower within the province. Precipitation in Western Cape mountain ranges during winter is high and the runoff could be harnessed as elevations of the Western Cape s mountain ranges is ideal for the placement of hydropower plants (WCG, 2017c). However, the total practically realisable 15 State of Environment Outlook Report for the Western Cape Province

25 potential for small scale hydro power in the province is estimated at only 20 MW (DEA&DP, 2007). Figure 3-8: Overview of hydropower resources in South Africa Source: DME/CSIR/Eskom 2002 cited in DEADP, 2007 Case Study: Hydropower at L Ormarins Wine Estate L Ormarins Wine Estate in Franschhoek, has installed an automated hydropower operation with a generation capacity of 2.3 MW. The turbines and their generators start up automatically, when the flow of water from the weir high on the mountain reaches 35 litres per second. Once the flow increases enough for the first turbine to reach 90% of capacity, the second turbine starts up, and once synchronised, will begin to generate electricity and feed it into the grid. This entire process is automated. Solar PV panels on the roof of the turbine house provide back-up power to ensure the system remains fully automated. The hydropower plant will provide L Ormarins with eight months of clean energy a year, which the estate will bank for the dry season by feeding it back into the grid (WCG, 2017c). The pipe track at L Ormarins delivering water to the turbines from the weir above (left) and the Ossberger turbines (right). Figures extracted from the WCG website (2017). The most significant hydroelectric power scheme in the Western Cape is the 580 MW Steenbras / Palmiet Pumped Storage Scheme which is located in the Kogelberg Biosphere Reserve. The scheme plays a dual role of firstly providing peaking power for Eskom and secondly through its reversible pump turbines, providing water for Cape Town as part of an Interbasin Transfer Scheme. State of Environment Outlook Report for the Western Cape Province 16

26 Biomass Biomass, including trees, crops, animal remains, animal waste, and anything living or recently deceased has the potential to contribute to Western Cape energy needs through a wide range of conversion processes. At present biomass it is primarily used for cooking or for heating in lowincome households (DEA&DP, 2007), but large scale production and use, for commercial production or distributed micro-generation is possible. Bulk biomass energy production typically requires extensive dedicated farming or forestry activities, but may draw on existing agricultural waste products. It has the potential to enhance rural economic activity and job creation, but also goes hand-in-hand with environmental and socio-economic concerns such as land degradation or compromised food security. Further impacts result from the beneficiation of biomass or reprocessing of oils. Biomass is also used for direct application in the industrial sector as a feedstock for boilers or furnaces. Domestic use of biomass occurs mostly in poor households, where access to electricity from the national grid is unavailable or unaffordable. Often, over-exploitation of natural woodlands and unsound harvesting practices lead to serious environmental problems in many rural areas. Newer technologies such as biomass digesters create opportunities to meet domestic energy needs through micro-generation without resorting to excessive wood burning Biofuel Biofuels are largely derived from biomass, and as such are cleaner than fossil fuels. From October 2015, fuel producers in South Africa have been required to blend diesel and petrol with biofuels at a minimum of 5% biodiesel in diesel and 2-10% of bio-ethanol in petrol. While biofuels could reduce the country s reliance on imported fuel, the biofuels sector in South Africa has been hampered by an inadequate regulatory regime and concerns that biofuels might affect food security and food prices. Maize, which is South Africa s staple food, will not be used in the production of biofuels to ensure food security and control prices. The biofuels sector has strong linkages to agriculture, manufacturing and distribution and could create substantial numbers of labour-intensive jobs, particularly in the agricultural sector (South African Government, 2017) Waste to energy In December 2016, New Horizons Energy opened Africa s first multi-million rand waste-to-energy plant in Athlone, Cape Town. At this plant, general municipal and commercial waste is transformed into renewable energy sources, viz. compressed biomethane and liquefied, foodgrade CO2 (NH Energy, 2017). Although not considered a significant source of energy, many local municipalities are investigating the viability of waste to energy plants, which are discussed further in the Waste chapter. 3.2 Energy mix and energy demand South Africa s electricity demand is expected to double by 2036 (GCIS, 2017), and the National Development Plan (NDP) envisages that by 2030, South Africa will have an energy sector that promotes economic growth and development based on adequate investment in energy infrastructure. The plan further envisages that by 2030 South Africa will have an adequate supply of electricity and liquid fuels to ensure that economic activity and welfare are not disrupted, and that at least 95% of the population will have access to grid or off-grid electricity. The NDP proposes that gas and other renewable resources will be viable alternatives to coal and will supply at least MW of the additional MW needed by Other 17 State of Environment Outlook Report for the Western Cape Province

27 recommendations in the NDP include diversifying power sources and ownership in the electricity sector and supporting cleaner coal technologies. The DoE places an emphasis on broadening electricity supply technologies to include indigenous and imported gas, as well as nuclear, biomass and renewable energy sources to meet the country s future electricity demand and reduce emissions (South African Government, 2017). The erstwhile Department of Minerals and Energy published a Renewable Energy White Paper in 2003 which stipulated a target of GWh produced from renewable energy by This White Paper has been superseded by integrated electricity supply planning that includes renewable energy as a component. Specifically, the IRP 2010 expects that renewable energy will contribute 18.2 GW of new capacity by 2030 (about 42% of the country s energy requirements). Wind will contribute 8.4 GW to this total; solar PV 8.4 GW; concentrated solar 1 GW and other renewables 0.4 GW. The Integrated Resource Plan is a 20-year projection on electricity supply and demand. In terms of the IRP, the South African Government has committed itself to an energy mix consisting of coal, gas, hydro, nuclear, solar and wind. The IRP makes provision for the following in an attempt to find a balance between economic growth, job creation, security of supply and sustainable development (IRP, 2010): Inclusion of solar PV as a separate technology option with an assumed roll-out of 300 MW per year starting in 2012; Bringing forward the increased power generation from coal, originally only expected after 2026, and making provision for imported coal; Securing a minimum of 711 MW from closed cycle gas turbine (CCGT), potentially using LNG, between 2019 and 2021 (thus improving security of energy supply by providing backup to renewable energy); Modifications to the roll-out of wind and Concentrated Solar Power (CSP) to accommodate solar PV options, with a disaggregation of the previous renewable grouping into constituent technologies: wind, solar CSP, and solar PV. The Draft Integrated Energy Plan (2016) states that South Africa should continue to pursue a diversified energy mix to reduce reliance on a single or few primary energy sources. It proposes that: Coal should continue to play a role in energy generation, however investments need to be made in new and more efficient technologies; Nuclear power needs to play a more significant role in the provision of new baseload generation, depending on the cost and financing of nuclear reactors. The first unit of the New Nuclear Build Programme should be brought on line by 2030, however additional capacity should be implemented at a scale and pace that will not negatively affect the economy; Natural gas presents the most significant potential in the energy mix. Local exploration to assess the magnitude of recoverable shale and coastal gas needs to be pursued in line with the relevant regulations; Crude oil is anticipated to make a low contribution in the energy mix, based on the assumption that lower priced gas will be available and that no externality costs will be imposed on imported refined liquid fuels; Solar PV and Concentrated Solar Power with storage present excellent opportunities to diversity the electricity mix and to provide off-grid electricity; State of Environment Outlook Report for the Western Cape Province 18

28 Wind presents an alternative source of power, but is largely limited to the windy areas on the coasts; and Biomass can play a role as a feedstock for cogeneration and in the provision of electricity close to the source. Five of Eskom s older existing coal fired power stations in Mpumalanga (Camden, Grootvlei, Kriel, Hendrina and Komati) have been earmarked for decommissioning over the next 5 years (about MW) (South African Government, 2017). This has led Public Enterprises Minister Lynne Brown to call on Eskom to complete Socio-Economic Impact Assessment (SEIAs) for a number of its power stations to inform deliberations on the future of these power stations as South Africa transitions towards a more diversified energy mix. The timing of any closure could be influenced by demand for electricity, which has remained almost flat for nearly a decade, owing to weak economic growth and suppressed demand associated with electricity shortages (Creamer Media, 2017). Close to MW of new coal capacity will however be contracted, a portion of which from other southern Africa countries (South African Government, 2017). 3.3 Energy use Information on energy use is primarily sourced from the unpublished 2015 Energy Consumption and CO2e Emissions Database for the Western Cape, and preliminary data from the 2017 database (DEA&DP, 2015c, 2017). Figure 3-9: GJ of energy consumed in the Western Cape Source: DEA&DP, 2015c, 2017 Energy consumption in the province (excluding aviation and marine consumption) increased from GigaJoule (GJ) in 2004 to GJ in 2009, reduced to GJ in 2013, and then increased to GJ in Per capita energy consumption in the province decreased from 64 GJ in 2009 to 46 GJ in 2013, then increased slightly to 48 in 2016 (refer to Figure 3-9 above). It should be noted there is no consistent collection and analysis of data, but the emerging trends are instructive. 19 State of Environment Outlook Report for the Western Cape Province

29 Percentage of total provincial consumption (GJ) Table 3-1: Key energy use and CO₂e emissions Indicators for the Western Cape, 2016 Indicator Unit of measure Western Cape 2016 Total energy GJ Total energy related GHG emissions tco₂e Energy consumption per capita GJ/capita 48 GHG emissions per capita tco₂e 6 Energy consumption per GDPR (R/mill) GJ/GDPR 792 Energy related GHG emissions per GDPR (R/mill) tco₂e/gdpr 103 Source: DEA&DP, 2015c Figure 3-10 shows the proportion of energy used by district municipality within the Western Cape in 2013 and 2016 respectively (DEA&DP, 2015c, 2017). 70% Energy consumption by district as a proportion of total provinical consumption 60% 50% 40% 30% 20% 10% 0% City of Cape Town West Coast Cape Winelands Overberg Eden Central Karoo Figure 3-10: Energy consumption by district / metropolitan municipality as a proportion of total provincial consumption in GJ for 2013 and 2016 Source: DEA&DP, 2015c, 2017 Clear distinctions are evident with CCT, as expected, being the heaviest user of energy. However, the proportion of total provincial energy used by the CCT decreased by approximately 5% between 2013 and 2016, offset by growth in the proportion of energy consumed in the West Coast, Overberg and Eden Districts. The energy-intensive heavy industry of the sparsely populated West Coast (notably the iron and steel and cement/sand industries) explains why this district is the second-highest energy consumer. Eden and Cape Winelands Districts include some of the larger towns in the province, including George, Mossel Bay, Paarl and Stellenbosch although activities in these regions are less energy-intensive. Absolute consumption figures between 2013 and 2016 indicate that consumption by CCT and West Coast increased, Cape Winelands and Overberg remained largely the same, and Central Karoo and Eden consumed slightly less (DEA&DP, 2015c). State of Environment Outlook Report for the Western Cape Province 20

30 Energy use in South Africa as a whole is characterized by a high dependence on historically cheap and abundantly available coal for industrial application and electricity generation, as well as imported crude oil. As shown in Figure 3-11, electricity, coal, petrol and diesel also dominate the mix of fuel consumed in the Western Cape, in that order (WCG 2015, 2017). This demonstrates the enormous reliance on fossil fuel in the province, as well as imported oil. This renders the province vulnerable to disruptions in fairly complex supply lines. The analysis also points out that the direct use of coal (on site) by industry contributes substantially to the provincial energy profile. Between 2013 and 2016, the Western Cape s use of grid-based electricity decreased by 3%, direct use of coal increased by 5%, and the use of jet fuel remained constant at 5% of overall energy use. However, when absolute figures are considered, energy consumption has gone up across almost all fuel types (DEA&DP, 2017). Figure 3-11: Western Cape energy use by fuel type in 2013 (top) and 2016 (bottom) Source: DEA&DP, 2015c, State of Environment Outlook Report for the Western Cape Province

31 Reliance on fossil fuels also translates into the release of GHG. Including aviation but excluding international marine consumption, total energy consumption in the Western Cape was GJ in This equates to tonnes of carbon dioxide equivalent (CO2e) (DEA&DP, 2015c). In terms of a sectoral energy use, transport and industry seem to be solidly entrenched as the heaviest energy users. The Energy Consumption and CO2 Emissions Database for the Western Cape attributes 54% of energy consumption in the province to the transport sector, followed by industry at 29% (Figure 3-12). This compares to 2013 consumption of 53% and 31% respectively. In terms of preferred energy source, transportation relies heavily on liquid fuels (petrol and diesel) whereas industry favours coal and electricity. Across the province, the residential/household sector is only responsible for approximately 9% of energy consumption. Together with commerce, the built environment consumes some 14% of total energy (DEA&DP, 2017). However, if the use of electricity is factored in, the built environment s energy use is likely to be proportionally larger (DEA&DP, 2013). Figure 3-12: Western Cape energy use by sector Source: DEA&DP, Energy intensity For the purposes of this report, energy intensity refers to the relative amount of energy required to produce a unit of economic value. The provincial energy intensity in terms of population and GDP has already been discussed in section 3.3, therefore this section provides a comparison of the intensity of energy use between the Districts of Western Cape. The West Coast District is the most energy intensive in the province, mainly due to direct use of coal by industry. Energy intensity in the City of Cape Town is much lower, as the City s economy is based on the service sector. Although it contributes 74% to provincial GDPR, the City accounts for only 60% of the province s energy use (DEA&DP, 2017). State of Environment Outlook Report for the Western Cape Province 22

32 GJ/ R million Energy per GDP for each District of the Western Cape Cape Town West Coast Cape Winelands Overberg Eden Central Karoo Figure 3-13: Energy per GDP for each district of the Western Cape Source: DEA&DP, 2017 In 2012/13, the Western Cape s overall energy per GDPR was 629 GJ/R mill. 3.5 Domestic energy use This indicator shows trends in the domestic use of energy Electricity The 2016 Community Survey indicates that 97% of households in the Western Cape have access to electricity, the highest access level in South Africa (StatsSA CS, 2016). Access to electricity in the province has improved steadily, from 83.5% in 2005, 93.4% in 2011 to the current figure (StatsSA, 2012a; SoEOR, 2005). Use of electricity for lighting was tracked in the 2011 census and the 2016 community survey, and increased in all provinces (refer to Figure 3-14). The Western Cape had the highest percentage of electrified households in 2016 (97.18%), followed by Limpopo (94.38%), while the Eastern Cape had the lowest percentage (85.68%) (StatsSA CS, 2016). 23 State of Environment Outlook Report for the Western Cape Province

33 Percentage of Households using Electricity for Lighting Census 2001 Census 2011 Census 2016 CS Figure 3-14: Percentage of households using electricity for lighting Source: StatsSA 2006, 2001, 2011, 2016 The most recent information (from the StatsSA 2016 community survey) shows that the City of Cape Town has the highest percentage of households with access to electricity (98%), while households in the Eden District Municipality have the lowest access (96%). Figure 3-15: Household access to electricity in the Western Cape Source: StatsSA CS, Alternative fuels Various alternative fuels are used by households as substitutes for electricity or as primary energy State of Environment Outlook Report for the Western Cape Province 24

34 sources. These include gas (LPG), paraffin, wood, coal (anthracite), animal dung and small scale solar. The 2016 community survey reveals that approximately 2% of lighting needs, 9% of cooking needs and 14% of heating needs are powered by alternative fuel sources (StatsSA CS, 2016). Paraffin is preferred for lighting and heating, whilst gas is the preferred substitute for cooking. Of concern is that wood, coal and animal dung constitute approximately 1% of energy for cooking and 3% for heating. Typically, fuel is burnt indoors, which means that over households are exposed to indoor air pollution and its associated health impacts, as well as increased risk of fire. The collection of biomass also causes deforestation and affects ambient air quality. Although the use of alternative fuels is commonplace in rural households, its use in newly electrified and/or urbanised households also persists for a variety of reasons, including cost, free availability, cultural reasons, insufficient money to buy appliances to run off other energy forms and general preference (DEA&DP, 2007). 3.6 Reliability of energy supply A secure energy supply is essential for modern economies. Recurring national power shortages and rolling load shedding, as occurred in South Africa in 2014 and 2015, hinder economic growth, deter investment and impair livelihoods. At present, the outlook for security of the energy supply in South Africa remains uncertain (DEA&DP, 2016). In 2015, an International Monetary Fund (IMF) team visited South Africa to discuss the outlook, risks and policy challenges faced by the South African economy and cited electricity shortages as one of the key constraining factors to real GDP and per capita income growth. According to the IMF, the severe electricity shortages in South Africa are: the greatest obstacle to growth, reducing economic activity, sapping confidence, and discouraging investment (IMF, 2015). A report by Statistics South Africa (2015) confirms that electricity generation has declined since early 2011, which is likely to affect economic growth (WCG, 2015). Figure 3-16: Electricity production in South Africa, Source: StatsSA, 2015 The unreliable energy supply in South Africa threatens to undermine local economic development goals in the municipalities in the Western Cape. Energy efficient technology, as well as private solar PV installations are potential solutions to energy insecurity, although the fact that municipalities derive up to 70% of their revenue by providing energy (electricity) is a complicating factor. Typically, municipalities use this income to maintain and expand the municipal electricity 25 State of Environment Outlook Report for the Western Cape Province

35 distribution network, as well as other municipal services. However, as Eskom s tariffs increase, municipal revenue margins decline, as costs cannot be fully recovered from consumers (DEA&DP, 2015). Uncertainty regarding the reliability and price of electricity can pose a serious threat to local economic development goals in municipalities in the Western Cape. Energy efficiency retrofits and small scale embedded generation, (such as solar rooftop PV installations) can assist individual businesses and residences with energy security and contribute to supply stability. In order to secure the distribution grid, some municipalities are considering reintroducing a tariff which separates the energy (per kwh) charge from an availability or service charge for the residential sector, i.e. where a house can be grid connected (i.e. an electricity connection is provided), an availability charge will be levied whether the house uses electricity or not. In addition, municipalities are trying to ensure that subsidized tariffs are better targeted to the poor (rather than also subsidising middle/high income households). Smart metering technology can assist municipalities (and business owners and householders) to manage electricity demand and supply, but there remain vexed questions regarding which smart meters to install, who should bear the cost and the actual return on investment from smart metering. The StatsSA Community Survey in 2016 reports that 6.82% of households in the Western Cape reported an interruption to their electricity supply in the preceding three months (Figure 3-17). The Central Karoo District Municipality had the highest proportion of households reporting interruptions (13.98%), followed by the West Coast District Municipality (10.37%), while the City of Cape Town Metropolitan Municipality had the lowest proportion (5.95%) (StatsSA CS, 2016). Figure 3-17: Percentage of households experiencing an interruption to their electricity supply by metropolitan/district municipality Source: StatsSA CS, 2016 State of Environment Outlook Report for the Western Cape Province 26

36 In the Western Cape, over 30% of interruptions exceeded 12 hours (Figure 3-18), while in the Eden and Cape Winelands District Municipalities, 45.96% and 45.91%, of interruptions exceeded 12 hours, respectively). In the Central Karoo District Municipality, only 8.2% of electricity interruptions lasted longer than 12 hours (StatsSA CS, 2016). Figure 3-18: Percentage of household electricity interruptions lasting longer than 12 hours by metropolitan/district municipality Source: StatsSA CS, IMPACTS This section provides an overview of the effects or impacts of the generation, transmission, distribution and use of energy on the environment Generation of emissions and greenhouse gases The single most concerning impact is the close relationship that exists between the generation of energy and the release of greenhouse gases. This is particularly relevant for fossil fuel derived energy. Fossil fuels emit gases that accumulate in the atmosphere and intensify the earth s natural greenhouse effect, contributing to climate change. Based on 2016 figures, tonnes of CO2e were released annually to supply energy in the province. Although this is a reduction from the 2009 figure of tonnes of CO2e, it is a substantial increase over 2013 ( tonnes of CO₂e). This increase is likely due to an increase in energy consumption in all sectors, as well as a change in the methodology used to obtain coal emission data. The transport sector is the largest consumer of energy in the province, at 54% (DEA&DP, 2017). It is completely reliant on either coal-based electricity or petrol/diesel powered combustion engines that emit hazardous gases that contribute to the greenhouse effect. However, the sector is calculated to only contribute 30% of total provincial GHG emissions as liquid fuels have a lower emissions factor than coal-based electricity (WCG, 2017). The environmental effects of transportation are especially aggravated on a local scale because emissions occur in close proximity to areas of high human exposure, e.g. towns and cities. Energy used for transport also affects resources (water used in power generation, and hydrocarbon pollution) and soil (hydrocarbon pollution from spillages). 27 State of Environment Outlook Report for the Western Cape Province

37 Sectors that are more dependent on fossil-fuel derived electricity, such as industry and the built environment, have relatively high contributions to provincial GHG emission total. Industry constitutes 36% of the provincial emissions and the built environment 29% (DEA&DP, 2017) Environmental contamination and degradation The generation of coal-based electricity in South Africa is not only responsible for the bulk of our GHG emissions, but also goes hand-in-hand with impacts associated with the mining and beneficiation of minerals. Mining activities disturb and damage the earth s surface and can also affect water resources through excessive abstraction or polluted acid mine drainage. The mining industry in South Africa is also responsible for many toxic (by)-products, such as methane, uranium, thorium, and other radioactive and heavy metal contaminants. In addition, raw materials (coal) need to be transported between mines and power stations, which itself requires energy and extensive infrastructure. In comparison, solar and wind power generation do not emit harmful gases since no fuels are combusted during the generation of electricity, although the manufacture of generation equipment, installation of infrastructure and operational processes can have impacts on the environment Impacts on water resources Energy use and water use are interdependent. Water is required to generate energy, while energy is required to convey and treat water. Figure 4-1 below depicts some of the interdependencies between water and energy (GreenCape, 2017e). Figure 4-1: Interdependencies between water and energy Source: GreenCape, 2017e In terms of solar energy, photovoltaic systems do not require any water to create electricity, although maintenance of photovoltaic panels often requires water. Solar-thermal technologies on the other hand often require water to generate steam, although some of the steam can be condensed back to water and re-used. Wind energy systems do not use water. Besides the direct use of water, energy generation can also affect water quality. Water used for cooling in power plants is released back into the environment at much higher temperatures, causing thermal pollution which can harm aquatic ecosystems, especially during warmer months when species are already close to their heat tolerance limits. Improper storage or disposal of waste created by coal mining can contamination water resources, and minerals unearthed during hydraulic fracturing have the potential to contaminate groundwater resources (UCSUSA, 2017). Hydropower facilities usually require the construction of dams, impacting on downstream freshwater ecosystems by changing river or stream flows, both in terms of volume and seasonality. State of Environment Outlook Report for the Western Cape Province 28

38 4.4. Loss of biodiversity The generation and transmission of energy can lead to the direct loss of biodiversity, primarily through the loss of indigenous vegetation and habitats required for the construction of power plants, transmission lines and associated infrastructure. This is of particular concern where renewable energy facilities are proposed, as these are often located in areas in which there is competition for land which is otherwise used for conservation purposed. In addition, bats and birds are often killed in collisions with transmission lines, and recent studies indicate that the impacts of wind farms on bats and birds could also be significant. The Impact of Wind Energy on Bird and Bat Mortalities The proliferation of wind energy in recent decades is viewed as a positive step towards reducing fossil fuel consumption, thereby aiding efforts to curb the impacts of anthropogenic climate change. Although renewable energy is a much needed alternative to fossil fuels, these forms of energy have their own set of environmental impacts. Notably, wind energy is known to have negative impacts on bats and birds which can fatally collide with spinning turbine blades or turbine towers. This is a global phenomenon with fatalities reported in Australia, the USA, Canada, Europe and South Africa. Only two of the wind farms installed in the province since 2012 have environmental monitoring to determine the impacts on bats. In the first year of monitoring, 29 bat carcasses were found, which is considered likely to be an under representation of the true number of bat fatalities that could have occurred during the study period (Jonathan Aronson, pers.comm) Human health As indicated previously, the use of alternative fuels in household applications can have severe implications for human health and the environment, especially where the burning of biomass, paraffin or coal is involved. Conversion to cleaner burning fuels such as LPG gas can improve the efficiency of energy use and reduce local (indoor) emissions and pollution. It should however be noted that the use of more efficient forms of energy, such as electricity, does not necessarily lead to an overall reduction in environmental impact since the impact remains partly dependent on the total amount of energy that is used. For example, more efficient energy mediums could be more affordable and therefore lead to an increase in energy usage Visual impacts Energy transmission structures such as pylons and substations can be visually obtrusive, depending on the scenic value of the area and the type and height of the structures. Earthworks for the construction of energy transmission infrastructure can also be visually unappealing. The construction of energy infrastructure, or the energy infrastructure itself, can also cause scarring of the landscape and compromise sense of place. 5 RESPONSES There are various responses in the form of policies, tools and legislation applicable to energy across all spheres of government. These responses are listed in Annexure A. Other responses to air quality are discussed below Southern African Power Pool 29 Transmission lines in picturesque Rawsonville, Western Cape. State of Environment Outlook Report for the Western Cape Province

39 The Southern African Power Pool (SAPP) was created in August 1995 with the primary aim of providing a reliable and affordable electricity supply to the consumers of each of the SAPP members, consistent with the reasonable use of natural resources and the effects on the environment. The SAPP allows free trading between Southern African Development Community (SADC) member countries, providing South Africa with access to the vast hydro-power potential in countries to the north, notably the significant potential in the Congo River (South African Government, 2017) National programmes The DoE is mandated to ensure secure and sustainable provision of energy for socio-economic development. This is achieved by developing an Integrated Energy Plan, regulating the energy sector and promoting investment in accordance with the Integrated Resource Plan. The DoE s strategic goals include, amongst others, ensuring that the energy supply is secure and demand is well managed, that there is an efficient and diverse energy mix for universal access within a transformed energy sector and to implement policies to adapt and mitigate the effects of climate change (South African Government, 2017). The National Energy Regulator of South Africa (NERSA) is a regulatory authority mandated with regulating the electricity, piped gas and petroleum pipelines industries. NERSA s strategic objectives largely align with those of the DoE, and are aimed at, amongst others, promoting a secure energy supply to meet current and future needs, creating a regulatory environment that facilitates investment in energy infrastructure, promoting competition and competitiveness within the energy industry, and accessible and affordable energy for all citizens Integrated Resource Plan for Electricity The Integrated Resource Plan for Electricity 2010 to 2030 (DME, 2010) is the principal policy regarding the planned mix of electricity generation and supply in South Africa. The IRP 2010 contends that an acceptable balance between affordability, carbon emissions reductions, uncertainties around new technologies, water usage, job creation and security of supply, will result in an energy mix that still relies heavily on coal-based electricity. Nevertheless, large components of future capacity will be satisfied through nuclear (25%), renewable energy (42%) and gas (25%), with the remainder provided by coal. Demand side management programmes will also be instituted to reduce total energy requirements. The IRP was promulgated in March 2011 and is considered a living plan. Revision 1 of the IRP was released for public comment in November 2016 and is expected to be finalised during the first quarter of The IRP revision includes updates to assumptions relating to technology costs, electricity demand projection, fuel costs and the performance of Eskom s existing fleet of power generators Integrated Energy Plan The development of a National Integrated Energy Plan (IEP) was envisaged in the White Paper on the Energy Policy of the Republic of South Africa of 1998 and, in the National Energy Act 34 of The purpose of the IEP is to guide future energy infrastructure investments and policy development. The IEP analyses current energy consumption trends in different sectors of the economy) and predicts future energy requirements, based on various scenarios (DoE, 2017). The draft IEP Report was released for public comment from November March 2017 and had not yet been finalised at the time of publication Renewable Energy Independent Power Producers Procurement Programme The Renewable Energy Independent Power Producer Programme (REIPPPP), a supply-side State of Environment Outlook Report for the Western Cape Province 30

40 response from the DoE, facilitates private investment in renewable energy to feed into the national electricity grid. In addition to addressing energy shortages, the REIPPPP assists South Africa in achieving its GHG emissions reduction targets, promoting Broad-Based Black Economic Empowerment (BBBEE) and facilitating localisation (DEA&DP, 2014 and DEA&DP, 2015). The REIPPPP commenced in 2011, and was initially considered relatively successful: National Treasury reports that as at October 2015, 92 projects had been selected to participate in the programme, attracting R193 billion in private sector investment. Approximately 30% of this investment is from foreign sources (DEA&DP, 2016). This momentum has recently slowed due to delays in concluding power purchasing agreements between Eskom and IPPs Energy Efficiency Strategy The DoE s Post-2015 National Energy Efficiency Strategy (1st draft, September 2016), sets targets and guides the implementation of energy and demand savings through independent measurement and verification. The strategy includes an analysis of potential opportunities for energy saving in South Africa, mass energy efficiency programme roll-outs and individual sectoral strategies for energy efficiency gains (DoE, 2016). A related initiative to promote energy efficiency is the amendment of sections 12(i) and 12(l) of the Income Tax Act 58 of 1962 to incentivise companies to minimise electricity use. Recognising that transportation plays a significant role in energy efficiency, the Energy Efficiency Strategy includes specific targets for efficiencies in the transport sector, and alludes to a carbon tax on less fuel efficient vehicles. The intended outcome is a greater uptake of public transport. However, sector targets and actions are still voluntary targets, with limited enforcement and few requirements for the private sector to initiate such actions Draft Carbon Tax Bill In November 2015, the National Treasury published the Draft Carbon Tax Bill for comment. One of the aims of this Bill is to facilitate South Africa s transition to a low-carbon economy. If the Bill is implemented, activities and industries requiring fossil fuel will be required to contribute to the National Revenue Fund. The price of electricity is not expected to be affected during the first phase of the implementation of the Carbon Tax (estimated until 2020). It is anticipated that the amended Carbon Tax Bill should be released for public consultation and tabled in Parliament by mid-2017 (Martineau, 2017) Draft Policy of Sustainable Hydropower Generation The Draft Policy on Sustainable Hydropower Generation was gazetted for public comment by the Minister of Water and Sanitation in July The draft policy explains the important role that hydropower plays in the sustainable energy mix, which is expected to deliver MW by 2030, one third of the MW target in the National Development Plan. The draft policy recognises that licensing procedures need to be simplified, and commits to engagement with IPPs who wish to install small < 20 KW) and large (> 10 MW) hydropower installations (WCG, 2017c) Draft National Liquified Petroleum Gas (LPG) Strategy The objectives of the National LPG Strategy, which was submitted to cabinet in 2011/12, are to provide access to safe, cleaner, efficient, portable, environmentally friendly and affordable 31 State of Environment Outlook Report for the Western Cape Province

41 thermal fuel for all households and to switch low income households away from the use of coal, paraffin and biomass to LPG. LPG is considered one of the safest, cleanest and most sustainable energy sources, and the strategy highlights options that could be adopted for the orderly development of the LPG industry in South Africa to make LPG the carrier of choice for thermal applications (South African Government, 2017) National Transport Master Plan The National Transport Master Plan (NTMP), finalised in 2011, explains that due to the interconnectedness between energy and the environment, and the transport sector s significant contribution to energy use in South Africa, energy and environmental considerations must be incorporated into the NTMP. To this end, the NTMP includes the following strategies (Department of Transport, undated): Implement fuel efficiency measures where less oil-derived fuel is used to shift the same quantity of freight or transport the same number of passengers; Reduce the quantity of freight and the number of passengers; Change the mode in which freight and passengers are transported; and Encourage increased use of public transport Western Cape Provincial responses Western Cape Climate Change Response Strategy The Western Cape Government has recognised the need for a more sustainable energy sector, and the province s intention to decouple economic growth from high carbon fossil fuels and transition towards a low carbon economy is described in the province s Climate Change Response Strategy. The strategy contains climate change focus areas for the province, including energy efficiency and demand side management, renewable energy and sustainable transport (DEA&DP), 2016). The strategy is under review and the revised Strategy should be finalised in the 2018/19 financial year Climate Change Mitigation Scenario In February 2014, the DEA&DP commissioned a Climate Change Mitigation Scenario study for the Energy sector in the Western Cape. The study is largely based on the biennial provincial energy and emissions database. The database is intended to improve the province s understanding of key energy and emissions issues and provide management priorities. The Climate Change Mitigation Scenario also aligns with the objectives of mitigation as described in the Western Cape Climate Change Response Strategy (2014). The study found that with all 2 possible mitigation measures applied, except for fuel switching, emissions from energy consumption in the Western 2 All mitigation measures included and modelled in the scenario exercise State of Environment Outlook Report for the Western Cape Province 32

42 Cape can be reduced from a predicted rate of increase of 2.3% per annum to an average annual increase in emissions of 1.1% up to 2040 (DEA&DP, 2015b). The largest gains in terms of mitigation are in power generation, where the measures entail replacing coal-fired power plants with renewable energy plants and natural gas fired plants. The top five of these proposed measures with the highest emissions abatement potential include: Using onshore wind for power generation (8% reduction in emissions); Shifting passengers from cars to public transport (6% reduction in emissions); Solar PV (concentrated) (6% reduction in emissions); Natural Gas Combined Cycle Gas Turbine (6% reduction in emissions); Improved efficiency petrol and diesel Internal Combustion Engine (4% reduction in emissions) Western Cape Energy Consumption and CO2 Database Every two years the DEA&DP commissions the Energy Consumption and Energy Related 3 Greenhouse Gas Emissions Database for the Western Cape, indicative of the Western Cape s proactive engagement with energy and climate change challenges. The database supports the province s strategic goals, specifically related to the Western Cape Climate Change Response Strategy (2014). The objectives of the database are the following (DEA&DP, 2015c): To provide an overarching energy consumption and carbon dioxide equivalent emissions inventory, in order to track energy and related carbon emissions over time; To deepen the province s understanding of key energy and emissions issues and management priorities, in terms of sector consumption and geographic distribution of consumption; To provide energy use and emissions profiles up to the district and local municipality level, where possible; To contribute to national efforts to collect energy and emissions data for improved energy planning and climate response action Department of Economic Development and Tourism s Green Economy Subprogramme The Green Economy unit within the Department of Economic Development and Tourism (DEDAT) has a strategic objective of establishing the Western Cape as the leading green economy hub in Africa by 2022 (Ajay Trikam, pers. comm). The sub-programme s approach to achieving this strategic objective is twofold (1) developing a new green sector i.e. the development of new value chains for green technologies and services related to sustainable natural resource use the supply side - and (2) greening the economy by improving resource efficiency and optimisation, and by mitigating environmental risk in the economy - the demand side. While the creation of a new sector provides new job creation and economic growth opportunities, the greening of the economy is aimed at enabling the economy to survive current-, and build resilience to, future- resource shortages, uncertainties, price increases and the increased focus on environmental externalities (Ajay Trikam, pers. comm). Main initiatives to advance the green economy fall into seven categories, namely: cluster development and support; energy; water; agriculture; waste and pollution, ecosystems; and alternative building materials and design. Initiatives in these key areas not only comprise DEDAT 3 The first version of this database (published in 2012 based on 2009 data) included energy and waste related greenhouse gas emissions. Waste related emissions have been excluded from subsequent updates due to a lack of updated waste characterisation data. 33 State of Environment Outlook Report for the Western Cape Province

43 funded activities but also work undertaken in the Green Economy by other provincial departments and initiatives. Lastly, the WCG s approach to improving energy and water consumption in its own facilities has enabled the Western Cape Government to lead by example, as well as grapple with and overcome key barriers, such as financing models and procurement processes, to support other government bodies embarking on this journey (Ajay Trikam, pers. comm) Energy Security Game Changer The Provincial Strategic Plan for the Western Cape ( ) describes several priority projects in the province - referred to as game changers - which could significantly improve lives of citizens. Energy Security is one such game changer. Towards the end of 2014, the Western Cape Government and the City of Cape Town, along with the Stellenbosch, George, Drakenstein, Saldanha Bay and Mossel Bay local municipalities, began to collaborate on formulation of the Energy Security Game Changer. After two design labs in 2015, implementation of the Energy Security Action Plan commenced in The overarching goal of the Energy Security Action Plan is to ensure sufficient power to sustain livelihoods and grow business in the province. In order to achieve this goal, the Action Plan aims to contribute 10% to the electricity needs of the Western Cape by 2020, thus reducing the province s demand from Eskom. The Game Changer focuses on priority levers that are relatively easy to implement, including the installation of rooftop solar PV, investment in energy efficiency, and solar water heaters. Other focus areas include enhanced load management (i.e. managing the electricity grid to reduce peak demand) and diversifying the supply of electricity in the province through IPPs (WCG, 2017a and WCG, 2017b). Each lever has set outcomes and targets for 2020, informed by a rigorous stakeholder engagement process. Outcomes and targets are as follows (DEA&DP, 2016): Enhanced uptake of rooftop PV: increase the installed capacity of rooftop PV to 135 MW; Enhanced uptake of efficient water heating: increase the installed solar water heaters or heat pump units to 155,000; Reduced energy consumption in public and private buildings: 30% decrease in energy consumption in provincial government buildings; Enhanced load management: operate the electricity grid efficiently in order to reduce peak demand and reduce the likelihood and impact of load shedding; and Increased electricity generation through wind, solar and natural gas: increased diversity of electricity supply through IPPs. The third design lab was held in May 2017, to assess the goals of the first two design labs, and progress towards these goals. The successful execution of the goals set by the Game Changer depends on the continuous engagement and cooperation of various stakeholders with the government and the private sector (DEA&DP, 2016) Property efficiency reporting In 2014, the Department of Transport and Public Works (DTPW) established a Public Works Green Economy Steering Committee to assist the department in fulfilling its commitment to green building principles. The Steering Committee coordinates green initiatives in the Department of Public Works (DPW), including developing green policies relating to the following (DEA&DP, 2016): Utilities and efficient energy/resources utilisation; Modernisation/green building principles; and State of Environment Outlook Report for the Western Cape Province 34

44 Driving various pilot studies (e.g. Solar/PV Rooftop Study). Measuring current resource use patterns in Western Cape Government Buildings, and reporting on these resource use patterns are the first steps in improving resource efficiency in government buildings. The DTPW released the first Property Efficiency Report (PER) (2011/2012), which benchmarked and reported the resource use of all government owned and some leased properties within the Cape Town city centre. The PER annually monitors, reviews and analyses sustainability and resource efficiency within the Western Cape provincial estate. The 2015/2016 PER examined the performance of 36 offices ( m² in total) and reported on the performance of government buildings with regards to efficiency and sustainability. The PER also recommends improvements and monitors sustainability on an annual basis as a performance indicator, setting targets for improvements (DTPW, 2016) Atlantis Greentech Special Economic Zone In 2011, the CCT in collaboration with the Western Cape government established a green technology (greentech) hub in Atlantis, which attracted investment worth over R500 million from major greentech companies. Greentech refers to technology that minimises environmental effects, and includes renewable energy technology such as wind turbines, solar panels, electric vehicles and green building materials. The City facilitated investment by making subsidised land available to greentech companies, and offering financial and other incentives (GreenCape, 2017a). Other greentech successes in the Western Cape include the opening of factories by Skyward Windows (manufacturers of double glazing) and LED Lighting SA, which together provided over 100 new jobs in the greentech sector. Drawing on the success of the greentech manufacturing hub, the Western Cape Government, assisted by GreenCape, has submitted an application to declare the entire Atlantis Industrial Area a Greentech Special Economic Zone (SEZ). Situated 40km from Cape Town and with easy access to major national roads, the proposed Atlantis SEZ will capitalise on the Western Cape s renewable energy and green technology sector (GreenCape, undated). A decision on the application is expected in 2017 (GreenCape, 2017c) Renewable energy training programme In order to build capacity within the renewable energy sector, the DEA&DP initiated a Renewable Energy Training Programme in Training provided by the programme includes four months of theory and two months of practical training in the installation of PV panels, associated electrical skills and simple plumbing. Fourteen trainees graduated from the first programme in 2016, and funding has been obtained for an additional ten candidates. The programme is a response to the necessity for upskilling and capacity building within the renewable energy sector, and thus contributes to the Energy Security Game Changer, job creation, entrepreneurship and local economic development (DEA&DP, 2016). The Energy Game Changer set a target of 30% reduction in energy consumption in the portfolio monitored by the PER by The 2015/2016 PER records a 6% reduction in energy use against 2014/2015. There are many opportunities for improvement within the Western Cape Government s estate, such as retrofitting of green technology, and the ue of smart metering (DEA&DP, 2016). 35 State of Environment Outlook Report for the Western Cape Province

45 5.4. Municipal responses Small scale embedded generation In July 2016, NERSA agreed to approve municipal small scale embedded generation (SSEG) tariffs in the interim, before national standards are finalised and a SSEG policy under the Electricity Regulation Act 4 of 2006 is published. CCT was the first municipality in South Africa to implement a SSEG tariff and, in collaboration with GreenCape, the Western Cape government has encouraged other municipalities in the province to embrace SSEG rules and regulations. The GreenCape Smart Electricity project, which aims to create an enabling environment for SSEG in the Western Cape, could lead to the installation of 30 MWp of rooftop installations by the end of The rooftop PV market, which includes installation, operation and maintenance of PV is projected at R2 billion between 2016 and 2019, with a prospective 3000 medium and low skilled jobs created (GreenCape, 2017a). As of March 2017, 15 municipalities within the Western Cape allow SSEG, with 10 of these municipalities having NERSA-approved SSEG tariffs and eight municipalities developing their own rules, regulations and by-laws (GreenCape, 2017b). Appendix C contains details of SSEG implementation in Western Cape municipalities CCT sustainable energy programmes Sustainable energy and reducing energy related carbon emissions is an important strategic focus for CCT. In 2015, CCT developed and approved an Energy2040 Goal, including associated energy and carbon targets for Cape Town. The Energy2040 Goal, which models a more resilient, resource efficient and equitable future for Cape Town, commits the City to diversifying Cape Town s energy supply and reducing carbon emissions. Energy2040 is propelling the update of the City s Energy and Climate Action Plan, which drives immediate action in the next five years towards achieving the targets. The City s goal is to achieve 37% reduction in carbon emissions (off a business as usual scenario) by 2040, requiring 13% less carbon emissions by Crucial to achieving this goal will be the ability to source 20% of Cape Town s energy from renewable sources. This requires a significant shift in the City s approach and control over energy supply sources. In order to put the necessary new emphasis on energy generation, the City has established a new Directorate of Energy as part of its restructuring process (outlined in the Organisational Development and Transformation Plan [ODTP]). This change is in line with ODTP priorities to position Cape Town as a forward-looking, innovative, globally competitive business city, and to enhance resource efficiency and security. The Directorate will be tasked with transforming the energy landscape in Cape Town so that the City will no longer merely just distribute electricity, but will also generate its own clean energy. State of Environment Outlook Report for the Western Cape Province 36

46 CCT projects include: 37 Electricity Savings Campaign: The City runs an electricity savings campaign for households. It aims to reduce electricity consumption and related CO2 emissions, and to increase energy security through a wide range of behavioural and technological changes. The commercial component of the Electricity Savings Campaigns includes an Energy Efficiency Forum (currently expanding to include water and water efficiency), established in The Forum is a networking platform for practical knowledge-sharing and collective action, targeted to assist owners and managers of commercial buildings to adopt energy efficiency measures, and improve resource efficiency in general. The residential component includes: o The Solar Water Heater Accreditation and Marketing Programme: The programme promotes installation of high-pressure residential solar water heaters and improved reliability, quality and standards of products and installations. The programme endorses accredited service providers, promotes solar water heater uptake through communication and educational campaigns to residents, trains service providers, monitors performance of the selected service providers and undertakes quality control; o Ceiling retrofit programme: CCT is retrofitting State-subsidised homes built between 1994 and 2005 without insulated ceilings and weatherproofing in order to improve indoor air quality, moderate indoor temperature, reduce condensation and mould, and reduce electricity consumption. Over 8000 units have been installed to date, and CCT is currently exploring plans to retrofit all RDP homes; Energy efficiency retrofits of public lighting and traffic lights: All traffic lights and more than 17% of street lights in Cape Town have been retrofitted with LEDs over the last few years (with funding and assistance from the national government); Energy efficiency retrofits of municipal buildings: As of October 2017, 44 municipal corporate office complexes have been retrofitted with energy efficiency lighting. This translates to 77% of municipal corporate office facilities been retrofitted. The City is also rolling out automatic meter readers in municipal operations; it has metered 24% of all municipal facilities. The programme includes energy management training for staff and behaviour change programmes for building users; SSEG: CCT is promoting the uptake of SSEG in the city by implementing a PV programme and instituting SSEG feed-in tariffs. The SSEG programme aims to remove barriers to the rooftop PV market through sector development and make PV more attractive to residential and commercial consumers. CCT has implemented tariffs, identified metering systems which are capable of measuring power flow in both directions, and implemented automatic billing systems which take into account both the purchase and sale of electricity. It has also published safe and legal guidelines for installation to guide end-users; Resource Efficiency Criteria for Development in Cape Town guidebook: CCT developed a reference guide to policy and legal directives relating to CCT s overall sustainability framework for the built environment. The guidebook includes site selection, construction materials, energy efficiency and water efficiency; State of Environment Outlook Report for the Western Cape Province

47 5.4.3 Sustainable transportation in CCT CCT is expanding the footprint of the MyCiti bus service across the city, thus lowering carbon emissions and the impact of pollution on the urban environment by reducing reliance on private cars. A CCT pilot project has added 10 low floor electric vehicles to the current fleet of diesel buses and intends to offset the energy requirements of the buses, in addition to using PV technology to power bus depots and workshops. The electric buses will contribute to CCT s sustainability goals in the following ways: Electric buses will be assembled locally and manufacturers of the bus bodies are required to meet minimum local content and production standards; Contractors will be employing local staff and will have to source some bus components from local suppliers; Vehicular emissions and reliance on fossil fuels will be reduced; and Economic and developmental opportunities will be created to foster investment and skills development in the bus manufacturing and solar PV industries in Cape Town (DEA&DP, 2016). CCT is committed to implementing the principles of Transit Oriented Development (TOD), and approved the TOD Strategic Framework in TOD serves as an innovative approach to addressing sustainability, urban inefficiencies and the socio-economic disparities in Cape Town. It will promote densification along key transport nodes, driving low carbon resilient development in Cape Town. Benefits of TOD include (CCT, 2016): Reduced household driving and consequently lowered traffic congestion, air pollution and greenhouse gas emissions Walkable communities that encourage healthy and active lifestyles Increased use of public transport and fare revenue Improved access to jobs and economic opportunities for low-income groups and working families Expanded mobility choices that reduce dependence on cars, reduce transportation costs and free up household income for other purposes. In addition to TOD, CCT encourages non-motorised transport, and approved a Non-Motorised Transport Strategy in The strategy guides the planning and implementation of programmes and facilities to respond to the many needs of users of non-motorised transport Sustainable procurement initiatives CCT is working towards integrating sustainable procurement into its operations through the implementation of a (currently draft) Sustainable Procurement Action Plan. Focuses of sustainable procurement within CCT include energy efficient lighting and IT equipment, water efficient fixtures and fittings, paper products, and cleaning chemicals. CCT s Mayoral Committee Member for Finance played an important role in facilitating the establishment of a Global Lead Cities Network on Sustainable Public Procurement, committing CCT to play an active role in this area (DEA&DP, 2015a). State of Environment Outlook Report for the Western Cape Province 38

48 5.4.5 Other municipalities The provincial Greenest Municipality Competition recognises innovation within the green economy. The winners of the 2015/16 innovation awards were the Stellenbosch, Mossel Bay and Bitou municipalities. Mossel Bay Municipality designed an inventive portable device for circuit breakers to improve energy efficiency, saving the municipality over R1.5 million. The Sustainability Directorate at DEA&DP believes that: Municipalities are central to the transition to a green economy. They have the power to stimulate investment in low carbon businesses through land-use, service delivery, regeneration and spatial planning programs. Councils also have significant scope to influence residents behaviour through public education. Energy efficiency, green skills training and neighbourhood management schemes can all be promoted through financial rewards or penalties Financing Various energy services and renewable energy funding mechanisms are available from commercial banks, development finance institutions, government departments, private equity and venture capital (GreenCape, 2017d). Notably, the DoE s Energy Efficiency Demand Side Management Programme targets electricity reduction in municipalities, especially retrofitting of existing infrastructure. Since the implementation of the programme in 2009, over R1 billion in funding has been allocated, and 54 municipalities have participated in the programme (Kruger and Tait, 2015). CCT has developed a Green Bond Framework, and identified a number of projects eligible for funding, including various adaptation and mitigation initiatives, all of which are aligned to CCT s climate change strategy (Phakathi, 2017) Energy related targets A number of national, provincial and, in some cases, local energy consumption and greenhouse gas emissions targets have been set. These targets guide policy formulation and management priorities and also stimulate a market for companies in the renewable energy resources sector, thereby creating momentum for transformation of the sector. However, although certain policy documents and frameworks set out national and provincial targets, the frequency of and mechanism for tracking these targets is not always clear or consistent, and targets are generally voluntary. 6 CONCLUSION OUTLOOK: IMPROVING While the Western Cape s energy supply remains dominated by conventional technologies and fossil fuels, there is a concerted move from non-renewable to renewable energy and attaining energy security, with firm targets set and many projects and programmes underway. As regards responses to improve energy efficiency, encourage investment in renewable energy and work towards energy security into the future, the Western Cape is performing very well. Financial difficulties facing Eskom, combined with an uncertain policy environment (i.e. the IRP and IEP being in draft form), have created a state of uncertainty in South Africa s energy sector. Compared to the other provinces, the Western Cape leads in terms of electrified homes, with the large majority having access to electricity. While the Western Cape population increased by over between 2011 and 2016, there was also an increased proportion of electrified homes, from 93% to 97%. Nevertheless, a small portion of the population either does not have access to electricity off the national grid or cannot afford electricity. These people typically resort to the 39 State of Environment Outlook Report for the Western Cape Province

49 biomass for cooking, lighting and heating, which comes with a range of associated undesirable consequences. In addition, the reliability of the energy supply is of concern. Similar to the recommendations of the 2013 SoEOR, effort should be focused on the collection of complete data on energy generation and usage within the province, in order to provide an accurate indication of the energy sector in the Western Cape. This would include information on independent generation of renewable energy. Attention should also be focused on removing regulatory obstacles preventing private microgeneration supplementing the main electricity supply grid. Large scale infrastructure rollouts such as smart metering must commence. Energy in the Western Cape has an overall stable outlook for the future. Despite national regulatory and political challenges, the Western Cape has proactively taken action to address energy challenges, plan and optimise opportunities for renewable energy investment in the province. Table 6-1 contains an overview of the key pressures, impacts, challenges, progress and recommended critical areas for action. Table 6-2 presents the anticipated changes or outlook for the future of Energy in the province. Table 6-1: Overview of key energy aspects Aspect Pressures Impacts Challenges Progress Critical areas for action Summary of key points Population growth Increase in formal housing Growing consumerism Economic growth (2%) Urban growth (including transportation) Carbon emissions and poor air quality Environmental contamination and degradation Over exploited and contaminated water resources Loss of biodiversity Human health risks Visual impacts Deep rooted energy dependencies, e.g. liquid fuels for transport Supply and reliability of grid-based electricity Role and impact of natural gas Challenging regulatory environment Delays in concluding agreements with IPPs Enabling investment in alternative energy infrastructure Green economy initiatives GreenCape greentech investment initiatives Energy Security Game Changer IPP facilitation/redz Drive renewable energy development Encourage private sector and public investment in energy efficiency Address energy intensity and dependencies Improve understanding of natural gas potential and impact Gather information on bird and bat mortalities from wind energy Table 6-2: Summary of the outlook for energy in the Western Cape Indicator Quantification Desired State/target Trend Energy supply PetroSA coal/gas-to-liquid plant 2x gas turbines (207 MW) Koeberg nuclear reactor (1 800 MW) Increased energy generation from renewable sources Decreased dependence on coal Improving State of Environment Outlook Report for the Western Cape Province 40

50 Palmiet pumped storage (580 MW) 8 wind farms 5 solar power plants Implementation of SSEG in 15 municipalities Energy use Total excluding marine and aviation. o GJ in 2004 o GJ in 2009 o GJ in 2013 o GJ in % used by transport (previously 35% in 2004 and 52% in 2009) Mostly coal based electricity and liquid fuels CCT consumes 54%, West Coast 22%, previously CCT 59% and West Coast 20% (2013) Decrease in energy use Decreased reliance on coal based electricity and liquid fuels Improving Energy intensity 46 GJ/capita energy consumption in 2016, decrease from 64 GJ/capita in t CO²e/capita in 2016, decrease from 8t CO²e /capita in 2013 Decrease in intensity per unit of GDP since 2013 West Coast higher intensity than other districts (industries) CCT relatively low intensity due to service industry Decrease in GJ/capita energy consumption Decrease in tonnes of CO²e /capita Decrease in energy intensity per GDP Improving Domestic energy use Households electrified: o 83.5% in 2005 o 93.4% in 2011 o 97.18% in 2016 Decreasing % of households using electricity for heating due to solar PV Use of energy other than electricity: 2% for lighting (7% in 2011) 9% for cooking (13% in 2011) 14% for heating (21% in 2011) 100% of households electrified Increase in number of households using solar PV instead of gridbased electricity Decrease in households using biomass and other alternative sources of energy Improving Energy security 6.82% of households reporting interruption to electricity supply 30% of interruptions to electricity supply lasted longer than 12 hours Fewer interruptions in electricity supply due to load shedding Decrease in duration of interruptions to electricity supply Decreased reliance on Eskom for electricity Insufficient historical data 41 State of Environment Outlook Report for the Western Cape Province

51 7 REFERENCES Academy of Science of South Africa (2016). South Africa s Technical Readiness to Support the Shale Gas Industry. Advanced Resources International (2013). Karoo Basin, South Africa. EIA/ARI Shale Gas/Oil Assessment Map. Ajay Trikam, Department of Economic Development and Tourism, September 2017 CDH (2017). Projects and Infrastructure Alert: Renewable Energy Development Zones. 25 February Chamber of Mines (2017). Coal. Available Online: [22 June 2017]. City of Cape Town (2010). CCT Energy and Climate Action Plan. City of Cape Town (2015). Cape Town State of Energy City of Cape Town (2016). Transit Oriented Development Strategic Framework (Policy Number 46487). Climate Transparency (2017). Brown to Green: the G20 Transition to a Low-Carbon Economy. Creamer Media (2017). South Africa Energy Roundup. 12 April CSIR (2017a). South African Energy Status Quo and Future Scenarios. Presentation at the Design Lab 3 of the Western Cape Energy Security Game Changer. May CSIR (2017b). Statistics of utility-scale solar PV, wind and CSP in South Africa in CSIR Energy Centre. April Darling Wind Farm Website. DEA (2014). GHG National Inventory Report South Africa DEA&DP (2005). Western Cape State of Environment Report 2005 (Year One). Department of Environmental Affairs and Development Planning. Western Cape Government. DEA&DP (2007). A Proposed Renewable Energy Plan of Action for the Western Cape: Resource Assessment, Scenarios, Proposed Objectives and Actions (A Component of the Provincial Sustainable Energy Strategy). Department of Environmental Affairs and Development Planning. Western Cape Government. DEA&DP (2010). White Paper on Sustainable Energy. Department of Environmental Affairs and Development Planning. Western Cape Government. DEA&DP (2013). Energy Consumption and CO2 Emissions database for the Western Cape. Western Cape Government. DEA&DP (2014). Western Cape Government Green Economy Report. Western Cape Government. DEA&DP (2015a). Western Cape Government Green Economy Report. Western Cape Government. DEA&DP (2015b). Western Cape Climate Change Mitigation Scenarios for the energy sector. Western Cape Government. DEA&DP (2015c). Energy Consumption and CO2e Emissions Database for the Western Cape. Unpublished Report. DEA&DP (2015d). State of Air Quality Management Western Cape Government. DEA&DP (2016). Western Cape Government Green Economy Report. Western Cape Government. DEA&DP (2017). Energy Consumption and CO2e Emissions Database for the Western Cape. Unpublished Data. DME (2008). Nuclear Energy Policy for the Republic of South Africa. Department of Minerals and Energy. DME (2010). Executive Summary of the Draft Integrated Electricity Resource Plan for South Africa 2010 to 2030 (IRP 2010). Department of Minerals and Energy. DMR (2012). Report on Investigation of Hydraulic Fracturing in the Karoo Basin of South Africa. Department State of Environment Outlook Report for the Western Cape Province 42

52 of Mineral Resources. DoE (2016). Draft Post-2015 National Energy Efficiency Strategy. Department of Energy. DoE (2017). Renewable Energy. Available Online: [8 August 2017]. Department of Transport (undated). National Transport Master Plan (NATMAP) DT&PW (2016). Western Cape Property Efficiency Report 2015/2016. Issue No. 5. Eskom (2014a). Fact sheet: Ankerlig and Gourikwa Gas Turbine Power Stations. (August 2017). Eskom (2014b). Fact sheet: Acacia Power Station. (August 2017). Eskom (2017a). Coal Power. Available Online: [11 August 2017]. Eskom (2017b). Kusile Unit 1 goes on full load. Available Online: [13 September, 2017]. GCIS (2012). South Africa Yearbook 2011/2012. Government Communications and Information System. GCIS (2017). South Africa Yearbook 2015/2016: Energy. Government Communications and Information System. Global Wind Energy Council (2016). Global Wind Report: Annual Market Update: GreenCape (undated). Atlantis Greentech Special Economic Zone. GreenCape Sector Development Agency, Cape Town. GreenCape (2016). WISP Synthesis Report GreenCape Sector Development Agency, Cape Town. GreenCape (2017a). Energy Services: Market Intelligence Report. GreenCape Sector Development Agency, Cape Town. GreenCape (2017b). Small Scale Embedded Generation in the Western Cape. GreenCape Sector Development Agency, Cape Town. Available online: cape.co.za/assets/uploads/ Municipalities-with-SSEG-Rules-Regs-with-writeup.pdf [26 May 2017]. GreenCape (2017c). Atlantis SEZ. Webpage: [26 May 2017]. GreenCape (2017d). Utility-Scale Renewable Energy: Market Intelligence Report. GreenCape Sector Development Agency, Cape Town. Greencape (2017e). Water: 2017 Market Intelligence Report. IEA (2008). Worldwide Trends in Energy Use and Efficiency: Key Insights from IEA Indicator Analysis. International Energy Agency. IEA (2016). World Energy Outlook Available Online: International Monetary Fund (2015). World Economic Outlook: Update. July IRP (2016). Integrated Resource Plan Update. Department of Energy. November Jiang L & Hardee K (2011). How do Recent Population Trends Matter to Climate Change? Population Research and Policy Review. Volume 30, pp Jonathan Aronson, South African Bat Assessment Association. September Kruger, W and Tait, L (2015). Implementation of the municipal energy efficiency and demand side management programme in South Africa. Mitigation Action Plans and Scenarios: 33. Malesa, G (2015). New Fracking Regulations for South Africa. Faskin Martineau Mining Bulletin. Available online: [12 July 2017]. 43 State of Environment Outlook Report for the Western Cape Province

53 Martineau, Fasken (2017) Budget Speech: Carbon Tax to be considered by parliament. Engineering News. 28 March Modi V, McDade S, Lallement D & Saghir J (2005). Energy Services for the Millennium Development Goals. World Bank: New York, NY. NERSA (2006) Electricity Supply Statistics for South Africa. National Energy Regulator of South Africa. New Horizons Energy (2017). Revolutionary Waste Management and Cost-Effective Green Energy. Website: NPC (2011). National Development Plan 2030: Our Future Make it Work. National Planning Commission. Phakathi, B (2017). Cape Town issues green bond. Business Day, 22 March Petroleum Agency of South Africa (2017). Petroleum Exploration and Production Activities in South Africa. Map produced by the Petroleum Agency of SA. (June 2017). Petroleum Agency of South Africa (2012). Petroleum Exploration in South Africa: Information and Opportunities. March Petroleum Agency of South Africa (2010). Petroleum Exploration in South Africa: Information and Opportunities. Roelf, W (2017). Fracking go-ahead in Karoo basin possible within months. Business Live. 15 May SBIDZ, [accessed on 10 April 2017]. South African Government. Energy. Available Online: [11 August 2017]. SRK Consulting (2017). Environmental Impact Assessment of the Used Fuel Interim Storage Facility at Koeberg Nuclear Power Station. Final Environmental Impact Assessment Report. February StatsSA (2001). Census StatsSA (2006). Census StatsSA (2011). Census StatsSA (2012a). Census 2011: Municipal report Western Cape. Statistics South Africa, (January 2013). StatsSA (2012b). Energy Accounts for South Africa: Statistics South Africa. StatsSA (2012c). Census 2011: Provinces at a Glance. Statistics South Africa. Pretoria. StatsSA (2015). Electricity generated and available for distribution (preliminary). 5 March StatsSA (2016). Community Survey Union of Concerned Scientists How it works: water for electricity. Available online [ Van Rensburg, D (2017). New twist in IPP battle as Eskom may close stations early. City Press. Available online: [24 July 2017]. Vecchiatto and Cohen (2017). Zuma s nuclear ambitions dealt blow by court ruling. Bloomberg News. Available online: [7 June 2017]. Western Cape Government (2016a). Liquefied Natural Gas Importation Project. Available Online: [29 June 2017]. Western Cape Government (2016b). Provincial Economic Review and Outlook. WCG (2017a) About the Energy Security Game Changer. Available online: [26 State of Environment Outlook Report for the Western Cape Province 44

54 May 2017]. WCG (2017b) Energy Security Game Changer. Available online: [26 May 2017]. WCG (2017c). Hydropower at L Ormarins. Available online: [2 August 2017]. WCG (2015). Provincial Economic Review and Outlook. Western Cape Government. 45 State of Environment Outlook Report for the Western Cape Province

55 Annexure A

56

57 Table A1: Legislation National Energy Act 34 of 2008 Electricity Regulation Act 4 of 2006 Petroleum Products Act 120 of 1977 Central Energy Fund Act 38 of 1997 (previously State Oil Fund Act) Nuclear Energy Act 46 of 1999 National Nuclear Regulator 47 of 1999 Act Petroleum Pipelines Act 60 of 2003 Petroleum Pipelines Levies Act 28 of 2004 Gas Act 48 of 2001 National Energy Regulator Act 40 of 2004 Electricity 41 of 1987 Act National Environmental Management Act 107 of 1998 EIA Regulations (2014) Legislation governing South Africa s energy sector Commencement Date Description / Purpose 24 November 2008 The act ensures that varied energy resources are available in sustainable quantities and affordable rates in South Africa. The act also provides for the increased use of renewable energy sources, contingency energy sources, and suitable investment in energy infrastructure. 5 July 2006 The act establishes a national regulatory framework for the electricity supply industry, which must be enforced by NERSA. The act allows the Minister of Energy to make determinations for the establishment of independent power producers to increase the supply of electricity. 16 September 1977 The act provides for measures to save petroleum products and the economy in distribution costs, the maintenance and control of pricing and the furnishing of specific information concerning petroleum products. The act also governs the licensing of those involved in the manufacturing, wholesale and retailing of prescribed petroleum products. 30 March 1977 The act provides for the determination of State levies. The act allows for the establishment of the National Energy Corporation of South Africa and provides its functions, powers, financial and operational accountability, governance and management. The act also governs the acquisition and possession of nuclear fuel, nuclear and related material and equipment, and the import and export thereof. 23 December 1999 The act provides for the establishment of a National Nuclear Regulator to regulate nuclear activities and provides safety standards and regulatory practices to protect people, property and the environment against nuclear damage. 31 May 2004 The act establishes a national regulatory framework for petroleum pipelines and establishes a Petroleum Pipelines Regulatory Authority as the custodian and enforcer of the national regulatory framework. 20 December 2004 The act aims to promote the efficient, effective, sustainable and orderly development, operation and use of petroleum pipelines, loading facilities and storage facilities and to ensure the safe and environmentally responsible transport of petroleum. 21 February 2002 The act promotes the orderly development of the piped gas industry, establishes a national regulatory framework and establishes a National Gas Regulator as the custodian and enforcer of the national regulatory framework. 6 April 2005 The act establishes a single regulator to regulate the electricity, pipedgas and petroleum industries. 1 November 1987 The act provides for the continued existence of the Electricity Control Regulator and for control of the generation and supply of electricity. 27 November 1998 The act provides for co-operative environmental governance by establishing principles for decision-making on matters affecting the environment, institutions that will promote co-operative governance and procedures for co-ordinating environmental functions. 4 December 2014 The EIA Regulations stipulate which activities require environmental authorisation before commencement, including activities relating to

58 energy infrastructure (e.g. powerlines, solar PV), mining, prospecting and exploration. Mineral and Petroleum Resources Development Act 28 of 2002 Electricity Regulation Amendment Act 28 of 2007 Regulations for the Petroleum Exploration and Production Renewable Energy development Zones (REDZ) and Power Corridors 3 October 2002 The act aims to make provision for equitable access to and sustainable development of the nation s mineral and petroleum resources. 21 January 2008 This act amends the Electricity Regulation Act 4 of 2006, which establishes a national regulatory framework for the electricity supply industry, makes the National Energy Regulator the custodian and enforcer of the national electricity regulatory framework and provides for licences and registration as the manner in which generation, transmission, distribution, trading and the import and export of electricity are regulated. 3 June 2015 The aim of these regulations is to augment the MPRDA regulations in order to prescribe standards and practices that ensure the safe exploration and production of petroleum (including gas). GN R466 includes measures dealing with the different phases of petroleum exploration and production for planning to closure. 13 April 2017 These Renewable Energy Development Zones and Power Corridors are geographical areas where wind and solar Photovoltaic technologies can be incentivized and where deep grid expansion can be directed and where regulatory processes will be streamlined (e.g. requiring only a Basic Assessment rather than a full EIA process and with reduced authority decision making timeframes)

59 Annexure B

60

61 Table B1: Summary of policy, tools and frameworks Responses Year Description International Responses 2002 Kyoto Protocol (Ratified by South Africa in March 2002) 2015 Paris Agreement (Ratified by South Africa in November 2016) 1998 The White Paper on Energy Policy for the Republic of South Africa The White Paper on Renewable Energy 2003 Electricity Basic Services Support Grant (Free Basic Electricity) Policy 2003 The Integrated Energy Plan 2007 Free Basic Alternative Energy Policy (Household Energy Support Programme) 2008 National Energy Security Master Plan: Liquid Fuels National Responses 2010 National Strategy for Sustainable Development and Action Plan Integrated Electricity Resource Plan for South Africa 2010 to 2030 (IRP 2010) 2011 National Climate Change Response White Paper 2011 Renewable Energy Independent Power Producer Procurement Programme 2011 National Development Plan Draft National Liquified Petroleum Gas Strategy 2012 Draft Post National Energy Efficiency Strategy 2015 Draft Carbon Tax Bill and Draft Greenhouse Gas Regulations 2015 Draft Policy on Sustainable Hydropower Generation 2007 Proposed Renewable Energy Plan of Action for the Western Cape. Resource Assessment, Scenarios, Proposed Objectives and Actions. A Component of the Provincial Sustainable Energy Strategy Provincial Responses 2007 Sustainable Energy Strategy for the Western Cape 2010 White Paper on Sustainable Energy 2013 Western Cape Green Economy Strategy Framework 2014 Provincial Strategic Plan 2014 Western Cape Climate Change Response Strategy and Implementation Framework 2006 City of Cape Town Energy and Climate Change Action Plan 2006 City of Cape Town Framework for Adaptation to Climate Change 2009 Fleet Greening Framework 2011 City of Cape Town State of Energy and Energy Futures Report Local Authority Responses 2011 City of Cape Town Smart Living Handbook 2011 City of Cape Town Moving Mountains, Energy and Climate Change Plan of Action 2011 Eden District Demand Side Energy Awareness Program 2014 The Low Carbon Central City Strategy 2015 Cape Town Energy 2040 Vision and Associated Energy and Carbon Targets 2015 Cape Town State of Energy 2017 City of Cape Town Climate Change Policy

62

63 Annexure C

64

65 Table C1: Small Scale Embedded Generation in the Western Cape District Municipality Allow SSEG SSEG tariffs 1. N/A (Metropolitan) CCT Yes Yes Yes 2. Cape Winelands Drakenstein Yes Yes Yes 3. Cape Winelands Stellenbosch Yes Yes Yes 4. Cape Winelands Langeberg Yes Tariff consultant appointed Yes 5. Cape Winelands Breede Valley Yes In progress No SSEG policies 6. Cape Winelands Witzenberg Yes In progress In progress 7. Central Karoo Beaufort West Yes Yes In progress 8. Eden George Yes Yes Yes 9. Eden Mossel Bay Yes Yes Yes 10. Eden Oudtshoorn Yes Yes In progress 11. Overberg Overstrand Yes Yes In progress 12. Overberg Theewaterskloof Yes Yes Yes 13. West Coast Bergrivier Yes No In progress 14. West Coast Swartland Yes Yes Yes 15. West Coast Saldanha Bay Yes In progress In progress

66 Department of Environmental Affairs and Development Planning Leeusig Building, 3rd Floor, 1 Dorp Street, Cape Town, 8001 Private Bag X9086, Cape Town, 8000 Telephone: +27 (0) / Facsimile: +27 (0) enquiries.eadp@westerncape.gov.za State of Environment Outlook Report for the Western Cape Province 2