An overview of the Energy Efficiency Strategy of the Republic of South Africa. Approved by Minister on 1 April 2005

Transcription

1 An overview of the Energy Efficiency Strategy of the Republic of South Africa Approved by Minister on 1 April

2 Why do we need an Energy Efficiency Strategy In recent years energy efficiency has significantly gained in stature and has become recognised as one of the most important cost-effective ways of meeting the demands of sustainable development. Benefits are environmental, economic and social. 2

3 The Status Quo In 2000 the total primary energy supply was nearly 4300 PJ of which 79% was attributable to coal This was part of the reason why the electricity prices are amongst the cheapest in the world South Africa is energy intensive World Summit on Sustainable Development in 2002 recognised ee as a key tool to enhance clean energy development The Strategy offers a consolidated approach to capture opportunities in the best interest of our nation 3

4 The Strategic Process The White Paper on Energy Policy 1998 gives a mandate to the DME to promote ee through various means. The Strategy sets out a national target for energy savings of at least 12% by 2015 This target is expressed in relation to the forecast national energy demand at that time, based on the business as usual baseline scenario for South Africa modelled as part of the National Integrated Energy Plan (2003) 4

5 Energy Efficiency enabling instruments that will be used Economic and legislative means Information activities Energy labels Energy Performance Standards Energy Audits Energy Management Promotion of energy efficient technologies 5

6 Vision To encourage sustainable energy sector development and energy use through efficient practices thereby minimising the undesirable impacts of energy usage upon health and the environment And contributing towards secure and affordable energy for all. 6

7 8 GOALS OF THE STRATEGY Goal 1: Improve the health of the nation Energy efficiency reduces the atmospheric emission of harmful substances such as SOx, NOx and smoke. Such substances are known to have an adverse effect on health and are frequently a primary cause of common respiratory ailments 7

8 8 GOALS OF THE STRATEGY Goal 2: Job creation Studies show that jobs will be created by the spin-off effects of energy efficiency implementation. Improvements in commercial economic performance, and uplifting the energy efficiency sector itself, will inevitably lead to nationwide employment opportunities 8

9 8 GOALS OF THE STRATEGY Goal 3: Alleviate energy poverty Energy efficient homes not only improve occupant health and wellbeing, but also enable the adequate provision of energy services to the community at an affordable cost 9

10 8 GOALS OF THE STRATEGY Goal 4: Reduce Environmental pollution Energy efficiency will reduce the local environmental impacts of its production and use. These impacts include the atmospheric emission of harmful and odorous gases 10

11 8 GOALS OF THE STRATEGY Goal 5: Reduce CO 2 emissions Energy efficiency is one of the most costeffective methods of reducing GHG emissions, and thereby combating climate change. Addressing climate change opens the door to utilising novel financing mechanisms, such as the CDM, to reduce CO 2 emissions. 11

12 8 GOALS OF THE STRATEGY Goal 6: Improve industrial competitiveness It has been demonstrated that one of the most cost-effective ways of maximising commercial profitability is the adoption of appropriate energy efficiency measures. Nationwide, this will improve South Africa s export performance and improve the value that her economy derives from indigenous energy resources 12

13 8 GOALS OF THE STRATEGY Goal 7: Enhance energy security Energy conservation will reduce the necessary volume of imported primary energy sources, crude oil in particular. This will enhance the robustness of South Africa s energy security and will increase the country s resilience against external energy supply disruptions and price fluctuations. 13

14 8 GOALS OF THE STRATEGY Goal 8: Reduce the necessity for additional power generation capacity It is estimated that the country s existing power generation capacity will be insufficient to meet the rising national maximum demand by Energy efficiency is integral to Eskom s DSM programme, which is intended to reduce the level of load growth by a cumulative value of 4255MW by 2025, equivalent to a saving to a six unit coal fired power station. 14

15 Baseline Statistics: Primary Energy Supply Nuclear 3% Hydro <1% Renewables 6% Gas 2% Crude Oil 10% Coal 79% 15

16 Sectoral usage Agriculture 3% Other 1% Transport 28% Industry 41% Residential 17% Commerce 4% Mining 6% 16

17 Final energy use by carrier Petroleum Products 33% Electricity 26% Gas 2% Other (incl. Biomass) 9% Coal 30% 17

18 Targets A final energy demand reduction of 12% by 2015 Expressed as a percentage reduction against the projected energy usage in 2015 Forecast derived from LEAP in IEP Assumptions Population growth: 2000 = 44m, 2015= 53.3m (1.3% p.a) GDP growth: 2.8% average p.a. growth over period Economic growth: 2.8% over period Fuel switching limited apart from general increase in electricity consumption in residential sector 18

19 Final Energy Demand Projected Demand to Target Outcome to 2015 PJ Year 19

20 Review of Targets A review of the national and sectoral targets will be undertaken every 3 years Aim to check progress in achieving targets and to address any areas where additional input may be required from stakeholders The targets should be seen as both challenging and achievable In most cases the sectoral targets comprise a conservative estimate of the likely impact of technical interventions, coupled with the additional impact of EM initiatives. 20

21 TARGETS TO BE MET BY 2015 Industry and Mining 15% final energy demand reduction Power Generation 15% reduction in parasitic electrical usage Commercial and Public Sector Buildings 15% final energy demand reduction Residential sector 10% final energy demand reduction Transport sector 9% final energy demand reduction 21

22 Monitoring and Measurement A system will be established to measure the effectiveness and efficiency of measures implemented Success of the system will inevitably depend upon using a multi-stakeholder approach, including consultation with representative bodies within each sector. 22

23 Implementing Instruments Support mechanisms: EE standards, appliance labeling, certification and accreditation, education, information and awareness, research and technology, regulation, energy audits, EM systems Policy, mandate and governance Finance instruments Incentives, fee bates, financing public sector implementation plan, energy services companies, CDM, DSM and energy pricing Stakeholders 23

24 Sector Programmes In order to meet the objectives of the strategy, it is intended that interventions be implemented in a phased approach. The timing of the phases are as follows: Phase 1: March 2005 to February 2008 Phase 2: March 2008 to February 2011 Phase 3: March 2011 to February 2015 Interventions for each sector are described 24

25 Industry and Mining sector programme Norms and standards for horizontal technologies standards developed for boiler efficiency, electric motors and thermal insulation. Responsibilities: DME, dti, SABS, Education providers, ESCo s, industry associations and wider industry 25

26 Commercial and Public Buildings sector programme Standard for office buildings developed: SANS 204 to be incorporated into the National Building Regulations at dti Mandatory energy audits for commercial buildings Energy Management systems Technologies 26

27 Transport Sector Programme Optimisation of passenger and goods transport. Policy and regulations to be drafted and necessary fiscal and budgetary reform Introduction of energy management measures in passenger transport Facilitation of energy efficiency in freight logistics 27

28 Conclusion RSA is one of a few countries in the world with an Energy Efficiency Strategy Implementation is currently voluntary except for areas where mandatory standards are existing The cooperation and assistance of all energy users are required for energy efficiency to become a culture in South Africa 28