Department of Local Government and HousingDepartment of Local Government and Housing No 63 Fox Street, Johannesburg,2001 Private Bag X79, Private Bag X86 Marshalltown 2107 Tel (011)

Department of Local Government and Housing

Gauteng Integrated Energy Strategy

January 2010


No 63 Fox Street, Johannesburg,2001

Private Bag X79,

Private Bag X86

Marshalltown

2107

Tel (011) 355 4000/5000

Fax (011) 834 3670

Website: www.dlgh.gpg.gov.za

http://www.dlgh.gpg.gov.za/

Foreword In 2008, South Africa was faced with a major challenge in the energy sector – the country experienced electricity outages and a rapid increase in fuel prices. Energy is vital to the survival of the Gauteng province. It cuts across all aspects of people’s lives – from transport to education to health to food. Every decision that is made usually has an energy dimension, impact or influence. It is only when energy is not available that the importance of this valuable resource is realised. Furthermore, there is an increasing acceptance that the manner in which energy is provided can be harmful. The energy sector in South Africa is responsible for most of SA’s greenhouse gases being emitted and Gauteng, as the economic hub of South Africa, plays a significant role in those figures. As such, it is imperative for Gauteng to find a sustainable way to respond to this challenge. And it was this realisation that led to the development of the Gauteng Integrated Energy Strategy (GIES). The strategy encapsulates the vision for the province as “a province that promotes and implements sound energy decisions based on the principles of equity, a healthy environment, investment promotion and prosperity for all”. The main purpose of the GIES and implementation plan is to direct the way that energy is supplied and used within the Gauteng province during the next 4 years (2014); 15 years (2025); 45 years (2055) and beyond, in an integrated and comprehensive manner. The strategy aims to improve Gauteng’s environment, reduce Gauteng’s contribution to climate change, and tackle energy poverty, whilst at the same time promoting economic development in the province. It is a strategy that will require working with all other initiatives, not duplicating them but taking them further. There are already many sustainable energy and climate change initiatives and projects being undertaken within the province at government level, within industry and commerce and within civil society. What this strategy will do is to bring cohesion to all these laudable projects. Thus, following on from the national climate change summit, Gauteng is committed to –

moving the province to a low-carbon economy; ensuring that the province’s carbon emissions peak and start declining by 2030; ensuring that there is an improvement in energy efficiency; ensuring the scaling up of renewable energy options; and Ensuring that energy access for the poor is a priority.

This strategy, the initial status quo report and the energy scenario reports all confirm and reiterate the need to transform to a sustainable energy future. What stands out is the need for the province to be bold, to take a large step in bringing change, in creating the paradigm shift that is required to see results for future generations. The strategy has established a set of targets using models and projections over a period of time. The GIES highlights that it is possible to achieve these goals if it is started now and if mechanisms are put into place to support this change. The strategy will not succeed without the active involvement of all stakeholders in creating a sustainable energy province. The GIES was developed as a working document for the province and to this end requires the commitment of everyone. Gauteng Department of Local Government and Housing

i

Abbreviations and Acronyms Used BMS - Building Management System

BNM - Basa Njengo Magogo

BRT - Bus Rapid Transport

CDM - Clean Development Mechanism

CER - Certified Emissions Reduction

CFL - Compact Fluorescent Light

CO2 - Carbon dioxide

COJMM City of Johannesburg Metropolitan Municipality

COP - Coefficient of Performance

CPP - Current Power Plants

CSIR - Council for Scientific and Industrial Research

CSP - Concentrated Solar Power

CTMM - City of Tshwane Metropolitan Municipality

DBSA - Development Bank of Southern Africa

DEAT - Department of Environmental Affairs and Tourism

(now Department of Environmental Affairs)

DED - Department of Economic Development (Gauteng)

DID - Department of Infrastructure Development (Gauteng)

DLGH - Department of Local Government and Housing (Gauteng)

DME - Department of Minerals and Energy (now Department of Energy)

DOH - Department of Housing (now Department of Human Settlements)

DOT - Department of Transport

DPW - Department of Public Works

DSM - Demand-Side Management

DTI - Department of Trade and Industry

DWF - Darling Wind Farm

EDI - Electricity Distribution Industry Holdings

EE - Energy Efficiency

EIA - Environmental Impact Assessment

EMM - Ekurhuleni Metropolitan Municipality

EMTT - Energy Management Task Team

ESCO - Energy Service Company

FBAE - Free Basic Alternative Energy

GDARD - Gauteng Department of Agriculture and Rural Development

GDS - Growth and Development Strategy

GEDA - Gauteng Economic Development Agency

GHG - Greenhouse gas

ii

GIES - Gauteng Integrated Energy Strategy

GJ - Gigajoule

GPT - Gauteng Provincial Treasury

GSDS - Gauteng Social Development Strategy

GSSC - Government Shared Services Centre

GSSDSPR - Gauteng Strategy for Sustainable Development State of Play Report

GWh - Gigawatt-hour

HOD - Head of Department

HVAC - Heating, Ventilation and Air-conditioning

ITP - Integrated Transport Plan

IDP - Integrated Developed Plan

IEP - Integrated Energy Plan

kW - Kilowatt

kWh - Kilowatt-hour

LED - Light-emitting diode

LEDS - Local Economic Development Strategies

LFG - Landfill gas

LNG - Liquefied natural gas

LPG - Liquefied petroleum gas

LTMS - Long-Term Mitigation Scenarios

MEC - Member of Executive Committee

MJ - Megajoule

MFMA - Municipal Finance Management Act

Mtoe - Million tons of oil equivalent

MW - Megawatt

MWh - Megawatt-hour

NBI - National Business Initiative

NEEA - National Energy Efficiency Agency

NEP - National Electrification Programme

NER - National Energy Regulator

NERSA - National Energy Regulator of South Africa

NERT - National Electricity Response Team

NHBRC - National Home Builders Registration Council

NHTS - National Household Travel Survey

NIRP - National Integrated Resource Plan

NMT - Non-motorised transport

NSDP - National Spatial Development Perspective

NSHF - National Sustainable Housing Facility

ODA - Overseas Development Assistance

OPEX - Operational Expenditure

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iv

PCC - Premier’s Co-ordinating Council

PERO - Provincial Economic Review and Outlook

PNCP - Pilot National Cogeneration Programme

PTP - Prioritised Townships Programme

PV - Photovoltaic

RDP - Reconstruction and Development Plan

RE - Renewable Energy

RECs - Renewable Energy Certificates

REFiT - Renewable Energy Feed-In Tariff

REFSO - Renewable Energy Subsidy Office

SANEDI South Africa’s National Energy Development Institute

SANERI South African National Energy Research Institute

SANS - South African National Standards

SCCCA - Southern Cape Coastal Condensation Area

SEA - Sustainable Energy Africa

SEGP - Standard Electricity Generation Plants

SWHs - Solar Water Heaters

TDM - Travel Demand Management

TJ - Terajoule

TWh - Terawatt-hour

UEMP - Urban Environmental Management Programme

UNDP - United Nations Development Programme

UNFCC - United Nations Framework Convention on Climate

VRV - Variable Refrigeration Volume

VSDs - Variable Speed Drives

WWF - Worldwide Fund for Nature

Contents

Foreword ...................................................................................................................... i

Abbreviations and Acronyms Used ......................................................................... ii

Contents ...................................................................................................................... v

1. Overview of the Gauteng Integrated Energy Strategy ........................................ 1

1.1 The Context: Why a Strategy? ............................................................................................ 1

1.2 Opportunities ....................................................................................................................... 3

1.3 Challenges ........................................................................................................................... 4

2. An Energy Vision for Gauteng .............................................................................. 6

2.1 The Future of Energy in Gauteng ........................................................................................ 6

2.2 Proposed Energy Targets .................................................................................................... 8

2.2.1 Interim Provincial Minimum Targets ................................................................................. 9

2.2.2 Current National Targets (for a breakdown of current metro targets see appendix 6.2) 11

2.3 Direction, Principles and Approach ................................................................................... 12

2.4 Vision to Action .................................................................................................................. 13

2.5 Policy Implications into the future ...................................................................................... 17

3. Direction, Principles and Approach ................................................................... 18

3.1 Principles ........................................................................................................................... 18

3.2 An Integrated Approach to Energy Planning ..................................................................... 22

3.3 Policy Implications into the future ...................................................................................... 24

4. From Vision to Action .......................................................................................... 26

4.1 Strategic Leadership .......................................................................................................... 26

4.2 Financial Mechanisms ....................................................................................................... 29

4.3 Local Government Support, Regulation and Market Support ........................................... 32

4.4 Promoting Innovation and Clean Energy Technologies .................................................... 36

4.5 Using Energy More Efficiently ........................................................................................... 40

4.6 Sustainable Energy Supply ............................................................................................... 46

4.7 Transport ........................................................................................................................... 52

v

vi

4.8 Affordability and Wellbeing ................................................................................................ 59

4.9 Empowering Citizens to Reach the Vision ........................................................................ 64

4.10 Institutional Support ......................................................................................................... 67

5. Way Forward ......................................................................................................... 70

5.1 Priority actions for 2010 to implement the Gauteng Integrated Energy Strategy .............. 71

6. Appendices ........................................................................................................... 72

6.1 Gauteng Integrated Energy Targets against 2007 Actual Figures .................................... 72

6.2 Current Metro Targets ....................................................................................................... 74

7. Glossary of Terms ................................................................................................ 79

GAUTENG INTEGRATED ENERGY STRATEGY

1. Overview of the Gauteng Integrated Energy Strategy

1.1 The Context: Why a Strategy?

The Gauteng Integrated Energy Strategy (GIES) was developed in response to the challenges associated with global climate change, the global economic meltdown and the electricity crisis in South Africa. The strategy aims to improve Gauteng’s environment, reduce Gauteng’s contribution to climate change and tackle energy poverty, whilst at the same time promoting economic development in the province. The purpose of the Gauteng Integrated Energy Strategy and Implementation Plan is to direct the way that energy is supplied and used within the Gauteng province during the next 4 years (2014); 15 years (2025); 45 years (2055) and beyond, in an integrated and sustainable manner. This will be done by advancing and driving energy efficiency and supporting an energy supply mix that includes renewable energy technologies across the province. Within Gauteng, solar energy (solar water heaters) and energy from landfill gas are the most obvious short term renewable energy sources with the potential to buy renewable energy from wind and concentrated solar power from outside the provincial boundaries1. The Status Quo Report (June 2009)2 established that there were a number of sustainable energy and climate change initiatives being undertaken internationally, nationally and within the province at both municipal and provincial level. It is clear from the report that from a global and national perspective, issues concerning climate change are paramount and that all countries must engage in mitigation measures. The report illustrated that whilst the metro cities within the province have assumed aspects of city energy work, there remains much variation between individual municipalities in terms of the strategies in place and their level of implementation. At provincial level there has also been much movement with many policies, frameworks and projects in place or being established. Furthermore within industry, commerce and civil society, many initiatives and attempts at making changes have been instigated. The large industry sector in particular has begun to work on their carbon footprint and reduce their energy consumption. What this strategy will attempt to do is to integrate the many initiatives across the different sectors in such a way as to provide cohesion, alignment and co-operation. Thus, this strategy is expected to provide a framework for these diverse initiatives and in doing so being a catalyst for change across the province. The Status Quo Report highlighted that the production, distribution and consumption of energy involves a complex configuration of infrastructure and activities that range from the local through to the national scale involving many stakeholders from many sectors. Furthermore, it showed that the fact that South Africa is fossil fuel dependent for its energy has meant that the country is a much higher emitter of greenhouse gas

1 For more information on these and other technologies see the accompanying reports: Energy Efficient and

Renewable Energy Technologies Assessment Report and Assessment of Energy Efficiency and Renewable Energy

Potential in the Gauteng Province and Associated Long Term Energy Planning Implications. This is referred to as the

RE and EE Options report elsewhere.

2 Gauteng Integrated Energy Strategy and Implementation Plan, Status Quo Report, June 2009, compiled by

Sustainable Energy Africa

January 2010 page 1


per capita than most developing countries and equal to much of the developed global north. Fossil fuel and energy-intensive consumption patterns are entrenched in the energy policies and programmes of many developing countries and South Africa is no exception. Energy planning processes are dominated by a supply-oriented paradigm that links GDP growth directly with energy use. This suggests that fundamental changes and adjustments are needed in the way energy is supplied and used in South Africa generally and in Gauteng more specifically. Inevitably, this entails improving Gauteng’s environment and health and ensuring Gauteng’s contribution to the fulfilment of a range of provincial, national and international policies and targets to achieve sustainable development in the future. In looking at developments within the province it is clear that there are many energy opportunities and challenges and it is critical that this strategy takes cognisance of these in order to pave the way for a sound and achievable strategy.

January 2010 page 2


1.2 Opportunities

Within Gauteng, as shown in Figure 1A, the industrial sector is a major user of energy and emitter of carbon dioxide and other harmful pollutants in the province, as it accounts for 44% of the total energy use, followed by transport (35%) and households at 16%. Figure 1B outlines energy use in Gauteng by energy carrier. This is dominated by Coal (35%) primarily as a result of direct Coal combustion by industrial consumers. This correlates with the industrial sector energy consumption above. Petrol and diesel account for a similar contribution of 35% combined3. Just over one quarter of energy is supplied electrically. This state of affairs presents Gauteng with an opportunity to bring about transformation and work towards delivering an exemplary energy strategy which is sustainable and equitable and particularly given that the province is targeting high economic growth. Such growth cannot be sustained with an unsustainable energy system, and therefore this places added emphasis and added opportunity on the need for energy efficiency and clean energy supply to be promoted as a matter of urgency.

Figure 1: Energy use by energy carrier and sector in Gauteng Province

Given that industrial demand is made up mostly of coal and electricity use, and is therefore the highest contributor to carbon emissions in the province, means that the industrial sector is a key player in terms of Gauteng province reaching a sustainable energy profile. A move towards a sustainable transport system for the province that contributes to reductions in carbon dioxide emission is necessary and possible and would be based on encouraging people to switch from private vehicles to public transport, to walking and cycling. It would encourage the use of vehicles that use low-carbon fuels, and would promote the transportation of goods by rail rather than by road. To obtain a sustainable household sector, Gauteng would aim for safe, healthy, affordable, reliable and accessible energy for all its citizens. By investing in renewable and alternative energy projects and improving energy efficiency, the province will be moving towards this goal. At the same time it would be engaging in job creation projects which will go some way towards alleviating poverty. Gauteng is the economic hub of South Africa. Many significant industries and business sector bodies are situated in the province. The strategy provides the 3 For further detail refer to the technology assessment and status quo reports.

January 2010 page 3


province with the opportunity to promote economic development and competitiveness of its industries through the establishment of a low-carbon economy and ensure sufficient energy supply to support sustainable development and cleaner production. Put differently, this will open huge opportunities for the province to obtain heat and power by deploying urban renewable energy across the province and purchasing green power generated outside the province. The above is consistent with the latest NIRP (National Integrated Resource Planning – NIRP3 is still in draft format) which places significant emphasis on, inter alia, energy efficiency and renewable energy, although these recommendations have not yet been formally accepted by the National Energy Regulator of South Africa. Energy efficiency and renewable energy offer considerable scope for enhancing the profitability of business and contributing to economic development. As the demand for renewable energy increases, potentially significant opportunities for business and employment will open. This includes an opportunity for Gauteng to develop a financing mechanism for renewable energy as well as the formulation of water heating legislation. In addition, the formulation of the Gauteng Integrated Energy Strategy presents the province with the opportunity to maximise the province’s contribution to achieving the national target of cumulative energy delivered by the end of 2013 to meet South Africa’s renewable energy target. The target of 10.000 GWh, set in the 2003 White Paper on Renewable Energy, is being revisited following the Renewable Energy Summit of March 2009 where the Minister of the former DME made clear that targets needed to be made bolder and that both policy and frameworks should be consistent with government’s response to the Long Term Mitigation Scenarios (LTMS). National government departments are situated within the province, making co-operation and collaboration easier. There are many tertiary institutions and other leading research institutions such as SANERI4 and NGOs such as WWF that reside in Gauteng and this too paves the way for collaboration. Finally and of key significance is the fact that there is a willing leadership – the fact that the province has called for an integrated strategy will assist in its acceptance and implementation.

1.3 Challenges

Whereas the formulation of the Gauteng Integrated Energy Strategy presents many opportunities for Gauteng, the province also faces a number of challenges. One major challenge facing Gauteng province is the limited mandate that provinces have around energy and the fact that they are reliant on national developments in terms of formulating and implementing strategies and frameworks. This means that the strategy needs to be cognisant of these difficulties in assisting the province in implementation. Larger municipalities seem to be able to make headway with implementing energy-related initiatives. It is important that the strategy takes on the challenge to capacitate particularly the smaller municipalities. Municipalities in general are dependent on income from electricity sales for their cash flows and to assist them in subsidising various activities within their jurisdictions. It is important for the strategy to be aware of this and of the dependency of municipalities on electricity sales for their income. The Gauteng Strategy for Sustainable Development State of Play Report5 states that Gauteng province is heavily reliant on non-renewable resources for energy 4 SANERI will become SANEDI from 2010.

5 Gauteng Provincial Government, 2006, page 1

January 2010 page 4


January 2010 page 5

production and lacks viable energy alternatives. This presents a challenge in terms of promotion and investment in renewable energy when there is an abundance of, for example, cheap coal. Unless this challenge is properly addressed in the strategy, all fuel-switching attempts from coal to cleaner forms of energy will be compromised. In effect, a just transition to sustainable energy is a long-term project in which the electricity sector, so essential to commercial activity, yet significantly undervalued, must play a leading role. While “business as usual”, that is, more reliant on coal, may be the easiest option for meeting growing electricity demand, it is not the cheapest when counting the longer-term health, social and environmental costs. If the strategy is to succeed in weaning the province off its heavy reliance on coal, major improvements in efficiency in both coal use and electricity use, coupled with a massive deployment of renewable energy technologies, will need to be included. Thus this strategy is challenged to push boundaries in order to arrive at substantial and significant changes on the road ahead. Gauteng province is faced with deepening poverty exacerbated by high unemployment and inequality and a growing informal sector, leaving the province with substantial service delivery backlogs in housing and electrification. This is a huge challenge in terms of the strategy being able to achieve some of its goals related to energy poverty. Furthermore, access to energy is closely related to quality of life. The poor typically spend a greater fraction of their income on indispensable energy services, such as cooking, than mid to high income households. At the same time, they frequently forgo (or compromise severely on) services such as lighting and space heating that require energy carriers (e.g., electricity) and devices (e.g., compact fluorescent lights) to which they either don’t have access, or whose first costs tend to be unaffordable. In general, the poor expend more time and effort to obtain energy services that tend to be of lower quality than the energy services available to mid to high income households. This is an important consideration for this energy strategy. Finally, there is a paucity of energy data and this will impact on the strategy, both directly and indirectly, in terms of justifying targets and monitoring the effectiveness of the strategy once implemented. It is critical that this is addressed in making the strategy meaningful in terms of measuring the impact of the interventions.


2. An Energy Vision for Gauteng The proposed energy vision for Gauteng is:

A Gauteng province that is powered by a low carbon economy with a significant share of national “green jobs”, and accessible and affordable energy services that do not impact on the health of people or the environment.

2.1 The Future of Energy in Gauteng

Gauteng province has taken a bold step to develop and implement an integrated energy strategy and implementation plan. If the objectives of the strategy are implemented, Gauteng will look very different in the future – it will have chosen a markedly different development path that ensures energy for all in an equitable and environmentally sound way. In 2055 it is envisaged that Gauteng will be powered by a low carbon economy with a significant share of national “green jobs”, where citizens have accessible, affordable, safe and efficient energy services and integrated public transport that do not impact on the health of people or the environment. It will be a province recognised as a hub of innovation, focused on clean energy technology, and having superior “green” building stock in the private and public sectors, a large take-up of energy efficiency appliance use and a visible shift toward lesser polluting transport technologies, fuels and vehicles. It will be a province where energy companies provide effective energy services to the various communities across the province, based on the specific needs in the various areas. It will be a province where one will see a solar water heater on every roof. The residents of Gauteng will also feel the marked reduction in fuel poverty, pollution, respiratory illnesses and safety threats through the use of cleaner, safer domestic fuels. Gauteng’s generation mix will have a significant share of renewable energy sources, and an energy system that supports decentralised energy generation and micro generation. The market, governance and institutional structures in the province will have developed to include:

effective leadership and co-ordination of the integrated energy policy and programme across the province and between the spheres of government;

fiscal reform initiatives, aligned with the national Treasury Environmental Fiscal Reform process, examining new means of financing clean energy initiatives and removing market barriers;

a series of new policy and practice guidelines at both local and provincial government level, prioritising energy productivity in buildings (residential and commercial), vehicles and industrial settings; and

effective partnerships in development, education and communication strategy implementation with all key role-players in the provincial energy system, ensuring the Integrated Energy Strategy is implemented and the targets are continuously achieved and measured;

good data collection and effective monitoring systems in place. Gauteng’s sustainable energy future will ensure a competitive advantage for Gauteng, contributing to the achievement of the goals of Global City Region and the

January 2010 page 6


economic growth imperatives. In summary: In 2055, Gauteng will have a modern energy system that is highly efficient and where fossil fuel use and fuel poverty are markedly reduced. The total energy consumption will have been reduced by in the order of 18% from “business as usual” projections, clean and renewable energy will contribute 47% of the energy mix, and emission reductions of 49% will have been achieved relative to 2007 figures. Provincial and local authorities will have an understanding of the impacts of their energy use patterns and will play a leading role in implementing the energy strategy across the province.

January 2010 page 7


2.2 Proposed Energy Targets

Gauteng has strong energy targets marked for years 2014, 2025 and 2055 from a baseline year of 2007. These targets were developed using the LEAP scenarios modelling (see the attached report: Assessment of Energy Efficiency and Renewable Energy Potential in the Gauteng Province and Associated Long Term Energy Planning Implications). The existing national targets, which are surpassed substantially in this strategy, were set in a very different context of low electricity prices, a fledgling carbon market and poor regulatory framework for renewable energy. South Africa has since then put in place a process to create a much more conducive environment for energy efficiency and for renewable energy. The current situation therefore, demands more stringent targets. This becomes apparent when looking at the requirements of the LTMS, which the government has endorsed at the highest level, where it is clear that current growth paths, and even successful implementation of all current policies and strategies, still fall far short of taking us to the level of carbon reduction required as illustrated below. The far-reaching consequences of striving for the LTMS (required by science development path) cannot be overemphasised, and this, along with poverty alleviation, is arguably one of the most daunting challenges faced by the province and the country. Yet we have no option in these matters if we are to maintain any level of prosperity into the future, and this strategy rises to that challenge. Bold targets are a necessary part of this, alongside strong action and firm leadership.

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Figure:2 The carbon impact of the current national development path compared with the necessary reductions as specified by the LTMS (required

by science)

Details of how to realise the targets are set out in chapter four - Vision to Action. A comprehensive implementation action plan was developed through a stakeholder consultation processes. As noted above the vision for Gauteng Province in 2055 demands substantial changes and challenges in order to reach that vision.

January 2010 page 8


2.2.1 Interim Provincial Minimum Targets

Action 2014 2025 2055 Overall provincial energy efficiency against business as usual scenario – Electricity 7%6 15% 7

Electricity and other fuels 8% 18%

Transport energy efficiency 7% 15%

Residential energy efficiency – Electricity 13% 37%

Other8 8% 17%

Industry energy efficiency – Electricity9 10% 15%

Other10 8% 15%

Commercial energy efficiency – Electricity 13% 25%

Government energy efficiency – Electricity 13% 25%

Renewable energy consumption (electricity only)11 7% 16% 47%

Carbon dioxide emissions reduction (against business as usual scenario)12 13% 27% 49%

Carbon dioxide emissions reduction required to meet LTMS 13% 27% 73%

Renewable energy generation required to achieve LTMS carbon reductions 7% 16% 83%

Electrification targets (proclaimed stands) 100%

Efficient water heaters installations: Mid-hi income 20% 95%

Low income (solar water heaters) 20% 50% 80%

Free Basic Alternative Energy Access in informal households 20% 80%

6 Initial overall efficiency target is relatively low because of increased electricity use from greater use of trains in the

transporting of people and goods. 7 2055 targets are not calculated as all energy efficiency interventions will have been implemented by 2025. 8 Residential non-electrical target (mostly coal) is based on possible coal savings of 20% from efficient burners (as

with basa njengo magogo). 9 Industrial electrical energy target is in-line with Energy Intensive User Group estimate of 8 to 10% efficiency

potential in the short-term. 10 Industrial non-electrical (mainly coal) energy efficiency is based on Energy Efficiency Baseline Study (Department

of Minerals and Energy, 2002) where thermal efficiency improvements for different sectors are analysed (typically

range between 10 and 20% within 5 years depending on the sector).

11 The renewable energy targets are based on the LEAP modelling exercise and take into account the rollout potential

given lead-in timeframes for different renewable energy technologies.

12 Carbon targets are derived using LEAP from the efficiency and renewable energy targets.

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Notes:

(Note: all targets in the document are MINIMUM targets, and are from a ‘business as usual’ baseline in other words the current development path as identified by the LTMS)

Targets are compared with the BAU (business as usual) figures - for example 22% efficiency in 2014 means 22% less energy consumed than the business as usual projection for 2014. This approach is consistent with the setting of most national targets. However, in order to monitor how successful the strategy is in achieving these targets it is necessary to benchmark the figures. See appendix 1 showing targets against actual figures for 2007.

Electricity targets are derived from the Energy Efficiency Spreadsheet Tool analysis of the Gauteng electricity profile contained in the attached document ‘Assessment of Energy Efficiency and Renewable Energy Potential in the Gauteng Province and Associated Long Term Energy Planning Implications’.

Aggregated targets (overall energy efficiency, carbon reduction etc) are derived from LEAP modelling exercise. See attached document ‘Assessment of Energy Efficiency and Renewable Energy Potential in the Gauteng Province and Associated Long Term Energy Planning Implications’ for a description of the modelling process and assumptions used.

January 2010 page 10



2.2.2 Current National Targets (for a breakdown of current metro targets see appendix 6.2)

Action Target Year Source

A national target for energy efficiency improvement

12% 2015 Energy Efficiency Strategy of the Republic of South Africa, Department of Minerals and Energy, March 2005

Transport Final Energy Demand Reduction 9% 2015

Residential Sector Final Energy Demand Reduction

10% 2015

Industry and Mining Final Energy Demand Reduction

15% 2015

Commercial and Public Building Sector Final Energy Demand Reduction

15% 2015

Power Generation – an interim target of reduction in “parasitic” electrical usage

15% 2015

Renewable energy target: 10 000 GWh (0,8 Mtoe) renewable energy contribution to final energy consumption. Quoting from the DME this is equivalent to replacing two (2x 660 MW) units of Eskom’s combined coal-fired power stations or 1100 million litres of diesel (14% of one year) replaced with biodiesel

4% 2013 White Paper on Renewable Energy Policy, November 2003

Electrification targets (universal access) 100% 2012 DME UAP and Thabo Mbeki, 2004

Carbon dioxide emissions reduction as per the “Required by Science” scenario

between 30% & 40% less than 2003 levels

2050 Long-Term Mitigation Scenarios, DEAT, October 2007


2.3 Direction, Principles and Approach

The Gauteng Integrated Energy Strategy takes its lead from the national White Paper on Energy Policy (1998) as well as from recognised international and national cutting-edge approaches to energy, particularly the LTMS.

It is premised on the concept that people create change and therefore people as change agents are key to delivering on the strategy.

An integrated approach to energy planning is advocated – promoting a secure range of energy generation and management options, including demand- and supply-side options. The strategy will promote a mix of energy efficiency and conservation measures as well as the promotion of progressive generation mix options.

The role of province is to facilitate the co-ordination of energy supply and use and ensure the implementation of national policy at the local level. According to current legislation, province has particular roles and responsibilities which will enable it to play a facilitating role in terms of the strategy. But to give real effect to the implementation of the GIES, areas must be identified where the province can use its competency to do more, for e.g. an asymmetrical agreement with national government. It is acknowledged that province does not have a competency in energy per se, but it can influence the actions being undertaken. The province must therefore ensure that sufficient efforts are being explored to maximise what can be done by provincial government. Perhaps provinces should consider challenging and changing legislation to give them more power in terms of energy.

Gauteng province through DLG & H will provide leadership and be the driver, promoter and co-ordinator of the energy strategy. A strong principle of the strategy is that the province should lead by example and implement its own programme to green its operations.



2.4 Vision to Action

The strategy consists of ten enablers which are fundamental to transforming the vision into action. Each one is important in its own right, but implementation of all elements is key to successfully transforming the vision into action which ultimately puts Gauteng in line with national goals of moving towards a low-carbon economy and the scaling up of renewable energies and energy efficiency. The strategy is premised on the following key goals:

Province to provide the leadership and institutional framework required to drive the strategy forward.

Implement strong energy efficient measures. Pave the way to develop and grow renewable and alternative energy options. Support the move towards a low carbon economy. Prioritise energy security and access to safe, clean and affordable energy. Develop and grow the alternative and energy efficiency industry as a critical

aspect of Gauteng’s economy. Outlined below are the primary components of each element of the strategy. For details refer to Chapter 4.



1. Strategic Leadership

Intention Statement

To demonstrate leadership that promotes sound energy decisions and action

Objective

Provide co-ordination, alignment and leadership on energy matters

2. Financial Mechanisms

Intention Statement

To have the financial support to implement the energy strategy

Objectives

Develop a funding plan to support the roll-out of the strategy Implement a framework for longer-term financial support for provincial and municipal government energy projects

3. Local Government, Regulation And Market Support

Intention Statement

Ensure that regulation and market support enable the sustained implementation of the strategy

Objectives

Support local governments to develop and enforce policies and regulations that promote renewable energy and energy efficiency Support provincial departments to develop regulations, guidelines and policies that promote good sustainable energy practices



4. Promoting Innovation And Clean Energy Technologies

Intention Statement To promote the development of technologies that facilitates the move to a new energy future

Objectives Build strong relationships and networks with research institutes, academia and potential funders Set agenda according to province’s needs to guide research development Develop a supportive environment for new business development in the clean energy technology sector Build awareness

5. Using Energy More Efficiently

Intention Statement To have an energy-efficient province

Objectives Develop an energy-efficient transport sector Government operations and buildings to be energy efficient Households to be energy efficient Industry and commerce to be energy efficient

6. Sustainable Energy Supply

Intention Statement To ensure that the energy supply mix in Gauteng is optimised in terms of economic, social and environmental sustainability, and to foster an enabling environment for this to happen

Objectives Determine and promote the most economically, socially and environmentally sustainable supply mix Ensure that Gauteng takes responsibility for its global warming impact in line with national and international imperatives Work towards security of supply



7. Transport

Intention Statement Gauteng has a transport system that is based on principles of efficiency, equity and sustainability

Objectives Build and increase current public transport developments Promote infrastructure management Promote more efficient spatial planning Promote modal shifts in transport use Develop financial incentives Promote transport technologies Build awareness

8. Affordability and wellbeing

Intention Statement Citizens of Gauteng meet their energy services needs

Objectives Develop energy efficient houses Provide greater access to a range of safer energy options and reduce health and safety dangers associated with current fuel use patterns Raise awareness on options available

9. Empowering Consumers to Reach the Vision

Intention statement Empowering citizens to reach the vision through knowledge

Objectives To develop citizens that become agents of change in all aspects of energy efficiency Supporting government departments to lead by example

10. Institutional Support

Intention Statement To create a centre or Energy Office from where all energy matters and actions will be managed within Gauteng Province.

Objective Drive the strategy through firmly institutionalising energy within provincial government and building effective partnerships with all spheres of government and other key stakeholders




2.5 Policy Implications into the future

The strategy has major policy implications for Gauteng Province. Some of the key implications include:

Advocating maximizing the use of local energy resources such as landfill gas, efficient water heating and solar energy.

Shifting to a low carbon economy will affect the kinds of industries that emerge into the future given that Gauteng is the economic hub of the country, and will require a carefully thought through growth path which identifies and exploits opportunities in such a low-carbon trajectory. Current industries will also need to further adapt and look at their carbon footprint. See Section 3.3 for more information on the implications of moving to a low carbon economy.

Moving towards an integrated approach to energy planning. Provincial commitments to RE and EE targets. The implications of the above for job creation generally within the province. Using the development of the renewable energy industry as an employment

creation opportunity, and as a means of developing local industry and SMMEs - all of which will impact on poverty.

Mass roll out of skills enhancement and capacity building within province which will require both policy and operational changes in order to implement.

Province leading by example has implications in terms of implementation both at provincial and municipal levels from a policy and financial perspective and will require both structural and procurement changes.


3. Direction, Principles and Approach

3.1 Principles

The Gauteng Integrated Energy Strategy takes its lead from the National White Paper on Energy Policy (1998) as well as from recognised international and national cutting-edge approaches to energy. Premised on this the following principles, concepts and approaches guide how Gauteng province will move from vision to action as well as guide the prioritisation of intended actions. Energy is a cross-cutting issue. Energy is critical for our survival and cuts across all sectors and areas of our life. Every decision made usually has an energy dimension, impact or influence. This means that all departments within Gauteng province, all spheres of government and all stakeholders need to have an input in developing the integrated strategy as the province moves from vision to action, and all will have a role to play in delivering on the targets and on the strategy as a whole. The province therefore will need to work with all stakeholders to build the plan. The Gauteng Integrated Energy Strategy is also premised on the concept that people create change and therefore people as change agents are key to delivering on the strategy. This has implications in terms of building awareness and capacity as much of what is advocated demands a paradigm shift in behaviour and thinking. Energy is a double-edged sword. It is essential for development but can be destructive if the fuel choices and means of production are not considered carefully. Fuels such as coal, nuclear energy, paraffin and petroleum have large environmental footprints and health impacts. There are potentially a number of additional developmental benefits if we choose a better energy path. In South Africa, the poor use a mix of fuels, including hazardous fuels such as paraffin and coal, and the energy system is centralised and fossil fuel dependent. Better health, cleaner air, local ownership and job creation are possible if the Gauteng energy plan prioritises renewable energy technologies. In the US, for example, their New Green Deal stimulus package intends to create 2 million jobs by investing in four energy efficiency and renewable energy strategies:

retrofitting buildings to improve energy efficiency; expanding mass transit and freight rail; constructing a “smart” electrical grid transmission system; and supporting the development of renewable energy i.e. wind power, solar

power, next-generation biofuels and other bio-based energy. In Gauteng these actions are also possible and could bolster the provincial mandate around facilitating (as opposed to provision of) a more sustainable and integrated energy system, one that is based on the principle of equity. In addition to the moral obligation to ensure a healthy environment for future generations, the energy strategy will be based on dealing with the development challenges of today, including job creation and poverty alleviation. Sustainable energy is part of that solution. Currently energy consumption, rather than the level of energy services, is seen as the indicator of development. By taking energy consumption as the measure of development, energy planners are often simply concerned with increasing fuel and electricity supplies based on existing patterns of energy use, rather than with identifying and sustaining the level of energy services that would be required to satisfy basic human needs. Energy is an essential input for the fulfilment of all basic needs. From the standpoint of sustainable human development, therefore, what is urgently needed is a reorientation of ideas about energy to focus on the manner in



which it is currently utilised, its potential for improving people’s quality of life, and ways to increase access to its services for the poor. From the standpoint of the end user, what matters most about energy is the level of service it provides, rather than the amount of primary energy that goes into delivering the service. Since conserving a kilowatt-hour (kWh) of electricity or fuel is generally cheaper than producing an additional kWh (e.g. in a power station), the most cost-effective ways to deliver energy services often involve improving the efficiency of energy conversions to final energy of end-use devices. It has been estimated that a modest increase in per capita primary energy is sufficient for developing countries to provide energy services equivalent to those enjoyed in Western Europe in the mid-1970s. An integrated and sustainable energy system encompasses more than energy efficiency and conservation. These systems are diverse, flexible, self-reliant and renewable, and such planning requires careful development, nurturing, implementation and review. It involves strong support from the community and partners at all levels. The South African White Paper on Energy Policy (1998) says:

To cope with multiple causal linkages, energy policy analysis usually commences with the demand side by means of the process entitled ‘integrated energy planning’. This recognises that energy is not an end-good but is rather consumed as a means to an end. Policy must facilitate optimal energy consumption and production to meet social needs. This requires consumer choice and the operation of market forces.

This strategy is guided by this statement. Section 3.2.2.2 of the Energy Policy White Paper on improving energy governance also says:

Co-ordination between government departments, government policies, and the various spheres of government will be improved in order to achieve greater integration in energy policy formulation and implementation.

The Gauteng Integrated Energy Strategy is therefore a step towards this objective and the strategy will attempt to align with national and local energy strategies. A number of cities have initiated sustainable energy interventions and plans, and national government has a suite of policies supporting a move to a more sustainable energy path. These activities are acknowledged and will be built on. Although provinces have a limited direct mandate around energy they do have a clear role to facilitate the implementation of national policies at the local level. This is of critical importance given that many local authorities have little knowledge and no resources to develop and implement plans which address climate change, energy security and energy access by the poor, amongst others. Provincial support and coordination is a key enabler here. Provinces also have clear environmental, planning and transport mandates – all of which have major and direct energy implications. The role of provinces in moving to a sustainable energy future is therefore important – hence the development of this strategy - although often the implementation of measures will be effected by local authorities. The Gauteng Integrated Energy Strategy is guided by this and the expressed need for co-ordination around energy. The 1998 White Paper on Energy Policy says in section 8.10.1.6 on provinces and local authorities that –

The other two spheres of government have a limited role in energy governance. They are, however, responsible for economic and physical planning and, as such, are concerned with the supply and use of energy.



In addition, the White Paper on Energy Policy also says in section 8.10.3 on the co-ordination and communication with provincial and local government that –

There is clearly a need for improved communication and co-ordination between national, provincial and local government. For instance, the implementation of energy policies should be better integrated with provincial and local economic and physical planning activities. The Department of Minerals and Energy will seek to create mechanisms to improve communication on energy policies and the co-ordination of their implementation with provincial and local government. Implementation of this policy could entail the establishment of provincial energy committees in which the Department of Minerals and Energy might participate on an ad hoc basis. The department could also facilitate communications between the chairs of these committees. The department may also investigate the feasibility of establishing energy advisory functions within its regional offices to assist with and participate in provincial and local planning activities.

To enable province to play an appropriate role in delivering on the energy strategy, it will have to adjust institutionally. The institutional form will follow the confirmed role and function. Getting the structure right and defining and clarifying the roles of the province, municipalities and other stakeholders is important. It is clear that a driver and co-ordinator is needed and it is the intention of the province to create an energy centre or office from which energy issues and actions will be managed within provincial government and within Gauteng Province as a whole. The Long-Term Mitigation Scenarios (LTMS) signed off by Cabinet in 2008 provides the direction for climate interventions in the country. The National Climate Change Summit in March 2009 formally launched the process for developing a National Climate Change Response Policy. The draft document and the Summit have both reinforced the decision to follow the LTMS recommendations. In line with these decisions at a national level, this energy strategy will implement the LTMS intentions at provincial level. The LTMS framed future scenarios for growth paths and their carbon implications - three of which were: ‘Required by science’ (if full-scale mitigation was undertaken by South Africa), ‘Growth without constraints’ (if South Africa did not mitigate its emissions before 2050) and ‘Business as usual’ or ‘Current development plans’ scenario (which includes government’s Energy Efficiency Strategy to achieve a final energy demand reduction of 12% by 2015 and the current target of 10 000 GWh renewable energy contribution to final energy consumption by 2013). The LTMS notes that the composition of the economy has played a major role in our high emissions and in our competitiveness, and that the most difficult but most fundamental approach to mitigation would be to shift South Africa’s economy away from its energy-intensive path. The LTMS report on page 27 succinctly puts it as follows:

Growing without carbon constraints may be good for South Africa’s economic growth, but it will result in rapidly increasing emissions. A four-fold increase in emissions by 2050 is likely to be unacceptable to the international community. It is also a high-risk approach on other grounds, such as rising oil prices, carbon constraints in trade, and advancing impacts. If all countries, including high emitters in the developing world, adopted a Growth without Constraints approach, climate change impacts in South Africa would be extensive. A massive effort would be needed by South Africa to achieve emissions reduction sufficient to meet the Required by Science target. The gap between where South Africa’s emissions are going and where they need to go is large (1300 Mt CO2-eq, more than three times South Africa’s annual emissions of 446 Mt in 2003).

The LTMS defines the policy options as:



greenhouse gas emission (GHG) reduction and limits – a transition towards a low carbon economy,

building on strengthening and scaling up current initiatives – increase energy efficiency, demand side management initiatives and transport modal shifts,

implementing a ‘business unusual’ call for action – grow the renewable energy sector,

preparing for the future – through research and development, people oriented measures – changing social behaviour, alignment, co-

ordination, co-operation, implementation.

The ten enablers in the strategy incorporate all of these policy options and thus the GIES is developed along the main principles of the LTMS. It is a holistic strategy that will attempt to implement some of the key recommendations of LTMS and thus should be read in conjunction with this important document and like the LTMS aims to create a sustainable energy sector, reducing GHG emissions, building a low carbon economy and responding to poverty and inequality whilst maintaining economic growth.



3.2 An Integrated Approach to Energy Planning

There is no doubt that the challenges in electricity supply in recent years have been a significant cost to all in the province. Energy security is thus a priority. In addition to creating “nega-watts”13 through energy efficiency and energy conservation, promoting sustainable sources of energy supply is important. Traditionally, energy planning has followed a short- to medium-term least cost approach, which often fails to take into consideration issues of sustainability, social development and environmental protection. Fossil fuel and energy-intensive consumption patterns are entrenched in the energy policies and programmes of many developing countries and South Africa is no exception. Energy planning processes are dominated by a supply-oriented paradigm that links GDP growth directly with energy use. Cross-country experience has shown, however, that national energy demand is proportional to GDP if and only if the structure of the economy and the energy intensities are constant. International examples show us that it is possible to de-couple energy and GDP growth. In other words the economy continues to grow with a decline in energy growth so that the two are not interlinked. In South Africa, due to its high energy intensity, there are significant opportunities for energy efficiency and it is conceivable that we could “leapfrog” to points of low energy intensity. Expenditure on increasing energy supply represents a major economic cost to all countries. In the developing world, the financial and opportunity cost of capital, foreign exchange constraints, and the cost of energy subsidies combine to create severe economic constraints to supply-driven models for expanding energy. The LTMS results suggest that energy efficiency and a cleaner fuel mix are significant mitigation actions, but in the long run, the challenge is to consider the energy intensity of our economy structurally. On page 26 the LTMS report states:

Considering this path would mean that instead of investing in energy-intensive sectors, which were at the heart of our economy over the twentieth century, South Africa would move towards a low-carbon economy. Industrial policy would then favour those sectors that use less energy per unit of economic output. A transition to a low-carbon economy in South Africa might involve shifting incentives – removing incentives for attracting energy-intensive investments and using the resources freed up to promote lower-carbon industries.

In addition, a widely-held belief among policy-makers is that the only energy carriers of significance are coal, petroleum-derived liquid fuels, natural gas for industry and transport, and electricity for almost all other services. Linked with this is the often-mistaken idea that the investment costs of harnessing energy from renewable sources would be much higher than from fossil fuels. In fact recent modelling exercises have shown that in the long term costs of developing renewable energy options are cheaper than fossil fuel based options. Within this context, the Gauteng Integrated Energy Strategy has adopted an integrated energy approach that attempts to address these disparities and which is proving itself in a number of countries. This includes a portfolio-based approach, a drive towards energy efficiency whilst at the same time taking into consideration environmental, economic and social costs as well as concentrating on energy security. A portfolio-based approach focuses on securing a range of energy generation and management options, including demand- and supply-side options. It 13 In other words reducing the need for generation capacity by mega watts - the term ‘nega-watts’ is thus synonymous

with energy efficiency



promotes the diversification of the energy supply mix, including sustainable and clean energy sources. So within the limited mandate of the province and in its role as driver, co-ordinator and promoter, the energy plan will be a mix of energy efficiency and conservation measures as well as the promotion, through considered instruments, of a progressive generation mix that sees the conventional reliance on limited generation options being replaced by a broader portfolio of energy options. A strong principle of the strategy is that the province should lead by example and implement its own programme to green its operations. In addition it makes use of targets as markers on this new energy path. The use of targets in plans, programmes and projects is widespread and is a succinct way of communicating intentions as well as measuring performance. However, the strategy is aware that many of the targets are bold. Whilst they clearly do not bring Gauteng in line with the LTMS’s required by science option, they do enable a substantial move in that direction. In setting the targets and in reviewing the strategy on an annual basis (which is advocated) it will be important to ensure that the targets are achievable as well as challenging over time. The strategy is based on the premise that the energy sector is a huge area to tackle and that a just transition to a new energy path is recommended. As the LTMS report states:

A low-carbon economy will not emerge overnight. Energy-intensive industries will continue to exist, and a comprehensive strategy would have to include transition for these sectors and their labour forces. Policies to assist energy-intensive industry would include promoting higher value-added sectors, as well as ambitious energy efficiency targets (since the potential for energy savings are greater here). More proactively, the transition would define new areas of advantage in climate-friendly technology [...] South Africa could deliberately seek to build new competitive advantage in climate-friendly technologies, such as solar thermal electricity [...] The aim would be to become a market leader, with government providing supporting measures.



3.3 Policy Implications into the future

The Gauteng Integrated Energy Strategy is advocating: a shift towards a low carbon economy where emissions peak and plateau by

2030. prioritising energy security which means adopting a mix of energy options

including current and new generation options. scaling up of energy efficiency measures. a substantial growth in renewable energy options. improving access to safe and affordable energy for the poor.

Transforming to a low carbon economy will take time, and in order for province to ensure energy security this strategy is advocating an appropriate, cost-effective but more diversified energy mix whereby energy is generated from a number of sources and places which will include fossil fuel energy as well as renewable energy, and strong efficiency drives. The speed at which new technologies are introduced is to some extent determined by the targets and financial constraints. Institutionally the strategy is advocating for an energy office which will coordinate the implementation within the province in order to achieve coordination and alignment across provincial and municipal departments. Because energy is cross cutting in nature and because of its relationship to climate change, at an implementation level it is best held centrally to avoid duplication and operating at cross purposes. Of particular significance is the move to a low carbon economy. Gauteng is the economic hub of the country contributing hugely to the national GDP whilst at the same time accounting for approximately one third of the country’s energy consumption and carbon emissions14 - this is because historically our industries have been highly energy intensive and highly fossil fuel based. Thus what are the implications from a policy perspective for the province to build an economy where energy consumption is decoupled from economic growth and where there is a move away from energy intensive industries? What are the economic implications for a low carbon development path? This has implications both in terms of how industries conduct their business thus continuing a drive for efficiency and carbon reduction but it might also have implications in terms of the kinds of industries that are developed and promoted into the future. In particular with regard to developing a renewable energy industry. It is clear that Provincial Government will need to further research and understand these implications in order to direct policy into the future. However, many strategies and policies currently in place are aligned to some extent with such a move. For example the Growth and Development Strategy for Gauteng Province (2005) intends to “build provincial unity and responsibility amongst all sectors of society towards reducing poverty and unemployment, creating jobs and ensuring socio-economic transformation of the Province.” The Global City Region Strategy aims for Gauteng to be a globally competitive region and the Gauteng Strategy for Sustainable Development talks about reducing the use of non-renewable based energy sources. Gauteng Province is ideally situated to become the solar water heater hub of the country as well as developing new energy technologies. These opportunities and other industries - it is already identified as “one of 46 global hubs of technological innovation”15 - can lead the way for the province to move towards a low carbon 14 Gauteng 2034 development strategy: energy trend paper, October 2008, Sarah Ward & Jason Schaffler

15 ibid.




economy. In addition the growth of a renewable energy industry is known to provide employment opportunities which will have a direct influence on levels of poverty. The development of a low carbon economy is not limited to large industries but also involves the encouragement of locally based business and to this end the development of SMMEs which is critical for the economy and helping in the reduction of poverty. In other words encouraging local production rather than importing from other provinces or indeed abroad. In order to roll out this strategy the Province is going to need to lead by example and in doing so develop skills and build capacity of staff in both provincial and municipal spheres. Extensive training and capacity building will impact on successful strategy delivery, but this will also require policy and operation changes at provincial government level as well as within the municipalities. Furthermore in its role as implementing national policy and providing support at the local level, province may have to develop policies to support this role in terms of the energy strategy. Developing clear policies will give more weight to the strategy at the local level. This strategy is not advocating a sudden change as this could undermine the economy, but rather looks innovatively at opportunities that both build the economy and build sustainability from an economic, social and environmental perspective. A case in point is the present economic downturn. Government should explore the possibility of using under-utilised infrastructure and capacity. A specific focus should be placed on companies that are closing down or shedding jobs. The existing infrastructure can be used to manufacture RE technologies and workers can be re-skilled. Current industries can focus on energy efficiency measures for their internal operations, but into the future they should be encouraged to look creatively at opportunities for change in their business operations and structure which are aligned with sustainability imperatives. Globally the trend is to move towards low carbon and future investment will move in this direction as well – i.e. less energy intensive industries. There is now almost total acceptance that globally we sit with an enormous problem - that climate change is upon us and if we do not act and change the current trajectory of green house gas emissions, the results will be catastrophic. The ‘peak oil’ trajectory of the global economy also requires that future energy use options and patterns are very different to current practice. It is therefore critical that as the economic hub of the country, Gauteng is looking ahead and making significant changes. Whilst this strategy may be challenging for the Province it will enable the province to maintain a globally competitive position.


4. From Vision to Action This chapter deals explicitly with developing a strategy that transforms the vision, the direction and principles of a future Gauteng into action. There are ten elements to transforming the vision into action and each one is important in its own right, but implementation of all elements is key to successfully transforming the vision into action in this strategy which ultimately puts Gauteng in line with national goals of moving towards a low-carbon economy and the scaling up of renewable energies and energy efficiency. These goals were strongly reinforced at the March 2009 Climate Change Summit held in Johannesburg, which was opened by former President Motlanthe, placing climate change high on the government’s agenda. It was further reiterated when President Zuma outlined South Africa’s targets just prior to the COP 15 meeting held in Copenhagen in December 2009 where South Africa was one of 96 signatories to the Copenhagen accord.

4.1 Strategic Leadership

Intention Statement To demonstrate leadership that promotes sound energy decisions and action Objective Provide co-ordination, al ignment and leadership on energy matters

Through the Department of Local Government and Housing, the province has developed this strategy that is based on the principles of change, transformation and sustainability that is achievable with both short- and long-term goals. Fundamental to such a change and to achieving the goals is the need for strong leadership and direction. Some of the targets and changes being called for are bold and will only be met through harnessing the will of all engaged in the process as well as creating an environment which supports and encourages innovative thinking and action – fundamentally what this demands is strong visionary leadership that will change the current energy path. This strategy has been called an integrated energy strategy largely because energy is cross-cutting and affects all aspects of social, economic and environmental development. It therefore follows that issues around energy do not fall neatly into the realm of one department but rather crosses boundaries with most government departments and structures, as well as spheres of government. It is thus crucial that the strategy should be integrated and should encourage alignment, co-ordination and co-operation, as outlined and advocated in the LTMS document. The adoption of the strategy by government and all stakeholders is an important first step. The hosting of an annual energy summit would allow the province to review the strategy and ensure that goals and targets are achieved and continue to be achievable into the forthcoming year. Strategic leadership demands not only the ability to drive an agreed strategy but also an ability to see where shifts in the strategy may need to take place over time, arising from changes happening within the province specifically and within the South African context more generally. Importantly the province should develop an annual State of Energy report for Gauteng to assess areas of strength and weakness as well as provide necessary data that might impact on future decisions taken at the annual energy summit. This report should include information on the status of demonstration projects. These



projects will be set up as soon as possible and will have a role in both kick starting the strategy and giving impetus for future projects to be initiated. At national level we have seen a proliferation of Acts, Bills, strategies and policies dealing with climate change, renewable energy, energy efficiency and many other related environmental issues. Within Gauteng province both at municipal and provincial levels there have also been many developments in terms of frameworks, documents and strategies dealing with the energy crisis and more generally with the environment, climate change and economic development amongst other things. However, it is vital that these documents, their stated targets and their implementation are brought to a central coordinated point. A Provincial Energy Forum or Advisory Board should be established to promote a common and shared vision in the province. It will help eliminate duplication – across the private and public sectors - and will help to drive goals, source funding, provide direction and above all enable change to happen. In addition it will serve as an advisory body for the Energy Office which will be established to drive the strategy The strategy ultimately needs to be framed by national and provincial policies currently in place and give guidance and direction to their implementation at municipal level. It should provide a thread or connection for all work taking place within the province, thus bringing cohesion and uniformity to sustainable energy and more broadly climate change related developments and projects. In other words, energy must be a key component of all government planning and become an intricate part of projects, strategies and proposals. It should feature on the premier’s coordinating council agenda. Furthermore, it is well documented that energy matters within government institutions are best driven by an energy champion. Within Gauteng and for the success of the strategy, the energy champion will reside in the Department of Local Government and Housing. This will mean that work being undertaken concerning energy, climate change and the environment is instigated through co-operation and partnership with executive councils, mayoral committees and sector departments, commerce, industry, international funders, academia and civil society. All of this requires strong leadership.

Strategic Leadership

Intention: To demonstrate leadership that promotes sound energy decisions and action

Objective: Provide co-ordination, alignment and leadership on energy matters

Output Action Who – Partners / Stakeholders

Initiation date

Adoption of the Strategy by government and all stakeholders

Consult key stakeholders for implementing strategy

Obtain agreement on relevant stakeholder roles in strategy implementation

Signing of MoUs with relevant municipalities regarding strategy support and implementation

Hosting of an annual Energy Summit to

DLG & H Provincial and local government Sector associations Business and

2010



Strategic Leadership

Intention: To demonstrate leadership that promotes sound energy decisions and action

Objective: Provide co-ordination, alignment and leadership on energy matters

review and plan for the year ahead industry

Establishment of a Provincial Energy Forum or Advisory Board

Identify key role-players for the Energy Forum including all spheres of government, civil society, industry and commerce sectors

Develop a terms of reference defining the role of the Forum, including legislative, advisory, regulatory and monitoring functions as well as advising and guiding the Energy Office (see section 4.10 for actions)

Set up the Gauteng Energy Forum

DLG&H Provincial and local government Sector associations Business and industry

2010

Government leadership on energy in the province

Establish an Energy Office (See section 4.10 for actions)

Ensure coordination, alignment, support and participation of all key departments and spheres of government regarding implementing the energy strategy, and ensure that all role players are adequately informed of activities. This is to be done primarily through the Energy Forum (see above)

Energy to be included in the KPAs for lead department HoD and Municipal Managers

Ensure engagement in building capacity within government departments (see section 4.9 empowering citizens to reach their vision) and link with Gauteng City Region Academy

Energy champions to be appointed in each department and facility. Appointees to develop and coordinate an energy plan for their department and facility

Energy to become a standing agenda item on the premier’s coordinating council and of all relevant municipal council meetings

Development of an annual State of Energy Report for the Province. This report will provide an overview of energy within Gauteng including basic data, an update status on demonstration projects and information on achievements, targets met and challenges

DLG & H Provincial and local government Sector associations Business and industry

2010




4.2 Financial Mechanisms

Intention Statement To have the f inancial support to implement the energy strategy Objectives Develop a funding plan to support the rol l -out of the strategy Implement a framework for longer-term f inancial support for provincial and municipal government energy projects

The financing of the strategy is critical in terms of enabling implementation and the achievement of targets as almost every element of the strategy demands financial investment. It is also important that such an investment is not seen as contrary to the economic growth and development of the province. Many provincial documents have focused on or included economic growth and the alleviation of poverty as a priority for the province. There are also international documents, in particular the Stern Review16, which argue that investment in renewable energy and energy-efficient options is in fact a sound economic investment. The LTMS document also argues for the need to invest in order to reduce the costs of the impact of non-investment in the future. The National Budget of 2009 is important in that it takes into consideration issues relating to energy and climate change, and to this end provides an entry point for province to use allocated funds. It is clear that the strategy will require a mixture of public and private sector funding. The expanded public works programme has money specifically being allocated to environmental programmes around RE and EE activities and R45 million is allocated to a new programme, Working for Energy, promoting RE and EE. Money is also made available for increasing demand-side management projects – some going to Eskom and some to municipalities. In the short to medium term, the cost of the initial implementation of the strategy must be done. A financing and funding unit must be established, perhaps in the form of a Gauteng Energy Fund and directly linked to the energy office. The structure could be responsible for accessing available money and lobby for further amounts so that the strategy is adequately supported financially. A comprehensive energy funding plan must be developed for the province. In addition, the Energy Office, together with the proposed Gauteng Energy Fund could consider hosting a renewable energy investor conference.

16 The Stern Review: The Economics of Climate Change (November 2006)


Financial Mechanisms

Intention Statement: To have the financial support to implement the energy strategy

Objective: Develop a funding plan to support the roll-out of the strategy


Initiation date

Short- to medium-term energy funding plan

Develop a business plan for the Energy Office which includes an enabling legal framework

Establish a funding unit in the Energy Office (see section 4.10 for energy office work streams)

Develop a business plan for the initial implementation of the strategy and develop a medium-term budget and investment framework for the strategy

The initial budget should include funds for demonstration projects to be started with immediate effect

Develop a database of potential donors, funders and partners and their interest areas

Identify sources of funding to support the business plan and secure funding

Establishment of a Gauteng Energy Fund which will fund projects at provincial and local govt (with low interest rates and efficient processing of applications)

DLG & H Provincial Treasury

2010



Objective: Implement a framework for longer-term financial support for provincial and municipal government energy projects

Comprehensive and detailed energy funding plan

Develop a business plan to support the longer-term implementation of the strategy, with particular focus on achieving the stated targets (including renewable energy purchase, mass rollout of efficient water heating, and energy efficiency targets)

Linked to the business plan, develop a detailed 10-15 year finance plan and statement of investment opportunities to guide and support targeted purchase of renewable energy and energy efficiency

Engage with banks to provide suitable loan products to support business plan

Engage with Central Energy Fund around mutual support and coordination regarding funding and implementing the strategy

Investigate the feasibility of a provincial tax option to fund renewable and alternative energy in Gauteng and ring-fencing this tax. As a part of this undertake a study regarding the legal position and financial potential of carbon tax on fossil fuels or transport fuels in the province

Use carbon finance (e.g. CDM) as a revenue stream both for the Energy Office itself and for projects being pursued

Coordinate funding plans with the Sustainable Development Strategy

DLG & H Provincial Treasury National Treasury Local governments Private sector stakeholders Donor community NBI DWEA

2010

Provincial and municipal energy financing objectives and programme

As part of developing a strategy business plan (above) conduct an assessment of key departmental/ provincial and municipal projects and determine funding needs

Develop and disseminate guidelines for funding support applications by departments and municipalities from Gauteng Energy Fund

Provide or facilitate strategic funding to departments and municipalities for implementation

DLG& H and DID, GEDA, Department of Economic Development Municipalities Provincial Treasury National Treasury

2014



4.3 Local Government Support, Regulation and Market Support

Intention Statement Ensure that regulation and market support enable the sustained implementat ion of the strategy Objectives Support local governments to develop and enforce pol ic ies and regulat ions that promote renewable energy and energy eff ic iency Support provincial departments to develop regulat ions, guidel ines and pol ic ies that promote good sustainable energy pract ices

In transforming the vision into action, there has to be mechanisms to support and encourage the way forward. It is clear that an enormous increase in renewable energy and energy efficiency investment will be needed over the next decade if there is to be a meaningful switch away from fossil fuel use. Legislation and regulation are important factors that may influence investment and growth. Province must develop relevant standards and by-laws to facilitate the expansion of the RE and EE market. For example, building codes and EIAs could incorporate energy efficiency as a requirement in final reports and assessments. Renewable energy and energy efficiency are unique in that they require higher upfront investment than conventional energy sources with little running or fuel costs. Relatively, this is even higher in South Africa, where we have had the luxury of cheap electricity from coal. Innovative strategies and policies are therefore needed to increase investment, spread cost over the life cycle, and reflect the multiple benefits of renewable energy and energy efficiency, which over time can be cost-effective. Developing regulation on renewable energy and energy efficiency also demonstrates government’s seriousness and commitment to enacting change. This in turn provides the confidence that the private sector needs to invest in the sector. The most common government policies for leveraging investment in renewable energy and energy efficiency are financial incentives, regulation and market support. Financial incentives – such as tax incentives and direct financial assistance in the form of rebates or free installation – are effectively a public source of financing. Regulation includes removing inefficient and conventional investment options that unknowingly encourage unsustainable energy interventions from the market through performance requirements in building codes and equipment standards. Government should lobby banks and home loan institutions to support an energy efficiency certificate for homes and buildings. Legally binding targets for renewable energy and energy efficiency can also be set. Market support policies include certification and training, information and technical assistance to users, market transformation and other programmes that remove investment barriers. Provincial government can also play an important role by putting policies and programmes in place that will maximize private, community and public investment in renewable energy and energy efficiency. These policies must be aligned to the provincial strategy as well as other provincial development plans. It is imperative that these policies must include targets and plans for financial incentives, new funding sources, regulations, and capacity building and training. These policies will in turn support market growth and development of the renewable energy and energy efficiency sector as well as thermal efficiency of new buildings, particularly RDP houses.



Provincial government can create a demand in the market by implementing and promoting their own programmes that encourage energy-efficient and renewable energy practices. Thus Province must aim to achieve ‘green building’ status by 2014 for all buildings in the Gauteng Precinct and all municipal head offices. This would hopefully be a catalyst for private sector companies to act and achieve ‘green building’ status. The Province should institute a system of reward of best practices by companies.

Local Government Support, Regulation And Market Support

Intention Statement: Ensure that regulation and market support enable the sustained implementation of the strategy

Objective: Support local governments to develop and enforce policies and regulations that promote renewable energy and energy efficiency


Initiation date

Standard by-laws and regulations for RE and EE in the province

Assess all municipal by-laws relevant to sustainable energy and resource use for how they can support or currently constrain implementation

Identify relevant by-laws and regulations required for, or in support of strategy implementation, e.g. building codes

Develop standard by-laws and draft regulations for consideration by municipalities where appropriate

DLG & H GDARD

2010

Green municipal building programme

Work with municipalities to achieve ‘green building’ status for all municipal head offices in accordance with the Green Building Council of SA rating system

DLG & H Municipalities DPW

2011

Sustainable growth of cities

Promote a sustainable ‘ecosystem’ approach to city development, including macro-planning considerations such as densification and transport corridors, as well as smaller scale development planning. Support cities with necessary research and development of policies to affect this

DLG & H Municipalities

2014



Objective: Support provincial departments to develop regulations, guidelines and policies that promote good sustainable energy practices

Develop standard guidelines and policies

Integrate EE, RE and Climate Change policy and legislation considerations into EIAs

Ensure that the spatial development framework of the province restrains urban sprawl

Explore potential to make approval of development plans subject to mandatory energy interventions (e.g. energy efficiency stipulations for shopping complexes, commercial buildings designed to less than150kWh/m2, or efficient water heating systems on housing developments)

Require provincial departments to assess and report on their energy and GHG profile and intensity (e.g. kWh/m2 for offices )

Develop guidelines for the proper disposal of CFLs in the region

Investigate the feasibility of an energy efficiency clearance certificate or penalty on home and building sales

Lobby banks and home loan institutions to support an energy efficiency clearance certificate

DED DLG & H Municipalities

2011

Air quality management plans

Link with GDARD to ensure alignment with the Air Quality Management Plan including: collation of data such as GHG emissions inventory, implementing improved domestic fuel burning, transport and industry emissions

Support GDARD and metros to further develop and implement air quality management plans that take into consideration air pollution and carbon implications of current energy practices

Air quality to be a key indicator in the annual State of Energy Report (see section 4.1 on leadership) in alignment with the with Air Quality Management Plan

DLG & H GDARD Municipalities

2011

Green public procurement policy

Support GSSC to further develop a green procurement policy for province and municipalities, including energy efficiency as an additional criterion

DLG & H GDARD Municipalities Supply chain management services

2012




Objective: Support provincial departments to develop regulations, guidelines and policies that promote good sustainable energy practices

Green public building programme

See section 4.5 on using energy more efficiently

Energy efficiency performance standards for buildings in the province

Undertake a pilot project for energy performance labelling of homes and buildings in co-ordination with local governments and industry and Green Building Council of SA

Actively pursue the integration of SANS 204 into the national building codes

DLG & H DoE DTI NEEA Local governments Private sector stakeholders – building sector Green Building Council of SA

2010


4.4 Promoting Innovation and Clean Energy Technologies

Intention Statement To promote the development of technologies that faci l i tates the move to a new energy future Objectives Build strong relat ionships and networks with research insti tutes, academia and potent ial funders Set agenda according to province’s needs to guide research development Develop a support ive environment for new business development in the clean energy technology sector Bui ld awareness

The road to sustainable energy will open up a whole new area in innovation and technology. The Gauteng government must seize this opportunity to become a hub for the development, research and manufacture of clean energy technologies. It is believed that the global market for clean and renewable energy is set to be worth US$750 billion a year by 201617.This offers the province enormous economic opportunities to embrace fresh ideas. The Gauteng government can promote innovation and clean technology through investments, research and public-private partnerships. These partnerships are important to improve clean energy technology development, develop internships and create an arena for knowledge sharing. The province can promote private sector funding and investment in research and development. In addition, regulation can be instituted to demand that certain clean energy technologies be used both in industry and in the residential sector (see section 4.3 on regulation and market support above). Importantly, the province can facilitate partnerships between the private sector, universities and government research institutions (such as SANEDI). Gauteng is also in a position to promote knowledge transfers between countries. As a way forward, the province should identify the key areas of clean energies that can be developed in the province – such as solar energy, landfill gas and energy-efficient technologies. The province must then develop policies that will maximise investment in energy-efficient and renewable energy technologies. The mandate of the innovation hub must be extended to include clean energy technologies. In addition the energy centre proposed through the Urban Observatory must develop an annual RE and EE Innovation Exposition.

17 “Labour’s 2020 target for a renewable energy future”:

ww.alp.org.au/download/now/renewable_energy_target_policy.pdf



Promoting Innovation and Clean Energy Technologies

Intention Statement: To promote the development of technologies that facilitates the move to a new energy future

Objective: Build strong relationships and networks with research institutes, academia and potential funders


Initiation date

Partnerships between the private sector, universities and government research institutions (such as SANEDI) and international agencies and organisations

Liaise with tertiary and research institutions on provincial sustainable energy research requirements

Establish cooperation frameworks with existing research institution grant programmes and internships at universities

Coordinate with DST regarding a clean energy technology incubator which focuses on provincial issues

Identify and establish partnerships with appropriate international bodies and agencies for skills and knowledge transfer

DLG & H GEDA SANEDI Private sector Universities in Gauteng

2010



Objective: Set agenda according to province’s needs to guide research development

Energy resource assessments

Clarify the feasibility of renewable energy options in Gauteng through a detailed energy resource assessment conducted in conjunction with industry and other sectors as appropriate

Drawing on the resource assessment, identify the key clean energies to be developed in the province – such as solar energy, landfill gas and energy-efficient technologies

Identify specific supportive technology needs that require further development and promotion (e.g. smart metering, mini-grid and smart-grid applications, as well as rapid transport options)

For an analysis of technologies available see the documents: ‘Energy Efficient and Renewable Energy Technologies Assessment Report’ and ‘Assessment of Energy Efficiency and Renewable Energy Potential in the Gauteng Province and Associated Long Term Energy Planning Implications’

DLG & H Premier’s Office Provincial Treasury Industry bodies

2011

Renewable energy development programme and investment case

Eskom and municipality renewable energy grid feed-in codes must be finalized and made easily available and applicable

See section 4.2 on financial mechanisms

DLG & H & Provincial Treasury NERSA & EDI, NEEA & local governments Private sector stakeholders Donor community

2010



Objective: Develop a supportive environment for new business development in the clean energy technology sector

Supportive mechanisms to promote clean technology business

Liaise with DTI and DED to promote business clusters such as solar water heater manufacturers, installers and maintenance, as well as renewable energy component manufacturing, e.g. turbine towers for wind energy or low-carbon transport vehicles. It may be appropriate to achieve this through a clean energy technology park that offers reduced rates/levies and taxes for a limited period

In conjunction with the above action to promote clean energy businesses, explore the feasibility of municipalities to reduce levies and taxes on clean products and start-up companies for a limited period

Support the establishment of clear standards for products working with SABS and other standards authorities (e.g. around SWHs)

Consumer and business education and awareness on clean energy alternatives

See section 4.9 on empowering consumers to reach the vision

DLG & H and municipalities DTI National & Provincial Treasury

2010

Objective: Build awareness

Facilitate innovation through building awareness

Hold an annual RE and EE innovation expo and awards


DLG & H DED DTI GEDA NBI

2015



4.5 Using Energy More Efficiently

Intention Statement To have an energy-eff ic ient province Objectives Develop an energy-eff ic ient transport sector Government operations and bui ldings to be energy eff ic ient Households to be energy eff ic ient Industry and commerce to be energy eff ic ient

South Africa has set a national target for energy efficiency improvement of 12% by 2015. The Gauteng province is striving towards 8% by 2014 and 18% by 202518. Of all the interventions in the energy sector, efficiency is the most cost-effective and will achieve the fastest overall results in terms of power demand and energy use, and therefore also local and global emissions reductions. As part of an integrated energy strategy, the country as a whole has seriously under-prioritised this aspect, and thus it is of added importance that Gauteng province promotes it proactively. Province should undertake to complete audits of all government buildings by the end of 2010. The advantage of implementing energy-efficient programmes is that this can be done immediately, and many interventions have little or no cost implications. Energy efficiency can also be carried out in almost all sectors – including transport, residential, government, industry and business. Some programmes are already in place in the province and include retrofitting public buildings, promoting the use of CFLs, efficient HVAC technology is available and solar water heater programmes are being planned. Energy efficient building standards have been developed by SABS and are currently being lined up to be incorporated into the national building codes. This strategy is aware that the targets set are extremely ambitious and will require significant changes in order to firstly reach the targets and secondly make an impact in the province. A tool has been developed to support this strategy and shows that savings within the household, commerce and industry sectors are for some interventions relatively cost effective and can result in substantial electricity savings A large-scale education and awareness programme is an important part of improving energy efficiency. Such programmes should highlight the significance of saving energy for the longer-term sustainability of the province, as well as increasing global warming emissions. Government must develop public awareness programmes on saving energy. An example would be for the Province to utilize campaigns such as ‘Earth hour’ more effectively in the province. It is important that government lead by example by making their own facilities energy efficient. This also will result in significant financial savings in the short term.

18 This is based on modelling specific interventions in LEAP and is considered realistic, though still demanding.



Using Energy More Efficiently

Intention Statement: To have an energy-efficient province

Objective: Develop an energy-efficient transport sector

For Outputs and Actions see section 4.7 on modal shift to public transport, use of non-motorised transport, etc.

Objective: Government operations and buildings to be energy efficient


Initiation date

Existing government building energy consumption reduced

Audit of all government buildings, including offices, schools, hospitals etc and retrofit for energy efficiency

Appoint ESCOs accredited by ESKOM to help with the audits and undertake retrofitting

Targets: o 13% reduction in energy

demand from BAU in government buildings by 2014

o Audits of all government buildings completed by 2010

o All incandescent lighting in government buildings to be replaced with energy-efficient lighting by 2012 (note that system for safe disposal of fluorescents needs to be in place)

DLG & H, EMTT, DID, Energy Office, municipalities

2010,12,14

New government buildings must comply with green building standards to be efficient

Province to achieve ‘green building’ status for all buildings in the Gauteng Precinct and encourage all municipal head offices to achieve same (see local govt section above), Adopt the standards of the Green Building Council of SA

As a part of the above, all new government buildings to include strong design features and technology to improve energy efficiency (SABS Commercial Building Energy Efficiency standards to be used as a starting point)

DLG & H DoH NHBRC Green Building Council DID EMTT DPW

2014



Objective: Government operations and buildings to be energy efficient

Capacity of government officials

Key staff in government departments to have undergone capacity building around EE, RE and/or DSM

Identify further and ongoing training needs

See section 4.9 empowering consumers to reach the vision for more actions

DLG & H, all departments

2010

Use of video conferencing to reduce government travel needs

Feasibility study for video conferencing potential to reduce travel needs for government (including interdepartmental travel), and implement study recommendations

DLG & H 2010

Support municipalities with energy efficiency programmes

Engage with municipalities to determine areas where support would further their municipal operation energy efficiency programmes and needs, including: o All electricity master plans to be

guided by an energy efficiency framework

o Efficient streetlights o LED traffic lights o Building efficiency (see section

4.3) o Municipal plant efficiency (water

pumping etc) o Capacity building of city staff o Design and undertake activities

to provide such support

DLG & H Eskom Local municipalities

2010



Objective: Households to be energy efficient

Support municipalities with domestic energy efficiency programmes

Engage with municipalities to determine areas where support would further their household energy efficiency programmes and employment creation needs, including: o Building efficiency standards

implementation including green building certification (see section 4.3)

o Promote insulation of ceilings o Promote alternative safe and

efficient cooking fuels o Roll-out of affordable, efficient

lighting in conjunction with safe disposal mechanisms

o Promoting adoption of appliance labelling of DoE

o Developing by-laws around building efficiency (see section 4.3)

o Smart metering options suitable for domestic applications

o Media and awareness campaigns

o CDM programmatic approaches to fund interventions

o Design and undertake activities to provide such support, considering employment creation in the implementation

All relevant departments, municipalities

2010

Public awareness programmes on saving energy

Design and implement public awareness programmes and campaigns on saving energy, for example, ‘international earth hour’ to become a provincially supported campaign

See section 4.9 on empowering consumers to reach the vision for more actions

DLG & H 2010

Low-income housing energy efficiency to be improved

See section 4.8 on affordability and wellbeing for energy efficiency in low-income houses



Objective: Industry and commerce to be energy efficient

Commerce and industry to develop energy plans

In collaboration with private sector, work towards ensuring that all businesses achieve green building status by 2014 using the Green Building Council of SA standards.

Obtain business sector endorsement of GIES efficiency targets

Large energy consumers to produce annual energy plans – (initially members of the Energy Intensive Users Group).

These plans must be factored into the State of Energy report

Monitoring and compliance of industry and commerce to be reflected in the State of Energy report

Lobby national government to develop energy intensity standards for large energy consumers and these consumers to report on compliance in their annual energy plans

Representatives from these sectors must be active in the Energy Forum (see section 4.1 on leadership)

The Province will recognize and reward best practice for outstanding performance

DWEA GEDA NBI Private sector stakeholders – tourism sector EIUG

2014



Objective: Industry and commerce to be energy efficient

Commercial and industrial energy efficiency programmes

Engage with municipalities to determine areas where support would further their energy efficiency programmes and needs, including: o Industry and commerce

completing energy audits by 2012

o Promoting green building guidelines

o Commercial and industrial building energy efficiency and green building standards implemented

o Adopting appliance labelling standards

Province to engage with municipalities towards making building standards mandatory Support the development and province wide rollout of by-laws around building efficiency

Intelligent metering and central monitoring of industrial and commercial customers against set targets by municipalities and Eskom

Uptake CDM programmes to support intervention funding

Engage with municipalities to look at and implement stepped pricing as a means of achieving efficiency targets

The Energy Office to design and undertake activities to provide such support

DLG & H and sector departments Municipalities NBI Private sector

2010

Public awareness programmes on saving energy

Design and implement public awareness programmes on saving energy aimed at commerce and industry

DLG & H 2010

Promote National Business Initiative (NBI) Energy Efficiency Accord with medium to large businesses in Gauteng

Link with the National Business Initiative around active promotion of the Energy Efficiency Accord for industry within Gauteng

Engage with industry to participate Engage with industry and commerce

sectors to determine how to make Accord implementation more effective

DLG & H, NBI, Industry

2010



4.6 Sustainable Energy Supply

Intention Statement To ensure that the energy supply mix in Gauteng is optimised in terms of economic, social and environmental sustainabi l i ty, and to foster an enabl ing environment for this to happen Objectives Determine and promote the most economical ly, social ly and environmental ly sustainable supply mix Ensure that Gauteng takes responsibi l i ty for i ts global warming impact in l ine with nat ional and international imperat ives Work towards securi ty of supply

Energy is not only critical for economic growth and welfare of households, but also contributes to environmental problems, the most significant of which is the global warming crisis. It is thus imperative for the long-term stability and development of Gauteng that all of these concerns are balanced. Renewable energy, like energy efficiency, is a major factor in the decrease in CO2 emissions, and can also diversify and improve the security of energy supply if introduced correctly. Banks and Schäffler (2006)19 investigated the national renewable energy potential and developed scenarios to 2050. They showed that more than 50% of electricity could be generated from renewable resources by 2050, and illustrated the benefits of moving into this position. They make the important point that continuing on the “business as usual” energy supply route (i.e. fossil fuel dependent) that the country has practised for many decades will lead to an expensive and thus economically damaging energy mix in the medium or long term, not to mention the unacceptability of such a situation in terms of global warming. Most energy supply takes place via large centralised national systems such as the Eskom power grid, gas pipelines or the national liquid fuels distribution system. As such, most planning and decisions in this regard are done at national level – such as the National Integrated Resource Plan (NIRP) for electricity supply planning. While the Gauteng government has a limited role in this regard, it is nevertheless responsible for supporting the move to a more sustainable supply situation by influencing such processes as well as by maximising the use of feasible local energy resources. It is imperative that an assessment be done for the province to establish the suitable sustainable energy supply mix for Gauteng. Some of these issues and actions will appear in various sections to re-enforce what needs to be done. Amongst the most promising local renewable energy options for Gauteng in the short term are solar energy (solar water heaters) and energy from landfill gas. The province has the potential to develop into the regional solar water heater industrial centre with associated significant job creation. Approval must be obtained for a SWH strategy and implementation plan. In addition, to improve the clean energy profile and reduce the carbon footprint of the province, renewable energy from sources outside its geographic boundaries – such

19 Banks, D.I. & Schäffler, J.L. 2006. The potential contribution of renewable energy in South Africa, 2nd Ed,

Prepared for Sustainable Energy & Climate Change Project, Earthlife Africa Johannesburg, February 2006.

Summarised in Holm, D., Banks, D., Schäffler, J., Worthington, R., and Afrane-Okese, Y. March 2008. Potential of

Renewable Energy to contribute to National Electricity Emergency Response and Sustainable Development



as from wind generation – can be purchased by them. Building and supporting a renewable energy industry could provide job creation opportunities which will help reduce the high levels of unemployment in the province and assist in the road to poverty alleviation.

Sustainable Energy Supply

Intention Statement: To ensure that the energy supply mix in Gauteng is optimised in terms of economic, social and environmental sustainability, and to foster an enabling environment for this to happen

Objective: Determine and promote the most economically, socially and environmentally sustainable supply mix


Initiation date

Assessment of a suitable sustainable supply mix

Undertake an assessment of a suitable supply mix to balance the following: keep costs down to promote economic growth, but look to longer-term cost optimisation and environmental sustainability (including low carbon considerations) by introducing renewable and alternative energy options in the short term. Draw on work being done by NERT and NERSA

Targets: o 7% RE consumption (electricity

only) by 2014, 16% by 2025, 47% by 2055

Engage with the development of REDs and ensure that the GIES targets are fully incorporated into RED strategies and actions

DLG & H 2010

Encourage decentralised power generation

Explore and encourage decentralised energy production in Gauteng where appropriate

Maximise the use of appropriate RE technologies

Undertake a resource assessment for RE and other appropriate clean energy sources in Gauteng

Investigate regulatory barriers to utilisation of RE, including the MFMA, net metering and other feed-in constraints etc.




Support mass roll out of efficient water heating systems

Approval of an efficient water heating strategy and implementation plan

Support mass roll-out of domestic SWHs & other efficient systems in cities by appropriate involvement in these areas: o Training support for installers o Adequate standards in existence o Efficient water heating by-law

development support Financing model development support

(including for low-income households) Link with current projects under way

within Gauteng Targets:

o Achieve 20% penetration by 2014, 95% by 2025 in mid- to hi-income sector

DLG & H Municipalities Eskom SWH industry DBSA EnerKey

2010

Efficient water heating industry development is promoted

Promote the development of an efficient water heating industry to support mass roll-out and make Gauteng the regional centre for this technology, via: o Training o Industry incentives to promote

local production

DLG & H, DED Energy SETA

2010

Cities are supported in implementing landfill gas projects

Engage with cities to determine appropriate support for landfill gas project implementation, including: o CDM project development o Technical information sharing o Provision of expertise

DLG & H GDARD

2010

New clean energy options are introduced where feasible

Keep track of other renewable energy sources and promote where promising, including: o Sewage gas o Solar PV o Localised biogas generation o Fuel cells o Other promising technologies (see

section 4.4 on promoting innovation)

DLG & H CSIR

2010




Small-scale off-grid and grid-feed-in renewable systems are promoted in private sector

Work with cities to facilitate the private sector use of small-scale off-grid and grid-feed-in systems such as solar PV and biogas generation, including: o Technical assessment support o Standards development support o Awareness raising

DLG & H Eskom City Electricity Departments

2010

Facilitate the introduction of the Renewable Energy Feed-in Tariff (REFIT)

Support the finalisation and application of the REFIT to facilitate the commercial viability of large-scale renewable energy systems, by engaging with national government

Based on assessment of suitable supply mix (above), establish how REFIT can best benefit Gauteng and lobby for future phases on REFIT to address these issues

Lobby for the inclusion of small-scale generation options in the REFIT in future

DLG & H DoE

2010

Facilitate access to finance for renewable energy and EE implementation

Identify national sources for supporting renewable energy implementation, inform cities and private sector, and support use thereof (including: REFIT, Treasury renewable fund, Working for Energy, CDM and REFSO)

Apply for national DSM funds or similar that can fund energy efficiency projects in the province and municipalities

Investigate development of a TREC or similar system that provides funding and allows for clear accounting of renewable energy consumed in the province

DLG & H Provincial Treasury National Treasury DBSA DoE (REFSO)

2011




Objective: Ensure that Gauteng takes responsibility for its global warming impact in line with national and international imperatives

Co-ordination and support for national carbon reduction initiatives

Liaise with DWEA regarding the implementation of carbon reduction in accordance with the LTMS, and ensure provincial implementation is aligned – with the Air Quality Management Programme and a forthcoming Climate Change Strategy. (see section 4.3 under air quality management plans)

Link with GHG inventory set up by DWEA

Detailed study around what constitutes a low carbon economy and the future implications for the economy and society

Study of coal use in province looking at major users and potential adaptation to a low carbon future

DLG & H GDARD DWEA

2010

Implementation of measures to reduce carbon footprint

Undertake a Gauteng LTMS based on the national LTMS study to determine exactly how the targets are to be achieved and supply mix and industrial and other sector reforms necessary to comply.

Coordinate with the forthcoming Gauteng Climate Change Strategy

Implement renewable energy and energy efficiency actions (see above actions and section 5.5 on using energy more efficiently)

Targets: o 13% CO2 reduction by 2014 o 27% CO2 reduction by 2025 o 49% CO2 reduction by 2050

Establish consequences of not meeting targets (see monitoring and enforcement under section 4.10 institutional support)

DLG & H 2010

Carbon revenue available to support renewable and efficiency implementation

Clarify suitable carbon projects and sources of revenue, and facilitate access to the revenue by local government and private sector, including via: o supporting or developing CDM

programmatic and other methodologies

o technical support for the development of projects

See section 4.2 on financing

DLG & H GDARD DBSA


Objective: Work towards security of supply

Secure supply mix promoted

Supply mix (determined in earlier action) to include adequate diversity, consideration of reliability of supply, consideration of resource availability, consideration of price vulnerability, and reserve margins for secure energy provision

Support for cogeneration and other non-utility generation (see earlier actions)

DLG & H 2010

Security promoted through energy efficiency

Ensure that sector is efficient (i.e. doesn’t demand more energy than necessary) – see section 4.5 on using energy more efficiently for actions

DLG & H 2010



4.7 Transport

Intention Statement Gauteng has a transport system that is based on principles of eff ic iency, equity and sustainabi l i ty Objectives Build and increase current publ ic transport developments Promote infrastructure management Promote more eff icient spatial planning Promote modal shifts in transport use Develop f inancial incentives Promote transport technologies Bui ld awareness

The second largest consumer of energy in the province is the transport sector, with 35% of all energy consumption, this includes road, freight and rail travel but excludes aviation. Like energy, transport is a cross-cutting issue and impacts on, and is influenced by, decisions of a myriad of players. In terms of the Constitution, public transport is both a provincial and local competency, with national government able to legislate on transport in consultation with provinces and to manage state-owned enterprises (like those that manage the rail system). Because of the sheer number of players in the transport sector, it requires dedicated adherence to co-operative governance. There are developments in Gauteng in this sector, particularly with the construction of the Bus Rapid Transit system (BRT) and the Gautrain. The BRT in Johannesburg is known as Rea Vaya and will provide 122 km of rapid bus lanes and should be operational by 2010. Similarly, the BRT in Tshwane is expected to be operational by 2010. The Gautrain Rapid Rail Link will provide travel between Johannesburg, Tshwane and OR Tambo Airport, and the first phase of the work will be completed by 2010. Both these developments will impact on the growth of public transport in the province and ultimately the rate of energy consumption and emissions. The 2009 National Treasury Budget gave an additional R6,4 billion to public transport, roads and rail networks – this is linked with issues around spatial development and increasing mobility access for the poor. The Budget specifically talks about:

building new railway lines, buying new trains and putting more buses on the road;

introducing rail safety inspectors; providing funding for rural transport; upgrading 165 km of Gauteng’s primary road network with costs being

recovered from road users through a tolling system;. These comments are significant as the Budget provides to some extent financial infrastructure support and political will for changes to be made. To a large extent the kinds of changes that need to be looked at in a transport strategy are based on modal shifts. Thus an assessment of public transport needs must be done in municipalities. Travel in private vehicles accounts for approximately 49% of Gauteng’s land transport fuel use and a quarter of Gauteng’s overall energy use. This energy use is concentrated amongst the car-owning households. This group is generally resistant to switching to public transport. However, the Gautrain is aimed at airport passengers



and car-owning households. Interestingly, a recent study20 has shown that as much as 35% of peak morning traffic is education related. This means that a strategy that focuses on school-related journeys might make an immediate impact. The BRT system is aimed at passengers who might have a car but will opt for public transport for economic reasons, but will also attract those who might be prepared to make a modal shift given perhaps greater awareness of the impact of CO2 emissions and the positive results of making a change. The financial case of public transport is also important, particularly faced with fluctuating oil prices and the impacts of peak oil. It is important to thus expand existing bus and taxi services. The primary objectives of the transport strategy will be to focus on modal shifts initially, on raising awareness and increasing mobility and access to transport for the poor. The suggested targets are an overall improvement in transport efficiency of 7% by 2014 and 15% by 2025. This will include a 10% modal shift to public transport and a 7% shift from road freight to rail freight by 2014. In addition, government can begin the shift by converting municipal vehicles to alternative fuels such as gas. The development of an efficient transport network is linked to an improved spatial planning policy. This will require curtailing urban sprawl and improved town planning.

20 Behrens, R. (2002) Matching networks to needs: travel needs and the configuration and management of local

movement networks in South African cities, DPhil thesis, University of Cape Town.




Transport

Intention: Gauteng has a transport system that is based on principles of efficiency, equity and sustainability

Objective: Build and increase current public transport developments


Initiation date

Expanded bus services

Develop and expand existing bus systems in municipalities

Introduce smart ticketing

Public Transport Roads and Works/bus companies/taxi industry

2015

Expanded BRT system

Evaluate and depending on outcomes expand BRT to other municipalities

Public Transport Roads and Works/COJMM/bus companies and taxi industry

2020

Upgraded Metro Rail system Expand Gautrain service

Upgrade Metro Rail system, consider more trains, improve reliability, safety, expand stations

Reduce reliance on transporting freight by road

Evaluate and depending on evaluation outcomes, expand Gautrain to other areas

Public Transport Roads and Works/Metro Rail

2020

Integration of the taxi industry

Continue to engage the taxi industry until a satisfactory and acceptable model is created which integrates them into the public transport structure

Taxi industry associations Public Transport Roads and Works

2012


Objective: Promote infrastructural management

Improve and optimise traffic flow

Review overall traffic flow in Gauteng, including traffic light management, speed limits, on- and off-street parking positioning and access, one-way streets and public transport integration and prioritisation

Public Transport Roads and Works

2012

Better safety Review safety of public transport, identify potential changes and implement improvements

Review street design, safety features and implement improvements to increase safety, of pedestrians in particular

Public Transport Roads and Works

2014

Objective: Promote more efficient spatial planning

Improved spatial planning whereby housing developments are close to transport routes, shops, amenities, schools and work-places

City spatial, town, transport, education and infrastructure planning departments to work together to: o Build collaborative town

planning o Develop and enforce guidelines o Develop efficient new and

existing routes o Concentrate housing

developments (densification) o Decentralise trading o Promote mixed land use o Prioritise non-motorised

transport o Create “No transport”

communities o Allocate provincial land to

municipalities for integrated spatial planning

o Integrate the ITP into the IDP

DLG & H DPTRW

2020



Objective: Promote modal shifts in transport use

Safe and separate cycle lanes

Investigate feasibility of implementing cycle lanes – in city centres, near university areas and in less congested municipalities

Explore and promote bicycle rental schemes

Promote use of scooters Make it possible to carry bicycles

on public transport

Public Transport Roads and Works City departments

2015

Park and ride centres operating

Identify and develop suitable park and ride facilities

Link with large employer programmes (see below)

Investigate congestion charges and implement if appropriate

Public Transport Roads and Works City departments Cycle manufacturers

2015

Large employer travel programmes

Encourage car pooling with priority parking

Encourage consideration of company transport

Encourage employers to introduce incentives to promote use of public transport or cycle to work

Introduce parking disincentives

Industry, Commerce, NBI

2012

Schools/learner programme

Conduct a study on how to improve learner transport system including potential use of incentives

Encourage car pooling, walking in groups or other alternative modes of transport

Public Transport Roads and Works Education

2012

Integrated modal planning

Promote: o Decentralisation of workplaces

so that there will be less congestion in the CBD

o Working from home o Telecommuting o Bicycle lanes, park and ride

system o ‘Drop and go’ car hire (‘car

sharing’) See other actions in this section for

more details

NBI Municipalities

2014



Objective: Promote modal shifts in transport use

Transport system less dependent on fossil fuels

Explore and encourage the uptake of efficient and alternatively-powered vehicles such as hybrid, electric and gas powered vehicles, considering infrastructure needs to enable these alternative fuels to be used

Alter the provincial procurement policy to emphasise energy efficiency as a criterion for vehicle procurement

Persuade municipalities to make similar changes to their procurement policies.

Targets: o 30% of government vehicles to

be converted to alternative fuels by 2015, 50% by 2030, 100% by 2050

Car industry, Public Transport Roads and Works

2015

High occupancy vehicle lanes

Introduce high occupancy vehicle lanes and toll systems (Check legality of this and change regulations if necessary)

Law enforcement to ensure effectiveness

Public Transport Roads and Works, taxi industry

2015

Objective: Develop financial incentives

Develop a financial case

Develop a business plan for transport improvements and link to overall strategy business plan

See section 4.2 on financial business plan

DLG & H

Vehicle rating system: fuel efficiency and emissions

Advocate for a rating and labelling system for vehicles and engage with Treasury regarding tax rebate as incentive

National Government DoE

2010

Increase in rail freight

Advocate for an increased tax of road freight, and tax incentives for using rail freight

Agree reliability standards with provincial stakeholders, especially industry, and then engage Transnet to implement them.

Transnet DoT

2020



Objective: Develop financial incentives

Carbon tax Explore feasibility of levying a provincial tax on fuel (fuel pricing)

Ensure that the baseline on which taxes are developed are Gauteng specific

Calculate the carbon footprint of provincial government travel (internalising the environmental costs) and offset it by investing in community development projects

Public Transport Roads and Works Treasury – Provincial and National

2014

Objective: Promote transport technologies

Strategy on promoting alternative transport technologies

Clarify the feasibility of biofuels production in the province

Liaise with CSIR and SANEDI about feasible alternative fuels

Research the availability or feasibility of local alternative transport technologies and engage them in their promotion

Research the economic costs and benefits of replacement of inefficient government fleet

Follow-up the work done by DoE and Telkom in establishing the appropriateness of LPG usage in vehicles and enhance if appropriate

Liaise with DoT and DoE to establish a special commission to better investigate and promote an accelerated transition to alternative fuels

Public Transport Roads and Works DWEA DTI DOT DoE Treasury SANEDI CSIR

Objective: Build awareness

Education programmes

Develop education programmes and raise awareness

Public transport awareness month Highlight benefits Target university students with

education programmes See section 4.9 on empowering

consumers to reach the vision

Education, Public Transport Roads and Works

2012



4.8 Affordability and Wellbeing

Intention Statement Citizens of Gauteng meet their energy services needs Objectives Develop energy eff ic ient houses Provide greater access to a range of safer energy options and reduce health and safety dangers associated with current fuel use patterns Raise awareness on options avai lable

Access to energy is fundamental to human wellbeing and poverty alleviation has been high on the government’s agenda for some years. The recent 15-year review21 claims that much has been achieved in terms of poverty alleviation but it is clear that the country needs to do much more. Poverty and access to energy are significant issues within Gauteng largely because of the province’s position as an economic hub and the fact that although covering a small portion of land compared to other provinces it has a population of 10,5 million22, second only to KwaZulu-Natal, and is the most densely populated area in South Africa. The province is plagued by a number of socio-economic challenges such as high rates of HIV/Aids, crime, housing shortages, and an unemployment level of 22,6%23. Linked with the expansion of cities is the growth of the informal sector. This is not a temporary phenomenon but a trend that is in itself growing24. Evidence suggests that the informal sector is growing at a faster rate than the formal sector. The recommendations of a SANERI study25 was that policies and strategies aimed at alleviating energy poverty should realign to include a broader basket of energy subsidies and services. The 2009 CURES Discussion Document26 advocates an integrated approach with a number of recommendations such as restructuring the electricity tariff system and increasing free basic electricity and energy grants. Thus this strategy acknowledges that it is unlikely to make a systemic change in terms of the numbers of people living in poverty within Gauteng but will aim at providing greater access to a range of energy options particularly in the informal sector as well as improving awareness about those options and their costs. This will be done partly by ensuring access to free basic alternative energy in informal households starting with 20% by 2014 and reaching 80% by 2025. In order to achieve these objectives the activities being advocated include ensuring that all future RDP housing to include EE design components such as ceilings, insulation, solar water heaters and are orientated, where possible, towards the north in order to maximise heat from the sun. Evidence shows that the provision of ceilings and insulation generally results in much greater energy efficiency (as much as 48% improvement)27, reduces costs and improves living conditions considerably. Given

21 Towards a Fifteen-year Review: Synthesis Report, October 2008 22 Gauteng Economic Review, 2008 23 http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-25_2228457 24 Improving Energy Welfare in Unelectrified Urban Informal Households, SANERI and SEA, March 2008 25 Ibid. 26 Exploring Energy Poverty in South Africa: A CURES (citizens united for renewable energy and sustainability)

Discussion document, March 2009 27 Urban Green File, December 2005, Energy Efficient Housing Design for Low-Income Housing, Prof Dieter Holm



Gauteng’s intention of working towards poverty alleviation, investment in such a programme would go some way in terms of achieving this goal by improving the quality of life as well as improving energy efficiency and creating jobs. The Working for Energy programme has recently been funded by the 2009 national Budget which specifically makes provision for the insulation of ceilings in poor housing both in terms of new housing and retrofitting existing housing. This could be a source of funding. A further activity would be to facilitate the implementation of Free Basic Alternative Energy (FBAE) specifically set up for those households not connected to the grid. Many poor households not electrified use alternative forms of energy for cooking and heating. As noted above the number of informal households is increasing and the implementation of FBAE has been very slow. Gauteng province could take a lead here by developing mechanisms for its implementation at the municipal level. In addition the amount of 50kWh of free basic electricity is based on households and not numbers of people living in one household. There is scope for the Province to review the amount of 50kWh and assess what best suits the province. Studies have shown that the use of the BNM (basa njengo magogo) reduces smoke emissions by 50% and uses 20% less fuel. This as well as other options such as hotboxes could be promoted across the province. Interventions here will be pursued with the consultation of the national Department of Human Settlements and its national housing subsidy scheme.



Affordability and Wellbeing

Intention: Citizens of Gauteng meet their energy services needs.

Objective: Develop energy efficient houses


Initiation date

All new RDP housing to include energy- efficient design components

Lobby and support national government to include efficiency in low-income housing specifications

Align requirements for low-income housing with energy efficiency standards being developed by the national Department of Housing and SANS 204 Part III

Liaise and engage with developers around affecting above changes in housing delivery requirements

Determine the potential for planning approval requirements at local government level to promote energy efficiency and green design principles, and work with local government to affect changes

See section 4.3 on regulation and 4.5 using energy more efficiently

Department of Public Works National and provincial Department of Housing Municipal property management and housing directorates Building standards association Working for Energy Programme

2020

Retrofit 100% of current RDP houses to become energy efficient

Investigate feasible options for retrofitting these homes, including insulated ceilings, efficient lighting and cooking alternatives.

Develop funding model, including identification of funding sources (e.g. programmatic CDM), and facilitate funding procurement

Work closely with municipalities in establishing a mass retrofit programme

Department of Local Government and Housing to develop a retrofit programme for provincial housing

Targets: o 20% by 2014, 75% by 2020,

100% by 2025

Depart. of Public Works, national and provincial Municipal property management and housing directorate Working for Energy programme

2025 100% improvement



Objective: Develop energy efficient houses

All RDP houses to have a SWH

Explore the funding model to achieve this output, and develop sustainable business plan for mass rollout (not based on full government subsidy). Business model to consider:

Large-scale programmatic CDM methodology for low-income solar water heater funding source to be established

Explore potential collaboration with the National Sustainable Housing Facility (NSHF) for CDM potential relating to low-cost housing based at DoHS and DBSA

Providing low-interest financing (development bank) for projects

Job creation and training for installers See section 4.6 on sustainable energy

supply

Government financing, CDM, private financing Working for Energy programme Local municipalities to implement

2020




Objective: Provide greater access to a range of safer energy options and reduce health and safety dangers associated with current fuel use patterns

Safe and reliable electrification of 100% of houses in all proclaimed settlements

Support national electrification process, and actively engage with Eskom and local government around achieving this output

Discuss with Eskom and local government measures to help with illegal connection eradication

Eskom Municipal electricity departments

2015

Implementation of free basic alternative energy (FBAE) & free basic electricity (FBE)

Develop a delivery mechanism and plan for the implementation of FBAE in the province – including product sourcing, delivery and mass roll-out logistics

Support municipalities with implementation of delivery mechanisms

Liaise with municipalities to ensure more effective delivery of FBE

National Government, DLG & H Municipalities

2015

Switch to safer, cleaner and more efficient cooking and heating options and fuels

In collaboration with relevant players (e.g. municipalities and research initiatives) introduce a province-wide Safer Energy Plan to promote safer fuels in informal, semi-formal and low-income households. The below should be included: o Support the safe use of LPG or

other forms of cleaner energy so as to replace hazardous paraffin and coal use

o Promote efficient domestic energy use programmes such as basa njengo magogo and hotbox roll out

o Assess and promote appropriate, accessible and cost effective low smoke fuel options

o Monitor the health conditions and safety improvements resulting from the switch to cleaner domestic fuels, and findings to be presented at the annual energy summit

DLG & H Private financing Municipal funding Build capacity in local CBOs and SMMEs to help undertake the initiatives Insurance Industry (medical aid)

2015

Objective: Raise awareness on options available

Increased awareness



4.9 Empowering Citizens to Reach the Vision

Intention statement Empowering ci t izens to reach the vision through knowledge Objectives To develop ci t izens that become agents of change in al l aspects of energy eff ic iency Support ing government departments to lead by example

A key element of the strategy is supporting consumers to move towards the vision, which will be done through building awareness and education. It is clear that the nature of change being advocated through the strategy will not happen overnight, it is a process of transition and critical to this transition is the building of awareness. As stated earlier, this strategy is premised on the concept that people create change and thus what is needed is a change in behaviour, a paradigm shift, in order to drive the more systemic changes being called for. As such, province must develop and implement an ongoing public awareness programme. The awareness programme must be designed to target ordinary citizens, government employees and officials as well as target schools and educational institutions. Each element of the strategy calls for different behaviour patterns from all citizens. Therefore for example:

The transport strategy demands that people shift to using public transport rather than a private vehicle, or a car pool – whichever choice they make, it will impact on their lives as well as on the environment.

Investing in CFLs will reduce the amount of electricity used. Using a BNM will reduce the amount of smoke by 50% and will use 20% less

fuel and will have a direct impact on health and resources. Investing in a SWH will reduce electricity costs and electricity demand.

Knowledge of the effects of one’s actions on the environment, on energy consumption, on personal and corporate budgets and on one’s health, will empower people to make choices that will ultimately uphold the vision and objectives of the strategy. The strategy requires clear leadership, institutional support and the commitment, engagement and will of those it impacts on. For this to happen people need to be informed and aware of all aspects of the strategy and of what sustainable energy means as well as its link to climate change. In order to achieve this, Gauteng province will promote sustainable energy behaviours through dissemination of information all of which will be underpinned by the values of equity, a healthy environment and prosperity for all.



Empowering Citizens to Reach the Vision

Intention: That citizens are supported to reach the vision through knowledge

Objective: To develop citizens that become agents of change in all aspects of energy efficiency


Initiation date

Ongoing mass awareness campaign

Dynamic media and communication strategy to support campaigning, including endorsements by well known personalities, and businesses

Provincial support for annual International Earth Hour

Hold a Provincial Energy Week Identify potential energy champions within

communities who can be trained to take forward relevant messages and campaign amongst communities (including informal settlements). Champions are to be supported by Province or other suitable organisations in a systematic way

Recognise homes and institutions who have made visible energy efficiency and renewable energy changes and publicise their achievements

All key stakeholders including: CBOs, Ward committees, CDW, ratepayers and civic associations

2010

Media/ Information officer

Media/information officer to be appointed within the Energy Office, and to undertake the following, amongst other tasks: o Coordinate and run the overall media

and awareness programme o Publish relevant articles for local and

provincial papers regularly o Develop a radio programme with

information and discussion on energy issues

o Develop a website

DLG & H Media partners Communications department

2010

Education and schools programme

Work with the education department for energy to be included in the curriculum

Educate teachers and pupils around sustainable energy through talks and programmes

Link with universities in developing curricula on relevant energy matters

Education department Teachers Training institutes Universities

2012




Objective: Supporting government departments to lead by example

Informed government departments

Design and implement mass awareness programme for all government employees

A select group of ward councillors to be trained to be energy champions

Focus programmes for selected government employees (at least one in each department) to become energy efficiency champions in their work place and their communities

Develop training course for provincial and municipal workers

Energy Office 2010


4.10 Institutional Support

Intention Statement To create a centre or Energy Off ice from where al l energy matters and actions wi l l be managed within Gauteng Province. Objectives Drive the strategy through f i rmly inst i tut ional is ing energy within provincial government and bui lding effective partnerships with al l spheres of government and other key stakeholders

The primary purpose of an Energy Centre or Office would be to offer institutional support to the strategy by providing formal structures and co-ordination of its implementation. It would be pivotal in providing leadership through effective partnerships with all spheres of government, various departments, civil society, key industry players and other significant stakeholders. Ultimately the office would drive the implementation of the GIES through various links. The Office will also be responsible for the initial roll-out of the actions in the 10 identified enablers, including sourcing funds, building awareness and promoting sustainable energy in the province. The Energy Office must play a significant hands-on role in enabling alignment to take place at provincial level as all related strategies or frameworks would be guided and directed by the office. At municipal level it would be important also to achieve a degree of alignment and this might not necessarily entail each and every municipality developing an energy strategy but rather developing targets and plans that are in accordance with overall provincial targets and strategy. It may take a consultative role or it may be more active in supporting municipalities to achieve their goals. In this respect it is suggested using and adapting the work already in place. The Energy Office would also co-ordinate a meeting of energy practitioners /or champions from municipal level and establishes a committee that oversees the work generally in terms of both policy and implementation – in other words, providing monitoring, evaluation and learning which are key to ongoing change. The office would also be responsible for co-ordinating the collation of energy data for the province. It is recommended that at the initial stage of the GIES, the provincial Energy Office could have five units or work streams. They could include an energy efficiency and a sustainable energy technical unit; a financing, funding and legislation unit; an education, training and awareness-building unit; monitoring and evaluation unit and data collection unit. The units will work across all sectors, namely industry and commerce, government, transport, household and energy poverty, as well as energy supply and distribution. They will all engage in developing capacity at municipal and provincial levels within their areas of expertise. Each section head will have a clear job description with key performance deliverables in the short and long term. This is important in ensuring delivery and building accountability. As the energy office assesses the energy environment, the strategy must be revised accordingly. Any changes must be reported to senior government officials and be discussed with the Energy Forum which will oversee and act as an advisory board for the office.. This would assist in its function of seeing implementation and change as being its primary focus rather than being constrained by rules and procedure. An addition to be considered is the placement of an energy officer in each relevant provincial department to link to the Energy Office. In the long term the energy office will be equipped to deal with all aspects of energy and climate change in the province.



Institutional Support

Intention: To create a centre or Energy Office from where all energy matters and actions will be managed within Gauteng Province.

Objective: Drive the strategy through firmly institutionalising energy within provincial government and building effective partnerships with all spheres of government and other key stakeholders


Initiation date

Energy Office

Establish energy office for initial implementation of the strategy

The office will have five work streams: o Supporting implementation of EE and

RE o Sourcing and informing on adequate

funding and financing and legislative support

o Building awareness and education o Monitoring the effectiveness of the

strategy and ensuring compliance and enforcement

o Data collection to enable planning, monitoring and enforcement

Energy Office to liaise with other provincial departments to ensure coordinated provincial leadership on energy decisions

Ensure alignment with provincial strategies and frameworks in particular the forthcoming Climate Change Strategy

Energy Office to ensure adoption of GIES by all relevant stakeholders in government and private sector

Energy Office to host an annual Energy Summit

Energy Office to maintain a strong link and lobbying of National Government, including DoE, DoHS, SANEDI and DST, to facilitate the implementation of the strategy

Energy Office to ensure demonstration projects are identified and implemented as soon as possible

Energy Office to produce an annual State of Energy Report (see section 4.1)

See section 4.1 on leadership

DLG & H Director

2010




Objective: Drive the strategy through firmly institutionalising energy within provincial government and building effective partnerships with all spheres of government and other key stakeholders

Provincial Energy Forum

The Energy Office, under the advisement of senior government officials, will coordinate the establishment of the Energy Forum

See section 4.1 on leadership for more detail

Energy Office in DLG & H All government departments, business and civil society partners


5. Way Forward The GIES has been developed over a number of months in consultation with relevant people from government, industry, commerce and other key sectors. The process has been as inclusive as possible with various workshops being held, thus making it a document that can be ‘owned’ by all stakeholders in the Province. It is imperative as we move into the implementation phase that each department, municipality, company and organization assess ways in which they can put the strategy into operation by turning the vision into action, by bringing change and challenge to the province. If Gauteng province is to move towards being a low carbon economy, if the province is to bring significant energy efficiency into its planning, and operations, if the province is to develop a more sustainable energy supply mix and at the same time improve the welfare of particularly its poorest citizens, then it is calling for fundamental shifts in thinking, in decision making and ultimately in the actions and behaviour of every individual and organisation. The magnitude of the challenge faced by the province is illustrated in figure 3 below, where it is apparent that even by successfully implementing bold targets in energy efficiency and introducing substantial renewable energy into the energy supply mix, carbon reduction in the province will only remain in-line with national LTMS requirements for approximately the next two decades. Further focus on this issue is clearly necessary, and is likely to involve fundamental changes in the very nature of the provincial economy, where energy intensive operations may have no place in the future if they cannot reform their businesses to be low carbon.

Business as usual growth (no fundamental change in approach to the future)

Carbon profile with current national efficiency and renewable energy targets implemented in the province

Carbon profile with more stringent energy efficiency targets implemented

Carbon profile with stringent energy efficiency and strong renewable energy targets implemented

Carbon profile required by the LTMS

Business as usual growth (no fundamental change in approach to the future)

Carbon profile with current national efficiency and renewable energy targets implemented in the province

Carbon profile with more stringent energy efficiency targets implemented

Carbon profile with stringent energy efficiency and strong renewable energy targets implemented

Carbon profile required by the LTMS

Figure: 3 Gauteng province carbon profile, showing the necessity of stringent targets to meet the requirements of the LTMS




5.1 Priority actions for 2010 to implement the Gauteng Integrated Energy Strategy

The Department of Local Government and Housing hosted stakeholder workshops in August 2009 to develop a more detailed implementation action plan - which is reflected in this document. The final government workshop further decided that an interim Energy Support Group should be set up immediately to help in establishing the formal institutions of the Energy Forum and Energy Office and to ensure that the strategy starts immediately on an implementation programme for 2010. In response to the need to move forward on the strategy immediately, a set of priority actions were agreed upon at the final stakeholder workshop. Consequently DLG & H is tasked with ensuring that the following is achieved before the end of 2010:

Establish the Energy Office and decide on where it is situated. Develop a business plan for the Energy Office including clarifying an enabling

legal framework. Develop an initial high level budget for the Energy Office. Develop a business plan for implementing the strategy, including the

necessary financial framework. Identify priority projects and begin to work on them (this activity should start

now and run in parallel to setting up the office). Provide a synthesis of energy and climate change plans at municipal level to

facilitate coordination with such plans. Establish and set up an Energy Forum (or advisory board), including definition

of their role and mandate. Organise a high level launch of the strategy.

The challenges in implementing such a comprehensive strategy are significant, particularly in a provincial government that does not have a history of engaging directly with the energy sector. The social, economic and environmental pressures faced by the province, its cities and the country as a whole are such that bold actions as specified in this document are called for. The strategy gives all the necessary direction for successfully responding to these challenges, and not only moving the province to a position where it has a sustainable and bright future, but setting a precedent for a country which is still grappling with these issues so important for our prosperity into the coming decades.


6. Appendices

6.1 Gauteng Integrated Energy Targets against 2007 Actual Figures

Action Scenario 2014 2025 2055

Provincial Energy Demand 2007 = 655.4 PJ

BAU 816.1 PJ (+25%)

995.5 PJ (+52%)

Strategy 746.7 PJ (+14%)

812.3 PJ (+24%)

Provincial Electricity Demand 2007 = 169.2 PJ

BAU 221.4 PJ (+31%)

282.3 PJ (+67%)


236.8 PJ (+40%)

Transport Energy Demand 2007 = 232.4 PJ

BAU 291.7 PJ (+26%)

371.7 PJ (+60%)


315.7 PJ (+36%)

Residential Energy Demand 2007 = 106.3 PJ

BAU 118.3 PJ (+11%)

142.9 PJ (+34%)

Strategy 104.8 PJ (-1%)

93.8 PJ (-12%)

Residential Electricity Demand 2007 = 69.5 PJ

BAU 91.4 PJ (+32%)

121.4 PJ (+75%)


76.0 PJ (+9%)

Industrial Energy Demand 2007 = 286.4 PJ

BAU 363.9 PJ (+27%)

424.0 PJ (+48%)


360.4 PJ (+26%)

Industrial Electricity Demand 2007 = 59.1 PJ

BAU 75.1 PJ (+14%)

87.5 PJ (+16%)


74.4 PJ (+48%)



Action Scenario 2014 2025 2055

Commercial Demand 2007 = 26.2 PJ

BAU 36.3 PJ (+39%)

49.1 PJ (+87%)


36.7 PJ (+40%)

Government Demand 2007 = 4.2 PJ

BAU 5.8 PJ (+39%)

7.9 PJ (+87%)


5.9 PJ (+40%)

Renewable Energy Consumption 2007 = 1.0 PJ

BAU 1.1 PJ (+10%)

1.1 PJ (+10%)

1.1 PJ (+10%)


41.3 PJ (+3655%)

189.9 PJ (+17164%)

LTMS 16.2 PJ (+1373%)

41.6 PJ (+3682%)

352.6 PJ (+31955%)

CO2 Emissions (Million Tons CO2 eq.) 2007 = 153.6

BAU 196.5 (+28%)

244.5 (+59%)

401 (+161%)

Strategy 171.2 (+11%)

177.5 (+16%)

214.7 (+40%)

LTMS 171.2 (+11%)

177.1 (+15%)

110.8 (-28%)

* Percentage Shown is increase (+) or decrease (-) from 2007 levels



6.2 Current Metro Targets

Action City Target Year Source

Industry & Commerce Efficiency

Industry & Commerce Efficiency COJMM

15% 2015 State of Energy Report, City of Johannesburg, May 2008

Industry & Mining Final Energy Demand Reduction

EMM 15% 2015 Energy and Climate Change Strategy, Ekurhuleni Metropolitan Municipality, August 2006

Commercial and Public Building Sector Final Energy Demand Reduction


Commercial efficient lighting: all incandescent bulbs replaced with CFLs, and develop adequate CFL disposal plan


All new buildings to comply with SAEDES28 (national building energy efficiency standards)


Improvement in HVAC efficiency CTMM

10% 2010 Energy Strategy, Tshwane Metropolitan Municipality, May 2006

Residential Efficiency

Households energy efficiency COJMM


Reduction in domestic electricity consumption – the following targets support this


28 SAEDES was at the time the only relevant standard, but now the DME has produced other building energy

efficiency standards for the commercial sector




CFL use in of households EMM 100% 2025 Energy and Climate Change Strategy, Ekurhuleni Metropolitan Municipality, August 2006

Develop by-law requiring solar water heaters (SWH) and insulation in all new middle- to high-income housing


Households to have SWHs EMM 50% 2020 Energy and Climate Change Strategy, Ekurhuleni Metropolitan Municipality, August 2006

Ensure that all low-income formal housing has insulated ceilings – new housing by 2010, retrofit existing by 2015

EMM 50% 2010 2015

Energy and Climate Change Strategy, Ekurhuleni Metropolitan Municipality, August 2006

Develop policy that promotes green building of houses by 2008, with a by-law in the future

EMM 2008

Disseminate information on efficient appliances, SWHs, efficient building etc to all city residents through electronic media, city residents newsletter and billing system annually, starting in 2007 (immediately)

EMM 2007

Council Operations

Public buildings energy efficiency COJMM


LED signals for all traffic lights by 2015, 20% by 2010


Reduce energy consumption in all municipal operations





Reduction in energy demand in government buildings

CTMM


Renewable Energy

Electricity demand being met by local renewable sources

CTMM


Eligible landfills producing electricity cost-effectively from methane

CTMM


Gas reticulation of middle-income areas

CTMM


Homes have cleaner/RE energy supported through subsidies available from the DME Renewable Subsidy Office (in accordance with their targets)

CTMM


Diversify energy supply to include renewable and cleaner energy sources


Agricultural Efficiency

Increased energy efficiency in agriculture: reduction in electricity consumption by (DME target)


Carbon Emission Reduction

Quantity of CO2 emission reduction


Reduction in CO2 emissions in the residential sector, in real terms, by (resulting from RE and EE/DSM implementation in households)





Industry & Commerce carbon emission reduction (1,057,180 tonnes p/a)

COJMM


Domestic households emission reduction (597,396 tonnes p/a)

COJMM


Public buildings emission reductions (41,490 tonnes p/a)

COJMM


Transport emission reductions (547,891 tonnes p/a)

COJMM


Transport

Transport energy efficiency COJMM


Reduce the travel times and the travel distances of commuters, based upon the 2004 baseline information

EMM 10-15% 2025 Energy and Climate Change Strategy, Ekurhuleni Metropolitan Municipality, August 2006

Reduce, within the financial means of the city, the kilometres of the road network experiencing saturation levels higher than 90%, with 10% by 2025 (EGDS), based upon the 2004 baseline information


Transport modal split shift: 10% of private vehicles shift to rail/public transport by 2020, based on the 2004 baseline information


Include dedicated bicycle lanes on at least 20% of the roads identified for possible bicycle lanes by 2020 Enforced bus-lanes and/or HOV or appropriate public transport lanes on suitable roads by 2020


Adopt the national DME energy efficiency target: Energy demand in transport sector reduced by 9% by 2014






Municipal diesel fleet to operate on biofuels

CTMM


Vehicle flow improved Reduce the number of links in the road network with a volume/capacity ratio of greater than 90%

CTMM


Key: COJMM: City of Johannesburg EMM: Ekurhuleni Metropolitan Municipality CTMM: City of Tshwane Metropolitan Municipality


7. Glossary of Terms Amatola Green Power (AGP): is an electricity trading company operating independently from ESKOM or Municipalities. The electricity which AGP supply is generated from natural renewable energy (RE) sources in terms of the Department of Minerals and Energy (DME) guidelines. Biodiesel: a cleaner-burning diesel fuel made from natural, renewable sources such as vegetable oils. Biomass Energy: a renewable energy resource derived from the carbonaceous waste. Carbon footprint: a measure of the impact that human activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide. CFL: a relatively efficient light-bulb, using about 25% of the power of an incandescent light-bulb, for the same light output. Co-generation: The simultaneous production by means of a single source of useful energy. Constitution: the Constitution of the Republic of South Africa. Climate change: A statistically significant difference noted either in the mean state of the climate or in its variability persisting for an extended period of time. Demand-side management: the planning, implementation, and monitoring of utility activities so as to encourage customers to modify their pattern of energy usage. Energy: is a potential ability of a system to influence changes in other systems by imparting either work (forced directional displacement) or heat (chaotic displacement/motion of system microstructure). Basic unit of measurement is the Joule (J). Energy balance model: an analytical technique that attempts to account for all energy coming in and going out of a system. Energy audit: an inspection, survey and analysis of energy flows in a building, process or system with the objective of understanding the energy dynamics of the system under study. Typically an energy audit is conducted to seek opportunities to reduce the amount of energy input into the system without negatively affecting the output(s). Energy efficiency: a reduction in the quantity of energy used per unit service provided, e.g., a reduction in the quantity of motor fuel used per kilometre driven. Energy conservation: a collective term for activities that reduce end-use demand for energy by reducing the service demanded, e.g., a reduction in the demand for fuel by reducing the number of kilometres driven, or reduction in the demand for natural gas for space heating by lowering the thermostat. EnerKey: stands for the focus of the project on “Energy as a key element of sustainable transformation”. The EnerKey project, a South African–German collaboration, aims to research and promote sustainable transformation of the urban region of Gauteng, including the three municipalities of Johannesburg, Ekurhuleni and Tshwane. Feed-in-Tariff: is an incentive structure to encourage the adoption of renewable energy through government legislation. The regional or national electricity utilities are obligated to buy renewable electricity (electricity generated from renewable sources such as solar photovoltaic, wind power, biomass, and geothermal power) at above market rates set by the government.




Fossil fuels: they range from volatile materials with low carbon: hydrogen ratios like methane, to liquid petroleum to non-volatile materials composed of almost pure carbon, like anthracite coal. Gautrain: is an 80-kilometre mass rapid transit railway system under construction in Gauteng province, South Africa that will ultimately link Johannesburg, Pretoria, and OR Tambo International Airport. It is hoped that this railway will relieve the traffic congestion in the Johannesburg – Pretoria traffic corridor as well as offer commuters a viable alternative to road transport, as Johannesburg has a limited public transport infrastructure. Gigajoules: is a 1,000,000,000 joules. It is a unit of energy. Green Energy Certificate: a system in which generators of electricity from renewable resources receive a certificate for a predetermined unit of energy produced; such certificates have a market value and can be bought and sold, and thus provide a financial incentive for the use of renewable energy. Kyoto Protocol: an international agreement signed in 1997 at a convention in Kyoto, Japan. It sets binding emissions reductions of greenhouse gases with an average 5.2% reduction below 1990 levels for industrial countries. Load shedding: an electricity policy of turning off or disconnecting certain loads to limit peak demand. Millennium Development Goals: are eight international development goals that 189 United Nations member states and at least 23 international organisations have agreed to achieve by the year 2015. They include reducing extreme poverty, reducing child mortality rates, fighting disease epidemics such as AIDS, and developing a global partnership for development. Natural gas: is a gaseous fossil fuel consisting primarily of methane but including significant quantities of ethane, propane, butane, and pentane—heavier hydrocarbons removed prior to use as a consumer fuel —as well as carbon dioxide, nitrogen, helium and hydrogen sulphide. Net metering: the use of a single metre to measure how much power is consumed and produced by a house with its own power source (such as solar or wind system). Petajoules: is a 1,000,000,000 gigajoules. It is a unit of energy. Renewable energy: any energy resource that is naturally regenerated over a short time scale and either derived directly from solar energy (solar thermal, photochemical, and photoelectric) indirectly from the sun (wind, hydropower, and photosynthetic energy stored in biomass) or from other natural energy flows (geothermal, tidal, wave, and current energy). Ripple control: is a means whereby the local power authorities are able to temporarily turn off large electrical loads in people’s homes to limit the impact of peak demand for electricity. Smart metering: generally refers to a type of advanced meter (usually an electrical meter) that identifies consumption in more detail than a conventional meter, and optionally communicates that information via some network back to the local utility for monitoring and billing purposes. Sustainability: the fact of being sustainable, preservation of the overall viability and normal functioning of natural systems.


STATUS QUO REPORTJUNE 2009

Compiled by Sustainable Energy Africa

www.sustainable.org.za

GAUTENG INTEGRATED ENERGY STRATEGY: STATUS QUO REPORT

Table of Contents Executive Summary .............................................................................................................. 81

1. INTRODUCTION ........................................................................................................... 84

2. THE ENERGY STORY .................................................................................................. 86

2.1 International Trends ................................................................................................ 86

2.2 National Trends ...................................................................................................... 90

2.3 Energy Poverty ....................................................................................................... 93

2.4 Energy Supply ........................................................................................................ 94

2.5 Private Sector and Civil Society Activities and Projects ......................................... 98

2.6 Conclusion ............................................................................................................ 101

3. ROLES AND RESPONSIBILITIES OF PROVINCES .................................................. 103

3.1. Provinces energy mandate ................................................................................... 103

3.2. Co-operative Governance within the South African context ................................. 105

3.3 Overarching roles of leadership, facilitation and communication ......................... 105

3.4 Suitable roles of Provincial Government .............................................................. 106

4 PROVINCIAL TRENDS, PLANS AND STRATEGIES ................................................. 108

4.1 Overview of Gauteng Province ............................................................................. 108

4.2 Summary of Provincial Policies ............................................................................ 109

4.3 Conclusion ............................................................................................................ 116

5 MUNICIPALITIES TRENDS, PLANS AND STRATEGIES .......................................... 119

5.1 The Municipal Picture ........................................................................................... 120

5.2 Conclusion ............................................................................................................ 128

6 BASIC DRAFT ENERGY PROFILE OF GAUTENG PROVINCE ................................ 130

6.1 Data acquisition ......................................................................................................... 131

6.2 Energy Balance ......................................................................................................... 132

6.3 Energy Demand by Sector ........................................................................................ 132

6.4 Summary ................................................................................................................... 135

7. DRAFT VISION AND BROAD STRATEGIC OUTLINE ............................................... 136

7.1 Draft Vision ........................................................................................................... 136

7.2 Key Strategic Options ........................................................................................... 137

7.3 Potential Roles of Provincial Government ............................................................ 139

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7.4 Concluding Remarks ............................................................................................ 142

8. APPENDICES .............................................................................................................. 143

8.1 Abbreviations, acronyms and glossary of terms ................................................... 143

8.2 Glossary of Terms: ............................................................................................... 145

8.3 Key Role Players .................................................................................................. 148

Table of Figures Figure 1: Energy Demand by Sector ..................................................................................... 82

Figure 2: Primary National Energy Supply, 2004, (Source: DME, 2005) .............................. 97

Figure 3: Total National Final Energy Consumption by Carrier 2004, (Source: The Digest of SA Energy Statistics 2005, DME) ......................................................................................... 97

Figure 4 Final National Sectoral Consumption of Energy 2004, – (Source: The Digest of SA Energy Statistics 2005, DME) ............................................................................................... 98

Figure 5: The role of provincial government in relation to other spheres of government .... 104

Figure 6: Energy demand by sector .................................................................................... 130

Figure 7: Energy demand by energy carrier ....................................................................... 131

List of Tables Table 1:Energy balance for GautengProvince (PJ) ............................................................ 132

Table 2: Residential energy consumption by income group and end-use [PJ] ................... 133

Table 3: Residential energy consumption by income group and energy carrier [PJ] .......... 133

Table 4: Industrial energy consumption by energy carrier [PJ] ........................................... 133

Table 5: Total energy use in the Commercial sector by end-use[PJ] ................................. 134

Table 6: Passenger transport energy use by sub-sector and energy carrier [PJ] ............... 134

Table 7: Freight transport energy use by sub-sector and energy carrier [PJ] ..................... 134


Executive Summary Gauteng Provincial Government has decided to develop an Integrated Energy Strategy and Implementation Plan. This arises largely from the electricity crises and the need to develop clear Provincial responses. In addition there is recognition of the long term crisis facing not only South Africa but the world in terms of climate change and its effects on the environment.

The Gauteng Integrated Energy Strategy will be conducted in two phases. The first will result in an integrated energy strategy for the Province. The second phase will focus on implementation and consider the capacity needs required for implementation to take place. The purpose of this report is to provide a status quo picture of energy in Gauteng Province culminating in pointers towards a strategy. The strategy that is developed needs to be based on what is happening within Gauteng currently as well as an understanding of the implications of energy for the region. It is important that this document is seen as an introduction to stakeholder consultations in developing the strategy as strategies are best developed by those involved in their implementation rather than imposed by outside ‘experts’.

The document begins with an overview of what we understand by energy, the extent to which it is critical for our survival and how energy cuts across all sectors and areas of our life. We require energy to provide us with food, we need energy for electricity, we require energy for transport, for our water supplies, for the production of goods and much more. Access to energy is not a ‘given’ and for a large portion of the world’s population and more specifically in South Africa, access is limited. This might be for financial reasons or simply having no access to the grid. Thus poverty issues have a direct relation to energy access. This is of importance for South Africa and therefore for Gauteng Province, given the legacy of apartheid and continued levels of poverty and inequality within our country.

The report moves on to consider energy and the environment and looks at some of the international trends. It is clear that there is increasing acceptance that globally we sit with an enormous problem, that climate change is upon us and if we do not act and change the current trajectory of green house gas emissions, the results will be catastrophic. Recent documents point to the fact that even though the cost of implementing renewable energy options and changing the nature of production to reduce emissions is extremely high, the long term costs of not acting will be substantially higher. In other words to not act will cost the world economy far more than to invest in clean and renewable options. The Stern Review is clear that action can indeed alter the trajectory we are on in terms of global warming and the effects on our world, and that mitigation should be seen as an investment, both economically and developmentally. “Climate change presents a unique challenge for economics: it is the greatest widest-ranging market failure ever seen”.1 The review states that global emissions should be reduced by 50% by 2050.

From the international perspective the report moves on to look at the South African national picture. Our energy is highly fossil fuel intensive and because we have abundant access to cheap coal our electricity has been historically one of the cheapest to produce in the world. However because it is generated from coal and because our industries have developed in an energy intensive way, South Africa is a much higher emitter of greenhouse gas per capita than most developing countries and equal to much of the developed global north. In the late 1980s and early 1990s our supply of electricity exceeded demand. As a result some power stations were mothballed. However, since 1994 there has been a sharp growth in demand of electricity coming from a growth in the economy. This, coupled with a successful electrification programme has resulted in a supply shortage.

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1 The Stern Review: The Economics of Climate Change (November 2006)


The electricity crisis has paved the way for action not only in terms of looking for alternatives in electricity generation but also more broadly in terms of energy supply and demand and the effects of using fossil fuels on our planet. National government has developed many strategies, policies and frameworks dealing with issues of climate change, energy, renewable energy and energy efficiency amongst others and some of the key documents are outlined in Section 2.

Section 3 sets out to define the roles of province and it is shown that province can play a significant role in taking the complex issues of energy forward despite not having a clear energy mandate according to the South African constitution. Its critical position is to facilitate the implementation of national policy at the local level which potentially gives province an implementing mandate. Section 4 and Section 5 examine broadly what is happening within the province at both provincial and municipal levels. It is clear that despite the wealth of projects underway and many strategies and policies being developed there is a lack of coordination and leadership particularly in terms of taking the issues forward and developing a comprehensive response that results in more substantial changes being made.

The report provides an initial energy demand profile of the Gauteng region by district based on limited data sources. It presents an energy balance as well as by sector energy consumption by carrier and sub-sectors. Overall we see that the largest energy consumption comes from the industrial sector accounting for 44% of the total energy use, with transport and residential sectors using 35% and 16% of total demand respectively

Figure 1: Energy Demand by Sector

The final chapter considers some options for the strategy. The strategy needs ultimately to be framed by national and provincial policies already in place and should give guidance and direction to the implementation of these policies at municipal level. It should aim at creating a common approach to dealing with energy challenges and broadly provide the foundation for both the short and long term trajectory of Province.

The strategy will focus specifically on the following areas:

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• Energy efficiency measures – covering all sectors

• Developing renewable energy resources – clarifying feasibility of different resources, promoting mass roll out of SWHs, and viable and affordable renewable energies relevant to Gauteng

• Addressing energy poverty

• Transport – building on what has been initiated, growth of integrated public transport within cities

• Education, awareness and communication at all levels

• Institutional arrangements to ensure effective implementation of the strategy

• Monitoring and evaluation and data management

Finally the strategy should provide a thread and leadership for all work taking place within the Province, thus bringing cohesion and uniformity to sustainable energy developments and projects.

Overall, the provincial energy profile is an unsustainable one, with heavy dependence on energy sources that are expected to increase steeply in price or may be constrained in terms of global warming emissions. The provincial prioritisation of growth, poverty and unemployment, amongst others, will need a move to a more sustainable and low carbon profile if these objectives are to be realised.

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1. INTRODUCTION Gauteng Provincial Government (GPG) has identified a need for the province to shift to a more sustainable energy profile. The decision to develop a strategy arose from the electricity shortages facing the country as well as issues relating to long term energy security and the environment. GPG has identified the following objectives:

1. To develop an Integrated Energy Strategy and Implementation Plan for Gauteng Province.

2. To involve stakeholders in Strategy and Implementation Plan development

3. To clarify institutional requirements for Strategy implementation

4. To build capacity in Provincial Government to manage and oversee the successful implementation of the strategy

In pursuing this goal the work has been divided into two phases. The first phase involves developing the integrated energy strategy and the second will focus on an implementation framework and plan. As part of developing the strategy it is necessary to first understand what is meant by energy, to collate a basic profile of how energy is used in the province, to develop a picture of the current situation in terms of international and national trends as well as what initiatives have already been undertaken at provincial and municipal levels. This report is thus an attempt to provide such a picture which in turn will influence and direct the emerging strategy as well as provide a platform for stakeholder discussions and input.

The 1996 Constitution of South Africa states clearly that the people of South Africa have a right to an environment that is not harmful to their health or well-being. However, it further makes clear that issues of energy including renewable energy fall into the arena of national government. This has implications for Gauteng Province as constitutionally provinces do not have a clear mandate with regard to energy issues. Yet some provinces including Gauteng have decided to embark on developing an energy strategy. Much of this move has to do with the enormity of the energy challenges and the need to implement changes at all spheres of government. National Government, it is true, needs to give the overall mandate and as will be shown below, has developed many documents to support such a move. The decision by Gauteng Province to develop a strategy paves a way for National Government’s plans to be implemented in a structured and systematic manner. Such a move has bearing on the overall roles and responsibilities of Province in relation to national and local government. This is discussed in more detail later.

The key objective of the work is to guide what should be done with regard to the environmental effects of climate change, the resultant problems related to energy security and to provide an umbrella to the many initiatives that have already been introduced both at a provincial and local level and those planned for the future. The development of an integrated strategy should be collaborative and thus owned by provincial and local government, civil society and the private sector - a strategy which will be guided by the principles of sustainable development and poverty alleviation and will harness and promote energy efficiency and renewable energy resources.

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The Department of Local Government and Housing has been given the mandate by Gauteng Province to develop an integrated energy strategy and implementation plan, including the building of capacity. Their intention is to introduce an Energy Office once the strategy is in place that will inter alia support and facilitate the implementation of the strategy.

The primary purpose of this report is to provide a picture of what is happening internationally, nationally and within Gauteng Province in such a way as to enable the reader to see what the key strategic options are. The report will begin with an overview of energy including international and national trends in Section 2. Section 3 will outline the energy roles and responsibilities of Province in relation to national and local government. This is important in terms of the nature of the strategy and the potential effectiveness of Province. Section 4 and Section 5 will provide details of what is happening within Gauteng Province both at provincial and municipal level. Section 6 will give an initial energy picture of Gauteng through an analysis of data available at this stage. The final chapter will use this information to give pointers to the strategy and establish a draft vision to contextualise the strategy. This will ultimately inform the next step in this phase of the work: developing an integrated energy strategy.

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2. THE ENERGY STORY Energy underpins all aspects of life: our dependence on different forms of energy to run our lives and our ability to live, the food we consume and the energy we use in the course of our daily lives. Energy is defined as “the ability or power to work or make an effort and the capacity for vigorous activity”2. So why is energy so important? Since the advent of the industrial revolution our dependence on fossil fuels in the production of energy for work, for leisure, for transport, for technology and for the production of food, has increased exponentially. Energy is critical to sustainable development, to poverty alleviation and to economic development as well as environmental sustainability, and as such is complex and cuts across a range of fields.

Increasingly cities have become the major hub of where people live – more and more people globally are moving from rural areas to the cities. Cities consume the bulk of the world’s resources and yet they occupy a small percentage of land space. It is expected that the world’s population will grow to 9 billion by 2050 and that most of this growth will be in cities. This movement and growth of cities is happening faster in developing countries than the developed north. In the past when energy was discussed the focus tended to be on electricity. In fact in South Africa prior to 1999 there was almost no talk of energy at city level. The first city energy strategy was developed for the City of Cape Town as late as 2003. Today six South African cities have energy strategies, namely Cape Town, Tshwane, Ekurhuleni, eThekwini, Nelson Mandela Bay and Hessequa municipalities. Energy over the years has become a global issue particularly around security of supply and impacts on the environment. The recent volatility in the price of oil and the fact that we are reaching peak oil3 has impacted on all aspects of society, especially the skyrocketing food prices, transport costs, and general cost of living. In this chapter we will be looking at the global and national energy picture as well as a general understanding of energy poverty and energy and the environment.

2.1 International Trends Three of the major challenges facing the global community are climate change, poverty and development.

“An overwhelming consensus of scientific opinion now agrees that climate change is happening, is caused in large part by human activities (such as burning fossil fuels), and if left unchecked will have disastrous consequences. Furthermore, there is solid scientific evidence that we should act now. This is reflected in the conclusions, published in 2007, of the Intergovernmental Panel on Climate Change (IPCC), a UN institution of more than 1,000 scientists providing advice to policy makers."4

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2 Oxford Dictionary, 2000 3 Peak oil is the “moment when half of what can be pumped from the earth has been used. It is also regarded as the point of maximum production”. It is believed that at the peak, the production of oil will decrease resulting in a higher demand than supply. [Source: the groundWork Report 2007] 4 Energy Revolution: A sustainable global energy outlook, Greenpeace International &EREC, October 2008


The world today is highly dependent on fossil fuels for energy largely in the production of electricity and fuel for transport. We know that the global population is increasing and we live in a world characterized by consumption, where economic success is measured by levels of consumption. This constant striving for more is resulting in an unsustainable future – a future with increasing levels of greenhouse gas emissions and rising global temperatures, which ultimately puts pressure on food and water resources. There is simply not sufficient space and resources on earth to keep up with the demands we are making and will continue to make at the current pace of consumption coupled with the growth in population. Martin Rees states that the “world could not sustain its present population if everyone lived like present-day Americans or Europeans.”5 The 2006 Stern Review6 claims that urgent global responses are required immediately and that “the benefits of strong and early action outweigh the economic costs of not acting”. He argues that business as usual will result in a loss of global GDP at a rate of 5% per year from now onwards and that this figure is conservative. If changes are made the figure could be reduced to 1%. It is critical that countries around the world invest in mitigation and adaptation – long term goals and frameworks must be agreed that “build on mutually reinforcing approaches at national, regional and international levels”. This statement is important and has bearing on the role that Province can play in developing a strategy that is mutually reinforcing and strongly based on action, and emphasises an appropriate relationship between national, provincial and local government spheres, given as stated above that Province has no direct mandate in the energy arena.

The Stern Review, as do many other recent studies, goes on to show that action can indeed alter the trajectory of global warming and its effects on our world, and that mitigation should be seen as an investment, both economically and developmentally. “Climate change presents a unique challenge for economics: it is the greatest widest-ranging market failure ever seen”.7 The review states that global emissions should be reduced by 50% by 2050.

Affects of climate change globally have been well documented and include rising sea levels due to melting glaciers, extreme weather conditions, extinction of natural ecosystems such as coral reefs, forests and wetlands and extinction of species.8 Recent events have demonstrated that South Africa is also not immune to global changes in the energy sector – such as shortages of oil, volatile oil prices and the imperative to move towards cleaner fuels. In addition South Africa has begun to see changes in weather patterns with flooding affecting many regions as well as increased fires during the summer periods and ultimately both affecting agricultural production.9 The concerns of the impact of climate change in South Africa led to the hosting of two important national summits in March 2009– one on renewable energy and one on climate change. This is a demonstration of the government’s commitment to bringing all stakeholders together to discuss how South Africa should deal with the impacts of climate change and the changing global energy sector.

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5 Martin Rees, Science: The Coming Century, article in The New York Review of Books, November 20, 2008 6 The Stern Review: The Economics of Climate Change (November 2006) 7 The Stern Review: The Economics of Climate Change (November 2006) 8 Energy Revolution: A sustainable global energy outlook, Greenpeace International &EREC, October 2008 9 State of Energy in South African Cities, 2006, Setting a Baseline, Compiled by Sustainable Energy Africa in partnership with cities and city stakeholders


The former Department of Environmental Affairs and Tourism and the Department of Science and Technology hosted a Climate Change Summit during the first week in March 2009. The main purpose of the Summit was to provide stakeholders with an update on recent climate change research, initiatives and interventions. In addition, the Summit was aimed at providing a platform for all stakeholders to discuss and agree on the framework for a National Climate Change Response Policy and to highlight South Africa’s responsibility to affecting change.

An important issue that arose – was the realisation that responding to present energy use is key to changing the present trajectory. Former President Kgalema Motlanthe said “ for us in South Africa, the climate change challenge is not only one of climate stabilisation, but it is also about combating poverty and promoting healthy livelihoods, energy security and sustainable development“.

According to Winkler et al (2007), atmospheric concentrations of greenhouse gases such as carbon dioxide have increased by 35% since the beginning of the industrial revolution. These emissions are mainly attributed to the emissions from generation and consumption of energy. Much of the work around climate change has focused on energy. South Africa has placed emphasis on developing the renewable energy sector in the country. The renewable energy summit held by the former Department of Minerals and Energy at the end of March 2009 was thus aimed at reviewing the White Paper on Renewable Energy that was approved by Cabinet back in 2003 and exploring the obstacles and drivers to ensure the growth of renewable energy technologies in South Africa.

The Kyoto Protocol10 is the main global treaty to tackle global warming. Although most of the global carbon emissions are produced by developed countries (who collectively contributed roughly 40 percent of global carbon emissions, and are responsible for more than 60 percent of the total carbon dioxide that fossil fuel combustion has added to the atmosphere in 2006”) 11, emissions from developing countries are rapidly rising. The first phase of the treaty binds only 37 of the developed nations to curb emissions from 2008. However, the fact is that the energy needs of poor countries such as India, Brazil and China have accelerated in recent years as they entered the most energy-intensive stages of their development—building industries and infrastructure at an astonishing pace12. China for example has emissions rising at 10 percent a year – which is ten times the rate of industrial nations. South Africa is also a high emitter producing greenhouse gas emissions on a par with European nations on a per capita basis. There are talks in process to hold all countries to greater commitments from 2013. A more recent meeting was the 14th annual Conference of the Parties (COP 14) held in Poznan, Poland in December 2008. According to reports in the Cape Times the meeting was not that successful in moving forward due to some tensions in terms of agreements and on what basis a country is deemed to be developing or

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10 The Kyoto Protocol was adopted at a Conference of the Parties to the UN Framework Convention on Climate Change in Kyoto, Japan in December 1997. 11 State of the World – Innovations for a sustainable economy, 2008 12 Ibid.


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developed.13 Despite these tensions there is a consensus that globally our way of operating has to shift.

A positive development that may reduce the tensions is the climate change position purported by the newly elected president of the United States of America. In what is a drastic change from the past, the new president recently stated that “the United States must lead the world on renewable energy and pressed Congress to set greenhouse gas limits deemed crucial for the success of global talks on climate change”. The new administration has placed energy reform high on the country’s priority list. The President has stated that the days of a slow U.S. response to global climate talks were over.

This has been met with enthusiasm and renewed vigour as the world prepared for the International Climate Change Conference held in Copenhagen in December 2009. Apparently, U.S. negotiators are preparing proposals aimed at agreeing to a pact to succeed the Kyoto Protocol, which sets limits on greenhouse gas emissions. This is a far cry from the previous position of the U.S. in which the Kyoto Protocol was not even signed and could be a positive move for all signatory states.

Developing countries argue that they are faced with a difficult challenge. On the one hand countries have to fast track development to provide adequate transport, power, communica-tion networks, water, sanitation and other infrastructure services as set out in the Millennium Development Goals (MDGs). On the other hand these countries have to deal with severe constraints on economic growth, trade and poverty reduction. Developing countries tend to be the worst affected by the impact of climate change in terms of poverty and access to vital resources - there will be increased risk of hunger, water shortages and spread of malaria and other diseases. The UN Secretary General has been reported as saying that Africa is falling behind the MDG goals to halve poverty by 2015 due to rising food prices, oil prices and climate change. Interestingly the rich developed nations have the resources to assist the world’s poorest nations and according to Rees, 2008 “the annual amount of foreign aid from most countries, including the US, is far below the UN’s target of 0.7% of GNP that was set out in the Millennium Declaration in 2000”14 and he further states that this track record does not bode well in terms of reducing emissions.

With respect to electricity — an essential input for economic growth and achieving MDG 115 — “about 35 countries in Africa are currently experiencing a power crisis with frequent supply interruptions. The 700 million people in sub-Saharan Africa (excluding South Africa) share a combined generation capacity equivalent to that of Argentina, a country of less than 40 million people. As a result, only one in four Africans has access to electricity and this figure is barely 10 per cent in rural areas.”16

The MDG Africa Steering Group estimates that US$52.2 billion per year will be required in public and private investment finance to resolve the critical infrastructure bottlenecks in

13 The Cape Times, Dec 15th 2008, articles by Melanie Gosling and Jan Glazewski 14 Martin Rees, Science: The Coming Century, article in The New York Review of Books, November 20, 2008 15 MDG 1, Eradicate extreme poverty and hunger 16 Recommendations of the MDG Africa Steering Group, June 2008


Africa. About half of the financing will need to go towards energy. The MDG Africa Steering Group has made a number of key recommendations that include:

“Launch[ing] a “New Deal” for the energy sector to plan and build transformational generation and transmission facilities across Africa, and improve the performance of power utilities. Clean energy, in particular hydro-power, will need to play an important role in Africa’s power sector development and can help to contain greenhouse gas emissions. Additional investments are required in decentralized energy systems to increase access to fuels for domestic cooking and heating, motive power and off-grid electricity. Overall, ODA for energy needs to increase to US$11.5 billion per year.”

Energy security is at the top of international policy developments and to a large extent this has been driven by the issue of peak oil, rising oil costs and the knowledge that coal and gas resources are ultimately also finite. The way forward being promoted at an international level is through developing renewable energy and promoting energy efficiency. Clear developments point to strong policies at government level as well as clear frameworks and implementation plans.

2.2 National Trends South Africa’s main energy source has been coal, which has resulted in the economy being very dependent on fossil fuels. South Africa also has significant reserves of uranium and small reserves of oil and gas. Coal dominates energy supply, with the second biggest energy carrier being imported crude oil essential for the supply of liquid fuels, mainly for transportation. A reasonable amount of nuclear, hydropower and gas also contributes to the mix of energy supply in the country. Three quarters of South Africa’s energy comes from predominantly coal generated electricity and coal-derived synthetic fuels. It has historically been cheap to produce because of our cheap coal and as a result South Africa has been one of the highest emitters of greenhouse gas per capita in the world. The apartheid government focused on security of supply due to increasing sanctions. During the 1970s the government placed huge emphasis in electricity generation which as stated above was mostly coal fired. This was in response to high economic growth. By the 80s and 90s economic growth had begun to decline however electricity supply remained constant. This meant that there was an excess of capacity and is the reason why some of the older plants were mothballed. Because of the low cost and massive supply of coal and cheap cost of electricity South African industries became energy intensive. Since the 1990s there has been a growth in electricity demand without a requisite growth in capacity development which has in part led to the current electricity crisis.

The South African government has been looking into alternative sources of energy for a number of years and accepts the view that “renewable energy offers our planet a chance to reduce carbon emissions, clean the air, and put our civilization on a more sustainable footing. It also offers countries around the world the chance to improve their energy security and spur economic development.”17 It is this view that has encouraged the South African

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17 Renewables 2007 – Global report


government to start considering appropriate responses to the energy challenges more seriously.

Even with its wealth of natural resources the country still has significant challenges linked to poor transport infrastructure, air pollution from dirty coal and millions of people still not connected to electricity. Since 1994 South Africa has given momentum to changing and developing legislation in the energy sector as well as identified important socio-economic development projects to respond to the inequalities of the past. According to an unpublished report by Hilton Trollip18,” South African National Energy Policy related to energy efficiency and renewable energy is extensive and comprehensive.” At the time of writing he noted that there were 25 pieces of national legislation, 5 substantial policy documents, 9 national strategies and plans, 3 documents of national regulations, and a number of provincial and local government documents covering this field.

Some of the key documents to have emerged include:

White Paper on Energy Policy (1998)

This document outlined five key objectives: to increase access to affordable energy services particularly to meet the basic needs of the poor, to improve energy governance, to stimulate economic development, to manage energy related environmental impacts particularly focusing on poor households and to secure supply through diversity. In 1998, at the time this paper came out, 40% of all homes and many schools and clinics in South Africa were without access to electricity supply. This was an important document and in many respects set the scene for some of the policies and strategies that followed.

White Paper on Renewable Energy Policy (2003)

This paper sets out the government’s vision and objectives for promoting and implementing renewable energy in South Africa. It states clearly that South Africa has relied on cheap coal to meet its energy demands and that given the green house gas emissions from the use of fossil fuels and South Africa’s ratification of the UNFCCC and Kyoto Protocol it is imperative for government to establish a renewable industry through a phased and flexible strategy which builds on partnerships. The white paper states that that South Africa should produce 10 000 GWh (0.8 Mtoe) of renewable energy by 2013. It also mentions that South Africa has abundant renewable energy resources and to enable the take up of these resources government must introduce fiscal and financial support mechanisms and legal instruments, develop institutional infrastructure such as regional electricity distributors (REDs), develop technology and build awareness and capacity. The White Paper is presently under review.

Energy Efficiency Strategy (2005)

The objective of this strategy is to strive for affordable energy and to minimise the “negative effects of energy usage on human health and the environment through sustainable energy

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18 Hilton Trollip, Western Cape Sustainable Energy Strategy: Moving to Implementation, Paper prepared for Sustainable Energy Africa, April 2008


development and efficient practices”. The strategy sets a target of 12% energy savings by 2015. The Department of Energy is currently reviewing this document.

The Electricity Regulation Act 2006

This Act was amended in 2008 and provides for enforcement of energy efficiency measures with respect to lighting, water heating and space heating/cooling and smart metering as well as ensures that incentives and penalties are legislated. These energy efficiency applications included in the Act are largely the responsibility of municipalities to enforce and/or implement by 2012.

The Electricity Distribution Industry Restructuring Bill 2003

The Electricity Distribution Industry (EDI) Restructuring Bill provides for the establishment of a national framework for the restructuring of the distribution industry, the creation of regional electricity distributors and the management of the restructured electricity distribution industry. The proposed establishment of six Regional Electricity Distributors (in the Metro areas) was an attempt by government to improve the access and reliability of electricity to communities. Later the feasibility of a seventh national Regional Electricity Distributor (RED) was also investigated. The announcement of the REDs was met with mixed views, especially amongst municipalities. The main concern revolves around how the REDs will affect local governments’ finances as it is believed that municipalities are likely to lose revenues as well as assets. As yet, the uncertainty has limited the progress on the development of the REDs.

National Energy Bill (2008)

The main purpose of this Bill was to ensure an uninterrupted and diverse supply of energy and facilitate effective management of energy demand. It refers to the promotion of energy research and standards, ensure data collection, optimising supply and demand, and ensuring the health and safety of all people and the environment. It proposes that the Minister must annually review and publish an integrated energy plan and set up the South African National Energy Development Institute focusing on energy efficiency and energy research and development.

Long Term Mitigation Scenarios (2008)

The Long Term Mitigation Scenarios (LTMS) was developed by the Department of Environmental Affairs & Tourism and has been approved by cabinet. It outlines three key scenarios – growth without constraint, i.e. business as usual which they clearly state is unacceptable, current development paths, which will not be sufficient to create change, and required by science which would provide the shift needed to arrest the catastrophic effects of climate change. The LTMS suggests that by 2050 there would be a huge gap of 1300Mt CO2 between growth without constraint and required by science scenarios. The document argues that greenhouse gas emissions should plateau by 2020 and decline by 2030. It identifies possible solutions which includes extensive energy efficiency measures, a split between nuclear and renewable energy production by 2050 as well as the introduction of a carbon tax.

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2.3 Energy Poverty Energy is a prerequisite to social and economic development and so a lack of access to energy contributes to poverty and deprivation. A quarter of the world’s population has no access to electricity and most of these people live in South Asia and sub-Saharan Africa. Current figures indicate that 2.4 billion people rely on traditional biomass – wood, agriculture residues and dung - for cooking and heating which accounts for more than 80% of their household energy needs. Energy poverty is a global problem but what makes South Africa unique is that we are not only a developing nation but we also sit with the legacy of apartheid. In South Africa many people in informal settlements use candles or paraffin which are not safe and over the years have led to many fires resulting in homelessness and death. Furthermore the burning of biomass (such as firewood and coal) for cooking or heating as well as the use of paraffin has resulted in high levels of indoor air pollution It is well documented that the poor tend to spend proportionally more of their income on energy requirements than middle or high-income households, and also bear a disproportionate share of health and inconvenience costs associated with their household energy needs. In South Africa low-income electrified households spend as much as 10% to 15% of their income on energy, whilst non-electrified spend 15% to 25%. This indicates that the poor are spending between three to eight times more on energy relative to middle-high income households who spend a mere 3% of monthly income on energy19. Many South Africans use paraffin for cooking, lighting and heating. This leads to problems associated with indoor pollution, ill health, high fire risk, children being poisoned from accidentally drinking paraffin, and associated high mortality rates. Paraffin related incidents cost the economy R104 billion annually20. The Apartheid regime ensured that the majority of the population did not have access to basic services in both rural and urban areas. Policies since 1994 have attempted to redress this imbalance particularly through the Reconstruction and Development Programme (RDP), integrated National Electrification programme; Growth, Employment and Redistribution (GEAR) programmes, and Accelerated and Shared Growth Initiative for South Africa (ASGISA). In general policies and strategies have focussed on providing greater access to safe, affordable and reliable energy resources for the poor. One of the aims of RDP was electricity for all and this has been hugely successful. For instance, at the end of 1993, 36% of the total population had access to grid electricity of which 50% were urban and 12% rural. More than 25 000 rural schools had no access to electricity. By 2001 this figure had risen to 76.1% and by 2007 81.5% of the national population had access to electricity.21 Electrification for the same period for Gauteng Province was at 79.1% thus slightly less than the national figure. However the ability of the country to reach its target of 100% electrification by 2013 is unlikely. This is largely due to the predicted growth in the number of households requiring electrification, the escalating cost of achieving this and the growth in the informal sector. This predicted growth is highlighted in the General Household Survey (Stats SA, 2007) which reports that Gauteng province had the highest rate of urbanisation in

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19 State of Energy in South African Cities 2006 – Setting a baseline, SEA, 2006. 20 A review of the effectiveness of energy subsidies and related taxation policies in South Africa, PDC &SC, 2003 21 Stats SA 2007, General Household Survey


the country in 2003 alone. In 2007, according to the above report, Gauteng already had a housing backlog of 19.5% with 22.6% of its population living in informal settlements. Thus making Gauteng one of the provinces with the largest percentage of people living in informal settlements. Both Ekurhuleni and Tshwane have the highest levels of people living in informal settlements within the province.

We have seen a huge growth in urbanisation in South Africa and it is estimated that approximately 58% of our population live in urban areas. Informal settlements have been increasing steadily over the past 10 years and predicted growth is in urban areas and in particular in the informal sector.

Informality in South Africa is characterized by high levels of energy poverty. Despite the intentions of the integrated National Electrification Programme which sought to address the electrification backlog by 2012, many informal households in urban areas were not electrified, partly because they are settled on un-proclaimed land. Interventions by government to address energy poverty include the introduction of two policies: the Free Basic Electricity policy (FBE, 2000) and the Free Basic Alternative Energy policy (FBAE, 2007). The former is targeting indigent households who are connected to the grid and proposes to provide a minimum of 50KWh of free electricity per month. The Tshwane municipality took a decision to increase this amount to 100kWh per month per household as it was felt that 50KWh was not sufficient. In order to receive this benefit residents are required to register on the indigent household database - over 120 000 households have registered. The FBAE, on the other hand, is meant to address energy poverty for indigent households who are not connected to the grid. The policy provides for energy to the value of R55 per un-electrified household, its implementation has been a challenge, and remains ineffective. For instance, a pilot programme which was set up by the former DME and Tshwane Metro to roll out LP Gas to two townships was unsuccessful.

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ervices.”23

Government’s initiatives to meet the energy services needs of the poor and deal with poverty generally are laudable. The Government’s recent document ‘Towards a Fifteen Year Review’ 22 highlights the important changes that have been made since 1994 but outlines the challenges for the future particularly around reducing unemployment and inequality, fighting poverty and building state cohesion. The National Framework for Sustainable Development (2008) talks about poverty eradication and the need to develop common goals. Thus it states that “sustainable development that is appropriate and specific to the South African context will entail shared and accelerated growth, targeted interventions and community mobilization to eradicate poverty, and ensure the ecologically sustainable use of our natural resources and eco-system s

2.4 Energy Supply Although government’s initiatives to change legislation on energy have been commendable, it has not protected the country from recent events. In January 2008 South Africa was faced with an electricity crisis that was due to inadequate national supply planning exacerbated by

22 Towards a Fifteen year Review: Synthesis Report, October 2008 23 The National Framework for Sustainable Development, July 2008


a shortage of coal at Eskom’s power stations coupled with robust economic growth in the country.

South Africans had to deal with “load shedding,” cutting service to customers on a rotating basis. Telephone and Internet service for businesses and other customers became unreliable; the periodic absence of street and traffic lights worsened traffic; private security systems switched to generators, blackouts interrupted power supply for homes, businesses, shopping centres and public utilities.

The response by government, and understandably so, has been to ensure that the energy supply, specifically electricity, is brought back into balance, that there is a workable reserve supply in order to alleviate strain on the generation assets and to create breathing space for maintenance to be carried out. But the country was aware of the problem of electricity capacity constraints long before the crisis hit us. In 2003 DME established an Integrated Energy Plan which looked at security of supply and generation implementation plans but was not strong on demand-side measures. This was also a weakness of the National Integrated Resource Plan (NIRP) guiding electricity sector investment which was undertaken first by Eskom, then by the National Energy Regulator of South Africa. Although inappropriately supply-side focused, all of these documents pointed to the impending power crisis, but decision-makers failed to act timeously. Once the crisis hit, the government established a National Emergency Response Team and rolled out its national Electricity Emergency Programme (2008). The programme looked at Demand Side Management (DSM) and Energy Efficiency initiatives as an immediate relief to the problem.

In energy sector planning it is imperative that DSM is considered prior to supply side solutions. Demand side management focuses on the amount of energy required by consumers. The plan therefore concentrates on reducing such demand through energy efficient measures such as CFLs, efficient transport, solar water heaters, etc.

Supply side management, focuses on the amount of energy available and whether it is sufficient to meeting the demands. For instance, Eskom’s mothballed power stations are being brought back on line and future coal fired power stations have been commissioned to create a larger supply of electricity. Although Eskom was intending to expand its nuclear power generation portfolio, these plans were put on hold in December 2008 due to escalating costs of this power source. National government is however, still committed to developing nuclear energy technologies.

Both demand side and supply side management needs are classified as:

• Immediate (within 6 months),

• Medium term (within 18 months) and

• Long term (longer than 18 months).

In the longer term, renewable energy and alternative energy projects are being given consideration. The potential for the use of renewable energy varies within the country but overall solar radiation levels are high by international standards, and wind power can be cost-effectively utilized in coastal regions. Biomass is used for firing boilers in the sugar and

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paper and pulp industries. Renewables in this case include the large use of fuelwood in rural low income households. The use of biomass in the residential sector is often excluded from renewables as it is not viewed as a sustainable resource and impacts negatively on health. Limited large-scale hydro and small- or micro-sized installations are feasible. The latest NIRP (NIRP3 – still in draft format) places significant emphasis on energy efficiency and wind generation, although these recommendations have not yet been formally accepted by the National Energy Regulator of South Africa.

Currently, as the figures below show, renewable energies only amount to 8% of our energy supply and 7% of our energy consumption. Given the resources we have and given the documents that have emerged, these figures are extremely low. In addition they clearly point to our continued dependence on coal and electricity which as we know is largely coal generated, for our energy use. However, recent initiatives and developments could positively influence these figures. Our dependence on coal may change in the future especially with the recent proposal from Eskom for an electricity tariff increase. Eskom has made an application to the National Energy Regulator of South Africa (Nersa) for a price increase, submitting a request for a nominal 34% increase (25% real) for 2009/10.24 Nersa plans to hold public hearings into the application and make a decision by the end of June 2009.

In addition, Nersa approved the Renewable Energy Feed-In Tariff (REFIT) Guidelines on 26 March 2009. The REFIT has been long awaited as it opens the path for the renewable energy sector in South Africa to grow and to become economically viable. The following provides the tariffs for various technologies:

Technology Unit REFIT REFIT Tariffs – 2009 (R/kWh)

Wind R/kWh 1.25

Small hydro R/kWh 0.94

Landfill gas R/kWh 0.90

Concentrated solar R/kWh 2.10

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24 Terence Creamer, engineering news online, 15 May 2009


Figure 2: Primary National Energy Supply, 2004, (Source: DME, 2005)

Figure 3: Total National Final Energy Consumption by Carrier 2004, (Source: The Digest of SA Energy Statistics 2005, DME)

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Figure 4 Final National Sectoral Consumption of Energy 2004, – (Source: The Digest of SA Energy Statistics 2005, DME)

2.5 Private Sector and Civil Society Activities and Projects This report describes gives an overview of government actions, plans and projects. It is however also important to note that the private sector has also undertaken various energy-related projects. These projects are quite varied and could range from changing the type of light bulbs being used in a building to bigger projects such as using landfill gas for energy. Below is an outline of key private sector initiatives and agreements in South Africa.

• VOLUNTARY ENERGY EFFICIENCY ACCORD

In 2005, following the adoption of the Energy Efficiency Strategy of the Republic of South Africa, a number of South African companies signed a voluntary Energy Efficiency Accord with Government. The Accord was facilitated by the National Business Initiative (NBI) and its main aim was to assist in the implementation of the strategy and contributing to the achievement of the announced energy efficiency targets. There are 44 signatories of the Accord and includes 36 companies and 8 business associations who help mobilize their members towards energy efficiency.

In terms of the National Energy Efficiency Strategy, the national overall target was a final energy demand reduction of 12% but the industry target was increased to 15%. To convene the business of the Accord and its link with Government, an Energy Efficiency Technical Committee (EETC) was formed with the NBI playing the management and secretariat roles.

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The company signatories are from the mining, industrial, petrochemicals, commercial and financial sectors and they are mostly the top energy users in the country including Eskom, Sasol, BHP Billiton, Anglo American, AngloGold Ashanti, Anglo Platinum, Xstrata, ArcelorMittal and Exxaro.

The combined electricity consumption of 19 Accord signatories is over 56 560 GWh, which is approximately 24% of the national electricity consumption. The energy efficiency potential of the Accord is thus very significant and could therefore be an important structure for collaboration on energy management in coal mining, transportation and consumption.

• THE CARBON DISCLOSURE PROJECT

The Carbon Disclosure Project (CDP) in South Africa acts as the secretariat for the world’s largest institutional collaboration on the business implications of climate change. The CDP involves companies signing a request for disclosure of information on Greenhouse Gas Emissions. The CDP is an important step in assisting the private sector to identify and strategise on the impacts of Climate Change.

The second South African CDP report was released in 2008. The range of companies increased from the Top 40 JSE listed companies in 2007 to the JSE Top 100 in 2008. The leaders in the Carbon Disclosure Leadership Index were BHP Billiton in the Carbon Intensive Emitters, and Woolworths Holdings representing the low carbon sector.

The key elements of the CDP6 2008 South African report include25:

• The response rate to South Africa’s second CDP - of 59% - is relatively high by international standards and suggests that local companies are largely willing to engage on climate change issues. The global average rate of response is 55%.

• The disclosure rate of carbon-intensive companies (88%) was higher than the disclosure rate of companies from low-carbon sectors (69%).

• There appears to be much greater awareness of, and engagement in, government policy on climate issues. This is due, in part, to the government’s Long Term Mitigation Scenarios (LTMS) process, which involved the engagement of numerous senior executives from a range of business sectors.

• Some sectors – leisure, entertainment and hotels, media and photography and publishing, and real estate – are very poorly represented in their engagement on climate issues

• South African company views on business risks and opportunities associated with climate change include the following:

o Most companies believe that the South African government will introduce regulations on climate change in the near future.

o Many of the responding companies acknowledge that while regulations impose potentially significant risks, they will also level the playing field and hence make efficiency and environmental best practice more attractive.

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25 Carbon Disclosure Project Report, 2008, JSE Top 100


o Extreme weather events have been identified as significant growing concern for agriculture, mining operations, logistics and buildings, while many companies have also identified possible risks associated with resource shortages and price increases.

o Changing consumer attitudes are also seen as possible drivers for carbon-efficient operations.

o Most respondents recognise that climate change may also provide potentially significant business opportunities.

• CLEAN DEVELOPMENT MECHANISM – SOUTH AFRICAN PROJECTS

The Designated National Authority (DNA) published the list of registered projects and as at June 2008 there were 80 CDM projects submitted to the DNA – 58 Project Idea Notes (PINs) and 22 Project Design Documents (PDDs). Thirteen of the 22 PDDs have been registered by the CDM Executive Board as CDM projects (1 requesting CER’s), and 7 are at different stages of the project cycle. The projects submitted to the DNA for initial review and approval include the following:

• bio-fuels • energy efficiency • waste management • cogeneration • fuel switching • hydro-power

These projects cut across sectors such as manufacturing, mining, agriculture, energy, waste management, housing and residential. However, up until November 2005 only individual projects could register as CDM projects. This meant that for small carbon saving projects, the net revenue was very small given the costs entailed in applying. In response to this problem a new type of CDM has been developed called Programmatic CDM which enables the pooling and crediting of all emissions reductions occurring under a programme of similar projects. This is being worked on to develop a system to make programmatic CDM available to municipalities. For example moves are under way to establish a national facility in the Department of Human Settlements – the Sustainable Housing Facility (SHF) – which will register all programmatic CDM for low income housing projects.

• GREEN BUILDING COUNCIL OF SOUTH AFRICA

Earlier this year (2009), the Green Building Council of South Africa (GBCSA) set out to develop a technical working group, which would work on the development of the Green Star South Africa retail rating tool26. The Green Star South Africa (SA) tools will evaluate buildings in terms of environmental aspects, including energy, water and ecology.

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26 Christy van der Merwe, Engineering News online, 18 April 2009,

http://www.engineeringnews.co.za/article/green-building-council-to-start-work-on-green-star-sa-retail-rating-

tool-2009-04-28

http://www.engineeringnews.co.za/article/green-building-council-to-start-work-on-green-star-sa-retail-rating-tool-2009-04-28

http://www.engineeringnews.co.za/article/green-building-council-to-start-work-on-green-star-sa-retail-rating-tool-2009-04-28


Once the tool is complete, the GBCSA would offer buildings the opportunity to become Green Star SA – Retail certified, as an endorsement of the project’s environmental performance. The technical working group would be a body of South African experts that evaluate all credits and credit criteria for the rating tool.

• DBSA – RENENWABLE ENERGY MARKET TRANSFORMATION (REMT)

The DBSA has established a Renewable Energy Market Transformation Project (REMT) with the aim of helping South Africa eliminate barriers to renewable energy development. The project has two main components namely the Renewable Energy Power Generation (REPG) sub-component and the Commercial Solar Water Heating (CSWH) sub-component. Both sub-components offer matching grants (MG) for capacity-building to assist the beneficiaries to identify, prepare, and finance investments and improve their business and market development capabilities.

• CIVIL SOCIETY

There are numerous organisations both nationally and within Gauteng that are committed to tackling various aspects of the energy sector. The Clinton Foundation is involved at local government level in Gauteng to ensure energy efficiency in government buildings. The prominent environmental organisation working on energy is Earthlife Africa. They have been active in commenting on government policies and lobbying for free basic electricity. The organisation is opposed to the use of nuclear power for energy generation.

In 2008, the international NGO, Greenpeace established an office in Johannesburg. The organisation’s focus in South Africa is also on energy. As the projects are fairly new, most of the work thus far has been around lobbying and network building.

The World Wildlife Fund (WWF) has played an important role in various government processes including commenting on the National Climate Change Policy. WWF has a focus on renewable energy with solar water heaters being a key issue.

Earthlife Africa-Jhb has played a significant role in the province in terms of linking energy issues to the most vulnerable communities in South Africa. It is one of the few organisations in Gauteng that works with community based structures to create awareness and education on energy and climate change.

2.6 Conclusion It is clear from this brief survey of both international and national trends that there is consensus that current energy use patterns are unsustainable and that the world and South Africa in particular face significant challenges in moving rapidly to a more sustainable situation. South Africa has initiated policies and strategies as well as started implementing plans to address our electricity crisis and begun to reduce our high emissions, although such initiatives have yet to be adopted by many mainstream players. As can be seen from this review the business sector has also begun to make a move in terms of energy efficiency and carbon disclosure. Both of these developments indicate how seriously business is taking the issue of climate change and a willingness to bring change. However, a move towards a low

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carbon economy as advocated by the LTMS would have major implications for our industries and economic policies into the future. Civil society must monitor both government and business and ensure that closer links are created with all sectors.

The next section looks at the roles and responsibilities of Province and then discusses in some detail the work happening at both provincial and municipal levels.

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3. ROLES AND RESPONSIBILITIES OF PROVINCES

3.1. Provinces energy mandate The institutional framework for government in South Africa was established in 1996 when the country adopted its first democratic constitution. National, provincial and local government were established as three spheres of government, each with expected distinctive functional responsibilities but operating as a single system of co-operative government.

The Constitution created provincial government but did not specify distinct objects for provincial government within the overall system and currently, unlike local government, there is no policy and legislative framework to guide provinces. The absence of a definite policy on provincial government has presented uncertainties and opportunities around its role in the development of our country.

The Constitution does not mention ‘Energy’ in either Schedule 4 or Schedule 5. These two schedules deal with “Functional Areas of Concurrent National and Provincial Legislative Competence” and “Functional Areas of Exclusive Provincial Legislative Competence” respectively; both schedules are divided into Part A and B to provide for local authority competencies where appropriate.

A common practice is to assign ‘residual competence’ to the National sphere; in that it has exclusive legislative competence with respect to all matters which are not expressly assigned to the concurrent or exclusive competence of provincial legislatures. Because energy is not mentioned in either Schedule 4 or Schedule 5, it thus is a national competency by default.

‘Electricity and gas reticulation’ is mentioned in Schedule 4 Part B as is ‘Air Pollution’. Concurrent functions contemplated in Schedule 4 for provinces include among others: ‘Disaster management’ ‘Environment’, ‘Air Pollution’, ‘Agriculture’, ‘Regional Planning and Development’ and ‘Urban and Rural development’.

It can be argued however that, because of the cross-cutting nature of energy, under the above listed powers and functions province has a duty to contemplate energy issues.

For example: ‘Environment’ is a very broad term which escapes precise definition. Experts point out that there is no general agreement on what the term ‘environment’ encompasses in the legal context and that it can be defined both narrowly and widely. However there does not seem to be any doubt that phenomena such as climate change, partly brought about by energy generation and consumption, is an environmental issue as envisaged in the Constitution. Furthermore ‘Air Pollution’ is also referred to in Schedule 4 (Part B) and acting on energy issues would arguably also fall under the purview of schedule 4 for this reason, as energy consumption is a significant contributor to air pollution.

‘Regional Planning and Development’ and ‘Urban and Rural development’ in Schedule 4 point toward the need for a provincial energy strategy.

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Provinces may in certain circumstances levy taxes provided certain procedures are complied with. Green energy certificates, feed-in tariffs and net metering could be within the provinces legislative power, where they will not affect the national tax base in any way.

This is noted in section 228 of the Constitution headed ‘Provincial taxes’, where it states in 228(1) that a provincial legislature may impose “(a) taxes, levies and duties other than income tax, value added tax, general sales tax, rates on property or customs duties; and (b) flat-rate surcharges on any tax bases of any tax, levy or duty other than the tax bases of corporate income tax …..”.

Despite this provinces have exercised limited revenue raising powers to manage their developmental role.

Constitutionally, the provinces exist as governments with legislative and executive branches that are accountable to their electorates. Provincial social services expenditure is not cost recoverable. Provinces draw most of their revenue (97% of amount available for provincial government) from national funds, most of which is spent on Health and Social Services.

It is general practice to assign to National government the responsibility for norms and standards setting, to Provinces the responsibility for ensuring implementation of national policy, and to Local government the responsibility for ensuring development within their localities.

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In reality this means that provincial government could take the opportunities that present themselves and push the boundaries of how it and others interpret its role and responsibilities and create its space to intervene around energy related issues. The converse of course is another option open to provincial government – i.e. avoiding specific involvement in energy issues.

National Govt: Policy Development

Provincial Govt: the thin wedge ‐ facilitating the implementation of national policy at the local level Local Govt:

Implementation

Figure 5: The role of provincial government in relation to other spheres of government


3.2. Co-operative Governance within the South African context

The South African constitutional order is founded on two inter-related concepts, namely that of 'sphere of government' and 'co-operative government'.

'Co-operative government' means that, although each sphere is distinctive and has equal status, the spheres are also inter-dependent within the overall structure of the state. The three spheres must therefore work together to ensure effective government in the whole and each of its parts.

Some of the key principles of co-operative government and intergovernmental relations as stated in Chapter 3 of the Constitution are highlighted below.

All spheres of government and all organs of state within each sphere must 'h) Co-operate with one another in mutual trust and good faith by:’

• Fostering friendly relations;

• Assisting and supporting one another;

• Informing one another of, and consulting one another on, matters of common interest;

• Co-ordinating their actions and legislation with one another;

• Adhering to agreed procedures; and

• Avoiding legal proceedings against one another (Act 108 of 1996).

An Act of Parliament must: a) Establish or provide for structures and institutions to promote and facilitate intergovernmental relations; and provide for appropriate mechanisms and procedures to facilitate settlement of intergovernmental disputes (Act 108 of 1996).

Although intergovernmental cooperation and integration are defined in legislation, collaboration is still voluntary with minimal authority and accountability. In addition provinces seem to have experienced challenges in effectively performing regulatory monitoring and oversight on local government with regard to things like environmental functions.

The sensible role for provinces regarding energy would be to attempt to integrate energy issues into the current functions it performs.

3.3 Overarching roles of leadership, facilitation and communication

In the current context of energy shortages and other challenges faced by the energy sector, providing leadership or a vision on energy issues for the municipalities in the province, for the people of the province and for the various departments in the administration is important. This leadership role can link with national government policies, bills and strategies and thus play a key implementation role as noted above.

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Within Gauteng Province, the leadership we have talked about is provided by the Department of Local Government and Housing (DLGH) on behalf of the Premier’s office. Province can play an important communication and facilitation role – bringing mayors and city managers together to work towards achieving agreed targets. Linked to this leadership role is the need for the Province to adjust its own practice around energy, for example:

• initiating energy saving targets and interventions and monitoring energy consumption in its own buildings

• making budgets available to purchase green electricity, which will be expensive initially but would become comparative with the proposed increases in conventional power.

It can also put resources to the development of affirming demonstration projects specifically linked to poverty eradication and social development. Energy is cross-cutting in nature and the responsibility for energy and its implications therefore falls across various departments and functions in a provincial government as well as between the different spheres of government.

3.4 Suitable roles of Provincial Government Provinces have no specific energy mandate. However, energy is a cross-cutting theme, and clearly has some role in many of the core provincial competencies, particularly Environment, Air Pollution, Health, Education, Regional Planning and Development and Urban and Rural development. It is generally not appropriate for the Provincial Government to act as an energy deliverer – this typically falls to local government – and it is also not mandated to enter into the field of power generation. In addition, it does not determine energy policy – this is generally the realm of national government. Rather provinces have a facilitative role – positioned between policy and delivery. Several local governments are embarking on energy strategies and in addition there are numerous other initiatives linked to energy being planned or implemented by a range of players. Provincial government is often best placed to ensure that such implementation is coordinated and thus more effective, via the provision of an overarching strategy. Many smaller local governments have limited capacity to develop and embark on sustainable energy strategies. Here provincial government also has an important role to play in the provision of guidance, capacity support and resources to enable them to successfully embark on what can be a new and daunting process.

Energy concerns impact on a full range of sectors and activities and is therefore a prime example of an area requiring co-operation between the different spheres of government. The Provincial Government should and is actively seeking to co-operate with other government bodies and departments around energy concerns, with an aim to providing assistance, support, and leadership. Through a process of internal discussion as well as public participation, the Provincial Government should attempt to ensure that its efforts to develop the renewable energy sector and promote energy efficiency are co-ordinated with the efforts of other spheres of government relating to energy.

As noted, the largest consumer of energy in the Province is the transport sector. Like energy, transport is a cross-cutting issue and impacts and is influenced by decisions of a

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myriad of players. In terms of the Constitution public transport is both a provincial and local competency with National government able to legislate on transport in consultation with provinces and to manage state owned enterprises (like those that manage the rail system). Because of the sheer number of players in the transport sector it requires dedicated adherence to co-operative governance. In terms of the National Land Transport Bill, 2008, (section 5) the Minister of Transport must ‘facilitate the increased use of public transport’ and ‘promote the efficient use of energy resources’, while ensuring co-ordination of the 3 spheres of government and the transport agencies. In terms of section 9, MECs, amongst other duties, have to ensure co-ordinated planning and intergovernmental co-operation in terms of land based transport and importantly ensure that there is a ‘linkage with matters having an impact on transport in the province including... land use management ...and environmental issues’

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4 PROVINCIAL TRENDS, PLANS AND STRATEGIES

4.1 Overview of Gauteng Province

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level of 21.8%28.

Gauteng Province is the smallest province in South Africa in terms of land area being approximately 16 548 square kilometres and has 15 municipalities. It has a population of 10.5 million27 second only to KwaZulu-Natal and is the most densely populated area in South Africa at 634.5 inhabitants per square kilometre. The province is plagued by a number of socio-economic challenges such as high rates of HIV/Aids, crime, housing shortages, and an unemployment

The population of Gauteng Census 2001 revealed that Gauteng’s three metropolitan areas (City of Johannesburg, Tshwane and Ekurhuleni) contained the bulk of Gauteng residents, with the City of Johannesburg being occupied by approximately 30% of the Gauteng population. Metsweding contained the smallest proportion of the population at 1%.

The General Household Survey of 2003 also reveals that about 90% of Gauteng households used electricity for lighting, cooking and heating, as compared to about 80% of the whole of South Africa.

Gauteng is the gold mining hub of South Africa but the economy has diversified. It now contributes heavily to the national profile in the financial, manufacturing, transport, technology and telecommunications sectors, amongst others. Although Gauteng is the smallest of South Africa's nine provinces, in terms of land area - it contributes about 34% of the gross domestic product (GDP) as well as 60% of its fiscal revenue. The province can be described as the economic powerhouse of South Africa. The Province’s economic sector composition is largely dominated (70%) by tertiary industry services orientated industries with secondary industry (27%) and primary industry (3%) contributions being much smaller.

Although Gauteng’s agricultural sector seems small in comparison to other provinces, its contribution to its overall energy profile must not be ignored. A large area of the province falls within the so-called Maize Triangle. The districts of Bronkhorstspruit, Cullinan and Heidelberg hold important agricultural land, where ground-nuts, sunflowers, cotton and sorghum are produced. The food, food processing and beverages aspect of agriculture make up around R9.9-billion29 of the province's economy, with half of South Africa's agri-processing companies operating in Gauteng.

The provincial department of Agriculture has reported that only 16.4% of this land was cultivated. This means that substantial potential exists for expanding production in the province, with specific contribution to the biofuels and biodiesel industry. The electricity crisis has predictably had an impact on the economy of the Province. The National Energy Regulator estimates the cost to the national economy of load-shedding earlier in 2008 at R50 billion (calculated at R75 per kWh). Many businesses have reported enormous financial losses and have stated that as a result this may lead to job losses as

27 Mid-year population estimates, South Africa: 2008, Statistics South Africa 28 Quarterly Labour Force Survey, Quarter 3, 2008, Statistics South Africa 29 Gauteng Department of Agriculture, Conservation and Environment, www.gdace.gov.za

http://www.gdace.gov.za/


well. As such, dealing with the electricity crisis in a sustainable manner has become one of the main priorities for the Province.

4.2 Summary of Provincial Policies Introduction

Since 1994, the Gauteng Provincial government has made significant strides regarding socio-economic change in the Province, maintaining political stability, establishing a functioning state infrastructure, and growing the provincial economy. According to the province’s economic review (2008), the Gauteng Government “has invested over R1 billion in strategic economic infrastructure through Blue IQ to stimulate growth and sustainable job creation. The Provincial government has invested R5 billion in the housing sector, providing shelter to more than 2.5 million people.” Gauteng has a diversified economy including farming, mining, manufacturing and services. The services sector contributes approximately 60% to provincial GDP and 70% to provincial employment. The total Province economy contributed almost 33% to the national GDP30. However, the Province continues to experience the challenges of high levels of unemployment and poverty.

Given the above, the role of the Provincial Government must not be underestimated – both in terms of economic growth and poverty eradication. The Gauteng Government has developed the Gauteng 2014 Vision and a short-term Gauteng 5-year strategy for the Province with a focus on development and governance, job creation and the eradication of poverty. These documents serve as a basis for most other provincial documents.

It is imperative to note that provincial policies are in line with national decisions and plans. For example, the national government has embarked on the Accelerated Shared Growth Initiative for South Africa (ASGISA) with the objective of growing the economy and halving poverty and unemployment by 2014. The Gauteng Province has also adopted the ASGISA initiative and has set out objectives to grow the economy by 8% for the same period.

Provincial Policies

The Gauteng Provincial Government has developed the following key policies and strategies to ensure economic, social and environmental sustainability in the province:

• A GROWTH AND DEVELOPMENT STRATEGY (GDS) FOR THE GAUTENG PROVINCE, 2005

It is the intention of the Gauteng government to halve poverty and unemployment as part of the national government’s priority economic goal. The main instrument that brings together the various strategies and policy thrusts to achieve these goals is the province’s Growth and Development Strategy (GDS) that was launched in April 2005 and complements the Global

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30 Gauteng Economic Development Policy


City Region strategy. It is aimed at boosting the province’s economy to reach a growth rate of 8% by 2014. The GDS is informed by and integrates the following:

o Trade & Industry Strategy,

o Gauteng Integrated Development Plan,

o Local Economic Development Strategy,

o State of Environment Report and Environmental Implementation Plan.

According to the strategy, the GDS is an “action-oriented strategy and not a policy document.” Furthermore, it is a strategy for all sectors of society in Gauteng and is intended to build “provincial unity and responsibility amongst all sectors of society towards reducing poverty and unemployment, creating jobs and ensuring socio-economic transformation of the Province.” Its aim is to build Gauteng as a global city region and to be the main point of reference and an anchor for the development and implementation of all Provincial strategic plans, programmes and actions.

The GDS targets the following growth sectors for support to promote employment and investment:

o smart industries, including information and communication technology (ICT)

o trade and services, including financial services and the film industry

o tourism

o agriculture, including agro-processing and biotechnology

o manufacturing, including steel-related industries, automotive components, beer and malt infrastructure.

Some of the main activities since 2004 have included the “formalization of informal settlements, the upgrading of hostels and a major urban renewal programme targeted at 20 of Gauteng’s townships.”

• GAUTENG PROVINCIAL GOVERNMENT MIDTERM REPORT, 2004 – 2006

The mid-term report assesses the two important strategic documents – the five-year strategic programme for 2004 to 2009 as well as a 2014 vision to guide the Province in the second decade of democracy. The five year strategic programme is based on five key strategic priorities:

o Enabling faster economic growth and job creation

o Fighting poverty and building safe, secure and sustainable communities

o Developing healthy, skilled and productive people

o Deepening democracy and nation building and realising the constitutional rights of our people

o Building an effective and caring government.

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The Gauteng government’s five-year strategic programme for 2004 to 2009 is the provincial government’s main mechanism to deliver on its 2004 electoral mandate. The programme seeks to significantly enhance shared economic growth and job creation and push back the frontiers of poverty by 2009.

• GLOBAL CITY REGION STRATEGY

At a global scale, Gauteng features as a major metropolitan area and is ranked in the world hierarchy of urban settlements. The Globalisation and World Cities Study Group (GAWC) has analysed the global network of such services, and identified Johannesburg as Africa’s only world city and a regional motor in the global economy. Developing Gauteng as a globally competitive city-region has thus become one of the key objectives of the province’s 2005 Growth & Development Strategy.

The objective of the strategy is to “build Gauteng as an integrated and globally competitive region, where the economic activities of different parts of the province complement each other in consolidating Gauteng as an economic hub of Africa and an internationally recognised global city-region.”

• GAUTENG STRATEGY FOR SUSTAINABLE DEVELOPMENT, AUGUST 2006

There are two key challenges to sustainable development in Gauteng – on the one hand there is poverty and unemployment, while on the other hand there is an unsustainable pattern of production and consumption. The Gauteng Strategy for Sustainable Development (GSSD) is a strategy that outlines a best option for sustainable development for the Gauteng Province. The strategy attempts to create a synergy between the primary developmental focus in the province of economic growth and social equity with environmental issues and concerns (based on the realisation that continued growth can only be realised with a sustainable energy system).

Clear targets and priorities have been set for the Gauteng Provincial Government in order to become an “economically productive, socially just, globally competitive region that manages and utilises resources sustainably.” Importantly, these priorities are linked to the priorities of the Gauteng Province as defined in the 2014 planning process. In respect of energy the priorities are as follows:

o Reduce use of non-renewable based energy sources

o Increase use of alternative fuel sources

o Promote efficient energy use

o 10% renewable energy use by 2015

The Gauteng Strategy for Sustainable Development State of Play Report provides an overview of the Status Quo of Sustainable Development in the Gauteng Province. There are numerous achievements but also many challenges:

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o Uneven distribution of wealth, education, health care, energy, waste services, housing, water and sanitation facilities in the Province, coupled with the proximity of


many residential areas to unhealthy/hazardous areas which has resulted in health and safety risks to communities and potential degradation and pollution risks to sensitive environments.

o High levels of informal settlement within the Province, with approximately 30% of the population residing in such areas.

o Significant backlogs in basic service provision, housing and public amenities.

o Reliance on non-renewable resources for energy production and the lack of viable energy alternatives.

o Achieving ASGI-SA growth targets while sustaining energy and water utilisation and without compounding increases in waste/pollution.

o Reliance on private modes of transport (i.e. cars) and the need to improve accessibility to an affordable, integrated public transport system.

o Pollution levels and high volumes of waste produced within the Province.

o Air pollution (with Johannesburg being rated fifth worst in the world).

o The viability of land for agricultural crop production is being compromised through soil contamination and degradation as a result of effluents from the industrial and manufacturing sector.

o High rate of immigration into Gauteng. Immigration is associated with increasing informalisation and growing service delivery backlogs (social instability/ marginalisation).

• GAUTENG PLANNING AND DEVELOPMENT ACT, 2003

The Planning and Development Act is an important piece of legislation as it attempts to provide for a single system of development, planning and land management in the province. The Act applies in the preparation and administration of plans including integrated development plans, spatial development frameworks, land development policies and zoning schemes. More importantly it tries to develop good cooperation and coordination between the different spheres of government.

• GAUTENG CLIMATE CHANGE RESPONSE STRATEGY - BACKGROUND DOCUMENT, NOVEMBER 2008

The Gauteng Climate Change Response Strategy will be completed in 2010. The background document was used for this report. The document states that at the centre of the national and provincial challenge is South Africa’s dependence on an abundant supply of cheap coal to supply the country’s energy needs. The strategy identifies as the province’s primary challenge - the greenhouse gas emissions linked to industrial activities and the use of fossil fuels. The purpose of Gauteng’s Climate Change Response Strategy is thus to coordinate a response for the province that promotes action against climate change – but action that does not affect or impede economic growth.

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As the strategy is finalised, a number of options will be explored including mechanisms to reduce greenhouse gas emissions, energy efficiency principles, and the generation and use of renewable energy. The strategy has identified the importance of the Province fostering commercial opportunities associated with this global energy revolution. Finally the strategy will also assess the vulnerability of the Province to the impacts of climate change.

The key objectives of the Strategy include the following:

o To change Gauteng’s energy and carbon profile and ultimately to meet the South African national goals, as outlined in the LTMS document of “peaking carbon emissions by 2020 and bringing them down sharply starting in 2030.”

o To create high levels of preparedness and resilience for the inevitable impacts of climate change.

The process will involve stakeholder workshops to engage with different stakeholders in the Province with the hope of developing a “shared vision for the Province and to ensure that from the beginning, the Gauteng Response Strategy is robustly constructed and practical, while still allowing for ongoing economic growth and development.” The main themes of the strategy include:

o Greenhouse gas emission reductions and limits

o Build on, strengthen and/or scale up current initiatives

o Implementing the “Business Unusual” Call for Action

The background document suggests that a consolidated provincial response is needed, as currently the provincial response is fragmented and the Province is under-prepared.

The Draft Gauteng Climate Change Response Strategy will be completed by 2010, after which a full programme of stakeholder negotiations and joint planning will be required to establish sector plans.

• GAUTENG SOCIO-ECONOMIC REVIEW, 2008

This is the first Socio-Economic Review (SER) by the Gauteng Treasury (GT). The purpose of the SER is to provide a detailed analysis of the socio economic indicators for Gauteng. Provincial policy objectives focus on the creation of employment and the reduction of poverty over the medium to long term. The Gauteng Provincial Government (GPG) is focused on growing the economy by 8% and halving poverty and unemployment by 2014. The SER serves as a tool in determining the potential for and constraints to economic development. Some of the socio-economic gaps and challenges identified in the Province that still have to be addressed are:

o Continued high levels of poverty and unemployment.

o Provision of permanent housing to the approximately 23.9% of households living in informal settlements and 10.5% households living in “back yards” or traditional housing.

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o Provision of education to the 8% of the Province’s population that still has no education at all.

o Provision of electricity to households for various purposes: 20% of the population still need electricity for lighting, 30% for heating purposes and 27% for cooking purposes.

o Provision of piped water to the remaining 2.5% households in the Province.

During the period between 2004 and 2006, Gauteng’s average contribution to national GDP amounted to 34%. Statistics SA reports that the Gauteng Provincial economy grew by 6% in 2006. Economic growth experienced in the Provincial economy was largely due to the growth in the secondary and tertiary sectors. In addition the SER identified the following important statistics for the Province:

o The Province had a total population of 10.5 million in 2007, representing 21.5% of the total South African population.

o The City of Johannesburg (CoJ) accounts for the largest share of Gauteng’s population and households with over 30% of the population in Gauteng residing in Johannesburg. Metsweding population accounts for the smallest share in the province with only 2%.

o Growth is mainly driven by the construction and manufacturing sub-sectors.

o Infrastructure projects like the Gautrain Rapid Rail-link (Gautrain) and the preparation for the 2010 World Cup are also contributing positively to this sector’s contribution to provincial GDP.

o Provincial GDP is mainly propelled by the tertiary sectors, especially finance & business services, wholesale & retail trade and community & social services. The contribution of the tertiary sectors has increased over the period under review from 70.9% to 72.8%.

The SER highlighted the important role of municipalities in delivery of basic services. These functions include the provision of housing, distribution of electricity and water, sewerage reticulation and refuse removal. It is from these services that municipalities raise revenue and incur expenses.

• GAUTENG SPATIAL DEVELOPMENT FRAMEWORK, 2007

The Framework identifies the fact that the inequality and under-development in South Africa has a spatial aspect. The Spatial Development Framework seeks to balance two structural elements – spatial equity and efficiency. It takes its lead from the National Spatial Development Perspective (NSDP). The provincial government recognizes that different parts of the province and different sectors of the community require different social security responses. The NSDP principles mean that Gauteng must:

o Identify various categories of development potential;

o Target economic infrastructure in places demonstrating growth potential;

o Investment around growth nodal areas;

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o Meet peoples’ needs in areas with low potential.

The Gauteng Province identified the need for a provincial spatial development framework given its challenges of high but unequal growth, environmental degradation, dispersed settlements, long travelling distances and differences in quality of living. Three broad challenges have been identified for the province:

o Supporting Economic Activity and Accelerating Growth

o Sharing the Growth

o Ensuring Sustainability

The Framework identifies key areas in the province that would be targeted for specific development.

• STATE OF THE ENVIRONMENT AND ENVIRONMENTAL IMPLEMENTATION PLAN

The State of the Environment and Implementation Plan is the provincial response to ensuring that the resources on which economic activity and social well being depend are used sustainably. There is a focus on the prevention and reduction of waste and pollution. Furthermore there is a focus on a rights based approach to achieving the goal of developing “safe, secure and sustainable communities”. Gauteng’s rapid economic growth and expanded social service delivery have accelerated immigration and placed increasing pressure on the environment. The growing social and environmental challenges are an increasing burden on Gauteng’s stability and sustainability.

• GAUTENG SOCIAL DEVELOPMENT STRATEGY

The Gauteng Social Development Strategy (GSDS) is a strategy for sustainable development that addresses the needs of families, households and citizens living with inadequate financial and social support networks. Promoting social development is an important pillar of the broader Global City Region Strategy. The GSDS will be implemented by all social sector role-players in government, in collaboration with organizations of civil society. This therefore provides a framework for sustainable social development to better tackle the challenges of poverty and “create future generations who are well integrated into the economic, social and cultural mainstream.”

• DEPARTMENT OF HOUSING, REVIEW ON THE PERFORMANCE ON HOUSING DELIVERY, AUGUST 2008

In the provision of decent and adequate shelter, the Gauteng Department of Housing developed a strategic plan 2004-2009 to guide the implementation of its programs. The focus has been the realization of the strategic objectives through the following key programs of the department.

o Mixed-housing Development

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o Alternative Tenure

o Urban Renewal Programme and

o 20 Prioritised Townships Programme(PTP)

The housing need in Gauteng has increased from 32.6% in 1996 to 35.3% in 2001. The population of Gauteng has increased from 7.3 million in 1996 to 8.8 million in 2001 translating to a growth rate of 20.3% over five years. Of this, 62% earn less than R3500 per month. The percentage of households residing in informal areas has increased from 24.98% in 1996 to 27.68% in 2001. There are an additional 346,000 people from the cross-border population in the peripheral areas, contributing to the stagnating improvement in the percentage of informal housing within the province. The Premier of Gauteng announced the Twenty Prioritized Townships Programme through which “government will invest an amount of R3 billion in 20 major townships in Gauteng to build better communities and upgrade local social and economic infrastructure.”

The major projects identified for implementation are the tarring of roads and the provision of good storm water management systems, provision of clean water and sanitation, street or high mast lighting, electricity supply, health, education and recreation facilities, housing, transportation, waste management, community facilities and safety, agricultural programmes and projects to improve the environment such as tree planting and the improvement of parks and waste management.

• PROVINCIAL ECONOMIC REVIEW AND OUTLOOK, 2007

The Gauteng Provincial Treasury (GPT) presented its first Provincial Economic Review and Outlook (PERO). The purpose of the PERO is to provide an in-depth analysis of the regional economy, labour markets and the socioeconomic challenges within the province. This document primarily focuses on the sectoral description of the Gauteng economy and future prospects of the province as outlined in the Gauteng Growth and Development Strategy (GDS).

The PERO 2007 consists of four chapters. Chapter one outlines the economic outlook of the country and of the province. Chapter two unpacks the structure, composition, trends and positioning of each sector in the regional economy. The three sectors of the economy: primary, secondary and tertiary are analysed to show the importance of each towards the total production output in the province. Chapter three focuses on the challenges within the labour market in the province, mainly the high unemployment rate and the prevalence of high levels of poverty. Chapter four unpacks the issue of equity in the province. The high unemployment rate that exists in the province and the country as a whole has led to the unequal distribution of income and expenditure in South Africa.

4.3 Conclusion The above list is not an exhaustive list but highlights some of the main documents that have been used to develop sector responsibilities. . Most of the policies, strategies and plans are sector specific and departments have initiated projects related to their strategies. For instance;

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• GDACE has been involved in retrofitting 3 GPG buildings and one hospital

• DPTRW has begun a SWH rollout to schools, clinics and hospitals, and a number of energy related interventions in government buildings including the installation of metering equipment and timers

• Social Development has been involved in the 20 PTP projects and upgrading old age homes

• Sports is involved in construction of stadia for 2010 and looking at EE measures

• GEDA has links with the EnerKey project and have a RE commercialisation strategy - expected to be completed by December 2008.

• Eskom has DSM Projects in Gauteng relating to load management largely in the commercial sector and CFL rollouts to both corporate and residential sectors.

The above set of policies and reviews points to a number of key implications for the energy future of Gauteng, including:

• The province is targeting high economic growth. Such growth cannot be sustained with an unsustainable energy system, and therefore this places added emphasis on the need for energy efficiency and clean energy supply to be promoted as a matter of urgency to support this intention.

• Poverty remains a key focus and significant challenge, and thus energy planning needs to address access to clean and healthy sources of energy, with a particular focus on energy poverty in the informal sector, where no effective and sustainable delivery models for energy services yet exist.

• Unemployment requires urgent attention. Various energy technologies can provide significant employment opportunities, and Gauteng should look to maximising the manufacture and utilisation of such options (e.g. solar water heaters).

• The current spatial development layout results in expensive and polluting transport systems and an unsustainable emphasis on private vehicle use. They also affect the cost of living and ability to participate in the economy for poor households. In particular public transport systems need to be looked at in conjunction with improved spatial frameworks.

• The province is starting to recognise and plan for climate change issues, including mitigation and adaptation. This will inevitably require a significantly different energy system – even in the short-term.

One of the key challenges for province is the fact that there is no mechanism in place to ensure that the various stakeholders and role-players interact and coordinate with one other, share information on what they are doing, report and monitor initiatives in a coordinated and consistent way.

There is a need for better coordination between the different government departments as well as between the various tiers of government to avoid a lack of integration and

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coordination. Consequently, this lack of coordination and integration leads to duplication of efforts and initiatives and could be deemed as wasteful. It is envisaged that the Gauteng Integrated Energy Strategy will foster linkages and integration with all relevant stakeholders at a national, provincial and local level.

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5 MUNICIPALITIES TRENDS, PLANS AND STRATEGIES

This chapter highlights key sustainable energy and climate change initiatives undertaken at the city/municipal level. Over the last decade substantial city energy development work has been undertaken and led by the larger cities. While a number of energy related programmes are underway within the 12 municipalities that make up the Gauteng Province, there remains much variation between individual municipalities in terms of projects being carried out. For instance, as the report below shows, while some municipalities have developed energy plans, a number of others have not yet done so, rendering it difficult for Province to make a case for its overall impact both on energy savings as well as on meeting the national energy savings targets. This is in part due to the disparate configuration of municipalities with regard to size, human and financial resources, highlighting further the need for an integrated energy strategy and implementation plan.

Gauteng is made up of six regions being:

• Red: City of Johannesburg Metropolitan Municipality

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• Blue: City of Tshwane Metropolitan Municipality

• Green: Ehurhuleni Metropolitan Municipality

• Purple: Metsweding District Municipality

• Turquoise: Sedibeng District Municipality

• Yellow: West Rand District Municipality

Metsweding has the following two local municipalities:

1. Nokengtsa Taemane Local Municipality

2. Kungwini Local Municipality

West Rand has the following four local municipalities:

3. District Management Area of the West Rand District Municipality

4. Mogale City Local Municipality

5. Randfontein Local Municipality

6. Westonaria Local Municipality

Sedibeng has the following three local municipalities:

7. Emfuleni Local Municipality

8. Midvaal Local Municipality

9. Lesedi Local Municipality

The remaining three regions comprise the three large metros; Johannesburg, Tshwane and Ekurhuleni. This next section looks in some detail at what is happening within the different municipalities and then moves on to consider the issue of energy poverty within the Province.

5.1 The Municipal Picture The City of Johannesburg Metropolitan Municipality (CoJ)

The CoJ has recently compiled its State of Energy Report and this has been approved by the city council. It has yet to develop a city energy strategy and implementation plan. CoJ has positioned itself as a lead city on the issue of climate change and has a climate change strategy. The Mayoral Committee has a dedicated Climate Change Subcommittee which scrutinises all reports for council to ensure that they are compatible with the city’s Climate Change Strategy. In terms of spearheading energy related issues, the City’s department of environment has been identified as a lead office.

In terms of demand- side management, CoJ has implemented several energy efficient lighting projects which include CFL roll-outs; fitting of motion sensors; installation of LED

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traffic lights; energy efficient lights, and solar traffic lights. Other energy efficient interventions underway include fuel switching (from electricity to LP Gas, mainly for cooking); ripple control, and smart metering.

Also the city is promoting the use of LP Gas supplied by eGoli Gas and the harnessing of energy from renewable sources such as landfill sites.

Existing climate change initiatives:

Landfill Gas-to-Energy: Capturing and utilisation of methane from metro landfills for energy provision- evaluation underway

• SWH installation: installation of solar water heaters in Cosmo City to 171 low income homes

• Climate change vulnerability assessment: This involves identifying key vulnerable sectors within the city, assessing potential adaptation mechanisms that could be implemented to reduce the impacts and exploring how climate change may affect sustainable development within Johannesburg.

• Solar Streetlight Township Electrification Programme: City Power installed approximately 20 solar street lamps in Zandspruit.

• Greening Carbon Sinks Project: 200 000 trees will be planted by 2010; to date 60 000 have been planted and 80 % of these are in the southern part of the city.

Clinton Climate Initiative:

The Clinton Climate Initiative (CCI) has committed substantial funding and technical support to help Johannesburg become an energy-efficient, environmentally friendly city. CCI is a partnership between the Clinton Foundation and the Large Cities Climate Leadership Group (known as the C40), which aims to take practical and measurable steps to reduce greenhouse gas emissions and increase energy efficiency in large cities across the world. The foundation provided a grant to hire the Institute for Transportation Development and Policy (ITDP), a leading international organisation promoting environmentally sustainable and equitable transportation worldwide, to develop and design an operational plan for a bus rapid transit system in Johannesburg, officially known as Rea Vaya. In July 2007, the City launched its energy efficiency programme, which includes the Rea Vaya Bus Rapid Transit system, the Energy Efficiency Building Retrofit Programme, and the Solar Streetlight Township Electrification Programme. The latter two are in pilot phase. The development of Rea Vaya currently underway will provide 122 km of rapid bus lanes. The first phase of this project includes a 42 km distance between Regina Mundi and Sunninghill via Parktown, and is expected to be operational by 2010. According to the ITDP progress report on the partnership, Rea Vaya is expected to eliminate 311 586 metric tons of carbon dioxide emissions from the current 'do nothing' scenario. This saving will increase to 1,616,375 metric tons by 2020 had the project not been implemented.

Harnessing gas from five landfill sites to produce electricity and deriving carbon revenue from such a project:

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The City is about to embark on its first landfill-gas-to-energy project, which will also be the first notable Clean Development Mechanism (CDM) project generating substantial carbon credits for the City to use for trading. The due diligences for Linbro Park, Marie Louise, Robinson Deep, Goudkoppies and Ennerdale landfills were concluded in March 2008, proving that all the sites have enough potential quantities of landfill gas to generate electricity. Landfill-gas-to-energy CDM projects will be initiated at all five sites. A consortium headed by ENER•G Systems Johannesburg has been appointed by the City to take the process forward. Johannesburg and ENER•G Johannesburg will share the profits resulting from the sale of carbon credits and electricity. The sites have the potential to generate as much as 25 MW of electricity over a period of 15 to 20 years. The rate of gas production however is dependent on a number of conditions, including the age and composition of the waste, the temperature and moisture content of each site as well as the design and operation of the site.

DANIDA-funded Urban Environmental Management Programme (UEMP):

CoJ is among the four UEMP funded cities that have been provided with an additional R15 million from DANIDA to catalyse implementation and scale up carbon emissions reduction impacts. To this end, key projects underway are;

• Climate proofing of urban communities through implementing a range of sustainability interventions in a low income housing development in an effort to build climate change resilience in urban communities, through making households more energy efficient, reducing natural resource consumption and improving quality of life of the poor.

• Implementation of domestic fuel burning emissions reduction measures in low income households (using a method that enables households to burn coal efficiently reducing harmful emissions) creating a much safer and healthier environment for communities.

Sustainable Energy Africa’s Urban SEED Programme provides CoJ with technical and facilitative support essential for the implementation of the above projects.

Climate Change and Building Efficiency initiatives

The city has embarked on three strategies to address climate change and building efficiency. The first involves self regulation by the property industry and the application of the City’s “Design Guidelines for Energy Efficient Buildings”. These guidelines developed by CoJ in partnership with CSIR assist architects and property developers to include energy efficiency measures in their planning. The second includes the enforcement of legislation, in particular the National Building Regulations, while the third involves the inclusion of energy efficiency criteria to land use applications. To this end CoJ and CSIR are developing criteria for the promotion of “Energy Efficiency in Land Use Development”. In addition, it is important to note that the city also has a Sustainable Housing Policy for low-income housing developed through funding by DANIDA

City of Tshwane Metropolitan Municipality (CTMM)

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CTMM has an official council-approved State of Energy Report and an Energy and Climate Change Strategy and Implementation Plan. The city’s energy vision is: ‘to be an energy smart city of excellence’. Its mission is: ‘to enhance the quality of life of all the people in the City of Tshwane through a development system of local government and the rendering of efficient, effective and affordable services.’ The strategy and implementation plan is guided by four key pillars;

Sustainability: To enhance energy sustainability, accessibility and affordability to residents and the municipality

Cleaner, more efficient and diverse energy use and supply: To encourage and promote a shift to cleaner (emitting less pollutants and greenhouse gases ), more efficient and diverse energy use and supply.

Economic growth and development: To support economic growth and development in CTMM, especially in the north, through smarter energy use

Innovation: To encourage the development and use of innovative tools, products and solutions for energy use

The following targets have been set in order to achieve cleaner, more efficient and diverse energy use and supply:

• 10 CDM/carbon offset projects identified by 2006 for implementation by 2010

• All incandescent lighting in CTMM and national government buildings to be replaced with energy-efficient lighting by 2015

• 15% reduction in energy demand in government buildings by 2012

• 10% improvement in HVAC efficiency by 2010

• 100% of CTMM vehicle fleet equipped with catalytic converters by 2007 (in alignment with national manufacturing and import policies)

• Procurement policy for all local authority vehicle fleets to include energy efficiency as additional criterion

• 50 % of diesel fleet to operate on biofuel by 2010

• No new electrode boilers in CTMM after 2007

• All electrode boilers replaced by natural gas or biomass-fuelled boilers by 2015.

• Vehicle flow improved by 40% by 2010

• 10% of CTMM electricity demand being met by local renewable sources by 2010

• 50% of eligible landfills producing electricity cost-effectively from methane by 2010

• Reduce the number of links in the road network with a volume/capacity ratio of greater than 90%.

• 50% gas reticulation of middle-income areas by 2010

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• 50% of CTMM homes have cleaner/RE energy supported through subsidies available from the DME Renewables Subsidy Office by 2010 (in accordance with their targets)

Sustainable energy and climate change activities in CTMM are led and coordinated by the Energy and Electricity department. The city has embarked on numerous demand side management programmes focussing on efficient lighting. These include inter alia CFL roll-outs; installation of LED traffic lights; fitting of energy efficient street lights; as well as solar traffic lights. Moreover, the city is also piloting the provision of alternative forms of energy such as LP Gas to poor households (about 500 poor households) in Winterveld Ten Morgen as well as to 20 000 households in Attridgeville areas. Plans for the extraction of energy from landfill sites are ongoing. Plans are also afoot for the mass implementation of solar water heaters and smart metering systems, and preparations are in progress for the city’s Bus Rapid Transport system. Other current projects include: developing a low-cost housing energy efficiency project - Tshwane/Basel CDM Housing; EnerKey- Landfill methane recovery; Green-goal2010 greening, Green-staySA accommodation sector greening, and public transport month.

City of Ekurhuleni Metropolitan Municipality

The city has compiled both a State of Energy Report and an Energy, Climate Change Strategy and Implementation Plan. The city’s energy vision is: ‘All people have access to affordable, safe, healthy and modern energy services’. It hopes to achieve this by inter alia promoting universal access to energy services throughout urban areas; provision of energy services and infrastructure to meet the needs of all its residents according to the ‘avoid, reduce, replace’ hierarchy; creation and promotion of sustainable human settlements that use energy in a safe and sustainable manner, and through the reduction of energy-poverty related diseases.

• One of the city’s visions is to ensure that energy supports the local economy through the promotion of economic competitiveness, improvement of employment opportunities, efficient use and management of energy, as well as through the use of energy in a sustainable manner. To achieve this, the city intends to improve economic efficiency and sustainability of all sectors according to the hierarchy: avoid energy use; minimise use through efficiency, and replace energy options with cleaner alternatives. The city expects the government to exhibit good governance and lead by example by improving energy efficiency, as well as maximizing employment opportunities and facilitating skills development in the energy sector, especially relating to energy efficiency, demand-side management and renewable energy.

• A further vision is to ensure that all its residents have access to affordable, safe, healthy and modern energy services. This it seeks to achieve by creating and promoting sustainable human settlements that use energy in a safe and sustainable way (through smart and creative urban planning, energy efficient housing, integrated transport and urban greening).

The Electricity and Energy Unit is the dedicated energy champion office for this municipality and is responsible for the implementation of the Energy and Climate Change Strategy. In as far as demand-side management is concerned, the city has embarked on a CFL roll outs,

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installation of motion sensors, LED and solar traffic lights, as well as energy efficient streetlights. On energy efficient buildings side, the city has embarked on the installation of ripple controls and smart metering. Additional projects underway or being explored include:

• Council building energy audits and retrofits: Energy audits assess when and where improvements can be quantified in city buildings in terms of both energy and cost savings. Retrofitting of council buildings include the replacement of incandescent light bulbs with CFLs;

• Installation of an Energy Management System technology in two council buildings for real time building energy use and management;

• Conversion of vehicles to natural gas;

• Construction of an energy efficient office building: the city plans to build a council building based on energy efficiency guidelines to serve as a prototype for all subsequent buildings planned for the future;

• Climate Change Vulnerability and Adaptation Study: this investigation seeks to identify areas where the city is most susceptible as a result of climate change, and to recommend relevant responses;

• EnerKey Module 6 – Climate Protection and CDM: this is a capacity building programme which is aimed at bringing all Gauteng municipalities up to speed with making use of CDM funds for climate projection initiatives. Workshops in this regard are scheduled for March 2009.

• Energy and Climate Change Strategy implementation: This is another capacity building initiative aimed at assisting municipalities to implement the Energy & Climate Change Strategy.

City of Ekurhuleni targets:

• LED signals for 20% of traffic lights by 2010, 100% by 2015

• Increased vehicle energy efficiency of local government fleet by 2011.

• Commence with the use of cleaner fuels for vehicle fleet and install a tank for refuelling by 2011.

• Government efficient lighting: all incandescents replaced with CFLs by 2010

• Accessible CFL disposal system to be put in place by 2010

• Reduce energy consumption by at least 5% in all municipal operations by 2010

• Key staff in City departments (Environmental Development, Transport, Building Maintenance, Electricity, MI, Solid Waste) to have undergone capacity building around EE, RE and/or DSM by 2008

• Approved green procurement policy by 2010

• Approved green building policy by 2008.

• Reduction in GHG emissions of 10% by 2015

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• Video conferencing available to all staff by 2008.

• Target training to the value of 1000 NQF points around energy efficiency to be delivered to staff in all departments involved with energy efficiency matters by 2012.

In terms of progress in meeting these targets capacity building has occurred to some extent, however video conferencing and green building policy have not been achieved as yet. Currently no monitoring system is in place. Achievement of targets still requires ongoing support from the SEED programme.

Ekurhuleni Metro Municipality Projects:

A number of existing energy-related projects are underway in Ekurhuleni.

• An internet-based metering system is being established to monitor energy use within municipal buildings as well as commercial and light industrial users.

• An electricity and water audit of all customers’ needs and use is currently being undertaken by the Municipal Infrastructure Department, which is expected to significantly improve the database as well as statistics for the City to address energy issues.

• The Metro is underway with ongoing installation of on-board computer systems within the council owned vehicle fleet. This enables accurate measurement of fuel efficiency and allows for improved management of vehicle fleet fuel consumption.

• An aggressive marketing campaign is in progress in Ekurhuleni to inform customers on energy efficiency matters.

Metsweding District Municipality

No project report on energy related issues has been made available as yet, and the municipality’s 2008/2009 IDP is silent on energy related matters.

Noekeng Tsa Taemane Local Municipality (NTTLM)

NTTLM is a category B municipality (category B municipality refers to those municipalities that fall under the executive and legislative authority of a district) within the jurisdiction of Metsweding and has neither a State of Energy Report nor an Energy Strategy and Implementation Plan. The municipality’s 2007/2008 IDP is silent on energy related issues. In its report on energy related issues to the Department of Local Government, the municipality has indicated the following initiatives in terms of its demand-side management: CFLs roll out; installation of motion sensors, LED and Solar traffic light, as well as energy efficient lights. The municipality has embarked on the installation of ripple controls to help towards energy efficient buildings.

Kungwini Local Municipality (KLM)

KLM is also a category B municipality within the jurisdiction of Metsweding and has neither a State of Energy Report nor a Strategy and Implementation Plan. Its 2008/2009 IDP is silent

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on issues related to energy. In its recent report on energy related projects, particularly in terms of demand-side management, the municipality reported that it has embarked on a CFL roll out and installation of LED traffic and energy efficient streetlights.

West Rand District Municipality

This municipality has neither a State of Energy Report nor an Energy Strategy and Implementation Plan. No information concerning the municipality’s current or planned energy related initiatives has been reported by the Gauteng Department of Local Government. In the 2008/2009 approved IDP, under service delivery and infrastructure development, the municipality intends to contribute R11 million towards supporting energy efficient capital projects in the constituent local municipalities such as Mogale City, Randfontein and Westonaria.

Mogale City Local Municipality (MCLM)

The only reference to energy or climate change made in MCLM’s Integrated Development Plan (IDP) - 2008/09 relates to their Greening Project, planting 2000 trees in Mogale city, and this is funded from the Operational Expenditure Budget (OPEX). This municipality has neither a State of Energy Report nor an Energy and Climate Change Strategy.

Randfontein Local Municipality (RLM)

The closest reference to energy or climate change made in RLM’s Integrated Development Plan (IDP) - 2008/09 relates to their Air Pollution Project, which is intended to measure the ambient air quality in Randfontein. RLM has compiled neither a State of Energy Report nor a Strategy.

Westonaria Local Municipality (WLM)

On its website, WLM only has a first 2007/12 IDP review wherein there is mention of the municipality’s intention to accelerate the building of infrastructure with greater emphasis on energy efficiency and to motivate communities to use alternative energy sources for cooking purposes e.g. gas, coal, wood, etc. This municipality has compiled neither a State of Energy Report nor a Strategy.

Sedibeng District Municipality (SDM)

SDM is yet to compile its State of Energy Report and Strategy and Implementation Plan. In its 2008/9 IDP mention is made of putting in place a number of projects and plans to assist the region in addressing energy issues. Projects identified for implementation (as a direct response to Government’s request to reduce electricity consumption by 10%) include: the installation of solar traffic lights at major road intersections (in partnership with the National Energy Efficiency Agency); performing energy audits of local government buildings in the region to identify energy efficiency interventions which can be implemented quickly and effectively. These audits will use funds from the Danish donor organization DANIDA through its Urban Environmental Management Programme of which Sedibeng District Municipality is a partner; supporting local businesses in accessing the government incentive schemes

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supporting energy efficiency and the use of renewable energy sources. This would include the sourcing of funds for the undertaking of energy efficiency audits in businesses, as well as supporting feasibility studies for the development of further generation capacity and investigating the possibility of introducing “Green Building” standards into the region. This would include energy efficiency standards. A report on energy related projects that are underway is still outstanding.

Emfuleni Local Municipality

This municipality has neither a State of Energy Report nor a Strategy and Implementation Plan, and its IDP 2007/2008 makes no reference to energy related issues. In their recent energy project report this municipality indicates that in terms of demand-side management, they have embarked on the installation of LED traffic and energy efficient streetlights. Also, in as far as energy efficient buildings are concerned, the municipality is involved in the installation of ripple controls. The municipality has embarked on the capturing and utilization of methane from the city’s landfills for energy provision.

Midvaal Local Municipality

This municipality’s project report on energy related issues is still outstanding. Its 2007/2008 IDP is silent on energy issues. Also, it has neither a State of Energy Report nor a Strategy and Implementation Plan.

Lesedi Local Municipality

A State of Energy Report and a Strategy and Implementation Plan are yet to be compiled for this municipality. Its latest IDP is not available on its official website. Nevertheless, in a recent report on energy related projects it is stated that there is an energy plan and budget available. In terms of demand-side management, the municipality is involved in CFLs roll out; installation of motion sensors; installation of energy efficient HVAC systems and after-hour shut downs, as well as ripple controls. In addition, the municipality is also involved in energy auditing its buildings.

5.2 Conclusion In compiling a state of energy report on each municipality an energy questionnaire was sent out in order to obtain a picture of what projects are underway and what is planned at municipal level throughout Gauteng Province. At the time of writing not all municipalities had submitted the information requested, according to our records responses were received from all but 4 municipalities, in which case some of this information may not be completely current.

However, it is clear from this brief report that the three metros have far more in place than the smaller municipalities which is not surprising particularly as each has a dedicated energy champion through individuals and offices. Ekurhuleni and Tshwane are the two metros that have compiled an energy strategy and have dedicated energy offices developing clear projects and targets. Johannesburg also has a lead office and this has been institutionalised through their Section 79 Mayoral Committee on Climate Change. This is important in terms

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of spearheading the work that has been started. Tshwane was the first municipality in the region to appoint a SEED advisor as well as establish an interdepartmental Sustainable Energy Team (SET). It is generally accepted that it is through a champion that energy begins to take on a higher profile within cities. Energy issues need to cut across all city sectors and it is through the work of a champion that some cohesion, coordination and implementation can take place. In fact the smaller municipalities identified the lack of a driver or departmental driver as impacting negatively on their ability to take energy issues forward.

Furthermore almost all municipalities indicated that they are hampered by lack of funds to adequately deal with these issues. Another constraint identified was coordination and a general lack of capacity which impacts hugely on the ability to take initiatives forward. Thus both funding and capacity affect delivery as well as awareness campaigns and overall education. It was noted that more has been achieved on the energy efficiency side than developing renewable energies again largely because of funding. In addition there are clear differences between districts and local government around specific responsibilities and mandates. Very few municipalities have undertaken energy audits or have access to comprehensive and comparable data on energy use.

In terms of energy poverty it is clear that the province is faced with many challenges which are being addressed by some of the provincial policies and strategies in place. Good statistics and data collection could assist in obtaining a clear picture. Studies undertaken at Imizamo Yethu township in Cape Town by the Energy Research Centre at UCT31 have shown that using electricity for cooking is much cheaper than using other fuels such as paraffin and LP Gas despite electricity increases. Yet of those households that are electrified it was clear that many people were not aware of the cost differentials and continued to use a mix of fuels. Thus information and education become crucial with regard to choices and access to different energy forms.

We now turn to look at an initial energy profile of Gauteng Province in relation to both demand and supply sectors.

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31 Bill Cowan, ERC, presentation at UNEP workshop on Enhancing Energy Access in Rural and Peri-urban settlements, May 2009


6 BASIC DRAFT ENERGY PROFILE OF GAUTENG PROVINCE

This basic draft energy profile aims to give readers an overview of the energy balance of Gauteng Province by sector as well as by fuel type and aims to distil the relevant information from this. It also provides some of the raw data used for researchers to use in further analysis and study, this will be done by giving a more detailed energy use breakdown by sector and energy carrier where possible.

Overall the largest energy consumption comes from the industrial sector accounting for 44% of the total energy use, with transport and residential sectors using 36% and 16% of total demand respectively.

Figure 6: Energy demand by sector

The chart below outlines the final demand by fuel type and one can easily see that the largest energy carrier is coal (35%) and the vast majority of this is used in the industrial sector, which helps explain the dominance of the industrial sector in terms of energy use in the province.

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Figure 7: Energy demand by energy carrier

Analysis and Methodology

The system of analysis used was centred on energy demand using the Long-range Energy Alternatives Planning System (LEAP) software from the Stockholm Environmental Institute in Boston. This tool is classified as an energy accounting framework that allows effective energy data analysis in a flexible form with opportunity to create, explore and analyse scenarios in a more graphically intuitive way. Modelling assumptions and parameters will be detailed in the final energy profile.

6.1 Data acquisition Data sources

The key data sources are Stats SA, SAPIA32 and a range of personal communications with experts on the data. The data collected at this stage has largely been from the metropolitan municipalities. This data has been further categorised such that sector and sub-sector energy use could be derived.

Currently only the metropolitan municipal electricity distribution data is available by tariff. Eskom distribution coexists with municipal distribution in the province but this was not made available and estimates of this usage were made from historical data.

Gas in Gauteng is supplied by Sasol gas and Egoli gas and the data was obtained directly from these suppliers.

32 South African Petroleum Industry Association

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Coal use was originally estimated and extrapolated from data supplied through the state of energy reports of the metropolitan municipalities from 2005. This however fell short of expectations and data from past national energy balances carried out by the then Department of Minerals and Energy were used to supplement this study.

6.2 Energy Balance The energy balance shown in the table below yields estimates of energy use by sector and energy carrier in Gauteng.

Table 1:Energy balance for GautengProvince (PJ)

Electricity Diesel Petrol Coal Natural Gas Parrafin LPG Total

% of Total

Residential 69.5 0.0 0.0 32.7 0.0 3.7 0.4 106.3 16.2%Government 4.2 0.0 0.0 0.0 0.0 0.0 0.0 4.2 0.6%Commerce 26.1 0.0 0.0 0.0 0.0 0.0 0.1 26.2 4.0%Industry 59.1 7.9 0.0 194.3 25.0 0.0 0.0 286.3 43.7%Passenger Transport 5.7 9.4 121.4 0.0 0.0 0.0 0.0 136.5 20.8%Freight Transport 4.5 69.8 21.5 0.0 0.0 0.0 0.0 95.8 14.6%Total 169.1 87.1 142.9 227.0 25.0 3.7 0.5 655.3 % of Total 25.8% 13.3% 21.8% 34.6% 3.8% 0.6% 0.1%

6.3 Energy Demand by Sector Residential

Energy Demand in this sector is categorised into three sub-sectors: mid-high income households (HiHH), low income electrified households (LoHH) and low income non-electrified households (LneHH). Low income households are classified as households with an annual income of under R38 400. It was assumed that households that were not using electricity for lighting were low income non-electrified. The following table shows the total energy consumption of households in the income groups as well as the total energy demand per residential end-use.

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Table 2: Residential energy consumption by income group and end-use [PJ]

HiHH LoHH LneHH Total Space Heating 2.6 11.1 18.1 31.8 Lighting 6.1 5.2 0.1 11.4 Cooking 6.0 2.8 6.9 15.7 Water Heating 21.4 6.0 0.0 27.4 Refridgeration 6.2 1.6 0.0 7.8 Other 7.8 4.5 0.0 12.3 Total 50.1 31.2 25.1 106.4 % of Total 47% 29% 24%

Table 3: Residential energy consumption by income group and energy carrier [PJ]

HiHH % LoHH % LneHH % Electricity 49.0 97.6% 20.5 65.9% 0.0 0% Coal 0.3 0.6% 9.9 31.8% 22.5 90% Kerosene 0.5 1.0% 0.7 2.3% 2.5 10% LPG 0.4 0.8% 0.0 0.0% 0.0 0% Total 50.2 31.1 25

Industry

The industrial sector data is inconsistent across the sub-sectors and their end uses. Industrial energy demand was instead derived from the final energy and proportioned as shown in the table below.

Table 4: Industrial energy consumption by energy carrier [PJ]

Energy Carrier PJCoal 194.3Diesel 7.9Electricity 59.1Natural Gas 25.0Total 286.4

Commerce

Data for the commercial sector was not easily accessible and almost no consistent disaggregation between sub-sectors was available. The overall energy consumption was therefore based on available data on current floor area used in the commercial sector (m2) available from StatsSA. Generic energy intensities per m2 were then used to disaggregate total energy consumption into end-uses.

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Table 5: Total energy use in the Commercial sector by end-use[PJ]

End-Use PJ Cooling 10.1Space Heating 0.1Lighting 9.3Other Thermal 2.3Other Elec. 3.2Water Heating 1.2Total 26.2

Transport

Transport has been split into two main sectors with various sub-sectors namely, Passenger Transport and Freight Transport.

Passenger Transport

Passenger transport is split further into public and private transport with public transport further disaggregated into transport by rail, bus and taxi. Private transport could not be disaggregated with the available data so all private transport was grouped together. The table below summarises energy use by sub-sector as well as fuel type.

Table 6: Passenger transport energy use by sub-sector and energy carrier [PJ]

Bus Rail Taxi Private Total Diesel 5.3 0.0 0.0 0.0 5.3 Electricity 0.0 5.7 0.0 0.0 5.7 Petrol 0.0 0.0 15.5 105.8 121.3 Diesel 0.0 0.0 0.0 4.1 4.1 Total 5.3 5.7 15.5 109.9 136.4

Freight Transport

Freight transport is divided into road and rail freight sub-sectors. The table below summarises energy use by sub-sector as well as fuel type.

Table 7: Freight transport energy use by sub-sector and energy carrier [PJ]

Road Rail Total Diesel 69.0 0.8 69.8Petrol 21.5 0.0 21.5Electricity 0.0 4.5 4.5Total 90.5 5.3 95.8

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6.4 Summary Overall, the following broad implications for the strategy can be identified from the data profile:

• The industrial sector is the largest energy consumer and is heavily dependent on coal and electricity, and is also the second largest user of liquid fuels and therefore will be seriously affected by any price increases or constraints on carbon emissions from particularly coal-based generation. Sustainable sources of electricity for this sector should also be prioritised if growth is to be achieved.

• Energy use in the transport sector is also very significant, and therefore the dependence on liquid fuels, which are partly susceptible to international instability in prices and other issues linked to the inevitability of ‘peak oil’. This relatively high consumption also probably reflects the inefficiency of the transport sector (typical of South African cities) due to inappropriately designed, sprawling urban layout and lack of attention to public transport. It is important that both the sustainability of the energy sources for this sector, and the efficiency of use be addressed if economic growth is to be sustained.

• Households, particularly high income households, are the largest users of electricity in the province and electricity saving interventions should be prioritised here, particularly in hot water heating. A large portion of households experience either energy poverty or use hazardous fuels. The fact that poverty is a major focus of the provincial government, and that addressing this problem will mean that the domestic sector proportion of energy will increase. Sustainable energy planning and implementation in the household sector is therefore also critical.

Finally it is noteworthy that the energy data availability on a provincial basis is very limited or incomplete, and this affects the ability to analyse current situation and look to the future. This situation may need to be addressed.

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7. DRAFT VISION AND BROAD STRATEGIC OUTLINE

7.1 Draft Vision As outlined in the report international, national and provincial trends all have a common focus in prioritising sustainable development for all and cautioning that the uncontrolled growth in greenhouse gas emissions will ultimately undermine sustainable development. For the purposes of this report sustainable development is understood to be “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”33. Development is constantly moving and changing over time – it is not static and nor does it have an end goal. This report concurs with Winkler34 that for South Africa the focus needs to be on development, but in such a way that it takes into account sustainability from an environmental, social and economic perspective and to this end will have impacts on climate change and poverty alleviation. It therefore becomes imperative not to focus on one aspect in isolation but to look at the issues holistically, where they overlap, where the differences lie and which areas need to be emphasised or given priority.

There are many policies, frameworks and strategies in place at national, provincial and local levels. Whilst these documents are laudable and give grounding and understanding to the work that needs to be done, there is some repetition and lack of coordination overall. The purpose of the Gauteng Integrated Energy Strategy should be to bring all these initiatives together in such a way as to enable change to happen in a comprehensive, realistic, collegial and collaborative manner. The strategy should be based on delivery targets that are attainable in the short term, partly to deal with the current electricity crisis and partly to pave the way for longer term changes and targets as put forward by many of the documents such as the Long Term Mitigation Scenario document which was accepted in July 2008.

Before embarking on its strategy Gauteng Provincial Government needs to develop a vision which will underpin and direct the emerging strategy. An initial draft vision reads:

A Gauteng province that is powered by a low carbon economy with a significant share of national “green jobs”, and accessible and affordable energy services that do not impact on the health of people or the environment.

The strategy needs to ultimately be framed by national and provincial policies currently in place and give guidance and direction to their implementation at municipal level. It should provide a thread or connection for all work taking place within the Province, thus bringing cohesion and uniformity to sustainable energy developments and projects.

The Gauteng Strategy for Sustainable Development already sets some energy goals for the Province viz to: 33 Brundtland Report, 1987. Our Common Future, World Commission for Environment & Development, UNEP 34 Cleaner Energy Cooler Climate, Winkler, H, 2008

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o Reduce use of non-renewable based energy sources

o Increase use of alternative fuel sources

o Promote efficient energy use

o 10% renewable energy use by 2015

7.2 Key Strategic Options Key Strategy

The Gauteng Integrated Energy Strategy is aimed at creating a common approach to dealing with energy challenges in the province. Thus broadly the strategy will provide the foundation for both the short and long term trajectory of Province. It will underpin the work going forward giving direction and support. More specifically the strategy will give specific targets and goals that will inform decisions into the future in terms of projects that are ongoing as well as new projects emerging.

The strategy will cover the following sectors:

• Industry and commerce, including small business

• National, provincial and local government structures and services

• Newly developed and existing residential areas

• Previously disadvantaged communities and rural communities

• Transport

• Energy supply and distribution

The strategy will focus specifically on the following areas of implementation:

• Energy efficiency measures – covering all sectors

• Developing renewable energy resources – clarifying feasibility of different resources, promoting mass roll out of Solar Water Heaters, and viable and affordable renewable energies relevant to Gauteng

• Addressing energy poverty

• Transport – building on what has been initiated, growth of integrated public transport within cities

• Education, awareness and communication at all levels

• Institutional arrangements to ensure effective implementation of the strategy

• Monitoring and evaluation and data management

Energy Office

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The Department of Local Government and Housing intends to set up and develop an energy office after the strategy is in place. The office itself could form a key element of the overall strategic objectives. The primary purpose of such an office would be to stand as the overall energy champion of Gauteng Province and in doing so uphold and coordinate the implementation of the integrated energy strategy. It would be pivotal in providing a strong leadership presence and link between the spheres of government and between its own departments, thus bringing players together, forging links between key departments and municipalities and ultimately facilitating the implementation of national policy at the local level. National government plays an important legislative and policy formulation role, while local government is responsible for the implementation of projects at local level. Province acts as the interface between the two and is thus tasked with the role of implementing national legislation as well as developing legislative initiatives at a provincial level. Whilst as stated above Gauteng government has developed a number of important policy documents, sector strategies and economic plans to ensure that the province continues to have a positive growth, there is a lack of overall coordination.

The Energy Office could therefore play a significant role in enabling alignment to take place particularly at provincial level. At a municipal level it would be important to also achieve a degree of alignment. This might not necessarily entail each and every municipality developing an energy strategy but rather developing targets and plans that are in accordance with overall provincial targets and strategy. Given the differing resources available to municipalities, the specific role of the Energy Office in each municipality will vary. It may take a consultative role or it may be more active in supporting municipalities to achieve their goals. In this respect we suggest using and adapting the work already in place. The office could coordinate a meeting of energy champions from municipal level and build a committee that oversees the work generally in terms of both policy and implementation – in other words providing monitoring, evaluation and learning which is key to ongoing change. The office would also be responsible for coordinating the collation of energy data for the province.

Finance

The financing of projects is critical in terms of where the money comes from and ongoing financial support for achieving desired targets. Currently projects are funded in different ways including CDM projects, donor funding such as DANIDA, government funding at all spheres, Eskom funding and levies. It is clear that this area needs careful consideration in order to be aligned with the vision, targets, development of future projects as well as ongoing initiatives.

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7.3 Potential Roles of Provincial Government The practical role of provinces in the energy question is framed by its current resource availability (people, time, money etc) as well as the political will and ability to see the links between energy and the varied functions it performs.

Some potential practical roles provincial government departments can play in putting Gauteng on a more sustainable energy path are listed below.

Local Government

Ensure all local governments are implementing energy efficiency interventions in their operations and measuring the impact. Based on the current work of the metro municipalities, sustainable energy strategies or plans can be developed and given to those local governments who require it. Model by-laws such as for solar water heating could also be developed and shared with local governments. Local governments could be the hub of activity for sustainable energy implementation and should be supported to do so. They have a significant role to play in communication and raising awareness with their constituency.

Environmental Management

Environmental Impact Assessments could be adapted in the following ways:

• Including energy considerations in records of decision such as mandatory energy efficiency stipulations for shopping complexes or solar water heaters on housing developments

• Under environmental management, provinces in their assessment of EIAs (which go to them in the first instance), could routinely require assessment of GHG implications, which are mostly a function of energy use and particularly energy intensity (kWh / m2; or GJ / passenger-km)

• Providing support to developers to fast track renewable energy project EIAs

• Ensuring the proper disposal of CFLs takes place in their region

• Sector specific awareness campaigns on energy efficiency and the alternatives in off-grid areas for their region e.g. agricultural sector or high income residential sector

• Ensure that all the nature conservation areas have energy efficiency interventions and /or renewable energy alternatives in place in off-grid areas

Planning

• Defining ‘standard’ by-laws that local government could adapt and implement. What this means is that the provincial government develops a template by-law that could be given to municipalities to gazette or amend and gazette thus facilitating a speedier process. The by-laws would apply to current competencies of local government such as building regulations.

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• Under planning, there could be potential to make approval of development plans subject to energy efficiency standards, e.g. commercial buildings designed to less that 150 kWh / m2.

• Ensuring that the spatial development framework of the province restrains urban sprawl.

Housing

• Motivate for and/or secure from external sources additional funding for energy efficiency interventions such as ceilings and solar water heaters in subsidy housing.

• Take an energy services approach to ensure that settlements are developed to meet the energy needs of people such as a house that is cool in summer and warm in winter (passive solar design), that incorporates hot water services from electricity or other energy sources, lighting in the most efficient way (window placements and efficient light bulbs); cooking that incorporates more efficient practices etc.

• Ensure through the contracts with local government that they work with the new homeowners to understand how to live more energy efficiently in their new homes.

• Demonstrate in high profile projects the possibility and benefits and lessons from these greener interventions - for example the Cosmo City or Urban Renewal Projects.

Economic Development:

• Work through Economic Affairs and GEDA (Gauteng Economic Development Agency) to develop and implement business sector and tourism sector energy guidelines.

• Promote business clusters such as solar water heater manufacturers, installers and maintenance, as well as renewable energy component manufacturing eg turbine towers for wind energy or low carbon transport vehicles.

Health

• Education on energy related health impacts such as paraffin poisoning, or fires.

• Taking the opportunity to make hospitals and clinics sites of learning and demonstration on energy efficiency and clean technologies.

Education

• Incorporate energy issues into the school curriculum.

• Use schools as affirming demonstration sites.

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Public Transport, Roads & Works

• Ensure all government buildings (offices, clinics, hospitals, schools etc) initiate energy management behaviour change programmes; that appropriate energy efficient practices and technologies are installed and used and that a monitoring system is in place.

• Prioritise public transport and shift resources to support a safe and reliable integrated transport service.

• Promote energy efficient and low carbon vehicles.

• Promote in conjunction with the private sector, a shift from road to rail freight.

Finance

Appropriate taxes and levies to promote the intentions listed above can also fall within provincial competency, and should be explored.

In summary the key areas where provinces can promote an integrated energy approach in the short-term include:

• Facilitating coordination and synergies amongst the large metros who are already pursuing sustainable energy strategies.

• Supporting smaller municipalities who do not have the capacity to engage this area

• Implement energy efficiency interventions (which has been initiated to a certain extent already) in Gauteng.

• Promotion of Solar Water Heater mass implementation.

• Ensuring that facilities over which they have influence are efficiently built and operated (clinics, schools, community facilities etc).

• Developing standard bylaws which municipalities can then adopt – e.g. around solar water heaters.

• Integrate energy (and climate) into all relevant departmental functions.

• Energy efficiency ‘deemed performances’ or standards in EIA record of decisions and before development approval.

• Regional economic planning - renewable energy cluster promotion.

• Air quality interventions around local air pollutants and GHGs.

• Green Procurement mandatory standards for all provincial departments.

• Developing an overarching strategy in conjunction with municipalities (currently underway).

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7.4 Concluding Remarks What is crucial and will form part of the next step in developing the strategy is to focus on what is achievable and that might involve taking risks, in terms of the range and depth of projects and timing. We know from the Stern Review amongst others that the long term investments in sustainable energy are viable, and pursuing current unsustainable patterns brings with it inevitable economic decline. This report is intended to give a clear picture of where Gauteng Province sits in terms of its current status around energy. The next step in the process is to engage with the stakeholders in order to crystallise the issues and reach a clearer and shared understanding of the core components of the Gauteng Integrated Energy Strategy. It is imperative that during the next phase of developing the strategy that the Department of Local Government and Housing provides the necessary leadership and coordination that will allow the Gauteng Province to focus on the implementation of the Strategy.

Finally, it is within our interest to ensure the success of the Strategy. The Stern Review emphasises the fact that inaction now will result in a much higher cost later. Thus, the longer we take to implement the strategy, the greater will be the cost to the principles of equity, a healthy environment and prosperity for all.

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8. APPENDICES

8.1 Abbreviations, acronyms and glossary of terms CCI - Clinton Climate Initiative CDM - Clean Development Mechanism CFL - Compact Fluorescent Light CO2 - Carbon Dioxide DANIDA - Danish International Development Assistance DME - Department of Minerals and Energy DSM - Demand-Side Management EMTT - Energy Management Task Team GDACE Gauteng Department of Agriculture Conservation and Environment GDS - Growth and Development Strategy GHG - Greenhouse gas GJ - Gigajoule GWh - Gigawatt-hour GSDS - Gauteng Social Development Strategy GIES - Gauteng Integrated Energy Strategy GPT - Gauteng Provincial Treasury GSSC - Government Shared Services Centre HVAC - Heating, Ventilation and Air-conditioning IEP - Integrated Energy Plan kW - Kilowatt kWh - Kilowatt-hour LED - Light-emitting diode LED’s - Local Economic Development Strategies LFG - Landfill Gas LNG - liquefied natural gas LP G - Liquefied Petroleum Gas LTMS - Long Term Mitigation Scenarios MDG - Millennium Development Goals MEC - Member of Executive Committee MJ - Megajoule MW - Megawatt MWh - Megawatt-hour Mtoe - Million tons of oil equivalent NEP - National Electrification Programme NER - National Energy Regulator NERT - National Electricity Response Team NERSA National Energy Regulator South Africa NIRP - National Integrated Resource Plan NSDP - National Spatial Development Perspective

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ODA - Overseas Development Assistance OPEX - Operational Expenditure PERO - Provincial Economic Review and Outlook PTP - Prioritised Townships Programme RDP - Reconstruction and Development Plan SANEDI South Africa’s National Energy Development Institute SWHs - Solar Water Heaters TJ - Terajoule TWh - Terawatt-hour UEMP - Urban Environmental Management Programme (funded by DANIDA) UNFCCC - United Nations Framework Convention on Climate Change

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8.2 Glossary of Terms: Amatola Green Power (AGP): is an electricity trading company operating independently from ESKOM or Municipalities. The electricity which AGP supply is generated from natural renewable energy (RE) sources in terms of the Department of Minerals and Energy (DME) guidelines.

Biodiesel: a cleaner-burning diesel fuel made from natural, renewable sources such as vegetable oils.

Biomass Energy : a renewable energy resource derived from the carbonaceous waste.

Carbon Footprint: a measure of the impact that human activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.

CFL: a relatively efficient light-bulb, using about 25% of the power of incandescent light-bulb, for the same light output.

Co-generation: The simultaneous production by means of a single source of useful energy.

Constitution: the Constitution of the Republic of South Africa.

Climate Change: A statistically significant difference noted either in the mean state of the climate or in its variability persisting for an extended period of time.

Demand side management: the planning, implementation, and monitoring of utility activities so as to encourage customers to modify their pattern of energy usage.

Energy: is a potential ability of a system to influence changes in other systems by imparting either work (forced directional displacement) or heat (chaotic displacement/motion of system microstructure). Basic unit of measurement is the Joule (J).

Energy Balance Model: an analytical technique that attempts to account for all energy coming in and going out of a system.

Energy Audit: an inspection, survey and analysis of energy flows in a building, process or system with the objective of understanding the energy dynamics of the system under study. Typically an energy audit is conducted to seek opportunities to reduce the amount of energy input into the system without negatively affecting the output(s).

Energy Efficiency: a reduction in the quantity of energy used per unit service provided, e.g., a reduction in the quantity of motor fuel used per kilometre driven.

Energy conservation: a collective term for activities that reduce end-use demand for energy by reducing the service demanded, e.g., a reduction in the demand for fuel by reducing the number of kilometres driven, or reduction in the demand for natural gas for space heating by lowering the thermostat.

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EnerKey: stands for the focus of the project on “Energy as a key element of sustainable transformation”. The EnerKey project, a South African – German collaboration, aims to research and promote sustainable transformation of the urban region of Gauteng, including the three municipalities of Johannesburg, Ekurhuleni and Tshwane.

Feed-in-Tariff: is an incentive structure to encourage the adoption of renewable energy through government legislation. The regional or national electricity utilities are obligated to buy renewable electricity (electricity generated from renewable sources such as solar photovoltaic, wind power, biomass, and geothermal power) at above market rates set by the government.

Fossil Fuels: they range from volatile materials with low carbon: hydrogen ratios like methane, to liquid petroleum to non-volatile materials composed of almost pure carbon, like anthracite coal.

Gautrain: is an 80-kilometre mass rapid transit railway system under construction in Gauteng Province, South Africa that will ultimately link Johannesburg, Pretoria, and OR Tambo International Airport. It is hoped that this railway will relieve the traffic congestion in the Johannesburg – Pretoria traffic corridor as well as offer commuters a viable alternative to road transport, as Johannesburg has a limited public transport infrastructure.

Gigajoules: is a 1,000,000,000 joules. It is a unit of energy.

Green Energy Certificate: a system in which generators of electricity from renewable resources receive a certificate for a predetermined unit of energy produced; such certificates have a market value and can be bought and sold, and thus provide a financial incentive for the use of renewable energy.

Kyoto Protocol: an international agreement signed in 1997 at a convention in Kyoto, Japan. It sets binding emissions reductions of greenhouse gases with an average 5.2% reduction below 1990 levels for industrial countries.

Load shedding: an electricity policy of turning off or disconnecting certain loads to limit peak demand.

Millennium Development Goals: are eight international development goals that 189 United Nations member states and at least 23 international organizations have agreed to achieve by the year 2015. They include reducing extreme poverty, reducing child mortality rates, fighting disease epidemics such as AIDS, and developing a global partnership for development.

Natural Gas: is a gaseous fossil fuel consisting primarily of methane but including significant quantities of ethane, propane, butane, and pentane—heavier hydrocarbons removed prior to use as a consumer fuel —as well as carbon dioxide, nitrogen, helium and hydrogen sulphide.

Net metering: the use of a single metre to measure how much power is consumed and produced by a house with its own power source (such as solar or wind system).

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http://en.wikipedia.org/wiki/Rapid_transit

http://en.wikipedia.org/wiki/Railway

http://en.wikipedia.org/wiki/Gauteng_Province

http://en.wikipedia.org/wiki/South_Africa

http://en.wikipedia.org/wiki/Johannesburg

http://en.wikipedia.org/wiki/Pretoria

http://en.wikipedia.org/wiki/OR_Tambo_International_Airport

http://en.wikipedia.org/wiki/OR_Tambo_International_Airport

http://en.wikipedia.org/wiki/Road_transport

http://en.wikipedia.org/wiki/Public_transport


Renewable Energy: any energy resource that is naturally regenerated over a short time scale and either derived directly from solar energy (solar thermal, photochemical, and photoelectric) indirectly from the sun (wind, hydropower, and photosynthetic energy stored in biomass) or from other natural energy flows (geothermal, tidal, wave, and current energy).

Ripple control: is a means whereby the local power authorities are able to temporarily turn off large electrical loads in peoples' homes to limit the impact of peak demand for electricity.

Smart metering: generally refers to a type of advanced meter (usually an electrical meter) that identifies consumption in more detail than a conventional meter, and optionally communicates that information via some network back to the local utility for monitoring and billing purposes.

Sustainability: the fact of being sustainable, preservation of the overall viability and normal functioning of natural systems.

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8.3 Key Role Players DME

The Department of Minerals and Energy was the national department responsible for the entire energy sector. Their role is to develop, implement and enforce energy related policy, legislation and regulation. In practice they often adopt a facilitative role rather than providing strong leadership. It is now known as the Department of Energy.

REFSO

The Department of Minerals and Energy has established the Renewable Energy Finance and Subsidy Office (REFSO), whose mandate includes the management of renewable energy subsidies and offering advice to developers and other stakeholders on renewable energy finance and subsidies.

DNA

DME is the home of the Designated National Authority – the key national authority approving CDM projects before they are forwarded to the international approval authorities.

NERSA

The National Energy Regulator of South Africa (previously the National Electricity Regulator) oversees, amongst others, the electricity supply industry. NERSA approves tariffs, is responsible for electricity sector planning (via the National Integrated Resource Planning process – NIRP), and sets electricity supply standards.

ESKOM

Eskom is a state owned enterprise and is responsible for generation, transmission and distribution of electricity throughout South Africa. While Eskom supplies end-users directly, it is also a bulk supplier to distributors such as municipalities. Eskom has 6 000 industrial, 18 000 commercial, 70 000 agricultural and 3 million residential customers. It owns and operates its own generation plant, which are mainly coal-based. Eskom is starting to promote renewable energy and offers an incentivised tariff for independent power producers (IPPs) to provide ‘green’ electricity.

DSM

Eskom also runs the major energy efficiency initiative in the country – the Demand Side Management Programme. Revenue for this programme is collected through the tariff, as approved by NERSA. DSM programme is significantly underfunded and Eskom and NERSA are engaged in discussions around a suitable way forward here.

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NEEA

The National Energy Efficiency Agency was established to be a major player in implementing energy efficiency in South Africa. However it presently has little capacity for this task, and the major national programme and resources still sit with the Eskom DSM programme.

DEAT

The Department of Environment and Tourism has developed the LTMS, and thus is a key player in guiding the country regarding responses to climate change.

DPE

The Department of Public Enterprises is responsible for Eskom - although DME has a direct role in determining policies relevant to Eskom.

CEF

The Central Energy Fund is involved in the search for appropriate energy solutions to meet the future energy needs of South Africa, the Southern African Development Community and the sub-Saharan African region, including oil, gas, electrical power, solar energy, low-smoke fuels, biomass, wind and renewable energy sources. CEF also manages the operation and development of the oil and gas assets and operations of the South African Government. CEF is a private company established under the CEF Act.

NBI

The National Business Initiative oversees the Energy Efficiency Accord for businesses. This voluntary Accord asks signatories to meet energy efficiency targets. There are 44 signatories, including several large consumers.

REDs

The Regional Electricity Distributors are intended to take over the distribution function played by Eskom and local authorities. However, the process of establishing the REDs has taken many years and has been fraught with delays. Timeframes for RED establishment remain uncertain.

Municipalities

These local authorities are largely responsible for service delivery, including electricity and gas reticulation. Many of them are electricity distributors.

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City Power

City Power Johannesburg (Pty) Ltd (City Power) was established in 2000 as an independent municipal entity wholly owned by the City of Johannesburg to supply electricity to approximately 300 000 customers ranging from domestic to commercial and industrial properties. The core competency of the business is the purchase, distribution and sale of electricity within the geographical footprint of the City of Johannesburg. The National Electricity Regulator granted City Power a licence to trade on 19 December 2001. City Power is not the sole provider of electricity services for the CoJ. The areas not covered by City Power (predominantly Soweto and Sandton) are serviced by Eskom.

Power Conservation Programme

Eskom is promoting an electrical energy saving programme – called the Power Conservation Programme (PCP), which will target the countries biggest industrial users and ask them to save energy against pre-determined baselines. Punitive tariffs apply where targets are not met. This scheme is still being debated, as people point out that it is potentially administratively too complex and potentially unfair on many industries. However, if approved, it will be a significant implement to reduce electricity use in industry – South Africa’s major consumer.


No 63 Fox Street, Johannesburg,2001

Private Bag X79,

Private Bag X86

Marshalltown

2107

Tel (011) 355 4000/5000

Fax (011) 834 3670

Website: www.dlgh.gpg.gov.za