EKURHULENI METROPOLITAN MUNICIPALITY STATE OF ENERGY ... · Ekurhuleni State of Energy Report, November 2004 i EKURHULENI METROPOLITAN MUNICIPALITY STATE OF ENERGY REPORT TABLE OF

Ekurhuleni State of Energy Report, November 2004 i

EKURHULENI METROPOLITAN MUNICIPALITY

STATE OF ENERGY REPORT

TABLE OF CONTENTS

EXECUTIVE SUMMARY

LIST OF TABLES vi

LIST OF FIGURES viii

Abbreviations x

1. Background and introduction 1 1.1 Project objective 1 1.2 Structure of report 1 1.3 Introduction to EMM 1 1.4 Electricity network in EMM (GIS mapping) 5 1.5 Energy in South Africa 6 1.6 Methodology used 6

2. Legislation and regulation 8 2.1 Electricity legislation 8

2.1.1 General 8 2.1.2 Service level issues 8

2.2 National legislation and policy pertaining to energy 8 2.2.1 White Paper on Energy Policy (1998) and Renewable Energy (2003) 8 2.2.2 EDI Restructuring Bill (April 2003) 8 2.2.3 DME Draft Energy Efficiency Strategy (April 2004) 9 2.2.4 NER Regulatory Policy on Energy Efficiency and Demand Side Management (EEDSM) for South African Electricity Industry (May 2004) 9

2.3 Other relevant national legislation 9 2.3.1 The Constitution of the Republic of South Africa Act No. 108 of 1996 9 2.3.2 Legislation on municipal governance 10

2.3.2.1 Municipal Systems Act 10 2.3.2.2 Municipal Structures Act 10 2.3.2.3 Municipal Finance Management Act 10

2.3.3 National Environment Management Act, 107 of 1998 10 2.3.4 Environment Conservation Act of 1989 10 2.3.5 Agriculture White Paper (1995) 10

2.4 International legislation 10 2.4.1 United Nations Framework Convention on Climate Change (UNFCCC) 10

2.5 Provincial and municipal legislation 11

3. Data acquisition 12

Ekurhuleni State of Energy Report, November 2004 ii

3.1 Data sources 12 3.2 Supply side data 12

3.2.1 Liquid fuel 12 3.2.2 Electricity 13 3.2.3 Pipeline gas 13 3.2.4 Renewable energy and energy efficiency 13

3.3 Demand side data 13 3.3.1 Energy carriers 13

3.3.1.1 Liquid fuels 13 3.3.1.2 Pipeline gas 13 3.3.1.3 Electricity 13 3.3.1.4 Coal 14 3.3.1.5 Biomass 14

3.3.2 Energy users 14 3.3.2.1 Households 14 3.3.2.2 Industry and Construction 16 3.3.2.3 Mining and Quarrying 16 3.3.2.4 Commerce 16 3.3.2.5 Local Government 16 3.3.2.6 Agriculture 16 3.3.2.7 Transport 16

3.4 Data Quality, Availability and Validity 17 3.5 Study Constraints 20

3.5.1 Liquid Fuels 20 3.5.2 Electricity 20 3.5.3 Environment and Air Quality 20

4. Energy balance 22 4.1 Energy balance in physical terms 22 4.2 Conversion factors 22 4.3 Energy balance 23 4.4 Conclusions from Energy Balance 23

5. Energy demand 25 5.1 Overall demand 25 5.2 By Energy Carrier 25

5.2.1 Liquid Fuels 25 5.2.2 Piped Gas Consumption in Ekurhuleni 27 5.2.3 Electricity 28

5.2.3.1 Connection Profile 28 5.2.3.2 Consumption Profile 29 5.2.3.3 Prepaid and credit metering systems 31 5.2.3.4 Trends in new connections in EMM 32 5.2.3.5 Electricity sales related to Gauteng and South Africa 33

5.2.4 Coal 35 5.2.5 Biomass 35

5.2.5.1 Animal dung 35 5.3 By energy users 35

Ekurhuleni State of Energy Report, November 2004 iii

5.3.1 Household profile 35 5.3.1.1 Discrepancy between national census and EMM statistics 36 5.3.1.2 Domestic energy consumption in EMM 37 5.3.1.3 Low-income household energy use 38 5.3.1.4 State of Electrification 38 5.3.1.5 Key demographic characteristics of Ekurhuleni 40 5.3.1.6 Household Energy Use 43 5.3.1.7 Energy user profile 44 5.3.1.8 Energy costs 46 5.3.1.9 Best mix of energy and appliances 46 5.3.1.10 Policies and programmes 47 5.3.1.11 Trends and developments 47 5.3.1.12 Major gaps, constraints and issues 47

5.3.2 Industry and construction 47 5.3.3 Mining and quarrying 48 5.3.4 Commerce 49 5.3.5 Local government 49 5.3.6 Agriculture 49 5.3.7 Transport sector 49

5.3.7.1 Historical spatial planning 49 5.3.7.2 Road network 50 5.3.7.3 Rail transport 50 5.3.7.4 Bus transport 53 5.3.7.5 Mini-bus taxi service operations 54 5.3.7.6 Road based private transport 54 5.3.7.7 Johannesburg International Airport 55 5.3.7.8 Energy use 55 5.3.7.9 Current developments and plans 55 5.3.7.10 Energy efficiency in transport 57 5.3.7.11 Gaps, constraints and issues 57

5.4 Constraints and issues 57

6. Energy supply 58 6.1 Liquid fuels 58

6.1.1 Supply chain 58 6.1.2 Distribution and Marketing of Liquid Fuels 59

6.1.2.1 Distribution and Retail of Petrol and Diesel 59 6.1.2.2 Distribution and Retail of Illuminating Paraffin 59 6.1.2.3 Distribution and Retail of LPG 60

6.1.3 Petrol and Diesel 60 6.1.4 Illuminating Paraffin 61 6.1.5 Liquefied Petroleum Gas (LPG) 61 6.1.6 Policy and regulatory context 62 6.1.7 Liquid fuel pricing 62

6.1.7.1 Petrol, Diesel and IP Prices 63 6.1.7.2 LPG Price 63 6.1.7.3 Illuminating paraffin price 64

6.1.8 Trends and developments 64 6.2 Pipeline gas 65

6.2.1 Developments at the national level 65

Ekurhuleni State of Energy Report, November 2004 iv

6.2.2 Piped gas in EMM 65 6.2.3 Policy and regulatory context 66 6.2.4 Pricing 66 6.2.5 Trends and developments 66

6.3 Electricity 67 5.3.1 Supply purchases 67 6.3.1 Policy and regulatory context 67 6.3.2 Tariffs 67 6.3.3 Income profile 69

6.3.3.1 Consumption and billing profile by Customer Care Centres (CCCs) 69

6.3.4 Trends and Developments 70 6.3.4.1 Formation of the REDs 70 6.3.4.2 Energy Efficiency and Demand Side Management (DSM)70 6.3.4.3 Electricity projects planned 71 6.3.4.4 Local/independent generation 71 6.3.4.5 Meter verification 71 6.3.4.6 Illegal connections 71 6.3.4.7 Vandalism 71

6.3.5 Gaps, constraints and issues 73 6.4 Coal 74

6.4.1 Policy and regulatory context 74 6.5 Renewable energy 74

6.5.1 Traditional biomass energy 75 6.5.2 Woodfuel 75 6.5.3 Modern renewable energy 75

6.5.3.1 Solar power 75 6.5.3.2 Biogas energy 76 6.5.3.3 Employment Potential for Renewable Energy 79

6.5.4 Policy imperatives for renewables 80 6.5.4.1 Focus of the Renewable Energy White Paper 80 6.5.4.2 Draft renewable energy strategy 81

6.5.5 Information and data gaps 81 6.5.6 Pricing 82 6.5.7 Trends and developments 82

6.6 Energy Efficiency in EMM 82 6.6.1 Overview of the energy efficiency objectives 82

6.6.1.1 Targets 83 6.6.2 Energy efficiency programmes in EMM 83

6.6.2.1 Efficient Compact Fluorescent Lamp (CFL) 83 6.6.2.2 Residential load management 84

6.6.3 EE business in EMM 84 6.6.4 Information and data gaps 84 6.6.5 Future trends in REEES 84

7. ENVIRONMENTAL/HEALTH ISSUES RELATING TO ENERGY IN EMM 86 7.1 Introduction 86

7.1.1 Emissions 86 7.1.2 Potential impacts of energy on environmental change 87

Ekurhuleni State of Energy Report, November 2004 v

7.2 Electricity related environmental and health issues 87 7.2.1 PCBs 87

7.2.1.1 Recommendations 87 7.2.2 Electromagnetic fields 87

7.2.2.1 International Agency for Research on Cancer (IARC) 88 7.2.2.2 EPRI/California Department of Health Services/US Dept of Energy 88 7.2.2.3 World Health Organization 88 7.2.2.4 CIGRÉ 88 7.2.2.5 Recommendations 89

7.3 Pressures on air quality 89 7.3.1 Air quality impacts 89

7.4 Sources of emissions within EMM 90 7.4.1 Industry – scheduled processes (including power generation) 91 7.4.2 Industry – non scheduled processes, light industry 92 7.4.3 Transport 92 7.4.4 Households 93 7.4.5 Mining 93 7.4.6 Waste sites 94

7.5 Human health 94 7.6 Information and data gaps 94

7.6.1 International trends in data requirements 94 7.7 Issues relating to energy and EMM’s environment 95

8. State of energy 96 8.1 Service delivery framework 96 8.2 Issues 97

8.2.1 Geoeconomic dynamics 97 8.2.1.1 Agriculture 97 8.2.1.2 Industry 97 8.2.1.3 Transportation 97

8.3 Identification and prioritisation of energy issues in EMM 98 8.4 Conclusions and recommendations 105

8.4.1 Conclusions 105 8.4.2 Recommendations 105

8.4.2.1 Electricity 105 8.4.2.2 Liquid fuels 106 8.4.2.3 Environmental issues 106

Ekurhuleni State of Energy Report, November 2004 vi

LIST OF TABLES

Table 1 EMM Customer Care Centres and Eskom Direct Supply ..................... 2

Table 2 EMM electrical network – Eskom intake points and main substations.. 5

Table 3 Pre-research analysis of energy end-use in Ekurhuleni ...................... 7

Table 4 Survey results - energy use patterns in Ekurhuleni households .........16

Table 5 Source and level of disaggregation of data......................................18

Table 6 Energy balance for EMM in physical units, 2003...............................22

Table 7 Energy conversion factors..............................................................23

Table 8 Energy balance for EMM, GJ in 2003...............................................23

Table 9 EMM energy demand related to the RSA total (TJ)...........................25

Table 10 Regional and national use of liquid fuels, kl 2003.............................26

Table 11 Consumption of liquid fuels per municipality, kl in 2003 ...................27

Table 12 Number of electricity customers by category ...................................29

Table 13 Overview of electricity sales by category of customer.......................29

Table 14 Average electricity consumption per customer class .........................30

Table 15 Eskom Large Power Users within the EMM boundary .......................30

Table 16 Electricity sales per municipality, 2003 ............................................31

Table 17 Comparison of electricity sales in EMM, Gauteng and South Africa ....35

Table 18 Energy source for lighting and cooking in EMM in 2001....................37

Table 19 Energy usage in lower income groups.............................................38

Table 20 Energy usage for lighting in Ekurhuleni ...........................................38

Table 21 Comparative prices of household energy carriers in Ekurhuleni, 200440

Table 22 Education profiles for Ekurhuleni ....................................................41

Table 23 Employment status for Ekurhuleni residents ....................................41

Table 24 Household energy use by carrier ....................................................44

Table 25 Estimated average energy carrier costs for Ekurhuleni .....................46

Table 26 Estimated costs of various energy carriers in the Ekurhuleni domestic area .............................................................................................46

Table 27 Acceptance Matrix for Energy/Appliance Combinations.....................47

Table 28 Energy costs in the Ekurhuleni metals sector...................................48

Table 29 EMM mining electricity consumption profile .....................................48

Table 30 Rail passenger traffic in EMM .........................................................51

Table 31 Intersite electricity payments for railway operation ..........................52

Table 32 Energy consumption at Johannesburg International Airport ..............55

Table 33 National and EMM use of energy in the transport sector, TJ in 2001 .55

Table 34 Marketing of the different liquid fuels in EMM, kl in 2003..................59

Table 35 Comparison of LPG consumption in emerging economies .................60

Ekurhuleni State of Energy Report, November 2004 vii

Table 36 Sectoral Demand for Illuminating Paraffin in Ekurhuleni ...................61

Table 37 Prices for liquid fuel products, 2003................................................63

Table 38 Price build up from supply to end-use.............................................64

Table 39 Supply of Pipeline Gas in 2003 .......................................................66

Table 40 Price of Sasol Gas in 2003..............................................................66

Table 41 Electricity purchases in 2003 ..........................................................67

Table 42 Summary of EMM electricity tariffs in 2004, excluding VAT. ..............68

Table 43 Billing profile.................................................................................69

Table 44 Electricity sales per municipality, 2003 ............................................70

Table 45 Solid waste quantities handled at EMM landfills from June 2002 to June 2003 (EMM 2003) .........................................................................77

Table 46 Possible LFG projects at the EMM (Pieterse 2003)............................78

Table 47 South Africa’s energy efficiency targets...........................................83

Table 48 Technical comparison between the 60-Watt incandescent lamp and the 15-Watt CFL .................................................................................84

Table 49 Summary of estimated contributions to air emissions by source type in the Southern SDR .........................................................................91

Table 50 Estimated emissions of priority pollutants emitted by scheduled processes .....................................................................................92

Table 51 Identification and prioritisation of energy issues in EMM...................99

Ekurhuleni State of Energy Report, November 2004 viii

LIST OF FIGURES

Figure 1 Municipalities in Ekurhuleni Metropolitan Municipality........................ 3 Figure 2 Energy flow from primary energy supply to final use......................... 6 Figure 3 Distribution of household incomes in Ekurhuleni (2001) ...................15 Figure 4 Correlation between household income and lighting energy source ...15 Figure 5 Consumption of Liquid Fuels in South Africa 1992-2001 ...................26 Figure 6 Heavy furnace oil consumption in Ekurhuleni 1994-2003 ..................27 Figure 7 Pattern of Piped Gas Usage in Ekurhuleni......................................28 Figure 8 Residential credit and prepaid meter installations in EMM.................32 Figure 9 Trend in power connections in major municipalities .........................33 Figure 10 Racial Distribution in Ekurhuleni, No. of Persons ..............................40 Figure 11 Age distribution in gender categories in the Ekurhuleni area.............41 Figure 12 Income distribution in the Ekurhuleni area ......................................42 Figure 13 Income distribution in Ward 39 ......................................................42 Figure 14 Income distribution in Ward 76 ......................................................43 Figure 15 Types of housing in the Ekurhuleni area .........................................43 Figure 16 Classification of fuel usage for cooking by race................................44 Figure 17 Classification of fuels for heating by race ........................................45 Figure 18 Classification of fuels for lighting by race ........................................45 Figure 19 Consumption of power paraffin in Ekurhuleni ..................................49 Figure 20 Scheme of the EMM transport model ..............................................56 Figure 21 Industry structuring and market share of LPG .................................58 Figure 22 A typical complex paraffin distribution chain....................................60 Figure 23 Sectoral Distribution of LPG in Ekurhuleni........................................62 Figure 24 Composition of the Retail Price of Petrol and the Wholesale Price for

Diesel and IP in Gauteng for the period 01/09/2004 30/09/2004 ......63 Figure 25 Potential in different renewable energy technologies (RETs).............80 Figure 26 Service Delivery Framework ...........................................................96

Ekurhuleni State of Energy Report, November 2004 ix

LIST OF PHOTOS

1 Effects of vandalism at the Van Eck substation in Brakpan Customer Care Centre

2 Closeup of vandalism at Van Eck substation (11kV cable was stolen)

3 Tragic consequences of illegal access to electricity lines

Ekurhuleni State of Energy Report, November 2004 x

ABBREVIATIONS DME Department of Minerals and Energy

DSM Demand side management

EMM Ekurhuleni Metropolitan Municipality

GDP Gross domestic product

GGP Gross geographic product

IDP Integrated development plan

IEA International Energy Agency

IP Illuminating paraffin

IPP Independent Power Producer

KMC Kyalami Metropolitan Council

LDV Light delivery vehicle

LPG Liquid petroleum gas

NER National Electricity Regulator

RE Renewable Energy

EE Electrical Energy

RED Regional Electricity Distributor

SARCC South African Rail Commuter Corporation

SUV Sports utility vehicle

Ekurhuleni State of Energy Report, November 2004 ES-1

EXECUTIVE SUMMARY

Ekurhuleni State of Energy Report, November 2004 1

1. BACKGROUND AND INTRODUCTION

1.1 Project objective This Report has been prepared at the request of the Ekurhuleni Metropolitan Municipality (EMM), in preparation for the development of an Energy Strategy within the municipality. The aim of the project is to provide a status report on the use of energy in EMM, which includes an assessment of the type of data available relating to energy supply and demand by energy carrier and by energy user.

1.2 Structure of report

This report first provides a background to EMM, giving a brief overview of its organization into Service Delivery Regions and Areas as well as its overall demographic and economic profile. This section also provides a short discussion on energy in order to put the reader in context. The second section provides a thorough review of legislation and regulation pertinent to energy in South Africa and in Ekurhuleni, in order to give a full picture of the enabling environment. The third section provides an overview of the sources of data and the validity and quality of data collected for each component of the Report. Section 4 then provides an energy balance as an overview of energy use by energy carrier, by users (demand sectors) and supply. Sections 5 and 6 detail energy demand by carrier and user and energy supply by carrier respectively. Section 7 provides a thorough assessment of environmental issues relating to energy in EMM. Section 8 then presents a detailed discussion on the State of Energy in EMM, integrating the observations from the previous sections and providing conclusions and recommendations for future action by EMM in support of the preparation of a detailed Energy Strategy.

A GIS representation of EMM’s electrical network is appended to this report.

A six-volume compendium of documents and data collected during preparation of this report is also included.

1.3 Introduction to EMM The Ekurhuleni Metropolitan Municipality (EMM) was formed in 2000 and is the fourth largest municipality in South Africa. Ekurhuleni is situated in the Gauteng province to the east of Johannesburg and south of Tshwane. It used to be known as the East Rand and consisted of of nine separate municipalities. EMM has united the eleven previous councils into one local government structure to meet the needs of the community. These municipalities were:

Alberton

Benoni

Boksburg

Brakpan

Germiston

Kempton Park/Tembisa

Edenvale

Nigel

Springs

Khayalami Metropolitan Council


Eastern Gauteng Services Council (EGSC)

Following the consolidation into EMM, there are currently eleven municipalities organized into three Service Delivery Regions. For electricity service delivery, nine of these municipalities are now designated as Customer Care Centres (CCCs), as shown in Table 1 Some customers within the EMM boundary are directly supplied by Eskom, while some are supplied by Eskom through a wheeling arrangement with EMM, whereby Eskom supplies the EMM suburb which then transfers the power through its own infrastructure to an Eskom substation, from which the local community is directly supplied. The specific townships within the various regions supplied by EMM and Eskom directly are reflected in Table 1. The Eskom supply points and major distribution lines from 132 kV down to 33 kV are shown in the drawing appended to this report.

Table 1 EMM Customer Care Centres and Eskom Direct Supply

CUSTOMER CARE CENTRES

EMM RESPONSIBILITY

AREA ESKOM DIRECT SUPPLY

Eastern Region

Benoni Wattville, Etwatwa and Daveyton

Brakpan KwaThema Tsakane

Springs/Nigel Duduza

Southern Region

Alberton Thokoza

Boksburg

Germiston Dukathole Katlehong and Vosloorus

Norhern Region

Edenvale

Kempton Park

Tembisa

These are illustrated in Figure 1 overleaf.


Figure 1 Municipalities in Ekurhuleni Metropolitan Municipality

The area consists of about 192 355 hectares of land and is occupied by about 2,5 million people occupying approximately 750 000 households. The budget of the metro was R7 269 billion in 2002/3. The capital budget was R726 million1.

EMM’s main employment sectors are:

• Manufacturing (115 739 jobs)

• trade (95 043)

• social services (92 877)

• business services (75 397)

• transport (57 502)

• construction (44 726)

• mining (19 836)

• farming (6 469)

• utilities (2 493).

EMM is responsible for some 23% of the Gross Geographic Product of Gauteng with the inputs of some 33 000 business entities, including 8 000 industries, over 5 000 supporting enterprises and a bustling commercial sector. EMM is an entity of globally competitive business and industry. This prolific growth led to the natural confluence of towns and cities that progressed to one of only seven metropolitan areas within South Africa. The mining boom that led to the emergence of the then East Rand also prompted the growth of a

1 Gafney’s Official Yearbook, Local Government in South Africa, 2002-2004, page 282.


substantial manufacturing support base, particularly in terms of metal production and engineering.

The EMM area is characterized by a well-established industrial base aligned, in an east-west fashion along the Germiston-Springs axis and in a north-south fashion along an Alberton-Kempton Park axis. The east-west axis tends to include older, heavier industries, such as steel, whereas the north-south axis contains more high-tech Industries. Typical of such developments is the Longmeadow site, housing electronic and medical industries, compared to the scrap metal and steel fabrication industries of the east-west axis.

EMMs vision2 is “The smart, creative and development city”. The focus on development is clear in EMM’s mission statement “Ekurhuleni provides sustainable and people-centred developmental services that are affordable, appropriate and of high quality. We are focused on social, environmental and economic regeneration of our city and communities, as guided by the principles of Batho Pele and through the commitment of a motivated and dedicated team.”

EMM’s Integrated Development Plan (IDP) lists seven priorities (of which energy is not one), but energy can be read into the components of at least four of them. It is important to note the EMM used an extensive consultation process with communities to establish what their needs are. In order of importance they are:

Roads;

Fighting poverty;

Safety and security;

Economic development projects; and

Storm water management.

The business community raised the following issues that understandably differ extensively from those of residents:

Safety and security;

Urban renewal and unregulated street trading;

Informal settlements;

Land invasion;

Infrastructure maintenance;

Financial assistance to SMMEs;

Need for improved communication; and

Local procurement.

In connection with energy, the IDP also identifies that:

62.5% of the capital budget of more than R1 billion in 2003/04 is spent on infrastructure services of roads, storm water, electricity, water, sanitation and solid waste;

all rates and tariffs were made equal across the municipality in 2003/04;

50 kWh of electricity per month is provided free to all households at a cost of about R63 million.

2 EMM, Integrated Development Plan, 2003-2007, Pocket Guide.


1.4 Electricity network in EMM (GIS mapping)

The EMM network drawing appended to this report was compiled from extensive inputs from EMM Customer Care Centres (CCCs), as no single integrated GIS representation of EMM’s electricity network is yet available in the municipality. Drawings indicating the main substation location information (i.e. Eskom intakes, and e.g. 132kV/33kV substations) were obtained from senior managers of the individual CCCs in DWG format or hard copy for incorporation into the GIS mapping. One CCC, Alberton, still works with sepia drawings as they have very limited computer facilities, while others use advanced computer aided drafting packages.

For the purposes of preparing the appended drawing, the DWG drawings were converted into shape files while the hard copy drawings were scanned and converted into Shape files to reflect the EMM network. It is our understanding that there are plans to integrate EMM’s GIS systems in conjunction with a significant investment in computer-aided drafting hardware and software.

Table 2 indicates the number of Eskom intake points and main substations per CCC

Table 2 EMM electrical network – Eskom intake points and main substations

NUMBER CUSTOMER CARE

CENTRES ESKOM INTAKE POINTS

MAIN SUBSTATIONS

SUBSTATION SIZE (kV)

Eastern Region

Benoni 2 9

Brakpan

Springs/Nigel 3 20 22/ Supertension

Southern Region

Alberton 3 10 33/

Boksburg

Germiston 6 18 132/

4 42/

Northern Region 6 4 33/11

2 44/11

3 44/6.6

5 66/11

3 88/11

1 88/33

1 88/66/11

1 132/11/6.6

2 132/66


1.5 Energy in South Africa

Energy in South Africa is dominated by electricity and liquid fuels supply and transport, the former mainly generated through the burning of coal in large coal-fired plants. The economy is considered energy intensive in comparison to other emerging economies. Due to the diversity of socio-economic groups in South Africa, there is still significant diversity in the role of energy in the life of ordinary South Africans. As a result of a significant drive over the last ten years to achieve access to electricity by all South Africans, the country now has an access rate of over 70%, and is continuing to connect some 300 000 households each year. However, many South Africans, especially those in the poorer income groups and those below the poverty line, still make use of more traditional fuels for heating, cooking and lighting.

Figure 2 provides a high level overview of the energy conversion process from supply to carrier in South Africa.

Figure 2 Energy flow from primary energy supply to final use – roughly to scale

Primary Supply Conversion Transport Carrier

Source: DME Integrated Energy Plan, March 2003

1.6 Methodology used The complexity of the state of energy at Ekurhuleni necessitated the application of different methodological approaches.

At the outset, the team’s approach was to assess Ekurhuleni from an energy demand perspective, to establish the structure, characteristics and profile of the energy market. This implied the analysis of different demand sectors and their sub-sectors to determine the end uses of energy sources within the municipality. These sub-sectors were then correlated with the different energy supply options. The outcome of this analysis was a picture of multiple fuel use by different sub-sectors. From the analysis of supply options, it was possible to determine the sources of information per each energy source.


Table 3 Pre-research analysis of energy end-use in Ekurhuleni

DEMAND SECTORS SUB CATEGORIES SUPPLY OPTIONS SOURCES OF

INFORMATION Households Formal, Hostels,

Informal, Peri-urban, Farm-workers units

Electricity, IP, Coal, Biomass, Solar, Petrol, Candles, Batteries

DBSA, StatsSA, IDP, LM, EMM Electricity Dept, Eskom, NER, SAPIA, LPGSA, DME

Transport Rail, Road, Aviation Electricity, Petrol, Diesel, Gas (lifting crane), AVGAS/ AVTUR, Coal

StatsSA, EMM, SAPIA, LPGSA, Transnet, Spoornet, Metrorail, Gautrans, Taxi Associations, Bus Companies

Industries Mining, Light & Heavy Manufacturing, Processing & Packaging

Coal, Piped Gas, LPG, Electricity, Renewables, All Liquid fuels

Coal, Mines, EMM Coal, Gascor, SAPIA, SASOL, SESSA, LED EMM Electricity, Eskom

Commerce Tourism, Trading, Services

Coal, Piped Gas, LPG, Electricity, Renewables, All Liquid fuels

As above

Agriculture Commercial, Non-Commercial

Diesel, Elect, IP, Petrol, Renewables

SAPIA, LPGSA, Eskom, EMM, SESSA, NER

Government Infrastructure

Buildings, Street Lighting, Vehicle Fleet, H2O pumping & Treatment, Sewerage Treatment

Electricity, Diesel, Coal,

EMM, Provincial, ERWAT, RandWater

Crosscutting issues

Gender & Race, Environment, Air Quality, Energy Efficiency, Health & Safety, Governance, Integrated Energy Planning (IEP), Renewable Energy (RE)


2. LEGISLATION AND REGULATION Most aspects of South Africa’s energy sector are addressed by legislation and regulation. Electricity and liquid fuels are the subject of the most significant legislative and regulatory coverage, as outlined in the following sections.

2.1 Electricity legislation

2.1.1 General The electricity sector is governed by the Electricity Act (Act 41 of 1987, as amended). The Electricity Act describes the licensing of undertakings for the generation and supply of electricity, and the control over these functions. It deals with the setting and approval of electricity tariffs and conditions of supply. The Act states that the sale and supply of electricity within the area of jurisdiction of a local authority, shall (with some exceptions) be under the control of that authority. Here, the Act confirms the allocation of electricity reticulation as an exclusively local authority competence in the Constitution (Act 108 of 1996, Schedule 4, Part B).

The Act furthermore describes the functions and powers of the National Electricity Regulator. The NER is tasked to exercise control over the electricity supply industry so as to ensure order in the generation and efficient supply of electricity. Its tasks include tariff approvals and the setting of supply and service standards.

The Act, in Section 27, also establishes the illegality of theft of electricity.

2.1.2 Service level issues Service levels are dealt with under the national supply regulations (NRS) issued by the NER. The NRS 047 is the quality of service standard (i.e. it regulates the relationship between customers and the licensees). The NRS 048 is the quality of supply standard (covering quality of supply parameters and minimum standards to be applied as measures of power quality at the point of supply to end consumers).

2.2 National legislation and policy pertaining to energy

2.2.1 White Paper on Energy Policy (1998) and Renewable Energy (2003) The policy recognises the need to reduce fuelwood as well as the over harvesting of natural resources which result in environmental degradation, soil erosion and desertification.

2.2.2 EDI Restructuring Bill (April 2003) The EDI Restructuring Bill was published in April 2003. The Bill provides for the establishment 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 Bill followed the Restructuring Blueprint issued by the Department of Minerals & Energy in 2001. The Blueprint sets out the objectives with the restructuring of the RSA EDI. It further addresses some of the pertinent issues with respect to RED formation and transfer of resources to REDs.


2.2.3 DME Draft Energy Efficiency Strategy (April 2004)

The draft document is the first energy efficiency strategy for South Africa. It takes its mandate from the White Paper on Energy Policy and links energy sector development with national socio-economic development plans. It provides specific targets for reduction in energy demand by 2014 within given demand sectors, with an overall target of 12% reduction in consumption.

2.2.4 NER Regulatory Policy on Energy Efficiency and Demand Side Management (EEDSM) for South African Electricity Industry (May 2004)

This policy sets annual EEDSM targets and specifies the programmes that would qualify for EEDSM funding. Eskom is obliged to ensure that these targets are met, and all metros in South Africa are obliged to incorporate EEDSM in their planning and to ensure EEDSM implementation. The policy describes the regulatory mechanisms to be implemented by the NER and outlines the following:

Access to funding

Administration of funds

Assets ownership

Development of EEDSM plans

Establishment of the Energy Agency in the future

Obligation of the future REDs to implement EEDSM to all end-users through ESCOs (Energy Services Companies)

The requirement of licensees (distributors) to create awareness (advertise benefits) of EEDSM among customers and offer time-of-use tariffs to all industrial and commercial customers.

2.3 Other relevant national legislation

2.3.1 The Constitution of the Republic of South Africa Act No. 108 of 1996 The Constitution of South Africa is relevant because it is the supreme law of the Republic and the obligations imposed by it must be fulfilled (RSA 1996).

Schedule 4B of the Constitution states that electricity reticulation is an exclusive local government function.

In terms of Section 24, all South Africans have the right:

To an environment that is not harmful to their heath or well-being; and

To have the environment protected, for the benefit of present and future generations, through legislative and other measures that-

i. Prevent pollution and ecological degradation;

ii. Promote conservation; and

iii. Secure ecologically sustainable development and use of natural resources while promoting justifiable economic social development.


2.3.2 Legislation on municipal governance Apart from EDI and electricity sector-specific legislation, electricity supplying local authorities are subject to various Acts relevant to local authorities in general.

2.3.2.1 Municipal Systems Act Section 11(2) provides that a municipality exercises its authority by amongst others providing municipal services to the local community itself (11(2)(f)), or by appointing appropriate service providers in accordance with the criteria and process set out in Section 78. Section 78 requires a LA to review its delivery of a service to determine whether it is more feasible to continue in-house delivery or to outsource the service in some manner. Section 77 prescribes seven situations or circumstances when the municipality is obliged to (i.e. ‘must’) consider the appropriate service delivery options. Section 76 provides that a municipality may provide a municipal service through an internal or external mechanism.

2.3.2.2 Municipal Structures Act Section 83 refers to Municipalities’ rights as those determined in Sections 156 and 229 of the Constitution (i.e. that electricity and gas reticulation are municipal functions, and that surcharges may be levied on fees for services provided by or on behalf of the municipality and that such surcharges may be nationally regulated).

2.3.2.3 Municipal Finance Management Act Section 13 regulates the disposal of capital assets, and Section 14 municipalities’ interests in companies and other entities. Chapter 9 of the Act deals with various matters related to municipal entities.

2.3.3 National Environment Management Act, 107 of 1998 The purpose of NEMA is to give effect to the management of the environment articulated in the White Paper on Environmental Management Policy which resulted from the Consultative National Environmental Policy Process (CONNEPP). It gives effect to the principle of co-operative governance and the environmental rights enshrined in the new Constitution. This Act provides the framework for environmental policy in South Africa, and addresses such issues as air, water and marine pollution, deforestation, energy efficiency and the conservation of biodiversity.

2.3.4 Environment Conservation Act of 1989 The Act aims to ‘provide for the effective protection and controlled utilization of the environment’. Section 2 of the guideline document describes activities which might have a detrimental impact on the environment, and which therefore require an environmental assessment.

2.3.5 Agriculture White Paper (1995) The White Paper emphasises the promotion of agricultural development, which is dependent on the protection of land and water resources.

2.4 International legislation

2.4.1 United Nations Framework Convention on Climate Change (UNFCCC) To tackle the problem of climate change 93 countries including South Africa have ratified the Kyoto Protocol (UNFCCC 2004). This is a legally binding commitment to constrain GHG emissions which was adopted under the UNFCCC. Therefore many countries have begun adopting measures to reduce their emissions. South Africa ratified the UNFCCC in 1997 and acceded to the Kyoto Protocol in 2002.

At present South Africa has a policy on global climate change which has recognised that as economic growth and development occurs so to will emissions. The utilisation of Clean


Development Mechanism (CDM) and opportunities for technology transfer will play an important role in assisting with the transition to lower greenhouse gas emissions (UNFCCC 2004).

2.5 Provincial and municipal legislation No provincial or municipal legislation was identified having a direct bearing on the development of an Energy Strategy for Ekurhuleni.


3. DATA ACQUISITION

3.1 Data sources For the initial data collection phase, data has been gathered from a variety of sources:

Liquid fuel, pipeline gas and electricity data was obtained in spreadsheet form from the supplier databases. The data was then recast into the different sectors of use of the specific type of energy. In most cases this process is clear and direct, in others some interpretation or the use of expert assumptions is required.

Processed/published data for total energy use, costs, sources and efficiency of energy supply.

Electricity data was supplied by the EMM Electricity Department and Eskom Benoni Regional Office. Further electricity information and data was obtained from EMM’s submission to the NER, as well as published data on the Department of Minerals and Energy’s website.

Review of energy legislation and regulation and review of environmental impacts, with an emphasis on air quality and CO2 emissions.

Most information for Renewable Energy (RE) and Energy Efficiency (EE) was gleaned from Eskom DSM and Bonesa. Other information was obtained through a literature search on landfill potential to generate renewable energy.

a review of similar reports such as City of Cape Town State of Energy Report and the Strategic Review of Energy Information (for the industrial sector) for the EU, prepared by J A Basson of the Team in 1998. Included was the review of relevant published energy information.

The environment information is mainly derived from the State of Environment Report and Energy Information Administration. Other sources of information are Clean Development Mechanisms, United Nations Framework Convention on Climate Change, Environmental Impact Assessment and World Resources Institute.

Local Government Institutions, transport and the related energy use data was obtained by emailing and/or faxing a one page questionnaire to respective department heads and managers of these institutions. (Local Government institutions approached were the following: LED (Wits Study), Health, Fleet (municipal bus services and local government fleet), South African Police Services, Ekurhuleni Metro (Traffic) Department, Public Works, Education and Housing. Transport institutions approached include the following, ACSA, Intersite, Metro Rail, Taxi Association, etc. Other information was obtained from the Stats SA –2001 Census report.

3.2 Supply side data

3.2.1 Liquid fuel The oil companies that are active in the distribution of liquid fuel collect their sales data on a monthly basis per magisterial district and fuel type. It is centralised in a database that is maintained by Caltex, the company responsible for national statistics. An extract from this database for 2003 for the eight magisterial districts that to a great extent make up Ekurhuleni was provided to the Africon team by Caltex and was used as the basis for liquid fuel data in the energy balance and sectoral use of liquid fuels. A small discrepancy arises with respect to the data boundaries which is not significant, but which is noted for the purposes of this study.


3.2.2 Electricity Eskom supplies electricity to EMM. The Benoni regional office of Eskom supplied their data. EMM has no generation facilities. No IPPs or cogeneration plants are as yet operational within EMM.

3.2.3 Pipeline gas Pipeline gas is distributed directly by Sasol gas by means of a medium pressure pipeline and exclusively to larger industrial consumers. Sales data for 2003 was obtained directly from the marketing office of Sasol Gas as given in Section 6.2.

3.2.4 Renewable energy and energy efficiency Renewable and energy efficiency information come mainly from processed information by Eskom DSM and Bonesa. The latter has recently released a report outlining the energy efficient activities undertaken in major parts of the country including Ekurhuleni. However, information specific to EMM was difficult to isolate.

3.3 Demand side data Demand consists of:

actual consumption

suppressed demand (for electricity, consumption which would have occurred if load shedding had not taken place)

latent demand (demand which is not converted to consumption due to constraints in availability of the product or ability of the market to purchase the product).

These next sections generally deal with actual consumption, except where otherwise specified.

3.3.1 Energy carriers

3.3.1.1 Liquid fuels No independent demand data was available, so for the purposes of this study, demand is considered equal to supply. Further studies should examine losses in the supply chain and assess areas where demand may be suppressed due to distance from supply.

3.3.1.2 Pipeline gas No independent demand data was available, so for the purposes of this study, demand is considered equal to supply. Further studies should examine losses in the supply chain and assess areas where demand may be suppressed due to distance from supply.

3.3.1.3 Electricity Demand was assessed in terms of consumption, i.e. electricity billed by EMM and Eskom to consumers.

The electricity distribution license is held by EMM, although Eskom is also directly involved in the supply of electricity to some locations in the EMM boundary. Eskom mainly supplies Large and Small Power Users (mining, commerce, agriculture and industry and certain townships i.e. Daveyton, Etwatwa, Wattville, Duduza, Katlehong and Tsakane) and certain key consumers in mines and industry. The key consumers are distinguished by their reactive power consumption, measured in KVA.

The study entailed discussions and collecting documents and information from senior managers of the EMM Electricity Business, the individual municipalities and Eskom Customer Service. The individual municipalities could only provide the consumption


information on a per tariff basis rather than on a per consumer basis. For the purposes of this study, we have used the EMM submission to the NER on their sales of electricity during 2002 to determine the sales per customer basis for the period ending 1 January to 31 December 2003 (i.e. on a ratio basis). EMM data concerning specific demand sectors (i.e. own consumption and streetlighting) was derived from EMM’s submission to the National Electricity Regulator (NER) for 2002.

The information included in the report has been extracted from the following main sources:

Electricity supply and sales information for the 12 months ended 31 December 2003 from EMM;

Data from the municipalities’ financial systems for the 12 month ended 31 December 2003 (such as number of residential and non-residential consumers, consumption and billing)

Electricity supply and sales information for the 12 months ended 31 December 2003 from Eskom;

The information above was reviewed but was not independently audited.

3.3.1.4 Coal The data for coal was procured from merchants who supply coal in EMM for the period 1st January to December 2003. The data provided was not independently verified.

3.3.1.5 Biomass No data was received from for biomass, as it is mainly non-commercial and non-monetised. It is necessary to institute a study in future to determine the consumption of biomass in EMM. This is necessary as the unsustainable harvesting of woodfuel – a commonly used biomass in rural communities – has an adverse impact on the environment.

3.3.2 Energy users Please refer to Section 3.3.1.3 for electricity data collection on households, industry and construction, mining and quarrying, commerce, local government, agriculture and transport.

3.3.2.1 Households The 745 000 households in Ekurhuleni have the income distribution, for 2001, shown in Figure 3. Research into consumption patterns in the Ekurhuleni area suggests that a transition from third to first world consumption patterns occurs at around the R38 000 per annum household income level, in 2001. Typical of such trends is that of illuminating energy as shown in Figure 4.

In 2001 some 70% of the Ekurhuleni households had an annual income of less than the R38 000 level. The trend away from labour intensive agricultural and heavy industries towards “higher-tech” capital-intensive industries suggests that households with incomes above the “transitional level” are not likely to grow in proportion.


Figure 3 Distribution of household incomes in Ekurhuleni (2001)

Source: South African National Census, 2001

Figure 4 Correlation between household income and lighting energy source

A mini-household survey was carried out in the following areas:

KwaThema

Springs

Boksburg

Three categories of household were selected for the survey:

high income

low income

Distribution of Household Incomes

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

0 7,201 28,801 115,201 460,801 1,843,201

Household Income (R/a)

Num

ber

of H

ouse

hold

s

Correlation Between Household Income and Lighting Energy Source

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

R1 - 4800 R4801 - 9600 R9601 -19200

R19201 -38400

R38401 -76800

R76801 -153600

R153601 -307200

R307201 -614400

R614401 -1228800

R1228801 -2457600

OverR2457600

Household Income

Cor

rela

tion

Coe

ffici

ents

Electricity Gas Paraffin Candles Solar Other None


very low income.

The survey was administered through structured questionnaires and focus group discussions. A total of 30 surveys were administered in June 2004. The original results are provided in the Compendium.

The survey established the following energy use patterns.

Table 4 Survey results - energy use patterns in Ekurhuleni households

ACTIVITY WEALTHY HOUSEHOLDS

POOR URBAN HOUSEHOLDS

WITH ELECTRICITY

POOR URBAN HOUSEHOLDS

WITHOUT ELECTRICITY

Cooking Electric stoves and ovens, microwave ovens

Coal or gas stoves _

Lighting Incandescent/fluorescent light bulbs, candles

Paraffin lamps, candles

_

Heating the home Electrical bar or oil radiators

_ Paraffin lamps

Heating water Electrical geysers, solar water heaters

Few geysers installed

Paraffin

Refrigeration Electricity Electricity (some) _

Media appliances (entertainment)

Electricity and batteries Electricity and batteries

Electricity and batteries

3.3.2.2 Industry and Construction Non-electricity data for this demand sector was obtained from DME reports.

3.3.2.3 Mining and Quarrying Non-electricity data for this demand sector was obtained from DME reports.

3.3.2.4 Commerce Non-electricity data for this demand sector was obtained from DME reports.

3.3.2.5 Local Government Various municipal departments were called and questionnaires faxed to elicit energy data from them.Most of the data for local government energy usage was obtained from EMM’s Department of Transportation. The electricity consumption for local government was obtained from EMM’s submission to the NER.

3.3.2.6 Agriculture Data for agricultural demand was obtained from DME reports.

3.3.2.7 Transport Data for transport demand was obtained from DME reports. Transport data was obtained from specific EMM departments with vehicle fleets and transport institutions associations based and operating within EMM.


3.4 Data quality, availability and validity Data availability varies, especially at a disaggregated level. Those energy carriers that are supplied from centralised systems (electricity) or have centralised data systems (liquid fuels) are in a position to supply detailed data. This data is collected per marketing channel or tariff class that in many cases indicates the sector where the energy is used. Where this is not the case this allocation has to be done on an expert basis and by interpreting the liquid fuel data of SAPIA and the DME. The data is of good quality at the aggregated level except for coal, LPG and IP where no centralised marketing or data system exists. It is assessed that the inaccuracies that come from this situation are not material in terms of the results, conclusions or priorities of this project.

Table 5 overleaf shows the level of disaggregation of the main data sets.


Table 5 Source and level of disaggregation of data

DATA SET LEVEL OF DISAGGREGATION

DATA SOURCE COMMENTS

Electricity supply and sales information for the 12 months ended 31 December 2003 (EMM)

Customer Care Centres and tariff levels

EMM Electricity Department

The billing system does not currently provide consolidated information, i.e. consumption and billing. This leads to potential errors in reporting both consumption and revenues from electricity, which EMM staff are aware of. Furthermore, there is variable progress on digital representation of the distribution network – some CCCs still work with sepia drawings, while others use advanced computer aided drafting packages. There are plans to integrate EMM’s GIS and financial reporting systems.

Electricity supply and sales information for the 12 months ended 2003 (Eskom)

Customer Eskom Benoni Regional Office

Includes Large and Small Power Users and Key consumers. Consumption level per client is confidential for strategic reasons. There is still some uncertainty over the number of customers, including households, commercial, industrial and mining consumers.

Data from the municipalities’ financial systems for the 12 months ended 31 December 2003 (from CCCs)

Customer Care Centres and tariff levels

EMM Customer Care Centres

Information submitted on a per tariff basis. We have used the EMM submission to the NER on their sales of electricity during 2002 to determine the sales per customer basis for the period ending 1 January to 31 December 2003 (i.e. on a ratio basis).

Liquid Fuels Magisterial districts Caltex The base data is of good quality and is valid for this application other than the small discrepancy with the data boundaries as described in Section 3.2.1. A small loss of quality occurs as a result of the assumptions in terms of allocating the use of specific fuels to specific sectors. This effect is considered minor.

Coal Merchant Coal Merchants The major coal mining companies do not supply coal in EMM.

Piped gas Industrial sectors within EMM

Sasol Gas This data comes from one source and is used in one sector only. It is considered of good quality and fully valid. The names of individual consumers were not provided.

LPG Provided by municipalities within EMM

BP, Sasol Gas Other major companies supplying EMM did not provide any data for confidentiality reasons.

Renewable Energy and Energy Efficiency

Provincial Eskom, Bonesa, TSI

There is not much data on RE and EE pertaining EMM since few initiatives are undertaken. Industries are assumed to undertake their own EE initiatives, but this was difficult to collect.


Environment and air quality - emissions

Johannesburg Metro EMM State of Environment Report

Environment – health related General – not disaggregated

World Health Organization, International Association for Research on Cancer, Cigré, EPRI

Studies have been conducted internationally and results can be applied generally in EMM

Households EMM National Census Apparent discrepancy in total number of households and in households having access to electricity – census figures appear excessive in comparison with EMM billings

Transport – cars Africon transportation model will provide useful origin-destination matrices, based on EMM household surveys

Transport – rail Intersite, Metrorail

Transport – taxis Municipalities Taxi Associations


3.5 Study constraints The major constraints are the fact that the data is not readily available and that those that have to supply it have to spend some time in doing so. Liquid fuels and pipeline gas data was obtained relatively quickly indicating the use of an integrated database. In the case of electricity many persons had to be approached for different parts of the data. It was clear that an integrated database was not available and the data had to be extracted from a number of sources and spreadsheets. In the case of RE and EE data, not all information, particularly pertaining to EMM, was readily available.

3.5.1 Liquid fuels Liquid fuels data is collected on the basis of magisterial districts, a system that is

no longer generally in use. It was initially difficult to identify the magisterial districts and these boundaries do not fully conform to those of EMM.

Interpretations are required as indicated in Section 3.1 in translating this liquid fuel data into the sectors of use.

Sensitivity/business confidentiality relating to some data, especially Eskom data for large users.

No problems were experienced in obtaining pipeline gas data other than the total income from gas sales and by implication the negotiated tariff for large users.

3.5.2 Electricity The information on which this report is based is not readily available from any single point of contact. Information was obtained from a number of sources, and was collated and cross-referenced with data as was available to ensure integrity.

Although all municipalities store data (i.e. billing and payment information) on a similar system (the Venus System), the data is handled separately by the individual municipalities, consolidation is only carried out manually by EMM Electricity staff. A major difficulty experienced by EMM Electricity staff is a difficulty reconciling financial and technical information. For example, if a customer challenges a bill and receives a credit, although the system records the financial credit it is currently not clear whether the corresponding energy credit is correctly recorded. This problem is being addressed jointly with Finance and IT. The status of progress on this issue should be assessed when EMM designs its Energy Strategy, and appropriate support and actions planned with the relevant departments.

One aspect of the investigation that warrants specific comment is the energy balance. We attempted to quantity the loss profile by consolidating the information obtained from EMM and Eskom. We were however not in a position to verify the loss profile, as no consolidated energy balance is kept by EMM, in terms of bulk electricity purchases from Eskom by EMM and sales by Eskom and EMM to end consumers. This exercise is carried out manually by Electricity Department personnel who do not currently have the resources to fully resolve discrepancies.

The project team attempted to match the total consumption figure by Small and Large Power Users obtained from the Eskom Customer Service with a summary submitted by Sales and Marketing – Eskom Centre. The difference was approximately 14%. Eskom staff suggested that the potential reason for this overstatement is that electricity supplied by Eskom to Dipaleseng municipality is also included.

3.5.3 Environment and air quality With respect to the environment and air quality the following specific constraints were experienced:


Specific emissions for air quality data was unavailable;

Ambient data for atmospheric emissions was unavailable;

Quantification of GHGs and impacts from acid rain is difficult;

Specific data for animal and plant health unavailable;

Impacts of the agricultural sector minimal; and

Impacts of and on biomass use is unclear.

Data gaps and follow-up activities are also explained where relevant in each section.


4. ENERGY BALANCE An energy balance was carried out to assess the fundamental movement of energy through its main carriers through EMM.

4.1 Energy balance in physical terms All of the available energy supply and demand data was incorporated into the energy balance using the format adopted by the International Energy Agency (IEA). The level of disaggregation has been reduced as the source data does not support a detailed disaggregation. A number of interpretations or assumptions were made on the liquid fuel raw data in this process, mainly:

Liquid fuels sold by the “other commercial” marketing channel are taken as industrial use, other than petrol where the split is taken as 50% industry and 50% commerce.

IP sold by service stations and resellers is taken as use by households.

LPG sold by service stations and other resellers is taken as 50% household and 50% commerce.

The electricity data was mainly obtained from the submission by EMM to the NER and is for the 2002/2003 financial year July to June. No correction has been made to bring the different time periods into line at this stage, as the difference is not material. Coal sold by the four local merchants was stated to be 70% of its use in industry and 30% in households.

The results of the preliminary energy balance in physical units are presented in Table 6 below.

Table 6 Energy balance for EMM in physical units, 2003

In accordance with the IEA methodology, international and national aviation and marine bunkers are only considered in the top part of the energy balance, as the energy is not consumed within the area that is being analysed.

4.2 Conversion factors In order to convert the energy balance in Table 6 into a common energy unit, a multiple of the Joule, conversion factors for each fuel are required. Conversion factors for the same fuel differ to some extent internationally due to different physical characteristics of crude

Fuel Type Petrol Diesel Jet fuel Avgas Furnace oils IP LPG Sasol gas Electricity Coal

Units kl kl kl kl kl kl kl GJ MWh tonnesSecondary Imports 991,558 488,276 1,491,631 0 43,583 57,241 69,634 11,953,601 14,398,937 149,344less aviation bunkers 1,489,510less losses 1,963,285Secondary supply 991,558 488,276 2,121 0 43,583 57,241 69,634 11,953,601 12,435,653 149,344Households 52,394 29,577 44,803Industry/construction 5,698 68,024 43,583 3,111 10,481 11,953,601 104,541

Mining and quarrying 418 5,944 12Commerce 5,232 29,577Local Government 4,445 6,120Agriculture 270 14,801 1,608Transport 975,496 393,387 2,121 0 116Total final consumption 991,558 488,276 2,121 0 43,583 57,241 69,634 11,953,601 12,435,653 149,344


and therefore the production of the specific fuel. Table 7 indicates local and representative conversion factors as published by the DME3 in 1998.

Table 7 Energy conversion factors

Energy carrier Units Conversion

factor Energy carrier Units Conversion

factor

Petrol MJ/l 34.2 IP MJ/l 37

Diesel MJ/l 38.1 LPG MJ/l 26.7

Jet fuel MJ/l 34.3 Sasol gas GJ 1

Avgas MJ/l 33.9 Electricity MJ/kWh 3.6

Furnace oil MJ/l 39.9 Coal MJ/kg 24.3

4.3 Energy balance The energy balance in energy units (gigajoules – GJ – Joules x 1012) is given in Table 8 below. It has been simplified in comparison to the energy balance in physical units by grouping liquid fuels with similar use4 together.

Table 8 Energy balance for EMM, GJ in 2003.

4.4 Conclusions from Energy Balance The transport sector accounts for the largest use of energy in EMM (41%), followed by industry (36%) and then households (14%). The three remaining sectors are low in energy use in comparison as they account for 1% to 4% of the total each.

Linked to this distribution of sectoral energy use, liquid fuels of the various types supply 49.1% of the secondary energy, followed by electricity with 37.7% and pipeline gas with 10.1%.

3 DME, Digest of South African Energy Statistics, 1998. 4 Transport type liquid fuels- petrol, diesel, avgas and jet fuel. Stationary type liquid fuels: IP and LPG.

Energy Balance 2003, GJ Transport liquid fuels

Stationary type liquid

fuelsSasol gas Electricity Coal Total % of EMM total

Secondary Imports 103,750,293 5,713,927 11,953,601 51,836,175 3,629,059 176,883,055less aviation bunkers 51,162,943 51,162,943less losses 7,067,824 7,067,824 14%Total secondary energy supply 52,587,350 5,713,927 11,953,601 44,768,350 3,629,059 118,652,287

Households 0 2,728,271 0 13,157,643 1,088,718 16,974,631 14%Industry, construction 2,786,569 2,131,732 11,953,601 23,253,204 2,540,341 42,665,448 36%

Mining and quarrying 240,762 444 0 4,268,938 0 4,510,144 4%Commerce 178,917 789,693 0 2,585,869 0 3,554,479 3%

Local Government385,191 0 0 885,928 0 1,271,119 1%

Agriculture 573,152 59,496 0 595,335 0 1,227,983 1%Transport 48,422,758 4,292 0 21,434 0 48,448,484 41%Total, final use 52,587,350 5,713,927 11,953,601 44,768,350 3,629,059 118,652,287 100%% of total use 44.3% 4.8% 10.1% 37.7% 3.1% 100.0%


About 29% of the energy that is used within EMM is sold and used as aviation bunkers for international and national aviation. As this is not an EMM activity it is not considered or analysed. A small component is used in smaller aircraft from local airports.


5. ENERGY DEMAND

5.1 Overall demand The energy balance in Table 8 gives the total demand for energy in EMM in 2003. This is compared to the South African total for 2001 in Table 9. EMM consumes 4.5 % of the national total of all energy forms and more than this average for Sasol Gas (28.8%, which is understandable as it is only one of the three areas that is supplied with this gas) and liquid fuels (stationary applications at 13.5% and transport applications at 7.2%). Electricity is about the same as the total average but coal and biomass are significantly lower.

Table 9 EMM energy demand related to the RSA5 total (TJ)

Area Transport liquid fuels

Jet Fuel

Stationary type liquid

fuels

Sasol gas Electricity Coal Biomass Total

Total EMM, 2003

52,587 1 5,714 11,954 44,768 3,629 Low 118,652

Total for South Africa, 2003

407,659 69,089 43,426 42,926 662,649 681,257 198,870 2,103,906

EMM, % of South Africa

12.9% 0.0% 13.2% 27.8% 6.8% 0.5% 0.0% 5.6%

Source: DME, 2001 extrapolated and Energy Balance for EMM, 2003

5.2 By Energy Carrier

5.2.1 Liquid Fuels Liquid fuels consumed in South Africa include:

Petrol

Diesel

Paraffin, also known as illuminating paraffin (IP)

Jet fuel

Fuel oil

Liquefied petroleum gas (LPG)

This report will deal mainly with petrol, diesel, IP and LPG. Jet fuel is excluded because it is consumed outside of Ekurhuleni, and fuel oil information is combined with other stationary type fuels where necessary.

Liquid fuels are made in South Africa either by refining crude oil (about 70%) or by conversion of coal and natural gas (about 30%). South Africa’s consumption of liquid fuels over the decade to 2001 is shown in Figure 5 overleaf.

5 DME, RSA Energy Balance for 2001.


Figure 5 Consumption of Liquid Fuels in South Africa 1992-2001

Source: World Energy Council, South African Energy Profile 2003

While petrol consumption has traditionally been dominant, Figure 5 shows a potential swing in diesel and petrol consumption patterns.

EMM uses a surprisingly large component of IP (42.4%) and LPG (59.8%) in relation to Gauteng, as shown in Table 10. Petrol and diesel use is about 25% of that of the Province and petrol forms a high 9.3% of the national total.

Table 10 Regional and national use of liquid fuels, kl 2003.

Area Petrol, all grades

Diesel, all grades IP LPG

EMM 991 560 475 921 57 281 69 634

Gauteng6 3 923 936 1 583 064 134 985 116 484

South Africa6 10 668 487 7 263 079 768 146 568 702

EMM, % of Gauteng 25.3 30.1 42.4 59.8

EMM, % of national total 9.3 6.6 7.5 12.2

Extensive differences between the marketing of the different liquid fuels exist between the constituent parts of EMM in the form of the municipalities as can be seen in Table 11 overleaf.

6 Spreadsheet downloaded from SAPIA website, www.mbendi.co.za/sapia/rsacons.htm

Consumption of Liquid Fuels in South Africa 1992-2001

0

2,000

4,000

6,000

8,000

10,000

12,000

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Year

litre

s (m

illio

ns)

PETROLDIESELIPLPG


Table 11 Consumption of liquid fuels per municipality, kl in 2003

Jet fuel has been indicated separately in the right hand column of the table as most of it is not consumed within the boundaries of EMM. The jet fuel volume is high as it is about of the same order as the total of all other liquid fuels that are consumed within EMM. Most (99.9%) of this is in Kempton Park, at Johannesburg International Airport.

In terms of total municipal use Germiston, Alberton and Kempton Park are the largest and Springs, Brakpan and especially Nigel the smallest. Petrol is by far the dominant liquid fuel that is used within EMM (60%) followed by diesel (29%), with low usage of the other liquid fuels. The reason why furnace oil is mainly used in Springs is not known at this stage.

Heavy furnace oil consumption in EMM over a decade is shown in Figure 6 below.

Figure 6 Heavy furnace oil consumption in Ekurhuleni 1994-2003

5.2.2 Piped Gas Consumption in Ekurhuleni Sasol gas appears to be employed in industrial and commercial, rather than domestic, markets. The pattern of consumption, over a 2-year period, is shown in Figure 7 overleaf.

Municipality Petrol Diesel Avgas Furnace oil IP LPG Total % of total Jet fuel

Alberton 145,862 131,632 2,536 279 16,325 6,475 303,108 18% 55Benoni 135,523 48,095 1 22,560 13,278 219,458 13%Boksburg 142,470 49,020 3 1,172 534 193,200 12% 1,012Brakpan 52,978 30,430 284 1,936 630 86,258 5%Germiston 210,340 83,953 1,254 2,205 2,323 45,598 345,672 21% 1,054Kempton Park 213,336 87,096 980 2,706 10,495 2,177 316,790 19% 1,489,510Nigel 23,049 23,200 881 132 47,261 3%Springs 68,001 22,495 59 38,394 1,590 810 131,350 8%Total 991,560 475,921 5,117 43,584 57,281 69,634 1,643,096 100% 1,491,632% of total 60% 29% 0% 3% 3% 4% 100%

Heavy Furnace Oil Consumption in Ekurhuleni

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Jun-94 Oct-95 Mar-97 Jul-98 Dec-99 Apr-01 Sep-02 Jan-04 May-05

Date

Con

sum

ptio

n (l/

mon

th)

Alberton Benoni Boksburg Brakpan Germiston KemptonparkNigel Springs Total Poly. (Total)


Figure 7 Pattern of Piped Gas Usage in Ekurhuleni

5.2.3 Electricity This section sketches the context within which electricity is provided in the EMM boundary. The electricity distribution license is held by EMM, although Eskom is also directly involved in the supply of electricity to some locations in the EMM boundary.

This section describes the following:

Connection profile – number and type of electricity customers for EMM and Eskom

Consumption profile – a breakdown of electricity consumption by demand sector

Income profile – revenues generated by EMM and Eskom by sales of electricity within EMM

Total Consumption

Total Income

Consumption and billing profiles by Service Delivery Area (SDA)

5.2.3.1 Connection Profile Table 12 shows the number of customers served by EMM and Eskom within the EMM boundary. EMM serves some 315 500 customers and Eskom some 140 000 customers.

Eskom’s consumers are split into small and large power users and key consumers. The key customers consist of:

three mines

three smelters

two water pumping stations

one paper mill.

EMM dominates the supply of electricity to households, manufacturing and commercial customers (52% of households other than low usage, 99% of the manufacturing and 90% of the commercial customers in the EMM boundary) while Eskom dominates supply to mining (96%). Please note that the number of households with low usage supplied by Eskom is accounted for under ‘Households’. Eskom could not make a distinction.

Pattern of Piped Gas Consumption in Ekurhuleni

-

50 0 ,00 0

1,0 0 0 ,00 0

1,50 0 ,00 0

2 ,0 0 0 ,00 0

2 ,50 0 ,00 0

Dec-02 Jan-0 3 Mar-0 3 May-03 Jun-03 Aug-03 Oct-0 3 Nov-0 3 Jan-0 4

Date

Mon

thly

Con

sum

ptio

n (G

J)

G1 Metal Industry G2 Mining & Non-Metal G3 Chemical,Pulp,Paper

G4 Manufacturing G5 Food & Commercial


Table 12 Number of electricity customers by category

Eskom EMM Total Customers Number % of

total* % of

split**Number % of

total*% of

split**Number % of

total*

Household low usage

15% 138 610 44% 100% 138 610 30%

Household 136 000 97% 48% 150 212 48% 52% 286 212 63%

Agriculture 1 859 1% 34% 3 620 1% 66% 5 479 1%

Mining 27 <1% 96% 1 <1% 4% 28 0%

Manufacturing 22 <1% 1% 3 963 1% 99% 3 985 1%

Commercial 1 640 1% 10% 15 191 5% 90% 16 831 4%

General*** 3 801 1% 100% 3 801 1%

Total 139 548 100% 31% 315 398 100% 92% 454 946 100%

Source: Eskom, 2003 and EMM submission for 2002/03 to NER

* % of total indicates the specific category’s portion of the total market

** % split indicates how the category is serviced by Eskom and EMM

*** General – this category includes own use, streetlights

5.2.3.2 Consumption Profile This section provides the consumption by:

demand sectors (category of customer)

municipality (including energy supplied to domestic customers directly by Eskom).

The total consumption by the different demand sectors for the period 1 January to 31 December 2003 is reflected in Table 13. It also indicates how the sales are split between EMM and Eskom. The total consumption for the EMM boundary amounts to some 12 435 653 MWh. EMM was responsible for the supply of 8 917 464 MWh (72%) within the EMM boundaries in 2003, while Eskom supplied 3 518 189 MWh (28%).

Table 13 Overview of electricity sales by category of customer

Eskom EMM Total Customers Sales

(MWh) % of total*

% of split**

Sales (MWh)

% of total*

% of split**

Sales (MWh)

% of total*

Household low usage

0% 0% 971 683 11% 100% 971 683 8%

Household 201 427 6% 8% 2 484 164 28% 92% 2 685 590 22%

Agriculture 119 558 3% 72% 45 844 1% 28% 165 402 1%

Mining 1 008 256 29% 85% 177 682 2% 15% 1 185 938 10%

Manufacturing 2 028 356 58% 31% 4 433 912 50% 69% 6 462 268 52%

Commercial 160 592 5% 22% 558 088 6% 78% 718 680 6%

General*** 0% 0% 246 091 3% 100% 246 091 2%

Total 3 518 189 100% 28% 8 917 464 100% 72% 12 435 653 100%

Source: Eskom and EMM, 2003

* % of total indicates the specific category’s portion of the total market

** % split indicates how the category is serviced by Eskom and EMM

*** General – this category includes own use, streetlights


It indicates that EMM dominates the electricity supply to all customers except agriculture and mining where Eskom dominates.

Manufacturing dominates the consumption profile (52%) followed by households (30%). In terms of consumption, agriculture, mining, transport and general are extremely small.

Table 14 indicates that the average consumption varies from 2 101kWh/month for customers served by Eskom and 2 356kWh/month for customers served by EMM. Eskom could not clarify the low consumption for households.

Table 14 Average electricity consumption per customer class

Eskom EMM CUSTOMERS

kWh/customer/month kWh/customer/month

Household low usage 584

Household 123 1 378

Agriculture 5 359 1 055

Mining 3 111 901 14 806 853

Manufacturing 7 861 846 93 236

Commercial 8 159 3 062

General* 5 395

Total 2 101 2 356

Source: own calculation

* General – this category includes own use, streetlights

Table 15 indicates Eskom’s direct supply to nine large customers. They range from number 30 to 119 on the Eskom national list of 125 large and key customers. It is likely that a high electricity load factor and the use of a very advanced time-of-day and possibly an interruptible tariff are being used. However, these cannot be made explicit in a publicly available report, since information on the demand, consumption and cost for electricity is generally of a strategic nature to the key customers.

Table 15 Eskom Large Power Users within the EMM boundary

Company Location Sector

Scaw Metals Germiston Industrial

Zinc Corp SA Springs Industrial

Sappi Fine Papers, Ernstra Mill Springs Industrial

Impala Platinum Refinery Springs Industrial

Rand Water Board, Palmiet Alberton Commercial

Rand Water Board, Zwartkopjies Alberton Commercial

SATS Sentrarand Commercial

Nigel GM Co, Grootvlei Shaft Springs Mining

Enderbrooke Investments, Hercules

Boksburg Mining

Enderbrooke Investments, Far East

Boksburg Mining

There is significant variation in the amount of energy sold and the respective income per unit of electricity sold in the various municipal distributors, as reflected in Table 16. These


range from 2% to 23% of the total energy sold for Nigel and Germiston respectively. Germiston and Kempton Park are the largest distributors.

Table 16 Electricity sales per municipality, 2003

Municipality Sales (MWh)

% of Total Energy Sold

Alberton 1 037 614 12%

Benoni 807 341 9%

Boksburg 1 167 371 13%

Brakpan 339 215 4%

Germiston 1 952 311 23%

Nigel 174 447 2%

Edenvale 661 374 8%

Kempton Park (including Tembisa)

1 501 039 17%

Springs 1 030 661 12%

Total 8 671 373 100%

Source: Individual EMM Municipalities, 2003

Please note that the category of General Consumption, which includes own use and streetlighting, is excluded from Table 16.

5.2.3.3 Prepaid and credit metering systems If it is assumed that prepaid meters correlate with lower household income groups and credit meters with higher income groups then Figure 8 overleaf suggests that Brakpan, Germiston and Springs are the most active areas for prepaid installations, at least in the time period examined (2003-2004). These are east-west axis towns. Credit meter installation activity is taking place principally in Kempton Park, on the north-south axis.


Figure 8 Residential credit and prepaid meter installations in EMM

1 Alberton 6 Germiston

2 Benoni 7 Kempton Park

3 Boksburg 8 Springs

4 Brakpan 9 Tembisa

5 Edenvale

5.2.3.4 Trends in new connections in EMM

Although new connections tend to support the emphasis on north-south development, the activity at Boksburg is anomalous (Figure 9). Certainly Alberton, Benoni, Brakpan, Edenvale, Springs and Tembisa show little activity in the area of new connections.

Frequency in Residential Credit and Prepaid Meter Installations in the

Ekurhuleni Area (2003/2004)

-500

0

500

1000

1500

2000

2500

0 1 2 3 4 5 6 7 8 9 10

Municipalities

Con

nect

ion

Freq

uenc

ies

Residential Credit Meter Residential Prepaid Meter


Figure 9 Trend in power connections in major municipalities

1 Alberton 6 Germiston

2 Benoni 7 Kempton Park

3 Boksburg 8 Springs

4 Brakpan 9 Tembisa

5 Edenvale

5.2.3.5 Electricity sales related to Gauteng and South Africa EMM consumed 21.1% of the electricity that is sold in Gauteng and 4.9% of that in the country as indicated in Table 17

Trend in Power Connections in Major Municipalities

-10 0

10 20 30 40 50 60 70

0 1 2 3 4 5 6 7 8 9 10

Municipality

Freq

uen

cy f

or 2

003

/20

04

Business <100A Business 100A - 150A Business 6.6/11kv <1MVA Business 6.6/11kV >1MVA Business >11kV >1 MVA


Table 17 overleaf. Proportionately the household consumption is much higher than the total average for Gauteng and the country and commercial use is proportionately higher than the total for Gauteng. Agriculture and mining are low in comparison to the total, but the reason why this is also the case with transport is not known. Manufacturing electricity use is proportionately about the same as the provincial and national totals.


Table 17 Comparison of electricity sales in EMM, Gauteng7 and South Africa8

5.2.4 Coal Not much coal is consumed in Ekurhuleni, considering the fact that of the national annual coal sales of about 3 million tonnes, only 149, 344 tonnes (5%) were consumed in this area in 2003. Coal is used mainly in coal-fired boilers and in households for space heating, cooking and warming. About 30% of the coal supplied to Ekurhuleni is used in households with the balance going to industry/construction.

Due to the significant air pollution problem caused by the combustion of coal, particularly in households, there are strategies by the Department of Minerals and Energy (DME) to provide townships with low-smoke fuels and other relatively cleaner forms of energy. Air pollution emanating from the domestic combustion of coal results in acute respiratory illnesses, poor visibility and mars the aesthetics of physical structures.

In this regard, the use of relatively cleaner forms of energy like electricity, LPG, paraffin and piped gas is being advocated by the DME. Reasons cited by households that use coal, especially for space heating during winter include the fact that coal is comparatively cheap and the lack of financial resources to purchase new appliances for other fuels. In most households, old coal stoves that have been used by previous generations are still in use.

5.2.5 Biomass

5.2.5.1 Animal dung Of all the above energy carriers, animal dung is the least commercial and monetised. Animal dung is less used in Ekurhuleni and its use is mainly for heating and cooking. It has a non-energy use for the plastering of huts in rural areas. However, since Ekurhuleni is highly urbanized, such use is infrequent.

5.3 By energy users

5.3.1 Household profile According to the national census, there were approximately 745 000 households in Ekurhuleni in 2001. The pattern of households, as of 2004, is still characterized by a

7 Data for 2001 obtained from NER website, www.ner.org.za, and adjusted with the overall national

increase from 2001 to 2002 of 3.9%. 8 Data for 2002 from NER publication, Electricity Supply Statistics, 2002.

Category EMM, 2002/3

Gauteng, adjusted to

2002

South Africa, 2002

EMM, % of

Gauteng

EMM, % of RSA

Household 3486670 11292162 30418481 30.9% 11.5%Agriculture 46253 455441.49 4677037 10.2% 1.0%Mining 179267 5012442.5 32620848 3.6% 0.5%Manufacturing 4473458 21001441 83163878 21.3% 5.4%Commercial 563066 1855442 18227266 30.3% 3.1%Transport 6011 710661.45 6245726 0.8% 0.1%General 273302 2388422 9594798 11.4% 2.8%Total 9028027 42716013 1.85E+08 21.1% 4.9%


smaller, largely white suburban component occupying cores within larger, largely black settlements arranged on the historical township model.

Like households in the rest of South Africa, these households tend towards a complex multiple fuel use pattern to serve their energy needs:

space heating

water heating

air conditioning

appliance use, including

o cooking

o refrigeration

lighting

power tool use

electronic news/entertainment media

The Energy White Paper (1998) makes several key points about household demand:

energy services for low-income households have historically been inadequate

households suffering unemployment and poverty rely on less convenient and often unhealthy fuels

grid electrification may not satisfy the energy needs of low-income households

most household energy consumers are women

energy conservation by high-income households was not historically a policy priority

coal use in urban areas results in indoor air pollution

energy security for low-income households can help reduce poverty, increase livelihoods and improve living standards.

5.3.1.1 Discrepancy between national census and EMM statistics Given the number of household customers for EMM and Eskom combined in 2003 (424 822) as shown in Table 12, the urban electrification rate of 71.9% in Gauteng in 20019 (NER) and the number of households reported in the national census in 2001 (744 936), there appears to be a significant discrepancy between the census and EMM’s statistics.

Of these approximately 745 000 households, the census provides an indication of the minimum number of households which apparently have access to electricity in the survey of electricity use for lighting and cooking, as shown in Table 18 overleaf.

9 NER, http://www.ner.org.za/stats/statistics_gauteng.htm


Table 18 Energy source for lighting and cooking in EMM in 2001

ENERGY SOURCE LIGHTING COOKING

Electricity 557,601 488,909

Gas 1,591 7,262

Paraffin 28,861 190,265

Candles 154,321 -

Solar 1,127 1,700

Wood - 2,460

Coal - 51,598

Animal dung - 1,649

Other 1,435 1,092

Total 744,936 744,935

Source: SA National Census, 2001

This implies that a minimum of approximately 560 000 households had access to electricity in 2001. Extrapolating conservatively (on a linear basis, at 5% per year or 10% over two years) to 2003 implies an additional 56 000 households had access to electricity, for a total of 616 000 grid-connected households in comparison with 425 000 EMM/Eskom customers.

The proportion of households using electricity for lighting (77.5%) shown above is high in comparison with the NER’s published statistic of 71.9% urban electrification in Gauteng in 2001.

EMM’s records are thorough and rigorously cross-checked through the billing system. EMM and Eskom staff indicated that they are in a process of verifying the number of households served in the EMM boundary.

Sources of this discrepancy could include:

Overestimation of the number of households in Ekurhuleni in the census

Overestimation of the number of households using electricity for lighting (through possible misunderstanding of the question by census respondents, as well as derivation or interpolation on the basis of overly generous assumptions of electrification rates)

Illegal connections, although most municipalities report these to be a relatively small percentage of total connections.

This difference needs to be examined through a more thorough investigation of how the census household numbers and electricity usage patterns were derived.

5.3.1.2 Domestic energy consumption in EMM In South Africa, the type of energy used by rural and peri-urban areas depends on the season and availability. For instance, a lot of coal is burnt in townships in the highveld during winter for space heating, whilst more illuminating paraffin (IP) and liquefied petroleum gas (LPG) are used during summer. In general, the type of energy carrier used by less affluent households depends on availability, cost and accessible combustion appliance. Ekurhuleni is highly urbanised and industrialised, as such less non-commercial energy carriers like woodfuel and animal dung are used than in rural areas in South Africa.

In comparison with other sectors, households consumed 16 974 631 GJ energy in 2003, accounting for 14% of the total energy demanded in EMM in 2003 (ref Table 8). This made the household sector the third largest energy consumer in 2003.


5.3.1.3 Low-income household energy use Although electrification has made inroads into patterns of energy consumption, significant numbers of families still use IP, woodfuel, coal, animal dung and candles as shown in Table 19.

Table 19 Energy usage in lower income groups

5.3.1.4 State of Electrification Most households in EMM are connected to a source of grid electricity, as shown in Table 20.

Experience suggests that lighting and electronic news media are the two main applications for electricity even when more traditional fuels are used for cooking and heating.

Table 20 Energy usage for lighting in Ekurhuleni

ENERGY SOURCE

1996, NO. OF HOUSEHOLDS

2001, NO. OF HOUSEHOLDS

CHANGE BETWEEN 1996 AND 2001

Electricity 405,546 557,601 37.5%

Gas 1,356 1,578 16.4%

IP 16,185 28,848 78.2%

Candles 114,587 154,290 34.6%

Although there was some 38% increase in electricity usage for lighting between 1996 and 2001, the increase in IP was double that, suggesting that IP is considered either more readily available (no connection fees or activities needed) and/or more affordable for certain illuminating purposes. The difference in consumption growth between electricity and IP for lighting should be examined in more detail.

FUEL TYPE COOKING,

NO. OF HOUSEHOLDS

HEATING, NO. OF HOUSEHOLDS

LIGHTING, NO OF

HOUSEHOLDS

IP 190 264 99 221 28 861

Woodfuel 2 460 10 724

Coal 51 598 142 437

Animal dung 1 649 1 045

Candles 154 320


Table 21 provides a good indication of the reasons for the preferences for IP and coal in low-income households. LPG is deemed expensive and used by those in relatively high-income strata. However, most of the use of coal occurs in winter, when a relatively cheap source of energy is required for space heating. It is interesting to note that cost per unit energy of LPG is similar to that of electricity.


Table 21 Comparative prices of household energy carriers in Ekurhuleni, 2004

Energy Carrier Price per Unit Energy, Rand/MJ % Relative to LPG price

LPG 0.10 100

IP 0.08 80

Coal 0.02 20

Electricity 0.10 100

Little woodfuel is used in Ekurhuleni relative to electricity, gas, IP and coal, as shown in Table 18 and Table 19. This appears normal, as Ekurhuleni is urbanised, with limited access to “free” woodfuel as in rural areas. Woodfuel use in the East Rand is confined to heating and cooking. Nationally, the bulk of the woodfuel utilisation occurs in rural areas where most of the trees and plantations are located.

5.3.1.5 Key demographic characteristics of Ekurhuleni The racial distribution of the EMM area is shown in Figure 10.

Figure 10 Racial Distribution in Ekurhuleni, No. of Persons

The population is largely young to middle-aged (ref Figure 11 overleaf) with the largest group lying within the 15 to 34 age group ranges. It is of interest to note that the male component of the population is greater than the female, suggesting that a component of the EMM population may be migratory in character.

AfricanColouredIndianWhite


Figure 11 Age distribution in gender categories in the Ekurhuleni area

The EMM contains a core of adequately educated people (Table 22) suggesting an adequate people resource for industrial expansion. The problem lies with the changing nature of industrial production and the lag in more educated people entering the workplace. This is illustrated by Table 23 where an increase in people employed of 12.7%, over the period 1996 to 2001, was matched by an increase in unemployment of 61.5% over the same period.

Table 22 Education profiles for Ekurhuleni

NUMBER OF PEOPLE

CATEGORY 1996 2001

No schooling 124 488 153 663

Some primary 148 543 192 045

Complete primary 86 022 95 034

Secondary 516 389 597 858

Grade 12 268 220 457 203

Higher 73 543 165 303

Table 23 Employment status for Ekurhuleni residents

NUMBER OF PEOPLE

CATEGORY 1996 2001

Employed 675 551 761 040

Unemployed 319 496 516 033

Not economically active 467 390 514 422

Total labour force 1 462 437 1 791 495

0100,000200,000300,000400,000500,000600,000

Male

s - 0 to

4

Males -

5 to

14

Males -

15 t

o 34

Male

s - 35

to 64

Males -

Ove

r 65

Fem

ales

- 0 to

4

Female

s - 5

to 14

Female

s - 1

5 to

34

Female

s - 3

5 to

64

Female

s - O

ver 6

5

Age ca tegory

No.

of H

ouse

hol

ds


The salary profile for the EMM area, shown in Figure 12, conceals a wide salary distribution discrepancy which is illustrated through a comparison of income distribution in two wards, shown in Figure 13 (Ward 39) and (Ward 76).

Figure 12 Income distribution in the Ekurhuleni area

Figure 13 Income distribution in Ward 39

Distribution of Household Incomes

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

0 7,201 28,801 115,201 460,801 1,843,201

Household Income (R/a)

Num

ber

of H

ouse

hold

s

NoneR1 - 4800R4801 - 9600R9601 - 19200R19201 - 38400R38401 - 76800R76801 - 153600R153601 - 307200R307201 - 614400R614401 - 1228800R1228801 - 2457600Over R2457600


Figure 14 Income distribution in Ward 76

The EMM area is dominated by formal housing (Figure 15), a measure of the relative age of the area during which settlement has been dominated more by planning than influx. This is an advantage when considering the implementation and maintenance of services such as electricity, water and transportation.

Figure 15 Types of housing in the Ekurhuleni area

5.3.1.6 Household Energy Use Electricity is the most used energy carrier in households in Ekurhuleni, as summarized in Table 24 overleaf.

NoneR1 - 4800R4801 - 9600R9601 - 19200R19201 - 38400R38401 - 76800R76801 - 153600R153601 - 307200R307201 - 614400R614401 - 1228800R1228801 - 2457600Over R2457600

FormalInformalTraditionalOther


Table 24 Household energy use by carrier

ENERGY USE (%) SOURCE

LIGHTING HEATING COOKING

Electricity 74.84 61.73 65.63

Gas 0.21 1.62 0.97

Paraffin 3.87 13.32 25.54

Wood N/a 1.44 0.33

Coal N/a 19.12 6.39

Animal dung N/a 0.14 0.22

Solar 0.15 0.15 0.23

Candles 20.72 N/a N/a

Other 0.19 2.48 0.15

Source: State of Environment Report 2004 adopted from STATSSA 2001 Census

5.3.1.7 Energy user profile Energy usage characteristics tend to correlate with income levels. Thus, modest use of woodfuel, coal and IP corresponds to the lower income wards with more prolific use of electricity and transportation fuels correlating with the wards with higher income levels.

Of the c. 150 000 tonnes of coal consumed in the EMM annually, some 30%, or 44 800 tonnes are consumed by households.

The dominance of electricity, coal and IP in cooking and heating is evident from Figure 16 and Figure 17. Electricity also dominates; however, lighting with candles is the preferred medium of lower income groups, as shown in Figure 18.

Figure 16 Classification of fuel usage for cooking by race

0

100,000

200,000

300,000

400,000

500,000

600,000

Electricity Gas Paraffin Wood Coal Animal dung Solar Other Fuel

Hou

seho

lds

Black African Coloured Indian or Asian White


Figure 17 Classification of fuels for heating by race

Figure 18 Classification of fuels for lighting by race

A source of energy growing in importance is that of gas, particularly LPG. Suppliers are giving much attention to capturing some of the domestic market from more traditional energy sources such as electricity and coal. The 350 000 tonnes of LPG consumed nationally, each year, has the following consumption pattern:

Commercial 19%

Industrial 41%

Agriculture 6%

Mining 1%

Automotive 0.1%

Domestic 33%

0 50,000

100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000

Electricity Gas Paraffin Wood Coal Animal dung Solar Other Fuels

Hos

ehol

ds


0 100,000 200,000 300,000 400,000 500,000 600,000

Electricity Gas Paraffin Candles Solar Other Fuels

Hou

seho

lds



5.3.1.8 Energy costs Energy costs have been estimated from a combination of historical survey and inflation data. Per unit price paid for various energy carriers varies according to location, transportation costs and mark-up tolerance. Table 25 shows average energy costs.

Table 25 Estimated average energy carrier costs for Ekurhuleni

1992 1992 1992 1992 2004 2004 2004 2004 2004 2004

Supplier Purchase

Price

Supplier Sales Price

Retailer Purchase

Price

Retailer Sales Price

Supplier Purchase

Price

Supplier Sales Price

Retailer Purchase

Price

Retailer Sales Price

R/MJ R/GJ

IP (R/l) 0.82 0.93 0.95 1.36 1.76 1.99 2.04 2.91 0.08 78.75

Coal (R/t) 66.7 110.4 136 203.6 142.90 236.52 291.36 436.18 0.02 17.95

LPG (R/l) 0.75 0.98 0.92 1.296140032 1.60 2.10 1.98 2.78 0.10 104.00

Electricity (R/kWh) 0.3605 0.10 100.14

The cost to the domestic sector of selected energy carriers is given in Table 26 below:

Table 26 Estimated costs of various energy carriers in the Ekurhuleni domestic area

ENERGY CONSUMPTION HOUSEHOLDS CONSUMPTION

DISTRIBUTION EXPENDITURE EXPENDITURE DISTRIBUTION

(MJ) (R/a)

IP 1,938,541,000 10.5% 152,652,827 9.55%

LPG 1,572,603,300 8.5% 163,550,743 10.23%

Woodfuel 1,290,528,211 7.0% 6,452,641 0.40%

Coal 1,088,712,900 5.9% 19,542,384 1.22%

Electricity 12,552,012,000 68.1% 1,256,944,535 78.60%

Total 18,442,397,411 100.0% 1,599,143,130 100.00%

5.3.1.9 Best mix of energy and appliances Preferred usage of fuels would be electricity and LPG, from an environmental point of view. However these are also the two more expensive energy sources. If parameters such as safety and health costs are accounted for, then the acceptance matrix shown in Table 27 could apply.


Table 27 Acceptance Matrix for Energy/Appliance Combinations

ENERGY CARRIER COOKING WATER

HEATINGSPACE

HEATINGLIGHTINGENTERTAINMENT REFRIGERATION

Electricity g g a g g g

IP a i a I I a

Woodfuel a i a i i

Coal i i i i i I

Animal dung i i i i i i

LPG g a g i i a

Candles a i

g = good

a = acceptable

i = inappropriate

5.3.1.10 Policies and programmes

At present there are two programmes applicable to the EMM situation:

Electrification: an ongoing process

LPG: The DME has undertaken to institute trial programmes, involving LPG suppliers, to establish the economic parameters involved in the replacement of coal and IP with LPG. South African LPG appears to be more costly than in other parts of the world and the intention is, through price reduction and, possibly, subsidisation, to bring LPG within the reach of lower income groups.

5.3.1.11 Trends and developments Analysis suggests that there is an economic “transit point” that governs the transition of consumers from “third” to “first” world patterns. In 2001 this transition point appeared to lie at a household income of about R30 000 pa. In 2001 some 70% of the EMM population had household incomes (at least those declared) below this level. It is probable that, with a transition to higher-tech industries and the decline of agriculture, mining and heavy industry, that this proportion will grow.

5.3.1.12 Major gaps, constraints and issues Information available for analysis is inadequate due to:

New ward configurations replacing the old municipal areas

A failure to expand data collection to include elements that would facilitate specific EMM analysis

5.3.2 Industry and construction Ekurhuleni has by far the largest industrial concentration in the country, accounting for a very large proportion of national output in sectors such as:

machinery and equipment (37%)

other chemicals (35%)


metal products (33%)

plastics (29%).

In spite of the dominance of industrial activity located in Ekurhuleni, the area’s share of national energy usage, with the exception of Sasol gas, is modest, as shown in Table 9.

Energy carrier inputs in the metals sectors of Ekurhuleni are shown, in money terms, in Table 28.

Table 28 Energy costs in the Ekurhuleni metals sector

INPUT SECTORS

BASIC IRON AND STEEL

(Rmn)

STRUCTURAL METALS

(Rmn)

OTHER FAB. METALS (Rmn)

Coal and lignite products

Petroleum products

Electricity

1 473

529

2 069

-

56

66

2

61

163

Industry and construction consumed 36% of the total energy demand in EMM in 2003. In absolute terms, this amounts to 42,665,448 GJ. This was the second biggest sectoral consumption of energy in EMM for the same year.

5.3.3 Mining and quarrying Although gold mining is the primary mining activity within the EMM, other resources that are mined include coal, silver, dolomite, clay, sand and rock. Most of the mining activities occur in the Southern and Eastern SDRs. From Table 8, the total energy consumed by mining and quarrying in 2003 amounted to 4 510 144 GJ which represents 4% of the total energy demand in EMM in that year.

Eskom dominates the electricity supply to mines. Mines are mainly classified as Large Power Users and Key consumers. The main distinction between Large Power Users and Key consumers is the size of KVA (and not kWh). Table 29 indicates the actual and average consumption for the period 1 January to 31 December 2003.

Table 29 EMM mining electricity consumption profile

AREA NUMBER OF CONSUMERS

ACTUAL (MWh)

AVERAGE CONSUMPTION (MWh/MONTH)

Key Consumers

Brakpan 1 58 348 100 4 862 342

Springs 5 409 278 247 6 821 204

Boksburg 3 324 589 151 9 016 365

792 215 498 7 335 329

Large Power Users 15 216 040 317 12 002 240


5.3.4 Commerce The energy consumed by commerce in 2003 was 3,554,479 GJ. This represents 3% of the total energy consumed in EMM in 2003 (Table 8).

5.3.5 Local government Local government accounted for 1% of the total energy consumed in EMM during 2003, which is equivalent to 1,271,119 GJ (Table 8).

5.3.6 Agriculture In 2003, agriculture consumed 1,227,983 GJ of energy, which was equivalent to 1% of the total energy consumed in EMM in that year (Table 8).

A quantitative indication of the agricultural activity decay rate is provided by a profile of industrial paraffin usage, a commodity associated with agriculture, as shown in Figure 19.

Figure 19 Consumption of power paraffin in Ekurhuleni

5.3.7 Transport sector

5.3.7.1 Historical spatial planning10 The EMM area basically comprises the nine former local authority areas of the East Rand. Each local authority had a town centre, industrial areas, low density residential developments fringing the town centre and a high density township area adjacent to, and on the outskirts of, the town.

Despite the segregation of activities reinforced by the policies of apartheid, Ekurhuleni has a relatively efficient spatial structure with these town centres and a few other significant development nodes, including Johannesburg International Airport and the East Rand Mall. Most transport movement is between the residential areas and adjacent towns. In most cases the movements which predominate are from the townships to the town centres and industrial areas.

10 Much of the information in this section has been extracted from an Africon annual progress report on

public transport to EMM for 2002.

Consumption of Power Paraffin in Ekurhuleni

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Jun-94 Oct-95 Mar-97 Jul-98 Dec-99 Apr-01 Sep-02 Jan-04 May-05

Date

Con

sum

ptio

n (l/

mon

th)

Alberton Benoni Boksburg Brakpan Germiston

Kemptonpark Nigel Springs Total Poly. (Total)


5.3.7.2 Road network There are good road and rail linkages between the nine commercial centres. The N3, N12, N17 and R21 provide for long-distance movement within and beyond the EMM. Congestion on these freeways is increasing, with heavy freight vehicles becoming an ever-increasing proportion of the traffic.

Ekurhuleni has some 8 439 km of roads, of which 6639 km are tarred and 1 800 km are gravel11, and including 360 km of freeways. By and large the EMM does not suffer from traffic congestion. Only 7.2 per cent of roads experience a level of service E and another 3.5 per cent level of service F (indicating a high level of congestion). The congestion index for all roads in Ekurhuleni is considerably lower than either Johannesburg or Tshwane.

EMM has the greatest length of freeway, 0.43 lane-kilometres per 1000 population compared with 0.29 in Johannesburg and 0.42 in Tshwane. Freeway and arterial road provision per square kilometre in EMM is comparable with both Johannesburg and Tshwane (0.46 lane-km/km2 of freeway and 1.05 lane-km/km2 of arterial road compared with 0.59 and 1.67 in Johannesburg and 0.37 and 1.09 in Tshwane respectively). Considering the amount of vacant and rural land in the EMM, the foregoing indicates good road provision in the EMM with adequate spare capacity.

The transport sector was the biggest consumer of energy in EMM in 2003. In absolute terms this was 48, 448,484 GJ and represented 41% of the total energy consumption in the municipality. The relatively high energy consumption gives credence to the fact that residential areas are far removed from businesses, making commuting very necessary.

5.3.7.3 Rail transport The commuter rail services are operated mainly on railway lines owned by the SA Rail Commuter Corporation (SARCC). In addition, commuter rail services extend to some sections of the Spoornet owned railway network. Metrorail, a business unit of Transnet Ltd., operates the commuter services in Gauteng. Germiston Station (in the Ekurhuleni Municipal area) is one of the largest stations in Gauteng and serves main line passengers as well as freight. All railway services from the north run through the Germiston Station.

The rail system in Ekurhuleni comprises 70 existing commuter rail stations. The most important stations and halts in terms of passenger volumes are Germiston, Kempton Park, Oakmoor, Daveyton, Dunswart, Elandsfontein and Isando. Line capacity utilisation was calculated from the November 2000 timetables for the peak hour ranges from 15% to 89%. The design capacities of the rail network hardly limit the number of services offered, whereas temporary reductions of the line capacity can affect utilisation beyond the theoretical figures.

The total number of passengers using Metrorail is given in Table 30 overleaf, based on the ticket sales and passenger traffic from EMM’s larger stations on any given day of the week. These stations encounter an average total of 238 000 passengers per day. This translates to 5 355 000 per month (assuming a 22.5 days month).

11 EMM comments on draft EMM State of Energy Report, 15 October 2004.


Table 30 Rail passenger traffic in EMM

WITS METRO RAIL Average/Day Passengers Per Week Day 1,460,000

Passengers Saturday 690,000

Passengers Sunday 346,000

EMM LARGER STATIONS

Germiston 94,000

Tembisa 23,000

Kempton Park 41,000

Oakmoor 25,000

Leralla 28,000

Daveyton 27,000

238,000

TICKET PRICES Single fare shortest distance R3.50

Single fare farthest distance R8.50

Weekly fare R17.00

Weekly fare R35.00

Monthly fare R60.00

Monthly fare basic metro class R127.00

Source: Gautrans/Metrorail/SARCC Census 2002

Intersite owns and manages stations and traction (track and associated signals and control systems). Electricity payments by Intersite are presented in Table 31 overleaf. Electricity consumption for Intersite railway operations in Ekurhuleni cost was of the order of R1 450 000 in 2003.


Table 31 Intersite electricity payments for railway operation

STATION ELECTRICITY

Springs 'MARCH 2004 26,0722

Kempton Park + Tembisa 154,567

Alberton Jul 03 to Jun 04 109,421

GREATER BENONI (Stations) April 2003-Mar 2004 3,022

GREATER GERMISTON 587,415

BENONI

Northmead Station 33

Benoni station and signals 16,333

Dunswart -

Dunswart 487

Van Ryn Station 163

BOKSBURG

Boksburg Station 2,134

Boksburg 4,586

Dunswart 4,897

Boksburg -

East Rand 4,724

Knights 6,709

GERMISTON

Wadeville station standby 521

Germiston station 1,128

Germiston station 342

Gosforth Park

Simpan station standby

President station

Driehoek signals standby 1,261

Wadeville station standby -

India station signals standby supply

Germiston signals standby supply

Elsburg station signals

Elandsfontein signals standby 361

Germiston staion

Elsburg station standby 1

Ravensklip station 1,210

Wadeville station 4,523

Elsburg station (Perway workshop) 5,783

Germiston Branch Road 5,550

Elandsfontein 256

Germiston New Account Snet 74

Signal standby Kempton Park

Kempton Park (Perway) 5,330

Kaalfontein station 33,953

Oakmoor 10,458

Tembisa 5,151

Kempton Park 2,882

S.A.R. signal room SPRINGS 142

ALBERTON 1,987

TOTAL (Monthly) R 120,980


5.3.7.4 Bus transport Three types of subsidised bus operators currently operate inside the boundaries of the EMM as follows:

1) Municipal operators:

Local authorities own these services. There are three municipal operators in EMM:

Brakpan Bus Company

Boksburg Bus Services

Germiston Bus Services.

Brakpan Bus Company transports mainly workers (98%) between Tsakane and destinations in Brakpan and Springs. Boksburg Bus Services renders a scholar transport service, specifically during the early morning and early afternoon peak periods. The distribution between scholars and workers/casuals in the case of Germiston Bus Service is much more balanced, compared with the Brakpan and Boksburg services. Of all passengers transported, 39 per cent are scholars, while 61 per cent are workers and/or casuals. Service rendering is extremely wide, covering amongst others areas such as Katlehong, Boksburg, Primrose and surrounding areas, Rondebult, Klopper Park, Gerdview, Sunny Ridge, Leondale, Els Park, Wadeville, Isando, Malvern East and Johannesburg CBD. These bus services differ drastically in extent and nature in terms of operational, financial and infrastructure needs.

Of EMM’s total vehicle fleet of 3 995, the municipality owns/hires 113 buses. The petrol and diesel consumption of this fleet was not available. EMM have 101 municipal buses and as a result of 12 buses being destroyed by fire, have hired 10 from Putco to cover their route.

The roads transport and civil works department of EMM have highlighted the challenges facing the EMM bus operation service as the growing financial burden which is presently running at an R18 million deficit; The inability of these buses to handle peak hour traffic leads to overloading and sometimes under utilization as passengers seek other modes of transport as this fleet old and unreliable; The bus service is controlled by three different municipal services with different operating systems and structures, with no uniform tariff.

This department envisages a way forward as service restructuring, amalgamation of services, revenue protection, fleet safety audit, review of the fare structure and implementation of a uniform service for these three municipalities controlling these fleets.

The municipal bus fleet has carried 2 839 578 passengers between July 2003 and June 2004, within the limited operating area of Germiston, Brakpan (Tsakane) and Boksburg.

2) Privately owned subsidised operators: These are private or publicly listed enterprises with ownership in the hands of individuals or shareholders. PUTCO operates the following business units within the boundaries of the EMM: PUTCO Soweto, PUTCO Ekangala, PUTCO Comuta; and J.R. Choeu. These business units are mainly subsidised by the Provincial Department of Public Transport, Roads and Works (GAUTRANS). In total, 313 peak buses (30 from the former KMC area) operate 829 trips over 560 routes and carry approximately 37 000 passengers per day in the morning peak.

3) Private non-subsidised services: These are rendered on a contract basis to various private clients and are not subsidised by any authority. Examples are Megabus, a division of Unitrans, which is contracted by ESKOM to transport workers, and which operates between Tembisa and Megawatt Park and Choeu Express with contracts for private services between Tembisa and Midrand, Edenvale and Alrode.

Road conditions in some of the residential areas are poor, as are passenger facilities. Passenger information is also poor, as evidenced by the difficulty in establishing accurate supply information. There is no co-ordination of services between the entities, limited


service between municipalities within the EMM area, but substantial cross-boundary movement between the EMM and the City of Johannesburg. The rationalisation of bus services and the subsidisation of bus passengers is receiving EMM’s attention. The municipal bus operators are experiencing growing competition from the taxi industry on the shorter routes. The current operators do not serve the EMM community as a whole, and expectations do exist for the bus service to be extended to those areas that are currently not served by municipal bus services. Such a move would in turn dramatically increase the financial burden on the EMM.

5.3.7.5 Mini-bus taxi service operations In line with the adoption of the “one town, one association” policy, most of the former municipalities in the EMM area (with the exception of Kempton Park and a few others) have only one taxi association. There are about 15 long distance taxi associations operating from within EMM leading to a total of 35 taxi associations operating in the region.

The Mini-bus Taxi survey (CPTR project) was conducted during one month in February/March 2002. The following are the most significant findings that is related to the use of energy:

There are over approximately 11 280 minibus taxis operating in EMM (the taxi associations confirm that in 2004 there are over 18 000 taxis operating in EMM)

A total of 30 170 taxi trips were made during the morning and afternoon period

A total number of 381 919 passenger trips were undertaken in this period

The average vehicle occupancy is 12.7 passenger per trip, reflecting an average vehicle utilisation of about 84%, assuming the average vehicle capacity is 15 passengers

Each vehicle undertakes on average of 2.7 trips per taxi vehicle during the two peak periods, which increases to about 3.3 trips per day per vehicle

The total EMM area is under pressure, as more than 50 per cent of all routes are over supplied

The most critical areas of oversupply are Brakpan and Nigel.

The taxi associations are effectively acting as the regulatory authority for their respective operating territories, which they protect at all costs. This often results in forced transfers for passengers at municipal boundaries and the need for additional capital costs for ranks to facilitate such transfers. Except in isolated cases, supply generally exceeds demand. This over-trading, coupled with a flat fare structure regardless of distance travelled, contributes to a lack of financial viability.

EMM has 22 Taxi Associations, five of which are long distance transport (i.e. they travel the inter-provincial route) and the remaining 17 are local, with some travelling to Johannesburg and Pretoria. A list and contact details of these association is provided in the Compendium. As of August 2004, these associations had 18 000 vehicles and carry a minimum of 450 000 passengers per work weekday during peak hours (6 am to 8 am and 15:30 to 20:00). Each minibus consumed a minimum of R300 of petrol per day at August 2004 prices, resulting in a total minibus petrol consumption of R5 400 000 of petrol per day.

5.3.7.6 Road based private transport Private transport is the dominant mode of transport in EMM. The Africon Transportation Model (still in preparation) indicates there are a total of approximately 300 000 private vehicles travelling in Ekurhuleni (includes travellers from external origins and those heading to external destinations) during the peak morning rush hour (06:00 to 09:00). In order of magnitude terms, the model shows that during rush hour, about 26 000 vehicles travel to Ekurhuleni to internal destinations, and about 46 000 vehicles travel from Ekurhuleni to


external destinations. The study has not examined passenger vehicles by fuel type or type of vehicle.

5.3.7.7 Johannesburg International Airport The property is controlled by the Airports Company of South Africa (ACSA) – a subsidiary of Transnet. Table 32 below provides energy consumption information.

Table 32 Energy consumption at Johannesburg International Airport

JOHANNESBURG INTERNATIONAL AIRPORT

Substation Isando - Super Substation

Freight - North Substation

SAPO - East Substation

Total kWh (Jan - Dec 2003) 94,765,909 23,483,811 3,851,320

Highest Demand kVA (Jan - Dec 2003) 17,520 19,268 831

5.3.7.8 Energy use The modal split for liquid fuel use in the transport sector in South Africa is reflected in Table 33. Road transport is by far the major energy user as it accounts for 85% of the use of the total sector. Air transport (6% international, 5% local) and rail accounts for small percentages of the total use. These figures are not available for EMM.

The second last line gives the use of transport energy in EMM, which amounts to 8.1% of the total for liquid fuels used in the transport sector and 0.1% of electricity used in this sector. These relationships are not fully understood and have not been studied in depth.

Table 33 National and EMM use of energy in the transport sector, TJ in 20015.

Transport sector Coal Liquid fuels Electricity Total

% of

total

South Africa

International air transport 37 840 37 840 6%

Local air transport 28 978 133 29 111 5%

Road 525 978 79 526 057 85%

Rail 67 8 160 19 60112 27 828 4%

Pipeline 182 182 0%

Total 67 600 956 19 995 621 018 100%

% of total 0 97% 3% 100%

Ekurhuleni

EMM total 0 48 525 21.6 48 546

EMM as % of national total 0% 8.1% 0.1% 7.8%

5.3.7.9 Current developments and plans An Integrated Transport Plan (ITP) as prescribed by both the new National Land Transport Transition Act and the Local Government Transition Act is under development. In addition an Operating License Strategy (OLS) is under development that addresses the role of each transport mode, the use of public transport facilities, the avoidance of wasteful

12 Includes 7067 TJ that is listed under “Transport non-specified”.


competition, the conditions that needs to be imposed by the operating licenses and balancing the demand and supply of minibus-taxis service. These are rolling activities and progress is made on a continuous basis.

EMM has also commissioned a study on regional land use with an associated transportation demand model which addresses specific needs within the context of the National Land Transport Transitional Act, with inference made into the Provincial Planning Framework and its focus on public transport. A detailed household survey was carried out under this study, being carried out by Africon, in order to identify the various types of travellers and establish typical itineraries. The model produces Origin-Destination matrices for different types of travellers, as shown in Figure 20.

Figure 20 Scheme of the EMM transport model

The study is expected to be available by end October.

Modal split

Trip distribution

Trip Generation

Activity model

Multinomial LOGIT Model

Destination choice model

Inhabitants by population group

Activity chainsBy population group

Attractiveness data of zones

Matrix of PuT quality

Separation Matrix by activity

Total Trips O - D matrix,total trip chains

Travel time matrix by mode

Travel cost matrix by mode

Distance matrix

Access + Egress time matrices Additional Mode matrices

O - D matrix on foot

O-D matrixtrain

O - D matrixtaxi

O - D matrix car

O-D matrixbus


5.3.7.10 Energy efficiency in transport The efficient use of energy in transport is a complex topic that has not as yet received much attention in South Africa. The IEA inter alia reviews this topic13 and states “transport presents one of the biggest challenges to policy makers”. It separately reviews passenger and freight transport as different conditions apply and indicates that cross country comparisons and trends are in most cases not possible because of the different conditions. The study indicates that a number of factors are of importance. These include:

Structural in the form distance travelled, quality and congestion of roads;

Availability, convenience and cost of public transport;

Vehicle characteristics, how they are used and fuel choice; and

Cost and therefore the affordability of the different modes of transport, including where applicable capital and operating costs.

In a later publication14 the IEA states “…trends in transport energy use and greenhouse gas emissions in IEA countries are currently on an unsustainable path…Most forecasts indicate that these trends are not likely to change significantly in the coming years without substantial new policy initiatives”. Government policies have been and are used in most countries to modify some of these factors, in South Africa mainly the use of fuel taxes on liquid fuels. The DME in its draft energy efficiency strategy15 refers to fiscal policies (mainly the fee bate16), regulations/standards/codes of practice, public information programmes and programmes to change transport infrastructure (moving from road to rail) and the demand placed on it by users (spatial planning).

5.3.7.11 Gaps, constraints and issues Extensive gaps exist on disaggregated data on transport energy use linked to the activity of that part of the transport sector. Activities will have to be expressed in kilometres travelled for the different vehicles types cross-correlated with the passengers or freight transported. Trends over time are not possible at this stage.

The major issue is to what extent the integration and coordination of the different transport systems that are taking place will address the issue of energy use and therefore the influence of air pollution and greenhouse emissions.

5.4 Constraints and issues

Constraints experienced on sourcing data from local government institutions and respective modes of transport were the unavailability of the relevant personnel handling such data. Some of those who were present, promised to send the information and had to be followed to do so.

EMM’s Department of Health undertook to coordinate the collection of data from all health institutions, however when the information was provided no statistics were included. The Department advised that all these institution use only electricity and no other forms of energy, such as diesel or petrol. This does not address the question of alternative sources of energy, e.g. during power failures.

Most of EMM’s energy data is administered by the Department of Public Works. It was not possible to contact the relevant personnel in the Department during the course of the project.

13 IEA, The Link between energy and human activity, 1997. 14 IEA, Toward a Sustainable Energy Future, 2001, page 151. 15 DME, Draft energy efficiency strategy for the RSA, April 2004. 16 The license fee related to the fuel efficiency of the vehicle.


6. ENERGY SUPPLY This section deals with energy supply by carrier, i.e. by fuel type.

6.1 Liquid fuels

6.1.1 Supply chain At present there are seven refineries in South Africa. Of these, four are of conventional design as they convert mainly imported crude oil to a series of refined products (Cape Town, two in Durban and Sasolburg), one uses natural gas as the feedstock (Mossgas) and two use coal and are termed synfuel plants (Secunda). These refineries produce a range of products to satisfy the market demand. In addition, they export surplus production as is determined by the technology of the specific refinery and the demand of the local market.

Most of these refined products are transported by means of pipelines to main depots where the marketing components of the fuel companies takes ownership and transports to depots, resellers and filling stations by means of road or rail tanker. It is therefore not possible to identify the source of a specific product. Sales in EMM would most possibly come from Sasolburg, Secunda and possibly Durban.

The South African LPG distribution chain shown in Figure 21 below is a typical petroleum supply and distribution chain. Gauteng is the major consumer of LPG, but mostly for industrial and other commercial enterprises.

Figure 21 Industry structuring and market share of LPG

Source: DME & UNDP (2004)

The LPG distribution is not as long and complex as the paraffin distribution chain (shown in


Figure 22) and often does not extend as close to homes as would be desired. One assumption is that this situation is due to the greater safety requirements associated with LPG handling. Routers (bulk distributors), which are financially supported by oil companies to set up their operations, are responsible for distributing paraffin to retailers.

6.1.2 Distribution and Marketing of Liquid Fuels Liquid fuels are marketed by a variety of channels, from direct in the form of large contracts by large consumers to marketing via service stations and other resellers. Table 34 provides this breakdown.

Table 34 Marketing of the different liquid fuels in EMM, kl in 2003

As can be seen in Table 34, the most important marketing channel is by means of service stations (66% of total sales), followed by “other resellers” (14%) and the direct marketing to larger companies as “other commercial” and “road trucks”, both 8% of the total.

6.1.2.1 Distribution and Retail of Petrol and Diesel Service stations are approved on a roster basis to ensure that all parts of the country are provided with an efficient system of fuel supply and to guard against the proliferation of service stations. Local authorities are responsible for local approvals in terms of land use approval, vehicle access to sites and health and safety in terms of local and national regulation.

6.1.2.2 Distribution and Retail of Illuminating Paraffin Paraffin can be purchased from a number of outlets, the most common being informal spaza shops and individual homes, formal supermarkets and filling stations. The degree of accessibility varies from one area to another. To a large extent this established paraffin distribution network has worked well in promoting the use of paraffin in poor communities. On the other hand, the long paraffin distribution network works to the disadvantage of the final consumer, as shown in Figure 22).

Even when the refinery price of paraffin is reduced and/or zero-rated for VAT, this normally does not filter through to the final consumers. The major beneficiaries are the various distributors, intermediaries in the distribution chain and a few bulk-buying households. Since many poor households purchase paraffin in small quantities, they often do not realise the benefits of price reduction since they are likely to have bought their IP supplies from small spaza shops or private homes selling paraffin to supplement income.

Marketing channel Petrol Diesel Avgas Furnace

oil IP LPG Total % of total Jet

Service stations 949,645 145,113 389 969 194 1,096,310 66% Other resellers 17,640 92,088 51,425 58,959 220,112 13% Farmers 3,631 54 3,685 0% Co-ops 270 11,170 4,728 1,554 17,722 1% Other commercial 10,463 55,105 43,584 2,797 10,481 122,430 7% 1,063,638 Central government 389 641 1,031 0% Local government 4,056 5,479 9,535 1% Transnet 342 5,638 5,980 0% 427,994 Mining 418 5,944 12 6,375 0% Constriuction 467 12,919 314 13,699 1% Buses 1,014 9,751 10,764 1% Road trucks 6,857 140,797 116 147,770 9% Total 991,560 488,277 5,117 43,584 57,241 69,634 1,655,412 100% 1,491,632 % of total 60% 29% 0% 3% 3% 4% 100% 90%


Figure 22 A typical complex paraffin distribution chain

6.1.2.3 Distribution and Retail of LPG17 Compared to other similar economies, South Africa has the least penetration of LPG in the residential sector, as shown in Table 35. Some of the reasons for this are the corresponding cheap price of coal-generated electricity, as well as the unusually high price of LPG. In Botswana, LPG is significantly cheaper than in South Africa.

Table 35 Comparison of LPG consumption in emerging economies

Source: DME & UNDP (2004), www.langegas.com/statwle.htm

6.1.3 Petrol and Diesel Both fuels are used mainly in vehicle transport; diesel is also used in power production. South Africa is a net exporter of both petrol and diesel. Diesel is denser than petrol and has a lower calorific value, and internationally is generally less expensive on a volumetric basis. As shown in Table 34, the consumption of petrol and diesel in Ekurhuleni was

17 Most of the data and analysis adapted from DME & UNDP (2004): LPG Rural Challenge Workshop, South

Africa – Workshop Background and Briefing paper.

Refinery

Depots

Routers

Major Retailers (& other small routers)

Medium size retailers

Small Retailers (Spaza shops)

Private Homes

Final Consumer


991 560 kl and 488 277 kl respectively in 2003. Comparison with Figure 5 shows that diesel consumption in Ekurhuleni is still proportionately lower at 49% of petrol consumed than the national trend of diesel consumption increasing from 53% of petrol consumption in 1992 to 62% in 2001.

In environmental impact terms, the burning of petrol in an internal combustion engine produces more carbon dioxide than does diesel, which in turn produces more NOx and SOx than petrol. With improving diesel refining techniques, sulphur levels are being reduced, thereby improving the overall profile of diesel as a transport fuel in comparison to petrol.

6.1.4 Illuminating Paraffin Paraffin is very similar to jet fuel in chemical composition. It is sold in bulk liquid format usually from fixed storage tanks or small, portable 200, 20 or 5 litre drums. Although it is often mistaken as water, it is highly toxic, highly flammable and has a very low viscosity. Nearly 800 million litres are manufactured and sold each year nationally (Truran 2004).

About 92% of the illuminating paraffin (IP) used in the East Rand is consumed by households. Smaller amounts of IP are used by Industry/Construction and Agriculture. A full breakdown is provided in Table 36.

Table 36 Sectoral Demand for Illuminating Paraffin in Ekurhuleni

This is expected, considering the fact that IP is predominantly used for lighting and cooking in comparatively less affluent households. The subsidy put on IP by the Government through exemption from VAT encourages its use by households with relatively low incomes.

Recently, campaigns have been mounted to improve the safe use of paraffin by the Paraffin Safety Association. Interviews conducted with experts suggest that accidents caused by IP emanate from ingestion by children as well as accidental knocking-over, in particular, during the night. Most fires and burns in poor settlements have been attributed to the use of paraffin. As indicated elsewhere in this report, the DME is promoting LPG and other low-smoke fuels (coal) in order to minimise the use of paraffin, due to its toxicity when ingested, ease of spreading fires and illicit use by farmers through mixing with diesel. Paraffin appliances are usually more affordable, albeit substandard. The SABS has recently launched a campaign to improve the quality of paraffin stoves.

6.1.5 Liquefied Petroleum Gas (LPG) The terms LPG and LNG are related and are sometimes used interchangeably (erroneously) in South Africa. For clarity, the terms are defined below.

LPG consists primarily of propane, propylene, butane, and butylene in various mixtures. It is derived from natural gas deposits and is also produced in the crude oil refining process. It is stored as a liquid by increasing pressure. LPG is the generic name for commercial propane and commercial butane.

Sector Consumption, %Households 91.6Industry/Construction 5.4Mining & Quarrying 0.0Agriculture 2.8Transport 0.2Total 100.0


Natural gas is primarily methane, and other hydrocarbons (including propane and butane), water, carbon dioxide, nitrogen, oxygen and some sulphur compounds. Liquefied natural gas (LNG) is natural gas that has been cooled to -259 degrees Fahrenheit (-161 degrees Celsius), at which point it is condensed into a liquid which is colourless, odourless, non-corrosive and non-toxic. During the liquefaction process, natural gas is cooled below its boiling point, removing most of these other compounds. The remaining natural gas is primarily methane with only small amounts of other hydrocarbons. In South Africa, the source for natural gas is the offshore field just south of Mossel Bay.

The major consumers of LPG in Ekurhuleni are households, commerce and industry/construction with demand figures of 43%, 15% and 42% respectively as shown in Figure 23 below. The relatively low consumption figure for industry/construction is because this sector relies more on electricity, piped gas and cheaper liquid fuels for its energy requirements.

Figure 23 Sectoral Distribution of LPG in Ekurhuleni

There are plans to accelerate the use of LPG in the residential sector, particularly in low income households in order to reduce the use of dangerous IP. A strategy is being developed by the DME to roll out LPG, and it is envisaged that municipalities will play a key role in implementing the LPG strategy.

6.1.6 Policy and regulatory context Government has for many years regulated parts of the liquid fuel sector. At present the refinery gate price of petrol, diesel, IP and LPG is controlled, as is the retail price of petrol. These prices are based on the international crude oil price and are adjusted monthly.

6.1.7 Liquid fuel pricing The government uses a recently introduced formula, the Basic Fuel Price (BFP) 18 to calculate liquid fuel prices. The BFP is an import parity pricing formula based on spot prices, introduced to replace the in-bond landed cost (IBLC) formula in use in South Africa from the 1950s to 2003, which calculated the cost of landing the product at specified South African ports, based on posted prices from a basket of four foreign refineries (one in Bahrain and three in Singapore). The objective of using import parity pricing is to match the cost of importing finished product.

18

This a system or methodology which was implemented in April 2003, and based on the revised import-parity pricing for determining a refinery gate price, and a rate-of-return mechanism to calculate the wholesale price and cost recovery for retail margins. Therefore, BFP price is not really a regulated price at the refinery gate since refineries are not legally bound to sell their products at this price.

42%

15%

43%Households

Industry/Construction

Commerce


Figure 24 Composition of the Retail Price of Petrol and the Wholesale Price for Diesel and IP in Gauteng for the period 01/09/2004 30/09/2004

Source : http://www.shell.co.za/vpower/pprice.htm

6.1.7.1 Petrol, Diesel and IP Prices The basic price of petrol is based on 50 per cent Platts’ (a price reporting agency) spot price assessment in the Mediterranean refining area and on 50 per cent Platts’ spot price assessment in Singapore. (The IBLC formula was based on 80 per cent posted prices at refineries in Singapore and Bahrain and on 20 per cent spot prices in Singapore). The basic prices of diesel and illuminating paraffin are based on 50 per cent Platts’ spot price assessment in the Arabian Gulf and on 50 per cent of Platts’ spot price assessment in the Mediterranean area19.

Table 37 Prices for liquid fuel products, 2003

Petrolretail

Diesel wholesale

IP wholesale

Average price, c/litre 393.1 338.9 248.3

Minimum price (June 2003) 361 298.9 209.3

Maximum price (April 2003) 426 391.9 294.3

6.1.7.2 LPG Price At present the retail price of LPG is not regulated. The price of LPG is controlled and regulated by the DME at the refinery gate, by the imposition of a maximum transfer price, based on the BFP formula for Mossgas 93, less R75 per tonne.

19 The IBLC formula was based on 80 per cent posted prices at refineries in Singapore and Bahrain and on

20 per cent spot prices of refineries in Singapore. (These prices are sourced from http://www.transportandconstruction.co.za/press/press200029.html )


The nominal refinery gate price is based on the IBLC. The current maximum refinery gate prices of LP Gas are R2,348 per tonne at the SAPREF, Engen, Calref and Mossgas coastal refineries and R2,676 per tonne at the Secunda inland refinery.

The current retail price as indicated by one of the major companies is R49.92 per 9 kg fill (coastal) and R54.41 per 9 kg fill (inland), which equates to R5,547 per tonne (coastal) and R6,046 per tonne (inland).

Added to this, resellers can add approximately R30 to a 9 kg fill (R79 to R84 per 9 kg fill). This equates to R8,880 per tonne (coastal) and R 9,379 per tonne (inland). It is clear therefore that a very significant part (around 70%) of the retail price is made up of distribution costs and margins. It should be noted that some retail outlets sell 9kg cylinders at R65, including VAT.20

Table 38 Price build up from supply to end-use

While LPG is not a controlled product (meaning that its retail price remains unregulated), the DME is considering regulating the price using petrol-related import parity pricing, but it is not clear whether regulating the price would contribute to lower prices to the consumer. The experience, for instance, with the removal of VAT in the retail price of IP is not entirely satisfactory. The commissioned National Treasury study (CIS 2004) reveals that the “subsidies have not reached the beneficiaries”. It is anticipated that a regulated LPG retail price will face the same problem and the biggest challenge would, as with IP, be the “policing” the price or at least communicating the price to the consumers.

6.1.7.3 Illuminating paraffin price VAT is not applied to paraffin sales. Paraffin is a regulated product and the DME sets the maximum retail price monthly. The current regulated price of paraffin is R 2.05 per litre (coastal) and R 3.03 per litre (inland), however it is reported that these prices are not enforced.

6.1.8 Trends and developments It has been indicated that transport energy is the major energy user in EMM. It is therefore also the major energy related pollutant as the pollution takes place at the point of use. The South African government plans to supply clean petrol and diesel as from 2006. The various transport planning and rationalisation activities will also lead to a more efficient transport sector with lower energy use. Two topics that also need to be addressed are the use of low energy use bicycles and pedestrian transport, both of which have very specific planning and legislation and implementation implications. They at present are administered in a very ad hoc fashion with significant consequences in terms of lack of safety.

20 Much of this analysis is based on the recently completed study by the CI Services (LTD) Pty (March

2004), “The LPG Rural Energy Challenge: South Africa LPG Industry Report”.


Extensive new transport technology developments, such as the highly efficient hydrogen vehicle, are expected during the next decade. These developments will have to be monitored and addressed in terms of infrastructure and policy when they become a commercial reality.

6.2 Pipeline gas In 1964 Sasol Gas as it is known today was established and started with the construction of its first pipeline to supply hydrogen rich gas to industrial consumers in Gauteng from the Sasol works at Sasolburg. This pipeline was completed in 1966 at a cost of R30 million and connected 250 consumers to the network. A second back up pipeline of 95 km was constructed in 1981 that connected the Secunda plant to the gas network at Springs. At present Sasol Gas supplies in excess of 700 industrial customers in Gauteng and Mpumalanga via a pipeline network in excess of 1400 km from the production plants at Sasolburg and Secunda. Since 1998, pipeline gas is also supplied to KwaZulu Natal via a Petronet pipeline. The gas pipeline consists of a ring that connects Alrode, Germiston, Wadeville, Lilionton, Elandsfontein, Isando, Spartan, Tembisa, Olifantsfontein, Geduld, Springs, Nuffield, Nigel, Brakpan and Boksburg/Benoni.

6.2.1 Developments at the national level Sasol has initiated delivery of natural gas from the Temane gas field in Mozambique via the Temane-Secunda gas pipeline. The DME’s view on the impact of this additional carrier in the South African energy market, as expressed in the Integrated Energy Plan, is reproduced below:

“With respect to forthcoming new primary energy supply, it is pertinent to state that natural gas is scheduled to be delivered to South Africa from Mozambique during the year 2004. The initial capacity of the gas transmission pipeline is 120 MGJ per year. To place this into perspective, the 120 MGJ per year is equivalent to approximately 3800 MW, which assuming a 50% conversion efficiency to electricity, is equivalent to 1900 MWe or approximately one half an Eskom (“six pack”) electricity generation station. Approximately one third of the natural gas coming from Mozambique is scheduled to be used by Sasol as a replacement for coal as a feedstock, another one third is scheduled to replace syngas in Sasol’s existing gas market, and the remaining one third is to go into Sasol’s expansion of the gas market.”

The Government has been considering mechanisms for encouraging SMMEs to engage in the gas business, as spinoffs from the pipeline. The Government has also looked at the potential for the introduction of natural gas to derive Clean Development Mechanism (CDM) credits through a Central Energy Fund (CEF) project funded by the Public Private Infrastructure Advisory Facility (PPIAF) of the World Bank.

6.2.2 Piped gas in EMM The consumption of pipeline gas in 2003 in Ekurhuleni is indicated in Table 39. The largest consumer group is manufacturing with 139 customers but this is made up of generally small consumers as the average use per customer is the lowest. In terms of the use of gas “Mining and non-metallic” and “Metals” are the largest, also in terms of the average use per customer. The table shows that households are not reticulated with pipelines supplying gas in EMM.


Table 39 Supply of Pipeline Gas in 2003

6.2.3 Policy and regulatory context The enactment of a Gas Act in 2002 that makes provision for the appointment of a natural gas regulator, the crafting of Petroleum Pipeline Bill and the National Gas Infrastructure Development Plan provide an enabling environment for the growth of the gas industry in the country. These developments are sequel to the key policy challenges in the White Paper on Energy Policy of 1998. The key policy objectives are for the development of the gas industry to stimulate inter-fuel competition, provide relatively lower gaseous emissions, present greater options for industrial thermal applications and increase the diversity of fuel supplies, hence improve South Africa’s energy security. For granting Sasol a monopoly (First Gas), the Government has instituted a price cap on piped gas from Mozambique for the next ten years. It is possible that the piped gas industry will be deregulated after 10 years.

6.2.4 Pricing Sasol Gas uses a market value pricing mechanism. This is defined as equating the price of gas to that of the import parity price of the mix of logical alternative energy carriers as calculated in October each year and is then differentiated on a volume basis. These prices for 2003 are given in Table 40. At high levels of consumption, above 400,000 GJ per annum, prices are negotiated.

Table 40 Price of Sasol Gas in 2003

6.2.5 Trends and developments With the piping of natural gas from Temane, Mozambique, to Secunda, South Africa, starting from February 2004, the pipelines that transported coal gas from Secunda to EMM

Sector Number of customers

Use in 2003 (GJ) % of total

Use per customer

(GJ)Metal 109 3,794,680 32% 34814Mining & Non-metal 28 4,680,985 39% 167178

Chemical, Pulp, Paper 52 1,615,427 13% 31066

Manufacturing 139 971,157 8% 6987Food & Commercial 35 891,352 7% 25467

Total 2003 363 11,975,634 100% 32991

Consumption, GJ per annum

Price (R/GJ)

0-5000 87.195001-15000 79.2215001-40000 71.5740001-10000 62.3100001-400000 54.05More than 400000 46.2


are being converted to transport natural gas. It is envisaged that residential areas will be reticulated to enable them to utilise natural gas.

6.3 Electricity

5.3.1 Supply purchases EMM purchases most of its electricity from Eskom, mainly on the Megaflex time-of-use tariff. A total of 34 Megaflex, 13 Nightsave and 3 Miniflex accounts exist that are related to dedicated supply points. For the month of March 2004 the Megaflex accounts varied from 1.7 MW (Clayville) to 112 MW (Boksburg North), R85,000 to R7.9 million and load factors of 38% (Kwa Thema) to 91% (Boksburg Mapleton).

Total EMM purchases from Eskom and CityPower in 2003/4 amounted to 10 528 929 MWh as indicated in Table 41. Eskom provides directly an additional 3 870 008 MWh to consumers (i.e. small and large power users and key consumers) within the EMM boundary. Please note that we obtained only the Eskom sales figures to these customers. We have therefore estimated the Eskom purchases by assuming a 9% loss.

Table 41 Electricity purchases in 2003

Type of sale MWh % of total

Purchases from Eskom 9 753 910 68%

Purchases from City Power

775 019 5%

Eskom sales to Key consumers and large and small power users

3 870 008 27%

Total 14 398 937 100%

Source: EMM and Eskom, 2003

6.3.1 Policy and regulatory context

These are outlined in Section 2.

6.3.2 Tariffs EMM has developed a set of tariffs that follow the example of Eskom in including time-of-day and seasonal components. This followed a period of rationalisation of the individual tariffs of the constituent municipalities that culminated in these standard tariffs. The present tariffs came into force on 1 January 2004 and are summarised in Table 42.


Table 42 Summary of EMM electricity tariffs21 in 2004, excluding VAT.

TARIFF

NAME DESCRIPTION

FIXED CHARGE PER

MONTH

CONSUMPTION22, ¢/kWh

DEMAND22, R/kVA/month OTHER

A Low consumption household Nil 36.05/38.01 Nil Use reduced by 50 kWh/month23

B Medium to high consumption household

78.86c/A 28.51/30.5 Nil Ditto

C

Bulk supply above 25 kVA for large household, business and industry24

R256 to R1025 13/16.82 47.74/53.58 Ditto for households

D Bulk supply above 500 kVA24,25 R1025

24.69/16.35/ 12.34 summer26,

80.6/23/27/ 13.79 winter

14.07

E Contracted load shed 27 As Tariff C As Tariff C As tariff C

Rebate when called to do so of 13% on both the demand and

consumption charges

Based on data of six of the nine municipal distributors, Tariff A accounted for 5.1% of electricity sales, Tariff B for 25.4%, Tariff C for 62.4% and Tariff D for 7.1% and no sales occurred for Tariff E. Specific comments on this schedule are:

The advanced tariff design principles that have been incorporated.

The choice of households between tariffs A or B and of industry and commerce between tariffs C, D and to a certain extent tariff E, provided specific size restrictions are satisfied.

The incorporation of the FBE subsidy23 of a free block of 50 kWh per month for all households users.

The price signal that is conveyed by season for households and industry/commerce. The purpose is to motivate the use of other energy carriers for especially heating so as to reduce the demand for electricity in winter.

The price signal that is provided for industry/commerce for the time-of day as is caused by the national load curve that leads to peak and off-peak demand periods.

Extensive potential exists for users to reduce electricity costs by applying energy efficiency and demand side management principles.

It is not known to what extent these tariffs are cost reflective.

21 EMM, Schedule of tariffs for the Supply of Electricity, January 2004. 22 The first figure refers to the summer months of September to May and the second figure to the

remaining winter months 23 This is the Free Basic Electricity (FBE) subsidy that government introduced in July 2003. 24 Rebates of 1% to 5% apply for supply voltage and load factor. 25 A conversion surcharge of 80%, 60%, 40% and 20% of the financial saving is added during the first

four years. 26 These figures refer to peak, standard and off peak hours respectively where different schedules apply to

weekdays, Saturdays and Sundays. 27 No load factor rebate.


It is also not known how users are advised on which of these tariffs is the most suitable and methods on how costs can be best minimised by scheduling operations as a function of time-of-day and of season.

6.3.3 Income profile Table 43 reflects the total sales by Eskom and EMM for the period 1 January to 31 December 2003. The total electricity sales amounts to R2,8 million. The average price varies from 14 ¢/kWh for low usage households to 29¢/kWh for agricultural with an average of 22 ¢/kWh. The estimated average price for all consumer levels varies from 19 ¢/kWh by Eskom to 23 ¢/KWh by EMM. The low price for low usage households does not relate to the tariff, and may be caused by non-technical losses in the form of payment boycotts.

Table 43 Billing profile

ESKOM EMM TOTAL CUSTOMERS REVENUE

(R’000) ¢/kWh REVENUE (R’000) ¢/kWh REVENUE

(R’000) ¢/kWh

Household low usage

135 551 14 135 551 14

Household 66 179 33 660 146 27 726 325 27

Agriculture 34 734 29 13 430 29 48 164 29

Mining 159 060 16 23 012 13 182 072 15

Manufacturing 289 801 18 1 164 342 24 1 454 143 23

Commercial 36 602 23 152 215 27 188 817 26

General*** 51 850 21 51 850 21

Total 586 376 19 2 200 546 23 2 786 923 22

Source: Eskom, Individual Municipalities and own calculation

6.3.3.1 Consumption and billing profile by Customer Care Centres (CCCs)

There is significant variation in the amount of energy sold and the respective income per unit of electricity sold in the various municipal distributors, as reflected in Table 44. These range from 2% to 23% of the total energy sold and 3% to 24% of income for Nigel and Germiston respectively. Germiston and Kempton Park are the largest distributors. There are extensive differences between the income per unit of electricity sold. This is a function of the demand categories that are mainly supplied, the load and the ratio between fixed and variable charges. This varies from a low of 19 ¢/kWh for Boksburg to 33 ¢/kWh for Nigel, which has the lowest sales.


Table 44 Electricity sales per municipality28, 2003

MUNICIPALITY SALES (MWh)

% OF TOTAL ENERGY

SOLD

SALES (R’000)

% OF SALES

INCOME (¢/kWh sold)

Alberton 1 037 614 12% 217 783 10% 0.21

Benoni 807 341 9% 201 541 9% 0.25

Boksburg 1 167 371 13% 223 332 10% 0.19

Brakpan 339 215 4% 78 537 4% 0.23

Germiston 1 952 311 23% 510 492 24% 0.26

Nigel 174 447 2% 57 687 3% 0.33

Edenvale 661 374 8% 206 516 10% 0.31

Kempton Park (incl Tembisa)

1 501 039 17% 407 980 19% 0.27

Springs 1 030 661 12% 242 463 11% 0.24

Total 8 671 373 100% 2 146 330 100% 0.25

Source: Individual EMM Municipalities, 2003

6.3.4 Trends and Developments

6.3.4.1 Formation of the REDs In 1996 government decided to restructure the electricity distribution sector into six Regional Electricity Distributors (REDs) from Eskom Distribution and the current 189 municipal undertakings involved in electricity distribution. The purpose was to introduce competition (choice of supplier) and to achieve a higher level of business efficiency within these larger and more specialised bodies. This in essence means the merger of Eskom and local government distribution in specific areas and the establishment of national tariffs regulated by the NER rather than a host of tariffs charged by Eskom and the municipalities.

One of the key preparatory activities has been the ringfencing of electricity from other municipal infrastructure service functions, such as water and waste management.

Slow but steady progress had been made and in 2003 government set up the EDI (Electricity Distribution Industry) Holdings Company with the intention of incorporating all distributors within it and then rolling each RED out as an independent unit as soon as this is possible. The initiative has led to uncertainty and confusion within the electricity distribution sector, resulting in a “wait and see” situation wherein investment and new initiatives are being kept on hold until this action has been completed. However, EDI Holdings is now starting to secure commitments from municipalities with respect to the conversion to REDs.

6.3.4.2 Energy Efficiency and Demand Side Management (DSM) Local electricity departments will have to become directly involved in the efficient use of electricity in future. This will result from the draft energy efficiency strategy of government and the draft policy of the NER on regulating energy efficiency and DSM activities29. The policies will most probably lead to local policies and programmes linked to national programmes. It will require that energy efficiency and DSM plans be developed and approved by the NER in order to share in national funding for this purpose. It is also

29 NER, Draft regulatory policy on energy efficiency and demand side management, published for

comment early in 2004.


possible that these activities may become a dedicated component of the integrated resource plan that the NER anticipates requiring of all distributors.

Other than provided by the signals of the tariffs, especially Tariff D, and the potential for load shedding, no demand side management activities appear to be in place.

6.3.4.3 Electricity projects planned A number of electricity projects that are planned or in progress are reported in the Gafney Local Government Handbook30. A total of 42 projects are listed for the 2001 to 2007 period for a total amount of R229 million. These consist of reticulation, bulk supply and refurbishment/upgrading/replacement projects. It is not known at this stage to what extent the budget provides for these projects and what the respective priorities are. If it is assumed that these capital expenditures occur in a linear manner, this annual expenditure is only 1.5% of the income of R2 200 million per annum of this system.

6.3.4.4 Local/independent generation EMM has no generation facilities, neither is this the case with large users that produce waste thermal energy that can be converted into electricity in a cogeneration plant. No IPPs are as yet operational within EMM.

6.3.4.5 Meter verification Tsekema Consulting is carrying out a project for the audit and repair of credit and prepaid meters throughout EMM. This project was about 30% complete at the time of preparation of this report. Results to date show a surprisingly low rate of illegal connections, although this will be reported on more fully once the audit is complete.

6.3.4.6 Illegal connections Ekurhuleni is subject to illegal connections (theft of electricity), which generally occur when a customer has been cut off for non-payment. Illegal connections, a component of non-technical losses, are also a side effect of payment boycotts, in the sense that some of the population believe that electricity should be provided free, especially to lower income groups. The impacts of illegal connections are:

The cost of distributing electricity is not adequately covered by revenues, placing pressure on the revenue cycle

Too much current may be drawn at one location, causing protection systems to be activated and loss of supply or reduction in quality of supply to neighbouring customers

Possible injury or death by electrocution for the person carrying out the illegal connections – and these are often children, since their hands are small enough to reach into the enclosed spaces of the switchboxes.

6.3.4.7 Vandalism Vandalism in Ekurhuleni’s electricity subsector is essentially related to theft of copper conductor from the 400 V overhead lines, through the range of higher voltages and 11 kV and 33 kV to 88 kV. It was reported that theft of overhead 400 V cable happens on a daily basis in Benoni. Municipalities generally replace stolen copper cable with aluminium/aerial bundled conductor, which is less attractive to thieves.

Typical costs associated with the replacement of the stolen cable include:

Low voltage lines at R30/m (in August 2004, 3100 m of cable were replaced in Benoni)

33 kV line at R240/m (2 spans of 800 m were stolen in 2004)

30 Gafney’s Local Government in South Africa, 2002-2004.


However, the theft of cable does not only result in a need to replace the cable with the corresponding capital outlay, in some cases it also results in a loss of service to the area served through the cable. Because these crimes usually occur at night and repairs can only be effected during the day, customers in an affected area experience power cuts during peak morning hours before the day shift can remedy the situation.

Photo 1 Effects of vandalism at the Van Eck substation in Brakpan Customer Care Centre

(photo courtesy of EMM Electricity Department)

Photo 2 Closeup of vandalism at Van Eck substation (11kV cable was stolen)



The impact of conductor theft is therefore multiple:

Loss of reliable power supply, often during peak hours, with associated impact on customers’ perception of quality of service

Diversion of labour to repairs rather than preventive/scheduled maintenance

Funds which would otherwise be available for e.g. network improvements or job creation must be used to restore the network

Vandals expose themselves to an extremely high risk of electrocution.

Photo 3 Tragic consequences of illegal access to electricity lines


As an example, extrapolating the capex related to Benoni’s low voltage conductor replacements over the year 2004, considering August a typical month, capital outlay for 400 V lines alone will be of the order of R93 000 – the cost of employing a labourer. Taking into consideration labour costs associated with reporting the theft, following up with police, procuring replacement materials, dispatching staff to effect the repair, resetting controls, etc., the total cost is significantly more than the capex only.

EMM CCCs have worked with the South African Police Force to combat this problem under a project which involved

Teaching scrap metal dealers how to recognize copper wires used for electricity distribution, so they cannot plead ignorance if caught selling stolen property.

Educating consumers and providing contact numbers on customer bills for vandalism to be reported.

This project resulted in a temporary reduction in the magnitude of the thefts during the implementation of the project, however, when the project came to a close, vandalism increased again.

6.3.5 Gaps, constraints and issues The process of ringfencing and rationalisation of the electricity activities of EMM is essentially complete. There are some inconsistencies between supply and consumption data, which will be addressed to the extent possible with the relevant EMM and Eskom personnel as the study progresses. EMM personnel pointed out the difficulty of rationalizing sales information with information from EMM’s financial system. This, coupled with the fact that EMM personnel are currently constrained to develop their analyses on


spreadsheets on individual computers, points to a potential need for further integration of technical and commercial data.

The advanced tariff system needs to be supported by active assistance to consumers on how to use this system so as to reduce energy costs. There appears to be an extensive potential for DSM activities, but none have been reported other than the actions that will follow from the tariff design.

No information on supply quality could be obtained, but in common with many parts of South Africa, it can be assumed that this is either an issue or will become one in the near future. This is linked to the inadequate investment in the strengthening and upgrading of networks as a result of the impending formation of the local RED.

6.4 Coal There are four suppliers of coal in Ekurhuleni:

Chandler

McPhail

Muntu Coal

Express Coal.

Total coal supplied to EMM in 2003 was 149 344 tons for industry, commerce and households. The suppliers requested confidentiality as to the volume of their annual sales. These suppliers take orders from clients and source the coal directly from the pitheads (mines) and supply at the premises of the clients. However few suppliers keep marginal stockpiles at their premises to meet certain ad hoc requests. Some of the suppliers have depots in EMM.

The price of coal depends on distance from pithead to the premises of the client, the grade of coal and obviously the tonnages required. On the whole, prices range from R180-R500 per ton. The coal is supplied in 70 kg bags, in trucks with capacities of 10-30 tons, in scoops or grabs (720 kg). The clients are commerce, industry and smaller merchants who retail the coal.

Three other suppliers, Kumba Resources, Eyesizwe and Ingwe supply coal to Eskom Generation as fuel for coal-fired generating plants. These sales take place outside Ekurhuleni.

6.4.1 Policy and regulatory context The coal industry is deregulated and the price of coal is not regulated at the retail level. The DME has published terms of reference for appointing a consultant to review the coal industry. At the level of sales of coal to Eskom, pricing regimes are negotiated between Eskom and the supplier on contractual basis.

6.5 Renewable energy Progressive governments and municipalities the world over are embarking on robust renewable energy measures. Undertaking these measures is not a fashion trend but is influenced more by real and practical reasons. These reasons include the need to diversify energy supplies and protect the environment from generation, transportation, distribution and transportation of energy, as well as to address inequities in energy service provision.

With respect to South Africa, renewable energy is being taken very seriously by the government. At the national level, progressive policies and legislations are being formulated, and strategies are mapped out. Municipalities are entities that are tasked to translate the policies into local and action plans, or have to ensure that the national policies


are implemented. National renewable energy strategy will not be realised if municipalities are not sufficiently capacitated to lead the way.

6.5.1 Traditional biomass energy Traditional biomass fuels are, by definition non-commercial and renewable fuels, such as animal waste (animal dung) or crop residues. Of all household energy carriers, animal dung is the least commercial and monetised.31 The use of traditional biomass is insignificant in percentage terms vis-à-vis other fuel sources.

6.5.2 Woodfuel Little woodfuel is used in Ekurhuleni relative to electricity, gas, IP and coal. This appears normal, as Ekurhuleni is fully urbanised, with limited access to “free” woodfuel as in rural areas. The little woodfuel used in the East Rand is only confined to heating and cooking by destitute households. There is some that is used more for recreational purposes (such as braais) and in traditional ceremonies.

6.5.3 Modern renewable energy Generally renewables do not feature much in South Africa’s energy mix. Currently, energy derived from RE is approximately 6% and 10% if biomass energy is included. Most of the renewable energy use is outside the Ekurhuleni Metro, in rural areas and in the west coast of the country.

There are few significant or large-scale RE or EE projects in Ekurhuleni, although the metro is the economic heartland of Gauteng and South Africa. Some of the disincentives of EE and RE measures include the widely available and cheaper coal-based electricity, as well as the well-defined transport network to distribute petroleum products. EMM is strictly a largely industrialized and urban municipality. All formal households, including some informal settlements are connected to the national grid. Low-income households generally rely on a combination of energy types depending on specific end-uses. Coal, paraffin (IP) and LPG are generally fuels that are used with electricity for thermal applications, while electricity is used with IP and candles for lighting. There has been little effort to encourage alternative RE sources for these end-uses, except for a few and scattered demonstration projects.

6.5.3.1 Solar power Most areas in South Africa average more than 2,500 hours of sunshine per year. Average daily solar radiation levels range between 4.5 and 6.5 kWh per square meter. The annual 24 hour global solar radiation average is about 220 Watts per square meter for South Africa, compared to about 150 Watts per square meter for parts of the United States and about 100 watts per square meter for Europe. A solar equipment industry has begun to take root in South Africa – the annual photovoltaic panel assembly capacity totals 6 MWe and there are also a number of companies that manufacture solar water heaters (SWH).

Partly because of readily available electricity, there has never been a concerted effort in the Ekurhuleni municipality to encourage the use of this energy source. The census shows some minor penetration of solar energy, but this remain isolated and most of the available systems are installed by private companies.

Despite the almost non-existent solar energy, the latter have a potential in the EMM mainly as part of the demand-side management. Passive solar designs for building, particularly in the lower end of the housing market, can reduce the energy expenditure for heating. Also, solar home systems, such as solar PVs (photovoltaics) and SWHs (solar water heaters), can 31 According to the Census, some few households in Ekurhuleni use animal dung mainly for heating and

cooking. In rural areas, animal dung also has a non-energy use for the plastering of huts in rural areas.


be realistically implemented in the short term, as indicated by the renewable energy white paper and the draft implementation strategy.

The major stumbling block of solar energy relates to the costs of the systems, which remain uncompetitive when vis-à-vis competing energy types (paraffin, coal, gas and electricity). An EMM solar company, Sunstove, states good quality stoves cost between US$20 and $40 in the market, the cheapest costing $5 (Sunstove 2004).

6.5.3.2 Biogas energy It is certain that EMM generates waste streams and this implies the potential biogas fabrication from these sources needs to be considered for possible renewable energy beneficiation. There are no effective existing biogas initiatives (except the Weltevreden pilot methane purification plant) that were reported at the EMM during the course of this study. However, there is an ongoing survey investigating the viability for biogas production from agricultural sector within the area. Few biogas initiatives exist in South Africa, especially in the rural areas.

The Waste-to-Energy Programme

Disposal of waste by landfill is the most cost-effective method of waste disposal in South Africa. It is estimated that over 95% of waste generated in South Africa is deposited in landfills. The decomposition of waste in a landfill leads to the release of landfill gas (LFG). This biogas contains predominantly carbon dioxide (CO2) and methane (CH4). The uncontrolled release of LFG emissions give rise to environmental and health problems such as odour nuisance, global warming, etc. This gas can be recovered for energy beneficiation since it contains more than 50% methane, instead of releasing it into the atmosphere.

The EMM currently operates five regional landfill sites. Most of these sites are large landfills that accept general waste, hence classified as GLB+ and GLB-. The EMM is presently installing landfill gas extraction systems (which consist of active wells with flares) on four of its five regional landfills namely: Weltevreden, Rietfontein, Rooikraal and the Simmer & Jack landfill sites (Van Zyl 2004). However, the Holfontein landfill operated by Enviroserve Holdings is the only hazardous waste landfill site in Gauteng and accepts all ratings of hazardous waste nationally. This landfill is classified as H:H landfill. The EMM has proposed a future regional Zesfontein landfill which will serve predominantly the northern areas of the metro.

Energy potential from EMM landfills

The EMM waste management annual report (2003) indicates that total general waste of about 1.2 million tonnes generated annually from industrial and domestic sectors is disposed into landfills (EMM 2003). The Rooikraal and Simmer & Jack landfills handled the highest volumes in the last two years (Table 45). The type of waste received at EMM landfill sites include: garden refuse, condemned foods, paper pulp, tyres, ash, domestic and industrial wastes. Solid wastes such as garden refuse, foods, paper pulp and domestic refuse are classified as rapidly biodegradable materials. These materials can decompose rapidly in a landfill and generate LFG.


Table 45 Solid waste quantities handled at EMM landfills from June 2002 to June 2003 (EMM 2003)

WASTE QUANTITIES (TONNES) LANDFILL

2002 2003 TOTAL

Platkop 81 199 100 284 181 483

Rietfontein 192 575 130 360 322 935

Weltevreden 216 998 254 699 471 697

Simmer & Jack 490 953 313 265 804 218

Rooikraal 390 884 296 733 687 617

Chloorkop 130 363 140 298 270 661

TOTAL 1 502 972 1 235 639 2 738 611

The EMM has commissioned consultants to evaluate the quantity and quality of LFG (especially methane, CH4) released from four of its five currently operated landfills. The study underway involves looking at the LFG yield assessment, gas yield modelling, pumping trials and flaring. Three active wells with flares are currently being installed at four of EMM’s five regional landfill sites: Rietfontein, Rooikraal, Weltevreden and Simmer & Jack landfills. The potential for LFG utilisation will depend on predicted gas yields and site-specific factors e.g. type and amounts of waste inputs. This information will be used to determine an appropriate technology for a specific site such as:

Upgrading for natural gas quality;

Upgrading for bi-fuel use;

Indirect use e.g. electricity generation;

Direct thermal application.

This current study will provide recommendations on appropriate technology for renewable energy recovery at each site. The existing LFG-to-energy project in EMM is the one commissioned at the Weltevreden landfill site. The anticipated LFG utilisation options for operational open sites at the EMM are presented in Table 46.


Table 46 Possible LFG projects at the EMM (Pieterse 2003)

NO NAME CLASSIFICATION TONNAGE

PER YEAR CURRENT

LIFE SPAN AFTER

LIFE POSSIBLE

PROJECTS

1 Weltevreden GLB- 300 000 29 Years (2032)

+25 Years (2057)

Vehicle/ electricity

2 Rietfontein GLB+ 180 000 33 Years (2036)

+25 Years (2061)

Kilns

3 Rooikraal GLB- 360 000 29 Years (2032)

+25 Years (2057)

Electricity

4 Simmer & Jack GLB- 360 000 4/6 Years (2007)

+25 Years (2032)

Electricity

5 Platkop GLB- 126 000 39 Years (2042)

+25 Years (2067)

Flaring

6 Alberton GLB- --- 0 +25 Years (2028)

Electricity

7 Chloorkop GMB- --- 0 +25 Years (2028)

Volume seems too small – only flaring

8 Sebenza GMB- --- 0 +25 Years (2028)


9 Nigel GMB- --- 0 +25 Years (2028)


The LFG utilisation options identified by the EMM include (Pieterse 2003):

i. Flaring only: flaring means the burning of the LFG.

ii. Using as boiler gas: this option is limited due to distance between boiler users and the landfill sites. However, such an option exists next to the Rietfontein site where there is a tile/brick factory.

iii. Electricity generation

iv. Vehicle fuel: methane gas can be used as vehicle fuel in two methods as: a) clean methane and; b) Mixed with diesel (25% diesel and 75% methane).

Case Study: Weltevreden LFG Pilot Project

The EMM was the first municipality in South Africa to commission a small-scale pilot methane purification plant in 1999 at the Weltevreden landfill site in Brakpan, eastern Gauteng. The objective of building this pilot plant was to capture LFG generated from the landfill and to purify it using membrane technology. This would consequently provide advantages such as generating renewable energy from LFG, cut energy costs and reduce GHG emissions, particularly CH4, into the air. The extraction and utilisation of LFG promotes quicker settlement of the landfill hence increases the airspace. Therefore, this extends the life span of landfill site and reduces odour nuisance.


The LFG was extracted from a small section of the landfill, purified to 90% pure methane, and transferred passively to storage cylinders. This gas is then drawn from these cylinders to refill as fuel in the refuse collection vehicles. Since the beginning of this project EMM has operated four refuse collection trucks using bi-fuel of methane-rich LFG and diesel (75% methane: 25% diesel).

The economic and environmental benefits were evident. The price of methane is lower than that of diesel. The savings of R25 000 to R35 000 were achieved annually per vehicle. The atmospheric emissions of sulphur oxides (SOX), nitric oxides (NOX), CO2 and particulates were reported to be considerably less than for diesel.

Despite all the benefits and advantages mentioned above, there were some drawbacks experienced in the initial projects.

The compactor trucks that used bi-fuel experienced a power loss of about 20% as compared to when using a conventional fuel such as diesel alone. LFG has to be purified to a very high standard for use in the vehicle and this has been a costly process.

Since only a small section of a landfill was used for the project, it was found out that there was inadequate gas generated during the winter season.

Problems were also encountered during breakdowns since the spares had to be imported, because the local market for these specialised components is very limited in South Africa.

The operation and maintenance of the purification plant especially the membrane technology was another costly factor that needed EMM’s attention.

These are lessons learned that the EMM has to consider in optimising renewable or alternative energy source from landfill sites. LFG utilisation options of vehicle fuel and electricity still stand as possible future LFG projects for the Weltevreden landfill site (Table 46).

6.5.3.3 Employment Potential for Renewable Energy Data on renewable energy are scarce in South Africa. The only recent and notable works in this are reports by Stassen (2001) on solar PV, solar thermal, wind, biomass, and anaerobic digestion (landfill gas), as well as a study on renewable energy employment potential (Agama & SECCP 2003). The latter study demonstrates that large scale deployment of renewable energy technologies could sustain and increase the number of jobs particularly in local manufacturing of technologies, as illustrated in Figure 25 overleaf.


Figure 25 Potential in different renewable energy technologies (RETs)

The figures above refer to the national situation and it is not known the extent to which renewables provides job opportunities in the EMM. However, it is assumed that the low deployment of RE technologies militates against RE contributing to the municipality’s GDP.

Implementing renewable energy measures in a municipality such as EMM presents major challenges despite the favourable policy and regulatory environment in South Africa. As municipalities are going to play a more direct and extended role in energy provision, including renewables options and efficiency measures, it is important that such barriers are isolated and addressed.

6.5.4 Policy imperatives for renewables

6.5.4.1 Focus of the Renewable Energy White Paper In recognition of the requirement to provide adequate energy to all South Africans, as first described in the Energy White Paper (DME 1998), the Department of Minerals and Energy released a Renewable Energy White Paper in 2003 that focuses on alternative energy sources. This policy document builds on the first White Paper and provides more clarity on how a renewable energy agenda can be pursued in South Africa. An important feature of this new policy document is setting a target for renewable energy. It states that:

…10 000 GWh (0.8 Mtoe) renewable energy contribution to final energy consumption by 2013, to be produced mainly from biomass, wind, solar and small-scale hydro. The renewable energy is to be utilised for power generation and non-electric technologies such as solar water heating and bio-fuels. This is approximately 4% (1667 MW) of the estimated electricity demand (41 539 MW) by 2013 (DME 2004).

Importantly, the new RE white paper provides an enabling environment for the development and growth of renewable energy businesses and opportunities. This is in light of the current imbalance between renewable and non-renewable energy resources in South Africa. Some of the policy instruments that could accelerate the production of energy from RE resources include the following:

Financial – facilitate for investment in new renewable energy technologies (RETs) as well as extending the existing state financial systems and instruments to support RE projects

Legal – develop a legislative and regulator framework to integrate independent power producers (IPPs) into the existing electricity system


Technology – active support of R&D in renewable energy

Awareness – raise community awareness to renewable energy sources and benefits in order to facilitate for community acceptance.

6.5.4.2 Draft renewable energy strategy The draft RE strategy is out for public comment. The final strategy will be completed by late 2004 (Nassiep 2004). The strategy will contain timelines, concrete targets and technologies that are going to be supported by the government together with its partners. The main aims of the strategy is to provide concrete action plans on how to integrate economically viable RETs into the mainstream energy economy and lead South Africa into a path of sustainable development that supports the GEAR strategy.

The strategy has identified six core intervention areas and has drawn action plans on realizing the each objective. These areas are:

Integration of grid and non grid technologies through addressing the market constraints, empowering local authorities with the capacity to implement viable programmes, set targets for SHS and addressing the financial barriers

Provide RE in order to realise sustainable rural development, energisation and activation of rural economies.

Introduce solar passive building design at a national level and particularly to the low income housing sector. An appropriate legislation may be enacted to ensure its implementation.

Implementation of a long-term national solar water heaters (SWHs) programme. Also, because of the energy savings and environmental benefits, an appropriate legislation may be enacted.

A national public education, training and marketing campaign on RE will be implemented by the DME

RETs and resource assessment and feasibility studies have been undertaken on wind energy, solar cookers, landfill gas, small hydro power systems, RE and small scale farming, women and energy, and solar thermal power generation.

6.5.5 Information and data gaps The following information and data need be acquired from EMM and solar industry:

The census reveals high use of solar energy and other renewables, yet there is little data to substantiate this high use. This information gap needs to be addressed.

The current and future operation of the Weltevreden landfill gas (LFG) pilot purification plant. Are there any obstacles or problems that will prevent EMM from continuing this project? Are there any future prospects or opportunities that will make this project more viable?

It been formally reported through journal publications that the use of bi-fuel (methane and diesel mix) by EMM refuse collection trucks has led to considerable decrease in the emissions of sulphur oxides (SOx), nitric oxides (NOx), carbon monoxide (CO) and particulates (PM) compared as when diesel was used alone. Is there any statistical data supporting this statement?

The outcome of feasibility study on LFG Yield Assessment and Utilisation currently underway at EMM. Do the findings of the study indicate potential significant LFG generation from EMM landfills, hence possibility of LFG commercial utilisation? The summary of this study (or even progress report) will be adequate to highlight potential RE (from LFG).


6.5.6 Pricing Data on pricing of RE technologies and components within EMM was difficult to obtain. This may due to the fact that there is no widespread deployment of these RE technologies in EMM.

In general, it is known that solar power for electricity is expensive in terms of capex per kW installed related to other renewable sources of electricity, such as wind power or mini-hydro. This is due to the cost of the panels and the cost of the batteries needed to store energy for periods of darkness or low sunshine. Furthermore, solar panels are vulnerable to theft and vandalism.

In terms of operation costs (measured in R/kWh), solar power is competitive with other renewable electricity solutions, although battery replacement can represent a barrier to sustainability.

However, solar water heaters are more economically viable.

6.5.7 Trends and developments The renewable energy strategy (as well as energy efficiency strategy) is likely to be adopted late in 2004 (Nassiep 2004). These would then be part of the municipalities’ action plans from 2005 onwards. It is expected that until renewables and energy efficiency become part of the EMM IDP, there could be no changes from the current status quo of low renewable use. Both strategies emphasise the implementation of economically viable and technologically proven renewables. In this case, the best option is the development of solar water industry. This can happen quite quickly, as there are a number of installers (plumbers) and small manufacturing plants in EMM.

The list of businesses currently active in RE & EE in EMM is provided in the Compendium of Supporting Information.

6.6 Energy Efficiency in EMM The security of electricity supply in South Africa is under threat. The country’s installed capacity is just above 37,000 MWe and the peak electricity demand is currently at 31,500 MWe. Based on the current energy consumption trends, South Africa’s current installed peak generation capacity (maintaining a safe reserve margin) is insufficient to meet future forecast peak load. It is currently accepted that South Africa’s reserve capacity will be used up by 2007. Commissioning a power station is usually a lengthy process that takes several years. South Africa, therefore, has a strong need to diversify its energy supply in order to ensure long-term energy sustainability and security.

Stringent implementation of demand side management and/or commissioning of a new power plan could offset this shortage of capacity through generation of “negawatts”.

Undertaking energy efficiency measures is a win-win situation as far as energy savings are concerned. The consumer is able to obtain maximum (energy) output from a minimum input, thereby savings scarce monetary resources. The utility is able to effectively undertake its load management, thereby delaying decisions for building additional power station. At the low-income end of the market, the real energy savings can be made in the field of space heating. Installing an insular-integrated ceiling in brick houses in Gauteng would, for instance, save up to 90% of energy consumed for heating during winter (Mathews 1995).

6.6.1 Overview of the energy efficiency objectives Generally, the aim of energy efficiency programmes in South Africa is to mitigate against greenhouse gas (GHG) emission in the electricity sector. For energy efficiency strategies to achieve their intended goal, they should be robustly implemented across all important


economic sectors: residential, commercial, industrial and public buildings (health care, street lighting). However, for EE programmes to reach targets of minimum energy emission, they should serve socio-economic goals as well. Other benefits, such as the reduction on electricity costs in large commercial and industrial plants, lowering of energy costs at the household level and creation of employment and economic benefit arising from energy efficiency market, should be highlighted.

6.6.1.1 Targets The DME has set the following energy demand reduction targets by the year 2014 in South Africa’s demand sectors:

Table 47 South Africa’s energy efficiency targets

DEMAND SECTOR REDUCTION IN DEMAND BY 2014

Industry 15%

Commercial and Public Buildings

15%

Residential 10%

Transport 9%

Total 12%

Source: DME Draft Energy Efficiency Strategy of the Republic of South Africa, April 2004

6.6.2 Energy efficiency programmes in EMM

6.6.2.1 Efficient Compact Fluorescent Lamp (CFL) The South African component of ELI aims to penetrate the South African market with 32 million Compact Fluorescent Lamps (CFLs) over the next decade and a half. If the above target is met, the efficient lighting programme could save the environment in the order of:

CO2 emissions – 3.6 Mt/year

SOx emissions – 29.4 kt/year

NOx emissions – 14.65 kt/year

Water use – 4.8 Gl/year

Coal use – 1.92 Mt/year

Ash produced – 505 kt/year

Energy efficient CFLs last up to ten times longer than incandescent lamps and use up to 75% less energy, which translates into reduced electricity bills for consumers. Whereas an ordinary incandescent light bulb would produce 1 000 hours of light lasting on average four to five months, a quality compact fluorescent lamp will provide 10 000 hours of the equivalent amount of light and last approximately eight years (Table 48).


Table 48 Technical comparison between the 60-Watt incandescent lamp and the 15-Watt CFL

Source: Bonesa 2003

Eskom DSM and Bonesa together with the electricity department of EMM have implemented an Efficient Lighting Initiative (ELI) using mostly CFLs for low income households, EMM buildings and public lighting.

6.6.2.2 Residential load management Ekurhuleni has been identified as a site for large-scale implementation of residential load control (essentially the installation of ripple control systems for geysers). Because of the size and scope of the work, it has been divided into phases. The first phase will involve the installation of 8000 relays as an extension to the existing system in Benoni. Further phases will look at other new systems and further expansion of existing systems in Ekurhuleni.

6.6.3 EE business in EMM There are a number of companies that are involved in energy efficient technologies (including manufacturing and retail of modern renewable technologies such as SWHs) in EMM. In the business-as-usual scenario, few of these companies are competitive. While there are number of companies at Ekurhuleni alone, it is important to note that few of these companies are serving the local population. It is hoped, however, that as the country implement its strategies to increase the use of efficient technologies, a huge a huge demand for energy efficient technologies will be generated and the existing companies will be economically viable.

The list of businesses currently active in RE & EE in EMM is provided in the Compendium of Supporting Information.

6.6.4 Information and data gaps The following information and data need be acquired from EMM and solar industry:

Industries and commercial sectors’ own DSM activities

The results of the recently implemented DSM programme which focuses mainly on replacing conventional lighting with CFLs.

6.6.5 Future trends in REEES The adoption of the Energy Efficiency strategy (which is still in the draft form at this stage) will set up coordinated initiatives to implement EE measures. Like the RE strategy, this strategy first articulates the energy efficiency targets, as well as implying the role of

PARAMETER 60 WATT

INCANDESCENT LAMP

15 WATT CFL

Wattage (W) 60 15

Monthly consumption (kWh) 7,2 1,8

Equivalent incandescent lamp light output (W) 60 75

Hours 1,000 6,000 – 15,000 Expected life (4 hours daily use) Years 0,68 4,11 – 10,27

Price R 3.00 R 20.00 – R 80.00

Failure rate

Manufacturer guarantee (years) NONE 1-3

Burning surface lamp temperature Very high Low


municipalities in achieving these. As one of the highest consumers of energy, the EMM is expected to lead the way in articulating its own demand-side management measures.


7. ENVIRONMENTAL/HEALTH ISSUES RELATING TO ENERGY IN EMM

7.1 Introduction The generation, transportation, distribution and use of energy are the major driving forces of environmental change in the Ekurhuleni Metropolitan Municipality (EMM). EMM largely relies on electricity for its energy requirements. Industry and business account for approximately 62% of the electricity consumption and domestic consumption the remaining 38% (ref Table 8). A large proportion of the electricity in the area is supplied by Eskom and is dependent on the burning of fossil fuels. Table 24 showed the sources from which households derive energy required for lighting, heating and cooking, confirming that EMM household energy use is very much electricity and therefore fossil fuel based.

7.1.1 Emissions Fossil fuel combustion produces carbon dioxide, which absorbs radiant energy, contributing to the greenhouse effect. There is concern that increasing concentrations of greenhouse gases (including carbon dioxide, methane and manmade chlorofluorocarbons) may enhance the greenhouse effect and cause global warming. Fossil fuels currently provide nearly 38% of net domestic electricity generation by electric utilities which contribute to emissions of various gases at significantly high levels into the atmosphere. Estimated emissions from fossil-fuelled steam-electric generating units are:

Sulphur dioxide (SO2);

Nitrogen oxides (NOx); and

Carbon dioxide (CO2).

Other major air emissions include:

volatile organic compounds (VOCs);

carbon monoxide,

lead, and

Particulate matter less than 10 microns in diameter (PM10).

There is growing recognition that these emissions adversely impact the environment locally, nationally, and globally. These impacts are labelled environmental “externalities”. Included in the generic term externality are benefits or costs resulting as an unintended by-product of an economic activity that accrue to someone other than the parties involved in the activity. As a result, externalities do not enter into the market-pricing calculations of the parties undertaking the activity. In the case of power generation, only costs associated with providing electricity are taken into account to the exclusion of costs related to the unintended by-products of producing electricity. Included in this category are the costs of impacts on the ecosystem and the environment, such as human health, which is not fully included in the market price. Due to the fact that these impacts remain unaccounted for, the cost of power generation remains lower than it otherwise would be, if the cost of burdens imposed on society were also included32.

Since the early 1970s, the realization that the environment consists of resources that are scarce and exhaustible has brought about a nexus between the environment and the economy. There has been an interest in correcting the prices by including part or all of the excluded costs. Considerations of environmental externalities have thus become increasingly important in the resource planning operations of domestic electric utilities,

32 Energy Information Administration 1995


especially in regard to the use of fossil fuels which impose real and substantial damage to human health and the environment.

7.1.2 Potential impacts of energy on environmental change The potential impacts of energy on environmental change include, but are not limited to:

Depletion of non-renewable resources, i.e. fossil fuels

Increase in atmospheric concentrations such as carbon dioxide, sulphur dioxide, carbon monoxide and lead (amongst others) and these have an adverse impact on health and the natural environment, especially air

These greenhouse gasses also have an impact on climate change

Energy is also a major driver of modern economies

Fossil fuel combustion increases the entropy of the planet, due to the generation of heat as a waste product and this may alter microclimates, e.g. the atmosphere over industrial cities is hotter than rural surroundings.

7.2 Electricity related environmental and health issues

7.2.1 PCBs Until the toxic nature of polychlorinated biphenyls, or PCBs, was discovered, they were used as coolants and lubricants in electrical equipment, particularly transformers. PCBs are a group of synthetic oil-like chemicals which are particularly stable and were thus appreciated for their insulating capacity. They are part of the family of pollutants known as Persistent Organic Pollutants (http://www.chem.unep.ch/pops/), related to dioxins and furans, which do not break down in the environment. They were taken off the US market in 1977. In addition to transformers, products which may contain old PCBs include capacitors, ballast in fluorescent lights and old microscope and hydraulic oils.

The health impacts of PCB exposure include skin conditions, liver damage and possible effects on the immune system. The EPA and the International Agency for Research on Cancer (IARC) have concluded that PCBs are probably carcinogenic to humans. When PCBs are burned, they convert to dioxins which are highly toxic.

PCBs can still enter the environment through leaks from old transformers containing PCBs. Cleanup of contaminated transformer oil spills is extremely expensive as PCBs are treated as hazardous waste.

Rotek Industries in Germiston have facilities for decontaminating old transformers and capacitors containing PCBs.

7.2.1.1 Recommendations The extent and location of residual PCB contaminated oil (if any) in EMM electrical facilities should be assessed, and an action plan drawn up to dispose of the remaining chemicals. The action plan should take into account the proximity of facilities available for decontamination.

7.2.2 Electromagnetic fields Since 1979, epidemiological studies have raised concerns over the links between exposure to power line frequency magnetic fields and childhood cancer, particularly leukaemia in children. Concern has grown over the potential health effects of long term exposure and/or peak exposure to weak electromagnetic fields (EMF), such as those generated by high voltage transmission lines or electricity distribution lines. These low frequency (50 Hz or 60 Hz) fields are increasingly thought to be carcinogenic and to be a cause of miscarriages.


In North America and Europe, EMF has become an influencing factor in planning and siting new transmission lines.

Both peak exposure and long term exposure have been examined in many studies, although results are not yet considered conclusive. The most recent and definitive are briefly outlined below.

7.2.2.1 International Agency for Research on Cancer (IARC) An IARC study group reviewed studies related to carcinogenicity of static and extremely low frequency (ELF) electric and magnetic fields in 2001. Using the standard IARC classification that weighs human, animal and laboratory evidence, IARC concluded that ELF magnetic fields were possibly carcinogenic to humans. This classification is the weakest of three categories of carcinogenicity:

Is carcinogenic to humans (usually based on strong evidence of carcinogenicity in humans)

Probably carcinogenic to humans (usually based on strong evidence of carcinogenicity in animals)

Possibly carcinogenic to humans (usually based on evidence in humans which is considered credible, but for which other explanations cannot be ruled out)

For reference, other substances considered possibly carcinogenic include:

Coffee

Styrene

Petroleum engine exhaust

Welding fumes

7.2.2.2 EPRI/California Department of Health Services/US Dept of Energy Two large epidemiological studies published in 2002, one carried out by the California Department of Health Services (CDHS) and the other by the Kaiser Foundation Research Institute, found an increased risk of miscarriages among California women who were exposed to high peak magnetic fields in early pregnancy. On the basis of these results, the CDHS concluded that a substantial proportion of miscarriages may be caused by EMF. This conclusion contradicted previous studies which had shown less definitive results, so a workshop was commissioned to review the data and recommend future research. The joint project found that 24-hour peak exposure measures from different studies were not comparable. A particular conclusion was that a maximum measured on one day in an individual’s home may not be representative of the maximum for another day.

7.2.2.3 World Health Organization A great deal of research has been carried out to assess the related health effects and is documented by the WHO, which recently established the International Electromagnetic Fields (EMF) Project (http://www.who.int/mediacentre/factsheets/fs263/en/) to review research and conduct risk assessments of exposure to static and extremely low frequency (ELF) electric and magnetic fields.

7.2.2.4 CIGRÉ At the recent CIGRÉ (Conseil International des Grands Réseaux Électriques – International Council on Large Electric Systems) conference held in Paris in September 2004, a session was dedicated to current research and developments on the topic, at which it was noted (Conti and Fanelli) that in Italy, legislation provides for regulation of exposure to EMF.

There appear to be few reports providing recommendations on how electricity utilities and local governments can practically manage remedial and mitigating measures, apparently because evidence is not yet conclusive enough.


7.2.2.5 Recommendations A basic measure would be to ensure that residents who build houses in the rights of way of power lines are informed that not only is the siting of their house illegal, but it also represents a potential, but not proven, health risk. Despite the abstract and complex nature of the subject and the resulting potential for oversimplification by all parties, a well-bounded awareness program for Ekurhuleni residents based on definitive research should be considered.

EMM electricity and health staff should ensure they are jointly well-informed on ongoing research on the subject, as part of a long term agenda to assess the health and environmental effects of energy in Ekurhuleni.

7.3 Pressures on air quality In this study, reference to air pollution is made specifically in terms of air pollution generated through processes to produce either electricity or energy in support of industrial or manufacturing activity in or near Ekurhuleni. Air pollution can be defined as the emission of chemical compounds into the air resulting from anthropogenic and natural activities, which have the potential to impact negatively on the environment.

Air movement is an effective means of transporting such pollutants. Thus the effects of pollution in one area may also be felt in an area thousands of kilometres away. Air movement and mixing is dependent upon differences in high and low pressures and the occurrence of temperature inversions. Atmospheric constituents are removed from the air through the process of wet or dry deposition or through chemical reactions. Wet deposition is effective in removing both particulate and gaseous pollutants.

Due to the nature of activities that are undertaken within the EMM, sources of pollution within this area vary considerably and include heavy manufacturing industries, a coal fired power station, mines and associated infrastructure, light industrial processes, waste sites, motor vehicles, farming and domestic fuel combustion. The EMM is surrounded by urban areas particularly to the north (Tshwane) and west (Johannesburg). Beyond its immediate borders EMM is surrounded by major industrialized areas, which include the Secunda Industrial complex to the south east, the Vaal Triangle (Sasolburg, Vereeniging and Vanderbijl Park) to the south west and a cluster of metallurgical industries (Witbank and Middelburg), power generation utilities plant and coal mines on the Mpumalanga Highveld to the east. From this short description it can be seen that whilst the EMM does have significant pollution sources within its geographical area, its air quality can be impacted by pollution sources way beyond its boundaries.

7.3.1 Air quality impacts Air pollution may result in disturbances to ecosystems, climatic conditions, biogeochemical cycles and human health. Motor vehicles are generators of carbon monoxide and carbon dioxide, which contribute to the global greenhouse gas budget which in turn results in global warming. Nitrogen oxides (NOx) emitted by motor vehicles, are precursors to ground level ozone which can trigger serious respiratory problems. Other pollutants from motor vehicles include SO2, a primary contributor to acid rain and volatile organic compounds (VOCs) some of which are known carcinogens. VOCs are also precursors to ground level ozone.

Domestic coal and wood combustion generates both gaseous and particulate pollutants. The more important gaseous pollutants include SO2 and VOCs which pose ecological and health risks to the floral and faunal environment. Particulate matter especially those in the respirable size range (<10µm) poses both a health risk to human receptors and degrades the visibility of an area.

The components of the landfill gas most likely to cause a health risk theoretically constitute 2% of the total volume of landfill gas emission consisting of VOCs that include acetone,


benzene, methylbenzene, dichloropropane, tetrachloroethylene, xylene, toluene, ethylbenzene and inorganic gases such as hydrogen sulphide (source of odours), hydrogen cyanide, ammonia and chlorine being the most prominent emissions. In most cases the most severe impacts from landfill gas emissions are limited to areas within 3 km of the waste site and include nuisance (odours and dust), health (exposure to VOCs and other gases) and ecological (degradation of vegetation in close proximity to the waste sites) impacts on receptors.

Given that the majority of air emissions from waste sites are largely composed of methane and carbon dioxide which are greenhouse gases, waste sites certainly do have an impact on the global greenhouse gas budget. Hence whilst these types of emissions are not necessarily observed by the public (visually and olfactory) they do impact on the global atmosphere.

7.4 Sources of emissions within EMM From an air pollution perspective, areas of high air pollution in South Africa tend to correspond with areas that have a high concentration of heavy industry. With the exception of the Germiston industrial area, heavy industrial activity is spatially spread across the EMM area in the various sub-regions in smaller clusters. In addition to this, large areas of EMM are highly urbanised with mixed land use i.e. industrial, commercial, mining, quarrying and residential. The transportation sector has been identified as a major source of air pollution as well.

Domestic coal burning and coal fired boilers are recorded as the most significant fuel burning related sources of airborne particulates in the EMM region. Coal boiler operations include Impala Refinery (Springs) and NCP (Chloorkop).

The highest sulphur dioxide concentrations were predicted to be due to emissions from domestic coal burning, petrol-driven vehicles and various coal boiler operations. Ambient benzene and lead emissions are primarily the result of petrol vehicle emissions.


Table 49 Summary of estimated contributions to air emissions by source type in the Southern SDR

SOURCE/ACTIVITY TYPE TYPES OF EMISSIONS CONTRIBUTION

Industrial Activities Particulate matter (includes iron oxides, copper oxides, lead oxides and chrome oxides)

Gases (NOX, CO2, CO, SO2, dioxins, formaldehydes, phenols)

20%

Domestic fuel use including squatter camps around Germiston Centre

Particulate matter (soot)

Gases (CO2, CO, SO2)

60%

Motor Vehicle emissions Particulate matter (soot)

CO, SO2, NOx

7%

Mine Dumps Particulate matter 9%

Veld Fires Particulate matter (soot)

Gases (CO2, CO, SO2)

3%

Other (Accidental factory fires/houses)

Particulate matter

SO2, CO, CO2

1%

Of these, the most significant source of pollution related to either energy generation or consumption is the contribution from domestic fuel use. Although industrial activities do indeed contribute significantly to air pollution in Ekurhuleni, it is not possible at this stage to disaggregate the data to show to what extent the pollution relates to energy generation or consumption.

By the same token, at this stage it is not possible to disaggregate data to show the extent to which energy production and use contribute to water pollution.

7.4.1 Industry – scheduled processes (including power generation) The EMM contains some 8000 industries that occur in twenty separate industrial areas, which are concentrated in seven industrial nodes. Using the 1995 Department of Environmental Affairs and Tourism (DEAT) scheduled processes database, it is estimated that there were 327 registered scheduled processes in operation within the EMM at the time. While this total might be slightly dated, it is the most accurate estimate available. It is possible that while new processes may have been added to the list some of the processes operating at the time may have closed down. An estimate of the 1995 emissions of certain priority pollutants from scheduled processes is given in Table 50.


Table 50 Estimated emissions of priority pollutants emitted by scheduled processes

POLLUTANT EMISSIONS (TPY)

Total particulate matter 20 417

Sulphur dioxide (SO2) 48 326

Nitrogen oxides (NOx) 56 132

CO2 13 162 414

CO 567 700

Non-methane hydrocarbons 85 040

Source: DEAT (1995)

It is important to note that the figures presented in Table 50 exclude emissions from other sources, such as light industry (non-scheduled processes), motor vehicles, domestic fuel combustion, and mining and waste disposal sites.

The two major types of energy related pollution within this sector are air and marine pollution. The industrial sector is the prime contributor to air pollution. Coal combustion can lead to particulate matter in the air, as well as contribute to acid rain.

In addition to industrial pollution, low-level atmospheric pollution often results from coal combustion in stoves, as well as coal-heated boilers that are found in hospitals and factories (EIA 2002).

7.4.2 Industry – non scheduled processes, light industry While individual light industries may not be considered to be major sources of air pollution individually, their cumulative contribution to the total air pollution load could be significant. Currently there is no estimate of the contribution of the light industrial sector is to the total air pollution load. Based on the number of industries that operate in this area they could have a significant contribution to the total load. Whilst the air emissions from this sector are not expected to be noxious to their immediate environment when compared to scheduled processes, their cumulative contribution to the greenhouse gas emissions may be significant since many of these operations use fossil fuels viz. coal, oils and diesel, which generate greenhouses gases on combustion.

7.4.3 Transport Transport and communication contributed 6% to the economy of EMM in 2001. Given the strategic location of EMM, its road, rail and air networks also support a significant amount of passing traffic. Hence air emissions from the various transportation modes that are encountered in this area are likely to be a significant air pollution source. Of the various transport modes, road (vehicle) transport is considered to be the most significant regional source of air pollution. Vehicles emit carbon monoxide, carbon dioxide, nitrogen oxides, sulphur dioxides and volatile organic carbons (VOCs). There is no quantitative information with respect to the contribution of vehicle emissions to air pollution loads in the EMM.

The South African government published a draft strategy in 2003 on the control of exhaust emissions of road going vehicles33. This strategy takes local conditions into account as well as developments in other developed countries. The definition of clean fuels, as applicable from 2006 is "any fuel that does not contain heavy metals and having a maximum benzene

33 Government Gazette no 25714 vol 462, 12 December 2003, Draft Joint Implementation Strategy for the

Control of Exhaust Emissions for Road Going Vehicles in the RSA.


content of 3%, aromatics content of 42%, sulphur level of 500ppm and a maximum oxygenate content of ethers and selected alcohols of less that 2.7%. Diesel that contains less that 500 ppm of sulphur will also be included". This means that lead in petrol will have to be phased out, the use of lead replacement additives investigated and sulphur in diesel extensively reduced. The refinery sector has estimated that this policy will require investment in existing refineries of between R7 to R10 billion. Government is investigating measures that will support this action, but in the end the cost of fuel will have to be increased to carry the higher costs as “the polluter pays principle” is said to apply. The draft strategy states that the regulated price build up for petrol and diesel will be based on cleaner fuels only. Any other additional costs incurred in the marketing or distribution of fuels containing heavy metals would be excluded accordingly.

In addition European standards for vehicle emissions limits will be implemented for newly homologated vehicles in 2005. These standards will come into full effect in 2006 when all new vehicles will be subjected to emissions controls.

Besides motor vehicles, emissions from the air transportation sector are also a source of pollution that needs to be considered primarily in respect to air quality around the JIA in Kempton Park. JIA is the largest and busiest airport in SA. The primary pollutants from aircraft are hydrocarbons (including VOCs), NOX carbon monoxide and particulate matter. The highest emission levels tend to occur during take-off and when the aircrafts are in idle mode. The Airports Company of South Africa (ACSA) (owners of JIA) has recently undertaken a study to characterise the impacts of the activities at the airport on air quality. At the time of writing this report these results were not available. However, it is anticipated that these results will be available for inclusion in the Final Draft report.

7.4.4 Households Domestic households have the potential to be one of the most important sources of air pollution. As is the case with light industry, individual households are low volume emitters of air pollutants but their cumulative impact is significant. Air pollution from domestic households occurs primarily due to the combustion of fossil fuels as an energy source.

The use of coal and wood as a domestic source of energy is the most significant source of air pollution at a metropolitan level. In addition, wood and coal combustion is the primary energy source in low income population groups as well as the numerous informal settlements that are dispersed across the EMM. This is significant during winter when strong inversion conditions prevail over the Highveld resulting in poor dispersion conditions i.e. the accumulation of air pollution levels in the first 100 to 300 m above ground level. Studies in the Vaal Triangle have shown that the contribution of domestic coal combustion can contribute 40 to 60% of the atmospheric pollution load during winter (EMM State of the Environment 2004).

Coal (mostly bituminous), is the primary fuel produced and consumed in EMM. Production and consumption of coal has serious effects on the environment, leading to air and water pollution, whist also contributing to increasing concentrations of greenhouse gases in the atmosphere.

7.4.5 Mining Although gold mining is the primary mining activity within the EMM, other resources that are mined include coal, silver, dolomite, clay, sand and rock. Most of the mining activities occur in the Southern and Eastern SDRs. Although underground mining activities have a negligible impact on air quality, surface mining activities certainly can have a significant impact on air quality. Whilst dust is the main pollutant of concern, the emission of radon gas is a concern at some sites where the old mine dumps are being reclaimed.


7.4.6 Waste sites With respect to air quality, waste sites are a source of gaseous and particulate emissions. Methane and carbon dioxide theoretically constitute 45% to 55% of landfill gas. Particulate matter is usually wind derived and associated with operational activities including waste disposal, vehicular movement, and waste compacting and covering. EMM is currently considering using currently flared landfill gas for other purposes, and this may have a beneficial impact on the air pollution related to waste sites.

7.5 Human health The detrimental effects of air pollution on human health are well documented. These are, in summary:

Acute/short term: bronchitis, tightness in the chest, wheezing.

Chronic: lung cancer, cardiopulmonary disease.

Mortality rates are higher in cities with dirtier air; it is estimated that exposure to particulate levels exceeding the World Health Organization health standards accounts for roughly 2 to 5 percent of all deaths in urban areas in the developing world34. More critically for EMM, it has been shown in South Africa that mortality is dramatically increased in those families which chronically breathe coal and woodsmoke emissions in poorly ventilated dwellings, which is typically the case for poor residents during highveld winters. It is estimated that around 2000 children die annually as a result of respiratory infections caused by air pollution, the sixth largest killer of children under four in South Africa35.

Vulnerable groups include infants, the elderly, and those suffering from chronic respiratory conditions including asthma, bronchitis or emphysema. However, even healthy adults can also suffer negative effects.

7.6 Information and data gaps There are a significant number of gaps with respect to air quality data in the EMM and this includes both emissions (source) and ambient data. With respect to source data there is a need for the establishment of a comprehensive emissions inventory from all potential sources of air emissions within the EMM for certain priority pollutants. This will be a licensing requirement for “Listed Activities” (currently termed Scheduled Processes), which will be a local government responsibility when the Air Quality Bill is promulgated. In terms of this study, the net effect is that the information related to pollution caused by energy production and/or use in EMM is simply not available at this stage. However, some reasonable inferences can be drawn.

7.6.1 International trends in data requirements South Africa has ratified and acceded to the Kyoto Protocol in 2002. Although South Africa is not obliged to reduce greenhouse gas emissions during the initial period required under the Protocol (2008 to 2012), this could change after 2012 especially when the protocol is implemented. Important commitments include quantification and reduction of greenhouse gas emissions that are emitted within South Africa. The collation of this information will almost certainly require local government input either in the form of promulgation of legislation or collation of information that has been supplied by generators of air pollution that fall within its jurisdiction. With respect to ambient air quality data a comprehensive ambient air quality monitoring plan needs to be developed and implemented. This will include consolidation of existing public and private air quality monitoring programs.

34 World Resources Institute, 1999. 35 EIA 2002


7.7 Issues relating to energy and EMM’s environment The development of an ambient air quality monitoring program will assist the EMM in prioritising air monitoring programmes with a view of addressing the air pollution hotspot areas first and progressively expanding the network to other areas. All emissions and ambient air quality information must be forwarded to and collated at a centralised point in a GIS based system that will allow for easy access to information by the various stakeholders in the EMM including local government, the public and business sectors.

By far the most significant energy-related factor affecting air quality in EMM is domestic consumption of fossil fuels.


8. STATE OF ENERGY

8.1 Service delivery framework

The generic Management Delivery Lifecycle depicted in Figure 26 below is common to all businesses in the delivery of their Products or Services. This encapsulates the three key management functional perspectives of

Strategic Planning (Strategy and Policy)

Tactical Planning & Coordination (Planning and Design)

Operational Delivery & Maintenance (Implementation, Operation and Maintenance).

Figure 26 Service Delivery Framework

The desired outcomes, or strategic objectives, realised as a result of the delivery of the product (or service) influence the way in which the various functions on the Service Delivery Path are carried out. Monitoring and verification provides feedback along the Service Delivery Path.

Extending this principle to EMM’s service delivery objectives, the following sections will deal with highlighted energy issues in EMM with respect to a common Service Delivery Framework.

PPrroodduucctt

ImplementChanges

DesignPlanning

PolicyStrategy

Operate MaintainService Delivery PathParameters,

Guidelines andObjectives

Budgets and Detailed

Implementation Plans

“Cross-cutting” Critical Outcome Criteria influence the way functions are carried out in order to bring about the desired outcomes in line with Strategic Objectives


8.2 Issues

8.2.1 Geoeconomic dynamics Ekurhuleni, an area embracing 88 wards and some 2,5-million people appears, in economic terms, to have two main axes:

an east-west axis associated with the earlier development of mining and heavy industries

a north-south axis more inclined towards lighter, higher tech, industries.

Whereas the latter appears to be a part of the Alberton-Midrand-Centurion growth axis, the Germiston-Springs axis is associated with declining mining, heavy industry and agricultural sectors.

Quantitative information to support what are now largely impressions is difficult to come by. However there are some indicators.

8.2.1.1 Agriculture The smallholdings in the Brakpan-Benoni-Springs area have been a source of agricultural produce for the Gauteng market since the inception of industrial activity along the “reef”. Such activity has been increasingly attenuated by crime and growing input costs and the properties are now being employed for, inter alia, townhouse development.

8.2.1.2 Industry Formal employment in Ekurhuleni has contracted in most years with marginally positive changes only being recorded in 1994, 1995 and 2002. In 2003, manufacturing has again been in recession following the strengthening of the rand, and large employment losses have been reported.

The investment performance in the mid-1990s was due to a very small number of capital-intensive sectors, mainly basic iron & steel, non-ferrous metals (such as aluminium) and basic chemicals. Aside from these factors, investment levels have remained low.

The main feature of developments in the 1990s has been the continued better performance of capital-intensive industries. In terms of output growth, the automotive manufacturing sector has performed the strongest, although the sector has not recorded any net increase in employment. After motor vehicles the best performing sectors are the heavy industries of basic chemicals, basic iron & steel, and basic non-ferrous metals, none of which has recorded significant job creation. The sectors in which Ekurhuleni is best represented, such as metal products, other chemicals, plastics and machinery & equipment have tended to perform less well36.

One indicator of the decline of heavy industry (east-west axis) is shown by the heavy fuel oil consumption pattern (Figure 6).

8.2.1.3 Transportation The situation is further influenced by the existing transportation facilities and growing transportation needs. Transportation (trains and buses) backbones were originally laid out on a east-west axis to service the older pattern of agricultural and heavy industries. The new trend towards north-south high-tech industries is serviced mainly by private and taxi transportation.

36 Manufacturing industry in Ekurhuleni: Analysis of recent performance and findings from firm survey.

Briefing Paper 9. Ekurhuleni Metropolitan Municipality – University of the Witwatersrand joint programme of research on industrial development in Ekurhuleni J. Machaka and S. Roberts March 2004


It should be emphasized that the north-south, east-west axis interpretations provided are largely impressionistic, as supporting data has proven difficult to come by in the allotted time.

It is suggested that the concept be subjected to a more quantitative study in future programmes.

8.3 Identification and prioritisation of energy issues in EMM The project team has identified an extensive set of issues through the following mechanisms:

Workshop held 17 August 2004 with EMM staff and energy stakeholders identified by EMM and the project team

Own experience


Table 51 Identification and prioritisation of energy issues in EMM

ISSUE COMMENT PRIORITY

Strategy & Policy

Transportation

Transportation demand sector is the major energy user and major pollutant

Large component of energy is used for transport – not much is known about the use of energy in the transport sector – energy needs to be a specific variable that is address in all the transport planning activities, especially related to personal transport.

High

Awareness building is needed for the public to understand the consequences of energy intensive transport

Mindset shift will likely be an issue (“all South Africans want cars and want to drive alone”), with a need for different programs addressing different income groups.

High

Limited availability of public transport (alternatives to taxis)

Medium

Congestion should be addressed through the construction of new infrastructure and Travel Demand Measures

High

Carpooling should be encouraged Perhaps through use of designated lanes, with monitoring and enforcement through CCTV systems at key points.

High

Implications of the new national policy on exhaust emissions should be assessed from EMM’s perspective.

SA government is to supply clean petrol and diesel by 2006. Implications for fleet upgrade/ replacement should be addressed.

High

Need for roadworthiness tests of current vehicles in EMM (trucks, taxis and private cars) to assess emissions and fuel efficiency

High

Need for alternative, environmentally friendly modes of travel to be available and safe (bicycle, pedestrian options) for EMM residents

High

Need for alternative, environmentally friendly fuel (methane, ethanol, hydrogen, fuel cells, diesel from sunflower oil, etc.) and vehicle technology (hybrid/electric vehicles), to be more readily available to EMM residents

Need to be monitored in terms of infrastructure and policy implementation once national policy has established. Municipal bylaws can assist in enforcing roadworthiness requirements.

High


Implications of new policy on exhaust emissions on EMM will have to be examined

High

Electricity

Rollout of the incorporation of municipal electricity undertakings into Regional Electricity Distributors (REDs), which will incorporate Eskom distribution. Objective is to introduce efficiency into the electricity supply chain and national tariffs. Several municipalities, including Cape Town and Polokwane, have signed on already.

Implications for EMM RED include:

Contestable customers (large power users will have the opportunity to select suppliers)

Responsibility for planning for future capacity and need for integration in planning between generation, transmission and distribution

Planning for O&M of infrastructure Potential for increase in electricity price (carried through from generation) – end user

affordability

High

Need for a centralised and accurate electricity database, consolidating technical, financial and geospatial information

Could also be used for tariff analysis, DSM planning, policy development, planning and marketing

High

Need to maintain/improve quality of electricity supply Contributing factors include lack of funds for preventive maintenance, vandalism, illegal connections, and potential lack of supply capacity nationally after 2007. Impacts on industrial, commercial and residential consumers. If perception of lack of reliable electricity supply persists, investment (especially industrial development) could start to follow perceived reliable electricity supply.

High

Sufficient funds should be made available for repair and maintenance of the distribution system.

Some substation repairs have taken months to effect as funds were not allocated, affecting supply to customers.

High

Sufficient capex and opex need to be made available for the development of new infrastructure.

This will take on even greater importance with the rollout of the REDs. High

Electrification policy should be tied to socio-economic development of the region.

EMM should ensure close liaison with DME on planning of future electrification rollouts. High

Environmental and health issues

Coal is used extensively in low income households. Emissions from coal at the household level are extremely high

Illuminating paraffin is a potential source of fire in low income homes

Impacts are on householder health as well as the environment. EMM could implement mechanisms to support the DME’s initiative to introduce LPG into lower income homes. Incentives could be considered to make LPG more accessible, as well as awareness programs concerning the health effects of coal and IP.

High


Emissions from coal-generated electricity affect the atmosphere in South Africa

EMM does not have electricity generation within its borders Low

PCBs may be present in old electrical equipment such as transformers and capacitors (and fluorescent light ballasts). PCBs are carcinogenic, and become more dangerous when burned.

The extent and location of residual PCB contaminated oil (if any) in EMM electrical facilities should be assessed, and an action plan drawn up to dispose of the remaining chemicals. The action plan should take into account the proximity of facilities available for decontamination.

Medium

Electromagnetic radiation from overhead high voltage power lines is believed to be a potential carcinogen and cause of miscarriages, although studies are not conclusive

A basic measure would be to ensure that residents who build houses in the rights of way of power lines are informed that not only is the siting of their house illegal, but it also represents a potential, but not proven, health risk. Despite the abstract and complex nature of the subject and the resulting potential for oversimplification by all parties, a well-bounded awareness program for Ekurhuleni residents based on definitive research should be considered. EMM electricity and health staff should ensure they are jointly well-informed on ongoing research on the subject, as part of a long term agenda to assess the health and environmental effects of energy in Ekurhuleni.

Medium

RE/EE/DSM initiatives

Low level of penetration of RE/EE strategies within EMM

At national level, draft strategy was issued in April 2004. NER policy states that munics, as REDs, to deliver on EEDSM targets.

High

Waste to energy projects should be encouraged

The potential for cogeneration projects should be explored

New housing projects should be required to meet energy efficiency standards.

Such projects may have potential CDM benefits as well as contributing to EMM’s environmental sustainability.

Housing projects should address issues such as passive solar heating and cooling (window and shade placement for keeping houses cool in summer and warm in winter), insulation, ventilation systems, double-glazing of windows, and weather-stripping of windows and doors to keep the indoor environment to the desired conditions.

Electricity-intensive air conditioning should be discouraged.

High

DME will require appliances to be labelled in terms of their energy efficiency.

EMM could support in terms of awareness building. Low

General

Energy poverty needs to be addressed Mechanisms for measuring energy poverty should be developed, and targets set for energy poverty reduction

High

Energy costs will likely become cost-reflective, taking into account externalities such as pollution

High


Development of EEDSM related bylaws will be needed Building permits and zoning regulations may be an appropriate mechanism for incentivising EEDSM in the longer term

Medium

Planning & Design

Transportation

Synchronized/phased traffic lights could relieve bottlenecks at peak hours with a resultant decrease in fuel consumption

Vehicles which maintain a regular speed rather than a stop/start pattern use less fuel per kilometre driven.

High

Intelligent Transport Systems should be considered for the longer term.

Medium

Spatial planning should take into account revising the urban form to support energy conscious initiatives such as bicycle paths

For safety and environmental reasons High

Better lighting of road networks – brighter, lower consumption streetlights and programmed traffic lights would have cross-cutting benefits

Streetlighting does not represent a significant energy demand sector in EMM. However, an EE program in streetlighting would be highly visible and would contribute to awareness building on EE, as well as potentially reducing crime and accidents.

Low

Electricity

Lack of uniform, up to date computerisation of electricity system information

EMM Electricity is currently planning to roll out an extensive GIS mapping project, which will include provision of computer facilities for municipalities still lacking them

High

Discrepancies in electricity information – description of system, number of customers, losses

Information on number of customers at household level particularly suspect High

Availability of detailed household energy use information

EMM should consider a household energy profiling study to establish a database on energy use for cooking, heating and lighting, which could be used for EEDSM. This would typically involve identification of a representative set of households

High

The extent to which the new tariffs are cost reflective should be assessed.

High

Assistance should be provided to consumers in the most effective use of this tariff system.

An active energy use advisory system should be considered. High

Effective management systems for metering systems (credit and prepaid) should be used to check for illegal


connections.

Awareness programs on the consequences of electricity theft should continue.

Collaboration with the South African police on enforcing Section 27 of the Electricity Act (regarding theft of electricity) should continue.

Benoni staff reported a significant reduction in illegal connections while their collaboration with SAPS was active.

High

RE/EE/DSM initiatives

DME planning to implement energy efficiency monitoring country-wide, and currently seeking to develop the institutional framework and data collection protocols.

Local manufacturers and industries should be made aware of industrial energy management initiatives and availability of training programs

EMM will need capacity to supply the data – resources and specialisation will be essential.

DME is implementing several projects under the Capacity Building in Energy Efficiency and Renewable Energy project (CaBEERE), involving industrial energy management, implementation of norms and standards in energy efficiency and monitoring of targets in energy efficiency.

High

EMM should consider developing incentive programs for higher consumption energy users to implement EEDSM, e.g. through installation of solar water heaters.

EMM could incentivise through financing and investment

National government is setting up and rolling out incentive programs Low

General

Need for energy capacity building in EMM staff EMM are addressing through the SEED project High

Need for energy capacity building within EMM’s private sector

Ensure that budgets align with priorities; energy is not necessarily considered a priority within industry and commerce. It is considered a very high priority in the mining sector, as electricity typically represents about 20% of production costs.

High

EMM business were originally established around mines and railways (east-west axis) and were labour intensive; now increasing trend towards high tech businesses, with mode of transport changing to road rather than rail, and moving north.

Land use and transportation planning implications, which will involve energy supply as well. Low


Limited data on household use of coal, IP, LPG and electricity - this may call for a longitudinal survey and study.

This links to the issues of affordability, local health and air quality.

Also the thermal design of new houses related to comfort and energy use

Upgrading of existing houses

Advice and assistance to users to use the right form of energy and appliance so as to reduce cost, energy use and pollution- there may be a case for an effective policy of advisory centres

High

Need for alignment of development planning between government levels, and for EMM IDP to have an explicit energy component.

High

Operation & Maintenance

Environment

Land based environmental impacts of energy externalities need to be assessed.

Environment and Energy must work together. Other countries, particularly the Scandinavians, have already done extensive work in this area. There may be positive impacts as well, such as the potential use/sale of methane related carbon emissions from landfills. Monitoring and verification will be essential.

Medium

Electricity

Rigorous efforts to prevent illegal connection through awareness programs and system audits should continue.

Copper cable theft is an economic crime as well as basic theft. Illegal connections are often effected by children, as their small hands can reach into small junction box spaces, exposing them to severe risk of injury and death.


8.4 Conclusions and recommendations

8.4.1 Conclusions The most significant sector as far as energy use is concerned in EMM is the transport sector, for which liquid fuels are the dominant energy carrier.

Of the total of 118 652 TJ of energy consumed in Ekurhuleni in 2003, 41% or 48 448 TJ were consumed in the transport sector, 36% or 42 665 TJ were consumed by industry and construction and 14% was consumed by households.

Liquid fuels supplied 49.1% or 52 587 TJ of the energy consumed, electricity provided 37.7% at 44 768 TJ and gas provided the bulk of the remainder of the energy supply with 10.1%.

Energy consumption within EMM municipal buildings is negligible in comparison with other demand sectors.

There is a great deal of data for energy carriers, energy users, supply and demand in Ekurhuleni. However, there are still significant discrepancies in the following areas:

Household data – number of total households in EMM, number of electricity clients

Eskom and EMM electricity data – correlation between energy and sales data

GIS mapping information for electricity is generally available at varying levels of detail at the various Customer Care Centres, and no other energy information is available disaggregated below the municipality or Johannesburg level.

8.4.2 Recommendations EMM has already taken the most important step of engaging an Energy Specialist to develop an integrated approach to energy in Ekurhuleni.

It is recommended that the Energy Strategy be developed using the Service Delivery Framework as a guideline to establish:

Desired outcomes

Key performance indicators

Data collection requirements

Data collection protocols

Data provision and performance agreements

Monitoring framework for data collection

across the range of energy demand sectors and energy carriers. Critical focus areas for data collection should be the transport and household demand sectors.

8.4.2.1 Electricity The following initiatives are recommended with respect to electricity:

Independent audit of electricity information

Establishment of an automated energy balance, integrating information from the Venus system

Further training for financial personnel to ensure adjustments to financial information are correctly reflected in technical adjustments

Regular audits of the adjustment process, involving EMM Electricity personnel


Small showcase projects within EMM municipal offices to demonstrate Demand Side Management potential and techniques to the general public

The difference in consumption growth between electricity and IP for lighting should be examined in more detail.

8.4.2.2 Liquid fuels Further studies should examine losses in the supply chain and assess areas where

demand may be suppressed due to distance from supply.

The trend in consumption of diesel and petrol should be examined in terms of influence of energy efficiency incentives.

8.4.2.3 Renewables

8.4.2.4 Environmental issues

Documents

EKURHULENI METROPOLITAN MUNICIPALITY STATE OF ENERGY ... · Ekurhuleni State of Energy Report, November 2004 i EKURHULENI METROPOLITAN MUNICIPALITY STATE OF ENERGY REPORT TABLE OF