Global climate change is real. The vast majority of the world's leading scientific experts agree that GHGs affect the climate by increasing the "greenhouse effect." The gases concentrate in the earth's atmosphere and trap heat by blocking some of the long-wave energy the earth normally radiates back to space. Activities such as the burning of fossil fuels (coal, oil and natural gas for heating and electricity, gasoline and diesel for transportation), deforestation activities and some agricultural practices are increasing the greenhouse gases in the earth's atmosphere and accelerating global climate change.
As a business initiative our objective is to mobilise business towards mitigating climate change through various energy efficiency activities that are economically sustainable. We also encourage business to invest in energy efficient and engagewith South Africa’s regulatory framework. Sustainable as these energy efficiency activities are intended to be, business should not lose sight of technological improvements, social empowerment and general economic growth for the industries.
Activities and Achievements
Following the adoption of the Energy Efficiency Strategy of the Republic of South Africa in 2005, a number of progressive South African companies signed a voluntary
Energy Efficiency Accord with government through the Minister of Minerals and Energy. This Accord was facilitated by the NBI and its main aim was to assist in implementing the strategy and contributing to the achievement of the energy efficiency targets as set out in the country’s National Energy Efficiency
Strategy. In terms of the National Energy Efficiency Strategy which was released 26 June 2009, the national overall target was a final energy demand reduction of 12% but the industry target was 15%. To convene the business of the Accord and its link with government, an Energy Efficiency Technical Committee (EETC) was formed with NBI playing the management and secretariat roles. The committee meets regularly to share best practices on the promotion of energy efficiency within their respective companies and exchange ideas of common interest with regards to energy efficiency. The EETC is chaired by one of the signatory companies and the co-chair is provided by the Department of Energy.
Through the Accord, the largest companies have been working with government to promote and implement energy efficiency.
There has been growth in the number of signatories since the initial signing of the Accord, indicating value and traction. At the initial signing in 2005 there were 30 signatories comprising 23 companies and seven business associations. Currently there are 50 signatories to the Accord comprising 42 companies, the Department of Energy and eight key business associations who help mobilise their members towards energy efficiency. The company signatories are from the mining, industrial, petrochemicals, commercial and financial sectors: mostly the top energy users in the country including Eskom, Sasol, BHP Billiton, Anglo American, AngloGold Ashanti, Anglo Platinum, Xstrata, ArcelorMittal and Exxaro. Companies like Liberty Life, ABSA, Liberty Life, Dimension Data, First Rand and Hollard have signed the Accord in 2009.
This momentum will be taken forward following the commitment of the Minister of Energy to ne gotiate a revised Accord based on the lessons learnt and the demands of the current electricity crisis. With the establishment of the new Department of Energy, government is set to refocus its policy on energy and continue with its participation and support of the Accord.
In light of the Accord that was signed in May 2005 between business and the then Department of Minerals and Energy (on behalf of government), the NBI and Eskom have taken the lead in recognising good energy efficiency practise on the side of business. On 5 December 2008 three Accord signatories were presented with the ETA Awards for their efforts in contributing towards energy efficiency in the country.
The following companies took first position in their respective categories:
- Mining Sector: Xstrata Alloy-Merafe
- Industrial Sector: AfriSam
- Commercial Sector: Woolworths Holdings
The NBI’s work on energy efficiency is through ongoing involvement of the EETC, implementation of the Accord, co-ordinating efforts to feed into policy formulation and regulation with Business Unity South Africa (BUSA) and relevant government departments. The committee forum provides a platform for the Accord signatories to share ideas on best practices, deliberate on the latest energy efficiency trends and gives business the opportunity to engage government on policy formulation.
Energy Efficiency Assessment Report
The Accord was reviewed in 2008 and in preparation for this review, NBI conducted research on the successes and challenges of the Accord. These were incorporated into a comprehensive assessment report. The results and success of this process now serves to inform a way forward in the Energy Efficiency Strategy and its implementation. Among the key issues the research sought to measure were:
- The level of energy savings and investments that signatory companies have made
- The level of success and value-add of the Accord as a voluntary initiative
- The level of commitment of both business and government to the Accord.
The Assessment Study of the Energy Efficiency Accord was successfully completed at the end of November 2008. For more information please contact our Project Manager.
Energy Efficiency Improvements for South Africa: The Japanese Experience and Co-operation
Following a country to country engagement between Japan and South Africa and an exchange visit in which the NBI participated on behalf of the Accord signatories, South Africa hosted a Japanese group of energy specialists in November 2008. Their objective was to assess potential for energy efficiency improvements, energy policy application and establish possible future energy efficiency co-operation. The initial interaction with business, government, various agencies and academic institutions was sealed with a return visit in January 2009. The Japanese group consisted of the Japan International Cooperation Agency, The Institute of Energy Economics, Japan (IEEJ) and the Tokyo Electric Power Company, Inc. The delegation was headed by Takeo Suzuki, a professional engineer with the IEEJ.
Due to the success of the first meeting, the NBI was subsequently requested to facilitate a feedback seminar on 27 January 2009. The main aim was to present feedback to the energy players that participated in the November 2008 study. Presentations made by the Japanese team can be downloaded (.pdf files). For further information, please contact our Project Manager.
Subsequent to this visit, a proposal for co-operation was compiled by the Departments of Energy, Trade and Industry, and Science and Technology.