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Quick Brief: 30 August 2010

On A Clear Day: Issue 311, 26 August 2010

Lack of awareness can put companies’ survival at risk

On A Clear Day: Issue 310, 20 August 2010

We showed the world, but must do it for ourselves now


Energy Efficiency

Globally the need for adopting sustainable energy practices has been recognised as an important contributor to sustainable development.  The term sustainable energy refers both to the application of renewable energy technologies and energy efficiency.  At this stage, the NBI is focusing its attention on promoting energy efficiency in the industrial sector. Aside from the obvious financial savings that could be made from energy efficient technologies, industry can positively contribute to reducing greenhouse gas (GHG) emissions. Proven through research across the globe, GHGs significantly contribute to climate change. 

 

Background

 

South Africa has followed the international trend by adopting a National Energy Efficiency Strategy in March 2005. The strategy recognises that SA’s economy is energy intensive and has significant environmental impacts as a result of the reliance on coal reserves for its energy production and consequently contributes to GHG emissions. 

 

Approximately 79% of the energy in South Africa is supplied through coal, which has placed South Africa as one of the top 20 GHG emitters globally. South Africa’s abundant coal reserves have influenced energy pricing making the country’s energy prices of the cheapest in the world.  As for the sectoral consumption of energy, in an assessment in 2000 the Department of Minerals and Energy (DME) found that industry contributes 41% of the total energy used followed by the transportation sector (28%).

 

Progress

 

An Energy Efficiency Technical Committee (EETC) was established to implement the Accord on a collaborative basis between industry signatories and government. The NBI acts as secretariat to the Technical Committee. Ian Langridge, Global Energy Efficiency Manager of Anglo American, chairs the EETC with Deputy Chair Dr Elsa du Toit, Director of Energy at the DME. Outcomes of the committee meetings include the following:

  • A document for the disaggregation of industrial sectors was drafted for approval by the Committee. It is seen as imperative for monitoring and verification purposes
  • A draft measurement and verification guideline has been developed to assist companies to monitor their progress toward meeting the expectation of the Accord. Companies are interacting with this ‘guiding tool’ at their own pace. The document will be reviewed constantly as companies interact with it
  • Three case studies reflecting signatories’ experiences in energy efficiency have been developed, printed and distributed widely, and
  • Two Executive Guides on Climate Change and Energy Efficiency have been printed and distributed widely.

An anniversary event in 2006 reaffirmed the Accord between industry and the new Minister of Minerals and Energy, Buyelwa Sonjica. It illustrated progress to date and charted a more assertive implementation plan. Seven new signatories publically signed up to the Accord at this event and in 2007 a further three signed up. The DME and NBI will attempt to solicit further signatories, particularly from energy intensive users.

 

The EETC, which used to meet every two months, is now meeting monthly due to the current energy challenges facing the country. The total length of the meeting has increased to three hours following a request by the committee members.

 

It is envisaged that the format of the Committee will change, incorporating more group members rather than individual signatories, thus allowing the involvement of the ever-increasing number of businesses that are embracing the concept of energy efficiency. In 2008, reporting will become the primary focus of the Committee. Initially handled in a free format, generic reporting guidelines are likely to emerge from the discussions and these will be formalised to a certain extent to enable coordinated reporting to the government.

 

An Energy Management Performance Matrix was distributed to Committee members for completion in 2007 and was also sent to the respective CEOs. Appended to an official letter from the Minister of Minerals and Energy to the Accord signatories, the Matrix request served both as an acknowledgement of the efforts and encouragement to report on the achievements in the energy efficiency area. The results of the Matrix was analysed in 2007 and the outcomes were shared with the Committee members.

 

Resources

  

 


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