South Africa Energy efficiency report

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1 South Africa Energy efficiency report Objectives: o 12% final energy demand reduction by 2015 o 15% final energy demand reduction for industry by 2015 Overview - (%/year) Primary intensity (EU=100)¹ % - CO 2 intensity (EU=100) % - CO 2 emissions per capita (in tco2/cap) % - Power generation - (%/year) Efficiency of thermal power plants (in %) % -- Rate of electricity T&D losses (in %) % -- CO2 emissions per kwh generated (in gco2/kwh) % -- Industry - (%/year) Energy intensity (EU=100) % - Unit consumption of steel (in toe/t) % - * and - for steel ++ Among the best performing countries + Above the EU average 1 - Below the EU average 1 --Among the worst performing countries Latest update: April The European Union, as the best performing region, is used as the benchmark.

2 1. Overview 1.1. Policies: 12% final energy demand reduction target for 2015 The National Energy Efficiency Strategy of South Africa, approved by the Cabinet in and reviewed in, sets a 12 percent final energy demand reduction target for the country as a whole by 2015 compared with a reference projection. It also establishes several sectorial targets. Until now, energy efficiency measures mainly concerned the industry sector. However, several information campaigns targeted at the residential sector have taken place in recent years in order to boost electricity savings and reduce consumption peaks. In addition, energy labeling and minimum energy performance standards for domestic appliances are progressively being introduced. South Africa s first energy efficiency building regulation was adopted in, setting minimum energy efficiency requirements for all new buildings Energy consumption trends: strong increase in electricity consumption South Africa s energy consumption per capita is high compared with the world average: 2.8 toe versus 1.9 toe. Between and, total energy consumption increased at the very rapid rate of 4.9 percent/year, but it has decreased by 2 percent/year since then. The share of industry (including non-energy uses) has decreased from 29 percent in to 19 percent in, whereas the share of the power sector has remained fairly stable, at around 40 percent. Figure 1: Energy consumption trends by sector Other Industry Power generation Mtoe The country s electricity consumption per capita is about 60 percent higher than the world average (4,500 kwh compared with the world average of 2,800 kwh in ). Total electricity consumption increased at the rapid pace of 3 percent/year from to. Thereafter, electricity consumption was affected by supply constraints and in by the global crisis: in it only just recovered its level. The industrial sector consumes about 60 percent of the electricity used in the country. South Africa Country reports 2

3 Figure 2: Electricity consumption trends by sector Industry Others TWh Energy efficiency trends: decrease in primary energy intensity since Total energy consumption per unit of GDP (total energy intensity), measured at purchasing power parity, is about 50 percent higher than the world average. This high level is due to the importance of energy intensive industries and of coal in the energy supply. Since, South Africa s total energy intensity has decreased by 1.2 percent/year. The industry sector contributed to two-thirds of this decrease. Figure 3: Energy intensity trends 0.2% % -0.2% %/year -0.4% -0.6% -0.8% -1.0% -1.2% -1.4% Total Industry Power generation 2. Power generation: steady decline over the last 10 years Since more than 90 percent of power generation is produced from coal, the overall efficiency of power generation is low and close to that of thermal generation. The efficiency of thermal power generation has been declining steadily since, from 34 percent to less than 33 percent in. South Africa Country reports 3

4 Figure 4: Efficiency of power generation and thermal power plants Figure 5: Thermal electricity capacity, by technology % Total power generation Thermal power plants GW Steam Gas turbines Combined cycles The rate of transmission and distribution losses (T&D) in the South African grid was just below 10 percent of the distributed volumes in, which is higher than the world average (9 percent). Those losses have increased over time (6.6 percent in ). Figure 6: Electric T&D losses % Industry 3.1. Policies: voluntary energy saving commitments Following the approval of the National Energy Efficiency Strategy of South Africa by the Cabinet in, a list of commitments was negotiated between industry and the government. The Minister for Energy and Minerals, together with the CEOs of 24 major energy users and seven industrial associations, signed the Energy Efficiency Accord, thereby voluntarily committing themselves to work, both individually and collectively, towards the achievement of the government s energy savings target. The strategy involves a 15 percent energy demand reduction target in industry by 2015 compared with a reference projection. South Africa Country reports 4

5 3.2. Energy consumption trends: decrease in industrial use of coal and lignite in favor of electricity Industrial energy consumption has been rather stable since (same level as in ). It experienced two periods of significant decreases: -8 percent/year between and because of a recession (-2 percent of GDP between and ), and -4 percent/year between and. Figure 7: Trends in industrial energy consumption Mtoe The share of electricity in industrial energy consumption is exceptionally high. It increased from to and has been rather stable since then (around 43 percent of the total in the s compared with 31 percent in ). The use of coal and lignite has decreased significantly since, and its share in total industrial consumption is also decreasing (from 52 percent in to 35 percent in ). The share of gas increased to 9 percent in, up from 2 percent in. Biomass accounted for 8 percent in and oil for 5 percent. The share of energy-intensive industries in overall industrial energy consumption has decreased since. The steel industry s share of energy consumption in particular has decreased steadily and since has stood at around 23 percent (35 percent in ). The share of the chemical industry has increased slightly, while the non-metallic minerals sector (cement, ceramics, etc.) has maintained its share. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Figure 8: Energy consumption of industry, by source 0% Biomass Heat Electricity Gas Oil Coal/Lignite 100% Figure 9: Energy consumption of industry, by branch 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Other Paper Non metallic minerals Chemical Steel South Africa Country reports 5

6 3.3. Energy intensity trends: rapid reduction in energy intensity in the s Over the period -, consumption per unit of industrial value added (energy intensity) and the unit consumption of the steel industry decreased at a slower pace than in the s. Figure 10: Trends in the energy intensity of industrial branches 0.0% -0.5% - - %/year -1.0% -1.5% -2.0% Total* Steel -2.5% -3.0% *Including construction and mining South Africa Country reports 6

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