1 South Africa | Country reports | Trends in global energy efficiency 2011

South AfricaEnergy efficiency report

Objectives:

– 12% energy intensity reduction by 2015–15%finalenergydemandreductionforindustryby2015

1 TheEuropeanUnion,asthebest-performingregion,isusedasthebenchmark.

Latest update: February 2011

Overview 2009 2000-2009 (% / year)

Primaryintensity(EU=100)1 253 -- -1.1% -CO2intensity(EU=100) 294 -- -1.7% -

CO2emissionspercapita(intCO2 /cap) 6.9 + 0.4% -Power generation 2009 2000-2009 (% / year)Efficiencyofthermalpowerplants(in%) 38 - 0.7% +RateofelectricityT&Dlosses(in%) 11 -- 2.7% --CO2emissionsperkWhgenerated(ingCO2 /kWh) 817 -- -0.7% -Industry 2009* 2000-2009* (% / year)Energyintensity(EU=100) 215 -- -2.3% -Unitconsumptionofsteel(intoe/t) 0.60 -- -0.7% -*2008and2000-2008forsteel

++ Amongbestcountries + Better than the EU average1 - BelowtheEUaverage1 -- Amongcountrieswithlowestperformances

Trends in global energy efficiency 2011 | Country reports | South Africa 2

1. Overview1.1. Policies: 12% energy intensity reduction target for 2015FollowingtheapprovaloftheEnergyEfficiencyStrategyofSouthAfricabytheCabinetin2005,alistofcommitmentswasnegotiatedbetweenindustryandthegovernment.TheMinisterforEnergyandMinerals,togetherwiththeCEOsof24majorenergyusersandsevenindustrialassociations,signedtheEnergyEfficiencyAccord,therebyvoluntarilycommittingthemselvestoindividuallyandcollectivelyworktowardtheachievementofthegovernment’senergysavingstarget.Thestrategyinvolvesa15percentenergydemandreductiontargetinindustryby2015comparedwithareferenceprojection,anda12percenttotalenergyintensityreductiontargetforthecountryasawholebythesamedate.

1.2. Energy consumption trends: important role for coalSouthAfrica’senergyconsumptionpercapitaishighcom-paredwiththeworldaverage:2.7toeversus1.8toe.Totalenergyconsumptionincreasedby1.1percent/yearbetween1990and2002.Eversince,ithasincreasedattheveryrapidrateofover4percent/year.Finalconsumptionfollowedthesametrendastotalenergyconsumptionbetween1990and2002;sincethenithasincreasedataslowerrateperyear.

Coalplaysanimportantroleinmeetingthecountry’senergydemand,accountingforaround70percentofconsumptionin2009,butitsmarketshareisdecreasing(74percentin2000).In2009oilaccountedfor13percentofconsumption,andbiomassforaround10percent.Themarketshareofgasisincreasingslightly(3percentin2009comparedwith1.6per-centin2000),whilenuclearaccountsforaround3percent.

Source: Enerdata

Primary consumption

Final consumption

40

60

80

100

120

140

160

1990 1995 2000 2005 2009

Mto

e

Figure 1: Total and final energy consumption trends

Whiletheshareofindustrialenergyconsumptionisstableatagloballevel,itisdecreasingsignificantlyinSouthAfrica:from

53percentin1990toaround40percentin2009.Thehouse-holds,servicesandagriculturesectorsabsorbedmorethan25percentofconsumptionin1990and35percentin2009.Transportcurrentlyaccountsfor24percent.

Source: Enerdata

0%

20%

40%

60%

80%

100%

1990 2000 2005 2009

Households - Services -Agriculture

Transport

Industry (including non energy uses)

Figure 2: Distribution of final energy consumption by sector

Thecountry’selectricityconsumptionpercapitaisabout60percenthigherthantheworldaverage(4,150kWhin2009,comparedwiththeworldaverageof2,550kWh).Totalelectric-ityconsumptionincreasedatapaceof3percentperyearfrom1990to2007.Becauseoftheglobalcrisis,electricitycon-sumptionhasdecreasedby3.5percentperyearsince2007.

Electricityrepresents26percentoffinalenergyconsumption,withanincreasingmarketshare(21percentin1990and25percentin2000).Theindustrialsectorconsumesabout60percentoftheelectricityusedinthecountry.

Source: Enerdata

0

50

100

150

200

250

TWh

Industry Others

1990 1995 2000 2005 2009

Figure 3: Electricity consumption trends by sector

3 South Africa | Country reports | Trends in global energy efficiency 2011

South AfricaEnergy efficiency report

1.3. Energy efficiency and CO2 trends: decrease in CO2 intensity between 2000 and 2009TotalenergyconsumptionperunitofGDP(primaryenergyintensity),measuredatpurchasingpowerparity,isabout60percenthigherthantheworldaverage.

Totalenergyintensitydecreasedattheslowrateof0.4per-cent/yearbetween1990and2009.Since2000,SouthAfrica’stotalenergyintensityhasdecreasedmorerapidly(1per-cent/year).Onaverage,thereductioninfinalenergyintensity(finalenergyconsumptionperunitofGDP)wasfasterbetween1990and2008;thosedifferenttrendsareexplainedbyincreasinglossesinpowergenerationduetothefactthatelectricityconsumptionisgrowingrapidly,andthatelectricityispredominantlyproducedfromcoal.

CO2emissionsperunitofGDP(CO2intensity)decreasedatafasterpacethantotalenergyintensity(abouttwiceasfastbetween1990and2009).Between2000and2009,CO2 intensity decreased even faster: about 40 percent of that decreaseisexplainedbyenergyswitchestocarbon-freeenergies(decreaseintheshareofcoalinenergyconsumption),andtheremaining60percentbytheenergyintensityreduction.

Source: Enerdata

-1.8%

-1.6%

-1.4%

-1.2%

-1.0%

-0.8%

-0.6%

-0.4%

-0.2%

0.0%

1990-2009 2000-2009

%/y

ear

Primary energy intensity

Final energy intensity

CO2 intensity

Figure 4: Energy and CO2 intensity trends

2. Power generation2.1. Policies: 10 TWh from renewables in 2013In2003thegovernmentpublishedaWhitePaperonRenew-ableEnergy,whichsetsa10TWhrenewableenergyproduc-tiontargetfor2013.

TheEnergyRegulator(NERSA)hasapprovedtheRenewableEnergyFeed-InTariff(Refit)guidelines.TheRefitPowerPur-chaseAgreement,whichhasatermof20years,willbereviewedeveryyearthroughoutthefirstfiveyearsofitsimple-mentation,andeverythreeyearsthereafter.

TheSouthAfricanutilityEskomhaslaunchedanationalDemand-SideManagement(DSM)initiativetoauditenergyuseintheindustrial,commercialandhouseholdssectors.TheDSMauditssupportEskom’slong-termstrategytoreduceSouthAfrica’selectricitydemandduringpeakperiods.

2.2. Power generation trends by source: strong domination of coalSouthAfricahasoneoftheworld’slargestsharesofelectricityproductionfromcoal:in2009,92percentofelectricitywasgeneratedfromcoal,whilenuclearpoweraccountedfor6percentandhydroelectricityforaround2percent.Accordingly,CO2-freeelectricitygenerationaccountedfor8percentoftotalpowergeneration.Theseshareshavebeenstablesince1990.

Source: Enerdata

0

50

100

150

200

250

300

1990 2000 2009

TWh

Other*

Hydro

Nuclear

Gas

Oil

Coal-Lignite

*Including biomass, geothermal and solar

Figure 5: Power generation by source

2.3. Efficiency of the power sector: significant improve-ments over the last 10 yearsSincemorethan90percentofpowergenerationisproducedfromcoal,theoverallefficiencyofpowergenerationisclosetothatofthermalpowerplants.Theefficiencyofthermalpowergenerationcurrentlycorrespondstointernationalstandards,despiteasteadydeclineinthepast,from38percentin1990tolessthan34percentin1998.Ithasbeenincreasingsincethenandin2009reached38percent,whichis1percentagepointlowerthantheworldaverage.

Trends in global energy efficiency 2011 | Country reports | South Africa 4

Source: Enerdata

Total power generation

Thermal power plants

30

31

32

33

34

35

36

37

38

39

40

%

1990 1995 2000 2005 2009

Figure 6: Efficiency of power generation and thermal power plants

Source: Enerdata

0

5

10

15

20

25

30

35

40

45

Steam

GW

1990 1995 2000 2005 2009

Figure 7: Thermal electricity capacity, by technology

TherateofT&DlossesintheSouthAfricangridwasabove11percentofthedistributedvolumesin2009,whichishigherthantheworldaverage(9percent).Thoselosseshaveincreasedovertime(6.5percentin1990).

Source: Enerdata

3

4

5

6

7

8

9

10

11

12

%

1990 1995 2000 2005 2009

Figure 8: Electric T&D losses

The average CO2emissionfactorforpowergenerationishighbecauseoftheshareofcoal:itwas820gCO2/kWhin2009,whichisabout60percenthigherthantheworldaverage.

Source: Enerdata

300

400

500

600

700

800

900

1000

gCO

2 /

kWh

1990 1995 2000 2005 2009

Figure 9: CO2 emission factor for power generation

3. Industry3.1. Policies: voluntary energy saving commitmentsTodate,theEnergyEfficiencyAccord,whichisavoluntaryagreementwith24majorindustrialenergyusersandsevenindustrialassociations,isthemainmeasuretopromoteenergysavingsinthesector.

3.2. Energy consumption trends: decrease in industrial use of coal and ligniteIndustrialenergyconsumptionhasvariedsignificantlyovertime:itfirstdecreasedby9percentperyearbetween1990and1993becauseofarecession(-2percentofGDPbetween2001and2002),andthenincreased,withenergyconsumption

5 South Africa | Country reports | Trends in global energy efficiency 2011

South AfricaEnergy efficiency report

reachingits1990level(ie,23Mtoe)againin1998.Itthendecreasedagain,by3percentperyear,until2001.Untiltheglobalcrisis,industrialenergyconsumptionincreasedsteadily,reaching23Mtoein2008.

Source: Enerdata

15

16

17

18

19

20

21

22

23

24

Mto

e

1990 1995 2000 2005 2009

Figure 10: Industrial energy consumption

Theshareofelectricityinindustrialenergyconsumptionhasincreased since 1990 and in 2009 reached 40 percent of the total(comparedwith30percentin1990).Theuseofcoalandligniteinindustryhasdecreasedby30percentsince1990,anditsshareintotalenergyconsumptionisalsodecreasing(from50percentin1990to38percentin2009).Theshareofindus-trialgasconsumptionincreasedto10percentin2009,upfrom2percentin1990.Biomassaccountedfor9percentin2009andoilfor3percent.

Theshareofenergy-intensiveindustriesinoverallindustrialenergyconsumptionhasdecreasedsince1990.Thesteelindustry’sshareofenergyconsumptioninparticularhasdecreasedsteadilyandnowstandsataround20percent.Theshareofthechemicalindustryhasincreasedslightly,whilethenon-metallicmineralssector(cement,ceramics,etc.)hasmaintaineditsshare.

Source: Enerdata

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1990 2000 2005 2009

Biomass

Electricity

Gas

Oil

Coal/Lignite

Figure 11: Energy consumption of industry, by source

Source: Enerdata

Other

Paper

Non metallic minerals

Chemical

Steel

1990 2000 2005 2008

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Figure 12: Energy consumption of industry, by branch

3.3. Energy intensity trends: rapid reduction in energy intensityOvertheperiod1990-2008,thereductionintheconsumptionperunitofindustrialvalueadded(energyintensity)washighand,onaverage,reached2percent/year,whichis25percenthigherthantheworldaverage.

Trends in global energy efficiency 2011 | Country reports | South Africa 6

Source: Enerdata

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

Total*

Steel

Chemical

Cement**

Paper

%/y

ear

1990-2008 2000-2008

*Including construction and mining

**Non metallic minerals

Figure 13: Trends in the energy intensity of industrial branches

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