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					Department of Local Government and Housing




Gauteng Integrated Energy Strategy
                January 2010
Department of Local Government and Housing

   No 63 Fox Street, Johannesburg,2001

             Private Bag X79,

             Private Bag X86

               Marshalltown

                  2107

         Tel (011) 355 4000/5000

            Fax (011) 834 3670

       Website: www.dlgh.gpg.gov.za
Foreword
In 2008, South Africa was faced with a major challenge in the energy sector – the country
experienced electricity outages and a rapid increase in fuel prices. Energy is vital to the
survival of the Gauteng province. It cuts across all aspects of people’s lives – from transport
to education to health to food. Every decision that is made usually has an energy dimension,
impact or influence. It is only when energy is not available that the importance of this valuable
resource is realised.


Furthermore, there is an increasing acceptance that the manner in which energy is provided
can be harmful. The energy sector in South Africa is responsible for most of SA’s greenhouse
gases being emitted and Gauteng, as the economic hub of South Africa, plays a significant
role in those figures. As such, it is imperative for Gauteng to find a sustainable way to
respond to this challenge. And it was this realisation that led to the development of the
Gauteng Integrated Energy Strategy (GIES). The strategy encapsulates the vision for the
province as “a province that promotes and implements sound energy decisions based on the
principles of equity, a healthy environment, investment promotion and prosperity for all”.


The main purpose of the GIES and implementation plan is to direct the way that energy is
supplied and used within the Gauteng province during the next 4 years (2014); 15 years
(2025); 45 years (2055) and beyond, in an integrated and comprehensive manner. The
strategy aims to improve Gauteng’s environment, reduce Gauteng’s contribution to climate
change, and tackle energy poverty, whilst at the same time promoting economic development
in the province. It is a strategy that will require working with all other initiatives, not duplicating
them but taking them further.


There are already many sustainable energy and climate change initiatives and projects being
undertaken within the province at government level, within industry and commerce and within
civil society. What this strategy will do is to bring cohesion to all these laudable projects.
Thus, following on from the national climate change summit, Gauteng is committed to –
        moving the province to a low-carbon economy;
        ensuring that the province’s carbon emissions peak and start declining by 2030;
        ensuring that there is an improvement in energy efficiency;
        ensuring the scaling up of renewable energy options; and
        Ensuring that energy access for the poor is a priority.


This strategy, the initial status quo report and the energy scenario reports all confirm and
reiterate the need to transform to a sustainable energy future. What stands out is the need for
the province to be bold, to take a large step in bringing change, in creating the paradigm shift
that is required to see results for future generations.
The strategy has established a set of targets using models and projections over a period of
time. The GIES highlights that it is possible to achieve these goals if it is started now and if
mechanisms are put into place to support this change. The strategy will not succeed without
the active involvement of all stakeholders in creating a sustainable energy province. The
GIES was developed as a working document for the province and to this end requires the
commitment of everyone.


Gauteng Department of Local Government and Housing


                                                   i
Abbreviations and Acronyms Used

BMS     -   Building Management System
BNM     -   Basa Njengo Magogo
BRT     -   Bus Rapid Transport
CDM     -   Clean Development Mechanism
CER     -   Certified Emissions Reduction
CFL     -   Compact Fluorescent Light
CO2     -   Carbon dioxide
COJMM       City of Johannesburg Metropolitan Municipality
COP     -   Coefficient of Performance
CPP     -   Current Power Plants
CSIR    -   Council for Scientific and Industrial Research
CSP     -   Concentrated Solar Power
CTMM    -   City of Tshwane Metropolitan Municipality
DBSA    -   Development Bank of Southern Africa
DEAT    -   Department of Environmental Affairs and Tourism
            (now Department of Environmental Affairs)
DED     -   Department of Economic Development (Gauteng)
DID     -   Department of Infrastructure Development (Gauteng)
DLGH    -   Department of Local Government and Housing (Gauteng)
DME     -   Department of Minerals and Energy (now Department of Energy)
DOH     -   Department of Housing (now Department of Human Settlements)
DOT     -   Department of Transport
DPW     -   Department of Public Works
DSM     -   Demand-Side Management
DTI     -   Department of Trade and Industry
DWF     -   Darling Wind Farm
EDI     -   Electricity Distribution Industry Holdings
EE      -   Energy Efficiency
EIA     -   Environmental Impact Assessment
EMM     -   Ekurhuleni Metropolitan Municipality
EMTT    -   Energy Management Task Team
ESCO    -   Energy Service Company
FBAE    -   Free Basic Alternative Energy
GDARD   -   Gauteng Department of Agriculture and Rural Development
GDS     -   Growth and Development Strategy
GEDA    -   Gauteng Economic Development Agency
GHG     -   Greenhouse gas


                                   ii
GIES      -   Gauteng Integrated Energy Strategy
GJ        -   Gigajoule
GPT       -   Gauteng Provincial Treasury
GSDS      -   Gauteng Social Development Strategy
GSSC      -   Government Shared Services Centre
GSSDSPR   -   Gauteng Strategy for Sustainable Development State of Play Report
GWh       -   Gigawatt-hour
HOD       -   Head of Department
HVAC      -   Heating, Ventilation and Air-conditioning
ITP       -   Integrated Transport Plan
IDP       -   Integrated Developed Plan
IEP       -   Integrated Energy Plan
kW        -   Kilowatt
kWh       -   Kilowatt-hour
LED       -   Light-emitting diode
LEDS      -   Local Economic Development Strategies
LFG       -   Landfill gas
LNG       -   Liquefied natural gas
LPG       -   Liquefied petroleum gas
LTMS      -   Long-Term Mitigation Scenarios
MEC       -   Member of Executive Committee
MJ        -   Megajoule
MFMA      -   Municipal Finance Management Act
Mtoe      -   Million tons of oil equivalent
MW        -   Megawatt
MWh       -   Megawatt-hour
NBI       -   National Business Initiative
NEEA      -   National Energy Efficiency Agency
NEP       -   National Electrification Programme
NER       -   National Energy Regulator
NERSA     -   National Energy Regulator of South Africa
NERT      -   National Electricity Response Team
NHBRC     -   National Home Builders Registration Council
NHTS      -   National Household Travel Survey
NIRP      -   National Integrated Resource Plan
NMT       -   Non-motorised transport
NSDP      -   National Spatial Development Perspective
NSHF      -   National Sustainable Housing Facility
ODA       -   Overseas Development Assistance
OPEX      -   Operational Expenditure



                                      iii
PCC      -   Premier’s Co-ordinating Council
PERO     -   Provincial Economic Review and Outlook
PNCP     -   Pilot National Cogeneration Programme
PTP      -   Prioritised Townships Programme
PV       -   Photovoltaic
RDP      -   Reconstruction and Development Plan
RE       -   Renewable Energy
RECs     -   Renewable Energy Certificates
REFiT    -   Renewable Energy Feed-In Tariff
REFSO    -   Renewable Energy Subsidy Office
SANEDI       South Africa’s National Energy Development Institute
SANERI       South African National Energy Research Institute
SANS     -   South African National Standards
SCCCA    -   Southern Cape Coastal Condensation Area
SEA      -   Sustainable Energy Africa
SEGP     -   Standard Electricity Generation Plants
SWHs     -   Solar Water Heaters
TDM      -   Travel Demand Management
TJ       -   Terajoule
TWh      -   Terawatt-hour
UEMP     -   Urban Environmental Management Programme
UNDP     -   United Nations Development Programme
UNFCC    -   United Nations Framework Convention on Climate
VRV      -   Variable Refrigeration Volume
VSDs     -   Variable Speed Drives
WWF      -   Worldwide Fund for Nature




                                   iv
Contents
Foreword ......................................................................................................................i 


Abbreviations and Acronyms Used .........................................................................ii 


Contents......................................................................................................................v 


1. Overview of the Gauteng Integrated Energy Strategy ........................................1 

1.1 The Context: Why a Strategy? ............................................................................................ 1 
1.2 Opportunities ....................................................................................................................... 3 
1.3 Challenges ........................................................................................................................... 4 


2. An Energy Vision for Gauteng ..............................................................................6 

2.1 The Future of Energy in Gauteng ........................................................................................ 6 
2.2 Proposed Energy Targets .................................................................................................... 8 
2.2.1 Interim Provincial Minimum Targets ................................................................................. 9 
2.2.2 Current National Targets (for a breakdown of current metro targets see appendix 6.2) 11 
2.3 Direction, Principles and Approach ................................................................................... 12 
2.4 Vision to Action .................................................................................................................. 13 
2.5 Policy Implications into the future ...................................................................................... 17 


3. Direction, Principles and Approach ...................................................................18 

3.1 Principles ........................................................................................................................... 18 
3.2 An Integrated Approach to Energy Planning ..................................................................... 22 
3.3 Policy Implications into the future ...................................................................................... 24 


4. From Vision to Action ..........................................................................................26 

4.1 Strategic Leadership .......................................................................................................... 26 
4.2 Financial Mechanisms ....................................................................................................... 29 
4.3 Local Government Support, Regulation and Market Support ........................................... 32 
4.4 Promoting Innovation and Clean Energy Technologies .................................................... 36 
4.5 Using Energy More Efficiently ........................................................................................... 40 
4.6 Sustainable Energy Supply ............................................................................................... 46 
4.7 Transport ........................................................................................................................... 52 




                                                                     v
4.8 Affordability and Wellbeing ................................................................................................ 59 
4.9 Empowering Citizens to Reach the Vision ........................................................................ 64 
4.10 Institutional Support ......................................................................................................... 67 


5. Way Forward.........................................................................................................70 

5.1 Priority actions for 2010 to implement the Gauteng Integrated Energy Strategy .............. 71 


6. Appendices ...........................................................................................................72 

6.1 Gauteng Integrated Energy Targets against 2007 Actual Figures .................................... 72 
6.2 Current Metro Targets ....................................................................................................... 74 


7. Glossary of Terms................................................................................................79 




                                                                  vi
                                   GAUTENG INTEGRATED ENERGY STRATEGY




1. Overview of the Gauteng Integrated
Energy Strategy
1.1 The Context: Why a Strategy?

The Gauteng Integrated Energy Strategy (GIES) was developed in response to the
challenges associated with global climate change, the global economic meltdown
and the electricity crisis in South Africa. The strategy aims to improve Gauteng’s
environment, reduce Gauteng’s contribution to climate change and tackle energy
poverty, whilst at the same time promoting economic development in the province.
The purpose of the Gauteng Integrated Energy Strategy and Implementation Plan is
to direct the way that energy is supplied and used within the Gauteng province during
the next 4 years (2014); 15 years (2025); 45 years (2055) and beyond, in an
integrated and sustainable manner. This will be done by advancing and driving
energy efficiency and supporting an energy supply mix that includes renewable
energy technologies across the province. Within Gauteng, solar energy (solar water
heaters) and energy from landfill gas are the most obvious short term renewable
energy sources with the potential to buy renewable energy from wind and
concentrated solar power from outside the provincial boundaries 1 .
The Status Quo Report (June 2009) 2 established that there were a number of
sustainable energy and climate change initiatives being undertaken internationally,
nationally and within the province at both municipal and provincial level. It is clear
from the report that from a global and national perspective, issues concerning climate
change are paramount and that all countries must engage in mitigation measures.
The report illustrated that whilst the metro cities within the province have assumed
aspects of city energy work, there remains much variation between individual
municipalities in terms of the strategies in place and their level of implementation. At
provincial level there has also been much movement with many policies, frameworks
and projects in place or being established.
Furthermore within industry, commerce and civil society, many initiatives and
attempts at making changes have been instigated. The large industry sector in
particular has begun to work on their carbon footprint and reduce their energy
consumption. What this strategy will attempt to do is to integrate the many initiatives
across the different sectors in such a way as to provide cohesion, alignment and co-
operation. Thus, this strategy is expected to provide a framework for these diverse
initiatives and in doing so being a catalyst for change across the province.
The Status Quo Report highlighted that the production, distribution and consumption
of energy involves a complex configuration of infrastructure and activities that range
from the local through to the national scale involving many stakeholders from many
sectors. Furthermore, it showed that the fact that South Africa is fossil fuel dependent
for its energy has meant that the country is a much higher emitter of greenhouse gas

1
    For more information on these and other technologies see the accompanying reports: Energy Efficient and
Renewable Energy Technologies Assessment Report and Assessment of Energy Efficiency and Renewable Energy
Potential in the Gauteng Province and Associated Long Term Energy Planning Implications. This is referred to as the
RE and EE Options report elsewhere.

2
    Gauteng Integrated Energy Strategy and Implementation Plan, Status Quo Report, June 2009, compiled by
Sustainable Energy Africa




                                              January 2010      page 1
                        GAUTENG INTEGRATED ENERGY STRATEGY



per capita than most developing countries and equal to much of the developed global
north. Fossil fuel and energy-intensive consumption patterns are entrenched in the
energy policies and programmes of many developing countries and South Africa is
no exception. Energy planning processes are dominated by a supply-oriented
paradigm that links GDP growth directly with energy use. This suggests that
fundamental changes and adjustments are needed in the way energy is supplied and
used in South Africa generally and in Gauteng more specifically. Inevitably, this
entails improving Gauteng’s environment and health and ensuring Gauteng’s
contribution to the fulfilment of a range of provincial, national and international
policies and targets to achieve sustainable development in the future.
In looking at developments within the province it is clear that there are many energy
opportunities and challenges and it is critical that this strategy takes cognisance of
these in order to pave the way for a sound and achievable strategy.




                                 January 2010   page 2
                                     GAUTENG INTEGRATED ENERGY STRATEGY




1.2 Opportunities

Within Gauteng, as shown in Figure 1A, the industrial sector is a major user of
energy and emitter of carbon dioxide and other harmful pollutants in the province, as
it accounts for 44% of the total energy use, followed by transport (35%) and
households at 16%. Figure 1B outlines energy use in Gauteng by energy carrier.
This is dominated by Coal (35%) primarily as a result of direct Coal combustion by
industrial consumers. This correlates with the industrial sector energy consumption
above. Petrol and diesel account for a similar contribution of 35% combined 3 . Just
over one quarter of energy is supplied electrically.

This state of affairs presents Gauteng with an opportunity to bring about
transformation and work towards delivering an exemplary energy strategy which is
sustainable and equitable and particularly given that the province is targeting high
economic growth. Such growth cannot be sustained with an unsustainable energy
system, and therefore this places added emphasis and added opportunity on the
need for energy efficiency and clean energy supply to be promoted as a matter of
urgency.




Figure 1: Energy use by energy carrier and sector in Gauteng Province



Given that industrial demand is made up mostly of coal and electricity use, and is
therefore the highest contributor to carbon emissions in the province, means that the
industrial sector is a key player in terms of Gauteng province reaching a sustainable
energy profile.
A move towards a sustainable transport system for the province that contributes to
reductions in carbon dioxide emission is necessary and possible and would be based
on encouraging people to switch from private vehicles to public transport, to walking
and cycling. It would encourage the use of vehicles that use low-carbon fuels, and
would promote the transportation of goods by rail rather than by road.
To obtain a sustainable household sector, Gauteng would aim for safe, healthy,
affordable, reliable and accessible energy for all its citizens. By investing in
renewable and alternative energy projects and improving energy efficiency, the
province will be moving towards this goal. At the same time it would be engaging in
job creation projects which will go some way towards alleviating poverty.
Gauteng is the economic hub of South Africa. Many significant industries and
business sector bodies are situated in the province. The strategy provides the
3
    For further detail refer to the technology assessment and status quo reports.




                                                January 2010       page 3
                                  GAUTENG INTEGRATED ENERGY STRATEGY



province with the opportunity to promote economic development and competitiveness
of its industries through the establishment of a low-carbon economy and ensure
sufficient energy supply to support sustainable development and cleaner production.
Put differently, this will open huge opportunities for the province to obtain heat and
power by deploying urban renewable energy across the province and purchasing
green power generated outside the province. The above is consistent with the latest
NIRP (National Integrated Resource Planning – NIRP3 is still in draft format) which
places significant emphasis on, inter alia, energy efficiency and renewable energy,
although these recommendations have not yet been formally accepted by the
National Energy Regulator of South Africa.
Energy efficiency and renewable energy offer considerable scope for enhancing the
profitability of business and contributing to economic development. As the demand
for renewable energy increases, potentially significant opportunities for business and
employment will open. This includes an opportunity for Gauteng to develop a
financing mechanism for renewable energy as well as the formulation of water
heating legislation. In addition, the formulation of the Gauteng Integrated Energy
Strategy presents the province with the opportunity to maximise the province’s
contribution to achieving the national target of cumulative energy delivered by the
end of 2013 to meet South Africa’s renewable energy target. The target of 10.000
GWh, set in the 2003 White Paper on Renewable Energy, is being revisited following
the Renewable Energy Summit of March 2009 where the Minister of the former DME
made clear that targets needed to be made bolder and that both policy and
frameworks should be consistent with government’s response to the Long Term
Mitigation Scenarios (LTMS).
National government departments are situated within the province, making co-
operation and collaboration easier. There are many tertiary institutions and other
leading research institutions such as SANERI 4 and NGOs such as WWF that reside
in Gauteng and this too paves the way for collaboration. Finally and of key
significance is the fact that there is a willing leadership – the fact that the province
has called for an integrated strategy will assist in its acceptance and implementation.


1.3 Challenges

Whereas the formulation of the Gauteng Integrated Energy Strategy presents many
opportunities for Gauteng, the province also faces a number of challenges. One
major challenge facing Gauteng province is the limited mandate that provinces have
around energy and the fact that they are reliant on national developments in terms of
formulating and implementing strategies and frameworks. This means that the
strategy needs to be cognisant of these difficulties in assisting the province in
implementation.
Larger municipalities seem to be able to make headway with implementing energy-
related initiatives. It is important that the strategy takes on the challenge to capacitate
particularly the smaller municipalities. Municipalities in general are dependent on
income from electricity sales for their cash flows and to assist them in subsidising
various activities within their jurisdictions. It is important for the strategy to be aware
of this and of the dependency of municipalities on electricity sales for their income.
The Gauteng Strategy for Sustainable Development State of Play Report 5 states that
Gauteng province is heavily reliant on non-renewable resources for energy
4
    SANERI will become SANEDI from 2010.

5
    Gauteng Provincial Government, 2006, page 1




                                            January 2010   page 4
                         GAUTENG INTEGRATED ENERGY STRATEGY



production and lacks viable energy alternatives. This presents a challenge in terms of
promotion and investment in renewable energy when there is an abundance of, for
example, cheap coal. Unless this challenge is properly addressed in the strategy, all
fuel-switching attempts from coal to cleaner forms of energy will be compromised. In
effect, a just transition to sustainable energy is a long-term project in which the
electricity sector, so essential to commercial activity, yet significantly undervalued,
must play a leading role. While “business as usual”, that is, more reliant on coal, may
be the easiest option for meeting growing electricity demand, it is not the cheapest
when counting the longer-term health, social and environmental costs. If the strategy
is to succeed in weaning the province off its heavy reliance on coal, major
improvements in efficiency in both coal use and electricity use, coupled with a
massive deployment of renewable energy technologies, will need to be included.
Thus this strategy is challenged to push boundaries in order to arrive at substantial
and significant changes on the road ahead.
Gauteng province is faced with deepening poverty exacerbated by high
unemployment and inequality and a growing informal sector, leaving the province
with substantial service delivery backlogs in housing and electrification. This is a
huge challenge in terms of the strategy being able to achieve some of its goals
related to energy poverty. Furthermore, access to energy is closely related to quality
of life. The poor typically spend a greater fraction of their income on indispensable
energy services, such as cooking, than mid to high income households. At the same
time, they frequently forgo (or compromise severely on) services such as lighting and
space heating that require energy carriers (e.g., electricity) and devices (e.g.,
compact fluorescent lights) to which they either don’t have access, or whose first
costs tend to be unaffordable. In general, the poor expend more time and effort to
obtain energy services that tend to be of lower quality than the energy services
available to mid to high income households. This is an important consideration for
this energy strategy.
Finally, there is a paucity of energy data and this will impact on the strategy, both
directly and indirectly, in terms of justifying targets and monitoring the effectiveness
of the strategy once implemented. It is critical that this is addressed in making the
strategy meaningful in terms of measuring the impact of the interventions.




                                  January 2010   page 5
                         GAUTENG INTEGRATED ENERGY STRATEGY




2. An Energy Vision for Gauteng
The proposed energy vision for Gauteng is:

          A Gauteng province that is powered by a low carbon economy
          with a significant share of national “green jobs”, and accessible
          and affordable energy services that do not impact on the health of
          people or the environment.


2.1 The Future of Energy in Gauteng

Gauteng province has taken a bold step to develop and implement an integrated
energy strategy and implementation plan. If the objectives of the strategy are
implemented, Gauteng will look very different in the future – it will have chosen a
markedly different development path that ensures energy for all in an equitable and
environmentally sound way.
In 2055 it is envisaged that Gauteng will be powered by a low carbon economy with a
significant share of national “green jobs”, where citizens have accessible, affordable,
safe and efficient energy services and integrated public transport that do not impact
on the health of people or the environment.
It will be a province recognised as a hub of innovation, focused on clean energy
technology, and having superior “green” building stock in the private and public
sectors, a large take-up of energy efficiency appliance use and a visible shift toward
lesser polluting transport technologies, fuels and vehicles.
It will be a province where energy companies provide effective energy services to the
various communities across the province, based on the specific needs in the various
areas. It will be a province where one will see a solar water heater on every roof. The
residents of Gauteng will also feel the marked reduction in fuel poverty, pollution,
respiratory illnesses and safety threats through the use of cleaner, safer domestic
fuels.
Gauteng’s generation mix will have a significant share of renewable energy sources,
and an energy system that supports decentralised energy generation and micro
generation.
The market, governance and institutional structures in the province will have
developed to include:
         effective leadership and co-ordination of the integrated energy policy and
         programme across the province and between the spheres of government;
         fiscal reform initiatives, aligned with the national Treasury Environmental
         Fiscal Reform process, examining new means of financing clean energy
         initiatives and removing market barriers;
         a series of new policy and practice guidelines at both local and provincial
         government level, prioritising energy productivity in buildings (residential and
         commercial), vehicles and industrial settings; and
         effective partnerships in development, education and communication strategy
         implementation with all key role-players in the provincial energy system,
         ensuring the Integrated Energy Strategy is implemented and the targets are
         continuously achieved and measured;
         good data collection and effective monitoring systems in place.
Gauteng’s sustainable energy future will ensure a competitive advantage for
Gauteng, contributing to the achievement of the goals of Global City Region and the


                                  January 2010   page 6
                        GAUTENG INTEGRATED ENERGY STRATEGY



economic growth imperatives.
In summary: In 2055, Gauteng will have a modern energy system that is highly
efficient and where fossil fuel use and fuel poverty are markedly reduced. The total
energy consumption will have been reduced by in the order of 18% from “business as
usual” projections, clean and renewable energy will contribute 47% of the energy
mix, and emission reductions of 49% will have been achieved relative to 2007
figures. Provincial and local authorities will have an understanding of the impacts of
their energy use patterns and will play a leading role in implementing the energy
strategy across the province.




                                 January 2010   page 7
                                           GAUTENG INTEGRATED ENERGY STRATEGY




2.2 Proposed Energy Targets

Gauteng has strong energy targets marked for years 2014, 2025 and 2055 from a
baseline year of 2007. These targets were developed using the LEAP scenarios
modelling (see the attached report: Assessment of Energy Efficiency and Renewable
Energy Potential in the Gauteng Province and Associated Long Term Energy
Planning Implications).      The existing national targets, which are surpassed
substantially in this strategy, were set in a very different context of low electricity
prices, a fledgling carbon market and poor regulatory framework for renewable
energy. South Africa has since then put in place a process to create a much more
conducive environment for energy efficiency and for renewable energy.

The current situation therefore, demands more stringent targets. This becomes
apparent when looking at the requirements of the LTMS, which the government has
endorsed at the highest level, where it is clear that current growth paths, and even
successful implementation of all current policies and strategies, still fall far short of
taking us to the level of carbon reduction required as illustrated below. The far-
reaching consequences of striving for the LTMS (required by science development
path) cannot be overemphasised, and this, along with poverty alleviation, is arguably
one of the most daunting challenges faced by the province and the country. Yet we
have no option in these matters if we are to maintain any level of prosperity into the
future, and this strategy rises to that challenge. Bold targets are a necessary part of
this, alongside strong action and firm leadership.


                                   1,800

                                   1,600

                                   1,400
                                                Growth without Constraints
             Mt CO 2 -equivalent




                                   1,200

                                   1,000

                                    800
                                                                       Current Development GAP
                                                                                        THE
                                                                       Plans
                                    600

                                    400

                                    200                           Required by Science
                                    -
                                           06



                                           12




                                           24

                                           27

                                           30

                                           33



                                           39



                                           45
                                           15

                                           18

                                           21




                                           36



                                           42



                                           48
                                           03



                                           09
                                        20



                                        20




                                        20

                                        20

                                        20

                                        20



                                        20



                                        20
                                        20

                                        20

                                        20




                                        20



                                        20



                                        20
                                    20



                                        20




             Figure:2 The carbon impact of the current national development path
          compared with the necessary reductions as specified by the LTMS (required
                                        by science)

Details of how to realise the targets are set out in chapter four - Vision to Action. A
comprehensive implementation action plan was developed through a stakeholder
consultation processes. As noted above the vision for Gauteng Province in 2055
demands substantial changes and challenges in order to reach that vision.




                                                   January 2010     page 8
                                       GAUTENG INTEGRATED ENERGY STRATEGY




2.2.1 Interim Provincial Minimum Targets

    Action                                                           2014                  2025                2055
Overall provincial energy efficiency against business
                                                                         6                                    7
as usual scenario – Electricity                                     7%                     15%

             Electricity and other fuels                            8%                     18%

             Transport energy efficiency                            7%                     15%

             Residential energy efficiency – Electricity            13%                   37%

                                                   Other 8          8%                     17%

             Industry energy efficiency – Electricity 9             10%                    15%

                                                   Other 10         8%                     15%

             Commercial energy efficiency – Electricity             13%                   25%

             Government energy efficiency – Electricity             13%                    25%

Renewable energy consumption
(electricity only) 11                                               7%                     16%                47%

Carbon dioxide emissions reduction (against
                            12
business as usual scenario)                                         13%                    27%                49%

Carbon dioxide emissions reduction required to meet
LTMS                                                13%                                    27%                73%

Renewable energy generation required to achieve
LTMS carbon reductions                                              7%                     16%                83%

Electrification targets (proclaimed stands)                         100%

Efficient water heaters installations: Mid-hi income                20%                    95%

             Low income (solar water heaters)                       20%                    50%                80%

Free Basic Alternative Energy Access in informal
households                                                          20%                    80%




6
    Initial overall efficiency target is relatively low because of increased electricity use from greater use of trains in the
transporting of people and goods.
7
    2055 targets are not calculated as all energy efficiency interventions will have been implemented by 2025.
8
    Residential non-electrical target (mostly coal) is based on possible coal savings of 20% from efficient burners (as
with basa njengo magogo).
9
    Industrial electrical energy target is in-line with Energy Intensive User Group estimate of 8 to 10% efficiency
potential in the short-term.
10
     Industrial non-electrical (mainly coal) energy efficiency is based on Energy Efficiency Baseline Study (Department
of Minerals and Energy, 2002) where thermal efficiency improvements for different sectors are analysed (typically
range between 10 and 20% within 5 years depending on the sector).
11
     The renewable energy targets are based on the LEAP modelling exercise and take into account the rollout potential
given lead-in timeframes for different renewable energy technologies.
12
     Carbon targets are derived using LEAP from the efficiency and renewable energy targets.



                                                   January 2010        page 9
                          GAUTENG INTEGRATED ENERGY STRATEGY



Notes:
         (Note: all targets in the document are MINIMUM targets, and are from a
         ‘business as usual’ baseline in other words the current development path as
         identified by the LTMS)
         Targets are compared with the BAU (business as usual) figures - for example
         22% efficiency in 2014 means 22% less energy consumed than the business
         as usual projection for 2014. This approach is consistent with the setting of
         most national targets. However, in order to monitor how successful the
         strategy is in achieving these targets it is necessary to benchmark the figures.
         See appendix 1 showing targets against actual figures for 2007.
         Electricity targets are derived from the Energy Efficiency Spreadsheet Tool
         analysis of the Gauteng electricity profile contained in the attached document
         ‘Assessment of Energy Efficiency and Renewable Energy Potential in the
         Gauteng Province and Associated Long Term Energy Planning Implications’.
         Aggregated targets (overall energy efficiency, carbon reduction etc) are
         derived from LEAP modelling exercise. See attached document ‘Assessment
         of Energy Efficiency and Renewable Energy Potential in the Gauteng
         Province and Associated Long Term Energy Planning Implications’ for a
         description of the modelling process and assumptions used.




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                               GAUTENG INTEGRATED ENERGY STRATEGY




2.2.2 Current National Targets (for a breakdown of
current metro targets see appendix 6.2)

Action                                                Target          Year   Source
A national target for energy efficiency              12%              2015   Energy Efficiency
improvement                                                                  Strategy of the Republic
                                                                             of South Africa,
Transport Final Energy Demand Reduction              9%               2015   Department of Minerals
                                                                             and Energy, March 2005
Residential Sector Final Energy Demand               10%              2015
Reduction

Industry and Mining Final Energy Demand              15%              2015
Reduction

Commercial and Public Building Sector Final          15%              2015
Energy Demand Reduction

Power Generation – an interim target of              15%              2015
reduction in “parasitic” electrical usage

Renewable energy target: 10 000 GWh (0,8             4%               2013   White Paper on
Mtoe) renewable energy contribution to final                                 Renewable Energy
energy consumption. Quoting from the DME                                     Policy, November 2003
this is equivalent to replacing two (2x 660 MW)
units of Eskom’s combined coal-fired power
stations or 1100 million litres of diesel (14% of
one year) replaced with biodiesel

Electrification targets (universal access)           100%             2012   DME UAP and Thabo
                                                                             Mbeki, 2004

Carbon dioxide emissions reduction as per the        between          2050   Long-Term Mitigation
“Required by Science” scenario                       30% & 40%               Scenarios, DEAT,
                                                     less than               October 2007
                                                     2003 levels




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                       GAUTENG INTEGRATED ENERGY STRATEGY




2.3 Direction, Principles and Approach

      The Gauteng Integrated Energy Strategy takes its lead from the
      national White Paper on Energy Policy (1998) as well as from
      recognised international and national cutting-edge approaches to
      energy, particularly the LTMS.
      It is premised on the concept that people create change and
      therefore people as change agents are key to delivering on the
      strategy.
      An integrated approach to energy planning is advocated –
      promoting a secure range of energy generation and management
      options, including demand- and supply-side options. The strategy
      will promote a mix of energy efficiency and conservation measures
      as well as the promotion of progressive generation mix options.
      The role of province is to facilitate the co-ordination of energy
      supply and use and ensure the implementation of national policy at
      the local level. According to current legislation, province has
      particular roles and responsibilities which will enable it to play a
      facilitating role in terms of the strategy. But to give real effect to the
      implementation of the GIES, areas must be identified where the
      province can use its competency to do more, for e.g. an
      asymmetrical agreement with national government. It is
      acknowledged that province does not have a competency in
      energy per se, but it can influence the actions being undertaken.
      The province must therefore ensure that sufficient efforts are being
      explored to maximise what can be done by provincial government.
      Perhaps provinces should consider challenging and changing
      legislation to give them more power in terms of energy.
      Gauteng province through DLG & H will provide leadership and be
      the driver, promoter and co-ordinator of the energy strategy. A
      strong principle of the strategy is that the province should lead by
      example and implement its own programme to green its
      operations.




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                        GAUTENG INTEGRATED ENERGY STRATEGY




2.4 Vision to Action

The strategy consists of ten enablers which are fundamental to transforming the
vision into action. Each one is important in its own right, but implementation of all
elements is key to successfully transforming the vision into action which ultimately
puts Gauteng in line with national goals of moving towards a low-carbon economy
and the scaling up of renewable energies and energy efficiency. The strategy is
premised on the following key goals:
        Province to provide the leadership and institutional framework required to
        drive the strategy forward.
        Implement strong energy efficient measures.
        Pave the way to develop and grow renewable and alternative energy options.
        Support the move towards a low carbon economy.
        Prioritise energy security and access to safe, clean and affordable energy.
        Develop and grow the alternative and energy efficiency industry as a critical
        aspect of Gauteng’s economy.
Outlined below are the primary components of each element of the strategy. For
details refer to Chapter 4.




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                         GAUTENG INTEGRATED ENERGY STRATEGY




1. Strategic Leadership

Intention Statement
To demonstrate leadership that promotes sound energy decisions and action

Objective
Provide co-ordination, alignment and leadership on energy matters


2. Financial Mechanisms

Intention Statement
To have the financial support to implement the energy strategy

Objectives
Develop a funding plan to support the roll-out of the strategy
Implement a framework for longer-term financial support for provincial and municipal
government energy projects


3. Local Government, Regulation And Market Support

Intention Statement
Ensure that regulation and market support enable the sustained implementation of the
strategy

Objectives
Support local governments to develop and enforce policies and regulations that promote
renewable energy and energy efficiency
Support provincial departments to develop regulations, guidelines and policies that
promote good sustainable energy practices




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                           GAUTENG INTEGRATED ENERGY STRATEGY




4. Promoting Innovation And Clean Energy Technologies

Intention Statement
To promote the development of technologies that facilitates the move to a new energy
future

Objectives
Build strong relationships and networks with research institutes, academia and potential
funders
Set agenda according to province’s needs to guide research development
Develop a supportive environment for new business development in the clean energy
technology sector
Build awareness


5. Using Energy More Efficiently

Intention Statement
To have an energy-efficient province

Objectives
Develop an energy-efficient transport sector
Government operations and buildings to be energy efficient
Households to be energy efficient
Industry and commerce to be energy efficient


6. Sustainable Energy Supply

Intention Statement
To ensure that the energy supply mix in Gauteng is optimised in terms of economic,
social and environmental sustainability, and to foster an enabling environment for this to
happen

Objectives
Determine and promote the most economically, socially and environmentally sustainable
supply mix
Ensure that Gauteng takes responsibility for its global warming impact in line with
national and international imperatives
Work towards security of supply




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                            GAUTENG INTEGRATED ENERGY STRATEGY




7. Transport

Intention Statement
Gauteng has a transport system that is based on principles of efficiency, equity and
sustainability

Objectives
Build and increase current public transport developments
Promote infrastructure management
Promote more efficient spatial planning
Promote modal shifts in transport use
Develop financial incentives
Promote transport technologies
Build awareness



8. Affordability and wellbeing

Intention Statement
Citizens of Gauteng meet their energy services needs

Objectives
Develop energy efficient houses
Provide greater access to a range of safer energy options and reduce health and safety
dangers associated with current fuel use patterns
Raise awareness on options available



9. Empowering Consumers to Reach the Vision

Intention statement
Empowering citizens to reach the vision through knowledge

Objectives
To develop citizens that become agents of change in all aspects of energy efficiency
Supporting government departments to lead by example



10. Institutional Support

Intention Statement
To create a centre or Energy Office from where all energy matters and actions will be
managed within Gauteng Province.

Objective
Drive the strategy through firmly institutionalising energy within provincial government and
building effective partnerships with all spheres of government and other key stakeholders



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                        GAUTENG INTEGRATED ENERGY STRATEGY




2.5 Policy Implications into the future

The strategy has major policy implications for Gauteng Province. Some of the key
implications include:
        Advocating maximizing the use of local energy resources such as landfill gas,
       efficient water heating and solar energy.
        Shifting to a low carbon economy will affect the kinds of industries that
       emerge into the future given that Gauteng is the economic hub of the country,
       and will require a carefully thought through growth path which identifies and
       exploits opportunities in such a low-carbon trajectory. Current industries will
       also need to further adapt and look at their carbon footprint. See Section 3.3
       for more information on the implications of moving to a low carbon economy.
        Moving towards an integrated approach to energy planning.
        Provincial commitments to RE and EE targets.
        The implications of the above for job creation generally within the province.
        Using the development of the renewable energy industry as an employment
       creation opportunity, and as a means of developing local industry and SMMEs
       - all of which will impact on poverty.
        Mass roll out of skills enhancement and capacity building within province
       which will require both policy and operational changes in order to implement.
        Province leading by example has implications in terms of implementation both
       at provincial and municipal levels from a policy and financial perspective and
       will require both structural and procurement changes.




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                         GAUTENG INTEGRATED ENERGY STRATEGY




3. Direction, Principles and Approach
3.1 Principles

The Gauteng Integrated Energy Strategy takes its lead from the National White
Paper on Energy Policy (1998) as well as from recognised international and national
cutting-edge approaches to energy. Premised on this the following principles,
concepts and approaches guide how Gauteng province will move from vision to
action as well as guide the prioritisation of intended actions.
Energy is a cross-cutting issue. Energy is critical for our survival and cuts across
all sectors and areas of our life. Every decision made usually has an energy
dimension, impact or influence. This means that all departments within Gauteng
province, all spheres of government and all stakeholders need to have an input in
developing the integrated strategy as the province moves from vision to action, and
all will have a role to play in delivering on the targets and on the strategy as a whole.
The province therefore will need to work with all stakeholders to build the plan.
The Gauteng Integrated Energy Strategy is also premised on the concept that people
create change and therefore people as change agents are key to delivering on the
strategy. This has implications in terms of building awareness and capacity as much
of what is advocated demands a paradigm shift in behaviour and thinking.
Energy is a double-edged sword. It is essential for development but can be
destructive if the fuel choices and means of production are not considered carefully.
Fuels such as coal, nuclear energy, paraffin and petroleum have large environmental
footprints and health impacts.
There are potentially a number of additional developmental benefits if we choose
a better energy path. In South Africa, the poor use a mix of fuels, including
hazardous fuels such as paraffin and coal, and the energy system is centralised and
fossil fuel dependent. Better health, cleaner air, local ownership and job creation are
possible if the Gauteng energy plan prioritises renewable energy technologies. In the
US, for example, their New Green Deal stimulus package intends to create 2 million
jobs by investing in four energy efficiency and renewable energy strategies:
         retrofitting buildings to improve energy efficiency;
         expanding mass transit and freight rail;
         constructing a “smart” electrical grid transmission system; and
         supporting the development of renewable energy i.e. wind power, solar
         power, next-generation biofuels and other bio-based energy.
In Gauteng these actions are also possible and could bolster the provincial mandate
around facilitating (as opposed to provision of) a more sustainable and integrated
energy system, one that is based on the principle of equity. In addition to the moral
obligation to ensure a healthy environment for future generations, the energy strategy
will be based on dealing with the development challenges of today, including job
creation and poverty alleviation. Sustainable energy is part of that solution.
Currently energy consumption, rather than the level of energy services, is seen as
the indicator of development. By taking energy consumption as the measure of
development, energy planners are often simply concerned with increasing fuel and
electricity supplies based on existing patterns of energy use, rather than with
identifying and sustaining the level of energy services that would be required to
satisfy basic human needs. Energy is an essential input for the fulfilment of all basic
needs. From the standpoint of sustainable human development, therefore, what is
urgently needed is a reorientation of ideas about energy to focus on the manner in


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                          GAUTENG INTEGRATED ENERGY STRATEGY



which it is currently utilised, its potential for improving people’s quality of life, and
ways to increase access to its services for the poor. From the standpoint of the end
user, what matters most about energy is the level of service it provides, rather than
the amount of primary energy that goes into delivering the service. Since conserving
a kilowatt-hour (kWh) of electricity or fuel is generally cheaper than producing an
additional kWh (e.g. in a power station), the most cost-effective ways to deliver
energy services often involve improving the efficiency of energy conversions to final
energy of end-use devices. It has been estimated that a modest increase in per
capita primary energy is sufficient for developing countries to provide energy services
equivalent to those enjoyed in Western Europe in the mid-1970s.
An integrated and sustainable energy system encompasses more than energy
efficiency and conservation. These systems are diverse, flexible, self-reliant and
renewable, and such planning requires careful development, nurturing,
implementation and review. It involves strong support from the community and
partners at all levels.

The South African White Paper on Energy Policy (1998) says:
 To cope with multiple causal linkages, energy policy analysis usually commences
 with the demand side by means of the process entitled ‘integrated energy
 planning’. This recognises that energy is not an end-good but is rather consumed
 as a means to an end. Policy must facilitate optimal energy consumption and
 production to meet social needs. This requires consumer choice and the
 operation of market forces.
This strategy is guided by this statement.
Section 3.2.2.2 of the Energy Policy White Paper on improving energy governance
also says:
  Co-ordination between government departments, government policies, and the
  various spheres of government will be improved in order to achieve greater
  integration in energy policy formulation and implementation.
The Gauteng Integrated Energy Strategy is therefore a step towards this objective
and the strategy will attempt to align with national and local energy strategies. A
number of cities have initiated sustainable energy interventions and plans, and
national government has a suite of policies supporting a move to a more sustainable
energy path. These activities are acknowledged and will be built on.
Although provinces have a limited direct mandate around energy they do have a
clear role to facilitate the implementation of national policies at the local level. This is
of critical importance given that many local authorities have little knowledge and no
resources to develop and implement plans which address climate change, energy
security and energy access by the poor, amongst others. Provincial support and
coordination is a key enabler here. Provinces also have clear environmental,
planning and transport mandates – all of which have major and direct energy
implications. The role of provinces in moving to a sustainable energy future is
therefore important – hence the development of this strategy - although often the
implementation of measures will be effected by local authorities. The Gauteng
Integrated Energy Strategy is guided by this and the expressed need for co-
ordination around energy. The 1998 White Paper on Energy Policy says in section
8.10.1.6 on provinces and local authorities that –
  The other two spheres of government have a limited role in energy governance.
  They are, however, responsible for economic and physical planning and, as such,
  are concerned with the supply and use of energy.




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                          GAUTENG INTEGRATED ENERGY STRATEGY



In addition, the White Paper on Energy Policy also says in section 8.10.3 on the co-
ordination and communication with provincial and local government that –
  There is clearly a need for improved communication and co-ordination between
  national, provincial and local government. For instance, the implementation of
  energy policies should be better integrated with provincial and local economic and
  physical planning activities. The Department of Minerals and Energy will seek to
  create mechanisms to improve communication on energy policies and the co-
  ordination of their implementation with provincial and local government.
  Implementation of this policy could entail the establishment of provincial energy
  committees in which the Department of Minerals and Energy might participate on
  an ad hoc basis. The department could also facilitate communications between
  the chairs of these committees. The department may also investigate the
  feasibility of establishing energy advisory functions within its regional offices to
  assist with and participate in provincial and local planning activities.
To enable province to play an appropriate role in delivering on the energy strategy, it
will have to adjust institutionally. The institutional form will follow the confirmed role
and function. Getting the structure right and defining and clarifying the roles of the
province, municipalities and other stakeholders is important. It is clear that a driver
and co-ordinator is needed and it is the intention of the province to create an energy
centre or office from which energy issues and actions will be managed within
provincial government and within Gauteng Province as a whole.
The Long-Term Mitigation Scenarios (LTMS) signed off by Cabinet in 2008 provides
the direction for climate interventions in the country. The National Climate Change
Summit in March 2009 formally launched the process for developing a National
Climate Change Response Policy. The draft document and the Summit have both
reinforced the decision to follow the LTMS recommendations.
In line with these decisions at a national level, this energy strategy will implement the
LTMS intentions at provincial level. The LTMS framed future scenarios for growth
paths and their carbon implications - three of which were: ‘Required by science’ (if
full-scale mitigation was undertaken by South Africa), ‘Growth without constraints’ (if
South Africa did not mitigate its emissions before 2050) and ‘Business as usual’ or
‘Current development plans’ scenario (which includes government’s Energy
Efficiency Strategy to achieve a final energy demand reduction of 12% by 2015 and
the current target of 10 000 GWh renewable energy contribution to final energy
consumption by 2013).
The LTMS notes that the composition of the economy has played a major role in our
high emissions and in our competitiveness, and that the most difficult but most
fundamental approach to mitigation would be to shift South Africa’s economy away
from its energy-intensive path.
The LTMS report on page 27 succinctly puts it as follows:
  Growing without carbon constraints may be good for South Africa’s economic
  growth, but it will result in rapidly increasing emissions. A four-fold increase in
  emissions by 2050 is likely to be unacceptable to the international community. It
  is also a high-risk approach on other grounds, such as rising oil prices, carbon
  constraints in trade, and advancing impacts. If all countries, including high
  emitters in the developing world, adopted a Growth without Constraints approach,
  climate change impacts in South Africa would be extensive. A massive effort
  would be needed by South Africa to achieve emissions reduction sufficient to
  meet the Required by Science target. The gap between where South Africa’s
  emissions are going and where they need to go is large (1300 Mt CO2-eq, more
  than three times South Africa’s annual emissions of 446 Mt in 2003).
The LTMS defines the policy options as:



                                  January 2010   page 20
                         GAUTENG INTEGRATED ENERGY STRATEGY



        greenhouse gas emission (GHG) reduction and limits – a transition towards a
        low carbon economy,
        building on strengthening and scaling up current initiatives – increase energy
        efficiency, demand side management initiatives and transport modal shifts,
        implementing a ‘business unusual’ call for action – grow the renewable
        energy sector,
        preparing for the future – through research and development,
        people oriented measures – changing social behaviour, alignment, co-
        ordination, co-operation,
        implementation.
The ten enablers in the strategy incorporate all of these policy options and thus the
GIES is developed along the main principles of the LTMS. It is a holistic strategy that
will attempt to implement some of the key recommendations of LTMS and thus
should be read in conjunction with this important document and like the LTMS aims
to create a sustainable energy sector, reducing GHG emissions, building a low
carbon economy and responding to poverty and inequality whilst maintaining
economic growth.




                                 January 2010   page 21
                                    GAUTENG INTEGRATED ENERGY STRATEGY




3.2 An Integrated Approach to Energy Planning

There is no doubt that the challenges in electricity supply in recent years have been a
significant cost to all in the province. Energy security is thus a priority. In addition to
creating “nega-watts” 13 through energy efficiency and energy conservation,
promoting sustainable sources of energy supply is important.
Traditionally, energy planning has followed a short- to medium-term least cost
approach, which often fails to take into consideration issues of sustainability, social
development and environmental protection.
Fossil fuel and energy-intensive consumption patterns are entrenched in the energy
policies and programmes of many developing countries and South Africa is no
exception. Energy planning processes are dominated by a supply-oriented paradigm
that links GDP growth directly with energy use.
Cross-country experience has shown, however, that national energy demand is
proportional to GDP if and only if the structure of the economy and the energy
intensities are constant. International examples show us that it is possible to de-
couple energy and GDP growth. In other words the economy continues to grow with
a decline in energy growth so that the two are not interlinked. In South Africa, due to
its high energy intensity, there are significant opportunities for energy efficiency and it
is conceivable that we could “leapfrog” to points of low energy intensity. Expenditure
on increasing energy supply represents a major economic cost to all countries. In the
developing world, the financial and opportunity cost of capital, foreign exchange
constraints, and the cost of energy subsidies combine to create severe economic
constraints to supply-driven models for expanding energy.
The LTMS results suggest that energy efficiency and a cleaner fuel mix are
significant mitigation actions, but in the long run, the challenge is to consider the
energy intensity of our economy structurally. On page 26 the LTMS report states:
   Considering this path would mean that instead of investing in energy-intensive
   sectors, which were at the heart of our economy over the twentieth century, South
   Africa would move towards a low-carbon economy. Industrial policy would then
   favour those sectors that use less energy per unit of economic output. A transition
   to a low-carbon economy in South Africa might involve shifting incentives –
   removing incentives for attracting energy-intensive investments and using the
   resources freed up to promote lower-carbon industries.
In addition, a widely-held belief among policy-makers is that the only energy carriers
of significance are coal, petroleum-derived liquid fuels, natural gas for industry and
transport, and electricity for almost all other services. Linked with this is the often-
mistaken idea that the investment costs of harnessing energy from renewable
sources would be much higher than from fossil fuels. In fact recent modelling
exercises have shown that in the long term costs of developing renewable energy
options are cheaper than fossil fuel based options.
Within this context, the Gauteng Integrated Energy Strategy has adopted an
integrated energy approach that attempts to address these disparities and which is
proving itself in a number of countries. This includes a portfolio-based approach, a
drive towards energy efficiency whilst at the same time taking into consideration
environmental, economic and social costs as well as concentrating on energy
security. A portfolio-based approach focuses on securing a range of energy
generation and management options, including demand- and supply-side options. It
13
     In other words reducing the need for generation capacity by mega watts - the term ‘nega-watts’ is thus synonymous
with energy efficiency




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                        GAUTENG INTEGRATED ENERGY STRATEGY



promotes the diversification of the energy supply mix, including sustainable and clean
energy sources.
So within the limited mandate of the province and in its role as driver, co-
ordinator and promoter, the energy plan will be a mix of energy efficiency and
conservation measures as well as the promotion, through considered
instruments, of a progressive generation mix that sees the conventional
reliance on limited generation options being replaced by a broader portfolio of
energy options.
A strong principle of the strategy is that the province should lead by example and
implement its own programme to green its operations.
In addition it makes use of targets as markers on this new energy path. The use of
targets in plans, programmes and projects is widespread and is a succinct way of
communicating intentions as well as measuring performance. However, the strategy
is aware that many of the targets are bold. Whilst they clearly do not bring Gauteng
in line with the LTMS’s required by science option, they do enable a substantial move
in that direction. In setting the targets and in reviewing the strategy on an annual
basis (which is advocated) it will be important to ensure that the targets are
achievable as well as challenging over time.
The strategy is based on the premise that the energy sector is a huge area to tackle
and that a just transition to a new energy path is recommended. As the LTMS report
states:
  A low-carbon economy will not emerge overnight. Energy-intensive industries will
  continue to exist, and a comprehensive strategy would have to include transition
  for these sectors and their labour forces. Policies to assist energy-intensive
  industry would include promoting higher value-added sectors, as well as
  ambitious energy efficiency targets (since the potential for energy savings are
  greater here). More proactively, the transition would define new areas of
  advantage in climate-friendly technology [...] South Africa could deliberately seek
  to build new competitive advantage in climate-friendly technologies, such as solar
  thermal electricity [...] The aim would be to become a market leader, with
  government providing supporting measures.




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                                  GAUTENG INTEGRATED ENERGY STRATEGY




3.3 Policy Implications into the future

The Gauteng Integrated Energy Strategy is advocating:
         a shift towards a low carbon economy where emissions peak and plateau by
         2030.
         prioritising energy security which means adopting a mix of energy options
         including current and new generation options.
         scaling up of energy efficiency measures.
         a substantial growth in renewable energy options.
         improving access to safe and affordable energy for the poor.
Transforming to a low carbon economy will take time, and in order for province to
ensure energy security this strategy is advocating an appropriate, cost-effective but
more diversified energy mix whereby energy is generated from a number of sources
and places which will include fossil fuel energy as well as renewable energy, and
strong efficiency drives. The speed at which new technologies are introduced is to
some extent determined by the targets and financial constraints.
Institutionally the strategy is advocating for an energy office which will coordinate the
implementation within the province in order to achieve coordination and alignment
across provincial and municipal departments. Because energy is cross cutting in
nature and because of its relationship to climate change, at an implementation level it
is best held centrally to avoid duplication and operating at cross purposes.
Of particular significance is the move to a low carbon economy. Gauteng is the
economic hub of the country contributing hugely to the national GDP whilst at the
same time accounting for approximately one third of the country’s energy
consumption and carbon emissions 14 - this is because historically our industries have
been highly energy intensive and highly fossil fuel based. Thus what are the
implications from a policy perspective for the province to build an economy where
energy consumption is decoupled from economic growth and where there is a move
away from energy intensive industries? What are the economic implications for a low
carbon development path? This has implications both in terms of how industries
conduct their business thus continuing a drive for efficiency and carbon reduction but
it might also have implications in terms of the kinds of industries that are developed
and promoted into the future. In particular with regard to developing a renewable
energy industry.
It is clear that Provincial Government will need to further research and understand
these implications in order to direct policy into the future. However, many strategies
and policies currently in place are aligned to some extent with such a move. For
example the Growth and Development Strategy for Gauteng Province (2005) intends
to “build provincial unity and responsibility amongst all sectors of society towards
reducing poverty and unemployment, creating jobs and ensuring socio-economic
transformation of the Province.” The Global City Region Strategy aims for Gauteng
to be a globally competitive region and the Gauteng Strategy for Sustainable
Development talks about reducing the use of non-renewable based energy sources.
Gauteng Province is ideally situated to become the solar water heater hub of the
country as well as developing new energy technologies. These opportunities and
other industries - it is already identified as “one of 46 global hubs of technological
innovation” 15 - can lead the way for the province to move towards a low carbon
14
     Gauteng 2034 development strategy: energy trend paper, October 2008, Sarah Ward & Jason Schaffler

15
     ibid.




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                          GAUTENG INTEGRATED ENERGY STRATEGY



economy. In addition the growth of a renewable energy industry is known to provide
employment opportunities which will have a direct influence on levels of poverty. The
development of a low carbon economy is not limited to large industries but also
involves the encouragement of locally based business and to this end the
development of SMMEs which is critical for the economy and helping in the reduction
of poverty. In other words encouraging local production rather than importing from
other provinces or indeed abroad.
In order to roll out this strategy the Province is going to need to lead by example and
in doing so develop skills and build capacity of staff in both provincial and municipal
spheres. Extensive training and capacity building will impact on successful strategy
delivery, but this will also require policy and operation changes at provincial
government level as well as within the municipalities. Furthermore in its role as
implementing national policy and providing support at the local level, province may
have to develop policies to support this role in terms of the energy strategy.
Developing clear policies will give more weight to the strategy at the local level.
This strategy is not advocating a sudden change as this could undermine the
economy, but rather looks innovatively at opportunities that both build the economy
and build sustainability from an economic, social and environmental perspective. A
case in point is the present economic downturn. Government should explore the
possibility of using under-utilised infrastructure and capacity. A specific focus should
be placed on companies that are closing down or shedding jobs. The existing
infrastructure can be used to manufacture RE technologies and workers can be re-
skilled.
Current industries can focus on energy efficiency measures for their internal
operations, but into the future they should be encouraged to look creatively at
opportunities for change in their business operations and structure which are aligned
with sustainability imperatives. Globally the trend is to move towards low carbon and
future investment will move in this direction as well – i.e. less energy intensive
industries. There is now almost total acceptance that globally we sit with an
enormous problem - that climate change is upon us and if we do not act and change
the current trajectory of green house gas emissions, the results will be catastrophic.
The ‘peak oil’ trajectory of the global economy also requires that future energy use
options and patterns are very different to current practice. It is therefore critical that
as the economic hub of the country, Gauteng is looking ahead and making significant
changes. Whilst this strategy may be challenging for the Province it will enable the
province to maintain a globally competitive position.




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4. From Vision to Action
This chapter deals explicitly with developing a strategy that transforms the vision, the
direction and principles of a future Gauteng into action. There are ten elements to
transforming the vision into action and each one is important in its own right, but
implementation of all elements is key to successfully transforming the vision into
action in this strategy which ultimately puts Gauteng in line with national goals of
moving towards a low-carbon economy and the scaling up of renewable energies
and energy efficiency. These goals were strongly reinforced at the March 2009
Climate Change Summit held in Johannesburg, which was opened by former
President Motlanthe, placing climate change high on the government’s agenda. It
was further reiterated when President Zuma outlined South Africa’s targets just prior
to the COP 15 meeting held in Copenhagen in December 2009 where South Africa
was one of 96 signatories to the Copenhagen accord.


4.1 Strategic Leadership

   Intention Statement
   To demonstrate leadership that promotes sound energy decisions
   and action
   Objective
   Provide co-ordination, alignment and leadership on energy matters

Through the Department of Local Government and Housing, the province has
developed this strategy that is based on the principles of change, transformation and
sustainability that is achievable with both short- and long-term goals. Fundamental to
such a change and to achieving the goals is the need for strong leadership and
direction. Some of the targets and changes being called for are bold and will only be
met through harnessing the will of all engaged in the process as well as creating an
environment which supports and encourages innovative thinking and action –
fundamentally what this demands is strong visionary leadership that will change the
current energy path.
This strategy has been called an integrated energy strategy largely because energy
is cross-cutting and affects all aspects of social, economic and environmental
development. It therefore follows that issues around energy do not fall neatly into the
realm of one department but rather crosses boundaries with most government
departments and structures, as well as spheres of government. It is thus crucial that
the strategy should be integrated and should encourage alignment, co-ordination and
co-operation, as outlined and advocated in the LTMS document. The adoption of
the strategy by government and all stakeholders is an important first step.
The hosting of an annual energy summit would allow the province to review the
strategy and ensure that goals and targets are achieved and continue to be
achievable into the forthcoming year. Strategic leadership demands not only the
ability to drive an agreed strategy but also an ability to see where shifts in the
strategy may need to take place over time, arising from changes happening within
the province specifically and within the South African context more generally.
Importantly the province should develop an annual State of Energy report for
Gauteng to assess areas of strength and weakness as well as provide necessary
data that might impact on future decisions taken at the annual energy summit. This
report should include information on the status of demonstration projects. These


                                 January 2010   page 26
                         GAUTENG INTEGRATED ENERGY STRATEGY



projects will be set up as soon as possible and will have a role in both kick starting
the strategy and giving impetus for future projects to be initiated.
At national level we have seen a proliferation of Acts, Bills, strategies and policies
dealing with climate change, renewable energy, energy efficiency and many other
related environmental issues. Within Gauteng province both at municipal and
provincial levels there have also been many developments in terms of frameworks,
documents and strategies dealing with the energy crisis and more generally with the
environment, climate change and economic development amongst other things.
However, it is vital that these documents, their stated targets and their
implementation are brought to a central coordinated point. A Provincial Energy
Forum or Advisory Board should be established to promote a common and
shared vision in the province. It will help eliminate duplication – across the private
and public sectors - and will help to drive goals, source funding, provide direction and
above all enable change to happen. In addition it will serve as an advisory body for
the Energy Office which will be established to drive the strategy
The strategy ultimately needs to be framed by national and provincial policies
currently in place and give guidance and direction to their implementation at
municipal level. It should provide a thread or connection for all work taking place
within the province, thus bringing cohesion and uniformity to sustainable energy and
more broadly climate change related developments and projects. In other words,
energy must be a key component of all government planning and become an intricate
part of projects, strategies and proposals. It should feature on the premier’s
coordinating council agenda.
Furthermore, it is well documented that energy matters within government institutions
are best driven by an energy champion. Within Gauteng and for the success of the
strategy, the energy champion will reside in the Department of Local
Government and Housing. This will mean that work being undertaken concerning
energy, climate change and the environment is instigated through co-operation and
partnership with executive councils, mayoral committees and sector departments,
commerce, industry, international funders, academia and civil society.
All of this requires strong leadership.


Strategic Leadership

Intention: To demonstrate leadership that promotes sound energy decisions and
action


Objective: Provide co-ordination, alignment and leadership on energy matters


Output          Action                                         Who –          Initiation
                                                               Partners /     date
                                                               Stakeholder
                                                               s

Adoption of        Consult key stakeholders for implementing   DLG & H        2010
the Strategy       strategy
                                                               Provincial
by                 Obtain agreement on relevant stakeholder
                                                               and local
government         roles in strategy implementation
                                                               government
and all            Signing of MoUs with relevant
                   municipalities regarding strategy support   Sector
stakeholders
                   and implementation                          associations
                   Hosting of an annual Energy Summit to       Business and



                                 January 2010   page 27
                         GAUTENG INTEGRATED ENERGY STRATEGY




Strategic Leadership

Intention: To demonstrate leadership that promotes sound energy decisions and
action


Objective: Provide co-ordination, alignment and leadership on energy matters

                   review and plan for the year ahead            industry

Establishment      Identify key role-players for the Energy      DLG&H          2010
of a Provincial    Forum including all spheres of government,
                                                                 Provincial
Energy Forum       civil society, industry and commerce
                                                                 and local
or Advisory        sectors
                                                                 government
Board              Develop a terms of reference defining the
                   role of the Forum, including legislative,     Sector
                   advisory, regulatory and monitoring           associations
                   functions as well as advising and guiding     Business and
                   the Energy Office (see section 4.10 for       industry
                   actions)
                   Set up the Gauteng Energy Forum

Government         Establish an Energy Office (See section       DLG & H        2010
leadership on      4.10 for actions)
                                                                 Provincial
energy in the      Ensure coordination, alignment, support
                                                                 and local
province           and participation of all key departments
                                                                 government
                   and spheres of government regarding
                   implementing the energy strategy, and         Sector
                   ensure that all role players are adequately   associations
                   informed of activities. This is to be done    Business and
                   primarily through the Energy Forum (see       industry
                   above)
                   Energy to be included in the KPAs for lead
                   department HoD and Municipal Managers
                   Ensure engagement in building capacity
                   within government departments (see
                   section 4.9 empowering citizens to reach
                   their vision) and link with Gauteng City
                   Region Academy
                   Energy champions to be appointed in each
                   department and facility. Appointees to
                   develop and coordinate an energy plan for
                   their department and facility
                   Energy to become a standing agenda item
                   on the premier’s coordinating council and
                   of all relevant municipal council meetings
                   Development of an annual State of Energy
                   Report for the Province. This report will
                   provide an overview of energy within
                   Gauteng including basic data, an update
                   status on demonstration projects and
                   information on achievements, targets met
                   and challenges




                                 January 2010   page 28
                                 GAUTENG INTEGRATED ENERGY STRATEGY




4.2 Financial Mechanisms

      Intention Statement
      To have the financial support to implement the energy strategy
      Objectives
      Develop a funding plan to support the roll-out of the strategy
      Implement a framework for longer-term financial support                       for
      provincial and municipal government energy projects

The financing of the strategy is critical in terms of enabling implementation and the
achievement of targets as almost every element of the strategy demands
financial investment. It is also important that such an investment is not seen as
contrary to the economic growth and development of the province. Many provincial
documents have focused on or included economic growth and the alleviation of
poverty as a priority for the province. There are also international documents, in
particular the Stern Review 16 , which argue that investment in renewable energy and
energy-efficient options is in fact a sound economic investment. The LTMS document
also argues for the need to invest in order to reduce the costs of the impact of non-
investment in the future.
The National Budget of 2009 is important in that it takes into consideration issues
relating to energy and climate change, and to this end provides an entry point for
province to use allocated funds. It is clear that the strategy will require a mixture of
public and private sector funding.
The expanded public works programme has money specifically being allocated to
environmental programmes around RE and EE activities and R45 million is allocated
to a new programme, Working for Energy, promoting RE and EE. Money is also
made available for increasing demand-side management projects – some going to
Eskom and some to municipalities.
In the short to medium term, the cost of the initial implementation of the strategy
must be done. A financing and funding unit must be established, perhaps in the form
of a Gauteng Energy Fund and directly linked to the energy office. The structure
could be responsible for accessing available money and lobby for further amounts so
that the strategy is adequately supported financially. A comprehensive energy
funding plan must be developed for the province.
In addition, the Energy Office, together with the proposed Gauteng Energy Fund
could consider hosting a renewable energy investor conference.




16
     The Stern Review: The Economics of Climate Change (November 2006)




                                           January 2010    page 29
                          GAUTENG INTEGRATED ENERGY STRATEGY




Financial Mechanisms

Intention Statement: To have the financial support to implement the energy strategy


Objective: Develop a funding plan to support the roll-out of the strategy


Output           Action                                       Who – Partners /   Initiation
                                                              Stakeholders       date

Short- to            Develop a business plan for the          DLG & H            2010
medium-term          Energy Office which includes an          Provincial
energy funding       enabling legal framework                 Treasury
plan                 Establish a funding unit in the
                     Energy Office (see section 4.10 for
                     energy office work streams)
                     Develop a business plan for the
                     initial implementation of the strategy
                     and develop a medium-term budget
                     and investment framework for the
                     strategy
                     The initial budget should include
                     funds for demonstration projects to
                     be started with immediate effect
                     Develop a database of potential
                     donors, funders and partners and
                     their interest areas
                     Identify sources of funding to
                     support the business plan and
                     secure funding
                     Establishment of a Gauteng Energy
                     Fund which will fund projects at
                     provincial and local govt (with low
                     interest rates and efficient
                     processing of applications)




                                  January 2010    page 30
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Implement a framework for longer-term financial support for provincial and
municipal government energy projects

Comprehensive        Develop a business plan to support        DLG & H             2010
and detailed         the longer-term implementation of         Provincial
energy funding       the strategy, with particular focus on    Treasury
plan                 achieving the stated targets
                                                               National Treasury
                     (including renewable energy
                     purchase, mass rollout of efficient       Local
                     water heating, and energy efficiency      governments
                     targets)                                  Private sector
                     Linked to the business plan,              stakeholders
                     develop a detailed 10-15 year             Donor community
                     finance plan and statement of             NBI
                     investment opportunities to guide
                     and support targeted purchase of          DWEA
                     renewable energy and energy
                     efficiency
                     Engage with banks to provide
                     suitable loan products to support
                     business plan
                     Engage with Central Energy Fund
                     around mutual support and
                     coordination regarding funding and
                     implementing the strategy
                     Investigate the feasibility of a
                     provincial tax option to fund
                     renewable and alternative energy in
                     Gauteng and ring-fencing this tax.
                     As a part of this undertake a study
                     regarding the legal position and
                     financial potential of carbon tax on
                     fossil fuels or transport fuels in the
                     province
                     Use carbon finance (e.g. CDM) as a
                     revenue stream both for the Energy
                     Office itself and for projects being
                     pursued
                     Coordinate funding plans with the
                     Sustainable Development Strategy

Provincial and       As part of developing a strategy          DLG& H and DID,     2014
municipal            business plan (above) conduct an          GEDA,
energy               assessment of key departmental/           Department of
financing            provincial and municipal projects         Economic
objectives and       and determine funding needs               Development
programme            Develop and disseminate guidelines        Municipalities
                     for funding support applications by
                                                               Provincial
                     departments and municipalities from
                                                               Treasury
                     Gauteng Energy Fund
                                                               National Treasury
                     Provide or facilitate strategic funding
                     to departments and municipalities
                     for implementation




                                  January 2010    page 31
                         GAUTENG INTEGRATED ENERGY STRATEGY




4.3 Local Government Support, Regulation and Market
Support

   Intention Statement
   Ensure that regulation and market support enable the sustained
   implementation of the strategy
   Objectives
   Support local governments to develop and enforce policies and
   regulations that promote renewable energy and energy efficiency
   Support provincial departments to develop regulations, guidelines
   and policies that promote good sustainable energy practices

In transforming the vision into action, there has to be mechanisms to support and
encourage the way forward. It is clear that an enormous increase in renewable
energy and energy efficiency investment will be needed over the next decade if there
is to be a meaningful switch away from fossil fuel use. Legislation and regulation are
important factors that may influence investment and growth. Province must develop
relevant standards and by-laws to facilitate the expansion of the RE and EE
market. For example, building codes and EIAs could incorporate energy efficiency as
a requirement in final reports and assessments.
Renewable energy and energy efficiency are unique in that they require higher
upfront investment than conventional energy sources with little running or fuel costs.
Relatively, this is even higher in South Africa, where we have had the luxury of cheap
electricity from coal. Innovative strategies and policies are therefore needed to
increase investment, spread cost over the life cycle, and reflect the multiple benefits
of renewable energy and energy efficiency, which over time can be cost-effective.
Developing regulation on renewable energy and energy efficiency also demonstrates
government’s seriousness and commitment to enacting change. This in turn provides
the confidence that the private sector needs to invest in the sector.
The most common government policies for leveraging investment in renewable
energy and energy efficiency are financial incentives, regulation and market support.
Financial incentives – such as tax incentives and direct financial assistance in the
form of rebates or free installation – are effectively a public source of financing.
Regulation includes removing inefficient and conventional investment options that
unknowingly encourage unsustainable energy interventions from the market through
performance requirements in building codes and equipment standards. Government
should lobby banks and home loan institutions to support an energy efficiency
certificate for homes and buildings. Legally binding targets for renewable energy
and energy efficiency can also be set. Market support policies include certification
and training, information and technical assistance to users, market transformation
and other programmes that remove investment barriers.
Provincial government can also play an important role by putting policies and
programmes in place that will maximize private, community and public investment in
renewable energy and energy efficiency. These policies must be aligned to the
provincial strategy as well as other provincial development plans. It is imperative that
these policies must include targets and plans for financial incentives, new funding
sources, regulations, and capacity building and training. These policies will in turn
support market growth and development of the renewable energy and energy
efficiency sector as well as thermal efficiency of new buildings, particularly RDP
houses.



                                 January 2010   page 32
                           GAUTENG INTEGRATED ENERGY STRATEGY



Provincial government can create a demand in the market by implementing and
promoting their own programmes that encourage energy-efficient and renewable
energy practices. Thus Province must aim to achieve ‘green building’ status by
2014 for all buildings in the Gauteng Precinct and all municipal head offices. This
would hopefully be a catalyst for private sector companies to act and achieve ‘green
building’ status. The Province should institute a system of reward of best practices by
companies.


Local Government Support, Regulation And Market Support

Intention Statement: Ensure that regulation and market support enable the sustained
implementation of the strategy


Objective: Support local governments to develop and enforce policies and regulations
that promote renewable energy and energy efficiency


Output            Action                                         Who – Partners   Initiation
                                                                 / Stakeholders   date

Standard by-         Assess all municipal by-laws relevant to    DLG & H          2010
laws and             sustainable energy and resource use for     GDARD
regulations for      how they can support or currently
RE and EE in         constrain implementation
the province         Identify relevant by-laws and regulations
                     required for, or in support of strategy
                     implementation, e.g. building codes
                     Develop standard by-laws and draft
                     regulations for consideration by
                     municipalities where appropriate

Green                Work with municipalities to achieve         DLG & H          2011
municipal            ‘green building’ status for all municipal   Municipalities
building             head offices in accordance with the
                                                                 DPW
programme            Green Building Council of SA rating
                     system

Sustainable          Promote a sustainable ‘ecosystem’           DLG & H          2014
growth of            approach to city development, including     Municipalities
cities               macro-planning considerations such as
                     densification and transport corridors, as
                     well as smaller scale development
                     planning. Support cities with necessary
                     research and development of policies to
                     affect this




                                     January 2010   page 33
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Support provincial departments to develop regulations, guidelines and
policies that promote good sustainable energy practices

Develop            Integrate EE, RE and Climate Change           DED              2011
standard           policy and legislation considerations into    DLG & H
guidelines         EIAs
                                                                 Municipalities
and policies       Ensure that the spatial development
                   framework of the province restrains
                   urban sprawl
                   Explore potential to make approval of
                   development plans subject to mandatory
                   energy interventions (e.g. energy
                   efficiency stipulations for shopping
                   complexes, commercial buildings
                                                      2
                   designed to less than150kWh/m , or
                   efficient water heating systems on
                   housing developments)
                   Require provincial departments to
                   assess and report on their energy and
                   GHG profile and intensity (e.g. kWh/m2
                   for offices )
                   Develop guidelines for the proper
                   disposal of CFLs in the region
                   Investigate the feasibility of an energy
                   efficiency clearance certificate or penalty
                   on home and building sales
                   Lobby banks and home loan institutions
                   to support an energy efficiency
                   clearance certificate

Air quality        Link with GDARD to ensure alignment           DLG & H          2011
management         with the Air Quality Management Plan          GDARD
plans              including: collation of data such as GHG
                                                                 Municipalities
                   emissions inventory, implementing
                   improved domestic fuel burning,
                   transport and industry emissions
                   Support GDARD and metros to further
                   develop and implement air quality
                   management plans that take into
                   consideration air pollution and carbon
                   implications of current energy practices
                   Air quality to be a key indicator in the
                   annual State of Energy Report (see
                   section 4.1 on leadership) in alignment
                   with the with Air Quality Management
                   Plan

Green public       Support GSSC to further develop a             DLG & H          2012
procurement        green procurement policy for province         GDARD
policy             and municipalities, including energy
                                                                 Municipalities
                   efficiency as an additional criterion
                                                                 Supply chain
                                                                 management
                                                                 services




                                  January 2010    page 34
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Support provincial departments to develop regulations, guidelines and
policies that promote good sustainable energy practices

Green public       See section 4.5 on using energy more
building           efficiently
programme

Energy             Undertake a pilot project for energy      DLG & H           2010
efficiency         performance labelling of homes and        DoE
performance        buildings in co-ordination with local
                                                             DTI
standards for      governments and industry and Green
buildings in       Building Council of SA                    NEEA
the province       Actively pursue the integration of SANS   Local
                   204 into the national building codes      governments
                                                             Private sector
                                                             stakeholders –
                                                             building sector
                                                             Green Building
                                                             Council of SA




                                 January 2010   page 35
                                    GAUTENG INTEGRATED ENERGY STRATEGY




4.4 Promoting Innovation and Clean Energy Technologies

      Intention Statement
      To promote the development of technologies that facilitates the
      move to a new energy future
      Objectives
      Build strong relationships and networks with research institutes,
      academia and potential funders
      Set agenda according to province’s needs to guide research
      development
      Develop a supportive environment for new business development in
      the clean energy technology sector
      Build awareness

The road to sustainable energy will open up a whole new area in innovation and
technology. The Gauteng government must seize this opportunity to become a hub
for the development, research and manufacture of clean energy technologies. It is
believed that the global market for clean and renewable energy is set to be worth
US$750 billion a year by 2016 17 .This offers the province enormous economic
opportunities to embrace fresh ideas.
The Gauteng government can promote innovation and clean technology through
investments, research and public-private partnerships. These partnerships are
important to improve clean energy technology development, develop internships
and create an arena for knowledge sharing.
The province can promote private sector funding and investment in research and
development. In addition, regulation can be instituted to demand that certain clean
energy technologies be used both in industry and in the residential sector (see
section 4.3 on regulation and market support above). Importantly, the province can
facilitate partnerships between the private sector, universities and government
research institutions (such as SANEDI). Gauteng is also in a position to promote
knowledge transfers between countries.
As a way forward, the province should identify the key areas of clean energies that
can be developed in the province – such as solar energy, landfill gas and energy-
efficient technologies. The province must then develop policies that will maximise
investment in energy-efficient and renewable energy technologies.
The mandate of the innovation hub must be extended to include clean energy
technologies. In addition the energy centre proposed through the Urban Observatory
must develop an annual RE and EE Innovation Exposition.




17
     “Labour’s 2020 target for a renewable energy future”:
ww.alp.org.au/download/now/renewable_energy_target_policy.pdf




                                               January 2010   page 36
                           GAUTENG INTEGRATED ENERGY STRATEGY




Promoting Innovation and Clean Energy Technologies

Intention Statement: To promote the development of technologies that facilitates the
move to a new energy future


Objective: Build strong relationships and networks with research institutes, academia
and potential funders


Output            Action                                        Who – Partners    Initiation
                                                                / Stakeholders    date

Partnerships         Liaise with tertiary and research          DLG & H           2010
between the          institutions on provincial sustainable     GEDA
private sector,      energy research requirements
                                                                SANEDI
universities         Establish cooperation frameworks with
and                                                             Private sector
                     existing research institution grant
government           programmes and internships at              Universities in
research             universities                               Gauteng
institutions
                     Coordinate with DST regarding a clean
(such as
                     energy technology incubator which
SANEDI) and
                     focuses on provincial issues
international
agencies and         Identify and establish partnerships with
organisations        appropriate international bodies and
                     agencies for skills and knowledge
                     transfer




                                    January 2010   page 37
                        GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Set agenda according to province’s needs to guide research development

Energy            Clarify the feasibility of renewable        DLG & H            2011
resource          energy options in Gauteng through a         Premier’s Office
assessments       detailed energy resource assessment
                                                              Provincial
                  conducted in conjunction with industry
                                                              Treasury
                  and other sectors as appropriate
                                                              Industry bodies
                  Drawing on the resource assessment,
                  identify the key clean energies to be
                  developed in the province – such as
                  solar energy, landfill gas and energy-
                  efficient technologies
                  Identify specific supportive technology
                  needs that require further development
                  and promotion (e.g. smart metering,
                  mini-grid and smart-grid applications, as
                  well as rapid transport options)
                  For an analysis of technologies
                  available see the documents: ‘Energy
                  Efficient and Renewable Energy
                  Technologies Assessment Report’ and
                  ‘Assessment of Energy Efficiency and
                  Renewable Energy Potential in the
                  Gauteng Province and Associated Long
                  Term Energy Planning Implications’

Renewable         Eskom and municipality renewable            DLG & H &          2010
energy            energy grid feed-in codes must be           Provincial
development       finalized and made easily available and     Treasury
programme         applicable                                  NERSA & EDI,
and               See section 4.2 on financial                NEEA & local
investment        mechanisms                                  governments
case
                                                              Private sector
                                                              stakeholders
                                                              Donor
                                                              community




                                 January 2010   page 38
                        GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Develop a supportive environment for new business development in the
clean energy technology sector

Supportive        Liaise with DTI and DED to promote             DLG & H and      2010
mechanisms        business clusters such as solar water          municipalities
to promote        heater manufacturers, installers and           DTI
clean             maintenance, as well as renewable
                                                                 National &
                  energy component manufacturing, e.g.
technology                                                       Provincial
                  turbine towers for wind energy or low-
business                                                         Treasury
                  carbon transport vehicles. It may be
                  appropriate to achieve this through a
                  clean energy technology park that offers
                  reduced rates/levies and taxes for a
                  limited period
                  In conjunction with the above action to
                  promote clean energy businesses,
                  explore the feasibility of municipalities to
                  reduce levies and taxes on clean
                  products and start-up companies for a
                  limited period
                  Support the establishment of clear
                  standards for products working with
                  SABS and other standards authorities
                  (e.g. around SWHs)
                  Consumer and business education and
                  awareness on clean energy alternatives
                  See section 4.9 on empowering
                  consumers to reach the vision

Objective: Build awareness

Facilitate        Hold an annual RE and EE innovation            DLG & H          2015
innovation        expo and awards                                DED
through           See section 4.9 on empowering                  DTI
building          consumers to reach the vision
awareness                                                        GEDA
                                                                 NBI




                                  January 2010    page 39
                                     GAUTENG INTEGRATED ENERGY STRATEGY




4.5 Using Energy More Efficiently

      Intention Statement
      To have an energy-efficient province
      Objectives
      Develop an energy-efficient transport sector
      Government operations and buildings to be energy efficient
      Households to be energy efficient
      Industry and commerce to be energy efficient

South Africa has set a national target for energy efficiency improvement of 12% by
2015. The Gauteng province is striving towards 8% by 2014 and 18% by 2025 18 . Of
all the interventions in the energy sector, efficiency is the most cost-effective and will
achieve the fastest overall results in terms of power demand and energy use, and
therefore also local and global emissions reductions. As part of an integrated energy
strategy, the country as a whole has seriously under-prioritised this aspect, and thus
it is of added importance that Gauteng province promotes it proactively. Province
should undertake to complete audits of all government buildings by the end of 2010.
The advantage of implementing energy-efficient programmes is that this can be done
immediately, and many interventions have little or no cost implications. Energy
efficiency can also be carried out in almost all sectors – including transport,
residential, government, industry and business. Some programmes are already in
place in the province and include retrofitting public buildings, promoting the use of
CFLs, efficient HVAC technology is available and solar water heater programmes are
being planned. Energy efficient building standards have been developed by SABS
and are currently being lined up to be incorporated into the national building codes.
This strategy is aware that the targets set are extremely ambitious and will require
significant changes in order to firstly reach the targets and secondly make an impact
in the province. A tool has been developed to support this strategy and shows that
savings within the household, commerce and industry sectors are for some
interventions relatively cost effective and can result in substantial electricity savings
A large-scale education and awareness programme is an important part of improving
energy efficiency. Such programmes should highlight the significance of saving
energy for the longer-term sustainability of the province, as well as increasing global
warming emissions. Government must develop public awareness programmes on
saving energy. An example would be for the Province to utilize campaigns such as
‘Earth hour’ more effectively in the province.
It is important that government lead by example by making their own facilities energy
efficient. This also will result in significant financial savings in the short term.




18
     This is based on modelling specific interventions in LEAP and is considered realistic, though still demanding.




                                                January 2010       page 40
                           GAUTENG INTEGRATED ENERGY STRATEGY




Using Energy More Efficiently

Intention Statement: To have an energy-efficient province


Objective: Develop an energy-efficient transport sector

For Outputs and Actions see section 4.7 on modal shift to public transport, use of non-
motorised transport, etc.

Objective: Government operations and buildings to be energy efficient


Output           Action                                       Who – Partners    Initiation
                                                              / Stakeholders    date

Existing             Audit of all government buildings,       DLG & H,          2010,12,14
government           including offices, schools, hospitals    EMTT, DID,
building             etc and retrofit for energy efficiency   Energy Office,
energy               Appoint ESCOs accredited by              municipalities
consumption          ESKOM to help with the audits and
reduced              undertake retrofitting
                     Targets:
                     o 13% reduction in energy
                          demand from BAU in
                          government buildings by 2014
                     o Audits of all government
                          buildings completed by 2010
                     o All incandescent lighting in
                          government buildings to be
                          replaced with energy-efficient
                          lighting by 2012 (note that
                          system for safe disposal of
                          fluorescents needs to be in
                          place)

New                  Province to achieve ‘green building’     DLG & H           2014
government           status for all buildings in the          DoH
buildings must       Gauteng Precinct and encourage all
                                                              NHBRC
comply with          municipal head offices to achieve
                     same (see local govt section above),     Green Building
green building                                                Council
                     Adopt the standards of the Green
standards to         Building Council of SA                   DID
be efficient         As a part of the above, all new          EMTT
                     government buildings to include          DPW
                     strong design features and
                     technology to improve energy
                     efficiency (SABS Commercial
                     Building Energy Efficiency standards
                     to be used as a starting point)




                                    January 2010    page 41
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Government operations and buildings to be energy efficient

Capacity of        Key staff in government                 DLG & H, all     2010
government         departments to have undergone           departments
officials          capacity building around EE, RE
                   and/or DSM
                   Identify further and ongoing training
                   needs
                   See section 4.9 empowering
                   consumers to reach the vision for
                   more actions

Use of video       Feasibility study for video             DLG & H          2010
conferencing       conferencing potential to reduce
to reduce          travel needs for government
government         (including interdepartmental travel),
travel needs       and implement study
                   recommendations

Support            Engage with municipalities to           DLG & H          2010
municipalities     determine areas where support           Eskom
with energy        would further their municipal
                                                           Local
efficiency         operation energy efficiency
                                                           municipalities
programmes         programmes and needs, including:
                   o All electricity master plans to be
                       guided by an energy efficiency
                       framework
                   o Efficient streetlights
                   o LED traffic lights
                   o Building efficiency (see section
                       4.3)
                   o Municipal plant efficiency (water
                       pumping etc)
                   o Capacity building of city staff
                   o Design and undertake activities
                       to provide such support




                                  January 2010   page 42
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Households to be energy efficient

Support            Engage with municipalities to              All relevant     2010
municipalities     determine areas where support              departments,
with domestic      would further their household energy       municipalities
energy             efficiency programmes and
efficiency         employment creation needs,
programmes         including:
                   o Building efficiency standards
                        implementation including green
                        building certification (see section
                        4.3)
                   o Promote insulation of ceilings
                   o Promote alternative safe and
                        efficient cooking fuels
                   o Roll-out of affordable, efficient
                        lighting in conjunction with safe
                        disposal mechanisms
                   o Promoting adoption of appliance
                        labelling of DoE
                   o Developing by-laws around
                        building efficiency (see section
                        4.3)
                   o Smart metering options suitable
                        for domestic applications
                   o Media and awareness
                        campaigns
                   o CDM programmatic approaches
                        to fund interventions
                   o Design and undertake activities
                        to provide such support,
                        considering employment
                        creation in the implementation

Public             Design and implement public                DLG & H          2010
awareness          awareness programmes and
programmes         campaigns on saving energy, for
on saving          example, ‘international earth hour’ to
energy             become a provincially supported
                   campaign
                   See section 4.9 on empowering
                   consumers to reach the vision for
                   more actions

Low-income         See section 4.8 on affordability and
housing            wellbeing for energy efficiency in
energy             low-income houses
efficiency to
be improved




                                  January 2010    page 43
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Industry and commerce to be energy efficient

Commerce           In collaboration with private sector,   DWEA             2014
and industry       work towards ensuring that all          GEDA
to develop         businesses achieve green building
                                                           NBI
energy plans       status by 2014 using the Green
                   Building Council of SA standards.       Private sector
                                                           stakeholders –
                   Obtain business sector
                                                           tourism sector
                   endorsement of GIES efficiency
                   targets                                 EIUG
                   Large energy consumers to produce
                   annual energy plans – (initially
                   members of the Energy Intensive
                   Users Group).
                   These plans must be factored into
                   the State of Energy report
                   Monitoring and compliance of
                   industry and commerce to be
                   reflected in the State of Energy
                   report
                   Lobby national government to
                   develop energy intensity standards
                   for large energy consumers and
                   these consumers to report on
                   compliance in their annual energy
                   plans
                   Representatives from these sectors
                   must be active in the Energy Forum
                   (see section 4.1 on leadership)
                   The Province will recognize and
                   reward best practice for outstanding
                   performance




                                 January 2010   page 44
                        GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Industry and commerce to be energy efficient

Commercial         Engage with municipalities to           DLG & H and      2010
and industrial     determine areas where support           sector
energy             would further their energy efficiency   departments
efficiency         programmes and needs, including:        Municipalities
programmes         o Industry and commerce                 NBI
                       completing energy audits by
                                                           Private sector
                       2012
                   o Promoting green building
                       guidelines
                   o Commercial and industrial
                       building energy efficiency and
                       green building standards
                       implemented
                   o Adopting appliance labelling
                       standards
                   Province to engage with
                   municipalities towards making
                   building standards mandatory
                   Support the development and
                   province wide rollout of by-laws
                   around building efficiency
                   Intelligent metering and central
                   monitoring of industrial and
                   commercial customers against set
                   targets by municipalities and Eskom
                   Uptake CDM programmes to
                   support intervention funding
                   Engage with municipalities to look at
                   and implement stepped pricing as a
                   means of achieving efficiency
                   targets
                   The Energy Office to design and
                   undertake activities to provide such
                   support

Public             Design and implement public             DLG & H          2010
awareness          awareness programmes on saving
programmes         energy aimed at commerce and
on saving          industry
energy

Promote            Link with the National Business         DLG & H, NBI,    2010
National           Initiative around active promotion of   Industry
Business           the Energy Efficiency Accord for
Initiative (NBI)   industry within Gauteng
Energy             Engage with industry to participate
Efficiency
                   Engage with industry and commerce
Accord with
                   sectors to determine how to make
medium to
                   Accord implementation more
large
                   effective
businesses in
Gauteng




                                 January 2010   page 45
                                   GAUTENG INTEGRATED ENERGY STRATEGY




4.6 Sustainable Energy Supply

      Intention Statement
      To ensure that the energy supply mix in Gauteng is optimised in
      terms of economic, social and environmental sustainability, and to
      foster an enabling environment for this to happen
      Objectives
      Determine and promote the most economically, socially and
      environmentally sustainable supply mix
      Ensure that Gauteng takes responsibility for its global warming
      impact in line with national and international imperatives
      Work towards security of supply

Energy is not only critical for economic growth and welfare of households, but also
contributes to environmental problems, the most significant of which is the global
warming crisis. It is thus imperative for the long-term stability and development of
Gauteng that all of these concerns are balanced.
Renewable energy, like energy efficiency, is a major factor in the decrease in CO2
emissions, and can also diversify and improve the security of energy supply if
introduced correctly. Banks and Schäffler (2006) 19 investigated the national
renewable energy potential and developed scenarios to 2050. They showed that
more than 50% of electricity could be generated from renewable resources by 2050,
and illustrated the benefits of moving into this position. They make the important
point that continuing on the “business as usual” energy supply route (i.e. fossil fuel
dependent) that the country has practised for many decades will lead to an
expensive and thus economically damaging energy mix in the medium or long term,
not to mention the unacceptability of such a situation in terms of global warming.
Most energy supply takes place via large centralised national systems such as the
Eskom power grid, gas pipelines or the national liquid fuels distribution system. As
such, most planning and decisions in this regard are done at national level – such as
the National Integrated Resource Plan (NIRP) for electricity supply planning. While
the Gauteng government has a limited role in this regard, it is nevertheless
responsible for supporting the move to a more sustainable supply situation by
influencing such processes as well as by maximising the use of feasible local energy
resources. It is imperative that an assessment be done for the province to establish
the suitable sustainable energy supply mix for Gauteng. Some of these issues
and actions will appear in various sections to re-enforce what needs to be done.
Amongst the most promising local renewable energy options for Gauteng in the short
term are solar energy (solar water heaters) and energy from landfill gas. The
province has the potential to develop into the regional solar water heater industrial
centre with associated significant job creation. Approval must be obtained for a SWH
strategy and implementation plan.
In addition, to improve the clean energy profile and reduce the carbon footprint of the
province, renewable energy from sources outside its geographic boundaries – such

19
     Banks, D.I. & Schäffler, J.L. 2006.   The potential contribution of renewable energy in South Africa, 2nd Ed,
Prepared for Sustainable Energy & Climate Change Project, Earthlife Africa Johannesburg, February 2006.
Summarised in Holm, D., Banks, D., Schäffler, J., Worthington, R., and Afrane-Okese, Y. March 2008. Potential of
Renewable Energy to contribute to National Electricity Emergency Response and Sustainable Development




                                              January 2010     page 46
                          GAUTENG INTEGRATED ENERGY STRATEGY



as from wind generation – can be purchased by them. Building and supporting a
renewable energy industry could provide job creation opportunities which will help
reduce the high levels of unemployment in the province and assist in the road to
poverty alleviation.


Sustainable Energy Supply

Intention Statement: To ensure that the energy supply mix in Gauteng is optimised in
terms of economic, social and environmental sustainability, and to foster an enabling
environment for this to happen


Objective: Determine and promote the most economically, socially and
environmentally sustainable supply mix


Output           Action                                       Who –          Initiation
                                                              Partners /     date
                                                              Stakeholders

Assessment of        Undertake an assessment of a suitable    DLG & H        2010
a suitable           supply mix to balance the following:
sustainable          keep costs down to promote economic
supply mix           growth, but look to longer-term cost
                     optimisation and environmental
                     sustainability (including low carbon
                     considerations) by introducing
                     renewable and alternative energy
                     options in the short term. Draw on
                     work being done by NERT and NERSA
                     Targets:
                     o 7% RE consumption (electricity
                          only) by 2014, 16% by 2025, 47%
                          by 2055
                     Engage with the development of REDs
                     and ensure that the GIES targets are
                     fully incorporated into RED strategies
                     and actions

Encourage            Explore and encourage decentralised
decentralised        energy production in Gauteng where
power                appropriate
generation

Maximise the         Undertake a resource assessment for
use of               RE and other appropriate clean energy
appropriate RE       sources in Gauteng
technologies         Investigate regulatory barriers to
                     utilisation of RE, including the MFMA,
                     net metering and other feed-in
                     constraints etc.




                                 January 2010   page 47
                        GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Determine and promote the most economically, socially and
environmentally sustainable supply mix

Support mass        Approval of an efficient water heating   DLG & H          2010
roll out of         strategy and implementation plan         Municipalities
efficient water     Support mass roll-out of domestic        Eskom
heating             SWHs & other efficient systems in
systems                                                      SWH industry
                    cities by appropriate involvement in
                    these areas:                             DBSA
                    o Training support for installers        EnerKey
                    o Adequate standards in existence
                    o Efficient water heating by-law
                         development support
                    Financing model development support
                    (including for low-income households)
                    Link with current projects under way
                    within Gauteng
                    Targets:
                    o Achieve 20% penetration by 2014,
                         95% by 2025 in mid- to hi-income
                         sector

Efficient water     Promote the development of an            DLG & H,         2010
heating industry    efficient water heating industry to      DED
development is      support mass roll-out and make
                                                             Energy SETA
promoted            Gauteng the regional centre for this
                    technology, via:
                    o Training
                    o Industry incentives to promote
                         local production

Cities are          Engage with cities to determine          DLG & H          2010
supported in        appropriate support for landfill gas     GDARD
implementing        project implementation, including:
landfill gas        o CDM project development
projects
                    o Technical information sharing
                    o Provision of expertise

New clean           Keep track of other renewable energy     DLG & H          2010
energy options      sources and promote where promising,     CSIR
are introduced      including:
where feasible      o Sewage gas
                    o Solar PV
                    o Localised biogas generation
                    o Fuel cells
                    o Other promising technologies (see
                        section 4.4 on promoting
                        innovation)




                                 January 2010    page 48
                        GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Determine and promote the most economically, socially and
environmentally sustainable supply mix

Small-scale off-    Work with cities to facilitate the private   DLG & H            2010
grid and grid-      sector use of small-scale off-grid and       Eskom
feed-in             grid-feed-in systems such as solar PV
                                                                 City Electricity
renewable           and biogas generation, including:
                                                                 Departments
systems are         o Technical assessment support
promoted in
                    o Standards development support
private sector
                    o Awareness raising

Facilitate the      Support the finalisation and application     DLG & H            2010
introduction of     of the REFIT to facilitate the               DoE
the Renewable       commercial viability of large-scale
Energy Feed-in      renewable energy systems, by
Tariff (REFIT)      engaging with national government
                    Based on assessment of suitable
                    supply mix (above), establish how
                    REFIT can best benefit Gauteng and
                    lobby for future phases on REFIT to
                    address these issues
                    Lobby for the inclusion of small-scale
                    generation options in the REFIT in
                    future

Facilitate          Identify national sources for supporting     DLG & H            2011
access to           renewable energy implementation,             Provincial
finance for         inform cities and private sector, and        Treasury
renewable           support use thereof (including: REFIT,
                                                                 National
energy and EE       Treasury renewable fund, Working for
                                                                 Treasury
implementation      Energy, CDM and REFSO)
                                                                 DBSA
                    Apply for national DSM funds or similar
                    that can fund energy efficiency projects     DoE (REFSO)
                    in the province and municipalities
                    Investigate development of a TREC or
                    similar system that provides funding
                    and allows for clear accounting of
                    renewable energy consumed in the
                    province




                                  January 2010    page 49
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Ensure that Gauteng takes responsibility for its global warming impact in
line with national and international imperatives

Co-ordination        Liaise with DWEA regarding the             DLG & H      2010
and support for      implementation of carbon reduction in      GDARD
national carbon      accordance with the LTMS, and ensure
                                                                DWEA
reduction            provincial implementation is aligned –
initiatives          with the Air Quality Management
                     Programme and a forthcoming Climate
                     Change Strategy. (see section 4.3
                     under air quality management plans)
                     Link with GHG inventory set up by
                     DWEA
                     Detailed study around what constitutes
                     a low carbon economy and the future
                     implications for the economy and
                     society
                     Study of coal use in province looking at
                     major users and potential adaptation to
                     a low carbon future

Implementation       Undertake a Gauteng LTMS based on          DLG & H      2010
of measures to       the national LTMS study to determine
reduce carbon        exactly how the targets are to be
footprint            achieved and supply mix and industrial
                     and other sector reforms necessary to
                     comply.
                     Coordinate with the forthcoming
                     Gauteng Climate Change Strategy
                     Implement renewable energy and
                     energy efficiency actions (see above
                     actions and section 5.5 on using
                     energy more efficiently)
                     Targets:
                     o 13% CO2 reduction by 2014
                     o 27% CO2 reduction by 2025
                     o 49% CO2 reduction by 2050
                     Establish consequences of not meeting
                     targets (see monitoring and
                     enforcement under section 4.10
                     institutional support)

Carbon revenue       Clarify suitable carbon projects and       DLG & H
available to         sources of revenue, and facilitate         GDARD
support              access to the revenue by local
                                                                DBSA
renewable and        government and private sector,
efficiency           including via:
implementation       o supporting or developing CDM
                         programmatic and other
                         methodologies
                     o technical support for the
                         development of projects
                     See section 4.2 on financing




                                  January 2010   page 50
                        GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Work towards security of supply

Secure supply       Supply mix (determined in earlier           DLG & H   2010
mix promoted        action) to include adequate diversity,
                    consideration of reliability of supply,
                    consideration of resource availability,
                    consideration of price vulnerability, and
                    reserve margins for secure energy
                    provision
                    Support for cogeneration and other
                    non-utility generation (see earlier
                    actions)

Security            Ensure that sector is efficient (i.e.       DLG & H   2010
promoted            doesn’t demand more energy than
through energy      necessary) – see section 4.5 on using
efficiency          energy more efficiently for actions




                                 January 2010    page 51
                         GAUTENG INTEGRATED ENERGY STRATEGY




4.7 Transport

  Intention Statement
  Gauteng has a transport system that is based on principles of
  efficiency, equity and sustainability
  Objectives
  Build and increase current public transport developments
  Promote infrastructure management
  Promote more efficient spatial planning
  Promote modal shifts in transport use
  Develop financial incentives
  Promote transport technologies
  Build awareness

The second largest consumer of energy in the province is the transport sector, with
35% of all energy consumption, this includes road, freight and rail travel but excludes
aviation. Like energy, transport is a cross-cutting issue and impacts on, and is
influenced by, decisions of a myriad of players. In terms of the Constitution, public
transport is both a provincial and local competency, with national government able to
legislate on transport in consultation with provinces and to manage state-owned
enterprises (like those that manage the rail system). Because of the sheer number of
players in the transport sector, it requires dedicated adherence to co-operative
governance. There are developments in Gauteng in this sector, particularly with the
construction of the Bus Rapid Transit system (BRT) and the Gautrain. The BRT in
Johannesburg is known as Rea Vaya and will provide 122 km of rapid bus lanes and
should be operational by 2010. Similarly, the BRT in Tshwane is expected to be
operational by 2010. The Gautrain Rapid Rail Link will provide travel between
Johannesburg, Tshwane and OR Tambo Airport, and the first phase of the work will
be completed by 2010.
Both these developments will impact on the growth of public transport in the province
and ultimately the rate of energy consumption and emissions. The 2009 National
Treasury Budget gave an additional R6,4 billion to public transport, roads and rail
networks – this is linked with issues around spatial development and increasing
mobility access for the poor. The Budget specifically talks about:
        building new railway lines, buying new trains and putting more buses on the
        road;
        introducing rail safety inspectors;
        providing funding for rural transport;
        upgrading 165 km of Gauteng’s primary road network with costs being
        recovered from road users through a tolling system;.
These comments are significant as the Budget provides to some extent financial
infrastructure support and political will for changes to be made. To a large extent the
kinds of changes that need to be looked at in a transport strategy are based on
modal shifts. Thus an assessment of public transport needs must be done in
municipalities.
Travel in private vehicles accounts for approximately 49% of Gauteng’s land
transport fuel use and a quarter of Gauteng’s overall energy use. This energy use is
concentrated amongst the car-owning households. This group is generally resistant
to switching to public transport. However, the Gautrain is aimed at airport passengers


                                 January 2010   page 52
                                   GAUTENG INTEGRATED ENERGY STRATEGY



and car-owning households. Interestingly, a recent study 20 has shown that as much
as 35% of peak morning traffic is education related. This means that a strategy that
focuses on school-related journeys might make an immediate impact. The BRT
system is aimed at passengers who might have a car but will opt for public transport
for economic reasons, but will also attract those who might be prepared to make a
modal shift given perhaps greater awareness of the impact of CO2 emissions and the
positive results of making a change. The financial case of public transport is also
important, particularly faced with fluctuating oil prices and the impacts of peak oil. It is
important to thus expand existing bus and taxi services.
The primary objectives of the transport strategy will be to focus on modal shifts
initially, on raising awareness and increasing mobility and access to transport for the
poor. The suggested targets are an overall improvement in transport efficiency of 7%
by 2014 and 15% by 2025. This will include a 10% modal shift to public transport
and a 7% shift from road freight to rail freight by 2014. In addition, government can
begin the shift by converting municipal vehicles to alternative fuels such as gas.
The development of an efficient transport network is linked to an improved spatial
planning policy. This will require curtailing urban sprawl and improved town
planning.




20
     Behrens, R. (2002) Matching networks to needs: travel needs and the configuration and management of local
movement networks in South African cities, DPhil thesis, University of Cape Town.




                                              January 2010     page 53
                              GAUTENG INTEGRATED ENERGY STRATEGY




Transport

Intention: Gauteng has a transport system that is based on principles of efficiency,
equity and sustainability


Objective: Build and increase current public transport developments


Output               Action                                    Who – Partners /    Initiation
                                                               Stakeholders        date

Expanded bus            Develop and expand existing bus        Public Transport    2015
services                systems in municipalities              Roads and
                        Introduce smart ticketing              Works/bus
                                                               companies/taxi
                                                               industry

Expanded BRT            Evaluate and depending on              Public Transport    2020
system                  outcomes expand BRT to other           Roads and
                        municipalities                         Works/COJMM/b
                                                               us companies
                                                               and taxi industry

Upgraded Metro          Upgrade Metro Rail system,             Public Transport    2020
Rail system             consider more trains, improve          Roads and
Expand Gautrain         reliability, safety, expand stations   Works/Metro Rail
service                 Reduce reliance on transporting
                        freight by road
                        Evaluate and depending on
                        evaluation outcomes, expand
                        Gautrain to other areas

Integration of the      Continue to engage the taxi            Taxi industry       2012
taxi industry           industry until a satisfactory and      associations
                        acceptable model is created which      Public Transport
                        integrates them into the public        Roads and Works
                        transport structure




                                     January 2010    page 54
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Promote infrastructural management

Improve and          Review overall traffic flow in        Public Transport   2012
optimise traffic     Gauteng, including traffic light      Roads and Works
flow                 management, speed limits, on- and
                     off-street parking positioning and
                     access, one-way streets and public
                     transport integration and
                     prioritisation

Better safety        Review safety of public transport,    Public Transport   2014
                     identify potential changes and        Roads and Works
                     implement improvements
                     Review street design, safety
                     features and implement
                     improvements to increase safety, of
                     pedestrians in particular

Objective: Promote more efficient spatial planning

Improved spatial     City spatial, town, transport,        DLG & H            2020
planning             education and infrastructure          DPTRW
whereby housing      planning departments to work
developments         together to:
are close to         o Build collaborative town
transport routes,        planning
shops,
                     o Develop and enforce guidelines
amenities,
schools and          o Develop efficient new and
work-places              existing routes
                     o Concentrate housing
                         developments (densification)
                     o Decentralise trading
                     o Promote mixed land use
                     o Prioritise non-motorised
                         transport
                     o Create “No transport”
                         communities
                     o Allocate provincial land to
                         municipalities for integrated
                         spatial planning
                     o Integrate the ITP into the IDP




                                 January 2010   page 55
                        GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Promote modal shifts in transport use

Safe and             Investigate feasibility of              Public Transport   2015
separate cycle       implementing cycle lanes – in city      Roads and Works
lanes                centres, near university areas and      City departments
                     in less congested municipalities
                     Explore and promote bicycle rental
                     schemes
                     Promote use of scooters
                     Make it possible to carry bicycles
                     on public transport

Park and ride        Identify and develop suitable park      Public Transport   2015
centres              and ride facilities                     Roads and Works
operating            Link with large employer                City departments
                     programmes (see below)                  Cycle
                     Investigate congestion charges and      manufacturers
                     implement if appropriate

Large employer       Encourage car pooling with priority     Industry,          2012
travel               parking                                 Commerce, NBI
programmes           Encourage consideration of
                     company transport
                     Encourage employers to introduce
                     incentives to promote use of public
                     transport or cycle to work
                     Introduce parking disincentives

Schools/learner      Conduct a study on how to improve       Public Transport   2012
programme            learner transport system including      Roads and Works
                     potential use of incentives             Education
                     Encourage car pooling, walking in
                     groups or other alternative modes
                     of transport

Integrated modal     Promote:                                NBI                2014
planning             o Decentralisation of workplaces        Municipalities
                        so that there will be less
                        congestion in the CBD
                     o Working from home
                     o Telecommuting
                     o Bicycle lanes, park and ride
                        system
                     o ‘Drop and go’ car hire (‘car
                        sharing’)
                     See other actions in this section for
                     more details




                                 January 2010    page 56
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Promote modal shifts in transport use

Transport             Explore and encourage the uptake        Car industry,      2015
system less           of efficient and alternatively-         Public Transport
dependent on          powered vehicles such as hybrid,        Roads and Works
fossil fuels          electric and gas powered vehicles,
                      considering infrastructure needs to
                      enable these alternative fuels to be
                      used
                      Alter the provincial procurement
                      policy to emphasise energy
                      efficiency as a criterion for vehicle
                      procurement
                      Persuade municipalities to make
                      similar changes to their
                      procurement policies.
                      Targets:
                      o 30% of government vehicles to
                           be converted to alternative
                           fuels by 2015, 50% by 2030,
                           100% by 2050

High occupancy        Introduce high occupancy vehicle        Public Transport   2015
vehicle lanes         lanes and toll systems (Check           Roads and
                      legality of this and change             Works, taxi
                      regulations if necessary)               industry
                      Law enforcement to ensure
                      effectiveness

Objective: Develop financial incentives

Develop a             Develop a business plan for             DLG & H
financial case        transport improvements and link to
                      overall strategy business plan
                      See section 4.2 on financial
                      business plan

Vehicle rating        Advocate for a rating and labelling     National           2010
system: fuel          system for vehicles and engage          Government
efficiency and        with Treasury regarding tax rebate      DoE
emissions             as incentive

Increase in rail      Advocate for an increased tax of        Transnet           2020
freight               road freight, and tax incentives for    DoT
                      using rail freight
                      Agree reliability standards with
                      provincial stakeholders, especially
                      industry, and then engage Transnet
                      to implement them.




                                  January 2010    page 57
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Develop financial incentives

Carbon tax            Explore feasibility of levying a        Public Transport    2014
                      provincial tax on fuel (fuel pricing)   Roads and Works
                      Ensure that the baseline on which       Treasury –
                      taxes are developed are Gauteng         Provincial and
                      specific                                National
                      Calculate the carbon footprint of
                      provincial government travel
                      (internalising the environmental
                      costs) and offset it by investing in
                      community development projects

Objective: Promote transport technologies

Strategy on           Clarify the feasibility of biofuels     Public Transport
promoting             production in the province              Roads and Works
alternative           Liaise with CSIR and SANEDI             DWEA
transport             about feasible alternative fuels        DTI
technologies
                      Research the availability or            DOT
                      feasibility of local alternative
                                                              DoE
                      transport technologies and engage
                      them in their promotion                 Treasury
                      Research the economic costs and         SANEDI
                      benefits of replacement of              CSIR
                      inefficient government fleet
                      Follow-up the work done by DoE
                      and Telkom in establishing the
                      appropriateness of LPG usage in
                      vehicles and enhance if appropriate
                      Liaise with DoT and DoE to
                      establish a special commission to
                      better investigate and promote an
                      accelerated transition to alternative
                      fuels

Objective: Build awareness

Education             Develop education programmes            Education, Public   2012
programmes            and raise awareness                     Transport Roads
                      Public transport awareness month        and Works
                      Highlight benefits
                      Target university students with
                      education programmes
                      See section 4.9 on empowering
                      consumers to reach the vision




                                   January 2010    page 58
                                    GAUTENG INTEGRATED ENERGY STRATEGY




4.8 Affordability and Wellbeing

       Intention Statement
       Citizens of Gauteng meet their energy services needs
       Objectives
       Develop energy efficient houses
       Provide greater access to a range of safer energy options and
       reduce health and safety dangers associated with current fuel use
       patterns
       Raise awareness on options available

Access to energy is fundamental to human wellbeing and poverty alleviation has
been high on the government’s agenda for some years. The recent 15-year review 21
claims that much has been achieved in terms of poverty alleviation but it is clear that
the country needs to do much more. Poverty and access to energy are significant
issues within Gauteng largely because of the province’s position as an economic hub
and the fact that although covering a small portion of land compared to other
provinces it has a population of 10,5 million 22 , second only to KwaZulu-Natal, and is
the most densely populated area in South Africa. The province is plagued by a
number of socio-economic challenges such as high rates of HIV/Aids, crime, housing
shortages, and an unemployment level of 22,6% 23 .
Linked with the expansion of cities is the growth of the informal sector. This is not a
temporary phenomenon but a trend that is in itself growing 24 . Evidence suggests that
the informal sector is growing at a faster rate than the formal sector. The
recommendations of a SANERI study 25 was that policies and strategies aimed at
alleviating energy poverty should realign to include a broader basket of energy
subsidies and services. The 2009 CURES Discussion Document 26 advocates an
integrated approach with a number of recommendations such as restructuring the
electricity tariff system and increasing free basic electricity and energy grants. Thus
this strategy acknowledges that it is unlikely to make a systemic change in terms of
the numbers of people living in poverty within Gauteng but will aim at providing
greater access to a range of energy options particularly in the informal sector as well
as improving awareness about those options and their costs. This will be done partly
by ensuring access to free basic alternative energy in informal households starting
with 20% by 2014 and reaching 80% by 2025.
In order to achieve these objectives the activities being advocated include ensuring
that all future RDP housing to include EE design components such as ceilings,
insulation, solar water heaters and are orientated, where possible, towards the north
in order to maximise heat from the sun. Evidence shows that the provision of ceilings
and insulation generally results in much greater energy efficiency (as much as 48%
improvement) 27 , reduces costs and improves living conditions considerably. Given

21
     Towards a Fifteen-year Review: Synthesis Report, October 2008
22
     Gauteng Economic Review, 2008
23
     http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-25_2228457
24
     Improving Energy Welfare in Unelectrified Urban Informal Households, SANERI and SEA, March 2008
25
     Ibid.
26
     Exploring Energy Poverty in South Africa: A CURES (citizens united for renewable energy and sustainability)
Discussion document, March 2009
27
     Urban Green File, December 2005, Energy Efficient Housing Design for Low-Income Housing, Prof Dieter Holm




                                               January 2010      page 59
                        GAUTENG INTEGRATED ENERGY STRATEGY



Gauteng’s intention of working towards poverty alleviation, investment in such a
programme would go some way in terms of achieving this goal by improving the
quality of life as well as improving energy efficiency and creating jobs.
The Working for Energy programme has recently been funded by the 2009 national
Budget which specifically makes provision for the insulation of ceilings in poor
housing both in terms of new housing and retrofitting existing housing. This could be
a source of funding.
A further activity would be to facilitate the implementation of Free Basic
Alternative Energy (FBAE) specifically set up for those households not connected to
the grid. Many poor households not electrified use alternative forms of energy for
cooking and heating. As noted above the number of informal households is
increasing and the implementation of FBAE has been very slow. Gauteng province
could take a lead here by developing mechanisms for its implementation at the
municipal level. In addition the amount of 50kWh of free basic electricity is based on
households and not numbers of people living in one household. There is scope for
the Province to review the amount of 50kWh and assess what best suits the
province. Studies have shown that the use of the BNM (basa njengo magogo)
reduces smoke emissions by 50% and uses 20% less fuel. This as well as other
options such as hotboxes could be promoted across the province. Interventions here
will be pursued with the consultation of the national Department of Human
Settlements and its national housing subsidy scheme.




                                January 2010   page 60
                         GAUTENG INTEGRATED ENERGY STRATEGY




Affordability and Wellbeing

Intention: Citizens of Gauteng meet their energy services needs.


Objective: Develop energy efficient houses


Output          Action                                          Who –           Initiation date
                                                                Partners /
                                                                Stakeholder
                                                                s

All new RDP        Lobby and support national                   Department      2020
housing to         government to include efficiency in          of Public
include            low-income housing specifications            Works
energy-            Align requirements for low-income            National and
efficient          housing with energy efficiency               provincial
design             standards being developed by the             Department
components         national Department of Housing and           of Housing
                   SANS 204 Part III                            Municipal
                   Liaise and engage with developers            property
                   around affecting above changes in            management
                   housing delivery requirements                and housing
                   Determine the potential for planning         directorates
                   approval requirements at local               Building
                   government level to promote energy           standards
                   efficiency and green design principles,      association
                   and work with local government to            Working for
                   affect changes                               Energy
                   See section 4.3 on regulation and 4.5        Programme
                   using energy more efficiently

Retrofit 100%      Investigate feasible options for             Depart. of      2025
of current         retrofitting these homes, including          Public Works,   100%
RDP houses         insulated ceilings, efficient lighting and   national and    improvement
to become          cooking alternatives.                        provincial
energy             Develop funding model, including             Municipal
efficient          identification of funding sources (e.g.      property
                   programmatic CDM), and facilitate            management
                   funding procurement                          and housing
                   Work closely with municipalities in          directorate
                   establishing a mass retrofit                 Working for
                   programme                                    Energy
                   Department of Local Government and           programme
                   Housing to develop a retrofit
                   programme for provincial housing
                   Targets:
                   o 20% by 2014, 75% by 2020,
                        100% by 2025




                                   January 2010    page 61
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Develop energy efficient houses

All RDP            Explore the funding model to achieve       Government       2020
houses to          this output, and develop sustainable       financing,
have a SWH         business plan for mass rollout (not        CDM, private
                   based on full government subsidy).         financing
                   Business model to consider:                Working for
                   Large-scale programmatic CDM               Energy
                   methodology for low-income solar           programme
                   water heater funding source to be          Local
                   established                                municipalities
                   Explore potential collaboration with       to implement
                   the National Sustainable Housing
                   Facility (NSHF) for CDM potential
                   relating to low-cost housing based at
                   DoHS and DBSA
                   Providing low-interest financing
                   (development bank) for projects
                   Job creation and training for installers
                   See section 4.6 on sustainable energy
                   supply




                                  January 2010   page 62
                         GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Provide greater access to a range of safer energy options and reduce health
and safety dangers associated with current fuel use patterns

Safe and           Support national electrification           Eskom               2015
reliable           process, and actively engage with          Municipal
electrification    Eskom and local government around          electricity
of 100% of         achieving this output                      departments
houses in all      Discuss with Eskom and local
proclaimed         government measures to help with
settlements        illegal connection eradication

Implementatio      Develop a delivery mechanism and           National            2015
n of free basic    plan for the implementation of FBAE        Government,
alternative        in the province – including product        DLG & H
energy             sourcing, delivery and mass roll-out
                                                              Municipalities
(FBAE) & free      logistics
basic              Support municipalities with
electricity        implementation of delivery
(FBE)              mechanisms
                   Liaise with municipalities to ensure
                   more effective delivery of FBE

Switch to          In collaboration with relevant players     DLG & H             2015
safer, cleaner     (e.g. municipalities and research          Private financing
and more           initiatives) introduce a province-wide
                                                              Municipal
efficient          Safer Energy Plan to promote safer
                                                              funding
cooking and        fuels in informal, semi-formal and low-
heating            income households. The below should        Build capacity in
options and        be included:                               local CBOs and
fuels                                                         SMMEs to help
                   o Support the safe use of LPG or
                                                              undertake the
                         other forms of cleaner energy so
                                                              initiatives
                         as to replace hazardous paraffin
                         and coal use                         Insurance
                                                              Industry
                   o Promote efficient domestic energy
                                                              (medical aid)
                         use programmes such as basa
                         njengo magogo and hotbox roll
                         out
                   o Assess and promote appropriate,
                         accessible and cost effective low
                         smoke fuel options
                   o Monitor the health conditions and
                         safety improvements resulting
                         from the switch to cleaner
                         domestic fuels, and findings to be
                         presented at the annual energy
                         summit

Objective: Raise awareness on options available

Increased          See section 4.9 on empowering
awareness          consumers to reach the vision




                                  January 2010   page 63
                         GAUTENG INTEGRATED ENERGY STRATEGY




4.9 Empowering Citizens to Reach the Vision

   Intention statement
   Empowering citizens to reach the vision through knowledge
   Objectives
   To develop citizens that become agents of change in all aspects of
   energy efficiency
   Supporting government departments to lead by example

A key element of the strategy is supporting consumers to move towards the vision,
which will be done through building awareness and education. It is clear that the
nature of change being advocated through the strategy will not happen overnight, it is
a process of transition and critical to this transition is the building of awareness. As
stated earlier, this strategy is premised on the concept that people create change and
thus what is needed is a change in behaviour, a paradigm shift, in order to drive the
more systemic changes being called for. As such, province must develop and
implement an ongoing public awareness programme. The awareness programme
must be designed to target ordinary citizens, government employees and officials as
well as target schools and educational institutions.
Each element of the strategy calls for different behaviour patterns from all citizens.
Therefore for example:
        The transport strategy demands that people shift to using public transport
        rather than a private vehicle, or a car pool – whichever choice they make, it
        will impact on their lives as well as on the environment.
        Investing in CFLs will reduce the amount of electricity used.
        Using a BNM will reduce the amount of smoke by 50% and will use 20% less
        fuel and will have a direct impact on health and resources.
        Investing in a SWH will reduce electricity costs and electricity demand.
Knowledge of the effects of one’s actions on the environment, on energy
consumption, on personal and corporate budgets and on one’s health, will empower
people to make choices that will ultimately uphold the vision and objectives of the
strategy. The strategy requires clear leadership, institutional support and the
commitment, engagement and will of those it impacts on. For this to happen people
need to be informed and aware of all aspects of the strategy and of what sustainable
energy means as well as its link to climate change. In order to achieve this, Gauteng
province will promote sustainable energy behaviours through dissemination of
information all of which will be underpinned by the values of equity, a healthy
environment and prosperity for all.




                                 January 2010   page 64
                         GAUTENG INTEGRATED ENERGY STRATEGY




Empowering Citizens to Reach the Vision

Intention: That citizens are supported to reach the vision through knowledge


Objective: To develop citizens that become agents of change in all aspects of energy
efficiency


Output          Action                                           Who – Partners /       Initiation
                                                                 Stakeholders           date

Ongoing mass       Dynamic media and communication               All key stakeholders   2010
awareness          strategy to support campaigning, including    including: CBOs,
campaign           endorsements by well known                    Ward committees,
                   personalities, and businesses                 CDW, ratepayers
                   Provincial support for annual International   and civic
                   Earth Hour                                    associations
                   Hold a Provincial Energy Week
                   Identify potential energy champions within
                   communities who can be trained to take
                   forward relevant messages and campaign
                   amongst communities (including informal
                   settlements). Champions are to be
                   supported by Province or other suitable
                   organisations in a systematic way
                   Recognise homes and institutions who
                   have made visible energy efficiency and
                   renewable energy changes and publicise
                   their achievements

Media/             Media/information officer to be appointed     DLG & H                2010
Information        within the Energy Office, and to undertake    Media partners
officer            the following, amongst other tasks:
                                                                 Communications
                   o Coordinate and run the overall media        department
                        and awareness programme
                   o Publish relevant articles for local and
                        provincial papers regularly
                   o Develop a radio programme with
                        information and discussion on energy
                        issues
                   o Develop a website

Education and      Work with the education department for        Education              2012
schools            energy to be included in the curriculum       department
programme          Educate teachers and pupils around            Teachers Training
                   sustainable energy through talks and          institutes
                   programmes                                    Universities
                   Link with universities in developing
                   curricula on relevant energy matters




                                   January 2010     page 65
                        GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Supporting government departments to lead by example

Informed          Design and implement mass awareness          Energy Office   2010
government        programme for all government employees
departments       A select group of ward councillors to be
                  trained to be energy champions
                  Focus programmes for selected
                  government employees (at least one in
                  each department) to become energy
                  efficiency champions in their work place
                  and their communities
                  Develop training course for provincial and
                  municipal workers




                                  January 2010    page 66
                        GAUTENG INTEGRATED ENERGY STRATEGY




4.10 Institutional Support

  Intention Statement
  To create a centre or Energy Office from where all energy matters
  and actions will be managed within Gauteng Province.
  Objectives
  Drive the strategy through firmly institutionalising energy within
  provincial government and building effective partnerships with all
  spheres of government and other key stakeholders

The primary purpose of an Energy Centre or Office would be to offer institutional
support to the strategy by providing formal structures and co-ordination of its
implementation. It would be pivotal in providing leadership through effective
partnerships with all spheres of government, various departments, civil society, key
industry players and other significant stakeholders. Ultimately the office would drive
the implementation of the GIES through various links. The Office will also be
responsible for the initial roll-out of the actions in the 10 identified enablers,
including sourcing funds, building awareness and promoting sustainable energy in
the province.
The Energy Office must play a significant hands-on role in enabling alignment to take
place at provincial level as all related strategies or frameworks would be guided and
directed by the office. At municipal level it would be important also to achieve a
degree of alignment and this might not necessarily entail each and every municipality
developing an energy strategy but rather developing targets and plans that are in
accordance with overall provincial targets and strategy. It may take a consultative
role or it may be more active in supporting municipalities to achieve their goals. In
this respect it is suggested using and adapting the work already in place. The Energy
Office would also co-ordinate a meeting of energy practitioners /or champions from
municipal level and establishes a committee that oversees the work generally in
terms of both policy and implementation – in other words, providing monitoring,
evaluation and learning which are key to ongoing change. The office would also be
responsible for co-ordinating the collation of energy data for the province.
It is recommended that at the initial stage of the GIES, the provincial Energy Office
could have five units or work streams. They could include an energy efficiency and a
sustainable energy technical unit; a financing, funding and legislation unit; an
education, training and awareness-building unit; monitoring and evaluation unit and
data collection unit. The units will work across all sectors, namely industry and
commerce, government, transport, household and energy poverty, as well as energy
supply and distribution. They will all engage in developing capacity at municipal and
provincial levels within their areas of expertise. Each section head will have a clear
job description with key performance deliverables in the short and long term. This is
important in ensuring delivery and building accountability. As the energy office
assesses the energy environment, the strategy must be revised accordingly. Any
changes must be reported to senior government officials and be discussed with the
Energy Forum which will oversee and act as an advisory board for the office.. This
would assist in its function of seeing implementation and change as being its primary
focus rather than being constrained by rules and procedure. An addition to be
considered is the placement of an energy officer in each relevant provincial
department to link to the Energy Office. In the long term the energy office will be
equipped to deal with all aspects of energy and climate change in the province.




                                January 2010   page 67
                          GAUTENG INTEGRATED ENERGY STRATEGY




Institutional Support

Intention: To create a centre or Energy Office from where all energy matters and
actions will be managed within Gauteng Province.


Objective: Drive the strategy through firmly institutionalising energy within provincial
government and building effective partnerships with all spheres of government and
other key stakeholders


Output       Action                                           Who – Partners   Initiation
                                                              / Stakeholders   date

Energy           Establish energy office for initial          DLG & H          2010
Office           implementation of the strategy               Director
                 The office will have five work streams:
                 o Supporting implementation of EE and
                      RE
                 o Sourcing and informing on adequate
                      funding and financing and legislative
                      support
                 o Building awareness and education
                 o Monitoring the effectiveness of the
                      strategy and ensuring compliance
                      and enforcement
                 o Data collection to enable planning,
                      monitoring and enforcement
                 Energy Office to liaise with other
                 provincial departments to ensure
                 coordinated provincial leadership on
                 energy decisions
                 Ensure alignment with provincial
                 strategies and frameworks in particular
                 the forthcoming Climate Change Strategy
                 Energy Office to ensure adoption of GIES
                 by all relevant stakeholders in
                 government and private sector
                 Energy Office to host an annual Energy
                 Summit
                 Energy Office to maintain a strong link
                 and lobbying of National Government,
                 including DoE, DoHS, SANEDI and DST,
                 to facilitate the implementation of the
                 strategy
                 Energy Office to ensure demonstration
                 projects are identified and implemented
                 as soon as possible
                 Energy Office to produce an annual State
                 of Energy Report (see section 4.1)
                 See section 4.1 on leadership




                                   January 2010   page 68
                          GAUTENG INTEGRATED ENERGY STRATEGY




Objective: Drive the strategy through firmly institutionalising energy within provincial
government and building effective partnerships with all spheres of government and
other key stakeholders

Provincial       The Energy Office, under the advisement   Energy Office in
Energy           of senior government officials, will      DLG & H
Forum            coordinate the establishment of the       All government
                 Energy Forum                              departments,
                 See section 4.1 on leadership for more    business and
                 detail                                    civil society
                                                           partners




                                  January 2010   page 69
                                              GAUTENG INTEGRATED ENERGY STRATEGY




5. Way Forward
The GIES has been developed over a number of months in consultation with relevant
people from government, industry, commerce and other key sectors. The process
has been as inclusive as possible with various workshops being held, thus making it
a document that can be ‘owned’ by all stakeholders in the Province. It is imperative
as we move into the implementation phase that each department, municipality,
company and organization assess ways in which they can put the strategy into
operation by turning the vision into action, by bringing change and challenge to the
province. If Gauteng province is to move towards being a low carbon economy, if the
province is to bring significant energy efficiency into its planning, and operations, if
the province is to develop a more sustainable energy supply mix and at the same
time improve the welfare of particularly its poorest citizens, then it is calling for
fundamental shifts in thinking, in decision making and ultimately in the actions and
behaviour of every individual and organisation.
The magnitude of the challenge faced by the province is illustrated in figure 3 below,
where it is apparent that even by successfully implementing bold targets in energy
efficiency and introducing substantial renewable energy into the energy supply mix,
carbon reduction in the province will only remain in-line with national LTMS
requirements for approximately the next two decades. Further focus on this issue is
clearly necessary, and is likely to involve fundamental changes in the very nature of
the provincial economy, where energy intensive operations may have no place in the
future if they cannot reform their businesses to be low carbon.




                                                   Business as usual growth (no fundamental
                                                   change in approach to the future)

                          Carbon profile with current national efficiency
                          and renewable energy targets implemented in
                          the province


          Carbon profile with more stringent energy
          efficiency targets implemented


                                                                                              Carbon profile with stringent energy
                                                                                              efficiency and strong renewable energy
                                                                                              targets implemented




                                                                                                      Carbon profile required by the LTMS




    Figure: 3 Gauteng province carbon profile, showing the necessity of stringent targets to meet the
                                      requirements of the LTMS




                                                                  January 2010                page 70
                         GAUTENG INTEGRATED ENERGY STRATEGY




5.1 Priority actions for 2010 to implement the Gauteng
Integrated Energy Strategy

The Department of Local Government and Housing hosted stakeholder workshops in
August 2009 to develop a more detailed implementation action plan - which is
reflected in this document. The final government workshop further decided that an
interim Energy Support Group should be set up immediately to help in establishing
the formal institutions of the Energy Forum and Energy Office and to ensure that the
strategy starts immediately on an implementation programme for 2010.
In response to the need to move forward on the strategy immediately, a set of priority
actions were agreed upon at the final stakeholder workshop. Consequently DLG & H
is tasked with ensuring that the following is achieved before the end of 2010:
        Establish the Energy Office and decide on where it is situated.
        Develop a business plan for the Energy Office including clarifying an enabling
        legal framework.
        Develop an initial high level budget for the Energy Office.
        Develop a business plan for implementing the strategy, including the
        necessary financial framework.
        Identify priority projects and begin to work on them (this activity should start
        now and run in parallel to setting up the office).
        Provide a synthesis of energy and climate change plans at municipal level to
        facilitate coordination with such plans.
        Establish and set up an Energy Forum (or advisory board), including definition
        of their role and mandate.
        Organise a high level launch of the strategy.
The challenges in implementing such a comprehensive strategy are significant,
particularly in a provincial government that does not have a history of engaging
directly with the energy sector. The social, economic and environmental pressures
faced by the province, its cities and the country as a whole are such that bold actions
as specified in this document are called for. The strategy gives all the necessary
direction for successfully responding to these challenges, and not only moving the
province to a position where it has a sustainable and bright future, but setting a
precedent for a country which is still grappling with these issues so important for our
prosperity into the coming decades.




                                 January 2010   page 71
                          GAUTENG INTEGRATED ENERGY STRATEGY




6. Appendices
6.1 Gauteng Integrated Energy Targets against 2007
Actual Figures

Action                     Scenario       2014             2025       2055
Provincial Energy          BAU           816.1 PJ          995.5 PJ
Demand                                   (+25%)            (+52%)
2007 = 655.4 PJ
                           Strategy      746.7 PJ          812.3 PJ
                                         (+14%)            (+24%)

Provincial Electricity     BAU           221.4 PJ          282.3 PJ
Demand                                   (+31%)            (+67%)
2007 = 169.2 PJ
                           Strategy      204.7 PJ          236.8 PJ
                                         (+21%)            (+40%)

Transport Energy           BAU           291.7 PJ          371.7 PJ
Demand                                   (+26%)            (+60%)
2007 = 232.4 PJ
                           Strategy      272.2 PJ          315.7 PJ
                                         (+17%)            (+36%)

Residential Energy         BAU           118.3 PJ          142.9 PJ
Demand                                   (+11%)            (+34%)
2007 = 106.3 PJ
                           Strategy      104.8 PJ          93.8 PJ
                                         (-1%)             (-12%)

Residential Electricity    BAU           91.4 PJ           121.4 PJ
Demand                                   (+32%)            (+75%)
2007 = 69.5 PJ
                           Strategy      80.2 PJ           76.0 PJ
                                         (+15%)            (+9%)

Industrial Energy          BAU           363.9 PJ          424.0 PJ
Demand                                   (+27%)            (+48%)
2007 = 286.4 PJ
                           Strategy      333.3 PJ          360.4 PJ
                                         (+16%)            (+26%)

Industrial Electricity     BAU           75.1 PJ           87.5 PJ
Demand                                   (+14%)            (+16%)
2007 = 59.1 PJ
                           Strategy      67.6 PJ           74.4 PJ
                                         (+27%)            (+48%)




                                  January 2010   page 72
                          GAUTENG INTEGRATED ENERGY STRATEGY




Action                      Scenario       2014             2025       2055
Commercial Demand          BAU            36.3 PJ           49.1 PJ
2007 = 26.2 PJ                            (+39%)            (+87%)

                           Strategy       31.5 PJ           36.7 PJ
                                          (+20%)            (+40%)

Government Demand          BAU            5.8 PJ            7.9 PJ
2007 = 4.2 PJ                             (+39%)            (+87%)

                           Strategy       5.0 PJ            5.9 PJ
                                          (+20%)            (+40%)

Renewable Energy           BAU            1.1 PJ            1.1 PJ     1.1 PJ
Consumption                               (+10%)            (+10%)     (+10%)
2007 = 1.0 PJ
                           Strategy       16.2 PJ           41.3 PJ    189.9 PJ
                                          (+1373%)          (+3655%)   (+17164%)

                           LTMS           16.2 PJ           41.6 PJ    352.6 PJ
                                          (+1373%)          (+3682%)   (+31955%)

CO2 Emissions              BAU            196.5             244.5      401
(Million Tons CO2 eq.)                    (+28%)            (+59%)     (+161%)
2007 = 153.6
                           Strategy       171.2             177.5      214.7
                                          (+11%)            (+16%)     (+40%)

                           LTMS           171.2             177.1      110.8
                                          (+11%)            (+15%)     (-28%)
* Percentage Shown is increase (+) or decrease (-) from 2007 levels




                                   January 2010   page 73
                                   GAUTENG INTEGRATED ENERGY STRATEGY




6.2 Current Metro Targets

 Action                                          City     Target         Year        Source

Industry & Commerce Efficiency

Industry & Commerce Efficiency                   COJM    15%             2015       State of Energy Report,
                                                 M                                  City of Johannesburg,
                                                                                    May 2008

Industry & Mining Final Energy                   EMM     15%             2015       Energy and Climate
Demand Reduction                                                                    Change Strategy,
                                                                                    Ekurhuleni Metropolitan
                                                                                    Municipality, August
                                                                                    2006

Commercial and Public Building                   EMM     15%             2015       Energy and Climate
Sector Final Energy Demand                                                          Change Strategy,
Reduction                                                                           Ekurhuleni Metropolitan
                                                                                    Municipality, August
                                                                                    2006

Commercial efficient lighting: all               EMM     100%            2015       Energy and Climate
incandescent bulbs replaced with                                                    Change Strategy,
CFLs, and develop adequate CFL                                                      Ekurhuleni Metropolitan
disposal plan                                                                       Municipality, August
                                                                                    2006

All new buildings to comply with                 EMM     100%            2010       Energy and Climate
SAEDES 28 (national building                                                        Change Strategy,
energy efficiency standards)                                                        Ekurhuleni Metropolitan
                                                                                    Municipality, August
                                                                                    2006

Improvement in HVAC efficiency                   CTM     10%             2010       Energy Strategy,
                                                 M                                  Tshwane Metropolitan
                                                                                    Municipality, May 2006

Residential Efficiency

Households energy efficiency                     COJM    10%             2015       State of Energy Report,
                                                 M                                  City of Johannesburg,
                                                                                    May 2008

Reduction in domestic electricity                EMM     10%             2015       Energy and Climate
consumption – the following                                                         Change Strategy,
targets support this                                                                Ekurhuleni Metropolitan
                                                                                    Municipality, August
                                                                                    2006



28
     SAEDES was at the time the only relevant standard, but now the DME has produced other building energy
efficiency standards for the commercial sector




                                             January 2010      page 74
                              GAUTENG INTEGRATED ENERGY STRATEGY




Action                                   City     Target         Year   Source
CFL use in of households                EMM      100%            2025   Energy and Climate
                                                                        Change Strategy,
                                                                        Ekurhuleni Metropolitan
                                                                        Municipality, August
                                                                        2006

Develop by-law requiring solar          EMM      100%            2008   Energy and Climate
water heaters (SWH) and                                                 Change Strategy,
insulation in all new middle- to                                        Ekurhuleni Metropolitan
high-income housing                                                     Municipality, August
                                                                        2006

Households to have SWHs                 EMM      50%             2020   Energy and Climate
                                                                        Change Strategy,
                                                                        Ekurhuleni Metropolitan
                                                                        Municipality, August
                                                                        2006

Ensure that all low-income formal       EMM      50%             2010   Energy and Climate
housing has insulated ceilings –                                 2015   Change Strategy,
new housing by 2010, retrofit                                           Ekurhuleni Metropolitan
existing by 2015                                                        Municipality, August
                                                                        2006
Develop policy that promotes            EMM                      2008
green building of houses by 2008,
with a by-law in the future

Disseminate information on              EMM                      2007
efficient appliances, SWHs,
efficient building etc to all city
residents through electronic
media, city residents newsletter
and billing system annually,
starting in 2007 (immediately)

Council Operations

Public buildings energy efficiency      COJM     15%             2015   State of Energy Report,
                                        M                               City of Johannesburg,
                                                                        May 2008

LED signals for all traffic lights by   EMM      100%            2015   Energy and Climate
2015, 20% by 2010                                                       Change Strategy,
                                                                        Ekurhuleni Metropolitan
                                                                        Municipality, August
                                                                        2006

Reduce energy consumption in all        EMM      5%              2010   Energy and Climate
municipal operations                                                    Change Strategy,
                                                                        Ekurhuleni Metropolitan
                                                                        Municipality, August
                                                                        2006




                                        January 2010   page 75
                             GAUTENG INTEGRATED ENERGY STRATEGY




Action                                   City     Target         Year   Source
Reduction in energy demand in           CTM      15%             2012   Energy Strategy,
government buildings                    M                               Tshwane Metropolitan
                                                                        Municipality, May 2006

Renewable Energy

Electricity demand being met by         CTM      10%             2010   Energy Strategy,
local renewable sources                 M                               Tshwane Metropolitan
                                                                        Municipality, May 2006

Eligible landfills producing            CTM      50%             2010   Energy Strategy,
electricity cost-effectively from       M                               Tshwane Metropolitan
methane                                                                 Municipality, May 2006

Gas reticulation of middle-income       CTM      50%             2010   Energy Strategy,
areas                                   M                               Tshwane Metropolitan
                                                                        Municipality, May 2006

Homes have cleaner/RE energy            CTM      50%             2010   Energy Strategy,
supported through subsidies             M                               Tshwane Metropolitan
available from the DME                                                  Municipality, May 2006
Renewable Subsidy Office (in
accordance with their targets)

Diversify energy supply to include      EMM      10%             2020   Energy and Climate
renewable and cleaner energy                                            Change Strategy,
sources                                                                 Ekurhuleni Metropolitan
                                                                        Municipality, August
                                                                        2006

Agricultural Efficiency

Increased energy efficiency in          EMM      9%              2014   Energy and Climate
agriculture: reduction in electricity                                   Change Strategy,
consumption by (DME target)                                             Ekurhuleni Metropolitan
                                                                        Municipality, August
                                                                        2006

Carbon Emission Reduction

Quantity of CO2 emission                EMM      25%             2020   Energy and Climate
reduction                                                               Change Strategy,
                                                                        Ekurhuleni Metropolitan
                                                                        Municipality, August
                                                                        2006

Reduction in CO2 emissions in           EMM      10%             2015   Energy and Climate
the residential sector, in real                                         Change Strategy,
terms, by (resulting from RE and                                        Ekurhuleni Metropolitan
EE/DSM implementation in                                                Municipality, August
households)                                                             2006




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                             GAUTENG INTEGRATED ENERGY STRATEGY




Action                                   City     Target         Year   Source
Industry & Commerce carbon              COJM     15%             2015   State of Energy Report,
emission reduction (1,057,180           M                               City of Johannesburg,
tonnes p/a)                                                             May 2008

Domestic households emission            COJM     10%             2015   State of Energy Report,
reduction (597,396 tonnes p/a)          M                               City of Johannesburg,
                                                                        May 2008

Public buildings emission               COJM     15%             2015   State of Energy Report,
reductions (41,490 tonnes p/a)          M                               City of Johannesburg,
                                                                        May 2008

Transport emission reductions           COJM     9%              2015   State of Energy Report,
(547,891 tonnes p/a)                    M                               City of Johannesburg,
                                                                        May 2008

Transport

Transport energy efficiency             COJM     9%              2015   State of Energy Report,
                                        M                               City of Johannesburg,
                                                                        May 2008

Reduce the travel times and the          EMM      10-15%         2025   Energy and Climate
travel distances of commuters,                                          Change Strategy,
based upon the 2004 baseline                                            Ekurhuleni Metropolitan
information                                                             Municipality, August
                                                                        2006

Reduce, within the financial             EMM      10%            2025   Energy and Climate
means of the city, the kilometres                                       Change Strategy,
of the road network experiencing                                        Ekurhuleni Metropolitan
saturation levels higher than 90%,                                      Municipality, August
with 10% by 2025 (EGDS), based                                          2006
upon the 2004 baseline
information

Transport modal split shift: 10% of      EMM      10%            2020   Energy and Climate
private vehicles shift to rail/public                                   Change Strategy,
transport by 2020, based on the                                         Ekurhuleni Metropolitan
2004 baseline information                                               Municipality, August
                                                                        2006

Include dedicated bicycle lanes on       EMM      20%            2020   Energy and Climate
at least 20% of the roads                                               Change Strategy,
identified for possible bicycle                                         Ekurhuleni Metropolitan
lanes by 2020                                                           Municipality, August
Enforced bus-lanes and/or HOV                                           2006
or appropriate public transport
lanes on suitable roads by 2020

Adopt the national DME energy            EMM      9%             2014   Energy and Climate
efficiency target: Energy demand                                        Change Strategy,
in transport sector reduced by 9%                                       Ekurhuleni Metropolitan
by 2014                                                                 Municipality, August
                                                                        2006



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                            GAUTENG INTEGRATED ENERGY STRATEGY




Action                               City     Target         Year   Source
Municipal diesel fleet to operate    CTM      50%            2010   Energy Strategy,
on biofuels                          M                              Tshwane Metropolitan
                                                                    Municipality, May 2006

Vehicle flow improved                CTM      40%            2010   Energy Strategy,
Reduce the number of links in the    M                              Tshwane Metropolitan
road network with a                                                 Municipality, May 2006
volume/capacity ratio of greater
than 90%


 Key: COJMM: City of Johannesburg EMM: Ekurhuleni Metropolitan Municipality CTMM:
 City of Tshwane Metropolitan Municipality




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                         GAUTENG INTEGRATED ENERGY STRATEGY




7. Glossary of Terms
Amatola Green Power (AGP): is an electricity trading company operating
independently from ESKOM or Municipalities. The electricity which AGP supply is
generated from natural renewable energy (RE) sources in terms of the Department of
Minerals and Energy (DME) guidelines.
Biodiesel: a cleaner-burning diesel fuel made from natural, renewable sources such
as vegetable oils.
Biomass Energy: a renewable energy resource derived from the carbonaceous
waste.
Carbon footprint: a measure of the impact that human activities have on the
environment in terms of the amount of greenhouse gases produced, measured in
units of carbon dioxide.
CFL: a relatively efficient light-bulb, using about 25% of the power of an
incandescent light-bulb, for the same light output.
Co-generation: The simultaneous production by means of a single source of useful
energy.
Constitution: the Constitution of the Republic of South Africa.
Climate change: A statistically significant difference noted either in the mean state
of the climate or in its variability persisting for an extended period of time.
Demand-side management: the planning, implementation, and monitoring of utility
activities so as to encourage customers to modify their pattern of energy usage.
Energy: is a potential ability of a system to influence changes in other systems by
imparting either work (forced directional displacement) or heat (chaotic
displacement/motion of system microstructure). Basic unit of measurement is the
Joule (J).
Energy balance model: an analytical technique that attempts to account for all
energy coming in and going out of a system.
Energy audit: an inspection, survey and analysis of energy flows in a building,
process or system with the objective of understanding the energy dynamics of the
system under study. Typically an energy audit is conducted to seek opportunities to
reduce the amount of energy input into the system without negatively affecting the
output(s).
Energy efficiency: a reduction in the quantity of energy used per unit service
provided, e.g., a reduction in the quantity of motor fuel used per kilometre driven.
Energy conservation: a collective term for activities that reduce end-use demand
for energy by reducing the service demanded, e.g., a reduction in the demand for fuel
by reducing the number of kilometres driven, or reduction in the demand for natural
gas for space heating by lowering the thermostat.
EnerKey: stands for the focus of the project on “Energy as a key element of
sustainable transformation”. The EnerKey project, a South African–German
collaboration, aims to research and promote sustainable transformation of the urban
region of Gauteng, including the three municipalities of Johannesburg, Ekurhuleni
and Tshwane.
Feed-in-Tariff: is an incentive structure to encourage the adoption of renewable
energy through government legislation. The regional or national electricity utilities are
obligated to buy renewable electricity (electricity generated from renewable sources
such as solar photovoltaic, wind power, biomass, and geothermal power) at above
market rates set by the government.



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                         GAUTENG INTEGRATED ENERGY STRATEGY



Fossil fuels: they range from volatile materials with low carbon: hydrogen ratios like
methane, to liquid petroleum to non-volatile materials composed of almost pure
carbon, like anthracite coal.
Gautrain: is an 80-kilometre mass rapid transit railway system under construction in
Gauteng province, South Africa that will ultimately link Johannesburg, Pretoria, and
OR Tambo International Airport. It is hoped that this railway will relieve the traffic
congestion in the Johannesburg – Pretoria traffic corridor as well as offer commuters
a viable alternative to road transport, as Johannesburg has a limited public transport
infrastructure.
Gigajoules: is a 1,000,000,000 joules. It is a unit of energy.
Green Energy Certificate: a system in which generators of electricity from renewable
resources receive a certificate for a predetermined unit of energy produced; such
certificates have a market value and can be bought and sold, and thus provide a
financial incentive for the use of renewable energy.
Kyoto Protocol: an international agreement signed in 1997 at a convention in Kyoto,
Japan. It sets binding emissions reductions of greenhouse gases with an average
5.2% reduction below 1990 levels for industrial countries.
Load shedding: an electricity policy of turning off or disconnecting certain loads to
limit peak demand.
Millennium Development Goals: are eight international development goals that 189
United Nations member states and at least 23 international organisations have
agreed to achieve by the year 2015. They include reducing extreme poverty,
reducing child mortality rates, fighting disease epidemics such as AIDS, and
developing a global partnership for development.
Natural gas: is a gaseous fossil fuel consisting primarily of methane but including
significant quantities of ethane, propane, butane, and pentane—heavier
hydrocarbons removed prior to use as a consumer fuel —as well as carbon dioxide,
nitrogen, helium and hydrogen sulphide.
Net metering: the use of a single metre to measure how much power is consumed
and produced by a house with its own power source (such as solar or wind system).
Petajoules: is a 1,000,000,000 gigajoules. It is a unit of energy.
Renewable energy: any energy resource that is naturally regenerated over a short
time scale and either derived directly from solar energy (solar thermal,
photochemical, and photoelectric) indirectly from the sun (wind, hydropower, and
photosynthetic energy stored in biomass) or from other natural energy flows
(geothermal, tidal, wave, and current energy).
Ripple control: is a means whereby the local power authorities are able to
temporarily turn off large electrical loads in people’s homes to limit the impact of peak
demand for electricity.
Smart metering: generally refers to a type of advanced meter (usually an electrical
meter) that identifies consumption in more detail than a conventional meter, and
optionally communicates that information via some network back to the local utility for
monitoring and billing purposes.
Sustainability: the fact of being sustainable, preservation of the overall viability and
normal functioning of natural systems.




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GAUTENG INTEGRATED
 ENERGY STRATEGY


   STATUS QUO REPORT
              JUNE 2009




  Compiled by Sustainable Energy Africa
                             GAUTENG INTEGRATED ENERGY STRATEGY: STATUS QUO REPORT




Table of Contents
Executive Summary .............................................................................................................. 81

1.      INTRODUCTION ........................................................................................................... 84

2.      THE ENERGY STORY .................................................................................................. 86

     2.1      International Trends ................................................................................................ 86
     2.2      National Trends ...................................................................................................... 90
     2.3      Energy Poverty ....................................................................................................... 93
     2.4      Energy Supply ........................................................................................................ 94
     2.5      Private Sector and Civil Society Activities and Projects ......................................... 98
     2.6      Conclusion ............................................................................................................ 101
3.      ROLES AND RESPONSIBILITIES OF PROVINCES .................................................. 103

     3.1.     Provinces energy mandate ................................................................................... 103
     3.2.     Co-operative Governance within the South African context ................................. 105
     3.3      Overarching roles of leadership, facilitation and communication ......................... 105
     3.4      Suitable roles of Provincial Government .............................................................. 106
4       PROVINCIAL TRENDS, PLANS AND STRATEGIES ................................................. 108

     4.1      Overview of Gauteng Province ............................................................................. 108
     4.2      Summary of Provincial Policies ............................................................................ 109
     4.3      Conclusion ............................................................................................................ 116
5       MUNICIPALITIES TRENDS, PLANS AND STRATEGIES .......................................... 119

     5.1      The Municipal Picture ........................................................................................... 120
     5.2      Conclusion ............................................................................................................ 128
6       BASIC DRAFT ENERGY PROFILE OF GAUTENG PROVINCE ................................ 130

     6.1 Data acquisition ......................................................................................................... 131
     6.2 Energy Balance ......................................................................................................... 132
     6.3 Energy Demand by Sector ........................................................................................ 132
     6.4 Summary ................................................................................................................... 135
7.      DRAFT VISION AND BROAD STRATEGIC OUTLINE ............................................... 136

     7.1      Draft Vision ........................................................................................................... 136
     7.2      Key Strategic Options ........................................................................................... 137
     7.3      Potential Roles of Provincial Government ............................................................ 139

                                                                    i 
                           GAUTENG INTEGRATED ENERGY STRATEGY: STATUS QUO REPORT



     7.4     Concluding Remarks ............................................................................................ 142
8.     APPENDICES .............................................................................................................. 143

     8.1     Abbreviations, acronyms and glossary of terms ................................................... 143
     8.2     Glossary of Terms: ............................................................................................... 145
     8.3     Key Role Players .................................................................................................. 148




Table of Figures
Figure 1: Energy Demand by Sector ..................................................................................... 82

Figure 2: Primary National Energy Supply, 2004, (Source: DME, 2005) .............................. 97

Figure 3: Total National Final Energy Consumption by Carrier 2004, (Source: The Digest of
SA Energy Statistics 2005, DME) ......................................................................................... 97

Figure 4 Final National Sectoral Consumption of Energy 2004, – (Source: The Digest of SA
Energy Statistics 2005, DME) ............................................................................................... 98

Figure 5: The role of provincial government in relation to other spheres of government .... 104

Figure 6: Energy demand by sector .................................................................................... 130

Figure 7: Energy demand by energy carrier ....................................................................... 131




List of Tables
Table 1:Energy balance for GautengProvince (PJ) ............................................................ 132

Table 2: Residential energy consumption by income group and end-use [PJ] ................... 133

Table 3: Residential energy consumption by income group and energy carrier [PJ] .......... 133

Table 4: Industrial energy consumption by energy carrier [PJ] ........................................... 133

Table 5: Total energy use in the Commercial sector by end-use[PJ] ................................. 134

Table 6: Passenger transport energy use by sub-sector and energy carrier [PJ] ............... 134

Table 7: Freight transport energy use by sub-sector and energy carrier [PJ] ..................... 134




                                                                 ii 
                                     GAUTENG INTEGRATED ENERGY STRATEGY: STATUS QUO REPORT




Executive Summary
Gauteng Provincial Government has decided to develop an Integrated Energy Strategy and
Implementation Plan. This arises largely from the electricity crises and the need to develop clear
Provincial responses. In addition there is recognition of the long term crisis facing not only South
Africa but the world in terms of climate change and its effects on the environment.

The Gauteng Integrated Energy Strategy will be conducted in two phases. The first will result in an
integrated energy strategy for the Province. The second phase will focus on implementation and
consider the capacity needs required for implementation to take place. The purpose of this report is
to provide a status quo picture of energy in Gauteng Province culminating in pointers towards a
strategy. The strategy that is developed needs to be based on what is happening within Gauteng
currently as well as an understanding of the implications of energy for the region. It is important that
this document is seen as an introduction to stakeholder consultations in developing the strategy as
strategies are best developed by those involved in their implementation rather than imposed by
outside ‘experts’.

The document begins with an overview of what we understand by energy, the extent to which it is
critical for our survival and how energy cuts across all sectors and areas of our life. We require
energy to provide us with food, we need energy for electricity, we require energy for transport, for our
water supplies, for the production of goods and much more. Access to energy is not a ‘given’ and for
a large portion of the world’s population and more specifically in South Africa, access is limited. This
might be for financial reasons or simply having no access to the grid. Thus poverty issues have a
direct relation to energy access. This is of importance for South Africa and therefore for Gauteng
Province, given the legacy of apartheid and continued levels of poverty and inequality within our
country.

The report moves on to consider energy and the environment and looks at some of the international
trends. It is clear that there is increasing acceptance that globally we sit with an enormous problem,
that climate change is upon us and if we do not act and change the current trajectory of green house
gas emissions, the results will be catastrophic. Recent documents point to the fact that even though
the cost of implementing renewable energy options and changing the nature of production to reduce
emissions is extremely high, the long term costs of not acting will be substantially higher. In other
words to not act will cost the world economy far more than to invest in clean and renewable options.
The Stern Review is clear that action can indeed alter the trajectory we are on in terms of global
warming and the effects on our world, and that mitigation should be seen as an investment, both
economically and developmentally. “Climate change presents a unique challenge for economics: it is
the greatest widest-ranging market failure ever seen”. 1 The review states that global emissions
should be reduced by 50% by 2050.

From the international perspective the report moves on to look at the South African national picture.
Our energy is highly fossil fuel intensive and because we have abundant access to cheap coal our
electricity has been historically one of the cheapest to produce in the world. However because it is
generated from coal and because our industries have developed in an energy intensive way, South
Africa is a much higher emitter of greenhouse gas per capita than most developing countries and
equal to much of the developed global north. In the late 1980s and early 1990s our supply of
electricity exceeded demand. As a result some power stations were mothballed. However, since
1994 there has been a sharp growth in demand of electricity coming from a growth in the economy.
This, coupled with a successful electrification programme has resulted in a supply shortage.
                                                            
1
     The Stern Review: The Economics of Climate Change (November 2006) 

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The electricity crisis has paved the way for action not only in terms of looking for alternatives in
electricity generation but also more broadly in terms of energy supply and demand and the effects of
using fossil fuels on our planet. National government has developed many strategies, policies and
frameworks dealing with issues of climate change, energy, renewable energy and energy efficiency
amongst others and some of the key documents are outlined in Section 2.

Section 3 sets out to define the roles of province and it is shown that province can play a significant
role in taking the complex issues of energy forward despite not having a clear energy mandate
according to the South African constitution. Its critical position is to facilitate the implementation of
national policy at the local level which potentially gives province an implementing mandate. Section 4
and Section 5 examine broadly what is happening within the province at both provincial and municipal
levels. It is clear that despite the wealth of projects underway and many strategies and policies being
developed there is a lack of coordination and leadership particularly in terms of taking the issues
forward and developing a comprehensive response that results in more substantial changes being
made.

The report provides an initial energy demand profile of the Gauteng region by district based on limited
data sources. It presents an energy balance as well as by sector energy consumption by carrier and
sub-sectors. Overall we see that the largest energy consumption comes from the industrial sector
accounting for 44% of the total energy use, with transport and residential sectors using 35% and 16%
of total demand respectively




                                 Figure 1: Energy Demand by Sector

The final chapter considers some options for the strategy. The strategy needs ultimately to be framed
by national and provincial policies already in place and should give guidance and direction to the
implementation of these policies at municipal level. It should aim at creating a common approach to
dealing with energy challenges and broadly provide the foundation for both the short and long term
trajectory of Province.

The strategy will focus specifically on the following areas:


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                    GAUTENG INTEGRATED ENERGY STRATEGY: STATUS QUO REPORT



   •   Energy efficiency measures – covering all sectors
   •   Developing renewable energy resources – clarifying feasibility of different resources,
       promoting mass roll out of SWHs, and viable and affordable renewable energies relevant to
       Gauteng
   •   Addressing energy poverty
   •   Transport – building on what has been initiated, growth of integrated public transport within
       cities
   •   Education, awareness and communication at all levels
   •   Institutional arrangements to ensure effective implementation of the strategy

   •   Monitoring and evaluation and data management

Finally the strategy should provide a thread and leadership for all work taking place within the
Province, thus bringing cohesion and uniformity to sustainable energy developments and projects.

Overall, the provincial energy profile is an unsustainable one, with heavy dependence on energy
sources that are expected to increase steeply in price or may be constrained in terms of global
warming emissions. The provincial prioritisation of growth, poverty and unemployment, amongst
others, will need a move to a more sustainable and low carbon profile if these objectives are to be
realised.




                                     March 2009      page 83
                   GAUTENG INTEGRATED ENERGY STRATEGY: STATUS QUO REPORT




1. INTRODUCTION
Gauteng Provincial Government (GPG) has identified a need for the province to shift to a
more sustainable energy profile. The decision to develop a strategy arose from the
electricity shortages facing the country as well as issues relating to long term energy security
and the environment. GPG has identified the following objectives:

   1. To develop an Integrated Energy Strategy and Implementation Plan for Gauteng
      Province.
   2. To involve stakeholders in Strategy and Implementation Plan development
   3. To clarify institutional requirements for Strategy implementation
   4. To build capacity in Provincial Government to manage and oversee the successful
      implementation of the strategy

In pursuing this goal the work has been divided into two phases. The first phase involves
developing the integrated energy strategy and the second will focus on an implementation
framework and plan. As part of developing the strategy it is necessary to first understand
what is meant by energy, to collate a basic profile of how energy is used in the province, to
develop a picture of the current situation in terms of international and national trends as well
as what initiatives have already been undertaken at provincial and municipal levels. This
report is thus an attempt to provide such a picture which in turn will influence and direct the
emerging strategy as well as provide a platform for stakeholder discussions and input.

The 1996 Constitution of South Africa states clearly that the people of South Africa have a
right to an environment that is not harmful to their health or well-being. However, it further
makes clear that issues of energy including renewable energy fall into the arena of national
government. This has implications for Gauteng Province as constitutionally provinces do not
have a clear mandate with regard to energy issues. Yet some provinces including Gauteng
have decided to embark on developing an energy strategy. Much of this move has to do
with the enormity of the energy challenges and the need to implement changes at all
spheres of government. National Government, it is true, needs to give the overall mandate
and as will be shown below, has developed many documents to support such a move. The
decision by Gauteng Province to develop a strategy paves a way for National Government’s
plans to be implemented in a structured and systematic manner. Such a move has bearing
on the overall roles and responsibilities of Province in relation to national and local
government. This is discussed in more detail later.

The key objective of the work is to guide what should be done with regard to the
environmental effects of climate change, the resultant problems related to energy security
and to provide an umbrella to the many initiatives that have already been introduced both at
a provincial and local level and those planned for the future. The development of an
integrated strategy should be collaborative and thus owned by provincial and local
government, civil society and the private sector - a strategy which will be guided by the
principles of sustainable development and poverty alleviation and will harness and promote
energy efficiency and renewable energy resources.



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                   GAUTENG INTEGRATED ENERGY STRATEGY: STATUS QUO REPORT



The Department of Local Government and Housing has been given the mandate by Gauteng
Province to develop an integrated energy strategy and implementation plan, including the
building of capacity. Their intention is to introduce an Energy Office once the strategy is in
place that will inter alia support and facilitate the implementation of the strategy.

The primary purpose of this report is to provide a picture of what is happening internationally,
nationally and within Gauteng Province in such a way as to enable the reader to see what
the key strategic options are. The report will begin with an overview of energy including
international and national trends in Section 2. Section 3 will outline the energy roles and
responsibilities of Province in relation to national and local government. This is important in
terms of the nature of the strategy and the potential effectiveness of Province. Section 4 and
Section 5 will provide details of what is happening within Gauteng Province both at provincial
and municipal level. Section 6 will give an initial energy picture of Gauteng through an
analysis of data available at this stage. The final chapter will use this information to give
pointers to the strategy and establish a draft vision to contextualise the strategy. This will
ultimately inform the next step in this phase of the work: developing an integrated energy
strategy.




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                                     GAUTENG INTEGRATED ENERGY STRATEGY: STATUS QUO REPORT




2. THE ENERGY STORY
Energy underpins all aspects of life: our dependence on different forms of energy to run our
lives and our ability to live, the food we consume and the energy we use in the course of our
daily lives. Energy is defined as “the ability or power to work or make an effort and the
capacity for vigorous activity” 2 . So why is energy so important? Since the advent of the
industrial revolution our dependence on fossil fuels in the production of energy for work, for
leisure, for transport, for technology and for the production of food, has increased
exponentially. Energy is critical to sustainable development, to poverty alleviation and to
economic development as well as environmental sustainability, and as such is complex and
cuts across a range of fields.

Increasingly cities have become the major hub of where people live – more and more people
globally are moving from rural areas to the cities. Cities consume the bulk of the world’s
resources and yet they occupy a small percentage of land space. It is expected that the
world’s population will grow to 9 billion by 2050 and that most of this growth will be in cities.
This movement and growth of cities is happening faster in developing countries than the
developed north. In the past when energy was discussed the focus tended to be on
electricity. In fact in South Africa prior to 1999 there was almost no talk of energy at city
level. The first city energy strategy was developed for the City of Cape Town as late as
2003. Today six South African cities have energy strategies, namely Cape Town, Tshwane,
Ekurhuleni, eThekwini, Nelson Mandela Bay and Hessequa municipalities. Energy over the
years has become a global issue particularly around security of supply and impacts on the
environment. The recent volatility in the price of oil and the fact that we are reaching peak
oil 3 has impacted on all aspects of society, especially the skyrocketing food prices, transport
costs, and general cost of living. In this chapter we will be looking at the global and national
energy picture as well as a general understanding of energy poverty and energy and the
environment.


2.1           International Trends
Three of the major challenges facing the global community are climate change, poverty and
development.

              “An overwhelming consensus of scientific opinion now agrees that climate
              change is happening, is caused in large part by human activities (such as
              burning fossil fuels), and if left unchecked will have disastrous consequences.
              Furthermore, there is solid scientific evidence that we should act now. This is
              reflected in the conclusions, published in 2007, of the Intergovernmental Panel
              on Climate Change (IPCC), a UN institution of more than 1,000 scientists
              providing advice to policy makers." 4

                                                            
2
    Oxford Dictionary, 2000
3
  Peak oil is the “moment when half of what can be pumped from the earth has been used. It is also regarded as
the point of maximum production”. It is believed that at the peak, the production of oil will decrease resulting in a
higher demand than supply. [Source: the groundWork Report 2007]
4
    Energy Revolution: A sustainable global energy outlook, Greenpeace International &EREC, October 2008
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                                     GAUTENG INTEGRATED ENERGY STRATEGY: STATUS QUO REPORT



The world today is highly dependent on fossil fuels for energy largely in the production of
electricity and fuel for transport. We know that the global population is increasing and we
live in a world characterized by consumption, where economic success is measured by
levels of consumption. This constant striving for more is resulting in an unsustainable future
– a future with increasing levels of greenhouse gas emissions and rising global
temperatures, which ultimately puts pressure on food and water resources. There is simply
not sufficient space and resources on earth to keep up with the demands we are making and
will continue to make at the current pace of consumption coupled with the growth in
population. Martin Rees states that the “world could not sustain its present population if
everyone lived like present-day Americans or Europeans.” 5 The 2006 Stern Review 6 claims
that urgent global responses are required immediately and that “the benefits of strong and
early action outweigh the economic costs of not acting”. He argues that business as usual
will result in a loss of global GDP at a rate of 5% per year from now onwards and that this
figure is conservative. If changes are made the figure could be reduced to 1%. It is critical
that countries around the world invest in mitigation and adaptation – long term goals and
frameworks must be agreed that “build on mutually reinforcing approaches at national,
regional and international levels”. This statement is important and has bearing on the role
that Province can play in developing a strategy that is mutually reinforcing and strongly
based on action, and emphasises an appropriate relationship between national, provincial
and local government spheres, given as stated above that Province has no direct mandate in
the energy arena.

The Stern Review, as do many other recent studies, goes on to show that action can indeed
alter the trajectory of global warming and its effects on our world, and that mitigation should
be seen as an investment, both economically and developmentally. “Climate change
presents a unique challenge for economics: it is the greatest widest-ranging market failure
ever seen”. 7 The review states that global emissions should be reduced by 50% by 2050.

Affects of climate change globally have been well documented and include rising sea levels
due to melting glaciers, extreme weather conditions, extinction of natural ecosystems such
as coral reefs, forests and wetlands and extinction of species. 8 Recent events have
demonstrated that South Africa is also not immune to global changes in the energy sector –
such as shortages of oil, volatile oil prices and the imperative to move towards cleaner fuels.
In addition South Africa has begun to see changes in weather patterns with flooding affecting
many regions as well as increased fires during the summer periods and ultimately both
affecting agricultural production. 9 The concerns of the impact of climate change in South
Africa led to the hosting of two important national summits in March 2009– one on renewable
energy and one on climate change. This is a demonstration of the government’s commitment
to bringing all stakeholders together to discuss how South Africa should deal with the
impacts of climate change and the changing global energy sector.

                                                            
5
    Martin Rees, Science: The Coming Century, article in The New York Review of Books, November 20, 2008
6
    The Stern Review: The Economics of Climate Change (November 2006)
7
    The Stern Review: The Economics of Climate Change (November 2006)
8
    Energy Revolution: A sustainable global energy outlook, Greenpeace International &EREC, October 2008
9
 State of Energy in South African Cities, 2006, Setting a Baseline, Compiled by Sustainable Energy Africa in
partnership with cities and city stakeholders
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The former Department of Environmental Affairs and Tourism and the Department of
Science and Technology hosted a Climate Change Summit during the first week in March
2009. The main purpose of the Summit was to provide stakeholders with an update on
recent climate change research, initiatives and interventions. In addition, the Summit was
aimed at providing a platform for all stakeholders to discuss and agree on the framework for
a National Climate Change Response Policy and to highlight South Africa’s responsibility to
affecting change.

An important issue that arose – was the realisation that responding to present energy use is
key to changing the present trajectory. Former President Kgalema Motlanthe said “ for us in
South Africa, the climate change challenge is not only one of climate stabilisation, but it is
also about combating poverty and promoting healthy livelihoods, energy security and
sustainable development“.

According to Winkler et al (2007), atmospheric concentrations of greenhouse gases such
as carbon dioxide have increased by 35% since the beginning of the industrial revolution.
These emissions are mainly attributed to the emissions from generation and consumption of
energy. Much of the work around climate change has focused on energy. South Africa has
placed emphasis on developing the renewable energy sector in the country. The renewable
energy summit held by the former Department of Minerals and Energy at the end of March
2009 was thus aimed at reviewing the White Paper on Renewable Energy that was
approved by Cabinet back in 2003 and exploring the obstacles and drivers to ensure the
growth of renewable energy technologies in South Africa.

The Kyoto Protocol 10 is the main global treaty to tackle global warming. Although most of
the global carbon emissions are produced by developed countries (who collectively
contributed roughly 40 percent of global carbon emissions, and are responsible for more
than 60 percent of the total carbon dioxide that fossil fuel combustion has added to the
atmosphere in 2006”) 11, emissions from developing countries are rapidly rising. The first
phase of the treaty binds only 37 of the developed nations to curb emissions from 2008.
However, the fact is that the energy needs of poor countries such as India, Brazil and China
have accelerated in recent years as they entered the most energy-intensive stages of their
development—building industries and infrastructure at an astonishing pace 12 . China for
example has emissions rising at 10 percent a year – which is ten times the rate of industrial
nations. South Africa is also a high emitter producing greenhouse gas emissions on a par
with European nations on a per capita basis. There are talks in process to hold all countries
to greater commitments from 2013. A more recent meeting was the 14th annual Conference
of the Parties (COP 14) held in Poznan, Poland in December 2008. According to reports in
the Cape Times the meeting was not that successful in moving forward due to some
tensions in terms of agreements and on what basis a country is deemed to be developing or




                                                            
10
  The Kyoto Protocol was adopted at a Conference of the Parties to the UN Framework Convention on Climate
Change in Kyoto, Japan in December 1997.
11
     State of the World – Innovations for a sustainable economy, 2008
12
     Ibid.
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developed. 13    Despite these tensions there is a consensus that globally our way of
operating has to shift.

A positive development that may reduce the tensions is the climate change position
purported by the newly elected president of the United States of America. In what is a drastic
change from the past, the new president recently stated that “the United States must lead
the world on renewable energy and pressed Congress to set greenhouse gas limits deemed
crucial for the success of global talks on climate change”. The new administration has placed
energy reform high on the country’s priority list. The President has stated that the days of a
slow U.S. response to global climate talks were over.

This has been met with enthusiasm and renewed vigour as the world prepared for the
International Climate Change Conference held in Copenhagen in December 2009.
Apparently, U.S. negotiators are preparing proposals aimed at agreeing to a pact to succeed
the Kyoto Protocol, which sets limits on greenhouse gas emissions. This is a far cry from the
previous position of the U.S. in which the Kyoto Protocol was not even signed and could be
a positive move for all signatory states.

Developing countries argue that they are faced with a difficult challenge. On the one hand
countries have to fast track development to provide adequate transport, power, communica-
tion networks, water, sanitation and other infrastructure services as set out in the Millennium
Development Goals (MDGs). On the other hand these countries have to deal with severe
constraints on economic growth, trade and poverty reduction. Developing countries tend to
be the worst affected by the impact of climate change in terms of poverty and access to vital
resources - there will be increased risk of hunger, water shortages and spread of malaria
and other diseases. The UN Secretary General has been reported as saying that Africa is
falling behind the MDG goals to halve poverty by 2015 due to rising food prices, oil prices
and climate change. Interestingly the rich developed nations have the resources to assist
the world’s poorest nations and according to Rees, 2008 “the annual amount of foreign aid
from most countries, including the US, is far below the UN’s target of 0.7% of GNP that was
set out in the Millennium Declaration in 2000” 14 and he further states that this track record
does not bode well in terms of reducing emissions.

With respect to electricity — an essential input for economic growth and achieving MDG 1 15
— “about 35 countries in Africa are currently experiencing a power crisis with frequent
supply interruptions. The 700 million people in sub-Saharan Africa (excluding South Africa)
share a combined generation capacity equivalent to that of Argentina, a country of less than
40 million people. As a result, only one in four Africans has access to electricity and this
figure is barely 10 per cent in rural areas.” 16

The MDG Africa Steering Group estimates that US$52.2 billion per year will be required in
public and private investment finance to resolve the critical infrastructure bottlenecks in

                                                            
13
     The Cape Times, Dec 15th 2008, articles by Melanie Gosling and Jan Glazewski
14
     Martin Rees, Science: The Coming Century, article in The New York Review of Books, November 20, 2008
15
     MDG 1, Eradicate extreme poverty and hunger
16
     Recommendations of the MDG Africa Steering Group, June 2008
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Africa. About half of the financing will need to go towards energy. The MDG Africa Steering
Group has made a number of key recommendations that include:

“Launch[ing] a “New Deal” for the energy sector to plan and build transformational
generation and transmission facilities across Africa, and improve the performance of power
utilities. Clean energy, in particular hydro-power, will need to play an important role in
Africa’s power sector development and can help to contain greenhouse gas emissions.
Additional investments are required in decentralized energy systems to increase access to
fuels for domestic cooking and heating, motive power and off-grid electricity. Overall, ODA
for energy needs to increase to US$11.5 billion per year.”

Energy security is at the top of international policy developments and to a large extent this
has been driven by the issue of peak oil, rising oil costs and the knowledge that coal and gas
resources are ultimately also finite. The way forward being promoted at an international
level is through developing renewable energy and promoting energy efficiency. Clear
developments point to strong policies at government level as well as clear frameworks and
implementation plans.


2.2        National Trends
South Africa’s main energy source has been coal, which has resulted in the economy being
very dependent on fossil fuels. South Africa also has significant reserves of uranium and
small reserves of oil and gas. Coal dominates energy supply, with the second biggest
energy carrier being imported crude oil essential for the supply of liquid fuels, mainly for
transportation. A reasonable amount of nuclear, hydropower and gas also contributes to the
mix of energy supply in the country.

Three quarters of South Africa’s energy comes from predominantly coal generated electricity
and coal-derived synthetic fuels. It has historically been cheap to produce because of our
cheap coal and as a result South Africa has been one of the highest emitters of greenhouse
gas per capita in the world. The apartheid government focused on security of supply due to
increasing sanctions.       During the 1970s the government placed huge emphasis in
electricity generation which as stated above was mostly coal fired. This was in response to
high economic growth. By the 80s and 90s economic growth had begun to decline however
electricity supply remained constant. This meant that there was an excess of capacity and
is the reason why some of the older plants were mothballed. Because of the low cost and
massive supply of coal and cheap cost of electricity South African industries became energy
intensive. Since the 1990s there has been a growth in electricity demand without a requisite
growth in capacity development which has in part led to the current electricity crisis.


The South African government has been looking into alternative sources of energy for a
number of years and accepts the view that “renewable energy offers our planet a chance to
reduce carbon emissions, clean the air, and put our civilization on a more sustainable
footing. It also offers countries around the world the chance to improve their energy security
and spur economic development.” 17 It is this view that has encouraged the South African
                                                            
17
     Renewables 2007 – Global report

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government to start considering appropriate responses to the energy challenges more
seriously.
Even with its wealth of natural resources the country still has significant challenges linked to
poor transport infrastructure, air pollution from dirty coal and millions of people still not
connected to electricity. Since 1994 South Africa has given momentum to changing and
developing legislation in the energy sector as well as identified important socio-economic
development projects to respond to the inequalities of the past. According to an unpublished
report by Hilton Trollip 18 ,” South African National Energy Policy related to energy efficiency
and renewable energy is extensive and comprehensive.” At the time of writing he noted that
there were 25 pieces of national legislation, 5 substantial policy documents, 9 national
strategies and plans, 3 documents of national regulations, and a number of provincial and
local government documents covering this field.

Some of the key documents to have emerged include:

White Paper on Energy Policy (1998)

This document outlined five key objectives: to increase access to affordable energy services
particularly to meet the basic needs of the poor, to improve energy governance, to stimulate
economic development, to manage energy related environmental impacts particularly
focusing on poor households and to secure supply through diversity. In 1998, at the time
this paper came out, 40% of all homes and many schools and clinics in South Africa were
without access to electricity supply. This was an important document and in many respects
set the scene for some of the policies and strategies that followed.

White Paper on Renewable Energy Policy (2003)

This paper sets out the government’s vision and objectives for promoting and implementing
renewable energy in South Africa. It states clearly that South Africa has relied on cheap
coal to meet its energy demands and that given the green house gas emissions from the use
of fossil fuels and South Africa’s ratification of the UNFCCC and Kyoto Protocol it is
imperative for government to establish a renewable industry through a phased and flexible
strategy which builds on partnerships. The white paper states that that South Africa should
produce 10 000 GWh (0.8 Mtoe) of renewable energy by 2013. It also mentions that South
Africa has abundant renewable energy resources and to enable the take up of these
resources government must introduce fiscal and financial support mechanisms and legal
instruments, develop institutional infrastructure such as regional electricity distributors
(REDs), develop technology and build awareness and capacity. The White Paper is
presently under review.

Energy Efficiency Strategy (2005)

The objective of this strategy is to strive for affordable energy and to minimise the “negative
effects of energy usage on human health and the environment through sustainable energy
                                                            
18
  Hilton Trollip, Western Cape Sustainable Energy Strategy: Moving to Implementation, Paper prepared for
Sustainable Energy Africa, April 2008

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development and efficient practices”. The strategy sets a target of 12% energy savings by
2015. The Department of Energy is currently reviewing this document.

The Electricity Regulation Act 2006

This Act was amended in 2008 and provides for enforcement of energy efficiency measures
with respect to lighting, water heating and space heating/cooling and smart metering as well
as ensures that incentives and penalties are legislated. These energy efficiency applications
included in the Act are largely the responsibility of municipalities to enforce and/or implement
by 2012.

The Electricity Distribution Industry Restructuring Bill 2003

The Electricity Distribution Industry (EDI) Restructuring Bill provides for the establishment of
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 proposed establishment of six Regional Electricity Distributors (in the Metro
areas) was an attempt by government to improve the access and reliability of electricity to
communities. Later the feasibility of a seventh national Regional Electricity Distributor (RED)
was also investigated. The announcement of the REDs was met with mixed views,
especially amongst municipalities. The main concern revolves around how the REDs will
affect local governments’ finances as it is believed that municipalities are likely to lose
revenues as well as assets. As yet, the uncertainty has limited the progress on the
development of the REDs.

National Energy Bill (2008)

The main purpose of this Bill was to ensure an uninterrupted and diverse supply of energy
and facilitate effective management of energy demand. It refers to the promotion of energy
research and standards, ensure data collection, optimising supply and demand, and
ensuring the health and safety of all people and the environment. It proposes that the
Minister must annually review and publish an integrated energy plan and set up the South
African National Energy Development Institute focusing on energy efficiency and energy
research and development.

Long Term Mitigation Scenarios (2008)

The Long Term Mitigation Scenarios (LTMS) was developed by the Department of
Environmental Affairs & Tourism and has been approved by cabinet. It outlines three key
scenarios – growth without constraint, i.e. business as usual which they clearly state is
unacceptable, current development paths, which will not be sufficient to create change, and
required by science which would provide the shift needed to arrest the catastrophic effects of
climate change. The LTMS suggests that by 2050 there would be a huge gap of 1300Mt
CO2 between growth without constraint and required by science scenarios. The document
argues that greenhouse gas emissions should plateau by 2020 and decline by 2030. It
identifies possible solutions which includes extensive energy efficiency measures, a split
between nuclear and renewable energy production by 2050 as well as the introduction of a
carbon tax.
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2.3           Energy Poverty
Energy is a prerequisite to social and economic development and so a lack of access to
energy contributes to poverty and deprivation. A quarter of the world’s population has no
access to electricity and most of these people live in South Asia and sub-Saharan Africa.
Current figures indicate that 2.4 billion people rely on traditional biomass – wood, agriculture
residues and dung - for cooking and heating which accounts for more than 80% of their
household energy needs. Energy poverty is a global problem but what makes South Africa
unique is that we are not only a developing nation but we also sit with the legacy of
apartheid. In South Africa many people in informal settlements use candles or paraffin
which are not safe and over the years have led to many fires resulting in homelessness and
death. Furthermore the burning of biomass (such as firewood and coal) for cooking or
heating as well as the use of paraffin has resulted in high levels of indoor air pollution

It is well documented that the poor tend to spend proportionally more of their income on
energy requirements than middle or high-income households, and also bear a
disproportionate share of health and inconvenience costs associated with their household
energy needs. In South Africa low-income electrified households spend as much as 10% to
15% of their income on energy, whilst non-electrified spend 15% to 25%. This indicates that
the poor are spending between three to eight times more on energy relative to middle-high
income households who spend a mere 3% of monthly income on energy 19 . Many South
Africans use paraffin for cooking, lighting and heating. This leads to problems associated
with indoor pollution, ill health, high fire risk, children being poisoned from accidentally
drinking paraffin, and associated high mortality rates. Paraffin related incidents cost the
economy R104 billion annually 20 .

The Apartheid regime ensured that the majority of the population did not have access to
basic services in both rural and urban areas. Policies since 1994 have attempted to redress
this imbalance particularly through the Reconstruction and Development Programme (RDP),
integrated National Electrification programme; Growth, Employment and Redistribution
(GEAR) programmes, and Accelerated and Shared Growth Initiative for South Africa
(ASGISA). In general policies and strategies have focussed on providing greater access to
safe, affordable and reliable energy resources for the poor. One of the aims of RDP was
electricity for all and this has been hugely successful. For instance, at the end of 1993, 36%
of the total population had access to grid electricity of which 50% were urban and 12% rural.
More than 25 000 rural schools had no access to electricity. By 2001 this figure had risen to
76.1% and by 2007 81.5% of the national population had access to electricity.21
Electrification for the same period for Gauteng Province was at 79.1% thus slightly less than
the national figure. However the ability of the country to reach its target of 100%
electrification by 2013 is unlikely. This is largely due to the predicted growth in the number
of households requiring electrification, the escalating cost of achieving this and the growth in
the informal sector. This predicted growth is highlighted in the General Household Survey
(Stats SA, 2007) which reports that Gauteng province had the highest rate of urbanisation in

                                                            
19
     State of Energy in South African Cities 2006 – Setting a baseline, SEA, 2006.
20
     A review of the effectiveness of energy subsidies and related taxation policies in South Africa, PDC &SC, 2003
21
     Stats SA 2007, General Household Survey
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the country in 2003 alone. In 2007, according to the above report, Gauteng already had a
housing backlog of 19.5% with 22.6% of its population living in informal settlements. Thus
making Gauteng one of the provinces with the largest percentage of people living in informal
settlements. Both Ekurhuleni and Tshwane have the highest levels of people living in
informal settlements within the province.

We have seen a huge growth in urbanisation in South Africa and it is estimated that
approximately 58% of our population live in urban areas. Informal settlements have been
increasing steadily over the past 10 years and predicted growth is in urban areas and in
particular in the informal sector.

Informality in South Africa is characterized by high levels of energy poverty. Despite the
intentions of the integrated National Electrification Programme which sought to address the
electrification backlog by 2012, many informal households in urban areas were not
electrified, partly because they are settled on un-proclaimed land. Interventions by
government to address energy poverty include the introduction of two policies: the Free
Basic Electricity policy (FBE, 2000) and the Free Basic Alternative Energy policy (FBAE,
2007). The former is targeting indigent households who are connected to the grid and
proposes to provide a minimum of 50KWh of free electricity per month. The Tshwane
municipality took a decision to increase this amount to 100kWh per month per household as
it was felt that 50KWh was not sufficient. In order to receive this benefit residents are
required to register on the indigent household database - over 120 000 households have
registered. The FBAE, on the other hand, is meant to address energy poverty for indigent
households who are not connected to the grid. The policy provides for energy to the value of
R55 per un-electrified household, its implementation has been a challenge, and remains
ineffective. For instance, a pilot programme which was set up by the former DME and
Tshwane Metro to roll out LP Gas to two townships was unsuccessful.

Government’s initiatives to meet the energy services needs of the poor and deal with poverty
generally are laudable. The Government’s recent document ‘Towards a Fifteen Year
Review’ 22 highlights the important changes that have been made since 1994 but outlines
the challenges for the future particularly around reducing unemployment and inequality,
fighting poverty and building state cohesion. The National Framework for Sustainable
Development (2008) talks about poverty eradication and the need to develop common goals.
Thus it states that “sustainable development that is appropriate and specific to the South
African context will entail shared and accelerated growth, targeted interventions and
community mobilization to eradicate poverty, and ensure the ecologically sustainable use of
our natural resources and eco-system services.” 23


2.4           Energy Supply
Although government’s initiatives to change legislation on energy have been commendable,
it has not protected the country from recent events. In January 2008 South Africa was faced
with an electricity crisis that was due to inadequate national supply planning exacerbated by

                                                            
22
     Towards a Fifteen year Review: Synthesis Report, October 2008
23
     The National Framework for Sustainable Development, July 2008
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a shortage of coal at Eskom’s power stations coupled with robust economic growth in the
country.

South Africans had to deal with “load shedding,” cutting service to customers on a rotating
basis. Telephone and Internet service for businesses and other customers became
unreliable; the periodic absence of street and traffic lights worsened traffic; private security
systems switched to generators, blackouts interrupted power supply for homes, businesses,
shopping centres and public utilities.

The response by government, and understandably so, has been to ensure that the energy
supply, specifically electricity, is brought back into balance, that there is a workable reserve
supply in order to alleviate strain on the generation assets and to create breathing space for
maintenance to be carried out. But the country was aware of the problem of electricity
capacity constraints long before the crisis hit us. In 2003 DME established an Integrated
Energy Plan which looked at security of supply and generation implementation plans but
was not strong on demand-side measures. This was also a weakness of the National
Integrated Resource Plan (NIRP) guiding electricity sector investment which was
undertaken first by Eskom, then by the National Energy Regulator of South Africa. Although
inappropriately supply-side focused, all of these documents pointed to the impending power
crisis, but decision-makers failed to act timeously. Once the crisis hit, the government
established a National Emergency Response Team and rolled out its national Electricity
Emergency Programme (2008). The programme looked at Demand Side Management
(DSM) and Energy Efficiency initiatives as an immediate relief to the problem.

In energy sector planning it is imperative that DSM is considered prior to supply side
solutions. Demand side management focuses on the amount of energy required by
consumers. The plan therefore concentrates on reducing such demand through energy
efficient measures such as CFLs, efficient transport, solar water heaters, etc.

Supply side management, focuses on the amount of energy available and whether it is
sufficient to meeting the demands. For instance, Eskom’s mothballed power stations are
being brought back on line and future coal fired power stations have been commissioned to
create a larger supply of electricity. Although Eskom was intending to expand its nuclear
power generation portfolio, these plans were put on hold in December 2008 due to
escalating costs of this power source. National government is however, still committed to
developing nuclear energy technologies.

Both demand side and supply side management needs are classified as:
   •   Immediate (within 6 months),
   •   Medium term (within 18 months) and
   •   Long term (longer than 18 months).

In the longer term, renewable energy and alternative energy projects are being given
consideration. The potential for the use of renewable energy varies within the country but
overall solar radiation levels are high by international standards, and wind power can be
cost-effectively utilized in coastal regions. Biomass is used for firing boilers in the sugar and

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paper and pulp industries. Renewables in this case include the large use of fuelwood in
rural low income households. The use of biomass in the residential sector is often excluded
from renewables as it is not viewed as a sustainable resource and impacts negatively on
health. Limited large-scale hydro and small- or micro-sized installations are feasible. The
latest NIRP (NIRP3 – still in draft format) places significant emphasis on energy efficiency
and wind generation, although these recommendations have not yet been formally accepted
by the National Energy Regulator of South Africa.

Currently, as the figures below show, renewable energies only amount to 8% of our energy
supply and 7% of our energy consumption. Given the resources we have and given the
documents that have emerged, these figures are extremely low. In addition they clearly
point to our continued dependence on coal and electricity which as we know is largely coal
generated, for our energy use. However, recent initiatives and developments could positively
influence these figures. Our dependence on coal may change in the future especially with
the recent proposal from Eskom for an electricity tariff increase. Eskom has made an
application to the National Energy Regulator of South Africa (Nersa) for a price increase,
submitting a request for a nominal 34% increase (25% real) for 2009/10. 24 Nersa plans to
hold public hearings into the application and make a decision by the end of June 2009.

In addition, Nersa approved the Renewable Energy Feed-In Tariff (REFIT) Guidelines on 26
March 2009. The REFIT has been long awaited as it opens the path for the renewable
energy sector in South Africa to grow and to become economically viable. The following
provides the tariffs for various technologies:

Technology Unit REFIT                                                 REFIT Tariffs –   2009 (R/kWh)

Wind                                                            R/kWh 1.25

Small hydro                                                     R/kWh 0.94

Landfill gas                                                    R/kWh 0.90

Concentrated solar                                              R/kWh 2.10




                                                            
24
      Terence Creamer, engineering news online, 15 May 2009 

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            Figure 2: Primary National Energy Supply, 2004, (Source: DME, 2005)




Figure 3: Total National Final Energy Consumption by Carrier 2004, (Source: The Digest of SA
                                 Energy Statistics 2005, DME)




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  Figure 4 Final National Sectoral Consumption of Energy 2004, – (Source: The Digest of SA
                                 Energy Statistics 2005, DME)




2.5    Private Sector and Civil Society Activities and Projects
This report describes gives an overview of government actions, plans and projects. It is
however also important to note that the private sector has also undertaken various energy-
related projects. These projects are quite varied and could range from changing the type of
light bulbs being used in a building to bigger projects such as using landfill gas for energy.
Below is an outline of key private sector initiatives and agreements in South Africa.

   •   VOLUNTARY ENERGY EFFICIENCY ACCORD

In 2005, following the adoption of the Energy Efficiency Strategy of the Republic of South
Africa, a number of South African companies signed a voluntary Energy Efficiency Accord
with Government. The Accord was facilitated by the National Business Initiative (NBI) and its
main aim was to assist in the implementation of the strategy and contributing to the
achievement of the announced energy efficiency targets. There are 44 signatories of the
Accord and includes 36 companies and 8 business associations who help mobilize their
members towards energy efficiency.

In terms of the National Energy Efficiency Strategy, the national overall target was a final
energy demand reduction of 12% but the industry target was increased to 15%. To convene
the business of the Accord and its link with Government, an Energy Efficiency Technical
Committee (EETC) was formed with the NBI playing the management and secretariat roles.



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The company signatories are from the mining, industrial, petrochemicals, commercial and
financial sectors and they are mostly the top energy users in the country including Eskom,
Sasol, BHP Billiton, Anglo American, AngloGold Ashanti, Anglo Platinum, Xstrata,
ArcelorMittal and Exxaro.

The combined electricity consumption of 19 Accord signatories is over 56 560 GWh, which is
approximately 24% of the national electricity consumption. The energy efficiency potential of
the Accord is thus very significant and could therefore be an important structure for
collaboration on energy management in coal mining, transportation and consumption.

       •      THE CARBON DISCLOSURE PROJECT
The Carbon Disclosure Project (CDP) in South Africa acts as the secretariat for the world’s
largest institutional collaboration on the business implications of climate change. The CDP
involves companies signing a request for disclosure of information on Greenhouse Gas
Emissions. The CDP is an important step in assisting the private sector to identify and
strategise on the impacts of Climate Change.

The second South African CDP report was released in 2008. The range of companies
increased from the Top 40 JSE listed companies in 2007 to the JSE Top 100 in 2008. The
leaders in the Carbon Disclosure Leadership Index were BHP Billiton in the Carbon Intensive
Emitters, and Woolworths Holdings representing the low carbon sector.

 The key elements of the CDP6 2008 South African report include 25 :

       •      The response rate to South Africa’s second CDP - of 59% - is relatively high by
              international standards and suggests that local companies are largely willing to
              engage on climate change issues. The global average rate of response is 55%.
       •      The disclosure rate of carbon-intensive companies (88%) was higher than the
              disclosure rate of companies from low-carbon sectors (69%).
       •      There appears to be much greater awareness of, and engagement in, government
              policy on climate issues. This is due, in part, to the government’s Long Term
              Mitigation Scenarios (LTMS) process, which involved the engagement of numerous
              senior executives from a range of business sectors.
       •      Some sectors – leisure, entertainment and hotels, media and photography and
              publishing, and real estate – are very poorly represented in their engagement on
              climate issues
       •      South African company views on business risks and opportunities associated with
              climate change include the following:
                  o Most companies believe that the South African government will introduce
                      regulations on climate change in the near future.
                  o Many of the responding companies acknowledge that while regulations
                      impose potentially significant risks, they will also level the playing field and
                      hence make efficiency and environmental best practice more attractive.


                                                            
25
     Carbon Disclosure Project Report, 2008, JSE Top 100

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                      o Extreme weather events have been identified as significant growing concern
                        for agriculture, mining operations, logistics and buildings, while many
                        companies have also identified possible risks associated with resource
                        shortages and price increases.
                      o Changing consumer attitudes are also seen as possible drivers for carbon-
                        efficient operations.
                      o Most respondents recognise that climate change may also provide potentially
                        significant business opportunities.

       •      CLEAN DEVELOPMENT MECHANISM – SOUTH AFRICAN PROJECTS

       The Designated National Authority (DNA) published the list of registered projects and as
       at June 2008 there were 80 CDM projects submitted to the DNA – 58 Project Idea Notes
       (PINs) and 22 Project Design Documents (PDDs). Thirteen of the 22 PDDs have been
       registered by the CDM Executive Board as CDM projects (1 requesting CER’s), and 7
       are at different stages of the project cycle. The projects submitted to the DNA for initial
       review and approval include the following:
           • bio-fuels
           • energy efficiency
           • waste management
           • cogeneration
           •   fuel switching
           • hydro-power

These projects cut across sectors such as manufacturing, mining, agriculture, energy, waste
management, housing and residential. However, up until November 2005 only individual
projects could register as CDM projects. This meant that for small carbon saving projects,
the net revenue was very small given the costs entailed in applying. In response to this
problem a new type of CDM has been developed called Programmatic CDM which enables
the pooling and crediting of all emissions reductions occurring under a programme of similar
projects. This is being worked on to develop a system to make programmatic CDM available
to municipalities. For example moves are under way to establish a national facility in the
Department of Human Settlements – the Sustainable Housing Facility (SHF) – which will
register all programmatic CDM for low income housing projects.


                      •      GREEN BUILDING COUNCIL OF SOUTH AFRICA

Earlier this year (2009), the Green Building Council of South Africa (GBCSA) set out to
develop a technical working group, which would work on the development of the Green Star
South Africa retail rating tool 26 . The Green Star South Africa (SA) tools will evaluate
buildings in terms of environmental aspects, including energy, water and ecology.


                                                            
26
     Christy van der Merwe, Engineering News online, 18 April 2009,
http://www.engineeringnews.co.za/article/green-building-council-to-start-work-on-green-star-sa-retail-rating-
tool-2009-04-28

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Once the tool is complete, the GBCSA would offer buildings the opportunity to become
Green Star SA – Retail certified, as an endorsement of the project’s environmental
performance. The technical working group would be a body of South African experts that
evaluate all credits and credit criteria for the rating tool.

   •   DBSA – RENENWABLE ENERGY MARKET TRANSFORMATION (REMT)

The DBSA has established a Renewable Energy Market Transformation Project (REMT)
with the aim of helping South Africa eliminate barriers to renewable energy development.
The project has two main components namely the Renewable Energy Power Generation
(REPG) sub-component and the Commercial Solar Water Heating (CSWH) sub-component.
Both sub-components offer matching grants (MG) for capacity-building to assist the
beneficiaries to identify, prepare, and finance investments and improve their business and
market development capabilities.

   •   CIVIL SOCIETY

There are numerous organisations both nationally and within Gauteng that are committed to
tackling various aspects of the energy sector. The Clinton Foundation is involved at local
government level in Gauteng to ensure energy efficiency in government buildings. The
prominent environmental organisation working on energy is Earthlife Africa. They have been
active in commenting on government policies and lobbying for free basic electricity. The
organisation is opposed to the use of nuclear power for energy generation.

In 2008, the international NGO, Greenpeace established an office in Johannesburg. The
organisation’s focus in South Africa is also on energy. As the projects are fairly new, most of
the work thus far has been around lobbying and network building.

The World Wildlife Fund (WWF) has played an important role in various government
processes including commenting on the National Climate Change Policy. WWF has a focus
on renewable energy with solar water heaters being a key issue.

Earthlife Africa-Jhb has played a significant role in the province in terms of linking energy
issues to the most vulnerable communities in South Africa. It is one of the few organisations
in Gauteng that works with community based structures to create awareness and education
on energy and climate change.


2.6    Conclusion
It is clear from this brief survey of both international and national trends that there is
consensus that current energy use patterns are unsustainable and that the world and South
Africa in particular face significant challenges in moving rapidly to a more sustainable
situation. South Africa has initiated policies and strategies as well as started implementing
plans to address our electricity crisis and begun to reduce our high emissions, although such
initiatives have yet to be adopted by many mainstream players. As can be seen from this
review the business sector has also begun to make a move in terms of energy efficiency and
carbon disclosure. Both of these developments indicate how seriously business is taking the
issue of climate change and a willingness to bring change. However, a move towards a low

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carbon economy as advocated by the LTMS would have major implications for our industries
and economic policies into the future. Civil society must monitor both government and
business and ensure that closer links are created with all sectors.

The next section looks at the roles and responsibilities of Province and then discusses in
some detail the work happening at both provincial and municipal levels.




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3. ROLES AND RESPONSIBILITIES OF PROVINCES

   3.1.        Provinces energy mandate
The institutional framework for government in South Africa was established in 1996 when the
country adopted its first democratic constitution. National, provincial and local government
were established as three spheres of government, each with expected distinctive functional
responsibilities but operating as a single system of co-operative government.

The Constitution created provincial government but did not specify distinct objects for
provincial government within the overall system and currently, unlike local government, there
is no policy and legislative framework to guide provinces. The absence of a definite policy on
provincial government has presented uncertainties and opportunities around its role in the
development of our country.

The Constitution does not mention ‘Energy’ in either Schedule 4 or Schedule 5. These two
schedules deal with “Functional Areas of Concurrent National and Provincial Legislative
Competence” and “Functional Areas of Exclusive Provincial Legislative Competence”
respectively; both schedules are divided into Part A and B to provide for local authority
competencies where appropriate.

A common practice is to assign ‘residual competence’ to the National sphere; in that it has
exclusive legislative competence with respect to all matters which are not expressly
assigned to the concurrent or exclusive competence of provincial legislatures. Because
energy is not mentioned in either Schedule 4 or Schedule 5, it thus is a national competency
by default.

‘Electricity and gas reticulation’ is mentioned in Schedule 4 Part B as is ‘Air Pollution’.
Concurrent functions contemplated in Schedule 4 for provinces include among others:
‘Disaster management’ ‘Environment’, ‘Air Pollution’, ‘Agriculture’, ‘Regional Planning and
Development’ and ‘Urban and Rural development’.

It can be argued however that, because of the cross-cutting nature of energy, under the
above listed powers and functions province has a duty to contemplate energy issues.

For example: ‘Environment’ is a very broad term which escapes precise definition. Experts
point out that there is no general agreement on what the term ‘environment’ encompasses in
the legal context and that it can be defined both narrowly and widely. However there does
not seem to be any doubt that phenomena such as climate change, partly brought about by
energy generation and consumption, is an environmental issue as envisaged in the
Constitution. Furthermore ‘Air Pollution’ is also referred to in Schedule 4 (Part B) and acting
on energy issues would arguably also fall under the purview of schedule 4 for this reason, as
energy consumption is a significant contributor to air pollution.

‘Regional Planning and Development’ and ‘Urban and Rural development’ in Schedule 4
point toward the need for a provincial energy strategy.
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   Provinces may in certain circumstances levy taxes provided certain procedures are complied
   with. Green energy certificates, feed-in tariffs and net metering could be within the provinces
   legislative power, where they will not affect the national tax base in any way.

   This is noted in section 228 of the Constitution headed ‘Provincial taxes’, where it states in
   228(1) that a provincial legislature may impose “(a) taxes, levies and duties other than
   income tax, value added tax, general sales tax, rates on property or customs duties; and (b)
   flat-rate surcharges on any tax bases of any tax, levy or duty other than the tax bases of
   corporate income tax …..”.

   Despite this provinces have exercised limited revenue raising powers to manage their
   developmental role.

   Constitutionally, the provinces exist as governments with legislative and executive branches
   that are accountable to their electorates. Provincial social services expenditure is not cost
   recoverable. Provinces draw most of their revenue (97% of amount available for provincial
   government) from national funds, most of which is spent on Health and Social Services.

   It is general practice to assign to National government the responsibility for norms and
   standards setting, to Provinces the responsibility for ensuring implementation of national
   policy, and to Local government the responsibility for ensuring development within their
   localities.




National Govt: Policy 
Development 
                                                                                Provincial Govt: the thin 
                                                                               wedge ‐ facilitating the 
                                                                               implementation of national 
Local Govt:                                                                    policy at the local level 
Implementation 




             Figure 5: The role of provincial government in relation to other spheres of government 




   In reality this means that provincial government could take the opportunities that present
   themselves and push the boundaries of how it and others interpret its role and
   responsibilities and create its space to intervene around energy related issues. The
   converse of course is another option open to provincial government – i.e. avoiding specific
   involvement in energy issues.




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   3.2.    Co-operative Governance within the South African
       context
The South African constitutional order is founded on two inter-related concepts, namely that
of 'sphere of government' and 'co-operative government'.

'Co-operative government' means that, although each sphere is distinctive and has equal
status, the spheres are also inter-dependent within the overall structure of the state. The
three spheres must therefore work together to ensure effective government in the whole and
each of its parts.

Some of the key principles of co-operative government and intergovernmental relations as
stated in Chapter 3 of the Constitution are highlighted below.

All spheres of government and all organs of state within each sphere must 'h) Co-operate
with one another in mutual trust and good faith by:’

   •   Fostering friendly relations;
   •   Assisting and supporting one another;
   •   Informing one another of, and consulting one another on, matters of common
       interest;
   •   Co-ordinating their actions and legislation with one another;
   •   Adhering to agreed procedures; and
   •   Avoiding legal proceedings against one another (Act 108 of 1996).

An Act of Parliament must: a) Establish or provide for structures and institutions to promote
and facilitate intergovernmental relations; and provide for appropriate mechanisms and
procedures to facilitate settlement of intergovernmental disputes (Act 108 of 1996).

Although intergovernmental cooperation and integration are defined in legislation,
collaboration is still voluntary with minimal authority and accountability. In addition provinces
seem to have experienced challenges in effectively performing regulatory monitoring and
oversight on local government with regard to things like environmental functions.

The sensible role for provinces regarding energy would be to attempt to integrate energy
issues into the current functions it performs.


3.3    Overarching   roles                of      leadership,          facilitation        and
       communication
In the current context of energy shortages and other challenges faced by the energy sector,
providing leadership or a vision on energy issues for the municipalities in the province, for
the people of the province and for the various departments in the administration is important.
This leadership role can link with national government policies, bills and strategies and thus
play a key implementation role as noted above.

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Within Gauteng Province, the leadership we have talked about is provided by the
Department of Local Government and Housing (DLGH) on behalf of the Premier’s office.
Province can play an important communication and facilitation role – bringing mayors and
city managers together to work towards achieving agreed targets. Linked to this leadership
role is the need for the Province to adjust its own practice around energy, for example:

   •   initiating energy saving targets and interventions and monitoring energy consumption
       in its own buildings
   •   making budgets available to purchase green electricity, which will be expensive
       initially but would become comparative with the proposed increases in conventional
       power.

It can also put resources to the development of affirming demonstration projects specifically
linked to poverty eradication and social development. Energy is cross-cutting in nature and
the responsibility for energy and its implications therefore falls across various departments
and functions in a provincial government as well as between the different spheres of
government.


3.4    Suitable roles of Provincial Government
Provinces have no specific energy mandate. However, energy is a cross-cutting theme, and
clearly has some role in many of the core provincial competencies, particularly Environment,
Air Pollution, Health, Education, Regional Planning and Development and Urban and Rural
development. It is generally not appropriate for the Provincial Government to act as an
energy deliverer – this typically falls to local government – and it is also not mandated to
enter into the field of power generation. In addition, it does not determine energy policy –
this is generally the realm of national government. Rather provinces have a facilitative role –
positioned between policy and delivery. Several local governments are embarking on
energy strategies and in addition there are numerous other initiatives linked to energy being
planned or implemented by a range of players. Provincial government is often best placed
to ensure that such implementation is coordinated and thus more effective, via the provision
of an overarching strategy. Many smaller local governments have limited capacity to
develop and embark on sustainable energy strategies. Here provincial government also has
an important role to play in the provision of guidance, capacity support and resources to
enable them to successfully embark on what can be a new and daunting process.

Energy concerns impact on a full range of sectors and activities and is therefore a prime
example of an area requiring co-operation between the different spheres of government. The
Provincial Government should and is actively seeking to co-operate with other government
bodies and departments around energy concerns, with an aim to providing assistance,
support, and leadership. Through a process of internal discussion as well as public
participation, the Provincial Government should attempt to ensure that its efforts to develop
the renewable energy sector and promote energy efficiency are co-ordinated with the efforts
of other spheres of government relating to energy.

As noted, the largest consumer of energy in the Province is the transport sector. Like
energy, transport is a cross-cutting issue and impacts and is influenced by decisions of a
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myriad of players. In terms of the Constitution public transport is both a provincial and local
competency with National government able to legislate on transport in consultation with
provinces and to manage state owned enterprises (like those that manage the rail system).
Because of the sheer number of players in the transport sector it requires dedicated
adherence to co-operative governance. In terms of the National Land Transport Bill, 2008,
(section 5) the Minister of Transport must ‘facilitate the increased use of public transport’
and ‘promote the efficient use of energy resources’, while ensuring co-ordination of the 3
spheres of government and the transport agencies. In terms of section 9, MECs, amongst
other duties, have to ensure co-ordinated planning and intergovernmental co-operation in
terms of land based transport and importantly ensure that there is a ‘linkage with matters
having an impact on transport in the province including... land use management ...and
environmental issues’




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4 PROVINCIAL TRENDS, PLANS AND STRATEGIES

4.1        Overview of Gauteng Province
Gauteng Province is the smallest province in South Africa in terms of land area being
approximately 16 548 square kilometres and has 15 municipalities. It has a population of
10.5 million 27 second only to KwaZulu-Natal and is the most densely populated area in
South Africa at 634.5 inhabitants per square kilometre. The province is plagued by a
number of socio-economic challenges such as high rates of HIV/Aids, crime, housing
shortages, and an unemployment level of 21.8% 28 .

The population of Gauteng Census 2001 revealed that Gauteng’s three metropolitan areas
(City of Johannesburg, Tshwane and Ekurhuleni) contained the bulk of Gauteng
 residents, with the City of Johannesburg being occupied by approximately 30% of the
Gauteng population. Metsweding contained the smallest proportion of the population at 1%.

The General Household Survey of 2003 also reveals that about 90% of Gauteng households
used electricity for lighting, cooking and heating, as compared to about 80% of the whole of
South Africa.

Gauteng is the gold mining hub of South Africa but the economy has diversified. It now
contributes heavily to the national profile in the financial, manufacturing, transport,
technology and telecommunications sectors, amongst others. Although Gauteng is the
smallest of South Africa's nine provinces, in terms of land area - it contributes about 34% of
the gross domestic product (GDP) as well as 60% of its fiscal revenue. The province can be
described as the economic powerhouse of South Africa. The Province’s economic sector
composition is largely dominated (70%) by tertiary industry services orientated industries
with secondary industry (27%) and primary industry (3%) contributions being much smaller.

Although Gauteng’s agricultural sector seems small in comparison to other provinces, its
contribution to its overall energy profile must not be ignored. A large area of the province
falls within the so-called Maize Triangle. The districts of Bronkhorstspruit, Cullinan and
Heidelberg hold important agricultural land, where ground-nuts, sunflowers, cotton and
sorghum are produced. The food, food processing and beverages aspect of agriculture
make up around R9.9-billion 29 of the province's economy, with half of South Africa's agri-
processing companies operating in Gauteng.

The provincial department of Agriculture has reported that only 16.4% of this land was
cultivated. This means that substantial potential exists for expanding production in the
province, with specific contribution to the biofuels and biodiesel industry.
The electricity crisis has predictably had an impact on the economy of the Province. The
National Energy Regulator estimates the cost to the national economy of load-shedding
earlier in 2008 at R50 billion (calculated at R75 per kWh). Many businesses have reported
enormous financial losses and have stated that as a result this may lead to job losses as
                                                            
27
     Mid-year population estimates, South Africa: 2008, Statistics South Africa
28
     Quarterly Labour Force Survey, Quarter 3, 2008, Statistics South Africa
29
     Gauteng Department of Agriculture, Conservation and Environment, www.gdace.gov.za
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well. As such, dealing with the electricity crisis in a sustainable manner has become one of
the main priorities for the Province.


4.2           Summary of Provincial Policies
Introduction

Since 1994, the Gauteng Provincial government has made significant strides regarding
socio-economic change in the Province, maintaining political stability, establishing a
functioning state infrastructure, and growing the provincial economy. According to the
province’s economic review (2008), the Gauteng Government “has invested over R1 billion
in strategic economic infrastructure through Blue IQ to stimulate growth and sustainable job
creation. The Provincial government has invested R5 billion in the housing sector, providing
shelter to more than 2.5 million people.” Gauteng has a diversified economy including
farming, mining, manufacturing and services. The services sector contributes approximately
60% to provincial GDP and 70% to provincial employment. The total Province economy
contributed almost 33% to the national GDP 30 . However, the Province continues to
experience the challenges of high levels of unemployment and poverty.

Given the above, the role of the Provincial Government must not be underestimated – both
in terms of economic growth and poverty eradication. The Gauteng Government has
developed the Gauteng 2014 Vision and a short-term Gauteng 5-year strategy for the
Province with a focus on development and governance, job creation and the eradication of
poverty. These documents serve as a basis for most other provincial documents.

It is imperative to note that provincial policies are in line with national decisions and plans.
For example, the national government has embarked on the Accelerated Shared Growth
Initiative for South Africa (ASGISA) with the objective of growing the economy and halving
poverty and unemployment by 2014. The Gauteng Province has also adopted the ASGISA
initiative and has set out objectives to grow the economy by 8% for the same period.

Provincial Policies

The Gauteng Provincial Government has developed the following key policies and strategies
to ensure economic, social and environmental sustainability in the province:



•      A GROWTH AND DEVELOPMENT STRATEGY (GDS) FOR THE GAUTENG
       PROVINCE, 2005

It is the intention of the Gauteng government to halve poverty and unemployment as part of
the national government’s priority economic goal. The main instrument that brings together
the various strategies and policy thrusts to achieve these goals is the province’s Growth and
Development Strategy (GDS) that was launched in April 2005 and complements the Global


                                                            
30
     Gauteng Economic Development Policy

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City Region strategy. It is aimed at boosting the province’s economy to reach a growth rate
of 8% by 2014. The GDS is informed by and integrates the following:

    o   Trade & Industry Strategy,
    o   Gauteng Integrated Development Plan,
    o   Local Economic Development Strategy,
    o   State of Environment Report and Environmental Implementation Plan.

According to the strategy, the GDS is an “action-oriented strategy and not a policy
document.” Furthermore, it is a strategy for all sectors of society in Gauteng and is intended
to build “provincial unity and responsibility amongst all sectors of society towards reducing
poverty and unemployment, creating jobs and ensuring socio-economic transformation of the
Province.” Its aim is to build Gauteng as a global city region and to be the main point of
reference and an anchor for the development and implementation of all Provincial strategic
plans, programmes and actions.

The GDS targets the following growth sectors for support to promote employment and
investment:

    o   smart industries, including information and communication technology (ICT)
    o   trade and services, including financial services and the film industry
    o   tourism
    o   agriculture, including agro-processing and biotechnology
    o   manufacturing, including steel-related industries, automotive components, beer and
        malt infrastructure.

Some of the main activities since 2004 have included the “formalization of informal
settlements, the upgrading of hostels and a major urban renewal programme targeted at 20
of Gauteng’s townships.”

•   GAUTENG PROVINCIAL GOVERNMENT MIDTERM REPORT, 2004 – 2006

The mid-term report assesses the two important strategic documents – the five-year
strategic programme for 2004 to 2009 as well as a 2014 vision to guide the Province in the
second decade of democracy. The five year strategic programme is based on five key
strategic priorities:

    o   Enabling faster economic growth and job creation
    o   Fighting poverty and building safe, secure and sustainable communities
    o   Developing healthy, skilled and productive people
    o   Deepening democracy and nation building and realising the constitutional rights of
        our people
    o   Building an effective and caring government.

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The Gauteng government’s five-year strategic programme for 2004 to 2009 is the provincial
government’s main mechanism to deliver on its 2004 electoral mandate. The programme
seeks to significantly enhance shared economic growth and job creation and push back the
frontiers of poverty by 2009.

•   GLOBAL CITY REGION STRATEGY

At a global scale, Gauteng features as a major metropolitan area and is ranked in the world
hierarchy of urban settlements. The Globalisation and World Cities Study Group (GAWC)
has analysed the global network of such services, and identified Johannesburg as Africa’s
only world city and a regional motor in the global economy. Developing Gauteng as a
globally competitive city-region has thus become one of the key objectives of the province’s
2005 Growth & Development Strategy.

The objective of the strategy is to “build Gauteng as an integrated and globally competitive
region, where the economic activities of different parts of the province complement each
other in consolidating Gauteng as an economic hub of Africa and an internationally
recognised global city-region.”

•   GAUTENG STRATEGY FOR SUSTAINABLE DEVELOPMENT, AUGUST 2006

There are two key challenges to sustainable development in Gauteng – on the one hand
there is poverty and unemployment, while on the other hand there is an unsustainable
pattern of production and consumption. The Gauteng Strategy for Sustainable Development
(GSSD) is a strategy that outlines a best option for sustainable development for the Gauteng
Province. The strategy attempts to create a synergy between the primary developmental
focus in the province of economic growth and social equity with environmental issues and
concerns (based on the realisation that continued growth can only be realised with a
sustainable energy system).

Clear targets and priorities have been set for the Gauteng Provincial Government in order to
become an “economically productive, socially just, globally competitive region that manages
and utilises resources sustainably.” Importantly, these priorities are linked to the priorities of
the Gauteng Province as defined in the 2014 planning process. In respect of energy the
priorities are as follows:

    o   Reduce use of non-renewable based energy sources
    o   Increase use of alternative fuel sources
    o   Promote efficient energy use
    o   10% renewable energy use by 2015

The Gauteng Strategy for Sustainable Development State of Play Report provides an
overview of the Status Quo of Sustainable Development in the Gauteng Province. There are
numerous achievements but also many challenges:

    o   Uneven distribution of wealth, education, health care, energy, waste services,
        housing, water and sanitation facilities in the Province, coupled with the proximity of
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        many residential areas to unhealthy/hazardous areas which has resulted in health
        and safety risks to communities and potential degradation and pollution risks to
        sensitive environments.
    o   High levels of informal settlement within the Province, with approximately 30% of the
        population residing in such areas.
    o   Significant backlogs in basic service provision, housing and public amenities.
    o   Reliance on non-renewable resources for energy production and the lack of viable
        energy alternatives.
    o   Achieving ASGI-SA growth targets while sustaining energy and water utilisation and
        without compounding increases in waste/pollution.
    o   Reliance on private modes of transport (i.e. cars) and the need to improve
        accessibility to an affordable, integrated public transport system.
    o   Pollution levels and high volumes of waste produced within the Province.
    o   Air pollution (with Johannesburg being rated fifth worst in the world).

    o   The viability of land for agricultural crop production is being compromised through
        soil contamination and degradation as a result of effluents from the industrial and
        manufacturing sector.
    o   High rate of immigration into Gauteng. Immigration is associated with increasing
        informalisation and growing service delivery backlogs (social instability/
        marginalisation).

•   GAUTENG PLANNING AND DEVELOPMENT ACT, 2003

The Planning and Development Act is an important piece of legislation as it attempts to
provide for a single system of development, planning and land management in the province.
The Act applies in the preparation and administration of plans including integrated
development plans, spatial development frameworks, land development policies and zoning
schemes. More importantly it tries to develop good cooperation and coordination between
the different spheres of government.

•   GAUTENG CLIMATE CHANGE RESPONSE STRATEGY - BACKGROUND
    DOCUMENT, NOVEMBER 2008

The Gauteng Climate Change Response Strategy will be completed in 2010. The
background document was used for this report. The document states that at the centre of the
national and provincial challenge is South Africa’s dependence on an abundant supply of
cheap coal to supply the country’s energy needs. The strategy identifies as the province’s
primary challenge - the greenhouse gas emissions linked to industrial activities and the use
of fossil fuels. The purpose of Gauteng’s Climate Change Response Strategy is thus to
coordinate a response for the province that promotes action against climate change – but
action that does not affect or impede economic growth.



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As the strategy is finalised, a number of options will be explored including mechanisms to
reduce greenhouse gas emissions, energy efficiency principles, and the generation and use
of renewable energy. The strategy has identified the importance of the Province fostering
commercial opportunities associated with this global energy revolution. Finally the strategy
will also assess the vulnerability of the Province to the impacts of climate change.

The key objectives of the Strategy include the following:

    o   To change Gauteng’s energy and carbon profile and ultimately to meet the South
        African national goals, as outlined in the LTMS document of “peaking carbon
        emissions by 2020 and bringing them down sharply starting in 2030.”
    o   To create high levels of preparedness and resilience for the inevitable impacts of
        climate change.

The process will involve stakeholder workshops to engage with different stakeholders in the
Province with the hope of developing a “shared vision for the Province and to ensure that
from the beginning, the Gauteng Response Strategy is robustly constructed and practical,
while still allowing for ongoing economic growth and development.” The main themes of the
strategy include:

    o   Greenhouse gas emission reductions and limits
    o   Build on, strengthen and/or scale up current initiatives
    o   Implementing the “Business Unusual” Call for Action

The background document suggests that a consolidated provincial response is needed, as
currently the provincial response is fragmented and the Province is under-prepared.

The Draft Gauteng Climate Change Response Strategy will be completed by 2010, after
which a full programme of stakeholder negotiations and joint planning will be required to
establish sector plans.

•   GAUTENG SOCIO-ECONOMIC REVIEW, 2008

This is the first Socio-Economic Review (SER) by the Gauteng Treasury (GT). The purpose
of the SER is to provide a detailed analysis of the socio economic indicators for Gauteng.
Provincial policy objectives focus on the creation of employment and the reduction of poverty
over the medium to long term. The Gauteng Provincial Government (GPG) is focused on
growing the economy by 8% and halving poverty and unemployment by 2014. The SER
serves as a tool in determining the potential for and constraints to economic development.
Some of the socio-economic gaps and challenges identified in the Province that still have to
be addressed are:

    o   Continued high levels of poverty and unemployment.
    o   Provision of permanent housing to the approximately 23.9% of households living in
        informal settlements and 10.5% households living in “back yards” or traditional
        housing.

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    o   Provision of education to the 8% of the Province’s population that still has no
        education at all.
    o   Provision of electricity to households for various purposes: 20% of the population still
        need electricity for lighting, 30% for heating purposes and 27% for cooking purposes.
    o   Provision of piped water to the remaining 2.5% households in the Province.

During the period between 2004 and 2006, Gauteng’s average contribution to national GDP
amounted to 34%. Statistics SA reports that the Gauteng Provincial economy grew by 6% in
2006. Economic growth experienced in the Provincial economy was largely due to the
growth in the secondary and tertiary sectors. In addition the SER identified the following
important statistics for the Province:

    o   The Province had a total population of 10.5 million in 2007, representing 21.5% of the
        total South African population.
    o   The City of Johannesburg (CoJ) accounts for the largest share of Gauteng’s
        population and households with over 30% of the population in Gauteng residing in
        Johannesburg. Metsweding population accounts for the smallest share in the
        province with only 2%.
    o   Growth is mainly driven by the construction and manufacturing sub-sectors.
    o   Infrastructure projects like the Gautrain Rapid Rail-link (Gautrain) and the preparation
        for the 2010 World Cup are also contributing positively to this sector’s contribution to
        provincial GDP.
    o   Provincial GDP is mainly propelled by the tertiary sectors, especially finance &
        business services, wholesale & retail trade and community & social services. The
        contribution of the tertiary sectors has increased over the period under review from
        70.9% to 72.8%.

The SER highlighted the important role of municipalities in delivery of basic services. These
functions include the provision of housing, distribution of electricity and water, sewerage
reticulation and refuse removal. It is from these services that municipalities raise revenue
and incur expenses.

•   GAUTENG SPATIAL DEVELOPMENT FRAMEWORK, 2007

The Framework identifies the fact that the inequality and under-development in South Africa
has a spatial aspect. The Spatial Development Framework seeks to balance two structural
elements – spatial equity and efficiency. It takes its lead from the National Spatial
Development Perspective (NSDP). The provincial government recognizes that different
parts of the province and different sectors of the community require different social security
responses. The NSDP principles mean that Gauteng must:

    o   Identify various categories of development potential;
    o   Target economic infrastructure in places demonstrating growth potential;
    o   Investment around growth nodal areas;

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    o   Meet peoples’ needs in areas with low potential.

The Gauteng Province identified the need for a provincial spatial development framework
given its challenges of high but unequal growth, environmental degradation, dispersed
settlements, long travelling distances and differences in quality of living. Three broad
challenges have been identified for the province:

    o   Supporting Economic Activity and Accelerating Growth
    o   Sharing the Growth
    o   Ensuring Sustainability

The Framework identifies key areas in the province that would be targeted for specific
development.

•   STATE OF THE ENVIRONMENT AND ENVIRONMENTAL IMPLEMENTATION
    PLAN

The State of the Environment and Implementation Plan is the provincial response to
ensuring that the resources on which economic activity and social well being depend are
used sustainably. There is a focus on the prevention and reduction of waste and pollution.
Furthermore there is a focus on a rights based approach to achieving the goal of developing
“safe, secure and sustainable communities”. Gauteng’s rapid economic growth and
expanded social service delivery have accelerated immigration and placed increasing
pressure on the environment. The growing social and environmental challenges are an
increasing burden on Gauteng’s stability and sustainability.

•   GAUTENG SOCIAL DEVELOPMENT STRATEGY

The Gauteng Social Development Strategy (GSDS) is a strategy for sustainable
development that addresses the needs of families, households and citizens living with
inadequate financial and social support networks. Promoting social development is an
important pillar of the broader Global City Region Strategy. The GSDS will be implemented
by all social sector role-players in government, in collaboration with organizations of civil
society. This therefore provides a framework for sustainable social development to better
tackle the challenges of poverty and “create future generations who are well integrated into
the economic, social and cultural mainstream.”

•   DEPARTMENT OF HOUSING, REVIEW ON THE PERFORMANCE ON
    HOUSING DELIVERY, AUGUST 2008

In the provision of decent and adequate shelter, the Gauteng Department of Housing
developed a strategic plan 2004-2009 to guide the implementation of its programs. The
focus has been the realization of the strategic objectives through the following key programs
of the department.

    o   Mixed-housing Development
    o   Eradication of Informal Settlements
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    o   Alternative Tenure
    o   Urban Renewal Programme and
    o   20 Prioritised Townships Programme(PTP)

The housing need in Gauteng has increased from 32.6% in 1996 to 35.3% in 2001. The
population of Gauteng has increased from 7.3 million in 1996 to 8.8 million in 2001
translating to a growth rate of 20.3% over five years. Of this, 62% earn less than R3500 per
month. The percentage of households residing in informal areas has increased from 24.98%
in 1996 to 27.68% in 2001. There are an additional 346,000 people from the cross-border
population in the peripheral areas, contributing to the stagnating improvement in the
percentage of informal housing within the province. The Premier of Gauteng announced the
Twenty Prioritized Townships Programme through which “government will invest an amount
of R3 billion in 20 major townships in Gauteng to build better communities and upgrade local
social and economic infrastructure.”

The major projects identified for implementation are the tarring of roads and the provision of
good storm water management systems, provision of clean water and sanitation, street or
high mast lighting, electricity supply, health, education and recreation facilities, housing,
transportation, waste management, community facilities and safety, agricultural programmes
and projects to improve the environment such as tree planting and the improvement of parks
and waste management.

•   PROVINCIAL ECONOMIC REVIEW AND OUTLOOK, 2007

The Gauteng Provincial Treasury (GPT) presented its first Provincial Economic Review and
Outlook (PERO). The purpose of the PERO is to provide an in-depth analysis of the regional
economy, labour markets and the socioeconomic challenges within the province. This
document primarily focuses on the sectoral description of the Gauteng economy and future
prospects of the province as outlined in the Gauteng Growth and Development Strategy
(GDS).

The PERO 2007 consists of four chapters. Chapter one outlines the economic outlook of the
country and of the province. Chapter two unpacks the structure, composition, trends and
positioning of each sector in the regional economy. The three sectors of the economy:
primary, secondary and tertiary are analysed to show the importance of each towards the
total production output in the province. Chapter three focuses on the challenges within the
labour market in the province, mainly the high unemployment rate and the prevalence of
high levels of poverty. Chapter four unpacks the issue of equity in the province. The high
unemployment rate that exists in the province and the country as a whole has led to the
unequal distribution of income and expenditure in South Africa.


4.3     Conclusion
The above list is not an exhaustive list but highlights some of the main documents that have
been used to develop sector responsibilities. . Most of the policies, strategies and plans are
sector specific and departments have initiated projects related to their strategies.       For
instance;
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   •   GDACE has been involved in retrofitting 3 GPG buildings and one hospital
   •   DPTRW has begun a SWH rollout to schools, clinics and hospitals, and a number of
       energy related interventions in government buildings including the installation of
       metering equipment and timers
   •   Social Development has been involved in the 20 PTP projects and upgrading old age
       homes
   •   Sports is involved in construction of stadia for 2010 and looking at EE measures

   •   GEDA has links with the EnerKey project and have a RE commercialisation strategy -
       expected to be completed by December 2008.

   •   Eskom has DSM Projects in Gauteng relating to load management largely in the
       commercial sector and CFL rollouts to both corporate and residential sectors.

The above set of policies and reviews points to a number of key implications for the energy
future of Gauteng, including:

   •   The province is targeting high economic growth. Such growth cannot be sustained
       with an unsustainable energy system, and therefore this places added emphasis on
       the need for energy efficiency and clean energy supply to be promoted as a matter of
       urgency to support this intention.
   •   Poverty remains a key focus and significant challenge, and thus energy planning
       needs to address access to clean and healthy sources of energy, with a particular
       focus on energy poverty in the informal sector, where no effective and sustainable
       delivery models for energy services yet exist.
   •   Unemployment requires urgent attention. Various energy technologies can provide
       significant employment opportunities, and Gauteng should look to maximising the
       manufacture and utilisation of such options (e.g. solar water heaters).
   •   The current spatial development layout results in expensive and polluting transport
       systems and an unsustainable emphasis on private vehicle use. They also affect the
       cost of living and ability to participate in the economy for poor households. In
       particular public transport systems need to be looked at in conjunction with improved
       spatial frameworks.
   •   The province is starting to recognise and plan for climate change issues, including
       mitigation and adaptation. This will inevitably require a significantly different energy
       system – even in the short-term.

One of the key challenges for province is the fact that there is no mechanism in place to
ensure that the various stakeholders and role-players interact and coordinate with one other,
share information on what they are doing, report and monitor initiatives in a coordinated and
consistent way.

There is a need for better coordination between the different government departments as
well as between the various tiers of government to avoid a lack of integration and

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coordination. Consequently, this lack of coordination and integration leads to duplication of
efforts and initiatives and could be deemed as wasteful. It is envisaged that the Gauteng
Integrated Energy Strategy will foster linkages and integration with all relevant stakeholders
at a national, provincial and local level.




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5       MUNICIPALITIES TRENDS, PLANS AND STRATEGIES

This chapter highlights key sustainable energy and climate change initiatives undertaken at
the city/municipal level. Over the last decade substantial city energy development work has
been undertaken and led by the larger cities. While a number of energy related programmes
are underway within the 12 municipalities that make up the Gauteng Province, there remains
much variation between individual municipalities in terms of projects being carried out. For
instance, as the report below shows, while some municipalities have developed energy
plans, a number of others have not yet done so, rendering it difficult for Province to make a
case for its overall impact both on energy savings as well as on meeting the national energy
savings targets. This is in part due to the disparate configuration of municipalities with
regard to size, human and financial resources, highlighting further the need for an integrated
energy strategy and implementation plan.




Gauteng is made up of six regions being:

    •   Red: City of Johannesburg Metropolitan Municipality

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   •   Blue: City of Tshwane Metropolitan Municipality
   •   Green: Ehurhuleni Metropolitan Municipality
   •   Purple: Metsweding District Municipality
   •   Turquoise: Sedibeng District Municipality
   •   Yellow: West Rand District Municipality

Metsweding has the following two local municipalities:

   1. Nokengtsa Taemane Local Municipality
   2. Kungwini Local Municipality

West Rand has the following four local municipalities:

   3. District Management Area of the West Rand District Municipality
   4. Mogale City Local Municipality
   5. Randfontein Local Municipality
   6. Westonaria Local Municipality

Sedibeng has the following three local municipalities:

   7. Emfuleni Local Municipality
   8. Midvaal Local Municipality
   9. Lesedi Local Municipality

The remaining three regions comprise the three large metros; Johannesburg, Tshwane and
Ekurhuleni. This next section looks in some detail at what is happening within the different
municipalities and then moves on to consider the issue of energy poverty within the
Province.


       5.1     The Municipal Picture
The City of Johannesburg Metropolitan Municipality (CoJ)

The CoJ has recently compiled its State of Energy Report and this has been approved by
the city council. It has yet to develop a city energy strategy and implementation plan. CoJ
has positioned itself as a lead city on the issue of climate change and has a climate change
strategy. The Mayoral Committee has a dedicated Climate Change Subcommittee which
scrutinises all reports for council to ensure that they are compatible with the city’s Climate
Change Strategy. In terms of spearheading energy related issues, the City’s department of
environment has been identified as a lead office.

In terms of demand- side management, CoJ has implemented several energy efficient
lighting projects which include CFL roll-outs; fitting of motion sensors; installation of LED

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traffic lights; energy efficient lights, and solar traffic lights. Other energy efficient
interventions underway include fuel switching (from electricity to LP Gas, mainly for cooking);
ripple control, and smart metering.

Also the city is promoting the use of LP Gas supplied by eGoli Gas and the harnessing of
energy from renewable sources such as landfill sites.

Existing climate change initiatives:

Landfill Gas-to-Energy: Capturing and utilisation of methane from metro landfills for energy
provision- evaluation underway

   •   SWH installation: installation of solar water heaters in Cosmo City to 171 low income
       homes
   •   Climate change vulnerability assessment: This involves identifying key vulnerable
       sectors within the city, assessing potential adaptation mechanisms that could be
       implemented to reduce the impacts and exploring how climate change may affect
       sustainable development within Johannesburg.
   •   Solar Streetlight Township Electrification Programme:           City   Power installed
       approximately 20 solar street lamps in Zandspruit.
   •   Greening Carbon Sinks Project: 200 000 trees will be planted by 2010; to date 60
       000 have been planted and 80 % of these are in the southern part of the city.

Clinton Climate Initiative:

The Clinton Climate Initiative (CCI) has committed substantial funding and technical support
to help Johannesburg become an energy-efficient, environmentally friendly city. CCI is a
partnership between the Clinton Foundation and the Large Cities Climate Leadership Group
(known as the C40), which aims to take practical and measurable steps to reduce
greenhouse gas emissions and increase energy efficiency in large cities across the world.
The foundation provided a grant to hire the Institute for Transportation Development and
Policy (ITDP), a leading international organisation promoting environmentally sustainable
and equitable transportation worldwide, to develop and design an operational plan for a bus
rapid transit system in Johannesburg, officially known as Rea Vaya. In July 2007, the City
launched its energy efficiency programme, which includes the Rea Vaya Bus Rapid Transit
system, the Energy Efficiency Building Retrofit Programme, and the Solar Streetlight
Township Electrification Programme. The latter two are in pilot phase. The development of
Rea Vaya currently underway will provide 122 km of rapid bus lanes. The first phase of this
project includes a 42 km distance between Regina Mundi and Sunninghill via Parktown, and
is expected to be operational by 2010. According to the ITDP progress report on the
partnership, Rea Vaya is expected to eliminate 311 586 metric tons of carbon dioxide
emissions from the current 'do nothing' scenario. This saving will increase to 1,616,375
metric tons by 2020 had the project not been implemented.

Harnessing gas from five landfill sites to produce electricity and deriving carbon
revenue from such a project:

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The City is about to embark on its first landfill-gas-to-energy project, which will also be the
first notable Clean Development Mechanism (CDM) project generating substantial carbon
credits for the City to use for trading. The due diligences for Linbro Park, Marie Louise,
Robinson Deep, Goudkoppies and Ennerdale landfills were concluded in March 2008,
proving that all the sites have enough potential quantities of landfill gas to generate
electricity. Landfill-gas-to-energy CDM projects will be initiated at all five sites. A consortium
headed by ENER•G Systems Johannesburg has been appointed by the City to take the
process forward. Johannesburg and ENER•G Johannesburg will share the profits resulting
from the sale of carbon credits and electricity. The sites have the potential to generate as
much as 25 MW of electricity over a period of 15 to 20 years. The rate of gas production
however is dependent on a number of conditions, including the age and composition of the
waste, the temperature and moisture content of each site as well as the design and
operation of the site.

DANIDA-funded Urban Environmental Management Programme (UEMP):

CoJ is among the four UEMP funded cities that have been provided with an additional R15
million from DANIDA to catalyse implementation and scale up carbon emissions reduction
impacts. To this end, key projects underway are;

   •   Climate proofing of urban communities through implementing a range of
       sustainability interventions in a low income housing development in an effort to build
       climate change resilience in urban communities, through making households more
       energy efficient, reducing natural resource consumption and improving quality of life
       of the poor.
   •   Implementation of domestic fuel burning emissions reduction measures in low
       income households (using a method that enables households to burn coal efficiently
       reducing harmful emissions) creating a much safer and healthier environment for
       communities.

Sustainable Energy Africa’s Urban SEED Programme provides CoJ with technical and
facilitative support essential for the implementation of the above projects.

Climate Change and Building Efficiency initiatives

The city has embarked on three strategies to address climate change and building efficiency.
The first involves self regulation by the property industry and the application of the City’s
“Design Guidelines for Energy Efficient Buildings”. These guidelines developed by CoJ in
partnership with CSIR assist architects and property developers to include energy efficiency
measures in their planning. The second includes the enforcement of legislation, in particular
the National Building Regulations, while the third involves the inclusion of energy efficiency
criteria to land use applications. To this end CoJ and CSIR are developing criteria for the
promotion of “Energy Efficiency in Land Use Development”. In addition, it is important to note
that the city also has a Sustainable Housing Policy for low-income housing developed
through funding by DANIDA

City of Tshwane Metropolitan Municipality (CTMM)

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CTMM has an official council-approved State of Energy Report and an Energy and Climate
Change Strategy and Implementation Plan. The city’s energy vision is: ‘to be an energy
smart city of excellence’. Its mission is: ‘to enhance the quality of life of all the people in the
City of Tshwane through a development system of local government and the rendering of
efficient, effective and affordable services.’ The strategy and implementation plan is guided
by four key pillars;

Sustainability: To enhance energy sustainability, accessibility and affordability to residents
and the municipality

Cleaner, more efficient and diverse energy use and supply: To encourage and promote
a shift to cleaner (emitting less pollutants and greenhouse gases ), more efficient and
diverse energy use and supply.

Economic growth and development: To support economic growth and development in
CTMM, especially in the north, through smarter energy use

Innovation: To encourage the development and use of innovative tools, products and
solutions for energy use

The following targets have been set in order to achieve cleaner, more efficient and diverse
energy use and supply:

   •   10 CDM/carbon offset projects identified by 2006 for implementation by 2010
   •   All incandescent lighting in CTMM and national government buildings to be replaced
       with energy-efficient lighting by 2015
   •   15% reduction in energy demand in government buildings by 2012
   •   10% improvement in HVAC efficiency by 2010
   •   100% of CTMM vehicle fleet equipped with catalytic converters by 2007 (in alignment
       with national manufacturing and import policies)
   •   Procurement policy for all local authority vehicle fleets to include energy efficiency as
       additional criterion
   •   50 % of diesel fleet to operate on biofuel by 2010
   •   No new electrode boilers in CTMM after 2007
   •   All electrode boilers replaced by natural gas or biomass-fuelled boilers by 2015.
   •   Vehicle flow improved by 40% by 2010
   •   10% of CTMM electricity demand being met by local renewable sources by 2010
   •   50% of eligible landfills producing electricity cost-effectively from methane by 2010
   •   Reduce the number of links in the road network with a volume/capacity ratio of
       greater than 90%.
   •   50% gas reticulation of middle-income areas by 2010

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    •   50% of CTMM homes have cleaner/RE energy supported through subsidies available
        from the DME Renewables Subsidy Office by 2010 (in accordance with their targets)

Sustainable energy and climate change activities in CTMM are led and coordinated by the
Energy and Electricity department. The city has embarked on numerous demand side
management programmes focussing on efficient lighting. These include inter alia CFL roll-
outs; installation of LED traffic lights; fitting of energy efficient street lights; as well as solar
traffic lights. Moreover, the city is also piloting the provision of alternative forms of energy
such as LP Gas to poor households (about 500 poor households) in Winterveld Ten Morgen
as well as to 20 000 households in Attridgeville areas. Plans for the extraction of energy from
landfill sites are ongoing. Plans are also afoot for the mass implementation of solar water
heaters and smart metering systems, and preparations are in progress for the city’s Bus
Rapid Transport system. Other current projects include: developing a low-cost housing
energy efficiency project - Tshwane/Basel CDM Housing; EnerKey- Landfill methane
recovery; Green-goal2010 greening, Green-staySA accommodation sector greening, and
public transport month.

City of Ekurhuleni Metropolitan Municipality

The city has compiled both a State of Energy Report and an Energy, Climate Change
Strategy and Implementation Plan. The city’s energy vision is: ‘All people have access to
affordable, safe, healthy and modern energy services’. It hopes to achieve this by inter alia
promoting universal access to energy services throughout urban areas; provision of energy
services and infrastructure to meet the needs of all its residents according to the ‘avoid,
reduce, replace’ hierarchy; creation and promotion of sustainable human settlements that
use energy in a safe and sustainable manner, and through the reduction of energy-poverty
related diseases.

    •   One of the city’s visions is to ensure that energy supports the local economy through
        the promotion of economic competitiveness, improvement of employment
        opportunities, efficient use and management of energy, as well as through the use of
        energy in a sustainable manner. To achieve this, the city intends to improve
        economic efficiency and sustainability of all sectors according to the hierarchy: avoid
        energy use; minimise use through efficiency, and replace energy options with cleaner
        alternatives. The city expects the government to exhibit good governance and lead
        by example by improving energy efficiency, as well as maximizing employment
        opportunities and facilitating skills development in the energy sector, especially
        relating to energy efficiency, demand-side management and renewable energy.
    •   A further vision is to ensure that all its residents have access to affordable, safe,
        healthy and modern energy services. This it seeks to achieve by creating and
        promoting sustainable human settlements that use energy in a safe and sustainable
        way (through smart and creative urban planning, energy efficient housing, integrated
        transport and urban greening).

The Electricity and Energy Unit is the dedicated energy champion office for this municipality
and is responsible for the implementation of the Energy and Climate Change Strategy. In as
far as demand-side management is concerned, the city has embarked on a CFL roll outs,
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installation of motion sensors, LED and solar traffic lights, as well as energy efficient
streetlights. On energy efficient buildings side, the city has embarked on the installation of
ripple controls and smart metering. Additional projects underway or being explored include:

   •   Council building energy audits and retrofits: Energy audits assess when and where
       improvements can be quantified in city buildings in terms of both energy and cost
       savings. Retrofitting of council buildings include the replacement of incandescent
       light bulbs with CFLs;
   •   Installation of an Energy Management System technology in two council buildings for
       real time building energy use and management;
   •   Conversion of vehicles to natural gas;
   •   Construction of an energy efficient office building: the city plans to build a council
       building based on energy efficiency guidelines to serve as a prototype for all
       subsequent buildings planned for the future;
   •   Climate Change Vulnerability and Adaptation Study: this investigation seeks to
       identify areas where the city is most susceptible as a result of climate change, and to
       recommend relevant responses;
   •   EnerKey Module 6 – Climate Protection and CDM: this is a capacity building
       programme which is aimed at bringing all Gauteng municipalities up to speed with
       making use of CDM funds for climate projection initiatives. Workshops in this regard
       are scheduled for March 2009.

   •   Energy and Climate Change Strategy implementation: This is another capacity
       building initiative aimed at assisting municipalities to implement the Energy & Climate
       Change Strategy.

City of Ekurhuleni targets:

   •   LED signals for 20% of traffic lights by 2010, 100% by 2015
   •   Increased vehicle energy efficiency of local government fleet by 2011.
   •   Commence with the use of cleaner fuels for vehicle fleet and install a tank for
       refuelling by 2011.
   •   Government efficient lighting: all incandescents replaced with CFLs by 2010
   •   Accessible CFL disposal system to be put in place by 2010
   •   Reduce energy consumption by at least 5% in all municipal operations by 2010
   •   Key staff in City departments (Environmental Development, Transport, Building
       Maintenance, Electricity, MI, Solid Waste) to have undergone capacity building
       around EE, RE and/or DSM by 2008
   •   Approved green procurement policy by 2010
   •   Approved green building policy by 2008.
   •   Reduction in GHG emissions of 10% by 2015

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   •   Video conferencing available to all staff by 2008.
   •   Target training to the value of 1000 NQF points around energy efficiency to be
       delivered to staff in all departments involved with energy efficiency matters by 2012.

In terms of progress in meeting these targets capacity building has occurred to some extent,
however video conferencing and green building policy have not been achieved as yet.
Currently no monitoring system is in place. Achievement of targets still requires ongoing
support from the SEED programme.

Ekurhuleni Metro Municipality Projects:

A number of existing energy-related projects are underway in Ekurhuleni.

   •   An internet-based metering system is being established to monitor energy use within
       municipal buildings as well as commercial and light industrial users.
   •   An electricity and water audit of all customers’ needs and use is currently being
       undertaken by the Municipal Infrastructure Department, which is expected to
       significantly improve the database as well as statistics for the City to address energy
       issues.
   •   The Metro is underway with ongoing installation of on-board computer systems within
       the council owned vehicle fleet. This enables accurate measurement of fuel efficiency
       and allows for improved management of vehicle fleet fuel consumption.
   •   An aggressive marketing campaign is in progress in Ekurhuleni to inform customers
       on energy efficiency matters.

Metsweding District Municipality

No project report on energy related issues has been made available as yet, and the
municipality’s 2008/2009 IDP is silent on energy related matters.

Noekeng Tsa Taemane Local Municipality (NTTLM)

NTTLM is a category B municipality (category B municipality refers to those municipalities
that fall under the executive and legislative authority of a district) within the jurisdiction of
Metsweding and has neither a State of Energy Report nor an Energy Strategy and
Implementation Plan. The municipality’s 2007/2008 IDP is silent on energy related issues.
In its report on energy related issues to the Department of Local Government, the
municipality has indicated the following initiatives in terms of its demand-side management:
CFLs roll out; installation of motion sensors, LED and Solar traffic light, as well as energy
efficient lights. The municipality has embarked on the installation of ripple controls to help
towards energy efficient buildings.

Kungwini Local Municipality (KLM)

KLM is also a category B municipality within the jurisdiction of Metsweding and has neither a
State of Energy Report nor a Strategy and Implementation Plan. Its 2008/2009 IDP is silent

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on issues related to energy. In its recent report on energy related projects, particularly in
terms of demand-side management, the municipality reported that it has embarked on a CFL
roll out and installation of LED traffic and energy efficient streetlights.

West Rand District Municipality

This municipality has neither a State of Energy Report nor an Energy Strategy and
Implementation Plan. No information concerning the municipality’s current or planned
energy related initiatives has been reported by the Gauteng Department of Local
Government. In the 2008/2009 approved IDP, under service delivery and infrastructure
development, the municipality intends to contribute R11 million towards supporting energy
efficient capital projects in the constituent local municipalities such as Mogale City,
Randfontein and Westonaria.

Mogale City Local Municipality (MCLM)

The only reference to energy or climate change made in MCLM’s Integrated Development
Plan (IDP) - 2008/09 relates to their Greening Project, planting 2000 trees in Mogale city,
and this is funded from the Operational Expenditure Budget (OPEX). This municipality has
neither a State of Energy Report nor an Energy and Climate Change Strategy.

Randfontein Local Municipality (RLM)

The closest reference to energy or climate change made in RLM’s Integrated Development
Plan (IDP) - 2008/09 relates to their Air Pollution Project, which is intended to measure the
ambient air quality in Randfontein. RLM has compiled neither a State of Energy Report nor a
Strategy.

Westonaria Local Municipality (WLM)

On its website, WLM only has a first 2007/12 IDP review wherein there is mention of the
municipality’s intention to accelerate the building of infrastructure with greater emphasis on
energy efficiency and to motivate communities to use alternative energy sources for cooking
purposes e.g. gas, coal, wood, etc. This municipality has compiled neither a State of Energy
Report nor a Strategy.

Sedibeng District Municipality (SDM)

SDM is yet to compile its State of Energy Report and Strategy and Implementation Plan. In
its 2008/9 IDP mention is made of putting in place a number of projects and plans to assist
the region in addressing energy issues. Projects identified for implementation (as a direct
response to Government’s request to reduce electricity consumption by 10%) include: the
installation of solar traffic lights at major road intersections (in partnership with the National
Energy Efficiency Agency); performing energy audits of local government buildings in the
region to identify energy efficiency interventions which can be implemented quickly and
effectively. These audits will use funds from the Danish donor organization DANIDA through
its Urban Environmental Management Programme of which Sedibeng District Municipality is
a partner; supporting local businesses in accessing the government incentive schemes
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supporting energy efficiency and the use of renewable energy sources. This would include
the sourcing of funds for the undertaking of energy efficiency audits in businesses, as well as
supporting feasibility studies for the development of further generation capacity and
investigating the possibility of introducing “Green Building” standards into the region. This
would include energy efficiency standards. A report on energy related projects that are
underway is still outstanding.

Emfuleni Local Municipality

This municipality has neither a State of Energy Report nor a Strategy and Implementation
Plan, and its IDP 2007/2008 makes no reference to energy related issues. In their recent
energy project report this municipality indicates that in terms of demand-side management,
they have embarked on the installation of LED traffic and energy efficient streetlights. Also,
in as far as energy efficient buildings are concerned, the municipality is involved in the
installation of ripple controls. The municipality has embarked on the capturing and utilization
of methane from the city’s landfills for energy provision.

Midvaal Local Municipality

This municipality’s project report on energy related issues is still outstanding. Its 2007/2008
IDP is silent on energy issues. Also, it has neither a State of Energy Report nor a Strategy
and Implementation Plan.

Lesedi Local Municipality

A State of Energy Report and a Strategy and Implementation Plan are yet to be compiled for
this municipality. Its latest IDP is not available on its official website. Nevertheless, in a
recent report on energy related projects it is stated that there is an energy plan and budget
available. In terms of demand-side management, the municipality is involved in CFLs roll
out; installation of motion sensors; installation of energy efficient HVAC systems and after-
hour shut downs, as well as ripple controls. In addition, the municipality is also involved in
energy auditing its buildings.


5.2    Conclusion
In compiling a state of energy report on each municipality an energy questionnaire was sent
out in order to obtain a picture of what projects are underway and what is planned at
municipal level throughout Gauteng Province. At the time of writing not all municipalities had
submitted the information requested, according to our records responses were received from
all but 4 municipalities, in which case some of this information may not be completely
current.

However, it is clear from this brief report that the three metros have far more in place than
the smaller municipalities which is not surprising particularly as each has a dedicated energy
champion through individuals and offices. Ekurhuleni and Tshwane are the two metros that
have compiled an energy strategy and have dedicated energy offices developing clear
projects and targets. Johannesburg also has a lead office and this has been institutionalised
through their Section 79 Mayoral Committee on Climate Change. This is important in terms
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of spearheading the work that has been started. Tshwane was the first municipality in the
region to appoint a SEED advisor as well as establish an interdepartmental Sustainable
Energy Team (SET). It is generally accepted that it is through a champion that energy
begins to take on a higher profile within cities. Energy issues need to cut across all city
sectors and it is through the work of a champion that some cohesion, coordination and
implementation can take place. In fact the smaller municipalities identified the lack of a
driver or departmental driver as impacting negatively on their ability to take energy issues
forward.

Furthermore almost all municipalities indicated that they are hampered by lack of funds to
adequately deal with these issues. Another constraint identified was coordination and a
general lack of capacity which impacts hugely on the ability to take initiatives forward. Thus
both funding and capacity affect delivery as well as awareness campaigns and overall
education. It was noted that more has been achieved on the energy efficiency side than
developing renewable energies again largely because of funding. In addition there are clear
differences between districts and local government around specific responsibilities and
mandates. Very few municipalities have undertaken energy audits or have access to
comprehensive and comparable data on energy use.

In terms of energy poverty it is clear that the province is faced with many challenges which
are being addressed by some of the provincial policies and strategies in place. Good
statistics and data collection could assist in obtaining a clear picture. Studies undertaken at
Imizamo Yethu township in Cape Town by the Energy Research Centre at UCT 31 have
shown that using electricity for cooking is much cheaper than using other fuels such as
paraffin and LP Gas despite electricity increases. Yet of those households that are electrified
it was clear that many people were not aware of the cost differentials and continued to use a
mix of fuels. Thus information and education become crucial with regard to choices and
access to different energy forms.

We now turn to look at an initial energy profile of Gauteng Province in relation to both
demand and supply sectors.




                                                            
31
  Bill Cowan, ERC, presentation at UNEP workshop on Enhancing Energy Access in Rural and Peri-urban
settlements, May 2009

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6 BASIC DRAFT                    ENERGY           PROFILE            OF      GAUTENG
  PROVINCE
This basic draft energy profile aims to give readers an overview of the energy balance of
Gauteng Province by sector as well as by fuel type and aims to distil the relevant information
from this. It also provides some of the raw data used for researchers to use in further
analysis and study, this will be done by giving a more detailed energy use breakdown by
sector and energy carrier where possible.

Overall the largest energy consumption comes from the industrial sector accounting for 44%
of the total energy use, with transport and residential sectors using 36% and 16% of total
demand respectively.




Figure 6: Energy demand by sector

The chart below outlines the final demand by fuel type and one can easily see that the
largest energy carrier is coal (35%) and the vast majority of this is used in the industrial
sector, which helps explain the dominance of the industrial sector in terms of energy use in
the province.




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Figure 7: Energy demand by energy carrier

Analysis and Methodology

The system of analysis used was centred on energy demand using the Long-range Energy
Alternatives Planning System (LEAP) software from the Stockholm Environmental Institute in
Boston. This tool is classified as an energy accounting framework that allows effective
energy data analysis in a flexible form with opportunity to create, explore and analyse
scenarios in a more graphically intuitive way. Modelling assumptions and parameters will be
detailed in the final energy profile.


6.1 Data acquisition
Data sources

The key data sources are Stats SA, SAPIA 32 and a range of personal communications with
experts on the data. The data collected at this stage has largely been from the metropolitan
municipalities. This data has been further categorised such that sector and sub-sector
energy use could be derived.

Currently only the metropolitan municipal electricity distribution data is available by tariff.
Eskom distribution coexists with municipal distribution in the province but this was not made
available and estimates of this usage were made from historical data.

Gas in Gauteng is supplied by Sasol gas and Egoli gas and the data was obtained directly
from these suppliers.


                                                            
32
     South African Petroleum Industry Association

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      Coal use was originally estimated and extrapolated from data supplied through the state of
      energy reports of the metropolitan municipalities from 2005. This however fell short of
      expectations and data from past national energy balances carried out by the then
      Department of Minerals and Energy were used to supplement this study.


      6.2 Energy Balance
      The energy balance shown in the table below yields estimates of energy use by sector and
      energy carrier in Gauteng.

      Table 1:Energy balance for GautengProvince (PJ)

                                                   Natural                      % of
                  Electricity Diesel  Petrol Coal  Gas      Parrafin LPG Total Total
Residential             69.5      0.0    0.0  32.7      0.0      3.7  0.4 106.3   16.2%
Government                4.2     0.0    0.0   0.0      0.0      0.0  0.0   4.2    0.6%
Commerce                26.1      0.0    0.0   0.0      0.0      0.0  0.1  26.2    4.0%
Industry                59.1      7.9    0.0 194.3     25.0      0.0  0.0 286.3   43.7%
Passenger
Transport                 5.7       9.4     121.4       0.0         0.0      0.0    0.0 136.5         20.8%
Freight
Transport                4.5       69.8      21.5     0.0           0.0      0.0    0.0  95.8         14.6%
Total                  169.1       87.1     142.9   227.0          25.0      3.7    0.5 655.3
% of Total            25.8%      13.3%     21.8% 34.6%          3.8%       0.6% 0.1%



      6.3 Energy Demand by Sector
      Residential

      Energy Demand in this sector is categorised into three sub-sectors: mid-high income
      households (HiHH), low income electrified households (LoHH) and low income non-
      electrified households (LneHH). Low income households are classified as households with
      an annual income of under R38 400. It was assumed that households that were not using
      electricity for lighting were low income non-electrified. The following table shows the total
      energy consumption of households in the income groups as well as the total energy demand
      per residential end-use.




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Table 2: Residential energy consumption by income group and end-use [PJ]

                                      HiHH    LoHH    LneHH Total
                 Space Heating            2.6    11.1    18.1  31.8
                 Lighting                 6.1     5.2     0.1  11.4
                 Cooking                  6.0     2.8     6.9  15.7
                 Water Heating           21.4     6.0     0.0  27.4
                 Refridgeration           6.2     1.6     0.0   7.8
                 Other                    7.8     4.5     0.0  12.3
                 Total                   50.1    31.2    25.1 106.4
                 % of Total              47%        29%         24%


Table 3: Residential energy consumption by income group and energy carrier [PJ]

                         HiHH      %              LoHH      %         LneHH    %
        Electricity         49.0 97.6%               20.5 65.9%           0.0  0%
        Coal                 0.3  0.6%                9.9 31.8%          22.5 90%
        Kerosene             0.5  1.0%                0.7  2.3%           2.5 10%
        LPG                  0.4  0.8%                0.0  0.0%           0.0  0%
        Total                 50.2                   31.1                  25


Industry

The industrial sector data is inconsistent across the sub-sectors and their end uses.
Industrial energy demand was instead derived from the final energy and proportioned as
shown in the table below.

Table 4: Industrial energy consumption by energy carrier [PJ]

                                     Energy
                                     Carrier           PJ
                                     Coal            194.3
                                     Diesel            7.9
                                     Electricity      59.1
                                     Natural Gas      25.0
                                     Total           286.4
Commerce

Data for the commercial sector was not easily accessible and almost no consistent
disaggregation between sub-sectors was available. The overall energy consumption was
therefore based on available data on current floor area used in the commercial sector (m2)
available from StatsSA. Generic energy intensities per m2 were then used to disaggregate
total energy consumption into end-uses.



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Table 5: Total energy use in the Commercial sector by end-use[PJ]

                                  End-Use            PJ
                                  Cooling              10.1
                                  Space Heating         0.1
                                  Lighting              9.3
                                  Other Thermal         2.3
                                  Other Elec.           3.2
                                  Water Heating         1.2
                                  Total                   26.2


Transport

Transport has been split into two main sectors with various sub-sectors namely, Passenger
Transport and Freight Transport.

Passenger Transport

Passenger transport is split further into public and private transport with public transport
further disaggregated into transport by rail, bus and taxi. Private transport could not be
disaggregated with the available data so all private transport was grouped together. The
table below summarises energy use by sub-sector as well as fuel type.

Table 6: Passenger transport energy use by sub-sector and energy carrier [PJ]

                              Bus   Rail   Taxi  Private Total
                  Diesel        5.3    0.0   0.0     0.0      5.3
                  Electricity   0.0    5.7   0.0     0.0      5.7
                  Petrol        0.0    0.0  15.5  105.8    121.3
                  Diesel        0.0    0.0   0.0     4.1      4.1
                  Total           5.3      5.7     15.5      109.9      136.4



Freight Transport

Freight transport is divided into road and rail freight sub-sectors. The table below
summarises energy use by sub-sector as well as fuel type.

Table 7: Freight transport energy use by sub-sector and energy carrier [PJ]

                                      Road    Rail     Total
                          Diesel         69.0      0.8    69.8
                          Petrol         21.5      0.0    21.5
                          Electricity     0.0      4.5     4.5
                          Total            90.5        5.3       95.8


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6.4 Summary
Overall, the following broad implications for the strategy can be identified from the data
profile:

   •   The industrial sector is the largest energy consumer and is heavily dependent on
       coal and electricity, and is also the second largest user of liquid fuels and therefore
       will be seriously affected by any price increases or constraints on carbon emissions
       from particularly coal-based generation. Sustainable sources of electricity for this
       sector should also be prioritised if growth is to be achieved.

   •   Energy use in the transport sector is also very significant, and therefore the
       dependence on liquid fuels, which are partly susceptible to international instability in
       prices and other issues linked to the inevitability of ‘peak oil’. This relatively high
       consumption also probably reflects the inefficiency of the transport sector (typical of
       South African cities) due to inappropriately designed, sprawling urban layout and lack
       of attention to public transport. It is important that both the sustainability of the
       energy sources for this sector, and the efficiency of use be addressed if economic
       growth is to be sustained.

   •   Households, particularly high income households, are the largest users of electricity
       in the province and electricity saving interventions should be prioritised here,
       particularly in hot water heating. A large portion of households experience either
       energy poverty or use hazardous fuels. The fact that poverty is a major focus of the
       provincial government, and that addressing this problem will mean that the domestic
       sector proportion of energy will increase. Sustainable energy planning and
       implementation in the household sector is therefore also critical.

Finally it is noteworthy that the energy data availability on a provincial basis is very limited or
incomplete, and this affects the ability to analyse current situation and look to the future.
This situation may need to be addressed.




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7.         DRAFT VISION AND BROAD STRATEGIC OUTLINE

           7.1      Draft Vision
As outlined in the report international, national and provincial trends all have a common
focus in prioritising sustainable development for all and cautioning that the uncontrolled
growth in greenhouse gas emissions will ultimately undermine sustainable development.
For the purposes of this report sustainable development is understood to be “development
that meets the needs of the present without compromising the ability of future generations to
meet their own needs” 33 . Development is constantly moving and changing over time – it is
not static and nor does it have an end goal. This report concurs with Winkler 34 that for South
Africa the focus needs to be on development, but in such a way that it takes into account
sustainability from an environmental, social and economic perspective and to this end will
have impacts on climate change and poverty alleviation. It therefore becomes imperative
not to focus on one aspect in isolation but to look at the issues holistically, where they
overlap, where the differences lie and which areas need to be emphasised or given priority.

There are many policies, frameworks and strategies in place at national, provincial and local
levels. Whilst these documents are laudable and give grounding and understanding to the
work that needs to be done, there is some repetition and lack of coordination overall. The
purpose of the Gauteng Integrated Energy Strategy should be to bring all these initiatives
together in such a way as to enable change to happen in a comprehensive, realistic,
collegial and collaborative manner. The strategy should be based on delivery targets that
are attainable in the short term, partly to deal with the current electricity crisis and partly to
pave the way for longer term changes and targets as put forward by many of the documents
such as the Long Term Mitigation Scenario document which was accepted in July 2008.

Before embarking on its strategy Gauteng Provincial Government needs to develop a vision
which will underpin and direct the emerging strategy. An initial draft vision reads:


         A Gauteng province that is powered by a low carbon economy with a significant
         share of national “green jobs”, and accessible and affordable energy services
         that do not impact on the health of people or the environment.




The strategy needs to ultimately be framed by national and provincial policies currently in
place and give guidance and direction to their implementation at municipal level. It should
provide a thread or connection for all work taking place within the Province, thus bringing
cohesion and uniformity to sustainable energy developments and projects.

The Gauteng Strategy for Sustainable Development already sets some energy goals for the
Province viz to:
                                                            
33
     Brundtland Report, 1987. Our Common Future, World Commission for Environment & Development, UNEP
34
     Cleaner Energy Cooler Climate, Winkler, H, 2008
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   o   Reduce use of non-renewable based energy sources
   o   Increase use of alternative fuel sources
   o   Promote efficient energy use
   o   10% renewable energy use by 2015


       7.2     Key Strategic Options
Key Strategy

The Gauteng Integrated Energy Strategy is aimed at creating a common approach to dealing
with energy challenges in the province. Thus broadly the strategy will provide the foundation
for both the short and long term trajectory of Province. It will underpin the work going
forward giving direction and support. More specifically the strategy will give specific targets
and goals that will inform decisions into the future in terms of projects that are ongoing as
well as new projects emerging.

The strategy will cover the following sectors:

   •   Industry and commerce, including small business
   •   National, provincial and local government structures and services
   •   Newly developed and existing residential areas
   •   Previously disadvantaged communities and rural communities
   •   Transport
   •   Energy supply and distribution

The strategy will focus specifically on the following areas of implementation:

   •   Energy efficiency measures – covering all sectors
   •   Developing renewable energy resources – clarifying feasibility of different resources,
       promoting mass roll out of Solar Water Heaters, and viable and affordable renewable
       energies relevant to Gauteng
   •   Addressing energy poverty
   •   Transport – building on what has been initiated, growth of integrated public transport
       within cities
   •   Education, awareness and communication at all levels
   •   Institutional arrangements to ensure effective implementation of the strategy

   •   Monitoring and evaluation and data management

Energy Office



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The Department of Local Government and Housing intends to set up and develop an energy
office after the strategy is in place. The office itself could form a key element of the overall
strategic objectives. The primary purpose of such an office would be to stand as the overall
energy champion of Gauteng Province and in doing so uphold and coordinate the
implementation of the integrated energy strategy. It would be pivotal in providing a strong
leadership presence and link between the spheres of government and between its own
departments, thus bringing players together, forging links between key departments and
municipalities and ultimately facilitating the implementation of national policy at the local
level. National government plays an important legislative and policy formulation role, while
local government is responsible for the implementation of projects at local level. Province
acts as the interface between the two and is thus tasked with the role of implementing
national legislation as well as developing legislative initiatives at a provincial level. Whilst as
stated above Gauteng government has developed a number of important policy documents,
sector strategies and economic plans to ensure that the province continues to have a
positive growth, there is a lack of overall coordination.

The Energy Office could therefore play a significant role in enabling alignment to take place
particularly at provincial level. At a municipal level it would be important to also achieve a
degree of alignment. This might not necessarily entail each and every municipality
developing an energy strategy but rather developing targets and plans that are in
accordance with overall provincial targets and strategy. Given the differing resources
available to municipalities, the specific role of the Energy Office in each municipality will
vary. It may take a consultative role or it may be more active in supporting municipalities to
achieve their goals. In this respect we suggest using and adapting the work already in
place. The office could coordinate a meeting of energy champions from municipal level and
build a committee that oversees the work generally in terms of both policy and
implementation – in other words providing monitoring, evaluation and learning which is key
to ongoing change. The office would also be responsible for coordinating the collation of
energy data for the province.

Finance

The financing of projects is critical in terms of where the money comes from and ongoing
financial support for achieving desired targets. Currently projects are funded in different
ways including CDM projects, donor funding such as DANIDA, government funding at all
spheres, Eskom funding and levies. It is clear that this area needs careful consideration in
order to be aligned with the vision, targets, development of future projects as well as ongoing
initiatives.




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       7.3     Potential Roles of Provincial Government
The practical role of provinces in the energy question is framed by its current resource
availability (people, time, money etc) as well as the political will and ability to see the links
between energy and the varied functions it performs.

Some potential practical roles provincial government departments can play in putting
Gauteng on a more sustainable energy path are listed below.

Local Government

Ensure all local governments are implementing energy efficiency interventions in their
operations and measuring the impact. Based on the current work of the metro municipalities,
sustainable energy strategies or plans can be developed and given to those local
governments who require it. Model by-laws such as for solar water heating could also be
developed and shared with local governments. Local governments could be the hub of
activity for sustainable energy implementation and should be supported to do so. They have
a significant role to play in communication and raising awareness with their constituency.

Environmental Management

Environmental Impact Assessments could be adapted in the following ways:

   •   Including energy considerations in records of decision such as mandatory energy
       efficiency stipulations for shopping complexes or solar water heaters on housing
       developments
   •   Under environmental management, provinces in their assessment of EIAs (which go
       to them in the first instance), could routinely require assessment of GHG implications,
       which are mostly a function of energy use and particularly energy intensity (kWh /
       m2; or GJ / passenger-km)
   •   Providing support to developers to fast track renewable energy project EIAs
   •   Ensuring the proper disposal of CFLs takes place in their region
   •   Sector specific awareness campaigns on energy efficiency and the alternatives in off-
       grid areas for their region e.g. agricultural sector or high income residential sector
   •   Ensure that all the nature conservation areas have energy efficiency interventions
       and /or renewable energy alternatives in place in off-grid areas
Planning

   •   Defining ‘standard’ by-laws that local government could adapt and implement. What
       this means is that the provincial government develops a template by-law that could
       be given to municipalities to gazette or amend and gazette thus facilitating a speedier
       process. The by-laws would apply to current competencies of local government such
       as building regulations.



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  •   Under planning, there could be potential to make approval of development plans
      subject to energy efficiency standards, e.g. commercial buildings designed to less
      that 150 kWh / m2.
  •   Ensuring that the spatial development framework of the province restrains urban
      sprawl.

Housing

  •   Motivate for and/or secure from external sources additional funding for energy
      efficiency interventions such as ceilings and solar water heaters in subsidy housing.
  •   Take an energy services approach to ensure that settlements are developed to meet
      the energy needs of people such as a house that is cool in summer and warm in
      winter (passive solar design), that incorporates hot water services from electricity or
      other energy sources, lighting in the most efficient way (window placements and
      efficient light bulbs); cooking that incorporates more efficient practices etc.
  •   Ensure through the contracts with local government that they work with the new
      homeowners to understand how to live more energy efficiently in their new homes.
  •   Demonstrate in high profile projects the possibility and benefits and lessons from
      these greener interventions - for example the Cosmo City or Urban Renewal
      Projects.

Economic Development:

  •   Work through Economic Affairs and GEDA (Gauteng Economic Development
      Agency) to develop and implement business sector and tourism sector energy
      guidelines.
  •   Promote business clusters such as solar water heater manufacturers, installers and
      maintenance, as well as renewable energy component manufacturing eg turbine
      towers for wind energy or low carbon transport vehicles.

Health

  •   Education on energy related health impacts such as paraffin poisoning, or fires.
  •   Taking the opportunity to make hospitals and clinics sites of learning and
      demonstration on energy efficiency and clean technologies.

Education

  •   Incorporate energy issues into the school curriculum.
  •   Use schools as affirming demonstration sites.




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Public Transport, Roads & Works

   •   Ensure all government buildings (offices, clinics, hospitals, schools etc) initiate
       energy management behaviour change programmes; that appropriate energy
       efficient practices and technologies are installed and used and that a monitoring
       system is in place.
   •   Prioritise public transport and shift resources to support a safe and reliable integrated
       transport service.
   •   Promote energy efficient and low carbon vehicles.

   •   Promote in conjunction with the private sector, a shift from road to rail freight.

Finance

Appropriate taxes and levies to promote the intentions listed above can also fall within
provincial competency, and should be explored.

In summary the key areas where provinces can promote an integrated energy approach in
the short-term include:

   •   Facilitating coordination and synergies amongst the large metros who are already
       pursuing sustainable energy strategies.
   •   Supporting smaller municipalities who do not have the capacity to engage this area
   •   Implement energy efficiency interventions (which has been initiated to a certain
       extent already) in Gauteng.
   •   Promotion of Solar Water Heater mass implementation.
   •   Ensuring that facilities over which they have influence are efficiently built and
       operated (clinics, schools, community facilities etc).
   •   Developing standard bylaws which municipalities can then adopt – e.g. around solar
       water heaters.
   •   Integrate energy (and climate) into all relevant departmental functions.
   •   Energy efficiency ‘deemed performances’ or standards in EIA record of decisions and
       before development approval.
   •   Regional economic planning - renewable energy cluster promotion.
   •   Air quality interventions around local air pollutants and GHGs.
   •   Green Procurement mandatory standards for all provincial departments.
   •   Developing an overarching strategy in conjunction with municipalities (currently
       underway).




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       7.4     Concluding Remarks
What is crucial and will form part of the next step in developing the strategy is to focus on
what is achievable and that might involve taking risks, in terms of the range and depth of
projects and timing. We know from the Stern Review amongst others that the long term
investments in sustainable energy are viable, and pursuing current unsustainable patterns
brings with it inevitable economic decline. This report is intended to give a clear picture of
where Gauteng Province sits in terms of its current status around energy. The next step in
the process is to engage with the stakeholders in order to crystallise the issues and reach a
clearer and shared understanding of the core components of the Gauteng Integrated Energy
Strategy. It is imperative that during the next phase of developing the strategy that the
Department of Local Government and Housing provides the necessary leadership and
coordination that will allow the Gauteng Province to focus on the implementation of the
Strategy.

Finally, it is within our interest to ensure the success of the Strategy. The Stern Review
emphasises the fact that inaction now will result in a much higher cost later. Thus, the longer
we take to implement the strategy, the greater will be the cost to the principles of equity, a
healthy environment and prosperity for all.




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                  8. APPENDICES

         8.1      Abbreviations, acronyms and glossary of terms

CCI      -        Clinton Climate Initiative
CDM      -        Clean Development Mechanism
CFL       -       Compact Fluorescent Light
CO2       -       Carbon Dioxide
DANIDA   -        Danish International Development Assistance
DME      -        Department of Minerals and Energy
DSM      -        Demand-Side Management
EMTT     -        Energy Management Task Team
GDACE             Gauteng Department of Agriculture Conservation and Environment
GDS      -        Growth and Development Strategy
GHG      -        Greenhouse gas
GJ       -        Gigajoule
GWh      -        Gigawatt-hour
GSDS     -        Gauteng Social Development Strategy
GIES     -        Gauteng Integrated Energy Strategy
GPT      -        Gauteng Provincial Treasury
GSSC     -        Government Shared Services Centre
HVAC      -       Heating, Ventilation and Air-conditioning
IEP      -        Integrated Energy Plan
kW       -        Kilowatt
kWh      -        Kilowatt-hour
LED       -       Light-emitting diode
LED’s     -       Local Economic Development Strategies
LFG      -        Landfill Gas
LNG      -        liquefied natural gas
LP G     -        Liquefied Petroleum Gas
LTMS     -        Long Term Mitigation Scenarios
MDG      -        Millennium Development Goals
MEC      -        Member of Executive Committee
MJ       -        Megajoule
MW       -        Megawatt
MWh      -        Megawatt-hour
Mtoe     -        Million tons of oil equivalent
NEP      -        National Electrification Programme
NER      -        National Energy Regulator
NERT     -        National Electricity Response Team
NERSA             National Energy Regulator South Africa
NIRP     -        National Integrated Resource Plan
NSDP     -        National Spatial Development Perspective
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ODA      -       Overseas Development Assistance
OPEX     -       Operational Expenditure
PERO     -       Provincial Economic Review and Outlook
PTP      -       Prioritised Townships Programme
RDP      -       Reconstruction and Development Plan
SANEDI           South Africa’s National Energy Development Institute
SWHs      -      Solar Water Heaters
TJ       -       Terajoule
TWh      -       Terawatt-hour
UEMP     -       Urban Environmental Management Programme (funded by DANIDA)
UNFCCC   -       United Nations Framework Convention on Climate Change




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              8.2      Glossary of Terms:
Amatola Green Power (AGP): is an electricity trading company operating independently
from ESKOM or Municipalities. The electricity which AGP supply is generated from natural
renewable energy (RE) sources in terms of the Department of Minerals and Energy (DME)
guidelines.

Biodiesel: a cleaner-burning diesel fuel made from natural, renewable sources such as
vegetable oils.

Biomass Energy         : a renewable energy resource derived from the carbonaceous waste.

Carbon Footprint: a measure of the impact that human activities have on the environment
in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.

CFL: a relatively efficient light-bulb, using about 25% of the power of incandescent light-
bulb, for the same light output.

Co-generation: The simultaneous production by means of a single source of useful energy.

Constitution: the Constitution of the Republic of South Africa.

Climate Change: A statistically significant difference noted either in the mean state of the
climate or in its variability persisting for an extended period of time.

Demand side management: the planning, implementation, and monitoring of utility activities
so as to encourage customers to modify their pattern of energy usage.

Energy: is a potential ability of a system to influence changes in other systems by imparting
either work (forced directional displacement) or heat (chaotic displacement/motion of system
microstructure). Basic unit of measurement is the Joule (J).

Energy Balance Model: an analytical technique that attempts to account for all energy
coming in and going out of a system.

Energy Audit: an inspection, survey and analysis of energy flows in a building, process or
system with the objective of understanding the energy dynamics of the system under study.
Typically an energy audit is conducted to seek opportunities to reduce the amount of energy
input into the system without negatively affecting the output(s).

Energy Efficiency: a reduction in the quantity of energy used per unit service provided, e.g.,
a reduction in the quantity of motor fuel used per kilometre driven.

Energy conservation: a collective term for activities that reduce end-use demand for
energy by reducing the service demanded, e.g., a reduction in the demand for fuel by
reducing the number of kilometres driven, or reduction in the demand for natural gas for
space heating by lowering the thermostat.


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EnerKey: stands for the focus of the project on “Energy as a key element of sustainable
transformation”. The EnerKey project, a South African – German collaboration, aims to
research and promote sustainable transformation of the urban region of Gauteng, including
the three municipalities of Johannesburg, Ekurhuleni and Tshwane.

Feed-in-Tariff: is an incentive structure to encourage the adoption of renewable energy
through government legislation. The regional or national electricity utilities are obligated to
buy renewable electricity (electricity generated from renewable sources such as solar
photovoltaic, wind power, biomass, and geothermal power) at above market rates set by the
government.

Fossil Fuels: they range from volatile materials with low carbon: hydrogen ratios like
methane, to liquid petroleum to non-volatile materials composed of almost pure carbon, like
anthracite coal.

Gautrain: is an 80-kilometre mass rapid transit railway system under construction in
Gauteng Province, South Africa that will ultimately link Johannesburg, Pretoria, and OR
Tambo International Airport. It is hoped that this railway will relieve the traffic congestion in
the Johannesburg – Pretoria traffic corridor as well as offer commuters a viable alternative to
road transport, as Johannesburg has a limited public transport infrastructure.

Gigajoules: is a 1,000,000,000 joules. It is a unit of energy.

Green Energy Certificate: a system in which generators of electricity from renewable
resources receive a certificate for a predetermined unit of energy produced; such certificates
have a market value and can be bought and sold, and thus provide a financial incentive for
the use of renewable energy.

Kyoto Protocol: an international agreement signed in 1997 at a convention in Kyoto, Japan.
It sets binding emissions reductions of greenhouse gases with an average 5.2% reduction
below 1990 levels for industrial countries.

Load shedding: an electricity policy of turning off or disconnecting certain loads to limit
peak demand.

Millennium Development Goals: are eight international development goals that 189 United
Nations member states and at least 23 international organizations have agreed to achieve
by the year 2015. They include reducing extreme poverty, reducing child mortality rates,
fighting disease epidemics such as AIDS, and developing a global partnership for
development.

Natural Gas: is a gaseous fossil fuel consisting primarily of methane but including significant
quantities of ethane, propane, butane, and pentane—heavier hydrocarbons removed prior to
use as a consumer fuel —as well as carbon dioxide, nitrogen, helium and hydrogen
sulphide.

Net metering: the use of a single metre to measure how much power is consumed and
produced by a house with its own power source (such as solar or wind system).

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Renewable Energy: any energy resource that is naturally regenerated over a short time
scale and either derived directly from solar energy (solar thermal, photochemical, and
photoelectric) indirectly from the sun (wind, hydropower, and photosynthetic energy stored in
biomass) or from other natural energy flows (geothermal, tidal, wave, and current energy).

Ripple control: is a means whereby the local power authorities are able to temporarily turn
off large electrical loads in peoples' homes to limit the impact of peak demand for electricity.

Smart metering: generally refers to a type of advanced meter (usually an electrical meter)
that identifies consumption in more detail than a conventional meter, and optionally
communicates that information via some network back to the local utility for monitoring and
billing purposes.

Sustainability: the fact of being sustainable, preservation of the overall viability and normal
functioning of natural systems.




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               8.3      Key Role Players
DME

The Department of Minerals and Energy was the national department responsible for the
entire energy sector. Their role is to develop, implement and enforce energy related policy,
legislation and regulation. In practice they often adopt a facilitative role rather than providing
strong leadership. It is now known as the Department of Energy.

REFSO

The Department of Minerals and Energy has established the Renewable Energy Finance
and Subsidy Office (REFSO), whose mandate includes the management of renewable
energy subsidies and offering advice to developers and other stakeholders on renewable
energy finance and subsidies.

DNA

DME is the home of the Designated National Authority – the key national authority approving
CDM projects before they are forwarded to the international approval authorities.

NERSA

The National Energy Regulator of South Africa (previously the National Electricity Regulator)
oversees, amongst others, the electricity supply industry. NERSA approves tariffs, is
responsible for electricity sector planning (via the National Integrated Resource Planning
process – NIRP), and sets electricity supply standards.

ESKOM

Eskom is a state owned enterprise and is responsible for generation, transmission and
distribution of electricity throughout South Africa. While Eskom supplies end-users directly, it
is also a bulk supplier to distributors such as municipalities. Eskom has 6 000 industrial, 18
000 commercial, 70 000 agricultural and 3 million residential customers. It owns and
operates its own generation plant, which are mainly coal-based.          Eskom is starting to
promote renewable energy and offers an incentivised tariff for independent power producers
(IPPs) to provide ‘green’ electricity.

DSM

Eskom also runs the major energy efficiency initiative in the country – the Demand Side
Management Programme. Revenue for this programme is collected through the tariff, as
approved by NERSA. DSM programme is significantly underfunded and Eskom and NERSA
are engaged in discussions around a suitable way forward here.




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NEEA

The National Energy Efficiency Agency was established to be a major player in
implementing energy efficiency in South Africa. However it presently has little capacity for
this task, and the major national programme and resources still sit with the Eskom DSM
programme.

DEAT

The Department of Environment and Tourism has developed the LTMS, and thus is a key
player in guiding the country regarding responses to climate change.

DPE

The Department of Public Enterprises is responsible for Eskom - although DME has a direct
role in determining policies relevant to Eskom.

CEF

The Central Energy Fund is involved in the search for appropriate energy solutions to meet
the future energy needs of South Africa, the Southern African Development Community and
the sub-Saharan African region, including oil, gas, electrical power, solar energy, low-smoke
fuels, biomass, wind and renewable energy sources. CEF also manages the operation and
development of the oil and gas assets and operations of the South African Government.
CEF is a private company established under the CEF Act.

NBI

The National Business Initiative oversees the Energy Efficiency Accord for businesses. This
voluntary Accord asks signatories to meet energy efficiency targets. There are 44
signatories, including several large consumers.

REDs

The Regional Electricity Distributors are intended to take over the distribution function played
by Eskom and local authorities. However, the process of establishing the REDs has taken
many years and has been fraught with delays. Timeframes for RED establishment remain
uncertain.

Municipalities

These local authorities are largely responsible for service delivery, including electricity and
gas reticulation. Many of them are electricity distributors.




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City Power

City Power Johannesburg (Pty) Ltd (City Power) was established in 2000 as an independent
municipal entity wholly owned by the City of Johannesburg to supply electricity to
approximately 300 000 customers ranging from domestic to commercial and industrial
properties. The core competency of the business is the purchase, distribution and sale of
electricity within the geographical footprint of the City of Johannesburg. The National
Electricity Regulator granted City Power a licence to trade on 19 December 2001. City
Power is not the sole provider of electricity services for the CoJ. The areas not covered by
City Power (predominantly Soweto and Sandton) are serviced by Eskom.

Power Conservation Programme

Eskom is promoting an electrical energy saving programme – called the Power Conservation
Programme (PCP), which will target the countries biggest industrial users and ask them to
save energy against pre-determined baselines. Punitive tariffs apply where targets are not
met. This scheme is still being debated, as people point out that it is potentially
administratively too complex and potentially unfair on many industries. However, if
approved, it will be a significant implement to reduce electricity use in industry – South
Africa’s major consumer.




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Department of Local Government and Housing

   No 63 Fox Street, Johannesburg,2001

             Private Bag X79,

             Private Bag X86

               Marshalltown

                  2107

         Tel (011) 355 4000/5000

            Fax (011) 834 3670

       Website: www.dlgh.gpg.gov.za

				
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