B Sonjica: Energy Efficiency Month 2006 and beyond campaign

17 August 2006

Esteemed business guests
Ladies and gentlemen
Members of the media

Ladies and gentlemen, I would want to urge all of you in this great
gathering of responsible business leaders, and who are part of the one percent
of the world’s population who have savings in the bank and who have a bigger
energy consumption per capita than the rest of the world population, we all
conserve energy.

Energy efficiency is not just a South African issue; at the recently held
United Nations Conference on Sustainable Development and the Group of Eight
(G-8) Summit in Russia, energy security was highlighted as important for
emerging economies. Energy efficiency was also cited as one of the strategies
that we have to curb carbon emissions, which incidentally have an impact on
climate change. The exciting part about energy efficiency is that it pays for
itself in most cases and even generates savings.

My department recognises that energy efficiency offers a short-term solution
to some of our immediate challenges. In its holistic approach the department,
while promoting the efficient use of energy, also promotes the diversification
of the country’s primary energy sources through promoting renewable energy and
other new technologies.

Access to energy can make a real difference to people’s lives. Poor people
see energy as a priority but do not want energy itself; they want the services
it provides - cooking, heating, lighting, water pumping, transport, etc. The
poor spend a lot of time, effort and income obtaining these energy
services.

In South Africa currently, we are all experiencing the effects of global
warming and climate change. And that is why energy efficiency and renewable
energy have become a priority in the world today.

Industry and commerce consumes the biggest amount of energy in South Africa
and therefore the biggest savings can be achieved in these sectors. South
African business has a crucial role to play in the energy efficiency drive, not
only to benefit on their bottom-line but also to contribute to the energy
future of the whole country.

While all sectors offer opportunities for significant energy reductions, the
Department looks to industry which could make the greatest contribution in
meeting the targets set out in the National Energy Efficiency Strategy. The
strategy states industry’s consumption as 47% of the total energy consumed in
the country.

The Energy Efficiency accord, which the National Business Initiative
facilitated and was signed between business and government at the highest
levels, has aided the department in its work in the industrial sector. It is
encouraging to see business leaders engaging government on a voluntary basis on
this vital issue.

In 2005, my predecessor’s predecessor and now the honourable Deputy
President, signed the Energy Efficiency Accord between Government and business.
It makes me proud to be here at the anniversary of the signing and acknowledge
the companies who have taken up the energy saving baton. You have shown your
dedication to the national energy efficiency drive not only by signing the
accord but making energy efficiency a way of doing business. Energy efficiency
is every person’s responsibility and we are all accountable. I want to commend
the signatories for making this responsibility their own.

The Accord’s success over the past year has been in relation to the
commitment shown by industry and the collective effort in formulating
appropriate monitoring systems. These monitoring systems have aided companies
to measure the effects of their energy improvements. Case studies have been
developed by National Business Initiative (NBI) member companies such as Mondi,
Sasol and Holcim. For example, Mondi’s energy savings in their Richard’s Bay
plant amounted to over 40% and Holcim’s energy savings at their Dudfield Kiln
amounted to 15%. I am sure these are not the only success stories. This is one
of those times where it is important to blow your trumpet, so do not be
shy.

I want to commend the National Business Initiative for its co-ordinating
role in support of the Energy Efficiency Accord signing. The NBI has make
energy efficiency a priority and we appreciate your endorsement and support as
a very important unifying body in South African business. It is good to see
that businesses are making national priorities their priorities. I am committed
to this energy saving partnership between the NBI and Government and will give
my support to expand the number of Accord signatories.

But, I am also happy to report that government is not only calling for you
to comply but are also leading by example. All the State-Owned Enterprises
(SOE) have been requested to make energy efficiency a part of their way of
conducting business. The Central Energy Fund (CEF) Board was the first to agree
that CEF and all its subsidiaries will initiate energy efficiency activities
and measures and others are following. The Department of Public Works (DPW) in
close co-operation with Eskom, has implemented various energy efficiency
measures in public buildings and the roll-out is well underway. The savings
seen in these public facilities can easily be achieved in the commercial arena.
Furthermore, on a more personal note the Deputy President and various Cabinet
Minister’s houses are in the process of being retrofitted with more energy
efficient technologies. The average estimated savings in each of these
facilities is expected to be in the order of 40%, which is quite
remarkable.

Today we welcome several new signatories to join the accord. Many of these
companies have already implemented energy efficiency in their organisations but
see opportunities in acting collectively through the Energy Efficiency Accord.
These signatories include BHP Biliton, Woolworths, Mittal Steel, Richard’s Bay
Coal Terminal, Unilever and Advanced Micro Devices (AMD)

My commitment to the efficient and sustainable use of natural resources
remains and the need to change the way in which we do things by ensuring
equity, focusing on sustainable solutions and advancing cost-effective
technology to promote sustainable development.

Solving the electricity crisis in the Western Cape was another strong
partnership in energy saving. I want to acknowledge the contribution that the
awareness campaign made towards saving energy and averting power outages during
the winter. All the partners in the endeavour need to be commended. It is a
true inspiration to see business, consumers, local governments and the public
sector working together to find solutions.

In addition to the now well-known television power alerts, the Department of
Minerals and Energy, in close co-operation with Eskom and various Compact
Fluorescent Lamp (CFL) suppliers, distributed millions of CFLs in the Cape Town
area that contributed significantly to alleviating the power problems
experienced in the province.

Energy contributes to all three pillars of sustainable development
(economic, social and environmental), and plays a crucial role in helping to
achieve the Millennium Development Goals. Africa needs economic and industrial
growth and also needs to ensure that the environment is preserved for our
children and their children.

All major industrialised nations face the same problem. Those engaged in
manufacturing face a continual struggle to produce goods at prices, which allow
us to compete internationally and provide employment for fellow Africans.
Improving energy efficiency is one of the easiest ways to increase profits and
reduce costs, and delaying the building of new power stations. Experience has
shown that in many cases, 10% of energy costs can be saved without any capital
expenditure.

So, it is in your power to save energy and save money for your business
while reaping the additional benefits of a sound energy strategy:

* increased productivity
* improved and stable product quality
* reduced operating costs
* protection of the environment

Personally, I believe we can meet and even surpass the targets set in the
Energy Efficiency Strategy. But we must see energy use in the context of the
need for additional investment, economic growth and job creation. The purpose
is thus not to restrict enterprises in their economic objectives but rather to
encourage the efficient utilisation of scarce resources.

Thank you to everyone contributing to the Energy Efficiency Month 2006
(EEM2006) campaign and may it go from strength to strength to benefit of our
nation.

It is in your power, embrace energy efficiency.

Thank you

Issued by: Department of Minerals and Energy
17 August 2006