Hendricks, Energy Efficiency Campaign Launch, Presidential Guest House
7 March 2006
The Ambassador Torben Brylle,
Ladies and gentlemen
South Africa has a proud heritage of internationally competitive electricity
prices, emanating from the efficient extraction and utilisation of our abundant
coal resources. For the average urban South African electricity has been
largely taken for granted a commodity as readily available as water from a tap
or bread from a grocer. Black-outs were unthinkable.
And yet, today, we are obliged to concede that our capacity to deliver
electricity is not infinite. Collective effort is required to prevent us having
to construct more expensive power plants to meet the rising demand for
electricity. A country that is hungry, hungry for opportunities to grow its
economy will inevitably consume greater resources in its pursuit of self
sufficiency. Our natural resources are finite and although renewable energy
offers the potential of displacing some fossil fuel use, it is energy
efficiency that we believe will ultimately make an important contribution to
energy security of supply.
Energy and its impact on global warming:
Ladies and gentlemen, in South Africa today, we are all experiencing the
effects of global warming and climate change. Examples that impact directly on
us is the geographical area of malaria is changing, we are experiencing extreme
weather conditions and scientists estimate that 2005 was the warmest year in 10
000 years.
That is why energy efficiency and renewable energy have become a priority in
the world today. Energy efficiency and renewable energy are some of the least
risky and most cost effective ways to reduce against climate change and the
effects of global warming.
Renewable Energy Finance and Subsidy Office:
Ladies and Gentlemen, tonight I am pleased to announce that my Department
and National Treasury approved the renewable energy subsidy scheme in September
2005. This new initiative will serve to promote the generation or production of
renewable energy. The scheme which as funding of R14, 5 million for the period
2005/6 to 2007/8 will focus on providing once off capital grants to eligible
projects. A more sustainable long term support mechanism is currently under
development by the Department and will be announced in due course.
Industrial energy efficiency:
Programme Director, while use of renewable energy is very important it is
really the efficient use of energy that requires our attention at this point.
It has been said that the cleanest unit of energy available is the one that is
not produced and we must now consider where we can start to conserve that
energy in our own environments. In 2005 my predecessor, the current Deputy
President, signed the Energy Efficiency Accord with major industry groupings in
South Africa. Industry consumes the biggest amount of energy in South Africa
and it is in this sector, therefore, that the biggest savings can be achieved.
Benefits of a sound energy efficiency strategy include:
* Increased productivity
* Improved and stable product quality
* Reduced operating costs
* Protection of the environment
I am very proud to report on the success of Mondi Business Paper Mill in
Richards Bay who managed to reduce its purchased energy consumption by more
than 40 percent! Together with the energy saving they also realised water
savings of 18 percent. The annual energy and water cost saving is about R38
million which goes straight to the bottom line. This saving is amazing and I am
informed that the Mondi plant has already exceeded the 2015 target as set by
the national energy efficiency strategy of South Africa. Further, they have
already indicated that they plan to improve their energy efficiency even more.
Can we applaud them for showing us what can be achieved and for their
contribution to energy efficiency.
Energy Efficiency in Public Buildings:
Ladies and Gentlemen, government has also been looking at energy efficiency
and the Department of Public Works in close cooperation with Eskom has
implemented various energy efficiency measures in public buildings. For example
the one military hospital in Pretoria has achieved an approximate savings in
energy of one mega watt! I believe that similar results can be achieved in most
commercial buildings throughout South Africa.
Energy efficiency in commercial buildings:
Unfortunately and too often in South Africa contractors, architects and
builders develop and build exclusive hotels and apartment blocks along our
beautiful coastline without taking energy efficiency and its benefits into
consideration. This is just an example of why my Department will in the future
develop a rating system for buildings in which the energy consumption of a
building will form an integral part of the selling price of such a building.
The more energy efficient a building, the higher the price it can be sold for
simply because itâs operating costs will be much lower than would normally be
the case.
Energy efficiency in the residential sector:
Programme Director, government is leading by example with the Deputy
President and various Cabinet Ministers houses being retrofitted with more
energy efficient technologies. We are using these houses as test cases to show
what savings can be achieved by energy efficiency in a house. The average
estimated savings in each of these facilities is expected to be in the order of
40 percent which I think you will agree is quite remarkable. If we as Ministers
can demonstrate that such savings are possible, then you will benefit by
implementing energy efficiencies into your own homes.
The Osram project for the Western Cape:
Ladies and Gentlemen, one of the most exciting areas for energy efficiency
in houses, which we will be implementing shortly in close cooperation with
Eskom and Osram, is the distribution of five million energy saving Compact
Fluorescent Lamps (CFLs). These lamps will be distributed in the Western Cape
and I believe this will go a long way to help alleviate some of the problems
experienced in that region. If one considers that one of the two Koeberg units
can supply 900 mega watts and the use of these CFLs will lower the peak demand
by approximately 100 mega watts then you will appreciate the full extent of
what we can achieve through this initiative.
Think what more can be achieved if solar water heating could be introduced
in the short term in the Western Cape, where your geyser is roughly responsible
for 40 percent of your household energy bill. To this end my Department is
currently investigating the opportunity of using demand side management funds
to promote solar water heating in the Western Cape.
At the same time I want to urge all the people of Cape Town to become more
energy efficient. Remember - switch off any device that consumes energy when it
is not in use. A few years ago Brazil had a severe drought. Brazilians proved
that switching off hi-fis and televisions not in use could save significant
amounts of standby energy. In South Africa we are entering a phase during which
electricity demand is growing rapidly but I firmly believe that if we are
conscientious about energy conservation we will be able to defer the
construction of expensive power plants!
I would in the future like to investigate mandatory solar water heating for
new households once pilot projects have been undertaken and appropriate
technology standards are in place, we will be able to assess the viability of
such a proposal.
Three steps to energy efficiency in the household:
Ladies and gentlemen, I would want to urge everyone particularly the more
affluent people in South Africa who have bigger energy consumption per capita
than the rest of the population that they all have a responsibility to reduce
our energy demand. I therefore want to present to you the basic âthree-stepâ
approach to becoming more energy efficient as an individual:
Step 1: Use of energy efficient light bulbs
Replace all the incandescent light bulbs in and outside your house with compact
fluorescent lamps.
Step 2: Reduce fuel consumption
Those of us who drive modern vehicles with on board computers can see their
fuel consumption. When you accelerate and see the fuel consumption increasing
to 30 litres per 100 kilometres, I am sure that you will automatically lift
your foot off the accelerator and take it easier. Just by doing this you could
reduce your fuel consumption by 5 percent. Indeed, I urge people to make a
graph of their fuel consumption so that it can be managed properly. You will
notice a dramatic decrease in your overall fuel consumption if you drive at 110
kilometres per hour instead of 120 kilometres per hour. Not to mention the
added benefit of reducing your risk of having an accident. And do not forget
that diesel vehicles are much more energy efficient than petrol vehicles.
Step 3: Use solar energy to heat water
Install solar water heaters in your house and office blocks. Although the price
of this technology is more than conventional geysers it is coming down as
greater numbers of people use them and economies of scale are achieved in their
production. The small additional costs of a solar water heater will have long
term benefits and I encourage everyone in particular more affluent members of
our society to use solar energy.
Appliance labelling:
Programme Director, there are many other area where we can implement energy
savings and already my Department has introduced âAppliance Labellingâ for
refrigerators. This label indicates the expected average energy consumption of
the appliance which is rated on an A to G scale, with A appliances being very
efficient and G appliances being very inefficient. The A standard for appliance
energy consumption has been published with the assistance of the South African
Bureau (SABS) and all appliance manufacturers who incidentally also signed
their commitment to energy efficiency last year. My Department is expecting to
receive donor funding for this project from the Global Environmental Facility
(GEF); this will enable large scale roll out of appliance labelling on all
household appliances sold in the future.
Energy efficiency in vehicles and fuel:
Programme Director, energy savings in fuel consumption by motor vehicles is
also a priority for my Department and we are working in close cooperation with
National Association of Automobile Manufacturers of South Africa (NAAMSA) and
vehicle manufacturers in South Africa to introduce a vehicle label in January
2008. This will coincide with the proposed new vehicle emissions legislation
that the Department of Environmental Affairs and Tourism (DEAT) will introduce.
The vehicle buyer will also have the fuel consumption of the vehicle as
available information before they make the purchase decision.
Ladies and gentlemen, if every South African owning one of the 6 million
private vehicles on our roads could drive more efficiently and save only 5
percent on their fuel bill, South Africa could save more than R4 billion on the
cost of fuel consumed that is 0.5 percent on savings alone.
One possible means of reducing the demand for fossil fuels in the economy
relates to the development of a bio fuels industry. Cabinet has tasked me with
developing a strategy to determine the job creation opportunities that would
result from introducing bio fuels as well as determining the means required to
establish a market for these products. Our state owned entity, Central Energy
Fund (CEF) Pty-Ltd have been mandated to develop projects in the bio fuels area
and I am pleased to hear that they are investing in the Sasol bio diesel
project as well as the Ethanol Africa project. We look forward to the
opportunities arising from bio fuels contributing towards the integration of
the 1st and 2nd economies through sustainable job creation in rural areas.
Energy efficiency in clothing:
Programme Director, energy efficiency also applies to what we wear. Let me
give you an example of what I mean. The dress I am wearing tonight is energy
efficient. It was hand washed in cold water and then allowed to drip dry! We
have seen this principle being applied in other countries where recently in one
of the Pacific Rim countries that experiences high humidity, men's traditional
clothing style of two piece suits were replaced by cool, short sleeve cotton
shirts to specifically reduce the use of air conditioners in that country.
Perhaps in the new energy bill I should consider passing a law that all South
African men be allowed to wear beautiful Madiba shirts to work so that
companies can save on the energy consumed by air conditioners! There really is
no end to what can be accomplished when one really starts looking at energy
efficiency.
The energy efficiency agency:
Before concluding, I would like to leave you with more exciting news. I have
decided to establish an energy efficiency agency, an agency that will look at
different energy sources and their efficiency in a more coordinated manner.
The energy efficiency agency will be created as a division of the CEF Pty
Ltd and will oversee the demand side management and energy efficiency projects
currently undertaken by Eskom and others in the country. This will include
overseeing the measurement and validity of these projects. I have therefore
signed a directive to CEF to have the national energy efficiency agency
established by 1 April 2006.
Conclusion
To conclude ladies and gentlemen, we must all remember that improving energy
efficiency is one of the easiest ways to save money, increase profits and
reduce costs. Experience has shown that in many cases, 10 percent of energy
costs can be saved without any capital expenditure.
Energy efficiency and energy savings also have long term benefits to the
environment and the economy.
In closing I ask all of you to make this extremely important campaign a
success.
Thank you
Issued by: Ministry for Minerals and Energy
7 March 2006
Source: Department of Minerals and Energy (http://www.dme.gov.za)
