Announcement by the Minister of Energy D Peters at the signing ceremony of a bilateral agreement on energy efficiency

Ambassador Rudolf Baerfuff
The Representatives of the Swiss Agency for Development and Cooperation
Government officials
Members of the media

As the South African government we are excited about this agreement as it will assist us in gravitating faster to our goals and objectives, of realising energy efficiency in our buildings.

The Swiss Agency for Development and Cooperation is funding a R120 million climate change mitigation programme in South Africa. The purpose of this agreement shall be to provide financial support to the Department of Energy (DoE) in order to contribute to the energy efficiency monitoring and Implementation project.

The SDC shall support DoE in monitoring the achievement of targets for energy efficiency in the building sector and within this context; the Project shall have the following two components:

  • Monitoring of energy efficiency targets in the building sector support to the DoE
  • Cooperation (capacity building within municipalities) support to the South African Local Government Association (SALGA).

Ladies and gentlemen, the SDC shall provide a grant contribution of a maximum amount equivalent to ZAR13 950 000 (thirteen million, nine hundred and fifty thousand rands) to the DoE.

The government of South Africa and the government of Switzerland recognise climate change as a fundamental risk to future development and livelihood. Based on the South African Long Term Mitigation Scenarios (LTMS) the different options for climate change reductions have been assessed and it is acknowledged that energy efficiency is one of the most cost-effective mitigation options in South Africa.

This is in line with the South African Strategy for Energy Efficiency launched in 2005 but implementation was constrained by lack of capacity at national, municipal and the sector practitioners’ level. Also in view of the South African commitment at COP15 to actively demonstrate contribution to climate change mitigation the monitoring of energy efficiency efforts is of national high importance.

The programme is committed over four years from 2010 to 2013 and will include focus on building local ownership, facilitating South-South Know-how and technology transfer and regional outreach. The programme will be implemented through and in close collaboration with local actors from government (central and municipal levels), research institutions, non-governmental organisations (NGOs), private sector supported by regional and international best practice including Swiss expertise.

The overall programme outcome is: “to contribute to a significant reduction of energy consumption in the building sector through enhanced energy efficiency in the full life cycle of buildings.” The full programme operates from a holistic view that the building sector energy efficiency improvement can only be successful if there is sufficient capacity at all levels of interaction; not only an enabling policy environment but also actual implementation capacity at the local level.

It is therefore essential to allow this process to run parallel to the monitoring and documentation, as interaction with the municipalities is crucial because municipalities are at the forefront of energy consumption. It is of strategic importance that there is a local level focus with regard to the energy efficiency campaign if the impact is to be of significance and maximised.

As a department we are of the view that, improving energy efficiency in the building sector requires an expanded capacity at many levels.

It requires capacity to implement and coordinate interventions and campaign at local level with various categories of consumers.

Of equal importance to us is the need to ensure that new constructions and retrofitting of existing houses and buildings comply with building codes and standards that incorporate best practice for energy efficiency and green design. It also requires a greater understanding of the effects of pricing and fiscal tools as one of the drivers for energy efficiency implementation.

We are also pleased that this programme is committed to contribute to the reduction of CO2 emissions in South Africa through energy efficiency interventions at policy, monitoring, research, training and implementation level.

The project will further contribute to closing the gaps between the intensions of the National Energy Efficiency Strategy endorsed in 2005 and its implementation. By monitoring the energy efficiency achievements, tools can be generated to support the municipalities to manage energy efficiency interventions and improvements in the building sector.

The capacity building and implementation of the phase of this project at local government level is earmarked for the municipalities of Sol Plaatje, Rustenburg, Polokwane, Mbombela and King Sabata Dalindyebo. This is under the auspices of SALGA at a cost of R13 million, which is also aimed at improving the way in which the municipalities collect and compile their electricity sales data. That data in turn will be used by the DoE for monitoring electricity consumption figures.

The energy efficiency monitoring project staff will be housed within the department’s offices in Trevenna and overseen by a steering committee comprising of the representatives of the Swiss Development and Cooperation Agency, the department and SALGA.

In conclusion, members of the media,

This is in line with the South African Strategy for Energy Efficiency launched in 2005 within which it will be addressing constraints identified during the implementation of the strategy by lack of capacity at national, municipal and the sector practitioners’ level to measure and monitor the impact.

It also addresses the South African commitment at COP15 to actively demonstrate contribution to climate change mitigation in the monitoring of energy efficiency efforts which is of national high importance.

This programme will support the recent clean energy ministerial initiatives committed by South Africa during the ministerial engagement held on 19 to 20 July 2010. The direct support/link will be on the International Smart Grid Action and Network which focuses on among others the improvement of operational efficiency and application of energy efficiency technologies to their full potential; Super-efficient Equipment and Appliances Development (SEAD) and Continuous Energy Performance (CEPI) initiative.

I thank you

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