Programme Director
Honourable Deputy Minister of Energy, Ambassador Thembisile Majola
Honourable Members of the Portfolio Committees on Energy, Public Works and Trade & Industry
Honourable Members of the Select Committee on Economic Development
Director General Thabane Zulu
Deputy Director Generals of the Departments of Energy; Public Works; and Trade and Industry
The Ambassador of Denmark, Ms Trine Rask Thygesen
UN Residence Representation in South Africa
SANEDI Chief Executive Officer, Mr Kevin Nassiep
Our International Partners present
All Government representatives and various organisations in and outside South Africa
Representatives of the business community
Leaders of various community formations
Distinguished Guests
Ladies and gentlemen

Good Afternoon

Today is one of South Africa’s proudest days as we dedicate our Energy Efficiency efforts in the country to officially unveil the energy efficiency label. I would like to use this platform at the Africa Utility Week to share with you what our Government through the Department of Energy has been doing in this sector as well as what we are planning beyond this event. It is a great pleasure that this interaction happens following the Department of Energy’s budget vote speech which was delivered in Parliament last week - on 11 May 2016.

Ladies and Gentlemen, during the deliberations among others, we  reflected on some of the key aspects of the state of energy in South Africa but, central to that we also reflected on the milestones that we have achieved to date. Amongst these we touched on our plans to achieve an energy efficient economy going forward as we implement the outcomes of the 21st Conference of the Parties (COP21) under the United Nations Framework Convention in Climate Change (UNFCCC) and the Sustainable Development Goals that were adopted last September. 

Focusing on the purpose of today’s event, during the budget speech deliberations we alluded to the importance of appliance labelling as an energy efficiency measure. The department has made great strides in diversifying our energy mix by introducing clean energy technologies. It is time that we intensify our efforts as a country to improve the performance of energy efficiency even more by providing consumers with information about the energy usage of their appliances.

You may be asking yourselves “why appliance labelling.” Of course the appliances contribute significantly to the building sector especially if we are to talk about electricity consumption. This applies to the whole building sector, that is residential, public and commercial and as such it would be difficult to disassociate them from the sector target that was set in the National Energy Efficiency Strategy. 

Programme Director, it is perhaps important to say this uncomfortable truth: South Africa is among the world’s least energy efficient countries in the world in terms of its economy. The country’s economy is energy intensive to the extent of approximately 40% of Africa’s total electricity usage, in addition our country is the 11th highest emitter of greenhouse gasses (GHG) in the world. We clearly have to address this issue as a matter of responsible citizenry and in line with our Constitutional obligations. That being said, I am happy and convinced that the strides achieved to date on climate change are demonstrating our commitment to reduce the greenhouse gas emissions. We have implemented various flagship programmes which among others included our successful Renewable Energy Independent Power Producers Programme on the supply side. A lot more work neds to be done on the demand side.

Programme Director, over the past few years, our experience of load shedding has further strengthened our knowledge of the importance of saving energy and also raised awareness in the sector. Distinguished guests, globally, energy efficiency is recognised as the most cost effective way to supply energy. As Government we have put energy efficiency as a key element of our energy mix to address energy security matters. While we celebrate our milestones, it is important that we constantly look into the future and strive to do more. In our next strategy which we intend to complete by the end of this financial year, the department aims for increased targets on the reduction in the national energy consumption by 2030. However, we will be embarking on a consultation process with all the stakeholders and I hope that once the draft strategy is released for public consultation, you will engage with us robustly.

To support the effectiveness of the National Energy Efficiency Strategy, we have published the regulations for compulsory energy management plans. I need to emphasise that we will continue to focus on improving energy efficiency in buildings with a particular focus on household appliances. We, therefore, encourage all stakeholders to play a positive role in saving energy. Ladies and Gentlemen, it is with great pride that the Department of Energy, together with our domestic and international partners, announces the official rollout of the national ‘Save Energy’ campaign. It should be noted that the activities of the energy efficiency campaign are a build-up on the government Energy Savings campaign that was launched by the Honourable President, Mr Jacob Zuma on the 13th of March 2015.

In launching the campaign, the Honourable President appealed for the public, private sector and every citizen in the country to make energy savings a priority. After all, our actions in this instance will have a positive impact in terms of assisting the country to reach our targets of reducing carbon emissions, and simultaneously avail more power to the grid which can be directed towards economic development activities.
The focus of the campaign in 2016 will be on large public and private buildings , including retail complexes and the property market, large residential and corporate developments.

The ‘Save Energy’ campaign aims to create awareness about the significant role that energy efficient buildings can play in reducing the demand on energy, saving a scarce resource,  creating small entreprises, upskilling our people and growing the economy.
As government, even though we have committed to increase our energy capacity, government alone will not resolve all the challenges – we need all of society to come on board in this effort. We are here to reach out to all key role players within South Africa’s building sector through the ‘Save Energy’ campaign and encourage the sector to find more effective ways of saving energy. Your willingness to participate in this campaign is important for the country’s success in the energy efficiency space. Your contribution will help to highlight the need for South Africa to become energy efficient and adopt a culture of saving energy.

Honourable guests
You may be aware that we have already implemented other energy efficiency interventions such as energy efficiency allowances through the Tax Incentive programme in terms section 12L of the Income Tax Act;  the Energy Efficiency and Demand Side Management Programme continues with efforts focusing on reducing the electricity consumption associated with municipal infrastructure. For example, we are targeting energy consumption associated with street and traffic lighting, retrofitting of buildings and improving the efficiency of wastewater treatment plants among others. We have successfully completed the roll out of the energy efficient street lighting programme in the Nelson Mandela Bay Municipality, and we have now embarked on a national rollout to take into account the lessons learnt from the pilot project.

The savings verified to date by various municipalities, primarily by retrofitting lighting in buildings, LED street lights and traffic lights, the installation of smart meters and energy management systems are in the region of 1 terra watt-hour from an investment of about R400 million. This proves the business case for energy efficiency. To take the efforts a step further, we are now in the process of introducing reforms like energy efficiency appliance labelling standards and certification for energy efficient compliant buildings. In addition, the DoE is collaborating with local development financial institutions, donor countries and other international partners to conduct energy efficiency audits and recommendations to improve energy use and to assist them in cost savings and contribute to more energy conservation.

The two main policy instruments driving the Standards and Labelling project are technical regulations that set Minimum Energy Performance Standards (MEPS) for the listed appliances and the introduction of an energy efficiency label that informs appliance users of the energy consumption level of appliances. This was achieved through a great collaboration with key stakeholders, including the South African Bureau of Standards (SABS) which set the compliance test procedures, the National Regulator for Compulsory Specifications (NRCS) in development and promulgation of the MEPS, appliance manufacturers and the retail sector.

I would like to thank all the government Departments involved on these efforts, including the Department of Trade and Industry (the dti) and the Department of Public Works. In addition I wish to express the governments appreciation for our value adding partnerships with the United Nations Development Programme (UNDP) as supported by the Global Environmental Facility (GEF) who are working with  us on the Standards & Labelling programmes, which the Danish government is instrumental in  supporting our programme towards energy efficient buildings. I strongly believe that as a collective we will win this WAR on energy efficiency. Let me also extend my gratitude to all the State Owned Entities and Companies such as SANEDI, SABS, NRCS in taking the country forward on energy efficiency initiatives.

Ladies and gentlemen . . .
It is with great pleasure to announce that the Minimum Energy Performance Standard (or MEPS) for 11 of the 12 appliances listed for the Standards and Labelling Project have already been promulgated. MEPS for electric geysers are projected for promulgation during the course of this year. We have also finalised the label designs and developed a label guideline to assist suppliers with the dimensions of the labels. The new label design is based on the initial design in the relevant standards but, with the Energy Efficiency logo at the top of the label. It should be noted that the new label will only be enforceable 12 months from 01 April 2016 to give appliance suppliers ample time to switch to the new label.

This label will be affixed to all appliances that meet the MEPS to give end-users a choice when purchasing appliances. A campaign dubbed ‘Appliance Check’ will be rolled out to raise awareness on the use of the label and benefits of using energy efficient appliances.

Honourable Guests
Please allow me as I conclude to unveil the new South African Energy Efficiency Label and Save Energy Logo!!