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Date : 04/05/2005
Source: Department of Minerals and Energy
Title: Mlambo-Ngcuka: Launch of Energy Efficiency Month


Introductory remarks by Minister of Minerals and Energy, Phumzile Mlambo-Ngcuka, at the media briefing for the launch of the Energy Efficiency Month

Worldwide, nations are beginning to face up to the challenge of sustainable energy – in other words to alter the way that energy is utilised so that social, environmental and economic aims of sustainable development are supported.

The existing energy policy of South Africa is captured within the White Paper on Energy Policy (1998). The policy aims to provide the nation with wider access to energy services, by various means, whilst ensuring that the environmental impacts of energy conversion and use are minimized as far as possible. This is of relevance to Africa as a whole, as South Africa uses some 40% of the total electricity consumed within the continent.

I am therefore happy to announce that I have approved the Energy Efficiency Strategy for South Africa and made South Africa one of a few countries in the world with such a strategy. The Strategy sets out energy efficiency targets to be achieved by 2015 for the different sectors as follows:

* a total final energy demand reduction of 12% (all sectors combined)
* industry and mining - 15% reduction in energy demand
* power generation – 15% reduction in parasitic electrical usage
* commercial and public building sector – 15%
* residential sector – 10%
* transport sector – 9%

New Generation Capacity

It is an open secret that South Africa will run out of generation capacity by 2008. An amount of approximately R60 billion will be spent on new generation capacity in the period up to 2015. If there is a reduction on energy demand as a result of our energy efficiency drive of 15% as proposed, it could amount to a R9 billion saving.

Energy Efficiency Initiatives in Government

In its drive to become more energy efficiency the Department has retrofitted 4 buildings namely, the DME building, 120 Plein Street, NER building and the Union Buildings and the expected cost savings per annum amounts to approximately R640 000. The CO2 savings in tones per annum amounts to 734.

Savings in households

This sector used 360 Petajoules in 2000 in the form of coal (11%), petroleum products (7%), biomass (53%) and electricity (29%). The transition towards the use of higher calorific value fuels and a reduction in use of thermal energy consumption will be driven by energy efficiency standards in housing, generally higher standards of living accompanying economic growth of 2.8% per annum and the electrification programme. The following measures and interventions will be used for the residential sector:

* mandatory standards
* appliance labelling
* efficient lighting
* energy efficient coal stoves, wood stoves and liquid fuel stoves.

An ongoing public awareness drive namely the Energy Efficiency Month, which is officially being launched tonight will have to continue and should continue throughout the year in future in order to achieve the 10% target for households by 2015, taking into consideration that changing people’s lifestyle is by no means straightforward.

Water is also conserved by being energy efficient – for every kilowatt hour saved approximately 1 litre of water is saved as well.

Liquid Fuels

Today saw yet another increase in the price of petrol, diesel and illuminating paraffin. While this is a concern for government, consumers also have a role to play in reducing the effect this has to their spending or savings.

The Transport Sector is the second largest consumer of energy and it is expected to grow considerably in the medium-term. A target of 9% has therefore been established as a realistic but challenging objective for 2015. This target has assumed the introduction of the following:

* labelling system for vehicle energy consumption accompanied by other measures (legislative and otherwise) to promote vehicle efficiency
* technology upgrades
* longer term impacts would include public transport systems, moving road to rail and spatial planning.

A study done by my Department found that the biggest opportunity to improve vehicle efficiency is to switch to diesel. New technology diesel engines will become available when our new low sulphur grade diesel specifications come into effect in January 2006 and this will help the introduction of cheaper more efficient diesel engines.

The indications are that this would result in improved diesel fuel efficiencies between 30% and 40% which translates to a saving of approximately a quarter of a billion Rands saving per annum for every 2% increase in diesel over petrol usage by motorists.

Illuminating Paraffin

The new National Standard for Non-Pressure Paraffin Stoves and heaters has been completed and is currently awaiting final approval from the Standards Approval Committee at the SABS. This is anticipated to be ready in May 2005. The new Standard will improve the safety of these stoves a lot. Currently stoves have to be replaced every three to four months while the new stove may last for one year. The cooking time can be reduced as the stove is efficient and paraffin consumption will also improved giving savings to users.

Energy Efficiency Month

The Energy Efficiency Month will continue for May 2005 until August 2005 this year and longer next year. The following are the highlights of the month:

* 75% of the population will be reached with radio messages and tips on being more energy wise with specific emphasis on community radio stations
* taxi rank promotions in all 9 provinces on the busiest routes
* street theatre and other promotions at selected stores
* a number of municipalities have agreed to print energy efficiency messages on their electricity accounts during this time
* a number of magazine, newspaper and television articles and advertisements will be done
* a schools competition focusing on ten-year olds as energy forms part of their curriculum
* poster competition in Worcester.

BP also indicated that they would like to launch their new very energy efficient building and this will also take place during the month.

Energy Efficiency Accord

South African business and Government recognise that improvements in energy efficiency are needed in South Africa to remain competitive internationally. We need to deal effectively with potential electricity capacity shortages, environmental concerns and the steadily rising price of all energy sources.

The business sector in South Africa is committed to energy efficiency because it makes both economic and business sense. Many companies and industries are already committed to the principle of energy efficiency and a doing significant work in the area.

It is against this backdrop that the National Business Initiative, with the support of Business Unity South Africa, has facilitated a voluntary Energy Efficiency Accord which will be signed tonight.

In order for the accord to be meaningful, it requires broad commitment to energy efficiency by senior leaders of a variety of industrial energy users. The accord enables collaboration to achieve national objectives and to develop more detailed commitments within one year for individual sectors. This allows sectors and enterprises the freedom to work at their own pace and deal with their own issues.

The Accord is flexible in approach, allowing industries to proceed at their own pace and recognizes the need for in-depth consultation with each sector regarding meeting of targets.

Appliance Labelling

We are also launching the appliance label for fridges tonight.

The Label

Energy efficiency labels are informative labels affixed to manufactured products indicating products' energy performance and efficiency in a way that allows for comparison between similar products or endorses the products' use. Energy efficiency standards are a set of procedures and regulations that prescribe the minimum energy performance of manufactured products. Together, energy efficiency standards and labelling can be the most cost-effective means to help South Africa reduce energy demand while stimulating economic growth.

The label is identical to the informative label used in European Union (EU) member states with the only difference being that the EU flag is replaced by our unique South African symbol. This symbol is the DME symbol for our Energy Efficiency Initiative.

In real life the product will be graded either A or down to G – with G being the poorest performing product in electricity terms. The grading A to G will be found as part of the instruction manual inside the box of the appliance. Obviously the retailers can display the grading on the appliances in their shop for those appliances that have been un-packed.

Where will I find the label and when?

The DME in close collaboration with all the sector players – in particular the manufacturers have decided to start the labelling initiative with labelling of refrigerator. Why? Mainly because all electrified households typically purchase a refrigerator as the first electrical kitchen appliance. The label should be in the shops as from late May 2005 and from next year we should be able to find labelled refrigerators all over South Africa. Parallel to household refrigerators we will also ensure and support the labelling of household freezers. Hereafter follows products such as front loading washing machines, tumble driers, electrical stoves etc.

When will it become mandatory?

The SABS has agreed that the process will start to make the label and standard mandatory and this will take approximately 18 months.

I am very happy to see all the manufacturers of fridges here tonight and also have them sign their commitment to this process.

Conclusion

The DME, NER and Eskom are undertaking a number of activities to ensure energy efficiency in the country but I would like to take this opportunity to urge every single person here tonight to become energy wise and help to create an energy efficiency culture in South Africa.

Let’s make every day an Energy Efficiency Day.

Thank you.

Issued by: Department of Minerals and Energy
4 May 2005

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