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Date : 17/08/2006
Source: Department of Minerals and Energy
Title: Sonjica: Energy Efficiency Month 2006 and Beyond Campaign


  Media address by Minister Buyelwa Sonjica, Minister of Minerals and Energy on Energy Efficiency Month 2006 and beyond campaign

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
   

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