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Energy Efficiency and Large South African Commercial Businesses


News provided by

Reportlinker

Nov 27, 2013, 07:45 ET

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NEW YORK, Nov. 27, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Energy Efficiency and Large South African Commercial Businesses
http://www.reportlinker.com/p01901917/Energy-Efficiency-and-Large-South-African-Commercial-Businesses.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Clean_Vehicle

Quick Wins where High Electricity Tariffs can Negatively Affect Profit Margins

The research service highlights energy efficiency in the South African commercial sector, with a focus on large commercial businesses. The research service discusses the major drivers as well as major restraints the commercial sector faces when implementing energy efficiency projects. The study also outlines potential energy savings as well as current savings to date from energy efficiency initiatives that have been implemented. The research service discusses the focus areas for maximising energy savings for large commercial businesses in South Africa and the key success factors associated with implementing successful energy efficiency projects.

Executive Summary

• Energy efficiency initiatives in South Africa will help meet some of the country's social, economic, and environmental goals.
• These initiatives are important as they immediately tackle the problem of electricity shortages and are a cost-effective way of increasing available electricity supply.
• The National Energy Efficiency Strategy (NEES) of South Africa was officially implemented in 2005 and has Xkey social, environmental, and economic goals, with targets in place to be met by 2015.
• The commercial sector contributes approximately % of South Africa's energy use.
• The NEES aims for a final energy efficiency improvement of X% for the commercial sector.
• By the end of fiscal year (FY) 2013, X megawatts (MW) of peak demand savings had been achieved, which is approximately half of the predicted savings expected by end of 2013.
• Drivers promoting the implementation of energy efficiency initiatives in the commercial sector include the rising cost of electricity, government initiatives, and climate change.
• Factors that prevent the implementation of energy efficiency initiatives include high capital costs for equipment, energy efficiency not considered a core function of the business operation, and limited availability of skills to implement and maintain energy efficient initiatives.
• Key business implementation areas for energy efficiency and energy management projects in the commercial sector include heating, ventilation, and air conditioning (HVAC); lighting; efficient motors; effective water heating; and building management and regular maintenance.

• Key success factors for energy efficiency project implementation include the following:
oUsing Eskom's demand side management (DSM) programmes
oUsing real-time metering
oMaking optimal use of a company's resources
oUsing human capital effectively, and training staff on energy efficiency and implemented initiatives
oPlanning energy management projects effectively
oTargeting low-hanging fruit first

Market Overview—The Importance of Energy Efficiency in South Africa

• The current demand-supply situation in South Africa is very tight. The key to the growth of South Africa's economy is an efficient and sustainable source of electricity.
• The country's electricity tariffs have not been cost reflective and have been set in the past to stimulate foreign investment and drive economic growth. This situation has proved to be unsustainable, with Eskom, the country's state-owned utility, expected to increase tariffs by X% annually over a period of 5 years.
• The utility has struggled to raise money quickly to build new power plants to prevent a repeat of the 2008 crisis when rolling blackouts were common.
• Rolling blackouts and unscheduled power outages are predicted to become a common occurrence within the next 5 years if measures are not taken to reduce the demand-supply gap.
• Increasing electricity tariffs coupled with electricity demand outweighing supply are compelling reasons for businesses to reduce their energy use.
• Eskom should also encourage energy savings across different sectors of South Africa, saving both money and energy.
• South Africa's demand for electricity will continue to increase, and any setbacks regarding electricity supply will dampen the government's plans for economic growth and job creation.

Market Overview—Energy Efficiency Initiatives in South Africa

• The NEES of South Africa was officially implemented in 2005 and was reviewed in 2008 and 2012.
• The strategy has X key social, environmental, and economic goals:
oImprove the nation's health
oCreate jobs
oAlleviate energy poverty
oReduce environmental pollution
oReduce CO2 emissions
oImprove industrial competitiveness
oEnhance energy security
oDelay the building of new power stations

• An overall national energy reduction target of X% has been set. The strategy provides for the implementation of sectoral programmes in X phases, with a final energy efficiency improvement of 15% for the commercial sector by 2015.
oPhase 1: March 2005–February 2008
oPhase 2: March 2008–February 2011
oPhase 3: March 2011–February 2015

• The target set for 2015 is expressed as a percentage reduction against the projected energy use in 2015.

Energy Efficiency Accord
• Accord was introduced in 2005 after the implementation of the NEES.
• Initiative includes a voluntary agreement between X major energy users, X industry associations, and the government through the Ministry of Energy and Minerals.
• Accord includes companies from the commercial, industrial, and mining sectors, which are some of the country's top energy users.
• By signing the accord, companies agreed to individually and collaboratively work on acheiving government energy targets as stipulated in the NEES.

National Energy Efficiency Leadership Network (EELN)
• EELN was launched in December 2011 at the 17th Session of the Conference of the Parties (COP17) by a partnership between the National Business Initiative (NBI), Business Unity South Africa (BUSA), and the Department of Energy (DoE).
• EELN replaces the energy efficiency accord.
• The agreement is voluntary and allows its members to create and apply their own energy management plans, baselines, and energy efficiency targets to their businesses.
• Signatories voluntarily pledge to do the following:
oDevelop internal energy efficiency targets
oDevelop a roadmap for improved energy efficiency
oReport on efforts and progress made to promote energy efficiency
• Companies will also work with stakeholders to help develop energy efficiency programmes by driving behavioural changes and developing required skills to implement energy efficiency initiatives.

Key Questions This Study Will Answer

Why is energy efficiency important in South Africa?
Who are the major stakeholders involved in energy efficiency initiatives in South Africa?
What are the major drivers and restraints that the commercial sector encounters in implementing energy efficiency projects?
What are the potential savings and savings to date as a result of energy efficiency initiatives being implemented in the commercial sector?
Where are key implementation areas for commercial businesses, and what companies have made significant savings from implementing energy efficiency projects?
What are key success factors associated with implementing a successful energy efficiency project?

Table of Contents

1. Executive Summary
2. Market Overview
3. External Challenges: Drivers and Restraints
4. Potential Savings, Savings to Date, and Funding Models
5. Large Commercial Business Key Implementation Areas
6. Company Profiles—Energy Efficiency Initiatives
7. Key Success Factors
8. The Last Word
9. Appendix

To order this report: Energy Efficiency and Large South African Commercial Businesses
http://www.reportlinker.com/p01901917/Energy-Efficiency-and-Large-South-African-Commercial-Businesses.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Clean_Vehicle

__________________________
Contact Clare: [email protected]
US: (339)-368-6001
Intl: +1 339-368-6001

SOURCE Reportlinker

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