Electricity Intensities of the OECD and South Africa: A Comparison

Improving a country’s electricity efficiency is considered one of the important ways to reduce its greenhouse gas emissions and to meet its commitments concerning climate change mitigation. In this paper, we conduct a comparative analysis between South Africa and OECD members’ total and sectoral electricity intensities. This is done to establish a sense of South Africa’s relative performance in this regard, to ascertain the possible scope for improvement and, if such scope exists, to determine in which of the industrial sectors

Electricity Intensities of the OECD and South Africa: A Comparison

Improving a country’s electricity efficiency is considered one of the important ways to reduce its greenhouse gas emissions and to meet its commitments concerning climate change mitigation. In this paper, we conduct a comparative analysis between South Africa and OECD members’ total and sectoral electricity intensities. This is done to establish a sense of South Africa’s relative performance in this regard, to ascertain the possible scope for improvement and, if such scope exists, to determine in which of the industrial sectors.

The impact of an electricity generation tax on the South African economy

In the 2008 budget of the Minister of Finance, the South African Government proposed to impose a 2 cents/kilowatt-hour (c/kWh) tax on the sale of electricity generated from non-renewable sources; this tax is to be collected at source by the producers/generators of electricity. The intention of this measure is to serve a dual purpose of protecting the environment and helping to manage the current electricity supply shortages by reducing demand. The objective here is to evaluate the impact of such an electricity generation tax on the South African, SACU and SADC economies. The paper firstly considers the theoretical foundations of an electricity generation tax supported by international experiences in this regard. This section also contrasts the suitability of a permit with a tax system to achieve CO2 emission reduction. We subsequently apply the Global Trade Analysis Project (GTAP) model to evaluate the impact of an electricity generation tax on the South African, SACU and SADC economies. We simulate the proposed tax as a 10 percent increase in the output price of electricity. We assume a closure rule that allows unskilled labour to migrate and a limited skilled workforce. As expected, the electricity generation tax will reduce demand. Due to the decrease in domestic demand, export volume increases and import volume decreases, this is despite a weaker terms of trade. We also found that unemployment for unskilled labour increases and wages of skilled workers are expected to decrease. A unilateral electricity generation tax will benefit other SACU and SADC countries through an improvement in relative competitiveness, as shown by the improvement of the terms of trade for these regions. If, however, the benefits of pollution abatement are internalised, then electricity generation tax is expected to yield a positive effect on the South African economy.

Creating a U.S. Carbon Market

President Obama’s recent budget proposal is a strong indication that the current Administration will take the first real steps towards realizing a nationwide cap-and-trade system in the United States. Examining existing cap-and-trade systems such as the European Union Emissions Trading Scheme (“EUETS”), the Regional Greenhouse Gas Initiative (“RGGI”), and the New South Wales Greenhouse Gas Abatement Scheme (“NSW Scheme”) illustrates the value of two increasingly common features that the United States should consider: auctions and offset mechanisms. As this article shows, these mechanisms can address major concerns with cap-and-trade by mitigating price distortion and encouraging technological advances

Local governments' changing power in South Africa's energy system: reshaping the regulatory space for renewable energy, from the bottom up

In 1994, South Africa's post-apartheid government inherited a highly-centralised energy sector, in which all aspects including planning, procurement, generation, distribution, pricing, and management were determined through top-down institutional arrangements and investments, centred around Eskom. In 2016, however, following rounds of energy sector reform, and the successful implementation of the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP), this centralised configuration of power showed signs of disruption. Municipalities began to ambitiously redefine their role by building on opportunities related to renewable energy, resulting in an emergent challenge to centralised energy policy and planning. This dissertation sought to explore how this contestation took shape and to explain how seemingly ad hoc actions have created new possibilities, as well as new regulatory frameworks, by municipalities for municipalities. To achieve this, an analysis of the evolution of decentralised renewable energy generation in South Africa between 2008, when it first began, and 2016, was undertaken, applying the method of process tracing to two case studies. In order to contextualise these bottom-up processes within the national political economy of energy, process tracing was also applied in a high-level analysis of countervailing movements that consolidate centralised energy planning and procurement during the same period, with a particular focus on national plans to undertake massive investments in nuclear energy. It was found that municipalities' bottom-up actions have positioned them to drive renewable energy in such a way that seriously challenges the historical configuration of power that has determined South Africa's energy future up to now

Cassava as feedstock for ethanol production in South Africa

South Africa’s economy is primarily coal-based, but the high ash content is a contributing factor to the high per capita production of green house gases. Rising crude oil prices, lower crop prices on world markets and the realisation that coal and oil are limiting energy resources has led to the decision to substitute a minimum of 2% of the country’s transportation fuel with biomass based fuels. The biofuels industrial strategy of South Africa suggests the use of sugar based crops, but due to the tropical climate preferable for these crops, alternative crops need to be found that can be grown in the more arid and marginal parts of the country. Cassava (Manihot esculent) is rich in starch and is not a staple food in South Africa. It can be grown on marginal lands where frost is not prevalent. In this study, the production of ethanol from unpeeled Cassava roots and cassava peels were investigated. It was found that temperature; pH and biomass loading had a significant effect on glucose yield during hydrolysis. Simultaneous saccharification and fermentation (SSF) showed the highest ethanol yield and direct fermentation the lowest. A final ethanol yield of 530 L of ethanol per ton of unpeeled cassava roots or 2400 L/ha were obtained.Keywords: Cassava, bio-ethanol, yield, separate hydrolysis and fermentation, simultaneous saccharification and fermentation.African Journal of Biotechnology Vol. 12(31), pp. 4975-498

Do solar water heaters improve access to hot water and reduce electricity costs? : the complexities of implementing energy poverty interventions in South African Townships : a case study of Nyanga Township

Includes abstract.Includes bibliographical references (leaves 58-63).Solar energy is abundantly available in South Africa, but it is a highly under-utilised resource. One way of efficiently using the resource is solar water heating (swh), a natural process whereby hot water for domestic and/or industrial use is heated by the sun. In 2009, a national swh strategy was drafted by the Department of Energy, which specifies a target to install 1 million heaters in households by 2015. Provincial and local governments have also developed their own swh strategies and the roll out of swhs has started in some municipalities (i.e. the Nelson Mandela Bay Municipality and the City of Cape Town)