Energy Efficiency in the South African Residential Sector


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Rising electricity prices in South Africa are fast becoming the major driver of the uptake of energy-efficient technology in the residential sector. Households are becoming cognizant of the importance of managing their electricity utilisation. This briefing will investigate technologies that can be utilised in South African households to improve energy efficiency and reduce electricity consumption.
Join us to gain insight into:
The current state of energy efficiency in South African households
International best practice analysis of select countries
Energy-efficient technologies that can be adopted into South African households
Expected future developments of energy-efficient technology for households

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Energy Efficiency in the South African Residential Sector

  1. 1. Shedding Light on Energy Efficiency in SouthAfrican HouseholdsAn analysis of Energy Efficient TechnologySalima Zyambo, Research AnalystEnergy & Power SystemsMay 2013© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property ofFrost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
  2. 2. 2Functional Expertise• Experience in analysis and research, including several research and consulting projects.Industry Expertise Experience in the energy and power space includes;- Genset market expertise in East Africa- Kenyan electricity industry analysis- Due diligence analysis of wind power projects in Kenya- Zambian electricity industry analysis- Logistics and transport infrastructure in South Africa- Temporary gas fired power plants expertise- Energy efficiency implementation in the South African residential sector- Local manufacturing stimulation in South AfricaCareer Highlights• Research Analyst at Frost & Sullivan• Junior Research Analyst at Frost & Sullivan• Process Auditor (Internship) at Chevron’s Milnerton refinery in Cape TownEducation• Bcom(Hon)(Financial Analysis & Portfolio Management) from University of Cape Town, CapeTown, South Africa• BSc(Eng)(Chem) from University of Cape Town, Cape Town, South AfricaSalima ZyamboSalima ZyamboResearch AnalystEnergy & Power SystemsFrost & SullivanSouth AfricaCape Town
  3. 3. 3Focus Points• Geographic and Technology Focus• Current and Future Trends• International Best Practice Examples• Conclusions
  4. 4. 4The Occasion for the Analyst Briefing• Urgency of the topic: The need to improveenergy efficiency in the residential sector isfast becoming a reality• Newsworthiness of topic: The South Africangovernment is actively implementing policy toimprove energy efficiency in the residentialsector• Benefits of this Analyst Briefing: Gain insightinto the current state of energy efficiency in theresidential sector as well planned governmentinitiatives
  5. 5. 5Geographic and Technology Focus
  6. 6. 6 Focus is on the South African residential sector The United States of America, Australia, Spain and South Korea were selected as best practice caseexamples of countries that implement and currently coordinate energy efficient policies that have beentried and tested for more than five years with proven results.Source: Frost & Sullivan AnalysisGeographic Scope Technology ScopeEnergy Efficient Technology Manufacturing Industry: Geographic Scope (South Africa), 2012Presentation Scope
  7. 7. 7The focus technology types were selected based on the most prevalent household energy devices that aremanufactured on a large scale and that are the most intensive consumers of electricity.Geographic Scope Technology ScopeDishwashing and LaundrySpace Heating andCoolingLightingWater HeatingRefrigerationCookingPresentation Scope Cont’dTelevisions
  8. 8. 8Electricity Consumption in the Residential SectorSource: StatsSA, Frost & Sullivan Analysis.Others includes but is not limited to:• Motors; automated gates and garage doors• Fans: Extractor fans in kitchens and bathrooms• Pool pumps• Small household appliances: kettles, microwaves,toasters, blenders, etcTypical South African Household ElectricityConsumption, (South Africa), 2012Technology Number of Installed UnitsLighting 105,262,681Geysers 7,492,502Heaters 11,558,251Air Conditioners 904,435Tumble Dryers 1,744,514Washing Machines 8,223,300Dishwashers 1,598,419Fridges 13,455,090Stoves 11,575,476Televisions 18,013,705Residential Sector: Total Number of Appliancesfound in Households in South Africa, 2011
  9. 9. 9Current and Future Trends
  10. 10. 10Electricity Consumption in South AfricaSource: StatsSA, Frost & Sullivan Analysis.Other includes• Exports• TractionElectricity Consumption per Sector (South Africa), 2011Agriculture,2.4% Commercial,13.4%Residential,17.2%Manufacturing,45.8%Mining, 14.4%Other, 6.7%
  11. 11. 11Electricity Tariff Escalation in South AfricaSource: Frost & Sullivan Analysis.Electricity Tariff Escalation, (South Africa), 2003 - 2012
  12. 12. 12Energy Efficiency Drivers and RestraintsDriversRestraintsDriversRestraintsDenotes Long term ImpactDenotes Current ImpactRebates on Certain EETechnologiesPublic Awareness ofthe Electricity Demandand Supply SituationCost SavingsIncreasing ElectricityPricesLack of DisposableIncome to Invest in EEProductsLack of Education andPublic AwarenessRegarding EE TechnologiesLack of KnowledgeRegarding PersonalHousehold ConsumptionLack of Interest in EETechnologies orEnergy ConservationSource: Frost & Sullivan Analysis.
  13. 13. 13Energy Efficiency Government InitiativesGovernment Initiatives• Department of Energy has set target of 15% improvementof energy efficiency in the residential sector• Eskom’s IDM initiatives• Eskom lighting roll-out programme• Eskom solar water heater and heat pump rebateprogramme• Planned mandatory standards and labeling programmeInformationaccording to appliancetype - Consumption, efficiency,capacity, etc.The appliances details.Noise - the noise emitted bythe appliance is describedin decibels.Energy class – The EE for theappliance is represented witha colour code and associatedto a letter (A to G).Source: European Commission – Energyefficiency ( Efficiency Policies• The National Energy Act, 2008• The White Paper on Energy Policy, 1998• The Electricity Act No. 41, 1987 (as amended)• The Standards Act of 2008• The Electricity Regulation Act
  14. 14. 14Energy Efficiency Comparison of Various TechnologiesTechnology Incandescent Bulbs Compact FluorescentLamps (CFLs)Light Emitting Diodes (LEDs)Life span (typicalrange)Watts of electricityused1,000-2,000 hours60 watts6,000-10,000 hours13-15 watts25,000-50,000 hours6-8 wattsTechnology Typical Efficiency GainsFridges/FreezersTelevisionsWashing MachinesStoves/Ranges/OvensDishwashersAir Conditioners10-20%20-40%20-30%10%20-40%10-30%Comparison of Energy Efficiency Lighting with Standard LightingComparison of Energy Efficiency Products with Standard ProductsSource: Frost & Sullivan Analysis.
  15. 15. 15Energy Efficiency Comparison of Various TechnologiesCont’dSource: Rankin/Van EldikComparison of Water Heating Technologies
  16. 16. 16International Best Practice Examples
  17. 17. 17International Best Practice AnalysisEnergy Efficiency GovernanceEnabling FrameworksInstitutional Enabling FrameworksArrangementsCo-ordinationMechanismsImplementing agenciesResourcing requirementsRole of energy providersStakeholder engagementPublic-private sectorco-operationInternational assistanceLaws and decreesStrategies and action plansFunding mechanismsGovernmental co-ordinationTargetsEvaluationSource: IEA, Frost & Sullivan Analysis.Energy Efficiency Policies and Governance
  18. 18. 18Successful Energy Efficiency Policies Implementedin Select CountriesSource: Frost & Sullivan Analysis.Energy Efficiency Policy CountryEnergy Star USAFederal Energy Efficiency Tax Incentives USAAdvanced Energy Manufacturing Tax Credit USANational Framework for Energy Efficiency (NFEE) AustraliaNational Strategy for Energy Efficiency (NSEE) (2009-2019) AustraliaEnergy Efficiency Opportunities (EEO) Scheme AustraliaEnergy Efficiency Exchange (EEX) AustraliaEnergy Efficiency Program (E3) and Minimum Energy Performance Standards (MEPS) AustraliaGreenhouse and Energy Minimum Standards (GEMS) Bill 2012 Australia2004-2012 Energy Saving and Efficiency Strategy (E4) SpainNational Energy Efficiency Action Plan (NEEAP), 2008-2012 of the Energy Efficiency Strategy SpainRenovation Plan for Household Appliances (Renova) SpainSaving and Energy Efficiency Stimulation Plan, 2008-2011 SpainPublic Support Program SpainEnergy Saving and Efficiency Intensification Plan (2011) SpainEnergy Efficiency Standards & Labelling Program (including MEPS) S. KoreaHigh-Efficiency Appliance Certification Program S. Koreae-Standby Program S. Korea
  19. 19. 19USA: Energy Savings Realised5981971131291441691771892042442700501001502002503002000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011BillionkWhYearEnergy Savings by Energy Star Program in billion kWhSource: US DOE, EPA, Energy Star, Frost & Sullivan Analysis.
  20. 20. 20Australia: Energy Savings ProjectedShare of Projected Residential Sector Electricity Savings, 2009-2020Residential sector energy savings are projected to be nearly 22,000 GWh per annum by 2020.Source: NFEE, NSEE, Allen Consulting Group, , Frost & Sullivan Analysis.
  21. 21. 21South Korea: Energy Savings RealisedTrend of Energy Consumption of Refrigerators-59%Energy consumption: the lower, the betterRefrigerators account for 21% of household power consumption and they are the most energy intensive ofthe household appliances.Source: KEMCO, Frost & Sullivan Analysis.
  22. 22. 22South Korea: Energy Savings Realised Cont’dTrend of Energy Consumption of Washing MachinesPower consumption: the lower, the better-22%The power consumption of washing machines decreased from 14.96 Wh/kg (2004) to 11.72 Wh/kg (2010),over 22% in just 6 years since the implementation of the Energy Efficiency Standards and LabellingProgram.Source: KEMCO, Frost & Sullivan Analysis.
  23. 23. 23South Korea: Energy Savings Realised Cont’dTrend of Air Conditioners: Energy Efficiency RatioEnergy Efficiency Ratio: the higher, the better20%The high energy efficiency of air conditioners is closely linked to the rapid development of compressortechnology, which is a core component.Source: KEMCO, Frost & Sullivan Analysis.
  24. 24. 24Conclusions
  25. 25. 25Key Take-Aways and Recommendations• Opportunities exists for manufacturers currentlymanufacturing energy efficient technology• Retailers that can form partnerships withmanufacturers and suppliers of energy efficienttechnology stand to benefit• The South African government is taking the necessarysteps to improve energy efficiency in the residential sector• Stakeholder participation is imperative to the successfulimplementation of policies and initiatives• There are lessons to be learnt from the analysis ofinternational best practice examplesConclusionsOpportunities
  26. 26. 26Next StepsDevelop Your Visionary and Innovative SkillsGrowth Partnership Service Share your growth thought leadership and ideas orjoin our GIL Global CommunityJoin our GIL Community NewsletterKeep abreast of innovative growth opportunities
  27. 27. 27Your Feedback is Important to UsGrowth Forecasts?Competitive Structure?Emerging Trends?Strategic Recommendations?Other?Please inform us by “Rating” this presentation.What would you like to see from Frost & Sullivan?
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  29. 29. 29For Additional InformationChristie CronjeMarketing & CorporateCommunications ManagerEnergy & Power Systems(+27) 21- 680 3566Christie.Cronje@frost.comSalima ZyamboResearch AnalystEnergy & Power Systems(+27) 21-680 3268Salima.Zyambo@frost.comCornelis van der WaalResearch ManagerEnergy & Power Systems(+27) 21- 680 3266Cornelis.vanderWaal@frost.comMichelle Da SilvaSales ManagerEnergy & Power Systems(+27) 21-680