The Future of Energy Efficiency in South Africa

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Author : Zadok Olinga

President : Southern African Energy Efficiency Confederation.(SAEEC)

South Africa is one of the most energy-intensive economies in the world, with coal and oil accounting for 85% of the almost 50 GW of installed capacity. However, the country has a vast potential for energy efficiency, which can help reduce capital investments in new power supply, increase grid and service reliability, and expand access to electricity in South Africa and the rest of Sub-Saharan Africa.

According to a long-standing rule of thumb, a $1 investment in energy efficiency delivers $3 in savings back to the economy. This means that wide-scale deployment of highly efficient appliances and retrofitting of equipment and processes can help Africa achieve universal energy access more quickly and cost-effectively.

Preliminary analysis found that over 108 terawatt hours of electricity – nearly 18% of Africa’s total consumption in 2014 – would be saved by 2030 if governments and markets across Africa transitioned to more efficient lighting, refrigerators, air conditioners, and motors.

To achieve this, African policy and energy sector leaders should exploit energy efficiency’s extraordinary potential to meet the continent’s rising power demand and population growth. Ambitious and sustained energy efficiency efforts can, and should, be a keystone of Africa’s electrification plans.

The South African Integrated Resource Plan (IRP) developed by The Department of Mineral Resources & Energy is aimed at estimating South Africa’s electricity demand, taking into account how the demand will be met and the expense of such a demand. The IRP is a subset of the Integrated Energy Plan, which covers the entire energy sector. The Department of Mineral Resources & Energy has now developed a review of the IRP for 2023. As this review is being conducted, it is essential that energy efficiency is not ignored or forgotten but rightfully taken seriously as a pillar of South Africa’s energy future.

To ensure a just energy transition in South Africa, policy and energy sector leaders should integrate social and environmental considerations into the design and implementation of energy efficiency programmes and projects. They should also engage with and empower local communities and workers, especially those who are affected by the transition away from fossil fuels. They should promote renewable energy sources, energy storage, and smart grids, as well as energy-efficient buildings, transport, and industry. Finally, they should ensure that the benefits and costs of the energy transition are distributed fairly and transparently, and that the transition contributes to the achievement of the Sustainable Development Goals and the Paris Agreement on climate change.

Policy and energy sector leaders should prioritize energy efficiency as a key strategy to achieve a just energy transition in South Africa. Energy efficiency can help reduce greenhouse gas emissions, lower electricity costs, improve energy security, and create jobs. By implementing effective policies and programs, such as minimum energy performance standards (like the Energy Performance Certificates for Buildings), labelling schemes, tax incentives, and awareness campaigns, leaders can stimulate the market for efficient appliances and equipment and drive innovation and competitiveness in the industrial and building sectors. Energy efficiency is not only a low-hanging fruit, but also a win-win solution for South Africa’s energy future.

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