R2bn toward energy efficiency

Michael Appel

20 February 2008

South Africa is to set aside some R2-billion over the next three years to support programmes aimed at encouraging more efficient use of electricity, generation from renewable resources, installation of electricity-saving devices and co-generation projects, says Finance Minister Trevor Manual.

Delivering his 2008/09 Budget in Parliament in Cape Town on Wednesday, Manuel made reference to the letters forwarded to him as part of the annual Tips for Trevor campaign, wherein several hundred South Africans suggested a number of options for encouraging people to be more energy efficient.

"Let me express a word of thanks to 244 South Africans who have sent me advice on options for encouraging energy efficiency on building standards, subsiding solar powered geysers, supporting the replacement of incandescent light-bulbs, or reducing unnecessary energy use in government offices, in mines and factories and in ordinary homes," he said.

State power utility Eskom implemented power cuts across South Africa for much of January in order to deal with the country's dwindling electricity supply, forcing many businesses and organisations to invest in diesel generators to continue functioning.

The industrial and services sector, including small businesses, were some of the worst affected over the period of power cuts.

Manuel said that while he understood the cause of people wanting financial assistance in purchasing electricity generators to sustain their businesses, subsidising "fossil-fuel burning" generators would send out the wrong message in light of environmental considerations.

"We have an opportunity over the decade ahead to shift the structure of our economy towards greater energy efficiency and more responsible use of our natural gases and relevant resource-based knowledge and expertise," he said.

"Our economic growth over the next decade and beyond cannot be built on the same principles and technology, the same energy systems and the same transport modes that we are familiar with today."

To better deal with the shortage of generation capacity, the government has implemented a national recovery plan which involves the rationing of electricity for a number of years in order to free up power and contain electricity constraints as the country heads towards winter.

Speaking at a media briefing recently, Eskom CEO Jacob Maroga said the company had received assurances from its biggest industrial consumers that they would reduce electricity consumption by 10%.

Maroga also indicated that the utility was considering a power buy-back initiative where Eskom would buy excess megawatts back from industrial consumers and put that power back into the national grid.

Manuel added that spending on projects that are energy-intensive might be deferred over the medium term to help South Africa deal with its power constraints.

Source: BuaNews

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