Energy Efficiency
Monday, 12 August 2013 09:48

South African-German Energy Programme

South Africa has great potential to improve efficient energy generation in industrial, commercial and public sectors.

The South African-German Energy (SAGEN) Programme, which is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), in partnership with the Department of Energy (DoE) and the South African National Development Institute (SANEDI), works to develop and improve the conditions for investments in renewable energy and energy efficiency. South Africa faces a constant rise in electricity demand and a lack of additional power generation capacity, which have both led to electricity shortages in the past. The need for a more efficient use of energy on the demand side and the need for more renewable energies in the energy mix are apparent and feature prominently in South Africa’s energy policies and strategies.

Fact: South Africa generates 85% of its electricity from its own coal, making it one of the 15 largest emitters of CO2 worldwide.

ACCORDING TO THE REVISED NATIONAL ENERGY EFFICIENCY STRATEGY, THE INDUSTRY AND MINING SECTOR IS THE BIGGEST USER OF ENERGY, WITH A SHARE OF 38%, FOLLOWED BY THE TRANSPORT SECTOR, WITH 28% AND THE RESIDENTIAL, COMMERCIAL AND PUBLIC BUILDING SECTOR, WHICH ACCOUNTS FOR 18% OF THE COUNTRY’S ENERGY USE.

The provision of sufficient production capacity to catch up with the fast growing load is a permanent challenge for the South African government and Eskom. Power shortages and load-shedding have become a threat and has led the industry to consider self-generation of parts of its demand or switching to complete independent energy generation.

As part of the bilateral cooperation between South Africa and Germany, the SAGEN programme started in 2011 and is intended to run until 2020. SAGEN is funded by the German government and forms part of the ‘Energy and Climate’ focal area.

Through SAGEN, GIZ provides technical advice, offers training and implements pilot projects. Long-term experts are placed in partner institutions, completed by short-term consulting assignments, partnerships with German institutions and companies and dedicated training measures. The programme’s two components are Renewable Energy and Energy Efficiency.

Renewable Energy South Africa possesses a high potential for renewable energy (RE) and has set itself the target of acquiring 17,8 GW of new RE generation capacities by 2030. A need to stimulate the South African RE industry was identified to contribute to this, as well as improving socio-economic and environmentally-friendly sustainable growth and job creation.

In 2011, the DoE published the RE Independent Power Producers Procurement Programme (REIPPPP), which aims to award power purchase agreements (PPAs) to projects with an overall capacity of 3,752 MW to be installed by the end of 2016.

Provision is made for up to five consecutive bidding windows. Financial close have been reached for the 28 preferred bidders of bidding window one, as well as the 19 preferred bidders of bidding window two.

Against this background of South Arica’s growing share of RE, SAGEN aims to strengthen the DoE’s institutional and regulatory capacities in order to successfully promote investment.

Furthermore, technical support for grid systems and integration of RE is provided, as well as assistance in the development of technical expertise in the sectors of wind and solar energy, by setting up training and research centres.

Energy Efficiency South Africa’s economy was built on energy intensive industrial activity, which was possible because of the country’s large reserves of high-quality coal.

The DoE’s National Energy Efficiency Strategy has set an energy efficiency (EE) improvement target of 15% by 2015 for the industry and mining sector, the power generation sector and the commercial and public building sector. These targets are very ambitious and require courageous energy policy measures, EE technology application and awareness and training measures to be successful.

In its EE component, SAGEN therefore supports South African institutions in the development of capacity for EE promotion and the implementation of innovative EE programmes. Additionally, SAGEN aims to establish a strong market for energy service providers and demonstrates innovative technologies in pilot projects to increase its market share and enhance technology dissemination. Pilot projects prove that EE projects provide users with significant economic and technological advantages and information on these pilots aim to convince stakeholders to adopt new technologies that may improve the energy and economical performance of their businesses.

Through the SAGEN programme, GIZ promotes investments in clean and efficient energy, contributes to the supply of security, climate protection and job creation. SAGEN is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of the German Federal Ministry for Economic Coorperation and Development (BMZ). GIZ is a federal enterprise that supports the German Government in achieving its objectives in the field of international cooperation for sustainable development.

 

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered offices:

Bonn and Eschborn GIZ Office Pretoria

P.O. Box 13732, Hatfield 0028 Pretoria, South Africa

Tel.: +27 12 423 5900

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.">

Website: www.giz.de

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