The role of market-based instruments that use existing markets to promote energy efficiency in South African industry

Abstract

This dissertation evaluates the current array of [market-based instruments] MBIs that use existing markets to promote industrial energy efficiency in South Africa. The MBIs identified in this regard are the additional investment and energy efficiency allowances available under s12I and s12L of the Income Tax Act 58 of 1962, the electricity levy implemented under the Customs and Excise Act 91 of 1964, Eskom's Demand Side Management (DSM) programme and NERSA's proposed Cogeneration Feed-in Tariff (COFIT) programme. The latter three MBIS are incorporated into the recent attempt to make electricity prices more 'cost reflective' along with Renewable Energy Feed-in Tariff (REFIT) costs and the cost of capital to fund the new build programme.