Energy efficiency and the CDM in South Africa: constraints and opportunities

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dc.contributor.authorWinkler, Harald
dc.contributor.authorVan Es, Denis
dc.date.accessioned2016-02-05T10:59:38Z
dc.date.available2016-02-05T10:59:38Z
dc.date.issued2007
dc.date.updated2016-02-03T08:25:52Z
dc.description.abstractEnergy-efficiency projects were expected to constitute an important project type under the Clean Development Mechanism (CDM). In South Africa, there is significant potential for energy savings in several sectors. The savings possible in industry have been demonstrated through plant-level energy audits, measurement and verification of Eskom’s Demand Side Management (DSM) programme and national energy modelling. Enabling policy for energy efficiency and demand-side management has been adopted by government and the utility, Eskom. A dedicated National Energy Efficiency Agency (NEEA) was established in 2006. Yet, energy-efficiency still fails to realise its potential. The paper seeks to dispel the misconception that energy efficiency projects might not be ‘additional’ under the CDM. Analysis of barriers, which is well understood by those dealing with energy efficiency, can be used to demonstrate additionality. A standard tool for demonstrating additionality is now available, as are baseline methodologies for both large and small-scale CDM projects. It should, therefore, be clear that energy efficiency projects are not a priori ruled out as non-additional. Each project has to demonstrate additionality, as for any other project type. Finances are available from various sources, and the CDM can offer further funding for initial costs, or in removing the barriers to energy-efficiency projects. Internationally, energy efficiency initially did not account for large numbers of CDM projects, nor a major share of carbon credits. With the recent growth in CDM projects, however, the numbers of energy-efficiency projects are increasing internationally. In South Africa, analysis of the emerging CDM portfolio shows that energy-efficiency projects are much better represented at the concept stage than in fully designed CDM projects. The major elements for implementing energy efficiency projects exist – dedicated institutions, enabling policy frameworks, approved methodologies and even an electricity crisis to raise awareness. Funding is available from various sources, and the CDM can offer further funding for initial costs or in removing the barriers to energy-efficiency projects. The CDM rules should soon allow for registration of entire programmes, which could include energy efficiency standards or demand-side management. Innovative financing solutions such as clean energy lending can assist as well. All that seems to be needed is a concerted effort to realise the potential. Such efforts could be driven by the Designated National Authority or the National Energy Efficiency Agency. Together with initiatives from the private sector, a dedicated effort might help South Africa find a clear route for energy-efficiency projects under the CDM in South Africa.en_ZA
dc.identifier.apacitationWinkler, H., & Van Es, D. (2007). Energy efficiency and the CDM in South Africa: constraints and opportunities. <i>Journal of Energy in Southern Africa</i>, http://hdl.handle.net/11427/16810en_ZA
dc.identifier.chicagocitationWinkler, Harald, and Denis Van Es "Energy efficiency and the CDM in South Africa: constraints and opportunities." <i>Journal of Energy in Southern Africa</i> (2007) http://hdl.handle.net/11427/16810en_ZA
dc.identifier.citationWinkler, H. & van Es, D. (2007) Energy efficiency and the CDM in South Africa: constraints and opportunities, Journal of Energy in Southern Africa 18(1):29-38.en_ZA
dc.identifier.ris TY - Journal Article AU - Winkler, Harald AU - Van Es, Denis AB - Energy-efficiency projects were expected to constitute an important project type under the Clean Development Mechanism (CDM). In South Africa, there is significant potential for energy savings in several sectors. The savings possible in industry have been demonstrated through plant-level energy audits, measurement and verification of Eskom’s Demand Side Management (DSM) programme and national energy modelling. Enabling policy for energy efficiency and demand-side management has been adopted by government and the utility, Eskom. A dedicated National Energy Efficiency Agency (NEEA) was established in 2006. Yet, energy-efficiency still fails to realise its potential. The paper seeks to dispel the misconception that energy efficiency projects might not be ‘additional’ under the CDM. Analysis of barriers, which is well understood by those dealing with energy efficiency, can be used to demonstrate additionality. A standard tool for demonstrating additionality is now available, as are baseline methodologies for both large and small-scale CDM projects. It should, therefore, be clear that energy efficiency projects are not a priori ruled out as non-additional. Each project has to demonstrate additionality, as for any other project type. Finances are available from various sources, and the CDM can offer further funding for initial costs, or in removing the barriers to energy-efficiency projects. Internationally, energy efficiency initially did not account for large numbers of CDM projects, nor a major share of carbon credits. With the recent growth in CDM projects, however, the numbers of energy-efficiency projects are increasing internationally. In South Africa, analysis of the emerging CDM portfolio shows that energy-efficiency projects are much better represented at the concept stage than in fully designed CDM projects. The major elements for implementing energy efficiency projects exist – dedicated institutions, enabling policy frameworks, approved methodologies and even an electricity crisis to raise awareness. Funding is available from various sources, and the CDM can offer further funding for initial costs or in removing the barriers to energy-efficiency projects. The CDM rules should soon allow for registration of entire programmes, which could include energy efficiency standards or demand-side management. Innovative financing solutions such as clean energy lending can assist as well. All that seems to be needed is a concerted effort to realise the potential. Such efforts could be driven by the Designated National Authority or the National Energy Efficiency Agency. Together with initiatives from the private sector, a dedicated effort might help South Africa find a clear route for energy-efficiency projects under the CDM in South Africa. DA - 2007 DB - OpenUCT DP - University of Cape Town J1 - Journal of Energy in Southern Africa LK - https://open.uct.ac.za PB - University of Cape Town PY - 2007 T1 - Energy efficiency and the CDM in South Africa: constraints and opportunities TI - Energy efficiency and the CDM in South Africa: constraints and opportunities UR - http://hdl.handle.net/11427/16810 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/16810
dc.identifier.vancouvercitationWinkler H, Van Es D. Energy efficiency and the CDM in South Africa: constraints and opportunities. Journal of Energy in Southern Africa. 2007; http://hdl.handle.net/11427/16810.en_ZA
dc.languageengen_ZA
dc.publisherUniversity of Cape Townen_ZA
dc.publisher.departmentEnergy Research Centreen_ZA
dc.publisher.facultyFaculty of Engineering and the Built Environment
dc.publisher.institutionUniversity of Cape Town
dc.sourceJournal of Energy in Southern Africaen_ZA
dc.subject.otherEskom (Firm)
dc.subject.otherDemand-side management (Electric utilities)
dc.subject.otherClean Development Mechanism
dc.titleEnergy efficiency and the CDM in South Africa: constraints and opportunitiesen_ZA
dc.typeJournal Articleen_ZA
uct.subject.keywordsEnergy efficiencyen_ZA
uct.subject.keywordsCDMen_ZA
uct.subject.keywordssouth africaen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceArticleen_ZA
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