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Residential Energy Efficiency in South Africa

  • September 2014
  • 77 pages
  • Frost & Sullivan
Report ID: 2363245

Summary

Table of Contents

Governmental Support and Incentives are Key to Promote the Use of Energy Efficient Technology

Energy efficiency represents an economically attractive option of managing power demand via interventions across all sectors. Although the South African government has made important strides in implementing energy-efficiency initiatives, the country’s energy-efficiency landscape is still in its infancy stage. This research service focuses on the current use of energy-efficient technology devices in the residential sector in South Africa and how the uptake of this technology can be stimulated. Research was carried out by leveraging our existing in-house market knowledge, reviewing publicly available secondary data sources, and by conducting interviews with key market participants. The base year is 2012 and the forecast period is from 2013 to 2019.

Key Findings
-This research service provides a concise analysis of the state of energy efficiency in the South African residential sector and focuses solely on the use of energy efficient technology devices and how the uptake of this technology can be further stimulated.
-With the current electricity supply struggling to meet the rising electricity demand in South Africa, energy efficiency interventions across all sectors represent an economically attractive option to manage this increasing demand.
-Although the South African government has made important strides in implementing energy-efficiency mechanisms and initiatives, the country’s energy efficiency landscape is still very fragmented and is governed by an oversight framework that is still in its infancy.
-Statistics show that space heating and cooling, water heating, and cooking account for approximately % of the electricity consumed in the residential sector.
-However, the uptake of energy efficient (EE) technology still remains very low in this sector.
-The South African government is cognisant of the challenges faced by the residential sector and is therefore actively implementing mechanisms and policies in a bid to improve energy efficiency in this sector.
-Key energy efficiency stakeholders include, but are not limited to, the Department of Energy (DoE), the Department of Trade and Industry (DTI), the Department of Public Enterprise (DPE), the National Energy Regulator of South Africa (NERSA), the National Regulator for Compulsory Specifications (NRCS), Eskom, technology manufacturers, and retailers.

CEO’s Perspective
1 A lack of public awareness on the benefits of energy efficient technology remains one of the major restraints to the uptake by the residential sector.
2 South Africa’s escalating electricity prices are fast-becoming the major driver of the adoption of energy efficient technology.
3 Opportunities exist for local and international manufacturers currently producing EE technology and for those that can easily convert to the production of this technology.
4 Retailers that can form partnerships with manufacturers and suppliers of EE technology stand to benefit.
5 The framework governing energy efficiency in the South African residential sector is still in its infancy stage.

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