Joburg Energy Usage

Issue 18 – March 2019 Group Strategy, Policy Coordination and Relations

For further information

Please contact:

Kate Joseph

KateJ@Joburg.org.za

Developed with Christina Culwick,

Senior Researcher at Gauteng

City-Region Observatory

Original mapping by Sandiswa

Sondzaba, Gauteng City-Region

Observatory

Data source: GCRO’s Quality of Life V 2017/18

Contents

• Access to electricity

• Electricity types

• Energy poverty

• Alternative energy sources for lighting

• Monthly household electricity spend by income

• Satisfaction with electricity

• Frequency & location of electricity interruptions

• Where are the most crucial electricity interruptions?

• Sustainable energy

• Renewable energy and income

• Renewable energy and income continued

• Conclusion

Image from www.brecorder.com/2017/06/02/352067/rs-9bn-allocated-for-energy-sector/

Results are drawn from Gauteng City-Region Observatory’s Quality of Life

(QoL) V survey conducted in 2017/18 throughout the province.

The entire dataset was weighted by race and sex at ward level.

Weights were aligned to Census 2011, updated in line with Community Survey

2016.

A total of 7 869 interviews, or 32% of the sample, were collected in City of

Johannesburg (unweighted). When weighted, 9 119 (37%).

In Johannesburg a minimum of 50 responses per ward was collected.

Sample

CoJ

(Unweighted)

CoJ

(weighted)

Provincial

(weighted)

% Female 51.3% 48.4% 49.4%

% African 80.5% 75.4% 78.7%

% Indian/ Asian 2.8% 4.5% 2.6%

% Coloured 5.9% 5.4% 3.3%

% White 10.5% 14% 14.6%

Access to electricity90% of Johannesburg residents have access to electricity.

Joburg has good access to electricity. Even in areas where access is lower,

such in Diepsloot and Soweto, more than 80% of residents report having

access.

Electricity typesAccording to City Power about 80% of Johannesburg’s electricity is distributed by the utility and the rest is distributed by

Eskom. Across the city, the majority of QoL respondents, 58%, reported that they use prepaid cards to purchase

electricity. At least 2% of respondents report using a connection from elsewhere. Some 2% of respondents use

renewable energy sources like solar or wind generators.

58%49%

63%52% 51%

59%74%

17%28%

18%20%

26%25%

16%11%19%

12% 17% 15% 12% 7%

7% 7% 6% 9% 7% 11% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Region A Region B Region C Region D Region E Region F Region G

Do not know

Connection from elsewhere

Connection from neighbour's house

Car battery

Petrol or diesel generators

Solar or wind generators

Conventional meter

Smart meter

Prepaid card

Energy povertyEnergy poverty refers to large numbers of people whose wellbeing is negatively affected by very low

consumption of energy, the use of dirty or polluting fuels, and or excessive time spent collecting fuel to

meet basic needs.

According to the Energy Poverty Action initiative of the World Economic Forum, access to energy is fundamental to

improving quality of life and is a key imperative for economic development.

Many households in poorer communities either do not have

access to, or cannot afford to use, electricity for their energy

needs. Instead, alternative fuels such as coal, gas, paraffin,

wood and animal dung are used. The City of Johannesburg

has ambient air quality monitoring stations at Alexandra,

Orange Farm, Jabavu, Diepsloot and Ivory Park (among

other locations) specifically to monitor domestic fuel burning,

which contributes to air pollution & health risks and is an

indicator of energy poverty.

Visit GCRO’s Map of the Month related to use of alternative

fuels for cooking and health in Gauteng for more information.

Source: Energy poverty definition defined on Wikipedia; City of Johannesburg Air Quality Management Plan 2017. Image: Matookerepublic.com

Access to electricity but use alternative source for lighting

At least 2% of people in Joburg who have access to electricity use alternative power for most of their

lighting needs. This amounts to nearly 87 000 people in the city.

After electricity, candles and paraffin are

the most common sources for lighting.

Some 14% of those who use candles for

lighting and 27% of those who use

paraffin also have access to electricity.

People are likely to avoid using electricity

because it is costly.

The majority of people who do use

sustainable energy (like as solar or

propane (also know as liquefied

petroleum gas or LPG)) also have access

to electricity and can use both.

17%

31%

33%

58%

73%

86%

83%

69%

67%

42%

27%

14%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Solar Energy

Gas or LPG

Other

Wood

Paraffin

Candles

Power source most used for lighting (excluding electricity)

No YesDoes respondent report any electricity?

Monthly household electricity spend by incomeAt household level there is a clear correlation

between electricity spend and income, with the

poor spending significantly less on electricity

than the wealthy.

This has a number of implications. As people

move out of poverty their demand for

electricity increases. However, these increases

will likely be counteracted by increased

electricity costs, which will disproportionately

affect the poor, who will likely have to reduce

their electricity usage and instead rely on

alternative fuels that are likely to be more

polluting.

On the other end of the spectrum, as electricity

costs increase, the commercial and industrial

sectors who are charged the most for electricity

and subsidise middle and lower income

households,1 will be increasingly incentivised

to shift to solar off grid technologies or move to

areas outside of the City’s energy supply. This

will have implications for cross-subsidisation and

the overall affordability of electricity.

60% 54%42%

29%13%

5% 3%

35% 42%50%

60%

63%

53%

38%

5% 4% 8% 11%23%

42%59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Monthly household income

Monthly household electricity spend by household income*

R1001 or more

R250-R1000

R0-R250

*excludes responses ‘don’t know’ & ‘not applicable’

1 Information from City Power.

Electricity spend

per month

Satisfaction with electricity

People who earn more tend to be more satisfied with the energy they received while people who earn less tend

to be less satisfied with the electricity received. Low income respondents were also more likely to report

experiencing energy interruptions than affluent residents were.

9%

10%

14%

16%

20%

25%

40%

56%

65%

62%

66%

68%

66%

53%

10%

7%

7%

6%

4%

2%

7%

15%

11%

13%

9%

6%

4%

10%

6%

4%

3%

2%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

R0 -R1600

R1 601 - R3 200

R3 201 - R6 400

R6 401 - R12 800

R12801 - R25600

R25601 - R51200

R51 201+

Very satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Very dissatisfied

Frequency & location of electricity interruptions

In the past year, how often,

if ever, did you experience

electricity interruptions?

%

Every week 5%

A couple of times a month 19%

Once a month 6%

A couple of times a year 37%

Never 29%

Not applicable 5%

Before this year’s round of load shedding most CoJ residents reported experiencing power interruptions only a couple

of times a year. Those who reported more frequent outages tend to live in lower income communities.

Map by Sandiswa Sondzaba, GCRO

Electricity interruptions continued

Comparing electricity interruptions by

housing type it is very clear that

interruptions (not running out of

credit) happen most frequently to

people who live in government

housing developments, even more

so than to residents of informal

settlements.

Necessarily this calculation excludes

people who do not have any access

to electricity - which is a larger

portion of informal dwellers than

other housing types.

19%

38%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Rest of Johannesburg Government housing Informal settlement

Experience electricity interruptions twice a month or more

Where are the most crucial electricity interruptions?

It is crucial for the City to improve

electricity supply in these

communities if we hope to drive

pro-poor development, as well as

possibly increasing revenue

generation from energy sales.

It is also important that the City

ensures that energy supply is

reliable and energy costs are

affordable for small businesses.

These operators help drive

economic development and might

otherwise be forced to close down

or be driven away if energy costs

escalate.

54%

58%

61%

22%

24%

24%

32%

0% 10% 20% 30% 40% 50% 60% 70%

Zandspruit

Diepsloot West

Diepsloot

Doornkop

Alexandra

Tshepisong

Ennderdale/Lawley

% of ward reporting interruptions every week or no access to electricity

Interruptions every week

No Access

Sustainable energy

Source: Lisa Davis. 2019. How electrification will make the world more inclusive. World Economic Forum Annual Meeting

Image by Wise Geek

“The major task here [sub-Saharan Africa] is the same as everywhere else: connection to the grid is

just the beginning. Without a sizeable addition of reliable generation capacity, the lasting and powerful

impact on people’s lives made possible by electrification won’t be achieved.

It is renewable energy sources, though, that will likely play the largest role in the future of electrification.

Wind power and solar photovoltaics have become so readily available and cost-effective that they’re no

longer an idealistic concept.” - Davis

Furthermore renewable energy might well be a means of ensuring affordable access to electricity,

particularly in the face of increasing Eskom tariffs.

/

Sustainable energy in CoJ

Source: Lisa Davis. 2019. How electrification will make the world more inclusive. World Economic Forum Annual Meeting

Image by Wise Geek

11500

46 32

Annual Gigawatt Hours

Coal

Solar

Landfill gas

In moving towards a more sustainable energy mix City

Power is pursuing solar, gas and landfill-to-gas generation

systems as well as energy storage to complement the new

energy sources.

The customer owned solar powered photovoltaic systems

that have been authorized by City Power, generate an

annual production of 46 GWh a year. The existing landfill

gas generation sites, part of the REIPPP program, generate

around 32 GWh per year.

Presently, the current contribution of these sustainable

energy sources to the mix is minimal however, the intent is

to grow them in the coming decades. With 11 500 GWh sold

annually, by far most of the City’s energy is derived from

coal.

2 Information from City Power

Renewable energy and income This graph shows that higher

income groups are slightly

more likely to have

sustainable energy sources.

Households within the R25k-

R51k/month bracket are most

likely to have solar/wind energy

sources. Remember too that

this income bracket reported

high satisfaction levels.

The implication of this is that

elite households are more likely

to reduce their spend on

conventional electricity and

move off grid, leaving the cost

of maintain the grid to fall to

lower income residents and

driving up prepaid meter

pricing.

1%3% 3% 3% 3%

6%

3%2%

19%

13%

17%

20%

26%28%

25%

22%

0%

5%

10%

15%

20%

25%

30%

Solar/wind energy source and solar geyser within income groups

Solar/windenergy

Solargeyser

Renewable energy and income continued

However, sustainable energy sources are not limited to the elite. Proportionally the following wards are the top

users of sustainable energy infrastructure. It is evident that solar geysers have been successfully distributed

to low income wards through RDP style initiatives. Rolling out more sustainable energy sources, as well as

energy storage units into communities, should help mitigate the energy crisis and counteract energy poverty.

10%

10%

10%

10%

11%

11%

11%

11%

12%

0% 5% 10% 15%

Ferndale

Parkwood

Eldorado Park

Ivory Park

Mayfair

Bryanston

Noordwyk

Ebony Park

Weltevredenpark

Wards where more than 10% of respondents have a solar or wind energy source

53%

54%

55%

55%

63%

0% 20% 40% 60% 80% 100%

Lawley

Lehae

Eldorado Park

Lenasia South

Alexandra

% of ward that has a solar geyser Top 5 suburbs

ConclusionAccess to energy is fundamental to improving quality of life and is a key imperative for economic development.

Overall access to energy is good and 90% of Johannesburg residents have access to electricity.

However, some people who can access electricity choose not to use it because it is more expensive than alternative sources.

Secondly, many residents suffer frequent energy interruptions. Improving residents’ ability to access and use electricity is

important for driving both pro-poor and economic development, as well as for improving health by reducing the use of polluting

alternatives.

As people move out of poverty, their demand for electricity increases. However, these increases will likely be counteracted by

increased electricity costs which will disproportionately affect the poor, especially as the energy crisis worsens. As a result, the

poor will likely have to reduce their electricity usage. On the other end of the spectrum, as electricity costs increase, the

commercial and business sectors who spend the most on electricity and subsidise household electricity costs, will be increasingly

incentivised to shift to solar off grid technologies in turn impacting cross-subsidisation and reducing overall affordability of

electricity.

Sustainable energy sources are not absent in low income wards and these technologies are becoming more and more

affordable. Pursuing a carbon neutral design by rolling out more sustainable energy sources, particularly in government housing

developments and informal settlements, investing in energy storage units for communities, and allowing renewable energy to be

sold back to the grid should help mitigate the energy crisis and counteract energy poverty. This implies that the city needs to be

proactive in investigating renewable sources as a cheaper way to secure electricity for the city than the Eskom grid.