STATE OF ENERGY

IN SOUTH AFRICAN CITIES

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Cities are a very energy intensive part of the national profileSouth African Cities Context

• Report reviewed 18 cities and towns including South Africa’s 8 metros

• These municipalities are home to 50% of SA’s population yet occupy only 4.5% of the country’s land area

• South Africa is rapidly urbanising with majority of the nation (64%) residing in urban areas

• South Africa’s 8 metros alone are home to 40% of the national population

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CITIES - A Very Energy Intensive Part of the National Profile

The 18 cities and towns reviewed, account for:

• over 1/3 of national energy consumption• close to 50% national electricity consumption• 50% of the country’s petrol and diesel consumption• close to 1/3 or more of national carbon emissions• Produce approximately 70% of the country’s economic

wealth

These dense urban centres have a fundamental role to play in the low carbon, economic and energy development of South Africa and are considered to be the ‘backbone’ of the country’s economy.

Metropolitan Municipality Energy Profile

The major fuels typically consumed in the metros are:

• Liquid fuels - petrol and diesel account for almost 50% of total municipal energy consumption.

• Electricity - 31%

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• The Transport sector dominates energy consumption at the city level using predominantly diesel and petrol – 62%

• The residential, commercial, government and industrial sectors use electricity for lighting, heating, cooling and cooking consuming 33%.

Metropolitan Municipality Carbon Emissions Profile

When examining the energy profile from a climate change emissions perspective the picture is somewhat different -

• electricity consumption by the residential, commercial and industrial sectors dominates the picture compared to the transport sector. This is because electricity is generated from coal and the emissions per unit of energy are higher than liquid fuels.

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The 10 Key Findings

1. Energy Consumption Has Increased in Absolute Terms

Absolute growth in energy consumption is expected in a developing country context and this is driven by population and economic growth.

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2. Electricity Consumption has Declined in the Metros since 2007

• Electricity consumption has declined since 2007 in response to the electricity supply crisis and high price increases.

• The downward trend may also be due to the introduction of sustainable energy interventions.

• While price increases do lead to behaviour changes which is good for improved energy efficiency, it is detrimental for the poor in terms of affordability.

3. Energy Intensity* Of The Economy Appears To Be Steadily Improving in the Metros

• While the economy and population are growing in these urban centres, a decline in energy intensity can be observed over time.

• Between 2004 and 2011, the metros’ economy grew by an average annual rate of 4.2%, while energy consumption grew by 1.8%.

• This trend reflects a slight decoupling of economic growth from energy consumption which is very significant in a developing context and could indicate that resources are being used more efficiently.

• The lower the energy intensity, the more robust the economy is to price increases and price shocks within the sector.

• Energy intensity is the amount of energy consumed to produce a unit of economic value .

4. Emission Intensity* Of The Economy Is Decreasing In The Metros

• Carbon emissions per capita is a common global indicator of emissions levels for a country or city.

• Overall South African metros display lower values than the country overall as most large industries (e.g. steel manufacturing plants, aluminium smelters, etc.) are located outside the metros.

• Metros have experienced a decrease in emissions intensity per capita between 2007 and 2011. This drop is most likely associated with a decrease in electricity consumption post-2007/8 at the onset of national electricity supply crisis.

• A slight decoupling of economic growth from emissions is apparent in the metros over time.

• Critical question: what extent is this decline due to a systemic shift (in line with the low-carbon energy policies) and to what extent is it due to a temporary shift in response to more immediate pressures, such as the national electricity crisis in 2008 and the sharply increasing electricity prices?

• If this is a temporary shift, then once the crisis is over or price increases stabilise, the decoupling could weaken or stop altogether.

* Emissions intensity is the amount of carbon emissions generated from the use of energy to produce a unit of economic output.

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5. Progress in Household Energy Access and Affordability But Challenges Remain

• Household energy access is about connection to safe, reliable and affordable energy and has a direct influence on human welfare and development.

• Whilst 85% of South Africa’s households are electrified compared to 36% in 1994, continued growth in urban informal households has meant that governments target of universal access has been delayed to 97% by 2025.

• Many households continue to rely on dirty fuels for cooking due to affordability despite government measures such as the Free Basic Electricity subsidy.

• Severe health burden associated with the use of dirty fuels (coal, wood, paraffin, dung) confronts the country.

• Challenges however remain in reaching universal access to energy, building thermally efficient houses for the poor close to places of employment and amenities, and enabling the poor to afford safe energy sources.

121.2 Megawatt rooftop solar PV installation at Black River Parkway Business Park – Cape Town

6. An Emerging Municipal Led Renewable Energy Space

• Renewable energy use is still in its infancy and its contributions are negligible compared to Eskom coal supplied electricity.

• However substantial local level renewable energy development is underway in South African municipalities despite cities not having a clear mandate to generate electricity.

• Municipalities themselves have potential renewable energy resources, including landfill gas, sewage methane and micro-hydro on water distribution systems and solar PV rooftop generation.

• Challenges do remain in rolling out at scale due to revenue impacts for municipalities and an unclear regulatory framework relating to small scale embedded generation from renewable energy means.

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• The country has seen an enormous shift in energy efficiency implementation driven particularly within the residential sector.

• Municipalities are undertaking specific energy efficiency programmes focussing on street lighting, traffic lighting, building energy efficiency retrofits and retrofit of low income households with solar water heaters.

• Municipalities are promoting efficiency measures in commercial and residential sectors.

7. Substantial Drive in Energy Efficiency Underway in South African Municipalities

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8. Little Change in South Africa’s Urban Form

• The urban spatial form and its influence on mobility plays a crucial role in the productivity of city economies. Their ability to be resource efficient and in particular energy efficient has an impact on infrastructure investment.

• Since 1994, the development of South African cities has largely reinforced the apartheid spatial form of sprawling, low-density urban spaces, with inefficient and expensive transport systems and reduced access to urban amenities and economic opportunities for many households.

• While a few urban areas have progressive Spatial Development frameworks or regulations, in general the urban form is not becoming more efficient.

• This is perpetuated through a lack of intergovernmental coordination relating to public and freight transport planning.

(DoT 2011)

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Urban Form and Transport are Inextricably Linked

These images clearly show the inefficiency (space and energy-intensive) of private vehicles in comparison with bicycles and public transport modes

• The transport sector is typically responsible for around 50% of total energy use in urban areas.

• In spite of several important public transport interventions such as the Gautrain and BRT systems, urban transport is still characterised by inefficient, congested roads and a dependence on private vehicles.

• Low densities particularly amongst the mid to high-income areas, urban sprawl and the marginal location of poor communities contribute to non-viability of the public transport system and result in longer commutes and higher real expenditure on transport by households.

• Given that shifts in urban form are a critical component of sustainable transport implementation, cooperation between the spatial planning and transport departments in an important future focus area.

9. Attempts have been made in Improving Public Transport but Impact has been Small

Typical metros passenger transport - energy consumption

Typical metros passenger transport - passenger numbers

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10. Significant Shifts in Sustainable Energy Governance

• The concept of sustainable energy governance has expanded in local government – sustainable energy policy, institutional capacity development and project implementations have grown exponentially in South African cities.

• A national, SALGA-led Local Government Renewable Energy and Energy Efficiency Strategy has been developed for support and scale-up sustainable energy development in municipalities.

• In keeping with this strategic direction, many municipalities are looking at improving service delivery, such as through building efficiency, BRT and waste-to-energy facilities. However, without external support, most municipalities struggle to attend to longer term, sustainability projects because of the pressing demands of day-to-day service delivery.

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Cities can provide an opportunity for a better life for all if managed well. This requires that sustainable energy work is successfully institutionalised in municipal practice through associated capacity development and greater coordination between national and local government.

Way forward

Thank You

The full report on the State of Energy in South African Cities 2015 is available at:

www.cityenergy.org.zawww.sustainable.org.za