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Resource 49
Resource 49
EXECUTIVE SUMMARY
LIST OF TABLES vi
Abbreviations x
3. Data acquisition 12
4. Energy balance 22
4.1 Energy balance in physical terms 22
4.2 Conversion factors 22
4.3 Energy balance 23
4.4 Conclusions from Energy Balance 23
5. Energy demand 25
5.1 Overall demand 25
5.2 By Energy Carrier 25
5.2.1 Liquid Fuels 25
5.2.2 Piped Gas Consumption in Ekurhuleni 27
5.2.3 Electricity 28
5.2.3.1 Connection Profile 28
5.2.3.2 Consumption Profile 29
5.2.3.3 Prepaid and credit metering systems 31
5.2.3.4 Trends in new connections in EMM 32
5.2.3.5 Electricity sales related to Gauteng and South Africa 33
5.2.4 Coal 35
5.2.5 Biomass 35
5.2.5.1 Animal dung 35
5.3 By energy users 35
6. Energy supply 58
6.1 Liquid fuels 58
6.1.1 Supply chain 58
6.1.2 Distribution and Marketing of Liquid Fuels 59
6.1.2.1 Distribution and Retail of Petrol and Diesel 59
6.1.2.2 Distribution and Retail of Illuminating Paraffin 59
6.1.2.3 Distribution and Retail of LPG 60
6.1.3 Petrol and Diesel 60
6.1.4 Illuminating Paraffin 61
6.1.5 Liquefied Petroleum Gas (LPG) 61
6.1.6 Policy and regulatory context 62
6.1.7 Liquid fuel pricing 62
6.1.7.1 Petrol, Diesel and IP Prices 63
6.1.7.2 LPG Price 63
6.1.7.3 Illuminating paraffin price 64
6.1.8 Trends and developments 64
6.2 Pipeline gas 65
6.2.1 Developments at the national level 65
8. State of energy 96
8.1 Service delivery framework 96
8.2 Issues 97
8.2.1 Geoeconomic dynamics 97
8.2.1.1 Agriculture 97
8.2.1.2 Industry 97
8.2.1.3 Transportation 97
8.3 Identification and prioritisation of energy issues in EMM 98
8.4 Conclusions and recommendations 105
8.4.1 Conclusions 105
8.4.2 Recommendations 105
8.4.2.1 Electricity 105
8.4.2.2 Liquid fuels 106
8.4.2.3 Environmental issues 106
Table 1 EMM Customer Care Centres and Eskom Direct Supply ..................... 2
Table 2 EMM electrical network – Eskom intake points and main substations.. 5
Table 3 Pre-research analysis of energy end-use in Ekurhuleni ...................... 7
Table 4 Survey results - energy use patterns in Ekurhuleni households .........16
Table 5 Source and level of disaggregation of data......................................18
Table 6 Energy balance for EMM in physical units, 2003...............................22
Table 7 Energy conversion factors ..............................................................23
Table 8 Energy balance for EMM, GJ in 2003...............................................23
Table 9 EMM energy demand related to the RSA total (TJ)...........................25
Table 10 Regional and national use of liquid fuels, kl 2003.............................26
Table 11 Consumption of liquid fuels per municipality, kl in 2003 ...................27
Table 12 Number of electricity customers by category ...................................29
Table 13 Overview of electricity sales by category of customer.......................29
Table 14 Average electricity consumption per customer class .........................30
Table 15 Eskom Large Power Users within the EMM boundary .......................30
Table 16 Electricity sales per municipality, 2003 ............................................31
Table 17 Comparison of electricity sales in EMM, Gauteng and South Africa ....35
Table 18 Energy source for lighting and cooking in EMM in 2001 ....................37
Table 19 Energy usage in lower income groups.............................................38
Table 20 Energy usage for lighting in Ekurhuleni ...........................................38
Table 21 Comparative prices of household energy carriers in Ekurhuleni, 2004 40
Table 22 Education profiles for Ekurhuleni ....................................................41
Table 23 Employment status for Ekurhuleni residents ....................................41
Table 24 Household energy use by carrier ....................................................44
Table 25 Estimated average energy carrier costs for Ekurhuleni .....................46
Table 26 Estimated costs of various energy carriers in the Ekurhuleni domestic
area .............................................................................................46
Table 27 Acceptance Matrix for Energy/Appliance Combinations.....................47
Table 28 Energy costs in the Ekurhuleni metals sector...................................48
Table 29 EMM mining electricity consumption profile .....................................48
Table 30 Rail passenger traffic in EMM .........................................................51
Table 31 Intersite electricity payments for railway operation ..........................52
Table 32 Energy consumption at Johannesburg International Airport ..............55
Table 33 National and EMM use of energy in the transport sector, TJ in 2001 .55
Table 34 Marketing of the different liquid fuels in EMM, kl in 2003..................59
Table 35 Comparison of LPG consumption in emerging economies .................60
This report first provides a background to EMM, giving a brief overview of its organization
into Service Delivery Regions and Areas as well as its overall demographic and economic
profile. This section also provides a short discussion on energy in order to put the reader
in context. The second section provides a thorough review of legislation and regulation
pertinent to energy in South Africa and in Ekurhuleni, in order to give a full picture of the
enabling environment. The third section provides an overview of the sources of data and
the validity and quality of data collected for each component of the Report. Section 4 then
provides an energy balance as an overview of energy use by energy carrier, by users
(demand sectors) and supply. Sections 5 and 6 detail energy demand by carrier and user
and energy supply by carrier respectively. Section 7 provides a thorough assessment of
environmental issues relating to energy in EMM. Section 8 then presents a detailed
discussion on the State of Energy in EMM, integrating the observations from the previous
sections and providing conclusions and recommendations for future action by EMM in
support of the preparation of a detailed Energy Strategy.
A GIS representation of EMM’s electrical network is appended to this report.
A six-volume compendium of documents and data collected during preparation of this
report is also included.
The area consists of about 192 355 hectares of land and is occupied by about 2,5 million
people occupying approximately 750 000 households. The budget of the metro was R7 269
billion in 2002/3. The capital budget was R726 million1.
EMM’s main employment sectors are:
• Manufacturing (115 739 jobs)
• trade (95 043)
• social services (92 877)
• business services (75 397)
• transport (57 502)
• construction (44 726)
• mining (19 836)
• farming (6 469)
• utilities (2 493).
EMM is responsible for some 23% of the Gross Geographic Product of Gauteng with the
inputs of some 33 000 business entities, including 8 000 industries, over 5 000 supporting
enterprises and a bustling commercial sector. EMM is an entity of globally competitive
business and industry. This prolific growth led to the natural confluence of towns and cities
that progressed to one of only seven metropolitan areas within South Africa. The mining
boom that led to the emergence of the then East Rand also prompted the growth of a
1
Gafney’s Official Yearbook, Local Government in South Africa, 2002-2004, page 282.
2
EMM, Integrated Development Plan, 2003-2007, Pocket Guide.
The EMM network drawing appended to this report was compiled from extensive inputs
from EMM Customer Care Centres (CCCs), as no single integrated GIS representation of
EMM’s electricity network is yet available in the municipality. Drawings indicating the main
substation location information (i.e. Eskom intakes, and e.g. 132kV/33kV substations) were
obtained from senior managers of the individual CCCs in DWG format or hard copy for
incorporation into the GIS mapping. One CCC, Alberton, still works with sepia drawings as
they have very limited computer facilities, while others use advanced computer aided
drafting packages.
For the purposes of preparing the appended drawing, the DWG drawings were converted
into shape files while the hard copy drawings were scanned and converted into Shape files
to reflect the EMM network. It is our understanding that there are plans to integrate
EMM’s GIS systems in conjunction with a significant investment in computer-aided drafting
hardware and software.
Table 2 indicates the number of Eskom intake points and main substations per CCC
Table 2 EMM electrical network – Eskom intake points and main substations
NUMBER
CUSTOMER CARE ESKOM MAIN SUBSTATION
CENTRES INTAKE SUBSTATIONS SIZE (kV)
POINTS
Eastern Region
Benoni 2 9
Brakpan
Springs/Nigel 3 20 22/ Supertension
Southern Region
Alberton 3 10 33/
Boksburg
Germiston 6 18 132/
4 42/
Northern Region 6 4 33/11
2 44/11
3 44/6.6
5 66/11
3 88/11
1 88/33
1 88/66/11
1 132/11/6.6
2 132/66
Energy in South Africa is dominated by electricity and liquid fuels supply and transport, the
former mainly generated through the burning of coal in large coal-fired plants. The
economy is considered energy intensive in comparison to other emerging economies. Due
to the diversity of socio-economic groups in South Africa, there is still significant diversity in
the role of energy in the life of ordinary South Africans. As a result of a significant drive
over the last ten years to achieve access to electricity by all South Africans, the country
now has an access rate of over 70%, and is continuing to connect some 300 000
households each year. However, many South Africans, especially those in the poorer
income groups and those below the poverty line, still make use of more traditional fuels for
heating, cooking and lighting.
Figure 2 provides a high level overview of the energy conversion process from supply to
carrier in South Africa.
Figure 2 Energy flow from primary energy supply to final use – roughly to scale
Primary Supply Conversion Transport Carrier
DEMAND SOURCES OF
SUB CATEGORIES SUPPLY OPTIONS
SECTORS INFORMATION
Households Formal, Hostels, Electricity, IP, Coal, DBSA, StatsSA, IDP,
Informal, Peri-urban, Biomass, Solar, LM, EMM Electricity
Farm-workers units Petrol, Candles, Dept, Eskom, NER,
Batteries SAPIA, LPGSA, DME
Transport Rail, Road, Aviation Electricity, Petrol, StatsSA, EMM, SAPIA,
Diesel, Gas (lifting LPGSA, Transnet,
crane), AVGAS/ Spoornet, Metrorail,
AVTUR, Coal Gautrans, Taxi
Associations, Bus
Companies
Industries Mining, Light & Coal, Piped Gas, Coal, Mines, EMM
Heavy LPG, Electricity, Coal, Gascor, SAPIA,
Manufacturing, Renewables, All SASOL, SESSA, LED
Processing & Liquid fuels EMM Electricity,
Packaging Eskom
Commerce Tourism, Trading, Coal, Piped Gas, As above
Services LPG, Electricity,
Renewables, All
Liquid fuels
Agriculture Commercial, Non- Diesel, Elect, IP, SAPIA, LPGSA,
Commercial Petrol, Renewables Eskom, EMM, SESSA,
NER
Government Buildings, Street Electricity, Diesel, EMM, Provincial,
Infrastructure Lighting, Vehicle Coal, ERWAT, RandWater
Fleet, H2O pumping
& Treatment,
Sewerage Treatment
Crosscutting Gender & Race, Environment, Air Quality, Energy Efficiency, Health &
issues Safety, Governance, Integrated Energy Planning (IEP), Renewable
Energy (RE)
The draft document is the first energy efficiency strategy for South Africa. It takes its
mandate from the White Paper on Energy Policy and links energy sector development with
national socio-economic development plans. It provides specific targets for reduction in
energy demand by 2014 within given demand sectors, with an overall target of 12%
reduction in consumption.
This policy sets annual EEDSM targets and specifies the programmes that would qualify for
EEDSM funding. Eskom is obliged to ensure that these targets are met, and all metros in
South Africa are obliged to incorporate EEDSM in their planning and to ensure EEDSM
implementation. The policy describes the regulatory mechanisms to be implemented by
the NER and outlines the following:
Access to funding
Administration of funds
Assets ownership
Development of EEDSM plans
Establishment of the Energy Agency in the future
Obligation of the future REDs to implement EEDSM to all end-users through ESCOs
(Energy Services Companies)
The requirement of licensees (distributors) to create awareness (advertise benefits) of
EEDSM among customers and offer time-of-use tariffs to all industrial and commercial
customers.
These next sections generally deal with actual consumption, except where otherwise
specified.
3.3.1.3 Electricity
Demand was assessed in terms of consumption, i.e. electricity billed by EMM and Eskom to
consumers.
The electricity distribution license is held by EMM, although Eskom is also directly involved
in the supply of electricity to some locations in the EMM boundary. Eskom mainly supplies
Large and Small Power Users (mining, commerce, agriculture and industry and certain
townships i.e. Daveyton, Etwatwa, Wattville, Duduza, Katlehong and Tsakane) and certain
key consumers in mines and industry. The key consumers are distinguished by their
reactive power consumption, measured in KVA.
The study entailed discussions and collecting documents and information from senior
managers of the EMM Electricity Business, the individual municipalities and Eskom
Customer Service. The individual municipalities could only provide the consumption
3.3.1.4 Coal
The data for coal was procured from merchants who supply coal in EMM for the period 1st
January to December 2003. The data provided was not independently verified.
3.3.1.5 Biomass
No data was received from for biomass, as it is mainly non-commercial and non-monetised.
It is necessary to institute a study in future to determine the consumption of biomass in
EMM. This is necessary as the unsustainable harvesting of woodfuel – a commonly used
biomass in rural communities – has an adverse impact on the environment.
3.3.2.1 Households
The 745 000 households in Ekurhuleni have the income distribution, for 2001, shown in
Figure 3. Research into consumption patterns in the Ekurhuleni area suggests that a
transition from third to first world consumption patterns occurs at around the R38 000 per
annum household income level, in 2001. Typical of such trends is that of illuminating
energy as shown in Figure 4.
In 2001 some 70% of the Ekurhuleni households had an annual income of less than the
R38 000 level. The trend away from labour intensive agricultural and heavy industries
towards “higher-tech” capital-intensive industries suggests that households with incomes
above the “transitional level” are not likely to grow in proportion.
180,000
160,000
140,000
Number of Households
120,000
100,000
80,000
60,000
40,000
20,000
0
0 7,201 28,801 115,201 460,801 1,843,201
Household Income (R/a)
0.8
0.6
Correlation Coefficients
0.4
0.2
0
R1 - 4800 R4801 - 9600 R9601 - R19201 - R38401 - R76801 - R153601 - R307201 - R614401 - R1228801 - Over
-0.2 19200 38400 76800 153600 307200 614400 1228800 2457600 R2457600
-0.4
-0.6
-0.8
Household Income
3.3.2.4 Commerce
Non-electricity data for this demand sector was obtained from DME reports.
3.3.2.6 Agriculture
Data for agricultural demand was obtained from DME reports.
3.3.2.7 Transport
Data for transport demand was obtained from DME reports. Transport data was obtained
from specific EMM departments with vehicle fleets and transport institutions associations
based and operating within EMM.
3.5.2 Electricity
The information on which this report is based is not readily available from any single point
of contact. Information was obtained from a number of sources, and was collated and
cross-referenced with data as was available to ensure integrity.
Although all municipalities store data (i.e. billing and payment information) on a similar
system (the Venus System), the data is handled separately by the individual municipalities,
consolidation is only carried out manually by EMM Electricity staff. A major difficulty
experienced by EMM Electricity staff is a difficulty reconciling financial and technical
information. For example, if a customer challenges a bill and receives a credit, although
the system records the financial credit it is currently not clear whether the corresponding
energy credit is correctly recorded. This problem is being addressed jointly with Finance
and IT. The status of progress on this issue should be assessed when EMM
designs its Energy Strategy, and appropriate support and actions planned with
the relevant departments.
One aspect of the investigation that warrants specific comment is the energy balance. We
attempted to quantity the loss profile by consolidating the information obtained from EMM
and Eskom. We were however not in a position to verify the loss profile, as no consolidated
energy balance is kept by EMM, in terms of bulk electricity purchases from Eskom by EMM
and sales by Eskom and EMM to end consumers. This exercise is carried out manually by
Electricity Department personnel who do not currently have the resources to fully resolve
discrepancies.
The project team attempted to match the total consumption figure by Small and Large
Power Users obtained from the Eskom Customer Service with a summary submitted by
Sales and Marketing – Eskom Centre. The difference was approximately 14%. Eskom staff
suggested that the potential reason for this overstatement is that electricity supplied by
Eskom to Dipaleseng municipality is also included.
In accordance with the IEA methodology, international and national aviation and marine
bunkers are only considered in the top part of the energy balance, as the energy is not
consumed within the area that is being analysed.
Local Government
385,191 0 0 885,928 0 1,271,119 1%
Agriculture 573,152 59,496 0 595,335 0 1,227,983 1%
Transport 48,422,758 4,292 0 21,434 0 48,448,484 41%
Total, final use 52,587,350 5,713,927 11,953,601 44,768,350 3,629,059 118,652,287 100%
%of total use 44.3% 4.8% 10.1% 37.7% 3.1% 100.0%
3
DME, Digest of South African Energy Statistics, 1998.
4
Transport type liquid fuels- petrol, diesel, avgas and jet fuel. Stationary type liquid fuels: IP and LPG.
Total for 407,659 69,089 43,426 42,926 662,649 681,257 198,870 2,103,906
South
Africa, 2003
Source: DME, 2001 extrapolated and Energy Balance for EMM, 2003
5
DME, RSA Energy Balance for 2001.
12,000
10,000
litres (millions)
PETROL
8,000
DIESEL
6,000 IP
4,000 LPG
2,000
0
92
93
94
95
96
97
98
99
00
01
19
19
19
19
19
19
19
19
20
20
Year
While petrol consumption has traditionally been dominant, Figure 5 shows a potential
swing in diesel and petrol consumption patterns.
EMM uses a surprisingly large component of IP (42.4%) and LPG (59.8%) in relation to
Gauteng, as shown in Table 10. Petrol and diesel use is about 25% of that of the Province
and petrol forms a high 9.3% of the national total.
South Africa6 10 668 487 7 263 079 768 146 568 702
Extensive differences between the marketing of the different liquid fuels exist between the
constituent parts of EMM in the form of the municipalities as can be seen in Table 11
overleaf.
6
Spreadsheet downloaded from SAPIA website, www.mbendi.co.za/sapia/rsacons.htm
Furnace
Municipality Petrol Diesel Avgas IP LPG Total % of total Jet fuel
oil
Alberton 145,862 131,632 2,536 279 16,325 6,475 303,108 18% 55
Benoni 135,523 48,095 1 22,560 13,278 219,458 13%
Boksburg 142,470 49,020 3 1,172 534 193,200 12% 1,012
Brakpan 52,978 30,430 284 1,936 630 86,258 5%
Germiston 210,340 83,953 1,254 2,205 2,323 45,598 345,672 21% 1,054
Kempton Park 213,336 87,096 980 2,706 10,495 2,177 316,790 19% 1,489,510
Nigel 23,049 23,200 881 132 47,261 3%
Springs 68,001 22,495 59 38,394 1,590 810 131,350 8%
Total 991,560 475,921 5,117 43,584 57,281 69,634 1,643,096 100% 1,491,632
% of total 60% 29% 0% 3% 3% 4% 100%
Jet fuel has been indicated separately in the right hand column of the table as most of it is
not consumed within the boundaries of EMM. The jet fuel volume is high as it is about of
the same order as the total of all other liquid fuels that are consumed within EMM. Most
(99.9%) of this is in Kempton Park, at Johannesburg International Airport.
In terms of total municipal use Germiston, Alberton and Kempton Park are the largest and
Springs, Brakpan and especially Nigel the smallest. Petrol is by far the dominant liquid fuel
that is used within EMM (60%) followed by diesel (29%), with low usage of the other liquid
fuels. The reason why furnace oil is mainly used in Springs is not known at this stage.
Heavy furnace oil consumption in EMM over a decade is shown in Figure 6 below.
8,000,000
7,000,000
6,000,000
Consumption (l/month)
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Jun-94 Oct-95 Mar-97 Jul-98 Dec-99 Apr-01 Sep-02 Jan-04 May-05
-1,000,000
Date
Alberton Benoni Boksburg Brakpan Germiston Kemptonpark
Nigel Springs Total Poly. (Total)
2 ,50 0 ,0 0 0
2 ,0 0 0 ,0 0 0
Monthly Consumption (GJ)
1,50 0 ,0 0 0
1,0 0 0 ,0 0 0
50 0 ,0 0 0
-
Dec-0 2 J an-0 3 M ar-0 3 M ay-0 3 J un-0 3 Aug -0 3 Oct-0 3 No v-0 3 J an-0 4
Date
5.2.3 Electricity
This section sketches the context within which electricity is provided in the EMM boundary.
The electricity distribution license is held by EMM, although Eskom is also directly involved
in the supply of electricity to some locations in the EMM boundary.
This section describes the following:
Connection profile – number and type of electricity customers for EMM and Eskom
Consumption profile – a breakdown of electricity consumption by demand sector
Income profile – revenues generated by EMM and Eskom by sales of electricity within
EMM
Total Consumption
Total Income
Consumption and billing profiles by Service Delivery Area (SDA)
There is significant variation in the amount of energy sold and the respective income per
unit of electricity sold in the various municipal distributors, as reflected in Table 16. These
Please note that the category of General Consumption, which includes own use and
streetlighting, is excluded from Table 16.
2500
2000
Connection Frequencies
1500
1000
500
0
0 1 2 3 4 5 6 7 8 9 10
-500
Municipalities
1 Alberton 6 Germiston
2 Benoni 7 Kempton Park
3 Boksburg 8 Springs
4 Brakpan 9 Tembisa
5 Edenvale
Although new connections tend to support the emphasis on north-south development, the
activity at Boksburg is anomalous (Figure 9). Certainly Alberton, Benoni, Brakpan,
Edenvale, Springs and Tembisa show little activity in the area of new connections.
70
Frequency for 2003/2004
60
50
40
30
20
10
-10 0 1 2 3 4 5 6 7 8 9 10
Municipality
1 Alberton 6 Germiston
2 Benoni 7 Kempton Park
3 Boksburg 8 Springs
4 Brakpan 9 Tembisa
5 Edenvale
5.2.4 Coal
Not much coal is consumed in Ekurhuleni, considering the fact that of the national annual
coal sales of about 3 million tonnes, only 149, 344 tonnes (5%) were consumed in this
area in 2003. Coal is used mainly in coal-fired boilers and in households for space heating,
cooking and warming. About 30% of the coal supplied to Ekurhuleni is used in households
with the balance going to industry/construction.
Due to the significant air pollution problem caused by the combustion of coal, particularly
in households, there are strategies by the Department of Minerals and Energy (DME) to
provide townships with low-smoke fuels and other relatively cleaner forms of energy. Air
pollution emanating from the domestic combustion of coal results in acute respiratory
illnesses, poor visibility and mars the aesthetics of physical structures.
In this regard, the use of relatively cleaner forms of energy like electricity, LPG, paraffin
and piped gas is being advocated by the DME. Reasons cited by households that use coal,
especially for space heating during winter include the fact that coal is comparatively cheap
and the lack of financial resources to purchase new appliances for other fuels. In most
households, old coal stoves that have been used by previous generations are still in use.
5.2.5 Biomass
7
Data for 2001 obtained from NER website, www.ner.org.za, and adjusted with the overall national
increase from 2001 to 2002 of 3.9%.
8
Data for 2002 from NER publication, Electricity Supply Statistics, 2002.
The Energy White Paper (1998) makes several key points about household demand:
energy services for low-income households have historically been inadequate
households suffering unemployment and poverty rely on less convenient and often
unhealthy fuels
grid electrification may not satisfy the energy needs of low-income households
most household energy consumers are women
energy conservation by high-income households was not historically a policy priority
coal use in urban areas results in indoor air pollution
energy security for low-income households can help reduce poverty, increase
livelihoods and improve living standards.
9
NER, http://www.ner.org.za/stats/statistics_gauteng.htm
ENERGY
LIGHTING COOKING
SOURCE
Electricity 557,601 488,909
Gas 1,591 7,262
Paraffin 28,861 190,265
Candles 154,321 -
Solar 1,127 1,700
Wood - 2,460
Coal - 51,598
Animal dung - 1,649
Other 1,435 1,092
Total 744,936 744,935
Source: SA National Census, 2001
This implies that a minimum of approximately 560 000 households had access to electricity
in 2001. Extrapolating conservatively (on a linear basis, at 5% per year or 10% over two
years) to 2003 implies an additional 56 000 households had access to electricity, for a total
of 616 000 grid-connected households in comparison with 425 000 EMM/Eskom customers.
The proportion of households using electricity for lighting (77.5%) shown above is high in
comparison with the NER’s published statistic of 71.9% urban electrification in Gauteng in
2001.
EMM’s records are thorough and rigorously cross-checked through the billing system. EMM
and Eskom staff indicated that they are in a process of verifying the number of households
served in the EMM boundary.
Sources of this discrepancy could include:
Overestimation of the number of households in Ekurhuleni in the census
Overestimation of the number of households using electricity for lighting (through
possible misunderstanding of the question by census respondents, as well as derivation
or interpolation on the basis of overly generous assumptions of electrification rates)
Illegal connections, although most municipalities report these to be a relatively small
percentage of total connections.
This difference needs to be examined through a more thorough investigation of how the
census household numbers and electricity usage patterns were derived.
COOKING, LIGHTING,
HEATING, NO. OF
FUEL TYPE NO. OF NO OF
HOUSEHOLDS
HOUSEHOLDS HOUSEHOLDS
IP 190 264 99 221 28 861
Woodfuel 2 460 10 724
Coal 51 598 142 437
Animal dung 1 649 1 045
Candles 154 320
Although there was some 38% increase in electricity usage for lighting between 1996 and
2001, the increase in IP was double that, suggesting that IP is considered either more
readily available (no connection fees or activities needed) and/or more affordable for
certain illuminating purposes. The difference in consumption growth between
electricity and IP for lighting should be examined in more detail.
Little woodfuel is used in Ekurhuleni relative to electricity, gas, IP and coal, as shown in
Table 18 and Table 19. This appears normal, as Ekurhuleni is urbanised, with limited
access to “free” woodfuel as in rural areas. Woodfuel use in the East Rand is confined to
heating and cooking. Nationally, the bulk of the woodfuel utilisation occurs in rural areas
where most of the trees and plantations are located.
African
Coloured
Indian
White
The population is largely young to middle-aged (ref Figure 11 overleaf) with the largest
group lying within the 15 to 34 age group ranges. It is of interest to note that the male
component of the population is greater than the female, suggesting that a component of
the EMM population may be migratory in character.
600, 000
No. o f Househ olds
500, 000
400, 000
300, 000
200, 000
100, 000
0
5
5
34
64
4
34
14
14
64
r6
r6
to
to
to
to
to
to
to
to
ve
ve
-0
-0
5
5
-5
-O
-5
5
-O
-1
-3
-1
-3
es
es
es
es
s
es
es
al
s
al
es
ale
ale
al
ale
al
M
m
al
al
al
m
M
m
Fe
M
M
m
Fe
Fe
Fe
Fe
Age ca tegory
The EMM contains a core of adequately educated people (Table 22) suggesting an
adequate people resource for industrial expansion. The problem lies with the changing
nature of industrial production and the lag in more educated people entering the
workplace. This is illustrated by Table 23 where an increase in people employed of 12.7%,
over the period 1996 to 2001, was matched by an increase in unemployment of 61.5%
over the same period.
NUMBER OF
PEOPLE
CATEGORY 1996 2001
Employed 675 551 761 040
Unemployed 319 496 516 033
Not economically active 467 390 514 422
Total labour force 1 462 437 1 791 495
180,000
160,000
140,000
Number of Households
120,000
100,000
80,000
60,000
40,000
20,000
0
0 7,201 28,801 115,201 460,801 1,843,201
Household Income (R/a)
None
R1 - 4800
R4801 - 9600
R9601 - 19200
R19201 - 38400
R38401 - 76800
R76801 - 153600
R153601 - 307200
R307201 - 614400
R614401 - 1228800
R1228801 - 2457600
Over R2457600
None
R1 - 4800
R4801 - 9600
R9601 - 19200
R19201 - 38400
R38401 - 76800
R76801 - 153600
R153601 - 307200
R307201 - 614400
R614401 - 1228800
R1228801 - 2457600
Over R2457600
The EMM area is dominated by formal housing (Figure 15), a measure of the relative age
of the area during which settlement has been dominated more by planning than influx.
This is an advantage when considering the implementation and maintenance of services
such as electricity, water and transportation.
Formal
Informal
Traditional
Other
600,000
500,000
400,000
Households
300,000
200,000
100,000
0
Electricity Gas Paraffin Wood Coal Animal dung Solar Other
Fuel
500,000
450,000
400,000
350,000
Hoseholds
300,000
250,000
200,000
150,000
100,000
50,000
0
Electricity Gas Paraffin Wood Coal Animal dung Solar Other
Fuels
600,000
500,000
400,000
Households
300,000
200,000
100,000
0
Electricity Gas Paraffin Candles Solar Other
Fuels
A source of energy growing in importance is that of gas, particularly LPG. Suppliers are
giving much attention to capturing some of the domestic market from more traditional
energy sources such as electricity and coal. The 350 000 tonnes of LPG consumed
nationally, each year, has the following consumption pattern:
Commercial 19%
Industrial 41%
Agriculture 6%
Mining 1%
Automotive 0.1%
Domestic 33%
IP (R/l) 0.82 0.93 0.95 1.36 1.76 1.99 2.04 2.91 0.08 78.75
Coal (R/t) 66.7 110.4 136 203.6 142.90 236.52 291.36 436.18 0.02 17.95
LPG (R/l) 0.75 0.98 0.92 1.296140032 1.60 2.10 1.98 2.78 0.10 104.00
Electricity (R/kWh) 0.3605 0.10 100.14
The cost to the domestic sector of selected energy carriers is given in Table 26 below:
g = good
a = acceptable
i = inappropriate
In spite of the dominance of industrial activity located in Ekurhuleni, the area’s share of
national energy usage, with the exception of Sasol gas, is modest, as shown in Table 9.
Energy carrier inputs in the metals sectors of Ekurhuleni are shown, in money terms, in
Table 28.
Industry and construction consumed 36% of the total energy demand in EMM in 2003. In
absolute terms, this amounts to 42,665,448 GJ. This was the second biggest sectoral
consumption of energy in EMM for the same year.
5.3.6 Agriculture
In 2003, agriculture consumed 1,227,983 GJ of energy, which was equivalent to 1% of the
total energy consumed in EMM in that year (Table 8).
A quantitative indication of the agricultural activity decay rate is provided by a profile of
industrial paraffin usage, a commodity associated with agriculture, as shown in Figure 19.
400,000
350,000
300,000
Consumption (l/month)
250,000
200,000
150,000
100,000
50,000
0
Jun-94
-50,000 Oct-95 Mar-97 Jul-98 Dec-99 Apr-01 Sep-02 Jan-04 May-05
Date
10
Much of the information in this section has been extracted from an Africon annual progress report on
public transport to EMM for 2002.
11
EMM comments on draft EMM State of Energy Report, 15 October 2004.
Intersite owns and manages stations and traction (track and associated signals and control
systems). Electricity payments by Intersite are presented in Table 31 overleaf. Electricity
consumption for Intersite railway operations in Ekurhuleni cost was of the order of
R1 450 000 in 2003.
Table 33 National and EMM use of energy in the transport sector, TJ in 20015.
Liquid % of
Transport sector Coal Electricity Total
fuels total
South Africa
International air transport 37 840 37 840 6%
Local air transport 28 978 133 29 111 5%
Road 525 978 79 526 057 85%
12
Rail 67 8 160 19 601 27 828 4%
Pipeline 182 182 0%
Total 67 600 956 19 995 621 018 100%
% of total 0 97% 3% 100%
Ekurhuleni
EMM total 0 48 525 21.6 48 546
EMM as % of national total 0% 8.1% 0.1% 7.8%
12
Includes 7067 TJ that is listed under “Transport non-specified”.
Activity model
Separation
Matrix by activity
Attractiveness
Trip distribution data of zones
Matrix of PuT
quality
Constraints experienced on sourcing data from local government institutions and respective
modes of transport were the unavailability of the relevant personnel handling such data.
Some of those who were present, promised to send the information and had to be followed
to do so.
EMM’s Department of Health undertook to coordinate the collection of data from all
health institutions, however when the information was provided no statistics were
included. The Department advised that all these institution use only electricity and
no other forms of energy, such as diesel or petrol. This does not address the
question of alternative sources of energy, e.g. during power failures.
Most of EMM’s energy data is administered by the Department of Public Works. It
was not possible to contact the relevant personnel in the Department during the
course of the project.
13
IEA, The Link between energy and human activity, 1997.
14
IEA, Toward a Sustainable Energy Future, 2001, page 151.
15
DME, Draft energy efficiency strategy for the RSA, April 2004.
16
The license fee related to the fuel efficiency of the vehicle.
The LPG distribution is not as long and complex as the paraffin distribution chain (shown in
Furnace
Marketing channel Petrol Diesel Avgas IP LPG Total % of total Jet
oil
Service stations 949,645 145,113 389 969 194 1,096,310 66%
Other resellers 17,640 92,088 51,425 58,959 220,112 13%
Farmers 3,631 54 3,685 0%
Co-ops 270 11,170 4,728 1,554 17,722 1%
Other commercial 10,463 55,105 43,584 2,797 10,481 122,430 7% 1,063,638
Central government 389 641 1,031 0%
Local government 4,056 5,479 9,535 1%
Transnet 342 5,638 5,980 0% 427,994
Mining 418 5,944 12 6,375 0%
Constriuction 467 12,919 314 13,699 1%
Buses 1,014 9,751 10,764 1%
Road trucks 6,857 140,797 116 147,770 9%
Total 991,560 488,277 5,117 43,584 57,241 69,634 1,655,412 100% 1,491,632
% of total 60% 29% 0% 3% 3% 4% 100% 90%
As can be seen in Table 34, the most important marketing channel is by means of service
stations (66% of total sales), followed by “other resellers” (14%) and the direct marketing
to larger companies as “other commercial” and “road trucks”, both 8% of the total.
Final
Consumer
Major
Retailers
Refinery (& other Small
small Retailers
routers) (Spaza
shops)
Depots
Routers Private
Homes
Medium
size
retailers
17
Most of the data and analysis adapted from DME & UNDP (2004): LPG Rural Challenge Workshop, South
Africa – Workshop Background and Briefing paper.
Sector Consumption, %
Households 91.6
Industry/Construction 5.4
Mining & Quarrying 0.0
Agriculture 2.8
Transport 0.2
Total 100.0
This is expected, considering the fact that IP is predominantly used for lighting and cooking
in comparatively less affluent households. The subsidy put on IP by the Government
through exemption from VAT encourages its use by households with relatively low
incomes.
Recently, campaigns have been mounted to improve the safe use of paraffin by the
Paraffin Safety Association. Interviews conducted with experts suggest that accidents
caused by IP emanate from ingestion by children as well as accidental knocking-over, in
particular, during the night. Most fires and burns in poor settlements have been attributed
to the use of paraffin. As indicated elsewhere in this report, the DME is promoting LPG and
other low-smoke fuels (coal) in order to minimise the use of paraffin, due to its toxicity
when ingested, ease of spreading fires and illicit use by farmers through mixing with diesel.
Paraffin appliances are usually more affordable, albeit substandard. The SABS has recently
launched a campaign to improve the quality of paraffin stoves.
Commerce
Households 43% 42%
Industry/Construction 15%
There are plans to accelerate the use of LPG in the residential sector, particularly in low
income households in order to reduce the use of dangerous IP. A strategy is being
developed by the DME to roll out LPG, and it is envisaged that municipalities will play
a key role in implementing the LPG strategy.
18
This a system or methodology which was implemented in April 2003, and based on the revised import-
parity pricing for determining a refinery gate price, and a rate-of-return mechanism to calculate the
wholesale price and cost recovery for retail margins. Therefore, BFP price is not really a regulated
price at the refinery gate since refineries are not legally bound to sell their products at this price.
Source : http://www.shell.co.za/vpower/pprice.htm
19
The IBLC formula was based on 80 per cent posted prices at refineries in Singapore and Bahrain and on
20 per cent spot prices of refineries in Singapore. (These prices are sourced from
http://www.transportandconstruction.co.za/press/press200029.html )
While LPG is not a controlled product (meaning that its retail price remains unregulated),
the DME is considering regulating the price using petrol-related import parity pricing, but it
is not clear whether regulating the price would contribute to lower prices to the consumer.
The experience, for instance, with the removal of VAT in the retail price of IP is not entirely
satisfactory. The commissioned National Treasury study (CIS 2004) reveals that the
“subsidies have not reached the beneficiaries”. It is anticipated that a regulated LPG retail
price will face the same problem and the biggest challenge would, as with IP, be the
“policing” the price or at least communicating the price to the consumers.
20 Much of this analysis is based on the recently completed study by the CI Services (LTD) Pty (March
2004), “The LPG Rural Energy Challenge: South Africa LPG Industry Report”.
Use per
Number of Use in
Sector % of total customer
customers 2003 (GJ)
(GJ)
Metal 109 3,794,680 32% 34814
Mining & Non-
28 4,680,985 39% 167178
metal
Chemical, Pulp,
52 1,615,427 13% 31066
Paper
Manufacturing 139 971,157 8% 6987
Food &
35 891,352 7% 25467
Commercial
Total 2003 363 11,975,634 100% 32991
6.2.4 Pricing
Sasol Gas uses a market value pricing mechanism. This is defined as equating the price of
gas to that of the import parity price of the mix of logical alternative energy carriers as
calculated in October each year and is then differentiated on a volume basis. These prices
for 2003 are given in Table 40. At high levels of consumption, above 400,000 GJ per
annum, prices are negotiated.
Consumption, GJ Price
per annum (R/GJ)
0-5000 87.19
5001-15000 79.22
15001-40000 71.57
40001-10000 62.3
100001-400000 54.05
More than 400000 46.2
6.3 Electricity
5.3.1 Supply purchases
EMM purchases most of its electricity from Eskom, mainly on the Megaflex time-of-use
tariff. A total of 34 Megaflex, 13 Nightsave and 3 Miniflex accounts exist that are related to
dedicated supply points. For the month of March 2004 the Megaflex accounts varied from
1.7 MW (Clayville) to 112 MW (Boksburg North), R85,000 to R7.9 million and load factors
of 38% (Kwa Thema) to 91% (Boksburg Mapleton).
Total EMM purchases from Eskom and CityPower in 2003/4 amounted to 10 528 929 MWh
as indicated in Table 41. Eskom provides directly an additional 3 870 008 MWh to
consumers (i.e. small and large power users and key consumers) within the EMM
boundary. Please note that we obtained only the Eskom sales figures to these customers.
We have therefore estimated the Eskom purchases by assuming a 9% loss.
6.3.2 Tariffs
EMM has developed a set of tariffs that follow the example of Eskom in including time-of-
day and seasonal components. This followed a period of rationalisation of the individual
tariffs of the constituent municipalities that culminated in these standard tariffs. The
present tariffs came into force on 1 January 2004 and are summarised in Table 42.
Based on data of six of the nine municipal distributors, Tariff A accounted for 5.1% of
electricity sales, Tariff B for 25.4%, Tariff C for 62.4% and Tariff D for 7.1% and no sales
occurred for Tariff E. Specific comments on this schedule are:
The advanced tariff design principles that have been incorporated.
The choice of households between tariffs A or B and of industry and commerce
between tariffs C, D and to a certain extent tariff E, provided specific size restrictions
are satisfied.
The incorporation of the FBE subsidy23 of a free block of 50 kWh per month for all
households users.
The price signal that is conveyed by season for households and industry/commerce.
The purpose is to motivate the use of other energy carriers for especially heating so as
to reduce the demand for electricity in winter.
The price signal that is provided for industry/commerce for the time-of day as is caused
by the national load curve that leads to peak and off-peak demand periods.
Extensive potential exists for users to reduce electricity costs by applying energy
efficiency and demand side management principles.
It is not known to what extent these tariffs are cost reflective.
21
EMM, Schedule of tariffs for the Supply of Electricity, January 2004.
22
The first figure refers to the summer months of September to May and the second figure to the
remaining winter months
23
This is the Free Basic Electricity (FBE) subsidy that government introduced in July 2003.
24
Rebates of 1% to 5% apply for supply voltage and load factor.
25
A conversion surcharge of 80%, 60%, 40% and 20% of the financial saving is added during the first
four years.
26
These figures refer to peak, standard and off peak hours respectively where different schedules apply to
weekdays, Saturdays and Sundays.
27
No load factor rebate.
There is significant variation in the amount of energy sold and the respective income per
unit of electricity sold in the various municipal distributors, as reflected in Table 44. These
range from 2% to 23% of the total energy sold and 3% to 24% of income for Nigel and
Germiston respectively. Germiston and Kempton Park are the largest distributors. There
are extensive differences between the income per unit of electricity sold. This is
a function of the demand categories that are mainly supplied, the load and the
ratio between fixed and variable charges. This varies from a low of 19 ¢/kWh for
Boksburg to 33 ¢/kWh for Nigel, which has the lowest sales.
29
NER, Draft regulatory policy on energy efficiency and demand side management, published for
comment early in 2004.
6.3.4.7 Vandalism
Vandalism in Ekurhuleni’s electricity subsector is essentially related to theft of copper
conductor from the 400 V overhead lines, through the range of higher voltages and 11 kV
and 33 kV to 88 kV. It was reported that theft of overhead 400 V cable happens on a daily
basis in Benoni. Municipalities generally replace stolen copper cable with aluminium/aerial
bundled conductor, which is less attractive to thieves.
Typical costs associated with the replacement of the stolen cable include:
Low voltage lines at R30/m (in August 2004, 3100 m of cable were replaced in Benoni)
33 kV line at R240/m (2 spans of 800 m were stolen in 2004)
30
Gafney’s Local Government in South Africa, 2002-2004.
Photo 2 Closeup of vandalism at Van Eck substation (11kV cable was stolen)
(photo courtesy
of EMM
Electricity
Department)
6.4 Coal
There are four suppliers of coal in Ekurhuleni:
Chandler
McPhail
Muntu Coal
Express Coal.
Total coal supplied to EMM in 2003 was 149 344 tons for industry, commerce and
households. The suppliers requested confidentiality as to the volume of their annual sales.
These suppliers take orders from clients and source the coal directly from the pitheads
(mines) and supply at the premises of the clients. However few suppliers keep marginal
stockpiles at their premises to meet certain ad hoc requests. Some of the suppliers have
depots in EMM.
The price of coal depends on distance from pithead to the premises of the client, the grade
of coal and obviously the tonnages required. On the whole, prices range from R180-R500
per ton. The coal is supplied in 70 kg bags, in trucks with capacities of 10-30 tons, in
scoops or grabs (720 kg). The clients are commerce, industry and smaller merchants who
retail the coal.
Three other suppliers, Kumba Resources, Eyesizwe and Ingwe supply coal to Eskom
Generation as fuel for coal-fired generating plants. These sales take place outside
Ekurhuleni.
6.5.2 Woodfuel
Little woodfuel is used in Ekurhuleni relative to electricity, gas, IP and coal. This appears
normal, as Ekurhuleni is fully urbanised, with limited access to “free” woodfuel as in rural
areas. The little woodfuel used in the East Rand is only confined to heating and cooking by
destitute households. There is some that is used more for recreational purposes (such as
braais) and in traditional ceremonies.
31
According to the Census, some few households in Ekurhuleni use animal dung mainly for heating and
cooking. In rural areas, animal dung also has a non-energy use for the plastering of huts in rural
areas.
The EMM has commissioned consultants to evaluate the quantity and quality of LFG
(especially methane, CH4) released from four of its five currently operated landfills. The
study underway involves looking at the LFG yield assessment, gas yield modelling, pumping
trials and flaring. Three active wells with flares are currently being installed at four of
EMM’s five regional landfill sites: Rietfontein, Rooikraal, Weltevreden and Simmer & Jack
landfills. The potential for LFG utilisation will depend on predicted gas yields and site-
specific factors e.g. type and amounts of waste inputs. This information will be used to
determine an appropriate technology for a specific site such as:
Upgrading for natural gas quality;
Upgrading for bi-fuel use;
Indirect use e.g. electricity generation;
Direct thermal application.
This current study will provide recommendations on appropriate technology for renewable
energy recovery at each site. The existing LFG-to-energy project in EMM is the one
commissioned at the Weltevreden landfill site. The anticipated LFG utilisation options for
operational open sites at the EMM are presented in Table 46.
The LFG utilisation options identified by the EMM include (Pieterse 2003):
i. Flaring only: flaring means the burning of the LFG.
ii. Using as boiler gas: this option is limited due to distance between boiler users and
the landfill sites. However, such an option exists next to the Rietfontein site where
there is a tile/brick factory.
iii. Electricity generation
iv. Vehicle fuel: methane gas can be used as vehicle fuel in two methods as: a) clean
methane and; b) Mixed with diesel (25% diesel and 75% methane).
Case Study: Weltevreden LFG Pilot Project
The EMM was the first municipality in South Africa to commission a small-scale pilot
methane purification plant in 1999 at the Weltevreden landfill site in Brakpan, eastern
Gauteng. The objective of building this pilot plant was to capture LFG generated from the
landfill and to purify it using membrane technology. This would consequently provide
advantages such as generating renewable energy from LFG, cut energy costs and reduce
GHG emissions, particularly CH4, into the air. The extraction and utilisation of LFG promotes
quicker settlement of the landfill hence increases the airspace. Therefore, this extends the
life span of landfill site and reduces odour nuisance.
The figures above refer to the national situation and it is not known the extent to which
renewables provides job opportunities in the EMM. However, it is assumed that the low
deployment of RE technologies militates against RE contributing to the municipality’s GDP.
Implementing renewable energy measures in a municipality such as EMM presents major
challenges despite the favourable policy and regulatory environment in South Africa. As
municipalities are going to play a more direct and extended role in energy provision,
including renewables options and efficiency measures, it is important that such barriers are
isolated and addressed.
6.6.1.1 Targets
The DME has set the following energy demand reduction targets by the year 2014 in South
Africa’s demand sectors:
REDUCTION IN DEMAND
DEMAND SECTOR
BY 2014
Industry 15%
Commercial and Public 15%
Buildings
Residential 10%
Transport 9%
Total 12%
Source: DME Draft Energy Efficiency Strategy of the Republic of South Africa, April 2004
60 WATT
PARAMETER INCANDESCENT 15 WATT CFL
LAMP
Wattage (W) 60 15
Monthly consumption (kWh) 7,2 1,8
Equivalent incandescent lamp light output
60 75
(W)
Expected life (4 hours daily Hours 1,000 6,000 – 15,000
use) Years 0,68 4,11 – 10,27
Price R 3.00 R 20.00 – R 80.00
Failure rate
Manufacturer guarantee (years) NONE 1-3
Burning surface lamp temperature Very high Low
Source: Bonesa 2003
Eskom DSM and Bonesa together with the electricity department of EMM have
implemented an Efficient Lighting Initiative (ELI) using mostly CFLs for low income
households, EMM buildings and public lighting.
7.1 Introduction
The generation, transportation, distribution and use of energy are the major driving forces
of environmental change in the Ekurhuleni Metropolitan Municipality (EMM). EMM largely
relies on electricity for its energy requirements. Industry and business account for
approximately 62% of the electricity consumption and domestic consumption the remaining
38% (ref Table 8). A large proportion of the electricity in the area is supplied by Eskom and
is dependent on the burning of fossil fuels. Table 24 showed the sources from which
households derive energy required for lighting, heating and cooking, confirming that EMM
household energy use is very much electricity and therefore fossil fuel based.
7.1.1 Emissions
Fossil fuel combustion produces carbon dioxide, which absorbs radiant energy, contributing
to the greenhouse effect. There is concern that increasing concentrations of greenhouse
gases (including carbon dioxide, methane and manmade chlorofluorocarbons) may
enhance the greenhouse effect and cause global warming. Fossil fuels currently provide
nearly 38% of net domestic electricity generation by electric utilities which contribute to
emissions of various gases at significantly high levels into the atmosphere. Estimated
emissions from fossil-fuelled steam-electric generating units are:
Sulphur dioxide (SO2);
Nitrogen oxides (NOx); and
Carbon dioxide (CO2).
Other major air emissions include:
volatile organic compounds (VOCs);
carbon monoxide,
lead, and
Particulate matter less than 10 microns in diameter (PM10).
There is growing recognition that these emissions adversely impact the environment
locally, nationally, and globally. These impacts are labelled environmental “externalities”.
Included in the generic term externality are benefits or costs resulting as an unintended
by-product of an economic activity that accrue to someone other than the parties involved
in the activity. As a result, externalities do not enter into the market-pricing calculations of
the parties undertaking the activity. In the case of power generation, only costs associated
with providing electricity are taken into account to the exclusion of costs related to the
unintended by-products of producing electricity. Included in this category are the costs of
impacts on the ecosystem and the environment, such as human health, which is not fully
included in the market price. Due to the fact that these impacts remain unaccounted for,
the cost of power generation remains lower than it otherwise would be, if the cost of
burdens imposed on society were also included32.
Since the early 1970s, the realization that the environment consists of resources that are
scarce and exhaustible has brought about a nexus between the environment and the
economy. There has been an interest in correcting the prices by including part or all of the
excluded costs. Considerations of environmental externalities have thus become
increasingly important in the resource planning operations of domestic electric utilities,
32
Energy Information Administration 1995
7.2.1.1 Recommendations
The extent and location of residual PCB contaminated oil (if any) in EMM electrical facilities
should be assessed, and an action plan drawn up to dispose of the remaining chemicals.
The action plan should take into account the proximity of facilities available for
decontamination.
7.2.2.4 CIGRÉ
At the recent CIGRÉ (Conseil International des Grands Réseaux Électriques – International
Council on Large Electric Systems) conference held in Paris in September 2004, a session
was dedicated to current research and developments on the topic, at which it was noted
(Conti and Fanelli) that in Italy, legislation provides for regulation of exposure to EMF.
There appear to be few reports providing recommendations on how electricity utilities and
local governments can practically manage remedial and mitigating measures, apparently
because evidence is not yet conclusive enough.
Of these, the most significant source of pollution related to either energy generation or
consumption is the contribution from domestic fuel use. Although industrial activities do
indeed contribute significantly to air pollution in Ekurhuleni, it is not possible at this stage
to disaggregate the data to show to what extent the pollution relates to energy generation
or consumption.
By the same token, at this stage it is not possible to disaggregate data to show the extent
to which energy production and use contribute to water pollution.
It is important to note that the figures presented in Table 50 exclude emissions from other
sources, such as light industry (non-scheduled processes), motor vehicles, domestic fuel
combustion, and mining and waste disposal sites.
The two major types of energy related pollution within this sector are air and marine
pollution. The industrial sector is the prime contributor to air pollution. Coal combustion
can lead to particulate matter in the air, as well as contribute to acid rain.
In addition to industrial pollution, low-level atmospheric pollution often results from coal
combustion in stoves, as well as coal-heated boilers that are found in hospitals and
factories (EIA 2002).
7.4.3 Transport
Transport and communication contributed 6% to the economy of EMM in 2001. Given the
strategic location of EMM, its road, rail and air networks also support a significant amount
of passing traffic. Hence air emissions from the various transportation modes that are
encountered in this area are likely to be a significant air pollution source. Of the various
transport modes, road (vehicle) transport is considered to be the most significant regional
source of air pollution. Vehicles emit carbon monoxide, carbon dioxide, nitrogen oxides,
sulphur dioxides and volatile organic carbons (VOCs). There is no quantitative information
with respect to the contribution of vehicle emissions to air pollution loads in the EMM.
The South African government published a draft strategy in 2003 on the control of exhaust
emissions of road going vehicles33. This strategy takes local conditions into account as well
as developments in other developed countries. The definition of clean fuels, as applicable
from 2006 is "any fuel that does not contain heavy metals and having a maximum benzene
33
Government Gazette no 25714 vol 462, 12 December 2003, Draft Joint Implementation Strategy for the
Control of Exhaust Emissions for Road Going Vehicles in the RSA.
7.4.4 Households
Domestic households have the potential to be one of the most important sources of air
pollution. As is the case with light industry, individual households are low volume emitters
of air pollutants but their cumulative impact is significant. Air pollution from domestic
households occurs primarily due to the combustion of fossil fuels as an energy source.
The use of coal and wood as a domestic source of energy is the most significant source of
air pollution at a metropolitan level. In addition, wood and coal combustion is the primary
energy source in low income population groups as well as the numerous informal
settlements that are dispersed across the EMM. This is significant during winter when
strong inversion conditions prevail over the Highveld resulting in poor dispersion conditions
i.e. the accumulation of air pollution levels in the first 100 to 300 m above ground level.
Studies in the Vaal Triangle have shown that the contribution of domestic coal combustion
can contribute 40 to 60% of the atmospheric pollution load during winter (EMM State of
the Environment 2004).
Coal (mostly bituminous), is the primary fuel produced and consumed in EMM. Production
and consumption of coal has serious effects on the environment, leading to air and water
pollution, whist also contributing to increasing concentrations of greenhouse gases in the
atmosphere.
7.4.5 Mining
Although gold mining is the primary mining activity within the EMM, other resources that
are mined include coal, silver, dolomite, clay, sand and rock. Most of the mining activities
occur in the Southern and Eastern SDRs. Although underground mining activities have a
negligible impact on air quality, surface mining activities certainly can have a significant
impact on air quality. Whilst dust is the main pollutant of concern, the emission of radon
gas is a concern at some sites where the old mine dumps are being reclaimed.
34
World Resources Institute, 1999.
35
EIA 2002
The generic Management Delivery Lifecycle depicted in Figure 26 below is common to all
businesses in the delivery of their Products or Services. This encapsulates the three key
management functional perspectives of
Strategic Planning (Strategy and Policy)
Tactical Planning & Coordination (Planning and Design)
Operational Delivery & Maintenance (Implementation, Operation and Maintenance).
“Cross-cutting” Critical Outcome Criteria influence the way functions are carried out in
order to bring about the desired outcomes in line with Strategic Objectives
Strategy Policy
Planning Design
Parameters,
Guidelines and Service Delivery Path
Objectives
Implement Operate Maintain
Changes
Budgets and Detailed Product
Implementation Plans
The desired outcomes, or strategic objectives, realised as a result of the delivery of the
product (or service) influence the way in which the various functions on the Service
Delivery Path are carried out. Monitoring and verification provides feedback along the
Service Delivery Path.
Extending this principle to EMM’s service delivery objectives, the following sections will deal
with highlighted energy issues in EMM with respect to a common Service Delivery
Framework.
8.2.1.1 Agriculture
The smallholdings in the Brakpan-Benoni-Springs area have been a source of agricultural
produce for the Gauteng market since the inception of industrial activity along the “reef”.
Such activity has been increasingly attenuated by crime and growing input costs and the
properties are now being employed for, inter alia, townhouse development.
8.2.1.2 Industry
Formal employment in Ekurhuleni has contracted in most years with marginally positive
changes only being recorded in 1994, 1995 and 2002. In 2003, manufacturing has again
been in recession following the strengthening of the rand, and large employment losses
have been reported.
The investment performance in the mid-1990s was due to a very small number of capital-
intensive sectors, mainly basic iron & steel, non-ferrous metals (such as aluminium) and
basic chemicals. Aside from these factors, investment levels have remained low.
The main feature of developments in the 1990s has been the continued better performance
of capital-intensive industries. In terms of output growth, the automotive manufacturing
sector has performed the strongest, although the sector has not recorded any net increase
in employment. After motor vehicles the best performing sectors are the heavy industries
of basic chemicals, basic iron & steel, and basic non-ferrous metals, none of which has
recorded significant job creation. The sectors in which Ekurhuleni is best represented, such
as metal products, other chemicals, plastics and machinery & equipment have tended to
perform less well36.
One indicator of the decline of heavy industry (east-west axis) is shown by the heavy fuel
oil consumption pattern (Figure 6).
8.2.1.3 Transportation
The situation is further influenced by the existing transportation facilities and growing
transportation needs. Transportation (trains and buses) backbones were originally laid out
on a east-west axis to service the older pattern of agricultural and heavy industries. The
new trend towards north-south high-tech industries is serviced mainly by private and taxi
transportation.
36
Manufacturing industry in Ekurhuleni: Analysis of recent performance and findings from firm survey.
Briefing Paper 9. Ekurhuleni Metropolitan Municipality – University of the Witwatersrand joint
programme of research on industrial development in Ekurhuleni J. Machaka and S. Roberts March
2004
RE/EE/DSM initiatives
DME planning to implement energy efficiency EMM will need capacity to supply the data – resources and specialisation will be essential. High
monitoring country-wide, and currently seeking to
DME is implementing several projects under the Capacity Building in Energy Efficiency and
develop the institutional framework and data collection
Renewable Energy project (CaBEERE), involving industrial energy management,
protocols.
implementation of norms and standards in energy efficiency and monitoring of targets in
Local manufacturers and industries should be made energy efficiency.
aware of industrial energy management initiatives and
availability of training programs
EMM should consider developing incentive programs
for higher consumption energy users to implement
EEDSM, e.g. through installation of solar water heaters.
EMM could incentivise through financing and National government is setting up and rolling out incentive programs Low
investment
General
Need for energy capacity building in EMM staff EMM are addressing through the SEED project High
Need for energy capacity building within EMM’s private Ensure that budgets align with priorities; energy is not necessarily considered a priority within High
sector industry and commerce. It is considered a very high priority in the mining sector, as electricity
typically represents about 20% of production costs.
EMM business were originally established around mines Land use and transportation planning implications, which will involve energy supply as well. Low
and railways (east-west axis) and were labour
intensive; now increasing trend towards high tech
businesses, with mode of transport changing to road
rather than rail, and moving north.
8.4.1 Conclusions
The most significant sector as far as energy use is concerned in EMM is the transport
sector, for which liquid fuels are the dominant energy carrier.
Of the total of 118 652 TJ of energy consumed in Ekurhuleni in 2003, 41% or 48 448 TJ
were consumed in the transport sector, 36% or 42 665 TJ were consumed by industry and
construction and 14% was consumed by households.
Liquid fuels supplied 49.1% or 52 587 TJ of the energy consumed, electricity provided
37.7% at 44 768 TJ and gas provided the bulk of the remainder of the energy supply with
10.1%.
Energy consumption within EMM municipal buildings is negligible in comparison with other
demand sectors.
There is a great deal of data for energy carriers, energy users, supply and demand in
Ekurhuleni. However, there are still significant discrepancies in the following areas:
Household data – number of total households in EMM, number of electricity clients
Eskom and EMM electricity data – correlation between energy and sales data
GIS mapping information for electricity is generally available at varying levels of detail at
the various Customer Care Centres, and no other energy information is available
disaggregated below the municipality or Johannesburg level.
8.4.2 Recommendations
EMM has already taken the most important step of engaging an Energy Specialist to
develop an integrated approach to energy in Ekurhuleni.
It is recommended that the Energy Strategy be developed using the Service Delivery
Framework as a guideline to establish:
Desired outcomes
Key performance indicators
Data collection requirements
Data collection protocols
Data provision and performance agreements
Monitoring framework for data collection
across the range of energy demand sectors and energy carriers. Critical focus areas for
data collection should be the transport and household demand sectors.
8.4.2.1 Electricity
The following initiatives are recommended with respect to electricity:
Independent audit of electricity information
Establishment of an automated energy balance, integrating information from the Venus
system
Further training for financial personnel to ensure adjustments to financial information
are correctly reflected in technical adjustments
Regular audits of the adjustment process, involving EMM Electricity personnel
8.4.2.3 Renewables