Energy Indaba 2010 - October 09 Newsletter

Africa’s sustainable development relies heavily on energy efficient solutions; and it is commonly agreed that energy efficiency is an inescapable part of those solutions.

Energy efficiency improvements can result in cost-effective ways and huge opportunities that positively impact on the continent’s socio-economic development and environmental sustainability. For that reason it is increasingly important that there is strong leadership within Africa’s governments and industry’s and that proper strategies, well-designed policy measures, adapted regulations, good practices, sound technologies and suitable financing mechanisms come together to enhance energy efficiency on the continent.

Energy efficiency improvements should rank high on the continent’s energy priorities, because it has proved to be a cost-effective tool contributing effectively to meeting the energy needs in an efficient and sustainable manner and to realizing substantial economies and preserving resources, says Dr. Latsoucabé Fall, Regional Manager of the Africa Region at the World Energy Council. He added that particularly, for the many African countries experiencing severe power shortfalls and recurrent blackouts, energy-saving and demand side management measures in the electricity sector would bring a timely and opportune relief through a significant reduction in electricity demand during peak periods. Moreover, those measures can lead the way towards a more efficient and decarbonized economy.

Fall also points out that although there are specific energy efficiency applications and good experiences & practices in Africa, they are generally spread amongst a few countries; and rarely does a comprehensive “package of measures” apply to one single country in a coherent and rational manner (Tunisia and Egypt are the exceptions). Whereas the implementation of a package of complementary measures, adapted to national circumstances of each country, would have greater impacts and produce better results.

In addition, within a country, efforts on energy efficiency should be spread in all sectors of the economy (and not only limited to specific applications), while targeting a great amount of energy consumption and/or a large number of consumers.
Country evaluation of implemented policy measures and their monitoring, as well as cross-country comparison of measures (benchmarking) should be highly encouraged and undertaken by the relevant institutions.

He states that Strengthening policy measures, realizing required investments and deploying new energy-efficient technologies are essential for further energy efficiency and conservation improvement on a wide scale.

Fall also believes that Africa needs an energy efficient strategy that focuses on:

Establishing legal and regulatory frameworks (with clear and realistic objectives and quantitative targets for energy efficient improvements)
Implementing the appropriate institutions and policy measures (including suitable regulations)
Identifying the potential of energy efficiency improvements and the related opportunities
Putting in place or developing the capabilities (human, capital, infrastructure, facilities etc.)
Establishing economic & fiscal incentives and promoting innovative financing schemes to stimulate energy efficiency & conservation investments and projects implementation
Developing, deploying and disseminating proper technologies; and promoting technology transfer and leapfrogging
Raising public awareness and sensitizing policy decision makers on energy efficiency issues, stakes and opportunities, as well as promoting education
Monitoring and evaluating on a regular basis the effectiveness of the implemented energy efficiency projects and programmes to ensure that things happen in a sustainable way

Nevertheless, Dr. Fall acknowledges that there are several hurdles standing in the way of increased penetration of energy efficient tools, appliances and equipment in Africa. The passive attitude of most African governments to set up and foster national energy efficiency and conservation programmes is arguably the greatest challenge. Not forgetting appropriate policy measures -- including incentives for substantial energy efficiency improvements and financing for energy efficient projects and programmes.

These challenges according to Dr. Fall are the results of low public and political awareness concerning the benefits of implementing energy efficiency measures and the lack of dedicated funding sources and energy-efficient technologies; and in a majority of cases absence of good practices.

Moreover, Dr. Fall recognises that in Africa, there is a lack of appropriate human, industrial and manufacturing capabilities to facilitate viable energy efficient projects and programmes. This of course, is exacerbated by low private sector involvement in energy efficiency businesses, unsustainable energy tariffs in some countries and the fact that Africa’s low income households -- which are in the majority – cannot deal with the high upfront costs of energy efficient appliances and equipment.

Also needing urgent attention, according to Dr. Fall, is Africa’s high energy prices, the huge and inefficient use of biomass fuels, the low level of access to modern energy services in rural areas and the related energy poverty, the vulnerability of the continent and poor communities to climate change and the lack of required financing resources in order to adequately adapt.

However, while it’s clear that Africa has many challenges to overcome there are equally as many opportunities that exist in its energy sector. And Africa has the potential to progress from its current traditional energy consumption patterns to more sustainable energy options.

In the same context, a Study done by the International Energy Agency (IEA) on energy efficiency in the power sector of some selected countries “Saving Electricity in a Harry – 2011”, presented the case study of South Africa and the country’s energy efficiency measures to mitigate the negative impacts of electricity shortfalls by developing and implementing energy-saving programmes. Indeed, in response to the acute electricity crisis which struck the country in 2008 the SA Department of Energy, Eskom and NERSA implemented a series of energy efficiency policy measures and related actions across the economy of South Africa with focus on the industrial, mining, residential and commercial sectors.

According to the IEA, the Study presents “guidelines for managing electricity demand to cope with power shortfalls, particularly in times of thin spare generating capacity”.

The Study has been launched by Energy Minister Dipuo Peters and IEA Executive Director Nobuo Tanaka on 4 July 2011 in Johannesburg. And according to Minister Peters and Mr. Tanaka says, it will help the country deal with its electricity supply as well as with the problem of climate change.