“South Africa presides over thriving primary resource extraction, secondary processing or manufacturing as well as tertiary service energy resource industries, it is a major exporter of steam coal (64 Mt/annum), also 12% of the world’s refined uranium ore (1000t/annum), it generates electricity – the national electricity grid extending well beyond its borders whilst at the same time, many amongst poorer rural and even urban commodities locally do not yet enjoy access to electricity. Its seas yield passage to bulk carriers shipping crude oil from suppliers in the Middle East to ever eager consumers in the west. There are growing interests in piping natural gas from the fields in Mozambique and Namibia to processing plants in South Africa. What then are the factors that threaten the precarious balance regionally of the energy resource industry, trade in energy resources and services or mounting tensions over disparities in the access to energy services in our corner of the globe? A paper delivered by Lieutenant Colonel Etienne F. van Blerk of the Department of Defence South Africa to the National Energy Efficiency Conference of the Department of Minerals and Energy at the Volkswagen Marketing Conference Centre, Midrand on 17 July 2001.
Our country’s economy is largely based on minerals extraction and processing which is by nature very energy-intensive. This energy-intensive economy largely relies on indigenous coal reserves for its driving force. South Africa uses some 40% of the total electricity consumed within the continent. In 2000 the total primary energy supply to the nation was nearly 4,300 Petajoules, of which 79% was attributable to coal.
Whilst our historically low electricity price has contributed towards a competitive position, it has also meant that there has been little incentive to save electricity.
The industrial and mining sectors are the heaviest users of energy, accounting for more than two-thirds of our national electricity usage. The potential for the largest savings is great here as old technologies can be replaced by new and best energy management practices can be employed. The transport sector uses three quarters of South Africa’s petroleum products becoming an obvious target for the implementation of energy efficiency. Some of the key features of the approach adopted by government are; promoting energy efficient vehicles with low carbon emissions, building a public transport infrastructure and a travel demand management system amongst many others.
