Integrated Analysis Energy Baseline Report: SI UNDP Cape Town Project v: Final Draft 18-Jul-07, p. ii
This report has five areas of focus.
1. A listing of all the existing legislation, regulatory and institutional bodies, policies, strategiesand studies relating to energy and future energy planning.
The South African energy market is highly regulated. There are several Acts dealing with energyissues, which are accompanied by relevant government bodies to uphold them. The three majorenergy sources in South Africa
electricity, petrol and diesel - are regulated, along with paraffin whichis regulated and VAT free as a poverty alleviation measure. Nuclear energy and fuel and gas pipelinesare also regulated.Both the City of Cape Town and the Western Cape provincial government have strategies in place tomove the city and province onto a more sustainable path. Some studies have been made to determinethe future of energy use in Cape Town and the Western Cape, and scenarios showing the benefits ofenergy efficiency and renewable energy interventions have been developed.Athough there are no tax incentives for energy efficiency and renewable energy, energy incentiveoptions such as subsidy schemes from Eskom and the Department of Minerals and Energy, andcarbon credits are available.
2. A baseline energy analysis of Cape Town, determining as accurately as possible the currentstatus quo of energy consumption in the City, and associated greenhouse gas emissions.
The results of this study showed that electricity (29%), petrol (28%) and diesel (18%) are
chief energy sources, with all remaining sources
paraffin (3%), jet fuel (9%), LPG (2%), HFO (3%),coal (7%) and wood (1%) making up the last 25%. Due to the inefficiency of coal power stations,electricity produces 59% of all the CO2 generated from Cape Towns energy use. The analysis alsolooked at current user needs per sector, and determined their consumption figures in asdisaggregated a form as possible.
3. Determining what current power generation (fossil, nuclear and renewable) and energyefficiency technologies are available, and what their potential impact could be on Cape Town inthe future.
The Western Cape has the potential to produce nearly 7500MW of renewable energy, the majoritybeing wind, solar thermal, pumped storage and ocean generated. Energy efficiency measures such as