by Andrew Etzinger, Eskom
Almost invariably, a crisis brings some benefits in its wake. With a single digit generation reserve, a system load factor almost 75% and annual demand growth nearing 5%, we are certainly facing a power supply challenge. However there are also a number of benefits arising from this situation that I wish to focus on.
Perhaps the first of such benefits is that when things look bad, people actually sit up and take notice. Public awareness of this situation has never been greater than now and we must continue to sustain such awareness. Greater understanding of the impacts of our consumption behaviour should lead to more responsible energy use. The hard reality is that developed and developing regions of the world simply cannot continue using energy the way we have been doing during the last 40 years. There have to be some fundamental changes both here in South Africa and elsewhere.
South Africa is not alone in facing energy shortages. As climate change and capacity shortages top global political agendas virtually the entire world including China, Europe and the United States are scrabbling to resurrect energy efficiency and conservation measures. The prime minister of Australia, John Howard, has set a timetable for banning incandescent light bulbs. The toughest target appears to be Beijing’s 20% saving required by 2010 where energy police have even been introduced to ‘encourage’ citizens to comply with power usage rules.
Another benefit is that it also spotlights the nature of the problem. With electricity, yes more supply side capacity and power stations are needed and are rapidly being built. But this is only one part of a larger more complex supply and demand situation that needs urgent attention here. Irrespective of the recent supply side problems that have arisen, South Africa simply could not have continued using energy as though there is no tomorrow with a widespread disregard for the broader impacts of various energy use.
For every MWh of electricity we produce it consumes 0,53 tons of coal and produces 0,96 tons of carbon dioxide (CO2) that is released into the atmosphere and in South Africa we rely on coal for around 75% of our electricity. Other energies also have high environmental costs particularly many liquid fuels. Here again, South Africa is facing supply shortages and is now importing millions of litres of fuel every year to keep us on the move.
Energy shortages also arise because we have enjoyed sustained economic growth in the last decade. Had our economic growth remained in the doldrums we would still have plenty of surplus capacity. A reliable supply of electricity is a necessary enabler, with others, for this growth that is also of such importance in alleviating unemployment and poverty in our country. It is therefore incumbent on us all to safeguard our existing electricity resources, use them sparingly and properly, while responsibly growing them in the future.
South Africa enjoys some of the lowest cost electricity in the world and this has led to certain distortions in energy usage here. The widespread use of electricity for certain thermal applications for example when there are better more efficient alternatives must be increasingly questioned. Electricity is a high quality premium energy carrier at the top of the energy hierarchy that will need to be used with increasing wisdom and precision.
For the next six years, working together, we must achieve a saving target of no less that 3000 MW. This pinpoints another benefit namely the wonderful response there has been from the South African public, linked to greater awareness, in playing a role in helping to make such savings. Just one example among many of this positive collaboration, has been the Power Alert on television that has done South Africa proud – it has won prestigious international awards in both marketing and engineering fields and showed that when the chips are down South Africans come through.
Eskom continues with the accelerated energy efficiency drive that targets residential, commercial, industrial and agricultural sectors. While current projects and Energy Service Companies (ESCO’s) will make a major contribution to the target, they alone will not be enough and furthermore, energy saving measures must be sustainable. It is here that another benefit arises, namely a huge opportunity for innovation and entrepreneurial creativity in the energy efficiency industry. Eskom has created fast track evaluation processes and various types of financial support for such innovation and energy saving proposals. For those with a passion for energy efficiency, an environmental conscience and entrepreneurial spirit, there is now a unique window of opportunity, so the time is now! We are waiting to hear from you.
The final benefit has been the unique opportunity to ‘stress test’ the effectiveness of our national response to power shortages. Well, while there is still much to do, we have come through it well to date, have plans in place, gained invaluable knowledge and are busy creating the necessary capabilities to propel South Africa into being a potential world leader in wise energy utilization in the years to come.
Contact Andrew Etzinger, Eskom, Tel 011 800-5316, andrew.etzinger@eskom.co.za
