EKURHULENI METROPOLITAN MUNICIPALITY STATE OF ENERGY REPORT TABLE OF CONTENTS
EXECUTIVE SUMMARY
LIST OF TABLES vi
LIST OF FIGURES viii
Abbreviations x
1. Background and introduction 1 1.1 Project objective 1 1.2 Structure of report 1 1.3 Introduction to EMM 1 1.4 Electricity network in EMM (GIS mapping) 5 1.5 Energy in South Africa 6 1.6 Methodology used 6
2. Legislation and regulation 8 2.1 Electricity legislation 8 2.1.1 General 8 2.1.2 Service level issues 8 2.2 National legislation and policy pertaining to energy 8 2.2.1 White Paper on Energy Policy (1998) and Renewable Energy (2003) 8 2.2.2 EDI Restructuring Bill (April 2003) 8 2.2.3 DME Draft Energy Efficiency Strategy (April 2004) 9 2.2.4 NER Regulatory Policy on Energy Efficiency and Demand Side Management (EEDSM) for South African Electricity Industry (May 2004) 9 2.3 Other relevant national legislation 9 2.3.1 The Constitution of the Republic of South Africa Act No. 108 of 1996 9 2.3.2 Legislation on municipal governance 10 2.3.2.1 Municipal Systems Act 10 2.3.2.2 Municipal Structures Act 10 2.3.2.3 Municipal Finance Management Act 10 2.3.3 National Environment Management Act, 107 of 1998 10 2.3.4 Environment Conservation Act of 1989 10 2.3.5 Agriculture White Paper (1995) 10 2.4 International legislation 10 2.4.1 United Nations Framework Convention on Climate Change (UNFCCC) 10 2.5 Provincial and municipal legislation 11
3. Data acquisition 12
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3.1 Data sources 12 3.2 Supply side data 12 3.2.1 Liquid fuel 12 3.2.2 Electricity 13 3.2.3 Pipeline gas 13 3.2.4 Renewable energy and energy efficiency 13 3.3 Demand side data 13 3.3.1 Energy carriers 13 3.3.1.1 Liquid fuels 13 3.3.1.2 Pipeline gas 13 3.3.1.3 Electricity 13 3.3.1.4 Coal 14 3.3.1.5 Biomass 14 3.3.2 Energy users 14 3.3.2.1 Households 14 3.3.2.2 Industry and Construction 16 3.3.2.3 Mining and Quarrying 16 3.3.2.4 Commerce 16 3.3.2.5 Local Government 16 3.3.2.6 Agriculture 16 3.3.2.7 Transport 16 3.4 Data Quality, Availability and Validity 17 3.5 Study Constraints 20 3.5.1 Liquid Fuels 20 3.5.2 Electricity 20 3.5.3 Environment and Air Quality 20
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
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5.3.1 Household profile 35 5.3.1.1 Discrepancy between national census and EMM statistics 36 5.3.1.2 Domestic energy consumption in EMM 37 5.3.1.3 Low-income household energy use 38 5.3.1.4 State of Electrification 38 5.3.1.5 Key demographic characteristics of Ekurhuleni 40 5.3.1.6 Household Energy Use 43 5.3.1.7 Energy user profile 44 5.3.1.8 Energy costs 46 5.3.1.9 Best mix of energy and appliances 46 5.3.1.10 Policies and programmes 47 5.3.1.11 Trends and developments 47 5.3.1.12 Major gaps, constraints and issues 47 5.3.2 Industry and construction 47 5.3.3 Mining and quarrying 48 5.3.4 Commerce 49 5.3.5 Local government 49 5.3.6 Agriculture 49 5.3.7 Transport sector 49 5.3.7.1 Historical spatial planning 49 5.3.7.2 Road network 50 5.3.7.3 Rail transport 50 5.3.7.4 Bus transport 53 5.3.7.5 Mini-bus taxi service operations 54 5.3.7.6 Road based private transport 54 5.3.7.7 Johannesburg International Airport 55 5.3.7.8 Energy use 55 5.3.7.9 Current developments and plans 55 5.3.7.10 Energy efficiency in transport 57 5.3.7.11 Gaps, constraints and issues 57 5.4 Constraints and issues 57
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
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6.2.2 Piped gas in EMM 65 6.2.3 Policy and regulatory context 66 6.2.4 Pricing 66 6.2.5 Trends and developments 66 6.3 Electricity 67 5.3.1 Supply purchases 67 6.3.1 Policy and regulatory context 67 6.3.2 Tariffs 67 6.3.3 Income profile 69 6.3.3.1 Consumption and billing profile by Customer Care Centres (CCCs) 69 6.3.4 Trends and Developments 70 6.3.4.1 Formation of the REDs 70 6.3.4.2 Energy Efficiency and Demand Side Management (DSM)70 6.3.4.3 Electricity projects planned 71 6.3.4.4 Local/independent generation 71 6.3.4.5 Meter verification 71 6.3.4.6 Illegal connections 71 6.3.4.7 Vandalism 71 6.3.5 Gaps, constraints and issues 73 6.4 Coal 74 6.4.1 Policy and regulatory context 74 6.5 Renewable energy 74 6.5.1 Traditional biomass energy 75 6.5.2 Woodfuel 75 6.5.3 Modern renewable energy 75 6.5.3.1 Solar power 75 6.5.3.2 Biogas energy 76 6.5.3.3 Employment Potential for Renewable Energy 79 6.5.4 Policy imperatives for renewables 80 6.5.4.1 Focus of the Renewable Energy White Paper 80 6.5.4.2 Draft renewable energy strategy 81 6.5.5 Information and data gaps 81 6.5.6 Pricing 82 6.5.7 Trends and developments 82 6.6 Energy Efficiency in EMM 82 6.6.1 Overview of the energy efficiency objectives 82 6.6.1.1 Targets 83 6.6.2 Energy efficiency programmes in EMM 83 6.6.2.1 Efficient Compact Fluorescent Lamp (CFL) 83 6.6.2.2 Residential load management 84 6.6.3 EE business in EMM 84 6.6.4 Information and data gaps 84 6.6.5 Future trends in REEES 84
7. ENVIRONMENTAL/HEALTH ISSUES RELATING TO ENERGY IN EMM 86 7.1 Introduction 86 7.1.1 Emissions 86 7.1.2 Potential impacts of energy on environmental change 87
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7.2 Electricity related environmental and health issues 87 7.2.1 PCBs 87 7.2.1.1 Recommendations 87 7.2.2 Electromagnetic fields 87 7.2.2.1 International Agency for Research on Cancer (IARC) 88 7.2.2.2 EPRI/California Department of Health Services/US Dept of Energy 88 7.2.2.3 World Health Organization 88 7.2.2.4 CIGRÉ 88 7.2.2.5 Recommendations 89 7.3 Pressures on air quality 89 7.3.1 Air quality impacts 89 7.4 Sources of emissions within EMM 90 7.4.1 Industry – scheduled processes (including power generation) 91 7.4.2 Industry – non scheduled processes, light industry 92 7.4.3 Transport 92 7.4.4 Households 93 7.4.5 Mining 93 7.4.6 Waste sites 94 7.5 Human health 94 7.6 Information and data gaps 94 7.6.1 International trends in data requirements 94 7.7 Issues relating to energy and EMM’s environment 95
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
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LIST OF TABLES
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, 200440 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
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Table 36 Sectoral Demand for Illuminating Paraffin in Ekurhuleni ...... 61 Table 37 Prices for liquid fuel products, 2003...... 63 Table 38 Price build up from supply to end-use...... 64 Table 39 Supply of Pipeline Gas in 2003 ...... 66 Table 40 Price of Sasol Gas in 2003...... 66 Table 41 Electricity purchases in 2003 ...... 67 Table 42 Summary of EMM electricity tariffs in 2004, excluding VAT...... 68 Table 43 Billing profile...... 69 Table 44 Electricity sales per municipality, 2003...... 70 Table 45 Solid waste quantities handled at EMM landfills from June 2002 to June 2003 (EMM 2003) ...... 77 Table 46 Possible LFG projects at the EMM (Pieterse 2003)...... 78 Table 47 South Africa’s energy efficiency targets...... 83 Table 48 Technical comparison between the 60-Watt incandescent lamp and the 15-Watt CFL ...... 84 Table 49 Summary of estimated contributions to air emissions by source type in the Southern SDR ...... 91 Table 50 Estimated emissions of priority pollutants emitted by scheduled processes ...... 92 Table 51 Identification and prioritisation of energy issues in EMM...... 99
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LIST OF FIGURES
Figure 1 Municipalities in Ekurhuleni Metropolitan Municipality...... 3 Figure 2 Energy flow from primary energy supply to final use...... 6 Figure 3 Distribution of household incomes in Ekurhuleni (2001) ...... 15 Figure 4 Correlation between household income and lighting energy source ...15 Figure 5 Consumption of Liquid Fuels in South Africa 1992-2001 ...... 26 Figure 6 Heavy furnace oil consumption in Ekurhuleni 1994-2003 ...... 27 Figure 7 Pattern of Piped Gas Usage in Ekurhuleni...... 28 Figure 8 Residential credit and prepaid meter installations in EMM...... 32 Figure 9 Trend in power connections in major municipalities ...... 33 Figure 10 Racial Distribution in Ekurhuleni, No. of Persons ...... 40 Figure 11 Age distribution in gender categories in the Ekurhuleni area...... 41 Figure 12 Income distribution in the Ekurhuleni area ...... 42 Figure 13 Income distribution in Ward 39 ...... 42 Figure 14 Income distribution in Ward 76 ...... 43 Figure 15 Types of housing in the Ekurhuleni area ...... 43 Figure 16 Classification of fuel usage for cooking by race...... 44 Figure 17 Classification of fuels for heating by race ...... 45 Figure 18 Classification of fuels for lighting by race ...... 45 Figure 19 Consumption of power paraffin in Ekurhuleni ...... 49 Figure 20 Scheme of the EMM transport model ...... 56 Figure 21 Industry structuring and market share of LPG ...... 58 Figure 22 A typical complex paraffin distribution chain...... 60 Figure 23 Sectoral Distribution of LPG in Ekurhuleni...... 62 Figure 24 Composition of the Retail Price of Petrol and the Wholesale Price for Diesel and IP in Gauteng for the period 01/09/2004 30/09/2004 ...... 63 Figure 25 Potential in different renewable energy technologies (RETs)...... 80 Figure 26 Service Delivery Framework ...... 96
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LIST OF PHOTOS
1 Effects of vandalism at the Van Eck substation in Brakpan Customer Care Centre
2 Closeup of vandalism at Van Eck substation (11kV cable was stolen)
3 Tragic consequences of illegal access to electricity lines
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ABBREVIATIONS DME Department of Minerals and Energy DSM Demand side management EMM Ekurhuleni Metropolitan Municipality GDP Gross domestic product GGP Gross geographic product IDP Integrated development plan IEA International Energy Agency IP Illuminating paraffin IPP Independent Power Producer KMC Kyalami Metropolitan Council LDV Light delivery vehicle LPG Liquid petroleum gas NER National Electricity Regulator RE Renewable Energy EE Electrical Energy RED Regional Electricity Distributor SARCC South African Rail Commuter Corporation SUV Sports utility vehicle
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EXECUTIVE SUMMARY
Ekurhuleni State of Energy Report, November 2004 ES-1
1. BACKGROUND AND INTRODUCTION
1.1 Project objective This Report has been prepared at the request of the Ekurhuleni Metropolitan Municipality (EMM), in preparation for the development of an Energy Strategy within the municipality. The aim of the project is to provide a status report on the use of energy in EMM, which includes an assessment of the type of data available relating to energy supply and demand by energy carrier and by energy user.
1.2 Structure of report
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.
1.3 Introduction to EMM The Ekurhuleni Metropolitan Municipality (EMM) was formed in 2000 and is the fourth largest municipality in South Africa. Ekurhuleni is situated in the Gauteng province to the east of Johannesburg and south of Tshwane. It used to be known as the East Rand and consisted of of nine separate municipalities. EMM has united the eleven previous councils into one local government structure to meet the needs of the community. These municipalities were: