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 Ekurhuleni State of Energy Report, November 2004 i 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 Ekurhuleni State of Energy Report, November 2004 ii 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 Ekurhuleni State of Energy Report, November 2004 iii 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 Ekurhuleni State of Energy Report, November 2004 iv 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 Ekurhuleni State of Energy Report, November 2004 v LIST OF TABLES Table 1 EMM Customer Care Centres and Eskom Direct Supply ....................