http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.10Change: -0.11
R/$ = 10.74Change: -0.09
Au 1265.74 $/ozChange: -21.44
Pt 1409.00 $/ozChange: -15.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 23, 2012

SA’s industrial energy intensity falls, but still lags world average

Back
Unido’s director of research and statistics Augusto Alcorta on the opportunity to raise global energy efficiency further and on South Africa's improved performance. Camera Work: Nicholas Boyd. Editing: Darlene Creamer.
Africa|Gas|Industrial|Pipes|Projects|Africa|South Africa|USD|Energy|Energy Efficiency|Energy Efficiency Initiatives|Energy Intensity|Greenhouse-gas Emissions|Industrial Energy Intensity|Manufacturing|Manufacturing Value|Oil Equivalent|Pipes|Environmental|Augusto Alcorta|Insulation
Africa|Industrial|Pipes|Projects|Africa|||Energy|Pipes|Environmental||Insulation
africa-company|gas-company|industrial|pipes|projects|africa|south-africa|usd|energy|energy-efficiency|energy-efficiency-initiatives|energy-intensity|greenhousegas-emissions|industrial-energy-intensity|manufacturing|manufacturing-value|oil-equivalent|pipes-industry-term|environmental|augusto-alcorta|insulation
© Reuse this



The energy intensity of South African industry – measured by the tons of oil equivalent (toe) used to produce $1 000, or a unit, of manufacturing value added (MVA) – declined by a material 33% between 1990 and 2008, a recently published United Nations Industrial Development Organisation (Unido) report shows.

In fact, the Industrial Development Report 2011 shows that South Africa’s industrial energy intensity fell from 1.2 toe for every unit of MVA in 1990, to 0.8 toe for a unit of MVA by 2008. These saving were better than those achieved in the rest of the Southern African region and similar to levels realised by countries with comparable income levels.

But in an address to a South African audience, Unido’s director of research and statistics Augusto Alcorta stressed that a significant gap remained between South Africa’s industrial energy intensity and the global average, which had declined to around 0.35 toe for a unit of MVA. In other words, South Africa’s industrial energy intensity remained more than double the world average

Therefore, more policy and firm-level efforts were required for the country to begin fully reaping the environmental and economic advantages associated with pursuing energy efficiency on a large scale.

Globally, industry accounts for 25% of all greenhouse-gas emissions and energy efficiency initiatives could play a significant role in reducing emissions.

But the economic spinoffs were equally compelling, particularly in a context where industry was spending $1-trillion a year on energy inputs.

A Unido survey of 119 energy efficiency projects in developing countries discovered an average payback period of 23 months and an average rate of return of 40% for projects of a five-year duration. In addition, the smaller, less complex projects, such as the insulation of pipes and the use of natural light and ventilation, yielded the largest rates of return.

“What really caught our attention was the high profitability of low investment projects – the low-hanging fruit – which indicated that energy efficiency is something that is worth exploring for small and medium enterprises,” Alcorta explained.

Unido estimates that there is still potential globally to save a further $230-billion through investing in energy efficiency, $165-billion of which could be saved in developing countries.

However, serious impediments remained to large-scale adoption, despite rising proof of environmental, economic and social dividends. Many firms lacked sufficient information, which made them reticent to invest in energy efficient solutions, while government policies and incentives were often inadequate to support adoption.

Policymakers, Unido asserted, should formulate a coordinated energy strategy, supported by monitoring and implementations mechanisms, that established targets, benchmarks and standards, including for sector-specific programmes.

Key policy approaches include laws and regulations, negotiated agreements, information-based instruments, new technology and innovation support, market-based instruments and financial facilities, the report stated.

Financial facilities, such as loans, guarantees, revolving funds and venture capital funds, were also required to increase the availability of capital and lower the cost and risks associated with energy efficiency programmes.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Updated 4 hours ago A consortium led by two Kenyan firms won a government tender to build a 1 000-MW, coal-fired power plant, company officials said on Tuesday, part of moves to satisfy rising demand for energy in East Africa's biggest economy. Kenya suffers from regular blackouts due...
Updated 5 hours ago Regional interconnections and oil discoveries are expected to drive the transmission and distribution industry’s (T&D’s) growth in East Africa, the second-fastest growing region in Africa, global growth consulting firm Frost & Sullivan said on Tuesday. The...
Updated 6 hours ago Small, 100 MW nuclear power plants could be the answer to Africa’s electricity generation challenges, Nuclear Africa CEO Dr Kelvin Kemm said on Tuesday, stating that he believed in 100 years’ time, the world would mostly be run on nuclear power. “I believe...
More
 
 
Latest News
Updated 4 hours ago Despite various challenges related to the extraction of shale oil and gas, as countries grow accustomed to the idea, the use of shale as a form of energy will be more widely pursued, international oil and gas market analyst Michael Lynch said on Tuesday. Speaking at...
Updated 4 hours ago A consortium led by two Kenyan firms won a government tender to build a 1 000-MW, coal-fired power plant, company officials said on Tuesday, part of moves to satisfy rising demand for energy in East Africa's biggest economy. Kenya suffers from regular blackouts due...
TNPA CEO Tau Morwe
Updated 4 hours ago The announcement of the successful bidder for the construction of Durban’s long-awaited passenger cruise terminal was imminent, Transnet National Ports Authority (TNPA) CEO Tau Morwe told delegates at the African Ports Evolution Conference in Durban on Tuesday. ...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks