CITY OF TSHWANE METROPOLITAN MUNICIPALITY

DEVELOPMENT OF THE TSHWANE SUSTAINABLE ENERGY AND CLIMATE CHANGE

STRATEGY

EXECUTIVE SUMMARY

1. BACKGROUND

The City of Tshwane Metropolitan Municipality (CTMM) has participated in the Sustainable Energy for Environment and Development (SEED) programme since August 2003. The SEED programme is a product of Sustainable Energy Africa (SEA), a non-governmental organisation (NGO) based in Cape Town. The first Memorandum of Agreement (MoA) between CoT and SEA was signed in October 2003. The Municipality's SEED programme aims at promoting the integration of sustainable energy and environmental approaches and practices in all operations and businesses of Tshwane. The State of Energy Report (SoER) is based on data collected during 2005 from a broad range of stakeholders, including a number of surveyed households. The report was developed to provide baseline data for a sustainable energy and climate change strategy to be rolled out in conjunction with the CTMM's Air Quality Management Plan. The report provides information on energy use (by energy carrier and user) and on greenhouse gas emissions.

1.1 SEED IMPLEMENTATION IN TSHWANE

The CTMM participated in the SEED programme through a structure called Sustainable Energy for Tshwane (SET) Committee. The SET Committee consists of representatives from departments and divisions in the Municipality, as agreed in a workshop of stakeholders held on 18 March 2004. The activities of the SET Committee are based on the SET Implementation Plan and the Cape Town Declaration, which were adopted as working documents by the Mayoral Committee on 20 January 2004. The Cape Town Declaration adopted by the cities that attended the Cities’ Energy Strategies Conference which was held in Cape Town in November 2003 were adopted as follows: - □ diversify energy supply and increase renewable and cleaner energy sources

by 10% by 2020; □ reduce energy consumption in all municipal operations by at least 20% in

2005; □ implement green procurement policies based on energy efficiency principles; □ pass legislation requiring solar water heaters in all new middle- to high-

income housing in 2006; □ insulate ceilings in new low-cost housing (to be introduced by 2005 and

retrofitted by 2007); □ enforce bus lanes and introduce bicycle lanes on at least 20% of roads by

2010; and □ have cities commit themselves to developing an integrated energy strategy

by 2006. The CTMM has committed to the following additional goals, namely to –

□ provide sustainable energy that has health benefits, reduced carbon dioxide emissions and so ensures clean air;

□ ensure energy efficiency in municipal buildings, and in the industrial and commercial, transport and residential sectors;

□ promote energy that supports economic competitiveness and increases employment; and

□ promote general awareness among community members about renewable energy and energy efficiency.

These goals are in line with the following key national policies and legislation: □ The Constitution □ The Energy Bill □ The Air Quality Act □ The National Strategy on Renewable Energy □ The National Strategy on Energy Efficiency □ The National Climate Change Response Strategy

2. PROFILE OF TSHWANE The municipal area has the following profile: □ It covers an area of 2 198 km2, and is divided into 76 wards. □ There are 620 900 households (2005 estimate). □ The population is 2 193 596 (2004 census data). □ According to the 2001 census, 33% of households are located in informal

areas. □ Unemployment is estimated at 18.9% (2002) □ 33% of households were estimated to be informal (2001 census data) □ land use

o Central and North: agricultural o East and West: legacy of apartheid planning o Zone of choice: low-density formal housing o South: mature infrastructure

□ The North is a strategic focal point for services

o Relatively underdeveloped and geomorphologically separated from the South

o 68% of households have access to electricity grid (2001)

3. ENERGY ISSUES

The issues related to energy are discussed below for each of the following:

□ Transport □ Industry and commerce □ Households □ Electricity generation and distribution

□ Other municipal services □ Renewable Energy (RE) and Energy Efficiency (EE)

3.1 Transport sector

ISSUE POTENTIAL SUPPORT MEASURES/INITIATIVES

The most energy intensive sector in Tshwane is the transport sector.

The CTMM's Integrated Transport Plan does not yet address energy issues.

The N1, N14 and R21 highways were identified as the most significant corridors for vehicle-generated emissions, including greenhouse gas emissions.

National legislation banning the use of leaded fuel, the introduction of low-sulphur diesel and bio fuel research along with rising fuel costs will drive cleaner fuel use.

Few alternatives to fossil-fuel burning vehicles are available to the city's population, although improvements in the refining process are resulting in more environmentally-friendly, reduced-emissions diesel.

The CTMM's Transport Division is studying innovative solutions for implementation before the 2010 FIFA World Cup Tournament.

There is already significant congestion on the city's roads, and it is expected to increase further over the next five years. This is exacerbated by the prevalence of single occupancy vehicles and the lack of reliable, safe public transport.

The rationalisation of the Pretoria City Transport bus service will potentially attract more passengers, reducing the number of single occupancy vehicles on the roads.

The city's spatial legacy has resulted in low-density residential areas, making public transport inefficient.

Spatial and transportation planning should be integrated.

3.2 Industry and commerce

ISSUE POTENTIAL SUPPORT MEASURES/INITIATIVES

Industry contributes to undesirable emissions in the city.

Large industries are aware of greenhouse gas emissions and of increasing supply options. Many industries have signed the National Business Initiative's Energy Efficiency Accord with the Department of Minerals and Energy (DME). Several companies in the city have initiated projects to reduce greenhouse gas emissions.

The are no emissions standards for industrial fossil fuel –fired generators in Tshwane

The DME has commissioned studies in Industrial Energy Management and is working with Standards South Africa (StanSA) to develop energy efficiency standards and codes of practice for – □ Fossil-fuel-fired, non-utility steam-raising boilers; □ AC motors; □ insulated pipe systems. The DME is also moving towards implementing a data collection system to support the Energy Efficiency Accord and the targets of the national strategy.

There is significant funding available through Eskom's Demand Side Management programme but this has not been fully utilised in Tshwane to realise energy savings.

The Air Quality Management Plan addresses the licensing and monitoring of industrial polluters and the enforcement of the Air Quality Act.

3.3 Households

ISSUE POTENTIAL SUPPORT MEASURES/INITIATIVES

Housing design in the city does not yet take into account energy efficiency considerations.

The DME is collaborating with StanSA to finalise the standard for the energy-efficient design of naturally ventilated buildings (SANS 0283).

Energy services to low-income households have historically been inadequate, and many households in the north still use alternatives to electricity for heating, cooking and lighting owing to pricing and perceived affordability issues.

The DME is rolling out energy efficiency and renewable energy strategies.

Households affected by unemployment and poverty rely on less convenient and often unhealthy fuels, which also have a negative effect on the environment.

The DME is examining pricing liquid fuels to promote the use of liquefied petroleum gas (LPG) over illuminating paraffin (IP).

Coal use in urban areas results in indoor air pollution and adds to South Africa's net contribution to carbon dioxide (CO²) emissions, and therefore to climate change.

The restructuring of the electricity distribution industry into regional electricity distributors is expected to promote efficiency and harmonise tariffs nationally.

Most decisions on the choice of household energy carriers are made by women.

Eskom has done extensive research on domestic load for its NRS 034 report, which gives SA's first in-depth view on the effects of gender on domestic-load growth.

3.4 Electricity generation and distribution

ISSUE POTENTIAL SUPPORT MEASURES/INITIATIVES

100% of established areas in the city and about 65% of rural areas not served by Eskom have access to electricity.

The CTMM and Eskom are rolling out 22 000 new electricity connections per year. This is a very fast rate, compared to other municipalities in Gauteng.

Regional electricity distributors (REDs) are being established throughout the country.

The CTMM's Energy and Electricity Department is managing this process in collaboration with EDI Holdings.

The national capacity during peak demand periods is expected to be exhausted by 2007.

Eskom's Demand Site Management programme is aimed at shifting demand away from peak periods and reducing demand where possible.

The CTMM's power generation equipment is old and needs significant maintenance and refurbishment. Because of the constraints on national supply, the CTMM's power stations must now operate at a higher capacity. Furthermore, they are not currently financially viable.

Incorporate into the CTMM's asset management strategy and identify strategies for improving the power stations' financial viability.

There is an apparent geographic imbalance in electricity network maintenance. Areas that recently became electrified receive the bulk of maintenance funding, rather than the older areas, posing a threat to the reliability and financial sustainability of the network.

An integrated network master plan linked to the CTMM's Asset Management Strategy must be developed.

3.5 Other municipal services

ISSUE POTENTIAL SUPPORT MEASURES/INITIATIVES

There is scope and interest for the CTMM's municipal services to become more energy efficient.

The CTMM has already carried out a study on the energy consumption of its facilities.

The CTMM's vehicle fleet is not energy efficient.

The SET Committee has been coordinating the CTMM's sustainable energy activities to date.

The CTMM's water treatment and distribution system is not energy efficient.

The CTMM is already implementing measures which will improve energy service delivery and improve its contribution to the management of South Africa's environment.

The CTMM's solid waste treatment is not energy efficient.

Renewable energy, energy efficiency and demand-side management programmes are at the planning stage in the CTMM.

ISSUE POTENTIAL SUPPORT MEASURES/INITIATIVES

There are still too few renewable energy equipment suppliers in the city.

The Innovation Hub could be utilised to fast-track the development of small and medium enterprises manufacturing renewable equipment.

Renewable energy is not as affordable to the consumer as conventional energy.

Funding could be sourced from the DME's Renewable Energy Finance and Subsidy Office.

Solar heating of water in particular is significantly underutilised.

The Clean Development Mechanism could provide funding to reduce the front-end costs of domestic solar hot water.

The CTMM's landfill sites presently emit substantial methane which is not flared, and therefore present a significant odour and health risk.

The CTMM's landfill sites and solid waste management represent Clean Development Mechanism projects and additional energy generation opportunities.

3.6 Renewable and energy efficiency

4. DEMAND BY SECTOR AND CARRIER 4.1 Total demand

An energy balance was developed as the basis for determining energy use in Tshwane. An estimated total of 101 370 754 GJ was consumed in the 2004 calendar year1. Energy consumption in the Ekurhuleni municipal area and the City of Cape Town municipal area was at 118 652 287 GJ and 110 231 787 GJ respectively for 2003.

4.2 Total supply This demand is met by energy supplied through the following energy carriers: □ Liquid fuels □ Electricity □ Coal □ Pipeline gas □ Renewable energy The CoT presently owns two coal-fired, steam turbine power stations, with a combined capacity of 480 MW. The two stations, Rooiwal and Pretoria West, generate electricity to augment the supply from Eskom.

4.3 Top three demand sectors The top three energy demand sectors are transport, industry and construction, and households.

The transport sector represents the greatest demand for energy in Tshwane. Not surprisingly, liquid fuels, which satisfy the bulk of the demand in the transport sector, represent the largest supply of energy among the energy carriers. The demand by sector and supply by energy carrier are illustrated in figure 1 and 2 respectively. These figures show that the transport sector accounts for 36% of the energy demand, and consumes energy through diesel and petrol ("transport liquid fuels"), which represent 39% of the energy supply to the city.

1 This is roughly equivalent to 100 000 times the Rooiwal power station generating at its full 300 MW capacity for one hour. 1 kWh = 3, 6 MJ, and Rooiwal's installed capacity is 300 MW.

Figure 1: Energy demand by sector in Tshwane As shown in Figure 2, liquid fuels are the most significant source of supply at 44%, followed by electricity (28%) and coal (26%, representing that portion of coal use not related to electricity generation in Tshwane). Figure 2: Supply by energy carrier in Tshwane Demand for transport liquid fuels is split about 80/20 between petrol and diesel, as shown in Figure 3, which further confirms the dominance of transport as a demand sector.

Supply by Energy Carrier in Tshwane

Electricity 28%

Sasol gas2%

Stationary type liquid fuels

5%

Transport liquid fuels39%

Coal26%

Tshwane Energy Demand by Sector

Households19%

Transport36%

Agriculture1%Local

Government1%

Commerce9%

Mining and quarrying

0%

Industry, construction

34%

Figure 3: Demand for liquid fuels Figure 4 shows that the industry and construction sector primarily gets its energy from coal (58%), followed by electricity (35%). The household sector's demand is met principally by electricity (60%), followed by coal at 34%, as shown in Figure 5. Figure 4: Industry and construction demand by energy carrier

Industry/Construction Demand by Energy Carrier

Coal58%

Electricity 35%

Sasol gas5%Stationary

type liquid fuels0%

Transport liquid fuels

2%

-200,000400,000600,000800,000

1,000,0001,200,000

kl

House

holds

Indus

try/co

nstru

ction

Mining

and q

uarry

ing

Commerc

e

Loca

l Gov

ernmen

t

Agricu

lture

Trans

port

Demand Sector

Liquid Fuels Sales in Pretoria Magisterial District (2004)

Jet FuelLPGIPFurnace oilAvgasDieselPetrol

Tshwane Electricity Demand by Sector

Households41%

Industry, construction

42%

Mining and quarrying

0%

Commerce15%

Local Government

0%

Agriculture2%

Transport0%

Figure 5: Household demand by energy carrier

4.4 Electricity demand by sector The industry and construction and household sectors consume the most electricity in Tshwane, as shown in figure 6. The commercial sector consumes about 15%, while agriculture represents 2% of the demand. In Tshwane, the mining and quarrying sector does not consume much electricity as its activities do not require much electricity. Quarries in Tshwane engage in diesel-supplied crushing operations, with no energy-intensive smelting (typically requiring electricity). Local government's electricity consumption is minimal compared to other sectors as depicted in figure 6 below. However, based on a thorough review of its own energy use, the Municipality has an inventory of energy consumption for each of its line operations. This forms a valuable basis for the roll-out of future energy efficiency and demand-side management initiatives in local government, and for awareness building among staff and residents. Figure 6: Tshwane electricity demand by sector

4.5 Household energy use

Household Demand by Energy Carrier

Transport liquid fuels

0%

Stationary type liquid

fuels6%

Sasol gas0% Electricity

60%

Coal34%

The South African government decided that all poor households would have access to free basic services, including electricity. Free basic electricity of 50 kWh is available to all households in Tshwane, regardless of income level and regardless of whether the household is supplied through conventional (credit) metering or through a prepaid system. In some areas, the government, in collaboration with the CTMM, is examining ways to provide free basic energy through bottled gas to households which are not connected to the grid.

4.6 Household energy survey The survey was developed by the consulting team and administered by field workers trained by the team. These field workers administered the questionnaire on a house-to-house basis, and the results reflect responses given by householders. Table 1 shows the areas and numbers of households surveyed. Table 1: Scope of household energy survey In formal areas, 100% of households have access to electricity, and in informal areas about 65% of households are connected to the grid. Table 2 shows that most households have backup. It is presumed at this stage that backup is kept in case electricity is not available from the network, or the household has insufficient funds to purchase electricity for the whole month and makes decisions on which energy carrier to use for which household purpose on an ongoing basis.

Area Number of households surveyed

Soshanguve 1 372 Mamelodi 1 051 Hammanskraal 540 Atteridgeville 525 Centurion 360 Ga-Rankuwa 324 Total 4 172

Table 2: Households surveyed – alternatives to electricity

Alternative fuels used

Energy carrier Number % of total

households Purpose

Paraffin 2 315 55,5% Cooking, water heating, space heating and ironing

Wood 387 9,3% Cooking, water heating and space heating

Coal 375 9,0% Cooking, water heating, space heating and ironing

Gas 98 2,4% Cooking, water heating, space heating and ironing

Other 0 - Batteries for radio and TV Overall, after electricity, a majority of households use IP and bottled gas.

4.7 Affordability The price per gigajoule of energy delivered varies significantly between the principal household energy carriers. clearly illustrates why households would choose, for instance, to use IP or coal for space heating rather than LPG or electricity. Indoor coal use engenders significant respiratory problems and IP represents both a health hazard (especially for children, who risk drinking it by accident) and a safety hazard due to its flammability and potential for spillage. Furthermore, IP attracts a subsidy, which maintains its unit energy price below that of LPG and electricity. Figure 7: Affordability of different household energy carriers

4.8 Overview of transport sector

78, 75

17, 95

104 100, 14

0 20 40 60 80

100 120

R/GJ

IP Coal LPG

Average Energy Carrier Costs for CTMM

The transport sector is the largest consumer of energy in Tshwane, using 36% of the total energy. Of the energy used by the transport sector, 85% is for road-based transport, while a low percentage of energy is used for rail applications. Tshwane has the following transport infrastructure: o 5 109 km of surfaced roadway (structural and surface index decreasing due

to poor maintenance) o 2 173 km of gravel roadway o 666 000 registered vehicles

4.8.1 Public transport

Tshwane has a good rail network but it is severely underutilised. The bus services require rationalisation, with old vehicles and poor service hampering efficient operations. The taxi industry is not subsidised, and struggles with under-maintained vehicles and over-competition on routes. However, it is hoped that the Taxi Recapitalisation Programme will address these issues. The CTMM does not offer an incentive for the use of public transport over private vehicles. The unattractiveness (due to poor services and high fares) and inefficiency of public transport are demonstrated in below, which indicates the commuter transport split in Tshwane. This figure is comparable to other cities in South Africa such as Ekhuruleni and Cape Town. Figure 8: Commuter modal split

4.8.2 Distribution of emissions

The emissions distributed as a result of vehicular movements in Tshwane is indicated in figure 9. Other noxious gases, such as nitrous oxide (NOX), sulphur dioxide (SO2), carbon monoxide (CO) and hydrocarbons (HC) are similarly emitted. Figure 9 was generated by the CTMM's regional transportation model, and provides a spatial reference of emissions.

Modal Split in Tshwane

Rail6%Bus

10%

Taxi16%

Walk/Cycle35%

Car33% Car

Rail

Bus

Taxi

Walk/Cycle

Figure 9: Distribution of vehicular emissions in Tshwane

4.8.3 Greenhouse gas emissions from transport The greenhouse gases (methane, (CH4), CO2) emitted by the transport sector in Tshwane have been estimated as follows: Table 3: Greenhouse gas emissions from transport in Tshwane

Total annual emissions (tpa) Pollutant Diesel-

driven vehicles

Petrol-driven vehicles

Total

Carbon dioxide 1 177 235 1 341 344 2 518 579

Methane 308 267 575

4.8.4 Identified transport sector gaps or issues The following issues and gaps have been identified in relation to the energy consumption and emissions of the transport sector in Tshwane:

Spatial planning during apartheid era □ Poor spatial and transport planning integration □ Low use of public transport □ Increasing private vehicle ownership

4.9 Greenhouse gas emissions

Greenhouse gas emissions were calculated using the energy balance. Carbon dioxide, methane and nitrous oxide were evaluated. The emissions in Tshwane (in CO2 equivalents) have been evaluated as follows:

Table 4: CO2-equivalent emissions from Tshwane's energy use

Total from energy sources CO2-equivalent (tonnes, 2004)

CO2 12 542 832

CH4 766

N2O 504

Total CO2-equivalent emissions 12 715 215

This compares with the 18 000 000 tonnes per year for Ekurhuleni and 17 000 000 tonnes per year for Cape Town. The breakdown by energy carrier is shown in the following pie chart:

Figure 10: Carbon dioxide equivalent emissions by energy carrier

This chart clearly shows the dominant effect that coal-based grid electricity has on Tshwane's emissions profile (recalling that the two greatest demand sectors for electricity are industry and construction at 42% and households at 41%,). Emissions by sector are shown in the figure below. The industry and construction sector contributes the most to greenhouse gas emissions, followed by households and then transport.

Per Cent CO2 Emissions by Source

Coal17%

Electricity57%

Sasol gas1%

LF Stationary3%

LF Transport22%

Figure 11: Greenhouse gas emissions by sector

5. CONCLUSIONS Reducing energy demand and greenhouse gas emissions have become a matter of national policy and priority. Comparing the energy demand and emissions by demand sector, it is clear that the transport, industry and construction and household sectors should receive priority treatment. Table 5 : Priority intervention sectors

Demand sector Energy demand

Greenhouse gas emissions

Transport 1 3

Industry and construction 2 1

Households 3 2

GHG Emissions by Sector

Transport21%

Households28%

Industry/construction38%

Commerce12%

Mining and quarrying0%

Local Government 0%

Agriculture1%

6. PROPOSED ENERGY STRATEGY Frameworks for the Sustainable Energy and Climate Change Strategy (Figure 12) and implementation and ongoing service delivery are proposed. Tshwane's Energy Vision, aligned with the existing vision and mission of the CTMM, is to be an energy smart city of excellence. Pillars of the strategy, key projects and key performance indicators (KPIs) for measuring their success have been identified, as shown in Table 6 (Source: Sustainable Energy Africa) Figure 12: Sustainable energy and climate change strategy framework

Vision

Goals

Targets

Plan

Implementation

COCO--ORDINATIONORDINATION

International trends and inspiration

Baseline info• carbon

emission• consumer use

patterns• energy needs• supply systems

National & local policy environment & legislative framework

Capacity development

Economic viability

• eco-efficiency• cost recovery

• economic empowerment

Energy & Climate Energy & Climate Change StrategyChange Strategy

Fleet Manage-

ment

Fleet Manage-

ment

Publicamenities

Publicamenities

WaterWater

Roads &street

lighting

Roads &street

lightingWasteWaste

Planningland use

Planningland use

Procure-ment

Procure-ment

Eco devEco dev

TransportTransport

Airquality

Airquality

PublicbuildingsPublic

buildings

EnergySupplyEnergySupply

HousingHousing

OtherOther

Stakeholder participation

Social development

• poverty alleviation

•service delivery• health

Environmental integrity

• better air quality• sustainable energy

• climate change mitigation

Current projects

City visions and goals

EEnergy & nergy & CClimate limate CChangehange SStrategytrategy

Table 6: Tshwane's energy strategy – key projects and KPIs for project success

Pillar Key projects KPIs

Facilitate the supply of safe, reliable and affordable energy services to households, both formal and informal.

Air Quality Act enforced Households informed on energy choices Call centre and web links established

Disseminate information and develop awareness on sustainable housing and commercial building design and construction methods

Standards applied

Sustainability: Enhance energy sustainability, accessibility and affordability to residents and the Municipality

Disseminate information and develop awareness on RE, EE and DSM technologies and applications

National RE and EE strategy targets are met or exceeded

Transform Tshwane into a green city

Policies and incentives in place Projects and new city initiatives reviewed for SE/CC/AQ impact

Facilitate and support less energy intensive transport in Tshwane

Systems and incentives in place

Facilitate and support "energy smart" municipal services

National EE and RE targets met or exceeded

Facilitate and support cleaner, more efficient and diverse energy use in the commercial and industrial sectors

Improved energy choices

Facilitate and support cleaner, more efficient and diverse energy use in the household sector

Improved energy choices

Cleaner, more efficient and diverse energy use and supply: Encourage and promote shift to cleaner (emitting less pollutants and greenhouse gases), more efficient and diverse energy use and supply

Promote and facilitate the availability of less GHG intensive energy use throughout Tshwane

Diverse, clean energy carriers available

Encourage CTMM businesses to develop “energy smart” products and services

Tshwane's businesses can be branded "Energy Smart" Tshwane businesses can sell RE, EE and DSM solutions

Economic growth and development: Support economic growth and development in Tshwane, especially in the north, through smart energy use

Provide an energy smart environment for investors, developers, businesses and workers

Investment and gross geographic product increase

Pillar Key projects KPIs

Innovation: Encourage the development and use of innovative tools, products and solutions for energy use

Develop leading energy smart and innovative products

Tshwane recognised as energy smart

Develop and implement web-based SE/CC/AQM Knowledge Management System for Tshwane

Information on SE/CC/AQ is available and accessible

Coordinate SE/CC/AQM activities with national government

Activities are coordinated

Integration: Integrate energy planning and information/ knowledge management with national/private sector/other municipal initiatives

Integrate SE/CC/AQM planning, targeting, monitoring and impact assessment into all the CTMM's strategic planning

Activities are integrated