Gauteng city region clean energy market assessment report final 2

Gauteng City Region
Clean Energy Market
ASSESSMENT REPORT 2018
Physical Address: Mark Shuttleworth Street,
The Innovation Hub, Pretoria, South Africa, 0087
Tel: +27 12 844 0000
Web: www.theinnovationhub.com
InnovHubZA InnovHub @InnovHub
The Innovation Hub is a subsidiary of the Gauteng Growth & Development Agency, an
agency of the Gauteng Department of Economic Development.

Gauteng City Region
Clean Energy Market
ASSESSMENT REPORT 2018
Commissioned By: The Innovation Hub Management Company (TIHMC)
On Behalf of: Gauteng Department of Economic Development (GDED)

1Clean Energy Market Assessment Report
1 EXECUTIVE SUMMARY 4
2 OVERVIEW OF CLEAN ENERGY TECHNOLOGIES 4
2.1 Solar PV 4
2.2 Hydropower 6
2.3 Bioenergy 6
2.4 EEDSM 7
3 POLICIES AND REGULATIONS GUIDING CLEAN ENERGY IN GAUTENG 9
3.1 National policies, regulation, laws and procurement programme 9
3.2 Provincial strategies and programmes 11
3.3 Municipality strategies and by-laws 14
3.3.1 Ekurhuleni Metropolitan Municipality 14
3.3.2 City of Johannesburg 15
3.3.3 City of Tshwane 17
3.3.4 Sedibeng District Municipality 18
3.3.5 West Rand District Municipality 18
4 MECHANISMS AND BUSINESS MODELS IN THE CLEAN ENERGY MARKET 19
4.1 Legislative mechanisms for CE technologies. 19
4.1.1 Renewable energy power plants 19
4.1.2 EEDSM activities 21
4.2 Business models for CE technologies 21
5 CLEAN ENERGY POTENTIAL MARKET IN GAUTENG 24
5.1 Gauteng potential market 24
5.2 Gauteng potential share of the national market 26
5.3 Market potential per technology 27
6 VALUE CHAIN ANALYSIS 28
6.1 Value chain analysis for utility-scale CE interventions 28
6.1.1 Utility-scale solar PV system 28
6.1.2 Utility-scale bioenergy system 29
6.2 Value chain analysis for embedded CE interventions 31
6.2.1 Embedded solar PV 31
6.2.2 Embedded hydropower system 32
6.3 Value chain analysis for EEDSM interventions 33
6.4 Job creation in Gauteng’s CE market 34
7 OPPORTUNITIES FOR SMMEs 36
7.1 Opportunities for SMMEs involved in RE interventions 36
7.1.1 SMME opportunities in manufacturing stage 36
7.1.2 Opportunities in the project development, construction and maintenance stages 37
7.2 Opportunities for EEDSM activities 37
8 BARRIERS AND CORRESPONDING SOLUTIONS FOR SMMEs 39
9. REFERENCES 41
APPENDIX A 44
APPENDIX B 48
APPENDIX C 55
TABLE OF CONTENTS

2 3Clean Energy Market Assessment Report Clean Energy Market Assessment Report
ABBREVIATION AND GLOSSARY
CE Clean energy
CNG Compressed natural gas
CoJ City of Johannesburg
CoT City of Tshwane
CSIR Council for Scientific and Industrial Research
DSM Demand-side management
EE Energy efficiency
EEDSM Energy efficiency and demand side management
EMM Ekurhuleni metropolitan municipality
EPC Engineering, Procurement, and Construction
ESCos Energy services companies
GCCRS Gauteng climate change response strategy
GCR Gauteng city region
GCREDP Gauteng city region economic development plan
GDARD Gauteng Department of Agriculture and Rural Development
GESS Gauteng energy security strategy
GHG Greenhouse gas
GIES Gauteng integrated energy strategy
GIFA Gauteng infrastructure financing agency
GSP Green strategic programme
HVAC Heating, ventilation and air conditioning
IDP Integrated development plan
IPPPP Independent power producer procurement programme
IRP Integrated resource plan
M&V Measurement and verification
NATMAP 2050 National transport master plan
NDP National development plan
NERSA National Energy Regulator of South Africa
NGP New growth path
O&M Operation and maintenance
PPA Power purchase agreement
PV Photovoltaic
RE Renewable energy
REIPPPP Renewable energy independent power producer procurement programme
RFI Request for Information
RPP Renewable power plant
SABS South African Bureau of Standards
SANEDI South Africa national energy development institute
SMMEs Small, micro, medium enterprises
SSEG Small-scaled embedded generation
SWH Solar water heating
TMR Transformation, modernisation and re-industrialisation
UP University of Pretoria
WRDM West rand district municipality
Figure 1. Solar PV on Greenstone shopping centre [4] 5
Figure 2. Solar PV on Woolworths distribution centre, Midrand [4] 5
Figure 3. Solar PV on East Rand mall [4] 5
Figure 4. Solar PV on Clearwater mall [4] 5
Figure 5. Conduit power plant at the Pierre van Ryneveld reservoir [5] 6
Figure 6. Application types of bioenergy 6
Figure 7. 1 MW landfill gas plant in Germiston [7] 7
Figure 8. 4.6 MW Bronkhorspruit biogas project [8] 7
Figure 9. Application types of EEDSM per sector 8
Figure 10. Policy map of CE market in South Africa 9
Figure 11. Annual energy consumption of Johannesburg 16
Figure 12. Implied 10-year Sectorial Targets for the City of Johannesburg [28] 16
Figure 13. Applicable standards and codes 19
Figure 14. IPP office procurement process 19
Figure 15. General application process of SSEG installation 21
Figure 16. General process of EEDSM activities implementation 21
Figure 17. Schematic of business model 22
Figure 18. Estimated electricity demand for 2018-2025 24
Figure 19. Estimated electricity supply mix for 2018-2025 24
Figure 20. Electricity saving target per sector for 2025 25
Figure 21. RE generation for 2025 26
Figure 22. EEDSM potential for 2025 26
Figure 23. Value chain of utility-scale solar PV systems 28
Figure 24. Value chain of utility-scale bioenergy systems 29
Figure 25. Value chain of embedded solar PV system 31
Figure 26. Value chain of embedded hydropower system 32
Figure 27. Value chain of EEDSM interventions [50] 33
Figure 28. Opportunities for SMME in Solar PV manufacturing [46] 36
Figure 29. Opportunities for SMME in project development, construction and maintenance 37
TABLES

Table 1: National policies and strategies in CE market 10
Table 2: Regulations, legislation and procurement programme in CE market 10
Table 3: Key standards for CE market 11
Table 4. Electricity sector interventions [24] 13
Table 5. Interventions for climate change response 13
Table 6. CE targets by sector [26] 15
Table 7. Economic development criterion 20
Table 8. Potential CE and EEDSM interventions per sector [5] [18] 25
Table 9. Market potentials per CE technologies and EEDSM technologies 27
Table 10. Potential job creation of CE interventions 34
Table 11. Potential job creation areas of CE interventions 34
Table 12. Barriers and solutions for SMMEs 39
FIGURES

South Africa, one of the signatories of the Kyoto Protocol, is committed to reducing business-as-usual greenhouse gas
emissions by 34% by 2020 and 42% by 2025 [1]. Ways of achieving this include use of renewable energy technologies and
energy efficiency and demand side management (EEDSM) interventions. In its Gauteng Energy Security Strategy, the
Gauteng provincial government has identified clean energy (CE) technologies and EEDSM as options for ensuring energy
security in response to challenges associated with global climate change and slow economic growth.
The purpose of this report is to outline market opportunities in the CE and EEDSM market, especially for small, micro
and medium enterprises (SMMEs), by describing the policy and regulatory landscape guiding CE in the Gauteng City
Region , reviewing the mechanisms and business models in the CE and EEDSM market, evaluating the size of Gauteng’s
potential CE market, analysing the value chain of the CE market and summarising barriers and solutions to these
barriers for SMMEs to access the CE market.
The key findings of this report are outlined below.
• The estimated projection for Gauteng’s electricity consumption in 2025 is 68.172 TWh, of which 10.907 TWh is
envisaged to be supplied by renewable energy sources.
• The technical potential of solar photovoltaic (PV), bioenergy, hydropower and EEDSM in the Gauteng province is
10.203 TWh, 0.665 TWh, 0.04 TWh and 17.602 TWh, respectively.
• The investment potential of solar PV, bioenergy, hydropower and EEDSM is R46.6 billion, R1 billion, R0.152 billion
and R2.6 billion, respectively.
• According to the value chain analysis of CE technologies, the manufacturing stage of solar PV holds the potential
to create 65 225 jobs in the Gauteng province, a significant contribution to potential job creation of CE technologies
in Gauteng.
• SMMEs have abundant opportunities to get involved in the Gauteng CE market with the necessary support from
provincial government and municipalities.
2. OVERVIEW OF CLEAN ENERGY TECHNOLOGIES
In response to challenges associated with global climate change, South Africa has promoted different clean energy
(CE) technologies in the country since the publication of the White Paper on Energy in 1998. Currently, the main CE
technologies used in the country are solar photovoltaic (PV), concentrated solar power, wind power, hydro-power,
bioenergy, and energy efficiency and demand side management (EEDSM). As stated in the draft Gauteng State of Energy
Report, the estimated annual electricity consumption of Gauteng province in 2025 will be 68.672 TWh [1]. To avoid
energy supply disruption and reduce environmental impacts, solar PV, bioenergy, hydropower and EEDSM have been
identified as key CE technologies that should be promoted further in Gauteng province [1]. Therefore, overviews of solar
PV, hydropower, bioenergy and EEDSM are given in this section. Detailed information on individual CE technologies are
provided in Appendix A.
2.1 SOLAR PHOTOVOLTAIC SYSTEMS
Solar PV systems use solar cells and directly convert the energy carried in sunlight into electricity without any moving
parts or with only a few moving parts. Solar PV technology has developed through three generations: the first generation
uses silicon solar cell technology; the second generation uses thin film solar cell technology; and the third generation
has introduced some emerging technologies such as the tandem cell, quantum well technology, thermophotovoltaic
1. EXECUTIVE SUMMARY
technology and a high concentration of PV devices [2]. At present, first- and second-generation technologies have been
well developed. By June 2017 in South Africa, power procured by the Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP) from solar PV had reached 37% or 2 292 MW of the 6 225 MW capacity determined
by the Minister of Energy [3]. The determined capacity of solar PV is accumulated from four separate ministerial
determinations (2011, 2012, 2015 and 2016). The target of solar PV, at the time of writing, given in the IRP 2030, is 8 400
MW by 2030. Currently, most solar PV systems installed in Gauteng are rooftop PV systems [1]. Figures 1-4 show some
existing solar PV installations in Gauteng. The estimated capacity of solar PV systems installed is more than 17 MW [1].
Figure 1. Solar PV on Greenstone shopping centre [4]
Figure 3. Solar PV on East Rand mall [4]
Figure 2. Solar PV on Woolworths distribution centre, Midrand [4]
Figure 4. Solar PV on Clearwater mall [4]

2.2 HYDROPOWER
Hydropower plants generate electricity from the energy of falling water or fast-running water. There are various types
of hydropower applications, including run-of-river, impoundment, pumped storage, offshore hydropower and conduit
hydropower. The most popular hydropower technology in Gauteng is conduit hydropower.
A low-budget pilot conduit hydropower generation project installed at the Queenswood reservoir of the City of Tshwane
(CoT) in 2008 reflects the benefits and expected return from such an investment [5]. Later in 2011, a 15-kW conduit
hydropower plant was installed at the Pierre van Ryneveld reservoir, as shown in Figure 5. The electricity generated
was used for on-site lighting, alarms and communication systems [5]. A research project conducted by the University of
Pretoria (UP) shows that the potential annual electricity generation capacity from the CoT’s water distribution system is
around 10 GWh [5].
Figure 5. Conduit power plant at the Pierre van Ryneveld
reservoir [5]
Figure 6. Application types of bioenergy
2.3 BIOENERGY
Bioenergy is generally considered the conversion of bio-
based raw materials via a number of conversion routes
into a range of energy carriers and other products [6].
Biomass can be converted through different conversion
routes to produce electricity, heat and other organic
products (such as fertilizers). Conversion technology
routes can lead to solid, liquid and gaseous fuels, usually
referred to as biofuels. Like other CE technologies, the
adoption of bioenergy comes with environmental benefits
such as a reduction in greenhouse gas (GHG) emission
and therefore climate change mitigation.
Figure 6 shows a summary of the application types of
bioenergy.
There are a number of operational bioenergy projects and other projects under construction in South Africa, among
others:
• Johannesburg landfill gas project (expected capacity: 18.6 MWp, current capacity: 7.56 MW).
• Mkuze biomass project in KwaZulu-Natal (capacity: 16.5 MW).
• Ngodwana biomass project in Mpumalanga (capacity: 25 MW).
A flagship project is the Bronkhorstspruit Biogas Project situated in the CoT, which generates 4.6 MW power from
various organic waste sources. This is a privately owned plant that has signed a purchasing power agreement (PPA) with
BMW. Figures 7-8 show some existing bioenergy projects in Gauteng.
Figure 7. 1 MW landfill gas plant in Germiston [7] Figure 8. 4.6 MW Bronkhorspruit biogas project [8]
2.4 EEDSM
The definitions of the different key concepts that relate to EEDSM are given below.
• Demand-side management (DSM): planning and implementation of activities designed to change the amount,
timing and/or composition of current and/or future energy use of an energy system [9].
• Energy efficiency (EE): planning and implementation of activities and technologies that result in a reduction in the
energy used for a given energy service or level of activity of an energy system.
• Energy efficiency and demand-side management (EEDSM): combination of EE and DSM initiatives aiming to
improve the overall energy and/or economic performance of an energy system.
Various types of EEDSM applications are used to improve energy efficiency (EE) in different economic sectors of South
Africa. Typical technologies applied in the different sectors are described in Figure 9. An overview of the financial
feasibility of the most common system/processes that can achieve energy savings is provided in Appendix A.
Combined Heat& Power,
Fuels, Chemicals, and
Materials
Carbon Rich Chains Process
(Biodiesel)
Thermochemical
• Process
• Pyrolysis
• Gasification
Biochemical Process
(Sugar)
Biogas Process
(Anaerobic digestion)
Biomass Feedstock

Figure 9. Application types of EEDSM per sector
Figure 10. Policy map of CE market in South Africa
3.1 NATIONAL POLICIES, REGULATION, LAWS AND PROCUREMENT PROGRAMME
Key national policies, regulations, laws and procurement programmes of CE and EEDSM in South Africa are shown in
Figure 10.
3. POLICIES AND REGULATIONS GUIDING CLEAN ENERGY
IN GAUTENG
As shown in Figure 10, numerous policies, regulations, programmes and standards are used to support applications of
CE technologies in South Africa. A summary of these policies, regulations, programmes and standards is given in Tables
1-3. Details of the policies, regulations, programmes and standards are provided in Appendix B.
RESIDENTIAL
GOVERNMENT
COMMERCIAL
INDUSTRIAL
• LIGHTING: EE lights (LED, CFL, etc.); motion sensors; solar switches; timers; solar lights
• WATER HEATING: High pressure/low pressure solar water heaters; geyser thermostats; water-saving
shower heads; heat pumps
• COOKING: Induction cooking; fuel switching (gas stove)
• ENVELOPE: Ceilings (RDP houses)
• BEHAVIOUR: EE awareness programmes
• EMBEDDED GENERATION: Rooftop solar PV systems
National Energy Act (2008)
Electricity Regulation (2006)
NERSA licensing Legislations (2016)
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP)
Small Projects Independent Power Producters Procurement Programme (IPPPP)
Draft Carbon Tax Bill (2017)
White Paper on Energy (1998)
White Paper on Renewable Energy (2003)
Biofuels Industrial Strategy (2007)
National Transport Master Plan (2010)
Integrated Resource Plan (2011)
New Growth Path (2011)
The Green Economy Accord (2011)
National Development Plan (2012)
Post-2015 National Energy Efficiency Strategy
(2016)
NRS097-2: Grid interconnection of embedded
generation
South African Renewable Power Plants Grid Code
SANS 50001 and 50010
SANS 10400XA
• LIGHTING: EE lights (LED); solar streetlights
• HVAC: Motion sensors; EE equipment; programmable controls and thermostats
• EMBEDDED GENERATION: Rooftop solar photovoltaic systems
• PRIME MOVER: EE motors; variable speed drives
• EMBEDDED GENERATION: Rooftop solar photovoltaic systems
• PRIME MOVER: EE motors; variable speed drives
• CONTROL: Process optimisation
• EMBEDDED GENERATION: Rooftop solar photovoltaic systems; co-generation; solar thermal systems
REGULATION, LEGISLATION AND PROCUREMENT PROGRAMME
POLICY AND STRATEGY STANDARDS

Table 1: National policies and strategies in CE market
Name Key information
White Paper on
Energy (1998) [10]
The White Paper on Energy proposed an integrated approach to resolving energy problems
in the country. It suggested that government policy on renewable energy (RE) should be
concerned with meeting the different challenges such as economic feasibility, constraints on
the development of the renewable industry.
White Paper on
Renewable Energy
(2003) [11]
The White Paper on Renewable Energy recognised the significant long-term potential of RE in
the country and set a target of generating 10 000 GWh from RE resources by 2013.
Biofuels Industrial
Strategy (2007) [12]
This strategy supports biofuel for social development and poverty alleviation and focuses
mainly on utilising pockets of land in the former homelands.
Integrated Resource
Plan (2011) [13]
The Integrated Resource Plan (IRP) aims to provide an indication of the country’s electricity
demand, how this demand will be supplied and what it will cost.
New Growth Path
(2011) [14]
The New Growth Path (NGP) is a more specific policy element, which reflects government’s
commitment to prioritising employment creation in all economic policies. The NGP targets
300 000 additional direct jobs by 2020 through the greening of the economy, with 80
000 in manufacturing and the rest in construction, operations and maintenance of new,
environmentally friendly infrastructure.
The Green Economy
Accord (2011) [15]
The government and its social partners signed a Green Economy Accord on 17 November
2011, as an outcome of social dialogue on the NGP. In the green economy accord, different
commitments about CE market are summarised.
National
Development Plan
(2012) [16]
The National Development Plan (NDP) is a plan that outlines the vision for South Africa on
how it can eliminate poverty and reduce inequality by the year 2030. In the NDP, different
actions for energy sector are proposed to achieve the IRP 2030 targets.
National Transport
Master Plan (2016)
[17]
The National Transport Master Plan (NATMAP 2050) is a long-term strategy for the
transportation sector that aims to develop a dynamic, long-term, sustainable land use
and a multi-modal transportation systems framework for the development of network
infrastructure facilities, interchange terminus facilities and service delivery. In the NATMAP
2050, the goals to reduce carbon footprint of transport are proposed.
Post-2015 National
Energy Efficiency
Strategy (2016) [18]
The post-2015 National Energy Efficiency Strategy (NEES) aims to build on the achievements
obtained by NEES 2005, stimulating further EE improvements through a combination of fiscal
and financial incentives, a robust legal and regulatory framework, and enabling measures.
The expected energy saving target per sector in 2030 is provided in this strategy.
Table 2: Regulations, legislation and procurement programme in CE market
National Energy Act
(2008) [19]
The purpose of the act is to ensure that diverse energy resources are available, in sustainable
quantities and at affordable prices.
Electricity Regulation
Act (2006, amended
2008) [20]
This Act makes provision for EE measures with respect to lighting, water heating and space
heating/cooling and smart metering to be promulgated.
NERSA Licensing
Legislations (2016)
[21]
The National Energy Regulator of South Africa (NERSA) licensing legislations aim to regulate
the issuing of licences (including amendments, transfer, rectification and review), registering,
revoking electricity distribution, transmission, generation, trading.
REIPPPP [3]
Following on the IRP targets, the government set in motion the Independent Power Producer
Procurement Programme (IPPPP) with the publication of the South African Renewable
Energy IPP Request for Proposals in August 2011.
Small Projects
IPPPP [3]
In June 2012, government set in motion a Small Projects IPPPP. It released a Request for
Information (RFI) and draft Request for Proposals (RFP) in order to test the market appetite for
small projects ranging between 1 MW and 5 MW of installed peak capacity.
Draft Carbon Tax Bill
(2017) [22]
The purpose of the Carbon Tax Bill is to send the necessary price signals to change consumer
behaviour and stimulate investor appetite to shift towards low-carbon options.
Table 3: Key standards for CE market
NRS 097-2: Grid
interconnection of
embedded generation
The NRS 097-2 is a set of industry standards that define technical requirements for the utility
interface, generator requirements and utility implementation guidelines.
South African
Renewable Power
Plants Grid Code
This document sets out the technical and design grid connection requirements for renewable
power plants (RPP) to connect to the transmission or distribution network in South Africa.
SANS 50001
SANS 50001, Energy management systems – Requirements with guidance for use has been
adopted based on ISO 50001 to help the South African industry and organisations improve
their EE.
SANS 50010
SANS 50010, which was published by SABS in September 2011, aims to give assurance that
“actual savings should always be more than or equal to the reported savings” by providing a
standardised methodology for the measurement and verification of energy savings.
SANS 10400 XA
SANS 10400-XA, published in August 2011, is part of the South African standard for
environmental sustainability and energy usage in buildings, and forms part of the National
Building Regulations.
3.2 PROVINCIAL STRATEGIES AND PROGRAMMES
In this section, some of the provincial strategies and programmes designed by the Gauteng provincial government are
summarised.
Green Strategic Programme for Gauteng
The Green Strategic Programme (GSP) for Gauteng, which was recently revised, attempts to guide the Gauteng
provincial government’s prioritisation of a shift towards sustainable economic growth and the creation of green jobs, as
articulated in the Gauteng City Region Economic Development Plan (GCR EDP) and the province’s 10-pillar strategy on
transformation, modernisation and re-industrialisation (TMR), respectively [23]. The key objectives for the CE market
given by the programmes (predominantly the Gauteng Energy Security Strategy [GESS]) are provided below [23].

• Develop a short- to medium-term energy funding plan to support the roll-out of the strategy.
• Promote innovation and CE technologies.
• Determine and promote the most economically, socially and environmentally sustainable supply mix: The energy
supply mix across the province had a target for a renewable share of 7% by 2014, 16% by 2025 and 47% by 2055
in the Gauteng Integrated Energy Strategy (GIES) (2011). The achievement of the energy supply mix is highly
dependent on national investments.
• Small-scale off-grid and grid-feed-in renewable systems are promoted in the private as well as in the public
sector.
• At least 100 000 of the 300 000 jobs in the green economy envisaged by the NGP to be in Gauteng.
• Localisation of production of green products.
Gauteng Energy Security Strategy (2016)
The GIES (2011) was reviewed and approved in 2016 as the GESS. The reviewed strategy focuses on both energy security
and energy diversity by investing in low-carbon energy sources and innovative technologies to deliver reliable and
affordable energy services to the province. GESS has six pillars guiding its implementation, namely:
• Pillar 1 - Enhance security of supply: Security of supply should be enhanced by diversifying energy sources being
used in the province. Regarding RE, solar energy in general and solar PV in particular are the most suitable
options for the province.
• Pillar 2 - Promotion of EE: EE programmes should be increasingly implemented across all sectors of the economy
in the Gauteng province. Building EE by-laws, as per SANS 10400XA building standard, should be introduced by
municipalities and an effort should be made to ensure their successful enforcement.
• Pillar 3 - Modernisation of the energy infrastructure: In the electricity sector, implementation of the smart grid
concept is very important in modernising the power grid. The key benefit of the smart grid is that it enables
demand side response where consumers can make choices on when to purchase and use electricity. The use of
hydrogen fuel cell technologies, for example, is another way to modernise the energy mix.
• Pillar 4 - Contribution to economic development through re-industrialisation: Regarding economic development, a
GCR-wide RE cluster should be promoted.
• Pillar 5 - Ensure universal access to energy for the poor: This strategy should ensure universal supply of modern
energy to low-income households by continuing to expand the electrification programme.
• Pillar 6 - Reduction of impacts on the environment: reduction of the negative impacts of electricity generation and
energy use on the environment through incorporation of CE technologies and systems.
The interventions in the electricity sector for the short, medium and long term given in the GESS are briefly described
in Table 4.
Table 4. Electricity sector interventions [24]
Interventions Short term (1-5 years) Medium term (5-10 years) Long term (> 10 years)
Demand
• EE in households (solar water
heaters [SWH] heat pumps –
roll out) ;
• Industrial and commercial
sectors (e.g., fuel switching);
• Load management by regional
and national utilities.
• EE in households (SWH heat
pumps – roll out) ;
• EE in households (SWH heat
pumps – roll out) ;
Supply
• Roof-top solar PV;
• Mid-scale solar energy (20
MW);
• Waste-to-energy projects;
• Embedded coal-based power.
• Solar power plants and
related storage technologies;
• Gas power;
• Coal powered plants;
• Waste-to-energy incl. landfill
power.
• Solar power plants and
related storage technologies;
• Gas power;
• Coal powered plants; •Waste-
to-energy incl. landfill power.
Gauteng Climate Change Response Strategy (2011)
The province approved the Gauteng Climate Change Response Strategy (GCCRS) in 2011. The document is currently in
the final stages of revision, as per five-year revision period, through the Gauteng Department of Agriculture and Rural
Development, which is responsible for managing the natural environment, agriculture, soil conservation, animal control
and diseases, pollution control, abattoirs and veterinary services in the GCR [25]. The GCCRS focuses on implementing
mitigation and adaptation interventions to curb GHG emissions and its strategy is also under review.
The proposed interventions for key sectors are provided in Table 5.
Table 5. Interventions for climate change response
Sector Interventions
Industry, Commerce and
Mining
• EE retrofitting of industrial, commercial and mining operations.
• Combined heat and power promotion.
• Energy-efficient lighting retrofitting.
• Energy-efficient transformers and motors retrofitting.
• Smart energy controls.
• Cleaner production processes in industries.
Transport • Compressed natural gas (CNG) alternative fuel.
• Expanded public transport.
• Integration of Gauteng public transport.
• Restriction on inner city and town vehicle access.
• Design for public mobility.
• Smart controls for transportation and logistics.
• Inter-city and inter-provincial railway services.

Energy • Promotion of solar energy.
• Generation of liquid or gas fuels from biomass for use in the transport, industrial and
residential sectors.
• Waste-to-energy conversion.
Residential and public
buildings
• EE standards for new buildings.
• Energy-efficient and safe cooking stoves.
• Heat pumps for water heating.
• EE in public buildings.
• Energy-efficient lighting of streets and public areas.
• Smart controls for buildings.
• Energy-efficient low-cost housing.
• Energy-efficient appliances.
Gauteng Innovation and Knowledge Economy Strategy (2012)
The goal of the Gauteng Innovation and Knowledge Economy Strategy is to accelerate innovation in all its forms, in order
to bolster and support the broader strategic objectives of sustainable social and economic development, and sustainable
employment. The global objectives are increased economic competitiveness, improved public sector services, and
sustainable livelihood and quality of life of citizens within the GCR. Process innovation, which creates jobs in low- and
medium-technology industries (although it destroys jobs in advanced economies), and product innovation, which have
no substitutes (generally high-tech), lead to increased employment. CE technologies are a key innovation for the green
economy of Gauteng province. Research into and development of CE technologies is encouraged by this strategy.
3.3 MUNICIPALITY STRATEGIES AND BY-LAWS
The metropolitan (metro) cities constitute the economic hubs of the country and, at the same time, are major energy
consumers and sources of carbon emissions. As such, strong support from their local governments is increasingly
required by national government to meet national objectives in energy, low-carbon and related environmental and
economic development targets. The following sections give an overview of the CE policies of GCR municipalities.
3.3.1 Ekurhuleni Metropolitan Municipality
Ekurhuleni Metropolitan Municipality’s (EMM) Energy and Climate Change Strategy, published in 2007, indicated that
renewable sources of energy were not used well in EMM [26]. EEDSM potential in EMM is huge, and numerous cost-
effective opportunities exist for energy use reduction, including lighting efficiency, efficient building design, domestic
geyser ripple control and industrial equipment efficiency [26]. In this respect, the key components of a sustainable
energy development path for EMM, as identified in the strategy, include:
• Economic growth through efficient use of resources rather than increased use of resources.
• Steady reduction in fossil fuel dependence.
• Focus on EE.
• Steady introduction of cleaner and renewable forms of energy.
• An efficient transport system based on public transport.
• Increasing household access to safe, affordable, healthy forms of energy.
The CE targets given in the strategy are provided in Table 6.
Table 6. Clean energy targets by sector [26]
Sector Targets
Industry, Commerce
and Mining
• 15% reduction in industry energy demand by 2014.
• 15% reduction in energy demand in commercial buildings by 2014.
Residential • Increased EE in households: 10% reduction in electricity consumption by 2014.
• 10% reduction in CO2 emissions, in real terms, by 2015 (resulting from RE and EEDSM
implementation in households).
Agriculture • 9% reduction in electricity consumption by 2014.
Government • LED signals for all traffic lights by 2015.
• Efficient lighting on government property: all incandescent bulbs replaced with CFL ones
by 2010.
• Reduction in energy consumption of at least 5% in all municipal operations by 2010.
• Reduction in GHG emissions of 10% by 2015.
Energy Supply • Quantity of CO2 emissions reduced by 5% by 2010, 25% by 2020.
• Diversified energy supply to include renewable and cleaner energy sources with a target of
10% by 2020.
In 2013, a policy on EE in council buildings and premises was proposed by the city. In the policy, different EE
recommendations for building lighting, street lighting and heating/cooling equipment are provided. In the 2017/18
integrated development plan (IDP) of EMM, the allocated budgets of EEDSM project over the 2017/18, 2018/19 and
2019/20 financial years are R12 million, R6 million and R20 million, respectively [27]. To reduce the reliance on Eskom-
supplied electricity, 10% of the electricity demand of the entire municipality in the 2020/21 financial year will be supplied
by RE, as stated in 2017/18 IDP. This will be achieved by deploying alternative energy solutions, e.g. conclusion of
contracts with private power producers, installation of solar panels on rooftops of council-owned buildings, landfill gas
recovery, conversion to energy and similar measures.
The EMM has taken decisive action to demonstrate its commitment to clean, RE. It established a 200 kWp solar PV farm
at the OR Tambo precinct in Wattville. It also installed a gas-to-power system with a 1 MWp capacity at the Simmer and
Jack landfill site in Germiston. Solar PV have been installed on the rooftops of the Springs, Boksburg and Kempton
Park civic centres, in total three installations with about 250 kWp generation capacity each, bringing the municipality’s
solar PV installed capacity to about 0.75 MWp. In addition 38 496 solar PV-powered lighting units have been installed in
informal settlements around the municipality.
3.3.2 City of Johannesburg
A comprehensive review of the energy sector in the City of Johannesburg (CoJ) was published as a state of energy report
in 2008 [28]. The key figures with respect to electricity consumption provided in the report are shown in Figure 11.

The following priority sustainability objectives are proposed with respect to CE technologies:
• Enhance uptake of RE options across all sectors.
• Encourage the widespread uptake of energy efficiency options across all sectors.
• Increase the affordability of clean and safe energy sources.
The sectorial energy-saving targets summarised in Figure 12 are proposed in the state of energy report 2008.
Figure 11. Annual energy consumption of Johannesburg [28]
Domestic Local authority Commercial and Industrial Transport
Figure 12. Implied 10-year Sectorial Targets for the City of Johannesburg [28]
7.185
1.893
6.021
8.078
Annual Energy Consumption (TWh)
Sectorial targets for City of Johannesburg
0
6000000
10000000
14000000
4000000
2000000
8000000
12000000
16000000
Industry and
Commerce
Public Buildings Transport
Domestic
Households
Total
4362000 155850 8099190 2516800 15133840
1211764 43295 2249954 699167 4204180
1057180 41490 547891 597396 2243957
Target (GJ)
Target (MWh)
Target (tonnes-CO2)
To address the potential increase in energy demand in buildings, the actions recommended by the CoJ Climate Change
Adaptation Plan in buildings are the following [29]:
• Promotion of energy-efficient white goods (fridges, stoves, washing machines etc.).
• Replacement of all incandescent lamps with fluorescent lamps.
• Ensuring that not more than 20% of lights are burning during unoccupied times.
• Establishment of an education strategy for EE on refrigeration/cold rooms in the city, in conjunction with the city-
owned Johannesburg Fresh Produce Market.
In 2008, CoJ published the Design Guidelines for Energy Efficient Buildings in Johannesburg to promote EE in the
construction sector [30]. The following components are covered by the EE building design guideline: site layout, building
form and envelope, internal space layouts, mechanical systems, electrical lighting, water heating, appliances and
equipment, and control and monitoring systems that support EE.
The Energy Demand Side Management Policy of the CoJ, published in 2014, is meant to guide demand side management
(DSM) activities within the municipal boundaries, which include EE and small-scale renewable generation activities [31].
To promote small-scale embedded generation (SSEG) in CoJ, the SSEG feed-in tariff is determined and updated annually
by the CoJ. The 2017/18 feed-in tariff in CoJ was 43.77 c/kWh [32].
In the 2017/18 integrated development plan (IDP) of the CoJ, the city’s aspirational GHG emissions reduction target is
set at between 40% and 65% by 2040, against the baseline of 2007 [33]. By 2040, 50% of power supply of CoJ should be
from RE [1].
3.3.3 City of Tshwane
The Tshwane Integrated Environmental Policy was published in January 2005 with the intent to promote environmental
responsibility by affecting in a practical manner municipal operations and procedures undertaken by various departments
in the CoT. The CE options identified by this policy to achieve environmental sustainability along with economic and
social development include [34]:
• Minimising the use of non-renewable resources and reducing consumption of water and energy through the
promotion of appropriate alternative technologies that will reduce resource use, waste generation and pollution.
• Discouraging the use of inefficient energy fuels and those characterised by high pollution levels.
• Implementing “green procurement” policies.
• Diversifying the energy supply and increasing renewable and cleaner energy sources.
• Reducing energy consumption in all municipal operations.
The Green Building Policy of the CoT, introduced in 2009, aims to improve the performance of the built environment in
order to reduce impacts on the environment and improve the quality of life in the city. This policy document includes
the mandatory and promoted green building development standards, submission forms for mandatory and promoted
standards and a sample Green Building Development Incentive Scheme certificate [35].
As mentioned in the state of energy report of the CoT, published in 2016, the following was achieved by CoT [36].
• Replacing 125 W mercury vapour lamps with 70W high-pressure sodium lamps in 30 338 street lights.
• Replacing 54 W incandescent lamps with 9W LED lamps at 296 traffic light intersections.
• Replacing 56 W T8 fluorescent lamps with 36 W T5 fluorescent lamps in 98 municipal buildings. These include Mini
Munitoria, a satellite civic centre in Atteridgeville, and Balebogeng Primary School in Mamelodi.

• Purchasing 10 electric vehicles for the municipal fleet.
• Facilitation, through a wheeling agreement, of the 4.6 MW biogas-to-power independent power producer (IPP)
project at Bronkhorstspruit.
• Procurement of CNG buses for the A Re Yeng Bus Rapid Transit fleet, and planning of filling stations. There is also
potential to extend the CNG rollout to taxis and the municipal fleet, as CNG is cheaper and produces lower carbon
emissions than conventional fuels, such as diesel and petrol.
In 2017, the CoT announced its flagship policy on embedded generation, which aims at promoting small-scale solar
power generation by residents. In the policy, the embedded generation application process and technical requirement
are provided. As approved tariffs by NERSA, a credit reverse tariff for excess energy generated and transferred to the
grid is set as 10 c/kWh in the CoT [32]. In the 2017/21 IDP of the CoT, the allocated budgets of the EEDSM project over
the 2018/19, 2019/20 and 2020/21 financial years are R10 million, R15 million and R15 million, respectively [37].
3.3.4 Sedibeng District Municipality
Sedibeng District Municipality is committed to becoming a world leader in improving the environment locally and
globally, taking the lead in tackling climate change, reducing pollution, developing a low-carbon economy, consuming
fewer resources and using them more effectively. Unfortunately, neither relevant local policies nor strategies have been
published to date. As given in the 2017/18 IDP of Sedibeng, affordable CE is still one of the core sustainable development
goals [38]. To achieve this goal, a RE programme will be implemented in future. To date, the details of the programme
have not been provided by the municipality.
3.3.5 West Rand District Municipality
According to the Regional Growth and Development Strategy of the West Rand District Municipality (WRDM), published
in March 2012 [39], the majority of the households in the district have access to electricity (82.4%). Only a very small
portion of the population has started using solar energy as an alternative and more sustainable energy resource (0.4%).
In its endeavour to increase the share of RE across the district and become the greenest district in the Gauteng Province,
the WRDM adopted as part of its green development strategy the creation of a RE sector, with the focus on biomass,
solar and photovoltaic power, which have all proven to be more viable than wind and hydro energy generation. As given in
the 2017/18 IDP of the WRDM, different CE projects, such as a biogas project, solar park project and landfill gas project,
have been introduced since 2017 [39], such as the Merafong Solar Cluster project, which is funded by the Gauteng
Infrastructure Financing Agency (GIFA). To promote sustainable economic growth in the municipality and support the
Gauteng green strategic programme, WRDM’s green IQ strategy was proposed to cover the following five pillars:
• People: The goal is to create a place where people come first; a place characterised by equity, dignity and
possibility.
• Economy: The economy will be re-structured to seize the opportunities of tomorrow, to foster local resilience.
• Environment: The WRDM will ensure that natural resources are available for future generations by creating a low-
carbon built environment dedicated to quality of life.
• Energy: The WRDM will facilitate the creation of new, IPPs to generate renewable, affordable and reliable energy
to power new industries and create competitive advantages.
• Innovation: The WRDM will establish itself as a centre of excellence in green technology and green living and will
attract the best minds.
The mechanisms and business models to deliver CE technologies are summarised in the following sections.
4.1 LEGISLATIVE MECHANISMS FOR CE TECHNOLOGIES.
In this section the legislative mechanisms in place to enable the CE market are detailed.
4.1.1 Renewable energy power plants
In South Africa, RE power plants are classified into two groups relating to generation capacity, namely large-scale
(more than 1 MW capacity) and small-scale (no more than 1 MW capacity). In respect of these two groups, the applicable
standards and codes of RE power plants are provided in Figure 13. The links of applicable standards and codes are
provided in Appendix C.
4. MECHANISMS AND BUSINESS MODELS IN THE CLEAN
ENERGY MARKET
Figure 13. Applicable standards and codes
Large-scale renewable energy power plants
Large-scale power plants in South Africa are enabled mainly through the REIPPPP, coordinated by the IPP office, which
sits within the department of Energy. The IPP office’s procurement process is shown in Figure 14 [40].
Figure 14. IPP office procurement process
Electricity Regulation Act and Amendment Act (2006)
South African Distribution Code (2014)
South African Grid Code (2008)
South African Renewable Power Plants Grid Code (2014)
SANS 10142-The Wiring of Premises (2017)
SANS 474-Code pf Practice for Electricity Metering (2009)
NRS 048-Electricity Supply (2003)
NERSA licensing policy
Environmental Management Act (1998) NRS097-2: Grid interconnection of embedded
generation (2010)
Municipality Electricity By-laws
GENERAL STANDARDS AND CODES
LARGE SCALE SMALL SCALE
RFP (Request
for proposals)
Bid
submissions
Financial
close
Grid
connection
and operation
Preferred
bidder
announcement

Besides the standards and codes given in Figure 13, the local content and other economic development plans are
required as part of the bid submission phase. In the REIPPPP, the local content is defined as all raw/unworked steel and
aluminium used in local manufacture of components, regardless of source, deemed local. Bidders also have to disclose
costs between ‘key components’ and ‘balance of plant’. Details of economic development criteria are given in Table 7
[41] [40].
Table 7. Economic development criterion
Element Description Threshold Target
Job creation
RSA Based employees who are citizens 50% 80%
RSA-based employees who are black people 30% 50%
Skilled employees who are black people 18% 30%
RSA-based employees who are citizens and from local
communities
12% 20%
RSA-based citizen employees per MW of contracted capacity N/A N/A
Local content Value of local content spending 40%-45% 65%
Ownership
Shareholding by black people in the seller 12% 30%
Shareholding by local communities in the seller 2.5% 5%
Shareholding by black people in the construction contractor 8% 20%
Shareholding by black people in the operations contractor 8% 20%
Management control Black people in top management 40%
Preferential procurement
BBBEE procurement 60%
QSE & SME procurement 10%
Women-owned vendor procurement 5%
Enterprise development
Enterprise development contributions 0.6%
Adjusted enterprise development contributions 0.6%
Social economic
development
Socio-economic development contributions 1% 1.5%
Adjusted socio-economic development contributions 1% 1.5%
Small-scale renewable energy power plants
The small-scale power plant in South Africa is constructed within municipality-set frameworks and by the private sector.
The general application process of the installation of SSEG in municipalities is shown in Figure 15 [42]. Within the SSEG
framework, a customer purchases electricity from the municipality at a set price, as usual, and any electricity generated
by the customer that is fed back to the grid is credited at a certain rate1
, on condition that the consumer remains a net-
importer from the municipal grid.
1
This is determined independently by each municipality
Figure 15. General application process of SSEG installation
4.1.2 EEDSM activities
As depicted in Section 3, several policies, strategies and standards are introduced by public authorities with the intent to
promote EE and a sustainable economy in South Africa. The general process of implementing EEDSM activities is shown
in Figure 16.
Figure 16. General process of EEDSM activities implementation
As shown in Figure 16, five phases are involved in the process. The descriptions of the phases are provided below.
• Energy audit: The purpose of an energy audit is to determine the baseline energy consumption of an existing
facility.
• EE proposal: In this phase, the EEDSM activities are designed relating to the outcome of the energy audit.
• Installation and operation: The EEDSM activities are implemented during this phase.
• Measurement and verification (M&V): The achieved energy saving is measured and verified by M&V activities in
accordance with national standard SANS 50010.
• Project close: The project is completed and closed in this phase.
During the installation of EEDSM activities, different SABS standards should be followed with regard to the type of
EEDSM activities. The SABS standards can be obtained from the bureau’s website2
.
4.2 BUSINESS MODELS FOR CE TECHNOLOGIES
To date, different business models have been developed to promote CE technologies in South Africa. Five typical business
models are shown in Figure 17 [43].
2
SABS website: www.sabs.co.za
Application
submission
Energy audit
Municipality
evaluation
EE proposal
Measurement
& verification
Project closeInstallation &
operation
Installation &
operation
InspectionApplication
approval
Final
connection

The details of each business model are provided in the following [43]:
4.2.1 End-user EG
In this business model, a client from the public or private sector constructs and owns the embedded generation facility.
For example, rooftop solar PV systems on buildings, or generating biogas using biomass, would be an attractive option
for a client. The cost of construction and maintenance of an EG facility can be obtained through debt, grants and a client
balance sheet. An example of an end-user EG business model in Gauteng is given below [43].
Figure 17. Schematic of CE and EEDSM business models
The Northern Works Biogas-to-Energy Project, completed in 2012, was built as well as operated by a project
developer, WEC Projects, on behalf of Johannesburg Water. The plant produces electricity and heat from biogas
(collected from digesters) using cogeneration (or combined heat and power) gas engines. The electricity is
produced for own use within the wastewater treatment facility. At present, the plant is capable of producing 1.1
MW, which provides 10% of the energy requirements of the plant.
4.2.2 Distributed, standalone power plant
A client from the public sector constructs and owns the standalone power plant. Historically, a number of municipalities
have experience of applying this model, owning and operating power plants. (An example is the Kelvin coal-fired power
plant in Johannesburg, which was later sold to a private entity. CoJ, via City Power subsequently entered into a long-
term PPA with that private entity). The cost of construction and maintenance of a standalone power plant can be funded
through debt, grants and building-operate-own-transfer agreements. An example of a distributed, standalone power
plant model in Gauteng is given below [43].
• Suitable for public and private sctors
• Suitable for solar PV, hydropower and bioenergy system
• Financing through balance sheet, debt and grants
• Suitable for public sector
• Suitable for solar PV, bioenergy system
• Financing through debt/grants, building-operate-own-transfer
agreement
• Suitable for public sector
• Suitable for solar PV, bioenergy system
• Purchase based on feed-in tariff
• Suitable for public and private sector
• Suitable for solar PV, hydropower and bioenergy system
• Purchase based on a power purchase agreement (PPA)
• Suit for public and private sector
• Billing based on achieved energy saving
End-User Embedded Generation
(EG)
Distributed, Standalone Power
Plants
Procuring electricity from EG
Procuring electricity from IPP
Implementing EEDSM activities
4.2.3 Procuring electricity from EG
A client from the public or private sector purchases electricity from an embedded generation service provider based on
the feed-in tariff in this business model. This business model is nascent but rapidly expanding in South Africa. It aims to
extend the installation of embedded generation to the public and private customers (both residential and commercial).
It focuses on the potential to roll out SSEG on consumer’s property and turn consumers into producers (also known
as prosumers). The economic viability of the business model is predominantly ensured by indirect benefits, such as
customer retention and the postponement of grid investment. According to information provided in Section 3.3, different
municipalities, such as Johannesburg and Tshwane, have implemented feed-in tariffs for SSEG. Other municipalities in
Gauteng province are also working on this matter.
4.2.4 Procuring electricity from IPPs
A client from public or private sector can purchase electricity from an IPP through a 20-year PPA in this business
model. IPP plants provide long-term certainty to consumers in terms of production and tariffs. The size of the projects
would potentially limit the scope of the business model to large and medium-sized municipalities, in terms of electricity
requirements. The municipality needs to secure long-term uptake and managerial capacity. This business model
presents strong advantages from a financial perspective, since it would not entail any capital outlay on the part of
the municipality. While this business model has several advantages, the regulatory risks block this model from being
used in South Africa. Currently, Eskom is designated as the ‘central buyer of power’ from IPPs according to REIPPPP,
preventing municipalities from tapping into this business model. The client in the private sector can, however, purchase
electricity from an IPP through this business model according to a wheeling agreement between the client, municipality
and Eskom, as has been demonstrated via the Bio2Watt project in Bronkhorstspruit.
4.2.5 Implementing EEDSM activities
Generally, a client can implement EEDSM activities while the cost of implementation is paid by an energy performance
contract. An energy performance contract refers to the practice of requiring an energy management service provider to
guarantee that the full costs of a suite of EE interventions that it implements will be repaid through the energy savings
that result from the interventions. The typical implementation of an energy performance contract involves the service
provider raising the funds to undertake the implementation of energy-saving interventions on behalf of its client. Once
the implementation of interventions is complete, the service provider is paid by the client out of the monthly savings
verified by M&V activities. Payments continue until a specified contract period is over. In this form of energy performance
contracting, the client is not required to pay for the cost of the interventions at the outset. In addition, the client only pays
from the savings achieved. Hence, in cases where the savings are less than expected, the client is not required to top up
the payments and the service provider suffers the financial consequence of non-performance.
To promote CE and EEDSM technologies, different funding schemes are available in South Africa. A summary of the
funding schemes is provided in Appendix C.
In 2007, EMM established its Energy and Climate Strategy objectives, including the target of achieving 10% green
energy supply by 2020. As part of this strategy, the city built, in 2014, the Simmer and Jack landfill site gas-to-
electricity grid-tied power plant with a capacity of 1 MW. The project is owned, developed and financed entirely
by the EMM. The funds came from the municipality’s capital expenditure budget. All the electricity generated by
the landfill gas-to-electricity plant feeds back into the municipal grid. More recently, in September 2016, a tender
was issued by the City of Ekurhuleni for project proposals under the Ekurhuleni Energy Generation Programme.
Projects will be offered under a power purchase agreement of at least 20 years.

In this section, the CE market potential is evaluated based on the CE target and electricity consumption of Gauteng and
South Africa in 20253
.
5.1 GAUTENG POTENTIAL MARKET
As given in the draft Gauteng State of Energy Report, the electricity consumption and renewable generation of Gauteng
in 2017 were 57.550 TWh and 0.1 TWh, respectively [1]. Figure 18 shows a forecast of electricity consumption from 2018
to 2025 under a business as usual scenario based on an average provincial GDP growth of 1.5% and projection method
given in the draft Gauteng State of Energy report [1].
5. CLEAN ENERGY POTENTIAL MARKET IN GAUTENG
Figure 18. Estimated electricity demand for 2018-2025
Figure 19. Estimated electricity supply mix for 2018-2025
3
Date of 2025 selected due to availability of data for modelling purposes
As shown in Figure 18, the electricity consumption of Gauteng in 2025 may increase by 12.6% from 2017 levels, if the
average provincial GDP growth is 1.5%. In alignment with the RE targets provided in GESS 2016 and GSP 2011, the
potential energy supplies by RE and non-RE in Gauteng from 2018-2025 are shown in Figure 19. The potential energy
supplies by RE and non-RE are estimated based on the projected electricity demand given in Figure 18 and the estimated
average RE capacity increase rate of 2% per year.
As shown in Figure 19, RE generation in Gauteng in 2025 could potentially grow to 10.373 TWh. There is a significant
potential CE market in Gauteng compared with the current RE generation of 0.1 TWh in 2017. The interim provincial
minimum electricity saving targets per sector by 2025 were set by the Gauteng provincial government in the GIES 2010
report and are shown in Figure 20.
Figure 20. Electricity saving target per sector for 2025
To achieve the electricity saving target of Gauteng in 2025, the potential CE and EEDSM interventions are given in Table
8. The electricity saving target in Table 8 is estimated based on the values given in Figure 20.
Table 8. Potential CE and EEDSM interventions per sector [5] [18]
Sector
Electricity saving
target (TWh)
Potential intervention
Residential 10.342
Lighting retrofitting, fuel switching, rooftop solar PV, alternative water-heating
system retrofitting (solar PV, heat pump)
Industry 3.579
Lighting retrofitting, motor upgrading, alternative water heating system
retrofitting (solar PV, heat pump), rooftop solar PV, solar park, bioenergy,
heating, ventilation and air conditioning (HVAC) upgrading
Commercial 2.556
Lighting retrofitting, HVAC upgrading, solar water heating retrofitting, rooftop
solar PV.
Transport 0.614 Bioenergy, CNG, hydrogen fuel cells
Government 0.511
Lighting retrofitting, motor upgrading, solar water heating retrofitting, rooftop
solar PV, solar park, bioenergy, conduit hydropower.
Overall 17.602
0%
54.000
15%
60.000
0.1
57.45
25%
64.000
35%
10%
58.000
5%
56.000
20%
62.000
30%
66.000
40%
Residential
2018
58.413
59.289
60.179
61.081
61.998
62.928
63.872
64.830
2020 2022 20242019 2021 2023 2025
Government Commerce Industry Transport
Electricity Saving Target
Estimated Electricity Demand
2020
2022
2024
2019
2018
2017
2021
2023
2025
1.168
2.372
3.611
4.887
6.2
7.551
8.942
57.245
56.918
56.568
56.195
55.798
55.376
54.93
54.457

5.2 GAUTENG POTENTIAL SHARE OF THE NATIONAL MARKET
The Gauteng province’s potential share of the national market in 2025 is provided in Figures 21 and 22 with regard to RE
generation and EEDSM activities.
Figure 21. RE generation for 2025
Figure 22. EEDSM potential for 2025
As shown in Figure 21, Gauteng province could potentially contribute 10.373 TWh of renewable generation capacity to
national renewable generation by 2025. The Gauteng renewable generation capacity is estimated based on the projected
electricity consumption of Gauteng and the RE share target provided in GESS 2016 and GSP 2011. The national renewable
generation capacity is estimated based on the projected electricity consumption in 2025 and electricity supply mix plan
in the draft IRP 2016. According to information given in Table 8, Gauteng province will potentially contribute 17.602 TWh
of energy saving to national energy saving in 2025. The national and Gauteng province energy saving potential is provided
in Figure 22. The national energy saving potential is estimated based on the projected electricity consumption in 2025
and national electricity saving target in post-2015 NEES.
5.3 MARKET POTENTIAL PER TECHNOLOGY
The market potentials of different CE technologies are provided in Table 9. The technical potential per technology and
investment potential is estimated based on the projection given in Section 5.1 and available information yielded by a
study conducted by the University of Pretoria [5] and the CoT State of Energy report [44] .
Table 9. Market potentials per CE and EEDSM technologies
Technologies Technical potential (TWh) Investment potential (Rand)
Solar PV 9.67 44.2 billions
Bioenergy 0.66 1 billion
Hydropower 0.04 0.152 billions
EEDSM 17.60 2.6 billions
According to Table 9, solar PV is the most attractive CE technology for the province in terms of technical and investment
potential. It can provide significant RE generation capacity compared with other RE generation technologies in Gauteng
and attract considerable investment from investors.
Gauteng Other Provinces
Gauteng Other Provinces
10.373
26.175
17.602
51.015
RE Genration (TWh)
EEDSM Potential (TWh)

In this section, a value chain analysis of the CE sector is provided in three parts. The first part is related to utility-scale
CE interventions, which represent CE interventions with more than 1 MWp generation capacity. The second part is for
small-scale, embedded CE interventions, which represent interventions with less than 1 MWp generation capacity. The
third part is for EEDSM interventions.
6.1 VALUE CHAIN ANALYSIS FOR UTILITY-SCALE CE INTERVENTIONS
As shown in section 2, solar PV, hydropower and bioenergy systems are identified as the main potential CE interventions
in the Gauteng province. Therefore, the value chain of utility-scaled solar PV system and bioenergy is analysed as an
example of utility-scale CE interventions.
6.1.1 Utility-scale solar PV system
The value chain of utility-scale solar PV systems is shown in Figure 23
6. VALUE CHAIN ANALYSIS
Figure 23. Value chain of utility-scale solar PV systems
Cells
Inverters
Cables
Modules
Site Selection
Site lease
permit
PPA
Engineering
design
Procurement
Construction
Operation
Routine
Maintenance
Equipment overhaul
Recycling and
disposal of the
solar panels
Job Creation
(2.75 jobs per
MW)
Job Creation
(2-20 staffs)
Job Creation
(7 jobs per
MW)
Job Creation
(0.7 jobs per
MW)
Job Creation
(no data)
All skills level
High and
medium skill
development
All skills level All skills level All skills level
Manufacturing
and distribution
Project
Development
EPC
Operation &
Maintenance
End of life
activities
As shown in Figure 23, a utility-scale solar PV system’s value chain consists of five distinct parts. Details of each part
are given below.
Manufacture and distribution
Stakeholders in manufacturing and distribution are responsible for manufacturing and distributing equipment that is
used in large-scale CE components such as PV modules, cables, glasses, inverters and cells. These stakeholders play
a large role in dictating the technology partners that will constitute a project and may also play the role of operation and
maintenance (O&M) management. In South Africa, several local manufacturing companies have been established in the
Western Cape, Eastern Cape and KwaZulu-Natal; since 1996, such as AGE Technologies, Canadian Solar Inc., Tenesol SA,
Hellerman Tyton (Pty) Ltd, Solairedirect, SetSolar, ArtSolar and Black lite Solar. With regard to job creation, the estimated
job creation factor in the manufacturing and distribution part is 2.75 jobs per MW [45] . The jobs cover workforces at all
skills levels [46].
Project development
Stakeholders in the project development are responsible for activities including site identification and evaluation, system
performance estimation, environmental and grid connection studies, permit and license acquisition, bid applications
and community negotiations [47]. The jobs involved in this part cover high and medium skills levels in the workforce [46].
Normally project development companies have two to 20 permanent members of staff [47].
Engineering, procurement, and construction
Stakeholders in engineering, procurement and construction (EPC) are responsible for managing the various sub-
contracts in the construction phase of a project and may also be involved in the design and development phases of the
project [47]. Regarding job creation, the estimated job creation factor in the EPC part is seven jobs per MW [45]. The jobs
cover all skills levels in the workforce [46].
Operation and maintenance
Stakeholders in O&M are usually the main equipment suppliers or a technical entity well-versed in a specific technology.
They are responsible for operation (in the case of solar PV, this is likely to be remote) and routine maintenance, as well
as minor and major equipment overhauls [47]. Regarding job creation, the estimated job creation factor in the O&M part
is 0.7 jobs per MW [45]. The jobs cover all skills levels in the workforce [46].
End of life activities
The end of life cycle activities include recycling and safe disposal, considering the environmental impact of rare earth
materials in solar cells and solar panels after their end of life. The jobs cover workforces at all skills levels.
6.1.2 Utility-scale bioenergy system
The value chain of utility-scale bioenergy systems is shown in Figure 24.
Figure 24. Value chain of utility-scale bioenergy systems
Collection
and storage
Shredding
Segregation
Drying
Combustion
Gasification
Pyrolysis
Anaerobic digestion
27.6 jobs per
MW
no data
LANDFILL GAS: Manufacturing 40
jobs per MW, Construction 12 jobs
per MW and O&M 36 jobs per MW.
GASIFICATION/PYROLYSIS:
Manufacturing 33.33 jobs per MW,
Construction 20 jobs per MW and
O&M 2.08 jobs per MW
COMBUSTION: Manufacturing 5 jobs
per MW, Construction 11.25 jobs per
MW and O&M 2.5 jobs per MW
ANAEROBIC DIGESTION:
Manufacturing, Construction and
O&M 7 jobs per MW
Biomass/
biomaterial
Procurement
Biomass/
biomaterial
Processing
Power
generation

As shown in Figure 24, a utility-scale bioenergy system’s value chain consists of three distinct parts. Details of each part
are given below.
Waste procurement
Potential bioenergy resources in Gauteng comprise agricultural crops, domestic solid waste, domestic waste water,
sawmill waste and purposely cultivated crops [48]. Stakeholders in waste procurement are responsible for procurement
and storage of biomass resources. In some instances, pre-treatment of biomass materials may be required during the
waste procurement process. In some instances the biomass would be free, but there could be logistical costs for the
stakeholders. Regarding job creation, the estimated job creation factor in waste procurement is 27.6 jobs per MW [46].
The jobs cover all skills levels in the workforce, especially semi-skilled and unskilled individuals [46].
Waste processing
Activities in this project phase include shredding, segregation and drying of material. Potential types of jobs in waste
processing include project designer, technician and lawyer, etc. [46]. Currently no data is available on job creation for
waste processing in South Africa.
Power generation
Stakeholders in the power generation stage are responsible for generating electricity through different bio-products
such as landfill gas and heat from combustion. In many South African cities it is common practice to vent landfill gas
on site, which causes global warming and affects the air quality of surrounding communities – a catalyst of poor health.
Power generation from landfill leads to carbon reduction and mitigates GHG from landfill sites. Combusting different
biomaterials directly or indirectly produces heat energy, which can be channelled towards steam production for power
generation, thus to some extent substituting the use of coal.
6.2 VALUE CHAIN ANALYSIS FOR EMBEDDED CE INTERVENTIONS
The value chain of embedded CE interventions is given below in relation to solar PV and hydropower.
6.2.1 Embedded solar PV
In this section, the value chain of solar PV systems for residential, commercial and industry sectors is shown in Figure 25.
Figure 25. Value chain of embedded solar PV system
Cells
Inverters
Cables
Modules
Financing
Hiring EPC
contractor
Site identification
and evaluation,
client needs
analysis, energy
modelling, design,
installation,
commissioning &
permitting
Daily monitoring,
annual servicing,
training to owner’s
enginner on
basic operations
& emergency
procedures
Recycling and
disposal
Job Creation
(2.75 jobs per
MW)
Job Creation
(2.75 jobs per
MW)
Job Creation
(2-20 staffs)
Job Creation
(7 jobs per MW)
Job Creation
(no data)
All skills level
Skills
developed
similar to
utility-scale
solar PVs
Skills developed
similar to utility-
scale solar PVs
Skills developed
similar to utility-
scale solar PVs
Skills developed
similar to
utility-scale
solar PVs
Manufacturing
and distribution
Project
Development
EPC
Operation &
Maintenance
End of life
activities
As shown in Figure 25, an embedded solar PV system’s value chain comprises five distinct parts, since the responsibilities
of manufacture in different sizes of solar PV are the same. Details of each part are given below.
Project development/ system and technology integrator
Considering that embedded solar PV projects are of considerably smaller size than utility-scale projects, stakeholders
in the project development of embedded solar PV system are responsible for securing financing and hiring an EPC
contractor only [47]. Potential types of jobs in the project development part include procurement professionals, project
designers and lawyers, etc. Regarding job creation, skills levels and type of jobs, these are similar to those in utility-
scale solar PV systems.
EPC/installer
Stakeholders in the EPC or installer are responsible for site identification and evaluation, client needs analysis, energy
modelling, design, installation, commissioning and permitting (for example obtaining permission to connect to the
municipal grid) [47]. Regarding job creation, skills levels and type of jobs, these are similar to those in utility-scale solar
PV systems.

O&M
Stakeholders in the O&M of embedded solar PV systems are usually responsible for daily monitoring of plant performance
and annual servicing. EPC contractors or installers of the system would typically provide training to the project owner’s
engineer in basic operations, emergency procedures, safety instructions and cleaning of solar arrays. For a small-scale
embedded solar PV system, maintenance is generally done by the owner of the building or property where the system
is installed. Annual maintenance may be conducted by the installer. Regarding job creation and skills levels, these are
similar to those in a utility-scale solar PV system.
End of life activities
The end of life cycle activities include recycling and disposal of the solar panels when they cannot be operated, maintained
and repaired anymore. In terms of job creation, no data is available on the end of life activities for solar panels. The jobs
cover workforces at all skill levels.
6.2.2 Embedded hydropower system
In this section, the value chain of embedded hydropower systems is detailed. The value chain is depicted in Figure 26.
Figure 26. Value chain of embedded hydropower system
Turbine
Generator,
Hydro-
mechnical
components
Site
investigations
Feasibiliy analysis
Land
agereements
Environmental
& social
assessment
Licencing
Construction
Commissioning
Operation
Maintenance
No data
No data
Construction -
18 job per MW
O&M - 1 jobs
per MW
All skills level All skills level All skills level All skills level
Manufacturing
and distribution
Project
Development
Construction,
installation
O&M
Equipment manufacture and distribution
During this stage, research and development expertise are required to identify the best technologies and materials to
use for various hydropower technologies. Design and manufacturing of equipment such as turbines, generators, hydro-
mechanical components (e.g. valves, penstocks), electrical components (e.g. transformers, power, electronics, etc.),
governor and control systems are required. In terms of job creation, no data is available; however, jobs cover workforces
at all skill levels.
Project development
The development phase requires expertise for the design of power plants. Site investigations and feasibility studies are
crucial to identify potential challenges during construction and relevant mitigating strategies. It is also a requirement for
environmental and social assessments to be conducted. Land agreements also have to be completed to establish value
for lending institutions. The project owner is responsible for sourcing of finance from any of the following entities: private,
public, new forms such as crowd-funding, cooperatives, etc. Sourcing for suppliers creates value chain opportunities for
local suppliers of electrical, construction and mechanical parts and services.
Construction and installation
During project construction, expertise is required in civil, electrical and mechanical work. The experts are responsible
for the construction of dams and waterways and combining system components to generate power. The experts are also
responsible for ensuring the start-up and monitoring of the whole power-generation system. The construction phase
creates 18 jobs per MW [49]. The jobs cover workforces at all skills levels.
6.3 VALUE CHAIN ANALYSIS FOR EEDSM INTERVENTIONS
The value chain of EEDSM interventions is shown in Figure 27. Since the job creation particulars of EEDSM in South Africa
are not available, the estimated job creation of EEDSM activities of 0.6 jobs/GWh in Germany is used in this report [50].
Figure 27. Value chain of EEDSM interventions [51]
Energy audit
Development
of EEDSM
interventions
Installation
Physical and
operational
verification
Funding
Supply chain
High and
medium skill
Operation
Maintenance
All skills level All skills level
Energy audit Technical design Installation O&M M&V Finance
The groupings and functions of the main stakeholders are explained below [51].
• Consultants: include energy auditors, planning engineers, certified measurement and verification professionals,
accountants, lawyers and other professional bodies that provide guidance.
• Technology suppliers: provide hardware such as lighting, motion sensors, smart meters or systems, or software
such as energy accounting or management packages and related operation and maintenance services, including
software updates.
• Energy services companies (ESCos): provide performance-based energy services. In general, ESCos act as
project developers for a comprehensive range of energy conservation measures and assume the technical and
performance risks associated with a project.
• Engineering procurement contractors (EPC): undertake design, procurement, and installation of EEDSM
interventions.

6.4 JOB CREATION IN GAUTENG’S CE MARKET
Potential job creation of Gauteng’s CE market is given in Table, 10 according to the potential CE market highlighted in
Section 5. The technical potential per technologies is obtained from Table 9. Since the job potential per stage of value
chain of renewable generation is given in terms of capacity (MW), the estimated load factors per technology are used
to convert capacity to electricity produced (TWh). As given in [52], the estimated load factors of solar PV and bioenergy
are 0.3 and 0.8, respectively. The load factor of hydropower is estimated as 0.33 [53]. Potential types of job per CE
interventions are given in Table 14 [46]. To realise the potential type and number of job given in Tables 10 and 11, the
provincial target given in section 5 must be met by 2025.
Table 10. Potential job creation of CE interventions
Technology
Technical
potential
(TWh)
Capacity
potential (MW)
Manufacturing
potential
(jobs)
EPC potential
(jobs)
O&M potential
(jobs)
Sub-total
(jobs)
Solar PV 9.673 3681 61 837 25 765 2 577 90 178
Bioenergy 0.665 95 3 796 1 898 6 035 11 729
Hydropower 0.040 14 N/A 249 14 263
EEDSM 17.602 10 561 10 561
Total 112 468
Table 11. Potential job creation areas of CE interventions
Technology Value chain Stage Managerial Technical Engineering Legal Manual Financial
Utility-
scale solar
PV
Manufacture and distribution Y Y Y Y
Project development Y Y Y Y Y
EPC Y Y Y Y
O&M Y Y Y
End of life activities Y Y Y Y
Utility-
scale
bioenergy
Biomass
/biomaterial procurement
Y Y Y Y
Biomass
/biomaterial processing
Y Y Y Y
Power generation Y Y Y Y Y Y
Technology
Value chain
Stage
Managerial Technical Engineering Legal Manual Financial
Embedded
solar PV
Project
development /
STI
Y Y Y Y Y
EPC Y Y Y Y
O&M Y Y Y
End of life
activities
Y Y Y Y
Embedded
hydropower
Equipment
Manufacture
and Distribution
Y Y Y Y
Project
Development
Y Y Y Y Y
Construction
and O&M
Y Y Y Y
EEDSM
Energy audit Y Y Y
Technical design Y Y Y
Installation Y Y Y Y
O&M Y Y Y
M&V Y Y Y
Finance Y Y

Based on the stipulated market potential in Gauteng given in Section 5, we foresee the opportunities for small, micro
and medium enterprises (SMMEs) discussed below.
7.1 OPPORTUNITIES FOR SMMES INVOLVED IN RE INTERVENTIONS
As the costs of CE technologies continue to decline, a recent study, “Least-cost electricity mix for South Africa
- Optimisation of the South African power sector until 2050”, conducted by the Council for Scientific and Industrial
Research (CSIR), demonstrated a significant shift in the structure of the country’s generation mix [54]. The scenario
presented by the CSIR demonstrates a cheaper electricity future compared to the forecast in the draft IRP 2016, based
on significant revision of price assumptions for CE technologies and the country’s excellent RE resources. Such a future
holds considerable opportunities for localisation of technologies. The opportunities for SMMEs involved in the RE
interventions are given below.
7.1.1 SMME opportunities in manufacturing stage
SMMEs can design, manufacture, assemble or supply CE equipment parts, especially for solar PV systems. These include
commonly used components, PV modules, mechanical components (e.g. valves, penstocks) and electrical components
(e.g. transformers, power electronics, etc.). Since the REIPPPP started in 2011, local content has been a prerequisite
for a successful bid. Since the second bidding round of the REIPPPP, solar PV modules, inverters and metal structures
used in solar PV plants have been prioritised for local manufacturing in South Africa. Promoted by this programme,
different manufacturing facilities have been built already, such as the Jinko solar factory (Cape Town) and the ILB Helios
factory (East London). Potential components of solar systems that can be supplied by SMMEs are shown in Figure 28.
Currently, there are no viable opportunities for SMMEs to establish a solar PV panel factory, since several have already
been set up in the country, all facing fierce competition from global suppliers. The opportunities that exist in component
manufacturing are enabled by the incentives listed below:
• The Black Industrialist Programme in the Department of Trade and Industry (the dti). [55]
• Manufacturing competitiveness enhancement programme (MCEP) – also in the dti. [56]
• Support programme for industrial innovation (SPII) funding – also in the dti. [57]
• 12-B and 12-I tax incentives [57].
• Research and development (R&D) tax incentive programme [56].
Through the different business models given in the market assessment report, SMMEs can supply varied equipment to
CE and EEDSM project developers.
7. OPPORTUNITIES FOR SMMES
Figure 28. Opportunities for SMME in solar PV manufacturing [47]
• Magnetic and tranformer
• Enclosure and packaging
• Printed circuit board
• Testing facility
• Conductors
• Insulation
• Armour
• DC cable connectors
• Pole
• Cathode, anode
• Electrolytec
PV inverter
Cabling and supporting structure
Battery
7.1.2 Opportunities in the project development, construction and maintenance stages
Opportunities in the project development, construction and maintenance stages are shown in Figure 29. SMMEs
equipped with good knowledge of CE technologies can provide training services to those involved in the installations and
operations. The opportunities available in this stage are enabled by the incentives listed in Appendix C.
Figure 29. Opportunities for SMME in project development, construction and maintenance
• Enviromental and social assessment
• Design service
• Site inspection
• Financial and procurement service
• Independent power producer
• Installer
• Civil, electrical and mechanical workers
• Provision of security services
• Routine operation and mainentance
• Training
Project development
EPC/Installation
O&M
7.2 OPPORTUNITIES FOR EEDSM ACTIVITIES
To improve EE in South Africa, in line with the IRP 2010 and the NEES (2015), Gauteng previously introduced several
strategies and programmes to promote, organise and co-ordinate EE-related initiatives at province level, such as those
outlined in the Green Strategic Programme (GSP) for Gauteng (2011), Gauteng Climate Change Response Strategy (2011),
and Gauteng Energy Security Strategy (2016). Along with the considerable energy savings potential in each economic
sector of the province, this can foster the emergence of sustainable EE businesses at all levels, with possibilities for
start-ups and existing SMMEs to grow into sustainable businesses. The opportunities existing in this stage are enabled
by the incentives provided in Appendix C.
7.2.1 Opportunities in the energy service companies (ESCo) industry
ESCos develop, design, build, and fund projects that save energy, reduce energy costs and decrease operations and
maintenance costs at their customers’ facilities. According to a study conducted in 2012 by the Industrial Development
Corporation, South Africa’s ESCo industry is still in its early development. It consists, then, of a majority of small entities
(exceeding 400) and encompasses only a few significantly large ones. This contrasts sharply with developed countries
such as the United States, where the ESCo market is dominated by a few very large corporations. The South African
National Energy Development Institute has introduced an ESCo registration system to promote and develop the ESCo
market in South Africa. By 12 July 2018, only 33 ESCos had been registered in the system [58]. This, combined with the
configuration and size of Gauteng’s CE market, gives SMMEs in the sector a unique opportunity to contribute to shaping
the South African ESCo industry to the benefit of small players.
7.2.2 Opportunities in consulting services
Because of the lead role of the ESCo industry along the value chain and its current early development, most specialised
consulting services involved in the sector have not yet reached maturity. Consequently, fields such as energy auditing,
measurement and verification, legal advice in energy services, etc. still offer a wide variety of opportunities for South
African SMMEs.

7.2.3 Opportunities in technology supply and engineering procurement and contracting
The expansion of Gauteng’s CE market will increasingly represent a gold mine for companies involved in activities such
as design, manufacturing/assembly and supply of related technologies. This also applies to engineering procurement
contractors. Throughout the process of supply, implementation, operation and maintenance of CE technologies, modern
business strategies such as subcontracting and outsourcing will keep creating opportunities for SMMEs with the
required competencies.
There are numerous barriers for SMMEs to access the CE market. In this section, these barriers, identified by experts in
the CE market of South Africa and possible solutions to overcome them, are provided in Table 12.
Table 12. Barriers and solutions for SMMEs
8. BARRIERS AND CORRESPONDING SOLUTIONS FOR
SMMES
Value chain
component
Barriers Possible solution
Manufacturing
• Lack of awareness of funding for
manufacturing activities
• Lack of research and development
(R&D) capability
• Provincial government provide funding workshop or
seminar which packages funding opportunities and
incentives along the value chain to the SMMEs
• Closer collaboration between innovation support
mechanisms, such as The Innovation Hub, and
technology transfer offices (TTOs) in universities, to
commercialise innovative research
Project
development
• Bidding processes and requirements
are not favourable to SMMEs. For
example, the requirement of products
in some municipality tenders
are specially designed for large
companies
• Provincial government provide a guideline to help
municipalities develop favourable bid requirements for
SMMEs
• Lessons are to be learnt from the economic
development component of the REIPPPP which
strategically directs project weighting towards
spending on local content and employment
EPC
• Lack of monitoring of actual local
content procurement – which means
that SMMEs do not have enough
opportunities to get involved in
projects
• Relevant government entities should implement
necessary monitoring system for the CE market.
The possible monitoring activities include auditing of
financial statement of projects, necessary survey for
SMMEs, etc.

Value chain
component
Barriers Possible solution
End user
• The lack of skills among the
municipal staff. Most municipalities
do not have capacity to manage and
implement CE projects. This situation
results in the outsourcing of experts
who come with high costs.
• The multitude of needs facing the
local communities, the need to
balance between service deliveries
often forces local government to
minimize the funds allocated to clean
energy.
• Sustainability assessment of EEDSM
projects revealed in many cases that,
over a period of time, people often
reverted to inefficient technologies.
• Lack of awareness of information
of CE market for private sector. For
example, some property companies
are not aware of available CE
technologies and business models
• Provincial government to facilitate for municipalities to
access available technical training programmes
• Municipality should put additional incentives in place to
encourage the wheeling of electricity from embedded
power to the national grid and from renewable energy
power plants
• Provincial government/municipalities or private sector
should conduct the campaign to raise awareness for
the public: “do people know what clean energy is?”;
“what are the technologies involved?”; “what are the
gains?”; “what are the available business model” It will
increase the willing of utilising CE technologies and
EEDSM activities by end users.
• National government and municipalities should revise
the policies to encourage the installations of certain
technologies (solar PV and SWH) on the existing private
premises.
• Municipalities and private sector need to look for a
proper model that promotes clean energy uptake
by their customers without negative impacts on
municipality revenue from decreases in kWh sales.
Possible solutions may include the implementation of
municipality-owned mini grid in private premises.
[1] Gauteng, “Draft Gauteng State of Energy Report,” Gauteng, 2018.
[2]
Ju Xing, Chao Xu, Yangqing Hu, Xue Han, Gaosheng Wei, and Xiaoze Du, “A review on the development of
photovoltaic/concentrated solar power (PV-CSP) hybrid systems,” Solar Energy Materials and Solar Cells, vol.
161, pp. 305-327, 2017.
[3]
Independent Power Producer Office, “Independent Power Producers Procurement Programme (IPPPP): An
pverview, quarterly report,” IPPPP, June, 2017.
[4] “Solareff,” Solareff, [Online]. Available: http://www.solareff.co.za/projects/gauteng. [Accessed 2018].
[5]
I. Loots, M. van Dijk, S. J. van Vuuren, J. N. Bhagwan and A Kurtz, “Conduit-hydropower potential in the City
of Tshwane water distribution system: A discussion of potential applications, financial and other benefits,”
Journal of the South African Institution of Civil Engineering, vol. 56, no. 3, pp. 02-13, 2014.
[6] A. Kurchania, “Biomass energy,” Biomass Conversion, pp. 91-122, 2012.
[7]
Ekurhuleni, “Ekurhuleni turns waste into power,” infrastructure news, 19 May 2015. [Online]. Available: http://
www.infrastructurene.ws/2015/05/19/ekurhuleni-turns-waste-into-power/.
[8]
Norfund, “Bronkhorstspruit Biogas Plant Pty Ltd,” Norfund, [Online]. Available: https://www.norfund.no/
investmentdetails/bronkhorstspruit-biogas-plant-pty-ltd-article10611-1042.html. [Accessed 30 May 2018].
[9]
C. W. Gellings, “The concept of demand-side management for electric utilities,” Proceedings of the IEEE, vol.
73, no. 10, pp. 1468-1470, 1995.
[10]
B. Bekker, A. Eberhard, T. Gaunt and A. Marquard, “South Africa's rapid electrification programme: Policy,
institutional, planning, financing and technical innovations,” Energy Policy, vol. 36, no. 8, pp. 3125-3137, Aug.
2008.
[11]
Department of Energy, “White paper on renewable energy,” Department of Minerals and Energy, Republic of
South Africa, 2003.
[12] Department of Energy, “Biofuels Industrial Strategy,” Department of Minerals and Energy, 2007.
[13] Department of Energy, "Integrated resource plan", Pretoria, Gauteng, 2011.
[14] Economic Development Department, “New Growth Path,” Economic Development Department, 2011.
[15] Economic Development Department, “The Green Economy Accord,” Economic Development Department, 2011.
[16] The Presidency, “National Development Plan,” Department: The Presidency, 2012.
[17] Department of Transport, “National Transport Master Plan 2050,” Department of Transport, 2016.
[18] Department of Energy, “Post-2015 National Energy Efficiency Strategy,” Department of Energy, 2016.
[19] The Presidency, “National Energy Act,” Department: The Presidency, 2008.
[20] The Presidency, “Electricity Regualtion Act,” Department: The Presidency, 2008.
[21] A. Gxasheka, “Electricity regulation,” in SRESA Information Session, Pretoria, 2016.
[22] Department of Finance, “Draft Carbon Tax Bill,” Department of Finance, 2017.
[23] Gauteng Province, “Green Strategic Programme,” August 2011.
[24] Gauteng Province, “Gauteng Energy Security Strategy,” Department of Economic Development, Gauteng, 2016.
[25]
Gauteng Province, “Gauteng Climate Change Response Strategy,” Department of Agriculture and Rural
Development, Gauteng, 2011.
REFERENCES

[26] Ekurhuleni Metropolitan Municipality, “Energy and Climate Change Strategy,” 2007.
[27] City of Ekurhuleni, “2017/18 Integrated Development Plan,” City of Ekurhuleni, 2017.
[28] M. David and E. C. Limited, “City of Johannesburg State of Energy Report 2008,” May 2008.
[29] City of Johannesburg, “Climate Change Adaptation Plan,” City of Johannesburg, 2009.
[30]
City of Johannesburg, “Design Guidelines for Energy Efficient Buildings in Johannesburg,” City of Johannesburg,
2008.
[31] City of Johannesburg, “Energy Demand Side Management Policy,” 2014.
[32] NERSA, “Approved Tariffs in Gauteng Province,” NERSA, 2017.
[33] City of Johannesburg, “2017/18 Integrated Development Plan Review,” City of Johannesburg, 2017.
[34] City of Tshwane, “Tshwane Integrated Environmental Policy,” 2005.
[35] City of Tshwane, “Green Building Development Policy,” September 2009.
[36]
Sustainable Energy Africa NPC, “City of Tshwane State of Energy Report,” City sustainability unit, City of
Tshwane, 2016.
[37] City of Tshwane, “2018/19 Draft Review of The 2017/21 Integrated Development Plan,” City of Tshwane, 2018.
[38] Sedibeng Municipality, “2017-2021 Integrated Development Plan,” Sedibeng municipality, 2017.
[39] West Rand District Municipality, “Regional Growth and Development Strategy,” 2012.
[40]
IPP Office, “IPP project publications,” IPP Office, [Online]. Available: https://www.ipp-projects.co.za/
Publications.
[41] R. N. A. Eberhard, “REIPPPP review,” University of Cape Town, 2017.
[42] City of Tshwane, “Requirements for Embedded Generation,” City of Tshwane, 2016.
[43]
G.Montmasson-Clair, “New roles for South African Municipalities in Renewable Energy - A Review of Business
Models,” South African-German Energy Partnership, 2017.
[44] City of Tshwane, “State of Energy Report,” City of Tshwane, 2016.
[45]
J aia, T. Giordano, and N. Kelder, et al., “Green jobs: An estimate of the direct employment potential of a
greening South African economy,” Industrial Development Corporation, 2011.
[46]
I.-T. T. S. E. K. Thilanka M. Sooriyaarachchi, “Job creation potentials and skill requirements in, PV, CSP, wind,
water-to-energy and energy efficiency value chains,” Renewable and Sustainable Energy Reviews, vol. 52, pp.
653-668, 2015.
[47]
C. Ahlfeldt, “The localisation potential of photovoltaic PV and a strategy to support large scale rollout in South
Africa,” South Africa: WWF, SAPVIA, Department of Trade and Industry, Pretoria, 2013.
[48] South African Environmental Observation Network, “Feasibility Assessment: Summary,” 2015.
[49] Klunne, “Small and micro-hydro developments in Southern Africa,” energize, pp. 75-78, 2012.
[50]
Warwick Institute for Employment Research, “Assessing the employment and social impact of energy efficiency,”
Cambridge econometrics, 2015.
[51] GreenCape, “Energy Efficiency– GreenCape Market Intelligence Report 2015,” CapeTown, South Africa, 2015.
[52]
W.Blyth, J. Speirs, R. Gross, “Low carbon jobs: the evidence for net job creation from policy support for energy
efficiency and renewable energy,” in BIEE 10th Academic Conference, 2014.
[53]
Microhydropower, “Hydropower in South Africa,” microhydropower.net, [Online]. Available: http://www.
microhydropower.net/rsa/. [Accessed 19 06 2018].
[54]
CSIR, “Least-cost electricity mix for South Africa - Optimisation of the South African power sector until 2050,”
2017.
[55]
Department: Trade and Industry, “Black Industrialist Programme,” Department: Trade and Industry, [Online].
Available: http://www.dti.gov.za/economic_empowerment/Black_Industrialist.jsp.
[56]
Industrial Development Corporation, “Manufacturing Competitiveness Enhancement Programme
(MCEP),” [Online]. Available: https://www.idc.co.za/home/idc-products/special-schemes/manufacturing-
competitiveness-enhancement-programme.html.
[57]
Department of Trade and Industry, “Financial Assistance,” [Online]. Available: https://www.thedti.gov.za/
financial_assistance/financial_assistance.jsp.
[58]
SANEDI, “Tier Results,” SANEDI, [Online]. Available: http://www.sanediesco.org.za/tier-results. [Accessed 12
July 2018].
[59]
A.C. Brent, R. Wise and H. Fortuin H., “Viability of the South African biofuels industrial strategy,” International
Journal of Environment and Pollution, vol. 39, pp. 74-91, 2009.
[60] X. Xia and J. Zhang, “Energy audit—from a POET perspective,” in Int. Conf. on Appl. Energy, Singapore, 2010.

Gauteng city region clean energy market assessment report final 2

Gauteng city region clean energy market assessment report final 2

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Gauteng city region clean energy market assessment report final 2

Similar to Gauteng city region clean energy market assessment report final 2 (20)

More from Lordsview_industrial_park

More from Lordsview_industrial_park (8)

Recently uploaded

Recently uploaded (20)

Gauteng city region clean energy market assessment report final 2