2006-11-02 - Energy efficiency will make South African industry "fit, in shape and trim" enough to meet future energy challenges, ABB sustainability affairs advisor, Anders Nordstrom, told 200 delegates at the Southern African Energy Efficiency conference in Johannesburg in mid-October.
Industries in South Africa and elsewhere are increasingly expected to reduce energy consumption in the face of rising costs and the pressure to minimize CO2 emissions.
That's precisely where ABB can help. "ABB sells energy efficiency," Nordstrom told delegates. "We help our customers make better energy efficiency choices to increase productivity and competitiveness."
Electricty costs in South Africa have been historically low, although prices are expected to rise as new sources of power generation are developed. Energy is one of industry's main raw materials, and energy efficiency is a key part of any solution to reduce costs and manage operations in an environmentally friendly way.
Major opportunity
An exhibition of energy-efficient technologies and solutions supported the conference, and ABB presented a selection of its energy-efficient products and systems. These included variable-speed drives, which can dramatically reduce the amount of electricity used by electric motors, and ABB's new buildng automation systems to control heating, ventilation, air conditioning and lighting in commercial buildings and industrial plants.
"Energy efficiency is in its infancy in South Africa because of historicallty low electricity prices due to the abudance of coal in the country," Nordstrom said after the convention. "ABB expects energy efficiency to be a major business opportunity here, and is preparing to meet a growing demand for energy-efficient solutions from our South African customers."
Energy-intensive economy
South Africa is among the most energy-intensive economies in the world. It has the 26th-largest economy by gross domestic product (GDP), yet it is the 16th-largest energy consumer and scores 13th in carbon dioxide emissions.
Mining and industry consume 40 percent of all energy in South Africa, followed by transport (28 percent) and households (17 percent). Energy-hungry industries in South Africa include mining (deep gold mines) and heavy industry (minerals processing, metals smelting and synfuel production) which dominate the economy, thanks to low-cost energy based on abundant coal reserves.
But growing concern over climate change has made energy efficiency in South Africa and elsewhere an important topic, both in public debate and policy making. Focus on the subject has had an effect: the production of a unit of GDP in developed countries requires 30 percent less energy today than it did in 1973, the result of productivity improvements and the development of more energy efficient and intelligent products.
Growing awareness
Even South Africa's historically high energy intensity has begun to decrease, as industry becomes more energy efficient. While the country needs energy to grow, in South Africa economic growth and energy reduction are no longer thought to be mutually exclusive.
Measures can be taken now, and energy savings and efficiency could begin to have an effect immediately. It starts with incentives: regulatory frameworks, pricing and carbon quotas working together to limit emissions. Also key is interconnection of energy systems, changing public consumption patterns, leading-edge energy-efficient technologies, renewable sources and stronger support for energy research and development.
The South African government has recognised the need to be more energy efficient and to reduce the economy's impact on the climate. Its energy-efficiency strategy, approved this year, sets a national target for energy-efficiency improvements of 12 percent by 2015.