Energy Efficiency – GreenCape Market Intelligence Report 2015

The 2015 GreenCape Market Intelligence Report provides an overview of the energy efficiency sector in South Africa, with a specific focus on the Western Cape. It details the drivers for energy efficiency—including constrained power supply and rising electricity costs—the roles of various service providers, the regulatory landscape, and the potential market size for Energy Service Companies (ESCos).

• South Africa's energy efficiency market is driven by a combination of high carbon emissions, constrained electricity supply, and significant price increases. Domestic electricity tariffs rose by 276% over five and a half years, increasing from 45 cents per kilowatt hour in January 2009 to 172 cents per kilowatt hour in July 2014.
• The National Energy Efficiency Strategy (NEES) 2005 established a national target to reduce overall primary energy consumption by 12% by 2015, with specific sector targets ranging from 9% for transport to 15% for the public sector, commerce, and industry.
• The energy efficiency service industry is composed of three primary provider groups: consultancy service providers (such as energy auditors and lawyers), technology suppliers (providing hardware and software), and Energy Service Companies (ESCos). ESCos operate via two main models: Energy Supply Contracting (ESC), delivering units of use energy in MWh, and Energy Performance Contracting (EPC), which focuses on energy savings against a baseline.
• While national market data is limited, a 2012 Industrial Development Corporation (IDC) study estimated the ESCo market could reach R8 billion per annum by 2022. Additionally, an International Finance Corporation (IFC) study identified the industry as having over 500 active companies, more than 1,500 employees, and annual investments between $365 million and $450 million.
• A study initiated by Eskom suggests that South Africa could achieve 12,933 MW of energy demand savings. The highest potential savings by technology are found in solar water heating (3,713 MW) and domestic cooking conversion (2,144 MW).
• In the Western Cape, the energy efficiency market is projected to reach R1.3 billion by 2019. This growth is expected to create approximately 1,000 job opportunities across equipment manufacturers, installation and maintenance contractors, and ESCos.
• The regulatory environment includes several compulsory specifications and standards. VC9006, enacted in February 2014, requires all domestic hot water cylinders to adhere to the SANS 151 standard. VC9008, enacted in April 2014, makes SANS 941 a compulsory standard for the energy efficiency and labelling of electrical and electronic apparatus.
• Funding for energy efficiency projects is available through various channels, including loans from commercial banks and the Green Energy Efficiency Fund, cash grants via the Manufacturing Competitiveness Enhancement Programme (MCEP), and tax deductions under sections 12I and 12L of the Income Tax Act.

APA

GreenCape (2015). Energy Efficiency – GreenCape Market Intelligence Report 2015. https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Market-Intelligence-Report-2015-Energy-Efficiency-3.pdf

Chicago

GreenCape. Energy Efficiency – GreenCape Market Intelligence Report 2015. 2015. https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Market-Intelligence-Report-2015-Energy-Efficiency-3.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Energy Efficiency – GreenCape Market Intelligence Report 2015 |date=2015 |url=https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Market-Intelligence-Report-2015-Energy-Efficiency-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2015energy, author = {{GreenCape}}, title = {{Energy Efficiency – GreenCape Market Intelligence Report 2015}}, institution = {GreenCape}, year = {2015}, url = {https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Market-Intelligence-Report-2015-Energy-Efficiency-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }