Energy Efficiency – GreenCape Market Intelligence Report 2015

The South African energy efficiency market is driven by constrained electricity supply, rising tariffs, and government targets, such as the National Energy Efficiency Strategy (NEES) 2005 goal of reducing primary energy consumption by 12% by 2015. The market is served by consultants, technology suppliers, and Energy Service Companies (ESCos), with the latter's market estimated by the IDC to potentially reach R8 billion per annum by 2022. In the Western Cape, the market is projected to reach R1.3 billion by 2019, supporting approximately 1,000 jobs. Key challenges include accessing funding, though various tax incentives (e.g., S12I, S12L) and grants are available. The regulatory landscape is complex, involving multiple departments and standards (SANS) to mandate efficiency in buildings and appliances.

• South Africa's energy efficiency drive is motivated by a critical electricity supply crisis, characterized by rolling blackouts and low generation plant availability. Domestic electricity tariffs increased by 276% between January 2009 (45 cents/kWh) and July 2014 (172 cents/kWh).
• 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 industry, commerce, and the public sector.
• The energy efficiency service industry is composed of three primary provider types: consultancy service providers (auditors and engineers), technology suppliers (hardware and software), and Energy Service Companies (ESCos) that use Energy Supply Contracting (ESC) or Energy Performance Contracting (EPC) models.
• While national market data is limited, the Industrial Development Corporation (IDC) estimated the ESCo market could reach R8 billion per annum by 2022. An IFC study estimated annual savings of 8.7-10TWh and annual investments between $365m and $450m.
• In the Western Cape, the energy efficiency market is estimated to reach R1.3 billion by 2019, potentially creating approximately 1,000 jobs across ESCos, manufacturers, and contractors.
• Funding remains a major challenge, but options include the Green Energy Efficiency Fund, commercial bank loans, and tax deductions under the Income Tax Act (such as S12I for greenfield projects over R200 million and S12L for energy-efficient taxpayers).
• The regulatory environment includes compulsory specifications for domestic solar water heaters (VC9004), hot water storage tanks (VC9006), and the energy efficiency labelling of electrical apparatus (VC9008).

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} }