Energising South African Cities & Towns - City Energy Support Unit

Example of local authorityenergy use and cost‘The average travel time for a trip in1999 took 33% longer than it did for thesame trip in 1994’ – Joburg EconomicDevelopment PlanExample of local authorityelectricity consumptionby sectorand the primary planners and serviceproviders in the city. Energy costs alsodraw precious budgetary resourcesfrom other important municipalfunctions such as education, publictransport and health care.Energy is a variable cost, whichcan be controlled by cutting downon wasteful energy consumption –greater energy efficiency means lowerfinancial energy costs and improvedcompetitiveness.Local authorities that managetheir energy consumption effectivelyare also less vulnerable when energyprices rise. Using less energy meansreduced local pollutants and carbonemissions as well.Whatever the size or type of thelocal authority and the city or townit manages, everyone stands to gainfrom being more energy efficient. Itdelivers not only cost savings in theshort-term, but is important for thelonger term financial viability andcompetitiveness of local government,business and industry taking intoaccount factors such as reputation, riskmanagement, carbon managementand environmental responsibility.City management is complex, andcities worldwide are in crisis, financiallyand in terms of increasing inequity.An energy strategy is an excellentmanagement tool that reaches beyondthe boundaries of ‘the energy sector’– it presents an opportunity for localgovernment to take hold of its leadershiprole and to lead by example.INTEGRATED ENERGY PLANNINGIEP targets optimal efficiency and service provision in the energysector. This includes consideration of the broader concerns of theentire economy, not just a ‘least financial cost’ focus.Key characteristics of IEP for cities:• All energy sources and energy-related activities are considered asa whole systemDue to budget constraints, nationalgovernment proposed removing 20commuter rail sets from a city’s lines– this would have put 17 000 people onto the road in 3 000 minibus taxis.• Demand-side focus – since this is the reason for the existence ofthe energy supply industry• Demand-side management (DSM) is considered prior tosupply-side solutions• Supply-side options are evaluated in the light of the demands• Environmental and social costs are clearly considered• Energy sector linkages with the economy are includedThrough its Energy Strategy Process,Cape Town has already identifiedR12.8m of annual energy savingsthrough implementing efficiencymeasures in its waste water managementsystem, lighting in its buildingsand fleet management – maximumpayback period for these is five years.2 ENERGISING SOUTH AFRICAN CITIES & TOWNS