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Rolling out Change: Starting at the Governmental Level

ENERGY EFFICIENCY
Energy efficiency has to be the first intervention by businesses and households. As a
demonstration of leadership and commitment, the WCG has set an ambitious target
of electricity saving for its facilities. In addition, it is testing Rooftop Solar PV and new
delivery and financing mechanisms to support and speed up the necessary investment
in energy-efficient technology.
Efficient water heating is a critical component of energy efficiency. Households can
save on average 50% on their water heating bill if they install a solar geyser or heat
pump, and the payback period can be as short as three years. The WCG is launching
an extensive awareness campaign to make residents aware of the benefits of making
a switch.

ALTERNATIVE ENERGY

Alternative energy is another focus of the Game Changer. It is important for the Western
Cape to transition to clean energy sources such as wind and solar.

It is the intention of Western Cape municipalities to buy electricity directly from solar
and wind farms (also known as Independent Power Producers), because this power
is cheaper and cleaner and diversifies their energy mix. The WCG and the CCT are
engaging with national government to enable this process.

Another alternative to coal-fired power is natural gas. The Province is very keen on
introducing natural gas – also called Liquefied Natural Gas (LNG) in its liquid form – to
be landed in the Western Cape. Some benefits of using natural gas are listed below:

• It produces only 50% of the carbon emissions of coal, and its importation will therefore
contribute to our climate change targets.
• It can be used in a variety of industrial processes. It burns more cleanly than its
alternatives (such as coal and heavy fuel oils) and can be cheaper. If we wish to
promote industrialisation in the Western Cape, while at the same time avoiding
increased emissions, then natural gas is the better choice.

ROOFTOP SOLAR PV
Our strategy for rooftop solar PV is to promote significant take-up – first by businesses
and then by households. While there are a number of systems being installed, it is crucial
to our strategy to ensure that households and businesses stay on the grid and feed the
excess solar energy back into the grid. Feeding in benefits South Africa as a whole,
because the consumer continues to support grid maintenance and investment and
supplies additional electricity into the grid. Additional to this is the benefit of feed-in
compensation from the municipality for the consumer, which in turn contributes to their
investment in PV, thus making it more cost effective.

Cape Town was the first municipality in South Africa to receive approval from the energy
regulator (Nersa) for a feed-in tariff for rooftop PV, and through this Game Changer,
the WCG and its partner, GreenCape. Through a sector development agency that
supports businesses operating within the green economy in the Province – have worked
with other municipalities to put the legal frameworks and tariffs in place. The next effort
will be in assisting municipalities to establish the necessary application and approval
systems for rooftop PV.

22 QUARTERLY ECONOMIC BULLETIN 2016