M.Com. / The discovery of natural gas and condensate during the past 10 years off the South African south coast coincided with increased calls for sanctions and isolation of South Africa by the international community. The question was raised if the natural gas could not be used to diminish our dependancy on imported oil. After several studies to determine the feasibility of converting natural gas to fuel it was decided to proceed with the conversion project referred to as the Mossgas project. The purpose would be to produce offshore natural gas with the aid of fixed offshore platforms, linked to an onshore facility via pipelines, where it would be transformed into fuel using a process similar to the Sasol Synthol process. The purpose of the thesis is to determine the influence of factors assumed to have the greatest affect on the project, i.e. tax, loans, cost overruns and the production of by-products. To quantify these subjective criteria of the influence of the above factors, financial spreadsheets were designed utilizing the Lotus 123 software programme to evaluate the impact of the variables. A series approach to sensitivity analysis was followed, calculating most likely, highest and lowest outcomes for the different variables. A base case utilizing modified Mossgas cost figures was designed and subsequent spreadsheets to evaluate specific scenarios were developed. A base case was developed evaluating the land and offshore facilities as two separate projects, linked by a transfer price for gas. The price is determined to benefit both the land and offshore projects and designed to lead to equal profitability. Equity capital is assumed to be the only source of financing for the base case. Internal rate of return (IRR) was used as a decision-making criterion throughout the analysis...

This research investigates whether the South African Energy Regulator (NERSA) correctly prices the cost of equity, through looking at the petroleum storage sector. A model is built to simulate the current methodology for tariff setting and historical data is used to estimate the returns a regulated firm would have earned over the past 25 years. In addition, a benchmark cost of equity is calculated through a sample of US firms. Integrated firms are then decomposed to their revenue generating segments and cost of equity per segment is then estimated. The study finds that the methodology calculates a return lower than that earned by the market (measured through the J203). The study further finds that the risk to which the regulated company is exposed to, defined in terms of variability of retunes, is not significantly different than that of the market. Lastly, the study finds that the benchmark cost of equity is significantly higher than that calculated by the Regulator. Recommendation for Regulator consideration as well as for further research are provided. / Dissertation (MBA)--University of Pretoria, 2014. / lmgibs2015 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

Ph.D. (Energy Studies) / The underlying assumption of this thesis is that information is critical for effective energy policy support. The objectives set and attained for this study were to: • assess existing solutions to the problem of supplying energy information; • consider developments in integrated conceptual solutions to the problems; • identify and analyse data structures for providing a single integrated information system as a solution; • evaluate and identify local energy and economic data sources for input to the proposed system; • provide a framework for information outputs in such an integrated system; and • make recommendations on the practical implementation of the conceptual . solution. The concepts underlying the basic assumption, and other parameters were clarified in Chapter 1. In particular, the link between policy formulation, modeling, and data collection, management and dissemination was shown. A study and assessment of existing energy information systems was then carried out. This investigated national systems in South Africa and other countries, and the systems of three international organisations. The structure and management of these energy information systems was assessed, as was the degree to which each provided the necessary support for policy formulation. Legislation was, where applicable, also considered. It was determined from this study and assessment that there were no integrated information systems to provide adequate information for energy policy makers through a single access point. An integrated single access point system was postulated at the conceptual level in Chapter 3. The major contribution to this conceptualisation is the concept of a single standardised referential data set A single referential data set can be used to classify all data at every level of the proposed integrated national energy information system. This integrated approach supports policy formulation and allows for the most efficient use of national resources in maintaining information. The proposed system was considered as a data flow model, to provide an overview of the collection, processing and dissemination of data. Next, a system model was developed. This divided the system into two broad divisions: the central control functions, including the referential data set; and the data modules, which provide the structure for capturing and maintaining the collected data. The final stage in this chapter . was the development of a data model which shows the relationships between the elements of the system model, particularly the relationship between the referential data set and all other data. In Chapter 4, this data model was developed further to identify entity sets and their content descriptions. It indicates in tabular format the structure of the different system components, and then shows diagrammatically the high level linkages between these components; This analysis of the proposed system is the precursor to work by systems analysts who are responsible for the final design specifications for system software. In Chapter 5 the objective was to determine sources of data for input to the national system. The South African energy economy was briefly studied and assessed for both supply and demand side information. Finally in Chapter 6, a set of output templates was developed. Once fully implemented, these will provide system users with all the necessary information to support policy formulation. Desired outputs from a system must be known before the system is designed, and are therefor included.

Although renewable energy technology has received much attention over recent years the depletion of known fossil fuel reserves and the volatility of international fuel prices require that society looks beyond the current coal-dominated electricity generation methods. Investment in renewable energy and energy efficiency is important to reduce the negative economic, social and environmental impacts of energy production and consumption in South Africa. Currently, renewable energy contributes relatively little to primary energy and even less to the consumption of commercial energy. The challenge of transforming entire economies is enormous, especially if a country is as fossil-fuel-based and emission-intensive as South Africa. However, as it is already facing climate change impacts in an increasingly carbon constrained world; South Africa must drastically reduce its greenhouse gas emission intensity soon. The South African electricity sector is a vital part of the economy and at the same time contributes most to the emission problem. Transforming this sector is therefore urgently needed. First steps have been taken to enhance energy efficiency and promote renewable energy, but they have failed to have any large-scale effects. The two major barriers to investments in renewable energy technologies are based in the South African energy innovation system and its inherent power structures and in the economics of renewable energy technologies. Subsequently the private sector will have to play a significant role in closing the human resources gap by providing funds and expertise. Furthermore, the creation of employment opportunities and actively promoting structural change in the economy are seen, especially in industrialized countries, as goals that support the promotion of renewable energy. Moreover, with more support and assistance from the government and partnership with the private sector will be of immense help to achieve renewable energy goals.

Thesis (MPhil)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: South Africa is one of the most energy-intensive economies in the world, with around 90 per cent of its electricity generated using coal as a primary resource. As such, the South African energy system remains on a highly unsustainable path, and the potential for long-term growth and prosperity of the economy is thwarted. The alternative to conventional energy, renewable energy, has unfortunately been relatively slow to take off in the South Africa market. This is disappointing considering the country’s wealth of natural resources required for renewable energy generation. The potential of renewable energy to contribute to the South African energy mix is thus significant. The transition to a green economy, and subsequently a more sustainable energy future, is therefore achievable and realistic. However, national policies aimed at promoting the deployment of renewable energy have been thwarted by inconsistencies, lack of coordination, and proved relatively ineffective at increasing the country’s renewable energy capacity to its full potential. The recent policy changes from a feed-in tariff to a competitive tender approach dented investor confidence in the South African renewable energy industry significantly. Nevertheless, renewable energy policy in South Africa is still in its infancy, and valuable lessons are still to be learnt and incorporated into future policies going forward. A critical analysis of the current policy identifies the need for amendment to the structure of the policy landscape. The current policy strongly favours larger, more established and mature renewable technologies, whilst completely neglecting smaller and less mature ones. This not only results in a highly undiversified renewable energy mix, which has considerable negatives in itself, but also reduces the ability of the policy to capture a host of significant opportunities and advantages associated with small-scale renewable energy projects. The importance of diversifying South Africa’s renewable energy mix was therefore ones of the principal stances of this study, and intervention that ensured diversification within the industry was therefore vital. This study fundamentally designs and proposes a revised policy system that makes use of both competitive tenders and feed-in tariffs within the policy framework. In essence, this would allow for greater diversification within the renewable energy industry. The competitive tender component should be used for larger, more established technologies and projects, while the feed-in tariff should be used to drastically stimulate investment in smaller technologies and projects. By making use of a dual-mechanism system, the benefits associated with small-scale renewable energy projects can be realized without any noteworthy opportunity costs foregone. These benefits include diversification of the renewable energy mix; stimulation of smaller technologies; increased job creation; and stabilisation of supply volatility. This study recommends that the current renewable energy policy in South Africa be reassessed for both its relevancy within the South African context as well as its ability to effectively promote the deployment of alternative energy technologies. In an ever-changing and globalising world, where exogenous influences on national policies are stronger than ever, it becomes necessary and of utmost importance that policies are evaluated constantly in order to ensure their effectiveness is at optimal level. / AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse ekonomie is een van die energie-intensiefstes ter wêreld, met steenkool as hoofbron vir sowat 90 persent van die land se kragopwekking. Die Suid-Afrikaanse energiestelsel as sulks bly dus op 'n onstabiele pad, en die potensiaal vir langdurige ekonomiese groei en welvaart word geknel. As teenvoeter vir konvensionele krag het hernubare energie steeds stadig veld gewen in die plaaslike mark – wat teleurstellend is as die land se rykdom aan natuurlike bronne vir hernubare energie-opwekking in ag geneem word. Hernubare energie het dus 'n aansienlike potensiaal om tot die Suid-Afrikaanse energiemengsel by te dra. Die oorgang na 'n groen ekonomie, en gevolglik na 'n volhoubaarder energie-toekoms, is daarom bereikbaar en realisties. Nasionale beleide oor hoe die uitrol van hernubare energie bevorder word, is egter tot dusver gestrem deur ongereeldhede en 'n gebrek aan koördinasie, en was gevolglik relatief ondoeltreffend om die land se hernubare energiekapasiteit ten volle te verhoog. Die onlangse beleidsveranderinge vanaf 'n toevoertarief na 'n mededingende tenderbenadering het beleggersvertroue aansienlik geskaad. Suid-Afrika se hernubare energiebeleid is nietemin nog in sy kinderskoene, met kosbare lesse wat geleer kan word en vir die pad vorentoe in toekomsplanne ingewerk kan word. 'n Kritiese ontleding van die huidige beleid wys hoe nodig 'n aangepaste struktuur vir die beleidsraamwerk is. Die huidige beleid begunstig groter, meer gevestigde en ontwikkelde tegnologieë terwyl kleiner en minder ontwikkeldes heeltemal afgeskeep word. Dit het tot gevolg nie net 'n hoogs ongediversifiseerde mengsel van hernubare energie nie, wat op sigself 'n aantal nadele inhou, maar boonop verminder dit die beleid se vermoë om vele betekenisvolle geleenthede en voordele aan te gryp wat gepaard gaan met kleinskaalse projekte vir hernubare energie. Dat die diversifisering van Suid-Afrika se hernubare energiesamestelling belangrik is, was dus een van dié studie se hoofbenaderings, asook dat ingryping ter wille van diversifisering binne die bedryf onontbeerlik is. Hierdie studie bied 'n ingrypende ontwerp en voorstel vir 'n hersiene beleidstelsel, met mededingende tenders asook toevoertariewe binne die beleidsraamwerk. Dit sal in wese ruimte laat vir groter diversifikasie binne die hernubare energiebedryf. Die mededingende tendergedeelte behoort vir groter, meer gevestigde tegnologieë en projekte gebruik te word, terwyl die toevoertariewe kan dien om belegging in kleiner tegnologieë en projekte te stimuleer. Deur 'n stelsel van tweeledige meganismes kan die voordele van kleinskaalse hernubare energieprojekte realiseer sonder die inboet van noemenswaardige geleentheidskoste. Dié voordele sluit in, om enkeles te noem, die diversifikasie van die hernubare energie-toneel; die stimuleer van kleiner tegnologieë met gepaardgaande groter werkskepping; en toenemende plaaslike produkvervaardiging. Met dié studie word aanbeveel dat Suid-Afrika se huidige beleid oor hernubare energie heroorweeg word, rakende die relevansie daarvan binne die landskonteks asook die beleid se vermoë om die ontplooiing van alternatiewe energietegnologieë doeltreffend te bevorder. In 'n voortdurend veranderende en globaliserende wêreld, met buite-invloede op nasionale beleidsrigtings sterker as ooit, word dit noodsaaklik en uiters belangrik dat beleide voortdurend heroorweeg word om die doeltreffendheid daarvan op die gunstigste vlak te verseker.

Thesis (MBA)--Stellenbosch University, 2012. / In January 2011, the Western Cape Department of Economic Development, in partnership with the City of Cape Town, decided to establish a renewable energy manufacturing hub in Atlantis. This initiative was based on the opportunity emanating from the large-scale deployment of renewable energy in South Africa, of which the Western Cape would receive a significant proportion. This would result in billions of rands in investment in the province; the key would be to ensure that the expenditure on renewable energy equipment translates into local manufacturing. The project was therefore based on two key considerations: firstly, that the location of renewable energy power plants in the Western Cape holds potential for localising manufacturing in this sector, and secondly, that the location of a number of catalytic investors in a manufacturing hub would likely attract suppliers and related manufacturers to co-locate in the area. This research report set out to identify the critical factors for the successful establishment of a renewable energy manufacturing hub in Atlantis. The aim of the study was to provide the Provincial Government of the Western Cape (PGWC) with an assessment of the likelihood of a renewable energy manufacturing hub being successfully established in Atlantis. The literature review examined industry trends, company reports and journal articles on the state of the renewable energy industry globally. The literature review then focused on the role that policy plays in supporting the industry, contrasting various support measures implemented in different regions of the world; further, it examined the implications that South Africa’s policy choices have on the development of a renewable energy industry. The literature review identified the following key considerations that would impact the success of the project: • Renewable energy demand or market growth in terms of the Integrated Resource Plan for Electricity (IRP2010-2030) or the government’s renewable energy procurement programme (RFP); • Supply-side considerations, including manufacturer capabilities and supplier relationships; • Availability of skilled labour; • Physical location and infrastructure; • Availability/access to research and development (R&D); • Manufacturing incentives; and, • Supportive regional government. The research report concluded that all of these factors play a role in manufacturing companies’ investment decisions – notably, companies would likely set up manufacturing facilities in a location such as Atlantis on the basis of demand for their product and the potential of manufacturing their product competitively at that location. The Atlantis project would be deemed successful if it attracted manufacturing investment of approximately R450 million in the renewable energy hub in the first three years. The report concluded that the development of a renewable energy manufacturing hub in Atlantis was feasible. However, success is dependent on a complex interplay of these factors; many of which do not lie within the remit of the PGWC. Finally, it was discovered that external factors such as stable and sustained demand for products or the availability of manufacturing incentives have a greater impact on whether a local renewable energy manufacturing sector will be established on a significant scale than conditions relating specifically to Atlantis as a potential location of a manufacturing hub. In other words, no matter how attractive Atlantis may be as a manufacturing investment location, unless the national regulatory environment promotes local manufacturing, achieving success with a renewable energy manufacturing hub will be a major challenge.

Thesis (MDF)--Stellenbosch University, 2013. / ENGLISH ABSTRACT: In 2007, Bürer and Wüstenhagen (2009) conducted a survey amongst European and United States venture capital and private equity investors (VC/PE) to ascertain their public clean energy policy preference and concluded that VC/PE investors view the feed-in tariff (FIT) scheme to be the most preferred policy option. In this research study, the author re-conducted part of the Bürer and Wüstenhagen (2009) survey with thirty South African VC/PE investors to determine their perceptions on clean energy public policy preference. It is evident from the survey, that opinions are varied and at times even contradictory. This in itself demonstrates an important feature of the South African VC/PE and clean energy industry: it is young, dynamic, changing rapidly and can look very different, depending on the vantage point. The investors surveyed were mainly optimistic about the long-term development of the South African renewable energy industry led by private investors. VC/PE investors in South Africa have mixed views on various investment options, and are concerned about both the regulatory and macro-economic trends. The interviews and survey results show a number of recurring issues. Altogether, the survey results indicate that VC/PE investors consider FITs to be the best public clean energy policy instrument in leveraging private investment and finance for renewable energy in South Africa. This study serves to illustrate and confirm, in line with empirical studies, that VC/PE investors in South Africa believe that clean energy market-pull policies provide an impetus and indeed spur private investor participation in clean energy in developing countries. While it is true that most VC/PE investors would prefer the price certainty associated with a FIT regime, this is almost an irrelevant question in South Africa since constitutionally the state is bound to procure through competitive tendering. This study also serves to highlight the need for more active research and attention in this field.

thesis submitted in fulfilment of the requirements for the degree of DOCTOR OF PHILOSOPHY (PhD) in the School of Law at the University of the Witwatersrand / Many countries are under pressure to transition from fossil to renewable sources of energy. This pressure comes from multiple points including sustainable energy and climate change imperatives. The energy industry, especially electricity generation, is the main source of greenhouse gases, hence the significance of reductions in this industry. The purpose of this study was to conduct a legal analysis of the renewable energy law in the context of energy law generally in South Africa, to understand the regulatory function of law in promoting renewable energy. The study analysed government legal and policy positions, and the response by non-state actors to such policy positions and laws. Through a qualitative analysis of primary and secondary sources of law and public participation documents, the study found that; while South Africa is committed to renewable energy, its socio-economic, cultural, and environmental context superimposes other priorities that impede progress towards renewable energy. Several obstacles to renewable energy were identified, some internal to energy law and others external to it, coming from other areas such as environmental law, governance, economics, and behavioural sciences. Analysis at the convergence of environmental and energy law revealed misalignment and fragmentation as major obstacles to renewable energy. While barriers are common across the globe, countries cannot apply the same responses with the same results. Regulatory responses, beyond the traditional ‘command and control’ tools are context specific and tools that have worked, in other countries, may not be as effective in South Africa. Socio-economic dynamics determine the legal responses to the barriers to renewable energy or the efficacy of economic incentives to promote renewable energy. However, overall, law and regulation can, and must, play a crucial enabling role by removing barriers to renewable energy. Nevertheless, there are limits to the use law ‘as regulation.’ Renewables will not replace fossil sources yet; rather in the long-term, renewables should become a big part of the energy mix. Despite gaining price competitiveness, it is too early for renewables to displace conventional fossil sources in a context of entrenched structural and institutional obstacles. Concomitant technical, market, economic, and environmental and resource governance interventions are necessary to effectively promote an energy mix substantially composed of renewables. The study recommends that law should create an enabling regulatory environment for renewable energy. South Africa has not used law effectively enough to create this environment, thereby impeding the integration of renewable energy into its energy mix. Aligning energy and environmental law, among other incentives, can enhance this role of law. Legal reforms are necessary to remove the regulatory advantage afforded to conventional sources of electricity and level the playing field. / MT2017

Thesis (MBA (Business Management))--University of Stellenbosch, 2008. / AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse Heropbouings Program (HOP) asook die Groei Indiensnemings- en Herverdelingsprogram(GEAR) het ‘n geweldige hoë standaard gestel vir die verskaffing van basiese dienste soos behuising en elektrifisëring vir almal. Die meer effektiewe gebruik van elektriese energie het die sosiale en politieke potensiaal om by te dra tot die sukses van GEAR ten opsigte van die geteikende lae inkomste gemeenskappe waar daar nie tans voldoende elektriese energie beskikbaar is nie. Hierdie studie dek ook die inisiatiewe ten opsigte van effektiewe elektriese energie waaroor die Suid-Afrikaanse regering in vennootskap met Eskom tans navorsing doen om te bepaal of daar enige ekonomiese waarde is, en/of die lae inkomste gemeenskappe deur die sogenoemde inisiatiewe bevoordeel kan word. Die studie sluit ook navorsing in om die bewustheid van die lae inkomste gemeenskappe ten opsigte van effektiewe elektriese energie te bepaal. Die studie kyk verder na verskeie ander voltooide studies ten opsigte van effektiewe energie in lae inkomste gemeenskappe. Alhoewel verskeie ander effektiewe energie programme wel hoë ekonomiese en omgewings voordele uit 'n sosiale oogpunt inhou, is dieselfde programme glad nie aantreklik vir die verbruikers nie. Vir hierdie feit is die regering se bemiddeling wel belangrik. Die uitslag van die studie ondersoek ook die verskillende beleidsopsies (nie in diepte nie) om die struikelblokke van effektiewe energie te oorkom, asook moontlike oplossings vir die regering om die verskille tussen wat goed is vir die gemeenskap, en wat goed is vir die elektriese industrie te oorbrug. Die studie toets ook die bewustheid van effektiewe energie onder die lae inkomste gemeenskappe en hul huidige deelname aan effektiewe energie programme. / ENGLISH ABSTRACT: South Africa’s Reconstruction and Development Programme (RDP) as well as Growth Employment and Redistribution (GEAR) set ambitious goals for providing basic services to all, including housing and electrification. More efficient use of electrical energy has the potential to socially and politically support the goals of GEAR, particularly when it is targeted at low-income communities lacking adequate energy services. This study looks at electrical energy efficiency initiatives that the South African government has under taken on its own as well as in partnership with Eskom and to check if there is any economic value that the poor communities may benefit from these initiatives. The study will also check the awareness of poor communities of electrical energy efficiency. Various studies in the subject of energy efficiency in relation to the poor communities that have been done in the past will also be looked at in this study. While many energy efficiency programmes may have significant economic and environmental benefits from a social perspective, they may not be as attractive to utilities and consumers. That is why government intervention is important. As a result this study also examine (not in great depth) the policy options for overcoming the significant barriers to energy efficiency, and ways government can bridge the gap between what is good for society and what is good for the electricity industry. This study extends further on checking the awareness of energy efficiency by the poor communities and their current participation in the energy efficiency programmes.

The rapid and sustained development of the rural regions of South Africa continues to pose an extraordinary challenge to the development community of the country. Policy makers continue to be overwhelmed by the lack of development in the rural areas in spite of the various efforts made to develop them. A review of the publications and development plans of the study region indicates that the planners have for long been pre-occupied with taking limited perspectives of the development planning problems. Development plans have been conceived and implemented in terms of individual sectors instead of looking at their relations with other sectors and regions. This study seeks to make a contribution to the solution of the development problems of the rural areas of the former homeland regions by demonstrating how an integrated approach to the research process and to development planning could make a difference to the lives of the rural communities. This theme is illustrated with reference to the rural energy sector and its relations with the broader regional development problems, challenges and plans of the Sekhukhune district municipality of the Limpopo Province. / GEOGRAPHY / MA (GEOGRAPHY)