Thesis (MCom)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: Worldwide, energy has been, and continues to be, key to economic development. However, the current global consensus is that energy-related carbon dioxide emissions would, at current rates, put the world onto a potentially catastrophic trajectory which could lead to global warming of 5 degree Celsius or more compared to pre-industrial times. There is a critical need for a low-carbon development or a move away from conventional fossil fuels energy sources. This study explores impacts of policies that South Africa developed in order to champion sustainable energy strategies based on energy efficiency and non-conventional energy sources, including renewable energy. The mining sector, because of its energy-intensive nature, was chosen. In order to achieve this objective three approaches were carried out: (i) a critical review of literature on energy efficiency (EE) and renewable energy (RE) ; (ii) two case-studies that demonstrate the impacts of the policies; and (iii) action research on a sample of mines using survey questionnaire and interviewing. The research results show that the need to have security in energy and the need to be competitive and grow revenue are significant in deciding to carry out EE and RE initiatives in the mining sector. The results also show that safety followed by production are the priorities and are accompanied by a range of other demands, such as cost reduction and legislative requirements. It is, therefore, within this context that EE and RE initiative will always be carried out in the mining sector. The research concludes that, under the current market framework, South African EE and RE policies are not as effective as hoped they would be. The research, therefore, recommends that a percentage of the mines’ revenue could be dedicated to EE and RE initiatives. In addition, South Africa needs to come up with a new type of productive endeavour that would lead to less extractive industries, including mines. / AFRIKAANSE OPSOMMING: Energie is, was en sal wereldwyd altyd die sleutel wees tot ekonomiese ontwikkeling. Nieteenstaande, word dit wereldwyd aanvaar dat die huidige energie opwekking se koolstofdioksied vrystelling moontlik kan lei tot aardverwarming van 5 grade Celsius of meer wanneer vergelyk met word met pre-industriële tye. Daar is ‘n kritiese behoefte aan lae koolstofdioksied vrystelling ontwikkelings of ‘n beperking van konvensionele fossielbrandstof energiebronne. Hierdie studie analiseer die impak van die Suid Afrikaanse beleid wat ontwikkel is om volhoubare energie te bevorder wat effektief en onkonvensioneel is, insluitend hernubare energie. Die mynsektor, as ‘n groot verbruiker van energie, vorm die kern van die studie. Die studie is voltooi in drie fases naamlik: (1) kritiese oorsig van die literatuur oor energiedoeltreffendheid (EE) en hernubare energie (RE); (2) twee gevallestudies wat die impak van die beleid bevestig; en (3) praktiese navorsing deur middel van vraelyste en persoonlike onderhoude met seker myne. Die navorsing bevestig dat die behoefte aan bestendige energie teen kompeterende pryse wat die mynsektor in staat stel om inkomste te groei ,‘n beduidende invloed het op die besluit om EE of RE inisiatiewe te onderneem. Die resultate bevestig verder dat beroepsveiligheid en produksie uitsette die eerste prioriteite vir die myne is. Dit word verder beinvloed deur kostebesparings en wetlike vereistes. Enige EE en RE inisiatiewe wat onderneem word sal in hierdie konteks plaasvind. Die navorsing kom tot die slotsom dat, onder huidige marktoestande, Suid Afrika se EE en RE beleid nie so effektief is as waarop daar gehoop is nie. Die navorsing beveel derhalwe aan dat ‘n persentasie van myne se inkomste geoormerk moet word vir EE en RE inisiatiewe. Verder meer , Suid Afrika moet strewe na tipes produksie wat minder natuurlike grondstowwe onttrek, insluitend die myne.

Submitted in fulfillment for the requirements for the degree of Doctor of Technology: Biotechnology, Durban University of Technology, Durban, South Africa, 2015. / Main focus of this study is to investigate the enzymatic-conversion of microalgal lipids to biodiesel. However, preceding steps before conversion such as drying of microalgal biomass and extraction of lipids were also studied. Downstream processing of microalgae has several challenges and there is very little literature available in this area. S. obliquus was grown in the pilot scale open pond cultivation system for biomass production. Different techniques were studied for biomass drying and extraction of lipids from harvested microalgal biomass. Effect of these drying and extraction techniques on lipid yield and quality was assessed. Energy consumption and economic evaluation was also studied. Enzymatic conversion of microalgal lipids by extracellular and whole cell lipase application was investigated. For both applications, free and immobilized lipases from different sources were screened and selected based on biodiesel conversion. Process parameters were optimized using chosen extracellular and whole cell lipases; also step-wise methanol addition was studied to improve the biodiesel conversion. Immobilized lipase was studied for its reuse. Final biodiesel was characterized for its fuel properties and compared with the specifications given by international standards. Enzymatic conversion of microalgal lipids was compared with the conventional homogeneous acid-catalyzed conversion. Enzymatic conversion and chemical conversion were techno-economically investigated based on process cost, energy consumption and processing steps. Freeze drying was the most efficient technique, however at large scale economical sun drying could also be selected as possible drying step. Microwave assisted lipid extraction performed better compared to sonication technique. Immobilized P. fluorescens lipase in extracellular application and A. niger lipase in whole cell application showed superior biodiesel conversion. The extracellular immobilized P. fluorescens lipase showed better biodiesel conversion and yields than the immobilized A. niger whole cell lipase. Both the enzyme catalysts showed lower biodiesel conversion compared to conventional chemical catalyst and higher processing cost. However, techno-economic analysis showed that, the reuse potential of immobilized lipases can significantly improve the economics. Fewer purification steps, less wastewater generation and minimal energy input are the benefits of enzymatic route of biodiesel conversion. Microalgae as a feedstock and lipase as a catalyst for conversion makes overall biodiesel production process environmentally-friendly. Data from this study has academic as well as industrial significance. Conclusions from this study form the basis for greener and sustainable scaling-up of microalgal biodiesel production process. / D

Rural development efforts to reduce poverty and enhance food security and generally improve livelihoods in developing countries continue to be constrained by high energy cost. For that reason, renewable energy has been identified as a possible panacea to fill this gap. Renewable energy is cheaper, more accessible and environmentally sustainable and promotes inclusivity. Biogas is a renewable energy that is readily available and easy to use by poor rural households. The use of biogas digesters among households in rural areas of developing countries is a well-known technology. The potential for biogas in these areas has been demonstrated and a strong economic case has been made. However, its adoption and use have been lower than expectations possibly as result of non-economic considerations, including social issues about which rural people hold different perceptions. Perceptions of rural households are important because they influence the behaviour to a large extent. Since limited access to affordable energy in rural areas has encouraged government and private organisations to initiate biogas projects to overcome the challenge, it is important to ascertain the factors that affect attitudes towards the technology. The present study sought to explore perceptions of rural households about biogas production towards rural household income in the Raymond Mhlaba Local Municipality. Specifically, this research investigated the state of biogas project being implemented by the University of Fort Hare’s Institute of Technology (FHIT), the perceptions of respondents towards biogas production and determine the contribution of biogas consumption to rural income. The study also aimed to identify the factors affecting the adoption of biogas production in the study area. The study was carried out in Melani village in Raymond Mhlaba Local Municipality in the Eastern Cape Province of South Africa and employed survey data obtained from 48 households who were enumerated to identify their perceptions on biogas production, with special emphasis on the role and effect contributed to rural income of Melani village. The study employed a cross-sectional research design and purposive sampling technique was used in data collection. Data were collected and captured in Excel and then analysed using the statistical package for social sciences (SPSS) Version 24 Descriptive statistics was used to examine socio-economic characteristics of households and state of biogas production in the area, Bivariate correlation analysis was used to determine the relationships among the key elements of perceptions of household towards biogas adoption, binary logistic model was used to estimate factors influencing adoption of biogas technology by households. The results show that women were dominant for both adopters and non-adopters of biogas. The majority of households were young with mean age of 40 years while for non-adopters were 65 years old on average. The results showed high levels of literacy amongst household adopters. Majority of the households for both adopters and non-adopters of biogas technology were married and unemployed and household size ranged from one to five persons, with social grants being dominant source of income. The bivariate correlation analysis suggests a positive effect of green pepper production and livestock ownership on biogas technology adoption. Age and level of education were negatively correlated with adoption of biogas. The cross tabulation analysis suggests that water scarcity, lack of knowledge about biogas technology, cattle ownership, lack of maintenance and repairing, flooded biogas digesters during rainy season are negatively associated with the uptake of biogas technology. The empirical results from binary logistic model suggest that land size was the key determinant of adoption behaviour towards biogas technology while age of the household head, source of income and level of education may have a negative influence on adoption of biogas technology. Based on the findings highlighted above, the study recommends strategies to encourage households to adopt biogas technology.

Since the publication of the White Paper on energy Policy of 1998, South Africa has taken off on a new trajectory of sustainability. The South African government have identified that the renewable energy sector will play a critical role in advancing and improving the energy sector. They envisage that the sector will contribute to the development of a green economy and the creation of meaningful employment for all South Africans. With the renewable energy sector of South Africa being dependent on skills, many of which are pertinent for the success of the sector, sufficient skilled workers are required to provide a service to the growing sector. Upon engaging with individuals employed in the sector and embarking on the research it became apparent that there was a lack of a talent management framework for the sector. Talent management represents a means for companies to develop and sustain talent pipelines thereby creating a competitive advantage. Globally executives across the employment spectrum admit that they have challenges in building a strong talent pipeline. The South African Renewable Energy Sector (SARES) is not exempt from this reality, where it has been well documented that South Africa is struggling with a skills shortage. This makes it difficult to grow and develop a fledgling sector. The purpose of this treatise was to evaluate the need for a talent management framework for the South African Renewable Energy Sector. To evaluate this, a literature review was performed on concepts relating to the development of a talent management framework specifically for the sector. These concepts or independent variables were, engineering skills, competence, knowledge worker, policies supporting RE development as well as training and development. The talent management framework relied on ring fencing the study around the knowledge worker, by correlating the definition of an engineer to that of a knowledge worker. The results show that despite the proclamation made by the South African government that South Africa is geared to supply the skills required for SARES. The research found a need for educational institutes to produce more knowledge workers. The results of this research study showed that despite the low positive correlation between the five independent variables, being, engineering skills, competence, knowledge worker, policies supporting RE development they would still provide those responsible for recruitment and talent management with a platform to be able to develop a working talent management strategy. There is a need for the development of a suitable talent management framework, which would allow the sector to manage elements of talent management such as recruitment and retention of knowledge workers. The proposed talent management framework can be used to assist in consolidating the present recruitment practises as well as being used to develop a talent management strategy for the sector.

Since the launch of the Biofuels Industrial Strategy in 2007 by the South African government, only a few smallholder farmers have adopted biofuels for production. The government hopes to stimulate economic development and alleviate poverty by targeting areas that were previously neglected for agriculture by the apartheid government. However, there still appears to be a lack of a clear and comprehensive policy framework for the development of a South African biofuel industry, because the proposed initiatives have not been implemented to date. There are also concerns among stakeholders that government policy is taking too long to formulate, compounding existing uncertainty in the industry. This study therefore aims to identify barriers and incentives that influence the potential adoption of biofuel crops in selected areas in the Eastern Cape Province, South Africa. The study utilised a semi-structured questionnaire to record responses from 129 smallholder farmers that were identified through a snowballing sampling technique. Descriptive statistical analysis and a Heckman two-step model were applied to analyse the data. Analysis was done using SPSS 21 and EViews 8. Results obtained showed that the variables: arable land, incentives offered, challenges faced, labour source and farm experience were statistical significant at 5 or 10 percent p value to awareness of farmers to biofuel crops. Adoption of biofuel crops was statistically related to gender, qualification, membership to association and household size. The study recommends that the Biofuels Industrial Strategy Policy be revisited in order to have a mechanism of including smallholder farmers that it aims to empower with employment and improvement in their livelihoods. The government can help smallholder farmers by addressing the challenges they face in improving their output. Furthermore, it recommends that a national study on barriers and incentives that influence the adoption of biofuel crops be carried out in order to identify other factors that may hinder the Biofuels Strategy Policy aims in empowering the disadvantaged farmers.

The purpose of this study was to investigate and suggest technologies that need to be considered by the Buffalo City Metropolitan Municipality management in order to alleviate electricity power shortages. It is very important to address the problems of electricity power shortages in the Buffalo City Metropolitan Municipality since it affects the households, offices and factories and it creates a negative image about the economic viability and investment opportunities in South Africa. Since ESKOM supplies electricity to the Buffalo City Metropolitan Municipality, they both require solutions that can sustain electricity availability for the current and future consumption by the households and the South African economy. It is of importance to report that the main causes of power shortages are the energy, capacity and the reserve margin constraints in the Buffalo City Metropolitan Municipality. The methodology used for this research was a mixed methods type of research. The literature review led to the formulation of research questionnaires that were subsequently used as the main tools for sourcing data in order to conduct an empirical study for this research. The empirical study was used to combine the quantitative and the qualitative research methodology in one research. The respondents to the structured and self-administered questionnaires comprised Beacon Bay and Mdantsane households that owned Solar Water Heaters. The other respondents that were interviewed with the aid of semi-structured questionnaires comprised ESKOM and the Buffalo City Metropolitan Municipality management teams. The responses from all the respondents were collected, arranged and presented in tables and graphs for the purpose of analysing and thereafter to report the outcomes. The outcomes were compared to the literature reviewed to test whether there is congruence between the two. This was done for the purpose of answering the following research question: Can alternative energy in the form of solar be a solution in improving power shortage in the Buffalo City Metro? Renewable energy was among the suggested solutions that were tested in other countries and found to be reliable. Renewable energy is divided into Solar Power Technology, Wind Power Technology, Small Hydro generation power, Biomass and other technologies. The Solar Power Technology is divided into three forms of energy. The first technology was Solar Photovoltaic Power, Concentrating Solar Power and the Solar Water Heating. The focus of this study was to investigate whether the use of Solar Power Technology in the form of Solar Water Heating can alleviate electricity power shortages in the Buffalo City Metropolitan Municipality. The other renewable energy technologies are reported as the limitations in this research that created opportunities for further research. The literature and empirical studies confirmed that the use of Solar Water Heaters alleviate power shortages in the Buffalo City Metropolitan Municipality since most of the respondents agreed that when Solar Water Heaters are installed and used in the households, electricity power is saved. The respondents further agreed that since Solar Water Heaters use the sun to heat water they do not use electric geysers anymore. They further agreed that a decrease in electricity expenses per household, per day, per month and per annum has been achieved due to the use of Solar Water Heaters. The Solar Water Heaters were reported by most respondents as confirmed in the literature that they are reliable since they do not trip when there is a planned or an emergency power outages in the Buffalo City Metropolitan Municipality area because they are powered by the sunlight. They are safe and have a longer economic life. They can be used in areas that do not have existing power supply. The key findings were that, both quantitative and qualitative results yielded results that were congruent with the literature reviewed. The congruence was reported in terms of electricity power saving, reduction in electricity expenses, per household, its reliability, the longer economic life and the safety of Solar Water Heaters. The installation of Solar Water Heaters has proven to be a good decision since they alleviated power shortages in the households that are in the rural areas, townships and in the upmarket residential places. It was recommended to the Buffalo City Metropolitan Municipality and ESKOM management to install more Solar Water Heaters and to increase the subsidies for the buyers of Solar Water Heaters especially the Buffalo City Metropolitan Municipality; to increase the marketing of Solar Water Heaters and to further educate electricity users about the Demand Side Management. This approach will encourage electricity users to reduce their demand for electricity in order to reap the benefits of power savings and sustainability of electricity supply for the potential increase of the economy in Eastern Cape Province.

Thesis (PhD (School of Public Leadership))--University of Stellenbosch, 2012. / Please download the required VENSIM software from: http://www.vensim.com/freedownload.html / ENGLISH ABSTRACT: Technology assessment has changed in nature over the last four decades. It changed from an analytical tool for technology evaluation, which depends heavily on quantitative and qualitative modelling methodologies, into a strategic planning tool for policy-making concerning acceptable new technologies, which depends on participative policy problem analysis. The goal of technology assessment today is to generate policy options for solutions of organisational and societal problems, which at the operational level, utilise new technologies that are publicly acceptable; that is, viable policy options. Energy technology assessment for sustainability is inherently a complex and dynamic process that requires a holistic and transdisciplinary approach. In the South Africa context, specifically, there is no formal and coherent approach to energy technology assessment from a sustainability perspective. Without a formal comprehensive or well integrated technology assessment approach to evaluate the sustainability of any technology, the policy-makers, technology designers, and decision-makers are faced with difficulty in terms of making reasoned decisions about the appropriate technology options. This study developed a framework that incorporates a technology assessment approach, namely, system dynamics, within the broader scope of technology development for sustainability. The framework, termed the Systems Approach to Technology Sustainability Assessment (SATSA), integrates three key elements: technology development, sustainable development, and a dynamic systems approach. The study then provides a guiding process of applying the framework to energy technology assessment theory and practice within the context of sustainable development. Biodiesel, a cleaner burning replacement fuel, argued to potentially contribute to sustainable development, is used for the demonstration. Biodiesel development entails complex interactions of actors such as the technology developers, government at different levels, communities, as well as the natural environment. Different actions or responses in the greater system might hinder or undermine the positive effects of such a development. Based on the SATSA framework, a Bioenergy Technology Sustainability Assessment (BIOTSA) model was developed. The BIOTSA model was used to test the outcomes of a proposed biodiesel production development in the Eastern Cape Province of South Africa on selected sustainability indicators. In addition, some policy scenarios were tested to compare how they assist in improving the selected indicators. The BIOTSA model results are useful in comparing dynamic consequences resulting from a proposed biodiesel production development and the respective policies and decisions that may arise from such a development. The testing and validation of the BIOTSA model was carried out based on structural validity, behavioural validity, and expert opinion. Potential policy scenario outcomes and their implication, on the selected sustainability indicators, were also tested. The opinions of the selected stakeholders indicated that the BIOTSA model was useful in providing an understanding of the potential impacts of the biodiesel development on selected sustainability indicators in the Eastern Cape Province. Thus, the SATSA framework can be applied for assessing sustainability of other renewable energy technologies. In addition, system dynamics provide a useful and a feasible dynamic systems approach for energy technology sustainability assessment. Finally, the model building process and transdisciplinary nature of this study enabled the identification of the potential problems that could arise during the biodiesel production development. In addition, gaps in data and knowledge were identified and the recommendation for future work in this field is highlighted. Nevertheless, the findings of the BIOTSA model could inform policy- and decision-making in biodiesel production development in South Africa. The development of similar models for other renewable energy development efforts is thus recommended. The current efforts to facilitate the large-scale roll out of concentrated solar thermal technologies in Southern Africa, for example, would require the development of a Solar Thermal Technology Sustainability Assessment (SOTTSA) model. / AFRIKAANSE OPSOMMING: Die aard van tegnologie assessering het in die afgelope vier dekades verander. Dit het verander ten opsigte van ’n analitiese hulpmiddel vir tegnologie evaluering, wat hoofsaaklik staatmaak op kwalitatiewe en kwantitatiewe modelleringsmetodiek, na ’n strategiese beplanningshulpmiddel vir beleidvorming met betrekking tot nuwe aanvaarbare tegnologieë, wat afhanklik is van ’n deelnemende beleidsprobleem analise. Vandag se doel vir tegnologie assessering is om beleidsopsies vir oplossings van organisatoriese en sosiale probleme te genereer, wat op operasionele vlak gebruik maak van nuwe tegnologieë wat deur die publiek aanvaar is; met ander woorde, lewensvatbare beleidsopsies. Energie tegnologie assessering vir volhoubaarheid is sonder twyfel ’n komplekse en dinamiese proses wat ’n holistiese en transdisiplinêre benadering benodig. In die Suid- Afrikaanse konteks is daar geen formele en samehangende benadering tot tegnologie assessering vanaf ’n volhoubaarheidsperspektief nie. Beleidsmakers, tegnologie ontwerpers en besluitnemers mag sukkel om beredenerende besluite te neem oor die toepaslike tegnologie opsies sonder ’n formele omvattende of goed geïntegreerde tegnologie assesseringsbenadering om die volhoubaarheid van enige tegnologie te evalueer. Hierdie studie het ’n raamwerk ontwerp wat die tegnologie assesseringsbenadering inkorporeer binne die breë bestek van tegnologiese ontwikkeling vir volhoubaarheid naamlik, stelsel dinamika. Die raamwerk, genoem die Sisteem Benadering tot Tegnologie Volhoubaarheidsassessering (SBTVA) integreer drie sleutelelemente: tegnologiese ontwikkeling, volhoubaarheidsontwikkeling, en ʼn dinamiese stelsels benadering. Verder verskaf die studie ’n leidende proses te opsigte van die toepassing van die raamwerk tot energie tegnologie assesseringsteorie en praktyk binne die konteks van volhoubaarheidsontwikkeling. Biodiesel word gebruik vir die demonstrasie omdat dit gereken word as ’n skoner plaasvervanger vir brandstof en daar aangevoer word dat dit ’n potensiële bydraer tot volhoubaarheidsontwikkeling is. Die ontwikkeling van biodiesel behels komplekse interaksie tussen verskeie akteurs soos tegnologiese ontwikkelaars, die regering op verskillende vlakke, gemeenskappe asook die natuurlike omgewing. Verskeie aksies of reaksies in die groter sisteem mag dalk die positiewe effek van so ontwikkeling ondermyn of verhinder. ’n Biodiesel Tegnologiese Volhoubaarheidsassessering (BIOTVA) model is ontwerp gebaseer op die SBTVA raamwerk. Die BIOTVA model is gebruik om die uitkomste op geselekteerde volhoubaarheidsaanduiders van ’n voorgestelde biodiesel produksie ontwikkeling in die Oos- Kaap Provinsie van Suid-Afrika te toets. Buiten vir die voorafgaande is sekere beleidtoekomsblikke ook getoets om te vergelyk hoe hulle sal help om die geselekteerde aanwysers te verbeter. Die BIOTVA model resultate is behulpsaam in die vergelyking van dinamiese gevolge wat voortspruit uit die voorgestelde biodiesel produksie ontwikkeling asook die onderskeie beleide en besluite wat mag ontstaan van so ’n ontwikkeling. Die toetsing en bekragtiging van die BIOTVA model was uitgevoer gebaseer op strukturele geldigheid, gedragsgeldigheid, en kundige opinie. Potensiële beleidtoekomsblikke uitkomste en die nagevolge, ten opsigte van die geselekteerde volhoubaarheidsaanduiders, is ook getoets. Die opinies van die geselekteerde aandeelhouers het aangedui dat die BIOTVA model bruikbaar is om ’n beter begrip te verskaf ten opsigte van die potensiële impak wat die biodiesel ontwikkeling op geselekteerde volhoubaarheidsaanduiders in die Oos-Kaap Provinsie sal hê. As gevolg hiervan kan die SBTVA raamwerk toegepas word om die volhoubaarheid van ander herwinbare energie tegnologieë te assesseer. Buiten die voorafgaande kan stelsel dinamika ’n bruikbare en uitvoerbare dinamiese stelselbenadering vir energie tegnologie volhoubaarheidsassessering verskaf. Ten slotte, die model bouproses en transdisiplinêre aarde van die studie het gehelp om potensiële probleme wat kan voorkom tydens die biodiesel produksie ontwikkeling te identifiseer. Daarby is gapings in data en kennis ook geïdentifiseer en die aanbevelings vir verdere studie in die veld is uitgelig. Nieteenstaande kan die bevindings van die BIOTVA model beleidmakers en besluitnemers in die biodiesel produksie ontwikkeling van Suid- Afrika inlig. Die ontwikkeling van soortgelyke modelle vir ander herwinbare energie ontwikkelingspogings word aanbeveel. As voorbeeld sal die huidige pogings om die grootskaalse uitrol van gekonsentreerde son termiese tegnologieë in Suider-Afrika te fasiliteer die ontwikkeling van ’n Son Termiese Tegnologie Volhoubaarheidsassesering (SOTTVA) model benodig.

Thesis (MBA)--University of Stellenbosch, 2010. / Climate change is one of the most serious issues the world is facing today. With an economic slowdown globally, huge food shortages and record-high fuel prices, it has never been so important for countries to guard their natural resources to ensure future sustainability. The South African energy generation industry, of approximately 40 000 Mega Watt (MW), consists largely (90%) of coal-fired power stations, with the remainder comprising of nuclear and pumped storage schemes which are regarded as environmentally neutral. It is only recently that Eskom and independent power producers (e.g. Darling Independent Power Producer Wind farm with an estimated 10 MW) embarked on utilising South Africa's natural resources to generate electrical power. South Africa's access to inexpensive coal and paid off coal-fired power stations has made it difficult to justify the investment in renewable energy. However, on 31 March 2009 South Africa became the first African country to introduce a feed-in-tariff for renewable energy (Gipe, 2009). The hope is that this initiative would stimulate the investment in green energy generation. Eskom and municipalities are currently the only entities that have licences from the National Energy Regulator of South Africa (NERSA) to buy bulk electricity from power producers. The question therefore arises: if green electricity is more expensive to generate and is sold at a price premium to Eskom and municipalities, would they pass the premium on to consumers; can they differentiate the green electricity product and will consumers be willing to buy at a premium price? This research study aims to answer if businesses would be willing to pay a premium for green electricity, why they would be willing to buy it, which factors influence the purchasing decision and what barriers exist that will deter a purchase. A survey was conducted on businesses in the Western and Northern Cape of South Africa. The businesses sampled have a notified maximum demand of 50kVA or higher and excludes the re-distributor (City of Cape Town) customers. Approximately ten per cent of businesses would be willing buy green electricity. Most of these businesses have indicated that they are willing to pay a premium of five to nine per cent for green electricity. The businesses that are willing to pay the largest premiums (>10%) are in the electricity, gas, water, finance, insurance, real estate, business services, manufacturing, transport, storage and communications sector. Businesses that are willing to buy green electricity: • Have a strategy to reduce their carbon footprint; • Want to be community leaders (altruistic motivators); • Have as their biggest barrier the additional cost of green electricity; and • Feel that power utilities should be required to include a minimum percentage of green energy in their energy mix.

Thesis (MBA (Business Management))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: The purpose of this study is to determine whether residential electricity consumers within the Cape Peninsula would be willing to voluntarily purchase green electricity if it is sold at a premium price. International experience in the field of green marketing shows that while niche markets for green electricity clearly existed, few programmes however exceeded a 5% penetration in the residential market. This study therefore methodologically drew on recent development in the literature of norm-motivated behaviour to identify testable factors that could influence residential consumers’ willingness to purchase premium-priced green electricity. After identifying these core testable factors, they were used to test various hypotheses. This was done through the testing of primary data that was collected through a telephone market survey of 405 respondents within the Cape Peninsula. These respondents were all identified as financial decision makers within their electricity consuming households. This study subsequently found that residential electricity consumers in the Cape Peninsula are very concerned about the future of the environment and that a large percentage of them (more than 40%) from almost all income levels might voluntary buy premium-priced green electricity. However, as it did identify that consumers must truly be convinced of the positive effects that green electricity would have on the environment before voluntarily supporting such a campaign, it found that consumers might not be well enough informed on environmental and climate change issues to ensure their actual support. To be at all successful, such a green electricity marketing campaign should be very informative and specifically focused on the positive effects that such a purchase would have on the environment. This study also found that supportive residential consumers would on average be willing to pay a maximum premium of 26% or approximately 15c/kWh. The combined maximum potential value of these premiums amount to R39 million per month. This serves as indication that there is much room for future development of the green electricity market. This study also identified that the majority of residential consumers believe that excessive users of electricity should be forced to make a larger financial contribution towards the generation of green electricity than low usage consumers. Based on its findings, the study closes with recommendations to role players in the green electricity market, i.e. the City of Cape Town Municipality, Darling Wind Farm and Eskom. / AFRIKAANSE OPSOMMING: Die doel van hierdie studie is om te bepaal of residensiële elektrisiteitsverbruikers in die Kaapse Skiereiland gewillig sou wees om vrywilliglik groen elektrisiteit teen ’n premie aan te koop. Internasionale ervaring op die gebied van groen elektrisiteit het getoon dat, alhoewel daar verseker nismarkte vir groen elektrisiteit bestaan, baie min programme meer as 5% van die residensiële mark kon wen. Hierdie studie steun dus metodologies op onlangse verwikkelinge in die literatuur rakende normgemotiveerde gedrag om sodoende toetsbare faktore te identifiseer wat moontlik verbruikers se bereidwilligheid om groen elektrisiteit teen ’n premie te koop, kan verbeter. Na die identifisering van hierdie toetsbare faktore is hulle gebruik om verskeie hipoteses te toets. Dit is gedoen deur die toets van primêre data wat deur middel van telefoon-marknavorsing by 405 respondente binne die Kaapse Skiereiland ingesamel is. Hierdie respondente was almal geïdentifiseer as finansiële besluitnemers van huishoudings wat elektrisiteit gebruik. Hierdie studie het bevind dat residensiële elektrisiteitsverbruikers in die Kaapse Skiereiland baie besorg is oor die toekoms van die omgewing en dat ’n groot hoeveelheid van hierdie huishoudings (meer as 40%) van amper alle inkomstegroepe moontlik gewillig sou wees om groen elektrisiteit teen ’n premie aan te koop. Die studie het ook bevind dat omdat hierdie bereidwilligheid van die residensiële verbruikers onderhewig is aan hul oortuiging dat groen elektrisiteit ’n werklike positiewe effek op die omgewing uitoefen, residensiële verbruikers dalk huidiglik nie werklik goed genoeg ingelig is rakende omgewingsbewaring- en klimaatsveranderingskwessies nie. Hierdie gebrek aan kennis kan dus moontlik hul bereidwilligheid om groen elektrisiteit teen ’n premie aan te koop, negatief beïnvloed. Om suksesvol te wees sal groen elektrisiteit-bemarkingsveldtogte baie volledige inligting moet verskaf en sterk gefokus moet wees op die omgewingsvoordele wat die aankoop van groen elektrisiteit inhou. Die studie het ook bevind dat residensiële ondersteuners bereid sou wees om gemiddeld ’n maksimum premie van 26% of 15c/kWh te betaal. Die gesamentlike maksimum potensiële waarde van hierdie premies is R39 miljoen per maand wat daarop dui dat daar heelwat ruimte mag wees vir toekomstige uitbreiding van die mark vir groen elektrisiteit. Hierdie studie het ook geïdentifiseer dat die meerderheid residensiële elektrisiteitsverbruikers glo dat oormatige elektrisiteitsverbruikers gedwing moet word om ‘n groter finansiële bydrae tot die opwekking van groen elektrisiteit te maak as lae elektrisiteitsverbruikers. Gebaseer op die bevindinge van hierdie studie, sluit dit af met aanbevelings tot verskeie rolspelers in die mark vir groen elektrisiteit, soos die Kaapstadse Munisipaliteit, Darling Windplaas en Eskom.

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.