Economies aim to expand over time, which always implies the need for increased energy availability in support of this growth. Governments can use their procurement of energy generation to further enhance the benefit to their economies via certain policy tools. One such tool is Local Content Requirements (LCR) where procurement of a good dictates that a certain value has to be sourced locally. The argument for this tool is that spend is localised and manufacturing, as well as job creation, can be stimulated due to industry establishing in the host economy. However, this practice is distortionary in effect and it does not create a fair playing field for global trade. Furthermore, if the local content definition is weak, or open to manipulation, the goals of such a policy may not be achieved at all. This study looked into the local content requirements of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and measured the impact of this policy on the renewable energy sector in general. It was found that, in order to implement a policy such as local content, the host economy had to have certain pre-existing conditions in order to avoid any negative welfare effects. Due to SA not holding all supportive pre-conditions for supporting local content policy, the impact and effect of LCRs has not been optimal and it has not been found to be a sustainable mechanism to continue using into the future indefinitely. The pricing of renewable energy was also found to be higher due to local content and such pricing is passed on to the energy consumer. Therefore, the net welfare impact created for South Africa is diminished in exchange for the creation of jobs and manufacturing, but due to the unsustainability and potential manipulation of the system the country is not maximising the welfare potential from the REIPPPP as it should. It was found that SA renewable energy resources do exist and the logistics infrastructure is strong, providing good potential for investment into renewable energy projects. The demand created by the REIPPPP provided a good market, but there was uncertainty in the long term planning and stability. So, from a market perspective this could be further enhanced. Government had created a sufficient platform for investment, but areas of development such as clusters, R&D and skills training would create a better support environment for LCR policy and strict monitoring of this would also be required to prevent any manipulation. The use of LCRs increases project costs and risk, which is passed onto the energy consumers, but this could be reduced if local goods were more readily available at the right price and at the right quality and quantity. Focus on clusters would once again assist in this regard as independent power producers (IPPs) and engineering procurement and construction (EPC) entities would be able to source components and goods locally in a more cost-effective manner. As the LCRs currently stand in the REIPPPP, it would seem that South Africa is making renewable energy more expensive and although it is argued that this is done for the benefit of creating a new industry and jobs, these are not sustainable and so the current LCR policy will only create short term benefits.

The increasing demand for electricity, the rising price of energy from conventional sources and limited electricity supply are a global concern. The demand on electricity generation could be alleviated by diversifying the sources from which electricity is obtained to achieve the goals of long-term electricity supply. Diversification implies finding alternative sources of energy such as renewable energy for the production of electricity. The South African electricity system is under increased pressure to provide and maintain electricity supply to its users. Electricity production may be regarded as a key contributor to the social and economic development of South Africa. The challenges are so serious that it will gradually become increasingly difficult to extract sufficient resources to satisfy increasing electricity demand. Growth in the electricity and industrial sectors signifies profound changes in the entire energy industry. The South African power utility Eskom, supplies 94% of South Africa’s electricity but the risk of inadequate supply because of increasing electricity demand is mitigated through the employment of Independent Power Producers (IPPs) which supply to the grid. However, although a limited number of IPP entrepreneurs sell electricity to the Eskom grid, there is no enabling entrepreneurial environment in which they can thrive. There is no positive movement to inaugurate policies and processes. This has created an opportunity for Smart Grid access as a viable option to accommodate IPP entrepreneurs into the grid. Investing in renewable electricity sources may provide feasible alternatives for the electricity industry, it would alleviate pressure on current supply whilst creating an enabling entrepreneurial environment for IPP entrepreneurs and increase entrepreneurial activity. This study investigates a proposed model for an enabling entrepreneurial environment for IPPs in the RE sector that can be utilised to ensure increased entrepreneurial activity within the electricity industry. Establishing such an enabling environment would contribute positively to the alleviation of the electricity demand crisis, result in lower carbon emissions and create a sustainable, more diverse electricity generation mix. This proposed IPP industry model for an enabling entrepreneurial environment is presented to address the problems experienced at the different levels of the electricity industry. The model can be utilised to increase entrepreneurial activity while eradicating major electricity challenges at different levels in the South African electricity industry. The results indicate that that RE, in the form of solar and wind, has the potential to expand the South African electricity industry significantly. Therefore, in order to reform the South African electricity industry, stakeholders need to embrace entrepreneurship as IPP entrepreneurs. This can be done effectively by the incorporation of IPP entrepreneurs into the electricity network. However, an enabling entrepreneurial environment in which to operate must be ensured. In this study, five important variables support the establishment of an enabling entrepreneurial environment for IPP entrepreneurs. These have been identified as; Smart Grids, Entrepreneurship, Renewable electricity environment, SA policy and Stakeholder theory. An important contribution has been made towards Stakeholder Theory. This has proven to be instrumental within the RE sector of the electricity industry in South Africa, as the mentioned role players have a reciprocal role to play. Three surveys were conducted at three levels of the electricity industry, namely, at organisational, legislative and entrepreneurial levels and included Eskom Management, National Energy Regulator (NERSA) Management and Approved and Non-approved IPPs. Both qualitative and quantitative research methods were utilised in this research study. The results indicate that SA Policy is instrumental in assisting stakeholders to facilitate the IPP process and feed the power from RE generation into the network. Most respondents were positive about the role of Smart Grids in future electricity generation and their contribution towards creating an enabling entrepreneurial environment for IPP entrepreneurs. Respondents indicated that by policy decisions, greater emphasis can be placed on the results of climate change and environmental challenges. Emphasis on the incorporation of stakeholders proved imperative to this group (IPPs). The results indicated that stakeholder management is a key factor contributing to the establishment of an enabling entrepreneurial environment. The major contribution of this study is a proposed entrepreneurial model that can improve future sustainability of the electricity supply.

M.Phil. ( Energy Studies) / In contrast to conventional energy sources, the advantage of renewable energy lies in the fact that it is virtually inexhaustible and that its utilisation is accompanied by minima environmental pollution. I t is, furthermore, very appropriate especially seen in the light of the large Third World component of the South African energy economy. It therefore becomes necessary to evaluate the adequacy of Government strategy as far as the optimal development and utilisation of the renewable energy sources with the best potential in South Africa are concerned, against present and future needs for and the utilisation possibilities of these sources...

This dissertation explores renewable energy strategies for low-income housing in South Africa using several case studies from the City of Cape Town and surrounding areas. The paper engages with the background and theories underpinning renewable energy for low income housing, analysing the key literature and focusing on renewable energy policies and current research in Cape Town, South Africa. It attempts to analyse the implications of current policy, the practical implications of renewable energy in low income housing developments and the conflicts that can occur between environmental and poverty interventions. The research for this paper involved face to face interviews with individuals working in the renewable energy for low income housing field or exposed to projects of this type. From these interviews it emerged that renewable energy interventions in housing can more significantly reduce environmental impact when applied in middle and upper income housing developments. but also that particular kinds of renewable energy and energy efficiency interventions are suitable for low income housing developments. It became clear that the role of the town planner is central in ensuring the success of renewable energy projects, and that political will is also a key factor. / Thesis (M.T.R.P.)-University of KwaZulu-Natal, 2007.

Climate change, greenhouse gas emissions (GHG), and environmental pollution have all become buzzwords of our time. The awareness in recent years of the degradation of the planet by prioritising economic gain has allowed for open debate about the way the planet is being affected by development. However, there is wide consensus that development cannot be stopped or slowed down, but may be conducted in a sustainable way. The aim of this research is to investigate the role of Clean Development Mechanism (CDM) as a tool to promote the use of renewable energy in South Africa. The Kyoto Protocol was adopted in 1997, which stipulated that developed nations of the world would take on emission reduction targets to reduce their GHG emissions by five percent below 1990 levels. These emissions will be evaluated by the CDM Executive Board at the end of 2012 and penalties are payable should countries not meet their stipulated targets. South Africa is defined as a country (under CDM) which is eligible for hosting CDM projects, and does not have emission reduction targets. This research aims to explore the barriers to the successful implementation of CDM projects in South Africa, with a particular focus on renewable energy projects. In order to address the research problem, the theory of ecological modernisation (Mol, 1995; Hajer, 1995; Christoff, 1996) is applied to analyse the policy decisions around renewable energy, thus highlighting areas that need attention in order to make significant changes in the climate change policy decisions prevailing at the time of the study. Ecological modernisation is a policy orientated discourse which describes environmental issues in a particular manner. In the developing country context of South Africa, a case of weak ecological modernisation has been established (Christoff, 1996; Scott and Oelofse, 2005; Blowers and Pain, 1999). This is in part due to the weak participatory approach which has been adopted by government. This study had found that South Africa has robust and progressive policies in terms of environmental management and renewable energy. However, the area in which it seems to be failing is implementation. The results of this study show that CDM is not popular in South Africa due to a host of reasons. Funding and lack of implementation of projects seem to be the key factors. Eskom’s relatively low electricity price still hinders the wide spread implementation of renewable energy and energy efficiency projects. This study concludes that CDM projects have not succeeded in South Africa due to the bureaucratic process that CDM projects need to undergo coupled with the two issues mentioned above (funding and relatively cheap electricity). This is completely different compared to its other developing country counterparts like India, China and Brazil. This study was conducted at a time when the Kyoto Protocol was nearing its end. Should the agreement not be extended, it would be a lost opportunity for South Africa in terms of gaining technology transfer from the developed world as well as much needed funding for climate change projects. / Thesis (M.Soc.Sc.)-University of KwaZulu-Natal, Durban, 2013.

M.Sc. (Geography) / Over the last three years, a number of environmental impact assessment reports (EIARs) pertaining to renewable energy (RE) projects have been submitted for environmental authorisation in South Africa. However, the quality of EIARs have been criticised internationally as well as in South Africa. Poor quality EIARs has the potential to negatively impact environmental decision-making processes and therefore it is vital to provide baseline data regarding the appraisal of such EIARs in South Africa. The present study has evaluated the quality of basic assessment reports (BARs) dealing with RE projects in South Africa. This is crucial in providing key insights to environmental management practice, especially if we are to determine whether or not RE projects have the potential to achieve sustainable development goals linked to clean development mechanisms (CDMs). Apart from assessing quality aspects, the goal of the study was also to analyse the strengths and weaknesses inherent in the EIARs involved. To address the research problem adequately, the Lee-Colley Review Package was utilised with minor adaptations where feasible. Based on the analyses derived from the review package selected, the overall quality of EIARs was found to be 70% satisfactory whilst 80% of the overall scores were borderline quality grades. The review areas pertaining to the description of the development and environment, together with the identification and evaluation of impacts, were better performed than the review areas concerning alternatives, mitigation measures and communication aspects of the EIARs. The strengths of the EIA processes related to the description of the project (purpose, objectives and nature) and site descriptions. Weaknesses of EIARs pertaining to RE projects were identified as insufficient non-technical summaries and poor summaries of the main issues. The review categories pertaining to waste management, mitigation measures and emphasis were not graded as weaknesses of the EIARs. Nevertheless, low numbers of satisfactory quality scores were documented for these review categories, which are particularly concerning. The fairly marginal quality of EIARs pertaining to RE projects may be attributed to lack of sufficient (human resources) capacity and transparency throughout the EIA process in South Africa. These aspects became evident through vague descriptions of impact prediction methods, insufficient elucidation of mitigation measures, a high degree of subjectivity and generally poor communication of EIA results to stakeholders involved. Apart from these findings, the study also made some recommendations for further studies such as the need to examine the following EIA aspects, namely, (1) the characterisation and reduction of elements of subjectivity within existing reports, (2) an assessment of the effectiveness of screening processes in South Africa and (3) the identification of obstacles and barriers hindering effective communication in the presentation of EIA results.

South Africa generates more than 90 percent of its total energy capacity through non-renewable sources. With coal forming the predominant energy source, South Africa became the leading carbon emissive nation in Africa, emitting 450 million tonnes of CO2 in 2011. In an international effort to restrict global average temperature rise to 2° C above the average prior the industrial revolution, the Kyoto Protocol has been extended for another 8-year commitment period. This is complementary to an expected resolution of a new legally binding climate change policy in 2015. This policy will aim to introduce financial penalties for nations failing to meet ascribed GHG emission targets by 2020. In an attempt to meet these climate change resolutions South Africa will research and develop cleaner, alternative forms of energy, including hydro, wind, and biomass forms of renewable energy, in addition to designating stringent building regulations for the Incorporation of solar energy. These measures form part of an Integrated evelopment Plan that aims to generate a target of 10,000 GWh of renewable energy in 2013. South Africa is also investigating the possibilities of extracting its shale gas reserves and implementing it as a major energy source. This energy mix has given little attention to geothermal energy. The reasons for this omission appears to be the lack of active volcanism and previous research that suggests South Africa, largely underlain by the Kaapvaal Craton, has a relatively low heat Flow profile, deemed insufficient for harnessing geothermal energy.

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 (MBA)--University of Stellenbosch, 2011. / The government has stated its intentions to increase the usage of solar water heating (SWH) through its National Solar Water Heater Programme (NSWHP). As described in the report, increased adoption of SWH would have a number of benefits for South Africa. Firstly, replacement of electric geysers by SWHs would contribute to the meeting of energy efficiency targets through the reduction of energy consumption. Secondly, the widespread adoption of SWHs would help SA to meet its renewable energy targets. Thirdly, it would result in growth in the SWH industry, including the manufacturing, installation and related sectors, thereby contributing to an increase in 'green' jobs. It would have the socio-economic benefit of energy security for South Africans. The research report looks at the factors influencing the SWH industry's future growth from the point of view of the suppliers. It considers the interplay between consumers (market demand), government (public policy measures) and suppliers (businesses providing services related to SWH) to determine how government can support industry, how suppliers can grow their business and industry and how government and industry can work together to create the conditions for sustained market demand. As is discussed in the literature review, there are certain barriers to the adoption of SWH technology. As such, government intervention is needed to help overcome these barriers. The literature review recounts the available policy tools and considers how these have been applied in other countries to stimulate demand for SWHs and to support the local industry. The research report takes the form of a survey of SWH suppliers with the following aims: - To describe the industry in terms of its age, maturity and ability to scale up; - To determine the major barriers to the industry's growth; - To specify the appropriate public policy tools to overcome these obstacles to growth; - To establish how confident the industry is in the NSWHP and government efforts to promote the industry; - To provide a list of key success factors that are required for the industry's long-term, sustainable development. The report concludes that there are three criteria that would help the industry to become sustainable: market demand certainty, investment confidence and positive competition. Certainty of future market demand would build confidence in the industry for investors. In turn, increased investment would benefit the forces of positive competition.

Thesis (MBA)--Stellenbosch University, 2012. / Bioethanol and biodiesel are currently the main biofuels. The United States of America and Brazil are the major bioethanol producers from maize and sugar cane respectively. European and Asian countries produce and consume biodiesel as transportation fuel. Generally, governments want to avoid importing biofuels, since this erodes the advantage of fuel security from growing fuel locally. There are however opportunities for many African countries to export to Europe and the United States of America, since they have preferential import tax exemption agreements with African countries. Sub-Saharan Africa has large potential to produce biomass. Inherently, South Africa has poor potential to produce biomass, due to the climatic conditions and water scarcity. However, South Africa has infrastructure, skills, commercial farmers and, importantly, government policy on biofuels. These advantages should be leveraged to optimise gains from a biofuel industry. A biofuels industry holds potential in terms of job creation and rural development gains, apart from the advantages of fuel security, greenhouse gas (GHG) emission reductions, stimulation of the agricultural sector, and reduced fuel imports with the balance of payment advantages. The South African government aims to develop rural communities in former homeland areas. If degraded land in these areas is recovered and used for production of biofuels, the environmental benefits are immediate and substantial. Fuel crop production in these areas does not compromise food security nor does it result in further deforestation. Creating jobs in rural areas can contribute to reduction of poverty. The Department of Minerals and Energy (DME) published its strategy in 2007. This excluded maize as permitted bioethanol feedstock, it sets a two per cent liquid fuels penetration target, and gave fuel tax exemptions for biodiesel and bioethanol. The biofuels would be distributed through voluntary low concentration blending into petroleum products by oil companies. The industry would be regulated and producers require licensing through the South African Revenue Service (SARS). The license conditions were mainly related to the type of feedstock, where it was produced, volumes produced, local consumption, environmentally friendliness, compliance with broad based black economic empowerment requirements and it should not compete with food sources. The strategy is up for review after the initial five years phase. Currently there are no commercial bioethanol fuel production plants in South Africa and only some small scale biodiesel production plants with very limited outlets to consumers. With all the apparent advantages, why is nothing happening in the industry? Business is not showing interest, proving that the economic conditions are not favourable. The government wants to control the production side to maximise the gains from it, but instead of assisting the industry, it has practically inhibited it from getting started. The consumers must also be prepared to accept the new fuels. Awareness, education and a culture of sustainable use are vital to create the required market. This is an exciting industry with potential benefits to South Africa and its society as a whole, but the fundamental elements of business must be in place in order for it to become self-sustainable.