Thesis (MPhil)--Stellenbosch University, 2012. / Please refer to full text for abstract.

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.

This study examined the relationship between economic structure and energy intensity in selected developed and developing countries of the world. A methodological and systematic approach was adopted to select the thirty-one countries explored in the study. Therefore, to answer the research questions posed in the study, the Granger Causality Technique and the Augmented Dickey-Fuller (ADF) method were used. This study discovered that the variables examined in the study showed variations. The variations emerged because of differences in methodologies and analytical frameworks adopted. Errorcorrection models were estimated and used to test for the direction of Granger causality. In the model, a high R2 was observed among the six variables (i.e. energy efficiency, per capita income, manufacturing, average energy prices, energy imports, technological developments), which invariably account for 60.8 percent of the variance in the energy intensity. Based on this, the unidirectional Granger causality runs from efficiency, per capita income and manufacturing to energy intensity. Hence, the price effects are relatively less significant in the causal chain. The result is at variance with the hypothesis that the structure of the economy does not determine its energy intensity. Nevertheless, a unidirectional Granger causality running from economic structure to energy intensity indicates that improvement in the economic structure would encourage a decline in energy intensity.

Thesis (MDF)--Stellenbosch University, 2012. / The provision of infrastructure in developing countries is traditionally a preserve of government discharged through state-owned monopolies. This arrangement enables the government to charge tariffs below cost recovery as a way of protecting consumers. Unfortunately, the state utilities are generally run inefficiently, relying on the public budget for both capital and operational expenditure. Private sector players have gradually started to engage in the provision of infrastructure in recent years. Working alone or in co-operation with government, these players have offered a viable alternative for securing financial resources by using well-structured project finance structures and expertise for efficient delivery of services, such as roads, water, electricity and hospitals. The private sector participation has resulted in fiscal relief as funding sources are broadened to include domestic and offshore capital markets. It has also been accompanied by necessary sector reforms, such as legislative amendments to protect private property, allowing private players to invest in the respective infrastructure domains. Consumers‟ perceptions have been mixed, largely due to resultant higher costs of services. In Tanzania, the Tanzania Electricity Supply Company (TANESCO), a vertically-integrated state monopoly, is responsible for generation, transmission, distribution and retailing of electricity. As sole provider, TANESCO has woefully failed to serve the estimated demand of about 1 200MW. Lack of adequate funding for new capital investment and maintenance of the existing network has seriously curtailed output to just over 500MW – less than half of installed capacity. This situation has been compounded by drought on the predominantly hydro-based generation. Transmission losses have also worsened electricity delivery. The result is that only 14 percent of the urban and about two percent of the rural population had electricity access as at 2010. Sector reforms introduced in the 1990s allowed independent power producers (IPPs) to set up fuel and gas-fired generation facilities and selling output to TANESCO under Power Purchase Agreements. Worsening electricity shortages have forced the Ministry of Energy and Minerals to engage more IPPs on an emergency basis at very exorbitant feed-in tariffs. Other smaller-scale private generators have also entered the deregulated generation sector using the regulatory framework set up by the Energy and Water Utilities Regulatory Authority (EWURA). Various generation technologies are used and off-grid installations have enabled potential consumers beyond the national grid to have access. This study presents perceptions on challenges faced by private sector investors and financiers in participating in electricity generation. The findings highlight the apparent lack of appetite by financiers to underwrite long-term infrastructure projects. Furthermore, the capital markets are not developed sufficiently to meet the capital needs of private investors who see opportunity in the largely unserved electricity market. The results of the study help to show that the challenges of providing sufficient and affordable electricity in Tanzania cannot be addressed within the context of current macro-environmental circumstances. Specific policy guidelines are required to enhance the level of development of the financial market, facilitate private sector access to the required debt capital, and improve the tariff structure to attract investments in the electricity generation segment.

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.

Demand for liquid fuels (i.e., petroleum products) has burdened the U.S. with major challenges, including national security and economic concerns stemming from rising petroleum imports; impacts of global climate change from rising emissions of CO2; and continued public health concerns from criteria and hazardous (i.e., toxic) air pollutants. Over the last decade or so, biofuels have been touted as a supply-side solution to several of these problems. Biofuels can be produced from domestic biomass feedstocks (e.g., corn, soybeans), they have the potential to reduce GHG emissions when compared to petroleum products on a lifecycle basis, and some biofuels have been shown to reduce criteria air pollutants. Today, there are numerous policy incentives—existing and proposed—aimed at supporting the biofuels industry in the U.S. However, the Renewable Fuel Standard (RFS) Program stands as perhaps the most significant mandate imposed to date to promote the use of biofuels. Overall, the RFS stands as the key driver in a transition to biofuels in the near term. By mandating annual consumption of biofuels, increasing to 36 bgy by 2022, the program has the potential to significantly alter the state of the U.S. liquid fuels sector. Fuel transitions in the transportation sector are the focus of this thesis. More specifically, the increasing consumption of biofuels in the transportation sector, as mandated by the RFS, is examined. With a well-developed, efficient, and expensive, petroleum-based infrastructure in place, many barriers must be overcome for biofuels to play a significant role in the transportation sector. Identifying and understanding the barriers to a biofuels transition is the objective of this thesis. Although fuel transitions may seem daunting and unfamiliar, the U.S. transportation sector has undergone numerous transitions in the past. Chapter 2 reviews major fuel transitions that have occurred in the U.S. liquid fuels sector over the last half century, including the phasing out of lead additives in gasoline, the transition from MTBE to ethanol as the predominant oxygenate additive in gasoline, and the recent introduction of ULSD. These historical transitions represent the uncertainty and diversity of fuel transition pathways, and illustrate the range of impacts that can occur across the fuel supply chain infrastructure. Many pertinent lessons can be derived from these historical transitions and used to identify and assess barriers facing the adoption of alternative fuels (i.e., biofuels) and to understand how such a transition might unfold. Computer models can also help to explore the implications of fuel transitions. In order to better understand the barriers associated with fuel transitions, and to identify options for overcoming these barriers, many recent research efforts have used sophisticated modeling techniques to analyze energy transitions. Chapter 3 reviews a number of these recent modeling efforts with a focus on understanding how these methodologies have been applied, or may be adapted, to analyzing a transition to biofuels. Four general categories of models are reviewed: system dynamics, complex adaptive systems, infrastructure optimization, and economic models. In chapter 4, scenarios created from a high-level model of the liquid fuels sector (the Liquid Fuels Transition model) are presented to explore potential pathways and barriers to a biofuels transition. The scenarios illustrate different pathways to meeting the requirements of the RFS mandate, and differ based on the overall demand of liquid fuels, how the biofuels mandate is met (i.e., the mix of biofuels), and the status of the ethanol blend limit in the motor gasoline sector. The scenarios are used to evaluate the infrastructure implications associated with a biofuels transition, and illustrate the uncertainty that exists in assessing such a transition. / text

The aim of this thesis is to analyse how space heating for single-family houses, and energy system conversion has been constructed and discussed at national, municipal and household levels. Political documents have been studied, and interviews have been carried out with politicians, civil servants and householders in the municipality of Falun. In order to study and analyse similarities and differences between these three political levels, the following main questions were asked: In which sense is the use of electrical heating formulated as problematic? How are the causes of these problems presented, and which solutions are suggested? What are the effects of how problems, causes and solutions are constructed? At the national level, the use of electricity produced by nuclear power was considered a problem. Initially the municipality’s policy documents present the same problem, but there is a change of focus to the problem of imported electricity produced by fossil fuel, and the resulting emissions. At household level, the problem was often an old and badly functioning space-heating system. But some households did not formulate a problem before they converted. Instead they were influenced by their neighbours and thereby convinced. At all three political levels, there is consensus on the households’ responsibility concerning energy transition. While industry tends to be considered incapable of cutting down its energy consumption, households are expected to take the responsibility seriously. Furthermore, within the household, the heating system tends to be constructed as a predominantly male concern. At all three levels, households are perceived as dependant on economical subsidies when taking the decision to convert from electrical heating. Although it is interesting that the interviewed householders only apply this view to others than themselves. They are convinced that other households need subsidies to act in an environmentally correct way. The discourse concerning the Swedish energy transition illustrates a shift away from a definition of ecological modernisation where environmental considerations influence economic development. The thesis clearly shows how economic arguments repeatedly influence environmental concerns. However, the tension between the two is played down and concealed through the lack of problematisation of the responsibility of industry, and through the focus on the need for education and future opportunities. Political dialogues concerning the use of electrical heating and the conversion of energy systems towards more renewable energies are dominated by economic arguments at the three levels. One effect of this is an assumption that energy policy instruments such as information and economic subsidies are essential for the energy transition. However, if householders rather are influenced by their neighbours should the government use economic subsidy as the main energy policy instrument?

With the adoption of the Act on Promotion of Use of Renewable Energy Resources in 2005, the Czech Republic took a significant step forward to examine the economic field of energy in general in light of environmental and climate protection. With this act, the Czech Republic followed the example of other European Union member states in asserting the goal of reducing greenhouse gas emissions and seeking alternative energy resources in the spirit of the Kyoto Protocol obligations. The goal of this Master's thesis is to present and logically analyze the relevant legal legislation concerning renewable resources passed in the Czech law. The emphasis of this analysis of the Act No. 180/2005 Sb. on the Promotion of the Use of Renewable Energy Resources in the context of energy law, whereby the attention is placed on promotion of energy production, those in the Czech Republic represent two alternative schemes: "feed-in tariff" and "green bonus certificates." With the broad definition of renewable energy resources in the introduction, this thesis comprises a basic overview of this comprehensive legal problem. This thesis consists of five separate chapters, which are closely related.

This thesis focuses on the renewable energy policies for the case study countries (European Union, United States, United Kingdom, Turkey, and Nigeria) with using quantitative and qualitative analysis. The thesis adopts a three -pronged approach to address three main issues: The first paper investigates a 1990-2008 panel dataset to conduct an econometric analysis of policy instruments, such as; feed-in tariffs, quotas, tenders, and tax incentives, in promoting renewable energy deployment in 27 EU countries and 50 US states. The results suggest that renewable energy policy instruments play a significant role in encouraging renewable energy sources. Using data from 1990 to 2012 with the vector auto regression (VAR) approach for three case study countries, namely United Kingdom, Turkey, and Nigeria, the second paper focuses on how renewable energy consumption as part of total electricity consumption is affected by economic growth and electricity prices. The findings from the VAR model illustrate that the relationship between case study countries’ economic growth and renewable energy consumption is positive and economic growth in case study countries respond positively and significantly. The third paper focuses on the relationship between renewable energy policies and investment in renewables in the countries of United Kingdom and Turkey. The third paper builds upon current knowledge of renewable energy investment and develops a new conceptual framework to guide analyses of policies to support renewables. Past and current trends in the field of renewable energy investment are investigated by reviewing the literature on renewable energy investment linkage with policies, which identifies patterns and similarities in RE investment. This also includes the interview analysis with investors focusing on policies for renewable energy investment. The results from the interview and conceptual analysis show that renewable policies play a crucial role in determining investment in renewable energy sources. The findings from this thesis demonstrate that renewable energy policies increase with a growth of the renewable energy investment in the sector. Finally, the outcomes of this thesis also contribute to the energy economics literature, especially for academic and subsequent research purposes.

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