Differential Electricity Pricing and Energy Efficiency in South Africa
By international standards the economy of South Africa is extremely energy intensive with only a few countries having higher intensities. SAâ€™s primary energy use per unit of GDP is amongst the highest in the world. The high energy and electricity intensity of the economy partly reflects SAâ€™s resource endowments (in particular the abundance of coal) but is also a function of the historical under-pricing of coal and electricity by the authorities. South African mining & industrial electricity efficiency is particularly concerning and considerably lower than the global average. This paper sets out to fill a significant gap in the South African energy literature by highlighting the importance of incorporating electricity demand factors as part of the countryâ€™s energy policy and electricity planning horizon. The paper focuses its attention on modeling the electricity consumption of SAâ€™s industrial and mining sectors given these account for the lionâ€™s share of electricity demand. A differential electricity pricing policy which targets electricity intensive industrial and mining activities (as practiced in China since 2004) is viewed by the author to be a superior policy to blanket electricity price increases administered by authorities in an effort to encourage electricity savings and improve energy efficiency in South Africa.
|Date of creation:||2013|
|Contact details of provider:|| Postal: Newlands on Main, F0301 3rd Floor Mariendahl House, cnr Campground and Main Rds, Claremont, 7700 Cape Town|
Phone: 021 671-3980
Fax: +27 21 671 3912
Web page: http://www.econrsa.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:rza:wpaper:396. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charles Tanton)
If references are entirely missing, you can add them using this form.