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Monday, January 29, 2007

South Africa: Apathy Keeps Green Energy Off the Boil

South Africa: Apathy Keeps Green Energy Off the Boil
January 27, 2007Posted to the web January 29, 2007
Theo CovaryJohannesburg
The harsh realities of the effect of global warming are inescapable, so why are we still passing the buck instead of taking responsibility, asks THEO COVARY
THERE is no shortage of warnings of the effects of global warming; daily commentary in newspapers and Al Gore's hard-hitting documentary film, An Inconvenient Truth. Respected economist and academic Sir Nicholas Stern predicts that dealing with global warming now will cost 1% of global gross domestic product (GDP), and failure to do so will cost as much as 20% of global GDP.
The South African economy is growing at about 4% a year and we cannot make a dent in the unemployment rate. Can you imagine the effect if the economy contracts by a fifth? The social consequences will be catastrophic.
I began researching renewable energy as part of my MBA with a focus on domestic solar water heaters. SA has ideal climatic conditions for solar power, so why is this industry so small?
A research questionnaire was posted on the internet, with the intention of examining electricity habits; views on pollution and the environment; people's energy efficiency conduct; and perceptions of solar water heaters.
The target market was households with an income of more than R20000 a month, the highest users of electricity; some have up to four geysers.
It stands to reason that they should be doing something to try to reduce their electricity consumption. They can afford to install a solar water heater; they're likely to understand the effects of pollution and global warming (regardless of whether they accept it); and they would be most affected by power outages during peak demand periods -- 5pm-8pm.
Qualitative research was also conducted and there were several meetings with solar water heater retailers at which they were asked about the challenges they faced and why they believed the industry was struggling. The same questions were put to the minerals and energy department's Central Energy Fund, which is responsible for the promotion of renewable energy projects.
The findings are as expected. There is awareness about environmental issues but this is coupled with equal doses of apathy. The bottom line is that no one wants to be inconvenienced -- 76% of respondents say greenhouse gases are causing climate change and 59% are aware that SA is one of the world's heaviest polluters relative to its GDP.
The results demonstrate that the upper income group has a good grasp of the situation; these issues have been documented in the press and experienced by most during ongoing blackouts.
But here inconsistencies begin to appear: 71% say that energy efficiency is important to them and 51% believe their individual efforts to reduce emissions will make a difference.
But when buying an appliance, only 26% use its energy efficiency rating as a deciding factor; a mere 26% have bothered to check whether their geyser is set to the recommended 55°C; while a paltry 11% have wrapped a blanket around their geyser.
However, 81% say electricity is a commodity, and if it can be paid for it must be available. This suggests a no-compromise mind-set on consumption habits. But 72% will consider installing a solar water heater and 52% say that they are cost effective.
More than two-thirds, however, say that they do not know where to get more information on them.
The solar heater industry says it struggles to compete with Eskom -- one of the world's cheapest electricity suppliers -- and lacks government support. Not only are there no financial incentives for households to install solar water heaters, but imported units are burdened with an excise duty of 15% -- hardly a level playing field if you consider that, in his 2006 budget, Finance Minister Trevor Manuel allocated R84bn over five years for the generation, transmission and distribution of nonrenewable electricity.
Deputy Science and Technology Minister Derek Hanekom last year allocated a mere R20m and committed to a further R100m over the next three years to the Central Energy Fund to generate ideas and guidelines on renewable energy alternatives.
With no government incentives and a domestic solar water heater often costing up to three times more than a conventional geyser, the industry struggles to convince would-be clients who want a return on investment of the economic potential of installing one.
It is evident that the industry is at fault and should back their products. This is where mind-sets play such a big role. A person installing a solar water heater is doing it for environmental or economic reasons -- preferably both.
The power supply in solar heating is the sun, but it is available only during the day and is less powerful in winter and on overcast days. However, the heater is backed up by electricity.
Behavioural patterns must adapt to this technology if we are to maximise the benefit.
Optimum usage can result in up to 90% savings and poor usage in 50% savings.
A 150l electric geyser consumes about 657kWh a month, which in turn produces 328kg of carbon dioxide. Assuming a domestic solar water heater life span of 15 years at 70% output, a household can reduce its carbon dioxide emissions by more than 41 tons.
We all want the best for ourselves and our families; the cars we drive, the houses we live in, the clothes we wear and the food we eat. We send our children to the best schools and sports facilities. We keep them abreast of expensive technological gadgetry and do whatever else we can to equip them for the future.
But when it comes to doing our individual bit to reduce global warming and air pollution in an attempt to leave a better world for them, we want a return on investment. Why don't we ask for this on the gas-guzzling, pollution-spewing R500000 cars that many of our egos demand?
http://allafrica.com/stories/200701290427.html
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