The energy landscape in which companies operate has changed noticeably in recent years. Internationally the growing awareness of the environmental impact of industrial and commercial operations has led to a desperate increase in energy measurement and monitoring.

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This has directly affected the direction that the South African government has taken in this regard. The updated IRP provides the framework for the government to map and define the direction of energy provision and climate change mitigation through various means (e.g. regulations and incentives). The most notable recent example of this is National Treasury’s intent to introduce carbon taxation from 2016.

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Existing energy-related incentive programs (e.g. Green Fund) will continue and also be integrated with carbon tax regulations. As such, the monitoring, measurement, and management of energy usage and energy efficiencies will become increasingly important. This will require firms to be progressively more adept at managing energy-related processes – for instance as outlined under the ISO50001 series of standards.

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A compounding issue within the South African environment is the ongoing deterioration of electricity supply performance. Despite energy security being placed highest on NERSA’s energy policy agenda, and the provisions of supply agreements and requirements outlined in NRS-048, electricity supply remains a material risk for firms operating within the country.

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Why Energy and Carbon Management?

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• Short payback periods for energy efficiency projects

  • Operational efficiency projects, 2 months;

  • Equipment efficiency, 1.5 Years &

  • Technology change projects, 5 Years

• Ever-increasing energy prices

• Energy efficiency is the first step to carbon neutrality and/or carbon footprint reduction

• Available incentives and subsidies (e.g. Green Fund etc.)

• Improves CDP performance

• Influence ranking within green ETF indexes

• Lower the potential impact of carbon taxes

• New draft regulations regarding registration, reporting on energy management, and submission of an energy management plan