Energy Scenarios for Cape Town EXPLORING THE IMPLICATIONS OF DIFFERENT ENERGY FUTURES FOR THE CITY Energy Research Centre National LTMS: Two Scenarios frame the choice for South Africa 1,800 1,600 Growth without Constraints 1,200 1,000 THE GAP Current Development Plans 800 600 400 Required by Science 200 7 20 30 20 33 20 36 20 39 20 42 20 45 20 48 20 2 4 20 2 1 20 2 8 20 1 5 20 1 2 20 1 9 20 0 6 20 0 3 20 0 Mt CO 2 -equivalent 1,400 Energy Growth into the Future Energy consumption for ‘Business as Usual’ is expected to almost quadruple by 2050 Greenhouse Gas Emissions into the Future Greenhouse gas emissions associated with the ‘Business as Usual’ energy growth is untenable given the national and international pressures to reduce carbon emissions. KEY ISSUE : PROCEEDING ALONG A BUSINESS AS USUAL SCENARIO HAS SIGNIFICANT RISKS • • • • • • • • Higher energy expenditure for the city’s occupants Vulnerability to power price hikes Inefficient economy Fewer jobs taken advantage of in the energy sector A vulnerability to a carbon constrained future Susceptible to oil price rises (‘End of cheap oil’) Peak Electricity vulnerability Energy Demand will Loss of competitive advantage as a green city quadruple by 2050 if current energy demand growth continues What do we do? Energy interventions and Greenhouse Gas Emissions Business as usual Optimum Energy Future 1 Electricity efficiency 2 Transport efficiency 3 Renewable electricity supply Optimum Energy Future interventions do not compromise energy service delivery. Total End User Expenditure for Scenarios Optimum Energy Future results in similar overall energy expenditure (incl. massive transport infrastructure investments) than Business as Usual without compromising energy service delivery. A HIGH RENEWABLE ENERGY FUTURE RESULTS IN A SIGNIFICANT INCREASE IN JOBS CREATED Job creation Business as Usual Optimum Energy Future Municipal Waste 0 123,231 Solar Thermal Elec 0 23,078 280,397 844,967 (long‐term)` Wind SOLAR WATER HEATERS: A solar water heater mass rollout New Nuclear 320 1,667 programme to reach 50% of the City’s houses (approx 0.5 New Fossil Base 0 0 million systems) would create 10,200 job‐years over the next New mid and peak 4,858 3,873 Existing Hydro 4,891 4,451 10 years and be economically beneficial to the citizens and the Existing mid and peak 454 429 economy. Existing Base Existing Nuclear Total jobs from generation 0 0 499 286 291,418 1,001,981 SWHs 799,828 Energy Efficiency 11,329 TOTAL ALL 291,418 1,813,138 Increase in costs for Business as Usual (R5bn) Increase in costs for Optimum Energy Future (R2.5bn) 1 EFFICIENCY: ALMOST ALL ELECTRICITY EFFICIENCY INTERVENTIONS ARE FINANCIALLY SENSIBLE AND PAY THEMSELVES BACK, LEADING TO A MORE EFFICIENT ECONOMY Mid‐hi inc residential Commercial Low‐inc residential The bars represent cumulative net savings (i.e. considering capital costs and electricity savings) of electricity efficiency interventions. Govt ELECTRICITY TARIFF DESIGN WILL NEED TO CHANGE IN FUTURE TO PROMOTE ENERGY EFFICIENCY AND AT THE SAME TIME TO PRESERVE THE CITY’S REVENUE BASE • Electricity tariffs currently promote more sales, not efficiency • City revenue dependent on electricity sales • Different tariffs can generate needed revenue and promote efficiency ‐ termed ‘decoupling’ – de‐linking increasing income by increasing consumption. Electricity Water Sanitation Solid waste Rates & general 2 TRANSPORT: Transport resource intensity Urban sprawl… Less dense More dense The need to Densify the City Densification of the city is expected to result in significant reductions in expenditure to service the population with adequate public transport. (and also other service infrastructure – storm water, water, electricity) ZAR 10 billion saved ZAR 40 billion saved 3 Renewables: Electricity supply mix BUSINESS AS USUAL ELECTRICITY SUPPLY MIX? Wind New Coal Existing Coal OPTIMUM ENERGY FUTURE ELEC SUPPLY MIX Solar Thermal Wind New Coal Existing Coal The Optimum Energy Future interventions Sector Residential Interventions Efficient lighting Efficient water heating (solar water heaters or heat pumps) Commercial Efficient Heating, Ventilation and Air Conditioning (HVAC) Industrial Local Government Freight Transport Passenger Transport Electricity Supply Mix Efficient water heating Efficient lighting Efficient motors Efficient HVAC Efficient lighting Buildings: efficient lighting Buildings: efficient HVAC Efficient street lighting LED traffic lights Fleet fuel efficiency Freight from road to rail Hybrid and electric private vehicles Public transport vehicle efficiency Modal shift from private to public transport Renewable energy in mix THANK YOU