Draft strategy seeks to embed energy efficiency as supply-side resource in IRP and IEP

A revised draft National Energy Efficiency Strategy (NEES), which is currently out for public comment, outlines a vision for incorporating energy efficiency as a supply-side resource into any updated Integrated Resource Plan (IRP) and future Integrated Energy Plan (IEP), while setting a target of avoiding 132 PJ of demand by 2035.
The revised document also seeks to close a prevailing policy gap that has arisen because Cabinet last adopted a formal energy-efficiency strategy in 2005, which has led to its role being deprioritised against other supply-side options.
This, despite a protracted period of supply insecurity and evidence indicating that efficiency is often the fastest and most cost-effective way to ease pressure on the system without constraining growth.
The draft revision has been prepared using financial and technical support from the World Bank, which stepped in after USAID withdrew its funding in 2025, as well as research and analysis by the University of Cape Town's Energy Systems Research Group and the Berkeley National Laboratory.
Addressing a recent virtual consultation webinar, Department of Electricity and Energy (DEE) energy-efficiency director Xolile Mabusela encouraged stakeholders to make their inputs on the draft document, released at the end of October for a 60-day comment period.
Mabusela said once these comments had been reviewed and incorporated, the NEES would be submitted for Cabinet approval, and a costed National Energy Efficiency Action Plan would be finalised.
The draft revision homes in on possible savings across industry, transport, agriculture, and commercial, public and residential buildings that had a combined final energy consumption of 2 162 PJ in 2024 and where consumption is forecast to grow by 11% to 2035.
The 132 PJ savings target represents a 5.5% improvement against business-as-usual consumption, which is forecast to rise to 2 400 PJ by 2035 without any intervention.
The strategic vision outlined for the period to 2035 is to make energy efficiency a driver of South Africa's energy security, affordability, competitiveness and resilience, the drafters of the revised NEES explained during the virtual stakeholder consultation session.
They also indicated that five interconnected goals had been identified for achieving the strategy and meeting the savings target, including:
Strengthening energy efficiency governance and policy through Cabinet's adoption of the strategy, as well as by developing the institutional capacity and identifying the funding needed to roll out the action plan. Having energy efficiency recognised as a national energy resource in the IRP and IEP is also outlined as a priority;
Establishing regulatory and financing mechanisms, including through updated Minimum Energy Performance Standards and labelling requirements, introducing incentives and obligations, rolling out a national funding plan, and facilitating an Energy Service Company market;
Embedding energy efficiency across all sectors through specific programmes covering industry, residential buildings, commercial and public buildings, transport, power generation and distribution, and agriculture;
Building institutional capacity and skills, including through a national energy-efficiency skills development plan; and
Establishing robust monitoring, reporting and verification by ensuring dedicated capacity within the DEE and through the development of a national energy data repository.
The draft NEES also proposes a phased implementation framework, with the initial foundation year of 2026/27 earmarked for the formal adoption of the strategy by Cabinet and the implementation of some "quick wins", including establishing the Intergovernmental Energy Efficiency Coordinating Committee and drafting a national funding plan.
During 2027/28, the aim would be to begin scaling up the roll-out around specific priority areas, and having the costed National Energy Efficiency Action Plan adopted.
From 2028/29, the idea would be...