Energy efficiency

Introduction
Along the energy conversion process from primary to consumable energy including its distribution logistics, energy losses always occur. Globally there are many different technologies and processes for the conversion, transportation and distribution of energy. All generate losses, which is expressed and measured in energy systems as efficiency rate.

Waste heat recovery
Heat is always co-produced, is the largest loss contributor in electricity generation and cannot be distributed to consumers over long distances. The largest energy efficiency potential lies in waste heat recovery, usually referred to as cogeneration or combined heat and power (CHP) generation. This can easily be realised by decentralised down-scaled electricity generation, instead of producing power in large scale centrally located facilities.

Energy transport and distribution
Further energy losses are found in the transportation and distribution of energy to consumers. Common examples are losses in the electricity grid, leakages in pipelines or diesel consumed by tank trucks. Despite the diversity we believe these losses must be included in a holistic energy system efficiency rating.

Energy application
Tailored energy application solutions deployed at the consumers premises incorporates the heat demand requirements into customised system designs. This approach aims to increase the efficiency rate of the entire system. It is necessary to have a clear understanding of the terms primary energy and consumable energy.

Primary energy is the start of any energy value chain and refers to energy in its raw state. Raw energy sources can be distinguished between fossil and renewable fuels, defined by its reproduction period.

  • Fossil fuels are: Coal, lignite, natural gas, crude oil, uranium, and others
  • Renewable fuels: Sun, wind, hydro, biomass, ocean waves, and others

Consumable energy is found at the end of the value chain ready for use for the final residential, commercial, or industrial consumer. Examples of usable energy are electricity, transportation fuels (for aircrafts, cars, trucks, rails, ships, etc.), and heating (also used for steam and cooling) to roughly categories the consumption areas of every economy.

The following diagram visualises an example of energy infrastructure enhancement measures:

Energy EfficiencyThe successful implementation of energy efficient infrastructure measures have a significant impact and benefits on economies:

  • reduced primary energy consumption
  • opportunities for small and medium sized enterprise development
  • localisation of energy supply
  • increased robustness on energy costs
  • enhanced competitiveness
  • creation of local and decentralised jobs in energy production and manufacturing
  • mitigation of green house gas emissions

In South Africa energy efficiency is promoted through a tax incentive for energy savings realised by investments in energy efficiency and is regulated in section12L of the National Treasury, Income Tax Act No. 58 of 1962.