Energy efficiency demand side management for sustainability: Applicability of new methods in the SADC region

Energy is one of the largest operational costs and yet many managers do not look at it as something that can be optimised in order to improve on the bottom-line. By utilising energy efficient equipment and controlling the peak demand, big costs can be saved. The reduced power usage also leads to less emissions and hence to a cleaner environment. Whether it is described as reducing costs or improving yields, as optimising production or improving customer satisfaction, the overriding priority for any business unit manager or senior facility manager is managing or assessing exposure to risk. An effective Energy Efficiency Demand Side Management (EEDSM) Programme in the Southern African Development Community (SADC) region can alleviate the power crisis witnessdd in 2008 by reducing energy demand thus postponing supply side projects. Energy efficiency measures contribute few if any net emissions and other adverse environmental impacts. By lowering electricity expenditures, implementation of new, high-efficiency technologies and processes and low-cost housekeeping measures the competitiveness of energy-intensity industries can be improved. Consumer re-spending of energy cost savings can spur substantial macroeconomic growth and job creation as bonuses. In addition to demand side end-use efficiency, the efficiency of all elements of the supply system (generation, transmission and distribution) is important. In this regard, Integrated Resources Planning (IRP) and Life Cycle Costing Analysis (LCC) approaches are among the best approaches for power sector planning for accommodating issues that are raised regarding options assessments. IRP, however, broadens the range of supply and demand options considered in electricity planning - including new supply technologies (such as renewable energies) and demand-side management (DSM) - as well as addressing the costs and benefits of transmission and distribution. This chapter looks at options of the optimization of energy use as a business tool to increase the competitive advantage of an organisation. It also outlines the role of each stakeholder in an integrated Energy Efficiency and Demand Management Programme.