Review Article
Page 1 of 8
AUTHOR:
Willemien du Plessis1
AFFILIATION:
1
Faculty of Law, North-West
University, Potchefstroom,
South Africa
CORRESPONDENCE TO:
Willemien du Plessis
EMAIL:
[email protected]
POSTAL ADDRESS:
Faculty of Law, North-West
University, Private Bag
X6001, Potchefstroom 2520,
South Africa
DATES:
Received: 20 Sep. 2013
Revised: 09 Jan. 2014
Accepted: 03 June 2014
KEYWORDS:
energy efficiency; energy
law; voluntary mechanisms;
ISO 50001; energy tax
HOW TO CITE:
Du Plessis W. Energy
efficiency and the law: A
multidisciplinary approach.
S Afr J Sci. 2015;111(1/2),
Art. #2013-0302, 8 pages.
http://dx.doi.org/10.17159/
sajs.2015/20130302
Energy efficiency and the law: A multidisciplinary approach
Energy efficiency and the law:
A multidisciplinary approach
South Africa is an energy-intensive country. The inefficient use of, mostly, coal-generated energy is the
cause of South Africa’s per capita contribution to greenhouse gas emissions, pollution and environmental
degradation and negative health impacts. The inefficient use of the country’s energy also amounts to
the injudicious use of natural resources. Improvements in energy efficiency are an important strategy to
stabilise the country’s energy crisis. Government responded to this challenge by introducing measures such
as policies and legislation to change energy consumption patterns by, amongst others, incentivising the
transition to improved energy efficiencies. A central tenet underpinning this review is that the law and energy
nexus requires a multidisciplinary approach as well as a multi-pronged adoption of diverse policy instruments
to effectively transform the country’s energy use patterns. Numerous, innovative instruments are introduced
by relevant legislation to encourage the transformation of energy generation and consumption patterns of
South Africans. One such innovative instrument is the ISO 50001 energy management standard. It is a
voluntary instrument, to plan for, measure and verify energy-efficiency improvements. These improvements
may also trigger tax concessions. In this paper, the nature and extent of the various policy instruments
and legislation that relate to energy efficiency are explored, while the interactions between the law and the
voluntary ISO 50001 standard and between the law and the other academic disciplines are highlighted. The
introduction of energy-efficiency measures into law requires a multidisciplinary approach, as lawyers may
be challenged to address the scientific and technical elements that characterise these legal measures and
instruments. Inputs by several other disciplines such as engineering, mathematics or statistics, accounting,
environmental management and auditing may be needed. Law is often described as the catalyst for change,
building bridges between different academic disciplines, and driving behavioural changes that are not only
enforced by government, but that are also voluntarily adopted by the users themselves.
Introduction
Each day South Africans are bombarded with images and messages in printed and electronic media challenging
them to reduce their energy consumption and to introduce energy-efficiency measures in their households and
workplaces. However, few South Africans realise the complex scientific, technical and multidisciplinary challenges
that underpin these calls. Energy efficiency is no longer the sole domain of engineers, as lawyers, auditors,
mathematicians, accountants, environmental managers, chemists, economists and many other scientists from the
natural and social sciences and humanities alike are involved in attempting to bring about a green economy1 that
includes improved energy efficiencies.
The importance of energy efficiency was again reiterated by the member states at Rio+20 (para 128 & 129)1 with
the following declaration:
We recognize that improving energy eficiency, increasing the share of renewable
energy and cleaner and energy-eficient technologies are important for sustainable
development, including in addressing climate change. ...We also recognize the
importance of promoting incentives in favour of, and removing disincentives to, energy
eficiency and the diversiication of the energy mix, including promoting research and
development in all countries, including developing countries.
The law is one of the disciplines that bridge the divide among the natural sciences, engineering and the other
disciplines. It is often also the catalyst to initiate and drive change by providing incentives and disincentives.
Environmental and energy law must by necessity be multidisciplinary as it has to translate scientific and engineering
principles and knowledge into policy and law. Such law is often underpinned and informed by the sciences and
engineering disciplines, while the law often also frames and directs the sciences and engineering disciplines. This
symbiotic relationship among the law, the sciences and engineering should not be ignored, especially in complex
fields such as energy management and energy efficiency.
Command and control measures (i.e. law and the enforcement thereof) often fail to achieve the desired change. A
combination of a number of alternative policy instruments is often deployed in parallel with the law to support the
legal instruments and measures to bring about such change. One such alternative policy instrument is voluntary
international standards that may be adopted and used by organisations from the public and private sectors alike as
a consequence of their corporate fiduciary and social responsibilities.2-4 These international standards are mostly
voluntary requirements, but they are often also included into law, making conformance mandatory as specified.
© 2015. The Author(s).
Published under a Creative
Commons Attribution Licence.
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The South African government has, since 1998, included demand side energy management and energy-efficiency
measures in policy documents and legislation. The most recent policy document, the National Climate Change
Response White Paper of 2011,5 highlights energy efficiency as one of its principal goals. Both the National Energy
Act 34 of 2008 and the Electricity Regulation Act 4 of 2006 include measures pertaining to energy efficiency.
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Energy efficiency and the law: A multidisciplinary approach
and scientific definitions correlate. Some statistics with regard to energy
consumption in South Africa are also provided and the drivers for the
introduction of energy-efficiency measures are discussed.
Some of these measures apply to government institutions such as
municipalities, while others apply to the private sector.
In July 2011, the South African National Standard SANS 50001:2011
(referred to as SANS/ISO 50001) was published. It is a voluntary energy
management system (EnMS) standard providing for improvements
in the energy performance, efficiency, use and consumption patterns
of organisations. The aim of the standard is to ‘lead to reduction in
greenhouse gas emission and other related environmental impacts and
energy cost through systematic management of energy’2.
SANS/ISO 50001:20112 defines ‘energy efficiency’ as the ‘ratio or other
quantitative relationship between an output of performance, service,
goods or energy, and an input of energy’ and provides as an example
the ‘conversion efficiency, energy required or energy used, the output
or input; the theoretical energy used to operate or the energy used to
operate’. The National Energy Act 34 of 2008 (section 1) defines ‘energy
efficiency’ as the ‘economical and efficient production and utilisation of
an energy carrier or resource’. Barton8 describes it as ‘a ratio of function,
service, or value provided in relation to the energy converted to provide
it’ or ‘the amount of work done in relation to the energy used’. Xia and
Zhang9 identify four energy efficiency classes, namely technology
efficiency, equipment efficiency, operational efficiency and performance
efficiency. They describe the ‘performance efficiency of an energy
system’ as being ‘determined by external but deterministic system
indicators such as production, cost, energy sources, environmental
impact and technical indicators’. They also indicate that all of these
efficiencies may be affected by ‘technical, human and time factors’.
Deciding when to use energy may, for example, affect the efficiency of
the technology used.8
Natural and social scientists, engineers and developers, for example,
should take note of these energy-efficiency measures that are contained
in both law and voluntary instruments when designing, developing
and implementing new technologies and infrastructure and managing
existing processes and facilities. They should take note of the potential
interactions between the voluntary standard, as well as policies and
legislation to guide and change their behaviour by contributing to an
improved energy future. It is therefore the aim of this article to explore
the interactions between energy law and the ISO 50001 voluntary
instrument for energy management systems to answer the following
research question: What are the linkages between and the principal
provisions for energy efficiency as provided for in South African energy
law and policy and the SANS 50001 standard that should be understood
and adopted by scholars and practitioners from diverse academic and
technical disciplines in order to support the country’s transition to a
greener economy and a more sustainable future?
The SANS/ISO and Barton definitions clearly indicate a relationship
between the ratio of the output or performance and the input of energy,
while the legal definition of energy efficiency focuses mainly on the
result that is achieved, namely the economical and efficient utilisation or
production. The examples of energy efficiency outcomes provided for in
the SANS/ISO document and the four energy efficient elements identified
by Xia and Zhang9 add a dimension which can be used to describe the
result as set out in the Act. It may also be necessary to redefine the
term ‘energy efficiency’ in the Act, taking the scientific, engineering
and other definitions into account to provide a more comprehensive
legal definition. The legal definition should at least relate to the ratio or
relationship between the input and output of energy as well as to the
outcome or possible outcomes of the input and output ratio.
This article is based on a literature survey of the most important
literature, laws and policies in the field of energy efficiency. The legal
discourse is informed by literature from other disciplines. Kroeze6 states
that ‘law is a hermeneutic and professional discipline’, which directs
the methodologies used, the research questions posed, the assumptions
made and the hypotheses postulated. As Areeda7 states:
The needs and purposes of the law are not
necessarily the same as the interests and
objectives of the expert[s] pursuing [their] own
discipline...[t]he proper legal result may turn on
statutory interpretation, characteristics of the
legal system, or other matters of policy on which
[another] science has little to contribute. It is for
those reasons that outside disciplines are not the
law, but only illuminate it.
SANS/ISO 50001:2011 also defines ‘energy consumption’ as the
‘quantity of energy applied’, and ‘energy use’ as the ‘manner or kind
of application of energy’ that may, for example, include ‘ventilation;
lighting; heating; cooling; transportation; processes; production lines’.
‘Significant energy use’ refers to ‘energy use accounting for substantial
energy consumption and/or offering considerable potential for energy
performance improvement’2. These definitions are not included in the
National Energy Act or the Electricity Regulation Act and if energyefficiency measures are to be introduced in South Africa, which is the
case in relation to tax measures, the question is whether these definitions
should not also be included in the legislation.
According to Kroeze6 and Areeda7, lawyers ‘borrow’ from other
disciplines and translate the knowledge acquired from other sciences
into law. Subject matter experts from other disciplines often argue
that the law is too generic, ignoring the detail and complexities that
characterise specific scientific sub-disciplines and their fields of
expertise. Areeda7 comments:
Energy may also be divided into primary, intermediate and final forms
of energy. Primary energy is ‘extracted or captured directly from natural
resources’ and may be renewable or non-renewable. Intermediate energy
is ‘primary energy converted into other forms and final energy is the
one consumers buy or receive in order to carry out desired activities’10.
Energy efficiency deals with the final energy form. Again this distinction
is not made in law.
While the other disciplines seek truth for its own
sake, the law is more skeptical about inding it
and uses only as much of it as is helpful to guide
our prudential policy choices in this untidy world.
It is also necessary to define energy management. ‘Energy management’
in relation to information technology is defined as
This article proceeds from the premise that environmental law in general
and energy law in particular are complex fields of inquiry requiring a
new approach to multidisciplinary research. Lawyers need to progress
from mere ‘borrowing’ scientific knowledge to inform the law, to work
in multidisciplinary teams with researchers from a variety of applicable
disciplines to generate new law, and implement and enforce existing law
in order to address these growing complex systems. Energy efficiency is
used to illustrate this complexity.
a set of functions for measuring, modelling,
planning, and optimizing networks to ensure that
the network elements and attached devices use
energy eficiently and [are] appropriate for the
nature of the application and the cost constraints
of the organization.11
Energy efficiency, energy use and energy
consumption in South Africa
While an ‘energy management system’ relates to
a set of systems or procedures upon which
organizations can develop and implement an
energy policy, set targets, action plans and
In this section, legal definitions are compared to definitions found in
other policy documents and literature to determine whether the legal
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take into account legal requirements related to
energy use, an EnMS allows organizations to
improve energy performance and demonstrate
conformity to requirements, standards and/or
legal requirements.2
of 5% in global electricity consumption and 6% in the output of carbon
dioxide, which translates into the ‘equivalent of more than 450 coal-fired
power plants or more than 122 million mid-sized cars’24. Government
may also introduce command and control measures such as standards
or punitive measures to enforce energy-efficiency measures.8
There is therefore a drive towards energy efficiency and a need to
implement measures to enforce it. The implementation of such measures
may still be a challenge as the legal measures do not necessarily correlate
with other scientific literature. It is therefore necessary to determine if a
policy framework is in place to introduce energy efficiency.
The definition of an EnMS becomes important when such a system is
introduced to ensure energy efficiency and to measure its outcomes.
South Africa has introduced regulations referring to energy management
systems and tax incentives12 which may necessitate the introduction of
this terminology into law. It is important to note that a legal definition
often does not correspond with a scientific definition and it is therefore
important for scientists to explore legal definitions and for lawyers to
explore scientific definitions. A court of law will adhere to a definition in
an Act, but if a term is not defined, or is vaguely defined, the court has
to refer to other definitions in dictionaries; but as science comes to play
a more important role in environmental and energy legislation, the court
will soon also have to begin to refer to scholarly articles in scientific
journals to find solutions.13
Policy measures
In 1998 the South African government published a White Paper on
the Energy Policy of the Republic of South Africa,25 referring to energy
efficiency not only in households but also in the industrial, mining and
commercial sectors. At this stage, government had already committed
itself to promote improved energy efficiencies by way of ‘cleaner
energy end-use technologies, environmental performance auditing and
incorporating environmental costs’ in the end price of energy. The need
to address energy efficiency in the transport and agricultural sector
has also been referred to.25 In 2004, the White Paper on Renewable
Energy26 indicated a link between energy efficiency and the introduction
of renewable energy.
Ward and James14 state that ‘through globalization there has been an
increasing shift of energy-intensive manufacturing from industrialized
countries to developing countries and, with that shift, a shift of
emissions’. South Africa’s energy is mostly generated by the coal-fired
generation utilities of the public supply company Eskom.15 In 2010, the
Department of Energy16 stated that South Africa has an energy-efficiency
potential ranging from 20% to 30% across various segments in the public
and private sectors. The end users of electricity at that time included ‘the
domestic sector (17.2%), agriculture (2.6%), mining (15%), industry
(37.7%), commerce (12.6%), transport (2.6%) and other (12.3%)’16.
The Climate Change Response White Paper5 provides for mitigation and
adaptation responses. The government proposed the introduction of a few
Near-term Flagship Programmes to address some of the climate change
challenges. An Inter-Ministerial Committee and Intergovernmental Climate
Change Committee were to be established to oversee and implement
the programmes. The adaptation programmes include the introduction
of ‘regulatory measures, market-based instruments, tax incentives and
fiscal subsidies, information and awareness initiatives’5. The regulatory
measures include, for example, energy efficiency targets ‘complemented
by appropriate standards’5. The Renewable Energy Flagship Programme
(para 8.3) is another driver to enhance the introduction of locally
produced renewable technologies. The Energy Efficiency and Energy
Demand Management Flagship Programme (para 8.4) foresees a more
aggressive implementation of green building construction in both the
commercial and residential sectors, for example, by setting standards
for controlled ventilation and using recycled materials and solar power.
All government buildings and facilities are to be audited to set indicators
and benchmarks. The White Paper states that regulatory measures will
be introduced in all spheres of government – national, provincial and
local. Government must also review their legislation and policies to align
them with the White Paper.
What are the drivers to support energy efficiency management by
these sectors?8,17 Economic and cost factors are almost always a key
determinant of change, while safety and environmental requirements
for pollution control and the reduction of climate change impacts also
remain important drivers.8,18-20 The contribution of the transition to a
green economy (referred to above) remains to be determined. Incentives
are often also a reliable driver for change, while taxes and the cost of
energy may also initiate and drive change.8,21 The cost of energy will
significantly increase should South Africa’s proposed carbon tax
be introduced at the rate of ZAR120 per tonne CO2 in 2015.22 It was
estimated in 2011 that, should a carbon tax of ZAR110 per tonne of CO2
be levied, the increases in costs to a cement factory would translate to
an additional ZAR265 per tonne of coal, 28c per litre of diesel and 11c
per KWh of electrical energy used. It was estimated that, even without
the carbon tax, the cost of energy could increase by 45% in a cement
factory as a result of the increase in diesel, coal and electricity-related
costs.23 To stay competitive, the cement industry indicated that it would
have to become more energy efficient at an operational level.23 Barton8
also identifies energy security (or rather insecurity) as a possible driver.
In December 2010, the Department of National Treasury published a
Discussion Paper on Reducing Greenhouse Gas Emissions: The Carbon
Tax Option. In this paper, the Department acknowledges that although
South Africa is a non-annex 1 developing country in terms of the Kyoto
Protocol, it is ranked as ‘among the top 20 countries measured by absolute
carbon dioxide (CO2) emissions’27. In 2009, South Africa announced that
it will reduce its greenhouse gas emissions by 34% by 2020 and 42%
by 2025.27 In May 2013, the National Treasury published an updated
version of the Carbon Tax Policy Paper22 for public discussion. The
paper indicates that one of the outcomes of carbon taxes should be the
introduction of more energy-efficiency measures. The policy document
favours a ‘carrot-and-stick’ approach as it introduces tax measures
(punitive measures) as well as tax incentives for energy-efficiency
measures and the introduction of renewable energy. On 1 January 2014,
a carbon tax was to be introduced at ZAR120 per tonne CO2-eq, and
provision was to be made for tax-free thresholds and offsets. The tax
would have been introduced for ‘emissions that result directly from fuel
combustion and gasification, and from non-energy industrial processes
...[including] carbon dioxide, methane, nitrous oxide, perfluorocarbons,
hydrofluorocarbons and sulphur hexafluoride’. The tax would have been
increased at a rate of 10c per annum until 31 December 2019, with a new
tax regime to be introduced on 1 January 2020. The gradual increases in
carbon taxes should have allowed large intensive energy users to reduce
their scope 2 energy emissions (indirect emissions resulting from the
The International Energy Association introduced 25 Energy Efficiency
Recommendations in 2011.24 (South Africa is not a member of the
International Energy Association.) Recommendation 21 states that
governments should require large energy-intensive industries to conform
to ISO 50001 or an equivalent energy-management protocol and should
encourage other industrial energy users to do the same. Governments
should expect of industries to report on their energy savings. According to
the Recommendation, energy management measures should include24:
Identifying and assessing energy saving opportunities by benchmarking, measuring and
documenting energy consumption; [i]mplementing actions to capture identiied energy
saving opportunities; [and] [p]ublicly reporting
the energy-saving opportunities identiied and the
actions taken to capture them.
A study by the United Nations Environment Programme, the Global
Environment Facility and the International Energy Agency indicated that
the phasing out of incandescent bulbs alone might result in a reduction
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use of purchased electricity, heat or steam) and to introduce more
energy-efficiency measures. The introduction of the proposed carbon
tax measures was again postponed for further consultation until 2016.28
In addition to the carbon tax in 2012 the National Treasury proposed
the introduction of an electricity levy on non-renewable sources to fund
energy-efficiency initiatives.29
the Minister may make regulations on the types of energy sources from
which electricity must be generated, and the percentages of electricity
that must be generated from different energy sources (section 35(4)
(k)-(l)).34 The National Environmental Management: Air Quality Act 39 of
2004 may further be used to set national, provincial and local standards
for air quality, priority areas, controlled emitters and energy carriers. The
legislation does not regulate the detail of energy efficiency but allows
the Minister to deal with the specifics in regulations which will need the
inputs of various specialists.
The Department of Energy’s Policy to Support the Energy Efficiency
and Demand Side Management Programme for the Electricity Sector
through the Standard Offer Incentive Scheme of May 201016 proposes
various tools or measures to ensure energy efficiency, such as an
Energy Conservation Scheme. According to this Scheme, certain key
industrial electricity customers with a monthly consumption above
100 GWh per annum per site were required to submit their ‘historical
baseline consumption profile…in Gwh points spread over one year
over any 12-month period’16 to the licencee by June 2010. The licencee
negotiates a baseline with the customer and the baseline is ratified by
the National Energy Regulator of South Africa (NERSA). The Minister of
Energy then sets a reduction target for each industrial sector. NERSA
accordingly determines a tariff on a punitive scale using the baseline
information as its point of departure. If less energy than the baseline is
consumed then a standard rebate would be offered.
Other market-based measures (economic incentives) have also been
introduced to address environmental issues and may be regarded as
measures that address climate change.5,35 They include ‘the electricity
generation levy, motor fuel levy, motor vehicle emissions tax, the levy
on incandescent light bulbs, tax incentives supporting renewable energy
measures (biofuels, solar panels etc.) [and the] Cleaner Development
Mechanism projects’5. In 2013, the Department of Energy introduced
Regulations on the Allowance for Energy Efficiency Savings in terms
of section 19 of the National Energy Act 34 of 2008.12 In terms of the
regulation, a person (including an industry) may claim a tax allowance
in terms of section 12L(5) of the Income Tax Act 58 of 1962 for energyefficiency savings. The person must register with SANEDI (the South
African National Energy Development Institute established in terms of
section 7 of the National Energy Act) in respect of any energy-efficiency
savings he or she may want to claim (regulation 2(1)). The person
must also appoint a measurement and verification (measurement and
verification as applied in terms of ISO 50001, para 4.6.1)12 professional
to compile a report containing the energy-efficiency savings for the year
for which the allowance is claimed. A measurement and verification
professional is someone who acts under the auspices of a measurement
and verification body that is accredited by the South African National
Standards (SANS) and who may inspect, measure, report and verify
energy-efficiency savings (regulation 1 – a body accredited in terms of
section 22 of the Accreditation for Conformity Assessment, Calibration
and Good Laboratory Practice Act 19 of 2006). This report must be
submitted to a committee of SANEDI (appointed in terms of regulation 3).
This committee may obtain independent professional advice to confirm
that the report complies with SANS 50010:2011 and that it is a true
reflection of the energy savings that are claimed (regulation 3(3)-(4)).
SANEDI must then issue a certificate (regulation 3(2)) containing ‘the
baseline at the beginning of the year of assessment for which the
allowance is claimed, derived and adjusted in accordance with regulation
5 and determined in accordance with’ ISO 50001 (regulation 4). The
baseline calculation must be made in accordance with regulation 5 and
in accordance with the methodology in ISO 50001. The study must also
refer to the energy used at the end of the year, the annual energy savings
expressed in kilowatt hours determined in accordance with ISO 50001,
the name of the measurement and verification body that certified the
professional who conducted the report, etc. (regulation 4). The tax
measures are seen as an incentive for industry to introduce energy
efficiency practices.
Policies are not enforceable. They are political statements of intention of
what government would like to introduce. From the discussion it is clear
that the policies are in place and that government is committed towards
introducing measures to enforce energy efficiency. It is therefore
necessary to determine whether the legal framework sufficiently
provides for measures to regulate the introduction of energy efficiency.
Legislation
South Africa’s legislation already makes provision for the possibility of
introducing energy-efficiency measures. One of the aims of the Electricity
Regulation Act 4 of 2006 is to promote energy efficiency. In section 15(1)
(u), the Act allows NERSA to place conditions in licences dealing with
energy-efficiency standards and demand-side management. NERSA
may also place energy-efficiency conditions on the licencee and may
amend them from time to time to adapt to national energy priorities as
set out in policies. In terms of GN R721 of 2009,30 energy efficiency must
be taken into account when an integrated resource plan is developed.
The Integrated Resource Plan 2010–2030 was published in 2010 and
introduced, amongst other things, an energy efficiency and demandside management financial incentive scheme (a standard offer).31,32 It is
also foreseen that public facilities and housing programmes introduced
by government should be energy efficient (by making use of insulation,
efficient lighting, motion sensors, for example).33 Measures will also be
introduced for ‘commercial buildings (offices, hotels and the hospitality
industry, employee compounds at mines, refineries, power stations)’.
Government has subsequently introduced green building standards on a
local government level and incentives for installing solar-water heating.34
The National Energy Act 34 of 2008 defines ‘energy efficiency’ as the
‘economical and efficient production and utilisation of an energy carrier
or resource’ and also allows the Minister to issue regulations pertaining
to energy efficiency, including (section 19(f)-(n)) measures dealing with
minimum levels of energy efficiency in each sector of the economy;
the steps and procedures necessary for the application of energy
efficiency technologies and procedures; and measures for the labelling
of household appliances, devices and motor vehicles indicating their
energy-efficiency levels. The Minister may also prohibit the manufacture,
importation or sale of electrical and electronic products and fuel-burning
appliances for reasons of less than expected energy efficiency and
publish standards and specifications for energy carriers as well as energy
efficiency standards for specific technologies, processes, appliances,
devices, motor vehicles and buildings. He or she may introduce energy
conservation measures during energy shortages, ‘which may include
but [are] not limited to the amount of energy to be saved, the duration
for such measures and penalties associated with non-compliance to
such measures’. The Minister has not issued regulations dealing with
energy efficiency yet. The Minister has, however, issued regulations in
terms of the Electricity Regulation Act 4 of 2009. In terms of this Act,
South African Journal of Science
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Gunningham36 foresees that market-based instruments/economic
incentives may be ‘one component of a broader mix of energy policy
initiatives’. However, economic measures alone will not achieve energyefficiency targets. It is necessary, as indicated above, to introduce
voluntary measures such as ISO 500012,8 as well as legal and policy
measures to effectively change behaviour.
In order to implement and enforce these regulations, various specialists
(for example, engineers, economists, energy management specialists,
auditors and lawyers) would need to be involved as indicated. As
ISO 50001 has been introduced as part of the law, it is necessary to
understand how it came about and what it entails.
SANS/ISO 50001:2011
The USA and Denmark developed energy management standards in
2000. Sweden followed in 2003, the Netherlands in 2004, Ireland
in 2007, and Korea and Thailand in 2008. In 2009, China had a draft
standard.37 The voluntary programmes targeted large industrial plants
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the system will fail (para 4.2.1). To ensure effective implementation
of the energy management system, an organisation must appoint a
management representative with the necessary skills and competence
(para 4.2.2.). Hilliard and Jamieson41 describe the skills such a person
should have as ‘technical and analytical abilities which should include
knowledge of power electrics, thermodynamics, and statistics, with
an aptitude for modelling and analysis’; business literacy that includes
the ability to ‘concisely and authoritatively contribute to management
decision-making for assessing EM investment’, and ‘social skills
and agreeability’.
with the idea of recognising outstanding performers. Financial incentives
and training were provided.
Driven by the debate around climate change, the idea of an international
energy management system standard was suggested by the United
Nations Industrial Development Organization to the International
Organization for Standardization secretariat in 2007.38 Discussions were
held between developed and developing countries. The ISO Technical
Management Board approved the project to generate the ISO 50001
standard in February 2008, and it was finally introduced in June 2011.
The ISO Committee is also developing ISO standards on Energy Baseline
General Principles and Guidance; Guidance for the Implementation,
Maintenance and Improvement of an EnMS; Monitoring, Measurement,
Analysis and Verification of Organizational Energy Performance, Energy
audits, Energy management system audits and auditor competency; and
Energy Performance Indicators, General Principles and Guidance.39
Top management must draft an energy policy stating the organisation’s
commitment to achieve energy performance improvement. This policy
must be ‘appropriate to the nature and scale of the organisation’s
energy use and consumption’ and must amongst other things include
‘a commitment to comply with applicable legal requirements and other
requirements to which the organisation subscribes related to its energy
use, consumption and efficiency’ (para 4.3(a) and (d)).
The South African SANS/ISO 50001:2011 standard is based on ISO
50001 drafted by the ISO/PC 242, the Energy Management Technical
Project Committee of the International Organisation for Standardisation.
The South African standard was approved in June 2011. In the
introduction2 it is stated that ‘[t]his International Standard is applicable
to all types and sizes of organizations, irrespective of geographical,
cultural or social conditions’ as well as any type of energy user.2 Like
the ISO 14001:2004 Environmental Management Standard, the ISO
50001:2011 standard is based on the Deming management Plan-DoCheck-Act model.10,39
The organisation must further ‘conduct and document an energy
planning process’ which coincides with its energy policy. The energy
planning process includes the identification of all legal and other
requirements that may be applicable to the organisation (para 4.2.1).
The organisation must determine ‘how these requirements apply to its
energy use, consumption and efficiency and shall ensure that these
legal requirements and other requirements to which it subscribes are
considered in establishing, implementing and maintaining’ the energy
management system (para 4.2.2). It is interesting that the standard does
not refer to legal compliance as such, but only to the commitment of the
organisation to comply with the laws.
SANS/ISO 50001:2001 correlates with the other ISO management
system standards and can be integrated, for example, with environmental
or occupational health systems as well as general quality systems.
Annexure B of SANS/ISO 50001:2011 indicates, for example, the
correlations between the different standards: ISO 50001:2011 (Energy
Efficiency Management Systems); ISO 9001:2008 (Quality Management
Systems); ISO 14001:2004 (Environmental Management Systems) and
ISO 22000:2005 (Food Safety Management Systems). An organisation
may use the standard in order to obtain certification from ISO or may
register with ISO. It may also use the standard to ensure and declare that
the organisation’s practices conform to the international standard. The
organisation commits to its own energy policy as well as to its obligation
to comply with legal and other requirements.
The organisation must conduct an energy review, which may include
an analysis of the current energy sources and energy use and
consumption. The organisation will have to be able to demonstrate an
improvement in energy efficiency, which means it will have to quantify its
improvements – a task that a lawyer will not be able to perform. Various
models have been developed to assist organisations in this regard.8,42 In
relation to the energy baseline, ISO 50001:2011 (A 4.4) states2:
[A] suitable data period means the organisation
accounts for regulatory requirements or variables
that affect the energy use and consumption.
Variables can include weather, seasons, business
activity cycles and other conditions.
As in other management systems, the main requirements of the energy
management system include general requirements, the responsibility
of management, the formulation of an energy policy, energy planning,
implementation and operation, and checking and review.2 In this review,
the focus is on indicating where legal requirements play a role in the
energy management system process and therefore on the linkages
between law, science, engineering and energy management.
This information (compiled by energy specialists, engineers,
accountants, etc.) will form an energy baseline against which future
energy use and consumption could be measured (A 4.4).2 The review
must also include an identification of the facilities, equipment, systems,
processes and personnel (e.g. contractors, part-time personnel and
temporary staff) that may significantly affect energy use and consumption
and an estimation of future energy use and consumption (A 4.3).2 The
energy use and consumption may be prescribed by legislation or may be
defined by the organisation itself.43 The main aim of the review should be
to ‘define areas of significant energy use and to identify opportunities for
improving energy performance’2 (A 4.3). One should provide for human
error in the interpretation of data. Timescales may also influence the
interpretation of the data and the interpretation may be influenced by
the loss of institutional memory. The model that is used for capturing
energy data should not only be cost effective but should also correlate
with human understanding: ‘Energy models with finer data may be more
useful but a model that few understand is dangerous and a model that
falls out-of-date is worthless.’41
According to the standard2, an organisation must ‘establish, document,
implement, maintain and improve an energy management system
in accordance with the international standard’. It must ‘define and
document the scope and boundaries of its energy management
system’ and ‘determine how it will meet the requirements’ of SANS/
ISO 50001:2011 in order to ‘…achieve continual improvement of its
energy performance and of its environmental management system’.2
(‘Energy performance’ is defined as ‘measurable results related to
energy efficiency, energy use and energy consumption’ – para 3.12.)
The ‘boundaries’ of the organisation are the ‘physical or site limits and/
or organizational limits’, which may include, for example, ‘a process,
a group of processes, a site, an entire organization, [or] multiple sites
under control of an organization’, while ‘scope’ refers to the ‘extent of the
activities, facilities, decisions that the organization addresses through
an environmental management system, which can include several
boundaries’. It may for example refer to ‘energy related to transport’
(para 3.1 and 3.26). The boundaries and the scope of the organisation
will determine the legal obligations to which the organisation must
adhere and which will form the bottom line for certification.40
The organisation must establish energy performance indicators
‘appropriate for monitoring and measuring its energy performance’.
According to SANS/ISO 50001:2011 (A 4.5), an energy performance
indicator could be a simple ratio or a complex model such as
‘consumption per time, energy consumption per unit or production, or
multi-variable models’44. The organisation must record and review the
methodology used to determine these indicators (para 4.4.5). In addition,
the organisation must ‘establish, implement and maintain documented
Top management must truly commit to the energy management system
and ensure that the necessary resources are available, otherwise
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must address all actual and potential non-conformities. These nonconformities may include non-compliance with legal requirements.
The preventative steps must also be documented. The effectiveness
of the corrective action must also be reviewed. If need be, the energy
management standard must be amended.
energy objectives and targets at the relevant functions, levels, processes
or facilities of the organisation’. The objectives and targets must coincide
with the energy policy and the objectives with the targets. The targets
must be linked with a time frame. SANS/ISO 50001:2011 states clearly
that legal and other requirements, amongst others, must be considered
when the objectives and targets are considered. The legal requirements
may include international, national and provincial laws and bylaws. Other
requirements may include voluntary principles or codes of practice or
voluntary practices to which the organisation subscribes (A 4.2).2 The
views of interested parties must also be considered. The objectives and
targets must be translated into an action plan (para 4.4.6).
From time to time, top management must review the energy management
standard to determine its ‘suitability, adequacy and effectiveness’. The
management review must include, for instance, a review of the ‘results
of the evaluation of compliance with legal requirements and changes
in legal requirements and other requirements to which the organisation
subscribes’ (para 4.7.2). The output of the management review may,
for example, include an amendment to the energy policy, objectives and
targets or energy performance indicators (para 4.7.3).
In order to ensure implementation of the action plan, the organisation must
employ skilled people and train them in the importance of conformity
to the energy policy, procedures and requirements of the energy
management system. The employees must also be aware of their roles
and responsibilities in terms of the energy management standard and
must understand what the impact and consequences of their activities
and behaviour are, or could be, on energy use and consumption as well
as on the energy objectives and targets set (para 4.5.2).
Why do companies introduce or not introduce energy management
systems? According to Pandolfo10, organisations will invest money if
immediate cost reductions are visible. In the case of energy consumption,
the immediate cost reduction cannot be predicted and the benefits
cannot be identified. Steele46 is of the opinion that the benefit of adhering
to a management system standard is its voluntary nature and that it
was developed by the users themselves, that it provides performancebased solutions, that costs could be reduced, that organisations can
participate in markets that were previously closed to them, that it
ensures legal compliance, that it reduces risks and ensures continuous
improvement, and that it is at least a step taken towards implementing
best practice. It also ensures that the organisation is competitive, socially
responsible and environmentally friendly by reducing its dependence on
natural resources and its carbon footprint.10 It may be easier for larger
companies to effect energy management with the appointment of energy
managers. Smaller organisations cannot always afford to attract people
with the necessary expertise.40 Pandolfo10 found that it is easier for a site
with ISO 14001 certification to implement ISO 50001:2011 than for one
starting from scratch. In her study she indicated that such a site already
complies with 70% of the ISO 50001:2001 requirements. Management
must, however, commit to the introduction of an energy-management
system to ensure its effective implementation and must be prepared to
fund the expenses.47 The most challenging aspect is to determine the
baseline energy consumption, for which determination is not required
by ISO 14001:2004. It is important that organisations share information
on best practice, energy-efficiency technologies and the results of case
studies.47 Some countries have incentives to stimulate the introduction
of energy-efficiency technology and investment.47 The introduction of a
voluntary mechanism such as an ISO standard as an incentive is less
well known from a legal perspective.
The organisation must communicate internally on its energy performance and may decide to communicate externally on its energy policy
and performance (para 4.5.3). The communication could include noncompliance with legislation, although compliance is not an explicit
requirement. The organisation must have a proper document control
system in place, which must include objectives, targets and action plans.
However, in most instances it will be necessary to document the legal
requirements as well, and to review and update them regularly (para
4.5.4.1 and 4.5.4.2).2 The organisation must ensure that the correct
version of the legal requirement is available. The organisation must also
identify those operations and activities that are related to its significant
energy uses and ensure that they are carried out under the specified
conditions. These operations include emergency and contingency plans
(para 4.5.5).
In the design of new, modified or renovated facilities, equipment, systems
and processes, an organisation must consider energy-performance
opportunities if such a facility, equipment, system or process may have
a significant impact on its energy performance. The result must be
incorporated into the ‘specification, design and procurement activities of
projects’ and recorded (para 5.4.6).
The organisation must when it obtains energy services, equipment or
products inform suppliers that procurement is evaluated on the basis of
energy performance. If the legislation does not provide specific criteria,
the organisation must establish and implement criteria to assess energy
use, consumption and efficiency ‘over the planned or expected operating
lifetime when procuring energy products, equipment and services which
are expected to have a significant impact on the organisation’s energy
performance’ (para 4.5.7). ISO 50001 could be used to ensure that
procurement is used to ‘improve energy performance through the use
of more efficient products and services. It is also an opportunity to work
with the supply chain and influence its energy behaviour’ (A 5.7).2
Conclusion and recommendations
In a recent article, Thopil and Pouris21 indicated the need for differential
pricing of electricity as ‘a technique that offers flexibility within the context
of the country’s economic, social, industrial and environmental policies’
and the need to force energy-intensive industries to use energy more
wisely. Such a market-based instrument is but one of many instruments
that can be employed to drive energy efficiency. In this article it has
been established that there is a link between energy-efficiency policy,
legislation and the voluntary mechanism SANS/ISO 50001. One
regulation already includes ISO 50001 measurement standards into
its regulatory procedures, coupling them with tax measures, while the
ISO 50001 standard refers to legal requirements. It has also become
clear that several laws and policies refer to energy efficiency as a
tool to reduce energy use and consumption. The legislation does not
explicitly indicate how these measures should be introduced. Policies
and laws need to be implemented. The only regulation that provides clear
guidelines is the one providing tax incentives for the implementation of
energy-efficiency measures. Energy efficiency is, however, not a goal
that can be achieved by practitioners schooled in a single discipline.
It has become apparent that an interdisciplinary approach will be
needed to implement and enforce not only the statutory measures but
also voluntary standards. Lawyers will not be able to work in this field
without the input of scientists such as engineers, energy specialists,
tax specialists, architects, accountants and environmental managers,
An important aspect of the energy management system is checking
(para 4.6). One of the components of checking is the evaluation of
compliance with legal requirements and other requirements (para 4.6.2).
The results of such evaluations have to be documented. A procedure
must be available to ensure that the documents are retained, easily
identifiable and retrievable (para 4.5.6).
The organisation may conduct an internal audit to determine whether the
organisation complies with the environmental management standard’s
objectives and targets and whether the environmental management
plan is implemented and maintained. The auditor must also establish if
the energy management standard improved energy performance (para
4.6.3). On 12 May 2012 it was decided that the Southern African Auditor
and Training Certification Association (SAATCA) accreditation processes
for lead auditors will apply to energy management system auditors
as well.45 The criteria for SAATCA EnMS start-up auditors were also
discussed. Records must be kept of the audit report. The organisation
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among others. Similarly, engineers and other scientists will not be able
to implement these measures without legal input. Scientists and lawyers
will have to work together to develop norms and standards for energyefficiency practices.
12. Department of Energy. Regulations on the allowance for energy efficiency
savings. GN R971 in Government Gazette 37136 of 9 December 2013.
Pretoria: Government Printing Works; 2013.
13. Du Plessis LM. Re-interpretation of statutes. Durban: Butterworths; 2002.
Climate- and environment-related issues have become an important
feature of every person’s daily life. As stated above, law is one of
the disciplines that is able to integrate natural science, engineering,
mathematics, social sciences and other disciplines by providing
incentives and disincentives. Science needs to be translated into policy
and law. The law cannot ignore the rest of the scientific world. It needs its
input, especially in complex fields such as energy and energy efficiency.
14. Ward M, James C. Energy sector: Issues, options and perspectives. In:
Boston J, editor. Towards a new global climate treaty. Wellington: Institute of
Policy Studies; 2007. p. 187–201.
15. Department of Energy. Electricity pricing policy. Government Notice 1398
in Government Gazette 31741 of 19 December 2008. Pretoria: Government
Printing Works; 2008.
16. Department of Energy. Policy to support the energy and demand side
management program for the electricity sector through the standard offer
incentive scheme [document on the Internet]. c2010 [cited 2014 Dec 08].
Available from: http://www.energy.gov.za/files/policies/Standard_Offer_
Policy.pdf
The need for improvement of energy efficiency and to reduce the energy
intensity of the economy was reiterated in the Draft 2012 Integrated
Planning Report that was published in July 2013.48 Command and
control measures (i.e. measures enforced by government) frequently fail
to efficiently and effectively drive transitions towards energy efficiency
and legal compliance. It is noted that energy efficiency performance by
the private sector is in some instances driven rather by international
market demands than by command and control measures. It is therefore
necessary to move away from a silo-based approach towards science
to an integrated approach in which the natural sciences, humanities
and social sciences approach issues such as climate change and the
environment in a holistic manner.
17. Pasquier SB, Jollands N, Moarif S. Summary of country reports submitted to
the Energy Efficiency Working Party: Period from September 2009 to January
2010 [document on the Internet]. No date [cited 2014 Dec 08]. Available
from: https://www.iea.org/publications/freepublications/publication/country_
report_summary.pdf
18. Dryden IGC, editor. The efficient use of energy. Surrey: IPC Science and
Technology Press; 1975.
Acknowledgements
19. Van Rooyen H. Energy-efficient buildings on the horizon: Energy efficiency.
CSIR Science Scope. 2009;4(1):44–45.
The financial support of the National Research Foundation of South
Africa is acknowledged with appreciation. The opinions expressed,
however, are those of the author.
20. Department of Energy. National Energy Efficiency Strategy of Republic of
South Africa, 2009. General Notice 908 in Government Gazette 32342 of 26
June 2009. Pretoria: Government Printing Works; 2009.
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