Latest news with #MinimumEnergyPerformanceStandards
Daily Maverick
2 days ago
- Automotive
- Daily Maverick
New rules mandate energy-efficient motors — a win for SA's strained power grid
As of June 2025, South Africa has activated mandatory regulations that affect a R3-billion industry and will result in annual energy savings of 840 gigawatt hours — enough to power a city the size of Polokwane or approximately 140,000 households for a year. Electric motors might not sound exciting — but they're everywhere. They power conveyor belts in factories, water pumps on farms, fans in cooling systems, and crushers in mines. And as of June 2025, every new motor sold in South Africa will have to meet higher energy efficiency standards. That's because South Africa has officially implemented its Minimum Energy Performance Standards (Meps) for electric motors, bringing the country in line with global standards. The change affects a R3-billion industry, with the goal of saving up to 10% of energy per low voltage motor — which is significant in a country where demand exceeds supply. The new rule requires that most three-phase, low-voltage electric motors sold in South Africa meet IE3 (International Efficiency) standards. Less efficient IE1 and IE2 motors will be phased out over time, as old ones reach their end of life. Regulated by the National Regulator for Compulsory Specifications, this shift applies to motors rated between 0.75 kW and 375 kW with two, four, six, or eight poles — the kind you'd find in factories, farms, and commercial buildings. According to the International Energy Agency, electric motors and motor systems are responsible for about 53% of the world's total electricity consumption. And standards like MEPs offer the potential to reduce the energy demand of motor systems by 20 to 30% with short payback periods. Fanie Steyn, Executive of the Electric Motor Division at WEG Africa, a leading motor manufacturer, said that about 250,000 IE1 motors were imported into South Africa each year, representing a R3-billion value chain. Currently, there's a 3:1 ratio of IE1 to IE3 motors entering the country. 'From now, that's all about to change,' said Steyn. Those motors now need to be replaced with IE3 models, which are typically 4 to 10% more efficient. This might not sound like much — but considering that all electric motors account for around 65% of industrial energy use, and industry accounts for about 60% of the country's total energy demand, these efficiency gains are not negligent. 'Electric motors are the prime mover for all industry — almost everything that moves is driven by an electric motor. 'If you go to where a cold drink is bottled, the pump that pumps it, the conveyor that moves the bottles, where bread is made, or where mielies are crushed to make flour — it's all powered by motors,' he said. 'Almost everything that moves is by a motor.' Efficiency standard So starting this year, the new rules will require that all new motors meet the IE3 efficiency standard, which means they use electricity more efficiently and last longer. While the rules don't force businesses to replace existing motors immediately, over time, as older motors wear out, they will be replaced with these more efficient models. Dr Theo Covary, the lead researcher of the cost benefit analysis undertaken to inform these new regulations, estimates that this change will save South Africa 474 gigawatt hours (GWh) of electricity in the first year alone — enough to power about 44,000 homes for a year. Over the next decade, the savings will add up to 5,763 GWh, roughly the annual electricity use of a major South African city. 'The new IE3 regulation is expected to reduce electricity demand by approximately 0.25% in year one, which is reducing electricity by 0.25% in one year, 'which may seem small and insignificant but is material given the high net economic benefit to the economy', said Covary. The total cumulative energy savings of 5,763 GWh after 10 years is equivalent to the electricity used by Nelson Mandela Bay in one year. This is because as more and more older, less efficient motors reach their end of life and get replaced by more efficient models, the savings increase. In addition to energy savings, this reduction would prevent about 5 million tons of CO₂ emissions. To put this in perspective, offsetting that amount of carbon would require planting spekboom — an indigenous South African plant known for its carbon sequestration ability — over an area of approximately 3,333 square kilometres, which is about twice the size of the Western Cape's Garden Route District. Energy efficiency adds up If you consider that Eskom generated about 200 terawatt-hours (TWh) of electricity in the financial year ending March 2024, the estimated 840 GWh saved (or 0.84 TWh) from this new standard represents 0.25% of the power the country uses in a year. ' It might not sound like much, but believe me — 0.25% is a lot, and it all adds up,' said Chris Yellend, an electrical engineer and energy analyst from Business EE Intelligence. 'It's good that South Africa is following suit and becoming more energy efficient.' He added that energy efficiency measures like this offer the best returns in terms of cost. 'Instead of spending billions on new generation infrastructure, the economy can invest in efficiency — it's a no-brainer. Improving energy efficiency is the most cost-effective way of 'building' new electricity supply. It's not as insignificant as it might seem.' Steyn echoed these sentiments, saying: 'What do you do if you don't have energy? You have to build more power stations, maybe solar or wind farms — but all those options are massive projects with huge capital outlay. And it takes time and long periods of investment and installations before you can do that. 'We have an energy crisis, so in the short term one of the quickest or easiest ways to overcome that is to increase efficiency of products.' Steyn added: 'South Africa has done a phenomenal job over the years with labelling programmes — for fridges, TVs, lights. But now, finally, we're targeting the big energy consumers: electric motors.' According to a 2022 cost-benefit analysis by Covary and economist Linton Reddy of DNA Economics — which informed the regulation — these seemingly small savings are actually substantial, especially given the poor performance of Eskom's generation fleet. Despite the modest efficiency improvements, the long operating hours of motors translate into significant overall savings. To put it into context, Yelland said: 'If you value electricity at around R2.00 per kilowatt-hour, that's a saving — or a reduction in revenue to Eskom — of about R1.68-billion.' Tax breaks and rebates for motor upgrades Companies that upgrade to the new IE3 motors can tap into financial incentives. Zadok Olinga, a former president of the Southern Africa Energy Efficiency Confederation and director of resource management consultancy Oelinga, said the new minimum standards aligned with South Africa's broader push for energy efficiency — and opened the door to claiming Section 12L tax deductions and Eskom rebates. Under Section 12L, businesses can claim 95 cents per kilowatt-hour of verified energy saved as a tax deduction. Eskom also offers a 41c/kWh rebate for projects that cut electricity use — including motor upgrades — as long as minimum savings and demand reduction targets are met. Phase in Manufacturers and Original Equipment Manufacturers can still sell off their existing IE1 and IE2 stock until May 2026. End-users — such as factories or farms — aren't required to immediately replace older motors, but must buy energy-efficient ones when they do. 'Motors are built to last around 20 years,' said Van Niekerk from WEG.'But in reality, many reach end-of-life within seven to 10 years, especially in demanding environments.' For businesses that run motors 24/7, the higher upfront cost of an IE3 motor is often recovered in a matter of months through lower electricity bills. For others — say, a bakery or a workshop that runs motors eight hours a day — the payback period might be two to three years. DM
Business Recorder
05-05-2025
- Business
- Business Recorder
Repayments via power bills: DC fans to replace AC ones thru govt initiative
ISLAMABAD: The government is poised to launch a nationwide initiative to replace alternating current (AC) fans with more energy-efficient direct current (DC) fans. This programme will be funded by commercial banks, with repayment to be made in small installments through electricity bills. Dr. Fakhray Alam Irfan, Secretary of Power, disclosed this information during a meeting of the National Assembly Standing Committee on Power, chaired by Muhammad Idrees. He explained that key fan manufacturers have been in regular discussions with the National Energy Efficiency and Conservation Authority (NEECA). As a result, many large manufacturers have already shifted from producing AC fans to DC fans. In addition, Dr. Irfan highlighted a new program introduced by the Prime Minister, which will be rolled out within the current financial year. The program, which is almost finalized, allows consumers who opt to participate to receive loans from banks to replace their old, inefficient AC fans with energy-efficient DC fans. These loans will be repaid through adjustments in their electricity bills. The committee was informed that the replacement of AC fans with DC fans could save up to 5,000 MW of electricity, eliminating the need for additional generation capacity. Currently, AC fans consume 388 million units of electricity annually, costing $25 million. Air conditioners account for 135 million units with a financial impact of $7 million, while refrigerators consume 1,073 million units at a cost of $53 million. Beating the heat, cutting the cost: How inverter fans have taken over the market The committee was also briefed on steps being taken to ensure energy conservation across public sector organizations. The Power Minister has written to all public sector departments to comply with energy-saving building codes, and provincial governments have been urged to implement these codes as well. The committee plans to send its recommendations to the provincial governments for further action. The government's target is to save $6.4 billion annually starting from 2030 through the implementation of Minimum Energy Performance Standards (MEPS). During the meeting, MNA Chaudhary Naseer Ahmed Absas revealed that some guest houses in Islamabad are involved in electricity theft, allegedly in collusion with officials from the Islamabad Electric Supply Company (IESCO). He added that one IESCO official owns a guest house that is directly supplied with electricity. Absas further claimed that consumers who have installed solar photovoltaic (PV) panels are being sent inflated bills. Additionally, meters in several government buildings and water pumps are reported to be faulty or burnt, yet these consumers are still being overbilled, with the costs of stolen electricity added to their charges. The issue of recovery and losses at Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) also came under discussion. It was revealed that the figures provided by the Power Division and both distribution companies differed, leading to a disagreement between the Power Minister, Sardar Awais Khan Leghari, and the CEO of HESCO. Imtiaz Gilani, Additional Secretary of the Power Division, noted that the performance of both HESCO and SEPCO had deteriorated compared to the previous year. In his briefing on the Indicative Generation Capacity Expansion Plan (IGCEP) for 2025-35, the Power Minister stated that when the current government took office, there were plans for power projects totaling 90,014 megawatts. By eliminating expensive projects, the government has reduced the financial burden by Rs 1,953 billion. He further explained that by adjusting the timelines of these projects, the government has saved Rs 2,790 billion, ultimately saving consumers Rs 4,700 billion. The Minister emphasized that with this revised planning, the government will no longer need to purchase additional electricity, and the expected rise in electricity prices will no longer occur. 'Had we not made these adjustments, the additional costs would have inevitably been passed on to the consumers,' he added. During the meeting, MNA Ameen-ul-Haq from Karachi inquired about safety measures in place for electricity distribution in the city. Sadia Dada, Chief Distribution Officer at K-Electric (KE), responded that strict safety measures are enforced during both the summer and monsoon seasons. She explained that water accumulation caused by rainfall and illegal power connections (known as 'kundas') create further challenges. To mitigate these issues, KE temporarily shuts off grids during rainy seasons to protect lives, and power is restored once the water levels recede. Dada also noted that KE operates 2,100 feeders, with 70% of them free from load-shedding. Industrial areas are fully exempt from load-shedding. KE plans to invest around $2 billion in upgrading its system, with the investment plan awaiting approval from the National Electric Power Regulatory Authority (NEPRA). Secretary of the Power Division, Dr. Fakhray Alam Irfan, informed the committee that KE currently receives 900 MW of electricity from the national grid, and this supply will increase to 1,600 MW in the near future. He further stated that the provision of additional electricity from the national grid would reduce the financial burden of subsidies on the government. On the issue related to restoration of electricity supply in those areas of KP where losses are 80- 100 per cent also came under discussion. Power Minister stated that a policy be framed with the support of public representatives but in case of loss, no electricity will be supplied. Copyright Business Recorder, 2025
