Energy consumption in South African industry: A decomposition analysis using the LMDI approach

Abstract

Improving efficiency levels of energy consumption needs the appreciation of previous trends in the consumption of energy and the assessment of factors that have contributed to the changes in energy consumption. This study assessed the South African industrial energy consumption from 1970/1971 to 2015/2016. During 2015/2016, the industrial energy consumption increased by 794.39%. In addition, the decomposition analyses proved that the activity effect played a crucial part in the country’s industrial energy consumption increase. The results clearly showed that saving techniques and industrial policies have not impacted on the country’s industrial energy. In achieving energy conservation, it is important to enforce the policies formulated should the policies have not been well implemented. On the other hand, should formulated policies be implemented, then there is a need for revision of the existing policies.