Policy Guide

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Energy Efficiency and Demand Side Management Incentive Program (EEDSM)

The South African government introduced the National Energy Efficiency Strategy (NEES) to reduce the demand of energy. Responding to this programme, the largest state-owned utility Eskom implemented a financial incentive programme, “Energy Efficiency and Demand-side Management Incentive Programme (EEDSM)”. The aim of this programme is to promote energy-efficient technologies, processes and behaviours amongst all electricity consumers. It has been in place since 2004 and was extended in the last years. Several projects were implemented under this programme including a standard product programme, a standard offer programme, an ESCO programme and a residential mass rollout programme (from 2004 to 2011 47 million CFLs were distributed door-to-door or at exchange points with realised energy savings of 1958 MW) (Skinner 2013).
Today, however, the continuation of the programme is uncertain.


  • Modingoana, Kabelo (Lead author)
  • Nxumalo, Sizwe (Author)
  • Tholen, Lena (Reviewer)
  • Götz, Thomas (Reviewer)

References and further reading

  • Department of Energy, South Africa (2010): Policy to support the Energy Efficiency Demand Side Management. Program for the Electricity Sector through the Standard Offer Incentive Scheme. www.bigee.net/s/uffqhc
  • Department of Minerals and Energy (2005): Energy Efficiency Strategy of the Republic of South Africa www.bigee.net/s/6zsmpp
  • Eskom (2014): Company information www.bigee.net/s/avi5fy
  • Eskom (2014a): Energy Audit – M&V Process www.bigee.net/s/gnqvgt
  • Hertzog, Helmut (2014): Market Intelligence Report: Energy Efficiency. www.bigee.net/s/jpffej
  • Institute for Industrial Productivity (2014): ZA-2 Eskom’s Energy Efficiency and Demand-side Management (EEDSM) incentive program: www.bigee.net/s/dpkyar
  • International Bank for Reconstruction and Development & The World Bank Group (2011): Implementing Energy Efficiency and Demand Side Management. South Africa’s Standard Offer Model. www.bigee.net/s/j61pmm
  • International Bank for Reconstruction and Development & The World Bank (2013): Unlocking Commercial Financing for Clean Energy in East Asia www.bigee.net/s/jab7pf
  • Lawrence Berkeley National Laboratory (2013): Energy Efficiency Country Study: Republic of South Africa. www.bigee.net/s/fxnjgx
  • National Energy Regulator of South Africa (2010): Revision of Regulatory Rules for Energy Efficiency and Demand Side Management (EEDSM) including Standard Offer Programme (SOP): www.bigee.net/s/fgpc74
  • Skinner, Tom (2012): An Overview of Energy Efficiency and Demand-Side Management in South Africa. Presentation to the World Bank/IFC Workshop on Appropriate Incentives to Deploy Renewable Energy and Energy Efficiency, Washington, DC, January 30–February 1. www.bigee.net/s/z9ap8q
  • Unlimited Energy (2013): Development of 1st Draft of National Energy Efficiency Action Plan (NEEAP) for the Republic of South Africa. www.bigee.net/s/q7wnqy
  • Xia, Xiaohua (2012): EEDSM, M&V in South Africa. www.bigee.net/s/t7hwrv 


  • Location:
    South Africa

  • Types of policy:
    • Feed-in-tariff for certified energy savings
    • Promotion of energy services for energy savings
    • Financial Incentives for ULEB and deep retrofits

  • Implementation period:
    2004 to present

  • Title in original language:
    Energy Efficiency and Demand Side Management Incentive Program

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