Abstract:
The surging energy demand from residential and industrial sectors necessitates effective performance from the energy sector. The efficiency of energy
generation, supply, and distribution is a crucial global agenda, as energy
drives socio-economic development. Thus, strategically analyzing the efficiency of both supply services and consumer behavior in various energy
markets is indispensable. This paper examines the performance of the distribution chain within the South African power grid system and the consumption intensity by regional segments. It assesses the sustainability of
both the distribution chain and consumption patterns to inform long-term
planning through critical intervention strategies. A two-tier approach is
employed to analyze inefficiencies by examining supply and consumption
in selected urban and rural residential markets. The indicators from the
Energy Trilemma Index guided the empirical research, which was conducted
through a quantitative survey. Supply performance was analyzed in socioeconomic terms, while consumption behavior was examined through appliance usage. Descriptive statistics and exploratory factor analysis were jointly
used to analyze the different data sets. Findings indicate that households in
less affluent rural regions such as Soweto, Extension 39, Ikageng, and
Soshanguve generally earn below 15,000 ZAR (77%) and spend less on
electricity (<200 ZAR by 36% and < 300 ZAR by 40% monthly). Conversely,
households in more affluent rural and urban settings typically earn between
25,001 -34,000 ZAR (37%) and 34,001 -46,000 ZAR (39%), spending over 300
ZAR monthly on electricity (80%). Significant differences also exist between
regions (NWP and GP) in terms of supply consistency, supply security, use of
alternative energy, and energy savings. Most households use a high number
of appliances daily, except for air conditioners and pool pumps. In less
affluent settings, fridges, electric geysers, and stoves older than five years
are common, whereas more affluent settings have newer appliances. The
intensity of air conditioner and pool pump usage is low during winter, while
space heating is less intense during summer. This segmentation study assists
the national government in understanding current market dynamics and the
diverse needs and preferences of consumers. Analyzing multiple regional
settings provides a comprehensive understanding of unique behaviors and
preferences across different target consumer markets, paving the way for
eradicating energy poverty and achieving sustainable communities.
