|dc.contributor.advisor||Kleingeld, L., Prof.||
|dc.contributor.author||Botes, Lee-Ann Alexis||
|dc.description||MEng (Mechanical Engineering), North-West University, Potchefstroom Campus, 2018||en_US
|dc.description.abstract||The industrial sector is the largest energy consumer in South Africa. There are numerous
initiatives that can be implemented in order to reduce the energy intensity of the various
industrial processes. Section 12L of the Income Tax Act (1962) allows a significant tax rebate
for quantified energy efficiency savings resulting from an energy efficiency initiative. There are,
however, strict rules and regulations related to 12L. Applications need to adhere to these rules
and regulations in order to receive the allowance.
Previous studies that focussed on Section 12L for industries recommend that multiple models
should be developed in order to quantify the energy efficiency savings. These studies, however,
do not provide guidance on how to evaluate the various models or how to select the final model.
This becomes critical when considering that different models will result in different energy
efficiency savings, which has a direct impact on the monetary value associated with 12L.
A need therefore exists to prove that the most appropriate model was chosen between multiple
modelling options. The various models should be evaluated to ensure that the final model
adheres to the multiple requirements associated with 12L. The evaluation process leading to the
selection of the final model should also be transparent in order to increase the confidence of the
reported energy efficiency savings and to protect all stakeholders involved.
This dissertation provides a detailed literature study related to the identified problem. Firstly, an
overview of the 12L Regulations and Standard, as well as industrial measurement and
verification is given. This is done to understand the legal and technical requirements of the 12L
tax incentive. Thereafter, literature regarding decision support methods is presented. The generic
steps of solving multi-criteria decision problems are also identified. These steps aid in the
decision making process between multiple possible solutions which should adhere to multiple
Objective evaluation of industrial energy efficiency models for the RSA Section 12L tax incentive
The knowledge obtained from literature is used to develop a methodology to evaluate alternative
baseline models and objectively select a final modelling option. The methodology consists of
three phases: the generation of modelling options, evaluation of the modelling options, and
ranking of results and recommending the preferred model.
The methodology was verified by implementing it on three case studies. These case studies
considered three different industries (petrochemical, iron and steel, mining). The ranked
modelling options showed a 10% to 33% variance in the potential claim value. This significant
variance highlights the importance of presenting a transparent and compliant model selection
The preferred models recommended by the methodology were finally validated by comparing
their result to models developed by an independent, SANAS accredited team. This validation
confirms that the methodology addresses the original problem statement by delivering a
traceable and objective process of evaluating various modelling options for the Section 12L tax
|dc.publisher||North-West University, Potchefstroom Campus||en_US
|dc.subject||Decision support methods||en_US
|dc.title||Objective evaluation of industrial energy efficiency models for the RSA Section 12L tax incentive||en_US