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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
eNCA
a day ago
- eNCA
Employees charge utility R3bn for overtime
JOHANNESBURG - Eskom is bleeding cash at an alarming rate. Its financial report reveals over R10-million in board fees and R3-billion in overtime was paid out. Electricity Minister Dr Kgosientsho Ramokgopa was replying to a Parliamentary question from the EFF. Energy expert Mohamed Madhi said there are a number of factors relating to overtime.
eNCA
a day ago
- eNCA
700,000 new credit individuals added in Q1
JOHANNESBURG - South Africans' love for credit shows no sign of slowing down. Research firm Eighty20 reveals that there were 700,000 new credit individuals in the first quarter of this year. That's a 27 percent increase from 2024. And total debt taken on by these new individuals? A whopping R4.8-billion. So, why are more people taking on credit in an underperforming economy? Eighty20 Managing Director, Andrew Fulton, said credit is important for a credit rating.
The South African
a day ago
- The South African
Tensions grow between SASSA and the National Treasury
SASSA and the National Treasury were at loggerheads this week in Parliament. New SASSA CEO Themba Matlou, who's barely been in the job permanently for two months, had to answer to the Parliament portfolio committee on social development. At the centre of tensions between SASSA and the National Treasury are conditions attached to the R265-billion budget allocation. On one hand, you have the High Court ruling back in January 2025 that said SASSA was being 'deliberately exclusionary.' And now you have the National Treasury wanting to see have SASSA is reviewing, suspending and cancelling grants to keep the budget in check … It's a little farfetched to expect SASSA SRD R370 applicants to have a smartphone and data for monthly verifications. Image: File Unfortunately, this puts the South African Social Security Agency in a highly compromised position. If it doesn't actively exclude grant recipients, the National Treasury will say conditions to its budget allocation are not being met. However, after the High Court ruling earlier this year, civil society is watching closely to see how the agency 'increases grant inclusivity.' As such, SASSA CEO Themba Matlou told the committee this week that its new review process for social grants will comply with the National Treasury's requirements. The first necessity is a quarterly report, due at the end of July, that proves the number of grants reviewed, suspended, cancelled and money saved by the agency. Meanwhile, it's the elderly who suffer and must travel to SASSA offices to have their identity verified. Image: File Key to the agreement between SASSA and the National Treasury is the agency must improve its income, biometric and governmental verification systems. Meanwhile, it's overtly clear that these new digital processes are impacting poor beneficiaries who don't have access to smartphones and data. Nevertheless, when the National Treasury allocated R265 billion budget to SASSA, it had the following provisos. 'SASSA must introduce bank income checks on grants. It must conduct large-scale database checks at least twice a year. It must finalise agreements with SARS and NSFAS to verify beneficiaries' income. And it must intensify biometric checks on suspicious applications,' reports GroundUp . SASSA's first report is due to the National Treasury next month. Image: File As a result, these reviews have already started being implemented. Specifically, Child Support, Old-Age, Disability and Care Dependency grants were flagged for undisclosed income and alternative forms of identification. Instead of the usual three-month review period, affected individuals had their grants withheld until they completed in-person verification at a SASSA office. However, Matlou and SASSA has come under fire over these latest verification policies. And he told Parliament he is aware of the frustration. 'Through beneficiary education, we emphasise that citizens have a responsibility to assist the government to save money. And beneficiaries need to notify SASSA when their financial circumstances have changed,' explained Matlou. Furthermore, the agency says it will start rolling out service kiosks at offices to help clients with remote biometric identity verification. 'The goal is to make biometrics compulsory for all SASSA applicants, whether you are trying to access the social assistance programme with or without identification,' concluded Matlou. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
