Deputy Minister of Energy, Ms Barbara Thompson
Chairperson of the Portfolio Committee on Energy, Mr Sisa Njikelana Chairperson of the Select Committee on Economic Development, Mr Freddie Adams
Members of Parliament present
Ms Nelisiwe Magubane, Director-General of the Department of Energy Deputy Directors-General and all senior managers of the Department of Energy present
Chairpersons and senior managers of the State Owned Entities
All other stakeholders and partners present – including representatives of the oil companies, energy sector associations, and labour organisations
Members of the media
Ladies and gentlemen
Programme Director, when in December 2010 the General Assembly of the United Nations declared 2012 “the year of sustainable energy access for all”, it did this in recognition of the fact that access to affordable modern energy services is essential for overall sustainable global development, and for the achievement of the Millennium Development Goals.
The General Assembly’s Resolution 65/151 called on the Secretary-General to organise and coordinate activities to be undertaken during the year in order to “increase awareness of the importance of addressing energy issues, including modern energy services for all, access to affordable energy, energy efficiency, and the sustainability of energy sources and use at a local, national, regional and international level.”
Thus, the declaration by the United Nations for the promotion of action on energy issues, towards the attainment of the internationally agreed MDGs, is one that cannot be ignored by any of the nations of the world. And in South Africa, where we currently face challenges in reaching our goal of providing affordable energy from a variety of sources for all those who need it, as well as promoting energy efficiency in the light of escalating costs, environmental issues and, a finite fossil resource base - the UN’s call to action could not be ignored.
Today, programme director, ladies and gentlemen, my role is not to speak at length about the energy programme – this will be done by the Branch DDGs when they make their presentations. Rather, mine is to launch the energy engagement programme in South Africa in line with the Secretary-General’s “sustainable energy for all” initiative.
An initiative that aims to engage role players and stakeholders in the sector, towards the goal of achieving sustainable energy for all, and to reach three (3) defined objectives by 2030.
That is:
- universal access to modern energy services
- doubling the rate of improvement in energy efficiency and
- doubling the share of renewable energy in the global energy mix.
During the Department of Energy’s “March 2012 Energy Month” we will roll out a calendar of events that ensures that we interact with a varied spectrum of stakeholders and role players in our efforts to realise the UN’s aims for the year of energy.
Among the activities we have lined up are the: Wind Atlas launch and two (2) workshops with policy makers and sector stakeholders. This event will be held on the 13, 14 and 16 of March here in Cape Town and Gauteng and will discuss the strategy for the roll out of the wind energy atlas project going forward. As you may be aware, at 633.99 MW, wind energy enjoys one of the highest uptakes in the first window of the five (5) window Renewable Energy Independent Power Producers programme that the Department of Energy (DoE) commenced in August 2011. Valued at R120 billion, the Independent Power Producer (IPP) procurement programme aims to add 3 725 MW to the current national electrical capacity.
The Integrated National Electricity Programme indaba will be held on 15 to 16 March in Durban. To date the programme has managed to exceed its annual targets by averaging 210 000 grid and non-grid connections (including Solar Home Systems) against a target of 180 000. Yet, in spite of this commendable success, the programme which focuses on rural and newly established formal and informal settlements faces the challenge of increasing costs of supplying new customers, network capacity, lack of skills, and the poor financial status of distributors.
Among the most important participants at this indaba will be local municipalities which are at the coal face of delivery.
At the end of the month on 29 to 30 March, the Integrated Energy Plan colloquium will bring together sector stakeholders in Gauteng to discuss strategies for the development of the IEP roadmap. Among the expected outputs of the roadmap is the defining of key policy questions to be addressed by the IEP, as well as a framework which will enable the evaluation and assessment of different policy proposals.
In addition to these three (3) major activities for the department, a number of smaller events targeting communities more directly will be held.
They include:
The Public Participation Programme whereby “an electricity substation switch-on” will take place at the Matzikama Municipality in Vanhrynsdorp on the west coast of the Western Cape; “2 529 connections” at Ntambanana Municipality near Richards Bay in KwaZulu-Natal will be acknowledged; and the celebration of “International Woman’s Day” at Noupoort, in the Northern Cape.
In addition to these many activities for March the DoE will also engage in other strategic activities during the year and beyond. And of particular interest to all parties present will be the upcoming 20 year Liquid Fuels Roadmap and Refineries Audit interaction will follow at a date to be announced once the Roadmap project is concluded in June.
The issue of liquid fuels security of supply is another important element in the DoE’s mandate of developing and monitoring energy policy. The Road map under development sets out to lay a foundation, and provide a framework for ensuring security of supply in the medium to long term.
This will be done in a manner that is cost effective and supportive of the national growth and development goals. Over and above the bench marking to be set by the road map, the outcomes of the Refineries Audit is another strategic issue. This will inform government of the industry’s state of readiness in terms of reliability, availability, and capacity levels. Currently, the truth of the matter is that for a number of years the demand for liquid fuels has outstripped supply.
On 9 to 10 May 2012, the Africa – European Union Energy Partnership Conference will take place in Cape Town. This conference comes on the footsteps of the African Energy Ministers Conference hosted by the Department in September 2011. The AEMC culminated in a Declaration that committed members to decisive actions towards a contribution in the fight to reduce the global carbon footprint.
The more than 30 Ministers and country representatives present made this commitment despite recognition of the fact that African Union member states are among the lowest contributors to emissions globally. Yet the continent is amongst the most vulnerable to the ramifications of climate change. The Declaration of the AEMC can be viewed on the DoE website.
Programme director, ladies and gentlemen - the programmed events that I have highlighted are of particular importance to us in this year of sustainable energy access for all for a number of reasons. As you are well aware the Department of Energy’s Integrated Resource Plan 2010/30 is a 20 year plan that aims to ensure the security of electricity provision across the board.
Specifically, the IRP proposes the development of new generation capacity for South Africa which takes cognisance of the need to optimise costs, promote job creation, and mitigate adverse climate change.
The IRP makes provision for 9,6 GW of nuclear power; 6,3 GW of coal, 11,4 GW of renewable, and 11,0 GW of other generation sources. The IRP is a living document that is intended for periodic reviews and, the Deputy Director-General for the programme will talk to this matter in his presentation.
Programme dDirector, ladies and gentlemen – in the presence of our much appreciated media contingent it would be remiss of me not to speak to an issue that seems to have caught their attention in recent times. And that is the nuclear build programme. Thus, while the issue will be dealt with in detail in the presentation to follow, I wish to say that the Department of Energy is no way uncertain of its responsibilities and role in the nuclear build programme.
As a department in the government of the current administration, we appreciate the fact that government departments are established to complement each other in working towards the same goals. Thus, the Department will play its rightful role in the intergovernmental bodies set up to manage the process of the nuclear build programme.
This is the Cabinet approved National Nuclear Energy Executive Committee Commission which is chaired by the Deputy President – deputised by the Minister of Energy, and is responsible for determining the roll out of the nuclear programme. The other members of the Committee are the Ministers of Finance, Public Enterprises, Trade & Industry, Economic Development, Water & Environmental Affairs, Science & Technology, Higher Education & Training, and National Planning.
The Inter-Ministerial Committee will be supported by the technical team comprised of the same departments and will be chaired by the Director General of Energy.
It is my responsibility to also apprise members of the media that the government of South Africa, through its Ministries, maintains agreements with various countries on issues including nuclear energy.
However, to date the NNEECC has not given any directive on the issue of procurement for the programme. Members of the media will be the first to know if there are any bids for this massive development.
In conclusion,
Programme director, let me again say that the Department of Energy is firm in its support for the UN declared “Year of Sustainable Energy Access.”
We will maintain a programme of activities aimed at advancing South Africa’s energy access and security issues throughout the year and beyond, and not just in March 2012. In fact stakeholders are invited to frequent our website at www.energy.gov.za for updates of DoE related activities, and come and partner with us whenever possible.
I thank you.
