Government and Business in Western Cape put plans on the table to solve energy crisis
The Western Cape Government (WCG), City of Cape Town (COCT) and businesses in the region have agreed to work together to come up with innovative solutions to minimise the economic impact of the current energy crisis. This follows our two governments’ selection of Achieving Energy Security as a priority project which, we have called a game changer, over the next five years.
At this year’s annual Government Meets Business event, which took place on Tuesday 3 March 2015 under the theme “Energy Security”, the WCG and COCT presented a number of potential solutions to the energy crisis. Businesses immediately responded, stating their preferences when it comes implementing these solutions over the immediate and the short-to-medium term. A strong emphasis fell on alternative energy generation as a key focus of area when formulating an action plan to achieve energy security. Some companies highlighted their ability to generate and feed into the grid and to reduce their electricity demand when urgently needed. This will be taken forward by the COCT.
One of the key recommendations resulting from the event was that Government and business must meet again in six months’ time to review progress when it comes to developing an action plan. Special fora must also be established that focus on specific sectors and areas in order to come up with common responses.
Premier Helen Zille, Minister Alan Winde, and the Executive Deputy Mayor of Cape Town, Alderman Ian Neilson, co-led the engagement which was organised by the Western Cape Economic Development Partnership (EDP) and Green Cape.
Outlining the current situation, Alderman Neilson said: “Make no mistake, the current energy situation is a crisis. When people can't pursue new opportunities, when key government services are at risk and when business is held back, that is the definition of a crisis. We can no longer assume that all will be well. In response, our team have formulated a set of proposed solutions and have presented it to business for consideration. This involves interventions to both increase supply and lower demand.”
In her address, Premier Helen Zille said: “If we do not have reliable energy, we do not have economic growth. This means jobs cannot be created and the poor get poorer. We need solutions which address the needs of the economy and the poor. It is time to disband the current national government model where the state has the monopoly on electricity supply. This model has failed the residents of South Africa. We need to create mechanisms for cities, provinces and Independent Power Purchasers to enter the energy economy. This is the only way we can address the constraints we are currently faced with.”
CEO of the organising body, the EDP, Andrew Boraine, said in closing: “I was encouraged by the extent to which government was able to put action-oriented solutions on the table and by the positive reaction with which these were received by business.
Some of the key proposals presented by the COCT and WCG and which will be pursued are:
Potential immediate measures;
- Using the design of the load shedding schedule to minimise impact on business;
- Setting up a contracted demand response system where a group of customers are paid to immediately reduce their power consumption when instructed;
- Using city controlled levers to reduce pressure on the electricity system for example, geyser ripple control, where geysers are automatically switched off to take pressure off the system.
Potential short-to-medium term:
- Facilitating rooftop solar photovoltaic on buildings in the city. The system comprises electricity-generating solar panels mounted on the rooftops of residential or commercial buildings where producers can sell surplus electricity back into the grid;
- Signing power purchasing agreements with Independent Power Producers for renewables and gas;
- Increasing installations, through collaboration with stakeholders, of solar water heaters and heat pumps in households and buildings;
- Introducing time of use tariffs, for example, enabling load shifting by charging batteries during off-peak hours when power demand is low and electricity is cheaper, for use during the day (peak time) when demand is higher; and
- Government showing leadership through introducing efficient energy use initiatives at its buildings.
While these suggestions would not necessarily be implemented immediately or in their entirety, the COCT and WCG will be taking these forward in collaboration with business where necessary.
The Western Cape Government is committed to doing what it can, within its limited competencies, to achieve energy security. This is because we know that if we don’t have energy, we don’t have an economy. We need to come up with viable alternatives now so we can ensure the current energy crisis does not destroy investment, job creation and business in the province. We look forward to working with all our partners to achieve this.
For media queries, kindly contact:
Bronwynne Jooste
Spokesperson: Alan Winde, Minister of Economic Opportunities
Western Cape Government
Tel: 021 483 3550
Cell: 060 970 4301
E-mail: bronwynne.jooste@westerncape.gov.za
Michael Mpofu
Spokesperson for Premier Helen Zille
Western Cape Government
Tel: 021 483 4584
Fax: 021 483 3826
Cell: 071 564 5427
E-mail: Michael.Mpofu@westerncape.gov.za
