6 August 2007
On Wednesday, 8 August 2007, Cabinet approved the Energy Security Strategy,
a policy document that will change South Africa's approach to energy
security.
The fuel shortages of 2005 and projected challenges coming out of studies
conducted since then, as well as the blackouts and brownouts that have hit the
electricity supply industry raised the need for the strategy.
The strategy is presented in phases with phase one focusing on liquid fuels
issues, energy security framework and the proposed energy planning approach.
Phase two, which will be presented to Cabinet at a later stage, will address
issues pertaining to electricity.
The approved strategy seeks to:
* In the short-term, secure adequate supplies of affordable energy for
continued economic growth and development
* In the medium term, enable policy and decision-makers to make informed
decisions on these complex interdependent energy outcomes
* In the long-term, ensure that strategic planning and subsequent growth and
development are sustainable.
Key elements of the policy include:
* The implementation of an Integrated Energy Modelling and Planning
Approach, which is aimed at ensuring coordination and enhanced planning
integration in dealing with future energy policy in support of achieving energy
security.
* The publication of (an abridged version of) the Energy Security Master Plan â
Phase One, which focuses on liquid fuels. Further, that the Energy Security
Master Plan â Phase Two, which also focuses on the short to medium
interventions in the electricity sector, as well as integration with the liquid
fuels sector, be brought back to Cabinet for final approval before the end of
2007 calendar year.
* The improvement of operational efficiencies by Spoornet in respect of its
service to the liquid fuels sector, by focusing on routes that allow for block
trains/block loads, as well as the allocation of additional capacity to the
Durban to Gauteng corridor.
* Improvement of operational efficiencies at the ports, especially during
periods on increased demand for imported crude oil or refined products in South
Africa. This includes ensuring that back-of-port facilities are not used as
part of refining operations.
* The promotion of local refining as far as possible, with a particular
preference for production from local resources, including those from South
Africa's neighbouring states.
* The development of the Transnet Pipelines' New Multi-Products Pipeline
(NMPP), which is necessary to alleviate the identified capacity constraints in
the petroleum supply chain by 2010.
* The promotion of energy efficiency and other demand side initiatives in all
energy demand sectors of the economy. This should be complemented by measures
aimed at effectively managing interactions with the natural environment.
The strategy can be accessed on the Department of Minerals and Energy website
(http://www.dme.gov.za/energy/documents.stm#5).
Issued by: Department of Minerals and Energy
6 August 2007
