The Minister of Higher Education, Science and Innovation, Dr Blade Nzimande on the occasion of the National Union of Mineworks (NUM) Just Energy Transition Summit held at Emperors Palace – Kempton Park
Programme Director;
President of the National Union of Mineworkers (NUM), Mr. Daniel Balepile
Deputy President of NUM, Mr. Phillip Vilakazi;
Treasurer General, Ms Helen Diatile;
General Secretary, Mr. Makgabo Mabapa;
Deputy General Secretary, Mr. Mpho Phakedi;
Representatives from government departments;
Representatives from academia;
Representatives from media;
Participants of the Just Energy Transition event;
Ladies and gentlemen
I feel privileged and honoured to be speaking to you on this important occasion, the Just Energy Transition (JET) Summit event.
I would first like to extend my sincere gratitude to the Deputy General Secretary, Mr. Mpho Phakedi, for extending an invitation for me to participate in this momentous event.
I was tasked with the responsibility of providing the summit with the readiness of both my Department of Science and Innovation and the Department of Higher Education and Training on the future of identified skills in the new sector of renewable energy.
As the Minister that oversee the work of the Ministry of Higher Education, Science and Innovation, I would therefore like to take this opportunity to speak on the work that both these Departments are doing in relation to the hydrogen related technologies and innovation, as well as the skills required for growing the hydrogen economy in South Africa.
It is widely acknowledged that a just energy transition (JET) to a low-carbon economy in South Africa is expected to result in the loss of approximately 300 000 jobs, but the creation of approximately 815 000 new jobs up to 2050.
The jobs that are expected to be lost will be in the high-emissions industries of coal and petroleum, but there is expected to be a net gain in mining-related employment as demand for energy minerals and metals rise, which will be needed to produce cleaner energy sources.
Underpinned by the JET Summit theme of “ensuring an energy transition that is just for Workers and Communities”, I am excited to state we have supported a number of initiatives that I will highlight below.
Role of the Department of Science and Innovation
The Department of Science and Innovation (DSI)-supported initiatives, such as:
- The implementation of the four energy research, development and innovation (RDI) Flagship Programmes;
- A study on the development of local skills that will support the objectives of the 2019 Integrated Resource Plan and the implementation of the envisaged Independent Power Producers projects (IRP 2019 Study Report); and
- Cabinet-approved National Hydrogen Society Roadmap (HSRM);
- The Platinum Valley Initiative (PVI) and the Technical Vocational Education and Training (TVET) Skills Just Transition in the future Green Hydrogen Economy in South Africa
In 2021, the DSI in partnership with the Department of Trade, Industry and Competition (DTIC), commissioned a study aimed at gaining insight into the renewable energy sector’s skills needs, gaps and potential interventions and measures that needed to be implemented.
The focus was on analysis of the skills demand based on the technologies and projects listed in the IRP 2019, with a clear focus on the required skills pertaining to the manufacturing, development, construction, operation and maintenance of the projects, and transmission and distribution grids.
The study identified a list of ten occupational skills that would be required in the future. These include: Cyber Security Specialists, Data Analysts, Drone Operators, Energy Analysts, Energy Storage Engineers, Grid Controller/Switchers, Lifting Machine Inspectors, Software Developers/Programmers, Solar Photo-voltaic (PV) Draughtsmen and Wind Met Mast or Instrumentation Technicians.
The study also had several recommendations namely, calling for greater collaboration and sound partnerships among institutions of higher learning and industry using the SETA’s workplace skills plan as one of the vehicles.
It also recommended that skills development be prioritised for high voltage occupations, accredited renewable energy artisans, welders and electrical linesmen.
In response to the above, the DSI has already started working with at least five institutions to capacitate them in renewable energy capabilities, integrate them into the renewable energy flagship and ensure comprehensive response to the draft South African Renewable Energy Masterplan (SAREM).
The interventions will include lecturer training, access to infrastructure for practical training, sharing of accredited curriculum courses and industry interface through work integrated learning.
In this space the DSI is working with the Central University of Technology to target TVET’s in the Free State and Northern Cape, Nelson Mandela University to service the Eastern Cape and plans are advanced with University of Johannesburg to support Mpumalanga. Already the team had visited Gert Sibande TVET earlier in September 2023.
The University of Stellenbosch is working close with South African Renewable Energy Technology Centre and will assist in identifying other institutions. The lessons learn will be used to guide and inform the national roll out.
To respond to the skills requirements, the DSI, in collaboration with the Energy & Water Sector Education Training Authority (EWSETA), Bambili Energy and the University of Pretoria, launched a course to train unemployed TVET graduates on installation, operation and maintenance of hydrogen and fuel cells.
Twenty-five (25) unemployed graduates undergone the six-week training. From 2020/21 financial year (FY) to 2022/23 FY, the total number of artisans and technicians supported through the energy RDI Flagship Programmes amounted to 89 and the total number of unemployed TVET and University of Technology (UoT) Students trained in the clean energy sector through the energy RDI Flagship Programmes amounted to 58.
The Coal CO2 to X RDI Programme employs a carbon capture and use (CCU) technologies to capture carbon dioxide (CO2) from flue gas and convert it into sellable commodities, such as fertilisers, and sulphuric acid, amongst others.
The ability to create these valuable products out of the flue gas while minimising the negative impact of the flue gas on the environment makes CCU a technology that allows coal plants to continue using coal while slowly transitioning in a just manner to renewable energy space.
In addition, the CoalCO2-X project, taking green ammonia from the Northern Cape and creating a value-added product from coal-fired pollutants in Mpumalanga, sequestered carbon will be reacted with green ammonia from Boegoebaai to manufacture fertiliser salts, which can be exported.
This will enable a prolonged usage of coal while the emissions are at manageable levels, thus helping the country to retain skilled jobs while preparing/skilling workers for the low carbon economy.
In the energy storage space, there are four avenues that emerge as possible pathways to support the development of the lithium-ion battery value chain in South Africa.
These are fostering:
1) mineral refining;
2) cell manufacturing;
3) battery manufacturing and assembly; and
4) battery recycling.
Importantly, such options are not mutually exclusive but are rather complementary in nature. However, the viability of these pathways largely differs in the short term and industrial development associated with these options is at different levels of maturity in the country.
Currently, the DSI has invested in two pathways, namely developing battery manufacturing and mineral refining, which are ready for scale-up. In this regard, the research facilities at the University of Western Cape and University of Limpopo have started training UoT unemployed graduates in 2022 with the initial intake of 12 trainees, which will be increased in the subsequent years.
The PVI is one of the identified catalytic projects of the HSRM and one of the catalytic projects that were registered as Strategic Integrated Projects (SIPs) as gazetted by the Department of Public Works and Infrastructure on 6 December 2022.
The SIPs registration enables the projects to access more resources and the required infrastructure to support their implementation. These initiatives and projects will provide a solid baseline for low emissions hydrogen developments to stimulate a local hydrogen economy.
In response to the PVI and an opportunity to capitalise on the increased demand for hydrogen applications that require PGM metals, not only to preserve the current jobs in the industry but to create more on the back of the global growth in hydrogen demand, the TVET study was recently completed by the DSI in partnership with the Department of Higher Education and Training (DHET) and EWSETA.
The study identified the following top seven sectors with the most potential for TVET jobs that can be realised by 2050 with a higher penetration of green hydrogen into the South African economy:
- Iron and Steel sector: Approximately 26 600 TVET jobs;
- PGM mining sector: Approximately 31 900 TVET jobs;
- Power generation: Approximately 16 600 TVET jobs;
- Fuel cells sectors: Approximately 9 700 TVET jobs;
- Electrolysers sectors: Approximately 9 100 TVET jobs;
- Ammonia sector: Approximately 3 000 TVET jobs; and
- Green hydrogen production sector: Approximately 2 300 TVET jobs.
Role of the Department of Higher Education
As some traditional energy sectors decline, we must provide opportunities for workers to reskill and transition into the growing clean energy sectors.
It is against this backdrop that my Department of Higher Education and Training (DHET) and the Council for Scientific and Industrial Research (CSIR) have partnered to proactively undertake a skills needs assessment which considers all the skills that will be required across all segments of the emerging green hydrogen value chain.
The assessment also includes the identification of skills gaps that exist, as well as possible interventions to bridge the gaps so that the country can participate in the global hydrogen economy.
Thus far, the project has identified 73 occupations required within the value chain categorised into Engineers, Technicians, Tradespersons, Specialists, Managerial occupations as well and Elementary level occupations.
Many of these currently exist in our economy, but some will require top-up skills or new qualifications.
The various SETA’s, which in the main include CHIETA, MerSETA and EWSETA already offer 33 occupational qualifications that can be augmented to incorporate green hydrogen capabilities and the TVET colleges offer seven (7) programmes under the National Certificates (Vocational) (NC[V]) which can help develop the necessary foundational knowledge and skills required to support the hydrogen economy in South Africa.
In our post school education and training institutions, we have identified that 35 degrees and diplomas are required for the green hydrogen economy and of these, our institutions already offer twenty-one (21).
Furthermore we are conducting stakeholder engagement to establish further interventions to be pursued.
We expect to conclude these consultations in November this year. These consultations will serve as a roadmap for government, labour, industry, PSET institutions and ordinary South Africans on the opportunities presented by the green hydrogen economy.
In relation to our SETAs, I am also pleased with the closer relations between the NUM and the SETAs, let alone that you are part of some Accounting Authorities of the SETAs. This also includes your participating in MQA learning programmes.
Through the EWSETA, we been working with Trade Unions in the following areas :
- Driving Recognition of Prior Learning (RPL) to ensure that the current uncertified workforce is certified so that they can have access to opportunities as we transition;
- Upskilling through Skills Programmes to close gaps or to enhance the current workforce capabilities;
- Other Skills Development Programmes such as Management and Leadership.
Our current commitment to support the workforce through trade unions is R21million for 950 beneficiaries, with the National Union of Mineworkers (NUM) we are supporting 550 beneficiaries to the amount of R16.3mil for Artisan Recognition of Prior Learning (ARPL) and Management Development.
These are but a summary of many of the work that our SETAs continue to do in support of the work of the trade unions such as NUM.
Our TVET colleges are valuable tools for socio-economic transformation, which is perhaps more important now than ever before.
In transitioning to a just and inclusive green hydrogen economy, we are propelling our TVET ecosystem to cultivate transversal skills and create an enabling, collaborative environment to address global shifts and local challenges.
This is the reason why our South African Green Hydrogen TVET Ecosystem Just Transition Strategic Framework is a key enabler in the implementation of the Economic Reconstruction and Recovery Plan and provides the foundation for future policy interventions needed to transform the TVET skills development ecosystem and train large numbers of green artisans and technicians.
TVET colleges have the potential to empower young people and to support established workers making the transition into the green labour market.
In this way, the TVET ecosystem will continue to play a pivotal role in the rapid expansion of renewable energy production and South Africa's move from fossil fuel-based economic dependency.
I am confident that the effective implementation of this Green Hydrogen TVET Ecosystem Just Transition Strategic Framework will re-establish the TVET ecosystem and facilitate stronger partnerships between government, the private sector and civil society.
One other area which is important to us is that of the TVET curriculum transformation.
In this regard, on the 28 August 2023, I convened the TVET curriculum Transformation and Innovation Summit.
The summit brought together various role players in the TVET sector under one roof under the theme: “TVET curriculum transformation: a key to unlock skills development for the modern economy”.
The summit also engaged resolutions of the 2017 TVET Imbizo which advocated for regular review of TVET Colleges curriculum to be aligned with modern industrial and technological advancements.
We also introduced the Centres of Specialisation in 2018 as part of significant interventions in curriculum transformation and repositioning the TVET college sector as a key provider of mid-level skills.
Again, earlier in 2013 we introduced the Decade of the Artisan as part of enhancing relevant TVET college curricula. Underpinning both was also our focus on building relations with industry.
I must also indicate that our Skills Strategy support the Economic Reconstruction and Recovery Plan (ERRP) as concluded at NEDLAC in January 2022.
This strategy calls for embedding skills planning in our economic planning processes and vice versa, hence the work of Just Energy Transition will remain incomplete without embedding skills development and innovation.
Importantly, for us is to understand skills development as broadly inclusive of education and training from early Childhood Development through to Post school Education and Training, Research, Innovation, and Knowledge Creation such that the imperatives of social and economic development can be addressed. This will forever be critical for our Just Climate Transition Project.
Conclusion
In conclusion, I would like to agree with you that we must prioritize skills development in marginalized communities to uplift individuals and our communities so that everyone benefits from the Just Energy Transition.
By providing skills development opportunities to all especially the immediate affected communities, we can and we will break the cycle of poverty, unemployment, and inequality.
I would also like to take this opportunity to thank the NUM for inviting me to this Summit.
I hope my input will go a long way in helping this Summit to come with resolutions that will ensure that we have a “Just energy transition” that is inclusion of all section of our society. This transition must also ensure that we create the much more need jobs in our economy.
I wish you a productive and fruitful summit.
