at the National Climate Change Summit, Gallagher Convention Centre
3 March 2009
Programme director
Honourable Ministers
Deputy Chairperson of South African Local Government Association (SALGA),
Sophie Matshika
Members of the labour movement
Members of the business community
Civil society representatives
Distinguished guests
Ladies and gentlemen
I appreciate the invitation and it is my privilege to address you on this
occasion that marks South Africaâs second national summit on climate change. I
must also thank the organisers of this event, led by the Minister and
Director-General, for facilitating this process, and helping us to come
together to discuss this important matter.
Climate change poses a number of challenges for South Africa, more so in the
energy sector. From our increasing understanding of climate change, it is clear
that strong temperature rises could have significant impacts on South Africaâs
agriculture, biodiversity, economy and people.
The energy sector impacts directly on changes in climate. Climate impacts
include effects on water availability for power stations and changing the
countryâs energy supply and demand patterns. We know that South Africa is
endowed with rich deposits of coal, which therefore means that our energy
industry is particularly carbon intensive. We do rely heavily on fossil fuels
for energy generation. Our industries, which are also energy intensive, play a
critical role within our economy, which means that we face particular
challenges in greenhouse gas reduction. The country is also exposed to changes
in global fossil fuel markets due to climate change response measures.
Energy and climate change are clearly intimately connected and it is
therefore important that as the Department of Minerals and Energy we play our
part in the drive to preventing the worst impacts of climate change, while
protecting our energy sector and ensuring that it remains a key platform for
economic growth and development in the country.
Fortunately, the mitigation of climate change also offers opportunities for
South Africa, including significant potential for growing small, medium and
micro enterprises in the renewable energy and energy efficiency sectors and we
must ensure that our climate change policies assist in promoting these
opportunities. International funding sources, such as the clean development
mechanism, also need to be extensively tapped into, in order to obtain the
greatest socio-economic and environmental benefit from our domestic mitigation
actions.
The Department of Minerals and Energy (DME) and allied agencies have already
implemented a range of policies and practical measures to start re-orienting
the energy sector towards a more climate friendly path. The energy efficiency
accord, agreed on with the private sector, alongside broader initiatives to
promote energy efficiency amongst households, should go some way to reducing
demand for electricity. I must say that government has really come to the party
on this one and the Department of Public Works is working hard to ensure energy
efficient government installations.
The recent budget speech announced by Minister Trevor Manuel also provides
tax incentives for investments in energy efficient technologies, favourable
treatment for income received from the sale of emission reductions under the
clean development mechanism, and disincentives on incandescent light bulbs and
cars with high carbon dioxide emissions. All of these will support a more
energy efficient economy.
Energy efficiency is a key to mitigation. It is a low hanging fruit in the
efforts to overcome this challenge.
On the supply side, the National Energy Regulator of South Africa has
recently carried out consultations on a renewable energy feed-in tariff in
South Africa. This feed-in tariff could play an important role in stimulating
the renewable energy market in South Africa, diversifying our energy mix, and
promoting the development of Independent Power Producers. Other policies, such
as the bio-fuels strategy, are also being implemented to improve the
sustainability of the supply of energy.
The DME is engaged and supportive of these processes and looks to other
successes in the energy sector from provincial and local government,
non-governmental organisation (NGOs) and the private sector as evidence of
South Africaâs growing stature in addressing climate change.
In the context of these growing efforts, the DME welcomes the opportunity to
provide input to this summit, and to play our role in the evolution of South
Africaâs framework and policy for climate change. We applaud the work that has
been done thus far in the development of the Long Term Mitigation Scenarios
(LTMS) and the research and analysis that this offers to the country.
In support of this climate change framework, of which the LTMS is part, the
DME recognises the critical role of the energy sector in mitigation, and the
need to step up implementation to address greenhouse gas emissions.
Ladies and gentlemen, as we are well aware, South Africa is blessed with
significant renewable energy potential. We are continuing with the pilot
projects around strong wind and solar which we hope to upscale at the right
time. The well-developed sugar industry is in discussions with us with the mind
of playing a critical part in these efforts.
The department has identified biomass as one of the easiest and quickest
sources of renewable energy that can contribute towards the target. Through
negotiations and agreements with Department of Environmental Affairs and
Tourism (DEAT), most landfill sites would not require a full environmental
impact assessment which reduces costs and time spent on developing these
projects. The department is also providing a capital subsidy for these
projects. The energy development corporation at the central energy fund has
established partnerships with a few municipalities to utilise landfill sites to
generate electricity. In April, the department will also be launching a working
for energy programme which will focus on using wood harvested through the
working for water programme to generate electricity from mainly biomass
sources.
We know that Biomass Pulp and Paper have potential to generate about 110GWh;
Landfill Gas approximately 597GWh, 57 municipalities owned landfill sites have
the potential to generate approximately 1200 GWh/annum. One of our best bets is
electricity generation from Bagasse, with a potential of approximately 5 846
GWh. The South African Sugar Association suggests that it can contribute at
least 400MW (equivalent to 2000 GWh) through cogeneration by 2013.
Clearly more needs to be done to support both public and private investment
in renewable energy technologies, in support of a buoyant renewable energy
industry in South Africa. The global renewable energy industry has shown
remarkable growth in recent years, and these technologies offer a number of
economic opportunities and job creation benefits that our society can
capitalise on.
The continent has proven to have huge potential with regards to the creation
of less polluting means of creating energy. The Cahora Bassa project in
Mozambique has potential to generate 2000MW, enough electricity not just for
the region but for the whole continent as well as parts of Europe. Of the
capacity generated, South Africa imports 1500MW. This figure could be higher
but is constrained by the lack of transmission lines.
Inga one and two provide electricity primarily for local or domestic
electricity needs within the Democratic Republic of Congo (DRC). The two plants
are undergoing refurbishment in order to optimise potential. Both the World
Bank and African Development Bank are involved in the refurbishment
process.
Inga three, otherwise also known as the Westcor Project, has the highest
potential to meet the needs of the DRC and also supply power to other
countries. About five Southern African Development Community (SADC) countries
(Angola, Botswana, DRC, Namibia and South Africa) are working together to
further develop Inga three. This will include the development of transmission
lines from the DRC through Angola to South Africa.
We know that in South Africa opportunities for large scale hydro are
limited; as a result installed hydro power capacity is about 661MW. We are one
of the 30 driest countries in the world. Yet there is potential for small scale
hydro development and Eskom, the national utility currently uses pumped storage
schemes for assistance with peaking capacity. These pumped storage schemes
contribute about 1,400MW.
There is a further potential for small scale hydro development of about
71.2MW. Upgrading or refurbishments of existing hydro plants can
contribute10.3MW and there exist dams with new hydro potential of 10.4MW. South
Africa's potential for hydropower is concentrated in a few areas along the
eastern escarpment, where there are 6 000 to 8 000 potential sites. The
estimated maximum electricity generation potential is 9 244 GWh/annum
The widespread adoption of energy efficiency measures is an example that
multiple benefits can be achieved for South Africa. This would be by enhancing
security of supply, promoting the competitiveness of industry, improving the
balance of trade and supporting a host of environmental objectives.
The recent power shortages in the country have helped to galvanise the
nationâs understanding of the importance of energy conservation in the economy.
What is needed, however, are sustained efficiency drives for the household,
commercial and industrial sectors, to ensure that we capitalise on these
efforts and promote continued economic growth, prosperity and environmental
protection.
Nevertheless, the energy sector will be required to adopt a balanced
approach towards mitigation, one that maximises on available opportunities and
âwin-winâ scenarios, but also recognises that certain efforts may be
prohibitive. Cognisance will need to be given to the long-term nature of many
energy investments, and consequently factored into current and future planning
for mitigation activities.
These efforts will also need to be aligned with national priorities around
electrification and improved energy access, reducing energy poverty,
affordable, safe and efficient public transport, socio-economic development and
the maintenance of national energy security in both the electricity and liquid
fuels sectors. In this regard, the DME is to adopt a proactive approach to
curbing greenhouse gas emissions, whilst recognising the need to ensure the
achievement of wider national objectives.
In support of the departmentâs mitigation activities, the DME has recently
commenced with the development of an energy and climate change strategy for the
energy sector. The purpose of this strategy is to assist the DME in
establishing an effective response to climate change, which takes into
consideration the key drivers and challenges for the sector.
The energy and climate change strategy will ensure that the DME contributes
meaningfully to mitigation efforts, and is effectively positioned to address
the implications of international climate change negotiations on our energy
industry, so as to maximise potential benefits and minimise risks where
possible.
The strategy is scheduled for completion by the end of September 2009. It
will also consider technological opportunities in energy efficiency, renewable
energy and carbon capture and storage, whilst assessing possible mitigation
measures for the energy sector as a whole.
We trust that the strategy will provide effective input into the energy and
climate change framework in South Africa, securing the DMEs role in promoting a
sound response to mitigating against climate change.
We look forward to the outcomes of the summit and trust that this event will
help us to share a common vision for the achievement of climate change
objectives in South Africa.
I thank you.
Issued by: Department of Minerals and Energy
3 March 2009
