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A SENSE OF AFRICA
We extract highlights of South Africa’s
Minister of Energy, Ms Tina Joemat-
Pettersson’s 2016 budget speech.
The full speech is available on the
Electricity+Control website.
This year South Africa will continue
to focus on its chosen path towards a
diversified energy mix especially as it
relates to renewable energy, regional
energy integration, gas development and
the Independent Power Producers (IPPP)
programme.These initiatives support the
economic growth strategy outlined in
the 9 Point Plan, the 2014 and 2016 ANC
Election manifestos and the National De-
velopment Plan.
Integrated Energy Plan (IEP): This
represents South Africa’s overarching
energy policy and strategy statement that
has been under development since 2012,
when Cabinet approved the commence-
ment of the public consultation process.
The Ministerial Advisory Council has
given comprehensive comments on the
document. The IEP will provide answers
to questions about our energy future and
the development of the Energy Master
Plan. Arising from the development of
the IEP, will be plans for electricity, gas
and liquid fuels sectors (which should be
ready for scrutiny in the second quarter
of this financial year).
The Gas Infrastructure Plan will
take its lead from the IEP regarding gas
pipelines, storage and necessary infra-
structure.The future energy demand will
be a mix of electricity, gas and liquid fuels
– cost competitiveness will determine an
equilibrium among the three.
Renewable Energy IPPP has become
the globally recognised most progressive
and successful alternative energy pro-
gramme. Since their introduction, solar,
wind, biomass, small hydro and landfill
gas power plants have been going up
across the country feeding clean energy
into the national grid. By December 2015
the department had procured 6 377 MW
of renewable energy. It has connected 44
projects with a capacity of 2 021 MW to
the national grid with many more under
construction. The energy contribution of
IPPs is expected to grow to approximately
7 000 MW with the first 47 renewable
energy IPPs fully operational by mid-2016.
Private investment in the programme
exceeds R194 M. Bid Window 4 Expe-
dited Round could bring an additional
1 800MW. BidWindow 4 (including invest-
ments made through the small projects
programme) will increase the investment
to R255 billion. (BidWindow 5, when re-
leased, will further fast-track investment
in the sector).
South Africa is on track to
meet the national commit-
ment to transition to a low carbon
economy with a target of 17 800 MW of
renewable energy power by 2030.
The current renewable energy opera-
tional portfolio is contributing an increas-
ing percentage of the buffer between the
available supply and projected demand
for electricity. A 16% contribution is made
to the total energy produced during the
morning and evening systempeak periods
in a 24 hour period. As the energy mix
diversifies with the inclusion of Concen-
trated Solar Power (CSP) which includes
a storage element, biomass and landfill
gas, the share of energy available during
peak periods will increase. In addition,
the Northern Cape Solar Park will boost
renewable energy development in the
country, generating 1 500 MW.
The Nuclear Energy Expansion
Programme is a central feature of the
future energy mix, and the country stands
at a crossroad of a nuclear new build
programme procurement process having
worked towards deploying 9 600 MW of
nuclear power fleet by 2030. The Depart-
ment of Energy (DoE) will issue a Request
For Proposal (RFP) to confirm the market
sentiment regarding the nuclear pro-
gramme. The RFP phase will ensure that
the country secures binding commercial
and financial information to fully appraise
the Cabinet to be able to take a final deci-
sion on the best arrangement to imple-
ment the nuclear new build programme.
To quote the Minister: “We will ensure that
the process is above board and free of any
potential for corruption”.
Skills – A Workplace Skills Develop-
ment Plan (WSP) has been developed by
the DoE based on the training needs of
employees and managers.
The DoE budget for 2016/2017 is
R7,5 billion.
The minister concluded by saying: “We
must put aside our individual preferences
and gripes and pull together to achieve
the collective goals that will ensure that
we get our country firing on all cylinders
again”.
Enquiries: Email
2016 Budget speech by South Africa’s Minister of Energy
South Africa’s Minister of Energy,
Ms Tina Joemat-Pettersson.
Electricity+Control June ‘16 42