Building the enabling framework for sustainable energy in the province

Leila MahomedSustainable Energy AfricaJune 2005

Outline• Necessary Shifts

• Recommended Building Blocks

• Possible Programmes, Projects, Actions, Targets

Shifting paradigms• Recognising the impact of

our own actions• our 4-planet lifestyle & the

need to provide access to modern energy services to millions more

• Recognising the importance of “level of energy service” not the “amount of energy” to development

• The right kind of development not “no” or “limitless” development

0%

20%

40%

60%

80%

100%

2003 2020 2050YEAR

Renewables

Wood

Nuclear

Natural gas

Fossil fuels

Introduce interim 'cleaner' fuels (e.g. natural gas)

Reducing dependency on fossil fuels

Increasing use of renew able energy

The path to sustainability

2003

Inefficient use of energy

Dependence on petroleum products

High CO2 emissions

Poor air quality

Fires, paraffin poisoning, respiratory illnesses among households

2050 Efficient use of

energy

Reduced dependence on fossil fuels

Low CO2 emissions

Clear air

Safe and affordable energy for all

‘Clean & Green’ international profile

Economic efficiency

Shifting to a sustainable energy path- the basics

Energy Leadership,

security, delivery

RE: 25% by 2020

Shifting the Provincial Energy Future

Where we are now in 2005?

WHY?

• No coherent programme but sound potential

• Cape Town CES – leadership initiative – capitalise on

• Ad-hoc projects and processes – limited impact

• Fragmented decisions around energy & other delivery programmes

• Energy vulnerability and energy poverty

• Transport pollution – significant potential for innovative programmes

• Marginal experimental wind farm (Eskom) but exceptional resource potential

OUR UNIQUE ADVANTAGE

Significant potential to address these problems

Creative, energised leadership

High value investment and development potential -

CCGT, wind, solar, biomass

Highly experienced energy sector leadership & delivery

capability

Market & investor readiness – investors, banks,

operators, consumers

Transition Strategy

How are we going to get there?

Where do we want to be by 2020?

• Operational, co-ordinated, coherent energy programme

• Energy security enhanced – measurable contribution to economic development & job creation

• Clean Transport initiative operational – cleaner fuels, increased, improved public transport, reduction in private car use, reduction in brown haze & pollution

• 3-5 key DSM projects in place (solar water heating projects; housing delivery integrated with energy conservation; industrial energy efficiency programme; residential conservation)

• 15-25% of energy from renewables (biomass, wind, solar, wave)

• IPP’s at forefront of energy development

• Energy Leadership

Building Blocks • Organising government – dealing with

institutional barriers

• Building capacity & skills and information

• Levelling the playing fields for RE & EE - dealing with financial and regulatory barriers

Building Blocks • Organising government – dealing with institutional

barriers• Ensuring an effective institutional structure for integrated

energy management in the province, based on a clearly articulated allocation of responsibilities between and amongst national, provincial and local government departments

• Taking a leadership role/ Political responsibility• Setting an energy vision & goals & targets• Assigning energy to a department and ensuring energy

part of job description• Ensuring inter-ministry or inter-dept responsibility/• Ensuring co-ordination & co-operation• Giving budget & staff to the energy programme• Alt: Independent high level energy agency

Projects in pipeline – in need of Projects in pipeline – in need of guidance or support and coordinationguidance or support and coordination

DEADPfacilitation,

policy, strategy, fiscal

incentives

Housing

• Kuyasa – SWH

• N2 Gateway – SWH, passive solar design, CDM project

• Large scale SWH roll-out – Ubushushu Bendalo, industry

• LPG pilot project – Safety Gas (Pty)ltd

Demand Side Management / EE

• George, Beaufort W, Mossel Bay, Saldanha – ripple control, geysers through Eskoms DSM programme under way

• City of Cape Town – DSM – B&B’s, hotels

Conventional Generation

• PBMR – 2015?????

• Athlone refurbishment – CCT?

Renewables – through DME / DBSA / SAWEP

• Beaufort W – 5MW wind farm (feasibility done)

• St Helena – wind, wave, biogas (planning stage)

• S. Cape – 30MW wind, wave, biogas (planning stage)

• Wave Power – international investor – power plants & manufacturing facility

• Cape Timber Resources – biomass generation

Natural Gas

• Atlantis – 1000 MW OCGT: Tender process under way – DME – 78 bidders

• Saldanha – 400 MW CCGT – private consortium

Transport- cleaner fuels

• Hydrogen – vehicles fitting – W.Cape pilot by 2007

• LPG – pilot under way with Taxis, municipal fleets – Kulani Africa Gas

Building Blocks • Building capacity & skills and information -

dealing with information barriers

• Providing communication, awareness raising and training / skills development initiatives within all spheres of community (domestic, commercial and industrial) and government

• Improving the availability of background information and data for policy-makers

• R&D based on local realities• Participation of stakeholders in decision making• Use demonstration to teach but roll out successes

soon

Building Blocks • Levelling the playing fields for RE & EE - dealing

with financial and regulatory barriers

• Developing and implementing an appropriate a transparent regulatory and policy framework

• Accelerating the development and mkt penetration of sust energy tech

• Temporary financial support for sustainable energy tech• Access to private capital / innovative credit and purchase

agreements eg microfinancing or ESCO’s• Supporting ESCOs (through Red Door?)• Developing effective partnerships with other public and

private sector bodies• Incorporating social & environmental costs of energy

technology• Leading by example

Actions/Targets – organising govt• Take a strong and well communicated policy stance on energy

generation, for example by adopting a clear provincial position on such issues as nuclear, clean energy technologies, carbon mitigation, and the management of climate change impacts.

• Set clear, measurable targets for energy efficiency and greater use of renewable energy sources,

• 15-25% of energy from renewables (biomass, wind, solar, wave) by 2020.

• 3-5 key DSM projects in place (solar water heating projects; housing delivery integrated with energy conservation; industrial energy efficiency programme; residential conservation)

• Ensuring effective integration of energy requirements within local development planning processes including Provincial Spatial Development Framework & iKapa Elihlumayo,

• Develop a clear energy programme of implementation

• Promoting cleaner transport initiatives such as conversion of state vehicle fleets to cleaner fuels, or fast tracking the implementation of non-motorised transport programmes and modal shift from private to public transport

Actions – Organising govt• Deal with transport sector - economically inefficient and environmentally unsound

because of the predominance of private transport and the lack of adequate public transport facilities. Huge environmental, economic and welfare gains can be made - is requires a significant capital investment and planning. This is seen as the area with the most significant potential impact in terms of a move to a sustainable energy profile.

• Unelectrified, informal housing dependent on unsafe and unhealthy fuels - fires that sweep through informal settlements, and paraffin poisoning amongst children - supporting roll-out programmes that make immediate short-term impact. Related to this is the need for a more co-ordinated housing policy which makes provision for energy issues, and integrates these into the sustainable housing focus of the Department of Housing should be actively addressed in the short term.

• Identifying & implement appropriate regulatory and fiscal measures in order to encourage investment into the province and ensure energy security and supply based on cleaner fuels eg feed-in tarriffs

• Identify and remove any existing perverse subsidies that may exist at the local or provincial level.

Energy Steering Committee

1

Steering Committee

Environment A&D Planning

Economic A&T

Transport &

Public Works

Housing & Local

government

Health

Department of Minerals & Energy

Municipalities – Eden, Beaufort W, Saldanha,

Cape Town

Stakeholder Groups

• Eskom

• EDI Holdings

• Business

• Labour

• International groups & partners

• NGO’s & civil society

Advisory & reference support

from

•Key local, regional, national,

international people

• Advise on content

issues of the energy

strategy

2

Actions – organising govt

Actions – Info & Skills• Promoting more effective dissemination and sharing of

information between and within Provincial and local authorities on energy efficiency success stories, best-practice case studies and typical industry sector specific resource consumption “baselines” combined with training on how to emulate and even exceed existing project successes.

• Providing technical training to build capacity within local authorities on the techniques and practical opportunities for energy efficiency in the housing, property development and the commercial and industrial sectors.

• Establishing new, well constructed energy efficiency pilot programmes and extending existing projects to other sectors/location areas, with the goal that they ultimately all become commercially viable in the shortest possible time without the need for any future financial support from government.

• Encouraging Ministerial lead projects for specific energy efficiency and generation technologies and options aimed at highlighting the potential for win-win environmental, social and economic benefits.

• Increasing awareness amongst households, property developers, commercial building managers on the benefits and opportunities for energy efficiency, solar based generation, green electricity purchases and solar water heating, particularly in more affluent communities with higher energy consumption, building on the work that has been initiated by the Cities Network.

• Facilitating and supporting research and development into energy supply issues will be crucial to ensuring long term energy efficiency and supply security

•Place Energy Advisors in each dept

Actions – levelling the field• Implementing measures aimed

at improving lighting and water-heating efficiency in all domestic sectors;

• - implementation of mandatory commercial building standards,

• -greater use of communication and information tools,

• - and the introduction of a SWH projects in a key towns across the Province

• Natural gas and cleaner technologies - encourage fuel switching (should reserves prove adequate)

• General industrial energy efficiency by supporting Energy Services Companies and creating an environment that will facilitate project success in key areas

Actions• Diversify the energy mix through innovative

partnerships and projects with a range of players and diverse energy technologies.

• Building on existing cleaner production and waste minimisation initiatives that are being undertaken throughout the province to the establishment of waste minimisation clubs).

• Identifying and stimulating opportunities aimed at promoting the supply of green electricity; for example through the implementation of voluntary targets for distributors to purchase green power, or introducing measures aimed at promoting increased purchase of green power by individual domestic and commercial consumers.

• Facilitating the adoption of voluntary initiatives within the private sector on energy efficiency, building on the current initiatives being undertaken by the National Business Initiative in consultation with various government departments.