cop17/cmp7 energy sector progress report to the select committee on economic development 18 october...

COP17/CMP7 Energy Sector Progress Report to the

Select Committee on Economic Development

18 October 2011

1

Presentation Outline

Background

Africa Energy Ministers Conference (AEMC)

Flagship/legacy projects

UNFCCC Side Events

SA CCR Expo Side Events

Partnerships and Collaboration

DoE Delegation and Accreditation

Summary of Progress

Linkages with other Departments

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Background Following COP 16 meeting and outcomes, and in preparations for COP 17 in

Durban, the Department of Energy approved the establishment of both an

internal and External Technical Steering Committee were both established in

April 2011.

The purpose of the internal COP 17 steering committee is to ensure that all

the energy sources are reflected on based on the vision and mission of the

Department based on the policy imperatives.

The External Technical Steering is comprised of the whole energy sector, i.e.

Government, SOEs, business/private sector, etc.

The committee is responsible to develop and implement Energy Sector Work

Plan for COP 17 to ensure ownership and concurrence by the energy sector as

a whole.

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Background Three (3) high level thematic panel discussions for energy were submitted for

participation in the UNFCCC precinct.

18 demonstration projects were also coordinated to be showcased at the

Climate Change Response Expo – organised and led by the Department of

Environmental Affairs.

24 thematic panel discussions / roundtables are also being developed into fully

fledged concepts for the CCR Expo participation (refer to the attached draft

energy side event programme)

Panelists for discussions will include Ministers, DG, CEOs and Technical Experts,

government and private sector representatives for various organisations from

both at national and international level

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Feed Back: African Energy Ministers’ Conference

The DoE together with the African Union (AU) hosted the African Energy

Ministerial Conference on15-16 September 2011 at Sandton Convention

Center.

A total of 45 countries, 35 Ministers and Deputy Ministers and more than 200

delegates from government and business sector, both locally and

internationally attended the conference.

The aim of the conference was to provide a high level platform for Ministers as

decision makers to have an opportunity to deliberate and map a way forward

on Access to Energy for Africa in preparation for COP 17.

The main objective was also to promote sustainable energy access for Africa in

line with the UN declaration of 2012 as the International Year of Energy access

for All.

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Africa contributes less than 4 percent of global CO2 emissions, but it is the

continent most vulnerable to climate change and least prepared to deal with

its effects.

Climate change will threaten food and energy security through higher

temperatures, extreme events, and changes in rainfall.

585 million people do not have access to modern energy in Sub-Saharan

Africa.

Energy poverty is hindering development in Sub-Saharan countries and is a

barrier to economic growth and the successful achievement of the

Millennium Development Goals.

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The following key topics informed the basis of a detailed deliberation through

scientific papers on issues on the ground:

– Climate Resilience and Energy Access: A Top priority for Africa

– A process toward Universal access to modern household energy services

– Illustrating Financial Instruments for low-carbon energy investment in Africa

– Path to energy security: Building a sustainable energy portfolio

– Regional Power trade: cutting energy costs for Africans

– Securing resources for energy investments: climate finance for green growth

A formal report on all the conference proceedings is being finalised.

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This conference was preceded by a capacity building or training side event on

14 September 2011 coordinated by UN Energy and was attended by about 70

participants spread across the continent.

The focus was on training tools for Sustainable Energy for technical teams,

project managers, etc and addressed the following key factors:

– Capacity building in Energy Planning

– Interactive demonstration of the Clean Energy Solutions center

– Measuring energy poverty

– Technology needs assessment training

– Preparing proposals & business plans for financing

– Guide to reporting Energy RD&D budget/Expenditure Statistics

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Key Outcomes of the AEMC To identify energy solutions that will ensure that Africa has the resources to

achieve economic growth and development while simultaneously addressing

the dual challenges of mitigation and adaptation to climate change in

partnership with the developed world.

To create a sustainable program for universal energy access to advance on

the scaling up of energy systems that are less-emissions intensive

Agree on solutions for infrastructure, provision of finance, and the expansion

of new and clean technologies for developing countries and in particular

Africa in order to meet the Millennium Development Goals (MDGs)

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Key Outcomes of the AEMC

Parallel to the conference, Minister of Economic Development, Mr Ephraim

Patel officially opened a side event on Green Economic Development in

South Africa- “Africa Great Opportunity: household cookstoves” which has a

potential to create employment while closing the gap on energy access.

The conference built on the work of the Forum of Energy Ministers of Africa

(FEMA) and several sub-regional economic communities, notably the

Economic Community of West African States (ECOWAS), the East African

Community (EAC) and the Economic Community of Central African States

(CEMAC), SADC, etc.

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It further sort to contribute to the development of energy strategies, aimed

at realizing the NEPAD objectives, namely achieving the growth, and success

of the African economy in realizing Africa’s great potential in energy.

This conference resulted in a joint declaration as outlined in the slides to

follow

The United Nations Energy Programme is currently finalising a book on

Climate Change which will include the South African Energy plans (vision to

2030 as per the Integrated Resource Plan) as well as Africa Energy Ministers

conference outcomes.

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The aim is to push for developing and developed countries to accelerate the implementation of both climate change adaptation and mitigation interventions in order to address energy needs while building a climate resilience future

To maximize the utilization and taking advantage of the natural resources in scaling up energy access in the continent

To seek ways to harmonize the regional power pools in achieving the growth and success of the African economy and to realize Africa’s great potential in energy

Partnership and financing from the developed world will be critical if Africa will be able to rid itself of serve poverty levels and achieve genuine green growth.

The conference concluded with a declaration that will form part of the UNFCCC deliberations in Durban (refer to attached declaration).

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African Energy Ministers ConferenceDeclaration (Details contained in the full

declaration)

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Recalling the Maputo Declaration adopted by the African Energy Ministers

at their inaugural conference held in Maputo, Mozambique, on November

5th, 2010, and reiterating the commitments that resulted, including the

formation of the Conference of Energy Ministers of Africa (CEMA);

Welcoming the progress achieved in the establishment of Regional Power

Pools and the programs, initiatives and partnerships at both regional and

sub-regional level geared towards advancing energy sector development

and integration in Africa, and appreciating the support of development

partners to Africa’s energy development agenda.

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Welcoming 2012 as the International Year of Sustainable Energy Access for

All, and the sustainable energy goals set forth in the report of the United

Nations Secretary-General’s Advisory Group on Energy and Climate Change

(AGECC); Energy for a Sustainable Future, The Secretary-General’s Advisory

Group on Energy and Climate Change (AGECC), New York, USA, April 28, 2010.

Welcoming the continued emphasis placed by the United Nations Secretary-

General and the UN system on sustainable energy as central to achieving

sustainable development. And specifically on the Action Agenda that is being

designed by a new High-Level Group on Energy around three goals: ensuring

universal access to modern forms of energy for all by 2030, improving energy

efficiency by 40 per cent by 2030, and doubling the global share of renewable

energy by 2030;

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Welcoming and Recognizing

Recognizing that access to reliable, affordable and sustainable energy

service is essential to reduce poverty and promote equitable and

sustainable social and economic development, and climate resilience in

our continent;

Recognizing that resource efficiency and green growth critically contribute

to poverty reduction, job creation, decent work, social development and a

better environment;

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Welcoming and Recognizing

Emphasizing

that inadequate energy systems will jeopardize the achievement of the

Millennium Development Goals in Africa and weaken resilience to adverse

climate change impacts, as well as hinder opportunities for vulnerable

groups, especially women and children;

the vulnerability of Africa to the negative impacts of climate change, the

resultant threats to water supply and energy infrastructure, and hence the

need to ensure adaptation to climate change;

Emphasizing that Africa, Least Developed Countries (LDCs) and Small Island

Developing States (SIDS) should be prioritised for Green Climate Fund as

reflected in the COP 15/CMP 5 Copenhagen Accord;

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Emphasizing

Emphasizing the principles of the United Nations Framework Convention

on Climate Change (UNFCCC),

– particular the principle of common but differentiated responsibility

and respective capability , and

– further reinforcing that developing country mitigation and

adaptation action is dependent on the provision of finance,

technology and capacity building support from developed countries

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Capacity Building and Finance

Capacity Building

The fundamental need to build necessary:

– human and institutional capacity developments on a sustainable basis.

– Ability to implement bankable projects,

– effective policies and regulations, and

– negotiate favourable agreements to ensure the provision of sustainable

energy for all

Finance Recalling also the COP 15/CMP 5 Copenhagen Accord on Fast Start Financing

approaching $30 Billion by 2012 and on long term funding arrangements of up to

$100 Billion per year by 2020

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Ministers assert that:

Expanding access to modern energy services and

energy security are priority to accommodate the basic needs of millions of African citizens,

facilitate human and social development, sustain economic growth, and

contribute to the achievement of the MDGs in Africa thereby building resilience to the impacts of climate change

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intermediate goal is

- To support and complete the currently planned capacity expansion through key

transformational projects,

- To add an additional 30 GW of capacity within ten years.

- To accommodate the needs of an additional 150 million Africans served by grid

electricity

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Building energy security by scaling-up regional power supply and

transmission:

The up-scaling and coordination of regional transmission and generation

capacity will enable further benefits of scale, security and diversity.

With the support of financing, technology and institutional capacity

building from developed countries to enable Africa to enhance its

economic, social and environmental development using a diversity of

clean energy sources.

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Ministers further assert that:

Localizing supply chains: Whilst growing our energy economies, Africa need to

ensure that localization of supply chains for not only the supply of equipment and

plant, but also the maintenance and operation of our facilities. This will create jobs

and grow skills as well as reduce costs

Integrated planning is critical to the sustainability and further development of

Africa’s economies and societies. As such Ministers will prioritize integrated

planning and the role of the energy sector in developing Africa’s economies,

promoting investment and localization, as well as improving education, security

and health care.

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Ministers further assert that:

Integrated planning is critical to the sustainability and further development of

Africa’s economies and societies. As such Ministers will prioritise integrated

planning and the role of the energy sector in developing Africa’s economies,

promoting investment and localization, as well as improving education, security

and health care.

Building technology and innovation capacity: Africa need to build its technology base through undertaking appropriate research and development (R&D), developing skills base and facilitating technology transfer to ensure that technologies needs are driven and appropriate for local conditions including undertaking regional resource assessment projects.

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On securing financial resources

– Africa lack of resources for project preparation and development – from

concept to financial close and execution

– most major energy projects require long term finance with repayments linked

with project revenue generation. Which is often inadequate to support the

long value chains of comprehensive projects

– the financing of these projects needs to be in the form of grants - especially

for interregional transmission and renewable energy projects

– aim to maximize the flow of green finance and carbon funds as well as the

use of mechanisms such as the CDM.

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Ministers resolve to:

Support the expansion of generation capacity with emphasis on regional projects

Enhance funding for policy and institutional development activities, with

emphasis on planning, design and timely implementation

Support a sector wide approach to scale up energy access through energy

planning and international cooperation

Enhance regional trade and energy resource development through support from

development partners

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Ministers resolve to:

Urge the COP to ensure that adaptation receives equal weighting to mitigation

and in particular that adaptation projects be recognized for support in the Green

Climate fund.

Further suggested that templates be developed to facilitate the development of

country and regional adaptation plans for the most vulnerable countries and

regions – especially in Africa.

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Ministers commit to: Ensure the success of these actions, through:

– Full cooperation in the achievement of the above actions

– Cooperation in developing regional integrated energy plans which will identify priority energy projects across the continent.

– Cooperation in the sharing of lessons learnt in the energy field through holding workshops and training programs.

– Improving the efficiency of Africa’s Energy operations to reduce emissions and improve affordability

– Working in partnership with key stakeholders including business and our Development partners

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Report on Flagship/Legacy Projects (1)

The Inter Ministerial Committee requested National Departments to

determine Top 10 National Flagship projects to be showcased at the COP 17

The Top 10 projects were selected based on a criteria agreed to by the Inter-

Departmental Logistic Committee (IDLC) Chaired by DIRCO

5 of the top 10 National Flagship projects are from the Energy Sector

The 5 projects are led by the Department of Energy in partnership with the

Department of Economic Development, Ethekwini Municipality and Eskom

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The CriteriaNO. CRITERION SCORE

(OUT OF 10)

1 LOCALISATION POTENTIAL 10

2 JOB CREATION POTENTIAL AS AN ENTERPRISE OR ACTIVITY

10

3 EXTENDED USE OF LOCAL AGENCIES AND PROGRAMS 10

4 ABILITY TO HAVE HIGH IMPACT IN TERMS OF EMMISION REDUCTION

10

5 RURAL DEVELOPMENT 10

6 REPLICABILITY 10

7 SUSTIANABILITY 10

8 ABILITY TO ATTRACT FUNDING 10

9 IMPACT ON CLIMATE CHANGE POLICY 10

10 ABILITY TO ELEVATE SOUTH AFRICAS POSITION ON CLIMATE CHANGE EG COP17

10

TOTAL SCORE 100

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The 5 Energy Sector Flagship Projects (1)

PROJECTS DEPARTMENT OWNERSHIP

1. MASS ROLL OUT OF SOLAR WATER HEATING SYSTEMS DoE/EDD

2. COMPREHENSIVE COMMUNITY SOLAR ENERGY PROJECT, NORTHERN CAPE

DoE

3. CERES WIND Eskom

4. ENERGY EFFICIENCY AND DEMAND SIDE MAGEMENT (EEDSM) – ENERGY EFFICIENT LIGHTING

DoE/Eskom

5. LARGE SCALE PV DEVELOPMENT; SOLAR ENERGY PARK CONCEPT & EKURHULENI SOLAR PV

DoE

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Options for Energy Seminar Rooms African Union Pavilion (part of UNFCCC precinct)

AU allocated 2 000 square metre by UNFCCC

SA Climate Change and Response Expo

Preliminary allocations 375 square metre

One seminar room (50 – 100 seats)

2 x Boardrooms (10 seats)

Durban University of Technology (DUT) in partnership with IRENA (International

Renewable Energy Agency)

Exhibition space and capacity building for Journalists and Media Professionals

IRENA will work closely on an Energy Indaba during the COP

NEDBANK Building (in partnership with NBI)

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DoE Delegation and Accreditation

Delegation of 22 members approved

Negotiation process

Side events and exhibitions (UNFCCC and SA CCR Expo)

Technical support to the Minister, Deputy Minister and DG

Accreditation forms submitted to DEA

Sessions within UNFCCC precinct

SA CCR Expo accreditation process underway

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Partners and Collaboration

DoE is working closely with Eskom on COP17/CMP7 on energy matters to

prevent duplication of processes and also to speak as a country instead of

individual organisations hence the energy sector representation.

IRENA is partnering with the DoE to coordinate and support RE, Capacity Building and

Training events (i.e. speakers, concept, programme, etc).

IEA through the DoE-IEA MOU is working with DoE to coordinate and support the

Energy Policy, Clean Energy Financing, Capacity Building and Training events (i.e.

speakers, concept, programme, etc).

SANEDI and French Agency for Energy and Environment (ADEME) are coordinating

energy efficiency and Carbon Capture and Storage (CCS) events (i.e. Speakers,

concept, programme, etc)

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Partners and Collaboration

European Investment Bank (EIB) proposed collaboration on clean energy

financing which the DoE is considering.

Department of Public Works, Swiss Agency for Development and

Cooperation and Green Building Council of SA are partnering on Building

Energy Efficiency and EE Monitoring

Departments of Public Enterprise, Economic Development, and Trade and

Industry are partnering on renewable energy technologies.

DoE is partnering with DEA and UNIDO (Donor) on Greening the COP 17

programme: The roll of Solar Water Heating programme in 20 clinics within

eThekhwini Municipality. UNDP has been appointed as the implementing

agent for the roll out.

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Greening COP 17: SWH Programme for Clinics

The aim of the project is to promote local economic and social development

in the host region and;

To showcase during COP 17 the initiatives of energy poverty alleviation

through rolling out Solar Water Heating programme to 20 identified clinics

The project is being implemented in three areas as follows:

Illempe in Groutville, 17 clinics

Hilton in Pietermaritzburg, 1 clinins and

Hill Crest in Durban, 2 clinics

Consultants have been appointed and work has commenced and will be

concluded before COP

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Greening COP 17: SWH Programme for Clinics

The Illembe areas has been identified for High Level side visit is scheduled

for 8 December 2011

The project will be launched by President Zuma and UN general Secretary

Ban ki-Moon, and the Minister of Energy in partnership with DEA and

UNIDO Director General

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NO ACTIVITY PROGRESS

1 Submission of 3 UNFCCC Side Events 2 Identification and submission of flagship/legacy

projects to DEA and IMC3 List of energy thematic panel discussions 4 Energy Sector COP17/CMP7 Side Event Programme

5 Invitations, speakers and moderators for energy seminar sessions

6 DoE Delegation and Accreditation

Summary and Progress of events

Green: Work completed; Yellow/Amber: Work in Progress and Red: Work within critical path and urgent

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NO ACTIVITY PROGRESS7 Exhibition space and seminar rooms

8 Energy Sector COP17/CMP7 Communications Strategy

9 Energy Sector Outreach Events, Media Briefing, etc

10 Translation – translators, booths, audio

11 Side event and exhibition signage

12 Exhibition design and materials

Summary of Progress

Green: Work completed; Yellow/Amber: Work in Progress and Red: Work within critical path and

urgent 39

Key Linkages with Other Projects: Best Practices

Provision of clean energy through Witsand iEEECO Human Settlement

Development Model, in Low income household in Cape Town

Implementation of green economic development through clean energy

intervention in domestic sector in partnership with Economic Development

Department

DoE is also working with other stakeholders the Implementation of South

African Renewable Energy Initiatives (SARi), Industrial Energy Efficiency (IEE)

and Clean Technology Competition in partnership with Trade and Industry

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Key Linkages with Other Projects: Draft National Climate Change White Paper Policy

The Department of Environmental Affairs is currently consulting on the draft

National Climate Change White Paper Policy which is expected to be launched

the COP 17.

Energy remains core contributor into the draft National Climate Change White

Paper policy due to emissions reductions.

The following are some of the comments are forwarded for consideration on

the draft paper before its finalisation/approval:

To disaggregate all the sectors and subsectors in accordance with the

Copenhagen pledges (i.e. 34% by 2020 and 42% by 2025).

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The disaggregation will give us a comprehensive picture for the whole

sector and delineation of roles and responsibilities, development of plans

and strategies, resource allocation, executing specific programmes and

set timeframes in terms of aligning the Copenhagen target to the

disaggregated sector targets not excluding proper monitoring and

evaluation how the energy sector is performing in totality.

The cost of meeting the proposed target versus the deliverables /outputs to

be clearly outlined in order to answer the “SMART” principle during the

implementation of the White Paper.

42


The policy to consider the socio-economic impact assessment (e.g. to make

sure that the service providers do not pass the cost of mitigation to the

consumers), particularly on of the analysis on economic wide impacts. Cost

benefit analysis will inform the ultimate decision while allowing us to protect

the consumers as the end users without putting a financial strain on them.

The policy to be implemented starting with the existing flagship programmes

which are already addressing climate change. For example: Integrated Resource

Plan, Independent Power Producers (IPPs) procurement programme, Energy

Efficiency and Demand Side Management, Working for Energy, etc.

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Recommendations

It is recommended that the Select Committee on Economic Development

notes the following:

Progress made on the COP 17 / CMP 7 preparations as a sector

department, partnership with other stakeholders

Final Declaration made at the Africa Energy Ministers Conference held on

15-16 September 2011

Draft programme for the Energy Side events

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cop17/cmp7 energy sector progress report to the select committee on economic development 18 october...

Documents

department of energy

energy security

energy poverty

modern energy

energy sources

sustainable energy access

energy sector work plan

attached draft energy