ENERGY INDABA

Energy Indaba Report

Renewable Energy and Energy Efficiency Commission

Gallagher Estate

7 – 8 December 2017

Energy Indaba 2

Presentation Outline

• The Role of Renewable Energy and Energy Efficiency in the South Africa Energy Mix

• Opportunities across the value chain of Renewable Energy • Local, regional and global opportunities for Renewable Energy • Constraints to unlock penetration of renewable energy and energy efficiency

technologies a. Policy b. Skills c. Environmental issues d. Infrastructure e. Funding f. Current and emerging technologies

• Renewable Energy contribution to inclusive growth • Renewable Energy contribution to Transformation • Energy efficiency • Recommended solutions • Conclusion

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The role of Renewable Energy in the South Africa Energy Mix

• Contribute to clean energy generation

• Contribute to baseload power generation

• Local Industry development

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Opportunities across the value chain of Renewable Energy

• Job creation – to date over 35 000 jobs have been created by REIPPPP

• Technology

• Manufacturing sector

• SA equity acquisition

• promote and implement black Industrial/Industrialists

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Local, regional and global opportunities for renewable energy

• Domestic

– Northern Cape

– Western Cape

– Eastern Cape

• SADC

• Global exports

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Constraints to unlock penetration of Renewable Energy

Policy

• Requires clarity on renewables allocation in IRP

• Clarity on utility scale, embedded generation etc

• Clarity on 1-10MW generation licensing

• Better system to sign off projects, deviations etc

• Prioritization of women empowerment and skills development

• One stop shop for Renewable development

• Stability of Energy Ministry

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Constraints to unlock

penetration of renewable energy

Policy

• MW generation rather than the technology options in order to meet the required baseload and supply requirements

• Gaps in localisation which is limiting industrialisation. Creation of emerging and small business.

• Technology neutrality

• Grid access

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Constraints to unlock

penetration of Renewable energy

Skills • Training/skills development funding for accredited

training • Limited correctly skilled workers available • No audit and verification unit for skills development • Unlocking of skills funding from Energy/Water SETAs • New projects to provide job opportunities to skilled

resources from previous rounds • Clarity on skills/certificates/qualifications • Financial skills to unskilled/semi-skilled resources Energy Indaba 9

Constraints to unlock

penetration of renewable energy

Environmental issues

• Complexities

• Planning in various departments to be done

• Reduction of red tape in environmental permitting

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Constraints to unlock

penetration of renewable energy

Infrastructure

• Grid stability

• Grid access

• Grid access cost

• Eskom monopoly

• Better ways of wheeling at cost effective rates

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Constraints to unlock

penetration of renewable energy

Funding

• How to make funding affordable to black participants

• Cost of funding – quite high

• Limited models of funding

• Clarity on enterprise development and access to market.

• Exempting small scale projects on other requirements such as guarantees, etc.

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Constraints to unlock

penetration of renewable energy

Current and emerging technologies

• There needs to be independence of selection of technology

• IRP not taking account emerging technology i.e energy storage for PV and Wind

• Limited funding for research and development of new renewables technologies specific to South Africa.

• Integration of old and new technologies Energy Indaba 13

Renewable energy contribution to inclusive growth and transformation

• Policy Framework caters for this, we just need to – Roll out of projects

– Find solutions to funding constraints

• Increase black industrialisation participation

• Technical and transformation performance measurement and monitoring

• Working group of private and public sector

• Growth of communities

• Over 1200MW of potential projects

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Energy Efficiency

• Requirement for robust regulatory framework on energy efficiencies

• Continue energy efficiency incentives with monitoring

• Prioritise electrification of transportation – conversion from petrol to electric vehicles

• Role of energy storage in renewables

• Private sector needs to assist organs of states to improve energy efficiency

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Recommended resolutions and Conclusion

• Bring finality to Bid windows 3.5, 4 and other programmes (small renewables, off grid)

• Clarity on outcome of IRP and IEP • Continuous/proper communication between

programmes • Cabinet approved IRP – out come to be seen once

published • Requesting government to become more decisive and

efficient in decision making and policy development • Have DOE and Department and Water to work much

closely

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Recommended resolutions and Conclusion

• Establish Renewable Energy Development Zones (REDZ)

• Consider incentives in deploying REDZ in mining areas, residential and commercials areas

• New business model for Eskom – – Consider Eskom to focus on grid management and

development – Consider not having Eskom as the only buyer in South

Africa

• Let's get on with renewables to help develop the SA economy as part of the energy mix

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THANK YOU

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