Monthly Archives: August 2016

SA Minister Quizzed on Missing Nuclear Documents

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Energy Minister, Tina Joemat-Pettersson will be asked in Parliament next week to account for missing documents in a court case regarding the nuclear energy programme. That is according to Democratic Alliance (DA) MP and shadow energy minister Gordon Mackay on Thursday, who sits on the energy portfolio committee in Parliament.

nuclear

He was responding to a claim on Thursday that government failed to disclose about 10 documents in justifying its decision to enter into an intergovernmental agreement with Russia. The claim was made by Southern African Faith Communities’ Environment Institute (Safcei) and Earthlife Africa Johannesburg (ELA), who are challenging government in court to prove this nuclear agreement was not in fact a done deal.

Government wants to build about eight nuclear reactors to add 9.6GW of baseload energy in its drive to boost industrialisation in South Africa. However, many economists and pro-renewable energy advocates believe it is too expensive and unnecessary for South Africa, with some suggesting it would result in rating agencies downgrading the country to junk status.

“Parliamentary committees recommence next week and the DA will be asking the minister to account for the missing documents,” Mackay told Fin24.

“The DA remains deeply perturbed by the state’s lack of compliance in this case,” he said. ELA’s Dominque Doyle said government continues to promise a fair and accountable process of nuclear procurement, but its deeds do not live up to its promises.

“We need answers,” said Doyle. “Parliament should hold government accountable in a transparent manner.”
“Getting information out of government has been like pulling teeth,” said Safcei spokesperson Liz McDaid. “The case has been drawn out since October 2015, with government reluctant to provide the information necessary for a fair hearing.”

[source: http://bit.ly/2bNP8QU]

Global Energy Firm Quits SA Over ‘Wavering’ Government

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One of the world’s biggest solar technology companies is closing its Cape Town factory due to what it terms the government’s lack of commitment to green energy.

German manufacturer SMA Solar Technology has also taken a swipe at Eskom for “shocking statements” about the independent power producer programme, which has effectively been shelved by Eskom CEO Brian Molefe.

The factory closure is a major blow to various local initiatives to promote green energy, particularly in the Western Cape, which is setting up a green technology special economic zone.

Ironically the factory to be closed was officially opened by Deputy Minister of Trade and Industry Mzwandile Masina. The DTI now stands accused of paying lip service to growing the green economy.

News of the closure prompted harsh words yesterday from Economic Opportunities MEC Alan Winde who has been championing a provincial green energy hub.

In a strongly worded letter to Trade and Industry Minister Rob Davies, SMA yesterday slammed the government’s lack of commitment to their renewable energy independent power producer procurement programme (REIPP).

“SMA and its shareholders fail to see a commitment from the South African government to create a sustainable business environment and promote foreign direct investment,” said Thorsten Ronge, general manager of SMA’s sub-Sahara division.

 

cape

“Wavering support for the renewable industry . and REIPP initiatives, recent shocking Eskom statements pertaining to the off-take of renewable energy and a local content policy with many loopholes utilised by competitors in the bidding process (for energy generation projects) do not contribute to a sustainable, predictable business environment and justifying costs for a factory in South Africa,” he said.

The procurement programme was set up in 2010 by the Department of Energy, the Treasury and the Development Bank of Southern Africa to stimulate the growth of a green energy industry, which could supplement Eskom’s faltering supply.

A key aspect of the programme is the signing of power purchase agreements aimed at attracting investors by enhancing project “bankability”.

Eskom claims the purchase agreements increase the cost of power and are a financial drain.

Eskom last month sent shock waves through the local market when it announced it would no longer sign power purchase agreements with independent power producers, despite several major projects in the pipeline.

The decision was all the more surprising given that the renewable energy programme has attracted R193bn in private investment in five years, and has been hailed as a major success.

However the programme does not enjoy the support of Molefe, who has regularly expressed reservations – including his belief that the programme would force Eskom to buy obsolete renewable technology.

“We will be like somebody who has an old phone, while everybody else has an iPhone,” he was quoted as saying.

Responding to The Times queries on Thursday, SMA said it would transfer its South African production to Germany and China “in order to increase the utilisation of the existing plants”.

“SMA must adapt to new market conditions and consolidate the production capabilities to optimise the cost structure,” the company said in a statement.

The Cape Town facility employs eight full-time staff, but the company will retain a sales and service team.

SMA Solar Technology claims to be the global market leader for solar inverters, with subsidiaries in 20 countries. Recently it was reported the SMA Group’s sales increased by 15.1% to à494.1-million year on year.

Winde told The Times the move was “a big blow” to South Africa’s green energy brand.

“These are global leaders, and when they are making these kinds of decisions it affects our brand.”

He said Molefe’s stance on independent power producers contradicted the government’s national development plan, thereby creating business uncertainty.

“We want to create manufacturing capability and we know that we need to be competitive in the energy space, but we are not facilitating it properly,” Winde said.

Eskom spokesperson Khulu Phasiwe said Molefe’s stance on renewable energy had been misconstrued, and that the Department of Energy and Eskom were fully committed to renewable energy as per the government’s roll-out plan. Eskom had signed with 64 independent power producers, who were already adding 2145MW of power to the national grid.

“There has been a lot of . misunderstanding about what Brian Molefe has been saying about renewable energy,” Phasiwe said. He said Molefe had merely indicated he was eager to conduct further research on renewable energy to see if it could be stored more efficiently. DTI spokesman Sidwell Medupe could not be reached for comment on Thursday.

[source:  http://bit.ly/2bBUGSu]

UK to Back South African Energy Sector

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UK’s government funding scheme for southern Africa, the Foreign and Commonwealth Office’s programme, intends to assist in the South African energy sector’s development.

According to a media statement, the policy goals of the Foreign and Commonwealth Office (FCO) seek to create real, measurable outcomes through the provision of funds, a sum of which will assist in boosting the South African energy sector.

The UK government has in its 2015 review budget announced a £1.3 billion ($168 billion) Prosperity Fund over the next five years to promote the economic reform and development needed for growth in partner countries.

“Our priorities will include improving the business climate, competitiveness and operation of markets, energy and financial sector reform, and increasing the ability of partner countries to tackle corruption,” the FCO stated.

The Prosperity Fund is said will contribute towards meeting the new Sustainable Development Goals.

SME creation in South African energy sector

In South Africa, the funding will be targeted at supporting eight renewable energy projects that will see the introduction of an innovative small-scale waste-to-energy technology and business model, working with the waste transformers.

The project is meant to open the power generation market to small businesses, enabling them to operate small-scale waste-to-energy units on a commercial basis.

According to the press statement, the project will lead to the creation of ‘green’ jobs, increased power generation from renewable sources and improved waste management.

Meanwhile, through the FCO financial aid, a carbon trust integrating off-grid solutions will also be introduced to support South Africa’s rural electrification programme.

waste_to_energy

Promotion of rural electrification

The project will support the Department of Energy and public power utility Eskom in determining how off-grid electricity solutions can fit into the country’s electrification programme, with a view to stimulating investment into the sector and accelerating rural electrification and promoting access to energy.

Furthermore, the development of renewable energy projects on mining impacted land and communities by promethium carbon will be promoted.

This will be achieved through rehabilitating former mining land in South Africa by demonstrating a model for community-based renewable energy projects that will also alleviate pressure on South Africa’s electricity grid.

[source:  http://bit.ly/2bPk98x]

Climate Change and Renewable Energy: Where Does Your Favourite Party Stand?

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In light of the catastrophic threats posed by climate change, Greenpeace has analysed the top three political party’s manifesto’s to understand their stance on clean energy, and climate change. The impacts of climate change have already been felt in South Afric over the proceeding eight months with the current drought conditions leading to water scarcity across the country and escalating food costs. Thus political parties stance on energy and their position on climate change is of utmost importance to all South Africans and the country itself.

logo ANC

ANC

The ANC manifesto touches on some key areas in terms of energy and climate change, of particular relevance is one of their key commitments for the next five years which commits to “expanding the electrification programme to the remaining areas and rolling out solar energy in certain areas”. Unfortunately this is the only specific reference to the role out of renewable energy in the ANC manifesto and it is nowhere near ambitious enough. The ANC has also committed to “ensuring that municipalities incorporate science and technology into their programmes as a catalyst for local economic development and that they deploy innovations” which is a welcome sentiment. However, the only example of an innovation given is that of hydrogen fuel cell technology which is obscure as this technology has not been used to any great extent globally and is not proven to develop and strengthen local economies.

Climate change is listed as a separate section in the manifesto which suggests this is an issue the ANC takes seriously. The ANC states that “we shall work together to help all municipalities adapt to changing climatic conditions” and goes on to list the measures they are proposing[1].  However the measures listed read very much like a general policy document and do not provide detailed answers as to the concrete measures required to adapt to and mitigate climate change, nor does the party manifesto mention the role of coal as a major driver of climate change. It is unclear from the information provided whether the ANC has the ability to implement meaningful measures to address or avoid the worst impacts of climate change facing South Africa.

 

logo EFF
EFF
In terms of energy, the EFF’s primary focus is on electricity delivery and its Manifesto specifically states that EFF-run municipalities will increase and sustain their capacity to provide electricity to all households, corporations and public spaces. The EFF aims to achieve 100% electrification of every household within EFF-run municipalities within the 5 years of being in power, and makes the clear statement that they will “aggressively pursue alternative forms of green and clean energy, including solar and wind energy to electrify households and install street lights and robots.” This is a very strong and ambitious statement and is more in line with the kind of language we need from political parties, given the significant opportunities offered by renewable energy. However, more detail is required to fully assess what this would look like in reality. The EFF manifesto does not specifically mention climate change, which is a missed opportunity in terms of explicitly stating how the party would deal with an issue that will impact government and the country at all levels. It is unclear from the information provided whether the EFF has the ability to implement meaningful measures to address or avoid the worst impacts of climate change facing South Africa.

 

logo DA

DA

The DA proposes to ensure the provision of quality services to all their residents through “sound financial management, by adopting innovative solutions to challenges faced, and reprioritising resources to where they are needed most”.  The DA specifically mentions the improvement of the lives of those living in informal settlements by striving to provide off-the-grid and hard-to-reach households with solar and other technologies, such as rain-water harvesting tanks, that can improve standards of living[2].

The DA states that they will lead by example through the provision of energy efficiency plans with targets for official buildings and public spaces. Other interventions that the DA proposes include:

  1. Moving towards the installation of energy efficient lighting, such as LEDs and solar power, in all public spaces;
  2. Setting targets in new low-cost housing developments for the installation of solar water heaters;
  3. Lobbying national government to allow people and businesses to sell their excess wind and solar-generated electricity to the grid for consumption by other users, benefitting both residents and the local economy by ensuring stable electricity; and
  4. Constantly developing innovative and cost-effective ways to manage waste, including investigations into the viability of waste-to electricity initiatives.

The DA does not specifically discuss issues around climate change and how they propose that South African cities or municipalities mitigate and adapt to face the threat of climate change, which is a missed opportunity. It is unclear from the information provided whether the DA has the ability to implement meaningful measures to address or avoid the worst impacts of climate change facing South Africa.

What does all of this mean?

It is interesting to note that all three political parties speak directly to the provision of electricity to all South Africans but only make passing reference to renewable energy. It is therefore unclear as to how any of the parties would provide electricity to all South Africans. None of the parties have taken a clear stand in their manifestos on the other forms of energy currently debated in South Africa, namely coal, nuclear and fracked gas. These issues are of particular relevance at the local government level as these projects would need to be developed within certain municipalities in South Africa. These issues also speak directly to job creation and the type of jobs each party sees as the future for South Africans. It is misleading for parties to pay lip service to renewable energy without addressing any of the other highly debated forms of energy and what future they envisage for South Africa. It is important to note that both the ANC and EFF have strong pro-nuclear aspirations in their National (founding) manifestos. The ANC furthermore has clearly articulated ambitions to exploit the countries coal resources. The National manifesto is the overarching governing document of the party.


[1.]

1. Encouraging all municipalities to work with national departments to embark on research on changing climatic conditions and possible risks to their adaptation and sustainability;

2. Ensuring that municipalities work with national and provincial government in the implementation of climate change mitigation and adaptation measures;

3. Strengthening municipal plans that are aimed at reducing the negative impact of changing environmental conditions and taking advantage of new opportunities that may be presented;

4. Establishing and developing municipal capacity to manage disaster risks that may be presented by changing climate;

5. Introducing innovative technologies and energy sources that are free of harmful emissions such as hydrogen fuel cells, solar power and wind energy;

6. Undertaking youth initiatives as part of municipal efforts to adapt to changing climatic conditions; and

7. Defining the role of communities in municipal efforts to adapt and remain sustainable under changing environmental conditions.

[2.] An example is provided of the Kleinmond Housing Project where efficient building methods were used to construct and provide services to the homes so that they can meet their own energy and water needs through solar water heaters, PV panels, rainwater harvesting tanks and other sustainable technologies. Pilot projects such as the Kleinmond housing project are a good first step but there is no indication in the manifesto as to how this would be rolled out on a larger scale.

[source:  http://bit.ly/2bgKEkP]