GREENPEACE PRESENTATION TO NERSA PUBLIC HEARING INTO ESKOM TARIFF INCREASE 21 st January 2010 Nkopane Maphiri , Greenpeace Africa Jay Rutovitz , Institute for Sustainable Futures, University of Technology, Sydney. Broad areas to be covered Brief introduction to Greenpeace Africa
GREENPEACE PRESENTATION TO NERSA PUBLIC HEARING INTO ESKOM TARIFF INCREASE
21st January 2010
NkopaneMaphiri, Greenpeace Africa
Jay Rutovitz, Institute for Sustainable Futures, University of Technology, Sydney
Greenpeace exists because this fragile earth deserves a voice. It needs solutions. It needs change. It needs action.
South Africa is among the 15 countries with the highest CO2 emissions in the world. Greenpeace and the European Renewable Energy Council (EREC) have published the Energy [R]evolution, a low carbon energy scenario which would allow SA to:
Create jobs, and
Maintain sustainable economic development without fuelling catastrophic climate change.
The Reference scenario is “Business as Usual”, and is the International Energy Agency 2007 projection.
Renewable energy could provide up to 75% of SA’s electricity by 2050.
Investing in renewable technologies and energy efficiency would reduce CO2 emissions in 2050 by 328 million tons per year.
Renewable energy is mature, ready and can be deployed on a large scale within 2 years or less. Proactive investment in renewable power and energy efficiency would mean:
A more diverse energy mix would decrease SA’s
dependency on a single energy source (coal), thereby
increasing energy security.
Energy efficiency is absolutely critical - it offers the simplest, easiest and most cost effective way to reduce greenhouse gas emissions and costs.
Coal and nuclear power need to be phased out.
Given the importance of securing energy jobs, and encouraging a just transition to green jobs, Greenpeace Africa commissioned the Energy [R]evolution jobs study which illustrates the benefits of moving towards clean energy and securing South Africa’s future as a champion for change.
The Institute for Sustainable Futures (ISF), University of Technology Sydney, analysed the employment effects of the SA Energy [R]evolution for Greenpeace Africa.
Electricity sector jobs only.
Direct jobs only (does not include jobs in accommodation, catering, or from spending wages).
We included one scenario with enhanced renewable manufacturing and export to rest of Africa.
ISF also did analysis for global Energy [R]evolution.
Employment factors (jobs per MW)
SA factors where possible, otherwise OECD factors + multiplier.
Adjustment for cost decline.
Energy efficiency job factor (only for the reduction in electricity consumption)
Includes a proportion of energy efficiency achieved by solar water heating
Construction jobs per MW capacity increase
O&M jobs per MW installed
Fuel jobs per GWh
For coal this means coal mining jobs per GWh
Local SA factors for
Coal, nuclear and hydro generation O&M
Solar water heating
Labour intensity tends to be higher in countries with lower GDP per capita.
One method: multiply OECD factors by the ratio of labour productivity* in SA to labour productivity in the OECD. This would mean multiplying by 4.6.
We used the weighted average of the ratio between local factors and OECD employment factors, which is 1.8.
* GDP per person employed
Additional 26,300 jobs
Additional 22,000 jobs in renewable export
147,400 in total, 45% more than in the Reference scenario
The Energy [R]evolution scenario creates 64,000 new jobs in renewable energy between 2010 and 2030.
In electricity supply, the [R]evolution scenario creates 46,000 new jobs by 2030, compared to 29,000 in the Reference scenario.
There are 123,000 energy sector jobs by 2030 in the [R]evolution scenario, 20% more than the Reference scenario.
In principle, Greenpeace Africa is not opposed to energy price increases, provided there are provisions to protect low income consumers.
However, Greenpeace Africa does oppose the tariff increase application made by Eskom as it stands. Instead, the proposed tariff increase MUST encapsulate the following principles:
There is no doubt that South Africa’s energy costs are amongst the cheapest in the world, and there is a justifiable reason for predictable tariff hikes.
The energy price increase together with new policies and incentives should enable Eskom and the private sector to invest in renewable energy, stimulate the local renewable manufacturing industry, create 64,000 green jobs by 2030 and place South Africa in the enviable position of having the foresight to switch over to renewables and become a leading exporter into the new African market for renewables.
This fragile earth deserves a voice. It needs solutions. It needs change. It needs action.