Building the enabling framework for sustainable energy in the province

1. Building the enabling framework for sustainable energy in the province Leila Mahomed Sustainable Energy Africa June 2005

2. Outline • Necessary Shifts • Recommended Building Blocks • Possible Programmes, Projects, Actions, Targets

3. 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

4. Shifting to a sustainable energy path- the basics

5. Shifting the Provincial Energy Future Where do we want to be by 2020? Transition Strategy How are we going to get there? Where we are now in 2005? WHY? OUR UNIQUE ADVANTAGE • 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 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 Energy Leadership, security, delivery RE: 25% 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

6. 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

7. 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

8. Projects in pipeline – in need of guidance or support and coordination • 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 • 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 • Natural Gas • Atlantis – 1000 MW OCGT: Tender process under way – DME – 78 bidders • Saldanha – 400 MW CCGT – private consortium DEADPfacilitation, policy, strategy, fiscal incentives • Transport- cleaner fuels • Hydrogen – vehicles fitting – W.Cape pilot by 2007 • LPG – pilot under way with Taxis, municipal fleets – Kulani Africa Gas • Conventional Generation • PBMR – 2015????? • Athlone refurbishment – CCT?

9. Building Blocks Building capacity & skills and information - dealing with information barriers Providing communication, awareness raising and training / skills developmentinitiatives within all spheres of community (domestic, commercial and industrial) and government Improving the availability of background information and datafor policy-makers R&D based on local realities Participation of stakeholders in decision making Use demonstration to teach but roll out successes soon

10. 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

11. 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, measurabletargets 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 ProvincialSpatial 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

12. 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.

13. Actions – organising govt Department of Minerals & Energy 1 2 • Advisory & reference support from • Key local, regional, national, international people • Advise on content issues of the energy strategy Environment A&D Planning • Stakeholder Groups • Eskom • EDI Holdings • Business • Labour • International groups & partners • NGO’s & civil society Transport & Public Works Steering Committee Housing & Local government Economic A&T Health Municipalities – Eden, Beaufort W, Saldanha, Cape Town Energy Steering Committee

14. 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

15. 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 gasand 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

16. 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.