Speech by Ms BP Sonjica, Minister of Minerals and Energy at PetroSA biogas to Electricity Project launch

Programme Director,
Honourable Minister,
Distinguished guests,
Captains of industry,
Senior government officials,
Ladies and gentlemen

I derive great pleasure in launching the PetroSA biogas to electricity project developed and implemented by METHCAP SPVI (Pty) Ltd today. This is the second project to benefit from the renewable energy subsidy scheme that we are providing to renewable energy projects since the scheme was established in 2005.

One of the most important pre-occupations for many governments around the world is energy security. Renewable energy will significantly contribute to energy supply security by increasing diversification of energy resources, promoting access to energy, services and contributing to sustainable development through the optimum use of cleaner energy resources. A number of renewable energy sources and technologies are available in South Africa, but most still need to be developed to their full potential.

We all recognise the need to diversify energy supply by developing advanced non-polluting, more efficient, affordable and cost-effective energy technologies, to meet the rising global demand for energy, particularly in developing countries. When looking at these alternative energy sources, an increasing number of countries, including South Africa recognise the role that renewable energy can play in the reduction of Greenhouse Gas Emissions.

The Renewable Energy Policy White Paper sets out a specific target of 10 000 GigaWatt hours (GWH) by 2013 for the contribution of renewable energy into the national energy system. This target can only be achieved through the appropriate development of renewable energy technology and the PetroSA biogas to electricity is one those projects that will contribute to the achievement of the target. We recognise that there are barriers that could hamper the achievement of the renewable energy target and many of you would be aware that one of these barriers is high capital costs associated with renewable energy technologies.

We have however, developed a number of policy initiatives and financing projects in order to get the best possible renewable energy mix for South Africa. Some of the initiatives include the Renewable Energy Finance and Subsidy Scheme which contributed significantly to the successful implementation of the PetroSA biogas to electricity project we are launching today. Other initiatives include the Tradable Renewable Energy Certificates System the department is establishing, the Wind Energy Generation studies which we are undertaking, the Green Power Trading investigations and the Darling Wind Farm pilot project. We believe that all these initiatives will contribute to the establishment of a viable renewable energy industry.

The launch today of the PetroSA biogas to electricity project indicates that the implementation of renewable energy in South Africa is not just a fantasy from government but it is actually doable. The PetroSA biogas to electricity together with the programmes we have established will certainly ensure that renewable energy contribution towards the total energy mix is increased. It is important that we see this project as a catalyst for the development of other renewable energy projects in the country.

We can use the success of this project for the long term benefit of our country. The PetroSA biogas to electricity project is a practical example of the application of renewable energy technologies in our country, and it demonstrates how bringing different inputs and infrastructure can stimulate development of a viable renewable energy industry.

Programme Director, before I conclude, I would like to thank METHCAP SPVI (Pty) Limited for their ongoing commitment to the development and implementation of this project. I would also like to thank PetroSA for welcoming the proposal from METHCAP Company to have the project implemented in their location and agreeing to buy the power that will be produced.

To conclude, Programme Director, as we respond to the Renewable Energy White Paper of 2003 which clearly states that by 2013, renewable energy should contribute 10 000 GWh to the national energy system, the Department Minerals and Energy will continue to partner with project developers like METHCAP to successfully implement renewable energy projects in the country and we will also continue investigating and implementing initiatives that will ensure that we achieve our renewable energy target.

I thank you.

Issued by: Department Minerals and Energy
28 September 2007