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Social partners will have say on future energy mix – Presidency

9th December 2009

By: Terence Creamer
Creamer Media Editor

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South Africa's social partners would be given an opportunity to provide input into the country's integrated resource plan (IRP), which would define the extent of diversification and private-sector involvement in South Africa's power generation system for the next 20 years, Minister in the Presidency Responsible for the National Planning Commission Trevor Manuel said on Tuesday.

He added that efforts would also be made to align South Africa's future energy mix to the country's recently announced commitment to curtail the growth of greenhouse gas (GHG) emissions, under government's "peak, plateau, decline" climate response plan.

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The Department of Energy (DoE) released the first IRP in early December, covering the period from 2010 to 2013. It was immediately criticised for lacking of ambition in redefining South Africa energy mix beyond Eskom and beyond coal as the dominant form of primary energy. The lack of consultation around the formulation of IRP1 was also roundly condemned.

But the DoE promised to initiate a process of consultation in early 2010 to come up with an IRP2 by June, which would detail how South Africa planned to secure its energy future, while curtailing emissions and creating space of private power generation.

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This was immediately followed by President Jacob Zuma's release of a country plan to curb the GHG emissions growth by 34% by 2010 against the current emission baseline and by around 42% by 2025. However, the plan hinged materially on South Africa's ability to garner international financial backing for its interventions.

Speaking at the Union Buildings following the conclusion of the first Electricity Advisory Council meeting since South Africa's national elections in April, Manuel promised that the social partners would have an opportunity to influence the IRP.

"I think what all sectors are saying is that the IRP must actually be on the table," Manuel said, adding that it was also agreed that South Africa should take a longer and more integrated view on how to meet its energy security needs, together with its carbon commitments.

He stressed that, while government would have the final say on the country's choice of future energy mix, it would be done with the involvement of business, labour and civil society and would also seek to create space for private sector involvement in power supply.

In fact, the council argued that the creation of a "nonconflicted" independent system and market operator (ISMO) should be prioritised. The ISMO would be the agency mandated to contract with independent power producers (IPPs), rather than Eskom, which was currently the designated single buyer of IPP power.

"We will get a better alignment in the messages between Copenhagen and the IRP and the Eskom price determination," Manuel averred, adding that the council would meet again within the next three months.

The subcommittee structures, under the National Electricity Response Team, would meet more frequently, while the so-called ‘energy champions', which included individuals such as rugby star Bryan Habana, would be taking on a higher profile.

 

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