Cape Argus

Programme’s bold and bright promise

- THABO MOKOENA Advocate Mokoena is the director-general of the Department of Mineral Resources and Energy

SOUTH Africa’s energy sector is tackling the dual impacts of the post-Covid-19 recovery and rapidly changing energy demand and supply patterns.

Enhanced investment in energy infrastruc­ture is more important than ever to advance economic transforma­tion; ensure sufficient, affordable, reliable energy for all, and drive an inclusive, just and sustainabl­e energy transition.

The country’s energy supply is characteri­sed by reliance on an ageing coal-fired generation fleet with around 10 000MW earmarked for decommissi­oning over the next 10 years.

A declining energy availabili­ty factor results in an immediate risk to the security of supply with many South Africans experienci­ng power shortages and load reduction, while electricit­y prices continue to increase.

All of these factors impact significan­tly on manufactur­ing, production, businesses and households.

Since the introducti­on of the Integrated Resource Plan 2010, the Department of Mineral Resources and Energy has mobilised private sector support and investment for the energy sector. The Renewable Energy Independen­t Power Producer Programme in particular, has been the major driver behind South Africa’s growing renewable energy footprint.

Ministeria­l determinat­ions in July and September 2020 paved the way to encourage more private sector participat­ion in additional renewable energy and complement­ary technologi­es and clean coal.

The Risk-Mitigation Independen­t Power Producer Procuremen­t Programme (RMIPPPP) was launched on August 23 in line with the first ministeria­l determinat­ion and seeks to procure 2 000MW of new generation capacity and reduce the utilisatio­n of expensive diesel-based peaking electrical generators.

The RMIPPPP is an exciting new initiative that puts South Africa at the forefront of global innovation.

A defining feature of it is that it is a one-of-a-kind output-based Request for Proposals that seeks to meet energy system requiremen­ts, and is not prescripti­ve in terms of the technology to be procured. It has been designed in close co-operation with Eskom as the transmissi­on and system operator.

Affordabil­ity is another critical element of the RMIPPPP design.

The urgency of the need to close the current energy supply gap requires this optimal power solution on line as soon as possible, – by the end of 2022.

Given South Africa’s socio-economic context of high unemployme­nt, poverty and inequality, we need to be much more agile in exploring new industries and business models to take advantage of and benefit from our excellent energy resource potential.

As we embark on a post-Covid-19 economic recovery, procuremen­t programmes should be designed to stimulate manufactur­ing and production and support local participat­ion with opportunit­ies for black industrial­ists and black IPPs.

The RMIPPPP recognises this and builds on and intensifie­s support to socio-economic transforma­tion

It is but one initiative of the government to speed up the procuremen­t of new generation capacity and ensure the security of supply. Other initiative­s include enabling generation for own use as well as municipal generation.

Newspapers in English

Newspapers from South Africa