Post on 23-Aug-2020
Energy Summit: Defining the Energy Future of Local Government
7thto9thMarch2018
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Background
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Background of Energy Summit
• SALGAishostingasummitthewillbetakingplaceattheSandtonConventionCentreonthe7thto9thMarch2018
• Thesummitwillbefocusingtheproblemsassociatedwiththecurrentbusinessmodelasaresultofthefollowingchanges:– Stagnantorevendecliningelectricityconsumption– Energysecuritythreatsandincreasingelectricityprices,associatedwith
decreasingtechnologycostsandincreasingproductquality– Increasedinterestinenergyefficiencyandrenewableenergytechnologies,– Growinginterestinself-generationofelectricitythroughrenewable
technologiessuchassolarphotovoltaicsystems– LackofAffordabilityasaresultofincreasingelectricitycosts– TheftandNon-Payment– RenewableResourcesandEnergyEfficiency– BusinessOpportunities
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Background of Energy Summit
• Theelectricityindustrycouldsoonbefacingitsmostdisruptiveperiodofchangesincethecommercializationofelectricityinthe19thcentury.
• Thetimeisripeforsignificanttransformationbecausethepotentialfordramaticdisruptiontotheexistingelectricityoperatingmodeliscomingnotfromonedirection,
• It’scomingfromarangeoffactorssuchasdemand,technology,regulation,newproducts,andnewcompetitors,
• InfrastructureMaintenanceBacklog(BothEskomandMunicipalities)• Thefinancialsustainabilityofmunicipalitiesisthreatenedwhichresultsinto:
– anincreaseintheEskomdebt,whichinturnnegativelyaffecttheenergysystemand
– alsonegativelyaffectingservicedelivery
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HowtheSystemischanging
Decentralisation
• Trendofselfgenerationbycustomers• Trendofdecentralisinggenerationintosmallscalegeneration
Democratisation
• Democratisationoftheenergysystem• Co-owningenergyassetsscalingupcommunityinvolvementingeneration
Digitisation
• Emergenceoftechnology• Emergenceofdigitalenergyconsumption
Decarbonisation
• Consumerbehaviourshiftsincleanenergy• Increasingclimaterisk
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Purpose
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Toexamine the current energy landscape and todefine theenergyfutureroleforLocalGovernment
PurposeoftheEnergySummit
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Objectives
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Specific Objectives of the Energy Summit
• Tounderstandhowthetransitionmanifestseconomically,legally,financiallyandinstitutionallyforLocalGovernment
• Topursueconsensusofthepoliticalleadershipintheenergysectortoagreethatchangeisnecessary
• ToexaminethepossiblescenariosforSouthAfricanEnergysectorandtodefineanidealFutureLocalGovernmentUtility
• Todevelopanddefineaframeworkonthecountrycompactfortheenergysector
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ProgrammeOverview
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Overview of Programme
Day1 OfficialOpening
WelcomingfromaddressfromthePresidentandMinisters
CeremonialSpeeches
Day2 Session1:FivePresentations
Session2:PanelDiscussion
Session3:FiveFacilitatedBreakawaySessions
Day3 Session4:ReviewofBreakawaySessions
SummitDeclaration
ClosingofSummit
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Themes
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OverallEnergySummitThemes
Energy Summit Themes
Megatrends in the Energy
Sector
Future models and Policy
Implications Energy
Economics
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Theme1:MegatrendsintheEnergySpace
AreasofDiscussion
§ Majortrendsorlikelydiscontinuitiesaffectingtheenergysectoroverthenextfivetotenyears?
§ Willchangebedrivenbythemarket,orbypolicy?OrConsumers
§ KeyInternationalEnergyTrends§ TrendsintheSouthAfricanEnergysector§ ChangesinthesystemsuchasDecentralisation,Democratisation,
DigitisationandDecarbonisation
§ ImplicationsofEmbracingorResistingChange
§ OpportunitiesforradicalnewbusinessmodelsforallPlayers
Outcomes
§ AsharedunderstandingofthenatureandextentofMegatrendsintheSouthAfricanEnergysector
§ Reflectionontrendsinpowergeneration,theriseofdecentralisedpower,theblurringlinebetweentheenergyproducerandenergyconsumer
§ PossibleScenarios
Speakers
§ LocalEnergyExperts§ InternationalEnergyExpert
Objective:ReflectonthekeymegatrendsoccurringintheEnergyspacebothNationallyandInternationally
ProblemStatement
§ NumeroustrendsarechallengingtheSouthAfricanEnergylandscape,threateningthesustainabilitytheElectricitySupplyEnergy
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Theme2:EnergyEconomics
AreasofDiscussion
§ ThefuturerealitiesandinnovationstostrengthenMunicipalRevenue“exploreothersourcesofincomeandensurerevenuesustainability”
§ AssetManagement“Howtosweattheassetsandprocuremaintenanceresources”
§ FinancingInstrumentsandMechanisms(EnergyInfrastructure)
§ EnergyTechnology,SystemsandRevenuemodelling
§ ElasticityofSupplyandDemandinEnergyMarket
§ EnergyForecasting§ ElectricityAffordability§ OpportunitiesforradicalnewbusinessmodelsforallPlayers
§ ConsiderationsoftheDeathSpiral§ InputCostsandWheelingCosts
§ Costofenergyandmacro-economicbenefitsofdifferentenergyfuturescenarios
Outcomes
§ Optionsonmunicipalrevenuestreams
§ ProposedFinancinginstrumentsandMechanisms
§ ProposedInnovationsonAssetManagement
Speakers
§ LocalEnergyExperts§ InternationalEnergyExpert
Objective:ToexploreopportunitiesshapingEnergyEconomics
ProblemStatement
§ Municipalrevenuesaredecliningduetounaffordability,technologyandsloweconomicgrowthwhichinturnnegativelyimpactingservice
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Theme3:FutureModelsandPolicyImplications
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AreasofDiscussion
§ Examinethecurrentlegislativeandpolicycontextshapingtheenergysystem
§ Currentconstraintsandweaknessesofthelegislativeframeworkintheenergyspace
§ Opportunitiesforenhancementsinthelegalframeworktocreateanenablingenvironmentforenergytransitions
§ InternationalBestPracticeintheenhancementsofthelegislativeframework
§ EnergyPlanningPolicy:nationalenergyplanningandlocalgovernmentenergyplanning
Outcomes
§ Identifiedconstraintsandopportunitiesofthelegalframework
§ RecommendationsonLegalFrameworkenhancements
Speakers
§ LocalEnergyExperts§ InternationalEnergyExpert
ProblemStatement
§ Thecurrentlegislativepoliciesareconstrainingmunicipalitiesfrompursuinginnovativeanddevelopmentsolutionsintheenergyspace
Objective:ExaminekeyopportunitiesandconstraintsintheLegislativeFrameworkoftheEnergySpace
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PostEnergySummit:PolicyShift
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EnergySummitApproach
PolicyShift
EnergySummit
EnergyReferenceGroup
DoEEngagements
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EnergyReferenceGroup
• Themain objectives of the ReferenceGroup is to strategize on thecontentoftheEnergySummit
• It will involve energy experts, private sectors, relevant nationalgovernmentandEskomandothersthatwillengageonthefollowing:o FinalisationoftheEnergySummitAgendao FinalisationofKeySpeakerso FinalisationoftheEnergySummitProgrammeo FinalisationoftheContentandstepstobetakenposttheEnergy
Summit
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PostEnergySummitActivities
• PostEnergySummitReportwithanActionPlanforlobbying(IRPandothers)andengageonWork-streamorRoundtable.
• PosttheenergysummitworkwillbedonewiththeDoEandotherkeystakeholders topropose innovative frameworksof policy, legislativeandinstitutionalchangesthatwillenableSouthAfricatoadapttothedisruptionsintheenergyspace.
• ThepropositionswillpresenttheproposalsnecessaryforPolicyShiftsthat will be aligned to the changing environment in the energysector.
• The propositions will also examine possible short term LGopportunities
• Other:AnnualEnergySummitSALGA/DoEMoU
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Thank You