PRESENTATION THE SANEDI STRATEGIC PLAN

TO THE PARLIAMENTARY

PORTFOLIO COMMITTEE OF ENERGY

18 April 2013

Contents

Strategic overviewLegislative Mandates Strategic outcomes /Programmes Strategic Outcome orientated goals ProgrammesChallenges Interim Actions Baseline Funding

Strategic Overview Vision To serve as a catalyst for sustainable energy innovation, transformation and technology diffusion in support of SA’s sustainable development that benefits our nation

MissionAdvance innovation of clean energy solutions and rational energy use that effectively supports SA;s national energy objectives and the transition towards a sustainable , low carbon energy future

Values Innovation Integrity Accountability Professionalism Transparency Batho Pele National Interest

Legislative Mandates

Ministerial Directives establishing SANERI/NEEAWhite Paper on Energy Policy, 1998 SANEDI’s mandate is derived from the authority and obligations set out in the following policies, legislation and constitutional requirements :The SA Constitution , (Act 108 of 1996)National Energy Act , (Act 34 of 2008)The following specific plans, directives and public announcements which reinforces SANEDI’s responsibilitiesStrategic Plan of the Department of Energy

Legislative Mandates

National EE Strategy , 2008 Energy Security Master Plan for Liquid Fuels, 2007Energy Security Master Plan, 2007 Integrated Resource Plan for Energy , 2010 DST 10 year innovation Plan M&V guideline for EE certificates

(DRAFT)Carbon capture and storage Road Map

Strategic outcomes /programmes STRATEGIC OUTCOMES PROGRAMMES

All/Crosscutting 1. Corporate governance and administration

Enable well informed and high confidence energy planning, decision-making and support policy* development

2. Applied energy research and demonstration including sub-programmes for: •Advanced fossil fuels including Carbon Capture

and Storage

•Clean Energy Solutions

•Smart Grids

•Green Transport

•Working for Energy

•Data and Knowledge Management

Support accelerated transformation to a less energy and carbon intensive economy

Foster a culture of energy efficiency and more rational energy use

3. Energy efficiency programme

Strategic outcome orientated goals

Strategic outcome orientated goals...cont...

Strategic outcome orientated goals...cont..

Core Parties

Participants

coal

Carbon Capture And Storage (CCS)

SACCCS - Financial Support

South African Government – through the Department of Energy:

– 2013/2014 R 69 million– 2014/2015 R 103 million– 2015/2016 R 35 million

Accessing the £25 million that the UK Government has placed in the World Bank Carbon Capture and Storage Trust Fund

Norwegian Government

South African industry

SACCCS - 2013/14 Work Plan – Critical path

Appoint Project International Advisory CommitteeDevelop basin exploration execution plan including contracting strategy Appoint Engineering/Procurement/Construction contractor Commence public engagement in Zululand and Algoa basins Apply for basin exploration and characterisation in Zululand and Algoa basins Design Zululand and Algoa basin exploration plan Commence seismic exploration of Zululand and Algoa basins

WFE - 2013/14 Work Plan – Critical path

Renewable energy production and utilization for low income communities.Creation of Green Jobs and contribution to the new growth path Skills Development

Various forms of Biomass and Waste to Energy initiatives

Biomass Production value added goods and production of fuel pellets

WFE - 2013/14 Work Plan – Critical path

Establish clean energy, electricity generation and supply facilities within rural communities –economic/social/sustainability benefits Develop and demonstrate the rural application of energy efficiency technologies –economic/social/environmental benefits

Biogas production from Biomass for domestic use.

Food Production and Waste ProductionEnergy efficiency

Smart grids -2013/14 Work Plan –Critical Path

Development of SA smart grid visionCompile current state assessment Technology, governance, service and gap analysis as well as defined solutions Smart Grid Business case Smart grid implementation plan Consolidated smart grid industry guideline

Data/Knowledge Management -2013/14 workplan –critical path

Development of an integrated data repositoryTechnology Management Information Centre Review the strategic direction of CESAR Enhanced access to relevant energy information and knowledge

Green Transport – 2013/14 Workplan – Critical path

Develop a national Green Transport strategic vision and technology development plan Develop a technology development incubation centre to offer “soft start” facilities to companies and technology partners Develop and implement demonstration projects to test proof technology Participate in knowledge clusters locally/internationally Develop substantive public advocacy programme to create market acceptability for alternative fuels and propulsion systems

Renewable Energy Technologies – 2013/14 Workplan – Critical Path

Renewable Energy Centre of Research & Development (RECORD) Projects , pilots and demos Wind Atlas for South Africa (WASA), Mobile waste to energy plant, Algal Biofuels , solar road map, energy efficient house Support to Solar Park International collaboration

Energy Efficiency – 2013/14 Workplan – Critical Path

Support the Income Tax Amendment relating to tax rebate for energy efficiency improvements Energy Efficiency & Demand Side Management Centre of Research & Development (EEDSM)Industry Support National Champion for EE National M & V Centre

Challenges

Funding HR EE Mandate clarification

Challenges /Funding

Following programmes remain unfunded :Green Transport Programme (DoT committed R10m for GTP –has not materialised yet )Working for Energy Programme Energy Efficiency

Challenges/HR

HR Staff complement of 40 11 permanent 75% black representation 53% women representationInternship Programme

Challenges / Energy Efficiency Mandate Clarification

There are a number of conflicting views between:– The requirements/ mandate of the Act.

– NERSA and the recent M-Y-P-D pronouncements.– DoE’s concerns about potential ‘Conflicts of Interest’.

The Energy Efficiency landscape is itself becoming ‘inefficient’:

– Especially in the field of awareness, (49m, Eskom-IDM, Local Authority campaigns, Power Alert, etc.)– Even spreading to the research environment, (DST, Eskom, etc.)

– Average member of the public is becoming confused, (SWH or Heat Pumps, CFL’s or LEDs, etc.)

There is no central co-ordination and/ or measurement of ‘real’ impacts!

Interim Actions

We have agreed with the Senior Management of the DoE, to compile a ‘Position Paper’ on SANEDI’s role in Energy Efficiency:-

– Provide a national ‘Clearing House’ facility to ensure proper integration, co-ordination, performance measurement & consolidated reporting on Energy Efficiency in the country.

– Including the independent performance tracking of the National Energy Efficiency Strategy, Policy/ Regulation impacts (Tax Incentives), Demand-Side Management savings and awareness activities.

– Compile and manage a central repository of Energy Efficiency data for the country

– Possibly extend this to cater for the alignment and integration of donor funds flowing into the country for Energy Efficiency activities, to avoid duplication?

Interim Actions

Facilitate local and international donor funding and partnershipsVariable costing models Resources optimisation with sister organisations through secondments, mutual skills development Access skills development funding from SETAs

Baseline Funding for 2013/14

Source Allocation

Baseline allocation – DoE R63m

shale gas – DoE R2m

CCS R69m

DST R6m

smartgrids programme funding – EU/DoE

R71m

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