SANEA Action For Energy 2010

VENUE: Indaba Hotel in Fourways, Johannesburg
25 - 26 AUGUST 2010 PROGRAMME PARTICIPANT SPEAKERS PRESENTATIONS PHOTOS WRAP UP CONTINUING PROFESSIONAL DEVELOPMENT (CPD) This event has been endorsed by the SAIEE under Validation No: SAIEE-0543-V and has been given a validation of 2 CPD credits in terms of the ECSA CPD Policy FURTHER INFORMATION: Sarita Cronjé Marketing Manager South African National Energy Association (SANEA) Tel: +27 (0)12 346-6004 Cell: +27 (0)83-325-6716 Fax: 086-611-5942 E-mail: saritac@mweb.co.za Website: www.sanea.org.za SANEA SECRETARIAT: South African National Energy Association (SANEA) Tel: +27 (0)31 368 8000 Fax: +27 (0)31 368 6623 E-mail: sanea@turnergroup.co.za Website: www.sanea.org.za		ACTION FOR ENERGY A SANEA Initiative Chairman's Closing Remarks Dear SANEA Stakeholder Now, more than ever, South Africa, and indeed the world, needs well-informed, proactive and inspirational leadership on energy matters. Given the breadth and complexity of the Energy Sector it is very difficult to keep up to date with the issues facing Energy Leaders today. Ironically, emerging leaders and support staff are frequently channeled into particular lines of activity simply to keep up with the demands placed on them. The result is narrower focus and insular thinking at the very time when decision making requires the broadest possible context if we are to effectively transition to a new energy based society and economy. It is important for all of us to actively participate and join forces to find the simple solutions which will change the lives of millions of people for the better. We will also ensure opportunities for social, economic and environmental sustainability on an unprecedented scale. Yours faithfully Brian A Statham CHAIRMAN
THULANI GCABASHE Wrap-up This was "An Energy Dialogue about Imperatives" that should perhaps happen more frequently than once per year. The choices we make need to be "fact-based" and are trade-offs in a search for what is affordable, will have an acceptable impact on the environment and will provide energy security for social and economic development. Policy 20 Year view to be promulgation in the IRP2 by November 2010. It must be noted that IRP is a strategic planning process, rather than a specific plan, which addresses Capacity to be built Technology mix Dependencies i.e. water, primary energy etc. Governance and institutional roles Integrated System & Market Operator (ISMO) to be set up, initially as a subsidiary of Eskom, to facilitate private sector participation and ensure independent dispatch. In the interim, renewable energy initiatives allowed for in the MYPD2 can be contracted with the Single Buyer Office within Eskom. Collaboration - a call to arms - in line with the theme - Action for Energy 2010 "It has never been more important for all of us to actively participate and collaborate", Mike Rossouw Our "ship" has already taken water with the crisis in 2008 - saved by the recession and the fall off in demand. Our ship is due to "take in more water" between 2011 and 2016, at which stage both Medupi and Kusile will be on-line. A 1% improvement in the Eskom fleet Energy Availability Factor to 85% would substantially save the situation but this will not be easily achieved. This must be accompanied by concerted Demand Side initiatives. From 2018 onwards we are due to "take in more water" as the decommissioning of old plants begins. Investment decisions must be made now to address capacity adequacy for this period. Liquid Fuels have a little more lead time As in the 1950s, the decision to "import or produce" must be made soon. Issues - timing of investment, access to funding, adequacy of legislation. Further coal to liquid plants would certainly require carbon sequestration But the industry has a good history of collaboration - which the authorities want to be sure is not collusion. Further finds of gas in Mozambique and shale gas exploration in the Karoo has given hope that gas will become a part of our future energy mix. A Changing Global Perspective The Global Scenario is changing largely driven by the rise of China and volatility of markets due to Geopolitical conflict. For Africa the lack of access to commercially available energy is the bigger challenge than efficiency - but Africa Is more is more vulnerable to the effects of climate change. Regional co-operation is important but funding will always be at a bilateral level. A "Desertec of Kalahari" should be viable if approached regionally. Sustainability A more sustainable approach to providing energy is viable given the abundance of renewable energy resources. Solar kits for homes, clinics and schools have been successfully implemented and lessons being put to improving an improved service. Call to action to implement home and business renewable energy solutions - using the full spectrum of low cost and higher cost technologies. At the policy level the following need to be put in place: Higher renewable energy target i.e. 50% of installed capacity Greater focus on developing the manufacturing potential to create jobs - as many as 36 000 by 2020. Build on sustainable energy for economic, social and environmental benefits. Average energy consumption of energy at 1MWh per person per month is not sustainable, neither is it viable to extend it to the full population of 49 million. A paradigm shift is needed. People have historically provided the solutions to making commercial energy accessible - through co-operatives or small supply companies. Empowerment of people through knowledge and information is to be encouraged. Energy Security National Treasury proposes a pragmatic approach Short term R240bn in loans and guarantees Medium term Market structure reform - ISMO Finalise RDS to deal with the R28bn maintenance backlog in the distribution sector Improve implementation of the free basic electricity programme Preserve the credit rating Approve the full construction of the new multi-product pipeline Make a decision on whether to build additional refining capacity of depend on importing refined products and whether to develop further coal-to-liquids capability What Next Co-operate, collaborate and get involved to solve the problems. Leverage the process experience of the World Cup task teams Policy and regulatory certainty is required now. Renewables IPP's vs Eskom New build EDI Beware of the "Tyranny of the Status Quo". Think laterally but be aware of the inter-linkages Take full account of some new parameters such as "Energy return on Energy Invested". Thulani Gcabashe SANEA Board Member