Budget Vote speech by Minister of Energy

Department of Energy 2013/14 Budget Vote speech by Minister of Energy, Ms Dipuo Peters, MP at the Old Assembly Chambers, Parliament, Cape Town
14 May 2013

Honourable Chairperson
Deputy Minister of Energy, Ms Barbara Thompson
Honourable Chairperson and Members of the Energy Portfolio Committee
Honourable Members
Diplomats
Director-General and the Senior Management of the Department of Energy
Chairpersons and CEO’s of Public Entities
Guests and Stakeholders
Ladies and gentlemen.

Our first democratically elected President, Dr Nelson Mandela once said, “For to be free is not merely to cast off one’s chains, but to live in a way that respects and enhances the freedom of others.”

It is an instructive remark, enjoining us all to work hard to not only to cast of the chains – but to respect and enhance the freedom of others.

It is therefore fitting that, four years since President Jacob Zuma, through a stand-alone department assigned us the task of translating the African National Congress (ANC)’s policies on energy into implementable government programmes, we must reflect on the progress made and the road traversed thus far..

Click to continue reading complete speech.

Reminder: Carbon Tax Policy Paper open for comment

Following a 2010 discussion paper, National Treasury has released a policy paper on a carbon tax. Finance Minister Pravin Gordhan had said in his 2013 budget speech that the tax will come into effect on 1 January 2015. The tax rate remains at R120 / t CO2-eq, though with exemptions to many sectors, the effective rates are R12 to R48. Of key importance is the design details, including the rate, threshold, treatment of energy-intensive industries and use of revenue to shield poor communities from any economic burden.

The full document is available at http://www.treasury.gov.za/public%20comments/Carbon%20Tax%20Policy%20Paper%202013.pdf

A press release outlines the highlights: http://www.treasury.gov.za/public%20comments/Press%20Rwilelease%20-%20Carbon%20Tax%20Policy%20Paper%202013.pdf

The document is open for comment until August, see www.treasury.gov.za

Out with the old and in with the new? The rhetoric of new nuclear

Kate Pond | 15 May 2013 | Carbon Brief

There might be a new generation of reactors – referred to in industry and politics as ‘new nuclear’ – but the rhetoric used to promote them is strikingly similar to previous generations.

The rhetoric of ‘new nuclear’ is specifically designed to distinguish Generation III (and 3+) reactors from previous generation reactors, or ‘old nuclear’ for the sake of argument. However, closer examination shows that the roots of nuclear rhetoric in the present day can be traced as far back as 1901.

Eskom must procure 50% of coal from black miners by 2018, says Gigaba

LINDA ENSOR | 14 MAY 2013 | BDLive

PUBLIC Enterprises Minister Malusi Gigaba is driving a process to establish a Mine Development Fund to finance the development of coal mines, mainly at the early exploration stage.

The minister said in his budget vote speech in an extended committee of the National Assembly on Tuesday that the government intended to ensure that by 2018, Eskom procured more than 50% of its coal from emerging black coal miners. This, he said, “would be a significant act of transformation”.

Over five years, Eskom is projected to spend more than R200bn for the supply of coal for its power stations.

Minister ignores opposition calls to keep coal power plants

SAPA | 14 May 2013 | M&G Online

Developing nuclear power stations carries “tremendous benefits” for South Africa, Energy Minister Dipuo Peters has said on Tuesday.

Opening debate in the National Assembly on her department’s R6.6-billion budget for this year, Peters told MPs that many of the country’s older coal-fired power plants would be retired and “fall away around 2023″.

Nuclear-generated power was the best replacement to guarantee the country could meet its base load demand, she added.

Gas a game changer for SA: Eskom CEO

Sapa | 14 May, 2013 | Times LIVE

Gas can be a “game-changer” for South Africa in the power sector, Eskom CEO Brian Dames said on Tuesday.

He said Eskom was particularly aware of the deficit in access to electricity, and that there was a growing role for gas in the country and in the sub-Saharan region.

“It is a lot less carbon intensive than fossil fuels, and some of the cleanest fossil fuel,” he told delegates at the African Utility Week conference in Cape Town.

Financial closure for round 2 REIPPP in South Africa

14 May 2013 | ESI Africa

South Africa’s renewable energy independent power producer programme (REIPPP) round two has reached financial closure with 19 projects achieving this milestone on May 9th 2013. These projects which should see a capital investment of R28 million comprise wind, solar and small hydro projects totalling 1,043.9 MW.

There are nine solar photovoltaic (PV) projects totalling 417.1 MW, seven wind projects totalling 562.5 MW, one concentrated solar project (CSP) of 50 MW, and two small hydroelectric projects totalling 14.3 MW.

The average tariff prices for the PV projects fell to 165c/kWh from the 275c/kWh of round 1. The average prices for the wind projects in round two fell from 114c/kWh to 89c/kWh. The CSP project came in at a price of 251c/kWh.

The second round follows the first REIPPP round of renewable energy projects being implemented in South Africa where 28 projects representing 1,416 MW are under construction.

The date for the submission of bids for the third round of REIPPP projects currently is the 19th of August 2013.

SOURCE: http://www.esi-africa.com/node/16334