Statement by Brett Herron
GOOD Secretary General
CONFRONTING ENERGY INSECURITY AND EMBRACING SUSTAINABILITY
GOOD welcomes announcement of IRP and Eskom turnaround plan – time to stop talking and start implementing
South Africa has mismanaged its way through an electricity supply crisis for too long – undermining confidence in our economy and our ability to navigate the changing energy terrain.
We have remained stuck in the dark-ages for too long – quite literally, and regularly – while Eskom has been mismanaged and plundered.
But, the odd power failure, aside, October has seen the country taking positive steps to right the listing ship. The tabling of the Integrated Resource Plan 10 days ago provides critical policy certainty about medium term energy resources, while today’s release of the long-awaited plan to restructure the hobbled monolithic and monopolistic Eskom will be met with widespread relief.
The commitment in the IRP to procure 85% of new energy from non-carbon sources is reasonably good, and the restructuring of Eskom, while ambitious, is long overdue.
Given the pace of climate change, and increasing global recognition of the climate emergency, a 100% commitment to new energy sources would have been better. However, the commitment, between now and 2030, to procure 49% of new energy from wind-generated sources, 20% from photovoltaic sources, 8% from hydro and an additional 7% linked to large-scale storage energy sources, demonstrates a strong commitment to reducing pollution and contributing to decelerating climate change.
It is heartening that Eskom, as it is presently constituted, won’t be in charge of this process.
Eskom is to be divided into three separate entities, including a transmission entity that will contribute to the creation of a competitive energy market. The only way to create a truly competitive market will be to allow the transmission entity to procure power from sources other than those controlled by Eskom.
GOOD welcomes the long-term vision of the plan, but notes that in the short and medium terms the plan is subject to procurement determinations to be made by the Minister of Minerals and Energy.
The Minister must urgently issue the determination. The determination should include a clause permitting municipalities to purchase electricity directly from independent power producers – giving local governments the choice to procure clean energy, reduce carbon emissions and provide energy security to ratepayers.
Ends…