Tag Archive | nuclear energy

Overall energy strategy still not there

Feature article………….

DOE energy strategy in need of lead 

From closing parliamentary meeting….sent clients dec 15….   South Africa’s energy strategy problem is as much about connection as it is about the integration of supply resources, said Dr WolseyDr Wolsey Barnard Barnard, acting DG of the Department of Energy (DOE), when briefing the parliamentary select committee on DOE’s annual performance before Parliament closed in 2015

Of all the problems facing South Africa on the energy front, probably the most critical is the lack of engineering resources facing South Africa at municipal and local level, negatively affecting economic development and consumer supply, he told parliamentarians.

He particularly referred in his address to the fact that the main problem being encountered in the energy supply domain was the quality of proposals submitted by municipalities for supply development in their areas.     In many cases, he said, the entities involved totally lacked the technical skills and capacity to execute and manage projects and there was also, in many cases, a lack of accountability with reports not being signed off correctly and in some cases technical issues not resolved before the project started.

Doing the simple things first

Despite all the queries from Opposition members on major issues such as fuel regulation matters; nuclear development and the tendering processes; the independent power producer situation with clean energy connection problems and issues surrounding strategic fuel stocks; again and again (DOE) emphasised that nothing was possible until South Africa developed its skills in the area of energy (electricity) connections.

electricity townshipsThe quality of delivery in this area was “extremely poor”, Dr Barnard said, inferring that without satisfactory delivery of energy the burning issues of supply became somewhat academic. Localised development at the “small end” of the energy chain had to be developed, he said. This lack of skills was exacerbated by the “slow delivery of projects by municipalities and by Eskom in particular”, he said.

Eskom  in areas not covered by local government.

Dr Barnard said that there was a lack of accountability on reports provided; poor expenditure by most municipalities evident from the amount of times roll overs were called for and high vacancy rates in municipalities. Consequently, he said, the overall Integrated National Electrification Programme (INEP) was producing slow delivery of electrification projects requested of both local government and Eskom against the targets shown to MPs.

In probably the last meeting of the present Parliament before its recess, DOE spoke more frankly than has been heard for some time on the subject of its short, medium and long term energy solutions, including a few answers on the problems faced.

Frank answers

DOE explained it had six programmes focus which were outlined as the various areas of nuclear energy; energy efficiency programmes; solar, wind and hydro energy supply; petroleum and fuel energy issues, regulations and development electrification with its supply and demand issues.

DOE specifically mentioned that the Inga Treaty on hydro-power had come into force in the light of theinga fact that conditions to ratify the long term agreement between SA and DRC were satisfied and commercial regulations could begin in order to procure power. This would change the future of energy of solutions. This was a long terms issue but targets for the year on negotiations had been met.

Opposition members were particularly angry that a debate could not take place of nuclear issues and whether South Africa was to procure reactors or not. It was suggested by the Chair that maybe the outcome of COP21 might have given more clarity but MPs maintained that to make a decision DOE, as well as the Cabinet, “must know the numbers involved”.

DOE maintained silence on the issue saying as before that enumerating bid details would destroy the process. It was assumed by the committee at that stage that the then Minister of Finance must be grappling with the issue but MPs wanted an explanation to back up President Zuma’s State of the Nation address on nuclear issues, complaining that nobody in Parliament had seen sight of Energy Minister Joemat-Pettersson nor heard a thing on the issue.

Full team minus nuclear

Present from DOE, in addition to Dr Wolsey Barnard, Deputy DG and Projects and Programmes were Ms Yvonne Chetty, Chief Financial Officer; DG Maqubela, DG of Petroleum Regulations and DG Lloyd Ganta, Governance and Compliance.

On solar energy, DOE said some 92 contracts had been signed in terms of the IPP programmes. Forty of them were now operating producing some 2.2 megawatts of energy at a “cheap rate” when on line and solar germanythe grid being supplied but it became more expensive when not being taken up. Dr Barnard explained that South Africa was not like Germany which was connected to a larger EU “mega” grid in Europe where it both received and supplied electricity.

SA’s system, he said was rather a “one-way supplier”, solar energy being made available only when needed by the grid. But as SA grew economically, things would change.

He commented that the new solar energy station in Upington had not yet been completed but shortly it would not only be supplying energy “when the sun was shining” but, importantly, be able to stored energy for later use. This made sense with the purpose of the IPP programme, he said.

The big failure

On the issue of the PetroSA impairment of R14.5bn, subject raising again the temperature in the meeting, DG Lloyd Ganta of DOE explained that the PetroSA impairment had happened mainly for two reasons.
The first was that PetroSA had made a loss in Ghana to the value of R2.7bn, primarily, he said, due to the fluctuations in the price of oil, the price falling from $110 per barrel to $50 at the time shortly after their entry and at the point of the end of the first quarter.

Project IkwheziThe second reason was due to losses at Project Ikwhezi (offsea to Mossgas) where volumes of gas extracted were far lower than expectation, the venture having started in 2011. At the end of the 2014/5 financial year, only 10% of the expected gas had been realised. When parliamentarians asked what the new direction was therefore to be, the answer received was that engineers were looking at the possibility of fracking at sea to increase the disappointing inputs.

The financial reports from Ms Chetty of DOE confirmed the numbers in financial terms making up the loss,

Dependent on oil price

Acting DG Tseliso Maqubela then stressed that nothing could not change the fact that South Africa was an oil importing country but the country was attempting to follow the direction of and promises made on cleaner fuels and it had been decided to continue with the East coast extraction.

In terms of the NDP, DOE said that South Africa clearly needed another refinery for liquid fuels but

refinery

engen durban refinery

whilst an estimated figure of R53bn had been attached to the issue some time ago for the financing of such, the issue of upgrading existing plant had not been resolved with stakeholders.

Oil companies, he commented, had said that if the government were not to pay for this in part, especially in the light of fuel specification requirements also required to meet cleaner fuel targets set by international agreements signed by SA, the motorist would have to foot the bill as the country could not import clean fuel as such to meet all demand.

More refining capacity

“A balance has to be found with industry and a deal struck”, he said, the problem being that the motorist was at the end of the fuel chain and such a call would affect the economy. He said that possibly the refinery issue could be approached in a phased manner and at perhaps a lower cost.

In the meanwhile, cleaner fuels were a reality and already some traders had applied to the DoE for licenses to construct import facilities, one in Durban and one in Cape Town.

If traders were to bring in large quantities of clean fuels, he said, this would represent a complete change in the petroleum sector and an energy task team, made up of government and main stakeholders was at present putting together a full report on cleaner fuels and a strategy for the future.

LPG a problem

lpgThe Liquid Petroleum Gas (LPG) situation was different, he said, since in this area there was not enough production and import storage facilities and it was a question of short supply therefore to the market – a problem especially in winter.

Both propane and butane, the main constituents of LPG are used in the refining process in the far more complicated process of straight petroleum fuel production and with the economies of scale that have to apply to South Africa, this resulted in a high market gate price and insufficient quantities, he said.

Unfortunately, LPG was becoming very much the energy source of preference with householders,especially poorer homes, hence the pressure on government to find some way of introducing LPG on an a far larger scale and at a lesser price. The impression was given that LPG “got the short straw” in terms of production output numbers.

Nuclear non-starter

Again when the subject came round to nuclear matters, no officials present from DOE were in a position to answer MPs questions on why eight nuclear power stations should be necessary, if nuclear was indeed a necessity at all, and whether the affordability had been looked at properly – the chairman again suggesting that the matter be put off until reappearance of the Minister of Energy in the New Year.

Gas on back-burner, as usual

Finally, on questions of gas and fracking, DG Tseliso Maqubela said that government “was takingmozambique pipeline a conservative approach” inasmuch that any pipeline from Northern Mozambique to South Africa was not under consideration but that plans were afoot to expand existing pipelines from that territory in the South.

On fracking, as most knew he said, a strategic environmental assessment had been commissioned, basic regulations published and also the question of waterless fracking was a possibility, now being investigated.
Previous articles on category subject
MPs attack DPE on energy communications – ParlyReportSA
Eskom goes to the brink with energy – ParlyReportSA
South Africa at energy crossroads: DOE speaks out – ParlyReport
Gas undoubtedly on energy back burner – ParlyReportSA
SA aware of over-dependence on Middle East, says DOE – ParlyReportSA

Posted in Electricity, Energy, Facebook and Twitter, Fuel,oil,renewables, LinkedIn, Mining, beneficiation, Public utilities, Special Recent Posts, Trade & Industry, Transport0 Comments

Zuma’s nuclear energy call awaits Treasury

Nuclear energy awaits funding model…..

Sent to clients Dec 10 ….Cabinet’s approval of a financing model for the Nuclear New Build programme is all that is seriously holding up the nuclear energy procurement, the Department of Energy (DOE) has told Parliament’s Select Committee on Economic Development.

Z MbamboThis was said by Zizamele Mbambo, DDG, Nuclear, DOE, when giving the most recent update to parliamentarians on the background to the South Africa’s nuclear programme. In giving the history of SA nuclear development, he said that South Africa began its nuclear energy power plan in 1985 with Koeberg in Cape Town and the country should have its second plant up and running by 2023.

This much later programme was the culmination of a process which was re-started by Eskom in 2006 with the approval of the IAEA but then stopped by SA during the financial crisis in 2008, he said.

Start-up again

Later in 2013, much had changed on the nuclear energy supply situation because of technological advances in safety and the Russian and Japanese experiences. South Africa therefore requested in that year a specialised report from IAEA with their recommendations, the first country to do so where there was already a successful nuclear energy programme running.

IAEA supplied such a report with ten recommendations which South Africa will strictly adhere to, IAEA Mbambo said, these recommendations being in the public domain. The New Build programme would only be started upon a certification that all such recommendations had been met, a requirement of South Africa’s own nuclear energy regulator.

The National Nuclear Energy Executive Coordination Committee was earlier established by Cabinet in 2011 and the “2030” plan was endorsed by Cabinet the following year. In 2013, DOE was appointed as procuring agency. The Nuclear Energy Policy of 2008 still shapes South Africa’s vision for nuclear power, Zizamele Mbambo said.

Nuclear sellers

Inter-governmental agreements (IGAs) have so far been signed with five vendor countries and these IGAs lay the foundation for trade, exchange, nuclear technology and procurement with the particular vendor. It was conditional that all vendor nations must have signed nuclear non-proliferation agreements.

The principle behind South Africa’s Nuclear New Build programme was to replace the retiring coal fleet meeting additional demands and providing certainty to investors on energy, he said.

In answer to parliamentary questioning on the IGAs signed as a result of a “vendor parade”, Mbambo stated the following:-

The Russian Federation had agreed to assist in design, construction, operation and decommissioning of the nuclear units. Russia would also assist in the localisation of the manufacture of components for the nuclear units.
France would assist in applied research and development, and also with accounting and physical protection of nuclear waste.
China would assist with experience exchange, personnel training and enhancing infrastructure development.
The USA would assist in development design, construction, operational maintenance and use of reactors for reactor experiments. USA would also assist with health, safety and environmental considerations.
South Korea would assist in the use of nuclear energy for electricity generation, heating and desalination of salt water, and in dealing with radioactive waste.
Canada and Japan were in negotiation with SA, and these IGAs were in the final stages.

SA’s vision, Mbambo commented, was to become autonomous in nuclear energy from the beginning to end of the value chain.

Waste worries

He would not comment, however, on the court case to be heard with Earthlife on the issue of nuclear logoradioactive waste as this was sub-judice, he said.    He also said IAEA had been perfectly happy with previous Koeberg arrangements as far as waste was concerned but obviously plans had to be extended.

In answer to MPs questions on cost and the next stage of the programme, he agreed that nuclear option was indeed highly capital intensive. However within 20 years, Mbambo said, the capital investment would have been reduced to nil and in view of the long 80-year life of a plant, the following 60 years would come with nil capital cost, resulting in cheaper electricity relative to the time frame.

Future dreams

It was foreseen, he said, that with nuclear energy having lower maintenance and fuel costs the relative costs of electricity tariffs to industry and consumer could be reduced also in relative terms during the 60 year period and energy sales could become a “cash cow”.

When asked about hydro energy sources and gas development, Mbambo said this was outside of his brief to answer.
Other articles in this category or as background
National nuclear control centre now in place – ParlyReportSA
Minister Joemat-Pettersson clams up on nuclear – ParlyReportSA
Nuclear partner details awaited – ParlyReportSA

Posted in Energy, Enviro,Water, Facebook and Twitter, Finance, economic, Fuel,oil,renewables, LinkedIn, Public utilities, Special Recent Posts, Trade & Industry0 Comments

Nuclear partner details awaited

DoE gives update on SA nuclear plan….

russian nuclearThe Department of Energy (DoE) says it is the sole procurer in any nuclear programme and that “vendor parades” had been conducted with eights countries, the results to be announced before the end of 2015. To give cost details, they said, would “undermine the bidding process”.

The situation regarding South Africa’s current intended nuclear energy programme was explained during a parliamentary meeting of the Portfolio Committee on Energy, DoE confirming that a stage had been reached where nuclear vendors had been approached and DoE staff were being trained in Russia and China.

Eskom not involved

Neither DoE, nor the Minister of Energy, Tina Joemat-Pettersson, who was also present would givetina-joematt cost estimates nor speak to the subject of financing other than the fact the minister admitted that the idea of Eskom being involved in the building programme in the style of Medupi and Kusile was a non-starter.

At the same time Minister Joemat-Pettersson announced that a new Bill, the Energy Regulator Amendment Bill, was to be tabled that would give Eskom the right to appeal against tariffs set by the National Energy Regulator (NERSA). This followed upon the news that Eskom would be given powers to procure, which must lead to the assumption, said opposition MPs later, that Eskom will recoup costs of financing through electricity tariffs.

The Minister said the renewable IPP programme involving the private sector had included multinationals and had been “hailed as a success” and the deal that would be struck with nuclear vendors would be on best price in terms of the end price for the consumer. Any bidding would be conducted in the “style of the IPP process”, which included support of the process of black procurement and skills training.

Contribution to grid still “theoretical”

modern nuclear 2Deputy Director, Nuclear, DoE, Zizamele Mbambo, explained to opposition members that whilst government had in principle decided to include nuclear energy in the energy mix for the future, DoE itself was still only at the stage of establishing all costs involved to the point of actual connection of a theorised figure of nearly 10GW to the national grid. To disclose costs at this stage would undermine the bidding process, he said.

The main purpose of the costing exercise still remained the final cost the consumer, he said, in terms of the NDP Plan 2030, a phased decision-making approach over a period of assessment having been endorsed by the Cabinet in 2012. The whole exercise of deciding what the costs would be was therefore relevant to how much coal sourced power would contribute to the baseload of the energy mix by 2030.

Deal or no deal

Zizamele Mbambo confirmed that in 2013, DoE had been designated as the sole procurer of the nuclearsmall nuclear reactor build programme and “vendor parades” had been conducted with Russia, China, France, China, USA, South Korea, Japan and Canada. The strategic partner to conduct the next stage, the New Build Programme itself, would be announced before the end of 2015, Mbambo said, by which time costs would have been established and treasury consulted.

At this stage no deal had been struck, he confirmed.

As distinct from the actual vendors per se, and any deals, Mbambo said that international agreements had been struck with interested counties on the exchange of nuclear knowledge, training and procurement generally.

DoE trainees already in China

chinese sa flags“Fifty trainees already employed in South Africa’s nuclear industry had already gone to China for ‘phase one’ training with openings for a further 250 to follow”, he said, noting that the Russian Federation had offered five masters degrees in nuclear technology.

The New Build nuclear programme was at present based on providing eventually 10GW of power to the grid but DoE confirmed that the indirect effect on the economy from “low cost, reliable baseload electricity is logically positive but difficult to assess”.

Zizamele Mbambo showed a graph of the possible integration of energy from coal, nuclear, hydro (imported), gas and renewables over a period, stating that nuclear was clean, reliable and would ensure security of supply with “dispatchable power.”

Opposition Members complained that the process seemed likely to make the price of electricity unaffordable to the poor and have a major impact on the cost of doing business in South Africa.

Nuclear vs. coal

Mbambo was at pains to explain that in the long term, the cost of nuclear energy was considerably lessgrids than coal and this was the reason that, for future generations, South Africa had to embark on a course that not only lead to cleaner but cheaper energy.

As a final issue, DDG Mbambo touched upon the question of approval by the International Atomic Energy Agency (IAEA) and explained that any relationship with this UN body was on the basis of a peer review.

This covered nineteen issues from nuclear safety management to radioactive waste disposal and was not an audit, he explained, South Africa already having been an experienced nation in nuclear matters from medical isotopes to nuclear weapons. It was pointed out to members that that IAEA merely carried out reviews and made input.

Up to speed or not

IAEAIt was during the response to the budget vote speech on the subject of the IAEA, that Opposition Shadow Energy Minister, Gordon Mackay said that the agency had found South Africa deficient in more than 40% of its assessment criteria.   In response, DDG Mbambo did not refer to the current state of the country’s nuclear readiness at any point but confirmed there was a great need for training and this was now the emphasis.

He said the relationship with the IAEA was in three phases covering purchasing, construction and operations and although it was thirty years since South Africa had a nuclear building programme at Koeberg, the current contribution to nuclear technology was recognised.    The programme now was to create a younger generation of nuclear experts, the main issue being to build technology capacity and train trainers in the state nuclear sector.

Reactor numbers

Mbambo concluded his presentation by stating that DoE was in discussion with treasury specifically on this issue of funding training, Minister Joemat-Pettersson adding that some six to eight reactors were planned  but a this was very early, the weight that “price” would carry in determining a strategic partner was not decided.

Other articles in this category or as background
Nuclear goes ahead: maybe “strategic partner” – ParlyReportSA
National nuclear control centre now in place – ParlyReportSA
Energy plan assumptions on nuclear build out in New Year – ParlyReport

Posted in Electricity, Energy, Enviro,Water, Facebook and Twitter, Finance, economic, Fuel,oil,renewables, LinkedIn, Mining, beneficiation, Public utilities, Trade & Industry0 Comments

Electricity connections not making targets

No hope of meeting Zuma’s promises…

elec poleThe inability of municipalities and local government to bring electricity to the poor and for the department of energy (DOE) to meet its promised target of electricity to all households by 2015 was a subject which dominated the DOE’s annual report to Parliament recently. New Minister of governance and traditional affairs, Pravin Gordhan, will have this issue before him as he tackles local government problems as will new minister of public enterprises, Lynne Brown.

Ms Nelisiwe Magubane, DG of DOE was reporting on the activities of her department for the 2o12/13 period and neither the minister of energy, Ben Martins, or his deputy, was present, much to the chagrin of portfolio  committee energy committee chairperson, Sisi Njikelena, who reported angrily on the subject.      DOE was reporting on its annual report and second quarter achievements.

Success with avoiding Middle East for oil

In noting that the year had been dominated by fluctuating oil prices, Ms Magubane noted that South Africa had succeeded in switching 41% of its oil imports to the African continent.

DG Magubane also reported that the electricity supply situation had improved in the country and the department’s own household electricity connection programme had also improved, mainly thanks to Eskom, but there was a large backlog that still existed due to lack of accountability by municipalities. This was a worrying factor for the country, she said. On this subject, further reports followed.

Other DOE targets met

Dr Barnard

Dr Barnard

On clean energy as far as the year was concerned, she reported that in August financial close had been received from twenty eight of the independent power producer (IPP) bids: the biofuels blending regulations had been drafted; the draft pricing arrangements started; and a nuclear safety report compiled and submitted as a result of lessons learnt from the Fukushima disaster.
 Dr Wolsey Barnard took up the issue of DOE’s poor record on electricity connections and said that bearing in mind the lack of skills and training at local government, it “was a miracle that South Africa had achieved so much”.

Aside from the fact, he said, that the government financial year was different to the municipal year, which made a mockery of funding programmes and targets, he said dealing with municipalities was “extremely difficult”  but nevertheless “for each seventy seconds of each day there was a connection some here in South Africa”.

Treasury must ring fence local funding

On the problematic relationships with local government, Dr Barnard said DOE was doing as much as it could “but you can pull a rope but you can’t push it and that was the trouble in dealing with local government officials”.   He said he looked forward to the day when National Treasury’s promised Bill “ring fencing” funds was promulgated “and then we might get somewhere”, he said.

He noted that each municipality had to sign a contract to get funding in the first place, providing business plan, “but sometimes we get to a place to install for a lot of homes built and there is no sub-station or any hope of connecting to the national grid”.

Cabora Bassa dam debt at R1

nelisiwe magubaneMs Magubane confirmed that in the annual reports a loan to Mozambique for the Cabora Bassa dam had been written down to R1 with the permission of Treasury. This loan was in respect of money loaned in the ‘sixties and it was clear that the Mozambique government could not pay. However, the question of re-payment of this loan would be re-raised, she said.

On queries why there seemed so little interest in gas exploration by government in Mozambique, whereas other countries seemed to have “got their foot in first”, Muzi Mkhize, chief director of hydrocarbons, said that “unlike other countries, we do not subsidize our national oil exploration effort and, in any case, the quest of dealing with countries was a foreign affairs matter and country to country relationships had to come first.”

SA to meet Mozambique on gas exploration

Sisi Njikelana said that this was a totally unsatisfactory answer and called on Mkhize for a better explanation to his committee.  Mkhize admitted that South Africa was “meeting Mozambique on a government to government basis on gas exploration matters in mid-October”.

When asked what had happened to the nuclear safety report, deputy director general of nuclear, DOE, Zizamele Mbambo, said that this was a security document but it had been acted upon.

The Eskom representative was asked to speak on the subject when a question was raised about the Koeberg Nuclear plant by a Cape Town MP, and the Eskom official reported that a “fortnightly nuclear safety committee met in the area with all representatives present” and that the meeting was chaired by a person drawn from the local community.

Refer to articles in this category
http://parlyreportsa.co.za//public-utilities/municipal-free-basic-services-slow-build/
http://parlyreportsa.co.za//energy/dpe-

Posted in BEE, Electricity, Energy, Enviro,Water, Facebook and Twitter, Finance, economic, LinkedIn, Public utilities, Trade & Industry0 Comments

Nuclear goes ahead: maybe “strategic partner”

Eskom in poll position…

nuclear logoClarification of South Africa’s intentions towards the inclusion of nuclear energy as an integral part of the national energy mix have now been made quite clear, South Africa’s nuclear team possibly working with a “strategic partner” but with Eskom in poll position.

Strong messages that this was the case have been emerging from parliamentary presentations by both the department of energy and public enterprises over the last few weeks but now the die is set.

Minister spells it out

It needed the confirmation of the minister of energy, Ms Dipuo Peters, to tie the knot as she did in a media briefing following her budget vote speech in Parliament. She confirmed that the nuclear build programme will add 9 600 megawatts to the national grid by 2023 and a form of consortium would be reached whereby Eskom would have the designation as owner and operator, the national nuclear energy executive (NNEECC) to ensure oversight and be responsible for key decisions.

The final investment decisions towards procurement of plant would now be made, she said, Neliswe Magubane responding to media questions that having Eskom on board might deter potential partners to the effect that this could not be the case. She could not see how suppliers were interested in operating factors, although NNEECC could well draw in a “strategic partner” to bring further expertise to the table.

Eskom looking a massive loans

With Eskom now facing capital expansion projects separately detailed by them in the recent NEMA-Air Quality emissions hearings and also as a result of a “New Build” nuclear development programme that involves it seems at least six nuclear plants, NERSA in a separate parliamentary meeting in recent days, admitted that it was difficult to see how eventually all of this could fail to translate down into yet further electricity price hikes.

Air quality a deciding factor

Both minister Gigaba of public enterprises and minister Peters of energy have both brought the added fact of reduced emissions of CO2 as a major factor in the decision making in what appears to be a co-ordinated approach. The main issue remaining is therefore the time delay in bringing the nuclear contribution online to the grid.

From questioning it became evident that Eskom may have to reconsider bringing forward one its coal fired plants as far as completion dates are concerned.
The following articles are archived on this subject:

http://parlyreportsa.co.za//cabinetpresidential/energy-resources-doing-it-better-and-quickly/
http://parlyreportsa.co.za//cabinetpresidential/energy-plan-assumptions-on-nuclear-build-out-in-new-year/

Posted in Cabinet,Presidential, Energy, Enviro,Water, Facebook and Twitter, Fuel,oil,renewables, LinkedIn, Mining, beneficiation, Public utilities, Trade & Industry0 Comments

Energy plan assumptions on nuclear build out in New Year

Stressing that the final integrated energy plan (IEP) from the department of energy (DOE) will be subject to public scrutiny and comment, energy minister Dipuo Peters, in a written reply to parliamentary questioning, confirmed that her department will shortly be producing the first set of energy modelling assumptions involving nuclear energy planning for the country and these could be out in the New Year.

DOE have told Parliament seperately, however, that the final draft of the whole IEP will not be in the cabinet’s hands before the middle of 2013, the department having now completed a full round of presentations to interested portfolio committees in Parliament on the background and preliminary work to be undertaken on the IEP.   The IEP is not to be confused with the integrated resources plan (IRP) which will specifically study the individual energy resources themselves.

There will be extensive consultation before any matter on the IEP is even tabled in cabinet for approval, the minister noted.    Demand forecasts have also been finalised for some time, she said, and last month “quality checks on the data had been carried out on the data supplied.”

The minister also indicated that the final full draft document with all test cases incorporated with a plan might not be in the hands of cabinet before mid-2013.  As such it will be in draft form to be published for stakeholder comment.

Clearly nuclear energy is deeply involved in the IEP since the cabinet, at its latest meeting in Pretoria, has now agreed to the implementation of the nuclear build programme in time its seems for the IEP report. Working models will look at various plans with and without various resources, one of the critical resources being the nuclear issue.

A strategy to involve stakeholders in regard to nuclear build is also being worked out, cabinet says.    Kgalema Motlanthe, who heads up the national nuclear energy executive coordination committee, held the first meeting of this body in August and communication has been ongoing.

Eskom has also been endorsed by the cabinet as the owner-operator in terms of the nuclear energy policy

Cabinet has now approved the second version of the draft national energy efficiency strategy, following the 1998 White Paper, published for public comment some time ago.

Posted in Cabinet,Presidential, Electricity, Energy, Finance, economic, Fuel,oil,renewables, Mining, beneficiation, Public utilities, Trade & Industry0 Comments

Cutback in nuclear is not in critical skills, says minister

The Minister of Energy, Dipuo Peters, in responding to questions in Parliament on South Africa’s reserve of critical skills in the nuclear energy field said that any retrenchments in this area were in the light of the fact that the Nuclear Energy Corporation (Necsa) had made a commitment to the unions that the retention of critical skills would be a priority, should such retrenchment processes be inevitable.

She said that the department of energy (DoE), in partnership with the department of science and technology (DST), were both investigating possible plans for the retention of skills critical to South Africa’s nuclear build programme.

It became apparent recently that in order to meet the reduced appropriations in the current budget vote there was a pending retrenchment of 250 on the Necsa staff role but the Minister stated in response to the question that the department was working with the DST on a skills strategy for the nuclear programme in order to “balance risks of excess skills and skills shortages”.

In the response to the budget vote, Necsa indicated that it employed 2 179 workers, including 115 scientists, 69 engineers, 430 skilled workers, 328 semi-skilled workers, 139 management staff, 38 unskilled workers and had 23 directors. Earlier this year, as reported by ParlyReport, Necsa chairperson Sisa Njikelana told the parliamentary portfolio committee on energy that insufficient funding for the nuclear body in terms of the 2012/2013 budget vote placed South Africa at risk when it came to nuclear oversight in terms of its mandate. Necsa is set to receive R554m, less than its previous budget.

Parliament, in making its recommendations on the budget vote to the minister as a result of DoE presentations, reminded the minister that in their view both Necsa and the energy regulator, NERSA, were underfunded.

 

Posted in Cabinet,Presidential, Electricity, Finance, economic, Fuel,oil,renewables, Mining, beneficiation, Public utilities, Trade & Industry, Uncategorized0 Comments


This website is Archival

If you want your publications as they come from Parliament please contact ParlyReportSA directly. All information on this site is posted two weeks after client alert reports sent out.

Upcoming Articles

  1. MPRDA : Shale gas developers not satisfied
  2. Environmental Bill changes EIAs
  3. Border Mangement Bill grinds through Parliament

Earlier Editorials

Earlier Stories

  • Anti Corruption Unit overwhelmed

    Focus on top down elements of patronage  ….editorial….As Parliament went into short recess, the Anti-Corruption Unit, the combined team made up of SARS, Hawks, the National Prosecuting Authority and Justice Department, divulged […]

  • PIC comes under pressure to disclose

    Unlisted investments of PIC queried…. When asked for information on how the Public Investment Corporation (PIC) had invested its funds, Dr  Daniel Matjila, Chief Executive Officer, told parliamentarians that the most […]

  • International Arbitration Bill to replace BITs

    Arbitration Bill gets SA in line with UNCTRAL ….. The tabling of the International Arbitration Bill in Parliament will see ‘normalisation’ on a number of issues regarding arbitration between foreign companies […]

  • Parliament rattled by Sizani departure

    Closed ranks on Sizani resignation….. As South Africa struggles with the backlash of having had three finance ministers rotated in four days and news echoes around the parliamentary precinct that […]

  • Protected Disclosures Bill: employer to be involved

    New Protected Disclosures Bill ups protection…. sent to clients 21 January……The Portfolio Committee on Justice and Constitutional Affairs will shortly be debating the recently tabled Protected Disclosures Amendment Bill which proposes a duty […]