Separation of energy portfolio and Ramokgopa’s appointment praised amid rising energy-transition ...

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  • čas přidán 30. 06. 2024
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    The decision to establish a separate energy portfolio with the African National Congress's Dr Kgosientsho Ramokgopa as Minister and the Democratic Alliance's Samantha Graham as Deputy Minister has been welcomed by stakeholders and commentators alike.
    There are already warnings, however, that the success of the new Electricity and Energy Ministry will be judged not only on ensuring a permanent end to loadshedding but on whether it is able to shepherd South Africa, justly, through the unfolding energy transition in a way that addresses not only the immediate threats to security of supply and affordability but also long-term sustainability and competitiveness.
    Business Unity South Africa energy and environment policy director Happy Khambule welcomed the establishment of the standalone entity, which had been merged with mineral resources during the previous administration.
    The ministry's separation, along with three others, has resulted in the number of Cabinet posts under the government of national unity rising to 32 from 30 and the number of Deputy Ministerial positions increasing to 43.
    The creation of a "focused" ministry was also supported by Energy Council of South Africa CEO James Mackay who told Engineering News that it "bodes well for dealing with our broader energy challenges and delivering a national energy transition".
    Likewise, the University of Cape Town's Professor Anton Eberhard described the restructuring as a "good development", arguing that all the provisions of the Electricity Regulation Act (ERA), including electricity planning and procurement, will now fall under Ramokgopa, which should facilitate more effective implementation than was the case under Mineral Resources and Energy Minister Gwede Mantashe.
    That said, he warned that "lumping" petroleum with Mantashe's new Mineral and Petroleum Resources Ministry could have unintended adverse consequences for the energy sector, especially for proposed gas-to-power projects that "might be prejudiced as a result".
    "South Africa will need gas-fired power plants to complement the growing share of variable renewable energy on the grid.
    "Already, we have a confusing number of State actors doing their own thing (Transnet, Central Energy Fund, the Independent Power Producer Office, Eskom, etc) and the lack of coordination, and the absence of internationally experienced transaction advisers, means there is a high probability that these procurement or investment initiatives will fail or, at best, be too late," Eberhard told Engineering News.
    PETROLEUM PUZZLE
    South African Independent Power Producer Association (SAIPPA) CEO Brian Day also raised concerns, saying it would be important to outline what was involved in the "petroleum" part of the minerals and petroleum portfolio to create clarity between that and energy.
    Khambule, too, stressed the need to treat energy matters in an integrated manner, highlighting that South Africa faced acute energy challenges beyond electricity insecurity.
    "While electricity supply issues may be mitigated for the foreseeable future, we confront an impending gas supply cliff, a lack of clarity in energy planning and require crucial decisions regarding energy procurement investments that enable the introduction of new generation capacity and energy infrastructure.
    "Additionally, urgent interventions are needed for transmission and reticulation networks to ensure the provision of energy services," Khambule said.
    NEW ENERGY
    All those canvassed by Engineering News were, nevertheless, highly appreciative of the appointment of Ramokgopa to the role, with energy commentator Chris Yelland praising him for the vigorous approach he had taken to the issue of loadshedding after his appointment as Minister in the Presidency Responsible for Electricity.
    "Minister Ramokgopa has really been the face of...

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