Transcript Progress Report - Parliamentary Monitoring Group

COP17/CMP7 Energy Sector Progress Report to the
Select Committee on Economic Development
18 October 2011
1
Presentation Outline
 Background
 Africa Energy Ministers Conference (AEMC)
 Flagship/legacy projects
 UNFCCC Side Events
 SA CCR Expo Side Events
 Partnerships and Collaboration
 DoE Delegation and Accreditation
 Summary of Progress
 Linkages with other Departments
2
Background

Following COP 16 meeting and outcomes, and in preparations for COP 17 in
Durban, the Department of Energy approved the establishment of both an
internal and External Technical Steering Committee were both established in
April 2011.

The purpose of the internal COP 17 steering committee is to ensure that all
the energy sources are reflected on based on the vision and mission of the
Department based on the policy imperatives.

The External Technical Steering is comprised of the whole energy sector, i.e.
Government, SOEs, business/private sector, etc.

The committee is responsible to develop and implement Energy Sector Work
Plan for COP 17 to ensure ownership and concurrence by the energy sector as
a whole.
3
Background

Three (3) high level thematic panel discussions for energy were submitted for
participation in the UNFCCC precinct.

18 demonstration projects were also coordinated to be showcased at the
Climate Change Response Expo – organised and led by the Department of
Environmental Affairs.

24 thematic panel discussions / roundtables are also being developed into fully
fledged concepts for the CCR Expo participation (refer to the attached draft
energy side event programme)

Panelists for discussions will include Ministers, DG, CEOs and Technical Experts,
government and private sector representatives for various organisations from
both at national and international level
4
Feed Back: African Energy Ministers’ Conference

The DoE together with the African Union (AU) hosted the African Energy
Ministerial Conference on15-16 September 2011 at Sandton Convention
Center.

A total of 45 countries, 35 Ministers and Deputy Ministers and more than 200
delegates from government and business sector, both locally and
internationally attended the conference.

The aim of the conference was to provide a high level platform for Ministers
as decision makers to have an opportunity to deliberate and map a way
forward on Access to Energy for Africa in preparation for COP 17.

The main objective was also to promote sustainable energy access for Africa
in line with the UN declaration of 2012 as the International Year of Energy
access for All.
5
Feed Back: African Energy Ministers’ Conference

Africa contributes less than 4 percent of global CO2 emissions, but it is the
continent most vulnerable to climate change and least prepared to deal with
its effects.

Climate change will threaten food and energy security through higher
temperatures, extreme events, and changes in rainfall.

585 million people do not have access to modern energy in Sub-Saharan
Africa.

Energy poverty is hindering development in Sub-Saharan countries and is a
barrier to economic growth and the successful achievement of the
Millennium Development Goals.
6
Feed Back: African Energy Ministers’ Conference

The following key topics informed the basis of a detailed deliberation through
scientific papers on issues on the ground:

–
Climate Resilience and Energy Access: A Top priority for Africa
–
A process toward Universal access to modern household energy services
–
Illustrating Financial Instruments for low-carbon energy investment in Africa
–
Path to energy security: Building a sustainable energy portfolio
–
Regional Power trade: cutting energy costs for Africans
–
Securing resources for energy investments: climate finance for green growth
A formal report on all the conference proceedings is being finalised.
7
Feed Back: African Energy Ministers’ Conference

This conference was preceded by a capacity building or training side event on
14 September 2011 coordinated by UN Energy and was attended by about 70
participants spread across the continent.

The focus was on training tools for Sustainable Energy for technical teams,
project managers, etc and addressed the following key factors:
–
Capacity building in Energy Planning
–
Interactive demonstration of the Clean Energy Solutions center
–
Measuring energy poverty
–
Technology needs assessment training
–
Preparing proposals & business plans for financing
–
Guide to reporting Energy RD&D budget/Expenditure Statistics
8
Key Outcomes of the AEMC

To identify energy solutions that will ensure that Africa has the resources to
achieve economic growth and development while simultaneously addressing
the dual challenges of mitigation and adaptation to climate change in
partnership with the developed world.

To create a sustainable program for universal energy access to advance on
the scaling up of energy systems that are less-emissions intensive

Agree on solutions for infrastructure, provision of finance, and the expansion
of new and clean technologies for developing countries and in particular
Africa in order to meet the Millennium Development Goals (MDGs)
9
Key Outcomes of the AEMC

Parallel to the conference, Minister of Economic Development, Mr Ephraim
Patel officially opened a side event on Green Economic Development in
South Africa- “Africa Great Opportunity: household cookstoves” which has a
potential to create employment while closing the gap on energy access.

The conference built on the work of the Forum of Energy Ministers of Africa
(FEMA) and several sub-regional economic communities, notably the
Economic Community of West African States (ECOWAS), the East African
Community (EAC) and the Economic Community of Central African States
(CEMAC), SADC, etc.
10
Key Outcomes of the AEMC

It further sort to contribute to the development of energy strategies, aimed
at realizing the NEPAD objectives, namely achieving the growth, and success
of the African economy in realizing Africa’s great potential in energy.

This conference resulted in a joint declaration as outlined in the slides to
follow

The United Nations Energy Programme is currently finalising a book on
Climate Change which will include the South African Energy plans (vision to
2030 as per the Integrated Resource Plan) as well as Africa Energy Ministers
conference outcomes.
11
Key Outcomes of the AEMC
 The aim is to push for developing and developed countries to accelerate the
implementation of both climate change adaptation and mitigation
interventions in order to address energy needs while building a climate
resilience future

To maximize the utilization and taking advantage of the natural resources in
scaling up energy access in the continent
 To seek ways to harmonize the regional power pools in achieving the growth
and success of the African economy and to realize Africa’s great potential in
energy
 Partnership and financing from the developed world will be critical if Africa
will be able to rid itself of serve poverty levels and achieve genuine green
growth.
 The conference concluded with a declaration that will form part of the
UNFCCC deliberations in Durban (refer to attached declaration).
12
African Energy Ministers Conference
Declaration (Details contained in the full
declaration)
13
Feed Back: African Energy Ministers’ Conference
 Recalling the Maputo Declaration adopted by the African Energy Ministers
at their inaugural conference held in Maputo, Mozambique, on November
5th, 2010, and reiterating the commitments that resulted, including the
formation of the Conference of Energy Ministers of Africa (CEMA);
 Welcoming the progress achieved in the establishment of Regional Power
Pools and the programs, initiatives and partnerships at both regional and
sub-regional level geared towards advancing energy sector development
and integration in Africa, and appreciating the support of development
partners to Africa’s energy development agenda.
14
Welcoming and Recognizing
 Welcoming 2012 as the International Year of Sustainable Energy Access for
All, and the sustainable energy goals set forth in the report of the United
Nations Secretary-General’s Advisory Group on Energy and Climate Change
(AGECC); Energy for a Sustainable Future, The Secretary-General’s Advisory
Group on Energy and Climate Change (AGECC), New York, USA, April 28, 2010.
 Welcoming the continued emphasis placed by the United Nations SecretaryGeneral and the UN system on sustainable energy as central to achieving
sustainable development. And specifically on the Action Agenda that is being
designed by a new High-Level Group on Energy around three goals: ensuring
universal access to modern forms of energy for all by 2030, improving energy
efficiency by 40 per cent by 2030, and doubling the global share of renewable
energy by 2030;
15
Welcoming and Recognizing
 Recognizing that access to reliable, affordable and sustainable energy
service is essential to reduce poverty and promote equitable and
sustainable social and economic development, and climate resilience in
our continent;
 Recognizing that resource efficiency and green growth critically contribute
to poverty reduction, job creation, decent work, social development and a
better environment;
16
Emphasizing
 that inadequate energy systems will jeopardize the achievement of the
Millennium Development Goals in Africa and weaken resilience to adverse
climate change impacts, as well as hinder opportunities for vulnerable
groups, especially women and children;
 the vulnerability of Africa to the negative impacts of climate change, the
resultant threats to water supply and energy infrastructure, and hence the
need to ensure adaptation to climate change;
 Emphasizing that Africa, Least Developed Countries (LDCs) and Small Island
Developing States (SIDS) should be prioritised for Green Climate Fund as
reflected in the COP 15/CMP 5 Copenhagen Accord;
17
Emphasizing
 Emphasizing the principles of the United Nations Framework
Convention on Climate Change (UNFCCC),
– particular the principle of common but differentiated responsibility
and respective capability , and
– further reinforcing that developing country mitigation and
adaptation action is dependent on the provision of finance,
technology and capacity building support from developed countries
18
Capacity Building and Finance
Capacity Building
 The fundamental need to build necessary:
– human and institutional capacity developments on a sustainable basis.
– Ability to implement bankable projects,
– effective policies and regulations, and
– negotiate favourable agreements to ensure the provision of sustainable
energy for all
Finance
 Recalling also the COP 15/CMP 5 Copenhagen Accord on Fast Start Financing
approaching $30 Billion by 2012 and on long term funding arrangements of up to
$100 Billion per year by 2020
19
Ministers assert that:
 Expanding access to modern energy services and
 energy security are priority to accommodate the basic needs of millions of
African citizens,
 facilitate human and social development, sustain economic growth, and
 contribute to the achievement of the MDGs in Africa thereby building resilience
to the impacts of climate change
20
Ministers assert that:
 intermediate goal is
-
To support and complete the currently planned capacity expansion through key
transformational projects,
-
To add an additional 30 GW of capacity within ten years.
-
To accommodate the needs of an additional 150 million Africans served by grid
electricity
21
Ministers assert that:
 Building energy security by scaling-up regional power supply and
transmission:
 The up-scaling and coordination of regional transmission and generation
capacity will enable further benefits of scale, security and diversity.
 With the support of financing, technology and institutional capacity
building from developed countries to enable
Africa to enhance its
economic, social and environmental development using a diversity of
clean energy sources.
22
Ministers further assert that:
 Localizing supply chains: Whilst growing our energy economies, Africa need to
ensure that localization of supply chains for not only the supply of equipment and
plant, but also the maintenance and operation of our facilities. This will create jobs
and grow skills as well as reduce costs
 Integrated planning is critical to the sustainability and further development of
Africa’s economies and societies. As such Ministers will prioritize integrated
planning and the role of the energy sector in developing Africa’s economies,
promoting investment and localization, as well as improving education, security
and health care.
23
Ministers further assert that:
 Integrated planning is critical to the sustainability and further development of
Africa’s economies and societies. As such Ministers will prioritise integrated
planning and the role of the energy sector in developing Africa’s economies,
promoting investment and localization, as well as improving education, security
and health care.
 Building technology and innovation capacity: Africa need to build its technology
base through undertaking appropriate research and development (R&D),
developing skills base and facilitating technology transfer to ensure that
technologies needs are driven and appropriate for local conditions including
undertaking regional resource assessment projects.
24
Ministers assert that:
 On securing financial resources
– Africa lack of resources for project preparation and development – from
concept to financial close and execution
– most major energy projects require long term finance with repayments linked
with project revenue generation. Which is often inadequate to support the
long value chains of comprehensive projects
– the financing of these projects needs to be in the form of grants - especially
for interregional transmission and renewable energy projects
– aim to maximize the flow of green finance and carbon funds as well as the
use of mechanisms such as the CDM.
25
Ministers resolve to:
 Support the expansion of generation capacity with emphasis on regional projects
 Enhance funding for policy and institutional development activities, with
emphasis on planning, design and timely implementation
 Support a sector wide approach to scale up energy access through energy
planning and international cooperation
 Enhance regional trade and energy resource development through support from
development partners
26
Ministers resolve to:
 Urge the COP to ensure that adaptation receives equal weighting to mitigation
and in particular that adaptation projects be recognized for support in the Green
Climate fund.
 Further suggested that templates be developed to facilitate the development of
country and regional adaptation plans for the most vulnerable countries and
regions – especially in Africa.
27
Ministers commit to:
 Ensure the success of these actions, through:
– Full cooperation in the achievement of the above actions
– Cooperation in developing regional integrated energy plans which will
identify priority energy projects across the continent.
– Cooperation in the sharing of lessons learnt in the energy field through
holding workshops and training programs.
– Improving the efficiency of Africa’s Energy operations to reduce emissions
and improve affordability
– Working in partnership with key stakeholders including business and our
Development partners
28
Report on Flagship/Legacy Projects (1)

The Inter Ministerial Committee requested National Departments to
determine Top 10 National Flagship projects to be showcased at the COP 17

The Top 10 projects were selected based on a criteria agreed to by the InterDepartmental Logistic Committee (IDLC) Chaired by DIRCO

5 of the top 10 National Flagship projects are from the Energy Sector

The 5 projects are led by the Department of Energy in partnership with the
Department of Economic Development, Ethekwini Municipality and Eskom
29
The Criteria
NO.
CRITERION
SCORE
(OUT OF 10)
1
LOCALISATION POTENTIAL
10
2
JOB CREATION POTENTIAL AS AN ENTERPRISE OR
ACTIVITY
10
3
EXTENDED USE OF LOCAL AGENCIES AND PROGRAMS
10
4
ABILITY TO HAVE HIGH IMPACT IN TERMS OF EMMISION
REDUCTION
10
5
RURAL DEVELOPMENT
10
6
REPLICABILITY
10
7
SUSTIANABILITY
10
8
ABILITY TO ATTRACT FUNDING
10
9
IMPACT ON CLIMATE CHANGE POLICY
10
10
ABILITY TO ELEVATE SOUTH AFRICAS POSITION ON
CLIMATE CHANGE EG COP17
10
TOTAL SCORE
100
30
The 5 Energy Sector Flagship Projects (1)
PROJECTS
1.
MASS ROLL OUT OF SOLAR WATER HEATING SYSTEMS
2.
COMPREHENSIVE COMMUNITY SOLAR ENERGY PROJECT,
NORTHERN CAPE
3.
CERES WIND
4.
ENERGY EFFICIENCY AND DEMAND SIDE MAGEMENT (EEDSM) –
ENERGY EFFICIENT LIGHTING
5.
LARGE SCALE PV DEVELOPMENT; SOLAR ENERGY PARK
CONCEPT & EKURHULENI SOLAR PV
DEPARTMENT OWNERSHIP
DoE/EDD
DoE
Eskom
DoE/Eskom
DoE
31
Options for Energy Seminar Rooms

African Union Pavilion (part of UNFCCC precinct)



AU allocated 2 000 square metre by UNFCCC
SA Climate Change and Response Expo

Preliminary allocations 375 square metre

One seminar room (50 – 100 seats)

2 x Boardrooms (10 seats)
Durban University of Technology (DUT) in partnership with IRENA (International
Renewable Energy Agency)


Exhibition space and capacity building for Journalists and Media Professionals

IRENA will work closely on an Energy Indaba during the COP
NEDBANK Building (in partnership with NBI)
32
DoE Delegation and Accreditation
 Delegation of 22 members approved

Negotiation process

Side events and exhibitions (UNFCCC and SA CCR Expo)

Technical support to the Minister, Deputy Minister and DG
 Accreditation forms submitted to DEA

Sessions within UNFCCC precinct
 SA CCR Expo accreditation process underway
33
Partners and Collaboration

DoE is working closely with Eskom on COP17/CMP7 on energy matters to
prevent duplication of processes and also to speak as a country instead of
individual organisations hence the energy sector representation.

IRENA is partnering with the DoE to coordinate and support RE, Capacity Building and
Training events (i.e. speakers, concept, programme, etc).

IEA through the DoE-IEA MOU is working with DoE to coordinate and support the
Energy Policy, Clean Energy Financing, Capacity Building and Training events (i.e.
speakers, concept, programme, etc).

SANEDI and French Agency for Energy and Environment (ADEME) are coordinating
energy efficiency and Carbon Capture and Storage (CCS) events (i.e. Speakers,
concept, programme, etc)
34
Partners and Collaboration

European Investment Bank (EIB) proposed collaboration on clean energy
financing which the DoE is considering.

Department of Public Works, Swiss Agency for Development and
Cooperation and Green Building Council of SA are partnering on Building
Energy Efficiency and EE Monitoring

Departments of Public Enterprise, Economic Development, and Trade and
Industry are partnering on renewable energy technologies.

DoE is partnering with DEA and UNIDO (Donor) on Greening the COP 17
programme: The roll of Solar Water Heating programme in 20 clinics within
eThekhwini Municipality. UNDP has been appointed as the implementing
agent for the roll out.
35
Greening COP 17: SWH Programme for Clinics

The aim of the project is to promote local economic and social development
in the host region and;

To showcase during COP 17 the initiatives of energy poverty alleviation
through rolling out Solar Water Heating programme to 20 identified clinics

The project is being implemented in three areas as follows:

Illempe in Groutville, 17 clinics

Hilton in Pietermaritzburg, 1 clinins and

Hill Crest in Durban, 2 clinics

Consultants have been appointed and work has commenced and will be
concluded before COP
36
Greening COP 17: SWH Programme for Clinics

The Illembe areas has been identified for High Level side visit is scheduled
for 8 December 2011

The project will be launched by President Zuma and UN general Secretary
Ban ki-Moon, and the Minister of Energy in partnership with DEA and
UNIDO Director General
37
Summary and Progress of events
NO
ACTIVITY
PROGRESS
1
Submission of 3 UNFCCC Side Events
2
Identification and submission of flagship/legacy
projects to DEA and IMC
3
List of energy thematic panel discussions
4
Energy Sector COP17/CMP7 Side Event Programme
5
Invitations, speakers and moderators for energy
seminar sessions
6
DoE Delegation and Accreditation
Green: Work completed; Yellow/Amber: Work in Progress
and Red: Work within critical path and urgent
38
Summary of Progress
NO
ACTIVITY
PROGRESS
7
Exhibition space and seminar rooms
8
Energy Sector COP17/CMP7 Communications
Strategy
9
Energy Sector Outreach Events, Media Briefing,
etc
10
Translation – translators, booths, audio
11
Side event and exhibition signage
12
Exhibition design and materials
Green: Work completed; Yellow/Amber: Work in
Progress and Red: Work within critical path and
39
urgent
Key Linkages with Other Projects: Best Practices

Provision of clean energy through Witsand iEEECO Human Settlement
Development Model, in Low income household in Cape Town

Implementation of green economic development through clean energy
intervention in domestic sector in partnership with Economic Development
Department

DoE is also working with other stakeholders the Implementation of South
African Renewable Energy Initiatives (SARi), Industrial Energy Efficiency (IEE)
and Clean Technology Competition in partnership with Trade and Industry
40
Key Linkages with Other Projects: Draft
National Climate Change White Paper Policy

The Department of Environmental Affairs is currently consulting on the draft
National Climate Change White Paper Policy which is expected to be launched
the COP 17.

Energy remains core contributor into the draft National Climate Change White
Paper policy due to emissions reductions.

The following are some of the comments are forwarded for consideration on
the draft paper before its finalisation/approval:

To disaggregate all the sectors and subsectors in accordance with the
Copenhagen pledges (i.e. 34% by 2020 and 42% by 2025).
41
Key Linkages with Other Projects: Draft
National Climate Change White Paper Policy

The disaggregation will give us a comprehensive picture for the whole
sector and delineation of roles and responsibilities, development of plans
and strategies, resource allocation, executing specific programmes and
set timeframes in terms of aligning the Copenhagen target to the
disaggregated sector targets not excluding proper monitoring and
evaluation how the energy sector is performing in totality.

The cost of meeting the proposed target versus the deliverables /outputs to
be clearly outlined in order to answer the “SMART” principle during the
implementation of the White Paper.
42
Key Linkages with Other Projects: Draft
National Climate Change White Paper Policy
 The policy to consider the socio-economic impact assessment (e.g. to make
sure that the service providers do not pass the cost of mitigation to the
consumers), particularly on of the analysis on economic wide impacts. Cost
benefit analysis will inform the ultimate decision while allowing us to protect
the consumers as the end users without putting a financial strain on them.

The policy to be implemented starting with the existing flagship programmes
which are already addressing climate change. For example: Integrated
Resource Plan, Independent Power Producers (IPPs) procurement programme,
Energy Efficiency and Demand Side Management, Working for Energy, etc.
43
Recommendations

It is recommended that the Select Committee on Economic Development
notes the following:

Progress made on the COP 17 / CMP 7 preparations as a sector
department, partnership with other stakeholders

Final Declaration made at the Africa Energy Ministers Conference held on
15-16 September 2011

Draft programme for the Energy Side events
44