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The Minister of Electricity, and executives in key institutions highlights the opportunities that an energy mix presents both for energy security and economic development.
Image: Taken at the 2024 3rd Annual Energy Summit
The 3rd Annual Energy Summit was hosted this week, framed around engaging on the Integrated Resource Plan 2023 and how it aims to be a pathway for energy security. Tackling the challenge of youth unemployment and exclusion from the mainstream economy cannot be done without stable, affordable and sustainable energy sources. As a council, we have always seen the energy sector as a strategic sector of the economy for the inclusion of the youth into the mainstream economy of South Africa and as a facilitator of economic growth.
We were pleased to have critical stakeholders present at the summit, including the Minister in the Presidency, responsible for Electricity, Dr Kgosientsho Ramokgopa, CEO of the Development Bank of Southern Africa Ms Boitumelo Mosako, CEO of the African Exploration Mining and Finance Corporation Mr Lemogang Pitose and the Advisor to the Minister of Electricity, Mr Silus Zimu. In addition to this, we brought in the Ambassador of the Netherlands to South Africa, H.E Joanne Doorneward for an international perspective on the IRP2023. Each of them engaged on the work of their respective organisations to bring the elements of the IRP2023 to life.
IRP2023 Context
The Integrated Resource Plan is the trajectory set by the South African Department of Mineral Resources and Energy, to ensure energy security of electricity supply by balancing the supply and demand for electricity, all while taking into account climate change and the rising cost of energy.
The IRP advocates for a diverse energy mix that will provide security of supply while ensuring compliance with it’s emission reduction plan of greenhouse gases, as per international agreements. The energy mix includes the following sources of energy:
Coal
Nuclear
Renewables
Hydro electric power
Gas
Hydrogen
The Minister of Electricity highlighted the importance of fixing and maintaining power stations, ensuring that they are functional and can work on a more reliable basis. The unbundling of Eskom remains a top government priority, ensuring that generation, transmission and distribution is separated, creating room for competition and private sector investment to ease the burden off of the electrical utility. Dr Ramokgopa stressed the need to ensure that clean coal technologies and carbon capture technologies are developed so that coal can continue being used without compromising our Nationally Determined Contributions in lowering global temperatures. The DBSA CEO, outlined the role of financing the infrastructure required to build more transmission lines and create an environment for private capital to also come on board.
The South African Youth Economic Council proposes that the IRP2023 adopts the following policy propositions to ensure that it is inclusive of the youth and facilitates economic growth.
Proposed improvement of Eskom fleet energy availability factor must be supplemented by skills development in TVETs to ensure that human capital used is from local youth labor.
Additional generation and transmission capacity initiatives must have a quota of youth owned energy companies that connect to the supply chain.
The envisioned energy mix must balance job creation, skilling young people for the jobs of the future in energy, especially give the proposed shutdown of coal-fired power stations. Key considerations must be made to halt the decommissioning of power stations as these key national assets.
Development finance in local capacity manufacturing youth owned companies for clean coal technologies must be provisioned for.
We look forward to continuing engaging the Minister, the Development Bank of Southern Africa, the African Exploration Mining and Finance Corporation on practical programmes that are youth centric in the quest for energy security.
For policy suggestions to continue being put forward by the council to the entities that were present at the summit, kindly send an email to research@sayec.co.za
For more on Minister Kgosientsho Ramokgopa's address, download his presentation below:
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