Bavarian Expo on renewable energies - 2010

MEC Anton Bredell speech at Bavarian Expo on renewable energies

16 Jul 2010

Esteemed colleague, Provincial MEC for Economic Development
Finance and Tourism: Alan Winde
Consul General of Austria
Officials of the Bavarian delegation
Business and Academic leaders
Municipal and Provincial Officials
Ladies and gentlemen; Molweni, Guten morgen, goeie môre, good morning!

In 2020 the Western Cape has a modern energy system that is highly efficient and where fossil fuel use and fuel poverty are significantly reduced. Energy efficient programmes achieve a 15 percent savings across the various programmes; clean and renewable energy contributes to 15 percent of the energy mix; and emissions reductions of 15 percent are achieved. Provincial and local authorities have an understanding of the impacts of their energy use patterns and play a leading role in implementing the energy strategy across the province.

Ladies and gentlemen, thank you for affording me this platform not only to engage with you but to stimulate conversation and progress about renewable energy in the Western Cape. The scenario which I have just presented is the long term energy vision for the province which requires commitment and innovative thinking. More importantly this vision challenges the ability of all sectors to come together through harmonised working relationships to realise measurable results.

During the delivery of my annual budget speech, I spoke of the inspiration to explore, dream and discover. The frontier of renewable energy is characteristic of these elements and presents the Provincial Administration and each of you with significant challenges if the 2020 vision will be a reality.

Ladies and gentlemen, the Western Cape Department of Environmental Affairs and Development Planning administer a mandate to ensure ecological sustainable development while using the natural resources to promote justifiable economic and social development. It is estimated that in 2004, approximately 250 million gigajoules of energy was consumed in the Western Cape. If the economy continues to grow as expected the demand on energy consumption is predicted to increase at 3.5 percent by 2020. The industrial and transport sectors are currently the highest energy consumers in the Province, and at 47 percent industry accounts as the largest energy consumer of electricity.

One can deduce that the Western Cape is very reliant on fossil fuels for its energy needs, which leaves a negative footprint on the environment. This serves as one of the primary reasons to move the province to a more sustainable path of energy production and use. Adding to the above scenario, it is estimated that 85 percent of the urban population live in electrified households. In essence, it is imperative that all actions contribute towards affordable energy use for all, and to minimise the negative effects of energy usage upon human health through clean efficient practices.

Economic perspective

Ladies and gentlemen, the Western Cape has been at the forefront in terms of creating an environment conducive to investment opportunities. South Africa is ranked as the 24th biggest economy in the world and this can be attributed to a high level of economic stability over the last ten years. The Western Cape is globally marketed as a competitive and sustainable business destination as South Africa is expected to grow by 2.3 percent in 2010 and 3.2 percent in 2011. The economic performance and rapid industrialisation will place considerable strain on the country's infrastructure and on the energy sources of the respective provinces.

The Western Cape is a leader in the renewable energy sector and is the most competitive location for solar panel manufacturing if compared to the leading locations in Europe. Wind resources, for example are substantial and are amongst the best on the country. This verifies that renewable energy provides the most promising path for investment in this province and we hope to do this in conjunction with partners such as universities, banks and insurance companies.

Ladies and gentlemen, in addition to the preceding factors, investment opportunities become more viable as this province boasts the highest literacy rate in the country. It also has a highly developed services industry, showcases world class infrastructure, boasts three export orientated ports, consistently outperforms national growth and has a diverse and young trainable workforce.

Creating an enabling environment

Ladies and gentlemen, the energy profile of the Western Cape alone requires that we progress as rapidly as possible to reduce energy consumption. In 2008 the Department of Environmental Affairs and Development Planning in consultation with key stakeholders and through comprehensive research developed the Western Cape Sustainable Energy Strategy.

This strategy, which has now been set out I will take to cabinet as a white paper to be approved during the coming month. Furthermore, I undertake that there will also be enough public participation before the white paper is approved by and for our province. This white paper will pave the way for renewable energy in the province, and will now determine how best to create an enabling environment, not only to assure investors of the opportunities in renewable energy, but to allow policy to foster the move towards sustaining the environment without the compromise of economic development.

Ladies and gentlemen, every long term vision has to be defined by working solutions which are practical and produce results. It is the purpose of the proposed white paper to ensure that the Western Cape has a secure supply of quality, reliable, clean and safe energy. This must be coupled with the intention to deliver social, economic and environmental benefits to the citizens of the province. The rapid move to renewable energy will mitigate the effects which global warming will have on this region and promote the eradication of energy poverty.

By setting social, environmental and economic sustainability goals the white paper will promote the development of a strong renewable energy sector in the province. It will also create an environment which manages the implementation of energy efficiency by the transport, industrial, commercial, government and residential sectors.

The approval of the White Paper on Sustainable Energy will be a milestone for the Department of Environmental Affairs and Development Planning. Furthermore, it will be for the benefit of the current and future generations. It is the intention of the provincial administration to work closely with stakeholders at national and local government to realise the goals, objectives and targets of the white paper.

Summary

Ladies and gentlemen, to summarise our vision of the proposed White Paper: The 2014 Sustainable Energy Vision for the Western Cape is presented as: "The Western Cape has a secure supply of quality, reliable, clean and safe energy. These deliver social, economic and environmental benefits to the province's citizens, while also addressing the climate change challenges facing the region, as well as the eradication of energy poverty."

Ladies and gentlemen, progressive success is achievable by creating high expectations. The department has through the White Paper identified that 15 percent of the electricity consumed in the Western Cape will come from renewable energy sources in 2014, and that a reduction of 15 percent carbon dioxide emission can be expected by 2020. We will strive for these targets; for our mission is clear and the mandate to ensure energy security to supply the growth demand of the province is outlined through these targets.

Setting these high targets encourages the facilitation and creation of an enabling environment to develop the generation of additional electricity through a number of small, medium and large scale projects. Further consideration is given to the implementation of energy efficiency programmes aimed at providing affordable energy to poor communities. The progression to realising these targets encourages improved energy efficiency in all sectors and promotes and justifies the move towards renewable energy.

What is fundamentally important is that cognisance is paid to the fact that the white paper will now provide an institutional framework for the coordination of an integrated energy strategy and programme that incorporates local and national government objectives and plans. Through this clear strategy and programme of action, provincial government will facilitate the role between the various spheres of government and external partners to optimise the development of energy resources in the province.

Ladies and gentlemen, our province is busy seeking and investing in clean energy, that is, solar and wind energy. Everyone who knows the Western Cape will know that we have enough sunshine and wind in order to make efficient use of solar and wind energy. My department has already rolled out 1 300 solar energy systems to poor households this year, and we aim to increase this number significantly. We will, however have to look at legislation in this case as well.

For the medium to high income households we will have to change legislation to make solar energy compulsory. However, for the lower income group the state will have to provide subsidies of some kind to enable all these citizens to utilise solar energy as well. Furthermore we also have the option of utilising the burning of garbage to produce energy.

Our province faces many challenges when one thinks of the greatest supplier of energy, that is, Eskom. So it should be clear to everyone present today that we, as a department but also as a province are facing many problems. Let me make it clear, however that we do not see them as unsurmountable. No, where there is a challenge we are ready to solve it.

Other problems that we face are that of the Municipal Finance Management Act, as well as the Power Purchase Agreement. We also do not see them as something which cannot be conquered, but as a challenge. Our government has already decided on a project plan for the first week of August when we'll discuss all blockages to our sustainable energy plan for the future under the leadership of the Premier, Ms Helen Zille.

To summarise, ladies and gentlemen, my department and I are ready to submit the white paper to Cabinet within a month, and therefore it will be open for public participation. We have ample wind and sunshine for usage as wind and solar energy, but we also face problems regarding legislation, Eskom and nuclear energy suppliers.

However, and this I say without thinking that these problems cannot be solved: We will solve our problems and then face a brighter and better future where we save energy, but also reduce emissions which foul the air around us.

In just a short while we will have a panel discussion, under the auspices of my Department of Environmental Affairs about renewable energy, which I hope you'll all take part in.

Ladies and gentlemen, thank you, baie dankie, enkosi, vielen dank and to all delegates, enjoy this amazing province; let the warmth of our people create an experience most memorable.

Source: Western Cape Provincial Government

 

Issued by: Western Cape Environmental Affairs and Development Planning
16 Jul 2010