Thank you very much, Madam Speaker. Hon members, one of the greatest challenges of time is the issue of energy and energy security. These are so vital that most countries, including those in the developed North have elevated them to the level where they are regarded as a threat to national security, a threat to our planet and a threat to our economy. We are part of the global community and therefore we cannot avoid these biggest challenges of our generation. Without the energy sources, the very many and unprecedented quarters of postapartheid economic growth would have been but a mirage. We are facing a moment in history in which, as Barak Obama puts it: "The consequences of our inaction are so dangerous." We must act now and act boldly and imaginatively to safeguard our country's energy security.
One commentator recently said news reports flashing on computer screens these days seem increasingly to be related to the subject of energy. But what do they signify? They signify the extent to which energy has occupied a central focus in the development of global economies. Milan Kundera spoke about the struggle of memory against forgetting. Kundera may have been referring to a different era and a different context. We however do not have the luxury of forgetting the events of December of 2005 when our country experienced fuel shortages. A study we conducted in 2006 estimated that, should we experience total fuel supply disruptions, our economy would lose R1 billion a day. That was according to the 2005 prices. It will be a dereliction of our constitutional duty and an abomination not to take measures to prevent that possibility.
Accordingly, the memory of the wanton disruption which was caused by the recent electricity emergency is still fresh in our minds. This emergency disrupted all sectors of our economy and caused inconvenience never experienced before in the history of our country.
We are therefore presenting this Bill in order to ensure that we have the means to do proper planning not only for the supply of energy but also for the demand of that energy. In presenting this Bill, we would like to pay tribute to energy pioneers like Comrade Prakashnee Govender of the Congress of South African Trade Unions and comrade of our Fred Gono respectively of the National Union of Mineworkers and the entire leadership of these two organisations as well as National Economic Development and Labour Council for their guidance and activism during the preparation of this Bill.
The Bill makes provision for the tools that will enable us better to explain and predict demand. We need adequately to prepare for the periods when unexpected emergencies happen. In fact, we need to give practical expression to the dictum: In victory planned for defeat. This Bill ensures that we secure the supply of both energy carriers and feedstock. It contains sufficient instruments to prevent the possibility of what happened in January this year when all of a sudden we ran out of coal for local electricity generation whilst we were in the business, as usual, of exporting coal.
Madam Speaker, coming out of the unfortunate events of the supply of energy in 2005-06, Cabinet approved two energy security master plans in the latter part of 2007. One of the plans focused on electricity and the other on liquid fuels and energy security. These plans were developed in order to put in place a holistic strategy or plan for the energy sector in order not only for the short-term disruptions that were being faced by the country at the time but also to ensure the security of supply in the medium to long term. The effective implementation of energy security plans necessitated the need for a legal framework which would adequately empower us to ensure the unqualified implementation of all energy security aspects as envisaged in these master plans.
Madam Speaker, with this Bill we aim to ensure that diverse energy resources are available in sustainable quantities and at affordable prices to the South African economy in support of economic growth and poverty alleviation, taking into account environmental management requirements and interaction amongst economic sectors. It is for this reason that we are making provision for data and information related to energy demand to supply and generation mandatory by those who already posses it. We will also use this data to provide for energy modelling and planning. This will allow, amongst others, us to be able to conduct analysis which will assist us in promoting a sustainable and viable increase in the generation and consumption of renewable energies. We recognise that in order to deliver on our mandate, we need skilled and dedicated personnel. We also acknowledge that there is a dearth of skills in the key areas which require them. Further, to compound the problem, we are also competing with the private sector for these skills. It is for this reason that we are proposing the establishment of an institution which will be responsible for the promotion and implementation of energy efficient innovations and technologies, focusing not only on efficient consumption but also on efficient generation of energy.
This institute will also be responsible for energy research and development. The Bill enjoins us to make a concerted effort to ensure continued uninterruptible supply of energy. We will do this firstly by putting in place measures for the holding of strategic or contingency energy feedstocks and energy carriers at a national level and secondly by putting in place measures to ensure adequate investment in energy infrastructure as well as the maintenance thereof.
Madam Speaker, energy is somewhat of a dangerous commodity. This Bill establishes measures to minimise the negative impact that energy carriers may cause to health and the environment, as well as to address the safety aspect thereof while recognising the role played by other government departments in these areas. Members of this House understand the pain that is inflicted on our communities who, because of circumstances beyond their control, continue to use unsafe and unhealthy fuels. Whilst we are working towards finding a lasting solution to this problem, we have to work as a team to address the problems caused by the use of paraffin, coal and other traditional energy carriers. We are responding through this Bill to the outcry of all key industry stakeholders on the availability and in some instances the paucity of data and information used by state-owned entities like the Electricity Supply Commissioner in deciding whether special rates should be effected with respect to certain customers.
There have also been requests for the publishing of energy data that would be used to conduct analysis when reviewing energy demand and supply for previous years as well as to cater for future projections of such energy demand and supply. We have tried to balance the interests of those who need to provide data and information with those who need to access the data. Hon members, I put the Bill and I request that the Bill be adopted. I thank you.
Madam Speaker, in the light of the general lack of energy supply predicted for the future, in particular the so-called Eskom crisis experienced since 09 January 2008 this year, the inept handling of the situation by government and Eskom of the electricity crisis, as well as the fuel crisis we experienced in 2006, it is clear that a very compelling reason exists for the existence of legislation to regulate the way in which energy affairs are being conducted. Concerns relating to the exercise of powers - or rather a lack thereof - in determining the minimum level of energy stocks have emerged, following the two crises and I venture to say that another crisis is still awaiting us. I say this because, as pointed out in the Budget speech earlier this year, concerns and discussions, of which the hon Minister is aware, have already raised the possibility of a fuel crisis regarding the 2010 Soccer World Cup. In fact, due to the current lack of capacity relating to oil refining and an apparent lack of international oil companies making further investments in the oil industry in terms of oil refining capacity in South Africa, we have resorted to importing fuel in its refined form in addition to our current oil refining capacity. We know the discussions and planning regarding the future construction of possible oil refining capacity by PetroSA and Sasol in the market. But we are concerned about the timeframe for the implementation of such projects in light of our current refining shortage.
The disappointing failure and embarrassment relating to Eskom is well known, so too are the reasons therefor. As such, government's attempts, as sole shareholder of Eskom, need to increase in terms of making Eskom the reputable institution it was before. The latest downgrading of Eskom's credit rating is in itself worrying as it has a negative impact on the cost of borrowing by Eskom and therefore on the price the consumer is expected to pay for electricity.
Our views and ways of solving the electricity crisis are well known and contained in a number of discussion documents which have been presented to the hon President. The most important issue would be the restructuring of the electricity industry to allow more room for independent power providers, and coal generation by large companies to provide electricity to the national grid. This issue requires more immediate and serious attention. The National Energy Bill, though the product of many years of consultation, is unfortunately still subject to improvement. One important last-minute change by the committee was the deletion of one of the most important functions of the South African National Development Institute, or rather Sanedi. It is not clear why, when the reasons, motivations and justification for the development of renewable energy are known to everyone, which would include the Kyoto Protocol, climate warming and a generally accepted notion for the development of technology in the direction of renewable energy, that this particular function was removed as one of the three main functions of Sanedi. This is particularly so when energy efficiency and energy development in general, excluding oversight are nuclear energy, has been included as its main functions.
The shortsighted response to the deletion of this function, with particular reference thereto on the basis that the department will be in a better position to deal with it, is not credible due to the historic lack of interest it has received from the department. An important issue is the responsibility ascribed to the Minister that an integrated energy plan be gazetted on an annual basis. Hopefully this will ensure continued and realistic evaluation of the real position regarding the status of the availability of different sources of energy as a whole and so ensure timeous response to prevent potential crises even before they arise. It is therefore submitted that although the Bill can be supported in terms of its objective and the formation of Sanedi, it unfortunately does not address a fundamental opportunity to ensure that renewable energy receives the necessary attention. I thank you.
Madam Speaker, hon members, hon Ministers, Deputy Ministers present, the House at large and our guests of Parliament, first of all, before I begin my speech, I would like to make a short comment on the amendment that was seen on today's Order Paper. It was just a matter that we felt, as a committee, that it was ambiguous for an Act to prescribe how the department should appoint its CEO. So, we felt that the following clause, which was general, was sufficient to address that. So, that is why we decided, all of us, to agree that we must put away the succession from the SA National Research Institute, Saneri, to the SA National Research Development Institute, Sanedi. Otherwise, thank you very much for accepting our amendment.
Please allow me to start my speech by first declaring that the ANC supports the National Energy Bill. Today, as I stand before this honourable House, it is 14 years after the advent of our democracy in 1994, but it is also 10 years after the launch of our country's White Paper on Energy Policy in 1998. No doubt that this important White Paper on Energy Policy of our country, which acted as a central document in mapping out our energy needs in the last 10 years, requires a review and a renewal since some assumptions underpinning it are no longer valid at present and beyond. Hence the development of the current National Energy Bill, the Bill to take the country to the distant future in so far as the security of energy supply and its needs are concerned.
In a nutshell, this Bill seeks to address all energy security issues in such a manner as to become the energy security framework to all aspects related to energy utilisation and optimisation. It further seeks to achieve this objective by smoothly interfacing with all other related pieces of legislation that our Parliament has so far instituted on behalf of our nation. It must be emphasised at this juncture that the current Bill does not seek to replace any of the existing institutions, but to strengthen them.
The approach adopted in the development of this Bill has been, amongst other things, to establish an environment conducive to energy research on a wider scale; strengthening of energy efficiency options in our everyday life activities; as well as to collect as much data as the Department of Minerals and Energy as we possibly can, in order to correctly model different energy scenarios in various regions of our country, and at various times of our economic development from the present into the future. This environment has been achieved by developing an energy entity which is going to be known as the South African National Energy Development Institute, Sanedi.
Under Sanedi we, as the ANC, foresee a rigorous engagement with and modelling of all our energy systems and planning of an efficient and integrated energy system that will guide our country, the region and the continent into becoming an important role-player in a global context both economically and technologically. Why are we advocating this and why have we chosen this path and option?
Expenditure on energy account for approximately 7% to 8% of the GDP worldwide. In addition, annual global investments in energy supply technologies run into billions of dollars, whilst trillions of dollars are spent on products that consume energy. Furthermore, the global energy system is expected to expand substantially during the next decades, with the bulk of these increases coming from the developing world, that our country forms part of.
In future, it is the desire of our ANC-led government to follow an aggressive and radical policy on renewable energy technology. I was recently in China, where I learnt that China is vigorously pursuing a green technology revolution in renewable energy to the point where it is beginning to compete with Germany, which has always been known to be a leader in renewable energy technology. The recent report from the climate group says that despite China's coal-dependent economy, it has become a world leader now in the manufacture of solar photovoltaic technology. Its biggest solar companies have a combined value of over $15 billion and around 820 megawatts of solar photovoltaic were produced in China in the year 2007. China already leads the world in terms of installed renewable capacity at 152 gigawatts. Next year China will become the world leader in exports of wind turbines, and it has become highly competitive in solar water heaters, energy efficient home appliances and rechargeable batteries.
Surprised by this economic usage of energy and in particular electricity in Beijing during my recent visit, I was further impressed when I was made to understand that China's energy programme is so radical that each month they are engaged in a built programme equivalent to that proposed currently by Eskom over a period of five years. If properly managed and developed, Sanedi, as proposed in this National Energy Bill, can make significant strides as a potential competitor with China's green revolution. We therefore feel that if Sanedi incorporates also the renewable energy and adopts what we call "distributed energy resources" in order to improve its efficiency energy activities, we will be able to model energy today and beyond. Thank you. [Applause.]
Madam Speaker, in case anybody has forgotten, the recent energy crisis, which crippled much of South Africa, was a timely reminder of the crucial role that energy plays in the functioning of our lives. We must do everything in our power to prevent a repeat of the energy crisis, and ensure a stable and reliable energy supply if we are to achieve our growth and development objectives.
It is for this reason that legislation of this nature is so vital. I believe that, when enacted, the Bill will close many gaps that still exist with regard to policy issues and go a long way towards solving some of our energy problems. And this will hopefully restore some confidence that people have lost as a result of the energy crisis, and assure the investors that we are correcting our mistakes and addressing the shortcomings.
An area of grave concern for me is the unaffordable price that people are paying in rural areas. They seem to be paying for electricity but receive inefficient service in comparison to their urban counterparts. While I do understand that many of these areas are off the grid and the costs are therefore much higher, when we consider the low incomes that many people in these areas earn, the steep prices that they pay for energy pushes them even deeper into depths of poverty, and makes it so much more difficult for them to escape. Rural development really is an important issue to government and this is one of many issues that need to be rectified. We, in the IFP, hope that this Bill has a positive impact in this regard.
There are many other areas of concern that I have regarding energy, including the need to explore the use of technology that will lessen the impact coal has on the environment, and with climate change and global warming being so significant, that is very important. I am glad to see that the SA National Energy Development Institute, which will be established, will have a renewable energy division. Unfortunately, this section has been left out of the Bill and I think, in future, instead of rushing through our deliberations, we should make sure that everything is included.
The exploration of renewable energy is important if we are to expand our energy mix and lessen our reliance on coal, as well as find unique renewable energy solutions that are tailored to South Africa and consider our special needs and problems. Finally, innovation and foresight are needed in the energy field if we are to reach our potential as a nation, and I hope that this Bill encourages such actions. The IFP supports the Bill.
Madam Speaker, the ID believes that this Bill is long overdue. Energy planning in South Africa has been woefully inadequate, as demonstrated by the recent energy crisis. In addition, free reign has been given to Eskom unilaterally to make decisions regarding our energy future without any consideration being given to the most appropriate energy mix for South Africa.
It is now time that the Department of Minerals and Energy assumes its responsibility for energy planning and engages in proper participatory processes in designing our country's future energy path.
The ID has also noted that renewable energy has been firmly placed within the ambit of the department and we hope that it finally gives renewable energy the attention and budget it deserves. India has an entire Ministry devoted to renewable energy and South Africa can't afford to be left behind in this ever expanding industry. Renewable energy is the only energy source that can solve our energy crisis in the short term. If I had more time, I would explain to Minister Erwin, who obviously doesn't get it. Thank you.
Madam Speaker, the aim of the National Energy Bill is to ensure that the number of diverse and sustainable energy resources are available at affordable prices to the South African economy in support of economic growth, which is urgently needed to alleviate poverty and to reach the target set for 2014. The Bill also addresses energy security in South Africa.
The recent spate of power outages and the huge increase in tariffs do not do our economy any good. The need for an uninterrupted supply of energy to sustain the economy is nonnegotiable and therefore a proactive programme to prevent the abuse and theft of electricity is urgently needed.
The Bill makes provision for the Minister of Minerals and Energy to keep to an annual Integrated Energy Plan, through which issues relating to the supply and transformation, transport, storage and demand for energy will be accounted for. This Integrated Energy Plan is to be gazetted annually.
A concern that the ACDP shares with the Centre for Applied Legal Studies and Earthlife Africa is at the cost of electricity; especially for the poor and the needy it is becoming unaffordable. They also cited:
The Bill does empower the Minister to implement programmes that may realise some progress of affordable access, continued electrification and the safety of electricity substitutes such as coal and paraffin. However, the Bill should recognise that these programmes are not mere political policy, but reflects entrenched constitutional rights to adequate housing and environmental protection.
Since the Bill seeks to entrench renewable energy, the ACDP believes that clear, measurable targets for the percentage of South African energy obtained by renewable sources should be set. The ACDP will support the Bill.
Chairperson, at a period when the nation has been facing an energy crisis, this Bill offers some stability to the sector. The department has undergone great strains, with this dilemma and the public has not been supportive. I would think that the clarity and the effects of this Bill should certainly enhance the management and co-ordination of Minerals and Energy and rebuild community confidence in the efficiency and effectiveness of the department. The MF, from the provision of crucial data, is pleased that this Bill serves to shift voluntary data to a mandatory collection of energy data. We are especially pleased that this Bill addresses the negative implications energy carriers may have on one's health and environment. The MF supports the National Energy Bill. Thank you.
Modulasetulo, Maloko a Palamente, Molekgotla-Khuduthamaga wa Dimenerale le Maatla ... [Chairperson, Members of Parliament, Minister of Minerals and Energy] ... it is imperative to acknowledge that the consistent growth of development of the South African economy remains fragile in the absence of an integrated energy security legislative tool. We must also acknowledge that as a progressive South Africa, our development agenda would be hamstrung if the state did not provide a blueprint for energy security.
It is within this context that the significance of the National Energy Bill should be seen as part of the global community and that it is being affected by external economic shocks. We should develop our own institutional mechanism to negate the worst scenario possible. The National Energy Bill provides pre-emptive tools as it addresses the following: Energy research, diversity of energy supply, energy infrastructure planning, climate change mitigation and adaptation strategies, the development of local energy production and setting of standards and specifications.
In my engagement with the content of the Bill, I would confine myself to Chapter 2, which deals with energy supply, optimisation and utilisation. In terms of the provision of data and access to data sources, the Bill empowers the Minister to establish mechanisms for the provision of any data and information that is required for purposes of energy modelling and planning. It also allows the Minister to establish mechanisms to collect, collate and analyse energy data and information, and use energy statistics and information.
In terms of transparency and accountability, the Minister must annually publish an analysis that reviews energy demand and supply of the previous year. The same analysis would include the forecasting of energy demand and supply for no less that 20 years and it must provide possible future energy scenarios.
Furthermore, the Bill provides that the Minister must publish models used for data and information analysis. It also provides for the Minister to consult with the Ministers of Trade and Industry, Labour, and Environmental Affairs and Tourism to adopt measures to deal with the negative safety, health and environmental impacts of energy carriers.
In concretising the Reconstruction and Development Programme's proclamation on energy sources, the Bill provides for the Minister to adopt measures that provide for universal access to appropriate forms of energy or energy carriers for all South Africans at affordable prices. As the ANC-led government, we are resolute in achieving social justice and improving the quality of life of the masses of our people, hence we maintain that the poor households should receive free basic electricity. This piece of legislation provides for this policy position.
In the advancement of the developmental agenda, it is important to have a strong state with the capacity to execute its strategic developmental tasks. Strengthening the state by retaining particular strategic tasks would go a long way in laying the foundations for a truly developmental state that would lead and manage strategic areas for sustained economic development.
Ke a leboga. Re le ANC, ra re ga re tshikinyege. Re fetisa Molaotlhomo o gore batho ba rona ba bone botshelo jo bo botoka. [Thank you. We, the ANC are not to be shaken; we are passing this Bill so that our people can have a better life.]
Chairperson, I really want to convey my appreciation for the support that I have received, overwhelmingly, from all members and all parties. I also just want to say that I agree with the Chairperson that we need to review the White Paper on Energy. Indeed it's overdue. It has to keep up with the developments of our economy, so I support that.
I want to make an earnest appeal to the portfolio committee to initiate a debate on renewable energy sources. I think we are talking past each other because there is a lot that is already happening in the department. Three of the problems that were stalling the process concerning renewable energy have been addressed. In terms of the issue of funding, the Minister of Finance has given us R2 billion which we will divide between renewable energy and energy efficiency. That matter has been addressed.
There was no strategy to drive the programme but now we have a strategy in place as we speak. There has also been research on the potential of renewable energy sources in the country and which sources have more potential. That report is in place; it is ready. So, I'm saying there is a basis and there is information that the department needs to share with this House. We will only be able to do that when we have enough time and when there is a focus on renewable energy. I'm really asking that we should have that debate.
We have already established an office, the Renewable Energy Financing Subsidy Office. It has been operating for the past two years and we are working with the Treasury on that one. Already here in the Western Cape we are rolling out solar energy. We have already started doing that. We started - I can't remember the name of the place now - but we are going to Khayelitsha next.
In terms of the wind farms, the Darling Wind Farm is operating and is giving us 50 megawatts of electricity. So, all of these things are happening but I cannot communicate everything within such a short space of time. I think that I owe this information to this House and I would really plead that we have such a debate. I nevertheless appreciate the support and we will be looking at all other matters that the members have asked us to look at. Thank you very much, Chairperson.
Debate concluded.
Chairperson, I put the following amendment to the Bill, as printed on the Order Paper (p 432) namely: