Chairperson, Minister, Deputy Minister, department, distinguished guests and colleagues ... [Interjections.] This is English! [Laughter.] South Africa's demand for electricity is growing at a rapid pace, and will continue to grow as we strive to reach our various goals. We are a developing country with ambitious plans, growth targets and challenges.
There are still too many households, most of which are in rural areas, that are in desperate need of electrification. Additionally, a reliable and affordable supply of energy is critical if we are to attract the foreign investment that is needed for economic growth. To reach these goals, especially the electrification of rural areas, will require a phenomenal effort from the department and all the stakeholders responsible for the supply of energy in our country. This department's role in the development of our country is important. The separation of the Department of Mineral Resources and Energy into two departments has been a good move. However, the Department of Energy's budget needs to be increased if it is to continue to deliver on its mandate.
Eskom was successful in obtaining a loan from the World Bank, which will finance the Medupi Power Station. Once operational, the Medupi power station will provide much-needed base load capacity. This will go a long way towards ensuring that our country's economic development objectives remain on track and that the security of electricity supply is guaranteed.
Investment in energy remains a cornerstone of government economic strategy. By all accounts we will be dependent on coal to fuel our power stations for a long time. While coal is relatively cheap in monetary terms, it has an extremely negative impact on our environment. It is therefore vitally important that we look towards technological advancements in order to minimise its impact on the environment. We must also look at gas as a long- term option, as a possible replacement for coal as our main energy source. Gas is a cleaner source of energy. It is unfortunate that it has, thus far, largely been ignored.
Environmental issues have become more prominent, with people becoming more aware of the impact that their actions have on the environment. This has been especially so since we hosted the Conference of the Parties, COP 17.
More resources must be allocated to finding long-term alternatives to coal. This overreliance does not bode well for the future. We need to strive for a more diverse energy mix. Renewable, clean and sustainable forms of energy production must be fully explored.
All government buildings must be energy efficient and at the forefront of renewable and clean energy transformation. Educational campaigns aimed at efficient energy utilisation must continue to be rolled out on a national scale.
Hon Chairperson, we need to cultivate an energy-saving mindset amongst our population if we are to successfully manage the transformation from nonrenewable to renewable energy sources in our increasing energy demands.
While on the subject of the environment, it is important to note that the department is central to environmental issues. As I mentioned earlier, many rural households still do not have electricity and, to compound their problems, the price of illuminating paraffin has become unaffordable. These households are therefore dependent on their surroundings to meet their energy needs. Chopping down trees for firewood might not be environmentally friendly, but it is the only option that they have. It is with this in mind that we once again urge the Minister, the department and all other relevant stakeholders to find ways of keeping the price of illuminating paraffin as low as possible. It is the poorest and most vulnerable members of society who bear the brunt of the exorbitant fuel price and need some protection.
I believe that the use of nuclear power should be explored further and not written off. The real problem is the hazardous waste. When the Energy Portfolio Committee was in France, we were taken to a nuclear recycling plant. We were assured that the amount of hazardous waste was reduced to 4%. That was encouraging, but there was still 4% waste. Nuclear power is an issue that must be debated objectively. South Africa has had the Koeberg nuclear power plant in operation for a long period, and it is the major supplier of energy to the Western Cape.
The liquid fuels industry is an industry which is very important to the economy of South Africa. The cost of crude oil has been extremely high over the past few years, and as we have no influence over the landed cost, we are held captive to international price increases. This causes severe knock- on price increases in our economy and adversely impacts the entire country. Recently, we have been importing the finished product, more than just the raw crude. This has had a negative effect on pricing, as when we import and refine crude, we obtain other by-products, such as tar. Thank you. [Time expired.] [Applause.]