Chairperson, most people in South Africa are acutely aware that we are facing challenges in meeting our high energy demand. As defined by you, Minister, this includes ensuring energy security and efficiency; competitive energy pricing; and encouraging growth while reducing carbon emissions.
Too much demand and insufficient supply means in the short-term that the National Energy Regulator of South Africa, Nersa, will be forced to grant further price hikes to Eskom, and Eskom's power will become dismally uncompetitive compared to natural gas-derived power in nations geared to trade on world markets.
Mozambique's major gas discoveries signal some hope, as they could potentially mean economic growth and energy security for South Africa and SADC. Although preliminary indications are that the gas is likely to be exported to East Africa, it is still early enough for South Africa to gain a foothold in this new area of extraction. The availability of natural gas and its global trade are a major game changer in the global energy market.
The ACDP welcomes the Minister's statement that the national pipeline distribution network has been developed. We note, however, that it has cost far in excess of what was expected.
Gas emits about half the amount of pollution that coal does for the same amount of electricity generated, and as an energy feedstock for the production of synthetic fuels could decrease South Africa's carbon emissions. Increasing the role of gas would not only be beneficial for South Africa, but a positive move towards regional integration and attaining energy security within SADC.
Widespread attention has been given to the hydrogen vehicle. Instead of using coal-derived electricity to produce hydrogen electrolytically we can, with sufficient resources, develop our own technologies. We have more than enough sunlight to produce liquefied natural gas for export and own consumption.
South African companies have also developed technologies to extract atmospheric water using solar power to provide for communities in arid areas, technologies that can be fast-tracked in regard to commercialisation to address the needs of tomorrow. The alternative of paying high prices for technologies that have not worked in Europe and America will leave us with large numbers of our people still without adequate, low-cost power and water supplies.
The former Prime Minister of Japan apologised last month for accepting nuclear power, saying it was imprudent and a failure. And the French Court of Auditors recently found that nuclear power, in which France is a leader, costs more than that which electricity consumers in the country are charged. The second evolutionary power reactor plant, EPR, has been delayed to 2016, and costs have risen by more than 50%.
The ACDP has raised concerns regarding a planned spend of over R1 trillion on a nuclear fleet of six Areva reactors, as well as a uranium enrichment plant, a fuel assembly plant, a reprocessing plant and a high-level waste repository. This is probably a very conservative estimate right now.
Minister, when can we expect the promised 2012 Integrated Resource Plan, IRP? [Interjections.] All right. I will then say the ACDP will support this Budget Vote, despite the serious concerns that we have about our energy choices. [Time expired.]